The sun., 1918-11-27
MITCHELL POINTS
WAY TO GET TRADE
National City Co. Head Urges
Americans to Invest in
Foreign Securities.
SEES GREAT THRIFT HERE
Labor Biggest Of All Problems
Of Readjustment Period,
He Says.
SEES GREAT THRIFT HERE

CLEVELAND, Nov. 2e.-In an address
delivered before the Chamber OF Com
uerce here to-day Charles Z. Mitchell,
president Of the National City Company.
swelt upon Americas future financial re-
ta,ions with other nations. In the course
Of his remarks Mr.. Mitchell said:
There IS growing. necessity for
America investing in ever and ev2
larger amounts in foreign countriea
That movement must start at once II
American industry IL going to receive
the advantage Of foreign trade-a trade
that, at the outset at least, must take
place BY reason OF the fact that foreign
countries generally will be forced to look
To America TO furnish raw materials for
their home Industrial development
The problem as to how these credits
are to be established Is OF great i'm
portance. as upon the solution thereof
will likely depend the course of America
and Americans in world thinking. What
ever Is purchased from American pro-
ducers must be paid for by credits estab-
lshed in American banks. II cannot be
arranged through the shipment of for
eign gold to US, for we already have too
great a pTOpOEJlOu OF kOlu supply
OF the world in our hands, 1t cannot
I've arranged through trade balances. for
foreign countries must have raw mate
RAILS and other supplies. too, promptly,
and we hope that the trade balance will
not move against us. II must be done,
then, through foreign loans made in this
country.
There are three ways in which these
loans can be made: First. a corporation
or municipality could borrow from its
own Government, which would be quite
possible in the paternalistio era OF to-
day. The foreign government could. in
turn, borrow from the United States
Government, and the latter could issue
securities to its own people : but that
method, to my mind. II extensively used,
would be deplorable. 1t would foster in
America an ingrowing development. We
would not be thinking internationally at
all II the United States Government
were to adopt that method of financing
foreign needs. Or. second, foreign gov
ernments could sell their obligations to
American bankers, who could distribute
these foreign government securities
throughout the United States. That
such securities Of governments of sound
credit could be distributed among Ameri-
can investors with little difficulty /
know. America has broadened mate
rally in that degree in the last fsw
years,
Hope in Investments.
There is, however, one other way,
the thrd-and the best way of abby
which It can be done and II we OF the
United States are big enough and broad
enough and wise enough, I am firmly of
the belief that We are going to do 1t In
that way We are going TO take the
securities of foreign corporations and
municipalities and states all the world
over and distribute them directly to in
vestors throughout the United States
II the time comes when such bonds be-
gin to flow here in quantity, we can ex-
pect that the stocks of these foreign
corporations will follow and be listed on
me New York Stock Exchange. When
that day comes the great body OF Ameri-
can investors will have cast OF the
charge that foreigners have often made.
that financially America is a provincial
country
"One of the real gains of this war
has been the development OF thrift
among Americans and the very marked
Increase In the number Of investors re-
sulting largely from Liberty Loan and
Saving Stamp campaigns.
DeHatiOn OF Labor.
The last great problem which l Will
mention is labor. II Is perhaps the
greatest of all the problems OF the re-
adjustment period. Except as we can
ind its solution, we have much TO fear
FOR the future. Just as there must be
liberalization of the army. demobllza-
hon Of industry and defiation of cur
rency, there must be rehabilitation and
defation OF labor, for II, too. has been
mobil.zed and inflated during the war.
u is neither sane, nor Is 1t possibly eco
aonic, that wages such as have been
paid in shipyards, running as high as
$500 a week, should be paid under peace
conditions. when American industry Is
competing with the world. It is not only
likely, It Is certain, that many men. not
only laborers but manufacturers, will be
obliged 10 work for smaller incomes in
;he future than they have during the
war
This is distinctly a time for coopera-
don Manufacturers throughout this
country certainly must try to SO organize
Industry that labor will produce enough
SO that II may earn more nearly what IL
is getting now than what It received in
pre-Har times. American farmers and
manufacturers as well must endeavor. by
use Especially adapted machinery. TO
prGiuCa in larR ouanttty labor itself