The San Francisco call., 1903-09-04
THE ONLY METHOD.

- ECRElAk4 SHAW, IN MS aQQreSs at OhlCagO
before the National Association OF Merchants
= ~ and Travellers, presented review not only OF
our finances, but OF our foreign commerce as well.
The speech, therefore, is one OF the most notable
that has been made OF late by a member of the Cab
llef and viii command the attention OF the entire
bglsiness world.
Financially the condition OF the country is sound
and the only defect is lack OF elasticity the
: fency. The prosperity OF trade and industry is
:: safe apparently, as is the national treasury. The
Secretary does not hesitate to say that there
lists no element OF immediate danger in any part
Of our complex business machinery, and that if any
:. panic or depression It will be due solely
some alteration Of the public mind; or as the Sec
retary puts it: IF disaster it will be psyche
logical and not logical The microbe if it exists is in
the mind and not elsewhere"
Solid as are the foundations of prosperity and
" bright as are the prospects ahead, the situation is
p. by no means as good as it might be Just our
financial conditions could be improved by elastic
currency, so our industrial and commercial cond-
tons could be improved by the development Of deep
sea merchant marine capable OF extending and ex-
.panding our foreign trade. The two things then
= which we need at the present time in the way Of
. national legislation a currency reform bill and
merchant marine bill Each is important and each
should be provided at the coming session Of Con-
-. gFess.
AS stated by the Secretary the productive capacity
ofthe American people is now equal to about SII ooo
100000 annually. OF the total product export
about 81 and import about 81 900 900 900
Of merchandise, mainly non-cOmpetitive with our
home products. We therefore consume about o5 per
cent of all that we produce and It IS upon that fact
our prosperity is largely based. 1t follows an
easy deduction that if any time fail to consume
u +ta
we shall either have to find additional foreign mar
kets or undergo period OF over-producton with the
consequent inevitable depression OF industry. To
provide for obtaining foreign markets is therefore
one OF the prime duties OF the craftsmanship OF the
time.
Secretary Shaw put the case this way: The balance
OF trade in our favor nearly equals and occasionally
exceeds that Of all other favored nations the map
We sell s., ,ooooooooo per annum to Europe and 20
per cent of the people OF the world are consuming
about = per cent OF our total exports The United
Kingdom with only 3 per cent of the people of the
world consumes about 40 per cent of total sur
plus production Those percentages of the worlds
population cannot be relied upon to take always Is
per cent Of increasing surplus product and ac-
oordingy It is plain business duty begin look
out for markets.
Having thus stated the problem the Secretary went
on say there have been three solutions proposed
Free traders recommend that open our markets to
foreigners III the hope that the foreigners will return
the compliment and open their markets to US Reel
procity men suggest the adoption OF a system OF
international treaties by which, through an exchange
OF cOurtesies get something from the foreign
er by giving something in return Neither of those
solutions be accepted, for by following either
we should have TO give than we receive and lose
than we gain. However valuable foreign mar
kets may be. the home market is better
To the third solution-tlat of expanding our for
eign markets by building up merchant marine
the Secretary turns and finds it to be the only one
acceptable. He says: IF we ever secure the trade
Ct the countries to which l have referred we will
first secure regular lines of communication with these
countries and if secure these lines assistance
must be afforded. Do not misunderstood me- am
mourning the defeat of any ship subsidy BILL but
shall mourn exceedingly the defeat of bill if any
such shall be introduced which If enacted would
insure regular lines OF American ships flying the
American flag and carrying American merchants and
commercial travellers with their wares and mercban-
disc the product Of American labor into those coun
tries TO which have referred Such bill must ofe,
special advantages to ships plying between our ports
and countries where our trade is undeveloped"
Such is the conclusion Of the argument Secretary
Shaw says the establishment OF lines of merchant
vessels is "the only method BY which we shall ever
get our share OF the commerce Of the world. II is
the method OF our rivals and we must adopt if OF
lose the