The Birmingham age-herald., 1917-09-27
FARRELL ON FOREIGN TRADE
By HOLLAND

New York, September 2s.-(special)
 No leader in American industry and not
 any one of those who have in recent
 years so highly developed American ex-
 competent to speak of German methods
 in obtaining and maintaining foreign
 trade than James A. Farrell. president
 of the United States Steel corporation.
 When MT. Farrell as executive head of
 the foreign sales department, so-called,
 which was created by the steel company
 for the purpose of developing as great
 trade for American steel products in
 the foreign market as possible, began to
 approach these markets he ran up
 against methods peculiar to Germany which were unknown to American ex- porters, and if they were known by the English exporters were not practiced by them. The policy adopted by the Ger man exporters was to get the trade by fair means or by any other means, for trey believed that the end would jus tify whatever means were taken. This policy reached such point that there were merchants of other nations who
 would not accept a promise made by a German exporter unless 1t were accom- panied by bond.
 But Mr. Farrell also was compelled to give some measures of admiration to the perfection to which Germany had
 carried the principle of co-ordination and combination in establishing and | <51 ~ efficiency her industries.
 A few days ago in an address deliv- cred by President Farrell to the repre- sentative business men who met in Att lantic City, he pronounced economic
 pressure and economic strength as the
 weapon by means of which ultimately
 war with Germany and Austria would be
 brought to a successful termination. Gu
 riously enough when this convention of
 business men was in session other opin- ions were advanced and published which
 referred to the best weapon for termt- mating the war. MT. Hoover was conf1- dent that starvation of Germany and her allies was to be tho triumphant weapon.
 high English authority declared that
 abundance of powerful air machines of all kinds would prove to be the deciding
 factor. From Washington came infor- nation that the belief prevailed with
 some in authority there that the elimi-
 nation of the submarine danger would
 speedily bring the war to an end. Gen.
 eral Leonard Wood declared that men and munitions would secure the great
 military triumph that would end the
 war. MT. Farrell, however. was of the opinion that economic pressure would be
 found the ultimate weapon and he ap-
 parently included in the economic pres
 sure the policy recommended by MT.
 Hoover which is the starvation of Ger
 many and Austria, while at the same
 time we are abundantly feeding our
 selves and our allies.
 Speaking as an expert with unusual information respecting the German eff ciency, MT. Farrell said that but for
 mans in co-ordinating many factors to
 unified and common end, Germany
 would have ere this been beaten. Tn his opinion tho United States and our allies have much to learn respecting CO., ordination and efficiency from Germany. and there were intimation from what he said that not tho least of tho lessons Is the one which teaches the true relation between the government, as well as state legislature. and the industries and busi- ness life of the United States. The ih- timation was contained in MT. Farrell reference to our trade relations with the Latin American countries. These are en- Itirely peaceful relations in the sense 1 that our commerce with the Latin American countries is almost exclusively made up of commodities which enter l into the arts and industries of peace. l One of the earlier efforts of MT. Far rell when he was attempting to develop our export trade in steel commodities referred to the South American market l There he found German and English competition almost unbeatable. Our gov l ernment was in no way aiding in the l development of our commerce with South America. There prevailed at one l time an opinion that if We confined our.
 selves principally to commerce between the states and our trade with Europe
 we would be much better occupied than if we undertook to develop large trade with the nations of South America, ol if we invested American capital in those countries.
 4 Now with the tolerance of the gov 1 ernment and from one point of view al
 a military necessity due to exigencies
 of the war we have of sudden devel- oped trade with Latin American cOun and should become much greater aftel the war Is over There was also cleal intimation in what he said that Ger many has lost for long time and very likely permanently the remarkable trad'
 sho built up with the South American