The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1915-01-22
our FIRST REAL
TRACE BALANCE
UNITED STATES FACING NEW
ERA OF BUSINESS EX-
PANSION
NATION BECOMES
A WORLD MARKET
Foreign Investment in America
Totals $500, 100000 With
Interes. of S35o,O0O,O 900.
(py Associated rrnsal

(By Associated Prcss)
CHICAGO. Jan. 20.-For the first
time in History the United States is
experiencing the sensation OF q real
trade balance in its favor. DR.. Ed
ward E. Pratt. Chief OF the federal
bureau Of foreign and domestic COM
merce. told the Illinois Bankers AS
socintion at dinner here tonight.
AS a result OF developments abroad
during the last ak months, DR.. Pratt
said. I'VE have turned the corner and
are facing new eFa of business ex-
pansion In this country-an era which
has made the term home market OBJ
solete and archaic, and put in its
place the unfamiliar term world
market" He explained that while
the export excess In favor of the Unit
ed States had ranged annually for Ia
years from $250.O00.000 to 50,OOO,-
600. "invisille factors" had made this
only on apparent favorable balance.
Foreign Investments in the United
States. the speaker said. totalled ST.
b0O.0OO,00O with an annual interest OF
$3.50, 100000 constituting Il fixed
charge on American industries, while
American Investments abroad produc-
ed revenue yearly only OF s75,O0O,-
600. reducing the balance against the
United States on, this count to S275,-
O0n, 600. American tourists traffic also
poured millions into European cof-
fers oaehf year, he eiadded, the 1914 fig
ure being: approx ximateIy S286, 600, 600 !;
foreign born Americans sent home an
nually at least $3.50. 100000, and for
eign shipping companies collected
freight from American foreign COM
riefce amounting to $25 200, 900 a year.
The result Of all these invisible fac
tors during the fiscal year OF 1914
DR.. Pratt said. had been 10 produce
an actual excess of REMIT ,nces over
receipts OF $55. 100000.
The change began on July 1, 1914,
he said, and by December 81, the fav-
orable trade balance was $133.OOO,-
600 due TO huge expectations OF food
stuffs. 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" :"
DIR. Pratt cited the Swedish loan of
$6,00O,00O. the Argentine loan of $15,-
100000 and the Russian loan OF $685.
100000 all floated In this country dur
ing tie last six months.
DR.. Pratt said information now at
hand placed the total OF war loans
made by the belligerents at Sc, ,Gon.-
100000, all made at high rates of in
terest. 7 p
The Income expected and obtained
on Investments in Europe" ,se contin-
ueds has been much less than that
prevailing or expected. In this coun-
try,NT This war will, however, >be sue
ceeded ;byIa period of high interest.
1t Will be succeeded by. q period of
intense demand for capital for recon-
struction purposes. The stock of CAPT.
cal is being depleted and 1t is more
likely that financial exhaustion ratll-
er than military exhaustion will de-.
ternfne the final result. q &.
AT the close of the war. then. Eu-
rope will not have much advantage
over US in the matter OF cheap capi-
tai, he concluded.
IS Df. Pratt said development OF trade
with sIAtih.America had been ham,
pered sby long term credit extended
by European nations. .rgst j.
l ""Aft or her present debts ara liuui!
deted,r he asserted, Europe will be
.unpfepared to keep her working capi-
tai tied mp In floating debt, and. Eu-
ropean manufacturers. Will be no
more willing TO gre; long time; credit
than our own: Again we swill be on
Q parity With European nations. - ~:
He urged establishment OF Ameri-
can banks In Central and South Amer
lea ms the most imp step to-
ward, ;tfade pansion there: and fav.
tired anne endnlent of national banking
ihwh to permit hanks to hold q limited
amount pf Htcck In cover -sea y banks
esfahliBhed exGin sIvaly for IS f0fefg,,