The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-19
Advancing Trade With South America

WASHINGTON. October lS.2That in
dustries of tho United States Will be sc
riously injured by loss or Latin -Ameri-
can trade IL the restriction OF CONNER
cial credits is not reme,iisd and that II
is to be hoped banks will extend &C.
commcdations at least sufficient TO us.
sure maintenance of existing trade. Is
ono OF the conclusions Of the Latin
american Trade Committee appointed
by Secretary OF Commerce W. c. Red
field.
How dependence upon London bank
Ing saps American foreign selling pow
or, and how the sister republics are
turning TO the United States for funds
IL carry on industrial development are
set forth in the committees report
which was issued to-day for the pur-
pose OF providing the puelic's intense
interest with II business-iike analysis
OF present conditions aud future pros
poets. That the greatest opportunity
lies in systematic preparation for ex-
tension. OF trade when peace restores
normal conditions RI fhcr than In hasty
invasion OF Southern markets, is an
ether conclusion. The committee Is
headed by James 4. Farrell. chairman
OF the National Foreign Trade Council
and consists of representatives OF man
ufacturing, commercial. transportation
and financial clements engaged In, OF
affected by, foreign trade
Even before the war the committee
! found that United States exports fell
off on account of the financial strin-
Sency in South yimIe.ica. or present con-
ditions, the report says
since Angus; OF this year, tho
countries in South America. whose cur
rency is not already on u gold basis
nave experienced It serious depreciation
Inf al
The expert OF copper. tin, nitrates
coffee and other products has been cur
tailed because OF loss of the normal
European markets. AS indicative OF
financial conditions. bank holidays and
moratoria were declared at the out
break of hostilities which were extend
ed in certain countries from sixty to
ninety days. The effect has been dam
aging 20 American exporters as, under
such circumstances, drafts due In Au-
cyst will not be liquidatcd until No
v6mber or December This means a
large accumulation of draft Indebted
ness never contemplated by the ship
per. Specie payments were suspended
collections throughout South Ameri-
ca. therefore, are difficult. orders are
falling off, and after our exporters have
completed their contracts for this year
there seems less prospect FOR new bust
ness. unless steps are taken to relieve
the situation"
From the standpoint OF the mutual
interest of the Latin American repub-
lies ana ourselves" the report :.nalyaes
present problems as follows:
Because OF the war, Latin-American
countries are confronted by the ineces-
sity of mark citing their products de-
spite the shrinkage OF world purchasing
powc: and OF obtaining funds to movc
crops and to continue indispensable
industrial and agricultural development
normally financed by Europe.
"The United States is confronted by
the necessity OF holding It's normal ex-
port trade with Latin America and by
the possibility OF increasing that trade
by filling Latin American needs for
! merchandise hitherto purchased in Eu-
rope, which Europe cannot now sup
ply.
The solution of these problems upon
| production, transportation (shipping
! and insurance) and upon financing OF
production. of transportation and OF
settlements
Production in the United States can
be maintained IL there be sufficient
market at home and abroad for Amcri-
can goods. Production In South Amer
lea may continue. but cannot be further
developed unless. financial assistance
be obtained.
AT the present time, steamships are
available and sailing regularly from
this country to the principal ports of
iLatin-American and from those ports
to the United States. Many OF these
vessels are unable to obtain full car
goes Although only a limited num-
Der are under the United States flag,
tho above will clearly indicate to ex-
porlers. importers and manufacturers
that they need not hold back from en-
tering the field on this account.
Before trade eau resume its normal
course, the exchange problem must be
solved. either by the restoration of o.J
cilities." 80
The committee found that in contrast
to the we'll -bnlanccd cpplmcrceof Eng
land and Germany, the Latin American
trade of the United States showed In
the fiscal year OF 1914 balance Of
S1ST, 012,514 against this country.
While the committee admits that
trade with South America must partly
depend upon London exchange so long
as the republics owe heavily TO Europe.
1T urges that in the mutual interests
of all the american republics new
credit machinery BIO created to escape,
partly at least, dependence on London
The committee addstf I.
i. @Ne -