Evening star., 1921-05-07
UNSTABLE FOREIGN
FINANCES HIT u. S.
American Business Depres.
sion Declared Result of
Trade Relations.
By the Associated Press.

CLEVELAND, Ohio. May THE
eighth annual convention Of the Ma
tional Foreign Trade Council closed a
four-day session here this morning with
the adoption Of the platform for the
coming year. as recommended by the
general convention committee. which
was drafted after consideration of the
many addresses and discussions at
the general and group sessions OF the
convention.
''The business world is suffering to-
day from unbalanced exchanges. Not
withstanding the position OF the
United States as a creditor nation, the
present unstable financial condition
Of large part of the world. especially
Of Europe, is the fundamental cause
Of our own business depression" the
committee report said.
"A return to normal conditions in
this country depends, in a large part
upon an improvement of our foreign
trade. The present retrogression Is
evidenced by the maximum Of the
country's export trade Of $928,000.000
in June. 1920. decreasing in october
to $751;. 00o.0 900. and in March. 1921. to
$384.000,000.
Foreign nations whose imports ex-
ceed their exports have been compelled
to curtail purchases because Of in
ability to pay by exports.
Must Increase Imports.
THE United States must continue to
increase its imports Of raw material
and merchandise not detrimental to
existing industry in order to receive
pay for the exports necessary to en-
plpyment by labor in agriculture and
industry; and to permit Of the liQuida-
tion Of the obligations Of the debtor
nations.
1T is generally agreed that the solu-
tion depends upon our ability to create
adequate facilities drawing upon sur
plus American investment funds In
order that the long term chedit so
badly needed by the European coun-
tries may be furnished. Most of the
countries Of Europe are unable to pay
us now and for some time to come in
gold or merchandise and unless they
are enabled to obtain credit to pur-
chase raw materials. their business
I'VE urge the immediate creation
of financial institutions under. the
Edge law, whose machinery will
facilitate extension Of long-term
credits to promote free exchange OF
exports and imports. We commend
efforts to acquaint our investing pub
lie with the necessity Of purchasing
debentures issued by such institu-
tione against approved foreign secur-
tiles for this purpose.
PaAir Crisis Over.
1.-THE red1rtion Of loans and accum-
ulation Of tanking reserves now per-
nit the extension Of credits sufficient
to accelerate recovery in certain
lines. This should gradually thaw
frozen credits and end stagnation
and provide export and import car
goes for our now partially idle mer-
chant marine.
1.-The increased confidence prevailing
in the American business world de-
notes the disappearance of danger
Of financial panic. AS liquidations
nrogress and reconstruction in Europe
proceeds normal conditions. will be
restored gradually. 1t will continue
to be the part Of prudent commercial
and financial interests to refrain from
nasty and ill-advised expansion.
"A number of manufactured prod
nets remain too high in cost Of pro-
auction to compete in neutral mar
kets with foreign goods. 1t is essen
tial that the substantial reduction in
cost of living be followed by econ
omies in cost Of production until a
stable balance of values of all COM
modities and productive effort is
established. No readjustment. how
over, can be complete without reduc-
tion of costs of railroad transporta-
tion, both for domestic and export
trananoFfAftoO."