The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-19

4
and reciprocal balances This ma.
| chiEcry will partially be provided un-
| der the Federal reserve act, which per-
/ mifa American banks TO open branches
| abroad and pcrints n rediscount I'm
| this country of commercial paper,
| based on shipments of commodities i'm
| foreign trade" -
! Tho committee considered the pro-
posed establishment of ., ''co-opera-
{, tive exchange or merchants cleafinr.
| house for Latin-American trade.
! On account of the difficulty OF obtain
( ing cooperation. the necessity and DIFF
! 'iculty Of standardiaing credits, the
I seasonal variations of shipments OF
| south American produce and the Ok
! pense the plan vas pronounced imprac-
I ucable.
/ The committee praises the efforts OF.
the government. ana particularly Secrc-
I inry OF Commerce ltedheld. for efforts
! 10 develop foreign trade aid makes the
| following r:cohimendn tons:
| The extension of credits might be
! facilitated and some relief afforded.
pending the establishment OF tile Fed
! erai reserve banks, IL, In addition to
/ permitting national banks which have
/ signitied their intention to enter tho
i reserve associations. to accept conn.,
mercial paper. action he taken by the
| Federal Reserve Board to make imme-
! diatcly effective the rediscount pro-
| vision of the new banking system thus
g.
! count mofkct.
Your committee, while appreciating
the necessity of conserving the bank
| Ing resources Of this country for the
| protection of our domestic situation,
nevertheless believes that the cessation
| OF curtaiIment OF our trade with Latin
America will in itself be highly iniuri-
GUS TO American industry. Just as we
| believe that the extension OF this trade
! would make for the prosperity OF the
| country nt large, az well as of those
directly Interested We therefore hope
that American banking institutions
may. ,hc induced to meet the present
! emergency. not by tentative and made
| quate measures but by extending ac-
! coinmodation sufficient at least to as
| sure the maintenance of our already
| established trade.
! Your committee feels that merchants
and manufacturers now contemplating
IN entry into the Latin-American field
/ should be careful 10 avail themselves
| or the easily accessible information
/ concerning these markets. The cost
OF maintaining individual representa-
! tivts would probably be too great for
many of them TO bear themselves. II
| is thercforeS suggested that associa-
| lions consisting of the smaller firms or
| corporations engaged in kindred lines
/ of production might be formed, and
+ that either one or more representatives
| should be sent to South America TO
| look after tho int: osts OF such assoc
Citations. thereby bringing the cost of
/ representation within reasonable
| limit.
! 1T has been suggested that Amer
| lean manufacturers should combine to
| send 10 South America trade exhibits.
showing the various articles which they
have for. sale. Your committee, how
| ever. Is not inclined to feel that such
! measures would be productive os any.
permanent results. It Is suggested in
stead that manufacturers and dealers
[! desiring to place their products In
Latin-America, and who, for any rea
| son, prefer not to send their own rep
! resentatives, there could establish con-
nections with export houses already
| doing business in those countries and
maintaining large branch offices in the
principal South American cities fully
equipped with efficient sales organiza
| tions or who have established connec-
lions. and in certain lines of goods
foodstufs, notions, and miscellaneous
! articles-join In establishing what
might be called for want of IL better
name AN American store in certain
| Of the most important cities.
| "MerchatnS and manufacturers should
not attempt to install their own cs-
Establishments I'm Latin-Amerlca unless
i they are prepared to meet initial losses
| and disappointmcnts before realizing
even moderate profits in what must
Already made, business.
Your committee begs to state It's
belief that the present disorganization
OF The trade of tho United States, wi,hN
Latin America may best be remedied
and placed on permanently salts
! factory basis by
| First The establishment OF doll
4 lar exchange through the ultimate cree
| alton Of discount market and pending
! the establishment of a,discount market,
l-by the extension of adequate accommo-
dation b. banking institutions, and the
establishment oflrceiprocal balances IN
the United states and in Latin America
for financing Latin-Amcrican trade.
Second. Perfection Of our selling
by furnishing additional
support to commissioS houses familiar
With Latin-Amorica} business; by
/ forming associations OF merchants and
manufacturers, to be Jointly represented
IN l.atin-Amcr!oa, and by obtaining III, ~
| foS,natton as to the possibilities of {de-,s
ycluping retail stores in lnrreN In fin.