Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-19
u. s. STOCK PROFIT
I AID TO FOREIGNERS
Money Made in Wall. Street
Is Used to Expand
Industries.

Special Dispatch to The Star.
NEW YORK, November 1e.-Foreign
competitors are fully prepared to take
advantage Of American errors in the
struggle for world markets. Great
Britain today Is believed by many keen
financial judges, some of them Govern.
ment officials, to have reflnanced ex-
panSion of her foreign commerce and
home manufacture through funds
gained by prompt seizure Of opportu-
mites offered by stock market and credit
conditions in the United States.
After holding of for months in 1927
and 1928, English investors sailed boldly
into the American stock market, buying
extensively and pouring funds into the
call money market like water. Many OF
them are believed to have sold at OF
near the top of the upward movement
Then the British financiers proceeded
to withdraw their funds from the call
money market. In consequence, British,
trade and industry has at its disposal
today huge sums released from call,
loans as well as huge profits resulting
IRON successful speculation, according
to Federal officials.
Movements of Sterling.
The situation is plainly shown BIZ
the movement of sterling exchange
which has advanced from $4.75 on Sep
temDer rs to about $4.878l, and this at
a time when past records show q tend
ency Tor normal decrease In the price
OF the pound. The British exclieuuer
user has been q decided gamer from
iate developments. Its unfunded debt
totals IN the neighborhood of SIS 900. =
OOO,OOO. This must be provided for
through short-term issues. A rise IN
money rates naturally would cause the
exchequer loss through the additional
interest which 1t would have Co paw for
suen financing. A rise of per cent
would involve large sums. This trend
OF Government financing was felt bv
Inc United States in its last issue Of
short-term certificates.
With money rates low, the excheouer
gains, and despite the big list of unenn-
PlOynent In england, the outlook for
Brush trade is bright, and American
exporters are extremely likely IN fssi
the added strength Of competition from
the source. - OAAA
american exporters know these facts
ana are taking steps 20 meet them
Lnls Is one OF the subjects which nm
oouotedly will come up at President
hooVers conferences designed to nro-
moee continued prosperity of industry
ana trade. The situation is not regard
ca as dangerous, but competition already
Is 30 severe that exporters feel no
cnances should be taken and no advan-
Cage presented to opponents.
amounted to $3.50, OOO. 900 in the Isst
month and the total for the wear Aa 90
far is high. with . nice balance Of ay1
ports over imports In favor of this
country. American foreign trade 30
lar this year shows o growth of he.
with 1928. ' 80 OoipA1eo
The strain Of foreign eon,net,t,o,
wiz come, 1t Is believed by men con.
Versant with international markets, in
the automobile, tire, radio and steel
concerns. And these are the indus
Grles which can least afford, at the
moment' 70 suffer loss Of foreign pat
tonnage. MOST OF them have excellent
n .s Iogs OF orders on their books, but
tne buyers are not showing q dispo-
sltion to issue specifications for shin-
ment Brisk foreign sales might serve
70 relieve this situation to o marked
oegree. For the first nine months of
Inns year, automobile and autonohile
paris exports were valued at SASS 400. =
OOO, which was q gain Of "a per cent
over the corresponding period of 1924
THESE figures serve to show how great
. factor foreign buying has become
IN this key industry.
Machinery Experts.
Machinery exports for the similar
period have totaled S462. SOC, 600 a
gam OF rs per cent, according to the
National Foreign Trade Council. The
main markets which American ex-
ports are seeking at the moment are
those OF South America. It is there
they will also find the stifFest onnos
sition. Great Britain has just ad-
vanced . coffee valcrization loan tn
Brazil and thereby acquired Q prefer
red position so far Is public senti-
mene - concerned. There IL a huge
amount Of British capital soinx into
Colombia. Peru, Chile and Venezuela.
Germany is striving desperately for the
business Of Argentina.
Both England and Germany are
adopting American production methods
and much Of the goods sold 10 them
from American consist of manufacture
ing machinery which those countries
are using to turn out goods that will
later compete with American products
In the world markets