The Birmingham age-herald., 1914-08-14
Another Reason

Ahotutt RtdSoH Another reason for the view now gen-
 erally prevailing here that we shall be
 able greatly 10 increase our foreign trade
 is the fact that the United States is now almos0 the only free market in which various commodities, especially food pro- ducts, can be secured Russia's wheat. of course, will be under embargo, and the wheat fields of southern Europe will not be sufficient-even If wheat could be harvested-to provide for the needs of the nations of that part of the European continent.
 But by an extraordinary coincidence the United States has this year wheat in abundance not only for our own needs, but probably as much as 250 00O.00o bushels of wheat for other parts of the world. Various manufactured goads will be in demand in Europe. Already representa- tives of Great Britain and of France are preparing to purchase in large amounts, including clothing, cotton goods and al most all kinds of food products Just as soon as the ocean becomes safe for com
 merce the great iron and steel and espe- cially machinery and food manufacturing l industries of the United States will prob
 ably receive large orders. We have all ready gained a considerable part of the
 markets of South America. especially for machinery, tools and electrical appa- ratus. Il is the belief in the iron and steel and machinery industries that the days Will not be many before they begin to | receive heavy orders from South America. and probably from the far east Some of
 these industries have carried on a large trade with Austria and with France and
 since the war began payments were re- ceiyed from France aggregating a large amount of money for American manu- | factured commodities recently imported l to that country.
 l It is an axiom of the export trade | trade of the world that markets once obtained can only be lost through negi- gence, carelessness or indifference. There fore it is assumed that if American man. ufacturers obtained increased markets in South America and in the far east they would be able to maintain those markets. | At present the problem is partly finan- cial and partly the safety of the sea. | But it is the common opinion here that
 within a short time merchant vessels, | especially those flying the British flag, | will be practically as safe on the ocean
 as they were before the war began.
 ! The American bankers acting in coop | eration not only with one another. but as | far as possible with those of Great Brit
 ain or France, will undoubtedly be able | to find some method by which the move
 ment of exports can be adequately | financed. The method will probably be a | | the creation of large credits at New Yorl, | or Boston or Chicago very likely at Bal | timore, which may avail for the financing l for the movement of grain, cotton and | other commodities. These credits will be undoubtedly government guaranteed l France and Great Britain being presumed | to be ready guarantors of that kind.
 What the effect of an arrangement of 1 this kind may be it is impossible to | forecast. Some of the leading bankers would not be surprised if it tended to make New York the great credit center | of the world. Probably some day New York will attain that position But the l best judgment seems to be that as these | vast credit arrangements are perfected ! for the purpose of facilitating the move ment of commerce at time of eXtraor- fdinary emergency they will be abondoned whenever 1t is possible to do that.
 | Yet it is observed that Max May has eentured to intimate that this artificial ar | rangement may become permanent and | that hereafter exchange drawn against | American shipments will be at the risk oi | the European buyers, who must furnish i the funds against which exchange can be drawn. MT May has for sometime fell | that it was not sound business philosophy l which permitted the handling of bills oi | exchange which represented American commodities al the risk of the American bankers and the makers of the exchange | If England or the continent of Europe l buys American wheat the money should 1 be put up on the other side when the or