The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-01-05
As Though by Magic q. S. Sud-
denly Takes First Rank.
Financing Foreign Trade Now
Nations Great Problem.
TRAINED MEN ARE NEEDED
New York Becoming Center for
Foreign Exchange.
Right of Banks to Create For
eign Branches Great Help.

Washington. Jan. 5.-How the
United States. through the accident
of a world war. has moved from its
place as a commercially provincial
and secondary power to the rank of
first importance among the great ma
dustrially and financially-is told in
detail in the first annual report of
DR.. Edward Z. Pratt, chief of the for
eign and domestic commerce bureau
of the department of commerce
What the country has gained tenn
porarily through the fortunes of the
European conflict, says the report, it
can hope to hold in the commercial
struggle that will be resumed at the
conclusion of peace only by the most
Two grave problems face development
and maintenance of foreign trade.
The first is declared to be that of
finance and the second that of train
ing men for the work.
The financing of our foreign
trade" it says. and in fact by far the
larger part of the financing of the
worlds trade, has hitherto been done
through London During the last hun
bred years London has been the
worlds financial market. She has
held her position not because OF pres
tige merely, but because the nations
of the world needed an international
clearing house and London supplied
that. At the same time London be-
came the clearing house chiefly be-
cause she supplied a large part of the
capital needed for public improve
ments and large private enterprises.
Never Sought Foreign Trade.
The United States never has taken
any large part in financing foreign
small part of that business carried on
here and because also of the unfamil-
iarity of many of our bankers with
the methods of international finance.
Nor has the United States taken any
large part in supplying capital to 9TH
er countries. On account of more
profita Bile investments at home we
have chosen to invest here rather
than abroad. This also has been true
because of our position as a debtor
nation, but probably also to a consid-
cradle degree because of a mental
reformation attitude on the part of
our financiers.
"On account of the war this situa-
ton is rapidly changing. The volume
of foreign business done through New
York is continuously increasing and
New York banks are rapidly provid-
ing facilities for Americans who wish
to export Dollar exchange. a thing
practically unheard of prior to this
year. is assuming constantly enlarg-
ing Importance in the financial world
and is rapidly becoming popular as a
means of meeting international obli-
cations"
Follow England'S Lead.
Two provisions in the federal re-
serve act, the report says, have beer
of material assistance to the foreign
trade. One is the introduction of tht
use of acceptance and the other per
/ mission granted to national banks tC
establish foreign branches
In thus establishing branch bank.
in foreign countries the report con
tinues, we are following the lead q
! England. Germany and other Euro
pean countries, which have used theil
banks as trade outposts- European ex
| porters have been able, because the!
| had their own banking institutions OF