Evening star., 1924-03-11
DOLLAR DIPLOMACY.
POLICY DEFENDED
Hammond Says Backward
Nations Are Favored by De-
veIopment of Resources.

AS the result of many years ex-
perience in development Of back
ward countries ] am convinced that
dollar diplomacy not only confers
substantial benefits upon the nation
whose citizens supply the capital,
but also upon the country where the
investments are made" said John
Hays Hammond, former chairman of
the United States Coal Commission.
IN an address on Foreign Trade"
before Washington Study at Rauscher's
yesterday.
Asserting that America cannot de-
pend on European markets for its
exports. he stated that it was nee
essary for this country to develop
new fields for its commerce in South
America, Asia and Russia.
American is the only country that
is competent to undertake the de-
relopment of backward countries and
the investment of the nations capi-
tai abroad is the best means of open
ing foreign trade and is the open
sesame to foreign ports" said MIR.
Hammond.
Lack OF European Markets.
He pointed out the lack Of market
for American products In Europe
and the possibility of the enactment
:arif which would cut of the pres
eut market for 40 per cent Of Amer
teas products.
In speaking of the acquisition of
foreign concessions By American
concerns Mr.. Hammond said: "It Is
lamentable ignorance on the part of
the public and some times high off,
cials that they do not distinguish be-
tween legitimate undertakings by
Americans, grounded on purchase for
cash of land mining rights, ETC., and
extortionate schemes for conces-
Americans who developed foreign
projects were stigmatiZed and urged
that an international high court of
equity" be created to deal with COM
mercial questions.
Defends Lower Prices.
Mr.. Hammond defended the prxc-
tjce of selling American products
abroad at lower prices for the rea-
son that it is a means of getting rid
nf surplus American products and
keeps Industries here going. America
has to compete with European indus
tries and thus keeps trade away from
foreign trade rivals.
Touching upon the present eco
nomic distress in the wheat belt. Mr..
Hammond said 1t was the result of
unbalanced production and said that
the present situation would prove "a
blessing in disguise" if it resulted in
diversified farming.
He said the keystone OF the ma
tion's industrial development was its
home market. which consumed 80
per cent of the country's Industrial
output.
Outlines Thirteen Needs.
For the Development of foreign
commerce Mr.. Hammond recommend
ed thirteen needs:
!. Protective tariff.
2. Creation OF financial institu-
tIons under the Edge law, with sub
Sidiary branches abroad to provide
assistance for American financing en-
tcrprises abroad to help in longtime
foreign credits.
3. Fostering legislation for trade
matters at home and able diplomatic
representation abroad.
4. A privately owned American
merchant marine, revision of gro
tesaue" navigation laws. basing Of
immigration quota on number of per-
sons Of particular nationalitieS who
become naturaiized here.
S. More cooperation and spirit OF
lnterdependence between pan-Amer-
ican nations.
Reduced Ri Rates.
8. Reduced rates by railroads on
merce Commission to allow railroads
to run steamships for foreign trade.
z. Encouragement by government
OF foreign enterprises abroad, these
enterprises free from federal tax, the
government relying on the resultant
Increased export trade for compensa-
tiou.
s. Greater respect Of the sanctity
of contract.
9. FACILITIES for education Of young
men for foreign trade.
10. encouragement of combina-
tions OF corporations and individuals
Tor purchasing raw material from
abroad.
II. Reciprocal rights with other
Countries in development Of natural
IL. Censorship to prevent dumping
in money markets here foreign mu-
nicipal and government bonds with
out investigation
10. American investments abroad
TO be ed to the development of
resources OF a nation.
He urged that the American wage
Garner be taught the necessity of in
creasing individual output for the
benefit of overseas trade