The Washington times., 1920-03-08

change market But even so. accept
ing the immedisey and validity OF the
effect, the course of foreign exchange
should have been logically and ration
ally the other way; for how in all
that Is logical and rational could the
English pound rise radically on a
heavy loss OF gold by England at a
supremely critical time in the worlds
monetary situation?
What, then, created the cheerful
breeze from abroad? What was the
legitimate cause? -
Broadly-without yenturing any
thing concrete-England has com
pleted a plan OF economic procedure
OF which Chsmberlsin's statement Of
fers the faintest sidelight True, the
statements OF the present chancellor
or the eNchequer have the reputation
OF being invariably limited by proba-
bility. In respect of public an
nouncements, Mr.. Chamberlain Is the
son OF his father. Nevertheless. what
the chancellor announced last week
may be safely taken as vague hint
of what co nmercisl and financial au-
thorities have decided on to restore
Great Britain to her ante-bellum eco
monte power and prestige. In COM
| mon Americana, Great Britain has
something big up her sleeve.
There is apt to be n great deal OF
hollowness and hypocrisy in ideas Of
public opinion pertaNing TO patriot
ism. Patriotism covers a multitude
OF doubts and defects. Mr.. A is
prone to- believe because he thinks
Mr.. Il. believes, and Mr.. c to acqui-
esce in what he imagines To be the
accordant opinion of Mr.. A and Il:
| and then the opinion is propagated
| through the alphabet to Mr.. u him
self. But no one of all these per-
sons very likely would have thought
so If he had been left TO form his
own honest-to-God opinion without
any reference TO the fmcied opinion
Of others.
which he suppresses because ne
| fancies that others who are supposed
| TO have thought more about the
natter have no misgivings; but If a
| shrewd examiner were to scrutinize
every mans mind he would find much
tacit latent, accumulated doubt In
| each
The Difference shown the United
| states by the world since April, 1913,
has quite naturally developed a fairly
prevalent megalomsnia among the
|
lea has done so much. and is capable
of doing so much more, that the col
| lective genius has become COMPOUNDED
| with individual ability; or, more ac-
curately, with the skill or gift OF the
really few who direct the country's
| commerce and finances.
| Among these few, however, there
are some thinkers, and these think
ers do not share the popular notion
that America is certain to be a world
beaten in business.
| The thinkers have reasons for their
misgivings. America now has money,
but it has not the experiences of Lom-
| bard street. International commerce
| Is deep and difficult game; interna-
| tional finance is a deeper and more
difficult game. Given innate aptitude,
it requires not one but several gener-
ations to breed highly efficient class
of International traders and promo
! terS
Germany Which is loosely sup
posed to have rivaled England in
one generation? When we are Ill,
lying on our back-if wisc--will con-
jure up the pleasant things of the
past; will dwell endearingly on tina
fond retrospect If we are readers we
| re-read some of the old favorites.
| And old favorites was re-read the
other day, Freytag's "Soll und Haben,"
that sturdy realism, which preceded
Flauberts MADAME Bowary," and was
the unconscious precursor Of French
realistic literature.
"Soil und Haben." a business novel.
written in the early fifties, reminds
you that the other Germany was far
advanced in the science of inter
national trade. The house of Shroeter
was only one of the numberless
houses that traded with the world
| with South America, Africa, the dis
tant Orient. These were great or
CARNATIONS, with an immense staff
whose proficiency in languages, his
tory, geography and foreign ways
and customs was extraordinary. No,
the Germany of 1914 had been long
schooled in foreign commerce. In
| finance, per Sc, it was never a seri-
! Gus competitor of England, for Ger
| many in the large was borrower
| while England was a lender.
A world lender England promises
to be again-and very shortly. This
is the real explanation of the recov-
cry in sterling. Mr.. Bernstorff Is
mistaken in telling German students
| Europe is bankrupt. The Continent
may be bankrupt, but England is
not; England, with her two and a
half centuries of international eco
nomic experiences; England, with her
confoundedly skillful and audacious
fnanciers; England, which boldly
increases her facilities by creating
81. 900, OOO, 900 banks.
Let us face the fact sauarely. We
are confronting a past master in in
| ternational business; we, who at best
| are as yet students.