Albuquerque morning journal., 1922-11-13

loans have been granted to Europe,
but once the credits are granted
they enter into the international
settlements and there is no knowing
how they will be used. AS none
of these credits were transferred in
the form of money it is certain that
they were used for payments with
in the country, and counted in set
tlement of our favorable trade
balance.
In addition to the credits created
by loans publicly Aoated in this
country, and credits granted for
the purchase Of merchandise, an
important amount of credits has
been created since the war by the
sale of property interests in this
country of various kinds by for
eign owners.
Finally, we have imported on
balance large amounts of gold in
the last two years, which have
counted in settlement of our fav-
orable merchandise balance. Our
net imports of gold in the calendar
year 1921 were $667000000.
These credits, created in vari-
Gus ways, although OF uncertain
amounts, are sufficiently definite
to indicate how our exports have
been maintained. The history of
the years since the war does NOT
disprove the contention that Eu-
rope did not have within herself
the resources with which to MAIN
tain her normal purchases in this
country, and that credits would
have TO be granted.
Our Interest in Europe
And so, looking to the future at
this time, ii will not do to simply
say that Europe must have the
usual quantities OF our products.
Undoubtedly they are needed, but
they will not be taken unless set
tlement can be made in some way.
It cannot be assumed that they can
be made indefinitely in the same
way as heretofore.
Although gold will continue TO
come to US, it is to be considered
that much of the gold that we have
been receiving has come originally
from the reserves Of Russia, and
that of these no great amount re-
mains. We will get large part
of the new production, and, of
course, if all other resources are
exhausted, the reserves of Europe
may be drawn upon for necessary
food supplies, but the exhaustion
OF European gold reserves will not
be something for us to view with
equanimity.
We do not offer this discussion
for the purpose of suggesting that
European purchases are about to
decline. We do not think they are;
we expect to see Europe buy large
ly of our grain. meats and other
products throughout this crop year,
although restricting purchases as
much as possible. 1t is important,
however, for us to realize that the
situation is not normal in the sense
that our foreign trade is in bal
ance and Can go on in the present
way indefinitely. The fact is that
our exports have been financed by
extraordinary means. The sale OF
marks in this country has been as
much a makeshift for us in fnan-
cling Our exports as for Germany
in financing her imports.
We are not independent of
Europe. 1t would be very seri-
Gus matter to US to have its pur-
chases from us decline in con-
siderable degree. We arc inter-
ested that political and industrial
conditions over there shall be upon
a settled and permanent basis.
There is reason 70 believe that
in many respects industrial condi-
tons have made substantial inn
provement in the last three years,
but the reparations question is still
in the way of the reorganization
of European finances on a sound
basis. That the recent postpone
nent Of the payments to Belgium
is not accepted as assuring final
settlement is evident from the
further decline Of the mark, now
valued at about 4,500 70 the dollar.