Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-10-19
TRADE Loss MAY
COME FROM POOR
CREDIT SYSTEM
Industries Of United States
Likely to Be Injured Serious
" Unless Faulty Methods
Are improved,
.l,..eeInIed rres. carre.penarnce.l

Associated Press Correspondence
Washineton. oct, iS.--rhc indus.
,rirs Of the United States win be IN
nred seriously by loss OF Latin
American trade Il the restriction Of
commercial credits is not remedied.
in the opinion Of the Latin-Alnerican
trade committee. whose report was
issucd here today. The committee cN-
bre.sed The hope that banks win cx-
tend accommodation sufficient at
least IT, assure maintenance cf exist
ing trade. Secretary W. c. Redheld of
the department Of commerce. app
rontcd the committee, which IS
headed hy James y. Farrell. chair
man Of the National Foreign Trade
Council
Even before lhe war the committee
found tiat exports Of the United
states had fallen OFF on account "
the financial sirinsoncy in South
America. OF present conditions. the
report says
since August cf this year the
countries in South America whose
currency Is not already on gold ha-
sis have experienced a serious deprc-
citation Of their paper money.
'rho export Of copper, tin nj
rates coffee and other products has
been curlailed because Of loss Of the
normal Euro pcan markets As indica-
tive az financial conditions, hank hol-
days and moratoriu were declared at
The outbreak Of ho3iilitlos. which
were extended IN certain countries
from sixty tp ninety days. Tho effect
has been damaging to American cx-
poitcfs as, under such circumstances,
drafts due in August VIII not be H.
audited until November or Deccm-
her. This means n large aecumula-
ton e. draf Indebtedness never con-
templatcd by tho shipper Specie pay
monts were suspended.
Collections Are Difficult.
collections throughout south
America, therefore, are difficult. Or
defs arc falling off, and there seems
less prospect for new business after
this year unless steps are taken to re-
lievc the situation"
FUN ill' NAtHNHNlit VI tAA' 49,
tual interest of the Latin-American
republics and ourselves" the report
anayzes the present problems as fol-
lows:
Because of the war Latin-Ameri-
can countries are confronted by the
necessity Of marketing their products
despite the shrinkage Of world pur-
fF 1I4t1fttfVtr finds
TO move crops and to continue indis-
pensable Industrial and agricultural
development normally financed by
Europe.
The United states is confronted by
the necessity Of holding its normal
export trade with Latin-Amefica and
by the possibility of increasing that
trade by Filling Latin American needs
for merchandise hitherto purchased
in Europe, which Europe cannot now
supply.
THE solution of these problems de-
ponds upon production, and upon g.
naneing of production, transportation
and settlements.
Production in the United States
can be maintained if there be suf-
iicient market at home and abroad
for American goods Production in
South America may continue but can
not ice further developed unless fl
nancial assistance be obtained.
Before trade can resume its nor
mai course the exchange problem
must be solved, either by restoration
Of old or by establishment Of new
credit facilities
"Tho question Of creating a market