The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1922-08-31
FOREIGN [OAsS
TO AID INDUSTRY
THE FOREIGN TRADES COUNCIL
POINTS OUT DETAILS OF
BENEFITS
USE MONEY BUY AMERICAN PRODUCTS
American Investors Develop Real
Tendency To Buy European
Government Pledges

Government Pledges
BY o. X. Davis. Assistant Secretary National
Foreign Trades Council
Editors Note-O. X. Davis, an ex-
ecutive of the National Foreign
Trade Council, herewith tells ONE
thing Of the great international move
ments now going on wherein America
through her investors is becoming
banker to Europe, or one might say,
to the world. The advantages that
arise from such action are held to ne
many and Mr.. Davis dwells Upon both
the immediate result and the results
to come.
The reports of the United States
census show that this country has
become preponderantly industrial in
it's production, instead Of being agri-
cultural as it was to the first dec
ade in this century. 1t is a matter
of first Importance, therefore, to the
welfare and prosperity of all our peo-
pie, that our vast national indus
trial establishment should nave every
possible opportunity for full time and
full handed occupation. That is the
only condition that will reasonably
assure the steady payment to the
great majority Of u working men
and of remunerative wages
for work done, and a fair return for
capital employment. At the same time,
tina is the condition which will pro-
vide the best returns for agriculture.
= The efforts Of all peoples at all
times, has been the improvement Of
their condition Of life, that is, of
their civilization. Industry and trade
have been their chief agencies in the
execution of this purpose. Naturally,
those peoples which have developed
the greatest measure Of national SOL
idarity in support of their industry
and trade have made the most i'm
portant progress. 1t is worth while,
consequently, for those who may
have opportunity to engage in certain
international transactions that offer
profit to themselves, to consider
whether there may not be also open
to them an opportunity to benefit the
trade and industry of the whole coun
try.
One method of which the industry
of some foreign countries, notably
Great Britain, has been fostered, is
the granting of loans to other coun-
tries by British bankers. Sometimes,
but not always, perhaps not even in
a majority of cases, the British cap
italists, in negotiating with foreign
borrowers, have been able to reach
an agreement that a part, at least,
of the proceeds of the loan, should
be expended directly in Great Brit
ain for the purchase of products of
British industry. In ONE cases this
practice has been of long continuing
advantage, especially where it in
volved the purchase Of railway or
other machinery supplies during a
period of years following the making
of the loan. Sometimes, where the
oar was effected to finance an indus
trial undertaking in the borrowing
country, the leaders have been able
to secure representation in the man.
agement of the concern thus financed,
with subsequent flow Of continued
orders for supplies to the manufac-
turers Of their wi country.
Recent months have seen an extra
ordinary development in the capacity
of the United States to grant foreign
loans. American. investors have
shown themselves more and moro
willing to absorb securities based on
the pledge or guarantee of foreign
governments, and to some extent on
the pledge of foreign industrial en-
terprises. Apparently, therefore, he
situation has been reached where
American investment bankers, in ne
gotating loans to foreign borrowers,
will occasionally have opportunity to
shape their negotiations in such a
way is to provide additional employ
ment for American industry, as has
been done by British, German, Bel
gian and other European bankers
heretofore, and as British bankers es-
pecially are now doing not infre-
quently.
1t was with these facts. and this
situation in view that the Committee
on Banking Of the National Foreign
Trade Council recently addressed a
letter to trade organizations and
chambers of commerce throughout
the United States suggesting that the
attention of individual investors be
called to this matter. This was with
a view or encouraging the issuing
houses handling such, foreign loans,
to arrange, wherever practicable,
that a part, at least of the loan pro-
ceeds should be spent directly for
American products.
This request evoked immediate
opposition on the part Of some of the