The Barre daily times. (Barre, Vt.) 1897-1959, 1916-01-29
FOREIGN VENTURES
BY u. s. MONEY
Is Urged by James A. Farrell, President
of United States Steel Corporation,
in order'to Meet Keener Com
petition After the War.

lrell, president OF the United States Stee
corporation and chairman OF the nation
al foreign trades council. said at th'
opening meeting of the national foreign
trade convention here to-day that for
eign investment of American capital wa:
a prime necessity to meet the keenel
competition expected in world trade aft,
Ter the war. Until the United States
begins to finance the need Of those grow.
ling countries to which it desires to in.
crease its exports, Mr.. Farrell declared
the title Of world banker" would not
ipass to the western hemisphere.
Foreign investment he said, is a
commercial preparedness measure, a
source Of protection for the whole i'm
dustrial fabric of our country, should
the world recede to political commer-
Ieiai policies of trade restriction. 1t is
an element Of strength in our influence
as nation, should wiser instinct
realize that the true guarantee OF the
worlds peace is the provision Of equal
opportunity for all"
I'VE can no longer talk OF foreign
trade merely as an adjunct to domestic
prosperity Mr.. Farrell declared 1.-THE
fact has to be recognized that there can
be no stable prosperity at home unless
we are able to make liberal sales of
American manufactures abroad The
fact that in normal times about so per
cent Of our exports consists of food
tstutfs and raw materials gives stand
ard of measurement for the enormous
possibilities OF our mechanical produe-
ton. 10 would pay us better 10 con-
vert our raw material into finished prod
ucts here than to sell them for CONVEX
sion abroad. But advance in that d.
reetion will be relatively slow, without
d constantly broadening foreign outlet
for articles Of American manufacture.
1t is as much in the interest Of the
workman as his employer, that provision
be made for a steady sale abroad of tile
products OF the mechanical industry of
the United States, in fact the foreign
business in many corporations, since the
war began, has been their greatest as
set, and the only justification for the
operation OF their plants on full time.
This profitable employment will end
when the war ceases. The need Of
foreign outlet will remain but ability to |
market the product will not, as in the
case OF War contracts rest merely on
ability to make deliveries.
Whatever may be the nature OF the
our manufacturers will
have to meet after the war, it would not
be safe to conclude that it will be less !,
intense or less effective than hereto
fore. If it be handicapped by the scar
city and DEAFNESS OF money, it viii be
stimulated by the pressure of dire neces-
sity. II the greatly Increased burden OF
taxation and higher cost of living forces
wage conditions into closer relation with
our own, there win also be the stimulus
Of the struggle to regain lost position
that will spur employers and employed
to making of sacrifices undreamed OF be.
fore. The war has taught our people
many things in the domain of economic
fact to which they did not formerly give
sufficient heed. Not the least valuable
Of these lessons is the realization of 4,
how strongly entrenched are our COM
petitors in markets that some Of us
thought lay open for our country. When
he curtailment of European investments
n South American republics brought
heir development to a standstill in re-
iucing their purchasing power we had ,
IN object lesson in the conditions pre- !
'edent to the development of foreign :
rade."
Mr.. Farrell pointed out that an in :
of over 100000 of Brit !
sh capital in Latin America had been
ent to Latin America in the form of
'oods of British manufacture, that the
interest derived from British foreign in
estments which total $4,000. 100000 in |
alue, not only offset the United King
om's excessive imports over exports, /
ut retained and strengthened the Brit
ID hold ON neutral markets throughout
he world. The advantage Of foreign
lvestment OF United States capital, he
aid, were evident in American trade
in Canada. where about
7O0O00.000 OF American capital has
cen invested. in branches of American
lctories, mining, timber and agrieul-
lral enterprises, all tending to develop
anadian resources and expanding Cana
ian demand for American products
hich were imported into Canada in
sg7 TO the value OF only $4,000. 600,
lt were, in 1918. valued at S403. 000,0 600
4 lesser degree American investment
United States capital had stimulated
sport trade to Mexico, the central
merican and Caribbean republics.
The export Of manufactured mer-
Iandise must be largely dependent on
ie readiness Of our people 20 invest in
reign securities. These manuiactur-
: fan naturally into two groups. One
mprises merchandise consumed hy in
viduais whose choice is regulated only
Z a desire h obtain satisfactory goods
a low price. TIE second consists Of
sterials for eonstruction-math ineTy
a equipment required for the deFelop-