The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1914-09-10
EXTENDING FOREIGN TRACE

only the United States but South
American nations themselves. are NOV
Ing. Argentenia. Brazil and Chile find
their European markets reduced or cut
off. and look to this country both for
market and for a supply of their needs.
We have the opportunity to sell more
to those countries, but we shall be
called upon to buy more from them.
The trade which we have the OPP
portunity to capture is mainly that
which Germany hitherto held. Bel
CLAN industry is for the time being par
afyzed and French industry has suffered
to some extent England not only keeps
her merchant marine afloat and In con-
troll of the sea, but IL making every eff
fort to keep her Industries In operation.
Her home demand will doubtless fall off
and effort will be made to compen-
safe by getting increased foreign trade
Thus the United States will find Eng
fish rivals In the pursuit of the trade
which Germany, Belgium and France
have lost. The business will not fall in
to the laps of American manufacturers;
they must go after 1t and they must
study to sell what their customers wish
to buy, not what they themselves wish
to sell. Otherwise they may have the
same experience as Germany, Italy and
Austria had In Chile. The Balkan wars
having closed the market for large
quantities Of coarse gray cotton. they
shipped the goods to Chile. but Chile
would not buy, and these goods are now
drug on the market, while Valparaiso
is calling for finer fabrics
Germanys exports to Argentenia in
1918 were valued at $6s.000.00O and
to Brazil at about $4,000. 900. These
countries, however. have had large ex-
ports to Germany, the volume of which
will be diminished by the war Their
purchasing power will therefore be cor
respondingly diminished unless this
country can furnish new market for
their surplus. Many Argentenia prod
ucts are also staple American exports.
hence a large increase In our sales to
that republic would create material
trade balance In our favor.
movement has begun all along the
line in this country to promote South
American trade. The new shipping bin
Is valuable and most essential step,
for 1t provides American carriers which
will serve American commerce before
that of all other nations. The next mos
important step is to provide means for
financing foreign commerce through
American instead of British banks. The
new regional banking law has cleared
the way and the National City Bank of
New York is the first to avail itself
OF the opportunity to establish branch
abroad. II has filed application for
authority to open branches in fsArgen-
tina and Brazil and has sent represen-
tatives thither to prepare the way for
organization. 1t proposes to make these
branches a clearinghouse of trade in
inn fAr mn fo Of nd xxiIII
have commercial representatives In
those countries. who will report on bus
mess opportunities and gather credit
information.
The Department of Commerce and
the United States Consuls have rem
dered valuable service In informing |
American manufactures of the needs of
South American markets, and the COM |
mercial attaches soon to be appointed |
will extend their work. Congress can. |
however. aid greatly by removing the |
legal obstacles to cooperate among ex-
porters. IT Is impossible for each manu- |
facturer Of certain line OF goods to |
send statesmen through the whole field |
and to maintain an agency at each i'm |
portant point. Only the largest can
do SO and they thus have an advantage |
over their small competitors. Yet II |
association or syndicate. they would be |
liable to prosecution under the anti |
trust law. In Germany some $4,000 |
firms are combined in an association |
TO promote foreign trade with the as
sistance of the government They are |
permitted to establish syndicates and |
to distribute orders to the plants |
which are In the best position to fill |
them. Manufacturers of similar lines /
of goods might well be permitted to
combine In seeking orders and in dis
tributing them among the factories, |
The cost of promotion work would be
reduced by sending a joint agent to
open an office and the field could be |
more thourghly exploited
Government aid could also be given |
with perfect propriety In obtaining |
loans for public Improvement, for this
would be valuable adjunct In pro-
curing a market for American pro-
ducts. Financers OF other nations
generally take care. when making loans,
that their money shall be expended as
far as possible in buying their own
country's products. That has been the
practice in financing Chinese railroads.
Argentenie railroads buy English loco
motives because OF being controlled by
English capital.
American manufactures need to
adapt their credit system to South
American custom. Some are already
beginning to do so, while foreign
branches of national banks will facii-
itate the change. On the other hand, |
the Argentine government is endeav-
oring to establish business relations
with this country on a cash basis in
stead Of the long credit system hith-
erto customary. L
Increased trade with Latin America
should come to Oregon not only on
the West Coast as this states share
Of what Europe loses. but around the
Caribbean Sea. because the Panama
canal brings that region as close to
Oregon as the west Coast Our mer-
chants and manufacturers should go
10 that region not only to pick up
trade temporarily during the war. but
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