Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-02-06
AMERICANS TO GET GOODS
HENRY DAWSON ASSERTS
HISTORY WILL BE MADE
Indications Arc Europe Proposes 10
Limit Imports TO Rare
Necessities.
tBy un.vcrral Service :

NEW YORK. Feb. 6.-'Thcre will
be history made in Wall Street before
made today by Henry p, DAWSON. the
banker just before nc sailed or the
Cunard Liner Mauretania Tor England
Accompanying Mr.. DAWSON. who is
organizations. WIS Eliot Nadsworth
who is vice chairman OF the American
Red Cross central committee.
"Ir | should tell YOU what I think
OF the situation il would not be ii,
TO print" said Mr.. Dawson. 81 believe
history will be made in my absence.
Asked II he had any remedy for the
situation 70 suggest MIR. Davidson said:
I'm afraid not"
MIR. Davisons prediction. while /;
was elucidated ny no EXPLANATION hy
him and comment upon which was y :
fused al the banking offices OF j. L.
Morgan & Co. was regarded as re-
fcrr!ng TO the curta!lment OF foreign
markets for American goods through
the tremendous drop in foreign cx-
change ana the expected drop in the
cost OF living as direct and almost
immediate consequence.
Financial men. exporters ard manu-
lecturers discussed with very lively in
:o-est today the changing conditions
growing out OF the new situation, the
consensus apparently being that with
foreign exchange at low chb. Europe
will perforce limit imports to the bar
est necessities. restriction on broad
, scale of the purchase OF American
goods would release in the American
market for consumption here q large
quantity OF American-'nadc goods and
prices would tumble accordingly, il
was held
Europe Seeks Necessities.
Cotton. food and other necessities
imperat!vely needed In Europe viii soon
constitute the chief exports from Amer
lea until Europe's financial equilibrium
is restored. according 10 prediction
cabled here today. This vii! follow
az a resnlt OF the curtaircnt of inn
ports by Europe III a general exchange
rate adjustment, the Guardian as
serted.
Henry p. Dawson declined to discuss
the mission upon which he was sailing
TO Europe. or 20 state whether 1t re-
lated to public or private affairs. but
his remark that there Will be history
made in Wall Street before my return"
gave rise TO belief that his journey.
Paris. is intimately related 10 tho for
eisn exchange situation
From various points the United
States side OF the Canadian border came
reports today that the discount rate on
Canadian silver and currency will have
q sharp advance beginning tomorrow.
american banks demnndinE 20 re- cent
discount y
Relief for Consumers.
The long suffering consumer is at
last 70 get relief through the inevitable
consequences of the foreign exchange
collapse. according 10 statements re-
ceived hero from Chicago bankers. who
declared that all the legislation, Fed
era! price commissions and housewives
campaigns combined had been unable
to effect what the decentralization Of
foreign currency is doing and will do
to smash high prices in America
American exports must practically
cease with the low rate OF foreign cx-
change. and, also, the immutablc law
of supply and demand must operate to
bring prices down when American
made goods. barred from export have
piled UP huge surplus in this country
The reduction in prices will continue
until the United States begins buying
heavily abroad" declared Prcsidcn; "
a. Tray1or. OF the First Trust and Saw
ingS Bank OF Chicago. This would
send the rate OF exchange up again In
the meantime. an enormous surplu. will
accumulate In this county. due to the
curtailinT OF exports. While this may
mean unemployment for many persons
* will mean Il sharp reduction in the
cost Of living. Wages, OF course rill
come down with the prices. hut tho
Salaried person who has had slight
raise in pay Will benefit thereby. n"
question OF how soon the consumer will
feel the reduction IN prices will DEPEND
largely upon how soon we cease export.
ing goods. Indications are that the
HOUSEHOLDER will notice = change in
priceS VERY soon"