The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-02-03
FACE NEW BUSINESS ERA
UNITED STATES NOW HAS REAL
FOREIGN TRADE BALANCE.
DR.. Pratt, Head Of Foreign and Do
mestic Commerce Bdread, See
Prosperity Ahead.

prosperity Ahead.
For the first time in history the
United States is "experiencing the
sensation of real trade, balance" in
Us favor, DR.. Edward E. Pratt, chief
of the federal bureau c. foreign and
domestic commerce, told the Illinois
Bankers association at dinner at
Chicago.
As result of Developments abroad
during the last six months, DR.. Pratt
said, We have turned tie corner and
are facing a now err, Of business eX-
pansion in this country--an era
which has made the teln home mar
ket' obsolete and archaic, and put in
it's place tho unfamiliar term world
market He explained that while
the export excess in favor of the
United States had rcnged annually
for fourteen years from S250,000,000
to SS50,O00,O00, invisible factors
had made this only an apparent favor
able balance.
Foreign investment in the United
States, the speaker said, totalled ST.
| 500, 100000, with an annual interest
of 100000 constituting fixed
charge on American industries, while
American investments abroad produc.
ed a revenue yearly of only $75,0O0,-
| 600, reducing the balance against the
United States on this count to S275,.
100000.
American tourist traffic also pour.
| ed millions into European Golfers
each year, he added, the 1914 figure
being approximately S2S6,000,000;
foreign born Americans sent home
annually at least S150,000,000 anc
foreign shipping companies collected
freight from American foreign com
merce. amounting to S25,000,000 &
year.
The result of ell these invisible
factors during the fiscal year Of 1914
DR.. Pratt said, had been to produce
an actual excess of remittances ovel
receipts Of s55,000,O00.
The change began on July 1, 1914
he said, and by December g. the fav
orable trade balance was S133,000,
900, due to huge expectations c.
foodstuffs, merchandise, gold and sill
yer. At the same time came a ''pe
riod of export ca1 talism, and we arr
just at the point of expanding int
the world markets
To illustrate export capitalism
DR.. Pratt cited the Swedish loan o
| S5,000,000, the. Argentine loan 0
| SIS, 100000 and the Russian loan o
| s25, 100000, all foated in this coun
try during the last six months.
DR.. Pratt said information now a
hand placed the total of war loan
made by the belligerents at $4,000,
| 100000, ell made ct high rates of in
terest.
| "The income expected and obtain
ed on investments in Europe" b.
continued, "has been much less thai
prevailing or expected in this coun
try This war will, however, be sue
ceeded by a period Of high interest
It will be succeeded by period of in
tense demand for capital for recon
struction purposes. The stock Of cap
| ital is being depleted, and it is NOR
, likely that financial exhaustion rathe
than military exhaustion will deter
mine the final result.
cat the close of the war, then
Europe will not have much advantag
over US in the matter of cheap capi
tal," he concluded. Dr.. Pratt sait
development had been hampered b,
long term credit extended by Euro
pean nations.
'"After her present debts are liqui
Dated" he asserted, Europe will b.
unprepared to keep her working cap
ital tied up in a floating debt, ant
European manufacturers will be NJ
more willing to give long time credi
than our own. Again we will be on ;
parity with European nations"
He urged establishment Of Ameri
can banks in Central and Soutl
America as the most important stel
toward trade expansion there, ant
favored amendment of national bank
ing laws to hold limited amount O
stock in "oversea" banks established
exclusively for foreikn trade business