New-York tribune., 1921-01-03
By Hartley Withers
Editor Of The Economist


Copyright. 1891. New York Tribune Inc
LoNDON, Jan. Livery one here
was glad to attend the funeral of the
old year. whose career was marked bv
d'sappolntments, failures, liouidations.
demorslized stock markets. uncertain
credit position, unemployment, unrest.
continued wars, political disturbances.
heavy taxation, high retail prices. Of
fetal extravaganza. There were few
tears on the grave, but much hope that
the successor will give something bet
ter. Nevertheless, the dishonored CORPSE
now buried was not quite so bad as
described in his popular epitaph.
The past year witnessed substantial
improvements in England's economic
position, and its misfortunes helped to
clear up deiusions and bring back our
national finances to a sounder basis
with big margin of revenue over ex-
penditures.
Our revenue certainly includes sales
assets that cannot be strictly classed as
revenue; our contrariwise expenditure
includes big items traceabe to the
aftermath of the war. A large reduc-
tlon in our debt already has been ef-
fected and nearly f200,oOo,O 900 sterling
has been repaid to foreign creditors.
The Chancellor of the Exchequer lately
stated in the House of Commons that
the surplus anticipated in the budget
Of last April was likely to be realized.
The increased expenditure over the es-
innate in the budget has been balanced
by economies. The general public,
however, is becoming increasingly CON
vinced that taxation is excessive and
clamors for a drastic reduction in Off
cial expenditures. The government has
appointed a Cabinet committee to scru-
tinize every penny that goes out, but
there is much skepticism concerning
the sincerity Of the government on this
point and OF the power to force
economy upon departments trained in
the habits of war extravaganza.
Better Trade Position
Our trade position is substantially
better. Britain's adverse balance in
visible foreign trade amounted to
s346,000,ooo sterling for the first
eleven months Of 1920, against se17,-
100000 for the same period of 1919 If
official estimates of the present value
of invisible exports are correct, the
real balance favorable to Britain for
the year will run from e250, 900 900 to
100000 900, thus providing a substan-
tial margin for the repayment of for
eign debts and providing capital for
foreign borrowers. The result of these
improvements in the British position
has been reflected in a considerable
advance in the value Of sterling in all
foreign centers except New York.
where slight depreciation is shown
on the balance. This, however, proba-
oily is due largely to the heavy Cont
mental purchases of dollars through
London Thus the last year has not
been wholly unfavorable to Englands
recovery, and even unemployment,
though the cause Of much anxiety to
the government and Of much unmerited
suffering to the ex-soldiers unable to
regain a footing in industrial life, has
done some good in demonstrating that
the restriction of output is short
sighted policy, thus causing better work
in many industries.
The fall in wholesale prices was un-
comfortable to producers, merchants
and all holders of stocks and goods, all
lenders who take goods on collateral,
but was essential to the return of nor
nal economic life and helped prove
to labor that advances in wages can