Evening star., 1922-11-25
GAINS IN u. S. FOREIGN TRADE !
ARE EXPECTED TO CONTINUE
Even Bankrupt Nations Have to Buy
Foodstu#s and Raw Materials
Outlook Improves

crease in staple shipments TO the
other side. But two important dis
closures were brought out by the Oc-
tober figures. One was that In the
first month under the new tariff
schedules the foreign demand had not
been adversely affected The other
was that, despite the depreciation in
continental currencies since the hrst
of the year, and despite the supposed
diminution of European buying pow
er. foreign nations were able to take
s100.OO0,O0O more American goods in
october than they did as the average
Of last January and February.
Curtailment Of Buying Unlikely.
The fact which alarmist critics con-
tnually set aside when referring 10
Europe's economic troubles and their
possible effect upon the United states
is that even.if q country goes bank
rupt it does not mean an entire loss
still producing and selling its prod
ucts abroad. 1t, therefore. still has
the means to buy the necessities OF
business life-foodstuffs and raw
materials. Analysis of what conti-
mental Europe has been purchasing
from America for the last twelse
months shows that it is down pretty
well to these two necessaries. and the
conclusion from this is that further
curtailment is quite unlikely under
any conceivable circumstances.
Exchange Situation Improved.
Further reduction in French bank
note circulation, accompanied by 4
further recovery in the franc. the sus-
tained Improvement in Italian IRE
and the return of the pound sterling
to within ) cents of the highest OF
the wear, are all favorable symptoms
in the financial situation of the week.
On the other hand. the point must be
borne in mind that the decrease Oh
over 1.SOO,OG0,O00 francs in French
paper issues during the last Two
months has only been made possible
bv large repayments by the govern
ment to the Bank of France.
These repayments cannot be ex-
pected to continue while France is
operating at a huge deficit. and con-
sequently the doubt will be raised as
to whether the detiation that has oc-
Cured since the summer VIII turn
out to be more than temporary
Politics and the Railroads.
Railway stocks and bonds have gone
down more than other sections of the
ma rket during the week. and this nat
urally raises the question of how much
, owners of railway Investments are dis
turbed over the recent political changes.
and over the probability that these Will
lead to more agitation for the amen d.
ment Of the transportation act. The
proposal of the radicals is that the pro-
! vision guaranteeing rates that will per-
nit the roads to earn at least > u per
cent upon property value be Cancelled.
In addition to this the attempt would
be to make mandatory cut in freight
rates on farm products and possibly a
more sweeping reduction affecting many
other lines. If this were done roads
which. during the last few years have
been falling behind or at least barely
covering their fixed charges would un-
doubtedlv go on the rocks.
Quite possible this thought has been
behind some of the recent selling in the
railway list although the bulk OF this
selling like that III the rest of the
market is assignabe to the eXigencies
Of hard-pressed spectators.
Copyright, 1922