Imperial Valley press., 1914-10-01

ncighbor, and trade routes thereto are
naturally the least liable to Interrupt
ton by any of the warning nations.
Further we would seem to be in the
comfortable position of salesman
who, through disaster, had lost his
Grief competitor. Without any spirit OF
pessimism it behooves us, however, to
face the situation squarely and we find
that South America is deeply in debt
to the old World, that almost all their
government loans ere owned in Eu-
rope, that most of their railroads and
industries are financed and even oper-
ated by foreigners. The nations to the
south of US are in an earlier period OF
national life than our own country and
have rot far advanced beyond the stage
of natural development, with Industries
as yet nowise ample to their needs,
Our southern neighbors have been the
largest users of foreign credit on which
they have been almost entirely de-
pendant.
These advances have taken the form
lot only of actual investments of CAPT
tel in their enterprises, but in the
granting of long credits to merchants
and IN the financing of all the compli-
Gated transactions between producer,
dealer and consumer. As result OF
this financial relation the trade routes
to them and international exchange
have been in the hands of our competi-
tors and we as nation have been OBJ
lliged to depend upon our rivals for
the distribution and financing of
what small amount of trade we have
secured from South America.
care we prepared at the moment
with all the problems which we face
in upholding our own complicated
structure of credit, to assume the adj
ded burden of the financing necessary
to relieve our South American neigh
bors from the desperate situation in
which they find themselves? Means
are ready at hand to facilitate this
financing by exchange through New
York rather than through London
but # we expect to do more now or in
the rext few years than to sell en-
ergency goods we must be prepared
to assume the additional burden Of
financing the trade and assisting the
enterprises from which European ma
tions may be forced to withdraw
at is time for US to take account
of stock and to realize that to pro-
duce cur raw materials, to manufac-
ture hem into finished goods and be
satisfied to sell them merely to our
people or to the foreigner at our ports
IS a mistake. We should take this
opportunity which had brought such
a rude awakening, to seize by every
means within our power upon the ave-
rues of distribution represented by
the great trade routes of the world
whera the fleets of foreign merchant
men so to and fro and where our flag
IS rarely seen. AS natural sequence
|
secure for ourselves the added reward
tkat the financing of the raw ma
terials and manufactured goods ex.
changed with other countries must
bring US.
"After years of effort the begin
rings have been made in the founda-
ton of an international exchange
financed by our own banks, but we
should not be satisfied until our
manufactured products as we'll as
our rrw materials are carried to oul
customers and even to our competi-
tors in our own ships. By 10 arti-
ficial means can our merchant marine
be revived. 1t is not sufficient for lis
to own ships, we must be able to ope:-
ate Them under the American flag
along the trade routes to the ports
where we wish our products to go
and to do this we must devise wise
measures by which the operation ot
such ships can be profitable. Gu.
present antiquated navigation laws
impose a burden on the operation OF
ships under the American flag that
will not be relieved by any subterfuge
of American registration. In Other
words, unless we make shipping a,
profitable as other lines of endeavor
we :arnot expect American capital e
embark upon it. Recent proposed
legislation, it may be noted, has mo-
been drafted in favor of ship owners
but will tend to increase rather thar
diminish the handicap under which
they now labor.
"What have hitherto said apple;
to our industries in general, but t,
cotton manufacturing most of all. TIL,
spinning and weaving of cotton clotg
was The first industry in America t.
leave the home for the factory. Fror
small beginnings it has built up al
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