The Archive · 1920

Ability to Buy

An important comment upon the ability of the Central Powers to buy—which is one factor on which investors in rubber are counting for the increased profits they hope to see in the future—is provided in the monthly financial report issued by Lloyd's Bank. It points out that for some months past large quantities of goods have been imported into Antwerp for transit to Germany, but owing to the abnormal condition of exchange Germany is unable to finance them und they are now crowding out the warehouses. Only a few food con: mittees and cooperative societies show any inclination to buy the bare necessities of life, and consequently trade in everything else is at a standstill, much to the detriment of Belgium's position. This is a very serious matter for our ally, for while she is working up her export trade to n degree commensurate with what it was before the war, she is unable to use her resources to the full because of the economic disaster which has befallen her neighbour. AAs we have pointed out above, the increased prosperity anticipated in such an industry as rubber depends to a certain extent upon the demand from the Central Powers and later from Russia, all of whos needs are very great, but judging by the state of affairs revealed by this news from Antwerp, this demand will be much longer in taki effect than has been hoped.

Text read from the printed page and cleaned; old type leaves the occasional error.

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