The Washington herald., 1921-01-16
s0ARANTY TRUST.
ISSUES WARNING.
TO U.S.. MERCHANTS
England's Far-Sighted
Policy Must Be Given
Consideration Here.
100 BILLION RICHER
Improvement Shown in Pound
Sterling Reflected in
Other Markets.
100 BILLION RICHER

The Guaranty Trust Company of
New York yesterday issued a state
ment to the American public on the
recent changes in foreign exchange,
and particularly in regard to the
change in the pound sterling with
its attendant effect on foreign mar
kets- The statement was largely in
the hne Of a warning and some per
tinent advice was offered to invest
ors in this country. The statement
follows:
Recent improvement in the ex-
change position of the pound sterl-
Ing although its immediate effect
on trade may be of a negative ma
ture on account of the hesitancy of
buyers abroad and although the
gains registered since the first of
the year may be in part due to tenn
porary influences, is sufficiently en-
couraging to warrant optimism in
any consideration of Great Britain's
ability to increase her buying pow
er for American goods, according
to the Guaranty Trust Company s
International trade survey, 'Ameri-
can Goods and Foreign Markets
The undertone of the British ex-
change market continues firm, and.
despite fluctuations by which recent
transactions have been marked
there are indications that the up
ward trend may have a decided sal
uary effect on the United Kingdom 5
foreign trade
The Guaranty likewise considers
as significant the reflection of the
sterling rise in many European
rates, some of which have reached
the highest marks in many months.
Great Britain, despite the nu-
merous internal problems of finance
and industry which she must cOur-
ageously face and work out, may
we'll enter the new year inspired by
the progress shown during the last
twelve months toward the recovery
Of her foreign trade.
Exports last November were val
ued at E119, 100000, an increase of
more than 100000 as compared
with October. and imports were val
ued at EI44, 900. 900. a decrease of al
most $4,000 900 as compared with
the preceding month. 1t is estimat-
ed that the adverse trade balance
was reduced by at least 500, 100000
during 1920.
England realizes keenly the need
for giving the utmost consideration
during the coming months to the
financing of her exports to the al
most extinct markets in the impov-
erished nations where goods are
urgently wanted, but where depre-
cfated exchanges have made normal
trade impossible. Credit balances
accumulated as a result of Eng
lands unprecedented war purchases
and subsequent credits established
through the mechanism of the king
dom's foreign trade organization
have been exhausted. and the slack
ening in British demand for raw
materials has Increased the diff
Guilty of supplying fresh credits.
However, with considerable senti-
ment favoring the extension of ad-
ditionaI credit, it is not improbable
that these potential markets of Cen
tral and Southeastern Europe may
again become factors in Great Brit
aims trade.
Significant in considering Great
Brftain's outlook are the figures re-
Gently issued by the Savings Banks
Association of the State of New
York, which show that the British
Empire profited more in a monetary
way as a result of the war than any
other nation, her estimated wealth
now being approximately S23O,O00,-
100000, as compared with S13O,OOO,-
00O. 900 when the war strated. This
gain Of 500. 900. 100000 is attributed
to the wealth added by the MesopO-
tamian oil fields, African territory
taken from Germany. and elimina-
tion Of Germany as a trade compe-
titor, and will serve as an important
asset in the recovery and expansion
OF foreign trade"