The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-08
URGES UNION TO
HOLD TRADE OF
SOUTH AMERICA
National Council of Indus
trial Leaders Sees Need of
Definite Policy.
WANTS GOVERNMENT
20 BACK MOVEMENT
Thinks Improvement in
Banking Facilities Vital
10 Success.

rre necessity ~ q definite policy sup
ro,'.d boy IN, government and by business
M f.f lcv looping this Cuun'rys TRACE
wv south America was set forth yestef-
d., 30 t statement issued by the National
T....en T.tiy council. Of which James
4 Fur... pres dent ~ the United States
ST., Corporation. is chairman. TIN
statement after giving facts and figures
l.,rur ou m, trade aud Analysing the
s'uft'"H. makes the following recon-
mrudauo's
r.r wa has demonstrated that for
,LU 'ltI, is a vital element In our
d .,. STE prosperity. The war has
disclosed q fundamental weakness OF
ouf foreign trades dependence upon
European banking. Although neu-
TIA. our commerce. has suffered,
through this dependence the rigors OF
var
with the gradual resumption Of
ooJu transportation and the control
o. the sea by England the equilibrium
o. London exchange may again b.
restored Nothing is more fallacious.
however, than TO await this restora-
t1r as the sole remedy Of the dis
ruptiur OF oversee commerce
What the war has In store is un-
cer,atu. Bind pendence Upon the
banking mediation OF any belligerent
l. hazardous our greatest opportu-
r'iy lies u the establishment Of those
drert financial relations and the
American steamship connections nee
e,sary 20 assurr the economic indie
p,rI,nc. Of the trade we already
have and Of that which we hope to
gir. With increased banking and
steamship facilities OF our own il
should hr possible to pay for a greater
proportion Of our imports In merchan-
d ~ our own product on and to re-.
tan In the United States a greater
proportion Of the funds due FOR i'm
por's
vulnerable II Not Guarded.
Wh'" individual opportunities will
o0cr them selves to our exporters
The general security and prosperity OF
n" south American trade can DE
guaranteed only BY the formulation
o. % d"hn.t" policy upon the part of
bus ness men as well as the Govern
ncni and by cooperation among all
elements Increased South American
trade founded on anything less sub
santial will remain vulnerable to
the changing fortunes Of European
finance ard business.
The council IA which thirty-fve nation
ais representative manufacturers. mer.
c0i.'s, railroad men and steamship mer
t'' "Nert'ng themselves in the interest OF
AT clements 'nglgcd IN foreign commerce
i''nei IN" ~tat"mqlt IN the hope OF cor.
fe''ng misconceptions regarding trade OF
~ l"'"d states with South America
tn" statement points out that the publ,
should not forget that certain funda monta
conditions must be- improved before tn,
fr4Ila h.
say nothing ot greater business IN the fu
'ure
Discussing the effects Of the war tn,
statement says that there been "A curtail
ment "t the sale I'm foreign markets o.
south American products curtaiment o
South Americas supplies from other coun
tries notably Germany: shrinkage o
south American purchasing power; dislo
cation ~ London exchange, the universe
currency II South America interruption
o' steamship communication, due to tn
alsa1lFtr1uc" Of Germany's merchant ma
r." from tho sea. and for a time prohibi
tive war risks
In answer 20 the question as to how
great AN opportunity has the United State
10 sell South America merchandise whicl
hitherto was bought in Europe the state
n,ent says:
ANY answer must take into cons,dera
UoN me already proven fact that Euro
1edN war dim!nishes South Americas pur
cn's'ns power because IL reduces Euro
leaE investment Whether the curtail
hea' ~ European supply OF manufacture
exceeds the curtiilmont OF this purchasin
rover VIII largely determine the exten
81 our opportunity to increase exports I
Argentina Brazil chile and other States
Trade Not nsiIy UprOoted.
Germany, ~ a sodrcc OF supply o
manufacturers, is now cut of but this b
no mean, delivers German trade into on
hanls The United Kingdom. although a
var impr'sslvely Keeps open and tray
'Hea ''s world trade routes and wit
'nN.ns AND shipping resources that W
utterly lack appreciates all opportunitie
10Y IN" CAPTURE Of German trade.
Nor IL European trade easily uproote
'''' 10y III" shock Of war. British con
m"''" with South America Is we
grounded o7 vast Investments OF 1886
N'N"'' Yielding about 60,0O0,O00 IN an
nua interest
Taking up the question OF banking
h' statement says that the future q
'nls 'pun,ry's business In South Amerlc
"'lehdS on the Improvement OF bank
Ms facilities. II tells OF the difficult
,N'.Iruc"d now in establishing direC
"anNng relations between ~ countr
".' III" south American countries to RI
pace The London exchange. II point
w, mo fact that the balance OF trad
WIN south America is heavily again'
nN country and that South America
interests IN turn want the United Stat,
20 sen' that money to London to sett
ool'N Amcrica's Indebtedness. Then N
statement saws:
:. We are certainly at a disadvantap
oNr indebtedness Is used to pay IL
nH,h manufactures exported to Sout
ah'r''a while our own manufactur,
I,m7In cougosted on our docks for lac
vi sound credits The necessity is al
parent of machinery to bring togeth'
we IMPORTER Of South American produc
"up IN" exporter Of our manufacture
I'Nt'd this goal various banks nj
-,'"'ne to work, but the field Is ne~
me task is complicated by the lack
,"'perltl'n between exporters and In
~ H0 well ms by the absence
"'ahbshod American banks In Sou'
,N"'f Am financial centres The ne
marking law. fortunately. permits II
,"hNshn"n' Of foreign branches OF nj
'Oho. banks The National city Bank hi
''n'd itself of mis- authority, but Il
"''1''2ltIou Of national banks to de
'.rrpitnccs uf foreign paper Is n
L' 'n"r'ly". So long as II Is not
.'''"u 4 serious difficulty confronts Il
,''h' lShment her" of an information
s'i.' market strong enough to su
rT' ''r"c' exchange with the neutr
Test
i"'""" In walk Around Jeru.aIc IN
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