The Washington herald., 1921-03-17
Foreign Commerce.

ne ONlIED SIAIES during all the course
OF its history until 1914. was essentially pro-
- yineial. Its outlook commercially and econom-
icaily did not reach, to any large extent, beyond
its own boundaries 1t was cultivated as a mar
ket by foreign traders against whom it built bar
Siers, while it exported little but surplus foods
II money was needed to develop natural re-
eourees, to extend railroads or for like purposes the
promoters went to Great Britain, Belgium, Holland,
Germany, to get it. The products of the land were
depended upon to pay interest. dividends and
rarrying charges. The balance of trade went back
IN these forms, equalizing tariffs.
Six years have changed this situation. They have
advanced the United States in a jump what would
have been the natural progress of century But
the loss is in gradual approachewth its process of
Spreparation for the change, which has caught the
United States wholly unprepared.
In the old countries, finance and transportation
center around and support foreign trade. In Ger
many there lower rail ratd to the seaboard
than for internal distribution. Every manufacturer
r knew exactly the rate, land and water combined,
TO any foreign port. The railroads and merchant
marine had joint rates
The same was and is true of Great Britain,
while wherever necessary her ocean liners have
financial support. At the other end of the, trans
action, both countries had great wholesale houses
to receive, store and distribute Shipments and
banks to facilitate credits and exchange. There
was break in the chain from the home producer
TO the foreign retailer
In Germany also, and to only lesser extent
IN Great Britain, were what we call trusts or COM
binations of industries to get trade and fill ORDERS
z which orders distributed to promote the de-
velopment of German industries. This is some
thing the Webb act is aimed to supply in mar
row way for the United States, but which does not
permit the freedom of transfer and trade fully sup
piled in the old countries.
-@s II is this picture Congress should have in
mind in dealing with all features of foreign COM
nerce. Instead Of the greatest debtor nation this
is NOW the greatest creditor nation Industry must
be fostered and protected much by legitimate
aids in reaching foreign markets. in preventing
too great an inflow.
Inflow there must be to pay the carrying
charges of the huge debt due this government and
its people. Outflow there must be to take care of
the surplus of production and manufacture. But
if the outflow is adequately promoted this will of
ITSELF in large measure, balance the economic effect
of the inflow. TO promote this export it is essen
tizi that facilities be provided similar to those of
the old industrial countries
In this way distribution costs can be lowered
to balance higher production costs. AS it is, our
land transportation systems distinct from the
ocean carrying systems. Our merchant marine has
no working connection with the railroads. Export
prices are f. o. b. Our ports, instead of f. o. b.
foreign ports.
In foreign countries there some Amer-
can banks, but American wholesale houses or
so few to be none in the great trade equation.
The chief lines of trade in our major industries,
save steel and oil. stop at our ports They must
reach the foreign retail system. To hold foreign
markets must meet them in their own lands.