Show n iS 8 STRIDES ES OF U. U U S S. S IN fOREIGN TRADE DECEPTIVE Commerce Follows Invest- Invest Jj H ment ent in Other Othe Lands Land J Says Economist 1 England in 1860 found herself herselt ex- ex porting ortIn more in value than she was 1 It It therefore became ns rs s ly Iy for her to invest her credit balance balance bal- bal ance abroad In order that she might continue to take advantage of or her export export export ex- ex port trade This was deemed most necessary for the development of the country and for the position which It was was considered England should take in ir the worlds world's commerce At first these investments went vent toward the adjustment adjust- adjust ment of the trade balance anu counteracted coun- coun the excess of exports over ImPorts Imports Im- Im ports of commodities says Gardner 13 Perry in l the Journal of the American faUt Bankers Bankers' e Association o A Later the interest anti and dividend on these huge investments n- n creased to such an extent that Eng Eng- lind s credit balance grew to zt t greater greater greater great- great er er total annual annually This Thill had many ef effects ef- ef the principal one of which eco eco- was to make England the gold sold and banking center of the vo woid England has continued to invest these surplus credits abroad thus controlling through ownership an ever increasing number of foreign companies These were e the f factors O t gave England n and l later r France e and fJ Jer- Jer many a certain commanding hold on foreign markets forcing then theli goods goodson goodsn on n the outside world through the med med- turn lum ot of f loans and investments Another Another Another An An- other factor of vital Importance tj to France and Germany was was was' he he purchase of goods from teem by those th various arious companies in foreign i in which they respectively baa haa a 3 substantial substantial sub sub- ownership This was a natUral natural nat nat- ural oral monopoly which could not be broken en and meant that a owned company would buy its materials materials ma- ma from the country of ownership t. t Durin During this era a country s a merI mer- mer I hant marine and its foreign banking facilities faculties maintained a strong position til g hi creating g r rt sustaining Si I handling 3 li at and transporting a its foreign t trade and together to- to I gether Bether with investments had a a. mark d 1 influence n in i its development p I After our merchant marine i ne which did so much toward the development Of if 01 the United States in the first halff half of f the nineteenth century faded from the Hue water and took its place lr ir museums inn mu- and homes b by ornamental display die dis s- s play lay of models and pictures we naturally naturally ally lly had to depend upon toe tonnage of England France Germany ermany and nd nd other countries to take awa away our exports and bring to us our imports Ith all the accompanying inconveniences and such as discriminating rates uncertainty of tonnage connate annual drain from country of freight costs and marine insurance premiums and last but not least the giving up of trade secrets 1 I Had it not been because of dire thre ne necessity nl ne- It due t to the r results l o of the world war we ed no eo doubt o t would i t have a floundered bun floun dered along in the same nanny 1 but ut ignorant frame of mind In ln n which we have liae been becalmed for the past fifty years years y Circumstances changed overnight And and erd we find that we now have hac M. M merchant mer mer- chant hant marine foreign banking ties a credit position that no economist econ or 01 financier ever ea S 'S possible I We e must not fool ourselves with these strides they are not natural i t nd I 1 growths gro but mushroom hapP hap hap- P brought rought about by bv exigency and I n We Ve have profited bv IJ Com wf rit the Flag and Comm Comm Com Corn m l Necessity be we have f filled ll d to take ge and buHl for Cor Corn n through that which counts t e most Commerce Follows Invest- Invest P m We Ve should have poured and j W we should hould be pouring our profits amIo and amI o our r surplus into foreign investments in order that w we might have secured antT might be securing a permanently assured market for our surplus ex- ex |