Weekly journal-miner., 1916-01-12

case Of government loans. But there
 is no doubt that the loans of one na-
 ton to another form the strongest kind of economic bond between the two. It is commonly said that trade
 follows the flag. It is much more truly said that trade follows the in vestment or the loan"
 Dr. Pratt emphasizes the need for trained men to handle foreign trade problems and urges their education along special lines. Schools and col leges so far have seemed unwilling to see the need, he says. or if they do nave failed to give the thorough instruction necessary.
 Commercial preparedness advocated by Dr. Pratt would foresee that war profits are not permanent and that ! at the end of the war new markets must be sought by American busi- ness.
 Tt is possible" he says, that when the war and the immediate readjust ment to follow are concluded a large part of our present exports will cease 10 flow to Europe. It is probable that Europe will be unprepared to re- sume her purchases from the United States on a scale as large as before the war. Moreover the sales that will he made will be probably largely on credit for a considerable time. If would seem. therefore, to be the part of prudence for us to distribute our trade SO widely over the worlds mar kets that the cessation of our busi ness with Europe will be proportion ately less important"
 The war has demonstrated, says Dr. Pratt, that the United States is not economically independent. The business public, he says, does not fully appreciate the financial crisis through which the country passed during the period immediately after wars outbreak Tt Is not too much to say that the United States ex- pcrienccd the severest financial strain in her history during that period,' he declares.
 Dr. Pratt urges definite foreign commercial policy by the United States. This, he says, is gradually taking shape under a wise and care ful administration" American invest mcnts abroad are being encouraged. But after all the continuing of for eign commercial policy is not so much dependent on officers of the govern ment as on the American public on public opinion-and the American public is just awaking to a realization O. the situation.
 Questioning as to the value and utility oi foreign trale Is gradually giving way to enlightened study and exploitation. Those who only a short time ago were apt to declare that domestic markets were large enough are chafing under restraints of tenn porary handicaps in developing for eign markets.
 Altogether the business communi- ty and the public desire to shake of our commercial dependence on Eu- rope and to establish ourselves com mercially Independent. This desire finds expression in the public interest," in International affairs and in our own foreign policies f
 Of suggestions that combinations be permitted in developing foreign mar. kets Dr. Pratt says:
 Tt would seem the part of wisdom at this particularly critical moment in the development of our foreign trade to extend this privilege by definite enactment or interpretation to manu- lecturers desirous of combining with other manufacturers for the develop ment of foreign markets"
 Free ports modelled after those of Hamburg and Copenhagen and recom- mended in the report. which says ad- vantage of free ports could be ob- tained by further liberalizing the pres ent bonded warehousing system, the practice Of manufacturing in bond and drawback regulations. Changes re quired could be made in the main, the report adds, by treasury order.
 New work undertaken by the bureau and reorganization plans are gone in to at length. The commercial attache ! service is described as the most inn porta1t development in the bureaus work during the year. Individual in stances of business bought to Ameri- l can houses through efforts of the bureau are related briefly. GOLD MINES