Evening star., 1915-05-02
IIOC 5eCOLU VI D0
first place, In the field Of international
finance"
United States Absorbs Securities.

|
| Mr.. Harding said that at the out
break Of the war 1t was estimated that
Europe held American securities valued
at not less than $4,000. 100000. and that
since that time it has disposed Of pos
sibly 100000 shares OF American
stocks and American bonds valued at
$500 1000. 900.
| Summing up recent developments. he
said the entrance Of national banks IN
| to the field of bankers acceptances, the
opening of branches in the Panama
Canal Zone and in South America and
the forth cominp pan-American fnan-
cia1 conference, all would nave lhnu-
\ ence in building up American trade
| with the world and in helping to ralSe
the financial rank Of the nation.
Years Wastage $40, 600, ,ooo, 900.
With the conclusion of the European
war will come the greatest demands
upon financial America according to
Alexander J. Hemphill, president Of tho
Guaranty Trust Company Of New York.
Mr.. Hemphill said that the wastage OF
capital by the war estimated on
years duration was $40. 200, 100000
He discussed Americas financial po-
sitton as affected by the war and after
outlining how the country had re-
versed itself from a debtor to a cred
itor nation. said:
tion has been so sudden and complete
that it really has been little less than
revolutionary Most of our financ1ers
have had little experience or training
in international finance to meet the
conditions involved in this sudden
change In addition to this lack OF
experience we had to cope with defec-
tive financial machinery. 1t was not
until the national monetary commits
sion published the result Of Its investi-
cations of European methods that this
country began clearly to see how nee
essary 1t was that we should depart
from our archaic methods and adopt
banking system which would enable
| the creation of an acceptance and dis
count market. These views and find
| ings of the commission were wisely
incorporated in the federal reserve law
and comprise the chief measure OF
from that act. State institutions have
availed of this new feature In granting
Iacceptances to a larger extent than the
national banks.
1T is essential that our manufac-
turers who desire to export their prod
ucts should develop an efficient ex-
port organization. To this end they
must study the markets which they de-
sire to supply and be prepared to take
the financial responsibility involved IN
/
this important feature to agencies. In
the final analysis the manufacturer ex-
porter must take the risks OF export
business rather than the banker. Our
manufacturers desiring to export must
understand that they must use the
same intelligence in meeting foreign
markets as they do in taking care Of
their domestic business"
Now Is Time to Get Trade.
American business men were warned
that now is the time to plan for get
ting a share of the South American
trade hitherto enjoyed by European
nations by DR.. E. E. Pratt, chief of the
bureau of foreign and domestic COM
merce
DIR. Pratt told the academy that the
which fell upon the Latin American
nations at the outbreak of hostilities
in Europe gradually was passing away.
THE countries Of Latin America"
said DR.. Pratt. (which were almost
paralyzed commercially. industrially
and financially by the outbreak of the
great European war are showing re-
| markable vitality and are gradually
| recovering. 1t cannot be expected that
they will fully recover their normal
prosperity before the close Of the war,
| but they have already, on the whole,
gone much further than might have
been exported from analysis Of the sit
| uation which confronted them immedi-
| ately after the 1st Of August.
| Now is the time for the American
| manufacturer to lay the foundations OF
| future business in Latin America; now
is the time, in spite of any handicaps
which may exist in the present COM
| mercial or financial situation in Latin
America, for the American business
man to lay the foundations for future
| trade: now Is the time to send out his
Investigators, to send out his business
diplomats, to study and report on the
possibilities. Now is the time to make
his connections and form trade rela-
uons which he can follow up and de-
| velop In future years.
1T was only natural that when the
| crisis arose at the outbreak of the
| European war the countries of Latin
America should look to the United
| States for assistance. They have
| looked and are looking to the United
| States to supply a market for their
surplus products. to secure the credits
for making new purchases and to ad-
| vance the loans to take the place of
European capital which has been with
! drawn. Heretofore South American
| countries have known little or perhaps
| even less about the United States than
this country has known about South
| America. Mutual understanding and
| acquaintance are necessary before the
United States can take. even in part
the place which Europe occupied be-
fore the outbreak OF the war This
process of getting acquainted is go-
ing on as rapidly as might be ex-
pected. With the establishment of
banking institutions such as the
branches of the National City Bank
in Argentina, Brazil and Uruguay a
great advance may be expected in the
establishment of more intimate rela-
tions between the United States and
| South America"
American Ships Needed.
| Welding Ring, in an address, assert
ed today that. Notwithstanding general
misinformation to the contrary there
| is now and has been available prac-
tically ever since the war began am
pie loading tonnage for shippers send
| ing their wares from American mar
kets to South America. Most Of these
vessels were under foreign registry.
| however he said. and radical changes
would have to be made in American
laws before the United States could
take Its place among the leading ma
tions of the sea.
| Mr.. Ring said, in paTt; "A wrong
| impression has been spread throughout
the United States that we do not have
sufficient communication with all the
various countries throughout South
however, humiliating to think that the
United States, probably the most ad-
| vanced country in the world in the
manufacture and value OF its articles,
must depend upon foreign tonnage to
carry its products throughout the