The Washington herald., 1917-01-14

age the orderly process of trade er-
pansion. foreign as wei as domestic
The banker who deliberately discour-
ges sound export trade invites resc-
tion upon his own local business com
munity. This is principle which
applies TO every section Of the coun-
try. II our exports OF cotton. of grain.
OF metals. of boots and shoes fall OF
heavily. such decrease 10 bound 10 be
felt severely throughout all the pro
ducing regions Of the rar West and
South. probably even more than In the
districts given over 70 manufacture.
There is clearly no method Of PEE
venting such decline In prosperity
unless all communities OF the country
cooperate in adopting measures for
reasonable extension of credit 20 the
nations that buy our goods. Furtnsr,
with the almost too rapid pace that
our home trade has reached, the aver
age American banking institution to-
day seems mS ch more likely 10 render
Itself unliouId through excessive do
nestle credits than through the occa-
sionsi foreign credits offered to 81.
Total banking resources IN America
today aggregate about $4,000. ooo. 900.
These are. Of course, made up chiefly
of domestic Ooca) loans. Compare,
then. the total OF such loans with the
aggregate OF foreign credits likely to
even though such credits should. be-
fore tbs wars end. Increase materially
over the present figures.
shouId Foster Good VIII.
Sixth: Sentiment In Business-when Mr..
Morgan, shortly before his death. said
''characte IL more than collateral" the
remark excited much comment. Some
what similsrly., the idea Of sentiment in
business is frequently questioned Yet
under the term Of good Will II is the most
important single asset in any business
Bricks and mortar. or mere cash capital
can be replaced; good will once lost 10
gone forever.
For I25 years, since the foundation OF
the American Republic up TO the date OF
August /. 1914. Great Britain and France
extended to this country almost unlim-
tied credit.
They furnished capital TO build our
railroads, to construct our factories; they
lent money TO move our crops. They had,
as before mentioned furnished US with
our requirements up to an Approximate
amount I'm permanent investment Of five
or sir billions Of dollars. The additional
temporary credits granted by them 70 US
had for years run each season TO many
hundreds Of millions Of dollars A great
part Of this credit was extended at times
/ when our industries were upon a pre-
carious and doubtful basis.
Even as recently as the time Of our
1907 panic the Bank OF England, II will
be remembered, refused TO entertain doubt
as to the goodness OF our commercial
paper and continued to Americas great
relief TO purchase the bills Of houses that
here In America were In somewhat doubt
! full credit. Today our export trade 10 30
huge-calculated. as I say. at 5000, 600
for lslS-that Americas profits alone tror1
this trade ought far to exceed the amount
Of any possible credits that may be asked
Of us by England, France, and Russia Is
| Il too much to suggest that there u some
moral obligation due, at this time. from
a now rich and prosperous America to
valued clients who. in the times OF our
need, have never failed TO grant the
credit wherewith 10 build Up our own
prosperity?
7 but the sentimental 10 not a chief ride
Of the question The main point is this
| America. IL would seem. has never before
faced. in her Industrial and oommercis'
affairs so serious and yet so clear-cpt q
situation. By exercising wisdom and gen
erosity, the United States can place her
self In the leadership OF the world In those
. affairs that lead 20 a country's ma ter1sl
pel.-being and thereby furnish Il the pow
er to develop more speedily it's best ideals
But to turn from the present opportunity.
10 decline TO extend credit generously A.
well as pruUently TO OF customers abroad
will be 10 close upon ourselves the door
that will never reopen