The sun., 1918-12-16
SEES PERIL IN WEBB
LAW COMBINATIONS
s. Metz of Guaranty Trust Co.
Warns Exporters Must
Move Carefully.
EXPLOITATION SHED AT
Says L. S. Has Good Opportun-
tiles to Foster Trade i'm
South America.
EXPLOITATION SHE'D AT


Trust Company, said yesterday that
American bankers and business men
have laid solidly the foundations for
permanent and expanding commercial
relations with the countries to the
southwark. and particularly with Latin
American countries. But he foresees
a danger In the stepf taken TO form
export combinations under. the Webb
law.
AT all hazards" he said, every
precaution should be taken to prevent
such combinations from creating the
impression in appearance, policy or
methods of having been formed to-
exploit the foreign consumer. If this
line be not adopted 1t Is possible that
more harm may be done by combina-
lions than any advantages which may
be derived"
Z. 8. Possesses Advantages.
Questions relating to South America
were discussed by Mr.. Metz as follows:
THE question which now mainly
occupies the minds of those interested
In South Anne rican markets Is whether
the United States, both from COM
mercial and banking standpoint, Is
equipped and prepared to hold what Il
has gained and to expand further in
that direction. The answer to that
question is dependent upon too COM
pick combination of factors to per-
NIT OF mere confirmation or mega
ton.
In forming an opinion the principal
consideration is whether--especially In
the Latin American countries--we
! have solidly laid the foundations for
permanent and expanding commercial
relations.
There can be little doubt but that
in many respects the United States is
in peculiarly advantageous situation
by force Of it's natural resources. me-
chanical perfection and geographical
situation. There can also be little
! doubt that the last few years have
been utilized very efficiently by ex-
porting interests in the United States
! for the building up Of an organization
to handle foreign business. In fact,
what has been achieved In this re-
! spect Is little short of amazing and
reflects the greatest credit on Amer
| lean enterprise and energy, but we
cannot boast OF having attained the
level reached by our leading trade
rivals. in which the item OF good will
Is not to be overlooked,
| South Americans Suspicious.
"A very interesting feature OF re-
cent developments has been the ten
dcncy toward the formation of export
combinations under the Webb law
For vast country like the United
States, with Its varying conditions OF
production and distribution in different
parts OF its territory, with a big home
market and a comparatively moderate
foreign business. combination woulC
appear 10 be desirable and in many
cases essential II individual manu-
facturers wish 10 secure an outlet, or
remunerative basis. for the fiuctuat
ing surplus OF their production FOL
home requirements.
Judging from the attitude takcI
by South American interests toward
the legislation comforting authorit!
upon American business men TO com
bine for this purpose. IT is evident tina
every preCaution should be taken (,
prevent such combinations from Great
ing the impression in appearance
policy or methods OF having beef
formed to exploit the foreign con
sumer. II this line be not adopted 1
is possible that more harm may b.
done by combination than any ad
vantages that may be derived.
Turning from commercial points @
view TO financial aspects, there ar
many established, competen
houses that have for years extende,
and are continuing to extend to finan
cially sound houses in South Americi
their reasonable credit requirements
1t is equally certain that the bankint
facilities offered In this country ar
amply sufficient to take care OF tn
needs OF manufacturers and exporter
desiring TO transfer the burden O
these credits to banking institutions
In fact, IL would not be too bold a.
assertion TO make that the flnancil
equipment at the disposal OF our for
> eign trade has gone ahead of CONNER
cial development.
3 Several Banks Have Branches.
Not only does each of the Ieadin
: banks entertain relations with bankin
institutions throughout South Amer
lea, through which il is enabled I
. transact any kind of mercantile bank
ing transactions which II may he Gale
!, upon TO perform, but several of tn
!. principal banks have established thei
! own branches or affiliations throughou
l South America, so that there is no,
no country in the southern continen
Of our hemisphere where there Is nc
: an American banking institution.
Pending the many reimbursement
! now proceeding In Europe II Is yer
hard to make a reliable forecast re
, garding the future. We have no dat
TO Judge how the costs of labor 1
D Europe will compare with our owl
n However. as regards South Amcric
I we shall not be in any worse positio
\ than our European competitors rC
I garding shipping. Though labor
o likely 10 be more expensive here tina
j abroad, there may be compensatin
= factors In the abundance OF raw mate
q rails and the perfection of organization
which in many directions will enab
4 American manufacturers to hold the
own I'm South American markets.
This will depend upon the amour
: OF study devoted to the problems ,
: international commerce. 10 the cal
bestowed upon transactions eT
trusted to our hands, and, not leas
perhaps, upon the spirit In which "
u meet the business and credit demand
: OF our South American noighbor