The Dallas express. [volume] (Dallas, Tex.) 1893-1970, 1921-08-13

"frozen'-there is no way to liqui-
date collateral Encouraged by tie
tremendous prosperity experienced
soon after the signing of the Armis-
tice this semi-gOvernmental inst'tr'
ton carried on an extensive bank
ing business, extending credits
freely to private commercial enter
prises and lending money to cocoa
nut oil concerns, copra producers,
sugar planters, and many others. The
depression ensuing found its funds
tied up. If only the war boom could
be revived the difficulties now felt
would dwindle or even disappear.
World industries, however, seem to
have come to a stop. International
transshipments of goods have ceased.
The machinery of EXCHANGE and credit
is clogged and does not function as
usual. Consumption even of goods
called necessities N"s decreased.
Nevertheless the general business
outlook in the Philippines is bright
at least, by comparison with other
parts of the world. This is clear
from the exchange rates. On June
18th last sight drafts on Manila were
quoted at per cent, that is, the paso
was worth As percent, parity being
so cents.
The Philippines possess things that
the world must have. IT, therefore
unsettled conditions of the world
markets have killed prices, those same
markets will come back to the Islands
as the process of readjustment pro-
ceeds. Even now. were it not that
the government needs additional rev.
enues to keep public works Going
and currency stabilized, it is believed
it could have Jared along on current
income until the national bank was
able to release considerable portion
of the frozen" funds.
The situation in the Islands is one
that is common among all countries
and which the economic remedies
have failed to alleviate. This explains
! TO a great degree the economic gloon
that it is reported now pervades many
countries of Europe and South Amer
ica England has failed to convert
| her war loans into irredeemable
stock and her currency and note cir
culation has decreased 117,750 600
Her industry is practically stagnant
while products from the continent
are pouring in in increasing guam
titles.
In France two great banking in
situations are in a critical condition
The Banque de Province is reported
TO be failing, while the Banque In
dustrielle de chine, one of the largest
! French banks in the Far East, has
suspended payments.
I'm Cuba six large banking houses
have failed and moratorium was in
force for several weeks.
In Argentina, during the first four
months of this year, bankruptcy has
reached higher figure than at any
time since 1914. The failures totaled
4S,489,S00 pesos. The PEST is about
"a cents United States currency.
Brazil lis in the throes also @
financial hardship. Just recently 9
delegation of Brazillians have made a
plea for longer credits from Amer.
lean tinanciers.
In Ecuador there is practically an
economic impasse. Inundated by
American goods, its market is I'm.
able to absorb them or to find the
necessary capital to finance them
The rate of exchange is ruinous
unpaid drafts reaching several mil
lions of dollars have accumulated il
the banks with little hope of can
collation.
In America the plight of certain
interests is very serious. Farmer!
are in condition bordering cr
desperation, as the value of theil
product is only about 60 percent O
pre-war days while the price of al
they buy is two or three times a!
high. They cannot obtain sufficien
credits nor are their notes redis
countable as they run for Longer
periods than commercial paper TIL,
failures in 1919 were 1925. The mar
kets are filled with unstable goods
The south whose economic life /!
bound up in cotton, faces economic
paralyzation as a result of the fal
in price of that commidity
For nation to be compelled to b.
indebted is not any indication of in
capacity. If that be the case ther
all the world is suffering from in
capacity and the Philippines are il
good company. If that be taken as {
promise and Philippine independence
is withheld. then 1t must he argued
next that all the countries of the gloh,
now indebted to the United States
Hnd which is not. should he colonies
of the United States for being finan
o'ally incompetent