Evening star., 1920-02-26
j, u,S.-SCAND|NAV|AN
TRADE PARALYzED
Increasing Bitterness Seen
: in Relations Produced in
3. Business World.
BY HAL O'FLAHERTY.
CAblegram to The Star and tho Chi
caEO Daily News. Copyright. 1870.

caEo Daily News. Copyright. 1870.
COPENHAGEN, Denmark. Febru-
ary 26.-The paralysis of the trade
between America aud the Scaudi-
navian countries beginning in De
cember is now virtually complete. No
American goods have been sold in
Denmark, Norway or Sweden in the
past month excert in small quant-
ties where necessity forced the buy
erS to pay the almost linpcSSl BILE eN-
change rates 10 prevent fur. her
losses through the lack of American
materials used in manufacture.
The immediate result OF ihiS Situa-
ton is manifested in IN" Increasing
bitterness between Scandinavian buy
ers and American producers. This is
aroused by refusais to accept dcltv-
cry on this side aud r-fusals IN Amer
ica to fill orders
Legal Controversies.
An increasingly large number Of
cases is reported wherv the contract
ing parties are unable 70 reach an
agreement outside the courts. BY. far
the greater number of cases. how
ever, is settled amicahly N Il spirit
of fairness ON both sides. tn" Arneri-
can firms displaying Commendable 2
leniency in granting easy terms Of
payment based upon the exchange
rates current three months ago.
On the other hand, there are those
who force the issue and leave the
impression that American manufac-
turerS drive hard bargains. This i'm
preston may die out in time. but
just now it is affecting all lines which
in the future may prove highly profit
able for American exporters
Scandinavian bankers are all o.'t =
mi at in no hall. bot an
ference in exchange will right itself
If, given time. but they look with
doubt upon the next months devel-
opmentS. when those who hav" been
speculating in marks or rubles Will
be forced to showdown.
Gamble in Marks.
The whole of Scandinavia has been
affected by this great gamble in
marks many risking all their savings
in the belief that the mark cannot
get much lower in value. Within
thirty days many who have been hold
ing marks since last fall in the hope
that they would take 4 rapid rise
will be forced TO unload.
1t is estimated that the Danes alone
have bought 1.500. 100000 marks while
Sweden and Norway mold equal or
greater sum. Other stupnndous out
lays have gone into TuhleS of the
cars regime. These eventually may
become an extremely valuable invest
ment. but for the present they show
nd more signs of recovering than do
the marks
This talk about speculation in for
eign money may be devoid of interest
in; America, but in every country in
Enrope it enters into the daily con-
rersation of every one. 1t has become
sort of contagious fever. affecting
even common laborers.
Eject on Shipping
Scores of buyers in Denmark who
intended to exploit the trade with
Germany and Russia and bought
goods heavily in America are now
shipping the goods back to Nev4
York or recalling the stock to pro-
ducing firms in America. ADVERTISE
ments are appearing in all the daily
papers Offering high premiums for
cargo space in ships sailing to Amer
lea. Danish ships are now carrying
American goods back to New York
and bringing American coal to Den
mark, thus getting American cargoes
both ways.
One exporter told me today that
he had a cargo from New York
which had made two trips across the
Atlantic and probably would make
a third. each trip Offering profit
either through increased prices in
America or on the exchange in Den
mark On the first trip across to
Denmark the cargo was refused on
account of the high exchange. Then
i'll was reshipped to New York be-
cause of the higher prices there and
now it may come back for reShip-
ment eastward to the Baltic states.