The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1920-01-11
Financial and Industrial
Conditions In Belgium

Announcement has been made in New
York during the past week. that new
loan to Belgium is under contemplation
by American investment houses. A sur
vey of the financial condition of Belgium
and it's progress toward industrial recon-
struction, therefore, seems timely, 4
On the debit side. Belgium has ma
Ftional debt, at par of exchange, of close
to 1900 o0.000, Of which about cne-fourth
constitutes pre-war debt. Sixty thousand
houses were destroyed, partially or COM,
pletely, during the war, and $50 factories
SO damaged that they could not operate.
The remarkably efficient system of rail-
! ways and canals was disrupted. A great
part of the country was occupied by the
Germans and its industrial and agricul-
| tural organization almost completely de-
moralzed.
| The reverse Of the shield is not alto
gether dark, by any means. National
wealth before the war was, estimated at
about $6,0oo,o000oo 1t is expected that
war indemnitIes to be paid Belgium by
Germany viii at least equal the war debt
| Against the pre-war debt of about 81, 00O,-
100000 the government has an investment
| of 100000 900 in railways. telegraphs and
! telephones. Before the war the net profits
1 from JHe operation OIL THESE pupiC ulll-
ties were practically equal to the aggre-
gate interest charge.
] The whole country has gone earnestly
| to work Remarkable progress has been
made on reconstruction. greater than in
any other country Ali of the 1900 kiio-
! beters of railway lines destroyed during
| the war has been repaired. The govern
ment has put into successful operation
| a plan for lending funds to rebuild homes,
and great Roadway has been made in this
| direction. The great ports of Antwerp
and Ostend are once more among the
most important shipping centers of the
| world, and Antwerp bids fair to. soon
take its pre-war plac. of the third sea-
port in world Importance. Crop yie.ds
| for 1919 were not much below those OF
| pre-war years. Production of coal Is
| about normal. The iron and steel indus-
try is being rehabilitated much more
rapidly than was Thought possible. Glass
factories were left practically intact,
while only about 10 per cent of the flax.
hemp and jute spindles were destroyed.
There is more money in the Belgian BANS
| than there was before the war. The Bel
gian franc sold at over ID per cent dss-
count in France shortly after the arnnis-
tice, and is now at a premium. One great
advantage that Belgium has over other
belligerent countries is a result of the
manner in which the country was over
run. The Germans came so quickly that
,nogiization was quite incomplete. There
fore, the man. power of Belgium is more
nearly intact than that of most of the
belligerents nations, and this is an asset
more valuable than any physical wealth.
The Belgian situation is we'll expressed
lin the National City Banks publication.
! 1.-THE American, thus: I'm snort Belgium
! is rapidly putting her house in order
making the best of her every opportunity,
4 relying mainly upon her own resources.
An intimate view OF the activities
of the Belgian people in every phase OF
their economic life shows them as MILF
tant today to regain their former com
mercial position as they were little more
lthaflS a year ago tosregain their spoitlcai
status, and there is the promise % a.
success. equally effective"
Tn one Of the Guaranty Trust COM
pary's publications. it is said: "Bclgium's
record of superior financial and indus
trial achievements in the past is mere
surest guarantee for the future.
Should the contemplated loan pc MADE,
there seems little doubt of its speedy
absorption by the investing pubic. three
z factors will enter into the minds Of the
Ituyers First. the loan will no d0upt
I be Offered on an attractive basis as 10
WELD. while the safety OF the prlncipai
seems unquestioned. Second. the loan
will be link in the cham OF develop
ment of American export trade. with
resultant benefit to the whole country
And third, but not least important. tne
american people entertain profound al
rpiration for the Belgian people. VINO SUD-
United their country to devastation ana
lpossibie ruin rather than submit 10 VIZ
Ilation by Germany, and they Will welcome
| this opportunity to assist in the reha Dill
itation of the country.