New-York tribune., 1919-06-02
Hold Imports Are
Essential TO Our
Trade Development
Meeting of Pan-American
Union to Emphasize I'm.
portance of United States
Avoiding Adverse Balance
By Theodore M. knaDpen

ny lheOdOre M. knappen
WASH1NGTON, June 1.=There is to
be great assembling of North and
South American business men and
diplomatists here under the auspices Of
the Pan-American Union, beginning to-
morrow. for the purpose of stimulating
trade between the Americas.
The United States delegates, a South
American authority pointed out to-
day, will come full of ideas about in
crcasing exports to South America.
but will have little to say about en-
larglng imports into the United States
from that continent. In general, this
authority comments that the American
idea seems to be to sell abroad without
purchasing abroad No nation, he de
clares, will travel far on the vav to
domination of the worlds trade that
/ does not expect it to be literally trade.
A commerce that is hugely one-sided
and IS not based on the exchange Of
goods for goods and of goods for debts
has IN it, he says, the germs Of self
destruction
Trade Balance Question
As an illustration, it was remarked
that the London correspondent of The
Tribune stated in a dispatch printed
yesterday morning that with the Brit
lsh pound sterling worth only ST in
exchange. because Of the huge credit
balance in favor of the United States.
the tendency il! England is to restrict
American imports. The same is true Of
France and Italy, and Canada is at her
wits end to know what to do about
the ever increasing balance Of trade
in favor of the United S .ates.
At the same time that the Ways and
Means Committee of the House is
starting out to revise the tariff along
emphatic protection lines. and is thus
working in one direction, the forces
that arc making for mercantile marine
sea power, the tremendous extension of
American credits all around the world
and numerous organizations to pro
note foreign trade springing up in
every section of the country are work
,ng largely in 4 Numerically opposite
direction. Students of international
finance and commerce are wondering
what is to be the outcome.
At every conference on and discus
sion of the future of the American
merchant marine the point is made
that while there will IS things now
stand, be little difficulty in getting
outgoing cargoes, the trouble viii be
to find return freight.
Averse to Foreign Competition
Our manufacturers ere keen for
foreign markets, bat they don't want
foreign manufactured articles re
celved in exchange.
Our farmers are showing great in
terest IL the new merchant marine
because they believe it means addi-
tional markets for their products.
but they don't want competitive agri-
cultural products to be brought back
IN the national ships.
Our bankers are becoming interested
in world finance, bat they don't see how
interest is to be paid and principal
amortized in the long run il We do not
accept in payment the goods oe the
countries they are financing.
Coincident with al this, Congress is
starting On revision of tne tariff
which has tendency to check i'm
ports in many lines, al.d there seems to
be marked tendency toward a vigor-
Gus revival OF the protective policy
and turning toward the home market
as the chief consideration.
Definite Policy Needed
Some students of the conflicting sit
, uation say that since the nation eau
not travel in both directions at one
the issue viii have TO be fought out
soon, and it is predicted that the Ways
and Means Committee hearings VIII be
one of the early backgrounds. The
economic developments pertaining TO
the war have driven US, it is argued,
far on the way toward becoming the
clearing house Of the world. We have
become the great creditor nation of the
world without making provision for
our debtors to pay us with their goods.
| These debtor nations viii. therefore,
direct their national policies toward
restricting their importatioAs from US,
SO as to avoid increasing their debts.
Consequently we must decide whethe
we are to take the next step in world
trade and open our markets to our
debtors or restrict our credits, forego
the foreign trade opportunity and turn
bdth w u pO4iNy VI COutiitlIAGl ccS4N-
sion as the best one after all.
England Had Same Problem
A parallel is drawn between the
present situation of the United States
and that which confronted England in
the first half Of the eighteenth cen
tuly, when she had to decide between
free trade and protection. In Eng
lands case the general national in
terest seemed to lean toward free trade
and that has since been the British
policy. Britain became the worlds
chief creditor nation, with the inevi-
table result that her imports exceeded
her exports, for it was in this excess
of goods rather than in gold that her
creditors paid her. Analogously, it is
argued the United States must now
decide whether its interests are best
served by continuing as a creditor ma
ton, with the ccrtnin coroilary of e
great increase in imports, or whether
it will deliberately recede from the
path events have temporarily, al least,
forced upon it, and consider foreign
trade as a mere incident.
Nelu York Business
Men to attend PaE-