OCR Text |
Show FOREIGN TRADE COMMENTS BY BOSTONBANK While the foreign trade of the United Elates continues o a feign level, oxchango rates are lnteTfer-rlng lnteTfer-rlng greatly with exports, and when the Immediate and urgent demands of other countries have been met, a marked decrease In the volume of shipments may bo expected. Some improvements have been noted In foreign exchange rotes recently, exchange ex-change with London having bocn particularly par-ticularly strong. Steps toward the organisation of the Foreign Trade Financing corporation nro bolng taken, tak-en, but there Is somo doubt regarding regard-ing tho extent to which this corporation corpora-tion can rolluvo the situation It Is manifest that othor countries with tow exceptions, aro not able financially finan-cially to purchaso our products and If wo nro to retain a proper proportion propor-tion of this trade, wo must extond credit to or purchase sourcltlcs from these countries. Tho greatest mensuro of recovery as might bo expected, has .been made by Great Britain. Its foreign trado last year Incroased materially, exports ex-ports showing an Increase greater by 226,344,767 than tho lncrcaso In Imports. Tho British government has removed somo of tho restrictions on tho export of fuel, the domestic demands having boon mcti In somo quarters there has bepn talk of an early reduction In the discount rata or tho Bank of England but this suggestion Is strongly opposed by somo of tho prominent British fln-nnciors fln-nnciors on tho ground that tho recovery re-covery has not been BufTiclent to Justify Jus-tify tho action., Reports' from Franco indicate a moderate reduction In commodity prices, which Is a vory encouraging feature. Franco In nil probability, will ask from tho United States this year a loan of not loss than $100,000,000 and possibly much more. In this connection tho present, obligations of Franco to this country may bo refunded Frnnco Is doing consldorablo business with Germany and appears more Inclined to accept goods In partial payment toward tho Indemnity. Franco has removed tho oxport duties on somo products, as these, had chocked business. busi-ness. It also has reduced Impart duties on articles ncceesary for French manufacturers, such db coal. Belgium reports substantial recovery, recov-ery, Its exports of Iron and steel hav- ing increased largely. -. ,- Even Germany Is showing steady ; though slow improvement. Tho nam- H bcr of ldte workers December 1st was considerably smaller than ou M Septombor 1st, and trado and labor "M conditions aro better. Tho total for- M elgn trado of Germany in 1920 was 'M $1,600,000,000, as compared wltk H about $6,000,000,000 In 1913. H Trado with tho United States am- jH ountcd to nearly $400,000,000 as H against $633,000,000 in 1013, the re- H cord year. German manufacturers nro H competing successfully for foreign H business, nnd British concoms aro H encouraging business with Germany Against theso favorable European de M vernpments may bo placed the col- H lapse of Austria, where tho adminhv H tratlon may bo taken over by 'tho H Reparations comlsslon. Austria how- H ever, Is not n manufacturing country H and has not tho natural resources .of M most other European countries', i M Conditions In South America 'are H not favorable, and business In most H countries Is stagnant. Owing largely B to tho adverse exchange rates there jB has been a consldorablo repudiation H of dob owed to exporters In tho Un- H ltcd States, and warehoused nro filled B with merchandise which can ho sold B only nt serious looses. In Argentina B bank rates aro high, monoy is tight jflf nnd failures havo Increased, tho to- K tnl In December having been double ffiS tho number a year ago. In Braill &gl credit Is restricted, tho flnanclnl elt- ?Wj! uatlon is not Improved and tho trade g m balance Is becoming moro unfavor- flic.' able. Chllo Is suffering with the glU other South American countries, fflSi though perhaps not to a llko c.xtont. 'IskS Its trado balance In December was nsai favorable It Is expected that mibstan- $Bl tlal loans will bo made to thcBe coun- 3 tries this year and this should do gj2 much to stimulate trado SB The readjustment proceva In Ja- W pan 1b presenting many dllllcultles. HV Both ltnports and exports havo de- PSJj cllned grently and an adverse trado nBj halanco Is reported, which In unus- wM mil tit this season of tho year. Japan pB. experienced an orgy of extravagance WM and now Is suffering from tho reae- 9B tion. Trado is almost stagnant nnd Btocka of merchandise nro vory largo. jgfl THE FIRST NATIONAL BANK OF H BOSTON H B - m MHBHHBHHHHHMWHfiBB |