The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1916-01-05
WHAT WAR HAS DONE F0R FOREIGN
COMMERCE 0E THE gN!EEl STATES

ed. our exporters have been hamper.
ed by the lack OF these facilities. More
important than this, documents con.
tanning often the most confidential
facts Of our merchants and manufae-
turers have been open to the scru'
tiny OF our competitors.
at has been rare sight to see let
tiers OF credit or bills Of exchange
drawn In dollars. Usually the Ameri-
can merchant has done his business in
pounds sterling, often paying the cost
Of conversion. The inauguration OF
branch banks obviates the necessity
of this practice and makes 1t possible
to do business in dollars. With an In
creasing volume OF dollar exchange
and with an increasing number OF
branch banks and American banking
institutions, dollar exchange will be-
come more stable. At present dollar
exchange Is preferred in the money
markets of the world. Whether it will
be after the restoration of normal con-
ditions in Europe remains to be seen.
I'VE can never hope to, realize the
reality Of big prizes, In foreign trade
until we are prepared to. loan capital
TO foreign nations and foreign enter
prises. The big prizes in foreign trade
are public and private developments
of large proportions, the building OF
railroads, construction of public ser
vice plants, Improvement of harbors
and docks and digging of canals.
New countries generally are poor.
They look to older and richer coun.
tries to supply them with the capital
to make their improvements and to
develop their resources. The country
which furnishes the capital usually
sells the material and does the work.
The country that wants the business
must finance the purchases. The same
thing is true, but less directly, in the
case OF government loans. But there
ia no doubt that the loans Of one ma
ton to another form the strongest kind
of economic bond between the two. It
is commonly said that trade follows
the flag. 1t is much more truly said
that trade follows the investment or
the loan"
DR.. Pratt emphasizes the need Of
trained men to handle the problems OF
foreign trade and urge their education
along special lines. Schools and col.
leges so far have seemed unwilling to
see the need, he says, or If they do,
have failed to give the thorough IN
struction necessary.
Commercial preparedness. advocated
by DR.. Pratt would foresee that war
profits are not permanent and that at
the end of the war new markets must
be sought by American business.
"It is possible" he says, that when
the war and the immediate readjust-
ment to follow are concluded large
par tof our present exports will cease
to flow to Europe. 1t is probable that
Europe will be unprepared to resume
her purchases from the United States
on a scale as large as before the war.
Moreover the sales that will be made
will be probably largely on credit for
a considerable time. 1t would seem;
therefore, to be the part Of prudence
for us to distribute our trade SO wide
w over the worlds markets that the
cessation Of our business with Europe
will be proportionately less impor-
Pratt, that the United States is not
economically independent. The bust
ness public, he says, does not fully APP
preciate the financial crisis through
which the country passed during the
period Immediately after the wars
outbreak. at is not too much to say
that the United States experienced tho
seyerest financial strain in her history
during that PERIOD" he declared.
DR.. Pratt urges "a definite foreign
commercial policy by the United
States. This he says is gradually TAX
ing shape under wise and careful adj
ministration. American investments
abroad are being encouraged. But af-
ter all the continuing Of foreign COM
mercial policy is not so much depend
ent on officers of the government as
on the American public-on public
ooiricn-and tho american public is
just awaking to realization of the
situation.
Questioning as to the value and
utility Of foreign trade is gradually
giving way to enlightened study and