The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-10
Dollar Diplomacy.

Foreign trade opportunities winch
the European war has created for this
country do not consist in the things
which were vainly imagined at Wash
ington during August, when there was
stampede to leglslate an American
merchant marine into existence. At
that time the worlds commerce was
commonly spoken of as something which
the leading European nations had been
compelled by their belligerency to re-
linqulsh. 1t seemed to be supposed
mat II new shipping facilities were
furnished American business could
promptly seize a huge trade that had
been abandoned.
Since then It has been learned thar
the American external trade opportu-
nifty of the war Is not dependent on the
provision of domestic fleet Of mer-
chant vessels Ii Is dependent on the
ability to supply capital and credit
with which to build up trade.
The war has given TO the American
merchant. manufacturer and banker
don't forget the banker--acces To for
clgn markets of which Great ala,
Germany and France have hat .,facll-
colly monopoly because they made
lie mad" which WAS done therein. They
made This trade h. wishing capital
~ enterprises whic .veoped he RI.
SOURCES Of the new countries and 10y
extending the credit which enabled such
countries to make international e1-
..h..r..r...
The foreign trade opportunity now
offered 10 the United States is for
elgn trade problem. II is a problem OF
the finance which goes first to make
trade and then 10 accommodate the
trade movement.
Asst ishng as It may seem. even
Washington has begun to understand
this, ana one If the most interesting
Developments Of the war is the indic1-
ton that political instruction In the
real nature of business has begun. This
indication appears variously in the
dawning appreciation OF the difficulties
Of the railroads and has other manifes-
tations, hut the point of present con
sheraton is the lessons which are
being taught by the foreign trade sit
uatiOn.
Secretary REDFIELp of the Depart.
ment of Commerce is one of the most
active Of the propa gandists Of foreign
trade opportunity. How this oppor-
tunity discloses itself TO him Is shown
by the following extract from a special
article by Mr.. REDFGEID, printed in the
Philadelphia Ledger of September 10
referring to the promise of trade with
Latin America,
"Put yourself for a moment in the sit.
uation in which those countries find them
selves, The capital for their great en-
terprises has come from Europe. The
banks that are their financial support are
controlled ny Europe. The loans they
get are made from Europe. Europe has
furnished their money and the basis for
and the machinery of credit. II was
quite natural that they should buy from
Europe. South America wants money
and credit now and customers who vii
buy its products, rather than those who
seek 10 come there and sell goods The
opportunity of the United States Is on,
10 serve South America IN our need Here
Is whore tine American banker must steT
outside provincial surroundings Now /,
tina time when thu constructive banker
statesman Is wanted"
In the first number Of the Nationa
CITY Bnk'S new foreign trade maya
Zine. Tbr .tmoricPy Secretary REpFItIl
has an article very much to the same
cfcH as the foregoing quotation. After
Iiuiiug ont what the Department OF
Commerce Is doing for Irade expansion
Gt .sys.
"rra Department welcomes the step
n.. pr" ..'.,E taken by bankers
II , MOE , much an hour for the hus
sr -1t1 g., for the business an,
anlu.. statesman"
In .oL"r words, there is in one do
'"r'me", yf thr Fedora, Government TO
.ur 20 'r; nhlr adequate comprehen
,on = the fact that business is bull
up u Il basis of Investment that is
CA he provision of long time money
which - called capital and the loan o
short time money, which Is called credit
Perhaps, however, before any eXten
siye investment of American money /
undertaken for the purpose of bulldln
M business In South America. for ex
ample, the pOSSeSSors Of capital AN
the custodidqS of credit would like {
know how widespread Is the politica
appreciation Of business facts whic
Mr. kEDFIrLp exhibits
They cannot help remembering a
the odium expressed in the phrase do
Jar diplomacy invented by compars