The New York herald., 1921-01-17
CONSULS TO SEND
REPORTS BY CABLE
New Service Designed to Keep
America Abreast of Rapidly
Changing Conditions.

WASHINGTON Jan. 16.--In view of the
cial conditions abroad the Bureau OF
Foreign and Domestic Commerce has
announced the inaugura tion of new
monthly cable service from it's CONNER
cia attaches and tlade commissioners
located in important commercial centres
OF the world
Mailed reports from the consular and
attache service are valuable in pre-
senting these conditions, but with the
Inauguration of the new service II is
planned 10 condenee the news OF the
most recent current happenings into a
brief cabled report. which will be re-
leased as soon as possible after It's re-
ceipt.
Recent cables received by the bureau
from Australia state that the exchange
rates are seriously interfering with im-
ports from the United States. Canada
and Japan. Bank rates have been raised
and money is tighter, causing the gem
eral financial situation to grow worse.
Savings deposits, however. have shown
an increase, as have the amount of bank
loans. The contraction of credit in
England as a result OF disappointing
wool sales and the Government remit
tances on account of war loans has
made 1t impossible for Australian banks
to sell telegraphic exchange. and no re-
lief is expected before March, when the
Wheat crop can be sold.
Australian imports are increasing,
but a dull demand Is expected due to
overstocked markets. buyers generally
holding off in anticipation of lower
prices. The present prices of imported
commodities are ruling higher than In
the same period for last month, particu-
larly the price of gasolcne. Exports are
stationary and higher prices of raw
materials are generally predicted.
The outward tonnage is well proper
portioned to the demand. but port eondi-
tions are congested owing to the strike
of stewards in the coasting trade. The
railroads are also congested as result
of the shipping strike.
The general condition Of Government
finances is unfavorahle and Government
bonds are weak. The financial reports
of the Government for the year just
ended show expenditures exceeding
revenues in the States OF New South
Wales Queensland and Western Aus
tralia. The cost Of living is increasing
In Victoria and the number OF American
statesmen throughout Australia Is de-
crea sing materially.
Cable reports from China state that
the tremendous fluctuation in Chlna's
exchange rates during the past year
has been the most important factor In
the foreign trade OF that country. Under
the highest rate for telegraphic transfer
the Shanghai tael purchased 81. 5S In New
York. from which point it dropped to a
low of 5000, closing the year with
rate on December 81 of s0.73A.
The prediction In China. however, is
that exchange will fall off somewhat
from this last figure. The high exchange
rate of the early part OF the year was
hindrsnce to China's exports and to
that extent restricted her power to i'm
port foreign goods. The sharpness OF
the decline in exchange proved most
embarrassing to importers, but there is
a general feeling the lower rate, favor
ing Chinese exports as It does, will prove
as soon as the readjust-
fnents have been made.