New-York tribune., 1918-03-10
Fostering Foreign Trade
By Financing Purchases
Americas After-the-War Job Will Be to Rehabil-
itate International Commerce. Pacific Coast
Banker Believes-Urges Bank Extensions

Will De taken, alCnOu8n serious uAi
culties are certain to develop when the
attempt is made to reduce such a pol
icy to tangible terms. In Russia the
sentiment is very strong for policy
which will develop the country's re-
sources and make it industrially lnde-
pendent
The alliances established during the
war nav be expected to influence trade
policies to scme extent after the war,
and commercial treaties may be made
with a view of recognizing and pro-
noting the friendly relations which
exist. The antagonisms of the war, IN
turn, will no doubt affect trade rela-
tions for many years. 1t may be ex-
pected that protective tariffs will be
in favor after the war, and that trade
will be influenced by commercial trea-
ties. Being the most desirable market
place in the world by reason of the
great purchasing power OF Its people,
The United States should be able to OBJ
tain as favorable terms for trade as
are granted to any country.
Manufacturers are beginning to re-
alize that their most aggressive COM
petitors are not their fellow country
men engaged in nternational trade,
but rather the powerful combinations
of merchants in other countries. When
the war is over our competitors Ill Eu-
rope and those of other nations Will
not be tardy in the endeavor to regain
markets lost during their enforced IN
activity. Competition, however, in itsell
knowledge and trained intelligence.
More than the offering of goods Will
be needed to build up and hold the
trade which we are now in position to
control. We should be prepared to
meet aggressive European trade COM
binations and keep pace with the
worlds industrial advancement.
Cooperative combinations are essen
tial, and should in no sense be con.
free trading. A recognition of this
principle in overseas trade development
is most necessary. Such privileges
naturally should only be accorded
Americana owned concerns, and coopera-
tive ownership in the competitive or
CARNATIONS must obviously be pro-
scribcd.
The Webb bill, designed to promote
export trade by legalizing joint foreign
was passed by the House on June 13,
1917, by small majority. The Senate
has still to act on the bill. It's enact
ment would enable American exporters
to comparatively compete with other
foreign countries in international trade.
This measure appears essential.
Chamber of Commerce
AS Trade Builder
The development of closer COM
mercial relations with foreign coun-
tries can be effectively accomplished, il
seems, by more intimate atfiliation and
coalition of the United States Chambel
Of Commerce and its sister organiza-
tions throughout this country with those
of the trading nations of the world
Experience prompts the suggestion
that workable plan toward that enc
be initiated, with the recommendation
that exhibits of products and industries
from foreign countries be established ir
chambers of commerce of the United
States, and like displays made o1
American products in commercial coun
tries abroad. Such q plan could, Of
course, be most effectively carried out
by each section in this country select
ing that part of the world in which i,
feels that the products of one and the
ether are the most likely for inter
change.
There has been much discussion re
gardlng the financial assistance avail
able for American traders in their re
latons with foreign countries, and te
those who take a far-sighted view Of
the situation it appears that we as ma
tlon are Still inclined to pride our
selves upon our isolation and ability
Tor self-sufficiency in thought.
NO measure has been of greater i'm
portance, as affecting not merely the
local financial conditions in the United
States, but the entire situation from
an international standpoint, than the
FEDERAL Reserve act. It's facilities TO,
branch banking in foreign countrie:
especially accord a great improvement
or system IN our local and interna
tlonal relations, likely to give thu
united States greater power in foreign
trade; II the United States succeeds il
establishing system of bankinf
thoroughly suited to modern condition:
great forward step will have beer
taken. Our banking element should
deal with these problems as seriousl,
as is deserving.
Our foreign relations cannot success
fully be developed so long as it is
necessary to operate through banking
lnstloutlons OF competing countries, an(
though the Federal Reserve act pro
vdes for the establishment of branche:
by member banks in foreign countric:
ana permits cooperative participatio,
IN the organization of banking inter
csts beyond our borders, strange to sa,
only few institutions are taking advan
tage thereof. Jointly owned bank
would appear to best serve the REQUIRE
ments of the country as whole. i,
that cooperation thrives we'll wher
action through association is legal,
possible and practically safe. 1t is O
greatest Importance to recognize tina
British overseas banks alone have cap
ltal exceeding 500 million dollars. a
against about five or six million dollar,
SO invested by North Americcn inter
ests. Our bankers must be determine
TO modernlze their methods in this di
fectlon, particularly as the lack of far
sighted interest to further the svsten
OF American banking in foreign coun
tries may seriously check the work O
trade expansion.
The new bank act is essentially in
tended-as commercial banking sys
tem-to assist in the financing of ou
domestic and foreign trade and pro
vide market for commercial accept
ances based upon the importation an,
expectation of goods. Such instru
ments, executed to cover specific pur
chascs of commodities which are &
be converted into cash during the If
of the document, will tend to Great
basic condition for automatic re
cording of commercial operations-a'
= inherent factor to prevent overexten
: SION of credit. III the case of tim
bills of exchange drawn on AND ac
, cnnfo6 h. Gc