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Show - i . : , Exchange Advance Encouraging ii . By Ira C. Tichenor - VIEWED from many angles, the recent advance in exchange rates, and particularly in sterling, is one of the most encouraging encour-aging feature of the prevailing situation, especially as it indicates a continuanco of the adjustment in general world affairs and 'an ' Improvement In economic conditions. British exchange rates, whll leading In the advance, are not the only 1 ones that have enjoyed an Improvement, those of France, Belgium and Italy i .following In tha order named. While a few others also have strengthened, j It Is generally admitted that the exchange In relation to several European countries will not, at least for many years and perhaps for several decades, ' reach parity, or In soma Instances corns within a measurabls distance of It. ; However, It cannot be questioned that Great Britain la tha pivotal point ; In Americas export altuation, and the fact that sterling seemingly Is on tha road to normalcy naturally will mean a further Improvement In tha export trade of tha United States. It Is generally conceded that no other European country la progressing as rapidly as England In cutting down the trade balance with the United States. England not only Is curtailing Imports from lmeHcatbut!srapidsly' increasing her txports- to tha L'nfted Stales.. Sterling exchange naturally has been handicapped by the loan of the United States to England of approximately $5,000,000,000, but shouJd this obligation, as now Indicated by negotiations under way. be turned Into a capital Indebtedness and spread over a number of years, it will be removed ..from Immediate consideration, although interest payments will amount to about I250.OO0.0O0 annually. With this Immense loan cared for in the manner described and with America's trade balance with England gradually being reduced, It Is reasonable reason-able to expect that sterling In the American market will be brought back to parity In tha not distant future. In fact, it was been predicted that it will would mean a drain on tha gold reserves of this country, but such an event la not among tha possibilities of ths nesr future, and certainly not so long l.'aa tha loan of the American government remains unpaid. |