Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-10-19
BOOM TRADE WITH
LAT|N-AMERICANS
RedfieIds Committee Reports
on Methods of Expanding
Our Commerce.
URGES ESTABLISHMENT OF
CREDIT EXCHANGE SYSTEM
Dependence on London a Han
dicap-Suggests Perfection
of Selling Machinery.

WASHINGTON, Oct. 19.-That in
dustries of the United States will b.
seriously injured by loss of Latin
American trade if the restriction o
commercial credits is not remedieC
and that 1t is to be hoped banks viii
extend accommodations at least suf
ficient to assure maintenance of exist
the Latin-American trade committe,
appointed by Secretary of Commerce
| w. C. Redfield.
| How dependence upon London
banking saps American foreign sell
ing power and how the sister repub-
| lies are turning to the United States
| for funds to carry on industrial de-
velopment are set forth in the COM
mittee's report which was issued yes
terday. That the greatest oppor-
tunity lies In systematic preparation
| for extension of trade when peace re-
stores normal conditions rather than
in hasty invasion Of southern mar
kets is another conclusion.
The report says:
"Since August l of this year the
countries in South America whose
currency is not already ON a gold
basis have experienced a serious
depreciation of their paper money.
The export of copper, tin, nitrates,
coffee and other productsN has been
curtailed because of loss of the nor
NAL European markets. The effect
has been damaging to American ex-
porters, as, under such circumstances,
drafts due in August will not be
liquidated until November or Deem
Der. This means a large accumula-
templated by the shipper. Specie
payments were suspended.
Difficult to Get New Business.
COLLECTIONS throughout Sosth Amer
lea, therefore, are difficult, orders are
falling off, and after our exporters
have completed their contracts for
this year, there seems less prospect
for new business, unless steps are
taken to relieve the situation.
Because of the war Latin-Ameri-
can countries are confronted by the
necessity of marketing their products
despite the shrinkage of world pur-
chasing power and of obtaining funds
to move crops and to continue indis-
pensable industrial and agricultural
development normally financed by
Europe. The United States is con-
fronted by the necessity of holding
its normal export trade with Latin
America and by the possibility of
increasing the trade by filing Latin
American needs for merchandise
hitherto purchased in Europe.
production in the United States
can be maintained if there be a suf-
ficient market at home and abroad
for American goods. Production in
South America may continue but can
not be further developed unless
financial assistance be obtained.
AT the present time steamships are
available and sailing regularly from
this country to the principal ports of
Latin America and from those ports
to the United States. Many of these
vessels are unable to obtain full car
goes. Although only limited num-
Der are under the United States flag
the above will clearly indicate to ex-
porters, importers and manufacturers
that they need not hold back from en-
tering the field on this account.
To Solve Exchange Problem.
Before trade can resume it's normal
course. the exchange problem must
be solved. either by the restoration
of old. or by establishment of new
credit facilities"
The committee found that in con-
trast to the we'll balanced commerce
of England and Germany, the Latin
American trade of the United States
showed in the fiscal year of 1914 a
balance of $1S7,012,514 against this
country.
"Our exports to, and imports from,
Latin America are shipped direct"
saws the committee 'fbIt (alnost ex
clusively In South America and large
ly in Central American trade) they
are paid for in sterling bills of ex-
change
1--WE have been obliged to settle
this adverse balance of trade by re-
hitting to England either gold or
goods to meet interest charges on the
South American debt and to pay
for goods purchased in Europe by the
South American countries. Deprived
of the European loans with which
their resources were being developed,
Latin-American countries are now