The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-01-27
DEFENSE FOR TRADE
URGED BY FARRELL
President of U. S. Steel CorpO-
ration Points Out Need of
Foreign Investment.

NEW ORLEANS, Jan. 7.-world
trade and finance problems which will
confront the United States after the
close of the European war were dis
cussed today at the opening session of
the third National Foreign Trade Con-
vention.
James A. Farrell. president of the
United States Steel Corporation. de-
clared foreign investment OF American
capital would be a prime necessity to
meet the keener competition expected in
world trade after the war.
Mr.. Farrell pointed out that an in
vestment of moro than 81, OOo. 10000 OF
British capital in Latin-America had
been sent to Latin-America in the form
OF goods of British manufacture; that
the interest derived from British for
eign investments, which total $20,OOO.-
100000 in value. not only onset tho
United Kingdoms excessive imports
over exports. but retained and strength
ened the British hold on neutral mar
kets throughout the world. He said
British manufactures now are being ex-
ported at the rate of $3.50, 5000 a month.
Commercial Preparedness.
In conclusion, Mr.. Farrell said:
Foreign investment is 4 commercial
preparedness measure, a source OF pro-
lection for the whole industrial fabric
of our country, should the world re-
Ccde to political-cOmmercial policies OF
trade restrictions. 1t is an element OF
strength in our influence az a nauOa
should a wiser instinct realize that
the true guarantee of the worlds peace
is the provision OF equal opportunity
Alba B. johnson, president of the
Baldwin Locomotive WORKS in Phila-
delpl1ia, predicted a period of fever
continuance of the war. and upon It's
close a prostration of the industry and
commerce of all countries" He en-
phasized the necessity for a truly ma
prepare the United States for the
keener competition expected to prevail
in world markets: He cclled atten-
ton to the possibility of economic al
had united their fortunes fer war, and
Upon the possible adverse effect OF
such policies. upon the trade of the
United States.
Sees Good In Trade Body.
Mr.. johnson said the Federal Trade
Commission doubtless would prove of
great benefit to American manufac-
turers and exporters. He urged the
creation OF a permanent tEriff conf
to adapt itself to the changed con-
ditions.
Edward ]. Berwind, president CT tho
Berwind White Coal Company, discuss
| ing investments in l-atin-America SAIL:
The change in the financial relations
OF tho United States with the European
| nations that has taken place within
| the last year would be conducive 10
| foreign investments. American capital
now has the opportunity as never be-
| fore to assume the relation TO latin
| America that has been held heretofore
by the European nations.
There is probably more capital av9il-
| able for foreign investment at the pres
ent time in the United States than ever
before and there is ample opportunity
/ for the use of money In LATIN America.
II the Investor and the opportunity cen
he brought together upon a basis OF
confidence and security a powerful
stimulus will be given to our foreig4
trade, and an advantage viii he gaine
for our commerce that will be dlttcuA
to disturb.
Foreign Concessions.
Perhaps the most aliuTing investment,
and at the same time the most danger
| Gus, Is the exploitation of foreign con-
cessions OF many varieties with which
unscrupulous promoters appeal to the
| cupidlty OF unwise or unwary investors.
| While in the aggregate the amount VI
money thus placed at risk Is NOT very
large, the effect upon the unfortunate
| investors, and indirectly upon more
cautious capital. Is tc create distrust
| OF legitimate and worthy investments
In the countries to the south of US.
1.-THE emlnently practical form of in
veStment in foreign countries Is the Gs-
tablsihmeEt of branch factories or dis
trihuting 6epOts To care directly for the
trade OF the tributary territory"