The Washington herald., 1914-10-14
European Method, in Ezport Tr.d..

/
The first consideration is that the American pro.
ducer seeking foreign market, must look upon such
Ia proposition necessarily involving the opening OF
definite and permanent branch of his business and
as soon he ascertain what character of goods
such foreign market requires he must equip himself
permanently to meet the demands Of such market
No permanent foreign trade can ever be built upon
the idea of merely utilizing such market as an out
let for surplus products.
| No better method can be adopted to secure and
develop South American trade than has been sue
cessfully employed by such countries as Germany
Great Britain, and France For example, Germany's
method has been to send specially fitted representa-
tive to South America make purchases of products
then to manufacture these products in the style size
and character demanded and at a price which will
enable successful competition with existing trade
The second consideration in the development of a
permanent foreign trade for this country upon
the willingness of the government to assist
Every intelligent American, having any connection
with shipping matters, knows that maritime and
navigation laws have lost to annually, for the
past sixty years. not only very large foreign trade,
but also hundreds Of millions of dollars in trans
portation charges. These laws should certainly be
either repealed in whole or modified beyond recog-
milton and laws should be adopted based on the
experience of other nations whose object shall be
the upbuildng and not the throttling of an Ameri-
can merchant marine.
The very crisis through which our trade is now
passing shows that we should have homemade
merchant marine This is necessary not only for the
extension of foreign trade but for the protection of
the trade which we now have. At the present mo-
ment, America has approximately Il per cent of the
export trade Of the world Less than 100 years ago
American ships carried fully 90 per cent of our then
foreign shipments. Today only a small percentage
of this trade is carried under the American flag. OF
the entire export tonnage of the world, So per cent
carried under the flag of Great Britain, per cent
Germany, per cent United States, and per cent
France
The reason for Americas lost foreign shipping
and the failure to develop on any scale the ship
building industry, with all of its ramihcations and
possibilities for the investment of capital, employ
ment of labor, purchase of supplies, etc. is due to
the severe hardshps placed upon vessels sailing under
the American flag, and the failure Of the government
to enact such laws will enable the construction of
American ships, the upbuilding of greater ship
building industry, and the operation Of American
ships economical basis.
II is claimed that it costs from 25 per cent to 20
per cent more to build and equip a ship in America
than in any other country and from IS per cent to
80 per cent more to operate an American ship than
the ship of almost any other nation vessel of
10000 tons under the British flag can therefore be
maintained cheapy vessel of from $500 to
1000 tons under the American flag. II of these
handicaps could be eliminated overcome by gov
eminent aid, the vast increase of trade and COM
result would certainly bring great prosperity
to American labor as well as capital
!, personally, do not believe in government
merchant ships l should much prefer to see this
government make loans American-built bottoms
of certain tonnage up to certain per cent OF the
actual cost OF construction, at rate OF interest Sut
GENTLY low, say per cent as would attract and in
spire capital sufficient to develop real homemade
merchant marine 1t is fair assumption that after
short period, this industry, established would
be able to stand without government aid. As tenn
porary measure solely and to meet the present emer
gency, the principle of government loan might
be applied to foreign-bmlt ships taking out Amer-
can registry.
, A third consideration in the establishment of
permanent foreign trade is the developing of neces-
sary bankPg facilities for handling credits between
present time, America buys probably so per cent of
the coffee rubber, hides and wool produced in South
America Practically all of this business is settled
by exchange London some European city. Here
is credit balance in favor of South America, which,
as soon sufficient trade is developed with South
America by the sale OF American goods can be
utilized against the debts thus created and settle
ments made through American banking institutions
already opening branches in the principal South
American cities
Banking facilities and trade always follow the
hag and there is little doubt but that the American
banker will produce all the banking facilities neces
Sary to handle the South American trade as
the American producer seriously enters the field and
the American government gives evidence of an in
tention to foster the development of such trade.
good example of the readiness of trade to ex-
pand upon the slightest encouragement is found in
the apparent results of the reciprocity agreements
made between Brazil and the United States in April
1891. The exports of cotton piece goods, bleached
and unbleached, wearing apparel and other. cotton
{
SSI7oo increased in the three following succeeding
years, during which such reciprocal agreements were
in force, to SI,I4696o 1892; $I4o256o, 1898; ST.
53S,6So, 1894
A further consideration in the development of
foreign markets is found in the assistance which
bankers can, and usually do give in financing loans
to foreign governments which furnish trade out
let. When the Balkan war broke out, the more i'm
portant countries in South America were seeking
oans from European banks. Naturally with the de-
yeopment of that war, these loans impossible /
Last July these countries again seeking, and
seemed in a fair way to obtain similar loans of Eu
-opean capital. These loans will now probably be
deferred for long time This is an opportunity for
American bankers, if sufficient funds are at hand
European inanciers have frequently loaned money
% these governments with the stipulation that large
part of it be used in buying the products of their
Mills American bankers entering this field can OBJ |
ain similar concessions If such loans could be made
|, large part of the funds would come back to the
United States in payment for goods.-Wiiam c. !
Breed in the Scientific American
Aufos and AeropIaneS