The Birmingham age-herald., 1924-12-17
Men And Markets
 By P. F. B.
By ?. F. B.

United States loans are stabilizing Europe. The Federad Reserve board re- ports foreign capital flotations in the United States so far this year at s1,100,- 100000, which is more than two and one-half times the foreign loans of last year and easily the largest year since the war. Of these new issues, 75 per cent have been government loans and about 25 per cent borrowing by foreign corporations. This tonic to Europe's economic system has been reflected in improving foreign exchange rates. In- creasing quotations on the pound ster- ling, the franc and the lire have con- tinued in spite of heavy purchase of grain and cotton by Eprope in this country part of these loans have been taken in gold coin to be used in stabilizing currency, the balance has been in the form of credit to be used for commercial purposes, such as new pur- chase of raw materials and machinery. The net result has been a great i'm
 provement in the state of world trade and the increasing prosperity of Flu rope will be reflected in this country.
 Foreign exchange offers an indicator of the financial condition of these Euro pean countries. The Belgian franc, for instance, is now quoted at about 26 per cent of its normal par. It has been as high as 30 per cent and as low as 16 per cent of par this year. Denmark. near neighbor, Is evidently in much better shape financially. The kronme is quoted at 65 per cent of par as compared with a high of 66 per cent and low of 57 per cent. The pound ster- ling of England is quoted as above 9o per cent and is within a few cents of par. It was as low as s6 per cent earlier this year. The French franc at 2S per cent of par reflects a recovery from the low of IFS per cent but is not yet up to the 35 per cent it enjoyed at one time this year. The new Ger man reichmark with a par of 23.S2c is quoted at practically 100 per cent. Old paper marks are being converted into this new gold basis coin at the rate of one trillion paper marks to one gold reichmark. The Italian lire now quot ed at 22.5 per cent shows a recovery for it's 1924 low of 20 per cent. The guilder is quoted at 100.6 per cent which speaks well for thrifty little Holland. Norway does not fare so well with its krone quoted at 55 per cent. This, how ever, is high for the year and shows an improvement from 49 per cent. The Spanish pesota figures at 71 per cent recovery from 62 per cent. The Swed- ish krona is quoted at 100.4 a new high. Trade with Russia is now carried on 1n cherVonetZ with a nominal value of $5.14. Strange to say these are now quoted a. 1903 per cent or $5.16. Trans actions, however, are carried on by check only and practically all payments are required in advance. Russian trade is really on a gold in advance basis.
 The threat of competition if Europe recovers is somewhat lessened by the finding of Prof. F. w. Taussig whose study of the production per worker in this country and in Europe shows that we have a fundamental advantage. Coal production per mine worker in the United States, for instance, is found to be more than double that of Great Brit ain or pre-war Prussia, at least three times that of Belgium, and five times that of British India. It is also distinct ly greater than that of our rivals, New South Wales and Nova Scotia. Compar- ing the brick production per worker of Germany and the United States for a pre-war year the investigation shows the German output to be about 60,000 per man while the United States turned out Al ,000 bricks per person employed. Studies in other lines lead to the con- clusion that production per worker in this country Is far ahead of the rest of the world. The answer is to be found in the greater use of power ma chinery, and mass production. Europe's cheaper labor will be partially offset by this difference in man production. The economic recovery of our neighbors