Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-01-25
WILL DEM0RAL|zE TRADE
EXCHANGE SITUATION WILL
REACT AGAINST AMERICA
Eventually Means ForeiCn Buyers Will
Seek More Favorable Busi-
M ness Relations.

ND" YORK, Jan. 2f-Thrcc factors
change, inteTligible to the average man,
; rise shove the complexities OF the
present si;ua,ion: aec"rdinH 10 Old
timers In Wall street. These arc:
i. Allied and other nations OF the
world owe the United states approNi-
1natcly $4,000 goo.
:. American manufacturers hesitate,
! owing TO peace treaty uncertainty. to
accept big advance foreign orders:
8. highlands virtual SUSPENSION OF
gold exports outside the British colo
niles Is repulsing American trade.
Just why the British pound sterling.
= normally worth si.$6G5 in American
gold, should have declined SO much
means is an obscure question" said a
New YORK financial expert. The. pres
prehensions Notwithstanding, is by no
means hopeless. prophesies OF -
.brcakdown Of credits are not we'll
founded
Americn Takes Financial Load.
America, the sto-chousc OF the
world and now the worlds banker. is
In the same position England was in
nfter the NapOleonic and American Wa
Sneap securities OF Impoverished ma
lions in most prodigious manner. and
thereby Laid the foundation for her tu-
trfa wealth. We must do likewise, and
do II within the next Two or three
years. by which time these abnormal
conditions Will have passed.
with pound Stcrlin: - per cent or
more. below par England can sell TO
the United states q; 4 great advantage.
We can sell American goods abroad
only at great disadvantages because
We must add the abnormal rate OF e1-
change to The goods 70 get into foreign
gently declared. wnen STERLING was
selling al discount or y per cent.
mat the discount really represented a
s6oas manufactured in England Ger
9ainiy it is helping TO Keep American
EooSs out OF that country.
--g > Must Extend Credit
:. The ,scniy remedy FOR This condition
securities and extend lons-t&io credit
Tor SINE .cha nd!sc. We are in a strong
uiope uI nave our Iai n aS w,se Of
and since they are SO heavily indebted
70 us and We mus: extend them ma ny
What is the difference whether we buy
Ineir bonds or send them our inc-chan-
."Every one in Wall Street know.
chat II the peace treaty rad Been signed
n washington an interna:iona! cX-
'caa5Ee committee would have been o.
exchange and bring about othe. meces
sary readtus;:nen;s. Never 1uria: the
darkesi days OF the war when the Ger
mans were almost a; Paris. did British
and French exchange go 10 where !; is
NOW. The British. during the w-l- b,
9. system OF credits with the United
Stay Drop TO $50.
The tension over and gold exports
cuTtailed there was nothing 20 Keen il
Lnat close 20 PARTY. Indeed unless
She United States ioosenS It's nurse
strings there are London financial tN-
oe!S who say ;he pound sterling aill
drop as low as $3.50. That would lie a
calamity. ]; would - ! :wc-.d..I
sword iniuring hoth Eaglanl aad Inc
United States
F"Eu!ope IS like man OF the verge
Oh Ceat5 due 10 starvation Wrc-
YOU ma such an unfortunate Won iced
MIN gradually until The stomach be-
comes acco CStoynei TO G.Etstinr food
Nov OF. a! has been ell along 70 s-yif'
kC7epe x. H all Kinds OF American mo.
qpctS w have piled UP 4 trad. bal
aacs- according % former Sec-t,.-v ~
LpMmsrcs Eedaelt. ecsseCat.rE So
300 100000 year. EV-ope's financial
system like he starved human
stomach has been unable 20 assir!iia,a
II consequently. S'e ihus contribute
20 the Generalization of foreign ex
sharSe, and Incidentally, BY Initiation
heip 20 lower the purchasing power ~
our own ocliu-.
When YOU consider. as Mr.. Rcr3s.,a
points out. that 81. 900 0OO. 600 -en-n-
SCENTS American dollars "a, par ana mus,
be paid by those who owe /, in de.
pfec!ated currenc!es. maxim. IL ~.
equivalent OF 5000 900 600 the r.snit
c0nnot be healthful to future A,ns-.
can trade and commerce Foreign huy
Srs are going Into more favorabie mar