Evening star., 1920-12-04
BY STUART p. WEST.

NEW YORK, December 4.-In q sur
| vey OF the general financial and in
| dustrial situation one is justified in
! able developments than unfavorable
| in the course Of the past week. The
seriousness Of the problems still to be
solved. Of the obstacles yet to be
overcome. cannot and should not be
minimixcd. But there Is no question
that in certain respects the outlook is
brighter than 1t was, and that there
are more solid grounds for the con-
vtction that however painfully slow
the process OF recovery may be we
are on the road to convalescence
First Of all. condition in Europe,
that Is, the lands Of our allies, are dis
tinctly better. While the incomes Of
these foreign governments were fall
ing Tar short of their expenditures.
and while their trade figures showed
that they were running more and
more into debt. the position was not
pleasant. 1t was never bad enough
to warrant the wild talk OF repudia-
tton that was INDUCED in some quar-
ters: nevertheless II was sufficiently
grave to cause us some concern when
we thought OF our enormous credits,
both public and private, and it did
often raise the question what good
was 1t doing the United States to be
creditor instead Of debtor nation
wonderful change for the better in
Great Britain and in France.
From the beginning Of the British
fiscal year April / to November 20
government expenditures were $780,
0o0.0o less than receipts, and during
the same period $500. .00O. 900 has been
paid Off on the British government
debt. Along with this, while Imports 8
have not been cut down 30 much, ex-
ports have expanded. and the latest
returns OF the London Board of Trade,
which were for October showed the
two items closer together than for
any month this year.
French Credit Balance.
The last official estimates for
France are that in 1921 the treasury
VIII have a comfortable balance on
the credit side for all routine opera :
tons. This does not take account of
the extraordinary requirements Incl
dent to maturing government oblika-
tons But there is no longer cause
Tor worry on this latter score after
the astonishing results which attend
ed the opening of the new French in
ternal loan this week. Subscriptions
70 this loan FAR surpassed expecta-
tons. running we'll up toward $1,000
100000. Important as this is in pro
viding money for all imaginable needs.
1t is still more important as q tre-
mendous vote OF confidence on the
part Of the French people in the re-
cuperatfve powers of their country.
Rapid progress has been made also
In readJusting the French foreign
trade. Imports have been reduced and
exports expanded 50 that the latter
now amount to 80 per cent of the for
mer, whereas the best record in pre-
war times was percentage of ex-
ports to imports of 80 per cent.
BY these accomplishments is removed
the last vestage Of doubt about the abil-
ity OF our principal debtors in Europe
to meet their obligations. AS soon as
nation, like an individual. gets Its in
come above its outgo and starts in pay
ing its debts. its credit is bound to i'm
prove. To be sure, this has not yet
been reflected in the foreign bank state
nents. This weeks report OF the Eng
lish bank revealed a proportion Of less
than per cent reserve to liabilities,
the smallest Of any during the war or
since: the lowest. in fact. since the
Overland -Gurney panic Of 1857. But this
condition. as is well understood. was