New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-15
DOLLAR BASIS FOR
SO. AMER. TRADE
Expert Tells Business Men
TO Shun Pounds Ster-
ling Plan.
EXHIBITS OF u. S.
GOODS SUGGESTED
Reciprocal Market Here Would
Aid Trade with Neighbors,
Saws Fowler.

With the extension Of American
trade, especially to South America as
the magnet, thousand or so business
men attended the luncheon OF the
Merchants Association at the Hotel
Aston yesterday, to hear three experts
point out to them both the rosy and
the seamy side of the situation. They
were w. S. Kies, head of the foreign
trade department Of the National CITY
Bank; John F. Fowler, of W. X. Grace
e Co.. and Charles VI. Pepper, former
government trade adviser.
Mr. Kies explained what the opening
Of the branches Of the National Olty
Bank in South America meant 10 Inc
merchant and manufactures mere. ne
development Of exchange ~ doilarS
and cents, Mr. kies said, would De
slow process. and he urged that Dust
ness men help by insisting Wherever
possible in payment IN dollars ana ho'
in pounds sterling. Mr. Kies said:
This ought to be done even to the
extent of allowing a price advantage
or discount when paid in dollars.
"The Federal Reserve act contained
provision which will be an active
factor Of great value in the movement
for extending American markets. Inc
act permits national banks TO discount
foreign bills which are the result OF
actual commercial transactions and
also gives to banks the right to accept
bills drawn against merchandise. a
not inconsiderable factor in the growth
Of London as q financial centre has
been the activity of the large English
acceptance houses. London always
presenting a ready market for dis
counting South American bills, II Is
not strange that the sight draft on
London has been the accepted method
Of settlement of obligations arising
out of international trade.
"The building up of a discount mar,
ket will help to solve the problem OF
long credits, which has proved such q
handicap in the doing Of business with
South America"
Mr.. Fowler discussed the South
American field from the business mans
point of view.
"The present is a particularly oppor-
tune time" he said "to develop our
trade with South America, but we must
go at it sensibly, earnestly and not
Historically. There is much theory IN
what is preached to US and little OF
common sense We must not overlook
the fact that Europe has always been
the Large market for South American
products and reciprocally would nat
urally get the corresponding share Of
the return trade.
Formerly we tried to exclude every
thing that we absolutely had not to OBJ
tain abroad, but our new tariff bill is
something like an invitation to trade
both ways and sign that we are pre-
pared to DO more bartering.'
Permanent exhibits of American
made goods we're urged by Mr.. Pepper.
"No one" he said, "who has studied
the commercial field closely fails to
realize the futility Of sending cata-
logues without samples to back up the
illustrations.
american exhibits should be estab-
lished in Rio de JaneIro. in Sac Paulo,
in Buenos Ayres, in Santiago, in Lima
and other commercial centres of South
America on an extensive scale, nor
need they be limited to any one sec
ton Of the country or to non-competi-
tive products. The broader the basis
the better the prospect for capturing
the markets
William c. Breed, chairman Of the
membership committee, was toast
master. Nearly all the Latin-Ameri-
can consular representatives were
among the guests.