Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-31
Foreign Council Speaker Ex-
plains Advantages of Gov
eminent Guarantees.
PREPARATIONS QUESTION
IS AGAIN IN LIMELlGHT
German Financiers Claim Nation
Cannot Long Continue Young
Plan Payments.
BY JOHN F. SINCLAIR.

NEW YORK, May 30-The delegates
to the Foreign Trade Council Conven-
ton are taking up the intricate prob
lens Of money and credit in wolld
trade. These items appear dry and
dusty to many yet they hold dramatic
possibilities for ALL
Suppose, for instance. the United
States Government guaranteed credits
extended by American manufacturers
to Soviet Russia for several hundred
million dollars. This Is what Germany
has done for her industrialists. as
Eugene p. Thomas, vice president OF
the United States Steel Corporation,
pointed out. How much would this
mean in new business and increased
employment? AS a matter Of fact, this
credit insurance policy which several
European nations have adopted is one
of the reasons why Russia is turning
from the United States to Europe in
her business dealings
Great Britain has long pursued
credit insurance program for her ex-
ports. AS one Of the premier interna-
tional trade units, Great Britain misses
few of the tricks for increa sing her
foreign trade. The United States has
held the lead since 1914 through her
technical superiority. But Great Britain
is revamplng her technical processes,
too. and America may have to borrow
some of her methods.
Decline in Exports.
Not many Americans realize that in
proportion to Americas total export
trade. her business with Europe hiss
declined so per cent since 1914. while
that with Asia has increased almost
100 per cent. There may have been
some change in these percentages since
the depression set in. but the general
proportions are correct.
During the recent business confer
ences, discussions of trade and economic
conditions in Asia were always to be
found on the agcnda, The present.
foreign trade council convention is no
exception. Still, one would have ey-
pscted more attention than CrIe- subject
received. Only two spe- kers discussed
the Pacific situation. foNner Gov. Far
rington OF Hawaii and George w. Leh-
man. assistant secretary of the Irving
Trust Co. of New York
Mr.. Lehman confined himself prin-
cipally to the three largest Far East
ern rational units-Clina. Japan and
British India = in snsIyzing the ex-
changes of that area of the globe His
main topics we're the gold STANDARD
in Japan, the silver standard In China
and the chsnge-over from silver to
SoIQ IN 1nola.
Oriental Trade Factors.
There are two prime factors that
should stand out in the future of Far
Eastern trade. The first is the in
dustralization Of Oriental nations.
Americans have already felt the i'm
pact Of this growth in their textile
industry. Hand in hand with it goes
future agricultural exploitation.
1l,s-
A great deal CT the Oriental territory
lies within the tropical belt Solar
engines, hot sea water machines wind
devices, electrical refrigeration, air.
planes. the tremendous fertility of the
soil, teeming populations and expenses
of rich unexpected areas ere likely to
make this tropical belt TIE next gar
den spot and industrial center of mod
ern civilization.
Of modern science. sanitation. regrig-
Grafton. fast transportation and me-
chanical technique the tropics meant
uninhabitable jungleS-tomorrow they
may spell world power and civiliSa-
ton.
South American Trade.
Wallace Thompson. editor Of In
GENERA International, dealt with the
interna tional trade rivalry - advertis-
ing. Although not neglecting other
parts Of the world economic empire,
where competing nations struggle for
lions share of the markets. Mr..
Thompson kept rather close TO the
| South American field. This is, on the
whole. logical, for outside Of Canada
this Southern trade group has been
Americas fastest growing customer
since the World War.
I Great Britain formerly was in con-
| troll there. There was considerable
competition from Germany in Brazil
and Chile, but. never serious enough
| to threaten her supremacy. During
! the war, while British resources were
| being spent on ornaments. the United
, States secured the bulk of the South
i American trade. Now the British are
striving to regain their former hold.
When America first invaded this
| territory on large scale she MADE
many mistakes. Most glaring were
| her advertising and selling methods.
| According to Mr.. Thompson, the easy
/ going citizens of the. Latin Republics
we're irritated beyond measure by the
high pressure tactics of statesmen from
the United States.
Decline in German Bonds.
The German crisis is rapidly APP
preaching. It should come this Sum-
mer. Germany has hoped right along
that some one else would plead her
case. Perhaps she has succeeded in
! securing as her ally the Bank for In
| ternational Settlements.
The plain fact, according to the Ger
man financiers. is that Germany CAN
not continue much longer to pay the
repsrations arranged for under the
Young plan.
! The German financial situation has
been indicated in the last week by the
precipitous decline in the German 5ls
per cent bonds, issued under the Young
plan loan, which have dropped to sc
during the week-a new low.
Those holding such bonds, it is be-
lieved, are making q mistake in letting
them 60 at the cheap figures. The
terms under which they were issued,
and also the German Government Is,
issued under the Dawes plan loan, are
not likely to be defaulted. Germanys
credit outside is too valuable for that.
But investors, fearing trouble In Ger
many, have been throwing them on the
market with disastrous results in recent
1 weeks
Most city-dwellers probably feel that
| American homes have been pretty