The Denison review. [volume] (Denison, Iowa) 1867-current, 1915-06-02
PAN.AmER,cAN PROSPECTS.

II the present Pan-American con-
ference produces nothing but a prac-
teal plan for system OF direct
dollar exchange" between the Unit
cd States and Latin-America twill
have been we'll worth While. The
principle has received unanimous ap-
prevail and there is no reason to doubt
that a satisfactory method OF apply
ling it will be worked out. The first
half of the battle for closer trade re
lations between the two Americas will
then have been won. The victory will
be completed when adequate trans
portation facilities have been attained.
Until the war broke out Londan
served as clearing house in financial
transactions between the United States
and South America. All balances were
settled in London exchange with, the
pound sterling as the unit. When the
South American business man wanted
to borrow money he looked to LondOn,
and when he had deposit to'be used
in international trade he made it in
a British bank. London has long been
the international banking center. Brit
ISL capital has been OF great use to
the world in financing the develop
ment of new commercial fields. Orig
inalIy the United States and Latin
America occupied the same relation
to London. Both served as profitable
fields for the investment of British
capital and the cultivation of British
commerce. The United States has
been steadily outgrowing its depend
ence on foreign capital. The close OF
the war Is sure to find American CAPT
talists with more money available Tor
the use OF South America than the
British, who are virtually financing
the war for all of the allies. Under
these circumstances the need for Lon
don as Pan-American clearing house
must pass, and it will behOOve the
bankers of the two Americas to pro-
vide facilities for the direct liquida-
ton of balances. Even without the
war this necessity must have devel-
oped in time. The conviction that
sound economy called for closer trade
relations between the United States
and Latin-America has been slowly
but surely obtaining on both sides Of
the isthmus. 1t was this situation
which was in mind when in enactins
the new currency law congress author
lied the establishment Of branch
banks in foreign countries.
With adequate financial facilities
the foundation will have been laid for
the speedy development of commerce
with our Latin-American neighbors.
We need many of their natural prod
ucts, and many of their needs, espe
be filled more economically in the
United States than elsewhere. Indeed,
while the paralyzing effects OF the
war continue we should have very lit
tie competition in the South Ameri-
can market. Adequate transporta-
ton facilities will be essential to con-,
struction OF the superstructure OF
permanent Pan-American trade. 1t
was realization of this need that
caused President Wilson to be so
much in earnest in his demand Tor
government ownership of merchant
steamers. In trying to get the ships
afloat before the financial problem
had been solved and the way opened
lOI dCludl IIdue, Inc plSoluCAt wa"
placing the cart before the horse. Be
fore congress gets another chance to
adopt the unwise expedient OF gov
eminent ownership of ships it is hoped
some more economical method of pro-
vding American bottoms for the
South American trade may be worked
out. Necessity is the mother of in
vention in commerce as in mechanics.
When many loads are to be taken
from someone who wants to sell at a
profit to someone who wants to buy
at the price named, it is only a ques7