The New York herald., 1921-03-07
FINANCIAL NEWS
AND COMMENT
Belief Is General That Indus
trial and@Trade Readjust-
ment Will Be Long.
FOREIGN DEMAND NEEDED
Progress in Coping With In
flatiOn's Results Shows in
Many Ways.
FOREIGN DEMAND NEEDED
ny WILLIAM w. CRAIG.

one who examines the financial situa
cuities and problems entaiied In th,
German indemnity are realized 10 {
greater extent by American bushes.
men than they were at the end OF 1920
and. second. that the belief has made
! firm iodgnlent everywhere that indus.
trial and trade readjustment must bs
long drawn out. II is felt that whethe,
or not the Germans accept the full de.
nands OF the allied countries the
process OF exactlng payment Will re
quire application OF the greatest DO
itical sagacity and far sighted bust
ness management. AS this is written
indications point toward the final con-
sent OF the German delegates In Lon
don to the reparat!onI plan. with cer-
tain reservations. perhaps. but to an
extent permitting a working agreement.
But such development would be only
the beginning OF the task OF collection.
II would not determine the manner In
which Germany would pay: It would
only suggest principal and interest
without disclosing the true proportions
Of the medil for payment-goods. SER
vices and gold. It would not show the
effect which a heavy outflow OF Ger
man products would have on the mar
kets for the products OF other nations,
including America. More important
than this. It would not prove beyond
question OF doubt that the German
people would assent to the additional
burden which would come upon them
through the action OF their Govern
ment. In effect q successful outcome
OF the London conference will at the
best be only step. although an i'm
portant one. toward the disposition OF
the foremost business problem In the
world to-day.
Demand From Abroad Needed,
II is fortunate that our markets ap-
preciate the difficulties OF the repara-
tons situation. The slowness OF pres
ent liquidation OF goods and farm prod
ucts is caused In great part by the laci,
OF an adequate demand from abroad.
It is threshing old straw to state thai
II there was market In other coun-
tries for all OF our surplus wheat. cot
ton, wool and manufactured materials
the banking situation would be dec,d-
edly easy and the spring season could
be entered with all confidence OF pros
perity. II ts @ question worth consid.
er!ng whether our markets now SO
sluggish. are not considering the posi-.
biiity OF a restricted demand from
Europe for some years to come: a
change p!voted on the reparations
which will force the cultivation OF mar.
kets IN South America and Asia with an
intensity not known before. Is (. no,
possible that out OF the repa-ations
which must be settled largely in goods
Will come closer unity of trade be-
tween European countries. especially II
Russia enters the field as an inpor.an,
producing and trading nation7
Germany VIII need vast amounts o,
raw material. to be turned into prod
ucts against reparations payments 4
will be TO the interest OF all the nation.
concerned in the reparations matter e
share In the sale OF the raw rnateris
and the completed goods.
OF course the American markets vii
be counted IN when European sales ar,
considered. We could hardly get aIon,
without the products Of England
France, Germany and the others an,
the international debt situation demand
that Quantities OF foreign products b
received. Nor is there any reason q
believe otherwise than that Europe VII
supply the iiveliest sort OF cornpetitio,
for American producers IN all the worl
markets. But with the problem owe
war damages what . Is the chance
certainly point toward more sharpl
drawn lines OF commercial intercours
between the countries across the AZ
iantic. with the corroliary that Arneric
will need to put her best foot forernos
TO the east and the south.
Clearing Imitation Aftermath.
The difficulties attending the do
nnestio buEness return 70 nornaic-
continue to be emphasized by reduces
or eliminated dividends, unsatisfactor,
railroad earnings. slow reduction OF In
ventories and stubborn maintenance o
high bank loans. That progress 10 be
ing made In clearing away the after
math OF initiation Is shown In many di
rections: but the time element IN al
important Tho stock market has sug
9ested for the last five or six week,
that the public is not impressed with
immediate prospects Of industry and
transportation. Those who buy ytock.
FOR investment or long term speculation
evidently want TO see wages and price:
carried further from the boom peak
And me movement cannot be completed
IN few months, perhaps not In a few
years, although readjustment thus fal
has progressed TO an extent TO poin
toward neasurably better conditions be
fore the current year shall end.
President Harding in his inaugura
address naturally touched only th'
borders OF the questions OF industry
finance and trade which are pressinf
| from all sides. He may be expected e
| let Congress know when II convene.