The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-01-27
To Meet the Keener COMPETE
ton in Trade Expected
after European War.

NEW ORLEANS, Jan. 27.-James A.
Farrell, president Of the United States
Steel Corporation and chairman Of the
National Foreign Trade Council, said
at the opening meeting Of the National
Foreign Trade convention here today
that foreign investment OF American
capital was a prime necessity to meet
the keener competition expected in
world trade after the war. Until the
United States begins to finance the
need OF those growing countries to
which 1t desires 10 increase It's ex-
ports, Mr.. Farrell declared the title OF
world banker" would not pass TO the
western hemisphere.
Foreign investment" he said, lis
n commercial preparedness measure, q
source OF protection for the whole in
dustrial fabric Of our country, should
the world recede to political-com-
mercial policies Of trade restriction.
1t Is an element OF strength in our in
iluence ms a nation, should a wiser in
stinct realize that the true guarantee
of the worlds peace is the provision
Of equal opportunity for all"
Liberal Sales Necessary.
I'VE can no longer talk OF foreign
trade merely as an adjunct Of domestic
prosperity" Mr.. Farrell declared.
1.-THE fact has to be recognized that
there can be no stable prosperity at
home unless we are able to make lib
eral sales OF American manufactures
abroad. The fact that in normal times
about sixty per cent Of u exports
consists Of food stuffs and raw ma
terials gives a standard Of measure
ment for the enormous possibilities Of
our mechanical production. 1t would
pay us better to convert our raw ma
tcrials into finished products here
than to sell them for conversion
abroad. But our advance in that d.
rection will be relatively slow, without
a constantly broadening foreign outlet
for articles OF American manufacture.
1t is as much in the interest Of the
workman as his employer that pro-
vision be made for a steady sale abroad
OF the products Of the mechanical in
dustry OF the United States, in fact
the foreign business in many corpora
tions, since the war began, has been
their greatest asset, and the only JUS
LITIGATION for the operation Of their
plants on full time.
This profitable employment will
end when the war ceases. The need
of a foreign outlet will remain but
ability to market the product will not.
as in the case Of war contracts rest
merely on ability to make deliveries.
Whatever may be the nature Of the
competition, our manufacturers will
have to meet after the war, it would
not be safe to conclude that it will be
less intense or less effective than here
tofore. If it be handicapped by the
scarcity and dearness OF money, it will
be stimulated by the pressure Of dire
necessity. II the greatly increased
burden OF taxation and higher cost OF
living forces wage conditions into clos
er relation with Jul own, there will
also be the stimulus Of the struggle
To Regain n Lost Position
that will spur employers and employed
to the making Of sacrifices undreamed
OF before. The war has taught our
people many things in the domain OF
economic fact to which they did not
formerly give sufficient heed. Not the
least valuable Of these lessons is the
realization of how strongly entrenched
are our competitors in markets that
some OF us thought lay open for our
occupancy. When the curtailment Of
European investments in South Amer
lean republics brought their develop.
ment to a standstill in reducing theil
purchasing power we had an object
lesson in the conditions precedent tc
the development Of foreign trade"
Mr.. Farrell pointed out that IN in
yestment Of over 1000, 900 900 of Brit
lsh capital in Latin-America had beer
sent to Latin-America in the form o.
goods OF British manufacture, that the
interest derived from British foreign
investments which total $50, 000, 000,0 0C
in value, not only Offset the United
Kingdoms excessive imports over ex'
ports, but retained and strengthened
the British hold on neutral markets
throughout the world. The advantage
OF foreign investment Of United States
CAPITAL, he said, were evident in Amer
lean trade predominance in Canada
where about $4,000 900 Of American
CAPITAL has been invested, in branches