The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-05-12
|FORE|CN TRADING
! NATION NOW
European War Brought Uni s
States Swiftly and Unco1 g
sciously to This
Point.
IN FIVE YEARS
Predicted That U. S. Will IA
Urgency as We Have
Before Expert
IN FIVE YEARS

UNITED Press Leased Wire Service.
SAN FRANCISCO, May 12.-It re
manned for the European war to bring
| the United States swiftly and almost
unconsciously to the point of being
really a foreign trading nation. James
A. Farrell, president of the United
States Steel corporation, said today
in the opening address of the national
foreign trade convention here.
In period of five years or less the
United States achieved an industrial
and financial position such as Great
/! Britain needed more than hundred
years of carefully fostered and wisely
directed development to attain, he
said.
Farrell, chairman of the national
foreign trade council, is presiding
over the great gathering of the worlds s
business men and bankers here.
The speaker reviewed the coun-
try's industrial growth since 1860.
'"'The war made US creditor ma
tion," asserted Farrell. "It brought US
| to the stage of being really foreign
! trading nation in two ways-hrst, by
greatly stimulating the expansion OF
our industrial capacity; and second,
by inducing, during the period OF our
participation in the war, such an en-
ergy of production and such frugall-
ty in consumption as resulted in saw
| ings that made possible the loan Of
from ten to twelve billions of dollars
70 Europe, as well as the repayment OF
several billions of capital previously
borrowed from Europe"
Farrell predicted the United States
will face such an urgency for foreign
trade as we have never before exper-
fenced" -..
For. either we shall find markets
abroad for the surplus of our indus
trial productivity, or we shall cease
to produce it, which is quite unthlnk-
able. That way lies stagnation, un-
employment and business reverses.
But the world offers vast opportunities
for American enterprise. Needs that
have been restricted by jealous and
discordant political insistenceN on mar
row spheres of interest, will be gov
ened in the future by broader ana
freer conception of international CO.
operation that has never prevailed be-
fore" -.-.-
There can be no question about the
economic rebirth Of the civilized
world, Farrell continued.
ut is already in progress even in
places where industrial distress seems
most acute and social disoganization
most profound
Fred L. Lipman, vice president Of
the Wells Fargo Nevada National
bank, of San Francisco, In an al
dress on the financial situation as
applied to foreign trade" gave an
analysis of the money market. sul1-
ming it up as follows:
Imitation exists.
It has been caused in the main by
the Influences characteristically dle-
ferent from those Of the normal
credit cycle.
And therefore may not be followed
by, the usual crisis.
Some change, however, must be
anticipated. Viz:
Lower prices and wages, and a
period of depression.
IF these changes come suddenly
they will constitute crisis, that as
thew will bring about forced hqulda-
ton and commercial failures.
But the reserve system should pre-
vent such crisis from degeneratlng
into panic.
It is probable that the situation in
the money market is fundamentally
sound. in spite Of speculation here
and there; and the prominently un-
sound feature, Liberty bonds carried
by the banks, is only so in respect or
imitation, not in respect OF intrinsic
value. and will therefore be relieved
when and as liquidation in the bonds
takes place.
Our legitimate trade, whether
domestic or foreign, need not fear an
inability to obtain necessary bank
accommodations.
4 Frederick j. Roster, former presi-
dent of the San Francisco chamber
of commerce, speaking at the after
noon session on "the future Of Amer-
can exports" emphasized that COM
mercial interchange leads to closer
inter communication and, therefore.
nearer human relationship is cne
greatest of all civiIizing influences.
THE world must be brought in.o
closer relationship for the greater
welfare of all civilization" he said.