I More About Exchanges I 4 0 IN A dis discussion of the question of exchanges a few days ag ago in connection with recent advances advances advances ad ad- vances vances in the exchange rates of several European Europe countries and especially those of England and Fra France ce It it iwas was suggested that owing to the burden burden burden bur bur- den den of debt which all of these countries ar arS are S carrying and the enormous amount of paper c currency that has been issued by many of them themI I and without a sufficient base either of gold or S silver that such rates would not return to the average average of prewar time within a reasonable period if ever Although it was not specifically stated dated at the time l l loans ans by the American government to its allies during the war and individual loans and investments by Americans in foreign stocks and andS and'S S 'S bonds bonds and in industrial projects constitute a av v large percentage of the burden of debts which various European countries are carrying The aggregate of these American credits constitutes an added weight to the theory that many Americans Amen Ameri c cans n who have purchased foreign currency issues r in expectation that the exchanges will return wi within hin a comparatively short time to prewar levels leveIs will be sadly disappointed As a matter of fact exchange is now in a slump t i The aggregate of all American credits in inS S Europe is estimated at This S in includes ludes direct loans of the United States government government govern govern- ment nen of approximately about credit on surplus war and navy materials nearly in suspended J trade balances and possibly in foreign stocks bonds and other investments by byS S individuals In connection with the latter tatter item it is in int interesting in- in r t resting to note that the figure represents a fair fairS S average of like investments investments' I by Europeans in Ame American ican stocks and bonds for a number of years years preceding the war and as a result of which possibly in interest and dividends J was paid annually in American dollars Practically S J ti ally all of these securities were sold by Europeans Europeans Euro Euro- at various times during the war and now nowr r the the situation is exactly reversed S Even at 5 S per cent the American Americ n cr credits t abroad abroad would amount to anS annually an an- S n ally or the figure which when first attained as the cost of operating the United States government government gov gov- for for a year created such a sensation 1 Tr Tr Truly ly all s signs ns are re pointing to the dollar sign