Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-31
BRAZILIAN CREDIT
PLAN MAY Be MADE
Norman's Visit Here DeCiar-
ed Possible Move to AS
SiSt Republic.
BY JOHN F. SINCLAIR.

.
Special Dispatch to The Star.
NEW YORK, March 31.-Montagu @,
Norman, governor of the Bank of Eng
land, is now said to be seeking the CO
operation of the Federal Reserve banks,
as well as other American banks, to
assist in bringing about the financial
rehabilitation of Btazfl.
Sir Otto Niemeyer, analyst Of the
Bank of England, has submitted plan
to the Bank of England for the Stahili-
zation of BraziPs credit structure and
the improvement of its foreign eK-
change.
President Vargas of Brazil is known
to be friendly with the British, end the
large stake which the British bankers
have in that country lends color to the
belief that the financial Rehabilitation
of the South American republic Is cons
sidered Of major importance to Great
Just what the Federal Reserve banks
will or can do has not been, announced
The problem at the moment. so far
as Brazil is concerned, really involves
the relation of the discount and accept
ance rates in New York to the rates on
the London and Paris money market.
Money rates in London are quoted at
3 per cent. In the United States the
Federal Reserve banks have maintained
their bill-buying rates at IL per cent,
while in Paris the rates are per cent.
Gov. Norman undoubtedly win try 70
secure the cooperation OF the onclais
of the Federal Reserve banks aS well
as the cooperation of the officials OF
the French banks in an effort TO main
tain the present level Of rates in oills.
with this settled then the problem
of loaning money to Brazil, 70 stanllize
her exchange, becomes a much simpler
one.
Australian Bonds.
The threatened default on Australian
bonds is not only reacting against tnat
country's credit, but against the creditS
of other nations in that section OF the
world
Australia and the various neighboring
states owe approximately $500, 600 600.
The Index, published by the New York
Trust Co. saws that Of this amount ap-
proximately half is maturing overseas
and slightly less than half maturing IN
Australia
'sThe per capita debt of these coun-
tries exceeded, as of June 80 last year.
ITO pounds-or about $3.50 per capita
as compared with an estimated per
capita wealth of S2,710," says the Index.
So Australia has a big job aheadl
She can refinance herself in London
and New York. but she will find it ex-
tremely difficult to do so If she allows
any defaults on her public obligations,
This much is now well understood by
Australia herself.
Governor Norman of the Bank OF
England is believed also to have taken
I'D with Federal Reserve officials ana
others the matter of securing co-opera-
ton here for Australians maturing onh-
cations.
Foreign Commerce.
The New York Chamber Of Commerce
thinks foreign commerce Is so impor-
tant that the United States Government
should create foreign commerce de-
partment, the head of which should be
q member of the cabinet.
The chamber points out that a 10 70
20 per cent reduction In production and
consumption means a business depres-
sion which the amount of foreign trade
should be able to handle, If properly
developed.
saws the chamber: 1--WE can no longer
consider economic isolation possible,
owing to the high development OF mod
ern communication and elaborate chan
nels of international trade and finance.
At the same time, the problems OF for
eign trade are intricate and require spe-
ciaIised knowledge and attention. Other
nations recognize this and have execu-
tiVes similar to our cabinet members.
BY thus giving prominence to foreign
commerce, an international trade policy
might be developed which could become
an influential element in stabilizing
business in general"
No one will DENY that foreign trade
policy is badly needed by American
business. We do $4,000, 000,0 900 Of for
eign trade annually-but we have no
policy in regard to it. That's the weak
ness Of the whole structure.
Paper Co. Merger Revived.
Four Of the largest paper-making
companies in Canada have been trying
to get together. There are stiH some
points of difference to be ironed out.
It is expected that negotiations viii
be renewed this week, and If the diff
culties are solved, announcement will be
made of a new $40, 600, 900 merger, to
include the Abitibi Power g. Paper Co.,
Canadian International Paper Co.. Ca
madam Power g. Paper Co., and Mime
sofa & Ontario Paper Co.
The average paper mill in Canada to-
day Is running about IS per cent ca
pacity, but no one is making any money.
The aim of the owners Of these va
riouS properties is to bring about bet
ter coordination so that the different
units will be enabled TO work to the best
advantage, especially as it affects the
accessibility TO pulpwood.
The impetus for this latest tie-up has
been due largely to the fact that Just
now the Minnesota g. Ontario Paper
Co, controlled by the Backus interests,
is in receivership. The price interests
and the st. Lawrence Corporation are
understood not to be involved in the
deal.
Wheat Acreage Reduction
After all the good news" last week
about the big cut in wheat acreage, the
Department Of Agriculture announces
that taking the Winter and Spring
wheat acreage together, the total acre
age reduction will be but 3 per cent
under 1880. So wheat crop Of 825,-
000, 900 bushels or more for this year is
the prospect.
The United States should consume,
as a minimum, 625, 000, 900 bushels of
this crop. Then the United States will
be faced with an exportable surplus Off
the crop is an average one) Of 200, O00,-
600 bushels, which must be added to
the ESQ, 900, 900 bushels now being car
ried over from the 1880 crop by the
Farm Board and other agencies.
SO there viii be a 450, 900, 900 surplus
TO be disposed OF in most highly COM
petitiYe markell
Not so goodl But It's well TO face
the facts early, so as TO be prepared for
any emergency. The Department of
Agriculture estimates that the total
Winter and Spring acreage for 1891
will amount TO 57,44l 900 acres, COM
pared with 59,l53,0 900 acres harvested
In 1880.
II one figures on the basis Of las
bushels an acre-the average for tn:
last % years throughout the United
States-the total crop viii be 49,, 1884,
500 bushels for 1891.
Many factors might enter to change
The worlds demands; but as things are