The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-21

having our people invest their money in
your enterprises Just as Europe formerly
did In ours. We want to put our treas
ure with yours and take pot luck with
your people In realizing success with our
enterprlses-the whole of American in
dustry Is open to the investment of the
world. We extend complete hospitality
to capital from every nation. l submit
that one of the surest roads to COM
pete international cooperation Is full
reciprocity In this particular.
=. Our people will be vitality inter
osted to know with regard to the par
ticular countries whether they propose
IN the future to lower the cost Of pro-
duction through Standardization and
modern methods, what are the prospects
for Improved relations between capital
and labor and what Is to be the prob
able policy in each country toward the
cultivation OF foreign markets, the pur-
chase of raw materials and the estab-
lishment and promotion of new indus
tries?"
One of the features of the days session
was the address delivered by James S.
Alexander president of the National Bank
OF Commerce of New York. on the gem
eral subject of how the machinery of
international commerce may be read
Jisted. Mr.. Alexander suggested In
broad terms ways and means available
for promoting and Fastening the return
OF normal trade conditions He stated
at the outset 1t was not possible to sup
ply a cureall; that no single scheme
which did not relate wholly to the or
derby processes Of trade between Europe
and America could be provided, and
that world trade Is based upon elemental
principles which have not been rendered
inapplicable by the war
Repairing Conditions.
I'VE must remove" he said. the un-
usual conditions which prevent those
principles from functioning If any new
machinery is set up we must have con-
stantly in mind that II is simply a tenn
porsry scaffolding. which will be re-
moved when the main structure of trade
has been repaired and put once more
In working order. Normal commerce be-
tween nations means the interchange of
such commodities and services as are
determined by natural factors to be
reciprocally profitable and beneficial
What is normal to-day Is largely what
can be done profitably to-day, or what
cannot be left undone to-day without
prejudicing what will be required to-
morrow"
Mr. Alexander observed that in the ten
months preceding the armistice our ex-
ports exceeded our imports by, about
SPAS, 900 a month. Since the armi-
stice the figures have risen. In June
exports reached s91s.OoO,o00 exports
$685., 200, 900; an excess OF $625, 900 900.
Our average export balance for the first
eight months of 1919 was around $780,
600 900 a month, he stated. and this ex-
cess was entirely due to our trade with
Europe. vfewedfro1n tSe>other side he
noted striking adverse balances against
European nations. Great Britain alone
having for the first eight months of 1919
an adverse balance of $4,000, 900, 900.
Since credits granted by the United
States Government to the Governments
of Europe have largely ceased exports
are now going to Europe largely on open
account. breaking exchange rates and
dernoralizing foreign exchange markets.
Mr.. Alexander said that exchange
rates will continue to fall, in the ao-
sence of special emergency measures, I'M
til American exports to Europe are so
checked that imports will pay for them.
He enumerated other heavy financial
problems carried by Europe and affect
| ing exchange, such as the problem of
meeting interest payments in the United
States and the problem of paying matur-
| ing capital obligations
The chief abnormal factor" he said,
"is this alarmingly unbalanced inter-
change of goods The balance of trade
L
too adverse to Europe for the best in
terests of both. and the correction of the
exchange situation will find its natu al
and permanent solution only through a
reduction of our exports or an increase
of our imports until a point of approx
mate equilibrium is reached
What are the elements involved in
our attempt to meet this difficult prob
lem? First, Federal Reserve officials
now be supplied through the private in
| itiative of foreign manufacturers mer-
chants and bankers dealing with similar
American groups, and not through the
| concerted efforts of the Governments
concerned. This contains the definite
suggestion that the time has come TO
| turn as rapidly as possible to a course of
private enterprise and initiative. back to
| the normal basis of peace. Practical
measures are well advanced in this coun-
try to facilitate and expedite this transit
| tion. but probably no comprehensive plan
| will be definitely formulated until the
| treaty of peace is signed.
! The Edge export bill, now before Con-
| gress, aims, in essence, to make possible
| the organization, under Federal incor-
poration, OF the instrumentalities for a
larger volume of international CONNER
cial transactions on a credit basis. As
| explained by Senator Edge, the Ameri-
\ can manufacturer or exporter will sell
his goods TO European buyers and will
accept collateral satisfactory to an
| American corporation organized under
| the Edge bill Against this collateral the
| corporation will issue debentures to be
| sold to investors, and by this process the
American manufacturer or exporter will
| be paid The general outlines thus laid
down seem to represent one form OF CO.
ordination of existing business facilities
to handle present International CONNER
| cial needs along lines that will hasten
| the return of business ultimately to a
basis that will require no special ma
| chinery. I take II that is just what bust
| ness men on both sides of the water are
really after to-day"
Credit Needed by Europe.
The kind of credit most desired by
Europe, Mr.. Alexander thought. was a
fundamental credit understanding, a sys-
TEN of credit upon which they can
trade upon and make commitments
upon a permanent. II more impersonal.
desire of men to tarde with one an
other upon the basis of mutual profit
and satisfaction; a far more satisfactory
! arrangement. he said, than uncommer-
cial and shifting element of good will
and friendly sentiment. Then Mr. Alex
! touched a nFOh1arn