Evening star., 1919-03-16


pockets Of his striped
Creditor trousers. Uncle Sam fing-
~ ers over the 81 o US
N@saoA. for millions of dollars
which he has but recently received
from other world powers and, like a
good sport gifted with a shrewd busi-
ness sense. waves his hand overseas
and says, ':ru take 1t out in trade
come. show me what you've got to
SELL"
Changed from a debtor to a creditor
nation during the nightmare of war,
the United States realizes that if 1t
ever wants to have the !, account
squared it must take foreign goods in
payment: if it wants to indulge the
Yankee propensity for trading it must
realize that there are two halves in
foreign trading give and take-sell-
ing something abroad. which Is ex-
porting. and buying return cargoes,
which is importing.
The federal financial authorities, aid
ed and abetted by the financial leaders
or the country. are easing the way for
development of both branches of for
efgn trade-exporting and importing.
restrictions on foreign exchange
transactions have been lifted by the
Federal Reserve Board, and still others
imposed by reason of war conditions
are to be raised as soon as compatible
with the best interests of the nation.
The united advice Of the State Depart
ment. the Federal Reserve Board and
the War Trade Board and the cable
and postal censors has raised restric-
tions anecting foreign exchange, for
elgn trade, and commercial and finan-
cial cables and communications. Great
Britain. Canada and France are acting
cofncfdentally with the United States
in these matters.
Foreign exchange dealers need no
longer present for approval to the
federal board applica-
Restrictions tions for travellers let
p., ters Of credit in excess
eo'eo. of $1,000. instructions
to open commercial letters Of credit. or
to make transfer Of funds for the pur-
pose of purchasing commodities to be
warehoused. or applications to open
commercial credits for the purpose Of
exporting goods from one foreign
country to another foreign country.
Tho financing Of foreign trade and
the opportunity for public service
and private profit that lies before the
American investor was summarized
by Frank A. vanderlip, president of
the National City Bank, New York,
during a unique event-a floating
foreign trade convention-which last
many of them Of national and in"
ternational prominence. on business
bent, went overseas on the White
Star liner Lap1and and held their
convention during the voyage. This
was the first of a series Of ship
Europe to size up the readjustment
period business and prepare for the
near future.
Mr.. Vanderlip was chairman Of
this impromptu convention, and
other notables par
Convention On ticipating were o.
up. car Straus, former
merce and Labor; Hon. q. 8. Beebee,
minister Of labor from New South
Wales, Australia: chauncey Depew
Snow. trade commissioner for the
United States Department Of Com
merce: DR.. Royal Meeker, represent
ing the United States Department of
T>A H~to r-A
commission, made up of we'll known
employers appointed to study and
report on labor conditions in Euro
pean countries; an entirely unofh-
cial commission Of American shoe
and leather manufacturers bound for
Europe to get a line on business con-
many other manufacturers financiers,
bankers. importers and exporters.
There were manufacturers and ex-
porters Of cotton and woolen textiles,
lumber. canned goods. copper. iron
and steel ri rsilTsy ss.,s squpment Sne De
shoes. shoe findings. y, ming ma
terials, agricultural and other ma
chinery, and publishers, life in
surance men, motion picture pro-
ducers and-a1ways the ubiquitous
and business-stimulating advertising
specialist.
Il
Mr.. vanderlip-whose financial ad-
vice and business foresight are valued
as high as any obtain
Vanderlip's able - EMPHASIZED one
-. point that IL being
AoVlce' brought homo moro and
more each day-the need for Amer
ican investors to acquire raw ma
terial reserves abroad and to de-
velop foreign enterprises. and grad
ually to dominate the foreign mar
ket.
Mr.. vanderlip drew a distinction
between the banking service involved
in financing export shipments and
the broader question Of the necessity
of American investment in foreign
undertakings in order to provide the
basic credit for trade with indus
trial regions that lack goods and
gold to pay for the exports that we
may ship to them. He pointed out
that it is not a banking function to
attempt to finance trade in this
sense-it is here that American in
vestors must come in, and an Ameri-
can market must be established for
the high-grade securities of foreign
enterprises. He referred to the pro-
posed formation of American invest
ment companies. which should spe-
cialize in the purchase Of such for
eign securities and then issue their
own securities against such foreign
holdings for sale to American in
vestors.
Reference by Mr.. vanderlip to the
proposed extension Of the commercial
information service Of the American
banks provoked a discussion. The
United States government service in
the matter of trada informat ton found