this law should be welcomed as a boon to the consumers of the countries to which we export, and should not be feared by foreign competitors. "Since we have taken this step is it not proper that we should invite the other nations of the world to likewise supervise their exporters in their methods of competition? Until the other nations do so, the final great step in the reorganization of the world's business is likely to be delayed, i. e., the formation of an International Trade Commission by the nations of the world. *** In inviting our friends to take this step, we hold out to them as our purpose and intent that which is so beautifully phrased in the speech of President Wilson, in his message to Congress on May 20, 1919, where he says: "I believe that our business men, our merchants and our capitalists will have the vision to see that prosperity in one part of the world ministers to prosperity everywhere; that there is in a very true sense a solidarity of interest throughout the world of enterprise, and that our dealings with the countries that have need of our products and our money will teach them to deem us more than ever friends whose necessities we seek in the right way to serve.'" CHAPTER XVIII. Financing Foreign Trade by Means of the Edge Act.1 Changed Conditions Entail Problems in World Finance. An entirely new aspect has been given to the whole export situation, as far as the United States is concerned, by the present abnormal financial conditions throughout the world, and more particularly by the difficult credit situation obtaining in international trade. Solution Must Proceed Along Economic Lines. The war has left a large part of Europe in dire need of raw materials and manufactured products of all kinds. The warstricken nations look to the United States as the country best able to aid them in their plight. Since the entrance of this country into the war, in 1917, our government has advanced approximately ten billion dollars to foreign nations. Together with commercial credits extended by American business men, the rest of the world owes us a total of about fourteen billion dollars. A warning that there is a limit to the financial aid which the United States may be expected to extend to Europe was given by former Secretary Glass of the Treasury, reiterated by Secretary Houston. On several occasions Mr. Glass intimated that further aid must come through private and not through government channels. From the last annual report of the Secretary of the Treasury it would appear that credit from the United States government to foreign nations will be obtained henceforth only in cases of relief to avert starvation or other dire distress. The situation practically amounts to this, that while European governments and individuals desire to buy and American business men are ready to sell, the former have neither gold nor 1See Exhibit VIII, p. 443, for text. |