The Birmingham age-herald., 1915-01-21
U. s. HAS TRADE BALANCE EFORF|RST TIME IN HISTORY
 --DR. E. F. PRATT Chief. of Federal Bureau of, Commerce Delivers an Optimistic Speech
 at Chicago

Chicago, January 2O.-For the first experiencing the sensation of a real trade balance" In It's favor. Dr. Edward E. Pratt, chief of the federal bureau of foreign aud domestic comme rec. told the Illinois Bankers' association at a dinner tonight.
 As a result of developments abroad dur ing the last six months, pr. Pratt said. i've have turned the corner and are fac- ing new era of business expansion in this country--an era which has made the term home market obsolete and archaic and put in it's place the unfamiliar term. world market. He explained that while the export excess in favor of the United from s25O,0O0,00O to s65O, 100000. invisible factors had made this only an apparent favorable balance
 Foreign investment in the United States, the speaker said, totaled $7,500 0O0,- 000. with an annual interest of S35O. coo, 600, constituting a fixed charge on American industries, while American investments abroad produced a revenue yearly of only $75,OOO,00o. reducing the balance against the United States on this count to s275,- 000.000. American tourist traffic also poured millions into European coffers each year, he added, the 1914 figure being approxi- mately $2S6. GOO; foreign-b born Americans sent home annually at least $50, ,o00. 900. and foreign shipping companies collected freight rom American foreign commerce amounting to s250oO,O0o year. Invisible Factors The result of all these invisible factors during the fiscal year of 1914, Dr.. Pratt said, had been to produce an actual ex- cess of renittances over receipts of s55,- o0o,ooo. -.' The change began on July 1, 1914, he said and by December 3l the favorable trade balance was s1S3 Oo0,0Oo, due to huge ex l portations of foodstufrs merchandise, gold and silver At the same time came "a period of export capitalism, and we are just at the point of expanding into the world markets
 To illustrate export capitalism Dr. fTdtt clIcQ tut oWeuISH lodil 0l 4O,VVpOs 1 the Argentine loan of $i5.UUC.00o, and the Russian loan of $25,000.0OO, all floated in this country during the last six months. Dr. Pratt said information now at hand placed the total of war loans made by the belligerents at $500, 100000, all made at high rates of interest
 "The income expected and obtained on I investments in Europe" he continued. has been much less than that prevailing or expected in this country. This war will, however. be succeeded by a period of high interest. It will be succeeded by | a period of intense demand for capital for reconstruction purposes. The stock of capital is being depleted and 1t is more likely that financial exhaustion rather than military exhaustion will determine l the iinal result
 r Will Have Little Advantage
 At the c.ose of the war. then. Europe will not have much advantage over us
 III the matter of cheap capital" he con- cluded.
 | pr. Pratt said development of trade with Latin America had been hampered by long term credit extended by European l nations.
 1 After her present debts are iiquidated, 2 he asserted. Europe will be unprepared
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