Arizona republican., 1921-05-22
BY H. N. HICKEY

NEW YORK, May 21.-I have just had most interesting talk with Frank A. Vanderlip at his home at Scarborough on- the Hudson Van derlip ought to know and probably does know as much about American foreign trade. especially its financial aspects, as any man in the country.
 For ten years, 1909 to 1919. he was president of the National City bank of New York, the biggest national bank in America. He organized and is now the chairman of the board of directors of the American Interna- tional corporation and is a director and member of the finance committees of the International Mercantile Ma7 rine company.
 It was to get Vanderlip's views on this important subject of foreign trade that l arranged for the inter view.
 My first question was: ITO what extent does the future prosperity of this country depend on the develop ment of foreign trader"
 Tt may surprise you to have me say that I do not take the extreme position that this country cannot en- joy a fair degree of prosperity with out developing a great overseas ex- port trade" was the answer. "Of course I do not take the other extreme position that we are so self sufficient and self contained as a nation that foreign trade is factor that need not be considered Some where between these two extremes of opinion lies the real truth. We can not attain the high state of prosperity to which our natural wealth, business genius and population entitle us without at least a normal foreign trade development"
 'Is the problem of the develop ment of American foreign trade, to the extent that it is problem, a ! thing that can be solved government ally or is it the problem of American | business in it's private capacity Broadly speaking, it is a problem ' for business in it's private capacity | do not mean that the government | by sympathetic understanding and ef- | fort cannot help. But it can only help. The initiative and energy must be supplied by the American business man.
 Early Handicaps
 Before the war our foreign trade failures were due in large measure to the refusal of financial and indus trial leaders to apply the same intel Iigence, energy and patience to it. 1 development that they did to domes- tic business. In addition to this WI were also handicapped by the higher wage levels in this country as againsi l England, Germany and Japan But even in those lines where, by the economy of mass production. we had overcome the handicap of higher in dividual wages, we did not take ful i advantage of our opportunities. Oul effort for foreign trade was more ol less a hap-hazard, spasmodic effort and as an American I regret to say that me were not any too honest 1T our foreign trade methods. By ano large. I should say that we got all the foreign trade we were entitled to 1T the pre-war period.
 The war created such abnorma conditions that our foreign trade fig ures during that period mean little or nothing as applied to the situation we are now facing and will face in tht future.
 Having become a creditor natior our whole relationship with the res of the world in terms of trade and finance has changed"
 Uonq Credits Needed
 ''Is it possible" I asked, flor us tc absord enough imports to balance our exports, and thus maintain oul position as creditor nation, without causing a shrinkage in industry anc continued unemployment"
 Quite possible, if we recognize the necessity of selling abroad those things which we can produce more cheaply than other nations and buy ing from abroad those things whicl other nations can produce more cheaply than we can-
 '"F'oreign trade is not a one-sidet arrangement. In the final analysis the only way we can be paid for raw materials and manufactured good: we export is to take goods in eX- change.
 AS the basis for building up oul