The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-01-04
Sharp Note of Warning
Regarding Foreign Trade

In his first annual report as chief
of the bureau of foreign and domes-
tic commerce, DR.. Edward Ewing
Pratt lays particular stress upon the
fact that ''this great European war
has suddenly and in a moment thrust
before the eyes and imagination Of
the American business community the
subject of foreign trade" AS this
bureau Is more directely interested IN
the development Of foreign trade than
any other government Office, a large
part of the annual report is devoted
to a discussion Of commercial condi-
tions brought about by the war and
to constructive suggestions for fur
Their extensions of our trade abroad.
After describing in detail the
growth of our foreign trade during
the first twelve months Of the war, a
sharp note OF warning is sounded con-
corning the per1nanence of large
portion of our present trade with bell
ligerents.
'sThe American business COM
munity," it is asserted, SHOULD guard
against any sense Of safety in our
present prosperity in SO far as that
prosperity Is based on business con-
nected with the beliigerent activities
in Europe. Our business men should
carefully discount the continuance Of
so-called war orders and avoid basing
future calculations upon conditions
which they bring into existence.
European war orders doubtless
are bringing to some manufacturers
immediate and large profits. They
do not in any way, however, indicate
permanent business. 1t Is conceivable
that they may be positively injurious,
by diverting the attention of our man
ufacturers from foreign markets in
Latin-America, the Far East, Africa
and Australia, to which we should at
the moment be directing our most
earnest efforts. We may be volun-
tarily giving up our greatest oppor-
tunities. We may be foregoing the
permanent markets of the world to
make a few extra dollars Of imme-
tiiate profits"
Two of the great problems that
must be solved if the United States
is to make the most of its present OPP
portunities receive much attention in
the report-fnancing foreign trade
and the problem of educating men to
carry on such trade.
"The financing of our foreign
trade, and in fact by far the larger
part of the financing Of the worlds
trade, has hitherto been done through
London" says the report. During
the last hundred years London has
been the worlds financial market
She has held her position not because
of prestige merely, but because the
nations of the world needed an inter
national clearing house and London
supplied that. AT the same time Lon
don became the clearing house chiefly
because she supplied a large part OF
the capital needed for public improve
ments and large private enterprises.
"On the other hand, the United
States has never taken any large part
in financing foreign trade because of
the comparatively small volume OF
that business carried on here and
also on account of the unfamiliarity
Of many of our bankers with the
methods of international finance. Nor
| has the United States taken any large
part in supplying capital to other
countries. On account of more profit
able investments at home we have
chosen to invest here rather than
abroad. This has also been true be-
cause of our position as a debtor ma
ton, but probably also to a coRsid-
erably degree because of mental
debtor-nation attitude on the part of
our fnanciers." Y
4