New-York tribune., 1919-01-16
Plan Made for
4. S. to Conduct
Foreign Trade
Huge Government Syndicate
Considered at Conference
of Rediield and Council
Would Sail Own Ships
Means More Than Federal
Ownership of Merchant
Marine, Says Prentiss

The possibility that the business
men of the United States will not only
De glad to leave the new merchant ma
rlne for the present IN the hands of
the government, but may also delegate
10 1t the general conduct of foreign
trade Tor years to come. developed at
a conference yesterday between Will
lam c. Redfeld, Secretary of Commerce.
and the Council on Foreign Relations.
BY this solution of the problem the
Federal government-or branch of it
virtually would be converted into a
huge foreign trading syndicate, sailing
ITS own ships, maintaining it's own pur-
chasing and selling agencies and gen
orally transacting all business with
other countries
Why some such arrangement may be
adopted was explained by Mark O.
Prentiss, manager of the Council on
Foreign Relations, following the con-
ference. The meeting was private and
the details We're not made public, but
Mr.. Prentiss showed plainly he con-
sldered the government syndicate feat
ure of IL the most important thing
which had come up. While he did not
say that Secretary Redfeld agreed in
every detail with the views of the
council, he added that "the Department
of Commerce seemed anxious to CO.
operate in every way possible"
More Than United States Ownership
"Thc unprecedented plan now being
advocated" said Mr.. Prentiss, "is the
outcome of an unprecedented situation.
1t is a situation which American bust
ness men in general are just beginning
to understand. AS they understand it,,
the feeling is becoming more and more
prevalent that if America is to take
the place in foreign commerce which
now seems to be her destiny it will
have to be through the aid and super
vision of the government.
Mr. Prentiss was asked whether this
meant government ownership of the
merchant marine.
at means more than that" he re-
piled "Virtually, 1t means the con-
duct of foreign trade by the govern
ment. The situation is this: Before
the war foreign trade was only mat
ter of the seller supplying the buyer
with what he wanted. Now another
element has stepped in. In the aver
age country, depleted of all its ordi-
nary commodities by war, it is not a
wants. 1t is one of what the country
as a whole needs-what it must have.
"The natural consequence is that 1t
will not be the individual buyers of the
war-affected countries who will do the
purchasing in the next ten years. 1t
will be the governments. They VIII
dictate what is going to be bought and
where it will be bought. Luxuries will
go by the board until the necessities
of life are again plentiful. And. from
all present indications, the buying OF
necessities will be done by govern
ments-not individuals.
Facts like these alter the entire
aspect of the foreign trade situation.
foreign finances in the condition they
are credits will be great factor in
determining the drift of trade. AT
present, the large amount owed the
United States by other warning coun
tries has resulted in a heavy discount
rate Rather than pay that rate pur-
chasers in our debtor countries will
buy clsewhere-with the result that
what we make in interest we shall lose
in trade.
"All these problems are too big to
be handled by individual and conflict
ing interests. They call for national
aid.
Ten Years as Duration
"Such a condition would by no means
be permanent. 1t might be expected to
last, say, ten years. But in that period
the fate of the foreign trade Of the
United States will be settled one way
or another.
"Sentiment for government aid and
is growing on every hand.
What If will result in no one can vet