The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1916-01-05
Federal Reserve Act Has
Been d. Great Assist
ance.
HEIRS THE FINANCING
Without This America Could
Not Seize the oppor-
tunity.

WASHINGTON, Jan. Slow the
United States through the accident OF
aSWorld war has moved from IFS place
asia Commercial provincial and sec
0ndaryR power. to the rank OF first i'm.
p0rtRnee among the great nations OF
theRWorid-ecolnnomically, Industrial
IYSand hnancially-is told in the frst
annual report of DR.. Edward q. Pratt,
gGtfaf Of the Foreign and Domestic
Commerce Bureau Of tho Department
OF Commerce.
What the country has gained tenn
porariIyS 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
farsfghted commercial preparedness
TWoSgfave problems face development
and maintenance of foreign trade. The
first Is declared to be that OF finance
and the second that of training men for
theSwork.
.sThe financing Of our foreign trade"
sitssays, :and In fact by far the larger
part Of financing Of the worlds trade,
has hitherto been done through Lon
don. During the last hundred years
London has been the worlds financial
market. She has held her position not
because of prestige merely, but be-
cause the nations OF the world needed
Jan international clearing house and
london supplied that. At the same
time london became the clearing
house chiefly because she supplied a
large part Of the capital needed for
publ improvements and large private
enterprises.
seThe United States never has taken
any large part in financing foreign
trade because Of the comparatively
small part of that business carried on
here and because Of the unfamiliarity
oHImanyS our bankers with the meth
DDS Of international finance. Nor has
the United States taken any large part
inssupp1ying capital to other countries.
on account Of more profitable invest
Sments at home we have chosen to in
vest here rather than abroad. This
also has been true because of our po-
sition as a debtor nation, but probably
also to a considerable degree because
of mental debtor-nation attitude on
5th6Spart of our financiers.
.On account OF the war this situa-
ton is rapidly changing. The volume
OF foreign business done through New
York is continually increasing and
New Fork banks are rapidly providing
facilities for Americans who wish to
export. Dollar Exchange, thing
practically unheard of prior to this
year. Is assuming constantly enlarg-
ing importance IN the financial world
and sis rapidly becoming popular as a
means of 5meeting international Obliga-
Stionss
TWO provisions Of the Federal Re-
serve Act, the report says, have been
of material assistance to the foreign
trade! One is the Introduction Of the
use OF acceptance and the other per-
migsion granted to national banks to
establish foreign branches.
L In thus estab lishing branch banks
IN foreign countries" the report con-
linues; we are following the lead of
England, Germany and other foreign
Countries which have used their banks
as trade outposts. European export
efs have been able, because they had
their own banking institutions on the
8gronnd; to extend credit to their Gus.
otnersEWhenl such credits were deserv-