The Birmingham age-herald., 1914-06-04

orators today voted unanimously against granting most of the miners demands. The miners deferred a vote on the opera tors proposals until tomorrow.
 first effect of this action of the state de- partment was virtually to close the door of China against the United States. For
 nearly year American industry and American capital stood and watched Ger
 many, France, Great Britain and Japan as they advanced upon various Chinese markets and negotiated various loans with China.
 There appears to have been some mis-
 understanding on both sides in this mat ter. The administration at Washington was persuaded that the American syndi- cate purposed establishing a monopoly, so that none but those favored by the sym dicate could have any part in the oppor- tunites which China was offering. on the other hand, the syndicate was per- suaded that the administration was ut terly indifferent to the establishment of American capital and the placing of American machinery in China. Not until some eight months had passed did 1t be- come known that the administration was fin thorough sympathy with all reasonable
 and proper undertakings by Americans with respect to China. There had been,
 
 until President Wilson, in his brief state-
 ment to the members of the foreign trade convention who called upon him. said that 1 there is nothing in which he is more in- 1 terested than the fullest development of the trade of this country and it's righteous conquest of foreign markets. "One of the I things which we hold nearest to our
 heart" the President said. Ifs that the government and you should cooperate in ha mt iyr,a fo a h. 1 ing our common object" Cooperation of ] that kind was all that the American syn dicate expected to secure when the agree
 ment was made with the administration of President Taft which justified the or
 ganization of American financiers which became one of the members of the six
 nation group.
 l There was, however, further enlighten- ment upon this important matter fur
 nished by the address of Willard Straight
 of New York, who was for some years a
 dweller in China, representing various i'm
 portant American interests there. Mir Straight intimated that as 1t was deemed lexpedient by the present administration to withdraw the support which had been given by the state department when Mir Knox was secretary to the American syndicate it was inevitable thatsthe United 1 States should seek other means or com passing the purpose which animated the American members of the six-natior group.
 That way has been discovered Some lessons were obtained by careful study of the contract entered into by the Stand ard oil company with the Chinese gov ernment It was then learned that fl American banks and American capita could be associated in such manner ai to provide funds with which to absorb the loans of foreign nations, and especially oi China, then American industry would have no great difficulty in securing 6 reasonable amount of trade with China and with other foreign countries.
 It was Mir Straight who expressed ir a brief sentence the modern idea respect ling foreign trade. It used to be said that trade followed the flag. But it wal
 afterward found that this did not always happen. Then again 1t was frequently said that trade follows the rails, and from one point of view that is true. MT Straight asserted that trade follows the foreign loan, and recent experiences IT China and elsewhere proved the truth oi this statement If we are anxious to de- velop our export and import trade in tho countries to the south of us, MT. Straight asserts that we must by means of for | eign loans establish ourselves as ths l guardians of the financial stability as vel
 as the territorial integrity of these na' tions. China is now understood to be l financing some of her important under
 takings not by means of national loans but by means of provincial or local loans whereby security may be furnished witt which to obtain credit of money. Some.
 thing of that kind American bankers and men of capital must do If there is to be furnished good aid to our merchants and manufacturers. Only few hours before President Wilson states in his brief wordl or welcome to the members of the foreign trade convention that one of the thingi Which he held closest to his heart Is co | operation between the government ant
 the representatives of American industry whereby should be established great for
 ign trade Ar Straight asserted that 1T
 order to command the trade we should
 have there must be an effective co-opera ton between the government itself and the bankers as well as the merchants ant manufacturrs of the United States. And
 1t Ia said here. there fs world of mean ing in his asDertion that 1t is becomini increasingly evident that because of it international character ana its democrati,
 foundation worldwide financing must b'
 regarded as q guarantse Of world peac' and commercial developmeut, and not ai
 the means by which tho stronger are abl' pto HpIoit the weakef nnti6ne.