The Washington herald., 1914-10-19
TRADE CREDIT URGED
FOR LATN-AMERICA
CONTINUED FROM PAGE ONE.

ments at the present time, but industries
| Wi;h an already considerable trade at
stake may well consider the necessity of
protecting that trade by obtaining for
| their customers some relief from the
present stringency. Such Investments, If
Judtciously made, would yield an ultimate
faiT return and meanwhile provide a
market for American materials which
cannot now be Sold
The committee adds:
The cooperation Of American bankers
in massing a gold fund to satisfy our
obligations abroad by promising to cause
London exchange again to approach nor
NAL. will lessen to the American import
er the expense of liquidating in London
his South American indebtedness. 1t will
nevertheless give effect to the old aliena-
ton or the selling power We should de-
rive from purchases OF South American
products. Liquidation of our South Ameri-
can Indebtedness in London will paw for
British exports to Latin-America at a
time when American merchandise. intimi-
dated by moratoria, remains congested on
our docks. Our available money will serve
Great Britain's effort to capture South
american markets vacated. perforce, by
Germany"
The committee considered the proposed
establishment Of a cooperative ex-
change" Or merchants clearing house for
Latin-American trade, but the plan was
pronounced impracticabIe
The committee praises the efforts of
the government and particularly Secre-
tary Of Commerce RedfieId for efforts to
develop foreign trade and makes the
following recommendation:
The extension of credits might be
facilitated and some relief AFFORDED.
pending the establishment of the Fed
eral reserve banks, IL, in addition to
permitting national banks which have
signihed their intention to enter the
reserve association, to accept CONNER
cial paper, action be taken by the Fed
eral reserve board to make Immediately
effective the rediscount provision of the
new banking system, thus assuring early
establishment Of a discount market
UD to the Banks.
Your committee believes that the ces-
sation or curtailment Of our trade with
Latin-America will in itself be highly
injurious to American industry, just as
We believe that the extension OF this
trade would make for the prosperity of
the country at large, as well as Of those
directly interested. We, therefore, hope
that American banking institutions NAV
be induced to meet the present emer-
measures, but by extending acconmo-
dation sufficient at least to assure the
maintenance of our already established
trade.
Your committee feels that merchants
and manufacturers now contemplating
an entry into the Latin-American field
should be careful to avail themselves of
the easily accessible information con-
cerning these markets
Merchants Are Cautioned.
Merchants and manufacturers should
not attempt TO install their own estab-
hshments in Latin-America unless they
are prepared to meet the initial losses
and disappointments before realizing
even moderate profits in what must
necessarily be a developing, rather than
a ready-made. business.
Your committee begs to state its be-
lief that the present disorganization of |
the trade of the United States with |
Latin-America may best be remedied and |
placed on a permanently satisfactory |
basis by
First-The establishment of a dollar |
exchange, through the ultimate creation |
OF a discount market and pending the |
of a discount market b. |
the extension of adequate accommoda-
ton by the banking institutions and the
establishment Of reciprocal balances in
Lhe United States and in Latin-America |
Tor financing Latin-American trade.
Second-Perfection of our selling ma
,hinery by furnishing additional support
10 commission houses familiar with
1atin-American business; by forming as
sociations Of merchants and manufac-
.urers to be jointly represented in Latin
America, and by obtaining information
Is to the possibilities of developing re-
all stores in large Latin-American
.ities.''