The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-02-04

battle fields, whenever that time will
come, is to be followed by trade
war more keenly and bitterly fought
than any such contest in the history
of the world. Naturally the chief con-
Germ for America is to what extent
she will be able to retain the foreign
trade she has built up during the past
year, and what new markets she will
be in a position to develop as the
years go by. While critics of Ameri-
can customs and methods have been
extremely abundant, and extremely &C
| tive, they cannot deny the fact that
more real progress has been made in
the past year in the permanent devel-
opment of world markets for Ameri-
can products than in any ten years
prior to that time. We have only to
point to the organization Of fifty
million dollar trade corporation; to
the establishment of American branch
banking connections in South Ameri-
ca; to the enlarged facilities for the
financing of our foreign trade through
the new Federal Reserve System; and
lastly, to the vast amount of trade
information that is being supplied
through the cooperation of the gov
ernment> Department of Commerce
|
officials and commercial leaders of
the South American republics. These
factors may be considered as perman-
ent and not transitory. and the i'm
petus which they give to American
export trade will not be so easily over
come by the return of European man.
ufacturers to the worlds markets
With regard to the situation in Eu-
rope, it is to be noted that already
the. Entente Allies. as we'll as their
Teutonic opponents, are preparing to
secure themselves against foreign
competition by the imposing of excess
sive and effective tariff duties. 1t is
not yet known to what extent these
tariff walls will affect the United
States, but if the statement of the
French Commission which visited this
country few months fago is to be
credited, France will very largely de-
pend upon the United States for the
materials necessary to rebuild her
ruined industries. 1t is not likely
that Russia. and to more limited ex-
tent Germany, will find themselves in
the same position. in which case we
shall not be compelled to face, COM
petition in the selling of our commodi-
ties, but will find demand for
American products much larger than
our capacity to produce. Should such
a condition confront us, we should OF
course be compelled to discriminate
between what is permanent and what
is temporarily in world trade, and to
devote Our energies to the develop
ment of permanent markets for Amer
lean commodities.
Financial Features.
There being apparently no prospect
that the situation with regard to ex-
cessive money reserves in the banking
institutions is to change in this re-
spect, prominent bankers have set
themselves to devising some other
method for remedying this situation
1t has been proposed that, instead OF
a gradual retirement of the govern
ment currency known as ''greenbacks'
as provided by the Federal Reserve
Act, these bills be retired at once
There are now about $346,O0O, 600 OIL
these bills in circulation. and financial
experts are agreed that this is the
time to reduce the elasticity of The
currency and thus accommodate the
volume of money to the variable de-
mands of the seasons. The Fedora
Reserve notes can be depended upor
to meet the neeQS OF our expanding
currency, should this be developed
later on. t, ;
j The tremendous increase in Ameri
lean wealth may be seen in the man
. ner in which our investors have alb
. sorbed the American securities which
foreign holders have been selling
steadily for more than a year. Rea
wealth in the form of agriculture
produce and manufactures has beer
, created so fast and SO abundant,
that the country as a. whole is paying
, for these securities in merchandis,
: without having to part with a dolla
in cash. Whether the foreign liquida
: ton will be checked by the extraor
binary plan of the British government
, to buy or borrow high class. American
{ securities held in the United Kingdom
, for the purpose Of borrowing or other
! wise securing money in New Yorl
: remains to be seen. but no .seriou
$ depression in stock prices is now II
l sight. .., -