The Washington times., 1915-05-25
FOREIGN TRADE HERE
GROWING, IS CLAIM
Federal Reserve Board Men,
bers Address Pan-American
Financial Meeting.
CONTINUED from. First Page.)

cussion, participated In by the finan-
ciers and statesmen of Central ana
South America, regarding the means of
bringing about closer financial and com
mercial relations between this country
aid Latin America.
Governor Hamln said in part:
We all recognize today the real In
Independence of nations; they arc es-
pecially interdependent from the aspect
of trade and commerce. The nation of
large resources recognizes that In the
lcrg run 1t Is fer its own profit to
strengthen this interdependence by fur
nishins the nation of smaller resources
means to meet trade Indebtedness to 1t.
1t should never be forgotten. however.
that in the long run this Indebtedness
must be met by the shipment OF goods,
whether from the debtor country or
fl ON some other country, for its ac-
count, to the creditor country.
Means of Assistance.
THE question, however. which must
be foremost in your minds Is Just
what the United States can do in as
sistng other nations to finance their
trade movements with the United
States and with the other nations OF
the world. AS to the amount OF capt.
tai at present available In the United
States for such purposes. and the
working out in detail OF any specihc
plans or suggestions. it is not my
field open to the delegates assembled
here, and especially TO my colleague,
Hon. Paul NJ. Warburg, who can speak
with the authority OF master on
every detail of international finance;
The message which | wish to bring
to you today. however, Is that the
United States was never before in such
position as 1t occupies today to
reach out and extend its trade b.
granting credit to those nations who
ytoh tN ha 70
THE Federal reserve act has done
much to help make possible closer
trade relations with foreign countries.
The Federal Reserve Board Is given
tablish branches In foreign countries,
and 1t Is at once apparent what great
assistance this will be, but not only to
the United States, but likewise to the
great nations who are trading with the
United States. especially those whose
delegates are assembled here. Branches
of national banks have already been
authorized in Argentina. Brazil, Pana-
ma and other countries, and 1t Is eon-
fidently expected that a great develop
ment in our trade relations with such
countries Will result.
Concessions Made.
THE Federal Reserve Board is also
authorized to permit the Federal Re-
serve banks to open and maintain bank
ing accounts, appoint correspondents.
and establish agencies in foreign coun-
tries for the purpose ,asing and
selling bills of exchange arising out of
commercial transactions: these banks
are also authorized to deal in gold coin
and bullion at home and abroad. 1t Is
| easy to see what power the Federal Re-
| serve Board. through the Federal Re-
| serve banks will thereby have, In con-
| nection with its power over discount
| rates. over the movement OF the prec-
ious metals into and from the United
states.
| exercised in such a manner as to en-
courage and assist in every way the
growth Of the volume of trade between
| the United States and foreign countries
II think 1t will be realized. as ] have
before stated, that. growing out of this
new banking act. the time has come
for a marvellous development in our for
eign trade, especially with South Ameri-
ca, and that an opportunity is given to
| finance that trade such as has never
| been possible before"
Traces Upheaval.
Paul Warburg. recognized as an
authority on international finance,
traced the financial upheaval among
the nations following the sudden out
break Of the European war. He added {:
The problem affects us all: we
have all suffered together. 1t is Of
vital Importance that if possible a
proper remedy be found. Our suffer
ings originated in disturbances OF
three kinds-shipping. trade, and
| credit.
"Disruption might have been less
disastrous If. instead Of relying upon
| Europe for their credit and shipping
facilities, the American nations had
begun in time to develop and organ
ize their own large resources. Had
the United States enacted and put
into operation three years ago Its
| Federal reserve system, not only
could our country have weathered the
storm without far-reaching disturb
ances. but we should have been IN
position to save our American sister
republics much loss and inconveni
ence"
Warburg said England should not
be criticised for protecting her An
ances by declaring q moratorium.
This may well have been her duty
he said. I'VE must not blame Eng
land; we must blame ourselves for
having carelessly placed ourself in
this economically dangerous position
The chief lesson which all American
nations will learn from the last years
experiences is that 1t Is unwise fol
the world to place financial depend
ence upon any single nation.
Wants New Policy.
''Those who can afford to DO so. foI
instance. the United States. should from
this time on adopt a policy of greater
reliance upon their own resources.
"rhere Is no doubt that upon estab.
lishment OF peace. there will be a ten,
dency on the part of many nations tc
emancipate themselves in this respect
We realize ii Will be an arduous task
TO procure for our American aCCeptanCes
the same standing in world markets a.
is now enjoyed by those of nations
which have been in the field for genera,
tions past"
Warburg pointed out that in extending
it's commerce, the reserve act wOulC
greatly assist; that only 5000, 900, 900 of the
phenomenal gold resources of 81, $50 OOO, ,OO
OF this country had been mobiliZed 81
far by the reserve act. He discussed
the technical features OF esta bnshint
the American dollar exchange" will
certain rates of exchange.
"Fhe United States" he continued
will be in a safer condition II in tn,
future when placing securities issued fo
development OF our own properties w
rely to a larger extent upon our owl
markets.
Must Place Bonds.
Indeed the United States will no
only have to rely on its own resources
for internal development but it viii b,
called upon to provide means fol
absorbing the securities previously