Elbert County tribune and Elbert County banner., 1921-09-02

parts of the world. This is clear
from the exchange rates. On
June 18th last sight drafts ON Ma
nila were quoted at s percent, that
is, the peso was worth Acc, parity
being 55c.
The Philippines possess things
that the world must have. If,
therefore. unsettled conditions of
the world markets have killed prices.
those samem arekts will come back
to the Islands as the process of re-
adjustment proceeds. Even now.
were 1T not that the government
needs additional revenues to keep
public works going and currency
stabilized, it is believed it could have
the national bank was able to re-
lease considerable portion of the
frozen" funds.
The situation in the Islands is
one that is common among all the
countries and which the usual eco
nomic remedies have failed to ellev-
iate. This explains to a graet de-
gree the economic gloom that it is
reported now preyades many coun-
tries of Europe and South America
England has failed to convert her
war loans into irredeemable stock
md her currency and note circula-
ton has decreased LII. 100000. Her
industry is practically stagnant,
while products from the continent
aree pouring in in increasing quaint
ties.
In France two great banking iu-
5titutions are in critical condition.
The Banque de Province is reported
70 be failing, while the Banque de
Industrielle de Chine, one of the
largest French banks in the Far
East, has suspended payments.
In Cuba six large banking houses
have failed and a moratorium was
in force for several weeks.
In Argentina, during the first
our months of this year, bankrup-
icy has reached higher figure than
1T any time since 1914. The fail
rres totaled 4S,4s9,s0O pesos. The
peso is about SAC United States
currency.
Brazil is in the throes also of fin
ancial hardship. Just recently a
delegation of Brazilians have made
4 plea for longer credits from
American financiers.
In Ecuador there is practically an
economic impasse Inundated by
American goods. its market is un-
able TO absorb them or to find the
necessary capital to finance them
The rate of exchange is ruinous and
unpaid drafts reaching several mil
lion of dollars have accumulated in
The barSs with little hope of cancel
lation.
In America the plight of certain
interests is very serious. Farmers
ire in condition bordering on des-
)eration. as the value of their pro-
luct is only about 60 percent of
pre-war days while the price of all
they buy is two or three times as
high. They cannot obtain sufhc-
'ent credits nor are their notes re-
iiscountable as they run for longer
periods than commercial paper. The
Failm es in 1919 were 4726. The
markets are filled with unstable
goods. The south whose economic
life is bound up in cotton, faces
economic paralyzation as a result
If the fall in price of that cominod-
ity.
For a nation to be compelled to
]e indebted is not indication of in-
,apacity. If that be the case all
the world is suffering from incapac-
'ty and the Filipinos are in good
company. II that be taken as a
premise and Philippine indepen-
lence is withheld, then 1t must be
lrgued next that all the countries
If the globe now indebted to the
United States. and which is no.
should be colonies of the United
States for being financially incompe-
ent