Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-10-19
undergoing a serious curtailment OF
industry and development.
Turn to U. 8. for Funds

/
industry and development.
Turn to U. s. for Funds.
"Latin-America is now turning to
the United States for funds. This
country is hardly in a position to un-
dertake considerable investments at
| the present time, but industries with
an already considerable trade at
stake may well consider the necessity
of protecting that trade by obtaining
for the customers some relief from
! the present stringency. Such invest
ments, if judiciously made, would
yield an ultimate fair return and
meanwhile provide a market for
American materials which cannot
now be sold.
1.-THE question of creating a market
for Latin-American securities in the
United States, therefore, is highly I'M
portant The development of our
trade with those countries is largely
dependent on its satisfactory solution.
Unless the restriction of commercial
credits be remedied, however, we will
not only be unable to extend our
trade but we will lose a considerable
portion of that which we already
have"
While the committee admits that
trade with South America must part
long as the republics owe heavily to
Europe it urges that In the mutual
interests of all the American repub-
lies new credit machinery be created
to escape, partly at least, dependence
on London.
Dependence on London.
Whenever there is great disturb
ance of the worlds finances American
exporters and importers in South
American trade are injured, because
of their dependence on London. This
has happened four times in twenty
five years. The maintenance of ex-
change relations depends on a credit
machinery and reciprocal balances.
This machinery will partially be pro-
vided under the Federal reserve act,
which permits American banks to
open branches abroad and permits a.
rediscount in this country of COM
mercial paper, based on shipments of
commodities in foreign trade"
The committee considered the pro-
posed establishment of a "co-opera-
tive exchange or merchants clear
ing house for Latin American trade |
1.-THE extension of credits might be
facilitated and some relief afforded, |
pending the establishment of the Fed
eral reserve banks, If, in addition to
permitting national banks to accept
commercial paper action be taken by
the Federal Reserve Board to make
effective the rediscount
provision of the new banking system.
thus assuring early establishment of
a discount market,
1T has been suggested that Ameri-
can manufacturers should combine
to send to South America trade ex-
hibits. 1t is suggested instead that
manufacturers who prefer not to
send their own representatives could
establish connections with export
houses already doing business in
those countries and maintaining
large branch offices in the principal
South American cities join in estab-
fishing what might be called for want
of better name an American
Store" in certain of the most i'm
portant cities. The committee rec
ommends:
First-The establishment of a dol
lar exchange, through the ultimate
creation of a discount market and
pending the establishment of a dis
count market, by the extension of
adequate accommodation by banking
institutions, and the establishment
of reciprocal balances in the United
States and in Latin America.
Standardization of our selling
machinery by furnishing additional
support to commission houses IA
miliar with Latin-American business;
by forming associations of merchants
and manufacturers to be jointly rep
resented in Latin America, and by
obtaining information as to the
possibilities of developing retail
stores in large Latin-American
cities"