The Washington herald., 1917-09-27
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the Counhy's Best Newspaper.

No leader In American industry. and
not any one Of those who have in
recent years so highly developed
American export trade, IL regarded
here as more competent to speak OF
German methods in obtaining and
maintaining foreign trade than James
A. Farrell. president of the United
States Steel Corporation. When Mr..
Farrell. as executive head of the for
eisn sales department, so-called.
which was created by the steel COM
pany for the purpose of developing
as great a 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 un-
known to American exporters, and
il they were known by the English
exporters. were not practiced by
them. The policy adopted by the
German exporters was to get the
trade by fair means or by any other
| means, for they believed that the end
would justify whatever means were
taken. This policy reached such a
point that there were merchants of
| other nations who would not accept a
promise by a German exporter I'M
less II were accompanied by a bond.
But Mr.. Farrell also was compelled
to give some measure OF admiration
to the perfection to which Germany
| had carried the principle of co-ordi-
nation and combination in establish
ing and then bringing to the highest
degree of efficiency her industries.
few days ago, in an address de-
livered by President Farrell to the
representative business men who met
In Atlantic City, he pronounced eco
nCmic pressure and economic strength
as the weapon by means OF which
ultimately war with Germany and
Austria would be brought to a sue
cessful termination. Curiously enough
when this convention of business men
was in session other opinions were sd-
vanced and published which referred
to the best weapon for terminating
the war.
Mr.. Hoover was confident that star
walton of Germany and her allies was
TO be the triumphant weapon. A high
English authority declared that album
dance of powerful air machines of all
kinds would prove to be the deciding
factor. From Washington came in
formation that the belief prevailed
with some in authority there that the
elimination of the submarine danger
would speedily bring the war to an
end. Gen. Leonard Wood declared
that men and munitions would Sc
cure the great military triumph that
would end the war. Mr.. Farrell.
however. was Of the opinion that eco
| nomic pressure would be found the
ultimate weapon and he apparently
included in the economic pressure the
policy recommended by Mr.. Hoover
which is the starvation of Germany
and Austria, while at the same time
We are abundantly feeding ourselves
! and our allies.
Speaking as an expert with unusual
information respecting the German
efficiency. Mr.. Farrell said that but
| for it and the mastery ability OF the
Germans in co-ordinating many fac
tors to a unified and common end,
Germany would have ere this been
beaten. In his opinion the United
States and our allies have much TO
learn respecting coordination and eff
ficiency from Germany and there
were limitations from what he said
that not the least of the lessons is
the one which teaches the true re-
lation between the government, as
well as State legislature, and the in
dustries and business life of the
United States. The intimation was
contained in Mr.. Farrelrs reference
to our trade relations with the Latin
American countries. These are en-
tirely peaceful relations in the sense
that our commerce with the Latin
American countries is almost eXclu-
sively made up of commodities which
enter into the arts and industries OF
peace.
One of the earlier efforts Of Mr.
Farrell when he was attempting to
develop our export trade in steel COM
modities referred to the South Amer
lean market. There he found German
and English competition almost I'M
beatable. Our government was in no
way aiding in the development of our
commerce with South America. There
prevailed at one time an opinion that
if We confined ourselves principally
to commerce between the states and
our trade with Europe, we would be
much better occurred than IL We
undertook to develop large trade with
the nations of South America, or IL
We invested American capital in those
countries.
Now with the tolerance Of the
government and from one point of
view as a military necessity due to
eNigencies of the war we have of
sudden developed a trade with
Latin American countries which
Mr.. Farrell intimates may and
should become much greater after
the war is over. There was also
clear intimation in what he said
that Germany has lost for a long
time and very likely permanently
the remarkable trade she built up
with the South American nations.
England. too. after the war Is ended
will with some difficulty recover
that part of the South American
trade which the war compelled her
to abandon. Mr.. Farrell believes
that we should not delay a moment
in making the most of the present
opportunity and he is convinced that
it will be a matter of public policy
involving increased prosperity to
the nation if the government itself
by wise legislation and in other
ways-just now. for instance, the
supplying of abundant ships for
carrying the commerce-aids in
maintaining our wonderfully in
creased commerce with Latin-Amer-
lean countries and increasing it I'M
til at last it becomes the greatest
international trade in which the
United States is engaged.
Mr.. Farrell evidently had in mind
figures recently published which re-
veal the magnitude of the increase
of our commerce with South Amer
lea. Two years ago We sold to South
American nations commodities of the
money value of almost exactly $780,
600. 600. 1t was a wonderful increase
reported the other day. for the money
value OF our exports to South Amer
lea in the latest fiscal year was in
round numbers SEQ. 900. We almost
tripled our exports to Argentina and
increased by So. 900 900 our exports to-