The Birmingham age-herald., 1914-10-08
VANDERL|P POINTS ID SOLUTIONS OF
 SOME B|G ISSUES War Offers Chance to Fi- nance South American
 Trade In New York
 
PUTS THIS NATION ON STRONG BASIS
No One Knew That Vanderlip's Words of Warning Spoken Last Spring Referred to Possibility
 of War
ny HOLLAND

culties which must be overcome before the United States can take advantage of | opportunities now opened is emphasized by the address recently delivered at the meeting of the National Association oi Cotton Manufacturers at Lenox, Mass, by Alfred Greene Duncan of Boston. who is president of the association. Curiously enough it was at gathering of the rep ! resentatives of the cotton industry in the spring that MT. Vanderlip spoke in words of monition respecting business conditions in the United States. At that time it was expected that Mir Vanderlip would speak, chiefly, if not exclusively upon the subject of great cotton warehousing system to be utilized after the federal reserve banking system was in opera ton. For it was known that Mir. Van derlip believed that warehousing sys- tenn of this kind, if wisely built up, would open very wide market for the national banks for the purchase of well secured commercial paper and for rediscounting paper of that kind.
 MT. Vanderlip did touch approvingly upon this proposition, but to the aston-
  he wandered from the subject and set forth actual and presumptive business conditions in the United States. He inti- mated that notwithstanding the promise O. unparalleled crops and other favor able conditions there was lurking danger that complications might arise in the course of the year which would. for time at least, cause American business to remain stagnant.
 None knew what MT. vanderlip had in mind Now all who heard him and that part of the public which read his address have knowledge that the lurking dan. ger'' to which he referred was the pos sibility, even probability, of a European war.
 The address delivered by President Duncan, of Boston, at the meeting of the National Association of Cotton Man uiacturers supplemented not only the earlier address of MT. Vanderlip, but also Lis more recent communication. Those who heard President Duncan brought re- ports to this city indicating that the ad- dress had made a profound impression upon the members of the association. MT. Duncan spoke just after the gigantic struggle in France had begun, and it was in view of that fact that he told his hearers that never, at least since civil war days, has a situation so perplexing and of such worldwide import existed as does now exist
 It has been a common subject of dis cusson in business circles and in finan- cial circles of this city, and undoubtedly elsewhere in the country, why the United States, which is far removed from tue scene of conflict and which is maintain ing neutrality. should, nevertheless, be made to suffer as we have suffered by eason of this war.
 The Cause of Suffering
 MT. Duncan finds the reason why we as nation, are innocent sufferers of d quarrel not of our own making, to lie deep in the structure of the country's 5 life and history. He made reference to the logical and inevitable development which has built up in England, France Belgium, Holland and Germany immense masses of concentrated capital. This cap ital is utilized not only for the home leeds of those countries, but for the financing and distributing of the products of their competitors. To illustrate by con- crete figures, he pointed to the immen- sity of business of this kind which Is done in London by saying that when the var began London bankers had in their possession somewhat in excess of s2000.- G00,000 in advances for drafts of sellers of merchandise who dwelt in other countries than England. In the United States, in- stead of being creditors for any amount, we are heavy debtors, immediate and prospective. John Skelton Williams, the comptroller of the currency, estimated tentatively the money value of our for eign obligations, including securities, at from $4.000,000 to $5.O00,00 00O0O0. Sir George Parish, who is world authority on economic subjects, estimated American indebtedness, existing and prospective to other lands, at about $6,0OO, 900.
 Mir Duncan said that the commonly held estimate is that we owe 1000, GOO GOO abroad although in natural development and industry the country stands pre-emi- nent. In actual aggregate wealth we rank first. Of currency we possess so much that if it were divided every person would receive $137.
 The reason why we are not in a posi- tion similar to that of England and other capital producing countries, MT. Duncan finds, is the fact that in the 125 years of our existence our population has grown so rapidly as almost to overtax agricul- ture and industry to keep pace with it. For this reason we have never taken the position as a commercial nation, MT. Dun can told his hearers, to which our re- sources energy and industry entitle us. Now the great opportunity created by the European war has opened, in his view, in the United States. First of all, he clear ly hinted to his hearers that we ought to take advantage of this opportunity to establish upon a new basis our financial relations with London and with the rest of the world.
 Something of this kind must be accom- plished, in Mir. Duncan's view, if we are to take full advantage of the opportuni- ties in South America which are suddenly open to us. That also is one of the un- derlying thoughts in the recent communi- cation to MT. Vanderlip Mir Duncan somewhat tersely set forth the situation by saying that we, at this time. seem to be in the most comfortable position of a salesman who through some disaster has lost his chief competitor. Yet what is the real situation in South America whicI we must face?
 South America owes vast amounts of money to nations across the sea- The greater part of it's government loans were made in Europe. It's industries and railroads were financed and some of them operated by foreigners. There, Mir Dun can intimates. has been good proof of the modern axiom that trade follows the loan.
 What We Must Do
 Therefore. if we are to take advantage of our South American opportunity wel must remember that first of al we are compelled to take care of our own com plicated structure of credit, and, in addi- ton. be ready to finance South America