The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-01-27
Foreign Investment
Is Urged By Farrell
As A Real Necessity

anu BTlCultuTd euLeTpTI5eb, Ill leuu-
ing to develop Canadian and
expanding Canadian demand for Amer
lean products which were imported
into Canada in 1897 to the value OF
only $4,000, 900, but were, in 1913,
valued at $403, 900, 900. In lesser de-
gree American investment Of United
States capital had stimulated export
trade to Mexico, the Central American
and Caribbean republics.
"The export Of manufactured mer-
chandise must be largely dependent on
the readiness OF our people to invest
in foreign securities. These manu-
f~acturers fall naturally into two
groups. One comprises merchandise
consumed by individuals whose choice
is regulated only by a desire to OBJ
tain satisfactory goods at a low price.
The second consists OF materials for
construction,-machinery and equip
ment required for the development OF
extensive enterprises. The demand
for these follows the possession OF bor-
rowed capital for construction Of rail-
ways, tramways, port works, power
plants, lumber mills. plantations.
packing establishments and irrigation
projects, mines, factories and mills.
Scales Are Growing.
1.-THE scale on which such enter
prlses are projected is constantly
growing. Millions are borrowed where
thousands were sufficient a quarter OF
a century ago.. Frequently the loan
contracts and arrangements for the
supply OF materials are combined in a
single transaction, assuring the sup
ply of materials to the country which
provides the funds. Thus, railways
financed in London will be constructed
by British engineers under specifica-
lions drawn to favor British products
and eventually British rolling stock
will be operated on British rails by
British officials, and a British char
acter impaired to the demands arising
from the constructive activities slim
ulated along the right of way. Rail-
way enterprises promoted by German
capital have similarly served German
commerce. Spheres Of commercial in
luence have thus been created to the
advantage Of all interests affiliated
directly or remotely with the original
loan.
"What is true OF railroad construc-
ton is true OF most other enterprises
based on foreign investments. A par
tial exception may occure in the case
Of loans to governments who, in the
matter Of constructive enterprises are
not usually required to favor speci-
fed material. In the case OF China,
even this exception does not hold good,
but in most other countries govern
ment railways are among the few
where an open market can be found
for American equipment.
Prosperity Safeguarded.
Dealing with the possibilities OF de-
velopment of export trade in m%anufac-
lures, it is well to remember that we
meet with competitors in this field to
whom its possession is a matter OF
national existence. BY Great Britain,
no less than by the other industrial
belligerents, the ordinary investment
of capital abroad will be largely sus-
pended during the war and must suf-
fer a diminution in volume after 1t.
But the argument that an impover-
ished Europe will require all that 1t
can save or borrow for domestic re-
Mobilization overlooks the fact that
Europe's foreign investments safe
guard the prosperity Of its industries.
A loan which brings from abroad a
liberal interest return, while insuring
employment for a large proportion Of
the industrial population, is a doubly
valuable domestic asset. In this con-
nection the fact may be noted that
British manufactures are still being
exported at the rate Of S150,OOO,OO a
month.
"But, be the competition for foreign
markets after the war more or less
intense than heretofore, this fact
stands out clearly: leaving out of
sight the gigantic task Of repairing
the material waste Of war in Europe,
the needs of undevelopcd countries are
growing with steadily Increasing ra-
pidity. They are able to absorb, in
one form or another, all the complex
appliances Of our modern civilization,
all the aids to material comfort and
well being that we have come to re-
gard as commonplace necessities, hut
with which the world at large is but
sparingly supplied. The demand will
not be lacking IL we stand prepared
to meet IL prospective customers half
wav