Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-17

Prices for cereals were so low in 1929
that there still remain 100000 tons,
mostly corn and oats, which it has been
impossible to export. Last year 5000, 900
tons of corn alone were produced. This
year bumper crops of wheat and barley
are indicated, but Rumania's prosperity
will depend in considerable measure
upon the ability to market them at q
fair profit. This, however, gives some
tentialities-and likewise Of Rumania
as a field for tractors and other modern
farming equipment.
Oil Production Increases.
Rumania's second great national
assets Is oil. In 1918 its production was
1,885,619 tons from $4,000 meters of
boringS. The years up to 1924 were
required to bring Rumania back to its
pre-war level, but in 1926. production
had risen to 3,241 1923 tons from 260, AS
meters of borings. Last year Rumania
reached the peak of Its oil production
with the stable amount of 4,827, 900
tons, making Rumania the sixth oil
producing country in the world. This
from approximately one-sixth Of its OIL
bearing territory, as the remainder is
still untouched.
Coming down from the Pennsylvania
hills, one sees from the train the cease
leSSly rolling black clouds from a well
q year ago last March and has burned
steadily ever since. 1t Is estimated
although do not know upon what
authority, that enough gas has been
destroyed there to illuminate New York
City for 40 years. In any case, this
well is mute witness to Rumania's
great oil riches, as yet but partially
touched King Carol has reason to
speak with pride of his country's re-
sources. A similar story could be told,
If space permitted, Of the Rumanian
forests.
Turning to the country's financial
condition, the fluctuations Of the cur
rency command attention. After the
war the lei stood at IS to the dollar.
During 1926 its downward march be-
came dizzy. In January, 1926, it fell
to 200 to the dollar. In June of the
same year 1t touched $50 TO the dollar,
then recovered in December 10 $50.
After slight improvement during 1927
1t was pegged at about 1856 lei to the
dollar and in February, 1929, by grace
of loan of $l02, 900 900, it was stabfl-
lied at the rate of 165-i68 to the dol
lar, or 807-S17 to the pound. Before
the war the lei was five to the dollar.
BANK Rate advances.
Meanwhile the bank rate, fixed at
6 per cent at the beginning Of the war,
was raised to per cent in March,
1929, and to per cent last December.
simultaneously the cost of money had
risen to the astonishing heights al
ready cited.
Examination of the government rev.
enues emphasizes the difficulties under
which Rumania has labored in recent
years. For the last four years they
have been as follows Gin leis):
Year. Receipts. Surplus.
1926. ...... 31,224,ooo,ooo 2,s74, 0oo, 900
1927. 49,. &c, ooo, 900 900 1857, 900 900
1928. ...... 80, 767, 900 900 $3.50, 00O, 900
1929. ...... 33,738, 100000 1,338,000, 900
The SURPRISES and deficits here indi-
ing over government estimates, and in
the last two years these deficits have
obliged the government to increase
taxes heavily. The additional load on
the taxpayer, plus the economic crisis,
swiftly made the situation serious, and
1t has not yet emerged, although there
are promises Of improvement.
Trade Balance Has Varied.
In 1928 Rumania had an unfavorable
trade balance Of approximately five
billion lei, and in 1929 the excess of
imports over exports was still about one
billion lei. For 1880 a favorable trade
balance is anticipated. From 1922 on
the country has had q favorable bal
ance during flve years, with three years
in the minus column.
As to Rumania's national debt, this
table will give some light: