INTERNATIONAL 
 
 i| 
 
 TRADE CONFERENCE 
 
 1919 
 

INDEX. 
 
 Page 
 
 Foreword by MR. ALFRED C. BEDFORD 9 
 
 Chairman of the Executive Committee. 
 
 Purpose of the Conference 11 
 
 Personnel of Executive Committee 12 
 
 Arrival of Missions at New York 13 
 
 Preliminary Meetings in New York 13 
 
 Personnel of Foreign Missions 
 
 Belgium 14 
 
 France 14 
 
 Great Britain 15 
 
 Italy 16 
 
 Addresses at Banquet at Hotel Traymore, Saturday Evening, 
 October 18 
 
 MR. HOMER L. FERGUSON 16 
 
 President of the Chamber of Commerce of the United States 
 
 MR. ALFRED C. BEDFORD 19 
 
 Chairman of the Executive Committee 
 
 M. FLORIMOND HANKAR 24 
 
 Chairman of the Belgian Mission 
 
 M . EUGENE SCHNEIDER 26 
 
 Chairman of the French Mission 
 
 MR. MARSHALL STEVENS, M. P 29 
 
 Member of the British Mission 
 
 M. FERDINANDO QUARTIERI 31 
 
 Chairman of the Italian Mission 
 
 MR. EDWARD A. FILENE 33 
 
 SIR ARTHUR SHIRLEY BENN 37 
 
 Chairman of the British Mission 
 
 General Meeting of All Committees in Belvedere Room, Hotel 
 Traymore, Monday, October 20, at 10.00 A. M 38 
 
 First General Session of Conference at Young's Pier, Wednes- 
 day, October 22, at 8.15 P. M. 
 
 478238 
 
Opening remarks by MR. ALFRED C. BEDFORD 55 
 
 Remarks by MR. HOMER L. FERGUSON 64 
 
 Address by HON. BRECKINRIDGE LONG 67 
 
 Address by M. FLORIMOND HANKAR 72 
 
 Address by M. EUGENE SCHNEIDER 77 
 
 Address by SIR ARTHUR SHIRLEY BENN 81 
 
 Address by M. FERDINANDO QUARTIERI 83 
 
 Second Session, Thursday, October 23, at 10.00 A. M 89 
 
 Remarks by Mr. JOHN H. FAHEY 89 
 
 Address by HON. WILLIAM C. REDFIELD 92 
 
 Address by M. EUGENE SCHNEIDER 103 
 
 Third Session, Thursday, October 23, at 2.00 P. M 122 
 
 Address by M. CANON-LEGRAND 123 
 
 Address by SIR ARTHUR SHIRLEY BENN 133 
 
 Address by PROFESSOR BERNARDO ATTOLICO 142 
 
 Fourth Session, Thursday, October 23, at 8.15 P. M 159 
 
 Remarks by Mr. HOMER L. FERGUSON 159 
 
 Address by M. EUGENE SCHNEIDER 160 
 
 Address by MR. DWIGHT W. MORROW 181 
 
 Fifth Session, Friday, October 24, at 10.00 A. M 197 
 
 Remarks by MR. R. GOODWYN RHETT 197 
 
 Address by MR. NORMAN H. DAVIS 201 
 
 Address by M. ALBERT E. JANSSEN 209 
 
 Address by M. LE BARON DU MARAIS 221 
 
 Sixth Session, Friday, October 24, at 2.15 P. M 234 
 
 Address by SIR JAMES HOPE SIMPSON 234 
 
 Address by COMMANDER DOMENICO GIDONI 249 
 
 Address by MR. F. O. WATTS 259 
 
 Seventh Session, Friday, October 24, at 8.15 P. M 273 
 
 Address by MR. ALFRED C. BEDFORD 273 
 
 Address by HON. WILLIAM P. G. HARDING 274 
 
 Address by HON. MYRON T. HERRICK 284 
 
 Personnel of Program Committee.... 290 
 
 Committees on Credit and Finance 
 
 Personnel of 1.. 292 
 
 Reports of 300 
 
 Committees on Chemicals 
 
 Personnel of 306 
 
 Reports of 311-318 
 
Committees on Coal 
 
 Personnel of 319 
 
 Reports of - 320-332 
 
 Committees on Foodstuffs 
 
 Personnel of 
 
 Reports of 335-348 
 
 Committees on Metals 
 
 Personnel of 348 
 
 Reports of 350-359 
 
 Committees on Petroleum 
 
 Personnel of 360 
 
 Reports of 361-378 
 
 Committees on Reconstruction Supplies 
 
 Personnel of 378 
 
 Reports of 380-420 
 
 Committees on Shipping 
 
 Personnel of 420 
 
 Reports of 422-438 
 
 Committees on Textiles 
 
 Personnel of '. 438 
 
 Reports of 440-458 
 
 Committees on Permanent Organization 
 
 Personnel of 459 
 
 Reports of 460-477 
 
 Resolutions 500 
 
 Closing Remarks by the Chairman, MR. ALFRED C. BEDFORD 506 
 
 The Tour 515 
 
 Personnel of General Committee 517 
 
 Officers and Directors of the Chamber of Commerce of the 
 United States 524 
 
 Administrative Organization of the Chamber of Commerce 
 of the United States ... ... 526 
 
FOREWORD. 
 
 TO advance in detail a dogmatic prediction as to the 
 practical results of the International Trade Confer- 
 ence so shortly after its adjournment, and until the 
 great mass of information and proposals have been sifted 
 and clarified, is a responsibility I shall not undertake. 
 
 Nevertheless, I have 
 and always have had 
 well defined views up- 
 on the lasting value of 
 this Conference of rep- 
 resentatives of the five 
 nations whose joint 
 participation in the 
 war so strikingly il- 
 lustrated the effective- 
 ness of unity of pur- 
 pose and action. As 
 our generals and our 
 armies met upon the 
 fields of France, Flan- 
 ders and Italy, to pre- 
 vent world destruc- 
 tion, so was this meet- 
 ing of the industrial, 
 financial and economic 
 leaders of the Allied 
 countries and the United States for a single purpose the 
 restoration of the world's commerce to a normal basis. 
 Out of multiclicity of council comes wisdom, and no one 
 who attended and participated in these councils could be 
 but struck with the intense earnestness,, the intelligence, 
 the disposition for friendly fair play and the will to suc- 
 ceed which animated our distinguished guests from over- 
 
 ALFRED C. BEDFORD 
 
10 THE INTERNATIONAL TRADE CONFERENCE 
 
 seas and the American business men who joined with 
 them. 
 
 One thing may be certain. The Conference, in concep- 
 tion, in execution and in probable results, was the most 
 important international trade meeting in history. It 
 serves as a corollary to the Peace Conference and was a 
 natural and inevitable outcome of the situation in which 
 the world was left by the devastating war which rocked 
 human institutions to their foundations. 
 
 In this brief foreword I feel called upon to pay special 
 tribute to the patriotism, self-sacrifice and intelligence 
 of our foreign guests and our own countrymen and to 
 the committeemen, officers and executives of the Chamber 
 of Commerce of the United States who formed effective 
 and coordinating parts of this newly erected piece of 
 international trade machinery, the permanent completion 
 and effective operation of which is the earnest desire and 
 fixed determination of each of us who participate in its 
 construction. 
 
 ALFRED C. BEDFORD, 
 
 Chairman, Executive Committee, International Trade 
 Conference; Vice President, Chamber of Com- 
 merce of the United States; Chairman, Board of 
 Directors, Standard Oil Co. 
 
 NEW YORK, October 31, 1919. 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 11 
 
 Purposes of the Conference. 
 
 The International Trade Conference was called for the 
 definite purpose of ascertaining: (1) the material and 
 economic needs of the four principal allied nations 
 Belgium, France, Great Britain, Italy both immediate 
 and continuing, and (2) to what extent the United States 
 could and should supply those needs, and how. 
 
 The idea of the Conference was germinated when rep- 
 resentatives of the United States Chamber of Commerce 
 attended an informal meeting of the Permanent Organ- 
 ization Committee of the International Congress of 
 Chambers of Commerce held in Paris in the spring of 
 1919. Mr. Edward A. Filene, of Boston, Mass., a director 
 of the United States Chamber of Commerce, and Mr. 
 Edward G. Miner,, of Rochester, N. Y., later joined by 
 Mr. Thomas W. Lamont and Mr. A. C. Bedford, of New 
 York (the latter a vice president of the United States 
 Chamber of Commerce), and Mr. Elliot H. Goodwin, 
 
 General Secretary, laid 
 the plan before the 
 proper persons and or- 
 ganizations in the four 
 countries named, and 
 as a result it was 
 determined that the 
 Chamber of Commerce 
 of the United States 
 should invite repre- 
 sentatives from each 
 of those countries to 
 come to the United 
 States and discuss 
 these problems with 
 the business men of 
 America. In each coun- 
 try, as well as Amer- 
 ica, care was taken to 
 obtain the acceptance 
 of those men who 
 
 ELLIOT H. GOODWIN. 
 
12 THE INTERNATIONAL TRADE CONFERENCE 
 
 could speak with authority upon the separate vital needs 
 of Credit and Finance, Chemicals, Coal, Petroleum, 
 Metals, Foodstuffs, Reconstruction Supplies, and Tex- 
 tiles. Anticipating the inevitable demand for continuity 
 of activity,, these were supplemented by a Joint Commit- 
 tee on Permanent Organization. 
 
 The openhanded invitation of America, the country 
 having the resources of raw material, foodstuffs, manu- 
 factures and capital upon which heavy drafts could be 
 made, was accepted in the spirit offered, with the result 
 that some sixty picked European men of affairs came to 
 the United States and sat in continuous conference with 
 a still larger number of leading American business men 
 in an endeavor to arrive at a solution of these grave and 
 pressing problems. 
 
 The first days were given over to group meetings of 
 the twenty committees (ten from each of the five coun- 
 tries involved), each dealing with the ten major topics, 
 and finally evolving into the general sessions participated 
 in by the business men from all parts of the United 
 States, described by Mr. F. 0. Watts of St. Louis, Mo., 
 former president of the American Bankers' Association, 
 as "the most notable gathering of business men held in 
 America," and where the result of the intensive labors of 
 the committees were set forth. 
 
 Executive Committee. 
 
 ALFRED C. BEDFORD, Chairman, New York, Standard Oil Co. 
 
 JOHN H. FAHEY, Vice Chairman, Boston, St. Johns River Ship- 
 building Co. 
 
 ANDREW H. PHELPS, Eastern District Secretary, Chamber of Com- 
 merce of the United States, New York. 
 
 DELOS W. COOKE, New York, Cunard Steamship Co. 
 
 JOSEPH H. DEFREES, Chicago, Defrees, Buckingham & Eaton. 
 
 JAMES A. FARRELL, New York, Chairman, National Foreign Trade 
 Council. 
 
 HOMER L. FERGUSON, Newport News, Newport News Shipbuilding 
 and Dry Dock Co. 
 
 EDWARD A. FILENE, Boston, William Filene's Sons Co. 
 
 THOMAS W. LAMONT, New York, J. P. Morgan & Co. 
 
THE INTERNATIONAL TRADE CONFERENCE 13 
 
 OWEN D. YOUNG, New York, General Electric Co. 
 
 IVY L. LEE, New York. 
 
 ALFRED E. MARLING, New York, President, Chamber of Commerce 
 of the State of New York. 
 
 EDWARD G. MINER, Rochester, The Pfaulder Co. 
 
 WILLIAM FELLOWES MORGAN, New York, President, Merchants' 
 Association of New York. 
 
 LEWIS E. PIERSON, New York, Irving Natoinal Bank. 
 
 R. GOODWYN RHETT, Charleston, S. C., Peoples National Bank. 
 
 GEORGE ED. SMITH, New York, President, American Manufac- 
 turers' Export Association. 
 
 ERNEST T. TRIGG, Philadelphia, John Lucas & Co. 
 
 HARRY A. WHEELER, Chicago, Union Trust Co. 
 
 THEODORE F. WHITMARSH, New York, Francis H. Leggett & Co. 
 
 Arrival at New York. 
 
 The Commissioners from overseas arrived at New 
 York on the United States Transport Northern Pacific, 
 Sunday morning, October 12, accompanied by Mr. Ed- 
 ward A. Filene, director of the United States Chamber 
 of Commerce, and Mr. Ben. H. Lambe of the Wash- 
 ington office of the Chamber. They were met by Mr. 
 Louis E. Pierson, chairman, and members of the Recep- 
 tion Committee, Mr. A. C. Bedford, chairman of the 
 Executive Committee, and others, and driven to the 
 Waldorf-Astoria Hotel,, to remain until Friday, Octo- 
 ber 17. 
 
 Preliminary Meetings in New York. 
 
 The interim between arrival in New York and depar- 
 ture for Atlantic City was employed most effectively. 
 Arrangements had been made for a series of "rotary" 
 meetings between each of the foreign commissions sit- 
 ting en bloc, and representatives of each of the ten topi- 
 cal committees from the American side. For three days 
 these intensive meetings were held, serving as a dress 
 rehearsal for the formal meetings at Atlantic City, 
 clearing away a great quantity of surplus matter, allow- 
 ing the American Committee to become personally ac- 
 quainted with the Europeans and permitting the Atlantic 
 
14 THE INTERNATIONAL TRADE CONFERENCE 
 
 City Conferences to get under way with a minimum loss 
 of time. 
 
 No attempt at formal entertainment was made, that 
 being reserved for the Merchants' Association and Cham- 
 ber of Commerce of New York, upon the return of the 
 commissions from their tour of the industrial centers of 
 the country. 
 
 On Friday morning a special train took the commis- 
 sioners, many New York committeemen and officials of 
 the United States Chamber of Commerce to Atlantic 
 City, where, aside from some few informal meetings, the 
 guests were left free to enjoy themselves until the serious 
 labors of the Conference formally began. 
 
 Personnel of Foreign Commissions. 
 BELGIUM. 
 
 M. FLORIMOND HANKAR, Chairman; Director, National Bank of 
 Belgium; Honorary Director General, Savings Bank of Bel- 
 gium. 
 
 M. CANON-LEGRAND, President, Chamber of Commerce, Mons; Con- 
 struction Engineer; Permanent President, International Con- 
 gress of Chambers of Commerce. 
 
 M. ALBERT NEVE, Departmental Director, Ougree-Marihaye Works, 
 Liege. 
 
 M. ALBERT E. JANSSEN, Director, National Bank of Belgium, Pro- 
 fessor University of Louvain. 
 
 M. ALEXANDRE DE GROOTE, Vice-President, Antwerp Chamber of 
 Commerce. 
 
 PROF. PAUL VAN DEN VEN, University of Louvain, Delegate of 
 Belgian Minister of Finance at Paris Conference. 
 
 FRANCE. 
 
 M. EUGENE SCHNEIDER, Chairman of Mission, Head of Creusot 
 Steel Works; President of Iron and Steel Institute of Great 
 Britain; former Member of Chamber of Deputies. 
 
 M. TIRMAN, Councillor of State; Representative of French Minis- 
 try of Commerce. 
 
 M. LE BARON DU MARAIS, Vice-Chairman of Mission; Director of 
 Credit Lyonnais. 
 
 M. ANDRE HOMBERG, Vice-President of the Societe Generale. 
 
 M. PELLERIN DE LA TOUCHE, President of French Transport- 
 Atlantic Line; President of Paris Subways. 
 
THE INTERNATIONAL TRADE CONFERENCE 15 
 
 M. WADDINGTON, Textile Manufacturer; Vice-President of Syndi- 
 
 cat Normand du Tissage. 
 M. ROCHE, Delegate of General Syndicate of Chemical Products; 
 
 Director of the firm of Poulene Brothers. 
 M. JULIEN POTIN, Vice-President of Biscuit Syndicate; President 
 
 of Dry Vegetable Syndicate; President of Potin & Company. 
 M. GODET, former President of the Tribunal of the Section of 
 
 Commerce of the Seine; ex-President of the General Associa- 
 tion of Textiles; Member of Chamber of Commerce of Paris; 
 
 Delegate of the Confederation Generate de Production. 
 M. LE COMMANDANT VARAIGNE, head of French Mission associated 
 
 with the American Services in Paris. 
 
 M. FRANCOIS-PONCET, Delegate of the Steel Committee in France. 
 M. PESSON-DIDION, Mining Engineer; Delegate of the Union of 
 
 Metallurgical and Mining Industries; Director of the Societe 
 
 Centrale pour 1'Industries Electrique. 
 M. DOLLEANS, Professor of Political Economy at University of 
 
 Dijon. 
 M. PARMENTIER, Engineer; Delegate to the Ministers of Commerce 
 
 and Public Works; Assistant to M. Pellerin de la Touche. 
 M. LOIZEAU, Engineer of the Credit Lyonnais; Assistant to M. 
 
 le Baron du Marais. 
 M. COLLIN, Engineer at Schneider establishment; Assistant to the 
 
 President of the Mission. 
 
 M. DE FREMINVILLE, Engineer at Schneider establishment. 
 M. MAZOT, General Secretary of the French High Commission; 
 
 General Secretary of the Mission. 
 M. BOYER, Director of American Services in the Bank of Paris; 
 
 Assistant General Secretary. 
 M. PIERRE LEHIDEUX, Secretary. 
 
 GREAT BRITAIN. 
 
 SIR ARTHUR SHIRLEY BENN, K. B. E.; M. P.; Chairman, London. 
 
 SIR JAMES HOPE SIMPSON, Director and General Manager, Bank 
 of Liverpool. 
 
 HON. J. G. JENKINS, Corbiston, London; Member of Finance, Gen- 
 eral Purposes and Merchants' Committees, London Chamber of 
 Commerce; V. P., British Producers' Association; former 
 Premier, South Australia. 
 
 MR. MARSHALL STEVENS, M. P., Manchester. 
 
 BAILIE JOHN KING, Chairman, National Light Castings Associa- 
 tion, Glasgow. 
 
 MR. FRANK MOORE, Moore, Eady & Murcott Goode, Ltd., Leicester. 
 
 Secretaries: 
 MR. GEORGE BERKES, Assistant Secretary, Federation of British 
 
16 THE INTERNATIONAL TRADE CONFERENCE 
 
 Industries, London; Associate Member, Chartered Institute of 
 Secretaries. 
 LIEUT. A. S. JARRATT, Manchester. 
 
 ITALY. 
 
 COMMANDER ENGINEER FERDINANDO QUARTIERI, Chairman; Presi- 
 dent of the Italian Corporation for Chemical Industries and 
 other Italian companies. 
 
 COMMANDER PROF, BERNARDO ATTOLICO. 
 
 COMMANDER ENGINEER DR. LUIGI LUIGGI, Member of the State 
 Council of Public Works; Professor at the University of Rome. 
 
 COMMANDER PROF. VITTORIO MENEGHELLI, President, Chamber of 
 Commerce of Venice. 
 
 COMMANDER GIORGIO MYLIUS, President of the Italian Master Cot- 
 ton Spinners' and Weavers' Association. 
 
 COMMANDER DOMENICO GIDONI, Delegate of the Italian Treasury. 
 
 COMMANDER PIETRO GIOVANNI LAZZERINI, Secretary General. 
 
 CHEVALIER GIOVANNI FUMMI, Stock Broker. 
 
 COMMANDER ERSILIO BARONI, President of the Italian Union for 
 the Manufacture of Explosives. 
 
 COMMANDER DR. AUGUSTO JACCARINO, Representative of the Banco 
 di Napoli. 
 
 CHEVALIER GAETANO BIASUTTI, Representative of the Banca Ital- 
 iana di Sconto. 
 
 DR. ILDO MARCHISIO, Representative of the Banco di Roma. 
 
 CHEVALIER GUIDO PEDRAZZINI, Representative of the Banca Com- 
 merciale Italiana. 
 
 CHEVALIER FELICE BAVA, Representative of the Credito Italiano. 
 
 MARQUIS T. THEODOLI. 
 
 MR. ANTONIO AGRESTI. 
 
 ENGINEER MARIO LUIGI LUIGGI. 
 
 ENGINEER ARTURO ANZANI. 
 
 Address by Mr. Homer L. Ferguson, 
 
 President, Chamber of Commerce of the United States, at the 
 
 Banquet Held at the Hotel Traymore, Atlantic City, 
 
 Saturday Evening, October 18, 1919 
 
 Gentlemen of the European Commercial Missions: It 
 gives me great pleasure to welcome you here this even- 
 ing, and to welcome you to the International Trade Con- 
 ference at Atlantic City, in the name of the Chamber of 
 Commerce of the United States. 
 
 This evening you are our personal guests, as it were, 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 17 
 
 and we are delighted to have you here and become ac- 
 quainted with you. We are prepared to like you and we 
 hope you will like us. 
 
 During the week we shall have to share your time with 
 the business men of the United States. We have asked 
 you here to meet business men from all over this coun- 
 try, representing every line of industry, and you are here 
 to discuss with them our mutual problems not only 
 yours of Europe, but ours of America. We feel sure 
 
 that the great task of 
 getting the world on 
 its business feet again 
 is greater than the 
 task which has been 
 met. It cannot be more 
 difficult than the tre- 
 mendous struggle we 
 have gone through. All 
 of the forces of gov- 
 ernments and all of 
 the credits of govern- 
 ments were used to 
 save what we con- 
 sidered the civilized 
 world, and to do 
 this the governments 
 dropped the reins of 
 business. These gov- 
 ernments have gone 
 back to attend to their 
 normal functions and it remains for the business men 
 of the world, as represented by your missions and as 
 represented by the men who will come here to meet you, 
 to help get this old world of ours back again into the 
 normal paths of production and of peace. 
 
 I assure you that we hope that in this convention at 
 Atlantic City, in our relations with you and in our inter- 
 course with you, to typify, in some small degree, the 
 spirit of our soldiers who fought with your soldiers ; and 
 
 HOMER L. FERGUSON 
 
18 THE INTERNATIONAL TRADE CONFERENCE 
 
 who showed that, even though their language might not 
 be the same and even though national training and cir- 
 cumstances might not be the same, yet, when the minds 
 and hearts of men are united by the same purpose, they 
 can work together for the common good of all and they 
 can win in that way the triumphs of peace as well as 
 the triumphs of war. 
 
 It gives me great pleasure personally to meet with 
 some friends whom I have known on the other side and 
 whose friends I have known. I claim to be Scotch in 
 origin, Irish by adoption and, later, American by pro- 
 fession. When a young man in the navy, I came very 
 near to being a Frenchman. By the merest chance, by 
 the toss of a coin, I was deprived of three years in Paris. 
 On the old Lancaster, another man and I sat up one night 
 to toss a coin to see which of us was to go to Glasgow 
 and which of us was to go to Paris. He got Paris and I 
 got Glasgow, but I visited in Paris very often and there 
 conceived a liking for our friends across the channel, 
 which has lasted me to this day, and which the boys from 
 Europe brought back with them. 
 
 We just want to say to you here that we trust you 
 will stay a long time ; we trust you have not your tickets 
 home again. We hope that this is the beginning of a 
 series of International Conferences. We want you to 
 know that the latch-string is always out for you in the 
 United States. 
 
 Gentlemen, having discharged my duty to the Conven- 
 tion as the first of our speakers this evening, it gives me 
 great pleasure to turn over the remainder of the program 
 to your very excellent toastmaster, the chairman of the 
 Executive Committee of this Conference, Mr. Bedford. 
 
THE INTERNATIONAL TRADE CONFERENCE 19 
 Address by Mr. Alfred C. Bedford, 
 
 Chairman, Executive Committee, International Trade Conference. 
 Saturday Night, October 18, 1919. 
 
 We have been welcoming distinguished visitors from 
 overseas during the past months with more or less fre- 
 quency, but none on a happier errand or none with any 
 greater feeling of honor and pleasure than we experience 
 tonight in extending our most cordial greetings to the 
 distinguished gentlemen representing the delegations 
 from Belgium, England, France and Italy who are our 
 guests tonight. With memories fresh in our thoughts of 
 the marvelous courage and stupendous sacrifices and suf- 
 ferings which finally culminated in victory in the most 
 tremendous war the world has ever witnessed, and with 
 the new blood ties growing out of the titanic struggle 
 which bind us to each of your countries, we cannot look 
 upon you as strangers and do not believe you will at any 
 time here feel yourselves in a strange land. You will,. 
 I trust, feel the thrill of the new friendships and the new 
 aspirations and sympathies which permeate us as we 
 realize what the bonds forged by the heat and blows of 
 war mean to us. I hope also you will experience a pecu- 
 liar sense of being at home amongst us as you contem- 
 plate the contributions of our national being of your 
 countrymen, by men of your own flesh and blood, who 
 preceded you here, perhaps by a few years, perhaps by 
 a generation or two, but who have made possible much 
 of the achievements that we are proud to show you to- 
 day. It was your own kith and kind which founded this 
 nation and which has given us our highest ideals and 
 inspirations, and as during the next few weeks you go 
 about among us, you will never find yourself without the 
 company, not only of brothers in sentiment and in action, 
 but those who are bound to you by the ties of blood and 
 of a common ancestry, and who are the leaders of our 
 country today. In every community that you visit I 
 think you will discover many evidences of the impress 
 which your racial habits and customs have made upon, 
 
20 THE INTERNATIONAL TRADE CONFERENCE 
 
 not alone our business practices, but the whole fabric of 
 our economic, social and religious life. In a word, I 
 hope you will feel no more of the strangeness than is 
 induced by a visit to one's own relatives, even if it be as 
 it must seem to some of you, in a far country. 
 
 Of course, you will doubtless observe in the course of 
 your travels, over the next few weeks, marked differences 
 in the peoples of different localities, but I can neverthe- 
 less guarantee that you will distinguish no essential dif- 
 ference in the cordiality of the reception accorded you. 
 
 But while your visit here is surrounded by this friendly 
 atmosphere, it possesses an import for beyond the grati- 
 fication of our own pleasure that this reunion must in- 
 spire. We must set ourselves to the task of taking an 
 inventory of the necessities of each of the nations we 
 represent, of the ability of each to serve the other and 
 to conceive methods whereby the machinery of interna- 
 tional commerce may be again speedily restored, not for 
 the aggrandizement or upbuilding of any one country, 
 but for the common good, and the restoration of the 
 world. If we approach our problems in this spirit and 
 with this as our goal, we may be the pioneers in the move- 
 ment for a great commercial community of interest, the 
 parties to which will never again lose touch with each 
 other, and which will be for all time a guarantee of peace 
 and security. 
 
 It is more, then, than a fraternal welcome that we of 
 the American continent extend to you gentlemen from 
 overseas, as you come among us upon this momentous 
 occasion. It is as if you were a relief force come to assist 
 us in raising a blockade. For against America as 
 much as against Europe a blockade by the war's havoc 
 upon that highly sensitive mechanism of the world's 
 trade, threatens and impends. We in this country are 
 loath to speak of the suffering brought about by the war 
 when we realize how small ours has been by comparison 
 with the infinite sacrifices you have been called upon to 
 make. But we of both sides of the ocean know that in- 
 ternational commerce had been hundreds of years in ar- 
 
THE INTERNATIONAL TRADE CONFERENCE 21 
 
 riving at that nicety of balance by which the peoples of 
 the different countries were enabled to enrich their lives 
 and add the sum of human comfort by trading freely 
 with each other ; and we know that by the breath of war, 
 this finely poised equilibrium was upset, that now, nearly 
 a year since the armistice was signed, our business rela- 
 tions are still far from the stage where the freest inter- 
 change of commodities can be resumed. Not only the 
 physical comfort and well-being, but the very lives of 
 millions of people,, depend upon this modern mechanism 
 of international trade being restored, upon the barriers 
 which were erected in the wake of war being leveled, 
 until the channels of commerce can be reopened so that 
 the commodities upon which human existence depends, 
 may flow unchecked from where they are most plentiful 
 to where they are most needed. This is the purpose 
 which brings us together. 
 
 Almost fantastically strange, economic conditions con- 
 front us on every hand, but we cannot be surprised to 
 find that this great war, like other wars, had enormously 
 displaced the ratio between commodities and money, re- 
 ducing the supplies of commodities and enormously aug- 
 menting the paper currency and deposits set off against 
 them. We have to deal with the outcome of this situa- 
 tion, which, as it was inevitable that it should be, is high 
 prices, or rather one of the fundamental causes of high 
 prices, and it seems to me that much of the success of 
 our efforts just now will depend upon how we regard 
 this stepchild of the war. 
 
 You are probably familiar with the annual review of 
 the Swiss Bank Corporation for the year 1918, which in 
 its summary shows that, leaving Russia out of consider- 
 ation, the note circulation of the belligerents increased 
 during the war by 447 per cent, while during the same 
 period their gold reserves increased only 45 per cent. 
 
 To me, the existence of this great mass of paper cur- 
 rency precludes the possibility of a rapid fall in prices,, 
 even if such a trend would not find formidable obstacles 
 in the great volume of national debts and the determina- 
 
22 THE INTERNATIONAL TRADE CONFERENCE 
 
 tion of labor to keep wages high. High prices may be 
 regarded as a symptom of unsoundness, but we can all 
 appreciate the danger which would accompany any rapid 
 fall in prices which would cause goods to sell at less than 
 they cost, and the repayment in dear money of debts 
 which had been contracted in cheap money. 
 
 For these primary reasons it seems as if we must be 
 reconciled for the time to a changed valuation of money 
 and adjust ourselves to a permanently higher level of 
 prices. I mentioned these few things because in my 
 opinion they have much to do with the matter of credits, 
 and credit is the kernel of the world's problems today. 
 The debt of the Allies to America is of an entirely short- 
 dated character, and it would seem that commercial re- 
 covery will have a close relationship to the funding of 
 these debts over a lengthy period. This will permit of 
 the more free movement of foodstuffs and raw mate- 
 rials which are so urgently needed overseas, and which 
 we are determined to strain to the utmost limit of our 
 ability to supply. The question of high prices is neither 
 of dominating influence now, nor will it be of supreme 
 importance, when credits in the long future, are being 
 liquidated. The present duty is to arrange these credits 
 rapidly enough to relieve the existing international 
 situation. 
 
 We are anxious to do this. We are prompted not alto- 
 gether by business reasons to help set the world right and 
 to bring about real prosperity, which we feel can never 
 exist while so large an area of former economic activities 
 are unproductive. 
 
 No trade conference ever faced more interesting or 
 perhaps more difficult problems than those that will come 
 before us. A good business man, however, always wel- 
 comes new problems that challenges his ingenuity and 
 strength. Great Britain, France, Italy,. Belgium and the 
 United States are all in the same boat, in a sea from 
 which buoys and lights have been mostly swept away. 
 We must chart new courses to reopen channels of trade. 
 We must do away with artificial war-created obstacles 
 
THE INTERNATIONAL TRADE CONFERENCE 23 
 
 as rapidly as possible to permit the resumption of normal 
 movement of goods and credits. 
 
 The supply of labor everywhere is inadequate, hence 
 the necessity of increased individual industry and pro- 
 duction. Fortunately we have learned to multiply pro- 
 duction per capital by more widespread development and 
 use of machinery. Those of us who have witnessed the 
 operation of marvelous devices created to serve as 
 agencies of destruction will be little surprised to find even 
 more ingenious use made of power-driven mechanical 
 devices on the interest of reconstruction. Some of our 
 efforts in this direction you will see for yourselves, as we 
 shall open wide to you the doors of our greatest industrial 
 centers. We do this, knowing that we are not divulging 
 our business secrets, but rather exchanging ideas for 
 those equally valuable. You can teach us perhaps more 
 than we can teach you, and I warn you we do not intend 
 to have you leave these shores, hospitable as they may 
 appear, until we have secured every bit of valuable in- 
 formation which we can get from you. I therefore wel- 
 come you to this Conference that we may together study 
 in the common interest, exceeding in importance merely 
 selfish or national aspirations, the re-establishment of the 
 processes of industry and of commerce and the restora- 
 tion of international trade to normal channels. To the 
 accomplishment of these and kindred aims the Interna- 
 tional Trade Conference will address itself. 
 
24 THE INTERNATIONAL TRADE CONFERENCE 
 Address of M. Florimond Hankar. 
 
 Chairman of the Belgian Mission. 
 Saturday Night, October 18, 1919. 
 
 Were I to indulge in the greatest extravagance in the 
 use of words, I know I should fail to express to you the 
 full measure of our appreciation of the kindly attention 
 and hospitality which has been ours since we arrived on 
 your shores. 
 
 We Belgians already are everlastingly indebted to you 
 Americans. Our debt of gratitude to you is one we never 
 shall be able to repay. And now, I and my colleagues 
 find ourselves increasing that obligation. And I may as 
 well be frank and say that we are having the time of our 
 lives doing it. We are shameless about it. However, it 
 is all your fault ; I do not believe any creditors ever were 
 so royally welcomed and entertained by their debtors as 
 we have been. It is going to be rather hard to leave you 
 and your country when the time comes for us to go home. 
 We have only been here two days, but I know we are 
 going to hate to leave Atlantic City. 
 
 We have heard much of Atlantic City,, but we never 
 dreamed that it was like this. We have our Ostend, but 
 we do not have the wonderful hotels and buildings such 
 as you have here. After a strenuous five days in New 
 York, this is a most welcome change. Coming here, I 
 was afraid we would find it difficult to work with your 
 alluring boardwalk and your beach right under our Tray- 
 more windows. Atlantic City, however, I should say, is a 
 place where one may work and rest all at the same time. 
 I shall carry away with me very pleasant memories of 
 your city. 
 
 We of the Belgian Mission have been amazed at the 
 manner in which we are being conducted on this tour by 
 the various committees in charge. Everything is made 
 so delightful for us. All our wants are anticipated and 
 attended to with a graciousness that is almost making 
 us forget how to look out for ourselves. I am afraid you 
 will spoil us. 
 
THE iNTERNAtlONAL TRADE CONFERENCE 25 
 
 I am perfectly sure from what I have seen of the 
 efficient arrangements which you gentlemen and your 
 associates have made that this trip will be most charming 
 and most successful. For, us, the tour holds greater in- 
 terest perhaps than you can realize. We Belgians are 
 being enabled to see and to meet a people who were the 
 salvation of our country ; who fed us when we hungered, 
 who cheered us on when we were low in spirits and who 
 finally gave themselves whole-heartedly to our cause and 
 that of our Allies. We should like to be able to tell every 
 American how deeply grateful Belgium is. Belgium for 
 all time to come will cherish the friendship of America. 
 
 We are looking forward with pleasure to the Trade 
 Conference. I am certain it will be a great success with 
 so many Europeans here. You know we Europeans do 
 not travel as you Americans do. We do not like great 
 distances. We do not go across the seas with as little 
 thought as you do. But you made this trip across the 
 Atlantic so attractive and so easy for us that we have 
 come in large numbers to your Conference. I am sure 
 that a great deal of good for you and for us will come out 
 of this meeting in Atlantic City and the tour you have 
 arranged for us. 
 
26 
 
 THE INTERNATIONAL TRADE CONFERENCE 
 
 Address by M. Eugene Schneider, 
 
 Chairman of the French Mission. 
 Saturday Night, October 18, 1919. 
 
 Gentlemen: Today is our first official meeting with the 
 Chamber of Commerce, and it is a great pleasure for me 
 to thank you for all the courtesy and kindness you have 
 shown us since we landed. 
 
 This meeting at a banquet tonight before the opening 
 
 of our meetings is 
 quite a new idea. 
 
 We generally have 
 banquets after the 
 conclusion of our 
 meetings, but you 
 thought, and you were 
 quite right to think 
 so, that the best way 
 was to make friends 
 at first and then to 
 set to work in a more 
 friendly manner. We 
 are, many of us, engi- 
 neers, and, of course, 
 we easily understand, 
 too, that before start- 
 ing the engine we 
 must feed the boiler 
 and supply it with 
 fuel. 
 
 The hospitality of your people was well known to the 
 Frenchmen. More than a century ago, in the month of 
 July, 1778, the French Ambassador to America wrote 
 to Count de Vergennes : "The amiability of the Ameri- 
 cans is so great that I dare not describe it, lest I should 
 be supposed to exaggerate." 
 
 You chose this seaside place for our meetings in order 
 to let us enjoy our time when our daily work would be 
 done. We may breathe fresh air and in a similar man- 
 
 M. SCHNEIDER. 
 
THE INTERNATIONAL TRADE CONFERENCE 27 
 
 ner our hearts are filled with a fresh feeling of friend- 
 ship while we are staying amongst our friends. This 
 ocean is no more an obstacle, but, on the contrary, it will, 
 in the future, help us to draw nearer to each other. As 
 it is the fashion just now for some old European nations 
 to change their names, let us change the name of the 
 ocean and let us write on the new map of the world : the 
 "Atlantic Channel." 
 
 We have come over to America hoping that frequent 
 and mutual visits might make us understand better and 
 know each other better. We on both sides the new chan- 
 nel know ourselves,, we know our plans, we know our 
 own character better than any traveler or expert might 
 hope to know after traveling only a few weeks in our 
 countries. 
 
 A man was run over by a motor car and was taken to 
 the hospital with bad wounds. His wife was sent for and 
 was shown the patient's bed. The man had fainted and 
 the doctor said to the poor woman : "I am deeply sorry, 
 Madam, your husband's sufferings have been put to an 
 end by death." The man heard and said "I am not dead." 
 "Hush," answered the wife, "you keep quiet, old man; 
 the doctor knows better than you." Well, gentlemen, we 
 need not have such doctors between you and us and we 
 all know our needs and weaknesses and troubles better 
 than any of those doctors who too often believe in their 
 own infallible knowledge. They often make me think 
 of that gentleman who was choosing a pair of spectacles 
 at the optician's: "These glasses," he says, "are not 
 strong enough for me." "But, sir, they are No. 2." 
 "What have you next to No. 2, and after that?" "After 
 No. 1, sir, you will want a dog to lead you." 
 
 We have come to America to work with you and study 
 what we can do for the reinstatement of the world after 
 the terrible hurricane it has gone through. We have not 
 come for our own private affairs. Just before we left 
 Paris we were received by Mr. Poincare, the President of 
 the French Republic, who said to me : "Americans are not 
 prejudiced they are always ready to listen, and, after 
 
28 THE INTERNATIONAL TRADE CONFERENCE 
 
 they have carefully considered your arguments, they will 
 tell you frankly 'Yes' or 'No.' " My experience of your 
 countrymen has shown me that Mr. Poincare is right. 
 
 Many things have to be done to restore our countries. 
 We have to examine and study a great number of ques- 
 tions and subjects. We are not expecting, of course, that 
 our work will bring us at once to a definite settlement 
 of the world. We must needs have a permanent organ- 
 ization and establish frequent exchanges of views, and 
 get used to work together. We must try and find out the 
 best means of arranging our affairs in order to make it 
 as improbable as may be that humanity would have to 
 suffer from another war, if not forever, at least for a 
 long period of years. 
 
 Yesterday I was present at the banquet of the Ameri- 
 can Manufacturers' Export Association and we had the 
 pleasure of hearing a speech delivered by Secretary of 
 Commerce Redfield on that subject. Mr. Bedford, who 
 was my neighbor, will certainly agree with me when I 
 say that this speech was the best we could have hoped to 
 hear. 
 
 Everyone in this country seems to understand things 
 as we do ourselves as regards the principles the means 
 and ways only are subject to discussion. Let us set to 
 work. I will not detain you any longer, Gentlemen, and 
 as a conclusion I can find no other that would better meet 
 with the approval of all my colleagues than to thank you 
 again for all your courtesies and kindness and tell you 
 what a great pleasure it is for us to stay with you and 
 admire your great high-minded and magnificent country. 
 
THE INTERNATIONAL TRADE CONFERENCE 29 
 Address by Mr. Marshall Stevens, M. P., 
 
 Member of the British Mission. 
 Saturday Night, October 18, 1919. 
 
 I thank you, Mr. Chairman and Gentlemen,, exceedingly, 
 on behalf of the British Mission for the cordial manner 
 in which you have received the toast to which I am re- 
 sponding. 
 
 We come here to you in your great country in no sense 
 officially, but simply as nominees of the Associated Cham- 
 bers of Commerce of Great Britain, of the Federation of 
 British Industries, with, I hope, one nominee of the 
 Bankers' Association of Great Britain. 
 
 Not one of us is authorized to speak on behalf of the 
 associations which have nominated us, much less can we 
 speak with any authority on behalf of our country. 
 
 You must, therefore, please accept us as individuals. 
 
 We are not here in any sense as suppliants, but as 
 Anglo-Saxons, glad and ready to join Anglo-Saxons, and 
 with them their guests from other countries, in carrying 
 out the great work of commercial reconstruction which 
 the world so badly requires. 
 
 Sir Arthur Shirley Benn, M. P., K. B. E., whom we 
 have elected as our chairman, has lived a considerable 
 portion of his life in America, some of the time in 
 Canada,, but during most of his business life as a member 
 of the firm of Hunter Benn & Co., at Mobile, Alabama, 
 where he also acted as British Vice-Consul. 
 
 Sir Arthur now devotes himself to public duties, and 
 is honorable treasurer to the Associated Chambers of 
 Commerce, and he is always available to assist in the 
 advancement of the interests of the British Empire. 
 
 Lady Benn gave up her American independence when, 
 as Miss Luling of Alabama, she married our chairman. 
 
 The Hon. John G. Jenkins, a former Premier of South 
 Australia, afterward acted as Agent-General in Great 
 Britain for that state. For the last ten years he has 
 been an active member of the London Chamber of Com- 
 merce, and was one of the founders, and now is honorable 
 
30 THE INTERNATIONAL TRADE CONFERENCE 
 
 treasurer of the British Imperial Council of Commerce. 
 
 Mr. Jenkins was born in the United States, and his 
 American birth, his colonial activities, and his renewed 
 activity in Great Britain aptly illustrate the Anglo-Saxon 
 character. 
 
 Bailie John King, a native of Glasgow, where he has 
 been Senior Magistrate, can trace his family back 
 through a long line of Covenanting ancestors; he is our 
 best known light casting founder, and a well-known 
 authority upon the heavy metals. 
 
 Bailie King, who will be better recognized here as 
 Judge King, is a member of the Council of the Federation 
 of British Industries, which has nominated him to attend 
 this Conference. 
 
 Mr. Frank Moore, of Leicester, who is also a nominee 
 of the Federation of British Industries, is an authority 
 upon textiles, and is chairman of one of our largest com- 
 binations of hosiery manufacturers, having factories in 
 several towns in Great Britain. 
 
 Mr. Moore is president of the Leicester Chamber of 
 Commerce, vice-president of the Hosiery Manufacturers' 
 Association,, and past master of one of our old city com- 
 panies the Framework Knitters. 
 
 Sir James Hope Simpson, who as general manager of 
 the Bank of Liverpool and Martins Bank, ranks in this 
 country with the president of your large banks, is a 
 worthy follower in the footsteps of his father, who won 
 great eminence in a similar position, and his business 
 relationships with this country make him very well 
 known here, especially to the banking community. 
 
 Our secretariat provided by the Federation of British 
 Industries is headed by Mr. George Berks, assisted by 
 Lieutenant A. S. Jarratt. 
 
 We have all been vigorously employed on war work, 
 and you will find us no less anxious and no less willing to 
 accomplish what is possible in the reconstruction of inter- 
 national commerce. We do not seek to limit international 
 commerce to its pre-war channels; rather do we look to 
 its great expansion in all countries, and by individuals 
 
THE INTERNATIONAL TRADE CONFERENCE 31 
 
 who have not hitherto engaged in it, because we believe 
 that no greater bond can endow the world in peace, com- 
 fort and prosperity than an International League of 
 Commercial Fellowship. 
 
 Address by Comm. Dr. Ferdinando Quart ieri, 
 
 Chairman of the Italian Mission. 
 Saturday Night, October 18, 1919. 
 
 The initiative taken by the Chamber of Commerce of 
 the United States, in response to which the Italian Eco- 
 nomic Mission has come to America, is a particularly 
 timely and happy one. The war has taught us to appre- 
 ciate the value of personal contact between the nations, 
 and, thanks to this personal contact, the ties of mutual 
 esteem and mutual confidence between the Allies have 
 been fostered and strengthened. Now that peace has 
 crowned our united efforts, we must not allow these ties 
 to be weakened. 
 
 Through personal contact only can we hope to arrive 
 at a satisfactory solution of the difficulties and manifold 
 needs to which the war has given rise. 
 
 That the initiative in favor of the International Trade 
 Conference, which is bringing together the representa- 
 tives of the commercial and industrial interests of the 
 leading allied nations, should have been taken by the 
 Americans clearly shows the generous and helpful spirit 
 in which they are prepared to study our needs and to 
 come to our assistance. 
 
 Italy responds whole-heartedly to this invitation. Not 
 only are her needs, perhaps,, more urgent than those of 
 any other European country, but the bonds which unite 
 Italy to America are so numerous, and so strongly felt 
 by the Italian people, that from no other quarter could 
 such an initiative have been so welcome. America is 
 known and loved in the humble homes of our workers, by 
 
32 THE INTERNATIONAL TRADE CONFERENCE 
 
 the masses of our people, even more than by our upper 
 classes; and this intimate knowledge is the basis of the 
 indestructible popularity which America enjoys in Italy. 
 But the Italian Economic Mission realizes that the 
 work before it aims at the economic reconstruction of all 
 the Allied peoples who have suffered in this terrible war ; 
 nor does it forget the new states which have arisen in our 
 midst, and which, even though their representatives are 
 not now with us, are yet fully entitled to the solicitous 
 help of their richer and more powerful Allies. In this 
 spirit, and with these aims, the Italian Mission sends a 
 greeting to the American people. 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 33 
 
 Address of Mr. Edward A. Filene. 
 
 Saturday Night, October 18, 1919. 
 
 Mr. Chairman and Gentlemen: I want to speak to you 
 very briefly about the spirit with which the members of 
 these missions have accepted the invitation of the Cham- 
 ber of Commerce of the United States and have crossed 
 the Atlantic in order to join us in these conferences. It 
 
 is very difficult for us 
 to realize, and they are 
 too modest to tell us, 
 what sacrifices these 
 distinguished guests of 
 ours have made to 
 leave their homes and 
 their countries and 
 their personal business 
 to come here in this 
 most critical time. 
 
 All of them are 
 men of large affairs 
 who have given them- 
 selves without stint to 
 their countries' need 
 through four long ex- 
 hausting years. If 
 they permitted them- 
 selves to yield to their 
 personal preference, 
 
 nobody could blame them if they had said : "We are tired 
 and we need rest. We must have a chance to spend a few 
 months in quiet at home before we do more work. We 
 cannot go." 
 
 Aside from this, all of them have much at stake in the 
 developments of the coming mouths. In all these coun- 
 tries national elections are pending or likely to come, 
 which will determine the most vital national policy, 
 policy which will affect seriously both their country's 
 future and their business future. Still more immediate, 
 
 EDWARD A. FILENE 
 
34 THE INTERNATIONAL TRADE CONFERENCE 
 
 they are faced in most cases with the necessity of re- 
 establishing their industries and their business affairs 
 on a peace basis. For four years their factories have 
 been devoted almost wholly to war work and must be re- 
 adapted to the requirements of peace production. Some 
 of them have establishments in the war zone which the 
 enemy destroyed during the war and which must be re- 
 built from the ground up in the midst of serious difficul- 
 ties in obtaining the necessary labor and materials. 
 
 Do you know that one distinguished member of the 
 Belgian Mission had factories, one of which was stripped 
 of its machinery and the other was not only stripped of 
 its machinery by the enemy, but the very building itself 
 was torn down to be carried into Germany and set up 
 again on German soil. These factories will be restored, 
 but you could not blame this gentleman had he said that 
 the necessity of restoring his interests demanded his 
 personal presence. 
 
 Take M. Schneider, the head of the French Mission. 
 His every minute during the war, his whole existence, 
 has been devoted to the manufacture of the vital muni- 
 tions needed by the French army on the western front. 
 Not only that, but the artillery supplied to our own boys 
 was to an important degree the product of the Creusot 
 Works. With practically his whole plant devoted to the 
 manufacture of artillery and other military supplies, he 
 is now faced with the problem of adapting it to peace 
 production for commercial purposes. In spite of the 
 almost overwhelming character of this demand for his 
 presence he has left all his vast personal interests to come 
 here and lend us the benefit of his able advice and help. 
 And the same spirit, the spirit of sacrificing personal 
 interest at the call of patriotic service, has dominated all 
 the members of these groups in coming to America, at 
 this time. 
 
 There can be only one reason for this attitude. It is 
 based on faith in America, faith that American help 
 which came to the front when need required and when 
 the American people understood in the war, will not be 
 
THE INTERNATIONAL TRADE CONFERENCE 35 
 
 lacking now. This faith, added to a clear vision that in 
 the present world situation America is equally concerned 
 with Europe, has led these missions to accept the invita- 
 tion of the Chamber of Commerce of the United States to 
 join with us in a discussion of the present international 
 business problem and means for its solution. 
 
 The business men of the world are now called upon to 
 cope with a question which in magnitude and scope is 
 beyond anything we have ever experienced. Just as in 
 the war the generals of the Allied armies were forced to 
 meet problems for which they had received no training 
 in the schools attended prior to the great war,, the leaders 
 of business are now obliged to plan on lines largely un- 
 charted before. These are problems for which there are 
 no rules laid down by experience. We must plan with 
 new and original thinking to meet them. 
 
 We have, however, during the war, learned one great 
 lesson that of our interdependence on one another. 
 And business men everywhere know further that all 
 trade, whether national or international, to be successful 
 must be mutually profitable. It is on that our present 
 agreements must rest. 
 
 These conferences will necessarily involve the discus- 
 sion of supplying Europe with raw materials and ma- 
 chinery. But it must not be inferred that the nations of 
 Europe have not already attacked the problem of recon- 
 struction with determination and initiative with a de- 
 gree of success not wholly understood in this country. 
 The public has, I am afraid, been somewhat misled on 
 this point by men who have spent a short time in Europe, 
 seeing only the destruction, with no time for the less 
 dramatic work of reconstruction slowly but surely go- 
 ing on. 
 
 Yet, however hard these nations work, they cannot 
 produce effectively without the raw materials and food 
 which they need as primary requisites. And these com- 
 modities they cannot get as practical prices so long as 
 the present rate of exchange continues. Throughout the 
 war they have been devoting all their productive power 
 
36 THE INTERNATIONAL TRADE CONFERENCE 
 
 to the needs of the war, and buying of us the goods which 
 they formerly produced. The resulting export of gold 
 and lack of goods to export has produced an alarmingly 
 adverse exchange rate, an exchange rate which is not 
 only damaging to Europe, which forms as well an invisi- 
 ble wall against our export to Europe of our surplus pro- 
 duction. We shall not only be doing our duty and per- 
 forming a generous act, but we shall be doing the most 
 business-like act of which we are capable, if we extend 
 to them the credit which they need and enable them to 
 purchase the raw materials and food they require for 
 their restoration to a normal productive basis. 
 
THE INTERNATIONAL TRADE CONFERENCE 37 
 Address by Sir Arthur Shirley Benn, K. B. E. ; M. P. 
 
 Chairman of the British Mission. 
 Saturday Evening, October 18, 1919 
 
 I presume that your toastmaster tonight thinks that 
 it's safe to call upon one who was born in Ireland and 
 who has spent many years of his life in America ; but it 
 is not always safe to call upon a man unexpectedly for a 
 speech. 
 
 Gentlemen, we do not come to America today as 
 strangers ; nor do we come as rival nations seeking after 
 trade; we come here as friends friends made by the 
 war. Jefferson once stated that there was no way in 
 which friendship could be made so quickly, or so surely, 
 as by having men dying side by side in the same cause. 
 We have all been striving for the same ideas. We have 
 all had the same principles of liberty,, of democracy and 
 of freedom, and we have fought to maintain civilization. 
 Today we realize, not only the condition of Belgium, not 
 only the condition of France and Italy, but many of us 
 have seen the devastated territories; we have seen the 
 destruction that has been waged and we all realize that 
 reconstruction can only take place by common sense, 
 good will and the determination of those Allies who 
 fought for the preservation of civilization. Gentlemen, 
 the world is large enough, the job big enough, for all of 
 us to put our shoulders together to see how we can work 
 for the common weal; and I, knowing America as I do, 
 have not the slightest hesitation in saying that if we all 
 pull together we can pull together we will reconstruct 
 these countries and hand them down to our descendants 
 not one whit worse than when we came into them. 
 
38 THE INTERNATIONAL TRADE CONFERENCE 
 
 Meeting of All Committees. 
 
 Monday, October 20, 1919. 
 
 A general meeting of all the committees was held in 
 the Belvedere Room of the Hotel Traymore at 10 A. M., 
 October 20, presided over by Mr. Alfred C. Bedford, chair- 
 man of the Executive Committee of the International 
 Trade Conference, as a prelude to the intensive work of 
 the various topical committees. 
 
 Address of Mr. Alfred C. Bedford. 
 
 We began today the practical work for which this 
 Conference was assembled. We divide into committees, 
 which will consider intimately and minutely the very 
 practical problems which confront us in the re-establish- 
 ment of the world's trade. 
 
 And at the very outset I would like to suggest some- 
 thing of the point of view of the American business man 
 in his approach to these great questions. We in America 
 appreciate the enormous sacrifices made by our Allies in 
 fighting the war; we know how your blood and your 
 treasures poured forth without stint. We know that the 
 end of the war finds your great countries with huge 
 national debts, and with needs of the most pressing char- 
 acter for raw materials and food. We appreciate that 
 the supreme need of the world is that Europe and 
 America shall be restored to the utmost productivity 
 without a moment's delay,, and that to accomplish that 
 there must be cooperation between Europe and the 
 United States. 
 
 America was late in entering the war, but when we 
 did enter we sought to bear our full responsibility. Now, 
 the responsibilities of victory rest upon our shoulders 
 quite as much as did the responsibilities of war. The 
 American people realize that the paths of destiny call us 
 
THE INTERNATIONAL TRADE CONFERENCE 39 
 
 to a comprehension of the problems of the world at 
 large. The American business men are fully conscious 
 of the truth of President Wilson's statement that the 
 destinies of the world will henceforth in large measure 
 rest with those who conduct the commerce of the world. 
 
 We feel that there is a new call to arms to the Ameri- 
 can business man to enlist in the cause of re-establishing 
 economic order and of maintaining peace and social 
 progress. We want to join in this cause with the busi- 
 ness men of France, of England, of Belgium and of Italy. 
 
 Those gathered here are business men, practical men. 
 We come together in a spirit of the warmest friendship 
 and desire to cooperate. That is the keynote of the call 
 of this Conference. Sentiment rules the world, in busi- 
 ness as in all else. And yet as business men we are accus- 
 tomed to consider the practical details of the problems 
 which come before us. Let us see, then, if at the very 
 outset of our deliberations we cannot set forth a few of 
 the fundamental facts and considerations which must 
 underlie all our conclusions. 
 
 We are told that, by reason of the high prices prevail- 
 ing here and the high rate of exchange, it may be found 
 necessary for some countries to buy in other countries 
 than our own. 
 
 Gentlemen, let us be frank, for I am sure you would 
 want me to be nothing less. We of the United States 
 are eagerly desirous of extending our trade wherever it 
 can be wisely and legitimately done, but we would be the 
 last to suggest that any nation should buy our goods if 
 they can obtain the same goods under better terms else- 
 where. We of the United States feel that if we are to 
 induce the world to buy our goods, we must meet the 
 competition of the world fairly, honestly and openly. 
 Every nation should buy in the best possible market, and 
 the future health of the commerce of the world depends 
 upon a thorough-going application of the principle. But 
 we are eager for your trade, as we are sure you are for 
 ours. We want you to have our goods and we want to 
 buy yours. 
 
40 THE INTERNATIONAL TRADE CONFERENCE 
 
 We are conscious that no problems will come before 
 this Conference of more serious moment than those of 
 foreign exchange and foreign credits. To discuss these 
 with you in a spirit of cooperation and friendliness we 
 have invited to meet you here some of our leading finan- 
 ciers. These delicate questions of credit and exchange 
 are essentially bankers' problems and we want you to 
 consider them with our bankers in the spirit in which 
 they will meet you, and that is one of an earnest desire 
 to make some progress in solving the complicated situa- 
 tions which confront both you and us. 
 
 We realize the necessity of extending credits, and we 
 are most eager to find a practical way out of this puz- 
 zling situation. We realize the necessity of international 
 cooperation among business men, cooperation of a kind 
 we have never had before. We want to work out these 
 problems with you as friends and as co-laborers. 
 
 You will have much to tell us of conditions in your 
 countries, and of how we can aid each other. But on 
 certain points we shall be peculiarly interested to have 
 information. 
 
 1. What are the menances of social order and stability 
 in the different countries of Europe today? Have the 
 dangers of Bolshevism or Socialism passed? Is there any 
 danger anywhere of the confiscation of private property, 
 the non-recognition of the rights of ownership and busi- 
 ness management, or the annulment of law ? The success 
 and permanency of business yes, its very life is de- 
 pendent upon the stability of government. With refer- 
 ence to these points, my own confidence is perfectly 
 secure with reference to the nations represented here. 
 But in these questions the business men of America are 
 very deeply interested. 
 
 2. What are to be the relations between government 
 and business in the respective countries ? Will the various 
 nations in their reconstruction efforts stabilize relations 
 between government and business that will recognize that 
 commerce is the greatest of all interests, and will their 
 relations be based on such a statesmanlike conception? 
 What will the attitude of the various governments be 
 toward the American industry and commerce? Will it 
 be accorded freedom of trade, and equal privileges and 
 
THE INTERNATIONAL TRADE CONFERENCE 41 
 
 opportunity, or will it be threatened with restriction of 
 imports, and the menace of government control or mo- 
 nopoly ? 
 
 3. One of the methods by which future financial co- 
 operation between America and Europe can be realized 
 is by having our people invest their money in your enter- 
 prises, just as Europe formerly did in ours. We want to 
 put our treasures with yours and take "pot-luck" with 
 your people in realizing success with our enterprises. 
 The whole of American industry is open to the invest- 
 ment of the world. We extend complete hospitality to 
 capital from every nation. I submit that one of the 
 surest roads to complete international cooperation is full 
 reciprocity in this particular. 
 
 4. Nothing is further from our thoughts than inter- 
 ference or dictation in the affairs of Europe. And yet 
 our people will be vitally interested to know with regard 
 to the particular countries, whether they propose in the 
 future to lower the cost of production through standard- 
 ization and modern methods, what are the prospects for 
 improved relations between capital and labor, and what 
 is to be the probable policy in each country toward the 
 cultivation of foreign markets, the purchasing of raw 
 materials and the establishment and promotion of new 
 industries. On our part, we want you to see our country 
 and to know our business men, that we may know your 
 needs and may learn how we can help meet them most 
 effectively. We want you to know our needs also. We 
 have much to learn from you and we hope you won't 
 mind us asking infinite questions. 
 
 Each of us, gentlemen, approaches the deliberations of 
 this Conference in a constructive spirit. We are most 
 eager that out of this Conference will grow practical 
 measures enabling us to cooperate with you, to extend 
 all necessary credits, and to work with you in solving 
 the problems which underlie the construction of civiliza- 
 tion. 
 
 A story is told perhaps you may have heard it a 
 story of a man who found himself in the depths of a 
 deep forest thick with undergrowth, difficult of penetra- 
 tion. He labored and struggled, and after much priva- 
 tion and hardship and starvation finally came out upon 
 the borders of a broad river; and on the opposite bank 
 
42 THE INTERNATIONAL TRADE CONFERENCE 
 
 he saw a beautiful country under cultivation with run- 
 ning waters and bright sunshine, and happiness ; but be- 
 tween him and that country lay this broad river, a rapid- 
 running stream with whirlpools in it, rapids,, and, above 
 all, what seemed to him the most impractical proposition 
 for him to overcome : jagged rocks around which the cur- 
 rent swirled and tore. However, he did not hesitate, but, 
 gathering up his remaining strength, he plunged into 
 the waters to reach the other side. It seemed as though 
 he would be swept away, but managing to catch upon the 
 first of these great rocks he was enabled there to catch 
 his breath and regain a little of his strength. And so 
 he progressed until finally, though practically exhausted, 
 he got upon the other side and on the promised land; 
 and, looking back, he then realized that many of the 
 obstacles which he had overcome, especially those last 
 obstacles, were merely the stepping stones to his success. 
 
 Gentlemen, we have been through the deep and dark 
 forest of a terrible war in which we have found quag- 
 mire, and swamps and desert, and in it a wild beast 
 which has not only destroyed life, but torn women and 
 children and men asunder and taken them away from 
 our midst, and yet,, in spite of it all, we have struggled 
 out through the forest and now we stand upon the brink 
 of the river and we see the promised land before us 
 where there is peace and prosperity, and happiness. 
 
 Gentlemen, the problems which we are to discuss today 
 are our rocks, but I know, and you know, that we can 
 overcome them, and perhaps when we attain the prom- 
 ised land we shall find, after all, they were merely step- 
 ping stones to our progress. 
 
 Mr. Bedford: Now, gentlemen, I am going to call on 
 John H. Fahey, chairman of the Program Committee, to 
 make an announcement relative to the method under 
 which we will proceed with our Conference. 
 
THE INTERNATIONAL TRADE CONFERENCE 43 
 
 Address of Mr. John PI. Fahey. 
 
 Mr. Chairman and Gentlemen: With the vast task that 
 lies before us, and the many complications which we con- 
 front, and the necessity of overcoming the obstacles 
 which confront us, if we are to be successful, I am sure 
 you will all understand the necessity of the plan we have 
 here for this series of group committee meetings in ad- 
 vance of the general public session of the Conference. 
 
 For many weeks,, suffering under the disadvantage of 
 communication by cable and wireless with our friends on 
 the other side, we have been trying to work out this pro- 
 gram of committee meetings so as to serve the purposes 
 of this great gathering with the greatest possible advan- 
 tage. Our American committees have been under the 
 advice of our Executive Committee and Program Com- 
 mittee as a result of many suggestions, to the end that 
 they may be truly representative of each of the great 
 industries of the country, taking up the subjects under 
 the several topic committees; and now we have laid out, 
 after discussion with our guests from the other side, this 
 series of meetings. We secured from the printers only 
 this morning a pamphlet giving the personnel of the 
 committees and the hours fixed for the various committee 
 meetings. These pamphlets have been distributed 
 among you. You will observe as you look over 
 the pamphlets that we have included the com- 
 plete personnel of all the distinguished missions from the 
 other side, and likewise of our own corresponding Ameri- 
 can committees. We have also put aside separately, on 
 a page by itself, the time-schedule of committee meetings 
 for each mission on each of the separate topics to be 
 taken up, such as foodstuffs, reconstruction supplies, pe- 
 troleum, textiles, shipping, credit and finance, and the 
 other subjects with which we are dealing. So,, by refer- 
 ence to this pamphlet, every committee member can read- 
 ily see the meeting time for the committees on which he 
 
44 THE INTERNATIONAL TRADE CONFERENCE 
 
 is serving. In like manner, please understand, each of 
 the foreign missions has a definite headquarters in the 
 hotel for its own meetings. For instance, the meeting 
 of these special committees in each case on a given sub- 
 ject is always in one room. For example, the committee 
 on textiles has a designated headquarters and there the 
 several committees on that subject will meet throughout 
 the Conferences. 
 
 These committee meetings will be executive sessions. 
 They are not open, public sessions. In the first place, you 
 gentlemen will realize from the business standpoint that 
 it is not wise, has not been wise to make committees that 
 were too large in size because at best the time at our dis- 
 posal for the discussion of these most important subjects 
 is all too brief, and if the membership of these commit- 
 tees were unduly expanded you could not make progress. 
 Again, you cannot invite the members generally if you 
 are going to get real results out of these committee meet- 
 ings. However, it is absolutely essential that all par- 
 ticipating in these committee meetings should feel free 
 from any restraint to discuss very fully and frankly 
 whatever is in their minds. Therefore it was agreed on 
 all sides that these committee meetings should be execu- 
 tive sessions ; that admission to them would be by creden- 
 tials alone of those who have been appointed as members 
 of these committees and it is impractical to change the 
 committee or to add to their membership at the present 
 time. I am speaking now especially of the American 
 Committees. If it were within our power, and if it were 
 a practical thing to do, the Executive Committee would 
 have been glad to invite scores and hundreds for these 
 meetings, because of the advantage that would come to 
 them, but as business men you all appreciate how im- 
 practical that would be. Therefore, admission will be 
 by credentials and each of you gentlemen on these com- 
 mittees will receive a credential card admitting you to 
 these committee meetings. It would be well for you to 
 have these cards on hand so that there will be no diffi- 
 culty about obtaining admission. 
 
THE INTERNATIONAL TRADE CONFERENCE 45 
 
 It is, of course, necessary that the press and the public 
 be advised as to the progress of these committee meet- 
 ings. Therefore,, arrangements have been made so that 
 at the conclusion of each session a brief digest of the 
 progress made can be prepared and issued to the press 
 under the supervision of the Chairman of Vice-chairman 
 of the foreign committees and our committees, so that we 
 will all be thoroughly posted and understand the progress 
 being made. 
 
 Another thing to be provided for is the matter of reso- 
 lutions, or statements to come in to the general confer- 
 ence. A resolutions or clearance committee will be ap- 
 pointed representing our committees and representing 
 the committee from the foreign missions, and any ex- 
 pressions of opinion which are developed in your separ- 
 ate committees can be prepared and sent to that resolu- 
 tion committee for consideration. It is obviously neces* 
 sary that they should clear through such a committee in 
 order that there will not be a duplication of expression, 
 and in order that conflict will therefore be avoided. 
 Those resolutions can be of such character as appeal to 
 you men as being necessary to this occasion. However, 
 in many cases it is clear that because on particular sub- 
 jects the men present representing American interests 
 represent all of those interests in the United States and 
 understand what the conditions are ; and your committees 
 in turn are of like character; that whatever understand- 
 ings they arrive at as to plans which may be formulated 
 are, generally speaking, of particular interest to the in- 
 dustry and are not of necessity of interest to the entire 
 gathering. But that is wholly a question of judgment, 
 and you gentlemen will decide for yourselves as to the 
 wisest course in dealing with these resolutions. 
 
 Let me say in conclusion that the Program Committee 
 and the Executive Committee have established headquar- 
 ters in the Rose Room at the rear of the lobby down 
 stairs, and there Mr. Phelps, the Executive Secretary for 
 the Committee, and Mr. Bedford and myself, or through 
 that headquarters, will be constantly available to any of 
 you gentlemen for information concerning any matter or 
 
46 THE INTERNATIONAL TRADE CONFERENCE 
 
 matters which may arise in connection with the program, 
 or resolutions, and for anything that may add to your 
 comfort and convenience in making progress with this 
 most important work. 
 
 I would like to say also that if any questions should 
 arise among you gentlemen as to the machinery of the 
 Committee's work or as to methods of handling the af- 
 fairs of this Convention we would be glad to answer that 
 to the best of our ability. 
 
 Mr. Bedford: Gentlemen, it seemed wise,, at this time, 
 when we had you all together, that,, in order to facilitate 
 the work of one of our most important committees we 
 should ask the Chairman of that committee to make a 
 statement to you in order to avoid his having to really 
 repeat it. That, of course, will save, not only the time 
 of the committees getting down to practical matters, but 
 will also give to you all a viewpoint of the Chairman of 
 the Committee on Finance and Credit. I take great pleas- 
 ure on calling on Mr. James S. Alexander, President of 
 the National Bank of Commerce of New York, the Chair- 
 man of that committee who will now address you. 
 
 Address of Mr. James S. Alexander. 
 
 I want to extend a most cordial welcome to our friends 
 from Europe who have undergone the trouble and in- 
 convenience of so long a journey to give us the benefit of 
 expert and personal viewpoints on conditions in their re- 
 spective nations. We have assembled a strong and rep- 
 resentative group to confer with them. We are here as 
 a committee of the Chamber of Commerce of the United 
 States to discuss, I hope, with a mutual frankness that 
 will preclude any reserve on either side, the state of trade 
 between America and Europe. 
 
 I assume we are all agreed that there is serious mal- 
 
THE INTERNATIONAL TRADE CONFERENCE 47 
 
 adjustment in the machinery of international commerce. 
 I think we can all agree, in general terms, as to the fun- 
 damental nature of the maladjustment; and I hope we 
 shall be able to define and analyze, in broad terms at 
 least, the ways and means available for promoting and 
 hastening the return of normal trade conditions. 
 
 This in no sense means that we are going to attempt to 
 offer to those engaged in foreign trade a cure-all. We 
 cannot provide, nor would it be advisable to do so if we 
 could, any single scheme or special method of financing 
 trade between Europe and America which did not relate 
 itself wholly to the orderly processes of commerce as 
 they have grown and will grow out of the basic inter- 
 changes between peoples. World trade is based upon ele- 
 mentary principles which have not been rendered inap- 
 plicable by the war. We must remove the unusual con- 
 ditions which prevent these principles from functioning. 
 If any new machinery is set up we must have constantly 
 in mind that it is simply a temporary scaffolding which 
 will be removed when the main structure of trade has 
 been repaired and put once more in working order. 
 
 When we refer to normal conditions we do not neces- 
 sarily imply a return to a pre-war basis; for some 
 changes wrought by the war will be found to have be- 
 come an intregal part of the new order of things. Even 
 in the throes of war the world has continued to progress. 
 Some good has come out of evil times. Therefore, we 
 must look to the present and to the future, as well as to 
 the past, to guide us in our analysis of the vital factors 
 in world trade as we shall from now on come in contact 
 with it. 
 
 Normal commerce between nations means the free in- 
 terchange of such commodities and services are to be de- 
 termined by natural factors to be reciprocally profitable 
 and beneficial. What is normal today is largely what can 
 be done profitably today, or what cannot be left undone 
 today without prejudicing what will be required to- 
 morrow. We face things as they are, and with no idea 
 of doing business on the basis of things as we would 
 
48 THE INTERNATIONAL TRADE CONFERENCE 
 
 wish them to be. We must face them as they are, aiming 
 to adapt them and ourselves to a practical working basis. 
 
 Let us consider briefly some basic elements in the sit- 
 uation which has called us together. During the war, 
 and since the armistice, we have been sending to Europe 
 an enormous excess of exports. In the ten months pre- 
 ceding the armistice, so far as the published fig- 
 ures go, our exports exceeded our imports by about 
 $248,000,000 a month. Since the armistice the figures 
 have risen. In January our balance was $409,000,000, 
 in April it was $442,000,,000, in June it rose to the aston- 
 ishing figure of $625,000,000. Exports in that month 
 were $918,000,000 and imports were $293,000,000. Our 
 average export balance for the first eight months of 1919 
 was around $400,000,000 a month. All of this excess and 
 something more, has been in our trade with Europe. 
 Thus, in April we sent Europe $500,000,000 worth of 
 goods and received back from Europe $43,000,000 worth 
 of goods, a balance of $457,000,000 where our balance 
 with the whole world was $442,000,000. 
 
 When the situation is viewed from the other side, even 
 more striking figures appear. France imported over 
 12,000,000,000 francs' worth of goods in the first six 
 months of 1919 and exported only a little over 2,000,000,- 
 000 francs' worth of goods, leaving her an adverse bal- 
 ance of trade of nearly 10,000,000,000 francs. Similar 
 proportions appear in the export and import figures of 
 Italy. Great Britain has had, during the first eight 
 months of 1919, an adverse trade balance equivalent to 
 something over $2,000,000,000. 
 
 Our exports in Europe have changed in character 
 radically since 1913. Before the war we sent Europe 
 largely crude food stuffs and raw materials. Today we 
 are sending Europe very largely food stuffs partly or 
 wholly manufactured, and finished manufactures. In 
 other words, we have been, since the armistice, sending 
 Europe chiefly goods for immediate consumption rather 
 than those things which she could use setting her indus- 
 try going. 
 
THE INTERNATIONAL TRADE CONFERENCE 49 
 
 It is axiomatic that what is bought must be paid for 
 and that nations engaged in foreign trade in the large 
 run pay for imports by exports. The existing unpaid and 
 unbalanced state of trade between America and Europe 
 has been made possible by credits granted by the United 
 States Government to the Governments of Europe. These 
 credits have largely ceased to be available for the sup- 
 port of the export trade, and our exports are now going 
 to Europe largely on open account. There has come, as a 
 consequence, a dramatic break in virtually all the Euro- 
 pean exchange rates, and the foreign exchange markets 
 are badly demoralized. It is recognized on the part of all 
 of us that in the absence of special emergency measures 
 the exchange rates will continue to fall until American 
 exports to Europe are so checked that imports will pay 
 for them. 
 
 In addition to paying for her excess of imports over 
 exports Europe has the problems of meeting interest pay- 
 ments in the United States, and the problem of paying 
 maturing capital obligations. Many of the countries of 
 Europe are heavily burdened with shipping cargoes in 
 addition. Practically all these "invisible items" in the 
 international balance of indebtedness, freights, interest 
 payments, banking commissions, travelers' expenses and 
 the like have been altered to Europe's disadvantage in the 
 last five years. 
 
 The pressure on the exchanges is very heavy and the 
 obstacles in the way of getting needed exports to Europe 
 are correspondingly great, and it is this situation with 
 which we have to deal. 
 
 The exports and imports of one kind or another in the 
 commerce of the world do not, from the point of view of 
 any one nation, give evidence of trade, of exchange of 
 commodities on a reciprocal and balanced basis. Tnere- 
 f ore I think we can be specific in our agreement that the 
 chief abnormal international trade factor is this alarm- 
 ingly unbalanced interchange of trade that the balance 
 of trade is too favorable to the United States and too ad- 
 verse to Europe for the best interest of both,, and that 
 
50 THE INTERNATIONAL TRADE CONFERENCE 
 
 the correction of the exchange situation resulting from 
 this one-sided trade balance will find its natural and 
 permanent solution only through a reduction of our ex- 
 ports or an increase of our imports until a point of ap- 
 proximate equilibrium is reached. 
 
 It is a difficult task. What are the elements involved 
 in our attempt to meet it? First of all, regarding the 
 official phase of the situation that is, the cessation of 
 United States Government loans to European nations- 
 Federal Reserve officials have said that "Europe's needs 
 should now be supplied through the private initiative of 
 foreign manufactures, merchants, and bankers dealing 
 with similar American groups and not through the con- 
 certed efforts of the governments concerned that from 
 the viewpoint of the United States, the ability of our 
 government after completing its own war financing to 
 assist foreign governments without vast inflation and 
 consequent danger to our own credit is problematic." 
 
 I have quoted this passage from governmental au- 
 thority because it contains a definite suggestion that is, 
 that the time has come to turn away from outright gov- 
 ernment financing of international commerce, and to re- 
 sume once more a course of private enterprise and initi- 
 ative; to turn as rapidly as possible from an abnormal 
 basis back to the normal basis of peace. 
 
 Practical measures are well advanced in this country 
 to facilitate and expedite this transition, but probably no 
 comprehensible plans will be definitely formulated until 
 the Treaty of Peace is signed. To mention only one of 
 the measures under discussion, the Edge Export Finance 
 Bill, before Congress, aims, in essence, to make possible 
 the organization, under Federal incorporation of the in- 
 strumentalities for a larger volume of international com- 
 mercial transactions on a credit basis. As explained by 
 Senator Edge, the American manufacturer or exporter 
 will sell his goods to European buyers and will accept 
 collateral satisfactory to an American corporation or- 
 ganized under the Edge bill ; against this collateral the 
 corporation will issue debentures to be sold to investors, 
 
THE INTERNATIONAL TRADE CONFERENCE 51 
 
 and by this process the American manufacturer or ex- 
 porter will be paid. 
 
 The general outlines thus laid down seem to represent 
 one form of coordination, of assisting business facilities 
 to handle present international commercial needs along 
 lines that will hasten the return of business ultimately to 
 a basis that will require no special machinery. I take it 
 that is just what business men on both sides of the water 
 are really after today. 
 
 From the point of view of France this thought has 
 been set forth recently from Baron de Neuflize,, whose 
 words have been widely read throughout the United 
 States and accepted as presenting a sound view of the 
 situation. He has said : 
 
 "Now, the first thing for taxation is not taxes. Our 
 Government problem is to get taxable income. Taxing 
 it afterwards is easy, provided the political situation is 
 straightened out, and this, as I have shown you, will hap- 
 pen next fall. 
 
 "Therefore, the real question comes to this : Will there 
 be a big enough taxable income in France, or in other 
 words, are French people working ?" 
 
 Elsewhere he says: 
 
 "France does not want charity and does not ask for it. 
 It is a business proposition. It is as such that we ask 
 the American people to look into it." 
 
 It is a business proposition, and we should aim here to 
 facilitate and expedite the re-establishment of our busi- 
 ness with the nations of Europe on a business basis. 
 That basis will be best for the United States, and it will 
 be best for every country in Europe. We do not need 
 to say to our guests that there is unlimited good-will in 
 America toward England, France, Belgium and Italy 
 just as large and warm a heart beats in this country as 
 during the war; but with the return of peace the minds 
 of the people have turned again to the normal pursuits 
 
52 THE INTERNATIONAL TRADE CONFERENCE 
 
 of business and industry which were completely inter- 
 rupted during war times. We are trying to put our own 
 house in order. 
 
 But we know our friends from Europe well enough to 
 believe that they very generally recognize the fact that it 
 is best for them to get money on a basis that is determin- 
 able and permanent. Our good will insures our making 
 every possible effort toward reaching a speedy solution 
 of present uncertainties. But the solution itself must 
 rest, not upon a basis of settlement, but rather upon a 
 foundation of economic facts, of common sense, and 
 sound commercial practice. 
 
 The nations of Europe want credit, but they are not 
 seeking primarily credit for today, but rather a funda- 
 mental credit understanding, a system of credit which 
 they can trade upon and make commitments upon. They 
 want to know they can count on help based not upon a 
 general impulse of the moment, but upon the more per- 
 manent, if not impersonal, desire of men to trade with 
 one another on the basis of mutual profit and satisfac- 
 tion. This is a staff they can lean upon. Any commer- 
 cial arrangement grounded solely upon the uncommercial 
 and shifting element of good will and friendly sentiment, 
 no matter how firm and true that sentiment may be, will 
 in the end prove unsatisfactory. 
 
 This brings our attention to another cardinal element 
 in the solution of our problem. It is an element which 
 I can touch upon frankly without appearing to be offer- 
 ing advice to our good friends from overseas; for this 
 lesson is of as vital importance to America at this mo- 
 ment as to any nation in the world. I refer to the neces- 
 sity of the greatest possible number of people doing a 
 day's work and of the greatest possible conservation of 
 the results of that work. The motto "work and save" 
 represents in every sense a national necessity with us. 
 
 The Federal Reserve Board has declared that the 
 whole situation is one that can be met only if the neces- 
 sity of working and saving is "taken to heart by every 
 class in the nation and made its guiding principle until 
 
THE INTERNATIONAL TRADE CONFERENCE 53 
 
 the trying conditions left by the war are finally sur- 
 mounted." This doctrine, enunciated for the people of 
 the United States by the most important official financial 
 body in the nation, may well be repeated to the people of 
 the whole world. It is a thought that will give us sound 
 guidance, for in a sense never before so universally ap- 
 plicable, industry and thrift are in this aftermath of 
 war's destruction, essential not only to the happiness, but 
 even to the very existence of the human race. Never was 
 an economic proposition more simple and self-evident. 
 
 That this view is officially shared abroad has been 
 manifested in many ways. Our government officials em- 
 phasize particularly the words of the British Chancellor 
 of the Exchequer who, in presenting a recent budget, 
 said: 
 
 "The deposits at the joint-stock banks have more than 
 doubled. The position of these banks, judged by every 
 approved criterion of sound banking, is stronger than it 
 ever was before, but the securities British Govern- 
 ment securities standing behind the deposits, standing be- 
 hind the legal-tender money represent to a large extent 
 not existing wealth, but wealth consumed in the oper- 
 ations of the war, which it must be our business to re- 
 place out of the exertions of the present. Both are drafts 
 on future labor, on the future creation of wealth." 
 
 This doctrine of thrift and industry is applicable, I 
 think we may all agree, equally to conditions in all the 
 nations engaged in the war; and the encouragement of 
 its practical application is the primary step in any pro- 
 gram of reconstruction. We may as well face the fact 
 that the majority of our loans to the nations of Europe 
 are secured at the present time solely by the probability 
 of future productive work. The people of Europe can 
 repay those loans made to them by the people of America 
 only by producing raw materials and manufactured 
 articles,, by saving, by sound policies of taxation. The 
 same policies must and will be adopted in the United 
 States. But the world situation cannot be helped one 
 iota by all the planning and discussion and clear think- 
 
54 THE INTERNATIONAL TRADE CONFERENCE 
 
 ing of the combined bankers and business men of the 
 world unless all the people of the world return to their 
 healthy and normal tasks and begin to do a day's work. 
 We must stop leaning on our Government and depend 
 upon ourselves. 
 
 I would repeat that the solution of the problems we are 
 here to discuss seems to demand as a chief element the 
 maximum of industry and thrift within the nations; it 
 calls for the restoration of a greater degree of equilibrium 
 in the commercial interchange between the United States 
 and the countries of Europe; the cessation of our gov- 
 ernment financing for foreign purchases here; the en- 
 couragement of private enterprise and initiative in place 
 of government assistance, and the provision of a larger 
 measure of long-time credit to finance the foreign pur- 
 chases of American goods until such time as Europe 
 can pay for what she buys approximately by what she 
 sends us. 
 
 These are, as I understand them, the raw materials for 
 us to work upon here. If we can coordinate these ele- 
 ments and arrive at a common understanding as to the 
 bearing of each upon the problem of foreign trade and 
 international credit, I believe we shall have materially 
 advanced the discussion of this important phase of the 
 present economic situation. I hope this understanding 
 will serve as a basis for definite practical steps in the 
 months to follow. 
 
 Mr. Bedford: I wish to thank Mr. Alexander for this 
 very sound and admirable exposition of the proposition 
 before us. 
 
 I am reminded of one of the great crises in our own 
 country and the famous words with which it was met : 
 
 "The way to resume is to resume." 
 
 The way to establish normal relations is to establish 
 them; and it seems to me we can safetly take for our 
 text that what we want to do now is to do the sound and 
 natural thing, and to that end we will address ourselves. 
 
International Trade Conference 
 
 First General Meeting. 
 
 The first open session of the Conference took place at 
 Young's Pier, at 8.15 o'clock, Wednesday evening, Octo- 
 ber 22,, with some 3,000 members of the Chamber of 
 Commerce of the United States present, coming from all 
 sections of the country, foreign commissions and invited 
 guests. 
 
 The Conference was formally opened by Mr. Alfred C. 
 Bedford, chairman of the Executive Committee, who 
 spoke as follows : 
 
 Ladies and Gentlemen: This is the first public ses- 
 sion of this International Trade Conference to which you 
 have been invited. During the week, beginning with 
 Monday, there have been in conference here with the dis- 
 tinguished delegates from abroad committees represent- 
 ing some of our most distinguished business men and 
 bankers who have been going over with these gentlemen 
 from the other side many of the most important ques- 
 tions in which they and you are all interested. These 
 committees were as follows: The Committee on Credit 
 and Finance, the Committee on Chemicals, the Com- 
 mittee on Coal, the Committee on Foodstuffs, the Com- 
 mittee on Metals, the Committee on Petroleum, the Com- 
 mittee on Textiles, the Committee on Reconstruction Sup- 
 plies, the Committee on Shipping, and the Committee on 
 Permanent Organization. These committees through 
 their chairman will make reports to the Conference be- 
 ginning with the session on Thursday, and throughout 
 the session of Friday. 
 
 When I was asked to make a few brief remarks at the 
 opening of this Conference, I thought that possibly out 
 
56 THE INTERNATIONAL TRADE CONFERENCE 
 
 of compliment to some of our friends from abroad, who 
 perhaps are not as familiar with the English language 
 as they are with the French language,, that I might try 
 to make it possible for them to understand the few words 
 I may have to say by saying them in French, but one of 
 my associates reminded me of the sign which they put up 
 in Italy to this effect: "Speak English. We do not un- 
 derstand college French." So that, while my good friend, 
 Mr. Hankar, chairman of the Belgian delegation, ex- 
 pressed the wish that some addresses might be in French, 
 I have given him my French speech, and I will give you 
 the English one so that he can follow it. 
 
 It is with peculiar pleasure that, as an American busi- 
 ness man and as an officer of the Chamber of Commerce 
 of the United States, I welcome to this Conference the 
 distinguished business men who come to us from over- 
 seas. As President Wilson so aptly said at Turin last 
 winter : "The men who do the business of the world now 
 shape the destinies of the world," and I think it may 
 be truly added that upon the shoulders of the men repre- 
 sented in this Conference more than upon those of any 
 other group, will rest the welfare, certainly of the United 
 States and Europe, for the next quarter of a century. 
 
 The committee meetings of the past few days have 
 evinced very clearly the fact that the members of this 
 conference have approached their deliberations here with 
 a consciousness of unusual responsibility. And now as 
 we enter upon the larger and more definite of our discus- 
 sions it is appropriate to express the thought that we are 
 met here for purposes affecting the very foundations of 
 our civilization. 
 
 This may properly be called an International Congress 
 of Business a conference, in conception and potentiality 
 probably without precedent. We come together at a mo- 
 ment of great change. No man can tell what the morrow 
 may bring forth, but it is certain that there is a search- 
 ing of men's hearts going on throughout the world. 
 Every institution and every relationship of our civiliza- 
 
THE INTERNATIONAL TRADE CONFERENCE 57 
 
 tion is being subjected to the acid tes'/ of a new point of 
 view. 
 
 Some of the early economists u^ed to teach that a 
 nation grew wealthy in proportion to the difference be- 
 tween the amount of goods it sold to other nations and 
 the amount it purchased from them. In other words, the 
 size of the export "balance of trade" was the measuring 
 rod of national progress. Later, Adam Smith and those 
 who followed him taught that a nation must not only sell 
 to the world, but that it must buy from the world, and 
 that the ideal situation was not represented by a huge 
 "balance of trade," but by a volume of trade at a vir- 
 tual equilibrium between what was sold and what was 
 bought. 
 
 This war has taken us a step farther in the develop- 
 ment of our thoughts. We now realize that it is not only 
 necessary to sell to the nations of the world and to buy 
 from the nations of the world, but that we have a direct 
 interest in actually promoting on its own account the pros- 
 perity of the world, not alone of that part of it com- 
 prised within our national boundary lines, but quite as 
 much the prosperity of lands remote from our own. 
 
 In a peculiar sense is this true of our immediate inter- 
 est in the reconstruction and revival of the economic 
 health and prosperity of those countries which have been 
 our Allies during the war. In the course of the war the 
 United States came to see that the salvation of its own 
 life and independence lay in going with force of arms to 
 the aid of England, France, Italy and Belgium. Had 
 those countries been engulfed in defeat, the disaster 
 would have soon overwhelmed us and civilization would 
 have been put back many centuries. When we did go to 
 the aid of those who were fighting the battle of liberty 
 and security, we went whole-heartedly and with but one 
 thought in mind, and that was that the cause into which 
 we had thrown ourselves must triumph beyond the pos- 
 sibility of question. 
 
 At this moment, although Germany has been van- 
 quished, civilization is still threatened by insidious forces,, 
 
58 THE INTERNATIONAL TRADE CONFERENCE 
 
 not from without but from within. Strange doctrines are 
 abroad. The serious deprivations of war have given rise 
 to counsels of despair. The reaction from the spirit of 
 unselfishness and comradeship of war has been toward 
 suspicion and expectations that cannot be fulfilled. We 
 find people who speak as if the destruction of our whole 
 moral and social fabric were impending. Not for a mo- 
 ment do I sympathize with such pessimism, and yet 
 Cardinal Mercier, before the Chamber of Commerce in 
 New York a few days ago, spoke significantly of the sin- 
 ister and destructive ideas which were falling on fruitful 
 soil in his own native Belgium. The same condition pre- 
 vails throughout Europe and evidences of its inroads are 
 not lacking in the United States. The nations of the 
 world face a common foe an enemy within us, a para- 
 site born of the war, and the destruction of which de- 
 pends upon our prompt resuscitation from the devasta- 
 tion of war. 
 
 Upon the business men of the world rests the duty to 
 see to it that these prophecies of despair shall not be 
 verified, and that out of the waste and destruction of war 
 there is reared a new world and a new prosperity which 
 shall insure for all time the welfare and happiness of 
 mankind. Upon these business men rests the opportu- 
 nity and the obligation to pursue a policy of such sym- 
 pathy and enlightenment that this new cancer in our 
 social and business life shall have no opportunity to grow. 
 
 To accomplish this reconstruction of the world the 
 United States must cooperate primarily with these key 
 nations, whose representatives meet here. Just as in war 
 the protection of these nations represented the safety of 
 the world, so today their revivification and prosperity 
 represent the salvation of the world and the salvation of 
 civilization. 
 
 The American people have a direct,, and, if you please, 
 selfish interest in bringing about the promptest possible 
 return to prosperity of England, France, Italy and 
 Belgium. There is, however, no desire on our part to be 
 other than helpful and no wish I am sure to undertake, 
 
THE INTERNATIONAL TRADE CONFERENCE 59 
 
 but rather to refrain from participation in the shaping of 
 policies in matters purely European. 
 
 This return of prosperity can be accomplished 
 
 First of all, by cooperation between our business men. 
 The petty jealousies, the short-sighted efforts to obtain 
 temporary advantage through questionable methods 
 anything else than whole-hearted mutual confidence and 
 cooperation cannot endure against the obligations of 
 the new day. We will be competitors, but let us be 
 friendly competitors. 
 
 Second, by a return by our people to a realization of 
 the dignity of labor. No nation that puts a minimum of 
 its strength into labor can hope to compete with another 
 that works at full blast. "To live, the world must pro- 
 duce more and talk less." 
 
 The spread of electricity and improvements in com- 
 munication, the development of transportation, the open- 
 ing up of opportunities for investment in every part of 
 the world, the activities of security markets in all the 
 great commercial capitals all are tending to make 
 trade less and less regardful of national lines. Just as 
 labor is coming to see that the permanent welfare of 
 labor in one country lifts the lot of the working man 
 throughout the world, so business men are seeing that the 
 development of their own interests cannot be confined 
 within mere geographical limitations. 
 
 This conference, if it accomplishes nothing else, will, 
 I hope, result in giving to the business men of the great 
 nations here represented more than ever before a world 
 point of view. A realization that business in the future 
 will call for the highest standard of efficiency and cooper- 
 ation, will make for the destruction of ignorant selfish- 
 ness and merely personal profit, and will be recognized 
 to have succeeded just to the extent that it makes men of 
 all nations realize their interdependence one upon the 
 other, and acts upon the faith that an intelligent self- 
 interest commands upon the part of each of us an active 
 regard for the happiness and welfare of every land on 
 this small earth. 
 
60 THE INTERNATIONAL TRADE CONFERENCE 
 
 At a critical moment of the war M. Clemenceau said 
 that victory would lie with the side which held out the 
 last quarter of an hour. But at the moment when the 
 armistice was signed M. Cheradam, another Frenchman, 
 very aptly remarked : "The last quarter of an hour is be- 
 ginning now." 
 
 The end of the war has been only the beginning of 
 strife, and we must face the problems as they come with 
 steadfastness, courage, and with an open mind in the 
 realization that only those nations can remain or become 
 great who are willing to face and solve those problems 
 and who do not hesitate to endure in order that final suc- 
 cess may be achieved. 
 
 Surely, here is a call to all of us to determine to make 
 this gathering worth while. Its basic note is patriotic 
 love, each for his own country ; that love which inspired 
 us all to give of our uttermost during the war, and which 
 shall find its highest and best expression in struggling 
 to realize the coming of the day when it really becomes 
 true that 
 
 "The war drum throbs no longer and the battle flags are furled, 
 In the Parliament of Men, the Federation of the World." 
 
 We welcome you, and we look forward to united efforts 
 growing out of this conference which will promote the 
 prompt reconstruction of economic life in Europe and the 
 establishment of our civilization upon such foundations 
 of trust and good will among nations as can never be 
 shattered. 
 
 Rules for the Conference. 
 The following rules were adopted: 
 
 1. Resolutions shall be received only from the duly 
 constituted committees of this Conference and must be 
 presented without reading or argument to the presiding 
 officer or secretary of the general meeting on or before 
 Thursday, October 23d, before 11.00 A. M. 
 
THE INTERNATIONAL TRADE CONFERENCE 61 
 
 2. There shall be a Committee on Resolutions, to which 
 all resolutions shall be referred, to be composed as fol- 
 lows : The chairman and secretary shall be appointed by 
 the presiding officer and shall be ex-officio members of the 
 committee. In addition, there shall be two members 
 chosen by each of the four visiting missions and eight 
 Americans chosen by the presiding officer. The commit- 
 tee is hereby empowered to originate resolutions, to re- 
 vise resolutions that have been referred to it, and to 
 report to the public sessions prior to the close of the 
 Conference such resolutions as, in their opinion, should 
 be adopted. 
 
 3. In debate on resolutions reported or other subjects 
 each speaker shall be limited to ten minutes and no 
 speaker shall speak more than once on the same motion 
 except by unanimous consent. 
 
 4. Except as otherwise specified in the foregoing para- 
 graphs, Robert's Rules of Order shall govern the pro- 
 ceedings. 
 
 Resolutions Committee. 
 
 The Committee on Resolutions was announced, as fol- 
 lows: Joseph H. Defrees, chairman; Elliot H. Goodwin, 
 secretary. 
 
 British Mission: Sir Arthur Shirley Benn and Sir 
 James Hope Simpson. 
 
 French Mission: M. Eugene Schneider and M. A. Tir- 
 man. 
 
 Belgian Mission : M. Florimond Hankar and M. Canon- 
 Legrand. 
 
 Italian Mission: Dr. Ferdinand Quartieri and Grand 
 Officer Professor Bernardo Attolico. 
 
 United States: Dr. Lewis E. Pierson, Mr. George Ed 
 Smith, Mr. R. Goodwyn Rhett, Mr. James S. Alexander, 
 Mr. John H. Fahey, Mr. John Bassett Moore, Mr. E. A. 
 S. Clarke, and Mr. Willis H. Booth. 
 
62 THE INTERNATIONAL TRADE CONFERENCE 
 
 Resolutions. 
 
 The following resolutions, reported by the committee, 
 were adopted: 
 
 SALUTATIONS TO GOVERNMENT HEADS. 
 
 The International Trade Conference, composed of dele- 
 gates from Belgium, France, Great Britain, Italy and the 
 United States, begs leave to request the president of the 
 Conference to convey to the heads of the respective gov- 
 ernments respectful salutations and best wishes of the 
 members of the Conference collectively and individually 
 and to assure them of the deep interest of the Conference 
 in all that concerns the well-being and prosperity of the 
 respective governments and their peoples. 
 
 WITH REFERENCE TO PRESIDENT WILSON. 
 
 The International Trade Conference meets at this criti- 
 cal moment of the world's history to consider measures 
 for promoting the co-operative effort of the United States, 
 Great Britain, France, Italy and Belgium in reconstruct- 
 ing the trade of the whole world. 
 
 The function of trade in this process of reconstruction 
 has been expressed by no one with greater aptness than 
 by the President of the United States in his speech at 
 Turin, wherein he said: 'The future destiny of the 
 world rests in the hands of those who conduct the com- 
 merce of the world." When this Conference was pro- 
 jected it was confidently expected that President Wilson 
 would be with us at one of our sessions to develop fur- 
 ther that thought, and also to express the interest and 
 expectancy with which we know he viewed the coming 
 together of this notable gathering. We are also aware 
 of the keen concern felt by the President to the end that 
 everything possible shall be done to promote good-will 
 and co-operation particularly among those nations which 
 have stood side by side in war in the cause of civilization. 
 
 Those in attendance here whether from overseas or 
 from the various parts of our country have learned with 
 keenest regret of the President's illness. We have fol- 
 
THE INTERNATIONAL TRADE CONFERENCE 63 
 
 lowed the reports from his sick room with hope daily 
 renewed that each bulletin would record steady and 
 definite progress toward recovery. 
 
 It is accordingly the desire of this Conference as its 
 opening official act that there shall be recorded the ex- 
 treme disappointment of the International Trade Confer- 
 ence that President Wilson cannot be with us on this 
 occasion, and our profound hope and prayer that at the 
 earliest possible moment he may be restored to complete 
 health and comfort, equipped with renewed vigor to pro- 
 mote the cause of international good-will. 
 
 REGARDING THE DEATH OF COUNT Di CELLERE. 
 
 The International Trade Conference desires to record 
 an expression of the profound sorrow with which its 
 members, on the eve of the opening of the Conference, 
 learned of the sudden death in Washington on Monday 
 evening, October 20, of Count Macchi di Cellere, the 
 Italian Ambassador to the United States. 
 
 Uniting with ability of a high order an unusual training 
 and experience, Count di Cellere received his appointment 
 as Ambassador to the United States as the well deserved 
 reward of a distinguished career in his country's diplo- 
 matic service. His services at Washington, covering a 
 period of great responsibility, were as useful as they were 
 important, and materially contributed to the maintenance 
 of that cordial friendship which has so long and so hap- 
 pily characterized the relations between the two coun- 
 tries. Respected as an official and beloved as a man, his 
 untimely decease is mourned throughout the United 
 States. 
 
 To the members of the Italian Mission in attendance 
 at the Conference, their colleagues from Belgium, France, 
 Great Britain and the United States unite in extending 
 their sincere sympathy. 
 
64 THE INTERNATIONAL TRADE CONFERENCE 
 
 President Ferguson in the Chair. 
 
 Mr. Bedford introduced Mr. Homer L. Ferguson, presi- 
 dent of the Chamber of Commerce of the United States, 
 as chairman of the opening session. Mr. Ferguson said : 
 
 Ladies and Gentlemen: I have just arrived from Wash- 
 ington, and were I not down in the printed program as 
 chairman this evening, I think it would be taking very 
 unfair advantage of anyone to pick him up suddenly 
 from the midst of a labor conference and transfer him 
 bodily and in thought to an assemblage like this, which 
 is gathered together for purposes entirely of peace, and 
 with a harmony of feeling which I assure you is most 
 grateful. 
 
 During the past two weeks it has been quite impossi- 
 ble for anyone doing the work which I have tried to do to 
 think of remarks suitable to this occasion. I am not say- 
 ing this by way of apology, but I am simply telling you the 
 truth. However, it requires no preparation to assure 
 our distinguished visitors on the part of the Chamber 
 of Commerce of the United States that they are most 
 welcome, and to assure them that we are glad to see 
 them and hope that their entire time in the United States 
 may pass as pleasantly and as profitably as we believe the 
 past ten days have passed for them. 
 
 The other night we welcomed them in a home gather- 
 ing, where the directors of the Chamber greeted them 
 as guests. We became acquainted with them and were 
 pleased to have them tell us that after their official visit 
 is over they expect to come and see us again. We believe 
 that we are all well on the road to a permanent friendship 
 and acquaintanceship that will make gatherings such as 
 this not at all unusual, but to be expected and as neces- 
 sary to help carry out the part which business men the 
 world over must play in the reconstruction of the world 
 in putting it back on its feet again in a commercial and 
 economic sense. 
 
 Production on farms, in factories, in mines, and the car- 
 rying on of the transportation which is vital to produc- 
 
THE INTERNATIONAL TRADE CONFERENCE 65 
 
 tion this is all just as essential to us as it is to our 
 friends across the sea. While we are discussing labor 
 troubles and internal dissensions, it is just as well to 
 remember that labor troubles follow upon industry and 
 do not precede the establishment of business, but follow 
 it. Without business, without manufacturing, there can 
 be no labor troubles, and we believe that in the United 
 States without our foreign trade, without the safety 
 valve of our business, our enormous production not only 
 of food stuff's, but of manufactured articles, would recoil 
 upon us, and our labor troubles, even though serious as 
 they are, would be magnified tenfold by an over-produc- 
 tion here of manufactured goods and by unemployment; 
 so that we are just as deeply interested in keeping up a 
 foreign trade, particularly with our European friends, as 
 are our friends from Europe. Our internal affairs, in 
 particular our labor troubles, are not only influenced by 
 similar conditions abroad there is a most intimate con- 
 nection but are also influenced by our commerce with 
 our friends abroad, and we depend vitally upon the con- 
 tinuation of that commerce. Our friends are going 
 through the United States at the invitation of the Cham- 
 ber of Commerce of the United States and with joint 
 invitations from representative business associations in 
 the great cities; and in their tour to Philadelphia and 
 Baltimore and Washington, Pittsburgh, on west to Kan- 
 sas City and to Chicago, and back through the Great 
 Lakes, we want in friendly spirit to tell them that while 
 we have a great and fine country, it is a right difficult 
 country to understand, and if they really want to know 
 it well they will have to come again. 
 
 The United States cannot be summed up in a phrase, 
 and it is not a good subject for epigrams. Every four 
 years or so we make a valiant effort to determine what 
 people think about a subject, and even then everyone is 
 not satisfied, and many of us on the east coast have never 
 taken advantage of a trip West. We go to Europe, as a 
 matter of fact, instead, sometimes, and we do not know 
 so much about the United States; but at least we know 
 
66 THE INTERNATIONAL TRADE CONFERENCE 
 
 this, that important as may be the great cities and im- 
 portant as may be the great industries, the backbone and 
 the heart of the United States lies in the small cities and 
 in the towns and on the farms, and there if they should 
 stop perchance, they would find many, many people, mil- 
 lions of people, who have no dread of this specter of 
 Bolshevism, but think this is a bully country to live in, 
 and who in the last analysis will not be swept off their 
 feet by any confusion of tongues, or by any wild advice 
 from long-haired men or short-haired women. 
 
 I appreciate very much what Mr. Bedford said in regard 
 to the competition we shall have after the war. We shall 
 have competition with our friends and with their coun- 
 tries, and we know it; but if it is a fair one, if it is an 
 honorable one, so much the better. Let us have business 
 practices that will be such that high-minded and honor- 
 able men may always respect our respective countries, 
 and in the uttermost parts of the earth may be able to 
 carry on their business in a business way without any 
 suspicion whatever of unfair advantage or unfair deal- 
 ings. And it is necessary in these business arrangements 
 that each country develop itself along its own natural 
 lines. And may I also say that it is necessary if the peace 
 of the world is to be preserved without friction that each 
 country shall have the things that naturally belong to it 
 and shall not be, in this very complicated world of ours, 
 unduly dependent on another country ; aye, not even upon 
 its own partners and friends. Independence of a country 
 is essential if the people of that country are not to feel 
 restricted and confined. 
 
 With these few remarks, which are not intended to be 
 taken down with the care I notice on the part of the 
 stenographer, I will close my extemporaneous address 
 with the renewal of the thought of welcome, that we not 
 only in words welcome our friends from across the sea, 
 but we welcome them with our hearts, and in speaking 
 this welcome, we reflect the words and thoughts of all 
 the Americans with whom we expect them to come in 
 contact. 
 
THE INTERNATIONAL TRADE CONFERENCE 67 
 
 It gives me great pleasure to introduce the next 
 speaker, who represents the State Department in Wash- 
 ington. When we first started the idea of holding this 
 International Trade Conference the matter was taken up 
 with the State Department in Washington and I want to 
 assure you all that we are met not only with their com- 
 mendation, but with their hearty cooperation in this 
 work, and they offered very kindly to help in any way 
 possible, and to show that they have kept their word, they 
 have sent to us tonight the Assistant Secretary of the 
 Department of State in Washington, Hon. Breckinridge 
 Long, who will now address you. 
 
 Address of Hon. Breckinridge Long, 
 
 Third Assistant Secretary of State, on Behalf of the Government. 
 
 This International Trade Conference is both symbolic 
 and prophetic. It comes at the time the world is making 
 a tremendous effort to emerge from the period of destruc- 
 tion through which for five years it has passed, and to 
 reinstate the normal processes of constructive existence. 
 The destruction has been terrible. It would be awful 
 enough had it been confined to those physical properties 
 which suffered from contact with, or to those regions 
 which were the scenes of, military activities ; but,, unfor- 
 tunately, the effects are much more extensive. 
 
 The sinister consequences of the conflict through which 
 we have passed permeate all lands and all conditions of 
 life. Devastated villages, barren fields, the unnumbered 
 graves of those who gave their lives for a cause, or who 
 died in War's maelstrom, are the unnatural purposes to 
 which our best manufacturing efforts were directed 
 under the necessities of war, the loss of efficiency in pro- 
 duction, the great pile of the public debts, the damage 
 to industrial stability, the disturbance to political insti- 
 tutions and the impairment of confidence ; these and many 
 others are not discernible by the eye, nor measureable by 
 
68 THE INTERNATIONAL TRADE CONFERENCE 
 
 set standards, and are consequently appreciated with 
 diminished understanding. And yet, these and similar 
 matters are the most appalling of the results of war. In 
 the destruction of a village there is a definiteness and an 
 exactitude. It is capable of measurement in value ; it is 
 susceptible of exact computation as to the cost of recon- 
 struction. If the village is destroyed, it is destroyed. 
 Its status is certain. The time and labor necessary to 
 rebuild it can be known. But, in the complicated indus- 
 trial life of today the effect of a great shock is not meas- 
 urable by any known method. The consequences of the 
 shock appear intermittently and serve to magnify our 
 fears, in the same manner as those of the superstitious 
 and ignorant frightened by manifestations which sur- 
 pass their simple understanding. Recurrences of dis- 
 turbance in the economic and industrial worlds cause us 
 anxiety, because we, too, are ignorant of the trend of 
 their development. We are apt to conjure up in our im- 
 agination foreboding possibilities for the future. 
 
 Now, while it may not be possible to measure with 
 certainty the damage which has been caused to political, 
 financial and industrial structures, it is possible, in the 
 exercise of our judgments and of our intellects and by 
 the application of the standard of our experience, to esti- 
 mate its extent. Once estimated it is possible to proceed 
 with caution, rebuilding upon more solid foundations and 
 for better results. With all its damage and destruction 
 the war has taught us much and we are now in a position 
 to profit by them. 
 
 For this reason I say that this Conference is both 
 symbolic and prophetic. It symbolizes the sound business 
 experience of two continents come together to analyze 
 the wreckage, to estimate the cost and to form a determi- 
 nation to superimpose on the ruins of war a great and 
 modern structure. It prophesies that the close cooper- 
 ation which existed during the war between our country 
 and the lands from which come these delegates, will con- 
 tinue in peace and that the ties of friendship which were 
 sealed in blood will grow and develop in that friendly 
 
THE INTERNATIONAL TRADE CONFERENCE 69 
 
 trade and commerce which are so necessary to the proper 
 development of the peoples of each of our nations. 
 
 The Conference comes at a time when the serious 
 thoughts of serious men can do much to rehabilitate the 
 damaged structures of the world. Trade is based on 
 credit, credit on confidence, and confidence can only exist 
 where law is settled and supreme. There must be an 
 established order. The ordinary processes of law must 
 obtain and the ordinary activities of an organized society 
 must precede business activity. These can be assured 
 only under an established government properly function- 
 ing as a political organization and capable of asserting 
 its authority. 
 
 Fortunately in each of the countries here represented 
 there is such a government. Consequently the way is 
 clear for the most full and free interchange of com- 
 modities. Our concern should be for the immediate fu- 
 ture to witness the financial and economic operations 
 which will most effectively restore industry to its normal 
 activity. As soon as this can be done the effect upon 
 the peoples of the different countries will be to encourage 
 them and to make more firm their confidence in the 
 beneficence of the political organizations under the juris- 
 diction of which they respectively live. We will thereby 
 have contributed to the restoration of the morale of 
 the world. 
 
 These things are possible, and will be the natural con- 
 sequences of a conference participated in by men of ex- 
 perience, breadth of vision and patriotism which charac- 
 terizes those who are here assembled. 
 
 Mr. President, your Conference comes at a time when 
 there is a new spirit and a new vision abroad in the 
 world. We stand at the threshold of a new era. There 
 is a knowledge of peoples, of their habits, histories, sym- 
 pathies and needs participated in by the peoples of all 
 other lands which has not existed heretofore. The under- 
 lying causes, the factors which made this possible, are 
 mechanical the evolution of science and the develop- 
 ments of the laboratory. The motive powers of steam 
 
70 THE INTERNATIONAL TRADE CONFERENCE 
 
 and gas, minimizing distance on land, on sea and in 
 the air, and the instantaneous reaction of electricity, 
 echoing our voices through space and transmitting the 
 stories of our thoughts and actions around the world, 
 have started the processes of cementation. The world is 
 bound around with bands of steel and strands of copper, 
 each additional one doing its part to overcome the ancient 
 obstacles of time and space. 
 
 When the scientific history of the last hundred years is 
 reviewed we stand amazed at our development; and 
 when we consider that the motor is the child of the pres- 
 ent generation which already, even in its infancy, has 
 spanned an ocean in its flight, our imaginations can only 
 faintly perceive the possibilities of the prodigy. 
 
 These scientific and mechanical developments are val- 
 uable because they have created avenues of communica- 
 tion. The greater the facilities for communication the 
 closer are peoples bound together, and with the continu- 
 ing multiplication of these avenues the more immediately 
 and intimately will one people come in contact with 
 others. 
 
 These agencies of communication have two effects. 
 Automatically there is created a certain propinquity be- 
 tween countries really separated by great distance. But 
 also they cause the inhabitants of one land to take a 
 personal and material interest in the inhabitants and in 
 the affairs of the inhabitants of other lands. 
 
 Friendly relations between countries become mutually 
 advantageous to and mutually desirable by the composite 
 citizenship of each, but these relations also have their 
 direct bearing upon the individual citizen. 
 
 In days gone by, before our social life had become so 
 complicated, before specialization of labor and of pro- 
 duction had been developed to their present high degrees ; 
 in days when a country was not only content, but able to 
 consume the products from within its own borders and 
 imported little from abroad; it was an object for the 
 particular and exclusive attention of statesmen to culti- 
 
THE INTERNATIONAL TRADE CONFERENCE 71 
 
 vate relations with other governments; an object which 
 gave the ordinary citizen little concern. 
 
 Today there is a difference in the land. Our life is 
 complicated. Our commerce is intricate, and its chan- 
 nels are various. We produce more than we need, but 
 not all of the things we consume. We export much and 
 import a variety of the products of other lands and of 
 other climes. Such things as "balances of trade" have 
 come to the intimate acquaintance of every banker and 
 every large producer, and have made it the concern of 
 each that good relations of one government with other 
 governments shall be cultivated and maintained. Diplo- 
 macy has been popularized, in that its practice has a 
 direct, and possibly an immediate bearing on the ordi- 
 nary affairs of life. 
 
 All this demonstrates conclusively that the isolation 
 of former days a condition which prevailed in every 
 country, wherever situated has been exchanged for a 
 national interdependence. The isolation was physical. 
 Space and the lapse of time created it. The interde- 
 pendence is mechanical, for by such agencies have space 
 and time been reduced in consequence. The very pro- 
 cesses of reduction have made it the concern of those 
 who are most affected by it, and the men who do the 
 bartering and selling and transporting, and the dealers 
 in exchange, and the more numerous producers, the 
 spinners and toilers, are brought face to face with dip- 
 lomatic situations which may affect adversely their means 
 of livelihood. 
 
 In this complex world of interdependence trouble be- 
 tween two governments may block trade routes and inter- 
 rupt commerce between countries, and the effect of it will 
 reach back along the avenues to the point of origin of the 
 shipments, and back still through intermediate channels 
 to the producing organization, affecting both capital and 
 labor over its whole route. 
 
 Today it is a matter of business that there shall be the 
 fewest possible number of disturbances to production 
 and to commerce, and it is equally a matter of business, 
 
72 THE INTERNATIONAL TRADE CONFERENCE 
 
 and for business men, to devise that conditions at home 
 and abroad shall be such as to keep open the usual pro- 
 cesses of production and trade. Labor and capital have 
 an interest in common with the government, for each will 
 be affected in the same degree. 
 
 So these mechanical devices have brought the peoples 
 of the world today to the point where their knowledge 
 has been increased, and the new thoughts and new ideas 
 of international cooperation are manifestations of their 
 new consciousness. 
 
 With the fall of the German Empire it was finally 
 decided that force as the deciding factor is to be elimi- 
 nated for all time; that reason is to prevail; that calm 
 deliberation is to take the place of military demonstra- 
 tion; and that the public opinion of the world, which can 
 now be marshalled through these avenues of communi- 
 cation, and capable now of coordinate expression, will be 
 called upon to differentiate between the righteous and the 
 unrighteous, between justice and injustice. 
 
 In the future there will be fewer disturbances to in- 
 dustry so that the normal processes, once re-established, 
 may proceed to their logical development. This Con- 
 ference can do its large part to bring about the return 
 to normal and to heal the wounds which still gape on the 
 industrial and political bodies of the world's great 
 nations. 
 
 So it is with pleasure that the Government of the 
 United States learns of the presence here of delegates 
 from its neighbors "over there," welcomes them to 
 America and voices its belief that their cooperation with 
 you is an indication of the spirit of the new era,, a spirit 
 which will bring success to your efforts and peace and 
 tranquillity in the world. 
 
 Address of M. Florimond Hankar, 
 
 Chairman of Belgian Mission; Director, National Bank of Belgium; 
 Honorary Director General, State Savings Bank of Belgium. 
 
 The Chairman: We had hoped during these series of 
 meetings to have with us at some time the King of the 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 73 
 
 Belgians, but as the time of meeting had to be put off, 
 it could not be so arranged that it would fit in with his 
 trip through the United States. When we speak of the 
 King of the Belgians and of his country, we Americans 
 are filled with pride, and we glory in that brave little 
 country and in the noble king who during the months 
 and years of war shared with his troops a common dan- 
 ger and came out of the war one of the outstanding 
 and noble figures of all time. As a representative of that 
 country it gives me great pleasure to introduce the dis- 
 tinguished President of the Belgian Mission, M. Flori- 
 mond Hankar. 
 
 M. Hankar spoke as follows : 
 
 Mr. Chairman, Ladies and Gentlemen: Permit me to 
 say to you that my colleagues and I of the Belgian 
 Mission, speaking at once for ourselves and for our gov- 
 ernment, deeply appreciate the welcome we have received 
 here. It is hardly necessary for me to add that the pres- 
 ence at this Confer- 
 ence of so many repre- 
 sentative business men 
 of the United States is 
 a signal honor to our 
 Mission. Knowing as 
 we do that you have 
 assemoled here from 
 all parts of the coun- 
 try, we are more than 
 ever impressed with 
 the great significance 
 of our visit and our 
 reception by you. 
 
 We have come at 
 the kind invitation 
 you extended to us to 
 tell you of the condi- 
 tions in our land and 
 
 M. FLORIMOND HANKAR. to inform you as to 
 
 our commercial needs. 
 
74 THE INTERNATIONAL TRADE CONFERENCE 
 
 Many Americans have only a general knowledge of Bel- 
 gium. To give you an idea of the country I come from, 
 I might quote one of your own authors in a book I found 
 on board the Northern Pacific on our trip across the 
 ocean. Mr. Cyrus C. Adams, in his "Textbook of Com- 
 mercial Geography," speaking of Belgium, says : 
 
 "The country is about as large as Maryland and is the 
 most densely populated State in Europe." 
 
 Again Mr. Adams says: 
 
 "Manufacturing and mining have made Belgium one 
 of the richest countries in Europe." 
 
 In spite of the fact that the geographic situation of 
 Belgium is such that our country has been the center of 
 many great wars, the Belgian people were not prepared 
 for this war, but they were instantly ready to oppose the 
 invading foe of humanity and fight to the last for right. 
 And because our fight was just and right, America came 
 early to our aid. 
 
 We have received many gifts from the American 
 people. The name,, "American," is written in gold in the 
 hearts of our people and our affection for the United 
 States will go down through the generations in Belgium. 
 We are thankful for what you have done and for the gifts 
 you have bestowed upon us. We received these gifts as 
 coming from one friend to another. We were proud to 
 accept them because they were given out of the gen- 
 erosity of true friendship. 
 
 We have a proverb in our country which runs : 
 
 "He who gives quickly gives twice." 
 
 And so it was with America. The American people 
 gave quickly to our Red Cross. The money you contrib- 
 uted was turned over to Dr. Depage, the most prominent 
 surgeon of Belgium, who, with the generous help of, and 
 under the high patronage of our beloved Queen Elizabeth, 
 established the big military hospital at La Panne. 
 
 I shall not attempt to tell you about all the wonderful 
 work that was done there. But I will say to you, that 
 the lives of thousands of wounded Belgian soldiers and 
 
THE INTERNATIONAL TRADE CONFERENCE 75 
 
 fighting men of other Allied nations were saved by the 
 new and quick methods of treatment which the hos- 
 pital the hospital the American people made possible 
 was enabled to give them. 
 
 During the war we were surrounded by an almost im- 
 passable iron wall. We could not break through it to 
 send our letters, communications or word to the outside 
 world. The Belgian mother could not even correspond 
 with her son. And then, one day, came the Americans, 
 and we knew that we had friends outside the wall. 
 
 The Americans came with the C. R. B., as the Com- 
 mittee for Relief in Belgium is known in every household 
 in our land. I know many Americans who left their 
 business, their professions, their studies, to come to our 
 aid in those days. We shall never forget them. 
 
 The stoppage of food supplies in Belgium threatened 
 our future generations. Children on whom we depended 
 for the generations to come were sorely in need of food. 
 You never will know what a great need was theirs. And 
 then, you came with the necessities of life, and Belgium 
 took renewed courage. 
 
 I am happy to tell you that the results of what you did 
 are everywhere visible in Belgium. You have only to go 
 to our factories, into our fields, to the places where men 
 toil to see what the food you gave us in our hungry days 
 has done to make our people fit to carry on the stren- 
 uous work of peace after the wearing days and months 
 and years of war. 
 
 It is not for me to say what our soldiers did. You and 
 all the world know that. But I may say that we now are 
 fit to go on with the great battle of life because of what 
 America did for us. 
 
 I take it one of the lofty purposes of this International 
 Trade Conference is the perpetuation of the ties which 
 held the Allied countries together so steadfastly during 
 the war. 
 
 We learned during the war what can be accomplished 
 by cooperation and unity of purpose. Unity of purpose 
 on the part of the Allied powers saved the world from the 
 
76 THE INTERNATIONAL TRADE CONFERENCE 
 
 forces of evil which threatened to destroy civilization. 
 The same kind of united effort now will mean a com- 
 mercial progress throughout the world unthought of in 
 the days before the war. 
 
 One of your mottos, "In Union there is Strength," 
 is the motto of Belgium. We learned much about union 
 of strength during the great conflict. It was because of 
 your high belief in this motto that you came to our as- 
 sistance and we all united to preserve those things for 
 which civilized people have fought down through the 
 ages. 
 
 It was as certain as the coming of tomorrow's dawn 
 that a nation, founded on the fundamental principles 
 upon which this country was built, would enter the war 
 on the side of right and help bring about a union of 
 strength among the Allies which would insure victory. 
 And so we saw and learned what unity of purpose can 
 achieve. 
 
 We have won a victory in war; we must now strive 
 for as decisive a victory in peace. This is the reason why 
 the members of the Belgian Mission have come to the 
 United States to get acquainted with the people who have 
 done so much for Belgium and to let you get acquainted 
 with us. 
 
 You gave us Hoover. We felt in those dark days that 
 there was a union between your country and mine that 
 would endure forever. And then you joined arms with 
 the Allies and we knew that the bond had become im- 
 perishable. 
 
 You may imagine, then, what our feelings were when 
 we were invited to come with the International Com- 
 mercial Mission to the United States to meet you. 
 
 You know all too well what happened to my country 
 during the war. You know of our destroyed cities and 
 towns,, our wrecked industries, our workmen taken away 
 into slavery, and the miles of devasted farming and fruit 
 lands. That is an old story to you now, and I am not 
 coming here, as has been said, "to exploit our misery." 
 
 But there is a new story of Belgium beginning. Bel- 
 gium's wrecked towns and cities are being set in order. 
 
THE INTERNATIONAL TRADE CONFERENCE 77 
 
 Her roads are being rebuilt. Her shell-torn fields are 
 being plowed and planted and crops harvested. Here 
 and there, manufacturing plants, which were not de- 
 spoiled of their machinery by the invading foe, are oper- 
 ating again. Throughout the land there is industry 
 where industry is possible. 
 
 The people of Belgium want to work; they want to 
 produce. Let me say to you that just after the armistice 
 there were 800,000 unemployed in Belgium. And today 
 there are less than 200,000. The spirit of the people is 
 there, but the needed implements and supplies and some 
 foreign credit are lacking. 
 
 And so we look to the United States to furnish those 
 necessary factors for the development of Belgium, for 
 the building up of a new Belgium that will be more 
 prosperous, more productive than the old. 
 
 The people of Belgium are anxious to do their share 
 and more to bring about a great international union 
 of world commerce, pledging themselves to a universal 
 unity of effort which will mean peace and prosperity for 
 all time. 
 
 This, gentlemen, is the message I bring to you from 
 Belgium with a reiteration of Belgium's deep and ever- 
 lasting gratitude for what America already has done for 
 her. 
 
 Address of M. Eugene Schneider, 
 
 Chairman of the French Mission; President of Creusot Works; 
 
 President, Iron and Steel Institute of France Former 
 
 Member of Chamber of Deputies. 
 
 The Chairman: The next speaker on the program 
 hardly needs any other introduction to an American 
 audience than to say that he will be known to all of you 
 when I tell you that he is the maker of an instrument 
 of warfare which has become a household word in the 
 United States, the French 75. When we found out after 
 years of war that our boys over there had back of them 
 
78 THE INTERNATIONAL TRADE CONFERENCE 
 
 as their principal artillery support these same French 
 75's,, and when we knew that those guns were right, we 
 were prepared to believe that the builder of those guns 
 was right. Eighty per cent of all the heavy guns of 
 France were built at the famous Creusot Works, the 
 head of which we believe employed more than 80,000 
 men, who is the chairman of the French Mission whom 
 I now have great pleasure in introducing M. Eugene 
 Schneider. 
 
 M. Schneider said: 
 
 On behalf of the French Mission I should like to ex- 
 press thanks for the cordial words of welcome extended 
 to us in the name of this International Trade Confer- 
 ence. We shall always treasure the memory of the won- 
 derful reception this vast audience has given us tonight. 
 It is typical of the whole-heartedness and strength which 
 are so highly representative of the American tempera- 
 ment. Whole-heartedness and vigor of mind are the 
 qualities which are the basis of the material and moral 
 development of America. 
 
 Gentlemen, I may be permitted to speak in a personal 
 way about these excellent qualities of the American peo- 
 ple, for I have had, as my father had before me, consid- 
 erable business dealings with America. And I will say 
 here, for the first time in public, that I received the most 
 splendid cooperation from America during those early 
 years of the war, when I placed orders in this country 
 for many hundreds of thousands of tons of steel and for 
 great quantities of large caliber shells. My engineers 
 reported that they found everywhere the greatest will- 
 ingness and the most whole-hearted cooperation. I am 
 happy to pay this tribute to American spirit. 
 
 And these qualities of which I have spoken, namely, 
 whole-heartedness and vigor of mind, are the qualities 
 that we find again today in the initiative which the 
 Chamber of Commerce of the United States has taken. 
 
 It is with real and sincere pleasure that we have re- 
 sponded to your invitation. While we take this first 
 
THE INTERNATIONAL TRADE CONFERENCE 79 
 
 opportunity to express to you our most hearty thanks, 
 while we bring to your distinguished chairman and to 
 all of you, gentlemen, our cordial greetings, we hope that 
 these greetings will go further and through you to the 
 whole American nation that has acquired such an im- 
 perishable right to the admiration of the world. 
 
 Here we are, upon your invitation, in company with 
 our Allies,, ready to confer with our American friends 
 upon the means for satisfactorily settling our common 
 interests. In our Mission there are bankers, shipping 
 men, representatives of the textile, steel and chemical 
 industries. We form a curious embassy, quite an up-to- 
 date embassy. 
 
 Yes, gentlemen, let us not be mistaken; it is the kind 
 of embassy appropriate to the new era, the beginning of 
 which has been marked by our common victory. 
 
 Before leaving Paris, we were received by our Premier, 
 M. Clemenceau, and M. Clemenceau, with his wonderful 
 clearmindedness, told us : 
 
 "It is up to you now to lead the government in those 
 paths which lead directly to the general welfare. 
 
 "More and more diplomacy will vanish before direct 
 agreements which will be reached between the peoples, 
 for Victory has opened the era of universal democracy." 
 
 It is in that direction that it can be asserted that the 
 Chamber of Commerce of the United States has taken a 
 really historical step. Whether we succeed through our 
 conferences in reaching definite agreements, or only the 
 basis of such agreements, it will not be long before the 
 importance of such action will be fully realized ; for there 
 is at least something which will survive these present 
 meetings : that is, the habit of meeting together, and con- 
 ferring upon our mutual problems in an atmosphere of 
 cordial friendship. It will mark also, I hope, the perma- 
 nent organization of an international economic institu- 
 tion to carry out in the realm of business the idea of the 
 League of Nations. 
 
 Thus, gentlemen, you will have given to the course of 
 events a decisive impulse, and History will say, as I do 
 
80 THE INTERNATIONAL TRADE CONFERENCE 
 
 today, that the Chamber of Commerce of the United 
 States has been a benefactor to the world. 
 
 The Chairman: We wish to thank M. Schneider for 
 his very kind expressions of regard for what the Cham- 
 ber of Commerce has been trying to do. 
 
 Address of Sir Arthur Shirley Bemi, K. B. E., M. P., 
 
 Chairman of the British Mission. 
 
 The Chairman: The next speaker, ladies and gentlemen, 
 represents a great country and a great aggregation of 
 countries that needs no introduction, and when I have 
 told you that the next speaker, representing the British 
 Mission, in his own person represents the husband of an 
 American wife, I am sure you will agree with me that he 
 is already very well introduced into the United States. 
 He lived here a number of years and we do not think he 
 has entirely gotten over the habit yet, and I take great 
 pleasure in presenting the chairman of the British Mis- 
 sion, Sir Arthur Shirley Benn. 
 
THE INTERNATIONAL TRADE CONFERENCE 81 
 
 Sir Arthur said: 
 
 Mr. Ferguson, Ladies and Gentlemen: I thank you, sir, 
 for the kindly manner in which you have introduced me, 
 and I thank you and the Chamber of Commerce for the 
 kindly greeting that you have given the British Mission 
 of merchants that came here to attend the conference. 
 
 We who live in those 
 little isles girt by the 
 northern seas, the 
 motherland of the 
 British race, the cen- 
 ter of our widespread 
 British Empire when 
 we come to America, 
 no matter how long 
 the voyage, we always 
 feel that we are not 
 far from home. The 
 great hospitality so 
 freely given, the kind- 
 ness so continuously 
 shown, and that al- 
 most indefinable lit- 
 tle sympathetic touch 
 makes one always feel 
 that there is existing 
 SIR ARTHUR SHIRLEY BENN. a friendship between 
 the majority of the peoples of both our lands that forms 
 a tie which is stronger than contracts and is likely to last 
 longer than treaties. 
 
 America has one great asset, an asset that no other 
 country has; she has sprung from the loins of ancient 
 Europe; she has been able to take of the best of the 
 peoples of Europe and mix it with the modern ideas of 
 things produced by science and ingenuity. She builds up 
 without pulling down. We in Britain love to think of her 
 as the gigantic daughter of the West. We see her march- 
 ing forward to the paths of civilization and we love to 
 
82 THE INTERNATIONAL TRADE CONFERENCE 
 
 claim her with France, the great immortal and indom- 
 itable France,, which has her claims also to building her 
 up. 
 
 It is interesting to realize that nearly two hundred and 
 forty years ago LaSalle, the great French explorer, when 
 he saw Comte de Frontenac, the governor of Canada, the 
 French Governor General, and tried to persuade the Gov- 
 ernor General to allow him to make an expedition to the 
 mouth of the Mississippi, told Comte de Frontenac that if 
 he could join up by a line of forts the source of the Mis- 
 sissippi and the source of the St. Lawrence France would 
 be the mistress of the country lying between. He said : 
 
 "I can affirm that the source of the Mississippi comes 
 from somewhere in the vicinity of the Celestial Empire. 
 In other words, France will be mistress of the country 
 between the St. Lawrence and the Mississippi and it will 
 control the trade of China through the great and mighty 
 channel which I shall build to the Gulf of Mexico." 
 
 Ladies and Gentlemen, it is not France alone that has 
 her claims. Nearly all great countries in Europe have 
 done their share in building up your great country. But 
 there is one thing that we claim, and that is that the 
 ideals and principles held today by the Americans are 
 the ideals and principles that were held by your great 
 Americans who helped and did found your nation. They 
 were the principles of Washington, of Hamilton, of Jef- 
 ferson, of Madison, of Monroe, and scores of others, men 
 who were bred and educated under the British flag. 
 
 Ladies and Gentlemen, I venture to say that those 
 ideals and principles are the ones that are now professed 
 by all of us and that the nations who have sent missions 
 here today are nations who believe in those ideals and 
 believe in those principles and are determined to try and 
 carry them out. We believe in liberty, but not license. 
 We believe in the people and the government of the 
 people, by the people, for the people, and we believe that 
 better days are coming for all of us. We have been 
 through this awful struggle; we have been partners in 
 seeing that civilization was not trodden by the dominance 
 
THE INTERNATIONAL TRADE CONFERENCE 83 
 
 of Germany. We are going to be partners in the recon- 
 struction of our lands. We have a hard road to travel. 
 Those of you who have not seen the devastated areas in 
 France, in that great and brave little Belgium, in Italy, 
 cannot realize the devastation that has been wrought and 
 the necessity of all of us, of everyone who can afford it, 
 to lend a hand in rebuilding. I should like just to read 
 two verses that I heard read by the Bishop of Bothwell, 
 which I think is a very good proof of the action that the 
 Allies intend taking and that we will take : 
 
 "Keep on looking for the bright skies, 
 Keep on hoping that the sun will rise; 
 Keep on singing when the whole world sighs, 
 And you will get there in the morning. 
 
 "Keep on sowing when you have lost the crop, 
 Keep on dancing when the fiddlers stop; 
 Keep on fiddling till the curtain drops, 
 
 And you will get there in the morning." 
 
 Address by Comrn. Dr. Ferdinando Quartieri, 
 
 Chairman of the Italian Mission. 
 
 The Chairman: Before we got into the great war a great 
 many of us put in an hour or so a day tracing the battle 
 line across western Europe and from Belgium across to 
 Switzerland, then down in Italy, and we became familiar 
 with the configuration of the country. We studied about 
 the people, the character of the land and what they were 
 doing, and watched under a nervous tension the line move 
 back and forth, and nowhere did we watch with more 
 care than in Italy, and finally we saw that line surge 
 toward the north until it passed Trieste. We saw the 
 Italian arms predominate in that country, and we came 
 to know in this country of the wonderful water power and 
 wonderful resources and beautiful farms that were devas- 
 tated and laid waste, that must be rebuilt, and now we 
 expect, remembering the same names and the same towns 
 
84 THE INTERNATIONAL TRADE CONFERENCE 
 
 and the same country, to see Italy built up again so that 
 Italy will become as prosperous as it was before the war, 
 and we expect to see that result, because we know that 
 the Italian people are not only faithful and true to their 
 country but gifted with a remarkable industry, skillful 
 in their work, thrifty, and the people are bound to suc- 
 ceed when given the opportunity to work and the raw 
 materials with which to work, coal for fuel, wheat for 
 food for a time ; machinery to develop their water power, 
 and these things will help to put them on their feet, be- 
 cause they only wait the opportunity to all get busy 
 again and rebuild their wonderful country. They have 
 sent us a most representative Mission, ladies and gentle- 
 men, and at the head of that Mission is a most distin- 
 guished engineer, the head of one of the greatest chem- 
 ical works not only in Italy but in the entire world, who 
 furnished during the war the major part of all of the 
 explosives and chemicals used by the Italian army and 
 navy. In fact, I expect it was his company that furnished 
 the explosives for the two most wonderful torpedoes on 
 record, or mines, when Capt. Luigi Rizzo himself individ- 
 ually and alone, blew up two of the most wonderful gigan- 
 tic battleships the world has ever seen. And in doing so 
 probably stamped himself as the one man in all time who 
 single-handed did the greatest damage done to any enemy. 
 I take great pleasure in introducing to you the President 
 of the Italian Mission, Dr. Ferdinand Quartieri. 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 85 
 
 Dr. Quartieri said : 
 
 Mr. President, Ladies and Gentlemen: Allow me on 
 behalf of the Italian Mission to express our warm appre- 
 ciation of the cordial welcome extended to us by the 
 American representatives to the International Trade Con- 
 ference. 
 
 In organizing this 
 gathering the business 
 men and manufac- 
 turers of this great 
 Republic took an im- 
 portant step toward 
 completing the great 
 work begun on the 
 battlefields by the gal- 
 lant soldiers of all na- 
 tions who so gener- 
 ously shed their blood 
 in the cause of Lib- 
 erty and Civilization. 
 You have realized 
 that no mere military 
 victory could insure 
 the definite triumph of 
 these immortal prin- 
 ciples for which the 
 supreme sacrifice was 
 
 made, in the high hope and assurance that it would fruc- 
 tify in the brotherhood of nations and the final cessation 
 of wars. 
 
 This remarkable gathering of business men has grasped 
 the present needs and future dangers of the situation, and 
 with that enlightened spirit of generous fraternity which 
 characterizes your great country has invited us to come 
 and take council with you in your own land. 
 
 You realize that it is only by free commercial relations 
 that the barriers between countries can be removed, and 
 that political excesses can only be avoided if friendly 
 
 DR. FERDINANDO QUARTIERI. 
 
86 THE INTERNATIONAL TRADE CONFERENCE 
 
 agreements between the nations insure the equitable and 
 most profitable distribution of natural resources, accumu- 
 lated wealth, and labor. 
 
 All honor to you, brothers of America! Be assured 
 that the hand which you extend to the Belgians, the 
 French, the British and the Italians is warmly grasped. 
 
 In every humble home in Italy, America is known and 
 loved; she is known and loved by the masses of our 
 people ; and this intimate knowledge forms the solid basis 
 for an enduring friendship. 
 
 As men of culture, you are acquainted with Italy's 
 glorious past; as men of affairs you cannot be unaware 
 of the living Italy of today. When traveling through our 
 country you will have observed the care with which the 
 land, fortunately subdivided among a large number of 
 owners, is tilled, and you will have noted the development 
 attained by the factories which have sprung up all over 
 Italy. And in these fields and factories your American 
 Red Cross workers, who came to us in the hour of stress, 
 and who have made the name of America popular in every 
 cottage in our land, found once more those Italian labor- 
 ers whom they had learned to know in their own country, 
 and who have bathed with their sweat, and often with 
 their blood, all the greatest works accomplished in the 
 world. 
 
 How often during our travels the unanimous recogni- 
 tion of the intelligence, thrift, and industry of our people 
 has consoled us for the harsh and frequently unfair judg- 
 ments passed on our country ! Nature, niggardly in en- 
 dowing our land with natural wealth, has graciously be- 
 stowed on us this blessing which, today more than ever, 
 is recognized as an asset of inestimable value by the 
 business world. 
 
 Our people entered the great war in no imperialistic 
 spirit of conquest, moved thereto solely by idealistic mo- 
 tives. It threw into the struggle all its strength and all 
 its wealth so that Italy should not be absent from the 
 field on which the Allies were fighting for the freedom of 
 the world, and so as to gather within the boundaries of 
 
THE INTERNATIONAL TRADE CONFERENCE 87 
 
 the Motherland those Italian populations which, through 
 centuries of oppression had successfully resisted a con- 
 stant and relentless process of elimination and absorption. 
 
 We Italians realize that the work before this Confer- 
 ence is that of insuring the economic reconstruction of all 
 the Allied countries which have so cruelly suffered in this 
 terrible war, including those new states which arose on 
 the ruins of the Austrian Empire. Though their repre- 
 sentatives are not here with us, yet they are fully entitled 
 to the solicitous help of their richer and more powerful 
 Allies. 
 
 Before the war Italian industry and thrift had placed 
 the economic life of our country on a solid basis and en- 
 sured its steady progress. The rate of exchange, con- 
 stantly at par, was the best proof of this. A careful study 
 of the situation will, I think, show that there is no reason 
 why we should not again restabilize our position. 
 
 We see that labor, the predominant and gravest factor 
 of the day, is resuming work throughout Italy in a satis- 
 factory manner, and that our people are returning to 
 those habits of economy which the war had disturbed, 
 and which is one of its most conspicuous virtues. 
 
 The Italian government, free from all old-fashioned 
 financial prejudices, gave freely all that was required to 
 win the war ; it is now prepared to give that generous and 
 unconditioned help to industry and agriculture which the 
 economic revival of Italy demands. 
 
 The heroic policy of very heavy taxation which was 
 adopted from the start, and which has been courageously 
 persevered in, has yielded results which justify the belief 
 that the national budget will soon recover its equilibrium 
 without inflicting too severe sufferings on the country; 
 and this is clear proof that productive work has been 
 resumed. 
 
 In studying the items which now turn the balance of 
 trade so heavily against us, we find that they fully justify 
 confidence in a rapid economic recovery. The excess of 
 imports is accounted for mainly by raw materials for 
 which there used to be but a limited demand, but which 
 
88 THE INTERNATIONAL TRADE CONFERENCE 
 
 our new factories now require to transform into manufac- 
 tured goods which Italy formerly imported from Euro- 
 pean countries, mainly from Germany. 
 
 As for our food imports, they will gradually be re- 
 duced, now that our men are returning from the armies 
 to the farms. 
 
 Our industrial development and our agricultural revival, 
 therefore, justify the belief that in a few years' time the 
 balance of trade will once more be such as to make Italy 
 the self-supporting country she was before the war. She 
 will then be able to pay off the debts she has incurred 
 with foreign countries without being unduly hampered 
 by excessively high rates of exchange. 
 
 Proud of the great sacrifices which her people have 
 made for the honor of fighting in the ranks of the defend- 
 ers of Liberty and Democracy, Italy sends you her greet- 
 ing. She is convinced that her cooperation will be as val- 
 uable to her Allies in the industrial sphere as it was on 
 the battlefield. She is confident that with your help she 
 will be able to develop more fully her resources and to find 
 employment in her own country for her abundant supply 
 of labor, the value of which you will be the first to appre- 
 ciate. 
 
 It is this labor which awaits your cooperation to be- 
 come a bountiful source of wealth and prosperity to the 
 whole world. If your cooperation does not fail us and 
 it will not the Italo-American understanding will yet 
 enable us to write jointly a page in the annals of history 
 not unworthy of the countries of Washington and of 
 Columbus. 
 
International Trade Conference. 
 
 MORNING SESSION, THURSDAY, OCTOBER 23, 
 10 O'CLOCK. 
 
 MR. JOHN H. FAHEY, PRESIDING. 
 Mr. Fahey said: 
 
 Once convinced that liberty, justice and civilization 
 were at stake, the United States of America recognized 
 its duty and joined the spendid nations represented here 
 today in the conflict which meant so much to the future 
 of mankind. 
 
 By that course America won its place high on the 
 
 world's roll of honor 
 beside its Allies, who 
 had so steadfastly held 
 back the enemy hordes 
 until we arrived. Who 
 now doubts our readi- 
 ness to sacrifice blood 
 and treasure and do 
 our utmost when our 
 duty is apparent? 
 
 Peace had been 
 signed; but that hap- 
 piness and prosperity 
 for the peoples of the 
 world, always coupled 
 in the minds of men 
 with thoughts of 
 peace, are yet not at- 
 tained. Today they 
 still seem afar off and 
 the road seems long 
 and hard. 
 The aftermath of war in some of its aspects is quite 
 
 JOHN H. FAHEY. 
 
90 THE INTERNATIONAL TRADE CONFERENCE 
 
 as terrible as the struggle itself. The death of the soldier 
 on the battlefield when he gives all for love of country and 
 humanity is one of the most inspiring things we know. 
 The toll of death which comes from battle is spectacular 
 in extreme and quickly impresses itself upon the mind; 
 but as a sequence of war there are tragedies quite as ter- 
 rible but less appreciated. 
 
 Undernourishment, starvation and disease demand this 
 awful tribute from the war-swept countries and those 
 affected by its ravages. The process is slower and more 
 subtle, but it may be no less destructive in its results. It 
 is not death and sorrow alone that are involved, but the 
 threat to all we hold dear in life, as represented and pro- 
 tected by modern civilization. 
 
 Hopeless men, unable to work and to secure food and 
 shelter for their families soldiers who have risked 
 everything in the zeal of patriotism for the benefit of 
 their fellows quickly turn in despair to the belief that 
 the existing social order must be wrong which takes no 
 cognizance of their sufferings or brings to them no ade- 
 quate relief. 
 
 There is nothing strange or unnatural about the de- 
 velopment of such sentiment. Men who are starving, men 
 deprived of opportunity to work, can hardly be patient 
 and forgiving. 
 
 The issues which brought us into the war, therefore 
 freedom, justice, the maintenance of civilization are just 
 as much at stake today as they were on that fateful day 
 in the spring of 1917 when we plunged into the midst of 
 the struggle. 
 
 Far removed from the scene of actual conflict, three 
 years passed before we understood its true significance 
 and were impelled to action. Still as distant and as lack- 
 ing in realization of what is following the signing of 
 peace, nearly a year has passed and we are now beginning 
 to see and understand that our responsibility is not yet at 
 an end. Idle thousands in Europe the same thousands 
 of heroes who helped to save the world are now dis- 
 tressed and restless, facing cold and hardship in the 
 
THE INTERNATIONAL TRADE CONFERENCE 91 
 
 winter that is about upon us, because they lack materials 
 with which to work and supplies to maintain life itself. 
 
 Our sacrifices were small, indeed, compared with those 
 of our Allies in Europe, and the end of the war finds us 
 practically the only large country in the world able to 
 give substantial aid. That we wish to do all in our power, 
 no American and no one who knows America will doubt. 
 The only questions are the extent of the need and of our 
 ability to meet it. 
 
 It is to examine these questions and so far as possible 
 find the answers that we meet here today. 
 
 Planning, courage and unity of action won the war. 
 The same factors alone will bring the victories of peace. 
 
 Obviously it is our first task carefully to survey the 
 conditions in Europe and have clearly before us the neces- 
 sities of the hour, while at the same time we determine 
 our own power to respond. 
 
 A distinguished citizen of each of the great countries 
 here represented will put before you the picture of con- 
 ditions as they are today in his own land, and leaders 
 of thought at home will likewise try to place before all 
 of us a review of our circumstances and our resources. 
 
 It is quite consistent that the head of our great 
 Department of Commerce, within whose purview comes 
 not only the development of our powers of production at 
 home but our ability to distribute abroad, the minister 
 of the Cabinet, who through the war has given his days 
 and nights and his whole mind and strength to serving 
 our country in its great effort to back our soldiers at the 
 front to the limit, should be our honored guest on this 
 occasion and sketch for us the situation in the United 
 States today and its ability and willingness to respond in 
 full measure to the necessities of the world. 
 
 Ladies and Gentlemen, it is my great privilege and 
 pleasure to present the Hon. William C. Redfield, Secre- 
 tary of the Department of Commerce of the United 
 States. 
 
92 THE INTERNATIONAL TRADE CONFERENCE 
 Address of Hon. William C. Redfield, 
 
 Secretary of Commerce of the United States. 
 Mr. Redfield said: 
 
 Mr. Chairman and Gentlemen: May I begin with a 
 purely personal note? My dear friend, the Ambassador 
 from Italy, lies dead in his home in Washington. He was 
 not merely an Ambassador to me, but a friend who was 
 welcomed in my house by himself as a family guest. It 
 was my privilege to do what I could to encourage him in 
 days of trouble and to rejoice with him in days of glad- 
 ness. He was a faithful servant of his country and I 
 share with the gentlemen from Italy their sorrow that he 
 should be taken away at this time. 
 
 Gentlemen from France: Your Ambassador is my be- 
 loved and personal friend. His noble American wife has 
 been to him a comfort and a stay through these dark 
 years. I have seen him bear the heavy burdens and have 
 had the privilege of rejoicing with him as the sun has 
 risen again. 
 
 We are proud that Great Britain has sent to us that 
 noble man who, could he have had his way, would have 
 saved all this sorrow. America honors Viscount Grey, 
 and rejoices that he is here to be one of ourselves in heart 
 and spirit. 
 
 And King Albert and his noble wife have captured 
 America. We are theirs. He is one of our Kings, too; 
 and you, gentlemen from Belgium, have got to consent 
 to his dominion and that of his Queen in our hearts also. 
 We must ourselves share him with you. Wherever he 
 has gone he has won friends among all who honor man- 
 hood and who reverence womanhood and who respect 
 courage under difficulties. 
 
 And so we are assembled with united hearts and one 
 great hope to continue a common task, a task still un- 
 finished, perhaps barely begun, but one in which our 
 hands and our hearts must be united, if we are to do the 
 work that falls on us to do. 
 
THE INTERNATIONAL TRADE CONFERENCE 93 
 
 It happened last Sunday morning I went to a little 
 country church down in Virginia without knowing very 
 well what it was I should see. As I sat in the pew I saw 
 on the door a plate telling me that that was the pew of 
 Nellie Custis, the niece of George Washington. As I 
 looked on my right at the adjoining pew I saw upon it 
 "1772," and the word, "Washington," for that was where 
 the Father of our Country sat, in that identical pew in 
 that little country church. And it so happened, by one of 
 those strange accidents, that the door of the little church 
 was open; and just outside, with my right arm hanging 
 in Washington's pew, I saw yonder there a fresh stone in 
 the churchyard ; and on it, cut in letters large enough for 
 me to read, the inscription, "To an American Officer who 
 was killed in the Argonne." The link of thought between 
 Washington here and the dead soldier yonder was at 
 once affecting and inspiring; and I wondered then if 
 America could see that the great line of action which 
 one began and the other died in finishing was still un- 
 finished and that much remained for America to do before 
 her part in this great contest would be completed. 
 
 One day there came down to my desk a statement pur- 
 porting to be the record for the month of June of the 
 exports and imports of the United States. When I opened 
 it and saw that it said that the exports of this country in 
 that period were $918,000,000 and the imports but ap- 
 proximately one-third of that I had no feeling whatever 
 of exultation or of joy. On the contrary, the grave sense 
 of responsibility to our country as to what was involved 
 in those figures became more weighty as one thought ; and 
 at last it seemed a clear duty to bring that matter before 
 the President of the United States in a communication 
 pointing out to him the essential meaning of the facts 
 which those figures revealed. I told him that it was clear 
 that process could not go on; that it was not right, or 
 even possible, that it should continue ; for the building up 
 of this enormous balance in favor of this country was not 
 good, neither for us nor for those who were debtors for 
 those great amounts. 
 
94 THE INTERNATIONAL TRADE CONFERENCE 
 
 The situation is worse even than I thought at that time 
 for I did not then recall what ought to be clearly in your 
 minds as business men : that when we say we are accumu- 
 lating now a balance, as we call it, in our favor of about 
 four billion dollars a year as things are now running, that 
 balance is reckoned in American dollars at par. If it is 
 reckoned in the currencies in which it must be paid by 
 those who owe it you must add something like at least 
 twenty or twenty-five per cent from their viewpoint to it. 
 So the four billions of dollars in our favor now, reckoned 
 from the standpoint from which it must be considered by 
 most of Europe, is the equivalent of about five billions. 
 
 As I see it, the obligations of the world to the United 
 States are, as a whole, understated. The figures are so 
 very large that perhaps one is afraid to put them where 
 they really are ; but it is just as well for you and me to get 
 the facts as they seem really to be in order that we may 
 know just what the problem is with which we have to 
 deal. The ten billions of debt due us from abroad is gov- 
 ernment debt. That consists of loans made by the United 
 States Government itself. It has nothing to do with the 
 private transactions of the time; it is but one item in 
 the great account. To that must be added soon, if not at 
 once, the amount of a billion and a half dollars, being ap- 
 proximately three years' interest on this great sum, 
 which it is probable we shall fund for the nations abroad, 
 making the total government loan eleven billion, five 
 hundred million when so reckoned. To that must be ad- 
 ded an accumulating balance at the present rate of four 
 billions per annum on merchandise account outside of 
 the government loans, making a total of fifteen and a half 
 billions; and to that must be added another billion by 
 reason of the difference of exchange of which I have just 
 spoken. So, if we state the problem as one which involves 
 the earlier or later meeting of obligations at least fifteen 
 billions in extent, we shall know pretty well what it is we 
 have to face. 
 
 Now, gentlemen, debts are paid in three ways and only 
 in three : in services, in goods, or in cash or credits which 
 
THE INTERNATIONAL TRADE CONFERENCE 95 
 
 are a deferred form of cash. The world would be highly 
 thankful today if there were some other way in which 
 debts could be paid ; but, so far as I know, these are the 
 only ways in which they can be extinguished. Before 
 the war we had what we called a favorable trade bal- 
 ance of what seems now a trifling sum, from four hun- 
 dred to six hundred million dollars a year, more or less 
 as years vary. But that was only a visible balance and 
 the invisible balance covered it all up. We received, 
 for example, the services of foreign vessels for carrying 
 our exports; we disbursed in Europe large sums for 
 travelers' accounts; we had the services of insurance of 
 various kinds done for us; and we paid interest on for- 
 eign investments in this country, and in this and other 
 ways absorbed the so-called "favorable balance." But 
 those things do not exist today and the problem is the 
 worse on that account. 
 
 We are not spending largely for traveling abroad; we 
 are creating our own merchant marine; we are develop- 
 ing our own marine insurance companies and our other 
 companies on a larger scale ; we do not seek the services 
 that we did seek and which we then had to have ; we are 
 not able now to buy goods largely. The remaining source 
 is cash or credit ; and in that way, and in that way chiefly, 
 we must face the problem as it stands. I hope and be- 
 lieve that we shall open our doors much more widely than 
 they now are to receiving goods from abroad; for we 
 cannot sell if we do not buy. 
 
 This world can never get along with America trying 
 to sell goods to everybody and asking cash in return. 
 It would be arrogant, it would be unlike the spirit of 
 helpfulness which pervades this country, it would be im- 
 possible, anyhow. It is not to be thought of as a prac- 
 tical proposition that we should sit at the seat of customs 
 handing out goods in return for cash on delivery,, and I 
 hope the time may come in America when the business 
 men will have gotten so much vision that the idea of 
 selling goods abroad on the basis of cash with order and 
 the balance against shipping documents will hardly be 
 
96 THE INTERNATIONAL TRADE CONFERENCE 
 
 respected. It arises out of our juvenile experience with 
 the world; it is part of the youthfulness of our country 
 in foreign trade; it goes back to the time, relatively 
 speaking, when men demanded cash on each delivery be- 
 cause they trusted nobody. It is part of the isolation of 
 thought of America eminently desirable from a strictly 
 retail point of view, but quite unworthy and impossible 
 of one of the family of nations. 
 
 The question, then, for us is how we are to help along 
 with this mighty problem of which we hold two phases 
 largely in our own hands. We are the world's creditor. 
 Are we to be a hard one? We have, in addition to sup- 
 plies of raw material, the finished material and equip- 
 ment that the world needs. How are we to deal with 
 those two problems which we are to discuss today? How 
 would you business men deal with a customer of yours 
 who was in trouble but whose record was that of honor 
 and success, and high character? Suppose he, through 
 no fault of his own, became temporarily overwhelmed; 
 what would you, as American business men, do with him? 
 Would you draw a sight draft? Would you even ask him 
 to sign a three-months' acceptance, or would you rather 
 do what I know you have done : go to him as a friend and 
 say: 
 
 "Now, John, don't worry, don't worry; too bad you 
 had that fire; too bad that flood came; too bad things 
 are so ; but I am here to say that I am going to help you 
 through. I know you are just as anxious to pay as can 
 be ; you are a lot more anxious to pay than I am to get it, 
 because I know you are good. I am going to stand by 
 you, John,, and help you out." 
 
 Now, that is not altruism; it is just good sense, be- 
 cause the basic thing about John is John's character. 
 That is the bottom of all things; and if John lives and 
 nations do not die if John lives, John is linked to you 
 from that day forth by ties you never can break; and 
 it would not be any good for your competitor to come 
 around and offer John goods at five per cent less price 
 after you had saved his life for him. And so, from hard 
 
THE INTERNATIONAL TRADE CONFERENCE 97 
 
 business sense you deal generously with a friend in 
 trouble through no fault of his own. 
 
 Gentlemen, a great horror of selfishness burst upon 
 the world in August of 1914, something so hideous that 
 the idea of national selfishness ought to be hateful to us 
 all forever more, for we saw it revealed in all its naked 
 wickedness and evil ; and against it men struggled, strug- 
 gled for righteousness' sake, and for honor and for home, 
 bravely struggled at fearful cost; and we, in our com- 
 fort and peace, did not at first see it was our fight these 
 brethren were fighting, and out of it we profited largely 
 through their need. We did, and we cannot deny it; we 
 gained largely in material things out of their need. The 
 time had not yet come when our gain was to change 
 to a spiritual nature. It did come. We at last saw that 
 the English and the French and the Italian and the Bel- 
 gian armies were fighting our battle; that it was, after 
 all, just one modern phase of the old battle of Christian- 
 ity against Apollyon, of Christ against the Devil. 
 
 We saw it at last and we came into the struggle and,, 
 through the providence of God, the struggle was won 
 and the devil was chained. But then the waste places 
 were still left and the idle hands and the ruined homes 
 and the empty factories. Are we quitters? Do we call 
 our boys home when the physical fighting is done and 
 say: 
 
 "Thank God, it is all over. Now we can be at peace 
 here; with an ocean on each side of us we can be per- 
 fectly safe. There is nothing for us to worry about. Let 
 us take care of our own affairs, and let them look after 
 their own affairs." 
 
 But we cannot; we laid our hand to the plow and 
 we must plow the furrow to the very end. Why? 
 There is one thing more; we are parents, with the 
 nations these gentlemen represent, of new nations. There 
 sprang young countries into life, infants of ours, Poland, 
 Czecho-Slovakia, Serbia, the new Roumania, and others 
 besides them. We are the parents of these people and 
 we cannot forsake our children, unless we would be fore- 
 
98 THE INTERNATIONAL TRADE CONFERENCE 
 
 sworn before the world. You and I may not win a war 
 without having to face the consequences of having won 
 that war, and we cannot longer say aye, we have said 
 far too long already : 
 
 "Take care of yourselves ; it is no concern of ours." 
 
 Once let our people catch the vision of a world we have 
 in part created ourselves, and you may be sure America 
 will rise to that again. 
 
 But, gentlemen gentlemen from abroad we must ask 
 you to be very patient with this American people in cer- 
 tain things in which they may seem slow of action, and 
 in which they may be not prompt in response. You 
 should bear in mind that from our earliest days it has 
 been written into every American thought that we should 
 have just as little as possible to do with the nations that 
 were beyond the sea in any political or military,, or other 
 than friendly and commercial way. Every party in 
 American politics from our beginning down has had that 
 as an unwritten or frankly stated doctrine of its creed. 
 
 "No entangling alliances with the nations of the 
 world." 
 
 We have carried it so far as to get it in what we call 
 the Monroe Doctrine, which is, after all, but an exten- 
 sion outward into the continents of America of the in- 
 ward thought of every American that we deal solely with 
 our own domestic problems. That thought lies deeply 
 ingrained in American life. It was the power of that 
 thought which in a very large part held us back so long 
 from entering into the great military contest. It is the 
 reappearance of that thought in one or another form 
 which is delaying now our taking up more actively the 
 duty we owe to you and to our other fellows in Europe. 
 We ask you to be courteously thoughtful of that old idea, 
 still powerful, still projecting itself in many minds, with 
 the momentum of a century and a half behind it. 
 
 It is a thought which is passing away. It is a thought 
 which in the minds of our men of vision has passed 
 away. It is something which the sense of duty 
 to be done and a task to be undertaken will entirely re- 
 
THE INTERNATIONAL TRADE CONFERENCE 99 
 
 move; but it is something which acts for the time as a 
 brake, not as a cause of stoppage, but as a cause for a 
 relatively slow action that may give you some concern. 
 But let it once be clear that we can separate ourselves 
 in thought or action without being false to ourselves ; let 
 that once appear, make it plain, if you will, in going 
 about this country yourselves, that we are tied to you, 
 and must pull together,, and then that difficulty will go 
 also. 
 
 I hope, Gentlemen of England, France, Belgium and 
 Italy, that you will speak with great frankness to our 
 people. We like it; we like it quite as well when it is 
 something with which we have not in the past wholly 
 agreed to. The man who talks to us man-fashion with- 
 out reserve, kindly but plainly, is always welcome in 
 America. 
 
 Now, how are we to deal with the core of this whole 
 problem? That core is this, to help others who owe us 
 largely into a position where the payment of what they 
 owe will not be burdensome to them, and meanwhile to 
 provide them on an adequate scale in addition with the 
 thousands of things they need, but for which at the mo- 
 ment they have not the means to pay. That is a prob- 
 lem worthy of the very best thought of the American 
 business man, and it is not the most difficult because it 
 reverses this thought that I have spoken of. 
 
 Consider, gentlemen, that at the opening of our part 
 in the war two years ago in April, there were considered 
 to be but three hundred thousand investors in securities 
 in the United States, and that as a matter of fact over 
 twenty-one million persons became subscribers to Liberty 
 bonds. That was a revolution in thought. Now, just 
 such a revolution in thought has yet to take place in the 
 business circles before we shall get the means of dealing 
 adequately with this fraternal problem. We have not 
 been accustomed to buying the securities of foreign lands, 
 and there is no time to educate one hundred and ten mil- 
 lion people in that problem. The problem is too urgent ; 
 
100 THE INTERNATIONAL TRADE CONFERENCE 
 
 the needs are too great; they are here. We have got to 
 do something far more effective than that. 
 
 It has seemed to me that a new organization must be 
 created,, or organizations one or more of a kind, as yet 
 novel to our polity, but yet growing normally out of it. 
 I do not wholly agree with some of my wise and con- 
 scientious friends, as anxious as I am to see this problem 
 handled adequately, when they say that our banks are 
 able to deal with it. I doubt if that is either correct, or 
 if, being correct, it is wise. What we must do if we can 
 in this matter is to bring the entire credit-giving power 
 of the country to bear on this problem. We placed our 
 great loans because every household became a partaker 
 in them. We must place our great credits on the same 
 principle. I hope we shall get an organization which 
 shall combine within itself the banker, the manufac- 
 turer, the merchant and every other group of our people 
 that desires to be included, which shall represent the 
 whole round sphere of American life, American economic 
 power and which, because it does that, may be made the 
 center of an appeal in every village in the country, so 
 that in that way we can get the very heart and mind of 
 the United States with you and for you. 
 
 Yet we may not speedily create any such organization 
 to buy securities. If you went into many a prosperous 
 town of the central West or the far West or the South, 
 they would not so much as know what was meant in many 
 places if we asked them to buy the securities of another 
 land. We have got to adapt ourselves to the existing con- 
 ditions in order to carry the problem through. There- 
 fore, it seems to me we must have some such organiza- 
 tion as I have suggested which shall itself be in intimate 
 and active daily touch with the countries who need our 
 help and whom we desire to serve; that that company, 
 that organization, shall have a capital so large as to 
 compel respect and confidence from the beginning; that 
 it shall be supervised by the Federal Reserve Board, and 
 thus have the added confidence of intimate touch with 
 the Government,, although I do not believe that the Gov- 
 
THE INTERNATIONAL TRADE CONFERENCE 101 
 
 ernment itself should have any further place in granting 
 these credits. 
 
 Such an organization of such a character, so super- 
 vised, should be able to offer quick credits all over the 
 world, and nothing less than the whole round world will 
 do, for we shall greatly err, gentlemen, if we think of 
 ourselves as limited in this matter to Europe itself. It 
 might be our duty in behalf of Belgium to help along 
 in the Congo; it might be our duty in behalf of France 
 to do something in Madagascar to make some property 
 there more profitable. It might be our duty to aid in 
 Algeria. When people may come every day we ought to 
 be ready for them wherever they come from. So I hope 
 for a great organization which ought to have not less 
 than five hundred million dollars capital in it a billion 
 would be better still which will take the securities of 
 nations, provinces, states, railways, corporations of all 
 kinds, public utilities, and against those and supported 
 by its own wealth issue in this country at a current com- 
 mercial rate of interest in small and large amounts its 
 own debentures, so that Tom Jones, who has fifty 
 dollars, can buy a fifty-dollar debenture and know that 
 he is helping France to her feet, and be glad of the 
 knowledge. 
 
 And these should be put upon a basis so broad, should 
 be so disseminated in the country by an organization 
 akin in its scope to our Liberty Loan organization, that 
 they should become household words everywhere,, for I 
 take it that nothing less than several billion dollars is 
 going to do the job as it ought to be done, and that there 
 is to the American mind something inspiring in the very 
 bigness of it and that we should love it if it was a big 
 job, and we should not care about it so much if it was a 
 little one. So that appeals to me as the one thing which, 
 at the moment, modified as circumstances and discussion 
 may make necessary as the one thing which seems to me 
 an adequate step a step, for it is but one toward the 
 solution of this great problem. We must wait for our 
 payments, gentlemen. Thank God, we can afford to wait. 
 
102 THE INTERNATIONAL TRADE CONFERENCE 
 
 We must be patient and generous in the waiting. We 
 must prefer to wait; but our friends across the sea can- 
 not wait; we must not expect them to wait, gentlemen. 
 We must be prompt and quick and generous and we must 
 deal as friends with friends and not as hard misers with 
 those who are in need. 
 
 I have seen three or four cases of propositions of loans 
 abroad within the last month or two which filled me with 
 shame. We cannot, oh, my American friends, we cannot, 
 we cannot take advantage of those who are in distress. 
 We cannot for our own profit's sake treat them other 
 than brothers. We must not take a big shade oft the 
 loan we make. We must look far along the line to the 
 profit of the future and not to the grasp and gouge of 
 the present. The profiteer has no place in this job. This 
 is a case of helping brethren to their feet; and if we do 
 that they, being brothers, will respond as brothers should. 
 Let us look to the building up of a good will for America. 
 All around the world business men are dealing as Chris- 
 tians and gentlemen with brethren in distress. It may 
 do something to please the narrow-minded group of di- 
 rectors if out of some loan made at extortionate terms 
 a considerable profit were had for one institution; but 
 the credit of America and her ultimate wealth would 
 suffer in the doing. I beg that your hearts resent and 
 your minds refuse and your hands reject any suggestion 
 that in the granting of credits to Europe in these days 
 we do it save on the basis of brotherly kindness. 
 
 Nay, nay, are we to go without reward for service? 
 Not at all, not at all ; for these be gentlemen with whom 
 we deal and they do not accept service without reward. 
 All that I say is that it be due reward for due service 
 rendered in the spirit of brethren. For,, look you, my 
 friends, as a final word, look you, my friends, there are 
 three sources of profit coming from this to America just 
 as we owe to them in return for what they did for us; 
 for many of your factories, many of your public utilities, 
 many of your railways were built with money loaned by 
 France, by Great Britain, by Holland, by Belgium, and 
 
THE INTERNATIONAL TRADE CONFERENCE 103 
 
 by other countries. We took it up by the billions of dol- 
 lars when we were in need. We could not have developed 
 our great economic structure without their help. This 
 is but the case of "turn about is fair play." They did 
 not gouge us and we will not gouge them. But there are 
 three sources of profit possible to us and normal to us. 
 One, the righteous, normal interest on the investment 
 itself. Second, the business which normally will flow 
 from the operations carried on by American capital 
 abroad; and, third, the business which normally follows 
 as we build up patiently and well the countries which 
 these brethren so wisely represent. 
 
 I thank you for listening so patiently to this brief, and 
 necessarily very hasty review of a serious situation. It 
 is one which is worthy of your best. It makes an appeal 
 here ; yes, it will make an appeal to your purse and your 
 action, but not the appeal of charity,, unless by charity 
 we mean its ancient meaning, love. 
 
 The Chairman: I know that I express your sentiments 
 when I say to our Secretary of Commerce that we are 
 all of us deeply grateful to him for this accurate and 
 far-visioned picture that he has given to us of America's 
 opportunities and responsibilities. 
 
 Address of M. Eugene Schneider, 
 
 Chairman of French Mission; President Creusot Works; President 
 
 Iron and Steel Institute of France; Former Member 
 
 of the Chamber of Deputies. 
 
 The Chairman: We have heard a word as to America, 
 her present status, and her future opportunity and duty. 
 What of Europe, prostrated by this terrible struggle? 
 There can be no thought of war and the successes that 
 have come out of it without realization of the magnificent 
 
104 THE INTERNATIONAL TRADE CONFERENCE 
 
 contribution to success made by the business and indus- 
 trial leaders of the world ; for, in the last analysis, victory 
 lies at the will of those who command materials and ma- 
 chinery to place in the hands of heroic soldiers, and there 
 can be no survey of Europe and the magnificent heroic 
 work done there without the many contributions of the 
 industrial generals of the world. In that staff of mag- 
 nificent leaders none stands out with greater prominence 
 than the head of this distinguished French Mission, our 
 guest here, M. Eugene Schneider, the head of the great 
 Creusot Works of France. 
 
 President Ferguson said last night in reference to him, 
 that the product of his great plant, the French 75's, had 
 become a household world in America, and I am sure it 
 was only through neglect that he failed to mention the 
 fact that the first shot fired by America in the war was 
 from the mouth of a French 75. 
 
 Of all the business leaders of Europe none is better 
 qualified, none has more valuable experience, or better 
 analytical powers than has M. Eugene Schneider to pre- 
 sent to you in picture the difficulty as it exists in Europe 
 today. It is my privilege and pleasure, therefore, to call 
 upon him as the first of our distinguished guests selected 
 by all of the Missions to first give to us a survey of 
 Europe as a whole. 
 
 M. Schneider said : 
 
 "Jamais si belle cause n'avait attire 1'attention des 
 hommes; c'etait le dernier combat de la liberte et sa 
 defaite ne lui laissait ni asile, ni esperance." 
 
 Gentlemen, that is how Lafayette expressed his admi- 
 ration and enthusiasm for the cause of American Inde- 
 pendence ; namely : 
 
 "Never had so noble a purpose offered itself to the 
 judgment of men. This was the last struggle of liberty; 
 its defeat then would have left it without a refuge and 
 without hope!" 
 
 A hundred and fifty years later, the same impulse urged 
 you to our shores, and no sooner had your soldiers landed 
 
THE INTERNATIONAL TRADE CONFERENCE 105 
 
 in France than they saluted the tomb of Lafayette with 
 these words : 
 
 "Lafayette, we are here !" 
 
 It is with deep emotion that we have now set foot in 
 America, whence in a never-to-be-forgotten hour sprang 
 the glorious legions which, in the cause of righteousness 
 and freedom, joined their arms with ours and helped us 
 to win the victory. May I add that our visit is in some 
 sort a pilgrimage and particularly moving for a French- 
 man because he sees the shades of those great ancestors 
 who so providentially formed a friendship now over a 
 century old. 
 
 Your invitation, gentlemen, and the presence here of 
 these Missions are the proof of our desire to continue, 
 now that peace has come, the good work begun in the war. 
 We are all convinced that our victory is not an end but a 
 beginning, a herald of further victories which we shall 
 share together; and side by side with you, before the 
 boundless expanse spreading out to human activity, an 
 outburst of faith and hope lifts us up, while in the heav- 
 ens we see rising the dawn of a new era. 
 
 In the discussions to which we are invited we shall be 
 unreservedly plainspoken. We are strangers to the arts 
 of diplomacy. We look men in the face as becomes 
 friends who feel worthy of each other. We shall tell you 
 of things as they are, guided, not by our desire to please 
 you, but inspired solely by the truth not with a pre- 
 occupation of selfish interests, but with the lofty con- 
 scientiousness of our common good. 
 
 The problem lying before us is the greatest and most 
 stirring of all. We are gathered together to examine the 
 state in which the war has left, not only the countries we 
 represent, but also the rest of Europe and indeed the 
 whole world, and to consult with you about the best treat- 
 ment to insure the healing of wounds caused by this un- 
 exampled crisis. 
 
 When the armistice was signed, now nearly a year ago, 
 all the Powers were more or less like sick men who, no 
 sooner have their fever abated, than they think they are 
 
106 THE INTERNATIONAL TRADE CONFERENCE 
 
 well again and start about their business. They are 
 taught by their helplessness that between sickness and 
 health there is an intermediate state called convalescence, 
 and they learn to their cost that convalescence is as hard 
 to overcome as sickness. 
 
 Only now are we really able to begin to measure the 
 havoc wrought by the awful disease that war is. Physical 
 havoc! Moral havoc! 
 
 The physical havoc is easily seen. Cast up the account 
 of the wooden crosses in the cemeteries, of the women in 
 mourning in the streets ; travel from Dunkirk to Belf ort ; 
 visit the Venetian provinces of Italy ; go through Belgium, 
 through Poland, through Serbia; cast up the account of 
 devastated fields and forests, burned factories, villages 
 blown out of existence ! Cast up the accounts of billions 
 owing by the nations ! 
 
 But, even when you have made up the tremendous 
 total, you will not yet understand the enormity of the de- 
 struction wrought by the German people in their last war, 
 the immensity of the whirlpool where they have engulfed 
 men and money. There are figures so stupendous that 
 our imagination is at a loss to comprehend them. Can 
 you represent to yourselves 10 million slain, 10 million 
 dead men, lying in three parallel continuous lines 
 stretching from New York to San Francisco ? 
 
 Such is the tribute that the world has paid to war. Add 
 the wounded and the maimed and those that war has 
 rendered unfit. You must bear in mind that a mass of 
 over thirty million human creatures have suffered from 
 the war, being either utterly destroyed or broken for ever. 
 
 When an attempt is made to rate the material losses, 
 the results arrived at are terrifying. In France, alone, 
 the damages inflicted upon dwellings, farms, mines, fac- 
 tories, railroads, canals and highways amount to a total 
 of 27 billion dollars. Add to that figure the war-expen- 
 diture proper, including pensions payable to the widows 
 and the maimed, and the total for France alone rises to 
 71 billion dollars, a figure officially given in the Chamber 
 of Deputies on September the ninth, last. 
 
THE INTERNATIONAL TRADE CONFERENCE 107 
 
 To the different nations which took part in the war, it 
 is generally admitted that the cost has been more than 
 200 billion dollars. What brain can conceive of such a 
 sum ? The Franco-German war cost France 2 billion dol- 
 lars, including the indemnity exacted by Germany; the 
 Russo-Japanese war cost Russia over a billion dollars and 
 Japan half a billion; the Civil War cost three and a half 
 billion dollars. But the war of 1914-1918 has cost ten 
 times more than all the wars waged in the world since 
 1850. 
 
 Formidable though these figures are, they do not tell 
 all the facts. One of the most evil effects of the war has 
 been the diminished production of certain raw materials 
 indispensable to modern life. Everyone is aware, for 
 instance, that the world lacks coal. So acute is this short- 
 age in many parts of Europe that it impedes industry, 
 interferes with railroad haulage, delays shipping and this 
 accentuates the general burden of reconstruction, while 
 the people are deprived of the fuel upon which they de- 
 pend for cooking and heating. Likewise, there is a short- 
 age of cotton, linen, wool, fertilizers, oil, sugar, grain, etc. 
 
 At the outbreak of the war, each nation was like a vast 
 firm whose cellars and stores contained stocks accumu- 
 lated by former generations. At the present time, cellars 
 and stores are well nigh empty. We used all our stocks 
 and for a space of five years we produced only to destroy. 
 Never have the wants of Europe been greater nor her 
 resources more scanty. Eleven months after the armi- 
 stice, eleven months after our victory, we are poor, weak 
 and crushed under an enormous debt ; our populations are 
 too scantily fed ; rationing is still in force ; the cost of liv- 
 ing continues to rise at a more rapid rate even than 
 wages or salaries ; many a home is not even assured of its 
 daily bread. 
 
 To be fed and clothed, to set industry going and give 
 employment, we must buy abroad. And, as we cannot 
 sell abroad in the same proportion, the exchange rate of 
 our currency rises against us; therefore our purchases 
 cost us more, causing our debts to increase and our credit 
 
108 THE INTERNATIONAL TRADE CONFERENCE 
 
 to fall. Where once we were creditors we now have be- 
 come debtors. 
 
 Gold currency is no longer seen. The distribution of 
 wealth in the world, the value of money, international 
 trade, the conditions of labor have all changed. The sud- 
 den return to peace has not been able to stop our coun- 
 tries on the steep slope where war was rolling them. 
 
 The moral ravages of war are no less grave, though of 
 a nature more difficult to describe. 
 
 The war was a powerful magnet attracting the whole 
 activity of all the individuals of the nation. Not an hour 
 but was taken up by work, not a minute free from 
 uncertainty; every movement, every step had its sig- 
 nificance; everyone was straining in one gigantic effort, 
 as our great statesman M. Clemenceau remarked in those 
 striking words : 
 
 "Je fais la Guerre !" 
 
 When suddenly the magnetism ceased, the mainspring 
 snapped. The first impression was one of relief; every 
 heart was brimful of joy. It seemed almost as if human 
 nature could not stand such intense emotion. 
 
 As a float, suddenly freed of the weight that keeps it 
 down, shoots up to the surface of the water, so there 
 sprang up in the minds of men a belief that everything 
 would change radically and quickly, as though by some 
 miraculous process. 
 
 Victory, so long prayed for, even by unbelievers, sud- 
 denly assumed a magical and all-powerful character. To 
 it would belong the power of tearing the clouds asunder 
 and making the light shine forth. We had left the 
 Inferno ; we must therefore be in Paradise. 
 
 With its iron-gloved hand, war had stimulated zeal, 
 brushed aside petty jealousies, curbed impatient minds, 
 subdued bodies and soul but, as it now suddenly disap- 
 peared, there surged upward clamorous demands, selfish 
 passions and interests, hitherto suppressed or util- 
 ized for a superior end. Such a state of mind supervening 
 in such a precarious economic situation, such a paroxysm 
 
THE INTERNATIONAL TRADE CONFERENCE 109 
 
 of excitement upon too weakened a system, could not but 
 stir up numberless complications. 
 
 The first intimation given to us of this state of affairs 
 was a slackening of effort. Overstrung muscles were 
 seeking rest. There spread over the nations that had 
 been so long at war a wave of indolence. The workers, 
 pleading the sufferings they had so bravely undergone, 
 claimed an eight-hour day. In vain did economists point 
 out that to remedy the general shortage it was necessary 
 to work and increase production. No one cared to over- 
 look the merits of the workers nor their right to conces- 
 sions; what they demanded was granted; moreover, the 
 men promised to do in eight hours the work previously 
 done in ten. In actual fact, however, with fewer hours 
 of work an alarming decrease occurred in production. 
 
 Then came a wave of delusion about the efficiency of 
 Government intervention, a blind belief in its absolute 
 power and its inexhaustible providence. During the war 
 the Government had been dictator and sole employer. 
 The Government provided everything. The Government 
 paid high wages. There was no limit to its wealth and 
 liberality. No one complained. No one thought of resist- 
 ing. The habit had only to be continued and the times of 
 bliss predicted by Karl Marx would be at hand. 
 
 Socialization and nationalization were put forward as 
 sovereign remedies for all diseases. The railroads, the 
 mines, the merchant fleets, water-power, if nationalized, 
 were to bring back abundance and prosperity; and the 
 masses began to demand, in a more pressing manner a 
 radical social transformation. 
 
 Yet the cost of living continues to increase day by day. 
 It is attributed to the scarcity of foodstuffs, depreciation 
 of money and disorganized transportation. But the re- 
 duced production, the increased wages and, above all, the 
 growing demands of consumers and the general rapacity 
 of merchants and dealers have their share in the crisis. 
 At any rate, the cost of living spreads dissatisfaction and 
 is the chief obstacle to the blessings of Peace. 
 
 And, lastly, note that, at the close of the war, men have 
 
110 THE INTERNATIONAL TRADE CONFERENCE 
 
 become more impatient and violent. They demand imme- 
 diate satisfaction of their uttermost desires. They listen 
 willingly to agitators and extremists. In five years' time 
 the world has been thrown out of gear. Yet these men 
 pretend to put it right in one day without taking into ac- 
 count either past or present circumstances. 
 
 One of the consequences of this impatience is the multi- 
 plication of strikes. Never have strikes been more nu- 
 merous or more brutal yet never has there been a more 
 conciliatory spirit among employers. Never has the stop- 
 page of work had more disastrous results. 
 
 It must be acknowledged that wisdom is in peril and we 
 are tempted to recall the fable told ages ago by Agrippa, 
 of the stomach and the limbs. But why wonder that 
 amidst the universal upset the human mind has turned 
 giddy? A new name has been bestowed on the malady 
 from which it suffers: 
 
 Bolshevism. 
 
 Everyone knows what the word means. If, at certain 
 times, and in certain places, the illusion was entertained 
 that out of Bolshevism might be evolved a stable and 
 prosperous regime, it is only too sure today that in the 
 grip of that mad force, Russia is slowly dying. Nothing 
 is more tragical than the death-throes of that gigantic 
 body, convulsed by madness. When one thinks of the 
 sacrifices made by the Russian people in the common 
 cause, one cannot but feel an immense pity. It behooves 
 us to keep ever before us that Bolshevism is a social 
 plague which must be prevented from spreading at any 
 cost. Bolshevism is dangerous both directly and indi- 
 rectly. 
 
 Directly, since its leaders are striving at a methodical 
 propaganda. Their avowed design is to set the world 
 ablaze so as to realize their crazy plans. And because 
 Bolshevism can prolong its existence only by spreading to 
 other countries, so Lenine has sent out into the world 
 numerous agents well equipped for their nefarious propa- 
 ganda. It is no exaggeration to state that there exists 
 
THE INTERNATIONAL TRADE CONFERENCE 111 
 
 at the present time a Bolshevist plot, the network of 
 which covers the whole world. 
 
 Indirectly, Bolshevism is no less dangerous. Initiated 
 by a few reforming but powerful minds, it embodies doc- 
 trines in which there is mostly nothing but the old in- 
 stinct of anarchy. To this latter it lends a semblance of 
 dignity and idealism and then, leads weak minds astray. 
 It is near enough to us for its example to attract and in- 
 vite the imitation of some ; it is far enough away for the 
 effects of its formidable dictatorship to remain shrouded. 
 The physical and moral disturbance succeeding the armi- 
 stice has singularly helped it to spread. And thus it has 
 reached Germany, Austria, Hungary, and the rest of 
 Europe and thence the world. 
 
 It must not be fancied that the disturbances to which 
 we refer are confined to Europe or certain European 
 States. In different degrees they are common to the 
 whole world. They have not spared neutrals any more 
 than belligerents. Strikes and social unrest are to be 
 found in Sweden and in Switzerland. No country can 
 boast of not harboring the poisonous germ of Bolshe- 
 vism. We have only to glance at the newspapers. We 
 have only to open our eyes and look around us. Through- 
 out the whole world, we see sudden outbursts of frenzy. 
 They are to be accounted for only in one way. 
 
 Those who expected the millenium to arise from Vic- 
 tory and Peace have been cruelly mistaken, and those who 
 thought that, the enemy being down and out, everything 
 would be easy, now see that a new effort is necessary. 
 
 There was no need to explain the war ; everyone under- 
 stood its message written in blood-red letters. The pres- 
 ent struggle appears less clearly and in a less imperious 
 manner. It has been defined as the organization of the 
 convalescence of a sick world. 
 
 Now, that convalescence must first take place in the 
 domain of economics. Restore the economic balance and 
 the moral balance will be restored of itself. The man who 
 receives wages adequate for his wants, who is decently 
 fed and can feed his family decently does not ordinarily 
 
112 THE INTERNATIONAL TRADE CONFERENCE 
 
 dream of complaining. He listens no more to evil influ- 
 ences nor cares to bear through the world the torch of 
 revolt. It was said long ago that the social question was 
 a food question. Without scarcity of food and bank- 
 ruptcy, how many revolutions would have been im- 
 possible ! 
 
 To restore the economic balance of the world such, 
 gentlemen, is the pressing and all-important task. 
 
 How can it be effected? 
 
 Under the pressure of circumstances and taught by ex- 
 perience, the Allies during the war, in the same way as 
 they entrusted their military operations to one mighty 
 brain and generous heart, organized their production for 
 the common good. To a united military front corre- 
 sponded a united economic front. Each government 
 would cast up the account of its wants and receive its 
 proportion of foodstuffs, raw materials and tonnage. 
 
 After the armistice, it was thought that Liberty would 
 be sufficient to restore abundance and harmony in the 
 world. It was thought necessary to allow the individual 
 to exert his spirit of enterprise and leave the different 
 governments to their own responsibilities. To continue 
 Inter-Allied cooperation seemed like putting a premium 
 upon carelessness and laziness, everyone being able at any 
 time to count upon the help of others. 
 
 But is not Liberty at once the best and the worst of 
 systems? All depends upon circumstances and environ- 
 ment. Salutary today, she may be fraught with evil to- 
 morrow. It may be expedient to restore her only by de- 
 grees. To bring her back suddenly may destroy every- 
 thing. Liberty, to take wing, must have a more stable 
 starting-place than chaos. 
 
 At any rate, since November, 1918, it cannot reason- 
 ably be pretended that the convalescence of the world has 
 made any progress. The evils from which it suffers have 
 become worse. I was trying a moment ago to tell you 
 how matters stood. Products have reached formidable 
 prices. Their distribution meets with a thousand diffi- 
 culties. The crisis of international money exchange has 
 
THE INTERNATIONAL TRADE CONFERENCE 113 
 
 assumed unlooked-for proportions. Dissatisfaction, inse- 
 curity, anxiety are growing apace. 
 
 The experience has been so conclusive that the Allies 
 have called together again the Economic Council which 
 they had thought it possible to dissolve. Once again, they 
 have felt the necessity of cooperation, the necessity of 
 following a preconcerted plan, now that new enemies, 
 anarchy and the spirit of disorder, must be crushed as 
 Germany was crushed. 
 
 Most emphatically must it be asserted that today it is 
 not right to exclaim, "Every man for himself." Such 
 language would be justifiable if the war had laid upon 
 all the Allies an equal burden and if our Victory had left 
 them all in the same condition. 
 
 But it must be recalled that Fate weighed upon us in an 
 unequal manner. Fate levied neither the same tribute of 
 blood nor the same tribute of money. Some saw their 
 land invaded on the first day of the war. Some served 
 on the field of battle during years; others were spared. 
 Some were obliged to devote their whole industrial 
 strength to war work ; others carried on their commercial 
 activities. The ones, for the common good, gave up build- 
 ing ships in order to build more guns and aeroplanes, the 
 others launched new fleets. During the war those who 
 had ships sent them to those who were short. Those who 
 had steel and coal sent them to those who had none. In 
 that way was Victory secured. 
 
 How should we stand if every one had not tried to do 
 better than his neighbor, begrudged his sacrifices and sel- 
 fishly worked for his own future? We should have been 
 beaten long ago. But, by acting as they did, by giving 
 everything in common to one common end, the Allies have 
 contracted a mutual obligation not to forsake each other. 
 If they were to forget that now, our victory would belong, 
 not to all of us but only to some. It would be changed 
 into a defeat for the others and precisely for those who 
 made the greatest sacrifices to insure success. 
 
 When they invaded Belgium and Italy and especially 
 the north and northeast of France, the Germans syste- 
 
114 THE INTERNATIONAL TRADE CONFERENCE 
 
 matically destroyed all industry likely to compete with 
 theirs after the war. They set fire to towns and villages, 
 laid waste the fields, cut down the orchards, enslaved the 
 young and put to the sword, generally in cold blood and 
 with revolting ruthlessness, old men, women and chil- 
 dren. In carrying out their wicked work they thought, 
 "Triumphant or beaten, our enemy needs must succumb 
 under such treatment." The Bulgarians, when they in- 
 vaded Serbia, acted in the same way. 
 
 Today the unity of the Allies alone can foil such base 
 schemes. Without that unity we must proclaim from the 
 housetops that the world will emerge from Victory beaten, 
 and Germany will have won the war. Everyone must be 
 absolutely enlightened on that score. Given the circum- 
 stances under which Victory was won and the price it 
 cost, it is only a provisional and conditional victory. To 
 be final, the victorious team of today must be the more 
 prosperous in ten years' time. The honor of the Allies 
 would be tarnished if any of them, through lack of help, 
 now died of war wounds. 
 
 When America entered the war, she said, "To the bit- 
 ter end." Now, a military victory is not the end of the 
 war. By taking part as it did in the European War, the 
 United States seemed the instrument of the conscience of 
 mankind. The minds that have faith in the triumph of 
 idealism, righteousness and morality, over brute force 
 and injustice looked up to, and still look up to America. 
 
 You cannot realize what a moral prestige your country 
 possesses, and it is not possible for any one of you to 
 think of throwing away such a precious asset. You have 
 all understood the meaning of our victory. You know 
 that it means the triumph of moral over physical forces. 
 You know that the mightiest forces are righteousness, 
 honor, generosity, magnanimity. Because they possessed 
 none of these forces the Germans were beaten. You 
 know all, that when the fate of the world remained still 
 uncertain, you turned the scale with the weight of your 
 sword. The same feeling inspired Lafayette when he said 
 to Silas Deane, "You must show confidence, and it is in 
 the midst of perils that I care to share your fortune." 
 
THE INTERNATIONAL TRADE CONFERENCE 115 
 
 The moral interest of the United States is to continue 
 to help Europe. You have proved to the world that for 
 the sake of an ideal you are capable of the greatest sac- 
 rifices, and now, that financial and commercial interests 
 enter into question, would you shrink from helping ? 
 
 The United States should not forget that it has invested 
 in Europe 10 billion dollars, a part of its national wealth. 
 It generously lent money to the Allies because it thought 
 them honest and able to hold good against the attacks 
 of the powers of tyranny. The Allies are today no less 
 honest and no less able. Their task is no new one ; it is 
 the logical outcome of the one in which you took part; it 
 is no longer the task of winning the war but of healing 
 the wounds of the war. Healing those wounds means for 
 the Allies paying their debts and corning back to health 
 and strength. 
 
 "Stand back," I say to those whom a French statesman 
 has dubbed "Apostles of Pessimism." To be convalescent 
 is not to be moribund, and it would be a paradox indeed, 
 to doubt the valor of a champion when he has just won a 
 match. 
 
 In 1914, Germany thought the Old World exhausted. 
 She thought she alone remained in good health amidst 
 many sick nations and that she could easily overcome 
 such puny adversaries. On that delusion she built her 
 plan of campaign; she counted on Frivolity in France, 
 weakness in unprepared Belgium, indifference in Great 
 Britain and Italy. She misread the signs. A second 
 time she made a similar and no less destructive mistake. 
 She thought she could allow Bolshevism to spread through 
 Russia without being infected herself. And lo ! It came 
 to pass that Bolshevism easily gnawed at her vitals. And 
 the nations whose fall she expected, displayed on the con- 
 trary, the indefinite resources of indomitable determina- 
 tion. 
 
 Our old nations that have known so many vicissitudes 
 contain within themselves mysterious forces which come 
 to light in time of peril. Do not be mistaken. Ours is but 
 
116 THE INTERNATIONAL TRADE CONFERENCE 
 
 a temporary weakness. We are bound to recover. In only 
 one case, gentlemen, would it be permissible to despair. 
 If we had no consciousness of our condition or, if having 
 the consciousness, we took our condition for granted with 
 hearts resigned and arms crossed. 
 
 Now, gentlemen, what is the situation in the Allied 
 countries? Plans, criticisms, activity, haste everywhere. 
 Are those signs of death ? No ! Rather symptoms of life. 
 When the anthill has been disturbed, the ants hurry about 
 in apparent disorder. The passer-by may believe they are 
 fleeing from their destroyed home. But next day he will 
 find it rebuilt. Everywhere the European organism is 
 reacting; everywhere antidotes are being elaborated; 
 everywhere the remedy is arriving for the disease. 
 
 At the present moment, we are suffering from three 
 main diseases; insufficient means of transportation, high 
 prices, inflated paper currency. Note that each evil bears 
 in itself its antidote. The crisis in transportation comes 
 from insufficient rolling stock. No doubt, but it rises also 
 from a formidable increase in traffic. High prices and in- 
 flated currency come from insufficient production and 
 profiteering. No doubt, but they arise also from a con- 
 siderable increase in consumption. If, immediately after 
 the armistice, life had begun again slowly and according 
 to the rhythm adapted to our scanty means, there would 
 have been no crisis. The crisis occurred because life was 
 impetuously driven through too narrow a channel be- 
 cause the hearts of men were beating too fast and too im- 
 patiently. 
 
 In our several countries, the Governments and the 
 people are endeavoring, with an energy resembling that 
 displayed during the war, to cope with the evils and stamp 
 them out. Road transportation is organized; traffic is 
 diverted to the canals ; no possible expedients are ignored. 
 Laws have been made against profiteers. City councils 
 have become dealers in foodstuffs. Governments have 
 opened stores and stimulated cooperative buying. The 
 people are forming protective leagues. The Press tries 
 its best to back these efforts. 
 
THE INTERNATIONAL TRADE CONFERENCE 117 
 
 As to the international money exchange crisis, had this 
 not been foremost in our preoccupations, we should not 
 have crossed the Atlantic to confer about it with you. 
 Never mind if success does not come immediately. The 
 essential thing is to attack the problem; the essential 
 thing is to show good will. 
 
 I spoke a moment ago of the moral ravages of the war. 
 In that field also a vigorous effort of prophylaxy has be- 
 gun. When the eight-hour day became law the repre- 
 sentatives of the workers acknowledged that the reduc- 
 tion should not entail a diminution in production. Yet, 
 production had diminished. 
 
 This then raises the questions: "Must machinery be 
 improved ? Must overtime be worked ? Must we fall back 
 to a ten-hour day" ? Open a Belgian, French, English, or 
 Italian newspaper. The subject is discussed by men of 
 opposite parties with remarkable high-mindedness. 
 Every factory, every workshop is trying to institute 
 bonus systems or other schemes of payment likely to 
 enhance the spirit of increased production. 
 
 The abuse made of the work socialization and nation- 
 alization has now brought about a formidable reaction. 
 The common sense of the people, their instinct of social 
 conservation have both shown themselves in opposition to 
 premature experiments, particularly when proposed under 
 such highly unfavorable circumstances. Public opinion 
 though ready to stand by the workers in any reasonable 
 claims and to help them in any efforts toward better- 
 ment, has made it clearly understood that there are limits 
 which must not be overstepped and that revolutionary 
 adventures are not to its taste. Strikes upon which agi- 
 tators were counting, have failed for lack of popular sup- 
 port. Everywhere the more moderate elements among 
 the workers are getting the upper hand. The interna- 
 tional strike that was to have broken out on July 21st was 
 a signal failure. But the idea of labor contracts, and of 
 recourse to arbitration, as between employers and em- 
 ployed, is making progress. 
 
 Bolshevism, after fancying that Europe would be an 
 
118 THE INTERNATIONAL TRADE CONFERENCE 
 
 easy prey, has met with an indomitable resistance in the 
 Allied nations. It broke out in Munich and Budapest, but 
 stopped at Allied frontiers. This does not mean that we 
 do not dread it, but we are on our guard. In all the 
 allied countries the elements of order are grouped against 
 Bolshevism. In all elections the motto is: "War against 
 Bolshevism." Unless she is deliberately cast into the 
 monster's jaws, old Europe will not allow herself to be 
 devoured. 
 
 In such times as we are passing through, it is extremely 
 difficult to find out what is taking place in Europe. Trav- 
 elers who visit our countries, even if they talk with the 
 best informed men, can hardly appreciate the real degree 
 of vitality of our nations. 
 
 For that, it would be necessary to mix with the popula- 
 tions of the cities and watch the thousands and thousands 
 who work in the factories ; but anyone seeking that expe- 
 rience would come back fully reassured. 
 
 He would have seen the Belgians, fired with their hero- 
 ism, strongly tempered by their trials, sweeping away the 
 ruins and already hard at work. He would have seen the 
 Englishmen in spite of labor troubles, methodically grap- 
 pling with every problem, slowly winning back their for- 
 mer position in shipping and doggedly forcing down the 
 unfavorable balance of trade. He would have seen what 
 a fund of energy the Italian people possess, abstemious, 
 hard-working, always ready to earn money abroad and 
 take it home to the old country. He would have seen 
 France mourning the loss of a million and a half of her 
 sons, with her fairest provinces laid waste, clasping in her 
 arms reconquered Alsace-Lorraine, prouder, more up- 
 right, more resolute than ever. In all our countries he 
 would have seen mothers, wives, and daughters, of heroes, 
 some of whom have bent over the wounded in ambulances 
 and others taken in the place of soldiers in factories, on 
 farms and in every form of labor women of every social 
 grade, showing the same confidence in the future, the 
 same hopeful smile. 
 
 We were told that, among those who have recently been 
 
THE INTERNATIONAL TRADE CONFERENCE 119 
 
 in Europe, some have returned with the impression that 
 France seems the most weakened. Is it not because for 
 five years thousands of square miles of her territory was 
 the battlefield of the world and because it was she, who 
 made the greatest and longest sacrifices? For the last 
 six hundred years it has been said that France is lost! 
 The saying was current at the time of the Hundred Years' 
 War. It was repeated after the religious wars of the 
 sixteenth century. It was repeated after the Revolution. 
 It was repeated again in 1870. Yet, every time, she 
 springs up younger and stronger than ever ! 
 
 The land of Joan of Arc, Henri IV, Napoleon, cannot 
 perish ; nor can that country perish which has given birth 
 to the blue-coated, blue helmeted, mud-bespattered war- 
 rior the wonderful and immortal "Poilu." The words of 
 a French general, whom you all know, may be applied to 
 the undaunted spirit of France. When the flower of the 
 German army was hurled against the 20th Army Corps in 
 the first battle of the Marne, the great Foch, then only a 
 divisional general, wired in reply to the anxious inquiry 
 of the Commander-in-Chief : "Enemy pressing on my 
 right and breaking through my centre ; maneuvering out 
 of question; am taking offensive." 
 
 The question is therefore not whether we shall recover. 
 Recovery is certain and those who put their trust in us 
 will not be deceived. The question is: How long will it 
 take us to recover? With your help, recovery will be 
 speedy ; without you, recovery will be a more difficult and 
 lengthy process. 
 
 If you remain strangers to our efforts you will remain 
 strangers to our future, but you will not remain strangers 
 to our sufferings. You will know our sufferings and evils, 
 which will reach you in spite of yourselves, in spite of our- 
 selves. The war has once again proved that the earth is 
 round and a singularly smaller planet than of old. The 
 times are no more when a farmer could quietly plow in 
 one valley while fighting and killing was going on in the 
 next. A disturbance in one part of the world is felt in 
 every other part, just as an atmospheric disturbance in 
 
120 THE INTERNATIONAL TRADE CONFERENCE 
 
 one zone affects the wind in the uttermost regions of 
 space. The ocean is no more a barrier against social and 
 political storms than it is against a hurricane. 
 
 I am convinced that the United States cannot hold aloof 
 from Europe. The needs of Europe are great and varied 
 and she will remain for a long time one of your best cus- 
 tomers. Suppose that, on account of the rate of ex- 
 change, we should cease buying from you. How would 
 your industries be affected? Would there not be over- 
 production. Would there not be considerable unemploy- 
 ment? Would there not be a wide economic disturbance 
 with all its consequences ? 
 
 The gold heaped up in the cellars of your banks must 
 not give you too much confidence. Bear in mind that 
 gold is a fiction. Its value arises from its being a medium 
 of exchange. If the gold is all on one side, exchange be- 
 comes an impossibility. An abundance of gold may be as 
 evil in its consequences as a scarcity of gold. 
 
 Your interest, no less than ours, is involved, in the 
 financial problem of the Old World, and if only loans can 
 bring the rate of exchange down to a reasonable level, 
 that should be one reason the more for Americans to 
 invest in such loans. 
 
 It is not out of place to recall here the example of 
 France in the past, as quoted by an American author, 
 Charlemagne Tower, in his remarkable work on La- 
 fayette : 
 
 "Comparatively few people of the present generation 
 are aware of the inestimable benefits which the French 
 conferred upon our forefathers during the American Rev- 
 olution, at a time when America was without credit 
 abroad and when our cause aroused no other national 
 sympathy in the world than that of our faithful ally. 
 
 "But for us Americans the essential facts to be remem- 
 bered in connection with the alliance are that we went 
 of our own accord to France to ask for help, and that we 
 received it from her. Not only did she encourage us by 
 the permission which she granted our agents to obtain 
 supplies and munitions of war in her ports for the main- 
 
THE INTERNATIONAL TRADE CONFERENCE 121 
 
 tenance and equipment of the Continental Army, but she 
 employed her own credit to borrow large sums of money 
 which she advanced to Congress, and she sent her soldiers 
 and her sailors to serve under the command of General 
 Washington and to fight for us in the battles of the 
 Republic." 
 
 If the United States should forsake us, the war would 
 be a stirring and glorious memory, but also an episode 
 without lasting benefits, something like an uncompleted 
 work. A merciless economic war would soon break out, 
 and once more clouds would gather in that clear and beau- 
 tiful sky that should eternally spread over the ceme- 
 teries where our glorious dead lie side by side, sharing 
 their glory after having shared their perils. 
 
 Gentlemen, you want the Victory to be a just one, that 
 is to say, one that shall make reparation for the wrongs 
 inflicted by the war ; you want the Victory to be beneficial, 
 that is to say, the first link of a new chain, the dawn of a 
 new era of peaceful work and progress. 
 
 For the sake of American trade and industry, for the 
 sake of the loans you have made to us, for the sake of 
 helping Europe to start production, for the sake of sweep- 
 ing away discontent and consolidating Peace, and for the 
 sake of preserving and increasing American prestige, you 
 will surely work with us. 
 
 Behind us stand nations whose guardians we are be- 
 cause we have freed them from oppression. Let us not 
 separate our cause from that of the Czecho-Slovaks and 
 the Poles and the Jugo-Slavs. When we speak of our 
 recovery we think also of theirs. By helping us you are 
 helping them. 
 
 To the Chamber of Commerce of the United States is 
 due the credit of foreseeing and understanding the pres- 
 ent situation, and it has shown the American people the 
 road to follow. This day that has brought us together 
 will remain a memorable one. For there will be no real 
 peace, no resurrection in the world as it is, if the peoples 
 of the Allied and Associatied Nations do not get into 
 close touch, exchange views, compare notes and add the 
 
122 THE INTERNATIONAL TRADE CONFERENCE 
 
 ties of business to those of sympathy. That is why we 
 are here. By getting together we serve the interests of 
 our several countries as well as the higher interests of 
 humanity. We must remain faithful to the ideal that 
 brought us together during the war, so that when we re- 
 turn to our countrymen, assured of your help and stronger 
 on account of your support, we shall repeat the words 
 our great French Minister Turget wrote in 1776: "Amer- 
 ica is the hope of mankind." 
 
 The Chairman: M. Schneider, I must say to you before 
 you go that no more impressive or thoughtful statement 
 of the conditions of Europe has yet been placed before the 
 American public than that you have just now given to 
 us. It would be impossible to place before us as a basis 
 of our deliberations in this conference a more compre- 
 hensive, a more instructive or studious statement than 
 that which we have just listened to. 
 
 AFTERNOON SESSION. 
 THURSDAY, OCTOBER 23, 2 O'CLOCK. 
 Mr. Fahey, in the chair, said: 
 
 Ladies and Gentlemen: There are in the world shrines 
 so holy as to inspire almost religious emotions on the part 
 of even the most irreverent. There are words known to 
 all the world which bring a thrill to every hearer when- 
 ever they are mentioned. Such a word is "Belgium." 
 Synonymous of all that is great and fine and unselfish, the 
 name of that little giant among nations will live so long as 
 the world shall endure. We are privileged this afternoon 
 to hear from a worthy citizen of that splendid land, M. 
 Canon-Legrand, President of the Society of Engineers of 
 Belgium, President of the Chamber of Commerce of Mons, 
 president from its inception of the International Congress 
 of Chambers of Commerce, who has come here because he 
 
THE INTERNATIONAL TRADE CONFERENCE 123 
 
 felt it was his duty to do so, involving though it did great 
 sacrifices on his part. With his plants destroyed by the 
 Huns, his business laid low as a result of their devasta- 
 tion and cruelty, yet he felt it his duty to his land still to 
 be, and his duty to humanity and to Europe, that he 
 should come here with this distinguished Belgian Mission 
 to be our guests for this Conference. It is more than a 
 pleasure, ladies and gentlemen ; it is more than a privilege, 
 it is an opportunity which I consider one of the great 
 honors of my life to present M. Canon-Legrand, my friend 
 of ten years, now on this occasion. 
 
 Address of M. Canon-Legrand. 
 
 On Belgium. 
 
 Mr. Chairman, Ladies and Gentlemen: This morning 
 M. Schneider gave you a general idea of the situation in 
 Europe today. He told you of the increasing industry 
 there. Of course you understand that conditions are not 
 the same in all the countries of Europe. Belgium must 
 be considered specially. Our land was totally invaded by 
 the enemy, except for a small part which was held by our 
 army, and the destruction wrought by the Germans was 
 widespread. 
 
 "Destroy Belgian industries," was the order Berlin 
 gave. And that command was carried out to the letter. 
 There were in existence during the war two German or- 
 ganizations known as the Thoma and the Wumba. The 
 former was the group entrusted with the destruction of 
 Belgian and French factories, while the latter attended 
 to the theft of machinery and material. The records of 
 the work of organizations fell into the hands of the In- 
 telligence Department of our army and I have seen them 
 with my own eyes. 
 
 The Wumba organization had a most complete descrip- 
 tion of all our factories and industrial plants and ma- 
 
124 THE INTERNATIONAL TRADE CONFERENCE 
 
 chinery and tools in each one. By a system of espionage 
 the Germans for a period of years during the war com- 
 piled an inventory of all machinery and equipment in our 
 plants from the great steel girders and cranes down to 
 the smallest tools and the glass in the windows and sky- 
 lights. The value and utility of all these machines and 
 instruments was carefully kept by card index. German 
 manufacturers, factories and firms were furnished by the 
 Wumba with lists of available machinery, tools, etc., and 
 the prices at which they could be purchased. As soon as 
 purchasers were found the material they wanted was sent 
 to them in Germany by the organization of vandals en- 
 gaged in despoiling our industries. 
 
 We have the names of the five big German firms which 
 comprised this organization of vandals. They and the 
 government of Germany profited by the sale of our stolen 
 machinery. Special inquiries were sent to German col- 
 lieries asking what they needed in the way of machinery 
 and equipment in the coal mines of northern France. 
 Special maps and photographs of the material available 
 was supplied. 
 
 In true German spirit the Wumba compelled Belgian 
 and French civilizians who were virtually in slavery, to 
 demolish the factories of their own countries and remove 
 the machinery that was in them. I have seen circulars 
 in which the Wumba instructed those in charge of this 
 work to get the maximum amount of work out of these 
 unhappy workmen, and offering rewards to those who 
 made records in despoiling our industries. 
 
 It is impossible for us to think without a shiver of 
 dread how completely would have been the devastation 
 and wrecking of our economic, political and industrial life 
 had not victory come at the time it did and Belgium freed 
 from the vandal grip of Germany. 
 
 Whenever I think of the vandalism of the Germans in 
 my country, my mind goes back to the International 
 Congress of the Chambers of Commerce and Industrial 
 and Commercial Associations in Boston in 1912. At that 
 convention, of which I had the honor to be present, Mr. 
 
THE INTERNATIONAL TRADE CONFERENCE 125 
 
 Harry A. Wheeler, as president of the United States 
 Chamber of Commerce, delivered an address which, in the 
 light of what has since happened in the world, was most 
 prophetic. 
 
 Mr. Wheeler might have been speaking of this Trade 
 Conference when he said to us back in 1912 : 
 
 "The business interests of the United States are deeply 
 sensible of the importance of this great gathering. It 
 signifies to us a recognition of a world interdependence, 
 an acknowledgment that the happiness, the welfare and 
 the prosperity of all the people are so interlaced that 
 harm permitted to be done to the least of the nations 
 must necessarily find its adverse effect upon the greatest. 
 Commerce had laid upon its heart and its conscience, by 
 those who are willing to attribute wrong to it, many atro- 
 cious crimes." 
 
 "Yet save only for the influence of the great world re- 
 ligions, commerce is the greatest single force in the 
 world's civilization." 
 
 At that same congress, Mr. Wheeler really foresaw the 
 need of a League of Nations which would bring about 
 "international arbitration of individual and national dis- 
 putes," and "with commerce create and maintain world 
 peace." 
 
 I presented to the Congress a resolution embodying 
 Mr. Wheeler's ideas which proposed: 
 
 "The Congress affirms the desire to see convened as soon 
 as possible a number of official international congresses 
 assuring between nations the existence of arbitral juris- 
 diction in the widest sense of the term and such as may 
 assure an equitable solution of all international contro- 
 versies, either between the governments; and agrees to 
 the principle of a combination of nations, where possible, 
 to endeavor to prevent the atrocities of war." 
 
 Now, let me tell you, gentlemen, that when I proposed 
 to the German delegates at the Congress that such a 
 resolution be adopted they protested and said it was not 
 the time and place for such a matter. Finally, they had 
 to vote for it, but, as I said, I cannot help but think of the 
 
126 THE INTERNATIONAL TRADE CONFERENCE 
 
 attitude of those German delegates when I look upon the 
 "atrocities of war" which their country committed in 
 Belgium. 
 
 All the other delegations at the Congress were strong 
 supporters of the resolution, and I recall that Sir John 
 Bingham, of London, said: 
 
 "I think we are all in this Congress a combination of 
 nations of the world met here together of one mind that 
 when and where possible we should endeavor to prevent 
 the atrocities of war." 
 
 No such expression came from the German delegates. 
 And Germany started the great war and perpetuated all 
 the atrocities of war. 
 
 The damage to steel and iron was on such an enor- 
 mous scale that complete restoration will take a long time. 
 But despite all difficulties, work is being resumed in nearly 
 all remaining factories, plants are being rebuilt and our 
 stolen machinery is being brought back from Germany. 
 
 Belgian industrial leaders are determined to put their 
 plants back into operation no matter what the cost. Steel 
 production now is 27 per cent of normal and iron produc- 
 tion 51 per cent. It would require several hours for me to 
 tell you in detail of the destruction of factories at Liege, 
 Hainaut, Ougree-Marihaye and other places. 
 
 In the matter of coal mines, we suffered less than the 
 French because the Germans preserved our coal deposits 
 for themselves in anticipation of the time that never came 
 when they believed they would have Belgium's seacoast 
 and ports and be able to conquer England. 
 
 But when Germany visioned defeat she set about de- 
 stroying all of Belgium's industries which before the war 
 had competed with her in the world market. Machinery 
 in factories which was not shipped into Germany was 
 wrecked. One of the great tasks confronting the Belgians 
 after the armistice was the recovery of the stolen ma- 
 chinery and material to replace that which had been de- 
 stroyed. 
 
 Under the direction of the Minister of Economic Af- 
 fairs, Belgium has been bringing stolen machinery out of 
 
THE INTERNATIONAL TRADE CONFERENCE 127 
 
 Germany at the rate of 3,000 tons a week. The last re- 
 port I saw set the total amount recovered at 39,000 tons. 
 This work began in April and is still going on. 
 
 One of the most important projects for the general re- 
 construction of Belgium is that of agricultural restora- 
 tion. The plan provides for the taking over by the gov- 
 ernment of farms at their 1914 value, putting them in 
 good condition and returning them to their owners. 
 
 Another plan for bringing Belgium back to normal con- 
 ditions is being carried out by the Fonds du Roi Albert. 
 This is an enterprise created in 1916 and recently allowed 
 by the government 40,000,000 francs. It has previously 
 received 700,000 francs, largely from American sources. 
 This institution provides homes for shelterless people. 
 Huts are erected in the devastated regions. The Germans 
 destroyed 100,000 homes in my country. Thus far, the 
 Fonds du Roi Albert have erected 12,000 homes. 
 
 Belgian railroads damaged or destroyed during the 
 German occupation are being rapidly repaired and re- 
 established and on many lines schedules are normal. 
 When the armistice was signed 1,500 kilometers of rail- 
 road had been destroyed. So rapid has been the work of 
 restoration that there remain less than 55 kilometers of 
 unimportant lines unrestored. 
 
 I was speaking to a friend in New York the other day 
 who was discussing the destruction in Belgium. This 
 gentleman had been in Belgium for several days. He 
 crossed our country on his way to Paris and saw our 
 devastated areas. He said which was perfectly true 
 that the most dreadful havoc was where the fighting had 
 been most severe. He said also and in that I did not 
 agree with him that in the country which was near the 
 lines, the destruction was not extensive. 
 
 Now this gentleman, like many other visitors to Bel- 
 gium, drew his conclusions from what he saw through a 
 car window. He passed through many towns and cities 
 and saw what he believed to be undamaged factories, 
 buildings and homes. He could not see the inside of those 
 factories and buildings and homes. He could not see that 
 
128 THE INTERNATIONAL TRADE CONFERENCE 
 
 the factories had been stripped of all their machinery. 
 He could not see the wrecked interior of the plants. 
 
 Let me give you another example. You may travel 
 through the country in the rear of the lines of battle and 
 see hundreds of buildings that appear to be perfectly in 
 order, except for broken windows or slight damage caused 
 by shell fire. But if you enter these buildings you will 
 find they are absolutely untenable. Hundreds of them 
 were rebuilt inside and made into bomb-proof dugouts by 
 the enemy. Cellars have been converted into concrete 
 strongholds and the interior changed to suit the war 
 needs of the occupants. In almost every instance it would 
 cost more to restore these buildings and homes than it 
 would to wreck them and build anew. 
 
 So you see that conditions like this which appear to the 
 casual observer to be unimportant are great jobs of recon- 
 struction which the Belgian government faces. 
 
 Naturally,, this Conference wants to know all there is to 
 know about conditions in Belgium. In opening the Trade- 
 Conference last Monday, Mr. Bedford asked several im 
 portant questions having to do with this subject. Permit 
 me to answer them briefly and generally in so far as they 
 apply to Belgium : 
 
 Mr. Bedford asked: "What are the menaces to social 
 order and stability in the different countries in Europe 
 today?" "Have the dangers of Bolshevism or Socialism 
 passed? Is there any danger anywhere of the confisca- 
 tion of private property, the non-recognition of the rights 
 of ownership and business management or the annulment 
 of law?" 
 
 To the first and second questions I will say that there is 
 little taint of Bolshevism in my country. Our people are 
 restless and in many cases dissatisfied, it is true, but what 
 people rendered homeless by war and facing the problems 
 of life resultant from a great war would not be ? But that 
 does not mean they are inclined against law and order or 
 have Bolshevik tendencies. The people of Belgium want 
 to work and produce and when they are enabled to do that 
 to the full capacity of their willingness and industry they 
 
THE INTERNATIONAL TRADE CONFERENCE 129 
 
 will be happy. There is no danger of Bolshevism becom- 
 ing a menace to government and business in Belgium. 
 
 Let me assure you also that there is no danger of con- 
 fiscation of private property, non-recognition of the rights 
 of ownership or annulment of laws upon which funda- 
 mentally depends successful reciprocity in commercial in- 
 tercourse between Belgium and the nations of the world. 
 
 Mr. Bedford also asked: ''What are to be the relations 
 between the government and business in the respective 
 countries? Will the various nations in their reconstruc- 
 tion effort stabilize relations between government and 
 business that will recognize that commerce is the great- 
 est of all interests, and will their relations be based on 
 such a statesmanlike conception?" 
 
 To this inquiry I reply that the government of Belgium 
 will encourage and do all in its power to advance business 
 between my country and other nations. Belgium realizes 
 that more than ever there must be a community of inter- 
 est between the government and business and in line with 
 her past achievements in world trade will recognize that 
 commerce is the greatest of all interests. 
 
 Mr. Bedford quite properly asked : "What will the atti- 
 tude of the various governments be toward American 
 industry and commerce? Will it be accorded freedom of 
 trade and equal privilege and opportunity, or will it be 
 threatened with restriction of imports, and the menace 
 of government control or monopoly?" 
 
 Speaking for Belgium, I may tell you that my coun- 
 try, as you must know, desires always to consider Amer- 
 ica as Belgium's greatest friend, as an ally in peace as in 
 war. Belgium desires to work with and for America just 
 as much for the good of American industry and com- 
 merce as for the advancement of Belgium industry and 
 commerce. We want America to have freedom of trade 
 without hindrance by governmental discrimination or 
 monopoly. 
 
 Mr. Bedford asked whether European countries propose 
 in the future to lower the cost of production through 
 standardization and modern methods, what are the pros- 
 
130 THE INTERNATIONAL TRADE CONFERENCE 
 
 pects for improved relations between capital and labor 
 and what is the probable policy in each country toward 
 the cultivation of foreign markets, the purchase of raw 
 materials and the promotion of new industries? 
 
 The past record of Belgium answers those questions. 
 Belgium, as always, will seek production on larger scales 
 by means of modern methods. Belgium will continue to 
 strive for unity of effort between capital and labor, be- 
 tween whom even after the war there is but little strife. 
 Belgium will, as always, seek cultivation of foreign 
 markets and the promotion of new industries. 
 
 The renewal of industry is already very noticeable in 
 Belgium. In our reconstruction work, we are, as I have 
 said, recovering our stolen machinery from Germany. 
 We already have recovered 2,884,000,000 francs' worth 
 of industrial material, including 5,069 machines totaling 
 about 40,000 tons. More than 9,000 machines have been 
 identified in Germany by their owners and the govern- 
 ment has received 37,000 demands for missing and de- 
 stroyed machinery from the owners. 
 
 In our coal mines, particularly, there is a great renewed 
 activity. Our coal production now is 86.8 per cent 
 of what it was before the war. Of other indus- 
 tries about 32 per cent are in operation again. Chem- 
 ical production is 43 per cent of normal; coke industry 
 46 per cent; blast furnaces 20 per cent; cement produc- 
 tion 37 per cent and construction work 42% per cent. 
 
 Just after the armistice there were 800,000 unemployed 
 in Belgium. Today there are less than 200,000 and these 
 are rapidly returning to work. 
 
 This is a marvelous effort for which we must be thank- 
 ful to our industrial leaders and our workers as well, who 
 quite understand their obligations to their nation and to 
 humankind. 
 
 Our men are working now at their trades and profes- 
 sions as well as they did on the battlefield. We must, and 
 will, exercise economy and carefulness. Our population 
 is too dense. We must import great quantities of alimen- 
 tary products until our soil is producing to its fullest ex- 
 
THE INTERNATIONAL TRADE CONFERENCE 131 
 
 tent. We must and will develop our industries and the 
 productivity of our lands. The basis of our prosperity 
 is in our industry and we must and will restore that first 
 of all. 
 
 It will be necessary for us to react against economic 
 infiltration from Germany, and for that it would be well if 
 our Allies would lend us every possible aid so that we 
 will not be obliged to return to our pre-war trade with 
 Germany. Already they are seeking in Germany to sell 
 us machinery and tools which we seek over here, offering 
 all kinds of inducements. It would be deplorable if we 
 were compelled to go to them. 
 
 We must have increased perfection in studies in our 
 high schools and universities to prevent German influ- 
 ence ever again coming into them. We are very thankful 
 to Mr. Hoover who is responsible for a magnificent gift 
 for the development of scientific studies in our schools. 
 He gave to us for that purpose many million francs, what 
 remained of the fund for the Committee for the Relief 
 in Belgium. Mr. Hoover fed our bodies when we needed 
 nourishment, and now he feeds our minds. Belgium is 
 determined to go forward in all lines of human endeavor. 
 
 Gentlemen, I have answered Mr. Bedford's questions 
 only in a brief and general way, but I believe I have in 
 some degree informed you of the sincerity of Belgium's 
 plans and ambitions for the advancement by close coop- 
 eration with the United States and other Allied countries 
 of the future world commerce and industrial intercourse. 
 
 Mr. Chairman and Gentlemen, I thank you. 
 
 The Chairman: M. Canon-Legrand, we are all greatly 
 encouraged and enlightened by the magnitude of what has 
 been accomplished by your glorious country since peace 
 was declared. It was to be expected that a country which 
 had borne itself with such heroism during the strife of 
 war should turn to such efficiency in the arts of peace and 
 make the showing that you have stated, and I am sure 
 that we of America will consider it not only an honor but 
 a privilege and opportunity to help your further progress 
 to the best of our ability. 
 
132 THE INTERNATIONAL TRADE CONFERENCE 
 
 As indicating the desire and the opportunity for greater 
 cooperation between Belgium and the United States to 
 which M. Canon-Legrand has referred, I know you will 
 be interested in an article that has just been handed to 
 me, which I have been asked to read : 
 
 "When the King of the Belgians arrived in New York 
 his first visit was to the Belgian colony. In a speech 
 there he expressed a wish for the prosperity of the Bel- 
 gian colony, and to the representatives of the Belgian- 
 American firms established in this country since the war 
 the King expressed the desire to see them grouped to- 
 gether in one body. As a result of this, in consequence of 
 the words of His Majesty, the Belgian Chamber of Com- 
 merce has been created within a few days in the United 
 States, to be known under the name of the Belgian Cham- 
 ber of Commerce of the United States of America. The 
 King in a telegram addressed to the organization has not 
 only congratulated Belgian business men, but has granted 
 his patronage to the Belgian Chamber of Commerce. He 
 will receive the body in an official session on Sunday night. 
 The Minister of Belgium, M. De Marchienne, has accepted 
 the honorary presidency of the organization and the 
 Belgian Consul General to the United States, will be the 
 Vice-President of Honor. The Belgian Chamber of Com- 
 merce is taking an active part in this International Con- 
 gress and is represented here by its president, and also by 
 its general secretary." 
 
 I know all of you gentlemen will be most interested in 
 the establishment of this organization. 
 
 Might I take this opportunity also to read a letter sent 
 to Mr. Bedford by Mr. Steven C. Mason, president of the 
 National Association of Manufacturers: 
 
 "To Mr. Alfred C. Bedford, 
 
 "Chairman, Executive Committee, 
 
 "International Trade Conference, Atlantic City. 
 
 "MY DEAR SIR : 
 
 "I beg to extend to you, that you may, if you deem it 
 
THE INTERNATIONAL TRADE CONFERENCE 133 
 
 advisable, express to the representatives of the over- 
 seas countries who are now attending the International 
 Trade Conference, the hearty good wishes of our organi- 
 zation, and further that you will express to your guests 
 our sincere desire to co-operate in every possible way with 
 the business object of the mission. 
 
 "To this end we offer the facilities of the Association of 
 Manufacturers of the United States of America and par- 
 ticularly those of the foreign trade department in New 
 York City and our municipality, who will be pleased to 
 establish personal contact for your guests with manu- 
 facturers throughout the country. 
 
 "Very truly yours, 
 
 "STEVEN C. MASON, 
 
 "President." 
 
 Address by Sir Arthur Shirley Benn, K. B. C., M. P. 
 
 On Great Britain. 
 
 The Chairman: Sturdy old England ! Who throughout 
 the world that has been familiar with its steadfastness 
 of character, its indomitable courage and persistence, 
 ever doubted that in this late trouble it would see it 
 through to the bitter end, and see it through it did ; and 
 who, in turn would doubt that with its splendid record 
 back through the centuries, of progress, energy and cour- 
 age, it would likewise quickly take up the task of recon- 
 struction and find its way ? And, so, already, despite the 
 bitter wounds that came from the war, Great Britain is 
 once more pressing forward to the aid of all of her late 
 Allies and taking up the burdens which she left off 
 throughout the war with all her colonies and all parts of 
 her far-flung empire. I know the story of what has al- 
 ready been accomplished and what the tasks are that are 
 still left to be undertaken will be of tremendous interest 
 to you, and it could be presented in no better form than 
 by Sir Arthur Shirley Benn, the Chairman of the British 
 delegation, whom I now take pleasure in presenting to 
 you. 
 
134 THE INTERNATIONAL TRADE CONFERENCE 
 
 Sir Arthur said: 
 
 Mr. Chairman, Ladies and Gentlemen: I have been 
 asked to make a short address on the after-the-war inter- 
 national problems from an English standpoint, or I might 
 say, from a British standpoint, for one of my committee 
 is a Scotchman, and he very much dislikes to hear of Eng- 
 land and not Britain. 
 
 Gentlemen, those problems will have to be dealt with, 
 but if the Allies, who have stood together in the war, 
 stand together in the reconstruction days, there is no 
 doubt that they will be met and solved. To understand 
 them from the British standpoint I wish, with your per- 
 mission, to go very briefly over conditions in England 
 before the war, during the war, and now. 
 
 In 1914 we were a commercial, industrial people. We 
 did not believe in war and we hoped that the millenium 
 had come ; we hoped that we would no more see guns and 
 swords, airplanes and submarines brought forth to kill 
 men. We thought that arbitration treaties would be the 
 future way of solving the difficulties that arose between 
 countries. We had a good trade; we had a compara- 
 tively small national debt, some six hundred and forty 
 millions. We were not overtaxed and we were on good 
 terms with every country in the world. 
 
 When August came, when Germany treated her treaties 
 as scraps of paper, when she invaded Belgium, that gal- 
 lant country, there is no question as to where Great 
 Britain stood. And in saying that may I refer for one 
 moment to the position held by our present Ambassador 
 from England, Lord Grey, then Sir Edward Grey, our 
 Foreign Minister? In those days I belonged to the con- 
 servative party, although I was what they called a Tory 
 democrat, for I had lived out here. I did not love Sir 
 Edward Grey for his politics, but I loved him for the 
 stand he took in connection with the war and for the 
 stand he continued to keep during the war. Prince 
 Lichnowsky, the then German Ambassador to London, 
 acknowledged in his letters that Sir Edward Grey had 
 
THE INTERNATIONAL TRADE CONFERENCE 135 
 
 done everything in his power to prevent war and he said 
 that the simplicity and honesty of Sir Edward Grey's 
 ways secured for him the esteem even of his opponents, 
 who were to be found rather in the sphere of home affairs 
 than of foreign policies. Lies and intrigues are equally 
 repugnant to him. That was the man who was our For- 
 eign Minister and who did his duty when we found 
 ourselves facing the Belgium invader. 
 
 Mr. Asquith, our then Prime Minister, stated at the 
 Mansion House in London on the 9th day of November 
 in 1914, where we stood. He said: 
 
 "We shall never sheath the sword until Belgium recov- 
 ers in full all, and more than all, that she has sacrificed, 
 and until France is adequately secured against the men- 
 ace of aggression, until the rights of the small nation- 
 alities of Europe are placed upon an unassailable founda- 
 tion, and until the military combination of Prussia is 
 wholly and finally destroyed." 
 
 Those are the words of our Prime Minister. We had 
 found ourselves. We had a small army, 250,000 men, many 
 of them in the furthermost parts of the Empire. We had 
 some 200,000 reserves, and we had 250,000 Territorials, 
 state troops, men who were learning something about mil- 
 itary affairs and had put in some drills. Some of them, 
 of course, were good soldiers at that time. They all 
 proved afterward that the mettle was there and that they 
 were true soldiers, but what was our position ? We could 
 only send a small army, so small that the Germans talked 
 of it as a "contemptible little army." That little con- 
 temptible army knew how to fight and knew how to die. 
 They were men awakened, righteous; they were mag- 
 nificent types of what the British soldier used to be and 
 is. Lord Kitchener knew that we had to raise an army. 
 He was one of the few men who said that the war would 
 certainly last four years. He called for 100,000 men. 
 Some people said afterward, "Why did he not call for 
 more ?" The answer to that is that we had neither cloth- 
 ing, guns nor instructors. 
 
 I had the pleasure of addressing some of our men in 
 
136 THE INTERNATIONAL TRADE CONFERENCE 
 
 1915, who were armed with either small Japanese guns or 
 with sticks, and who had a few score of rifles sent down 
 for practice. That was our position. We could have got 
 any number of men, because when you put before the 
 people the rights and wrongs, when you showed them that 
 they were fighting for the preservation of civilization 
 there was no holding back. I recollect at one recruiting 
 meeting finding two men, one of them in tears. I went 
 up to him and said, "What is the matter?" He said, 
 "They won't have me." I said, "Why?" "Well," he said, 
 "I have not got a tooth in my upper jaw." Well, there 
 was nothing much the matter with the man, and I said, 
 "Well, how do you eat ?" He said, ''Give me a biscuit and 
 I will show you I can munch it quicker than any man in 
 the whole audience." 
 
 Well, we took him. I said I would be responsible. The 
 next day there was a little fellow who lacked one-half 
 inch in height, and in those days we had a good deal of red 
 tape. He was small, but a fighter. He could run and he 
 could jump, and I told them to take him; but one of my 
 red tape friends who was near him heard what I said, and 
 I turned and said to him, "Don't you think I am right?" 
 He said, "Yes, but where the blankety blank are you going 
 to put the accoutrements ?" I always believed that small 
 men could stand more than some of us who are big. I 
 have told in England a little story I heard in Mobile about 
 the difference between a big man and a small man. 
 A very big man was representing in Congress one of the 
 districts and he had for an opponent a very short, thin 
 man. They had joint meetings, and at one of the meet- 
 ings the very big man said, "When I look around this hall 
 tonight and see the faces of men who have been my sup- 
 porters in the past I cannot imagine that you have the 
 slightest intention of not sending me back to Congress, 
 and I think so all the more when I look at my friend the 
 Judge, a most estimable gentleman, but not big enough 
 to fill my place. In fact, I might swallow him without 
 hurting him, and then I suppose he would still be dear in 
 the memory of some of you." 
 
THE INTERNATIONAL TRADE CONFERENCE 137 
 
 The little man in reply said he was surprised to find 
 his friend had not been big enough to prevent him from 
 descending to small personalities. He said he was not 
 going to fight with him but simply going to state, and he 
 was sure his audience would agree with him, that if his 
 opponent did swallow him whole without hurting him he 
 would have a darn sight more brains in his belly than he 
 had in his head. 
 
 Ladies and Gentlemen, to go back to the serious prob- 
 lem in England, over 5,000,000 men volunteered for the 
 army and navy. During the war we sent into the army 
 over 8,000,000 men, men who had not been trained, like 
 in foreign countries, something about war, men who came 
 from every walk in every class of life, the peer and the 
 peasant, the merchant and mechanic, the man of leisure 
 and the man of labor; they all came as they knew their 
 duty. 
 
 Our Colonies, our Empire, or, as General Smutts says, 
 our Commonwealth of Nations ; none of them was forced 
 to come at the call of the Motherland. Every one of them 
 sent its money. Over a million men came from the 
 self-governing colonies, from the dependencies, from 
 India, and they showed the blood of our forefathers was 
 just as strong in their veins, no matter where they lived, 
 as if they had lived in the old Motherland. 
 
 We lost nearly a million men, and not old men, not the 
 young unfledged youth, but nearly all men who had 
 reached man's estate. Some three million casualties, 
 many of them men who have been able to return to work ; 
 many of them men who have to do work to prevent 
 them from brooding over the fact that they have been 
 wounded in the war ; many of them men that cannot work 
 and who will have to be supported by those for whom 
 they were wounded. We have a great task in our pen- 
 sions; we have a great task in finding work for the 
 maimed and wounded, but we are going to do it. Al- 
 though our army was small, our navy was the navy of 
 old, a navy that fought. The personnel was added to by 
 ten times the number that was in it when the war broke 
 
138 THE INTERNATIONAL TRADE CONFERENCE 
 
 out. They protected our routes, they protected our 
 shores, and I defy anybody to challenge me when 
 I say that the British Navy in the days of 
 peace has upheld the highways of the ocean for 
 the benefit of mankind. But, Ladies and Gentlemen, it 
 was not the navy only, but it was our mercantile marine. 
 I have never known a vessel that refused to go out for 
 fear of submarines, or a crew that declined, or men who 
 declined. I have known of a case of a captain who was 
 three times torpedoed, and when I saw him in port he 
 said, "Oh, I have just got another ship; I am off again to- 
 morrow," and he was perfectly delighted. 
 
 Well, as I said a few minutes ago, although we could get 
 the men we did not have the guns and did not have the 
 munitions, and we in England thank America for what 
 she did for us in that way before she came herself into 
 the war. We recognize it and we do not forget it. Ir 
 1915 when it was discovered at the front the enormous 
 amount of munitions that were necessary, we had to turn 
 around and start our munitions in England apart from the 
 old army regulations and apart from Woolwich and places 
 like that, and when the work was started the question 
 was, how to get the necessary men to do the work. I was 
 sent down to the Fifth Army to try and get from it skilled 
 men. I addressed battalion after battalion. I told the 
 men that they were only in the army to do their bit for 
 their country and that I was instructed to tell them that 
 if they were skilled men capable of making munitions 
 that the bit they could do would be better done back at 
 the workshop than in the army. But I had to promise 
 those men that they would still be soldiers, that they 
 would not be taken off the roster of the regiment and 
 that when they had taught other men to take their places 
 in the factory they would be able to go back to their regi- 
 ment. That was a very interesting thing, because the 
 better the workman the better the soldier and the officers 
 did not want to lose them, and they did not want to go. 
 The ones that did want to go, generally speaking, were 
 
THE INTERNATIONAL TRADE CONFERENCE 139 
 
 men who were not particularly good, either in the work- 
 shop or in the army. 
 
 Well, we got those men back, and then came the ques- 
 tion, how are we going to get the unskilled labor ? We got 
 the youngsters, and then we got the women. The work 
 that women did during the war would fill a history; it 
 was perfectly magnificent. You know what your women 
 did here. We know that ours did just as much, if not 
 more. They came from all classes and they worked mag- 
 nificently. I saw a man once in a big yard, who was very 
 much upset at having women in his yard at first, and I 
 said to him, ''Well, what do you find?" "Well," he said, 
 "there is one of my biggest machines, and all I can say 
 is that that woman is getting one-and-a-half times more 
 from it than one of my best-paid men got when he was at 
 it." 
 
 The work that the women did went far toward winning 
 the war. And while I always like to see a lady, I take my 
 hat off to all of them and the work they did during the 
 war. 
 
 We have now got to go into reconstruction. We have 
 promised a good many things to our workmen. When 
 those women went in and worked, when the young men 
 went in and worked, our labor unions had been working 
 for years and years to get privileges and regulations. That 
 we told them had to be done away with during the war, 
 and our men were patriotic enough to say, "All, right; 
 brush them aside, provided when the war is over we shall 
 have them again," and we promised they should have 
 them, and they are going to have them. But I have not 
 the slightest fear that those men will not recognize the 
 conditions as they exist today and that if the regulations 
 should lead to what they call the Caranni system, or to 
 the reduction of output, I am confident they will not be 
 heeded. Our men know ; I have heard one of our labor so- 
 ciety leaders state that they are now endeavoring to im- 
 press upon the men that if they get shorter hours they 
 must do more work and must allow the use of more ma- 
 chinery, and I feel perfectly convinced that the common 
 
140 THE INTERNATIONAL TRADE CONFERENCE 
 
 sense of our people will justify the alteration in any rules 
 that will prevent the extra production. We have promised 
 those men that they will have better housing. That all 
 means money. We were in a peculiar position. There 
 was a shortage of houses when the war started. We used 
 to build some eighty odd thousand houses every year ; we 
 have built virtually none during the war. We have a 
 shortage of four hundred thousand or five hundred thou- 
 sand houses, and we have a larger number of young men 
 needing homes of their own, men who married when they 
 were going to war and who have come back and who 
 have got a wife and perhaps a child, who cannot go and 
 live in one room; who must have houses, and we have a 
 big problem to solve in getting those houses built at as 
 early a date as possible. 
 
 We have gone in for a new education, and we realize, 
 as you have realized, and as you have shown, that the 
 very best thing we can do is to educate everybody in our 
 land. Money spent in education is never money wasted. 
 
 Ladies and Gentlemen, we have also gone in for better 
 health conditions, and we are doing our best to see that 
 those men who fought for us, who fought for the Allies, 
 who fought for civilization, will have a better and a 
 brighter life to live than they would have had in olden 
 days. If we are going to do that we have got to work, 
 we have got to manufacture and we have got to find 
 markets for the goods we manufacture. Some of our best 
 customers will not be likely to take as much as they used 
 to. Germany, with whom we had a large trade before the 
 war, I do not think will be likely to buy very much. 
 Some of the countries in the east will be supplied to a cer- 
 tain extent by countries that are lying nearer. Take for 
 argument's sake that little isle that stood by all of us 
 during the war, that was loyal to us, Japan. Japan is 
 nearer to China, she is nearer to India, and the wages 
 in Japan are much smaller than they are here or in Eng- 
 land. I heard a gentleman from China in Paris, at a large 
 meeting, state that the objection to the man from the 
 East was not his color, but economic, because he could 
 
THE INTERNATIONAL TRADE CONFERENCE 141 
 
 live on so much less and could cut into our trade. Well, 
 gentlemen, that is one of the problems that will have to 
 be solved; but I am quite confident that we, you, and all 
 of us will solve that question, because there is room in the 
 world for all of us. 
 
 Well, then, take the Allies. We are all friends; we 
 know each other. We have stood by each other during 
 the war. I do not know if you know a description that 
 was once given by a small boy as to what a friend was. 
 When he was asked, his answer was, "Somebody you 
 know very well indeed and still like." Well, I think the 
 Allies all like each other and all mean to stand together; 
 but the countries that have been devastated will have to 
 be reconstructed. I have seen the devastation in Bel- 
 gium; I have seen it in France; I have seen it in Italy. 
 In England we have not had much, although we have lost 
 a great deal more than the papers ever spoke of, by air 
 raids. But when you look at the devastation in those 
 countries, when you realize how wanton it was, how ab- 
 solutely uncivilized it was, you cannot help feeling the 
 deepest sympathy with the residents of those countries, 
 and my sincere hope is that this great country of Amer- 
 ica and that those of the Allies who are able will all do 
 their very best to see that those countries that have been 
 devastated are put upon their feet again. They will be 
 our customers, they will be people who will sell to us, 
 people to whom we will sell, who will trade with us in the 
 future, and the sooner they are reconstructed the better 
 it will be for commerce the world over, and I am sure you 
 will all agree with me about that. 
 
 I should like to say just one word more on the question 
 of the British and American people. There is a tie be- 
 tween us, an almost indescribable tie, but when we realize 
 that for nearly a hundred years there has never been a 
 soldier or a guard along that long frontier between the 
 United States and Canada, we can realize how true our 
 friendship is. To go back to 1823, Jefferson, who could 
 never have been said to have been very much in love with 
 England, when asked by President Monroe what his 
 
142 THE INTERNATIONAL TRADE CONFERENCE 
 
 opinion was as to the advice which was given by Mr. Can- 
 ning the British Foreign Minister, to Mr. Russeau, the 
 American Minister in London, in regard to the Monroe 
 Doctrine, and Mr. Canning suggested to Mr. Russeau that 
 a doctrine such as the Monore Doctrine should be issued 
 by America, President Monroe wrote to Mr. Jefferson and 
 asked his opinion. I have always kept and loved his let- 
 ter. I think it was of the 23d of October. In it he said : 
 "One country more than any other can insure us in our 
 purpose. She now offers to lead, aid, and accompany us in 
 it. By accepting her proposition we detach her from 
 the bans and we bring her mighty weight into the scale 
 of free government. We emancipate at one moment a 
 continent which would otherwise linger for years in dif- 
 ficulties and debts. Great Britain is the country that can 
 do us the most harm of any or all on earth, but with her 
 on our side we need not fear the world. It should there- 
 fore be our endeavor to cherish feelings of the closest 
 friendship, and I know of no better way to accomplish this 
 than by finding ourselves fighting once more side by side 
 
 in a common cause." 
 
 Ladies and Gentlemen, you and we and our Allies have 
 all been fighting side by side in the same cause, and I be- 
 lieve it will do more to cement the bonds of friendship 
 that exist between us today than anything else in this 
 world. I thank you. 
 
 Address of Prof. Bernardo Attolico, 
 
 On Italy. 
 
 The Chairman: We always thought of her before the 
 war as Sunny Italy, the land of sunshine, of art, and 
 flowers, and culture and portraiture, and during this ter- 
 rific struggle she has been a competitor in gallantry with 
 her allies and associates in the war, with a record of 
 heroism and accomplishment that has added another bril- 
 
THE INTERNATIONAL TRADE CONFERENCE 143 
 
 liant page to the history of the world. Her skies are 
 clouded now as the result of the devastation and disaster 
 brought by war, but with the still indomitable bravery 
 and persistence with which she fought the way from the 
 mountain tops down the valleys during that struggle, she 
 is taking up the challenge of reconstruction as are the 
 other allied countries, and making splendid progress. We 
 are going to have the privilege now of listening to a dis- 
 tinguished representative of that country, Commander 
 Professor Bernardo Attolico, Director General of Eco- 
 nomics of the Board of Commerce of Italy, specialist in 
 economics, and member of the Economic Council of this 
 Conference, and Director of the Economic Bureau of the 
 League of Nations, and a specialist on economic questions. 
 He knows America well, and he knows well his own coun- 
 try and is eminently fitted to place before you a story that 
 I know you will find of great interest. It is a pleasure to 
 introduce Professor Bernardo Attolico. 
 
 Professor Attolico said: 
 
 Mr. Chairman, Ladies and Gentlemen: Italy comes 
 last in the expose of her conditions, which, however, I am 
 sure you appreciate, deserve very careful, and in some re- 
 spects, quite special, consideration. The task which the 
 Chairman of our Delegation, Engineer Quartieri, has en- 
 trusted to me is the following: To give you an idea of 
 what we need, why we need it, and why it is desirable 
 and to our mutual advantage that you should help us in 
 meeting those needs. 
 
 What we require may be told in a few figures. But 
 figures are not in themselves sufficiently explicit. First, 
 let me show you the general lines of our economic struc- 
 ture. Italy has always been a great importer of raw ma- 
 terials, and an exporter of manfactured goods, together 
 with certain products of the soil. But, even in normal 
 times and let me recall that at the eve of our war very 
 few countries in Europe offered a sounder financial posi- 
 tion than Italy our imports exceeded our exports by a 
 considerable amount, the balance being re-established by : 
 
144 THE INTERNATIONAL TRADE CONFERENCE 
 
 (a) Emigration ; (b) The tourist trade, which represented 
 a yearly income of about $300,000. The destruction and 
 compression of our commerce during the war was per- 
 haps as the result of inevitable causes more violent 
 than in any other of the principal allied countries. 
 
 The tourist trade was of course entirely paralyzed by 
 war. Nor could Italy receive any compensation from that 
 new and sublime form of travel to which the war gave 
 rise, a movement whose effect in the financial field proved 
 precious as it was valuable and decisive in the military 
 I refer to the expeditionary forces of our most gallant 
 allies. 
 
 Emigration had also quite naturally to cease. We then 
 lost the benefit of the remittances from between half a 
 million and one million men who would in normal circum- 
 stances have left the country annually. Not only this, 
 but numbers of our people, who were already abroad, had 
 to return and they came most willingly, to join in the 
 army and fight for the common cause. This, of course, 
 represented an additional loss to our national economy. 
 No other country sustained a loss of this kind. Many of 
 our exports also had necessarily to suffer from the war, 
 being in certain cases restricted to the verge of complete 
 suppression. As you are aware, no other country, perhaps, 
 was so dependent on the German and Austro-Hungarian 
 markets for the selling of their goods as Italy. This trade 
 was wiped out altogether by the war, without any possi- 
 bility of finding adequate compensation in allied or neu- 
 tral markets. 
 
 Navigation during the war was always more danger- 
 ous in the Mediterranean than elsewhere. Our national 
 tonnage in itself very scanty was all commandeered 
 for war purposes, while the tonnage lent us by our Allies 
 was hardly expected to be available for commercial pur- 
 poses. This situation reacted both directly and indirectly 
 on our export trade directly owing to the fewer oppor- 
 tunities of overseas shipments; indirectly through the 
 lesser importations of raw materials, which allowed of no 
 surplus for export purposes. These things in themselves 
 
THE INTERNATIONAL TRADE CONFERENCE 145 
 
 were of course sufficient to cripple and in most cases to 
 suppress our export trade. Through the lack of raw ma- 
 terial, transport facilities, etc., the export of cotton and 
 woolen goods which had been very flourishing, had to be 
 practically abolished. Then again, one large group of our 
 export had to be sacrificed altogether because we needed 
 it ourselves. I refer to foodstuffs, such as macaroni, 
 cheese, olive oil, early vegetables, sausages, etc., articles 
 which used to find a very good market also in the United 
 States. On the contrary, we had to import most of these 
 articles which formerly we used to export. Even oranges 
 and lemons were handicapped by transport difficulties, 
 while owing to the exigencies of the blockade we could not 
 extend their sale in neutral European countries. 
 
 Other articles, and very important ones, such as silks 
 and silk manufactures, gloves, flowers, were necessarily 
 sacrificed. Allied countries had to restrict importation of 
 such goods as being a luxury ; while for blockade reasons 
 again we could not extend their market in Europe. Other 
 articles were sacrificed because they were too bulky, or 
 for other reasons, such as marbles, furniture, straw plaits, 
 frames, etc. 
 
 I say and I repeat most emphatically, no other coun- 
 try, relatively speaking, suffered so severely in its export 
 trade as Italy did. I do not say this in any spirit of com- 
 plaint, because we are proud of the sacrifices we made; 
 but merely in order to point out that the greater the com- 
 pression of our commerce during the war, the wider also 
 are the margin and the possibilities of our recovery. 
 
 Let us now take a glance at the future. 
 
 Gentlemen, every man who feels the ties of citizenship 
 to his own country is proud of it and has faith in it. Ital- 
 ians have long-standing traditions of national pride. Per- 
 haps no man in the world can affirm his citizenship with 
 greater pride than the citizen of old Rome when he quali- 
 fied himself "civis Romanus." Italians of the younger 
 generation to which, for a few years longer, I still belong, 
 feel very much the same way. I may be inclined there- 
 fore to overstate Italian possibilities and resources. But 
 
146 THE INTERNATIONAL TRADE CONFERENCE 
 
 I shall try not to do so. I hope the international habit 
 and frame of mind will assist me in this, and, at any rate, 
 I only wish to place before you a few bare facts, which I 
 trust will be convincing. 
 
 I must again refer to the factors of our export trade in 
 order to show you what are its prospects. 
 
 Silk and silk manufacture rank first in order of im- 
 portance. Italian silks are not cheap, but they are very 
 good. With the raising of the blockade and the removal 
 of other artificial barriers, they will soon find their full 
 market again. I remember an Italian friend of mine, 
 not very familiar with commerce, going from Paris to 
 London on business, and wishing to buy something there 
 for his wife, he asked for silk stockings. Those offered 
 him at first, Japanese perhaps, did not satisfy him. He 
 was next shown some of the French manufacture, but did 
 not wish to buy French stockings in London and carry 
 them back to Paris. He asked to be shown something 
 better. The salesman apologized, explaining, "I haven't 
 any Italian stockings." 
 
 Next, let us glance at cotton and cotton manufactures. 
 In pre-war time we used to import over 300 million lire 
 of raw cotton. We repaid this debt in full with the export 
 of only 40 per cent of our manufactured products. Then 
 there are markets of the Mediterranean Basin, with which 
 we, more than any one, perhaps, are familiar. These are 
 capable of great expansion. There is a great future 
 there. We have made a specialty of certain cheap goods 
 which are in great request in neighboring and distant 
 markets. The same can be said for woolen goods, felt and 
 straw hats, caps, etc. Many of the British gloves you 
 buy in America are Italian and originally come from 
 Naples. 
 
 The revival of normal communications throughout the 
 world will gradually bring into the market all sorts of 
 merchandise of which the trade has been crippled by 
 war. Even the improvement of inland railroad communi- 
 cations will contribute to this end. No one has properly 
 appreciated what a tremendous handicap the geographical 
 
THE INTERNATIONAL TRADE CONFERENCE 147 
 
 configuration of Italy has been from the point of view of 
 railroad communications. The Adriatic was closed to 
 navigation. Coastal sea traffic was suspended owing to 
 the submarine menace. Our railroads, therefore, had to 
 take over the whole burden. On top of this, the entire 
 movement of troops and military supplies was of course 
 concentrated in the north, and this tended automatically 
 to cut the south off from railroad communications. Many 
 goods were available for marketing and had just to lie 
 where they were, and in many cases were wasted. All 
 this is gradually setting itself right. 
 
 Our agricultural produce which, at pre-war prices, rep- 
 resented a yearly income of about six and a half billions, 
 will benefit by the return to normal conditions. Grapes, 
 early vegetables, oranges and lemons will again find their 
 market in Central Europe. Perhaps we shall have some 
 new markets for them; even during the war we made a 
 few odd experiments in this direction, sending grapes by 
 rail to England. War conditions would not allow us to 
 follow this up, but the experiment will now be resumed. 
 
 Certain markets for certain goods macaroni, for in- 
 stance are, of course, lost. But, believe me, they are not 
 lost for good. Now, of course, Italian macaroni is made 
 in the United States. But the war has taught many 
 people, who never ate it before, to eat macaroni, and there 
 is room in the world for spaghetti of all nationalities. 
 Especially when freight rates level down, you will not 
 compete with us in the European market for articles 
 of this kind. And then, we shall turn out some new 
 specialties and export them again to you. 
 
 It is only too true that we cannot import any more of 
 our Chianti wine to the States. But in compensation, you 
 will drink more orangeades than formerly, and use more 
 of our oranges. You may even find it convenient to man- 
 ufacture grape juice in Italy from Italian grapes. And 
 then, we have plenty of good mineral waters to send you. 
 Some of them are patriotic waters, as they belong to the 
 Trentino, and lastly, if you still stubbornly want our 
 
148 THE INTERNATIONAL TRADE CONFERENCE 
 
 Chianti you can take a trip to Italy and spend a few of 
 your dollars over there ! 
 
 Let us get on with our general survey. What about 
 the tourist trade? It will not only be resumed, but ex- 
 tended. I wonder whether you appreciate the fact that 
 with our new boundaries, restored to their natural limits, 
 especially on the Trentino side, some of the most beautiful 
 spots in the world have come back to us places which can 
 very well compete with the finest summer and winter re- 
 sorts in Europe, and which already have quite a world 
 clientele. 
 
 Our great national inheritance of art treasures, thanks 
 to some legitimate restitutions which have been secured 
 to us by the Peace Treaty, has been immensely enriched. 
 The new provinces, especially Trento, bring with them 
 also a most interesting contribution in the lace-making in- 
 dustries. And if the Trento laces become a la mode, 
 gentlemen, you will have to buy them for your wives and 
 daughters. 
 
 What about emigration ? Emigration is a normal char- 
 acteristic of Italian economic life. It will be resumed. 
 If certain markets cannot receive our emigrants in great 
 numbers there are others which will require them more 
 than ever before. Our French colleagues can tell you 
 that. 
 
 So far, I have spoken mainly about the old resources; 
 but there are new ones to be reckoned with. 
 
 Just now I was talking of emigration. In the future 
 Italy will benefit not only from our own emigrants, but 
 also from emigrants of other nationalities. As a conse- 
 quence of the war emigration from eastern Europe will 
 certainly develop substantially and steadily. Whether 
 the stream of emigration will go to North or South Amer- 
 ica is immaterial. Geography is there to show that once 
 Bremen, Hamburg, and other German ports, are no longer 
 protected by the artificial preferential tariffs which Ger- 
 many was allowed to enjoy before the war. Italy is bound 
 to become the greatest transit country in Europe for 
 people going from east to west. The same may be said 
 
THE INTERNATIONAL TRADE CONFERENCE 149 
 
 for goods traffic in both directions. Italy, if only freedom 
 is guaranteed, will become the great entrepot of eastern 
 Europe. 
 
 Our own export trade will certainly take a proper 
 share if not a predominant share of ex-German and 
 Austrian commerce in the Levant. This is bound to 
 happen. 
 
 The incredible privations which we endured during the 
 war owing to lack of fuel have taught us the imperative 
 necessity of developing our water-power resources. These 
 can be more than trebled. We have already made a good 
 start in this direction. 
 
 And it may perhaps surprise you to learn that we are 
 not developing, but creating, water power in the south, 
 where there is no water. 
 
 We already have an artificial lake in Muru Lucano, Be- 
 silicata, between Bari and Naples. Far bigger works, of 
 the same kind, have been planned out for Calabria and 
 Sardinia. You will hear more about these because we 
 want the help of your machinery for them. 
 
 The transportation of war industries in Italy, as else- 
 where, is certainly fraught with difficulties. But let me 
 say that in this respect we now enjoy the benefits of the 
 greater privations which, from inevitable causes, we had 
 to endure during the war. 
 
 The acute submarine menace, longer distance, cost of 
 freight, etc., not only prevented generally speaking 
 Italy from becoming a great manufacturing emporium for 
 the Allies, but even rendered it impossible for her fully 
 to supply her own needs in the way of war material. 
 
 Consequently, our war factories were, comparatively 
 speaking, less numerous than in other Allied countries. 
 This now diminishes our difficulties of transition and 
 transformation. On the other hand, what the war has 
 created in Italy, can stand the test of any comparisons. 
 I need only mention here the Ansaldo works, the Lliva, 
 the Fla. Our automobile industry is one of the best in 
 the world. Our chemical manufacturing industry is now 
 able, generally speaking, to supply the entire needs of 
 
150 THE INTERNATIONAL TRADE CONFERENCE 
 
 Italy. With the necessary financial assistance, it will 
 perhaps affirm itself on other markets. Numerous small 
 industries have been born during the war which emanci- 
 pate our country from similar industries in Germany. 
 
 What I have said, gentlemen, about Italian resources, 
 does not imply that we do not stand in need of any help. 
 We do need help, though only for a time, which we trust 
 will be short. 
 
 What do we need? Foodstuff's first of all. The chief 
 item, of course, being cereals, particularly wheat. The 
 Italian is a very decent sort of fellow, but on one con- 
 dition, that he may have his loaf and his dish of paste. 
 Everybody, the world over, eats bread, but there is no 
 country in which the staple diet of the people is based 
 so pre-eminently on cereals either in the form of bread 
 or macaroni, polenta or minestrone as in Italy. The 
 consumption of cereals has increased of recent years in 
 ratio to the decreasing availability of other supplies, such 
 as meat, cheese, sugar, etc. Bread and paste, compara- 
 tively speaking, are much the cheapest food of all. People 
 therefore take to them the more willingly. 
 
 This year we had a poorer wheat crop than last year. 
 The drouth was awful. On the other hand, we expect 
 a fall in consumption as the result of demobilization. 
 This means that our import requirements this year will 
 equal the actual importation of last year that is to say, 
 3,000,000 tons. 
 
 Of these 3,000,000 tons, at least 2,000,000 will have to 
 come from the United States. This is quite an excep- 
 tional quantity on the pre-war basis, but until Russia and 
 Roumania are again in a position to give us wheat as they 
 did before the war, we must have recourse mainly to the 
 United States. 
 
 In a year or so things will be changed, and we may de- 
 crease this quantity by one-half. I am not going to sug- 
 gest that Italy shall provide for her full requirements by 
 extending the home cultivation of cereals. This might 
 prove to be at the expense of more profitable crops, and 
 
THE INTERNATIONAL TRADE CONFERENCE 151 
 
 consequently a fatal mistake. But we shall certainly 
 improve our production by intensive culture, etc. 
 
 In this regard, however, as in other cases, I deprecate 
 any policy which, with a view to rendering each country 
 self-supporting, would destroy foreign commerce. We 
 should be going back to an economy a la Robinson Crusoe. 
 This would not be progress, but retrogression ; not the in- 
 creasing, but the decreasing of wealth. 
 
 Next, we need frozen meat, pork products, butter and 
 cheese, and condensed milk. All these imports are of an 
 exceptional character. We never used to import them in 
 any appreciable quantity, while we used to export some 
 of them on a fairly big scale. We need to import them 
 now as the result of the great reduction of our live stock 
 caused by the war. The situation was most acute last 
 year when Italy ate meat practically once a week. 
 
 Now, however, the worst is over. The recent census 
 has revealed the astonishing fact that the number of our 
 heads of cattle this year is actually greater than it was 
 before the war. This has been brought about in the 
 course of a single year by means of the very real priva- 
 tions which we imposed on ourselves during the last 24 
 months. There is, of course, still an enormous difference 
 in the weight of our cattle, but at any rate the improved 
 situation is indicative of that spirit of determination 
 which we bring to the solution of our problems. 
 
 As I said before, these requirements are temporary. 
 American goods, however, prove to be rather sticky. 
 Once they have been introduced somewhere they remain. 
 I am sure, therefore, that your pork products, canned 
 meats and such goods, will make substantial progress in 
 Italy and find permanent favor there. 
 
 Apart from food, we need from you certain raw mate- 
 rials, as for instance, cotton, metals and tobacco prod- 
 ucts which we always imported from abroad. 
 
 These items do not represent any innovation and they 
 are required for very profitable industries. The tobacco, 
 for instance, yields to the State one billion lire per year. 
 
 There are, however, a few other products which repre- 
 
152 THE INTERNATIONAL TRADE CONFERENCE 
 
 sent new requirements dependent on new circumstances. 
 I refer first of all to coal, and in conjunction with it, to 
 fuel oils. 
 
 The torments and privations to which Italy was ex- 
 posed during the war owing to shortage of coal consti- 
 tutes one of the noblest forms of national sacrifice, and 
 one of Italy's finest contributions though a silent one 
 to victory. 
 
 Italy is a country in which the use of coal is not widely 
 diffused. In order to reduce the consumption thereof she 
 was thus compelled to restrict not so much its non-essen- 
 tial uses as those of primary necessity. Italy went short 
 of coal for her trenches ; her hospitals were often left en- 
 tirely unheated. 
 
 Now, it is true, the situation has been relieved to some 
 extent by the importation of American coal. This must 
 continue. In pre-war time, already, we imported Ameri- 
 can coal in a limited measure. But until things settle 
 down in England, and Germany starts to ship coal to 
 Italy, American help must be substantial, while even that, 
 if there is one country in which continued coal business is 
 to be done, that country is Italy. I am sure, however, 
 that our American friends will realize, that in order to 
 establish permanent relations with Europe, they must 
 bring the c. i. f. price of American coal into competition 
 with European coals. 
 
 Parallel with coal, we require fuel oils. We need coal 
 substitutes sometimes even for railroad purposes 
 almond shells, olive stones, panels, etc. I have little doubt 
 that f ul oil would prove a more efficacious substitute. 
 
 We also need larger supplies of timber. Although the 
 Trentino brings with it not inconsiderable timber re- 
 sources, and although we may receive some timber from 
 Austria, we still need timber from you. Of course, other 
 countries suffered more seriously than we did from devas- 
 tation; but a quite mistaken impression seems to pre- 
 vail that Italy did not suffer devastation at all, and I only 
 wish it were a correct one. 
 
 Now, gentlemen, the consecutive logic of my argument 
 
THE INTERNATIONAL TRADE CONFERENCE 153 
 
 ought to induce me to devote a part of my address to a 
 fervent attempt to convince you of the reasons why, in 
 your own interest as well as in ours, you ought to help us. 
 
 Many of us, gentlemen not myself, however, who had 
 the privilege of meeting several of you on the other side 
 thought that the chief task we should have would be that 
 of persuading you. It is highly gratifying to find that 
 you are almost more convinced than we are ourselves. 
 This may cost some of the labor of recasting speeches 
 prepared in advance! But, believe me, the helpful spirit 
 you have shown us, and the general atmosphere of sym- 
 pathy which has surrounded us since our arrival in Amer- 
 ica, has deeply touched our hearts. 
 
 We all have noticed that, while you are intent on doing 
 good, sound business, you do it with sentiment in your 
 heart and a vision in your mind. Herein, gentlemen, lie 
 the surest guarantee of the success of this conference. 
 
 The spectacle of private business men putting their 
 heads and their hearts together to solve, by spontaneous 
 cooperation, and, if necessary, sacrifice, the problem of 
 world-reconstruction, is truly an inspiring one. It will 
 bring about educational results, which will last forever. 
 No government system could bring with it such benefit. 
 
 I assume, therefore, with the greatest gratification, 
 that you are prepared to help us. Along what lines ? 
 
 Long-term credits is the first answer. I am not going 
 to enter into details on the subject. That will be done 
 tomorrow. Only while speaking of long-term credits, let 
 me call your attention to a point which you will certainly 
 appreciate ; that some credits must of necessity be longer 
 than others. I refer especially to food. 
 
 America's relief work in Europe is a living monument 
 which she had erected to humanity. This work cannot 
 be stopped in a moment. It must come to a gradual end. 
 If things in Russia do not take a worse turn one year 
 ought to be sufficient to enable most of the European 
 countries substantially to lift the abnormal pressure for 
 foodstuffs generally now made on the United States. But, 
 
154 THE INTERNATIONAL TRADE CONFERENCE 
 
 during this year, it would be a fatal mistake not to take 
 particular pains to help Europe's food situation. 
 
 This can be done in two ways: By granting longer 
 terms, and by accepting for these essential commodities 
 guarantees and collateral which you would not, perhaps, 
 take, say for cotton. 
 
 There are other ways in which America can help Europe 
 generally. Certain American merchandise is rendered al- 
 most inaccessible to Europe by the high cost of freights. 
 Now America comes out of the war with a large and 
 powerful mercantile marine. It would be a great benefit 
 to Europe, and even to yourselves, if, through her mer- 
 cantile marine, America would give the lead to a policy 
 which would tend to lower the general cost of living all 
 over the world. 
 
 These are the general means of helping the situation; 
 but there are some which are peculiar to Italy. America 
 has capital; Italy has labor. Many a happy issue can 
 come out of the marriage of American capital and Italian 
 labor. I have in mind also American capital joining hands 
 with Italian labor in Italy itself. Italian capital would 
 certainly be most eager to cooperate, and many an asso- 
 ciation of this kind might be formed. I am told that 
 one such is already in existence. 
 
 In this connection, I think that the ideas of a distin- 
 guished countryman of yours, Mr. David Lubin, for pro- 
 moting commercial relations between our two countries, 
 are worthy of very careful consideration. 
 
 There has been much talk in America of the Mediter- 
 ranean Basin as a possible field for new markets now that 
 the downfall of Turkey has opened up large tracts of pop- 
 ulous country which may regain their former prosperity. 
 
 Mr. Lubin pointed out that the United States, while 
 naturally desirous of promoting their foreign trade here 
 as elsewhere, are too far removed from the field of action, 
 and too little acquainted with the psychology, tastes, and 
 requirements of those populations (including those of 
 North Africa, Asia Minor, Greece, and Italy herself) 
 to be able successfully to conquer this trade by 
 
THE INTERNATIONAL TRADE CONFERENCE 155 
 
 the "sample trunk" mode of doing business, that 
 is, the exportation to those countries of manufac- 
 tured goods, ready-made clothing, boots and shoes, 
 agricultural implements and machinery, and the 
 hundred and one objects of common domestic use, 
 such as are manufactured and sold in America and else- 
 where, and which would doubtless find a market in the 
 Mediterranean countries if properly introduced. 
 
 Italy, on the other hand, is admirably suited for the 
 conquest of these markets ; she is in a much better posi- 
 tion to adapt her products to meet their tastes and re- 
 quirements; she already has, throughout these coun- 
 tries, the requisite nucleii for creating trading organiza- 
 tions. 
 
 It would, therefore, be mutually advantageous to Italy 
 and the United States if they were to collaborate for the 
 development of the markets of the Mediterranean Basin. 
 Toward this end Italy would become an industrial base 
 for the production, on 20th century lines, of manufactured 
 goods for sale in these markets. 
 
 Our financial experts will discuss the form of guaran- 
 tees you are going to ask for your loans. You will, no 
 doubt, examine, in order of priority, the different secu- 
 rities which you are willing to accept. But when speak- 
 ing of guarantees and securities, please do not forget that, 
 even in commerce, the moral guarantees are always the 
 surest. 
 
 I have given you some idea of the future resources of 
 Italy in the way of commercial expansion. I have shown 
 you that the compression of our trade, having been dur- 
 ing the war necessarily more severe than it was else- 
 where, our margin of recovery is proportionately greater. 
 That is a guarantee. 
 
 I have shown you that, in consequence of our geograph- 
 ical location, and the new political situation, Italy is bound 
 to become the great entrepot for the commerce, and the 
 natural transit station for emigration from, the Orient. 
 That the industrial transition from war to peace is com- 
 
156 THE INTERNATIONAL TRADE CONFERENCE 
 
 paratively easier in Italy than elsewhere. Those are 
 guarantees. 
 
 I am not going to repeat here, even in a summarized 
 form, the enumeration of Italian resources. 
 
 I have not yet dwelt on the greatest of all resources, 
 which consists in the number and equity of our popula- 
 tion. Notwithstanding our 500,000 dead in the war, we 
 possess forty million sober, thrifty, hardworking, very 
 prolific people. 
 
 You will find Italians in all corners of the earth, under 
 every climate, in all sorts of arts, professions and trades ; 
 changing, if necessary, their calling several times in the 
 course of their lives, always adapting themselves to cir- 
 cumstances. 
 
 Several years ago, when I was in the United States, in 
 the Emigration Service, I was asked to send for an inter- 
 national exhibition in Turin some evidence of the activi- 
 ties of Italians abroad. Do you know what I did ? I got a 
 fine collection of photographs of the finest vineyards, the 
 highest buildings, the deepest mines, the principal rail- 
 roads, and the greatest aqueducts of America. These, 
 gentlemen, are monuments erected by Italian labor. 
 
 I have incidentally touched on the privations which 
 Italy more than any other country endured during the 
 war living without coal, eating practically no meat, and 
 the worst bread in Europe. The sacrifices we then made, 
 gentlemen, and are still making, are a guarantee of our 
 determination to put ourselves again on our feet. Re- 
 member that we are, after all, a young country. We had 
 our Bisorgimento only half a century ago. At that time 
 our government bonds, the face value of 100 lire, could 
 only sell at 48. Before the war those same bonds sold at 
 106 lire. 
 
 You have seen, you know, the Italian laborer. Some of 
 you may have some time criticized him for living here as 
 modestly as he could, and saving his money. Gentlemen, 
 he was repaying his country's debts. We have the habit 
 of repaying our debts at whatever sacrifice may be neces- 
 sary. That is a guarantee. 
 
THE INTERNATIONAL TRADE CONFERENCE 157 
 
 Of course, we have our domestic troubles of a social 
 character, just like everybody else especially at the pres- 
 ent period of general elections which are not, as far as 
 I am aware, conducive to ideal peace and calm in any 
 country. But let me tell you most emphatically that to 
 talk of Bolshevism in Italy is sheer nonsense. 
 
 I can readily understand how American watches with 
 concern and anxiety the internal situation of Europe. 
 Europe is, of course, the bulwark against Bolshevism. 
 Geographically speaking, Italy is more so than any other 
 country. But patriotism and common sense keep out Bol- 
 shevism. The common sense of our laboring man you 
 have already experienced. I hardly think that just now 
 you will accuse us of not being patriotic. These qualities 
 did keep Bolshevism out most effectually last spring when 
 an organized effort was made to get up Bolshevist agita- 
 tion. It was routed by the people themselves, and ended 
 up in a great patriotic demonstration. This occurred at 
 a moment of acute political and economic stress and un- 
 rest. 
 
 Gentlemen, our friendship for America is based not so 
 much on the sentiments of the highest classes, as on the 
 feeling of the millions of Italians who have been over here 
 to fight the battle of life. Nothing, nothing can shake it. 
 
 But it follows, that expectations in Italy are great. The 
 man in the street in Italy, who almost regards America 
 as a second Mother country, would never be able to un- 
 derstand how it was that America could not help him. If, 
 he argues, America has invested money in Italy for war 
 purposes why should she hesitate to invest capital in Italy 
 for the purpose of peace ? 
 
 Gentlemen, Italy is not sufficiently known in America. 
 You will allow me to say that you are certainly better 
 known in Italy than Italy is over here. But, believe me, 
 we gain on closer acquaintance. In my official capacity I 
 have had very extensive experience with American of- 
 ficials, who, after all, were prominent business men. I 
 always had their unfailing support and sympathy. I 
 
158 THE INTERNATIONAL TRADE CONFERENCE 
 
 think it is my duty, as it certainly is my pleasure, to ac- 
 knowledge this with gratitude. 
 
 Gentlemen, I do not know whether, in depicting to you 
 the Italian situation, I have been optimistic. Mine, how- 
 ever, is not optimism, it is confidence and faith. Those 
 who, today, are unduly pessimistic are no more in the 
 right than those who were pessimistic about our winning 
 the war. 
 
 We have, as I have said, confidence and faith. Confi- 
 dence in ourselves and faith in you. 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 159 
 
 EVENING SESSION. 
 THURSDAY, OCTOBER 23, 8.15 O'CLOCK. 
 
 Mr. Ferguson, in the chair, said : 
 
 Ladies and Gentlemen: Before starting the meeting I 
 wish to make a brief announcement in my own behalf and 
 in behalf of the directors of the Chamber of Commerce of 
 the United States. When we first started with the idea of 
 holding this International Trade Conference it was neces- 
 sary that a great deal 
 of individual work be 
 done. We sent to Eu- 
 Hk rope two gentlemen 
 
 K associated with the 
 
 :'M Chamber, Mr. Filene, 
 
 LiMi jgBJ * :; . and Mr. Miner, of 
 
 Rochester. Later they 
 were followed by Mr. 
 Bedford and by Mr. 
 Thomas Lamont, and 
 later by some of the 
 regular officials of the 
 Chamber : First, Mr. 
 Ben H. Lambe, and 
 then our general sec- 
 retary. Mr. Elliot H. 
 Goodwin. After a great 
 deal of trouble, not 
 with our visitors, but 
 in getting transporta- 
 tion for our visitors, we finally brought them over 
 to the United States. They were met at New York by a 
 committee of which Mr. Lewis Pierson is Chairman, and 
 by the Chairman of our executive committee who has 
 really been in command during this Conference, Mr. Bed- 
 
 ANDREW H. PHELPS. 
 
160 THE INTERNATIONAL TRADE CONFERENCE 
 
 ford. The amount of work that had to be done by all of 
 these gentlemen was very great, but in arranging for the 
 program of this Conference and planning the various 
 group meetings I want to pay special tribute to the splen- 
 did and untiring work that has been done by Mr. John H. 
 Fahey, of Boston, and I also wish to mention the splendid 
 assistance which we received from Mr. Phelps in our New 
 York office, and others. Gentlemen who are used to con- 
 ferences of this kind, of course, appreciate that a great 
 deal of preliminary work must be done, and I want to 
 give my personal testimony to the splendid services of 
 these gentlemen, and I want them to know that all of the 
 delegates here are very much indebted to them for this 
 work . 
 
 This afternoon, ladies and gentlemen, I had a most 
 pleasant meeting with a group of Russian gentlemen 
 headed by the Consul General of New York, M. Ustenoff, 
 who came to this Conference to witness the proceedings 
 and to be with us here, on our invitation, sent by the Rus- 
 sian Embassy. These gentlemen have asked me to ex- 
 tend to the Conference their very best and most cordial 
 wishes for its success, and I am sure that you will all 
 join me in the hope that at no very distant date the dele- 
 gates from Russia will sit with us all and take their full 
 share in the proceedings of international trade confer- 
 ences. 
 
 Address of M. Eugene Schneider, 
 
 Chairman of the French Mission; President of Creusot Works; 
 
 President, Iron and Steel Institute of France; Former 
 
 Member of the Chamber of Deputies. 
 
 The Chairman: The first speaker of the evening is so 
 well known to you now that he hardly needs an introduc- 
 tion, and all I can say is that I do not know of any man 
 whom I had rather introduce. The President of the 
 French Iron and Steel Institute, is a most distinguished 
 
THE INTERNATIONAL TRADE CONFERENCE 161 
 
 man, and I have no doubt that he will be the presi- 
 dent of something in these United States if he stays here 
 long enough. We have come to know him very well, and 
 we not only welcome him in his own name, but we welcome 
 him in the name of the subject of his address tonight, 
 because ever since we were boys and our fathers and our 
 grandfathers were boys, we have been taught to love and 
 to revere the country which has sent him here. Since 
 Count de Grace and Lafayette helped us in the olden days 
 down around the Chesapeake to secure our independence, 
 up to the present time, particularly during the last few 
 years, we rejoice to know that nothing will ever step be- 
 tween France and the United States. I take pleasure in 
 introducing M. Schneider, our good friend. 
 
 M. Schneider said: 
 
 Mr. Chairman and Gentlemen: In the name of the four 
 Allied Nations that accepted your invitation to this Inter- 
 national Trade Conference, I endeavored in my general 
 address to give you a perspective of the economic situa- 
 tion of Allied Europe after the Great Victory. 
 
 It is my duty now, as Chairman of the French Mission, 
 to present to you more definitely the particular situation 
 in France and to sketch as precisely as possible to you 
 the condition in which our country finds herself today, 
 on the threshold of the new era opened to the nations of 
 the world by the overthrow of German Imperialism. 
 
 Only a few days before the brutal aggression that 
 turned loose over Belgium and France the Teutonic 
 hordes, crazed with the lust of conquest, some of you, 
 gentlemen, were gathered in Paris for the sixth Interna- 
 tional Congress of the Chambers of Commerce. 
 
 France, enjoying an exceptionally advantageous geo- 
 graphical position, possessing a soil that is proverbially 
 fertile, having considerable mine wealth, big industries, a 
 splendid colonial territory of vast size and with an almost 
 illimitable variety of resources, nevertheless did not oc- 
 cupy the prominent economic place to which her possi- 
 bilities seemed to destine her amongst the nations. 
 
162 THE INTERNATIONAL TRADE CONFERENCE 
 
 The conservative traditions of one of the most ancient 
 civilizations, the antiquated bureaucratic methods, an in- 
 grained spirit of economy and of thrift, an innate 
 prudence and an instinctive mistrust of everything that 
 seemed to partake of any risk, a passionate spirit of in- 
 dividualism, the heavy burden of the military service that 
 German imperialism imposed upon the very prosperity of 
 our country, checked in our people that spirit of enter- 
 prise and daring that have made the fortune of young 
 nations. 
 
 Before the war there were knockers, who, arguing upon 
 this basis, put forward our country as exhausted, in- 
 capable of coming back, and good only at most for pouring 
 out its soul in the delicate expression of the fine arts. 
 
 Yet, gentlemen, this exhausted nation has just sus- 
 tained for more than four years the most terrific shock 
 which has ever yet staggered humanity. She raised seven 
 million men, which equaled one-fifth of her population, 
 and she has offered in sacrifice one and a half million 
 of them. 
 
 When her richest provinces were invaded she did not 
 despair. Deprived of her mines, of her most flourishing 
 industries and of the industrial help of many of her 
 people she made new factories spring up, converted her 
 industries to war purposes, and, putting forth all her 
 energy to the defense of her territory, was able to forge 
 the weapons, not only for herself, but for all her Allies. 
 
 I take the freedom to recall this gigantic effort because 
 it is indispensable to take it into account if one is to judge 
 rightly our present situation. But I do not forget that 
 my purpose is to tell you where we stand today, and to 
 examine with you the condition of our chief producing 
 forces. It is a sort of balance sheet of our national econ- 
 omies that I wish to present to you. And for that pur- 
 pose I think it will be best to review the different chap- 
 ters in which the life of our country is written, namely, 
 mining, steel, textile and chemical industry, agriculture, 
 transportation, colonies, and finance. This inventory 
 makes a dry statement, as is always the case with its kind. 
 
THE INTERNATIONAL TRADE CONFERENCE 163 
 
 I ask for your indulgence, but I believe also that you are 
 familiar and better pleased with facts and figures than 
 with verbiage. 
 
 OUR MINING AND STEEL INDUSTRIES. 
 
 Rich in iron ore, but somewhat lacking in coal, France 
 had, before the war, managed to build up an iron and 
 steel industry, not only sufficient for her needs, but leav- 
 ing a surplus for export. 
 
 The mining and steel industries have been severely hit 
 during the war, but no sooner had the armistice been 
 signed than work began again in the devastated regions, 
 where our plants are rapidly coming back to life. Even 
 though the restitution of Alsace-Lorraine does not im- 
 prove our coal resources, it nearly doubles the production 
 of iron ore, pig and steel, thus enabling France to build 
 up a considerable export trade in this line, and to assume 
 in the world's markets the place that is her due. 
 
 In 1913 the production of the French coal mines 
 amounted to 40 million tons. The total consumption was 
 63 million tons, leaving a deficit of 23 million tons, which 
 came from Belgium, Great Britain, and Germany. 
 
 As regards coke, the pre-war situation was also un- 
 favorable, the imports amounting to 3 million tons, about 
 on a par with the French production. 
 
 Even before the war France was striving to develop her 
 coal and coke industry; new r coking plants had been 
 erected and six new coal mines were to have been opened 
 in the new Pas de Calais basin. 
 
 During the war, the production of the coal mines fell 
 50 per cent, the majority of the pits in the North and Pas 
 de Calais being occupied by the enemy. They were actu- 
 ally the scene of the severest battles. Who does not re- 
 member the capture of the Vimy Ridge and the battles of 
 Lens? 
 
 As I have just said, the production of coal in France 
 fell from 40 million tons to less than 20 million, but the 
 strenuous efforts of the mining companies and their men 
 
164 THE INTERNATIONAL TRADE CONFERENCE 
 
 raised the production to 21 million tons in 1916 and 28 
 million in 1917. 
 
 At the same time, France harnessed water-power in 
 order to save coal. France is one of the richest countries 
 in that line. Before the war we had 700,000 H. P. avail- 
 able. Today the figure is 1,200,000 H. P. Next year it 
 will be one and a half million H. P. Up to now 300 million 
 dollars have been spent in developing water-power; and 
 during the war alone 120 million dollars were subscribed. 
 
 After the war, even with the utmost developments of 
 water power, we shall be short of coal. When the pits 
 are again in order, the production of France will amount 
 to 45 or 46 million tons. Alsace-Lorraine produces about 
 3 million tons, but as she consumes 11 million, her return 
 to France, instead of making the problem easier, has 
 made it more difficult. The home needs of the country 
 will amount to about 88 million tons. The Saar basin 
 produces 13 million tons, which, deducing its own con- 
 sumption, leaves a net surplus of 7 million tons. Under 
 the stipulation of the Treaty of Peace, Germany is obliged 
 to send 20 million tons every year to France to replace the 
 production of the mines she destroyed; moreover, she 
 must deliver to us an extra 7 million tons, which was the 
 average amount she sold to us yearly before the war. 
 
 Up to the present we have not even received one-half 
 of the quantities promised to us from Germany, and Eng- 
 land has very greatly reduced her coal exports. So we 
 find ourselves faced by an actual shortage of about 20 
 million tons. We shall make every effort to economize 
 coal and develop our national resources. We shall con- 
 tinue the rationing of coal for household purposes, and 
 we shall endeavor to make use in large measures of liquid 
 fuel. 
 
 The use of fuel oil must be extended. Before the war, 
 the use in France of the products derived from crude pe- 
 troleum was limited to gasoline and lubricating oils. Fuel 
 oil we must use in large quantities in future. 
 
 Large beds of shale exist in the vicinity of Autun. 
 They may be exploited for the production of oil. Be- 
 
THE INTERNATIONAL TRADE CONFERENCE 165 
 
 sides, Alsace-Lorraine brings back with her the Peschel- 
 brom district with 50,000 tons of oil per year. In the 
 French colonies, especially in the province of Oran, oil has 
 been discovered, and drilling has already begun there. 
 
 However, the oil resources of France are insufficient for 
 her needs, and we shall have to import. We are making 
 the necessary preparations. In our ports, tanks have been 
 built with a total storage capacity of 600,000 tons. We 
 have 4,000 railroad tank cars; we have under construc- 
 tion 10 tank steamers which will be added to the very 
 small oil fleet we already possess and to the ships we 
 hope to get from Germany. An important step has been 
 taken by the Government to encourage the use of fuel oil, 
 the tariff having been lowered from $25 per ton to 80 
 cents. 
 
 As regards the production of iron ore, France occupied 
 before the war the second place in the world, and her po- 
 sition in the steel industry was fourth. 
 
 The opening and development of the Lorraine district 
 was due to the discovery of the Thomas process and the 
 increase in production has been extremely rapid in the 
 last few years. From 5 million tons in 1910 it jumped to 
 21 million tons in 1913. Besides, Algeria produces over 
 1,000,000 tons and Tunis half a million tons. This pro- 
 duction left a surplus of 10,000,000 tons available for ex- 
 port. 
 
 As regards pig-iron and steel, the development of the 
 French industry had been rapid, the increase between 
 1900 and 1913 being 87 per cent for pig-iron and 150 per 
 cent for steel. The domestic consumption had increased 
 in a similar manner, but there was a surplus left for 
 export. 
 
 Early in the war, France was deprived of the whole Lor- 
 raine district. Eighty-three per cent of her total produc- 
 tion of iron ore passed into occupied territory and 9 per 
 cent into the battle zone. Production fell to two and one- 
 half per cent at the time of the first battle of the Marne, 
 but rose afterward to 7y 2 per cent in 1916 and to about 
 10 per cent in 1917. 
 
166 THE INTERNATIONAL TRADE CONFERENCE 
 
 The situation of the steel industry was similar; 81 per 
 cent of the blast furnaces and 65 per cent of the steel 
 works were in the invaded zone or actually under fire. 
 However, the French industry got to work and during the 
 war, blast furnaces of an aggregate capacity of 620,000 
 tons, and converters or open hearth furnaces of a ca- 
 pacity of over one and one-half million tons were erected. 
 
 Enormous plants for the production of war equipment 
 were built, and France was then able to supply a certain 
 quantity of war material to the Allies, beside taking care 
 of the needs of her own army. The total value of the 
 equipment we furnished to the Allied and Associated 
 Powers has amounted to nearly one billion dollars. 
 
 Victory gives us back the whole of the Lorraine iron 
 ore districts, including that which had been held since 
 1870 under German domination. Our production of iron 
 ore will rise to about 45 million tons, of which we shall 
 be able to export 17 million tons. The pig-iron production 
 will increase to about 9 million tons, leaving about one 
 and one-quarter million tons for export. Steel production 
 will run over 8 million tons, of which more than one- 
 quarter will have to be sold abroad. 
 
 France, after the war, will take second place in the list 
 of the world's steel countries, following immediately be- 
 hind the United States. 
 
 Her engineering industry will follow the lead of the 
 steel industry and will get ready for export business. 
 Plans have already been laid and steps are already being 
 taken for capturing the markets which were formerly in 
 the hands of her enemies. France does not want to com- 
 pete with her Allies in the foreign markets, but she wants 
 to supersede Germany in the countries where German in- 
 dustry had the lead before the war. 
 
 OUR TEXTILES. 
 
 I wish now to say a few words about our textile indus- 
 tries. The excellent quality and fine designs of our silk 
 goods are appreciated all over the world, and America, as 
 well as Europe, is acquainted with our firms in Lyons. 
 
THE INTERNATIONAL TRADE CONFERENCE 167 
 
 Our silk exports before the war easily reached 100 million 
 dollars a year. 
 
 In the woolen business our mills possessed 11 per cent 
 of the total number of looms in the whole world employed 
 for this material. We were deprived of most of them 
 during the war, as our factories at Roubaix, Tourcoing 
 and Sedan were under German control. We had 2,600,000 
 spindles. We are now replacing those that have been 
 broken or stolen, and we have fitted up 100,000 new 
 spindles during the war. Alsace is bringing up 500,000 
 spindles, and if we can obtain sufficient raw material, I 
 am convinced that we shall be able to export double our 
 pre-war amount that is, more than 18,000 tons of woolen 
 stuffs per annum. I will only barely mention other tex- 
 tiles, such as linen, hemp and jute stuffs, the export bal- 
 ance of which amounted to 50 million dollars before the 
 war and which certainly will increase now. 
 
 But when I say that these industries will rapidly out- 
 grow our own requirements, I surely do not mean that 
 American help is not required for them. When you have 
 linen or dresses to buy, come to us ; we shall be proud to 
 satisfy the taste of your wives and daughters, who appre- 
 ciate our models and thus you will help to give employ- 
 ment to hundreds of thousands of our people. 
 
 I now come to cotton which deserves a special chapter 
 in this statement, as you are the largest cotton growers 
 in the world. 
 
 Although we are beginning to grow cotton in Algeria 
 and in our African colonies, most of our supplies come 
 from the United States and our requirements amount to 
 over one million bales of American cotton per annum. 
 
 In 1914 the cotton industry in France numbered 7,400,- 
 000 spindles and 140,000 looms, and employed 300,000 
 operatives. 
 
 Mobilization deprived the mills of the overseers and 
 skilled workers, such as spinners and sizers, and it also 
 prevented transport of fuel and raw materials. The Hun 
 invasion rapidly gained the whole north of France, bring- 
 ing to a stop all the country round Lille, Roubaix, Tour- 
 
168 THE INTERNATIONAL TRADE CONFERENCE 
 
 coing, Armentieres, with its 1,100,000 spindles and 20,000 
 looms. 
 
 From October, 1914, the other districts, and especially 
 Normandy, pushed their production in order to provide 
 for military requirements, the domestic and export busi- 
 ness consequently suffering considerable injury. 
 
 Now, with Alsace, our country can add one million 
 spindles and 45,000 looms to the former number. This 
 well-conducted industry, with first-class machinery for 
 bleaching and printing, will enable us to double our ex- 
 ports, carrying them from 46,000 tons to 92,000 tons. 
 
 In the district of Lille, after having recovered or re- 
 placed their machinery, our mills are gradually resuming 
 their work with splendid spirit. 
 
 Three hundred thousand workers of both sexes are em- 
 ployed in the cotton spinning and weaving mills in France, 
 but this number rises to more than 1,200,000 if one in- 
 cludes bleaching, dyeing, hosiery and the manufacture of 
 garments; the cotton industry may thus be considered 
 as one of the largest and most important in France. 
 
 The eight-hour day has been applied without serious 
 difficulties and the production will not be much affected 
 thereby when the proper measures are completed. 
 
 In fact, the cotton industry in France is hard at work, 
 and with the aid of Alsace, hopes to contribute consider- 
 ably to the wealth of the country. 
 
 THE CHEMICAL INDUSTRY. 
 
 France possessed a well-established chemical industry 
 before the war. It amply sufficed for her domestic re- 
 quirements, and she was able to export large quantities 
 of caustic soda, soda ash, raw glycerine, fertilizers, tartar 
 products, glues and other chemicals. 
 
 In order to give an indication of the size of the chem- 
 ical industry in France, I will take as a basis of compari- 
 son the production of sulphuric acid, a production which 
 is generally considered an index to chemical activity. In 
 1913, the various countries contributed to the total out- 
 put of the world in the following proportion : 
 
THE INTERNATIONAL TRADE CONFERENCE 169 
 
 United States 35 per cent. 
 
 Germany 17 per cent. 
 
 Great Britain 16 per cent. 
 
 France 13 per cent. 
 
 Other countries 19 per cent. 
 
 Considering the population of France and her area, her 
 rank as fourth, and the percentage she produced, show 
 clearly that she was one of the vigorous nations in this 
 branch of industry. 
 
 In the manufacture of the lighter and finer chemicals, 
 the position of France could be compared with that of 
 America; there was a development adequate to the do- 
 mestic demand, and the industry was on a modern plane. 
 The only branches that were lacking were those in which 
 Germany controlled the raw materials, or which were 
 connected with the aniline dyes and which owing to the 
 operations of the German Trust, had become a German 
 monopoly. In these branches the French chemical in- 
 dustry has not yet become self-sufficing. Their impor- 
 tance cannot be minimized. The coal-tar derivatives con- 
 stitute the nucleus of the most modern branches of the 
 chemical industry. 
 
 During the war the French chemical industry acquired 
 a large development through military requirements. The 
 expansion of the industry was not relatively so great in 
 France as in America, largely on account of the fact that 
 in France there was a lack of labor owing to the big de- 
 mand of the war for man power for the fighting services. 
 Notwithstanding this fact, it is noteworthy that the pro- 
 duction of sulphuric acid was increased threefold in 
 France during the period 1914-1918, whereas in the 
 United States the production was only doubled. France 
 attained this result even though her plants in the North 
 became unavailable for national production, owing to the 
 invasion of that territory. 
 
 French agricultural needs will absorb a large part of 
 the increased production. For the rest, France may count 
 upon a certain export business in the same way as she did 
 
170 THE INTERNATIONAL TRADE CONFERENCE 
 
 before the war. Her production of nitrates, cyanide, 
 calcium carbide, chlorine and its products, as well as of 
 pharmaceutical and photographic products has been 
 very considerably increased. 
 
 Between the French and the American chemical in- 
 dustries a useful collaboration can perhaps be realized 
 by an exchange of the excess products of each, between 
 the manufacturers of the two countries. A discussion on 
 this ground would prove interesting. 
 
 AGRICULTURE AND FOODSTUFFS. 
 
 I now touch upon a topic which will not fail to inter- 
 est you all, gentlemen, because it deals with the basis of 
 life: I mean foodstuffs. 
 
 France, before the war, enjoyed from the food produc- 
 tion point of view an enviable position, due to her fertile 
 soil, her mild climate and the quality of her peasants. 
 She found within her own boundaries a great part of the 
 necessary foodstuffs. 
 
 A few figures will illustrate this. In 1912 we imported 
 only 6 per cent of our wheat, less than 3 per cent of our 
 oats (which came from our colonies), hardly any sugar 
 was needed, and as regards meat only a few special prep- 
 arations. 
 
 This situation has been completely altered by the war. 
 Our mobilization withdrew from the farms all our young 
 and middle-aged men. And the richest part of our terri- 
 tory, which produced the greater part of our sugar and 
 important part of our cereals, was invaded at the be- 
 ginning of the war and devastated. 
 
 The area of cultivated land between 1913 and 1917 fell 
 from about 16 million acres to 10y 2 million under wheat, 
 from 10 million acres to 7 million under oats, and from 
 620,000 acres to less than 200,000 under sugar beets. 
 
 Most of our sugar factories having been in the North 
 of France were taken away from us at the beginning of 
 the war, those remaining under operation being conse- 
 quently reduced to 64 out of a total of 206. 
 
 By the help of women and of children and of men over 
 
THE INTERNATIONAL TRADE CONFERENCE 171 
 
 52 years of age, who were not called to the Army, the 
 land was cultivated thoroughly notwithstanding the war. 
 Indeed in the harvest of 1918 the crops of wheat were 10 
 per cent better than in the year before the war. The im- 
 provement did not take place in the land under oats, but 
 it occurred in the best crop and amounted to about the 
 same percentage. 
 
 Owing to the tremendous consumption of meat by the 
 armies, owing also to our losses by invasion, and owing 
 further to lack of agricultural labor, our reserves of 
 meat, or in other words our cattle, have decreased con- 
 siderably. This has entailed a considerable importation 
 of meat; whereas before the war we imported no fresh 
 nor cold-storage meat, the figures for the last year were 
 34,000 tons, while as regards canned meats,, the increase 
 has been from 550 tons in 1913 to 48,000 last year. 
 
 What is going to be the situation in the years to come ? 
 Very important purchases will have to be made. It is 
 true that the North of France has been returned to us, 
 but we still have to make that devastated territory fertile 
 again. Farms must be rebuilt. Labor, machinery and 
 fertilizers have to be taken there, and this work of re- 
 construction is not confined to the devastated area, but 
 extends over a large part of France. Everywhere the 
 introduction of agricultural machinery is being urgently 
 undertaken in order to replace the labor that was lost by 
 hundreds of thousands in defense of the country and the 
 liberty of the world. 
 
 Owing to the reduced areas under cultivation, we have 
 been obliged to make large purchases of foodstuffs 
 abroad. Our needs are covered until the end of this year, 
 but we still have to buy the following quantities in order 
 to carry on from the beginning of 1920 until about this 
 date next year : 
 
 Tons. 
 
 Wheat 1,000,000 
 
 Oats 200.000 
 
 Sugar 100,000 
 
 Condensed milk 600,000 
 
 Meats and meat products 25,000 
 
172 THE INTERNATIONAL TRADE CONFERENCE 
 
 The different items amount approximately to 150 mil- 
 lion dollars and will be purchased on the most advan- 
 tageous terms offered in different parts of the world. 
 
 TRANSPORTATION. 
 
 Up to the present, I have so far put before you the 
 conditions of France with regard to materials and prod- 
 ucts which we either consume or produce. I come now to 
 the question of shipping them and transporting them, 
 and of the means at our disposal for that purpose. 
 
 Before the war our ocean freight was carried by a fleet 
 representing about two and one-half million tons gross, 
 under the French flag and by a certain amount of for- 
 eign tonnage. 
 
 Within our own country, the means of transportation 
 were well developed, having been constantly increased 
 and maintained adequate to the needs. They comprised 
 375,000 miles of well-surfaced highways, 3,000 miles of 
 canals; 4,250 miles of navigable rivers, and 32,000 miles 
 of railroads. 
 
 I should like to sketch briefly for you what that system 
 of communication has had to sustain during the war, 
 reminding you that we had to cope with the needs of 
 transportation of four Allied armies. 
 
 In the Army zones the highways carried millions of 
 men with their artillery, motor-trucks, horse vehicles of 
 every description and automobiles. At certain times, the 
 number of motor-trucks on our roads amounted to 200,- 
 000 ; there were days when 6,000 trucks passed the same 
 point on a single road. It is not surprising, therefore, that 
 an army of some 80,000 men had to be employed for the 
 handling of road-making material, of which the total 
 quantity used during the war reached nearly 28 million 
 tons. 
 
 The utilization of the canals and navigable rivers had 
 remarkable results, although our system in the North, 
 which is the most important of all, was in the hands of 
 the enemy. For instance, the traffic on the river Seine, 
 
THE INTERNATIONAL TRADE CONFERENCE 173 
 
 which amounted only to 3 million tons in 1914, exceeded 
 7 million tons in 1918. 
 
 Our railroads have had to deal with the greater part 
 of the freight and troops transportation, not only toward 
 the Allied front in France, but also toward Italy and the 
 fronts in the Orient. 
 
 As an example of what has been done, it may be suf- 
 ficient to indicate that the freight moved from our ports 
 by rail increased from 32 million tons in 1913 to 52 mil- 
 lion in 1916 and considerably more in the two later years 
 of the war. 
 
 As showing what has been accomplished since the 
 armistice, I may mention that of our 3,500 miles of rail- 
 road, that had to be rebuilt since last November, 3,300 
 miles had been completed by September the 15th, this 
 year. Eight-tenths of the waterways that had been 
 destroyed were open to traffic on the same date. The 
 highways had been rebuilt in the same proportion. 
 
 So far as shipping is concerned, we had many sacrifices 
 to make during the war. The ruthless submarine cam- 
 paign caused us many losses, which we were not able to 
 replace, because our shipyards had been turned into 
 shops for the production of war material for the armies 
 of our Allies as well as for ourselves. However, by pur- 
 chases abroad we have already succeeded in raising our 
 tonnage to the pre-war figure of two and one-half million 
 tons,, but we must state that this has had to be accom- 
 plished largely by the acquisition of rather old ships, 
 which leave our merchant fleet in a deteriorated condi- 
 tion. We intend to raise our shipping to at least 6 mil- 
 lion tons gross. You can give us considerable assistance 
 in this line, either by the construction of new vessels or 
 by giving us your support in having an appreciable 
 quantity of tonnage awarded to us from German sources. 
 
 Before leaving this matter of transportation, I should 
 like to draw your attention to the geographical location 
 of France in regard to traffic coming from the New 
 World to Central and Southern Europe. For instance, 
 the ocean freight reaching French ports in transit for 
 
174 THE INTERNATIONAL TRADE CONFERENCE 
 
 Switzerland had already attained a total of 800,000 tons 
 a year. We look forward to a considerable increase of 
 passenger traffic as well as of freight diverted from Ger- 
 man ports. Docks are being enlarged and numerous 
 piers for large ships have already been constructed. Ma- 
 chinery for handling freight is being installed in larger 
 quantities and of the most modern design, with a view 
 to reducing the terminal cost. 
 
 COMMERCE. 
 
 Intimately tied up with the reconstruction of that 
 stricken region which formerly throbbed with industry, 
 is the restoration of our former commercial position. 
 
 We have examined the effects of the war upon the 
 leading branches of our entire effort. Our national de- 
 fense meant a sacrifice of our industrial and commercial 
 interest, that cannot yet be valued in full. One indica- 
 tion of it is the decrease in the export trade of France 
 during the war. 
 
 If you compare the statistics of 1913 with those of 
 1918 you will see that our imports have trebled, whilst, 
 as our luxury industries have stopped working and the 
 plants that manufactured other articles have been con- 
 verted into war factories, our exports decreased 40 per 
 cent. 
 
 Our imports always exceed our exports, but the equi- 
 librium of our commercial balance was restored largely 
 through the thrifty qualities of the French people, who 
 had steadily amassed considerable savings, which, they 
 did not hesitate to invest abroad. France has always 
 been accounted a wealthy nation, and all the world has 
 known that she reaped a large income from her foreign 
 investments. 
 
 Our manufactured products were 67 per cent of our 
 total exports in 1914,, when our exports reached about 
 900 million dollars, but in 1916, the total went down to 
 about 800 million dollars and they recovered only very 
 little. 
 
THE INTERNATIONAL TRADE CONFERENCE 175 
 
 In 
 
 1914 they were $1,280,000,000 
 
 1915 they reached 2,200,000,000 
 
 1916 3,000,000,000 
 
 1917 3,200,000,000 
 
 1918 3,800,000,000 
 
 Our industry, entirely given up to our immediate needs 
 could no longer produce anything to be exported. Our 
 farmers were in the trenches. This compelled France to 
 appeal to foreign countries, not only to complete her agri- 
 cultural production, which was sufficient when harvest 
 was normal, but also to obtain raw materials required 
 for war purposes. 
 
 A long time is needed to transform war factories into 
 peace factories, and to reconquer the markets which were 
 lost during the war. In order to re-establish the balance 
 of the foreign commerce, which had been stopped by the 
 need of national defence, France has energetically re- 
 sumed work. 
 
 The statistics for the first months in 1919 compared 
 with those for 1918, for the same period, show that 
 the foreign trade of France has obviously improved, as 
 in the first seven months of 1919 our exports of manu- 
 factured products reached a figure which allows us to 
 hope that the exports of 1919 will be double those of 
 1918. 
 
 THE FRENCH COLONIES. 
 
 The picture I have just drawn of the French Nation 
 would be incomplete if I did not make a rapid sketch of 
 the possibilities of the French Colonies. 
 
 Their surface is ten times greater than that of France 
 herself. Their undeveloped wealth is enormous. Near- 
 est to us lies North Africa; that is Algeria, Tunis and 
 Morocco. These countries at the time of the Roman 
 Empire were called the granary of Rome. In a few years 
 they will be the granary of France. Northern Africa 
 produces not only wheat but fruit, wine and cattle. Cot- 
 ton can be cultivated there. Her mineral wealth is con- 
 siderable, large deposits of iron ore, zinc, lead and phos- 
 
176 THE INTERNATIONAL TRADE CONFERENCE 
 
 phates are under development. Even oil has been struck 
 there. 
 
 The trade of Northern Africa is increasing year by 
 year. It amounts to more than 500 million dollars. Mo- 
 rocco's trade alone rose from 35 million dollars in 1918 
 to more than 77 million dollars in 1919. 
 
 Farming on an extended scale can be practiced there, 
 and the use of modern agricultural machinery will be of 
 the greatest benefit to the development of our Colonies. 
 Algeria, one of the oldest, has more than 3,500 miles of 
 highways and 2,000 miles of railroads, while Morocco 
 has only 450 miles of narrow-gauge railroad under con- 
 trol of the military service. A new system of railroad 
 about 600 miles long, is under construction. 
 
 Harbors must be developed on similar lines. For 
 Algiers a sum of 20 million dollars has been provided. 
 The construction of the port of Casablanca, capable of 
 handling one and a half million tons of shipping is being 
 rapidly pushed ahead. Other ports, such as Bougie, 
 Kemtra, Mazagran, Mogador and Agadir have been 
 improved. 
 
 These few facts will enable you to understand the pos- 
 sibilities of our colonial territory which includes besides 
 North Africa prosperous countries like West and Central 
 Africa, Indo-China, Madagascar, and the French Islands 
 of the Antilles and the Pacific. 
 
 These colonies will send wheat, vegetables, oils, lumber, 
 cotton, and ores to France and in return will get man- 
 ufactured products. 
 
 The opening of these countries is of very great im- 
 portance to France and French American co-operation 
 in that line would probably give most excellent results. 
 
 FINANCE. 
 
 Tomorrow morning my colleague Baron du Marais, 
 Vice-President of the French Mission, will lay before 
 you a survey of the financial situation of France, and 
 he will tell you, gentlemen, of the efforts which have al- 
 
THE INTERNATIONAL TRADE CONFERENCE 177 
 
 ready been made and those which are going to be made. 
 He will deal also with the exceedingly difficult problem 
 of the International money exchange, which we regard 
 as the most important matter to be dealt with at this 
 Conference and which will govern the trade relations be- 
 tween you and ourselves. I will content myself there- 
 fore at this time by mentioning that during the course 
 of this year the savings banks deposits have continued to 
 increase month by month and that, during the first half 
 of this year, the existing taxes produced more than 200 
 million dollars in excess of the estimate. These two facts 
 are signal evidence of returning prosperity. 
 
 CONCLUSION. 
 
 That brings me to the end of my statement of the prin- 
 cipal factors in our economic activity today. I apologize 
 for having been so long and so monotonous, and I thank 
 you for the patient way in which you have listened to me. 
 But patience can be imprudent,, for I have to ask you to 
 maintain it still for a few minutes. 
 
 I have spoken to you of our material situation. You 
 have been able to see that the material elements of a 
 prosperous future are not lacking. French soil, French 
 earth, our Colonial territory are endowed with resources 
 still unexploited and with almost infinite possibilities. It 
 is clear to every close observer that France and her Col- 
 onies can yield riches in greater abundance than ever 
 before. 
 
 The question now is can the French race take proper 
 advantage of the country it lives in? I mention this 
 question, because I know that there are people who ask it. 
 
 But I call your attention at once to the fact, in case 
 you have not yourselves noted it, that those who state to- 
 day that France is at the end of her strength, that she is 
 exhausted by war, and that she will not recover, are those 
 very people who shouted in 1914 that our defeat was in- 
 evitable, and who predicted that at the end of three 
 months' fighting the French people, discouraged, would 
 accept a dishonorable peace. 
 
178 THE INTERNATIONAL TRADE CONFERENCE 
 
 Those people are answered today by the facts them- 
 selves. It has not been only in the military sphere that 
 we have risen to the circumstances. You have seen how 
 our steel industry, our mining, our chemical and textile 
 industries have faced misfortune and prepared to resume 
 their place in the world. 
 
 The reconstruction of our devastated regions is today 
 in full swing. It has taken many months to make the 
 necessary inventory, to measure up the enormous size 
 of the task to be able to make sure what was really 
 wanted under these extraordinary circumstances and 
 then to find the best means of giving the necessary help. 
 
 During that early period of reconstruction complaints 
 were numerous, for the French are of a race of grum- 
 blers well typified by the "Grognarde" of Napoleon. 
 Since the days of Julius Caesar they have been unable to 
 render themselves absolutely satisfied. Today the ma- 
 chine is working; trains loaded with materials of all 
 kinds are running continuously toward the North. 
 Complaints are less noisy and fewer and fewer. It will 
 be the same with the devastated parts of the country as 
 it was during the war, when some part or other of the 
 front had been burst open by the enemy. An urgent de- 
 mand would be made for reinforcements; one day, two 
 days, three days, might elapse without bringing help de- 
 manded. That was when the man of weak spirit would 
 think he was utterly lost. But on the fourth day a regi- 
 ment would appear, and from that very minute, without 
 interruption, by rail or by truck, would come the rein- 
 forcements. Time had been necessary to set the enor- 
 mous organization going, but once again the situation 
 would be saved. 
 
 At the time of the armistice we had 1,400 miles of rail- 
 roads to rebuild and by September the 1st, of this year 
 we had completed 1,250 of the total. We had 1,160 
 bridges, tunnels and viaducts of one sort and another to 
 rebuild, and by September 1, last,, we had already com- 
 pleted 588. Of 670 miles of navigable waterways to be 
 repaired we had already finished 450 miles at that same 
 
THE INTERNATIONAL TRADE CONFERENCE 179 
 
 date. Out of 550,000 buildings destroyed or damaged 
 by the war, we had repaired 60,000 by the beginning of 
 last month, put up over 16,000 huts and begun the con- 
 struction of 60,000 new homes. We have cleaned up 
 shells over an area of 1,500 square miles, and have filled 
 in nearly 80 million cubic yards of trenches. We have 
 sent back 991,000 refugees, opened 5,000 schools and re- 
 organized 3,872 civic communities. 
 
 That, gentlemen, is the reply to those who believe that 
 we are standing with folded arms. 
 
 Some of our American friends have left France under 
 the impression that we had a backward administration 
 and that red tape was entangling us. We recognize what- 
 ever truth may lie in those contentions. 
 
 I wish we could review together the program of the 
 many political leagues which have been founded since the 
 soldiers returned home. Everyone of them demands the 
 administrative reform of France,, the upsetting of old 
 routine, the application of efficiency to Government mat- 
 ters, the rational exploitation of our national resources, a 
 harmonization of legislative and executive powers, the 
 decentralization and economic autonomy of the great 
 regional interests of the country, the carrying out of a 
 vast plan of public works, more air, more freedom, and 
 more initiative. Such are, from one end to the other of 
 the country demands of the new generation. All these 
 schemes, which have been slumbering for such a long 
 time, have been stirred up by the war. You can hardly 
 realize how keen these young men are to stretch out and 
 play their part in commercial and industrial business, 
 where once upon a time they would have been pleased 
 with the sedentary career of an office. So much is this 
 the case that those who consider themselves the trustees 
 of our intellectual traditions have become alarmed about 
 it. Four hundred young demobilized professors have de- 
 clined to offer to resume their teaching, and have taken 
 situations in manufacturing or commercial business. 
 
 It can be safely said that France desires strongly and 
 earnestly to start a new life. We are going to see that 
 
180 THE INTERNATIONAL TRADE CONFERENCE 
 
 desire expressed in the coming elections, and the new 
 Parliament will have to carry it out. The variety of 
 novel opinions expressed, and even social manifestations 
 that we have witnessed, must be taken as proof of the 
 overwhelming activity of a nation eager to reshape her- 
 self, to produce, to hold her place and look toward a new 
 ideal. 
 
 At the opening of the Committee meetings here, the 
 distinguished Chairman, Mr. A. C. Bedford, asked 
 whether Bolshevism were threatening us and whether 
 labor troubles were likely to compromise the safety and 
 security of our business and commercial relations. I can 
 reassure him in that respect. It is true we have not been 
 free of labor troubles. We experienced them even before 
 many others did, and at a time when we were particu- 
 larly sensitive to them. But perhaps also that is the 
 reason why today we are further ahead than the others 
 are. The crisis was reached between last May and July, 
 but common sense and moderation prevailed. The 
 Union of Steel Workers, and then our General Labor 
 Federation assembled in Lyons in September, have both 
 repudiated the agitators who sought to lead them on the 
 road to Bolshevism. The International strike, called for 
 the 21st of July, failed completely and it failed in France 
 because the workers refused to follow the extremists. 
 
 Those same men, who devoted all their energy without 
 stint to the work of the war, without regard to the hour 
 or the day or the night, never taking into account the 
 abnormal effort, ignorant during these four years of the 
 meaning of rest, have merely changed the aim of their 
 efforts. They are not going to rest until they are dead, 
 if necessary, to save France in Peace as they helped to 
 save her in War. 
 
 Gentlemen,, you can have confidence in us. We are 
 able to live. We desire to live. Help us to get out as 
 quickly as possible from the difficult period we are now 
 passing through. Help us to re-establish our commer- 
 cial balance and to restore the normal exchange rate of 
 
THE INTERNATIONAL TRADE CONFERENCE 181 
 
 our money, and you will see the old tree of France bring- 
 ing forth new blossoms and new fruit. 
 
 The Chairman: Ladies and gentlemen, I am sure I 
 have voiced your feelings when I extend our very cordial 
 thanks and appreciation for the splendid presentation 
 which has been given us by M. Schneider. 
 
 Address of Mr. Dwight W. Morrow 
 
 of J. P. Morgan & Company, Neiv York, 
 on the Problems of International Credits. 
 
 The Chairman: We have one other speaker this even- 
 ing, who represents one of the great banking firms in the 
 United States. Early in the war, in Europe, before the 
 United States had gotten into the war, the house of J. P. 
 Morgan & Company became known to every newspaper 
 reader in the United States as the outstanding financial 
 institution which was assisting in every proper way in 
 the financing of our European Allies not yet our Al- 
 lies and of purchasing in this country in hitherto un- 
 known quantities vast amounts of raw materials required 
 by them. The work which this house did stands out, 
 I think, as an example of what tremendous service, and 
 unselfish service, too, can be rendered by a large inter- 
 national banking house in such circumstances. With re- 
 gard to purchases in this country, of course, you are all 
 familiar with the work done by Mr. Stetinnius. All of the 
 members of this firm did splendid work. The gentleman 
 who will address you this evening was in Europe during 
 1918 as a member of the Allied Transport Council, and 
 assisted in the performance of one of the most difficult 
 jobs of the entire war. It gives me great pleasure to 
 introduce to you as our next speaker Mr. Dwight W. 
 Morrow. 
 
 Mr. Morrow spoke as follows: 
 
 The problem of international credits is now being dis- 
 cussed by people in all lines of activity by government 
 officials, by legislators, by leaders of labor, by economists, 
 
182 THE INTERNATIONAL TRADE CONFERENCE 
 
 by merchants, by manufacturers and bankers. The world 
 has gone through four years of unprecedented destruc- 
 tion. It is now getting its bearings for a fresh start. 
 Many men have many answers to the pressing problems 
 of international trade. Many of the facts which under- 
 lie the problem are still obscure. Many of the facts are 
 complex and cannot be grasped quickly. There are some 
 facts, however, that are clear. Perhaps it would be well 
 to start with those facts. It will be easier to develop 
 those things upon which we disagree if we first grasp the 
 facts upon which all must agree. 
 
 The merchandise exports from the United States to all 
 countries, as shown by the official publications of the Gov- 
 ernment, for the past ten fiscal years that is, the years 
 ended June 30, were as follows : 
 
 1910 $1,744,984,720 
 
 1911 2,049,320,199 
 
 1912 2,204,322,409 
 
 1913 2,465,884,149 
 
 1914 2,364,579,148 
 
 1915 2,768,589,340 
 
 1916 4,333,658,865 
 
 1917 6,290,048,394 
 
 1918 5,919,711,371 
 
 1919 7,225,084,257 
 
 It is not, however, the gross amount of our exports, but 
 the export balance which vitally concerns those who are 
 studying the problem of international credits. By the 
 export balance, we mean the excess of exports over im- 
 ports. The figures for each of the same fiscal years are 
 as follows : 
 
 1910 ; $ 188,037,290 
 
 1911 : 522,094,094 
 
 1912 551,057,47& 
 
 1913 652,875,915 
 
 1914 470,653,491 
 
 1915 1,094,419,600 
 
 1916 : 2,135,599,375 
 
 1917 3,630,693,209 
 
 1918 - 2,974,055,968 
 
 1919 4,129,207,675 
 
THE INTERNATIONAL TRADE CONFERENCE 183 
 
 These figures represent the balance of merchandise ex- 
 ports only. In forming any conclusions as to the balance 
 of trade we must, however, reckon also with what are 
 called the invisible items. Our merchandise exports 
 from this country might be greatly in excess of our mer- 
 chandise imports and there might still be no necessity for 
 foreign countries to ship gold to us. The debt to us 
 created by such merchandise excess might be offset by 
 the interest and dividends on American securities held 
 in foreign countries, by the payment of the principal of 
 maturing indebtedness, by the repurchase from foreign- 
 ers of American securities, by the expenditures of Ameri- 
 can tourists in foreign countries, by the payment of 
 freight charges to foreign ship owners, by the remit- 
 tances of foreigners resident in the United States to for- 
 eign countries, and by other similar items. The funda- 
 mental fact remains, however, that when all of the items 
 visible and invisible are taken into account the bal- 
 ance must be paid in gold or its payment must be post- 
 poned by the extension of credit. 
 
 The history of the last five years illustrates very clearly 
 the relation of the export balance to international credits. 
 The excess of merchandise exports from the United 
 States over imports into the United States from July 1, 
 1914 to June 30, 1919, amounted approximately to $13,- 
 964,000,000. We know that during the same period there 
 were also net exports from the United States of about 
 $382,000,000 of silver. This made an export balance in 
 five years of the enormous total of $14,346,000,000. How 
 was it settled ? Approximately $994,000,000 was paid by 
 net imports of gold. Approximately $11.702.000,000 
 was covered by credits. Of this amount $9,102,000,000 
 was loaned by the United States Government to foreign 
 governments and approximately $2,600,000,000 was 
 loaned by the people of the United States to foreign gov- 
 ernments or to private enterprises abroad. This leaves 
 unaccounted for approximately $1,650,000,000 as the 
 amount apparently settled by invisible items. I use the 
 word "apparently" because I think the invisible items in 
 
184 THE INTERNATIONAL TRADE CONFERENCE 
 
 those four years amounted to much more than $1,650,- 
 000,000. For we must remember that the official reports 
 of our exports do not include exports on Government 
 account. During the period of our participation in the 
 war our Government exported great quantities of goods 
 not only for its own use but also for sale to its Allies. 
 If these unrecorded merchandise exports were added to 
 the recorded exports, the net result would be that the 
 balance that must have been settled by invisible items 
 would be greater than I have indicated, by the amount of 
 our Government's exports sold to its Allies. 
 
 Different men with different outlooks upon life will 
 draw varying conclusions from the foregoing facts. But 
 there are some conclusions upon which I think most of 
 us will be in substantial agreement. Surely no one be- 
 lieves that we can continue indefinitely piling up an ex- 
 port balance of $4,000,000,000 a year. Yet it is a fact, 
 that with the war over, the excess of exports over im- 
 ports for the first eight months of the current calendar 
 year was $3,012,000,000 as compared with $1,947,000,000 
 for the same period in 1918. These are startling figures ! 
 They indicate that the first demand upon America for 
 the goods required by a world endeavoring to put itself 
 back upon a peace footing is fully as great as the demand 
 which the war itself made. I believe, however, that the 
 turn will soon come, if it has not already come. I believe 
 that the exports from the United States to Europe must 
 gradually diminish and that the imports into this country 
 from Europe must gradually increase. Neither of these 
 results should be deplored. The world will be better off 
 when the wheat fields of Rumania and of Russia are 
 made productive again for the people of Europe, and this 
 country will be better off as a part of that improved 
 world. Moreover, at a time when we are complaining 
 of the high cost of living we should welcome an increase 
 in our imports of those things that Europe can make for 
 us better than we can make for ourselves. 
 
 The net result of the gradual decrease in our exports 
 and the gradual increase in our imports must be that the 
 
THE INTERNATIONAL TRADE CONFERENCE 185 
 
 balance of trade in favor of this country will gradually 
 decrease. It is of importance to America as well as to 
 Europe that this decrease should come gradually rather 
 than abruptly. At the present time it is vital to the peo- 
 ple abroad to secure foodstuffs and other necessities from 
 America. It is also most important to America to fur- 
 nish those necessities unless we are prepared for a violent 
 change in industrial conditions. But if the decrease in 
 our export balance is to be gradual and not abrupt, it 
 means that for some time to come there will be a sub- 
 stantial export balance to be settled in gold or covered 
 by foreign credits. We can rely upon further importation 
 of gold only to a limited extent. That is why we are all 
 studying this problem of international credits. 
 
 I hesitate even to guess as to the total amounts of for- 
 eign credits that will be required in the coming months. 
 We know that the imports from Europe are now increas- 
 ing from month to month, rising from $21,800,000 in 
 January of this year to $66,900,000 in August. In no one 
 of these months, however, have our exports to Europe 
 been less than $370,000,000 and in no month has the 
 excess of exports over imports been less than $340,000,- 
 000. The excess of our exports over imports taking into 
 account all countries of the world, amounted in July of 
 the present year, to $226,000,000 and in August to $339,- 
 000,000. Our exports to Europe, however, exceeded 
 our imports from Europe in July by $347,000,000 and in 
 August by $350,000,000. If we assume that Europe can 
 reduce her purchases from the United States progres- 
 sively by $10,000,000 each month and can also increase 
 her sales to the United States progressively by $10,000,- 
 000 each month, the merchandise export balance in favor 
 of the United States for the fiscal year ending June 30, 
 1920, will amount approximately to $3,100,000,000. 
 
 How will this balance be settled ? No one can say what 
 amount of securities still held abroad will be sold in our 
 markets in the months to come, or how much money will 
 be remitted by people in the United States to people in 
 Europe, or how much of the indemnities payable by Ger- 
 
186 THE INTERNATIONAL TRADE CONFERENCE 
 
 many and Austria will be available for England, France, 
 Italy, Belgium and other European countries to use in the 
 United States. Nor can anyone tell how much the invisi- 
 ble items operating in favor of the European countries 
 will be offset by like invisible items operating in favor of 
 the United States. Let us assume, however, that the net 
 invisible items in favor of Europe will amount to $1,100,- 
 000,000 by next summer. This would leave $2,000,000,- 
 000 to be settled during the present fiscal year by imports 
 of gold or the extension of credit. By the extension of 
 credit I mean not only direct loans to European countries, 
 but also permanent investments in the property or busi- 
 ness enterprises of foreign countries. The low rates of 
 exchange make it profitable for foreign business men 
 to sell interests in their business to American capital and 
 likewise profitable for owners of American capital to make 
 investments in foreign businesses. Investments of this 
 kind in ordinary times in small amounts might be classed 
 with the invisible items. For the purpose of this dis- 
 cussion I am considering it an extension of credit, 
 whether the party making the investment abroad takes 
 for his investment an obligation paying a fixed rate of 
 interest or an interest in a business which will pay a rate 
 of return dependent upon the profits. 
 
 Lest I may be misunderstood, I want to say again that 
 this estimate of $2,000,000,000 can be at best but a guess. 
 The one thing I want to make clear is that it will take a 
 substantial reduction in our exports and a substantial in- 
 crease in our imports to bring the amount of our mer- 
 chandise export balance with Europe down to $3,100,000,- 
 000 and that it will take a substantial amount of invisible 
 items to bring the final balance which must be settled by 
 imports of gold or the extension of credit down to $2,000,- 
 000,000 for the fiscal year ending June 30, 1920. As 
 exchange rates drop there will be more and more of a 
 tendency for the foreign countries to compress their de- 
 mands upon American markets. The result may be to 
 accelerate the decrease in our exports and accelerate the 
 increase in our imports, thus reducing the amount below 
 
THE INTERNATIONAL TRADE CONFERENCE 187 
 
 $2,000,000,000. It should be noted also, that our mer- 
 chandise trade balance is much more favorable to us with 
 Europe alone than it is with all the countries of the world. 
 In other words, while we are creating a credit balance 
 against Europe for goods exported to her, we are, on the 
 other hand, going in debt to the rest of the world for 
 goods imported from it. This debt of ours to the rest of 
 the world may well be availed of by Europe in settling a 
 portion of her indebtedness to us. 
 
 So far I have dealt with the amount of credits that this 
 country might reasonably be called upon to furnish to 
 Europe. Now, how are these credits in practice fur- 
 nished? The simplest way for a foreign credit to be 
 extended would be for the individual seller in this coun- 
 try to give credit to the individual buyer abroad. The 
 manufacturer who is sending his goods abroad might 
 take the promise of his customer to pay for those articles 
 at some future date instead of demanding cash. Why 
 does he not do it ? For the very simple reason that he is 
 like every other member of the community. He has 
 available for investment only his profits or savings 
 After he has invested his own savings in a foreign credit 
 he must look about for some other person who has sav- 
 ings and get that person to buy from him his foreign 
 customer's promises to pay. If he cannot find such a 
 person he must quit selling to foreigners. 
 
 It is most difficult, however, for a manufacturer to find 
 the person with savings. The manufacturer cannot stop 
 running his plant to look for the man with savings. The 
 man with savings may live very far from the door of the 
 manufacturer. In fact, the man with savings lives not 
 only in the large cities but in a thousand little hamlets 
 and upon thousands of farms all over the United States. 
 The manufacturer, therefore, needs the co-operation of 
 an investment banker perhaps of a thousand bankers 
 whom he has never seen and whose names he does not 
 even know. It is the function of the investment banker 
 to find this man with savings and to find the people who 
 desire and are deserving of credit, and to get the former 
 
188 THE INTERNATIONAL TRADE CONFERENCE 
 
 to extend the credit to the latter. In a sense, the inter- 
 national bankers gather up a thousand little rivulets of 
 capital into one large stream and thereby arrange for the 
 postponement of the settlement of a trade balance. 
 
 Can the people of this country invest $2,000,000,000 in 
 foreign obligations and properties in a single year ? That, 
 to my mind, involves two distinct questions: First, will 
 the people of this country have that much capital to lend ? 
 Second, will they be able to find people in Europe to 
 whom they are willing to lend it? 
 
 The first question is fundamentally a question of our 
 own ability to produce and to save. The central figure in 
 that part of the problem is not the manufacturer as such, 
 nor the producer of raw material as such, nor the banker 
 as such, but the man who saves. I should like to suggest 
 the bearing of the high cost of living upon this whole 
 problem of savings. I should like to touch upon the im- 
 portant question as to what difference, if any, the re- 
 markable change in our international position should 
 make in our tariff policy. But this is not the time or 
 place to go into those questions. The one fundamental 
 thought that we must hold on to is that while there will 
 be many minor actors in the great enterprise of the 
 restoration of Europe, the indispensable man in that 
 enterprise, the hero of that enterprise, will be the plain, 
 old-fashioned man who spends less than he produces and 
 thus creates the fund without which all of the plans for 
 restoration of Europe must come to naught. He may be 
 rich or he may be poor. He may be a banker, or a mer- 
 chant, or a school teacher,, or a wage-earner. But he must 
 be a saver. For it will be true in the future, as it has 
 been in the past, that there is only one way for the cap- 
 ital fund to increase, and that is by the accumulation of 
 savings. We are talking about very big figures when we 
 speak of $2,000,000,000. But we are talking also about a 
 very big country with millions of strong, energetic, reso- 
 lute people. Fortunately, too, those people have had some 
 education in saving in the past two years. If the average 
 savings of one hundred million people of the United 
 
THE INTERNATIONAL TRADE CONFERENCE 189 
 
 States should be twenty cents a day for three hundred 
 days a year, the capital fund of the United States avail- 
 able for investment would be increased by $6,000,000,000. 
 A large portion of that new capital would be required for 
 necessary additions to capital employed in the United 
 States, but much of the balance would be available for 
 Europe if conditions over there are such as to attract 
 capital. I do not believe that there is any doubt that if 
 the American people want to do it if they go on saving 
 instead of thinking that the necessity for saving passed 
 by when the armistice was signed they can produce and 
 save this fresh capital that is needed. 
 
 The second fundamental question is whether this old- 
 fashioned man who has saved money can find people to 
 whom he is willing to lend it, and that is not nearly as 
 simple a matter as it seems. We have heard a great deal 
 about bankrupt Europe. We have heard that there is no 
 way to get credit for European countries except through 
 receivers' certificates. We have heard that Europe has 
 been wounded so badly that she cannot recover in a hun- 
 dred years. May I be permitted to say that such talk is 
 not encouraging to the plain individual who has saved 
 something, and who is looking for somebody to whom he 
 is willing to lend those savings ? That old-fashioned man 
 has saved some money for his wife and his children. 
 Perhaps he expects to send his boy or his girl to school or 
 to college. He wants to get interest upon his money while 
 it is away from him, and he wants to get the principal 
 back some day. There is no use fooling either our dis- 
 tinguished guests or ourselves. The people who save 
 money in America are not going to loan it to Europe if 
 they believe that Europe cannot pay it back. The people 
 who lend money to Europe are going to lend that money 
 because they believe the borrower will pay it back; they 
 are going to lend money to Europe because they believe in 
 Europe's strength. One of the most important questions 
 for this conference, and for similar conferences, is to 
 determine whether or not that belief is warranted. I 
 know that I speak for all of you when I say that the in- 
 
190 THE INTERNATIONAL TRADE CONFERENCE 
 
 spiring thing at these meetings has been the presen- 
 tation of the situation in Europe by the courageous rep- 
 resentatives of Belgium and of Italy and of France and 
 of Great Britain. The representatives of those great 
 countries have not whined about their losses. They have 
 told us proudly of their countries' strength. They have 
 shown us that there are great elements of strength 
 abroad, elements of strength which the wisest people over 
 there now appreciate and which, sooner or later, will be 
 fully appreciated by us. 
 
 We see the war today as a great destruction of life and 
 property, as an enormous sacrifice of the material accum- 
 ulations of centuries, as an even greater sacrifice of young 
 lives that held the promise of the future. Appalled as we 
 are by this enormous destruction, are we not all apt to 
 forget that with nations, as with individuals, it is not the 
 accumulations of the past which determine future or even 
 present prosperity so much as it is the moral and eco- 
 nomic traits of the producers their willingness to work, 
 their willingness to do without something today in order 
 that their children may have something tomorrow. We 
 cannot certainly know the future, but we are at fault if 
 we do not bring to bear upon the present all of the les- 
 sons that the past has given us. At this time, when so 
 many are talking lightly about Europe never recover- 
 ing herself, is it not well w r orth while for a groping world 
 to recall the many instances in history of recovery from 
 the ravages of war? 
 
 Three hundred years ago, the little province of Holland 
 was being racked by a war which had already lasted for 
 more than a lifetime. And the rigor with which Spain 
 punished Holland has not yet been matched. For almost 
 three generations, with a few short truces, cities were 
 sacked and wealth confiscated, men butchered and women 
 violated. And yet it seems as though the ingenuity of 
 Spanish cruelty had but released in the Dutch people a 
 courage and initiative which no obstacle could stop. 
 With a new boldness and energy, Holland's commercial 
 men spread themselves over the whole world, laying the 
 
THE INTERNATIONAL TRADE CONFERENCE 191 
 
 firm foundation for that commercial position which is to 
 this day the great characteristic of the nation. In the 
 year 1913, the last calendar year before the present war, 
 Holland's foreign trade amounted to about $3,000,000,- 
 000. Holland in area not nearly so large as the State of 
 Missouri, in population smaller than New England had 
 a foreign commerce in 1913 equal to about 55% of that 
 of Germany, and to about 70% of that of the whole 
 United States ! 
 
 England battled with Napoleon for more than twenty 
 years. It has been estimated that by 1815 the taxes had 
 risen to more than 17% of the entire national income. 
 But the long war was hardly over before the growth of 
 England's industry at home and her commerce abroad had 
 made her easily the leading industrial and commercial 
 nation of the world, meeting the interest charge upon a 
 mountain of new debt more easily than she had met the 
 charge upon the old. 
 
 France in 1871 lay at the feet of Prussia. Stripped of 
 a substantial portion of her richest territory, burdened 
 with a crushing indemnity, torn by the internal revolution 
 which followed the humiliating terms of peace, one might 
 well have despaired of France. But in less than three 
 years the war indemnity had been paid ; the foreign trade 
 of France in 1873 was 20% larger than in 1869; and the 
 fighting generation had not passed away before the 
 thrifty French peasant was helping you build your west- 
 ern railroads ! 
 
 There are no exact parallels in history. The growth of 
 Dutch commerce in the 16th and 17th centuries was pro- 
 foundly affected by the new world trade routes which 
 took away from the Italian cities the strategic position 
 which they had so long held. The voyage of the Portu- 
 guese navigator, Vasco da Gama, around the Cape of Good 
 Hope carried in its consequences more permanent damage 
 to the commerce of Venice than all the Spanish invasions 
 brought to Holland. England's commercial supremacy 
 after the Napoleonic Wars was due in large measure to 
 the industrial revolution wrought by new inventions. 
 
192 THE INTERNATIONAL TRADE CONFERENCE 
 
 Give any nation the inventive genius of a Watts, a Har- 
 greave or an Arkwright and it may well throw in the 
 scrap-heap much of its material capital. But, although 
 new circumstances may have made the new opportunities, 
 the fundamental fact remains that those opportunities 
 were grasped by a people resourceful and alert, perhaps 
 more resourceful and alert by reason of suffering and 
 sacrifice. Material losses may be outweighed by gains in 
 character and capacity. 
 
 Do not misunderstand me; I am not suggesting that 
 wars are ever profitable to a people. It is hard to con- 
 ceive of any result reached by any war which could not 
 have been reached at enormously less cost if men them- 
 selves only understood each other a little better. The 
 tragedy of the human race has been the costliness of 
 progress. But we may be permitted to recall to ourselves 
 in times like these that history has furnished many in- 
 stances of great burdens upon a nation calling forth great 
 powers. And we must not forget that in the future, as 
 in the past, character and capacity and skill in organiza- 
 tion will be the qualities by which civilized peoples will 
 judge the worth of individuals and of nations. 
 
 Have the people of Europe that character and capacity 
 and skill in organization which will attract our increasing 
 supplies of accumulated savings ? Can any one of us who 
 is familiar with their whole history doubt it? Can any 
 one of us who has watched their conduct during the more 
 than four years of war doubt it ? Can any one of us who 
 has met their courageous representatives at this confer- 
 ence doubt it? Credit is not based primarily upon the 
 accumulations of the past. Credit is not based primarily 
 upon the amount of property that one has inherited or 
 saved. Credit always has depended, and credit always 
 must depend, upon the moral and economic qualities of 
 the borrower, upon his willingness to work, upon his 
 ability to produce and to save. You men represent the 
 Chambers of Commerce of this great country. You have 
 come from all over the United States to attend this con- 
 ference. I ask any one of you to look back ten or twenty 
 
THE INTERNATIONAL TRADE CONFERENCE 193 
 
 years in the history of your own city. Are the men 
 who are strong in your own communities today necessa- 
 rily the people who had property ten or twenty years 
 ago? In almost every community in this land the 
 creative men today are the men who had ideas ten or 
 twenty years ago, the men who had courage, who had 
 character, who had capacity, who had thrift! It is with 
 nations much as it is with individuals. We have seen 
 the nations of Europe go through four years of war. We 
 have seen them go down into the valley without giving 
 way to despair. We have seen their character and their 
 steadfastness bring them to a great triumph. I tell you 
 that if credit is a thing to be extended to creditable peo- 
 ple, then credit will be extended to the nations of Europe. 
 
 Take the little country of Belgium. Is there any man 
 who thinks of credit in terms of character who would 
 not rank Belgium's credit as high? The man who incurs 
 a debt makes a promise. He promises to pay back the 
 amount that he has borrowed. The wise creditor always 
 puts his reliance primarily upon that promise. I need 
 not tell you business men that a lender has more chance 
 of getting back his money from a man of small property 
 who measures and keeps his promises than from a man 
 of ample property who breaks his promises. No sensible 
 person lends money for the sake of later enforcing col- 
 lection. We do not willingly buy law suits. We put our 
 trust in the capacity and character of the promisor. 
 Now, we all know that five years ago there came to Bel- 
 gium a great test. She was required to choose whether 
 she would keep or break her promise. And Belgium kept 
 her promise although it meant the destruction of her 
 property, although it meant the burning of her cities, 
 although it meant the slaughter of her sons and daugh- 
 ters. Does anybody want a better promisor than Bel- 
 gium? 
 
 Take Italy. Those of you who heard Prof. Attolico at 
 the committee meeting yesterday and at the public meet- 
 ing this afternoon, must appreciate how much courage 
 and vitality there is in Italy. I had the very great privi- 
 
194 THE INTERNATIONAL TRADE CONFERENCE 
 
 lege of working with Prof. Attolico on the Allied Mari- 
 time Transport Council for one year during the war. 
 Only those who saw intimately the economic side of this 
 war will ever appreciate the discouragements under which 
 the Italian nation had to fight from the beginning to the 
 end of the war. They were short of many of those essen- 
 tial things without which people cannot fight. They were 
 using about 1,000,000 tons of coal a month in times of 
 peace; and yet there were allotted to them during the 
 war for their great munition plants, for their aeroplane 
 and automobile factories, for the movement of their 
 troops backward and forward across the land, for keep- 
 ing their people warm something like 600,000 tons of 
 coal a month, and they did not get even that much dur- 
 ing the last months of the war. There were many times 
 during this war when Italy was within a few days of 
 being entirely without coal. And then there came a time 
 when the very heart of Italy was torn open at Caper- 
 etto. But Italy did not quit. Italy did not give up. 
 Italy kept her courage. And almost unaided she won 
 those overwhelming victories over Austria at the end. It 
 is no easy task that now confronts Italy. It is a very 
 hard task. But for five years we have watched Italy do- 
 ing the hard thing. We have seen her triumph over dif- 
 ficulties much greater than those which now confront 
 her. There will be perplexing days ahead of her. But 
 if her difficulties are great, so also are her opportunities. 
 She stands today on the threshhold of a new life. For the 
 first time in modern history she has gathered her chil- 
 dren within her national borders. The new Italy should 
 be greater and stronger than Italy has ever been in the 
 past. 
 
 Take France. I know that there are people who come 
 back from abroad and tell us that France is ruined, that 
 she will not get back on her feet in a generation. I know 
 that there are people who say that France is idle, that 
 France has quit working, that France is shell-shocked. 
 Such people have looked at that great scar running from 
 the North Sea to the Vosges and have thought they were 
 
THE INTERNATIONAL TRADE CONFERENCE 195 
 
 seeing all of France. They have seen the French soldier 
 discharged from the army with a few hundred francs as 
 his discharge pay, a soldier who has been fighting for 
 four years, whose family perhaps was in the occupied 
 area they have seen that soldier go to his home on a 
 month's holiday; and they tell us that France has quit 
 working. I wish such people might have sat here this 
 evening and listened to that admirable paper read by 
 M. Schneider. I wish they could get the picture of the 
 French peasant working all over France. I wish they 
 could get the picture of the new savings accounts that 
 have been started, of the schools that have been opened, 
 of the railroads that have been rebuilt, of the ditches 
 that have been filled up, of the barbed wire that has been 
 removed. The cataclysm of the war struck France with 
 its full force, and yet we hear from M. Schneider how 
 much has been done by the courageous French people in 
 a short twelve months. The French people may very 
 naturally be hesitant until they get their facts and are 
 sure that they are moving in the right direction. But, 
 shell-shocked ? No ! France is strong and alert and vig- 
 orous and ready to go ahead. 
 
 What need one say about the credit of Great Britain? 
 I have been told that it is not easy to talk to an American 
 audience about Britain after one has spoken of Belgium 
 and Italy and France. Old differences and prejudices are 
 not yet entirely removed. But I think that Admiral Sims 
 is correct when he tells us that one reason why we do not 
 always get along with England is that we are so very 
 much alike. In one of his Liberty Loan speeches the 
 Admiral remarked, with his dry humor, that an English- 
 man generally goes into a drawingroom as though he 
 owned it, and that an American goes into the same room 
 as though he didn't care who owned it. Perhaps it is true 
 that both are lacking in that delicate appreciation of the 
 sensibilities of others which is so marked a characteristic 
 of the French nation and which has made that nation for 
 generations the interpreter for the peoples of the earth. 
 But, surely it is not necessary to tell business men what 
 
196 THE INTERNATIONAL TRADE CONFERENCE 
 
 those tenacious British people did in this war. I am not 
 going to speak of the great contributions of their fighters 
 on the sea and on the land and in the air. I am thinking 
 tonight rather of the dull, prosaic things the things that 
 do not stir the imagination as do the achievements of the 
 fighting men. I am thinking of the efficient body of civil 
 servants who keep on doing the work of the British Em- 
 pire through all changes of ministries. When we get far 
 enough away from this war we will begin to appreciate 
 the great contribution along economic lines that the 
 British Empire made to the Allied forces from the begin- 
 ning to the end of the war. For two years and a half 
 Great Britain was the principal reservoir of economic 
 strength, cheerfully doing without things in order that 
 she and her Allies might have the means with which to 
 fight. And after America entered the war she shared 
 with us the great burden of furnishing the supplies and 
 the credit. In her unpreparedness she blundered as we 
 all have blundered, but I think it is only fair to say that 
 she has excelled us all in proclaiming her own blunders 
 to the world. And with that doggedness which we asso- 
 ciate with the British, she went straight through to the 
 end, more or less indifferent to praise or to blame. I do 
 not underestimate in the slightest degree the great prob- 
 lems of re-adjustment that face the British Empire now 
 that peace has come. True to her tradition of free 
 speech, Britain is still proclaiming her blunders to the 
 whole world. But let us try to keep our perspective. For 
 more than a thousand years that nation has gone on, 
 emerging from her difficulties by her rugged common 
 sense. If the past tells us anything it is that Great 
 Britain's credit is good; if the past has taught us any- 
 thing it is that Great Britain will measure her promises 
 carefully and keep them scrupulously. 
 
 Our distinguished guests have come to us, not as sup- 
 pliants asking for credit because of their weakness, but 
 standing erect, asking for credit because of their 
 strength. No man can tell how they are going to get 
 credits that they seek. No man either in America or in 
 
THE INTERNATIONAL TRADE CONFERENCE 197 
 
 Europe can tell how much their apparent needs will be 
 compressed by their own energy and ingenuity and thrift 
 as the war recedes further and further into the back- 
 ground. No man knew in April or May of last year how 
 America was ever going to send an army of 2,000,000 
 men to Europe, but somehow or other, with the help of 
 our Allies, we were landing ten thousand men a day in 
 France when the armistice was signed. The energy and 
 capacity that was released during the war must be di- 
 rected to the performance of the great task that now con- 
 fronts us all. The depleted capital of the nations of 
 Europe will be gradually restored by their own fresh 
 savings, and what is equally essential those savings 
 will be protected by their own free governments. The 
 same high qualities that will create and protect their own 
 savings will attract and protect the accumulated savings 
 of America. The stable governments of Europe will get 
 the credits that they need, not because of their weakness 
 but because of their strength. Their representatives 
 come to us proud, rightly proud, of their past, and con- 
 fident, rightly confident, of their future. 
 
 MORNING SESSION. 
 FRIDAY, OCTOBER 24, 10 O'CLOCK. 
 
 The meeting was opened by Mr. R. Goodwyn Rhett, 
 honorary Vice President of the Chamber of Commerce 
 of the United States, and after the reading of formal com- 
 mittee reports (printed elsewhere) he said: 
 
 Gentlemen of the Conference: A little over two years 
 ago in September, 1918, the Chamber of Commerce of 
 the United States gathered together in Atlantic City be- 
 tween 3,000 and 4,000 American business men for the 
 purpose of giving them an opportunity to express their 
 sentiments and their purposes with reference to the war 
 
198 THE INTERNATIONAL TRADE CONFERENCE 
 
 in which we were then engaged, and to provide the ma- 
 chinery by which those purposes might best be carried 
 into effect. Some of you will remember that convention 
 and the splendid sentiment which emanated from it, and 
 particularly that splendid creed, which was the first re- 
 port of the committee on resolutions, in which the busi- 
 ness men of the country pledged themselves, dedicated 
 their facilities, their industries, all that they possessed, 
 all that they could develop, to the end that the war should 
 proceed until Prussian autocracy and imperial autocracy 
 should be driven from the face of the earth. Two years 
 have since elapsed, and how much has transpired ! 
 Within a year after that time the war had ended and 
 those purposes had been fulfilled, and how splendid a 
 part the business men took in it, and how proud they 
 may be of their contribution toward the aid which this 
 government gave to the Allies in the winning of the 
 war. Now,, upon the signing of the armistice many of 
 our people thought we ought to withdraw our forces, de- 
 mobilize and attend to our own affairs and let Europe 
 attend to her affairs. Oh, how little did they realize what 
 gas and electricity and modern invention had done to 
 bring the word together, that we had become one great 
 family and that no part of the world could run its own 
 affairs and not affect the affairs of other parts of the 
 world. 
 
 It soon began to appear that while we had a splendid 
 democracy, that danger which threatened from without 
 had been overcome, there was springing up another 
 danger within the democracy that might be the tyranny 
 of the proletariat and Bolshevism fed and nourished upon 
 the miseries of men, miseries based upon their wants 
 which required quick remedy. We soon began to realize 
 that until the people of Europe could be put to work, 
 until their industries could be restored and they should 
 have less time for talking and thinking of these vagaries 
 we would not have made the world safe for democracy. 
 We soon learned that we bore a very important part in 
 the performance of that duty, that Europe needed from 
 
THE INTERNATIONAL TRADE CONFERENCE 199 
 
 us supplies which she could not get elsewhere, that there 
 were serious problems arising in connection with that, 
 and the Chamber of Commerce again felt that the time 
 had arisen when they needed another gathering here at 
 Atlantic City. America was producing much more than 
 she could consume; she was absolutely dependent upon 
 her foreign trade and her foreign trade was now threat- 
 ened, and a crisis had arisen which made it necessary for 
 the business men of this country to understand the con- 
 ditions abroad ; they could only be understood by having 
 men sent from abroad who possessed the confidence of 
 their governments in their business interests, and who 
 could come and tell us face to face just what those con- 
 ditions and what those needs were and how we could best 
 supply them. So, again, the Chamber of Commerce has 
 assembled here the business men, and we have brought a 
 splendid delegation from each of these four countries, 
 and they have met around the tables discussing their 
 needs, questioning and cross-questioning until now we 
 believe we have a firm conviction as to just what those 
 conditions are and just what it will be necessary to sup- 
 ply them. 
 
 But that was not enough. We felt that we should call 
 a great body of business men to hear them. It was not 
 sufficient merely to inform a hundred or two of them 
 on these committees ; after they had discussed these prob- 
 lems with the committees, they should come and present 
 them from the platform, and yesterday we heard from 
 the President of these committees as to the conditions 
 and as to the needs generally, and today is to be given up 
 to the problem of credit and finance. Now, gentlemen, 
 that is the crux of the whole matter, but after all it is 
 only a question as to where these nations are going to get 
 the money to pay for their needs. That means a credit 
 extended over a sufficient period in order to enable them 
 to pay it back without distress to themselves. We have 
 not heard the report of the Committee on Finance and 
 Credit, and I do not know what it will be, but I believe 
 it is hardly a banking question. It is a question of ex- 
 
200 THE INTERNATIONAL TRADE CONFERENCE 
 
 tending credit over a period of years. I believe it will 
 be one which needs the cooperation of the investors, of 
 the people of this country. I hope it will be such, for I 
 think that the people of this country realize that for two 
 and a half years the people of France and Belgium, Eng- 
 land and Italy, fought our battles, sent their men to fight 
 and die for us before we realized that the problem was 
 not a European problem, but a world problem, and that 
 the threat was not to the democracy of Europe but to the 
 democracy of the world; and I believe the American 
 people would welcome the opportunity of expressing 
 their gratitude and paying their obligations if it was 
 given them in any shape in any form, so that they could 
 do so. 
 
 You remember when we were called upon to deny our- 
 selves food because our soldiers and our Allies needed 
 it how splendid was the response; you remember how 
 splendid was the response when we asked the people to 
 cease riding on Sundays in automobiles because gasoline 
 had run short. The American citizens would welcome an 
 opportunity of showing their gratitude, and it will be 
 the best thing for them,, for there is nothing better for 
 them than to keep on teaching them to save, and only 
 by these savings can we make response to those needs of 
 our Allies, and I trust that the report will reveal such a 
 plan, whether it be under that suggested by the Secretary 
 of Commerce yesterday, or by one or more corporations 
 under the Edge bill offering debentures to the people of 
 the country, and that it will give an opportunity to our 
 people to show their gratitude. 
 
 How can we live in prosperity and be happy here hear- 
 ing that those who for two years fought and died for us 
 to a large extent are suffering for the want of our sup- 
 plying a little credit to them upon a security which no 
 one in the world can question? 
 
 Now, gentlemen, we have today the presentation of 
 the finance problem by those in the commissions who 
 have made a study of that question, and we are also hav- 
 ing representatives of this country, in order to present 
 
THE INTERNATIONAL TRADE CONFERENCE 201 
 
 the point of view of this government. That point of view 
 we had yesterday from the Secretary of Commerce, and 
 today we have a representative of the Treasury Depart- 
 ment, a gentleman w r ell known to you all, who was the 
 financial adviser of the American Commission over at 
 the Peace Conference, who is now the Director of Finance 
 for the Government and who comes here today represent- 
 ing the Secretary of the Treasury. I take pleasure in 
 presenting Mr. Norman H. Davis. 
 
 Address of Honorable Norman H. Davis, 
 
 Representing the Secretary of the Treasury, on 
 "International Finance and Trade Recovery." 
 
 This international gathering of representatives of the 
 various branches of industry, trade and finance, is a 
 natural and most welcome result of the close association 
 and cooperation instituted and maintained by the Allied 
 and Associated powers during the war as a necessity for 
 its successful prosecution. Just as it was necessary for 
 each of those governments to place under natural control 
 the private activities, and resources under its jurisdic- 
 tion, it was necessary for the associated powers to coop- 
 erate in the use of such resources under Interallied 
 direction. 
 
 While such governmental control was imperative for 
 the prosecution of the war, we,, at least in the United 
 States, think it most essential for the economic rehabili- 
 tation and industrial development of the world that 
 private initiative and control, which developed such re- 
 sources, should now be restored. During four years of 
 war and now almost a year of negotiations and discus- 
 sions of questions of high international politics incident 
 to a return to a peace basis, men's minds have turned 
 more and more toward governmental action for the so- 
 lution of all problems. This is not unnatural. It has 
 
202 THE INTERNATIONAL TRADE CONFERENCE 
 
 come to be a habit to lean upon the government for 
 everything, since the governments have during this 
 period assumed control of activities formerly under 
 private control. From this habit have come numerous 
 suggested plans of governmental action for the financial 
 and industrial rehabilitation of the world on a compre- 
 hensive scale, such as the indefinite extension of credits 
 for the stabilization of exchange, the issuance of bonds 
 with the joint guarantee of the principal governments to 
 be used for the funding, at a lower interest rate, of out- 
 standing obligations or for the settlement of interna- 
 tional balances; and the more or less permanent control 
 and rationing of exports and imports under combined 
 governmental purchasing agencies. All of these plans 
 are not only impracticable and abnormal, but econom- 
 ically unsound. Business must now be taken out of lead- 
 ing strings, and, while given the moral support and en- 
 couragement of governments, must be left and enabled 
 to follow the ordinary channels of trade by which it was 
 built up. It is therefore encouraging to see the repre- 
 sentatives of the various private interests of the prin- 
 cipal countries of the world gathered together for an 
 exchange of views and information in an endeavor to 
 solve the problems now confronting the world. 
 
 I understand that there is, with minor exceptions of 
 a few food products, no important world shortage of ma- 
 terials and products necessary for social and economic re- 
 quirements, but the principal problem is to find the most 
 practical and economical means for the distribution and 
 use of such supplies. I have great faith in the ability 
 of the industrial and financial leaders of the respective 
 countries to work out,, in cooperation, a satisfactory so- 
 lution and to do their share in restoring the normal chan- 
 nels of production and trade. I am satisfied that those 
 who have led in the industrial development of the world 
 are best fitted to restore normal conditions. Some of 
 those present at this Conference have had considerable 
 experience in international cooperation by representing 
 their governments on various Interallied bodies which 
 
THE INTERNATIONAL TRADE CONFERENCE 203 
 
 have dealt during the war with such problems as food 
 and raw material requirements and the most economical 
 manner of conserving and distributing the supplies requi- 
 site for filling the respective needs. As the governments 
 withdraw from such activities and controls, it is natural 
 that they should revert to private channels, and that 
 representatives such as are gathered here should take 
 advantage of the experience which has been acquired 
 during the war by governmental cooperation and develop 
 plans for private cooperation. 
 
 While the United States Government, and some of the 
 other governments, have withdrawn practically all con- 
 trol over trade and commerce, and while it is, in my 
 opinion, necessary for all of the governments to with- 
 draw from the banking business and as rapidly as pos- 
 sible discontinue the extension of governmental credits, 
 it is nevertheless necessary, during the transition period, 
 for the respective governments to cooperate as much as 
 possible, by taking such measures as may be necessary 
 to restore confidence and set trade and commerce free. 
 
 Even if the governments were willing to continue the 
 war practice of extending credits, it would not solve the 
 difficulties, but would merely prolong and possibly in- 
 crease them. No sound or lasting solution is possible 
 which is not based upon elementary economic principles, 
 and the re-establishment of international trade under 
 private, rather than upon governmental credit. A gov- 
 ernment cannot make loans without funds to loan, and 
 the only way it can obtain those funds is by borrowing 
 or taxing. The governments have now issued about all 
 the loans their investors care to take and more than the 
 savings have at present absorbed, and in the United 
 States we cannot well ask our people to pay increased 
 taxes. 
 
 Since armistice day,, the consistent policy of the Amer- 
 ican Treasury has been, so far as possible, to restore 
 private initiative and remove governmental controls and 
 interferences. It has been the view of the Treasury that 
 only thus can the prompt restoration of healthy economic 
 
204 THE INTERNATIONAL TRADE CONFERENCE 
 
 life be gained. The embargoes on gold and silver and 
 control of foreign exchange have been removed, as well 
 as the voluntary and informal control of call money and 
 the stock exchange loan account. The control exercised 
 by the Capital Issues Committee over capital issues has 
 been discontinued. Thus the financial markets of the 
 United States have been opened to the whole world and 
 all restrictions removed that might have hindered Amer- 
 ica's capital and credit resources, as well as its great gold 
 resources, from being available in aid of the world's com- 
 merce and Europe's need. 
 
 In order to assist toward the general solution of the 
 problem of the financial rehabilitation, and incidentally 
 the improvement of the foreign exchanges, the Secretary 
 of the Treasury has announced a willingness to negoti- 
 ate with the powers for the funding of their demand ob- 
 ligations now held by the United States Treasury into 
 long-time obligations, and for the funding, during the re- 
 construction period, of, say, two or three years, of the 
 interest on such obligations. While such measures as the 
 funding of the interest and of the demand obligations 
 into time obligations, and also loans by the War Finance 
 Corporation to American exporters, will aid most ma- 
 terially in general betterment of the situation, this cannot 
 of itself meet the problem. This must be coincident with 
 similar policies on the part of other governments and 
 also must be supplemented most considerably by private 
 capital and initiative. There are undoubtedly, in the 
 world, sufficient credit facilities to meet all legitimate, 
 sound requirements. This credit, however, will not be 
 available in sufficient quantity until confidence is com- 
 pletely restored. Confidence will be restored when the 
 bankers, merchants, investors and even the masses of the 
 world see that private initiative and efficiency have been 
 recovered, and that the principal governments are dis- 
 posed to cooperate in the maintenance of stability, and 
 the freedom of commerce. 
 
 This is natural and as it should be, because until the 
 world gets back to work and works efficiently and saves, 
 
THE INTERNATIONAL TRADE CONFERENCE 205 
 
 there will not be sufficient products to supply the re- 
 quirements of the world ; but if the world is at work and 
 exchanging services and commodities, prices will de- 
 crease and requirements will be paid for in service and 
 materials. The industries of Europe, of course, cannot 
 be set to work without raw materials, machinery, etc., 
 and, to the extent that these are to be secured from the 
 United States, the problem of financing the restoration 
 of Europe now belongs primarily to our bankers and ex- 
 porters. 
 
 Many people have,, in my judgment, exaggerated the 
 credit requirements of Europe, and underestimated its 
 fundamental financial and economic strength and its 
 powers of recuperation. They have apparently calculated 
 on the gross requirements without taking into proper 
 consideration the offsets by way of foreign sources of in- 
 come and of what will be produced and furnished in part 
 exchange. So recent is our experience of the financial 
 conditions which existed during the war when men 
 were devoting themselves to the business of destruc- 
 tion that we are prone to overlook the vast recuperative 
 power inherent in any country which, though devastated, 
 has not been depopulated, and the people of which have 
 not been starved. 
 
 In making estimates as to Europe's future requirements, 
 there is a tendency to cover a period which is longer than, 
 in my judgment, seems wise. Still under the fear, under- 
 standable in view of past war experiences, of a contin- 
 ued shortage of commodities, there is not sufficient al- 
 lowance made for the fact that the production of wealth 
 is cumulative ; nor for the fact that a considerable period 
 of time is required to expend wisely for the purposes of 
 peace sums of money even approximating those which 
 were lavishly blown into fragments within short periods 
 while the war was in progress. To this state of mind is 
 added the impression that the amount of available capital 
 in the world is limited, and not reproductive, and that 
 estimates must now be made for everything required over 
 a period of years. 
 
206 THE INTERNATIONAL TRADE CONFERENCE 
 
 The effect of these factors is to cause what I consider 
 gross overestimates of European requirements, which, 
 when they find their way into the newspapers through in- 
 terviews with people whose positions entitle their judg- 
 ment to respect, but who, in many cases, are laboring 
 under the same distorted conviction,, owing to the deep 
 impressions made on them by what they have seen in 
 devastated Europe, tend to create an impression in our 
 community of a considerable shortage of commodities 
 and lead to a frame of mind which lends itself to the sup- 
 port of constantly rising prices, and increases the diffi- 
 culties of meeting the situation. 
 
 I believe that the productive capacity of this country 
 heightened as it has been by the war, added to the pro- 
 ductive capacity of Europe, as Europe gradually resumes 
 a normal activity, will suffice to supply what the world 
 requires in credit and commodities as fast as the world 
 is prepared to use them. We are passing, at the mo- 
 ment, through a period where the world is stocking up 
 on commodities. That period once passed, we shall, I 
 think, realize that there are commodities enough to go 
 around, and we shall then run into a period of more nor- 
 mal supply and demand, with more reasonable prices. 
 
 If Europe is not at work, no amount of credit, even if 
 it were obtainable, will suffice, and it would be inadvis- 
 able for Europe herself to obtain an indefinite amount 
 of credit unless she is working and saving in order to 
 provide means for the reimbursement of such credits. It 
 appears to me that this condition is now taking place, 
 that private initiative is reviving,, and that the situation, 
 while we are discussing it, is gradually working itself 
 out. 
 
 The foreign exchange situation, of course, increases 
 the difficulties, but that is a question that cannot be prop- 
 erly settled by abnormal and economically unsound meth- 
 ods. It seems to be the general impression that the pres- 
 ent low rates of sterling, franc and lire exchange have 
 been caused by the sale of exchange for dollars required 
 to cover purchase here. Such is not the case. England, 
 
THE INTERNATIONAL TRADE CONFERENCE 207 
 
 France, and Italy have, up to the present, covered most, 
 if not all, of their purchases here with dollars obtained 
 through credits, and not by the sale of their exchange. 
 The United States Treasury has, since the armistice, 
 loaned to the Allied governments approximately $2,500,- 
 000,000 to cover their commitments and purchase in this 
 country,, and the War Department has sold to them on 
 credit materials to the value of about $500,000,000. This 
 assistance has gone far toward supplying their urgent 
 requirements and to carry them through this transitory 
 period, and has aided most materially in avoiding the 
 necessity of selling their exchanges for dollars. 
 
 The present low rates in their exchanges, therefore, 
 have not been caused by the purchase of dollars, but the 
 sale of their exchange for other currencies. The present 
 rates of exchange reflect the sales exchange in other 
 markets, a liquidation of neutral balances during the war, 
 a certain amount of distrust in the world's political sta- 
 bility, a considerable deficit in the present trade and 
 financial balances, and a certain inequality in domestic 
 and financial conditions. 
 
 If effective action were taken to carry out a policy of 
 stabilizing rates at the par of exchange, it could only be 
 done by drawing gold out of the United States when the 
 dollar would otherwise be at a discount, and by inflating 
 credit when the dollar would otherwise be at a premium. 
 Government action to prevent in respect to foreign ex- 
 change, the ordinary operation of the law of supply and 
 demand in relation to values which always automatically 
 set in action corrective forces, and to prevent the dollar 
 from going to a premium when its natural tendency is to 
 do so, would automatically stimulate our exports, and, in 
 consequence,, through the competition of export demand, 
 increase the domestic price of every product. It would 
 stabilize or even aggravate war prices at the expense of 
 further taxes, loans, increased wages, and maintain the 
 high cost of living at home. 
 
 The view of the Government of the Allies, I take it, is. 
 that had they, after relaxing the war control of their 
 
208 THE INTERNATIONAL TRADE CONFERENCE 
 
 imports, attempted to continue to "peg" their exchanges 
 here at an artificial level by government borrowing, the 
 effect would be to stimulate their imports and discourage 
 their exports, thus aggravating their already unfavorable 
 international balances. 
 
 Some progress has already been made in placing here 
 through private channels the obligation of Allied and neu- 
 tral European countries and municipalities loans, all of 
 which contribute to relieve the exchanges. I am sure 
 that when peace is consummated, and certain political 
 risks, especially in respect to the newly constituted coun- 
 tries are measurably removed ; when it is known just what 
 definite policy is to be followed in collecting reparation 
 from Germany; American exporters and European im- 
 porters will lay the basis of commercial credit in normal 
 transactions ; and I am confident that American bankers, 
 in cooperation with our exporters, will not fail to devise 
 means for financing the needs of the situation, nor Amer- 
 ican investors to respond to Europe's demand for capital, 
 on a sound investment basis. 
 
 It must not be overlooked that the German reparation 
 may also serve as a basis for the financial rehabilitation 
 of Europe, provided there is an early constructive policy 
 defined and announced, which has due regard, not only 
 to Germany's capacity to pay, but to what her creditors 
 can afford to have her pay. 
 
 Meanwhile, it is well to remember the silent factors 
 which are always at work toward a solution of the gen- 
 eral problem. Immigrants' remittances from America to 
 Europe are, and will continue to be a very large item in 
 rectifying the exchanges. As soon as peace is concluded, 
 foreign travel will be a further item. Another very im- 
 portant factor is the purchase of European securities and 
 purchases of foreign-held American securities by Amer- 
 ican investors. But the principal factor in Europe's 
 favor is the inevitable curtailment of her imports and the 
 expansion of her exports. These processes, of course, are 
 stimulated by the very position of the exchanges which 
 they tend to correct. 
 
THE INTERNATIONAL TRADE CONFERENCE 209 
 
 It is probable that American capital will also in ad- 
 dition to supplying credits to our European friends, pur- 
 chase interests in existing foreign properties and invest 
 in new developments abroad. This would be a most 
 natural and material aid in correcting the present ad- 
 verse balances. International relations have become so 
 interwoven that ignorant rivalry should now be substi- 
 tuted by international cooperation. There is so much to 
 do everywhere, and there are plenty of opportunities for 
 all. This conference will undoubtedly produce a better 
 understanding between the representatives of the various 
 countries as to their respective requirements and re- 
 sources, and show how such resources can best be made 
 available for the industrial restoration and development. 
 It is folly to try to succeed by any principle except that of 
 efficiency and service, and I look upon this Conference 
 as the beginning of international cooperation between the 
 industrial and commercial interests of the world, which 
 will lead to closer international affiliations, to a more 
 commercial use of the world's resources and service, and 
 consequently to a new era of peace and prosperity in the 
 world. 
 
 Address of M. Albert E. Janssen, 
 
 Professor in the University of Louva.in, and Director, National 
 Bank of Belgium. 
 
 The Chairman: Now you will hear from the represent- 
 atives of the foreign nations, and first we are to hear 
 from the representative of the Mission from Belgium, 
 that little country which threw its army in the path of 
 the invader at a critical time and rendered a service 
 which this country can never forget. This address will 
 be made by a gentleman who is one of the five directors 
 of the National Bank of Belgium, M. Albert E. Janssen, 
 Professor in the University of Louvain and Director of 
 the National Bank of Belgium. 
 
210 THE INTERNATIONAL TRADE CONFERENCE 
 
 M. Janssen said: 
 
 Mr. Chairman, Ladies and Gentlemen: The exposition 
 of the financial situation in Belgium must necessarily be 
 divided into two parts. 
 
 First, we must consider the banking and monetary 
 situation. 
 
 Second, we will concern ourselves with the financial 
 condition of the government, its budget and loans. 
 
 In presenting the financial statement, which is natur- 
 ally a rather dry subject, in as clear a light as possible, 
 I think it would be best to summarize it under the fol- 
 lowing heads : 
 
 1. The situation of Belgium before the war. 
 
 2. A sketch of the chief difficulties that confronted 
 Belgium from the beginning of the war until the armi- 
 stice. 
 
 3. The progress that has been made since the armistice 
 toward restoring order and stability in a country that 
 was ruled for four years by an unscrupulous invader. 
 
 In this way I hope to be able to give you a clear idea 
 of the present financial situation in my country. 
 
 MONETARY AND BANKING SITUATION. 
 
 The monetary system of Belgium is similar to that in 
 France, Italy and Swizerland, as these four countries 
 adopted the same system at an international convention 
 held in 1865 and which is known as the Latin Union. 
 
 In Belgium the value of the franc in gold was then 
 the unit of measure and our foreign exchange was at the 
 parity of gold. The question of currency was put into 
 the hands of the National Bank of Belgium when that 
 institution was founded in 1850. Notes were issued in 
 1914 up to $200,000,000 and were backed to the amount 
 of 45 per cent by a gold and silver reserve and by an 
 amount 55 per cent of commercial paper, including some 
 loans made on public funds. 
 
 The condition of private banks was equally sound. The 
 
THE INTERNATIONAL TRADE CONFERENCE 211 
 
 capital and reserve of 35 per cent of the principal banks 
 in the country totaled $120,,000,000 in 1914 and deposits 
 amounted to about $400,000,000 before the war. 
 
 Thanks to the richness of its soil, the industriousness 
 and economical tendencies of its people and the enterpris- 
 ing spirit of its business men, Belgium was enjoying re- 
 markable prosperity. 
 
 During the fifteen years which preceded the war, 
 Belgium exported between 3,000,000,000 and 4,000,000,- 
 000 francs to Europe, Africa, China, and South America, 
 exploiting railways, train lines and coal mines in those 
 countries. 
 
 A tax on foreign securities that was imposed in 1913 
 showed that Belgium held $1,200,000,000 worth of for- 
 eign securities. 
 
 This was our monetary and banking situation before 
 the war. In the first days of August, 1914, when the 
 various declarations of war caused unprecedented panics 
 in the chief European markets,, the financial progress of 
 Belgium instantly halted. 
 
 Under such tragic circumstances the Belgium banks 
 were confronted with most serious difficulties. The pub- 
 lic, panic stricken by the international political situation, 
 hastened to withdraw their deposits from the banks, and 
 the banks, in order to have sufficient funds to meet the 
 demands, had to have all their commercial paper dis- 
 counted by the National Bank of Belgium. The result 
 was that in a few days $100,000,000 worth of additional 
 paper currency was in circulation, whereas the reserve 
 was diminished by demands that bills be cashed. 
 
 The German occupation of Belgium made it necessary 
 for the government to declare a moratorium, and the 
 banks were no longer compelled to give coin in exchange 
 for bills. When the war began we believed private prop- 
 erty would be protected by the treaty of La Hague. We 
 believed that international treaties were more than 
 "scraps of paper," as they were termed by Bethmann- 
 Hoilweg. 
 
 On August 12, 1914, we were startled by the news that 
 
212 THE INTERNATIONAL TRADE CONFERENCE 
 
 the reserve of 2,000,000 francs had been seized by the 
 Germans by armed force in the little town of Hesselt on 
 the frontier. The next day brought the report of the 
 still more serious seizure at Liege of more than 6,000,000 
 francs from the branch there of the National Bank of 
 Belgium. The reserve of private banks in Liege also was 
 taken and the German forged signatures on bills that had 
 not yet been signed. 
 
 Then, in rapid succession the branches of the National 
 Bank at Huy, Charleroi, Dinan, Nivelle, Atho, Mons, and 
 Ghent reported that German officers with squads of sol- 
 diers with rifles and bayonets had compelled them to 
 throw open their vaults. But we lost no time. By tele- 
 phone and telegram we had issued orders to burn all 
 notes that had not been sent ahead into territory not yet 
 invaded by the German Army. So as the Germans ad- 
 vanced, our banks sent their reserves to the fortress at 
 Antwerp and from there to the solid vaults of the Bank 
 of England. 
 
 When on Friday, August 21, at 10 o'clock in the morn- 
 ing, I received German officers in the bank in Brussels, I 
 had the personal satisfaction of opening to their inspec- 
 tion vaults empty except $100,000 worth of copper coins 
 that had been too heavy to carry away. 
 
 May I recall for you a personal experience, an incident 
 which occurred on the 25th of August, 1914, in the 
 Grande Place of Brussels. The German general, who was 
 governor of Brussels, called us together and told us that 
 if we did not at once pay a $100,000,000 "war contribu- 
 tion" imposed upon Brussels he would seize the valuable 
 paintings and treasures of our museum. He added that 
 we could easily find rich Americans who would buy these 
 priceless possessions of ours and that in this way the 
 levy would certainly be collected. 
 
 We anwered without hesitation that Americans were 
 too honest and too just a people to take part in such 
 villainy. 
 
 One of the first acts of the German Government in 
 Belgium was to place all banking business under the 
 
THE INTERNATIONAL TRADE CONFERENCE 213 
 
 most rigid control. The Germans dismissed our own 
 governor and took over to themselves the authority to 
 issue banknotes. But as it was necessary to insure the 
 economic life of the nation, the Societe Generale, the 
 main head of all private banks in Belgium, quite in agree- 
 ment with the National Bank of Belgium, was directed 
 and empowered to issue banknotes which were to be made 
 good by the National Bank after the war. 
 
 It is not possible in this statement to enter into details 
 concerning all the arbitrary acts of the Germans in Bel- 
 gium. But let me say to you that one of their most op- 
 pressive acts was in compelling everybody in Belgium, 
 under martial law, to receive German marks at the rate 
 of one franc twenty-five,, for each mark. It was a dom- 
 inating fact which still today has a deep influence upon 
 our monetary situation. Because Belgium did not, 
 naturally, want to exchange good money for what they 
 considered bad money, they concealed their money and 
 all our bank notes disappeared from circulation. Very 
 quickly the country was flooded with German marks of 
 all value and descriptions. A great many marks came 
 from Germany and from Holland as the result of German 
 speculation in exchange. 
 
 Of approximately $200,000,000 discount bills made by 
 the National Bank of Belgium at the beginning of the 
 war, about four-fifths of $160,000,000 were reimbursed 
 by marks which the bank was compelled to receive at the 
 rate of one franc twenty-five. The Germans threatened 
 us with deportation to Germany if we did not accept the 
 marks in payment. 
 
 New business during the war was nil. It could not be 
 otherwise. The general trade of Belgium with foreign 
 countries, which had amounted to more than $2,000,000,- 
 000 a year was paralyzed by the war. Our foundries 
 and factories were closed. Use of our harbors Ant- 
 werp, Ghent, Ostend was denied us. Our industrial 
 and trade organizations were ruined by German requi- 
 sitions. In fact,, all our activities were prohibited. We 
 could not produce. The inevitable consequence was that 
 
214 THE INTERNATIONAL TRADE CONFERENCE 
 
 1,500,000 people were without work. They could have 
 found employment with the Germans, but they refused 
 such work because of a high spirit of patriotism. 
 
 It was these people the Commission for Relief in Bel- 
 gium had to feed and clothe and did under the direction 
 of Mr. Hoover, who gave to the world a noble and never- 
 to-be-forgotten example of human effort for which the 
 people of Belgium shall be enternally grateful to the 
 United States of America. I remember, myself, gentle- 
 men, that in all the towns and little villages of my coun- 
 try where were branches of the Relief Commission there 
 floated the flag of your country. But, after a few months 
 the Germans would not permit your Stars and Stripes to 
 fly, and it was with great regret that we saw the Amer- 
 ican flags pulled down. 
 
 But the colors of your national banner remained en- 
 graved in our hearts and we were able to salute your 
 flag again when, after four years of terrible life, the 
 armistice came and with it the joyous return of our King 
 to Brussels at the head of his own victorious troops and 
 soldiers of America and the armies of France and Great 
 Britain. 
 
 The first financial step the Belgian government took 
 directly after the armistice was to withdraw all Ger- 
 man marks which were in circulation. A total of 6,000,- 
 000,000 marks was taken out of circulation and the gov- 
 ernment gave to the Belgian people in return Belgian 
 currency at the rate of 1.25 for the mark,, to enable them 
 to renew their indusries. At that time the National 
 Bank advanced the government $1,160,000,000. It was 
 not so much a business as a monetary operation consist- 
 ing in substituting our own money for the depreciated 
 mark. Our issue of bank notes which before the war 
 had been $200,000,000 increased to $950,000,000. But it 
 could not be avoided. We had to make the exchange in 
 order to revive our industrial life. 
 
 But I can assure you that reduction of our issue of 
 notes today is an important feature of our finance pol- 
 icy. We fully realize that the inflation of notes has al- 
 
THE INTERNATIONAL TRADE CONFERENCE 215 
 
 ways provoked a depreciation of the monetary unity and 
 contributed to the high cost of living. The economic re- 
 juvenation of Belgium calls for a concentration of all 
 our efforts to diminish the cost of living which is so inti- 
 mately related to the question of salary and wages. 
 Therefore the government and the National Bank of 
 Belgium are determined to prevent any increase in issue 
 notes. No more advances of notes will be made by the 
 bank to the State and efforts will be concentrated on 
 keeping the issue of notes down. Their success in this 
 naturally depends to some extent upon how quickly Bel- 
 gium can liquidate the six billion marks which are today 
 in the vaults of the National Bank. 
 
 As concerns the private banks, I take great satisfac- 
 tion in saying to you that they have weathered the storm 
 well and all are today in excellent shape, well equipped 
 to contribute to the economic and industrial reconstruc- 
 tion work in Belgium. During the last month there has 
 been established an important bank named the National 
 Company for Credit to Industry, which will extend credit 
 to industries and which will play a big part in the under- 
 taking of repairing the damage done during the war. 
 Many of our private banks have doubled or increased 
 their capital and reserve since the armistice. The con- 
 fidence of the public in the banks is shown by the fact 
 that deposits in the banks which, before the war, 
 were $400,000,000 today are double that amount 
 $800,000,000. 
 
 So you see, national money is abundant and cheap in 
 Belgium today. The discount rate at present is 31/2 per 
 cent. 
 
 Before the war the financial situation of the Belgian 
 State was, briefly, as follows : 
 
 The annual budget was $160,000,000 and its equi- 
 librium always was assured by a sane and wise financial 
 policy. The total amount of our debt previous to the 
 war was about one billion dollars. The greatest part of 
 this sum was used to construct railroads, canals, harbors, 
 which belong to the State. Because we had always been 
 
216 THE INTERNATIONAL TRADE CONFERENCE 
 
 at peace we had no navy, and because we had a sound 
 system of finance our debts before the war had been of 
 direct benefit to the nation because they were contracted 
 for public improvements, which proved sufficient to as- 
 sure the remuneration and redemption of the capital. 
 
 Such debts do not trouble us today. 
 
 Two months after the war began the seat of our gov- 
 ernment was removed to Le Havre where our ministers 
 and departments accepted the very gracious hospitality 
 of the French. Except for a few villages and fields along 
 the Yser River, which was the theater of military oper- 
 ations, the Belgian Government did not possess any ter- 
 ritory in which taxes could be collected. German occupa- 
 tion made it impossible to borrow money to meet de- 
 mands upon the Belgian treasury. 
 
 For our war expenses the French, English and United 
 States made advances to Belgium which,, at the time of 
 the armistice, were about one billion dollars. 
 
 The Peace Treaty provides, as you know, that Ger- 
 many shall reimburse Belgium in the form of gold bonds 
 for loans made by the Allies before the armistice. 
 
 Heads of the delegations at the Peace Conference 
 President Wilson, Premier Clemenceau and Lloyd 
 George have said, in a letter they wrote on June 16, 
 1919, to our Foreign Minister "to recommend to their 
 respective parliamentary bodies that German reparation 
 bonds be substituted for advances made by the Allies to 
 Belgium, thus cancelling the debt." 
 
 Since the armistice we have contracted an external debt 
 of $260,000,000, with which our Allies will be paid out 
 of the first German reparation payments. The internal 
 debt contracted by our Government since the war to the 
 amount of $1,500,000,000 to make up for the six billion 
 marks will be paid when we liquidate the marks. In view 
 of these facts our Minister of Finance announced at a 
 meeting of Parliament,, the beginning of this month, that 
 our unpaid debt of pre-war expenses and forced war con- 
 tributions will remain about $1,200,000, which must be 
 
THE INTERNATIONAL TRADE CONFERENCE 217 
 
 covered by loans, of which the greatest part already has 
 been raised. 
 
 Owing to a necessary increase in the salaries of gov- 
 ernment employees as a result of increased cost of living, 
 the Finance Minister has estimated that the annual 
 budget must be raised $100,000,000. New taxes already 
 levied and taxes actually submitted to parliament will be 
 sufficient to cover this increase. It is a small sum to you, 
 perhaps, but a large one to us. But the future would, 
 however, be very difficult to any Finance Minister. We, 
 no doubt, shall receive the indemnities from Germany 
 imposed by the Peace Treaty, but how many years we 
 shall have to wait is a matter of doubt. In the mean- 
 time,, our wrecked industries, our destroyed cities and 
 our business institutions ruined by German requisitions, 
 must be provided at once with money to enable them to 
 get back to normal again. We must insist upon our 
 claims against Germany being paid soon. 
 
 That is the critical phase of the situation. The gov- 
 ernment has expressed the hope that Parliament will be 
 enabled to submit a solution of this problem on the 
 handling of which depends the future of Belgium. It 
 must be added that the German occupation forced upon 
 us a very difficult financial situation. That, gentlemen, 
 is a brief and frank summary of the situation in Bel- 
 gium. Be assured that Belgium is determined to make 
 all necessary sacrifices to restore her finances to a normal 
 status because sound finance is the best way my country 
 can take to fortify and facilitate the internal and exter- 
 nal credit we must ask for this work of restoration. 
 
 The question of our foreign exchange rate was one of 
 the greatest problems our country had to meet after the 
 armistice. During the war our foreign exchange was 
 not quoted, naturally. However, the German orders, im- 
 posing upon us during the occupation, the mark at the 
 rate of one franc twenty-five had a bad effect of solidar- 
 izing our money with the depreciated value of the mark. 
 
 During the German occupation all trade and commer- 
 cial relations between Belgium and other countries 
 
218 THE INTERNATIONAL TRADE CONFERENCE 
 
 ceased. We were denied trade and commerce with the 
 outside world by a great barrier. Our country was as a 
 prisoner. The liberation of Belgium after the armistice 
 put an end to this state of affairs, but how difficult was 
 the position we found ourselves in. 
 
 Despoiled of our raw materials, machinery, etc., Bel- 
 gium was compelled to turn to other countries for those 
 things we formerly had exported ourselves. We had to 
 obtain from foreign countries the credits necessary to 
 compensate for our international balance of payments. 
 
 In December,, 1918, the Belgian Government obtained 
 from England a credit of 9,000,000 pounds sterling to 
 facilitate the purchase of our industries from England 
 of badly needed raw materials and machinery. 
 
 Private credits were obtained by Belgian banks united 
 in a group presided over by the National Bank of Bel- 
 gium and guaranteed by the State under a law enacted 
 March 16, 1919. 
 
 An important group of banks in the United States has 
 consented to give Belgian banks an export credit of 
 $50,000,000 and $25,000,000 has been furnished by a syn- 
 dicate of the principal banks of London. Similar loans 
 were negotiated with the banks of Norway and Switzer- 
 land. The revival of our coal mines, which produce 
 already 90 per cent of the normal production before the 
 war, permit us to make large export of coal to France, 
 and to maintain a good exchange with Paris. 
 
 What we must have in the future is long-time credit 
 ten to twenty years. As late as February the exchange 
 rate on the dollar was five francs fifty, which is a 70 
 per cent increase over the normal rate. Under such con- 
 ditions it is natural we should only buy in the United 
 States the raw materials and food products which are 
 absolutely needed by us for the reason that the increase 
 of 70 per cent in exchange rate is equal to a 70 per cent 
 export tax which should be imposed by the United States 
 on exports to my country. We are all interested, you and 
 we, in reducing the price of the dollar so that trade may 
 get back to normal. The only manner in which to reduce 
 
THE INTERNATIONAL TRADE CONFERENCE 219 
 
 the price of the dollar today will consist in the credit that 
 the United States should allow Europe for some years. 
 You must do today for us what we have done for you 
 in the past. 
 
 I know, gentlemen, that credit must be based upon con- 
 fidence. I will say to you that you may have confidence 
 in Belgium. Bolshevism cannot exist in victorious coun- 
 tries with our free constitution and our democratic in- 
 stitutions, the oldest on the continent. We are rapidly 
 getting back our old stride. We have a great division of 
 property in Belgium. The farms are nearly all very 
 small. Four hundred million dollars are deposited in the 
 Savings Banks of Belgium, which have three million de- 
 positors, mostly of the low classes, out of a population of 
 7,500,000. When so many people are saving and con- 
 servative they do not go blindly into political ventures. 
 
 Then, too, gentlemen, we have fortunately a good and 
 democratic King, who is intimately acquainted with the 
 needs of his country. I remember something the King 
 said to the people when he triumphantly came back to 
 Brussels to receive the royal acclaim and allegiance of 
 all classes, capital and labor alike. The King said, 
 "Order is the basis of social life. Without order, social 
 life cannot be developed. But good order does not con- 
 sist in a forced submission to unnatural or outside com- 
 pulsion. It must be a common accord of the hearts and 
 minds of all, so that the spirit of fraternity and har- 
 mony inspires a patriotic duty and just care of the main- 
 tenance of law and order." 
 
 So said our King, and his counsel is the good star 
 which guides us. 
 
 Gentlemen, in undertaking the great task of econom- 
 ical reconstruction an imperative duty is imposed on the 
 people of Belgium. They must stand united to produce. 
 Production must be the rule of all. There must be strict 
 economy on the part of individuals and the government. 
 It is necessary that we produce to the maximum of our 
 power and consume the least possible so that our export 
 
220 THE INTERNATIONAL TRADE CONFERENCE 
 
 trade may grow rapidly and the returns from it meet the 
 deficit of our payments on international debts. 
 
 That is the fundamental principle upon which indus- 
 trial and commercial restoration must be based in our 
 country, whose sources of production were so ruthlessly 
 destroyed by the invader. We are not a race easily dis- 
 couraged. On the contrary, we have confidence in our- 
 selves, in the industriousness and thrift of all Belgians, 
 characteristics which the people of Belgium ever have 
 possessed. Our country will rapidly recover. You have 
 proof of that in what we already have accomplished since 
 the armistice. 
 
 We hope and firmly believe that ten years from now 
 when Belgium, in 1930, will celebrate the glorious centen- 
 ary of this independence, we shall, as we were able to 
 show in August, 1914, show anew to the world what the 
 energy of the people of Belgium can do to make a pros- 
 perous and progressive nation. 
 
 Greeting From Belgian Engineers. 
 
 The Chairman: Ladies and gentlemen, I have just re- 
 ceived a telegram which I wish to read to you. It is from 
 M. Edward J. Hubaux, of Charleroi, Belgium. The tele- 
 gram reads : 
 
 "In the name of the Association of Commercial Engi- 
 neers, Brussels, also of the present students at the 'Com- 
 mercial Institute of Manufacturers of Hainaut' (Bel- 
 gium), I have the honor and pleasure to convey to the 
 International Trade Conference of the United States 
 Chamber of Commerce and the Foreign Missions gath- 
 ered here, the best wishes for success from all our mem- 
 bers scattered all over the world who are with you heart 
 and thought. They are ready and willing to cooperate 
 with you as they have done in the past and will always 
 
THE INTERNATIONAL TRADE CONFERENCE 221 
 
 do in the future for the triumph of our noble cause ; the 
 complete liberation of our free lands from the German 
 spirit of world-wide domination in industry and com- 
 merce. 
 
 (Sgd.) "EDWARD J. HUBAUX, 
 
 "Charleroi, Belgium." 
 
 Address of M. Le Baron Du Marais. 
 
 (Read by M. Eugene Loizeau.) 
 
 The Chairman: Now,. Ladies and Gentlemen, we are 
 going to hear from France, that country which gave us 
 liberty in time of our need, and that country which gave 
 more men and materials than any other in this war. 
 Her case will be presented by one very eminent in France, 
 the President of the Credit Lyonnais, and Vice-President 
 of the French Mission, M. Le Baron Du Marais. Owing 
 to a cold the Baron tells me that he is unable to read his 
 address. He has therefore requested another eminent 
 member to read it for him, an eminent engineer of Paris, 
 an expert adviser of the Credit Lyonnais, M. Eugene 
 Loizeau. 
 
 The address of Baron Du Marais follows : 
 
 Gentlemen: Several weeks after the signature of the 
 armistice I met one of our best-known generals. As he 
 knew the terrific strain which our country had under- 
 gone, he asked whether France, victorious in arms,, could 
 still muster up sufficient strength to bear the financial 
 
 burden that five years of continuous warfare had imposed 
 
 upon her. I simply replied : 
 
 ''During the most trying days of the struggle you 
 never doubted your soldiers. The signing of the armi- 
 stice has not ended the war. It has merely transposed 
 the field of battle. Why not have the same confidence in 
 the worker of France as we have all had in the soldier of 
 France. He is one and the same man." 
 
222 THE INTERNATIONAL TRADE CONFERENCE 
 
 Facts later ratified this confidence. Little by little, 
 slowly but systematically, the transition from the state 
 of war to that of peace took place. The problems of the 
 new era presented themselves for examination. I cannot 
 say that they have been solved. The most urgent have 
 already been approached and solution is already in sight. 
 So that today, at your invitation, before this Assembly, 
 composed of the great business men of the new world, 
 deemed its men of thought and of action, companions all 
 in struggle and friends all of France, I have the honor 
 to present to you, in the name of the French Delegation, 
 a general expose of the financial situation in France. 
 
 I shall take up first the French budget of 1913 and then 
 the one now in force. I shall then reckon, based upon re- 
 liable data,, the yearly expenditures of the after-war pe- 
 riod and measure the amount of new taxation that must 
 be met in order to balance the budget. This reckoning 
 takes into account the increase in resources that will 
 come, first, from the northern regions of France when 
 their economic life has been resumed, and, second, from 
 Alsace and Lorraine when they will be fiscally reunited 
 with France. 
 
 We shall next consider the reconstruction of the devas- 
 tated regions and the quantity of raw materials and 
 manufactured articles that will be required during the 
 period of reconstruction. 
 
 These facts, when analyzed, will dictate the financial 
 means that must be employed to meet our needs and will 
 bring us to the discussion of the disturbance of the ex- 
 change. This disturbance is the visible symptom of our 
 present ailment and will disappear of itself, together 
 with the ailment, when we have returned to the normal 
 conditions of life. 
 
 THE FRENCH BUDGET. 
 
 The French budget in 1913 amounted to $1,020,000,000. 
 Of this, less than $860,000,,000 came from that part of 
 France which did not later suffer invasion. 
 
THE INTERNATIONAL TRADE CONFERENCE 223 
 
 This year this same section will pay into the Treasury 
 almost the total amount of the budget of $2,000,000,000, 
 which constitutes an increase in burden of 120 per cent 
 
 From the above figures alone you can judge how un- 
 justified it would be to accuse us of not having exerted 
 ourselves sufficiently to increase our taxation to a reason- 
 able degree. 
 
 If you take into consideration the fact that 40 per 
 cent of the male population of France was mobilized, you 
 will have to acknowledge that few countries, in such cir- 
 cumstances, would have been able to attain equal results. 
 
 These two billion dollars which the Treasury will have 
 at its disposal in 1919 will be enough to pay all the civil- 
 ian expenditures of our budget, including the entire in- 
 terest on the public debt. 
 
 We have a right to be pleased with this result, but we 
 shall not halt at this stage. Our Minister of Finance 
 recognized this fact when he proposed to Parliament new 
 taxes amounting to 360,000,000 dollars. These taxes are 
 to be considered at the next session of Parliament, which 
 is scheduled to convene immediately after the coming 
 election. At any rate, the fact remains that, on the aver- 
 age, each French citizen will pay into the National Treas- 
 ury during 1919 about $56, whereas in the United States, 
 according to the National Budget, each American citizen 
 will be required to pay into the Federal Treasury only 
 $49.78. 
 
 Let us see how the budget will balance after the war, 
 when the public debt has been funded, when the increase 
 in the salaries of our public employes will have to be 
 faced, and when provision will have to be made for mili- 
 tary pensions, as a guaranty at least. 
 
 The interest on the public debt will amount on a capital 
 of 40 billion dollars to 2 billion dollars. Civilian expen- 
 ditures amounting to 380 million dollars in 1913, will 
 probably reach 900 million dollars. Military and naval 
 expenditures will reach 400 million dollars, making a 
 total of 3 billion 300 million dollars. To this total we 
 
224 THE INTERNATIONAL TRADE CONFERENCE 
 
 may add pensions amounting to 800 million dollars, rais- 
 ing the grand total to 4 billion, 100 million dollars. 
 
 With what resources shall we meet these appropria- 
 tions? 
 
 To the resources of 1919, equaling 2 billion dollars 
 must be added the share of the devastated regions in 
 their before-war proportion to the whole of France 
 amounting to 400 million dollars. Alsace and Lorraine, 
 highly developed industrial regions, will furnish 200 mil- 
 lion dollars. The increase over the present yield of taxes, 
 without enacting a change in rate, is expected by experts 
 to reach 200 million dollars. This increase will result from 
 the reorganization of the ranks of tax collectors which 
 were so depleted by mobilization as to make it impossible 
 for those who remained to meet their overburdened du- 
 ties, which included the paying of allotments and other 
 gratuities to the families of soldiers. The increase in 
 railroad tariff, which has become an absolute necessity, 
 will bring in from net earnings, and a decrease of guar- 
 anteed interest paid by the State, about 150 million dol- 
 lars, making a total increase of 950 million dollars, which 
 raises existing taxes as they now stand to 2 billion, 950 
 million dollars. 
 
 To fill the gap between this figure of 2 billion 950 mil- 
 lion dollars and our expenditures of 4 billion 100 million 
 dollars, which include military pensions (although these 
 are really part of the German indemnity) , an increase of 
 50 per cent above the present taxes will be more than 
 sufficient. Undoubtedly, this increase is large but need 
 not be feared when we consider what the people of 
 France have already achieved. 
 
 I have introduced the above figures to show that the 
 credit of France does not depend entirely upon the ful- 
 filment of the obligations to which Germany is pledged. 
 According to the Treaty of Peace, Germany is to repay 
 pensions that have been paid to widows, children left 
 fatherless by the war and mutilated soldiers. This re- 
 fund will be available in part to reduce the taxation that 
 is needed to balance our budget and chiefly to create an 
 
THE INTERNATIONAL TRADE CONFERENCE 225 
 
 amortization fund which no Minister of Finance will 
 dare to forget in the face of so great a public debt. 
 
 You may therefore be assured, gentlemen, that the pub- 
 lic finances of France are in such shape as to make us 
 feel absolutely secure about the balancing of our budget 
 and the recovery of our country. 
 
 The French citizen is already heavily taxed; he knows 
 perfectly well that he is to pay still more. With quiet 
 fortitude he will accept the burden of the further taxa- 
 tion that balancing the budget makes necessary. He 
 deems this task light in comparison with the one he has 
 accomplished during the four years of warfare. 
 
 THE DEBT OF FRANCE. 
 
 As to the debt of France which reached 5 billion 600 
 million dollars before the war, it has now mounted to 40 
 billion dollars. This figure might appear disquieting if 
 it were not for the fact that our foreign debt constitutes 
 but a small part of it, namely 6 billion dollars. Moreover, 
 we can oppose to this foreign debt, the still larger amount 
 that is owed France by Eastern and Central Europe. 
 France cannot realize these credits today but will un- 
 doubtedly be able to do so in the future. 
 
 It must be emphasized, however, that the realization 
 of our budget depends upon the following factors : 
 
 1. The rapid restoration of the devastated regions of 
 France. 
 
 2. The resumption of activity in all the manufacturing 
 plants of France, based upon their being supplied with 
 a sufficient amount of raw materials. 
 
 REPARATION OF WAR LOSSES. 
 
 The Treaty of Peace holds Germany responsible for 
 war losses. 
 
 Unfortunately, the extent of these losses is so great 
 that they who negotiated Peace found it impossible to 
 devise practical means by which Germany could pay, 
 
226 THE INTERNATIONAL TRADE CONFERENCE 
 
 within a limited period, the full sums that would cover 
 total losses. 
 
 As a result, France will be obliged to advance the sums 
 to be expended which will reach a very elevated figure 
 since it is essential above all that reparation be effected 
 within the shortest time possible. This is of supreme 
 importance because France will be entirely absorbed in 
 the work of reconstruction until it is completed. Conse- 
 quently,, particularly in view of her depleted equipment, 
 she will not be able to regain her place in the world 
 markets save slowly and to a very limited degree. 
 
 It is precisely at this point that France may require 
 the cooperation of the United States to secure through 
 credits, the means of paying for merchandise, raw ma- 
 terials and manufactured articles, which she could obtain 
 in return for her exports under normal circumstances. 
 
 France can give as guaranty for these advances the 
 German bonds which the Treaty of Peace allots to her. 
 She has no doubt that these bonds will be paid at their 
 maturity but, in the event, which is most improbable, 
 that Germany does not meet her obligations, France 
 would not think it fair to have the entire burden of re- 
 construction fall upon her. 
 
 Upon France has just been conferred the tragic honor 
 of serving as the battlefield of Europe. She has shielded 
 Europe from the barbarians. If, unfortunately, she 
 should be left alone to rear up the cities and villages 
 which the children of America and England, struggling 
 side by side with the soldiers of France, saw crumbling 
 into ruins, she would not despair. She would merely take 
 up her tasks. But it would mean that her wounds would 
 take longer to heal. She would toil on in suffering and 
 suffering does not always inspire wisdom. 
 
 History shows that suffering often transforms into 
 violent movements evolutions that are in themselves most 
 legitimate and no one can foretell the far-reaching reper- 
 cussions of these movements. 
 
THE INTERNATIONAL TRADE CONFERENCE 227 
 
 FOODSTUFFS AND RAW MATERIALS. 
 
 France requires additional food products for her 
 people and raw materials for her plants. Competent 
 commissions have estimated importations of food at 
 about 150 million dollars, but these imports will not come 
 entirely from America. 
 
 Our cotton industry requires about 1,100 thousand 
 bales of cotton, the value of which, delivered in Havre, fa 
 figured at 200 million dollars. 
 
 Our plants require about 100,000 tons of copper which 
 will cost us about 70 million dollars. 
 
 Our consumption of oil and gasoline will probably 
 reach a total of 75 million dollars. 
 
 The above items bring us to a figure of about 500 mil- 
 lion dollars to cover our needs for the year 1920. 
 
 We must add to this our requirements in chemicals, to- 
 bacco, metallurgical products, fuel oil and coal amount- 
 ing altogether to from 100 to 150 million dollars, without 
 counting various other articles that will be imported in 
 the course of trade. 
 
 The rise in the cost of raw materials and the increase 
 in ocean freight rates have already imposed a heavy bur- 
 den upon France. The rise in exchange that has taken 
 on altogether extraordinary proportions within the last 
 few months threatens to make the cost of material deliv- 
 ered in France almost prohibitive. 
 
 It is to improve this condition that we must devise 
 means. 
 
 EXCHANGE. 
 
 Depreciation in exchange is not an isolated phenome- 
 non. It is the visible sign of unfavorable economic con- 
 ditions and of * insufficient means of payment available 
 for the nation suffering from the depreciation which is 
 itself a consequence of insufficient production. 
 
 It is therefore out of the question to devise artificial 
 remedies, however, ingenious they may be, such as the 
 creation of the international currency, for instance. In 
 such cases innovations are dangerous. In trying to cure 
 
228 THE INTERNATIONAL TRADE CONFERENCE 
 
 the malady of one we must be careful to avoid spreading 
 contagion to others. 
 
 The danger lies in making general that rise in the cost 
 of living which causes endless suffering among all 
 peoples. 
 
 What we must do to improve the exchange is : 
 
 First, to improve the internal economic conditions of 
 the country. 
 
 Second, to procure means of payment through appro- 
 priate financial measures. That is one of the chief prob- 
 lems that confronts the new French Parliament which 
 will be elected soon. 
 
 By means of new taxes,, by issuing loans at home and 
 abroad, the French State must get into a position that 
 will enable it to reduce its debts to the Bank of France 
 and decrease the circulation of banknotes. 
 
 The present circulation is over 7 billion dollars, un- 
 questionably an excessive figure. Before the war the 
 circulation of bank notes in France had been kept for 
 several years within about 1 billion dollars. There was, 
 moreover, in circulation 600 million dollars in gold coin, 
 which has since been withdrawn. The total circulation 
 that met commercial needs was thus about 1 billion 600 
 million dollars. 
 
 We admit that the general increase in prices justifies 
 an increase in this figure and that a circulation of from 
 2y% to 3 billion dollars is not too great under present con- 
 ditions. As the French Government owes the Bank of 
 France 4 billion dollars, it is apparent that with the pay- 
 ment of this debt, circulation will be reduced automatic- 
 ally to the acceptable level. 
 
 Nor can we fail to mention the important help which 
 the Bank of France rendered its country during the war. 
 
 Through skilled financial arrangements with our Allies, 
 by using part of the gold reserve which had been in- 
 creased for that purpose and by patriotic appeals to the 
 French public, the Bank of France was in a position to 
 negotiate very important credits for the French Treasury 
 abroad and so to protect our exchange for several years. 
 
THE INTERNATIONAL TRADE CONFERENCE 229 
 
 During the difficult hours of the war, this vast in- 
 stitution placed at the disposal of the State all the means 
 of payment it required and the backing of its long-stand- 
 ing credit. 
 
 Today, changing roles, the State has to place itself in 
 a position to repay the Bank of France. By so doing it 
 will contribute to a large degree to the improvement of 
 the exchange and will make the task of this great insti- 
 tution easier in supporting our trade and our industry. 
 This support is more indispensable than ever during the 
 period of reconstruction upon which we are now em- 
 barking. 
 
 A factor of no less importance is the increase in pro- 
 duction of all kinds in France and its colonies. This in- 
 crease will have to include agricultural products, raw 
 material,, fuel, ore, and manufactured articles that are 
 to be produced in such large quantities as to make it 
 possible for France to meet her domestic requirements to 
 a large extent and to recover the place on the foreign 
 market that is really hers. Shortage of production causes 
 the sufferings of the world. 
 
 It is up to men like these who are gathered here to re- 
 peat to the world the laws of modern production. They 
 have the right to do so since they have learned them from 
 long experience. 
 
 Production does not depend upon the workingman 
 alone. A weaver in India produces barely several 
 inches of coarse cloth as a result of an entire day's work. 
 
 Production does not depend upon the "ingenieur" alone. 
 Without capital he cannot realize his machines. 
 
 Production does not depend upon capital alone. Cap- 
 ital without the workingman and the ingenieur would be 
 sterile. 
 
 Production depends rather upon the harmonious com- 
 bination of workers, technical knowledge and capital. It 
 is the fruit of these three elements. 
 
 In order to have work well paid, its output must be 
 large. Human effort must be directed and coordinated 
 through the intelligence and technical knowledge of the 
 
230 THE INTERNATIONAL TRADE CONFERENCE 
 
 head of the enterprise. Production must be multiplied 
 by the use of the machine, which is the fruit of capital. 
 
 Every increase in wages that does not carry with it a 
 corresponding increase in production raises the cost of 
 living. It is but a deceptive phantom. When everyone 
 will be brought to the realization of this point, it will 
 mean that the chief part of economic difficulties has been 
 solved or at least lessened and that an important step 
 forward has been taken toward social progress. 
 
 MEANS OF PAYMENT. 
 
 To obtain an improvement in the exchange, we must 
 devise measures to increase means of payment. The first 
 idea that comes to our mind is to resort to commercial 
 credits abroad. These credits have been used at different 
 times during the war for private transactions of little 
 importance and also for collective operations with the 
 backing of powerful groups of financiers. 
 
 Commercial credits will undoubtedly be used again .n 
 particular instances but the length of these credits, even 
 if they are renewed several times, is comparatively short. 
 
 Short maturity would not allow the French importer 
 to count legitimately upon the return of the exchange to 
 parity before the repayment of his credits. 
 
 After a minute consideration of this question, it is our 
 opinion that, in view of the period required for the resto- 
 ration of France 10 years would be the minimum dura- 
 tion for credits that are to be extended. 
 
 Now, credits of this nature cannot be extended by 
 banks as they would impair the liquidity of their assets. 
 These credits must accordingly be obtained either by 
 borrowing directly from the government or by issuing 
 long-term securities to be taken by individuals or cor- 
 porations. 
 
 During the war, credits were obtained in the form 
 of loans from government to government. It is not up 
 to us to say whether it would not be wise to employ sim- 
 ilar methods for limited quantities in specific cases, as, 
 for instance, in supplying France with foodstuffs and 
 
THE INTERNATIONAL TRADE CONFERENCE 231 
 
 raw materials, which would be imported under the con- 
 trol of the French Government during the period of re- 
 construction. 
 
 To issue French securities on the American market 
 would be the best method, beyond all doubt, of providing 
 France with the means of payment she requires. These 
 securities could be issued either straight to the public or 
 through the intermediary of American corporations that 
 could issue their own bonds against foreign securities 
 which they would keep as collateral. 
 
 Moreover, you cannot get away from the fact that for 
 a country in which exports exceed imports by a huge dif- 
 ference, it is absolutely necessary to make foreign in- 
 vestments. 
 
 A country in such a position cannot insist upon re- 
 ceiving gold indefinitely from its foreign customers. 
 Such an influx of gold would become useless as soon as its 
 gold reserve would exceed the needs of its trade. 
 
 On the other hand, insistence upon payments in gold 
 would result in impoverishing the importing country 
 financially, in impairing its credit and consequently in 
 depriving it for the future, of every other means of pay- 
 ment. 
 
 Investments in foreign securities, on the contrary, 
 when safely made, can be considered a supplementary 
 gold reserve, but one which bears interest. It affords the 
 best means of regulating exchange, as the "arbitrages" of 
 securities between foreign markets will always occur at 
 an opportune moment to limit fluctuations in exchange. 
 
 Both England and France had made foreign invest- 
 ments before the war, which proved the chief element of 
 their financial strength. We are at liberty to say today 
 that these foreign investments alone enabled these two 
 countries to carry the war against Germany to a success- 
 ful close. 
 
 Because the rapid development of the United States re- 
 quired so much capital before the war, this country 
 employed all its resources at home. It was rather a bor- 
 rower than a lender. 
 
232 THE INTERNATIONAL TRADE CONFERENCE 
 
 However, the situation is reversed now. During the 
 war capital kept piling up, so that many economists and 
 financiers are of the opinion that Americans could easily 
 invest abroad. I share this opinion and believe that this 
 investment could be effected without difficulty as soon as 
 the American public can be brought to realize the ad- 
 vantage of it, and as soon as American banks have de- 
 veloped the necessary organization for selling large 
 amounts of securities to the public. 
 
 Such organizations,, when well-planned, are known to 
 yield amazing results. In this way one of our large 
 banking institutions in France sold securities amounting 
 to 27 billion francs, that is, 5V& billion dollars, for the 
 French Government since the declaration of war. 
 
 The United States has now an exceptional opportunity 
 to start similar investments. The best possible securities 
 are offered it from the entire world upon exceptional 
 terms. 
 
 As far as French securities are concerned the tempo- 
 rary depreciation in exchange adds a particular specula- 
 tive attraction for Americans to acquire them. 
 
 France can offer the United States securities of various 
 kinds, such as Government bonds, French obligations, in- 
 dustrial securities or foreign securities from Central and 
 Eastern Europe. 
 
 Government bonds and bonds of railroad companies or 
 other large corporations Credit Foncier or Credit Na- 
 tional pour la Reparation des Dommages de Guerre are 
 particularly interesting securities for Americans. 
 
 The improvement in the financial situation during the 
 last few months, the wide distribution of securities they 
 are now held by more than seven million people in 
 France as well as the fact that French "rentes" enjoy a 
 very broad market, should make them worth the special 
 attention of the American public. 
 
 By subscribing to these loans or buying these securities 
 at the present rate of exchange, American capital 
 actually associates itself with French interests, as it will 
 
THE INTERNATIONAL TRADE CONFERENCE 233 
 
 benefit by the economic betterment of France which will 
 in turn bring about an improvement in exchange. 
 
 French industrial securities should be equally attract- 
 ive to the American investor, as they will increase in 
 value in proportion to the economic improvement of 
 France. They usually yield less than the French 
 "rentes." The lesser yield is made up for by a steady 
 increase in capital value because the quotation of these 
 securities takes into account the amount of reserves that 
 is put aside yearly out of net profits, and thus increases 
 steadily. 
 
 Finally, France owns a large amount of securities of 
 Eastern Europe. It would greatly assist the develop- 
 ment of these countries,, which offer such brilliant pros- 
 pects, if our French business men could be associated 
 there with Americans and give them the full advantage 
 of their past experience. 
 
 France, during the great struggle which has just been 
 brought to a close, has not alone seen the flower of her 
 youth fall in battle. For the freedom of the world she 
 has recklessly sacrificed a vast part of the wealth she had 
 accumulated as the fruit of centuries of toil and stinting. 
 She still retains her valiant people, her fertile soil and 
 her soft skies. 
 
 She will rebuild her railways, improve and restore her 
 equipment and manufacturing plants. 
 
 Victory gives her renewed force. 
 
 The future opens up radiant before her in this rejuve- 
 nated world wherein she is determined to retain her 
 place. 
 
 Nevertheless, viewing the immensity of her task, 
 France is cheered to feel coming toward her from all 
 corners of the earth that same warm sympathy which 
 pervades this assembly of those who were her brothers 
 in arms of yesterday, her companions in toil today. 
 
 She is confident that America, who comes out of the 
 struggles more powerful, more united and wealthier than 
 ever, will stand by her side. The most severely stricken 
 of all, she must of necessity, for a certain period of time, 
 
234 THE INTERNATIONAL TRADE CONFERENCE 
 
 devote all her energy to healing her wounds ; but,, during 
 this time, she trusts that America will supply her with 
 the raw materials and the equipment she requires for im- 
 mediate recuperation. 
 
 France is confident that America will follow along the 
 path we have just indicated and will actually take prac- 
 tical measures to postpone settlement until the forces of 
 France have been fully restored. 
 
 If this should come to pass ; if America, broadening her 
 scope of activity and extending it to other nations should 
 give to the exhausted world the support it awaits, our 
 task would be much simplified in attaining in each coun- 
 try the cooperation of all social classes which tends to- 
 ward the organization of production and in attaining 
 among nations the cooperation that will promote an ex- 
 change of ideas and services. 
 
 AFTERNOON SESSION. 
 FRIDAY, OCTOBER 24. 
 
 Mr. Rhett, in the chair, said: 
 
 Ladies and Gentlemen: The program this afternoon 
 will begin with a presentation of the position of Great 
 Britain by one whose name is almost a household word in 
 the financial districts of this country, a man in whose 
 judgment the people of this country have almost as much 
 confidence as the people of his own, the president of the 
 Bank of Liverpool, Sir James Hope Simpson, whom I now 
 present to you. 
 
 Address of Sir James Hope Simpson, 
 
 President of the Bank of Liverpool, Liverpool, England. 
 
 Mr. Chairman, Ladies and Gentlemen: I would like 
 first of all to express my warm thanks to you, sir, for the 
 
THE INTERNATIONAL TRADE CONFERENCE 235 
 
 kindly words in which you have introduced me to this 
 audience; and I would like to express to all of you my 
 thanks for coming to listen to the story which I would 
 like to tell you about conditions over in my country. I 
 might say that I have had personally the great advantage 
 of traveling, for a little bit, through some of your indus- 
 trial districts. I have learned a great deal; I have seen 
 much of your industrial life, and I am very much struck 
 with several things. I am very much struck with the 
 great optimism and courage of your business men. Every 
 one has a belief in himself; every one has a belief in his 
 firm or his corporation and in his own city and state. I 
 assure you that coming from a country where we are a 
 little too apt to depreciate ourselves, it is a very great 
 incentive to me. It sends me back to fresh courage and 
 fresh determination to do the best for my own city, my 
 own undertaking, my own state. 
 
 I wish to explain that, although I represent the British 
 banks at this Conference,, any views that I express today 
 or any statements that I may make are given entirely on 
 my own responsibility and I am speaking naturally as a 
 banker. There is a curious distinction, apparently, which 
 I have heard in America more than once from the plat- 
 form, between business men and bankers. It reminds me 
 of the curious distinction that was made in one of the 
 New York papers,. I believe, some time ago, describing a 
 shipwreck. It was announced that thirty-nine souls were 
 lost and two men from Hoboken. Now, I do not know 
 whether I belong to the lost souls or to the two men from 
 Hoboken; but I come before business men because I feel 
 that the interests of the banks are entirely bound up with 
 the interests of the business men. 
 
 Now, I would like to express, may I say, on behalf of 
 our whole delegation, the great thanks we owe to America 
 as a nation for their magnificent contribution to the 
 Allied cause. We had many thrills during this war; we 
 had our times of exultation and our times of disappoint- 
 ment ; but I think I never personally experienced a greater 
 thrill than when I looked out from my office window at 
 
236 THE INTERNATIONAL TRADE CONFERENCE 
 
 Liverpool and saw the first contingent of the American 
 army marching up the street. It was a sign and a fore- 
 taste of the great and stupendous help which you brought 
 to the service of our cause. I also remember, and I shall 
 never forget, how I stood one day this summer in a little 
 cemetery on the outskirts of my city and there were row 
 after row of little mounds, and at the head of each mound 
 a little cross,, and on each little cross the name of a man, 
 and below it the name of his regiment and the state from 
 which he came. As I read the names of Texas, Tennessee, 
 Louisiana, and Massachusetts and all your states I felt 
 that those men, although they had died in England, or on 
 the way to England, before ever reaching the battle- 
 fields, had given their lives to the cause which was dear 
 to us and dear to you. When I think that those graves 
 were only a mere fraction of similar graves scattered all 
 over the French front I began to realize the debt that we 
 owe to the people of this country. 
 
 We owe also a great debt to you for your financial sup- 
 port before you came into the war. That support was 
 valuable to us, but it was naturally hedged around by 
 your obligations as neutrals. After you came into the 
 war your resources were freely placed at the disposal of 
 the Allied cause and nothing in the whole war contributed 
 more to the ultimate successful issue. 
 
 There is one other great contribution which you made 
 to the cause, and that was this : You brought to it the 
 assurance and conviction to the whole world that the 
 cause was right. Nothing but the righteousness of our 
 cause could have induced America to depart from her life- 
 long traditions of non-interference; and, inasmuch as 
 there were in all countries of Europe wavering minds 
 who had doubted all through whether the war was 
 righteous, it was of very, very great value to us all to 
 feel that, taking an independent view, and taking a view 
 with extreme reluctance, but with strong conviction, 
 America was persuaded that our cause was right. 
 
 With your permission and on behalf of the British dele- 
 gation, I should like to thank the other nations which are 
 
THE INTERNATIONAL TRADE CONFERENCE 237 
 
 represented at this Conference. We shall never forget, 
 and neither will you, the enormous sacrifices of Belgium, 
 France and Italy and all the other Allies who joined with 
 us. We shall never forget those countries which, though 
 not represented here, deserve a high place of honor at 
 this and every other Allied Conference. Those are the 
 countries, too stricken by war, too devastated to join with 
 us just now. Serbia, which, I suppose,, has really suf- 
 fered more in proportion than any other of the Allies; 
 Montenegro, little Montenegro; Poland, Roumania all 
 our Allies everywhere I wish to pay a tribute to them 
 and I am sure that you will be glad that I have done so. 
 
 It is not for me on this occasion to say anything in 
 praise of the work of our own Army and Navy. If I did 
 I should spend the whole afternoon; but it is the silent 
 work of that navy, the bravery of that great army and 
 their constant enthusiasm in the midst of defeat are 
 written in golden letters on the shining pages of our 
 island story and it is not for me to add anything to the 
 glory which they have earned. 
 
 So, after these preliminary remarks I would like to 
 turn to the subjects with which I am perhaps more 
 familiar, and those are the conditions of Great Britain 
 during and after the war. I would like, first of all, being 
 a financial man to speak of the financial upheaval which 
 took place at the opening of the war. At that time Lon- 
 don was the great lender, the great banker for all the 
 world. When the war broke out and the lenders, the 
 bankers of London, began to doubt as to whether the 
 money which they had advanced to the rest of the world 
 would be repaid they began suddenly to shut off the 
 stream of credits. There was no other big lender in the 
 world ready to take the place of London. New York was 
 itself indebted to us ; Vienna was closed by the war ; Ber- 
 lin was closed ; Paris was closed ; Amsterdam had enough 
 to do ; and so it came about that the mere cutting off of 
 the stream of credit created a great financial crisis in the 
 city of London. It was feared that the bills which were 
 expected to be met would not be provided for and a great 
 
238 THE INTERNATIONAL TRADE CONFERENCE 
 
 anxiety began to fill the minds of all the men in the money 
 market. It was at that time and to meet that condition 
 of things that our government and our financial men got 
 together and devised those great measures of relief of the 
 market which carried it through that extremely grave 
 crisis. It was also at that time that our government de- 
 cided that they would withdraw from circulation the great 
 stock of gold lying in the purses of the people and in the 
 strong rooms of the banks. That reserve was not an 
 official reserve. We had an official reserve,, the figure of 
 which was well known and announced at our center in the 
 Bank of England. But we had a very valuable reserve in 
 the pockets of the people and in the other banks which 
 amounted altogether, it is estimated, to over one hundred 
 and twenty millions sterling. That gold was gradually 
 withdrawn from circulation and formed, during the early 
 years of the war, a valuable instrument in the hands of 
 our government in the Bank of England for the settle- 
 ment of international debts. Of course, that had to be 
 replaced and it was replaced by the issue of what we call 
 treasury notes, which are one-pound notes and ten-shilling 
 notes. These are now in common use throughout the 
 country for all purposes of domestic and business pay- 
 ments. A great deal of criticism has been leveled at our 
 government for not supporting those notes by a large 
 stock of gold. Why have they not done so ? Because the 
 gold could not be gotten. We have a small stock of 
 gold amounting to about eight or nine per cent of the 
 total issue, but that is not enough on ordinary banking 
 principles, and it is not pretended by the Government that 
 it is enough. The time will come, I hope, and it is the 
 hope of all the bankers of England, when gold will be 
 accumulated sufficient to redeem all those notes. Because 
 that issue of notes was very large, being about three 
 hundred and fifty millions sterling, it has been charged 
 that it has actually caused the great inflation of prices 
 that has taken place in our country. I venture to dispute 
 that. In the first place,, we had to replace about one hun- 
 
THE INTERNATIONAL TRADE CONFERENCE 239 
 
 hundred and twenty millions of gold. In the second place, 
 every worker in the country is now receiving as much or 
 more in the form of wages as he did before the war andl 
 is, accordingly, carrying more loose money in his pocket. 
 In the third place, and this is no inconsiderable item, 
 these notes found their way far out into the world. They 
 are now circulating in Egypt, in the Levant, Turkey, 
 on the borders of Russia; and when the Germans were 
 not able to persuade the Russians to accept their mark 
 notes they had to employ the Bank of England notes, 
 British Government Treasury notes and United States 
 dollar notes. Therefore, it appears to me that if you take 
 all those things together there is not much inflation about 
 that currency issue. 
 
 The next great financial consideration which came be- 
 fore us during the war has been the perpetual recurrence 
 of the issue of British Government loans. In England we 
 have gone through exactly the same sort of experience 
 that you have gone through in America with the floating 
 of your Liberty Loans; and we have gone through it, I 
 am glad to say, with similar success,, and now there are 
 in the hands of millions of people government stock and 
 war savings certificates. The result is twofold. In the 
 first place, a great part of our national debts, by far the 
 larger portion, is owing to our own people, and not 
 abroad. In the second place, a saving spirit has been in- 
 culcated into the minds of many people who never thought 
 of saving before. 
 
 The next feature of the war which immediately hits us 
 all was the rushing of men to the colors. To give you an 
 illustration of what that means, I had a thousand men 
 employed in my bank ; 650 of those joined the colors and 
 our experience was by no means singular. But the result 
 was that industry was very largely crippled. In our ex- 
 tremity we turned to quarters to which an anxious man 
 often turns to the women, and the women saved the 
 situation. Gradually we accommodated ourselves to that 
 great disturbance and displacement of labor. 
 
 The next disturbing thing was government control of 
 
240 THE INTERNATIONAL TRADE CONFERENCE 
 
 business ; and I do not think that many people now "God 
 bless the Government control." I think, of all the puz- 
 zling things in the war,, government control was the 
 worst, and there is a strong movement now in the country 
 to get rid entirely of those gentlemen whose services were 
 eminently necessary I do not deny that eminently nec- 
 essary during the war, but whose services can now be 
 quietly and readily dispensed with. 
 
 Then we had some things which came very near home. 
 We were pretty soon threatened with a shortage of fuel 
 and with visits from German airplanes and airships. 
 Those two things combined required that we should 
 economize our light and that we should screen our lights. 
 The result was that in practically every home there was 
 only one room used for all purposes. There were no lights 
 left on when you went to bed and you always kept your 
 blinds down. If you did not, the police were on your 
 track. When you went abroad the streets at night you 
 could not see your way. Again, we had to economize in 
 fuel ; and, of all the economies, I think that perhaps was 
 the most difficult and hit a great many people very hard. 
 We had to economize in food. For two or three years the 
 limit of meat allowed to any one person was two pounds 
 per week; sugar, half a pound, butter, two ounces; and 
 that sort of thing still to a certain extent prevails, and I 
 told, will prevail in all its acuteness in the coming winter. 
 
 But the great overshadowing interest and anxiety of 
 the war was that whenever there was an advance or 
 whenever there was a retreat, or whenever our men would 
 fight and hold their own, sure enough in a few days tele- 
 grams began to arrive from the war office in one home 
 after another that boys who were the center of the af- 
 fection and interest of the home had been killed and, in 
 course of time, all that was left in place of them was per- 
 haps the photograph taken before he went away and a 
 photograph of the little grave in France. It seems to be 
 a very painful thing when one man after another whom 
 you met had lost his son, one lady after another whom 
 you met had lost a son. Some people lost two sons ; others 
 
THE INTERNATIONAL TRADE CONFERENCE 241 
 
 whom I know lost three. In other cases whole families of 
 sons were wiped out, and when you take into account the 
 fact that we sent six and one-half million men to the 
 colors and that of those a million were killed or died of 
 wounds, you will see that there are not a great many 
 families in England who have not to mourn the loss of 
 those who were dear to them. And then the anxiety 
 about public affairs and the course of the war was very 
 great and many a time I have repeated to myself those 
 fine words of the Roman poet who said, "Remember in 
 the midst of difficulties to preserve a steadfast mind," 
 and that was what we had to do. We had to work under 
 that burden for four and one-half long years. Of course, 
 our men were constantly being wounded, and you cannot 
 go now into any city or town or village of our country 
 without meeting mutilated men who,, but for the war, 
 would have been the strength and backbone of our coun- 
 try in the time to come. And so you will well understand 
 the great relief and rejoicing with which we welcomed 
 the armistice. And yet I venture to say this: That if 
 England had known the experience through which she 
 was going to pass, if she had known it in advance, it 
 would have made no difference whatever in her decision 
 to go to the relief of France. 
 
 And now the curtain has been rung down on the proud 
 struggle of war. How do we stand in Great Britain? I 
 should like to refer first to our national debt. Our pre- 
 war debt was about three and one-half billion dollars. 
 It is now thirty-eight billion dollars. Of this we owed at 
 the beginning of the war nothing abroad. We now owe 
 seven billion dollars. But against that seven billion we 
 have to set this fact: There is owing to us by our own 
 colonies and by foreign countries about nine billion dol- 
 lars. Now, I want particularly to note that I am not 
 authorized to say anything on behalf of our government, 
 but, speaking as a citizen, a private citizen of the British 
 Empire, I do not hesitate to say this : That while we shall 
 require time to pay our debt, it will be paid. The nation 
 is determined to set our finances in order and to foot the 
 
242 THE INTERNATIONAL TRADE CONFERENCE 
 
 bills. The nation must follow the road of sacrifice and 
 hardship, but it is the road of honor and safety. That is 
 all I wish to say about government functions. 
 
 With regard to the general commercial conditions in 
 Great Britain I should like to try to present in a few sen- 
 tences a sort of balance sheet of our losses and our gains. 
 The first loss I would name is that we have lost five years 
 of the economic development of the country ; for five years 
 the ordinary replacement of worn-out materials, machin- 
 ery and so on has had to go by the board. The replace- 
 ment of merchant ships has had to stand over. The 
 savings of the people, which would in ordinary course 
 be devoted to the development of commercial enterprise, 
 have had to be devoted to warlike enterprise. But against 
 that great loss we have to set one great and possibly a 
 countergain. That is a great increase in the class of 
 machinery which was required for the manufacture of 
 munitions of war. That is very largely confined to an in- 
 crease of machinery in our engineering works. To some 
 extent it meant also an increase in the machinery in our 
 textile factories, and I think,, on the whole, it may be 
 taken that the increase due to war requirements is a good 
 set-off to the absence of the usual economic saving and 
 development. Then we lost some of our foreign invest- 
 ments and our loss was your gain. We found that we 
 owed a lot of money in the United States and we wanted 
 to pay it. Therefore, all the holders of dollar securities, 
 the bonds of your railways, the bonds of your public 
 utility corporations and other various securities were 
 called in by our government and were either borrowed by 
 them or purchased by them and sent over to this country 
 in order to help raise the money and to pay off a good deal 
 of our indebtedness here. Therefore, there is now lying 
 in the vaults of your banks and there is held by individ- 
 uals and companies throughout this country the dollar se- 
 curity, which formerly formed part of the investments of 
 our people at home. It is estimated that at the beginning 
 of the war we held about twenty billion dollars' worth 
 of foreign investment, but owing to the cause to which 
 
THE INTERNATIONAL TRADE CONFERENCE 243 
 
 I have referred we now hold only fifteen millions, and 
 inasmuch as we used the interest on those investments for 
 the purpose of paying for imports abroad to the extent 
 of the loss of interest, we are crippled for the future. 
 Then we had a vast rise in prices, including the prices 
 of raw materials, machinery, food and clothing. That 
 rise of prices affected every family in the land. It led 
 to an enormous disturbance in the wage market in all 
 salaries. It led to great inconveniences on the part of 
 wives who had to look after their families, and the family 
 provisioning. It has led to one problem after another at 
 home which still have to be solved ; and, of course,, it led 
 to the very vital consideration that everything that we 
 buy abroad in the form of raw materials for the purpose 
 of reproduction and for exports has raised the cost 
 against us ; but now that we are actually manufacturing 
 and getting again into the export markets we shall gain 
 a corresponding rise in the price we shall obtain for our 
 exported goods. 
 
 We had an enormous loss of shipping. We lost a very 
 large quantity of shipping, not only by natural causes, 
 but by German submarine attacks ; and when you realize 
 that shipping is the life of our island country you will 
 realize that we cannot sit down under that loss. Against 
 that loss I have to put this That already our shipbuilding 
 yards are full of new merchant steamers in process of 
 construction and we hope in course of time to overtake 
 the terrible losses which we have suffered during the war. 
 
 Now, this has a distinct bearing upon the question of 
 the American mercantile marine ; and I would like to say 
 at once that we welcome the entry of America on a large 
 scale, a much larger scale than heretofore in the marine 
 carrying trade of the world ; that we hope her great gains 
 in that direction will be maintained, for we regard 
 America as one of the most honorable competitors we can 
 have. You can well understand that if a choice were put 
 to us between German competition and American compe- 
 tition there could be but one answer to that question. I 
 think I represent the views on this occasion of all the 
 
244 THE INTERNATIONAL TRADE CONFERENCE 
 
 British delegation when I say that there is room for both 
 of us on the high seas, and there is plenty of stuff to 
 carry. The more ships each of us have to carry it the 
 better for the world. 
 
 I would like to refer for a moment to labor unrest. We 
 find ourselves, owing to the war, in a very difficult posi- 
 tion in regard to labor. I will not cover the ground which 
 was so well covered yesterday by Sir Arthur Shirley Benn, 
 but I would like to confirm from my own experience and 
 inquiries that what he said when he said that there seems 
 to be, in spite of all the strikes which you read, there 
 seems to be growing up a distinctly better feeling between 
 masters and men. There seems to be a recognition on the 
 part of labor that restriction of output is a national 
 calamity and a recognition on the part of the employer 
 that the workmen must have a greater share than here- 
 tofore in the profits of his work and in the social of life. 
 When you get that attitude on the part of both employer 
 and the employe I do not think it will be beyond human 
 skill and wisdom to find a means of solution to the dif- 
 ficulties which still confront our country. Of course, we 
 have had an awful loss of labor through the death of so 
 many young men,, but, as I said before, we have discov- 
 ered a great reservoir of strength in the form of female 
 labor, and when you take that consideration and add to 
 it the fact that we are well equipped now with machinery 
 of all kinds, especially that we are employing more auto- 
 matic machinery than we did before, I do not think we 
 need to be anxious in England about the future of the 
 labor problem. 
 
 Finally we are faced with very heavy taxation. I think 
 that every one in England will be poorer than he has been. 
 At any rate, during the rest of my business life I cannot 
 see any chance of relief for the taxpayer. But I feel that 
 if we are to carry out, as I knew we will, what I have 
 called the setting in order of our national finances, every 
 one of these taxpayers will have to bear a greater burden 
 than he has ever contemplated, and a greater burden than 
 he can with comfort bear. However, it will have to be 
 
THE INTERNATIONAL TRADE CONFERENCE 245 
 
 borne and it will be borne, I hope, with cheerfulness and 
 with resignation. 
 
 Summing up the whole thing I try to make that bal- 
 ance sheet in an informal way summing up all I think 
 it comes to this: That we are justified in the strong con- 
 viction that we shall recover our war damages, that we 
 shall recover fairly rapidly ; but it will entirely depend, as 
 Mr. Alexander, the chairman of your Finance Committee, 
 said upon working and upon saving upon the part of the 
 individuals of our country ; and I feel with confidence that 
 a country which has already passed through many a 
 severe crisis will not succomb to the present crisis and 
 that we may look forward with confidence to our economic 
 future. 
 
 We came here partly to tell you our needs, and I am 
 glad to say that our needs can be summed up in a very 
 short sentence. We need the continued supply of your 
 raw materials and all we ask that you shall continue to 
 show the confidence in individual business men that you 
 have hitherto shown. If you found that you could trust 
 them in the past, we ask you to trust them in the future. 
 I will give you an illustration of the meaning of that. A 
 cotton merchant omporting into Liverpool cotton from 
 the United States has to take into consideration what that 
 cotton will cost him. He naturally does that before he 
 orders the raw cotton from you ; and I ask you to believe 
 that when he places the order with you, however adverse 
 the exchange, however high the price of the cotton, that 
 you may assume that he has made his arrangements for 
 paying for that cotton, that he would not have ordered 
 it unless he had seen his way to meet the bill. Therefore, 
 I say we ask that you shall continue to supply your raw 
 material to our individual merchants and importers in a 
 normal and usual way. But we are not asking on behalf 
 of the commercial community of Great Britain for any 
 other special form of credit. 
 
 Now I pass from the question of England or Great 
 Britain by itself just to say one or two words, if you will 
 allow me the time, about a few other countries of Eu- 
 
246 THE INTERNATIONAL TRADE CONFERENCE 
 
 rope. I shall not refer to France, or Belgium or Italy 
 who are represented here. But, I should like to say one 
 word about our relations, our economic relations with 
 Germany. Before the war Germany was our greatest 
 customer. We exported to Germany and imported from 
 her,, roughly speaking, about one hundred and sixty bil- 
 lions sterling of goods on each side of the account. On 
 every export we made and every import we made we ex- 
 pected to make a profit. On every import they made and 
 every export they made they expected to make a profit, 
 and no doubt the business would not have been done if ?t 
 had not been profitable on both sides. Now that great 
 market has been cut off from us and our great market 
 has been cut off from them and the question is how soon 
 will those markets be reopened to one another? I ven- 
 ture to say that the atrocities committed by the Germans 
 wherever they went, especially their atrocities upon help- 
 less populations, upon women, upon girls, upon prison- 
 ers the memory of this has sunk too deep into the Brit- 
 ish mind for us readily to resume commercial intercourse 
 with them. No legal impediment will be placed in the 
 way. It is possible that transactions may be begun 
 sooner than I expect, but such is the temper of our people 
 at present that I am afraid the initiative will not come 
 from them. I think it will require a good many years 
 before we can get to such a stage as to practice the pre- 
 cepts of our Master, Christ, and forgive them com- 
 pletely. I, therefore, look for no rapid revival of the Ger- 
 man trade. Again,, we have had a good deal of trade with 
 countries not represented here but which have been faith- 
 ful Allies of our cause, such as Poland, Finland, Czecho- 
 slovakia, Roumania, Jugo-Slavia Republic, Serbia, and 
 Montenegro. We agreed to do business with those people 
 because we feel that they deserve it; and we cannot do 
 business with them unless we trust them and give them 
 long credits. A certain amount of business is passing 
 already between us and them, but it is business involving 
 short credits which had happened to be easily arrange- 
 able. But they will require for the restitution of their 
 
THE INTERNATIONAL TRADE CONFERENCE 247 
 
 countries credits for much longer periods than we in 
 England with our own present financial obligations can 
 undertake to supply. We used to be free lenders to the 
 whole world even for long terms; but when we owe the 
 world so much ourselves it is not for us to continue that 
 policy. We can only resume that when we have met our 
 own international obligations. Therefore, with the 
 greatest deference and without any desire to interfere in 
 American concerns, I would like to suggest that the pro- 
 visioning of those countries, needing as they do, all pos- 
 sible supplies and materials ; needing as they do raw ma- 
 terials; food, clothing,, tools and machinery before they 
 can resume their normal life is at once a challenge and 
 an opportunity for America. Credit is required on a 
 large scale and if it were forthcoming at once it would 
 be of untold benefit to those war-stricken people. There 
 is a beautiful illustration in one of the old prophets where 
 one reads of a river that issued from the sanctuary and 
 spread over the plain and brought life wherever it went 
 and of which the prophet says that everything shall live 
 whithersoever the river cometh. And so I venture to say 
 it is that stream of credit in the case of those people. If 
 they were to receive credit, credit in the form they need, 
 materials of the kind they require, materials to help them 
 start on the work of reproduction themselves, I say that 
 that stream of credit would bring life and hope to those 
 nationalities at present downtrodden and dejected and 
 hopeless. Surely it is worth the consideration of this 
 Conference and I believe it is receiving at the hands of 
 your Finance Committee the earliest possible consider- 
 ation. It is worthy of consideration to try to ascertain 
 whether it is possible to respond to that challenge and to 
 embrace that opportunity. 
 
 In closing I should like to say that my colleagues and 
 I have been greatly cheered by this Conference. The in- 
 tercourse of business men of various nationalities and 
 especially in the intercourse of men of the hopeful spirit 
 of the American business men is a great encouragement 
 and delight to us and we shall go back to our countries 
 
248 THE INTERNATIONAL TRADE CONFERENCE 
 
 enthused and inspired. I am glad to say that we can look 
 forward to a renewal of our intercourse because I under- 
 stand that this Conference is intended to be a recurring 
 event ; and we hope that either in Europe or here at some 
 future time or times we men who are here today may 
 have the pleasure of meeting all of you. One further ad- 
 vantage of that recurring intercourse will be that it will 
 tend to equip us and inspire us all with the high mission 
 to which the business men of this after-war generation 
 are called. What is that mission ? It is nothing less than 
 this : It is nothing less than by the tranquil operation of 
 commerce to bring peace to the nations of the world, to 
 introduce into every home, great or humble, the means of 
 living and the objects of delight and pleasure. It is noth- 
 ing less than to provide for every man honorable work so 
 that there shall no longer be any man standing around 
 idle because no man has hired him. It is nothing less 
 than this: That we are called today to bring a salve or 
 ointment for the grievous wound of the world; to help 
 to restore the world to a life of happiness and prosperity. 
 
 The Chairman: I am sure that I voice the sentiments 
 of all of this great gathering when I express its thanks 
 and appreciation to Sir James for the splendid address 
 he has given us. It has been a great source of gratifica- 
 tion to us that Great Britain needs nothing from us ; that 
 she is prepared to go on and do business with us in the 
 same old way and upon the same old terms. We knew, 
 my friends, that she went into this war in the very be- 
 ginning with her whole heart and soul ; that at the open- 
 ing of the war she exposed her whole territory and threw 
 her own "contemptible little army" into the breach and 
 saved the channel ports and the communication between 
 the armies. We knew that while no portion of the bat- 
 tlefield on land was in her territory, yet on the sea she 
 lost more than all the other nations combined and we did 
 not know just to what extent her resources had been 
 taxed. 
 
 It has not only been a source of gratification that she 
 
THE INTERNATIONAL TRADE CONFERENCE 249 
 
 is prepared to go on and do business with us, but her dele- 
 gation has been of infinite assistance to us in bringing 
 closer home to us the picture of Europe as it is today ; the 
 condition of those nations who are not here represented 
 and what we would probably have to do to rehabilitate 
 them. And so we want to extend not only our thanks to 
 Sir James, but to every member of that delegation for 
 their help to us in this Conference. 
 
 i 
 REPLY FROM PRESIDENT WILSON. 
 
 And now gentlemen I want to rejoice with you and 
 read to you a communication which has just been handed 
 us from the White House, a communication from Mr. 
 Tumulty in reply to a letter from Mr. Bedford from the 
 Conference : 
 
 "My Dear Mr. Bedford: Let me make cordial acknowl- 
 edgment of your letter of October 22nd and in the Presi- 
 dent's behalf thank you and through you the delegates to 
 the International Trade Conference for the generous mes- 
 sage of sympathy and good will which it transmits in 
 their name. 
 
 "You may be sure that the President would be cheered 
 and heartened by this friendly greeting. 
 
 "Sincerely yours, 
 
 (Signed) "J. P. TUMULTY, 
 
 "Secretary to the President." 
 
 Address of Commander Domenico Gidoni. 
 
 Representative of the Italian Minister of the Treasurer. 
 
 The Chairman: We are going to hear from the repre- 
 sentatives of the Commission from Italy. I do not know 
 whether Italy won our admiration more in the hours of 
 her trial, in the fortitude, the manner in which she with- 
 stood it, or at the time of her triumph when she drove her 
 armies into the enemy's territory at the end. Certainly 
 she has our deepest sympathy and our deepest regard. 
 
250 THE INTERNATIONAL TRADE CONFERENCE 
 
 Her cause is to be presented to you this afternoon by a 
 man who is eminently qualified for that purpose. He was 
 a financial representative of the Italian Government in 
 England during the war. He is at present the repre- 
 sentative, the financial representative of the Italian Gov- 
 ernment in this country, Commander Domenico Gidoni, 
 and I beg to present him to you. 
 
 Commander Gidoni said: 
 
 Ladies and Gentlemen: It is a great honor and at the 
 same time a pleasure for me to speak today before this 
 assembly, representative of the intellect and strngth of 
 the new era of Peace. 
 
 In taking the initiative in calling this conference the 
 United States Chamber of Commerce has laid the foun- 
 dation stone on which the edifice of the renewed economic 
 life of Europe will arise. 
 
 I am confident that our debates will lead to effective re- 
 sults, for experience has taught me that you Americans, 
 with that spontaneity and rapidity of action which char- 
 acterizes you, know how to prove your friendship by 
 deeds as well as by words. 
 
 In June, 1917,. the rate of exchange for the Italian lire 
 was almost as low as it is today. Well, it was essentially, 
 thanks to the material and moral assistance afforded us by 
 the Federal Reserve Board, and to the cordial cooperation 
 of the American banking institutions, that we were able 
 to improve its position and stabilize exchange. 
 
 As the delegate to your country of the Bank of Italy 
 and of the National Institute of Exchange, I take this op- 
 portunity to express our gratitude for what was done on 
 that occasion on behalf of my country. 
 
 The state of exchange is one of the gravest problems 
 of peace. It pictures graphically a nation's financial con- 
 dition, of which it is the most visible sign. A depreciated 
 exchange is directly injurious to a country in its commer- 
 cial relations with other countries whose exchange is at a 
 premium. When the rate of exchange passes the "gold 
 point" and there is no possibility of meeting external 
 
THE INTERNATIONAL TRADE CONFERENCE 251 
 
 debts in gold, so as to bring exchange to the normal, a 
 further depreciation can not in any effective way be 
 halted. 
 
 There is one initial cause for this depreciation below 
 the "gold point," that is the inability on the part of the 
 country which has depreciated currency to pay its for- 
 eign debts either in gold or commodities of trade. 
 
 The degree of depreciation depends upon material and 
 psychological factors. 
 
 The material factors are the amount of paper currency 
 and gold reserves, the country's debt, its balance of trade. 
 
 The psychological factors are the valuation of economic 
 resources,, political and social conditions, latent national 
 forces, and the forecast of future prospects. 
 
 This is why countries which are all equally unable to 
 settle their foreign liabilities in gold or goods, and so are 
 all technically on the same monetary plane, still suffer in 
 various degrees from the depreciation of their currencies. 
 
 The pound sterling, for instance, has depreciated much 
 less than the franc because both material and psycho- 
 logical factors are favorable to England, where a rapid 
 return to the normal is more certain. Compared with the 
 pound sterling and with the frank,, Italian exchange has 
 fallen to a lower level because of certain less favorable 
 factors. 
 
 As soon as the restrictions in force during the war 
 were removed, in March, 1919, the exchanges of the bel- 
 ligerent countries of Europe quickly and violently receded 
 in comparison with the dollar. 
 
252 THE INTERNATIONAL TRADE CONFERENCE 
 
 New York Market Average Monthly Range of Rates. 
 
 1918. 
 
 November 
 December 
 
 Pound Sterling 
 Normal Rate 
 
 Exchange 
 $4.8665 ='1. 
 
 4.757 
 
 ... 4.757 
 
 January 4.758 
 
 February 4.758 
 
 March 4.758 
 
 April 4.672 
 
 May 4.659 
 
 June ..... 4.611 
 
 July 4.255 
 
 September 4.195 
 
 Franc 
 
 $1.00=5.1813. 
 5.430 
 5.454 
 
 5.458 
 5.465 
 5.465 
 5.745 
 6.385 
 6.385 
 7.706 
 8.635 
 
 Lire 
 
 $1.00=5.1813. 
 6.360 
 6.363 
 
 6.368 
 6.366 
 6.366 
 7.056 
 8.095 
 8.295 
 9.137 
 9.830 
 
 The French student of finance now faced with the ques- 
 tion whether the depreciation of the franc is not in part 
 due to the repatriation of English and American soldiers, 
 who, during the war, received and spent in France very 
 large sums in cash. 
 
 The sudden fall in exchange is,, comparatively speaking, 
 much more serious in the case of Italy, and she must con- 
 sequently bend all her energies to solve it as soon as pos- 
 sible. 
 
 Before the war the economical and financial condition 
 of Italy was good and tended to constant improvement. 
 The 3!/2 P er cent Government bonds were quoted above 
 par. Fifty-seven per cent of the paper currency was 
 covered by the gold and silver reserve, and the lire was 
 at a premium. 
 
 But serious as present conditions may be, the produc- 
 tive energies of Italy have not been destroyed by the 
 war is responsible for a great development in Italian 
 industries, which are now being rapidly placed on a peace 
 basis, and are being built upon strong foundations. 
 
 The principal factors that materially affect fluctuations 
 in exchange are, as we have seen, the paper currency, 
 foreign debts, and the unfavorable balance of trade. 
 
 The paper currency of Italy, of the Government and of 
 the banks, is now 14,000,000 lire ($2,800,000,000) made 
 
THE INTERNATIONAL TRADE CONFERENCE 253 
 
 up as follows: 10,000,000,000 lire ($2,000,000,000) for 
 account of the Government ; and 4,000,000,000 lire ($800,- 
 000,000) for legitimate banking transactions. 
 
 A compulsory loan, which has already been decided 
 upon by the Givernment, will considerably reduce this 
 figure within a short time. 
 
 The export and import trade of Italy shows today a 
 very unfavorable balance for our country : 
 
 In 1915 2,170,000,000 lire ($434,000,000) 
 
 In 1916 5,300,000,000 lire ($1,060,000,000) 
 
 In 1917 5,400,000,000 lire ($1,080,000,000) 
 
 In 1918 8,000,000,000 lire ($1,600,000,000) 
 
 The measures now adopted to limited imports of raw 
 materials and of articles strictly necessary to the physical 
 and industrial life of the country will have their due 
 effect. 
 
 Before the war 1910-1914 the foreign trade balance 
 was against Italy and varied between 1,000,000,000 lire 
 ($200,000,000) and 1,300,000,000 lire ($260,000,000). 
 But this was more than met by the remittances of immi- 
 grants, and by the money spent by foreigners in Italy, 
 which, of course, ceased during the war. So we explain 
 the fact that, in spite of the heavy imports of coal, grain 
 and other raw materials, Italian exchange was then above 
 par. 
 
 We cannot say today to what extent Italy's monetary 
 balance will continue unfavorable, because it depends 
 partly upon the development of our foreign trade, partly 
 upon the payment of war indemnities owed by Germany 
 and Austria, partly upon the plan to be adopted for the 
 amortization of Italy's debts to the United States and 
 England and partly on the granting of long-term credits. 
 Nevertheless, although we cannot prophesy with cer- 
 tainty, there are certain facts from which we can obtain 
 a compresensive and approximate idea of the coming 
 situation. 
 
 Italy's total debt on July 1, 1919, amounted to 75,000,- 
 000,000 lire ($15,000,000,000), consisting of: 
 
 Internal debt 46,000,000,000 lire ($9,200,000,000). 
 
 External debt 19,000,000,000 lire ($3,800,000,000). 
 
254 THE INTERNATIONAL TRADE CONFERENCE 
 
 Government paper currency 10,000,000,000 lire ($2,- 
 000,000,000) . 
 
 The home debt will be partially reduced, as we have 
 seen, through an internal loan at a very low rate of in- 
 terest, and in this way not only will the paper currency 
 be diminished, but at the same time the liability of the 
 Government for interest on the public debt will be re- 
 duced. 
 
 It is worth while to point out that, during the war the 
 Italian Government has constantly met, by new taxation, 
 the payment of interest on its war loan. It will make 
 every effort not to abandon this wise plan in its future 
 policy. 
 
 The national expenditure for the fiscal year 1919-1920 
 is estimated at 9,000,,000,000 lire, and old and new tax- 
 ation will fully cover this amount. In this way the in- 
 ternal financial situation will be placed on a sound basis, 
 corresponding to the economic potentiality of the country. 
 
 The debt of Italy to foreign countries is approximately 
 as follows : 
 
 England 10,000,000,000 lire ($2,000,000,000). 
 
 United States 8,000,000,000 lire ($1,600,000,000). 
 
 Other nations 1,000,000,000 lire ($200,000,000). 
 
 As to the settlement of these debts, it should be remem- 
 bered that while France and Italy are both debtors to 
 England and France, England stands as a debtor to the 
 United States and as a creditor to France and Italy. 
 England is therefore in a very much better position. 
 
 The terms on which foreign war debts are to be repaid, 
 both as to principal and interest, must therefore be com- 
 mensurate with the resources of each country. It is 
 necessary for Italy to have long-term credits, besides 
 this, for the payment of imports of merchandise. 
 
 However, much Italy may decide to limit her imports 
 to the minimum required by her physical, industrial and 
 social needs, it will still not be possible for her to pay 
 for them in full until she is again producing grain and 
 other staples at the former normal, and until her export 
 trade has resumed and increased its former volume. It 
 
THE INTERNATIONAL TRADE CONFERENCE 255 
 
 should be remembered that it is not because the importer 
 is unable to pay that long-term credits are required for 
 the payment of imports. He has the cash in hand in- 
 deed, an excess of it. But the difficulty consists in con- 
 verting at present the lire into dollars and pounds ster- 
 ling without an extremely heavy and unnecessary loss, 
 and it is this conversion that it is essential to put off until 
 a more propitious time. 
 
 For a relatively effective and substantial relief of the 
 present exchange problem, Italy can, as I have said, rely 
 on Italians abroad, who now number about 6,000,000, 
 and who annually remit to Italy about 10,000,000 lire 
 ($2,000,000). 
 
 Even if we take into account the fact that Italian emi- 
 gration to the United States, owing to the war and other 
 restrictions,, will, perhaps, not find as large an outlet as in 
 the past, it is still true that the need of labor is felt in 
 America and that it will make itself felt everywhere. It 
 is, therefore, not over-rash to foresee that the Italian 
 laborer will eventually find abundant and useful employ- 
 ment in other countries. 
 
 Furthermore, we may expect that the money spent in 
 Italy by foreigners will reach for greater proportions 
 than before the war as soon as normal conditions are re- 
 stored. A careful estimate shows that before 1914 for- 
 eign tourists spent in Italy over $100,000,000 annually. 
 
 We thus see, that as far as foreign nations are con- 
 cerned, the two principal measures upon which the set- 
 tlement of Italy's exchange problem depends are the 
 following : 
 
 The payment of interest and principal on the foreign 
 war debts to be made at a convenient time, following the 
 official declaration of peace. 
 
 The granting of long-term bank credits on reasonable 
 terms for the payment of imports. So as to guarantee 
 the payment of said long-term bank credits, a syndicate 
 has recently been formed in Italy, of which the leading 
 Italian banks are members, representing capital and re- 
 
256 THE INTERNATIONAL TRADE CONFERENCE 
 
 serve amounting to $300,000,000, and holding deposits 
 for another $2,200,000,000. 
 
 If provision be not made to facilitate the payment of 
 imports from the United States, a tendency already man- 
 ifested here and there in Europe, will be accentuated, for, 
 in spite of a natural reluctance to resume business with 
 Germany and Austria, the merchant will be forced to 
 make his purchases in these countries where his own 
 money is at a premium, and where the price is conse- 
 quently lower than elsewhere. 
 
 Besides the factors above mentioned there is another 
 that has its influence upon exchange : Speculation. 
 
 Beyond the gold point, the price of exchange,, as I have 
 said, is affected, not only by material factors, but also by 
 psychological factors. The tendency of exchange deter- 
 mined by the combination of these ruling factors, may be 
 accentuated by speculation, which does not create, but 
 merely exaggerates the phenomenon. There is no doubt 
 that more or less legitimate speculation has had free play 
 since freedom of exchange was re-established. Other- 
 wise it would be impossible to explain the violent fluctu- 
 ations that European exchange undergoes these days in 
 relation to the dollar. These are graphically illustrated 
 in an accompanying chart. 
 
 If the money of a country forms a basis for estimating 
 its economic activities, reckoning the national wealth of 
 Italy at 200,000,000,000 lire ($40,000,000,000 at par 
 value) it would appear that its entire value in terms of 
 American money was on: 
 
 September 12, 1919, $22,372,000,,000. 
 
 September 16, 1919, $19,800,000,000. 
 
 September 18, 1919, $20,350,000,000. 
 
 Is this showing of the exchange rate rational ? Has it 
 a basis of fact? 
 
 Is it possible that in the short period of six days such 
 great changes should have actually occurred in Italy as to 
 justify fluctuations so violent and contradictory? How 
 great an effect speculation has on such fluctuations it is 
 not easy to say, but certainly it has had an influence. 
 
THE INTERNATIONAL TRADE CONFERENCE 257 
 
 Rebelling against the restrictions of the war, banks 
 and bankers immediately after the armistice, demanded 
 the restoration of a free exchange market, declaring that 
 the decline of exchange and the high cost of the dollar 
 would restrict imports and therefore automatically re- 
 store the equilibrium of the money market. 
 
 But if this war was correct in theory what have been 
 the results in practice ? 
 
 It is true that in the long run,, say in a period of two 
 or more years, the desired equilibrium will be restored. 
 But, in the meanwhile, is it right that the exchange 
 market, involved in inevitable difficulties, should be 
 thrown into yet further confusion by the reckless greed 
 of speculators? 
 
 The depreciation of its currency is a serious handicap 
 to the economic life of a country, but the frequent and 
 violent fluctuations of exchange are an even greater evil. 
 
 The importer must be in a position to rely on an ex- 
 change market of a certain stability, otherwise he will 
 have every incentive to turn commerce and industry into 
 a mere speculation. 
 
 It is, therefore, doubtful whether it was a wise pro- 
 ceeding to remove at once all restrictions on exchange 
 dealings. If steps are taken to restrain the vicious prac- 
 tices of hoarding profiteers in order to prevent the rise 
 in the price of foodstuffs and other commodities, why 
 leave in the hands of speculators, almost untrolled, the 
 rate of exchange which is the supreme regulator of 
 prices ? 
 
 The war has ceased on the battlefield, but it continues 
 in the field of economics and finance. Here the storm 
 still rages with no promise of abatement. It is an error 
 to assume that finance and exchange may be regulated 
 by the methods and standards of peace, only because 
 there are no more soldiers killing each other on the 
 frontiers. 
 
 A return to the monopolies and restrictions adopted to 
 regulate exchange during the war is perhaps impossible 
 
258 THE INTERNATIONAL TRADE CONFERENCE 
 
 today. But I believe that Interallied understandings 
 could be arrived at which would moderate speculation. 
 
 It is, of course, impossible to guess how long the econ- 
 omic disorders produced by the war will last, and when 
 the exchange situation will be restored to the normal. 
 There is no precedent in history for this war. Before it 
 the slaughters of Caesar and Napoleon pale in memory. 
 
 Still, there is one positive reason of hope for the future ; 
 the undreamed of energy and economic resources which 
 the people of the world revealed in the face of the crisis. 
 
 Bismarck, in 1870, thought that he had reduced France 
 to financial impotency for at least twenty years by impos- 
 ing on her a war indemnity of $5,000,000,000 francs ($1,- 
 000,000,000). But France paid her entire debt in about 
 three years and within two decades loaned Russia far 
 greater sums. 
 
 Spain, on the brink of bankruptcy after the Spanish- 
 American war, in 1898, completely re-established her 
 financial position in a little over ten years. 
 
 These precedents are not recalled to deduce from them 
 a prophecy of an easy and quick return to normal con- 
 ditions. The economic crisis and, tests that must be met 
 as an effect of the war are full of difficulties, but we have 
 a growing assurance that Italy, just as she won the vic- 
 tory of war will also win the victory of peace. 
 
 Gentlemen, the bare facts of figures eloquently describe 
 the situation and the task to be accomplished. But the 
 Italian people,, which is already setting to work with re- 
 newed energy, is determined to restore the economic 
 status of the country and insure its future economic 
 prosperity. 
 
 The Chairman: We have heard today from the repre- 
 sentative of the Secretary of the Treasury, that is, from 
 the Government. We have heard from the representative 
 of each of the foreign commissions. We will now hear 
 from the representative of the bankers of this country. 
 The speaker is one who is well known to most of you. 
 At one time he was the President of the American Bank- 
 
THE INTERNATIONAL TRADE CONFERENCE 259 
 
 ers' Association. He is now the President of one of our 
 very prominent banks. I beg to present to you Mr. F. 0. 
 Watts, President of the First National Bank of St. Louis. 
 
 Address of F. O. Watts, 
 
 President of the First National Bank in St. Louis. 
 
 The evil effects of the World War are so evident that 
 many are prone to neglect the good results which promise 
 to come from it. This visit of our friends with whom 
 we had the honor to be associated in the titanic struggle 
 for the maintenance of human freedom and representa- 
 tive government, serves to remind us that the foundation 
 structure of liberty and fraternity has been greatly 
 strengthened during the trying experiences of the past 
 five years. It also augurs much for the future coopera- 
 tion of all enlightened people in advancing the world's 
 civilization. 
 
 Cooperation is becoming the keynote of the 20th cen- 
 tury, but in emphasizing this social device, we are but- 
 tressing the one method by which man has advanced 
 from his savage to his civilized state. The mutual ex- 
 change of ideas, the frank and friendly criticism of op- 
 posing thoughts, and the adoption of the resulting com- 
 promise, has been the method of human advancement 
 from the tribal council of the primitive state to the parlia- 
 ments of civilized man. 
 
 We were, therefore, glad to extend to our friends a 
 cordial welcome, for we knew that they would frankly 
 discuss with us their problems as they understood them, 
 and they do not need any further evidence of our good 
 will and kindly sentiment toward them. They come from 
 the land of our forefathers, and we are bound to them 
 by the ties of human relationships, of inheritance, of 
 trading and of finance. They have afforded us the model 
 
260 THE INTERNATIONAL TRADE CONFERENCE 
 
 for many of our social, political and business organiza- 
 tions. When the crisis came to their people, we were glad 
 to remit to them in the nature of a deferred payment the 
 debt of obligation which we owe. And we are happy to 
 extend to them whatever additional aid that may be nec- 
 essary to restore their normal social and industrial life. 
 
 The ties binding us together are the product of the 
 centuries of association, and though the subject under 
 discussion, namely, the extension of credit, is one of busi- 
 ness character, and, therefore, one which they wish to be 
 treated as such, nevertheless the sentiments existing be- 
 tween the people of the United States and those repre- 
 sented by our welcome guests, do affect the business 
 practice called credit. The people of these war-devastated 
 countries do not ask for alms, for, as Baron de Neuflize 
 states: "France does not want charity and does not ask 
 for it. It is a business proposition. It is as such that we 
 ask the American people to look into it." They have not 
 only this fund of self-respect and self-reliance, but also a 
 large equity in tangible property as a basis of credit. The 
 people of England, France, Belgium and Italy still live. 
 The sun still shines on their fertile fields. Their mines 
 still contain the coal and other metals as before the war. 
 Their peoples are patriotic, disciplined, and believers in 
 law and order. Despite the demoralization of the war, 
 they realize that human society has never functioned, 
 and never can function without law and order, the foun- 
 dation of all civilization and human progress. The peo- 
 ples of these countries have been industrious and thrifty 
 for centuries of experience in organizing and operating 
 industrial and financial institutions, and have built up 
 all the complicated business machinery for domestic in- 
 dustry and foreign trade. And this patrimony, this heri- 
 tage of the ages, and product of their own industry, they 
 are prepared to make still other sacrifices to maintain 
 in order that it may be handed on in undiminishing glory 
 to their children and their children's children. 
 
 The American investor will, therefore, not only con- 
 sider the tangible assets of the government's guarantees 
 
THE INTERNATIONAL TRADE CONFERENCE 261 
 
 which they may be able to offer as bases of loans, but 
 they will also consider those intangible resources which 
 reside in the character of the people. 
 
 Baron de Neuflize has written that "There is no doubt 
 there are at least one million Americans who would gladly 
 take one French bond of $100 or more," and "I am per- 
 fectly confident," he continues, "that those who want to 
 help us out of sympathy today will find out promptly with 
 true American insight that it is at the same time good 
 business." 
 
 Whatever may be the sum which could be supplied on 
 the above basis, there is no doubt that there are not a few 
 investors in our country who are prepared to loan their 
 funds on a basis, partly of actual security, partly of good 
 will and partly on a basis of their confidence in the ulti- 
 mate prosperity of the people of France, Belgium, Italy 
 and other European nations. 
 
 The resources of Europe are very great and being 
 wisely handled will pull Europe out of its difficulties. But 
 we must not reckon these difficulties lightly. Against the 
 assets there are heavy liabilities. Finance and currency 
 are in grave disorder in most of the countries of Europe. 
 The volume of production is low, imports have been enor- 
 mous and exports have been small. The burden of debt, 
 both internal and external, is very great and the volume 
 of taxation is far from adequate to meet the existing con- 
 ditions. 
 
 The European currency situation is distressing. It is, 
 of course, closely linked with the public finances of the 
 Government. The gold redemption in all belligerent coun- 
 tries of continental Europe was suspended when the war 
 began, and they went at once on an irredeemable paper 
 money basis. The value of irredeemable money is at best 
 an uncertain thing. Sound currency divorced from imme- 
 diate redemption, directly or indirectly, in precious metals, 
 is an impossible thing. The value of such currency goes 
 up and down with the credit of the government, and the 
 prospect of redemption in gold. If the volume of such 
 paper money is very great the prospect of gold redemp- 
 
262 THE INTERNATIONAL TRADE CONFERENCE 
 
 tion becomes remote, and the value of the paper is at the 
 mercy of speculation, rumor, political occurrences and 
 social agitation. 
 
 The evils of unsound currency are very great. We in 
 America believe in the gold standard. We fought for it 
 in 1886. We well remember the vigor of that campaign. 
 In 1913, however, the Democrats and Republicans alike 
 combined in writing the gold standard into the Federal 
 Reserve Act. We felt that the world's monetary prob- 
 lems had been settled and that monetary heresies of the 
 greenback or free silver type would plague us no more. 
 The next decade, however, promises to bring the greatest 
 crop of monetary heresies with which we have yet con- 
 tended. Already they are appearing. The bankers must 
 be alert in meeting them. The gold standard throughout 
 the world must be restored at the earliest possible date. 
 
 When debts and credits run in terms of gold coin, of 
 fixed weight and fineness, men know where they stand. 
 When, however, debt runs in terms of irredeemable paper 
 money, uncertainty and risks are introduced into every 
 business transaction. Some of the demoralization of in- 
 dustry in Europe today is due to unsound money. 
 
 I turn now to the abnormal movements of exports and 
 imports, a movement which is rapidly increasing Europe's 
 external debt and multiplying her difficulties. This one- 
 sided flow of goods has been the occasion of great jubila- 
 tion on the part of certain short-sighted enthusiasts in 
 America. It has drained our markets of goods; it has 
 forced our cost of living very high; it has made oppor- 
 tunity for great speculative profits by dealers in commodi- 
 ties; it has led to speculation in farm lands on the part 
 of those who do not see that the prices of farm products 
 are abnormal and who expect them to continue forever. 
 
 It is wholly unhealthy. It is abnormal and it will not 
 last. If Europe is to remain solvent, her exports must 
 increase and her imports must dimmish. If Europe is 
 ever to pay her debt to us, she must send us more, and 
 we must send her less goods. 
 
 From the entrance of the United States into the war 
 
THE INTERNATIONAL TRADE CONFERENCE 263 
 
 down to about June of 1919, this export balance was 
 financed chiefly by loans made by the United States 
 Government to the governments of Europe. 
 
 I need not explain to this audience that what is sold 
 must be paid for and that international trade payments 
 can be made only by gold, by goods, or by credit. We 
 have already got from Europe all the gold we have any 
 use for, and all that she can spare. We have already 
 extended to Europe credits which stagger the imagina- 
 tion. Any approach to normal conditions means that 
 Europe must send us goods, and must send us more goods 
 than she draws from us. For a time we shall need to 
 give her further credits to enable us to revive her pro- 
 ductive power so that she may send us goods, not because 
 we need markets for goods, but because she needs those 
 goods for her rehabilitation. 
 
 When Government credits cease to be used on a con- 
 siderable scale in financing exports to Europe, the burden 
 of Europe's short time indebtedness to the United States 
 became too great for the exchanges to bear. In America, 
 franc bills, lire bills, sterling bills and the like piled up 
 in enormous volume in the exchange markets in New 
 York, while Americans needing such bills were few. The 
 supply was so great, and the demand was so small that 
 the exchange markets underwent a collapse. The depre- 
 ciation of most European exchanges has been unthinkably 
 great on the basis of anything in the history of those cur- 
 rencies before the armistice. It is not certain, even yet, 
 that many of the exchanges have gone low enough to 
 measure the extent of internal depreciation of European 
 money. In explaining the exchange situation we must 
 not look at imports and exports alone. Even though ex- 
 ports and imports were balanced, the exchanges would 
 still be depreciated because the currencies of Europe have 
 depreciated internally. 
 
 Our problem here, then, is not, as many think, to bring 
 exchanges to par. Efforts to do this would merely inten- 
 sify Europe's troubles. Our problem is rather to give 
 Europe aid in such form as will assist in making her ex- 
 
264 THE INTERNATIONAL TRADE CONFERENCE 
 
 port trade revive. It is essential for Europe to receive 
 certain exports from the United States. It is almost 
 equally essential that Europe should cease to receive ex- 
 ports from the United States which she does not impera- 
 tively need and for which she cannot afford to pay. 
 
 What is the extent and what is the nature of Europe's 
 needs? Europe has had far too much in the way of goods 
 from us since the armistice. We have sent her a rela- 
 tively small percentage of raw materials. The great bulk 
 of our exports have been finished manufactures and foods, 
 articles for immediate consumption rather than those 
 which could be used in further production. Luxuries 
 should not go and many of the goods which we consider 
 the comforts of life are of doubtful advantage. Food in 
 adequate quantities Europe must have. Raw materials 
 Europe must have. Our French friends tell us that they 
 do not expect or need machinery. They plan to produce 
 rails for export. They plan to produce locomotives. As 
 far as possible Europe should produce her own manu- 
 factured goods and should produce manufactured goods 
 for export. No doubt considerable machinery is needed 
 by certain of the countries to the east of Germany, where 
 the destruction has been great and where establishments 
 for producing machinery are less adequate and in less 
 satisfactory condition. 
 
 The effect of our abnormal export trade upon American 
 business has been bad. It has forced up commodity prices. 
 It has led to intensive activity on the part of those indus- 
 tries supplying goods for immediate consumption and it 
 has led to depression in other industries which supply 
 long-time goods. The building trade has been heavily 
 depressed, and we are now short of housing facilities. 
 Rising cost and the difficulty of procuring labor have ham- 
 pered our railroads and public utilities. Household re- 
 serves of linen, china, clothing, furniture and the like are 
 far below what they were in this country before 1914. 
 
 We have suffered from shortages and our physical 
 wealth has been depleted. The abnormal demand has 
 brought tension in our labor market which has led to 
 
THE INTERNATIONAL TRADE CONFERENCE 265 
 
 overtime work, rapid turnover of labor, growing inef- 
 ficiency and rising labor costs ; while the labor unrest has 
 been complicated by the rising cost of living. A reduc- 
 tion in our so-called "favorable" balance of trade, with 
 the throwing back on our markets of $300,000,000 or more 
 per month of goods which were destined for export, re- 
 lieving the tension in our markets, reducing our cost of 
 living and freeing labor for the building trade and for 
 other necessary purposes in the United States, will be a 
 blessing rather than a disaster. 
 
 We need our capital at home. We need commodities at 
 home. We hope and expect to give Europe what she must 
 have for her rehabilitation, but we must not do so with 
 the thought that in maintaining our abnormal export 
 trade we are doing ourselves a service. Rather we are 
 making a sacrifice. We must consider carefully how 
 much we can afford to spare and how much Europe really 
 requires. 
 
 Reducing the problem however much we may, there is 
 a minimum which Europe must have which will run into 
 large figures. How are we going to solve this problem? 
 It has both its European and American side. On the part 
 of Europe it involves work, thrift, taxation and currency 
 reform, with an effort to return to the gold standard. 
 Work is basic. The imposition of taxes to revive the 
 credit of the states, and to impose thrift on the people, 
 is essential. Extravagance has run wild throughout the 
 world since the armistice. Work, thrift and taxation are 
 unpleasant words to hear, but the heart of the matter lies 
 in them. No financial legerdemain, no manipulation of 
 printing presses can take the place of these three funda- 
 mentals. 
 
 On the side of the United States we have intricate 
 problems. During the war we supplied goods to Europe, 
 and our Government, backed up by the enormous re- 
 sources of the United States, and the unshakable sup- 
 port of the people, got money through taxes and Liberty 
 Bonds and loaned that money at low rates to our Euro- 
 pean Allies. It is the expectation that in the future the 
 
266 THE INTERNATIONAL TRADE CONFERENCE 
 
 Government will play a role in these matters, and the 
 work of providing Europe with money is to be done by 
 private agencies. Certain legislation is needed. We here, 
 who have examined the situation, are of the opinion that 
 it is time to become active on the basis of such plans as 
 provided by the Edge Bill, and we believe that this legis- 
 lation should be speeded up. We are ready to act. 
 
 If the main work is to be one for private agencies, what 
 are the private agencies concerned? We find our ex- 
 porters looking to the banks, and they are desirous that 
 the banks should provide credits to finance the exports in 
 such a manner as to relieve the exporters of all liability, 
 a proceeding which would require the bankers to tie up 
 their funds in long-time advances. Our European friends 
 have made clear to us that it is impossible to separate the 
 long-time and short-time requirements at the present time 
 and any funds advanced them today for rehabilitation 
 purposes must be long time. 
 
 Under ordinary conditions bankers might very well 
 make advances for the shipment of cotton, since the cot- 
 ton would speedily be manufactured and sold, which would 
 provide funds with which the bankers could be repaid. 
 Even in this case bankers would not make such advances 
 directly to Europeans, but would expect to make loans 
 through their customers and expect to receive their cus- 
 tomers' contingent liabilities. But our friends from 
 Europe insist that at the present time even advances for 
 the purchasing of raw material cannot be repaid in dollars 
 at an early date. Whether the funds are advanced for 
 raw materials or for reconstruction of railroads, they 
 must be on long time. Such advances bankers cannot 
 properly make. Bankers deal in other people's money. 
 They hold deposits subject to check. They must keep 
 their assets liquid, so that they may meet demand obli- 
 gations. Our friends from Great Britain and France 
 have both insisted on this. The British bankers have 
 stated that they do not make advances in connection with 
 financing of foreign trade except through their own cus- 
 tomers, that they maintain their customers' contingent 
 
THE INTERNATIONAL TRADE CONFERENCE 267 
 
 liabilities throughout. Our friends among the French 
 bankers emphatically state that it is not the function of 
 bankers to give long-time advances or long-time guaran- 
 tees. The main burden, therefore, cannot fall upon the 
 banks. If, then, the bank cannot relieve the exporter of 
 the financial problem, can the exporter, or producer and 
 exporter combined, make the advance on long-time credit 
 to European customers? The answer is, for most of 
 them, that the limit would soon be reached. If they tie 
 up their capital in such advances, they would soon have 
 no working capital left. Some of it they can do, but not 
 enough to help greatly. The banks can make advances 
 for a considerable part of the export trade, that part, 
 namely, which is offset by imports, but the excess or 
 balance of trade they cannot, as banks, take care of. The 
 exporter and the producer are active business men who 
 can spare only a part of their capital. 
 
 By elimination, therefore, we are driven back to the 
 investor, the man has idle funds which he can afford to 
 place on long time, the man who is interested in an in- 
 come from his funds rather than in the active employ- 
 ment of his funds. How can we reach the investor. We 
 cannot go to him and say that he should place his money 
 at risk in foreign lands in order that exporters and others 
 should make profits by selling goods in these foreign 
 lands. We must provide margins to protect him from 
 risk. We must, in addition, offer him interest at rates 
 sufficiently attractive to make it worth his while to pro- 
 vide the funds. 
 
 The United States has long been a borrowing country. 
 With great undeveloped resources and rapidly growing 
 population, we have been insatiable in our demand for 
 capital. But opportunities for investment at high return 
 in Western Europe have long been scarce, and a surplus 
 of capital seeking foreign investments at higher rates 
 has predominated for a century down to the outbreak of 
 the war. Europe has been used to a low rate at home, 
 and it comes with a distinct shock to many of the finan- 
 ciers and industries of Europe, to learn that higher rates 
 
268 THE INTERNATIONAL TRADE CONFERENCE 
 
 must be paid in the United States. The rule is that in- 
 terest rates in rapidly growing countries are high, and 
 that in rich and well-developed countries they are low. 
 
 Further than this, a borrowing country must expect to 
 pay more for money obtained in a foreign country than 
 the rates ruling in the loaning country. An investor nat- 
 urally prefers to place his funds at home. Interest rates 
 and security being equal, he will invest at home. He will 
 invest with corporations with whose personnel he is ac- 
 quainted, and with whose operation he is familiar. He 
 will do this although the domestic security be less secure, 
 because he knows the risk of the domestic enterprise. It 
 is, therefore, an inevitable economic fact, that a borrow- 
 ing country must pay more than the market rate for 
 money on a large scale. We ourselves did this in borrow- 
 ing from Europe before the war. The situation is now re- 
 versed, and we must reckon with that fact. 
 
 Further, there is a great world-wide scarcity of capital. 
 The world has devoted its energies for the past five years 
 to the destruction of capital. Europe has done it, and we 
 have done it. Instead of building railroads, we have been 
 manufacturing explosives ; instead of maintaining and im- 
 proving our public utilities we have been making cannon, 
 instead of building dwellings, we have been building fac- 
 tories for the manufacture of airplanes. There is, there- 
 fore, an unprecedented demand for capital in the United 
 States, and interest rates on long-time investments are 
 therefore correspondingly high. The rates, which must 
 be offered American investors, therefore, in connection 
 with European investments must be high enough to tempt 
 the additional saving, which will be required if America 
 is to supply capital both for her own and European needs. 
 High rates on long-time European investments are the 
 sure means of making the supply of capital adequate. If 
 we want the investor to save more than he is now saving, 
 we must offer him additional inducement to do so. 
 
 We must then reach the investor. We must offer him 
 adequate security and adequate interest. How are we 
 going to do it ? 
 
THE INTERNATIONAL TRADE CONFERENCE 269 
 
 There is no one method. There will be no single agency. 
 One method along which we may proceed, however, would 
 be based on the following principle : 
 
 We might organize corporations under the Edge Bill, 
 assuming that that legislation is completed in time, and 
 in satisfactory form. The capital of these corporations 
 will be provided in part by bankers, but in the major part 
 by exporters and producers of goods for export. While 
 it is recognized that exporters and producers of goods 
 cannot bear the whole burden, it is proper that they, as 
 the ones who are to make the greatest profits should pro- 
 vide the major part of the margin of capital which bears 
 the first risk. These corporations will advance loans to 
 business men in Europe, taking their obligations from 
 them. They will expect to have the guarantee of Euro- 
 pean governments and municipalities for these obliga- 
 tions, and they will expect that the European beneficiaries 
 of the loans will provide a substantial proportion of the 
 dollars required to finance the export of goods from other 
 sources. If, for example, one hundred thousand dollars' 
 worth of cotton were to be exported, under these princi- 
 ples the Edge Bill corporation will not be expected to loan 
 the whole one hundred thousand dollars, but, say, eighty 
 thousand dollars, leaving the European importer to find 
 twenty thousand dollars from other sources. The Edge 
 Bill corporation will then issue its own debentures to the 
 American investor. These debentures will have a mar- 
 gin of protection in the capital of the Edge Bill corpora- 
 tion. Thev will have an additional margin of protection 
 in the dollars provided by the European producer of each 
 shipment of goods, secured outside the Edge Bill corpora- 
 tion. They will be protected by the general assets of the 
 European borrower. They will be protected by the guar- 
 antees of the European governments or municipalities. 
 Thus protected, and with attractive rates of interest, they 
 can be sold to the American investor in very substantial 
 amounts. In selling them, we shall make large use of the 
 existing bond selling machinery. 
 
 We shall offer them as sound investments and would in- 
 
270 THE INTERNATIONAL TRADE CONFERENCE 
 
 vite their purchase as good business. And we shall find, 
 powerfully supplementing this business appeal, a great 
 fund of loyal sentiment upon the part of our people to- 
 ward our friends in Europe. 
 
 But there is no one magic recipe which can be offered as 
 a solution, and least of all, one supplied by governmental 
 authority or action. We are here dealing with the funda- 
 mental economic principles with their unalterable causes 
 and effects, which transcend all powers of the most pow- 
 erful governments. The normal economic process of the 
 world has been interrupted, and just in that proportion 
 that these fundamental forces have been disturbed, so 
 will the period of complete recovering be postponed. The 
 world, so to speak, has been very ill. It has been a rav- 
 ing maniac. Its recovery will be slow and its mental proc- 
 ess become normal only after the memory of the horri- 
 ble nightmare has in part been forgotten. We must slow- 
 ly gather together the bits of broken furniture, replace 
 the household goods, and establish our peaceful domestic 
 and industrial household. 
 
 The governments of many countries have been sorely 
 taxed to meet the great problems which have confronted 
 them during the past five years. In some quarters the 
 present social, economic and political organization is be- 
 ing attacked. Is it wise to complicate further the prob- 
 lems of our governments and perhaps place in still greater 
 jeopardy the prevailing economic and social organization 
 by looking to the government alone to work out a solu- 
 tion, which, if left to its citizens, would in due time and 
 season be solved so far as there is any final, complete and 
 important solution for such a complex situation? 
 
 In Europe, new states have been formed with peoples 
 who have not had the responsibility and experience in 
 conducting a political society. New political forces have 
 arisen in the old nations and the alinement of these forces 
 has radically changed in the new, as well as in the old 
 countries. Political ferment is at work in most sections. 
 Industrial and economic activity and prosperity must al- 
 ways presuppose political peace and security. 
 
THE INTERNATIONAL TRADE CONFERENCE 271 
 
 A second factor affecting the problem is the labor situ- 
 ation. Labor has been advancing to a greater 
 position of power in our own and all European 
 countries, and the war has greatly accelerated this move- 
 ment. It is now a question whether labor can use its own 
 interest, and at the same time keep up production and 
 produce that surplus of goods for exchange with other 
 peoples, or whether there will be a general slowing up of 
 industrial activity, resulting in either no net increase in 
 goods, or in an actual drawing upon the past accumulated 
 stock of capital. Those who labor either with hand or 
 head must realize that only an honest day's work will re- 
 ceive either for them or for their fellow men that pros- 
 perity and well-being which all wish, but which cannot in 
 any mysterious manner be supplied by government or by 
 any other socially constituted organization. 
 
 It is, therefore, desirable that no artificial or forced re- 
 sumption of industrial life be attempted, for such is 
 neither possible nor advantageous. There is already some 
 evidence that in many of these European countries, the 
 threads of normal industrial activity are being taken up 
 as a result primarily of the activities of normal individ- 
 ual enterprise assisted here and there by the govern- 
 ments. 
 
 Both for the final good of the European people, as well 
 as our own, the normal basis of all profitable trading 
 should be resumed as quickly as possible. That is, there 
 should be an exchange of goods for goods and not a con- 
 tinuation of forced trading based upon an extensive sys- 
 tem of credit. It is just as true now as before the war, 
 that the European nations can produce many goods which 
 we either cannot produce, or produce as cheaply and, 
 therefore, a mutually profitable basis of trade exists. The 
 people of the United States are becoming very much in- 
 terested in foreign trade and quite properly so. But, it 
 would seem that some of our people consider the end to 
 be achieved in foreign trading is always to sell, but never 
 to buy goods, seeking on the contrary an exchange of 
 goods for money. 
 
272 THE INTERNATIONAL TRADE CONFERENCE 
 
 The items food, raw materials, and industrial equip- 
 ments to rehabilitate her industrial machinery are the 
 pressing need of Europe. If they can be supplied, these 
 countries will, after a period, perhaps a longer one than 
 is popularly supposed, be in position to resume trading 
 with us on a basis somewhat approximating that which 
 prevailed before the war. However, this result will occur 
 only if we are willing to take goods from these countries 
 in payment for those commodities which we wish to ex- 
 port to them. Even the interest on the capital which we 
 have loaned to them must be received by us primarily in 
 goods. 
 
 We do not wish to be forced to meet that kind of com- 
 petition which is organized by a nation with political and 
 military ends in view, but we do not fear legitimate indi- 
 vidual business competition with our European friends in 
 which each trader seeks his own profits and the competi- 
 tion is based upon sound economic principles. We know 
 that we must buy from others if we expect to sell to them, 
 for we know that usually a rich neighbor is a good cus- 
 tomer. The European nations were our best customers 
 in the ante-bellum period, and we hope they will again 
 become so. 
 
 No nation, no more than an individual, can live unto 
 itself either socially or industrially. We wish to share 
 the burdens and responsibilities of the world with other 
 nations. 
 
 The ships of state have for many days been tossed 
 about by the waves of an angry sea, and now that the 
 storm has subsided, we look about with anxious eyes for 
 ports of safety. May we all find a secure haven and 
 never again set sail upon so perilous a voyage. 
 
THE INTERNATIONAL TRADE CONFERENCE 273 
 
 CLOSING SESSION. 
 FRIDAY, OCTOBER 24. 
 Mr. Bedford, in the chair, said: 
 
 Gentlemen: We have come to the final closing session 
 of our gathering. The day has been spent in finance and 
 the consideration of that all-important question that re- 
 lates to the problems with which we have been con- 
 fronted and which we have been discussing so earnestly 
 with our friends from abroad. Tonight the problem is to 
 be discussed further in one address, the first address of 
 the evening. I have the honor of introducing to you the 
 Governor of the Federal Reserve Board of the United 
 States. You who come to us from overseas are doubtless 
 aware that we have nothing in this country exactly cor- 
 responding to the Bank of England or the Bank of 
 France. In many experiments and after most careful 
 study, especially of the financial experience of Europe, 
 our country a few years ago brought into being what is 
 known as the Federal Reserve System. The central 
 design of this plan was to create the flexible banking sys- 
 tem which should,, as nearly as might be possible, place 
 at the disposal of the commerce of the United States as a 
 whole the credit resources of the country as a whole. 
 We were not a minute too soon in bringing this plan into 
 being for it has served as the mighty bulwark for our 
 country and for the world as a whole in mobilizing the 
 credit resources of the nation in behalf of our war financ- 
 ing. The extraordinary facility with which our country 
 was able to float some twenty billion dollars in Liberty 
 Loans was in no small measure due to the strength and 
 adaptability of our Federal Reserve System ; and now, as 
 we enter the era of reconstruction, our Federal Reserve 
 System will necessarily be the keystone of our financial 
 arch. The extension of foreign credits of this country 
 will henceforth doubtless be upon private initiative, but 
 
274 THE INTERNATIONAL TRADE CONFERENCE 
 
 in order to accomplish great results it will be necessary 
 at all times to have the encouragement and cooperation 
 of the Federal Reserve System. The function of this 
 system as the ultimate citadel of rediscount is of para- 
 mount importance in any plan involving the extension 
 of large credit. 
 
 Since the establishment of a Federal Reserve System 
 we have had at its head a man of great sagacity, sound- 
 ness of mind and courage. The building of this gigantic 
 structure, of necessity becoming practically overnight 
 the bedrock, foundation stone in a huge and complicated 
 banking system, created for Governor Harding and his 
 fellow members of the Federal Reserve Board, difficul- 
 ties which has seldom had to be met by financiers. That 
 these difficulties were overcome, however, and that the 
 Federal Reserve System is already well established as a 
 dependable anchorage for national competence is due in 
 no small measure to the conservatism and vision with 
 which the activities of this institution have been guided 
 from its very outset. It is, therefore, with peculiar pleas- 
 ure and satisfaction that we shall now have the honor 
 of listening to Hon. William P. Harding, Governor of the 
 Federal Reserve Board. 
 
 Address of Hon. William P. G. Harding, 
 
 Governor of the Federal Reserve Board. 
 
 Mr. Chairman, Members of the Conference, Ladies and 
 Gentlemen: My colleagues of the Federal Reserve Board 
 and myself have been intensely interested in the prob- 
 lems which you have been discussing during your sessions 
 this week and we all regret exceedingly our inability to 
 be present in order that we could get the benefit of these 
 discussions,, but our duties are such that we are not al- 
 ways the masters of our own time and this last week has 
 been an unusually busy one even for the Federal Reserve 
 Board. I am exceedingly pleased, however, to be able to 
 
THE INTERNATIONAL TRADE CONFERENCE 275 
 
 be here tonight and to extend to you on behalf of my col- 
 leagues and myself our belated greetings to those gentle- 
 men who have come across the Atlantic to discuss these 
 problems with you, the proper solution of which means 
 so much to you and so much to us. 
 
 Although we are separated by 3,000 miles of ocean 
 our recent associations, our improved methods of trans- 
 portation, our business interests have brought us very 
 closely together and your problems, gentlemen, from the 
 other side of the ocean, are very similar to ours on this 
 side. We can join you in a full appreciation of the fact 
 that the problems and perils of peace, of reconstruction 
 and readjustment are almost as difficult and dangerous, 
 although in a different form, as the problems and perils 
 of war itself. We are suffering in this country just as 
 you are suffering in Europe from a new malady or a com- 
 plication of diseases. I shall discuss, however, tonight 
 only one form of the trouble. 
 
 The great war that snuffed out the spark of life of over 
 seven and one-half millions of men, destroyed billions of 
 dollars' worth of wealth, real wealth ; not gold or the rep- 
 resentation of gold in paper currency,, but goods, com- 
 modities which are needed for everyday life. Goods are 
 the world's real wealth and the world today is suffering 
 from the shortage of goods. There is no proper propor- 
 tion between the volume of credit and the volume of goods 
 either in this country or in the old world. Your situa- 
 tion, of course, in that respect is not as favorable as our 
 own because you on the other side bore the brunt of the 
 war and were engaged in that struggle for two years and 
 a half before we entered it to take our place at your side 
 and owing to your large purchases during those years we 
 necessarily received some material benefit growing out of 
 your own wants and necessities. We are passing through 
 a period now in this country of relaxation from the war 
 regime. We could not look the facts in the face without 
 confessing candidly that we have been extravagant dur- 
 ing the past year. We have not produced enough, we 
 have spent too much. One of our needs is greater pro- 
 
276 THE INTERNATIONAL TRADE CONFERENCE 
 
 duction and smaller consumption. We ought to apply the 
 principles of the only doctrine that is going to work us out 
 of our present difficulties, the great principle of work and 
 save. There must be conservation both of capital and 
 credit in order that an adequate supply of each may be 
 available for the process of production and distribution. 
 But, unfortunately, the only kind of conservation in evi- 
 dence today is the conservation of productive energy. 
 Still, gentlemen, America has had its crisis; it has faced 
 other problems; it has overcome all dangers and diffi- 
 culties up to this good hour and I do not believe there 
 is a man in this audience that does not feel in the bottom 
 of his heart that America and the civilization of Europe 
 is going to be preserved on the same high standards 
 which have already been set. 
 
 We in America produce normally a surplus of essen- 
 tial commodities for exports. We have our great crops 
 of grain and of cotton; we have the products of our 
 mines, coal, fuel, oil; we have copper and metals of all 
 kinds, most of which you need in your present circum- 
 stances. 
 
 In considering our trade relations, gentlemen, I think 
 it important that we should apply a principle which we 
 all applied during the darkest days of the war, during 
 the time when we were exercising a discriminating judg- 
 ment between essentials and non-essentials. I do not be- 
 lieve it would be good policy for you in Europe,, or for us 
 in America to attempt to have you buy from us, partic- 
 ularly on credit, things that you do not actually need. It 
 so happens that those things which we produce normally, 
 exporting the surplus, are, in the main, necessities. 
 You need now on the other side machinery,, equip- 
 ment, raw materials in order that you may resume your 
 own normal activities; in order that you may employ 
 your idle people; in order that your production may be 
 brought back to a point where your countries will be self- 
 sustaining and where they, in turn, will have something 
 to send each other and to send to us. I am sure that we 
 are all interested in the figures relating to export trade. 
 
THE INTERNATIONAL TRADE CONFERENCE 277 
 
 The sharp discounts in foreign exchanges which have 
 been prevailing for some time past are the result of a con- 
 dition. We have been sending you more goods than you 
 are able to pay for either in cash or in commodities. 
 This condition is reflected in your foreign exchange. But 
 the very fact that your exchanges are low aid you in 
 sending goods to us. A condition of that kind helps the 
 American importer and makes the problems of the Amer- 
 ican exporter more complicated. Most of you have seen, 
 I have no doubt, the figures given out officially this morn- 
 ing regarding the exports and imports into the United 
 States during the month of September. Our exports 
 were $593,000,000; our imports $435,000,000, being an 
 excess of exports over imports of $158,000,000 which, by 
 the way, is the smallest excess of exports that this coun- 
 try has seen since September, 1917. Those figures, gen- 
 tlemen, have a meaning. I think they ought to be full of 
 encouragement to you on the other side and to us as well. 
 It is to our interest here in America to see Europe back 
 on her feet. We are met here to consider the ways and 
 means of helping you get back on your feet. I think it is 
 generally conceived that in order to enable our exporters 
 to continue their business, in order to enable them to sell 
 goods abroad, it will be necessary to extend longer credits 
 than can be granted by our commercial banks which have 
 deposit liabilities payable on demand. The Federal Re- 
 serve Banks, while they are intensely interested in all mat- 
 ters pertaining to foreign trade, are not equipped, and 
 not intended, nor are they permitted under the law, to 
 engage in transactions relating to long credits. No Fed- 
 eral Reserve Bank is permitted to discount any paper 
 having a maturity longer than 90 days to run with the 
 single exception of agricultural paper, or paper based on 
 live-stock may be discounted provided the maturity is 
 no longer off than six months. National banks may ac- 
 cept up to six months in transactions involving the im- 
 portation and exportation of goods, but the Federal Re- 
 serve bank can only rediscount an acceptance or buy an 
 acceptance when that acceptance is not further off from 
 
278 THE INTERNATIONAL TRADE CONFERENCE 
 
 its maturity than 90 days. Consequently, it becomes 
 necessary in the present situation to devise some other 
 financial machinery expressly designed to facilitate the 
 granting of the longer credits which are demanded in 
 the present circumstances. 
 
 Under Section 25 of the Federal Reserve Act, national 
 banks having a surplus of not less than $1,000,,000 are 
 permitted to establish branches in foreign countries or 
 they can subscribe an amount not exceeding ten per cent 
 of their own capital and surplus stock in corporations or 
 banks principally engaged in foreign banking. A num- 
 ber of these banks have been organized. One of our 
 largest national banks has a great number of branches 
 not only in South American countries but throughout 
 Europe. Those facilities coupled with the facilities af- 
 forded by these other banks of which a number of na- 
 tional banks are stockholders, encircle the entire world; 
 but these banks are not organized for granting long 
 credits. They deal in bills of exchange which they expect 
 to have paid at their maturity or perhaps one or two re- 
 newals. The great need in the present situation is for 
 some financial machinery through which these longer 
 credits can be established. We of the Federal Reserve 
 Board in our study of these problems reached the con- 
 clusion some time ago that financing foreign trade is es- 
 sentially an investment problem. The appeal must be 
 made to the investing public or America rather than to 
 the commercial banks. Congress, at the suggestion of the 
 Federal Reserve Board, some time ago passed a bill which 
 has been signed by the President and is now a law au- 
 thorizing National banks, regardless of their size, to sub- 
 scribe as much as five per centum of their capital and 
 surplus to stock incorporations engaged in some form of 
 financing necessary or conducive to building up our for- 
 eign trade. There is now pending in Congress a measure 
 known as the Edge Bill, which has already passed the 
 Senate and which was, on yesterday, reported in an 
 amended and improved form by the House Committee on 
 Banking and Currency. We hope that this measure may 
 
THE INTERNATIONAL TRADE CONFERENCE 279 
 
 soon become a law and we believe that corporations will 
 be organized under the provisions of this bill, when it 
 becomes a law, which will be very helpful in bringing to 
 Europe the goods that they need from this country, be- 
 cause they will enable Europe to get the credits for the 
 long time necessary. 
 
 In practice the provisions of the Edge Bill are about as 
 follows: I understand that Senator Edge himself ex- 
 plained it clearly to you the other day so I shall not at- 
 tempt to elaborate upon it. The principle is of Govern- 
 ment control. The Government itself does not propose, 
 as I understand it, to extend any further direct aid in 
 financing foreign trades. As you know, the Government 
 of the United States was authorized soon after it entered 
 the war, to make advances of about ten billions of dol- 
 lars to the countries which was associated with us in the 
 war. Nearly all of that vast sum has now been allotted 
 and used. Only a few hundred millions remain unused. 
 There is no disposition whatever,, that I have been able 
 to notice in Washington, to extend this war-time policy 
 of direct Government loans in a period of peace, and I 
 think that it is generally understood that future financ- 
 ing for foreign trade come as a result of individual enter- 
 prise and private initiative. The Government could not, 
 without a very harmful extension of an already neces- 
 sarily expanded credit situation, issue any more obliga- 
 tions for any purpose; nor could the banks, as I have 
 already explained, which have liabilities payable on de- 
 mand afford to tie themselves up with a large volume of 
 unliquid assets. 
 
 Under the Edge Bill it is proposed to organize corpo- 
 rations having a capital stock of not less than $2,000,000, 
 for the purpose of financing foreign trade and of pro- 
 moting that trade. These corporations will be authorized 
 to purchase foreign securities and make loans abroad. 
 They will be authorized with the approval of the Federal 
 Reserve Board in which body it is placed for supervision, 
 to offer its own obligations or debentures to the investing 
 public which are specifically secured by obligations which 
 
280 THE INTERNATIONAL TRADE CONFERENCE 
 
 they had already taken in their foreign trade trans- 
 actions. 
 
 America has loaned Europe ten billions of dollars. The 
 United States, which was not a bond-buying nation, has 
 subscribed over twenty-five billion dollars' worth of 
 Government securities since the 25th of April, 1917. Be- 
 fore that time there were only about three hundred thou- 
 sand men known as investors on the list of reputable 
 bond houses. There are now over 30,000,000 of Ameri- 
 can people, 30,000,000 men, women and children, who 
 know what a bond is, who have been subscribers for 
 issues of Liberty Bonds and of Victory Notes. Of course, 
 in placing that vast volume of securities, it was necessary 
 to appeal to the patriotic unselfishness of the American 
 people and that appeal was not made in vain. It met 
 with a magnificent response. But, gentlemen, we have 
 come now to that time when cooler considerations must 
 be taken into account. We cannot appeal to patriotism 
 in a matter of trade. While we love you abroad, our late 
 confreres in this great struggle; while we desire to help 
 you, you must realize that you must offer us a business 
 proposition. We believe that your external debt is 
 good every country's external debt is going to prove to 
 be good, in my judgment. We believe that you have 
 ample security to offer against any loan that you may 
 wish to raise in this country, but I want to call your at- 
 tention to the fact that while we have some very shrewd 
 and successful international bankers in this country; 
 while we have great banks of deposit and discounts which 
 have grown enormously during the past five years,, that 
 the transactions of our larger commercial banks in the 
 foreign field have been confined to the purchase of bills 
 of exchange drawn against documents; and the trans- 
 actions of our bond houses, as a rule, have been confined 
 to the placing of Government securities issued by foreign 
 nations and the placing abroad of private securities is- 
 sued by American firms and corporations. In other 
 words, gentlemen, our familiarity with the foreign field 
 has been in the other direction. Up to a very few years 
 
THE INTERNATIONAL TRADE CONFERENCE 281 
 
 ago we were more familiar in placing American securi- 
 ties in Europe than we were in placing European loans 
 and securities in America. Now we have got to educate 
 the people to it. The national bank is usually a leader, 
 a financial leader, in its community. The merchants and 
 the farmers of the community form the habit of going 
 to their trusted banker and asking his opinion and advice 
 about different financial propositions. We realized that 
 if it were sought to establish these new corporations to 
 engage in an unfamiliar field that it would be very neces- 
 sary to have the support and the influence of the banks 
 of the country, which includes the national banks. Some 
 of the state laws already permitted state banks to take 
 stock, but the national banks could not take stock in enter- 
 prises of this sort until Congress permitted them to do so 
 under the act which passed about a month ago. The 
 amount that the national banks can take is comparatively 
 small only five per cent of the capital and surplus 
 but the moral effect is there. As these Edge Bill corpor- 
 ations are organized it is supposed to interest the lead- 
 ing national banks of every community. It is supposed 
 to organize corporations which are particularly interested 
 in the export of some product in which that community 
 is vitally interested cotton, copper, coal, any of these 
 great staple articles. 
 
 There are a great many people interested in the free 
 outflow of the exports of the surplus of these commodi- 
 ties. If they find that, owing to exchange difficulties in 
 Europe it is impossible for that trade to flow freely they 
 will be in sympathy from the outset with any movement 
 which will tend to let these goods go abroad in their ac- 
 customed way. The proposition may be put up to a small 
 investor to take stock. The proposition looks good; but 
 he will go to his banker and say: "Well, what do you 
 think of this ?" If the banker is in a position to say : "I 
 think well of it and our bank is going to take stock in it 
 to the extent that the law allows," you know that that 
 banker's opinion is going to carry far greater weight 
 with his client than would be the case if the banker 
 
282 THE INTERNATIONAL TRADE CONFERENCE 
 
 merely said : "Yes,, we think it is all right ; we are not 
 going to take any stock in it; we can't." It is just the 
 difference, gentlemen, between "go on" and "come on." 
 
 We believe that a number of these corporations are 
 going to organize in various sections of the country under 
 the provision of the Edge Bill. Then the proposition 
 comes: What is that corporation going to do to replen- 
 ish its funds in order to keep in business after it has 
 loaned out its capital? These corporations will not be 
 allowed to receive deposits. They will not conflict with 
 the commercial banks in any way. It is proposed to allow 
 them to put securities in trust ; to issue their obligations 
 or debentures against those securities and go to the in- 
 vesting public. 
 
 Now, gentlemen from the other side, we have an in- 
 come tax in this country as well as you. Our people know 
 what high taxes are ; and in their investments they figure 
 on a net return. They have been accustomed to a higher 
 return than they were formerly accustomed to have. 
 Even our government four and one-quarter per cent 
 bonds are not selling at par. It is going to be necessary 
 for these obligations to be offered to the American people 
 on an attractive income basis. It may be six per cent ; it 
 may be seven per cent; I do not know. This is 
 what you must bear in mind: Here is something new. 
 We have got to introduce this system into this country. 
 We have got to inspire the confidence of the American 
 people. These securities must be absolutely good. We 
 are going to need the cooperation of the European bank- 
 ers who are skilled judges of credits on the other side. 
 They are familiar with these world transactions far more 
 than we are. We want your help and cooperation. We 
 may want your guarantees; possibly in some cases we 
 may want some kind of obligation of guarantee from 
 governments. It is just as important for you as for us 
 that these obligations be safe ; and the safer they are the 
 lower the rate of interest. But I do not want to create 
 any false hope that there is going to be any four or five 
 per cent, money floating around. We have got to look at 
 
THE INTERNATIONAL TRADE CONFERENCE 283 
 
 this in the cold light of business and bear in mind that 
 there is a great use of credit on this side. There has 
 been a great spirit of investment, of speculation if you 
 want to call it on this side. 
 
 The Government, however, is at least giving direct help 
 in one way. Congress has authorized the War Finance 
 Corporation, which has a capital stock of $500,000,000, 
 all owned by the Treasury of the United States, to ad- 
 vance an aggregate of not to exceed $1,000,000,000 in the 
 aid of foreign trade during a period of one year from the 
 official proclamation of the Treaty of Peace. Those 
 credits may run not longer than five years. My idea of 
 the aid that the War Finance Corporation is going to give 
 and the manner in which it is going to be given is about 
 like this I happen to be a director of the War Finance 
 Corporation, but I cannot say officially because we have 
 not had a meeting and decided definitely upon this pol- 
 icy my idea of what will be done is this: Assume that 
 there is a corporation organized under the Edge Bill for 
 the purpose of making some investments in Europe. 
 That corporation will come to the Federal Reserve Board 
 for permission to issue a certain amount of obligations 
 or debentures ; the Federal Reserve Board acting as kind 
 of a capital issue committee, not in any way recommend- 
 ing the investment as being safe, but merely recommend- 
 ing it as being legitimate and regular, the investor to de- 
 cide for himself as to its goodness, will authorize that 
 issue to be offered to the public. Then I think the cor- 
 poration will very naturally come to the War Finance 
 Corporation and say: "Here is $10,000,000 worth of se- 
 curities that we want to place which bears six or seven 
 per cent interest,." as the case may be, "we would like 
 to have you subscribe to this." I think the policy of the 
 War Finance Corporation will be the same as that pur- 
 sued during the war. It will not subscribe the whole 
 amount. It will part, say twenty per cent. That will 
 have a good moral effect because if a corporation could 
 go before the American investing public with its own 
 obligations backed by securities which are passed on by 
 
284 THE INTERNATIONAL TRADE CONFERENCE 
 
 a group of European bankers and recommended from 
 them as being first-class in every respect, the proceeding 
 authorized and the issue allowed by the Federal Reserve 
 Board and say twenty per cent of the issue taken in ad- 
 vance by another organization of the Government, the 
 War Finance Corporation, that will show at least that 
 the Government of the United States has some confidence 
 in the proposition and ought to enable the bond-selling 
 organization to place the balance of it with the people, 
 and in that way, gentlemen, +he $1,000,000,000 that the 
 War Finance Corporation may invest will go a very long 
 way. 
 
 The Chairman: Ladies and Gentlemen, I am sure you 
 have all been deeply interested, as I have been, in listen- 
 ing to this most intelligent and helpful address; and I 
 want to thank Governor Harding on behalf of the Cham- 
 ber of Commerce and the delegations from abroad for 
 his coming to us tonight from Washington. He has been 
 discussing this question from the viewpoint of a banker. 
 We have been discussing this question here not only from 
 the viewpoint of a banker, but also from the viewpoint 
 of the merchant. We have gone further. We have been 
 discussing the question as banker and merchant together 
 and we have all concluded that in it is also included the 
 American people, and I believe,, and I think you will be- 
 lieve that not only the conservatism of the banker and 
 the skill and shrewdness of the merchant, but the heart 
 of the American people has got to get into this thing. 
 
 Address of Hon. Myron T. Herrick, 
 
 Ex- Ambassador to France. 
 
 The Chairman: It has been a great disappointment to 
 us that Mr. Harry A. Wheeler could not be with us to- 
 night to address us on this particular subject, the im- 
 
THE INTERNATIONAL TRADE CONFERENCE 285 
 
 portance of which was so much impressed upon his heart 
 and in which he was so vitally interested. We are very 
 happy in having with us tonight one, while not taking 
 his place, has a place of his own in the hearts of all of 
 us. I know I do not need to introduce to you the next 
 speaker who, because of his great work during his resi- 
 dence abroad, his magnificent representation of the Amer- 
 ican people, has endeared himself not only to the hearts 
 of all his American friends and countrymen, but to those 
 in Great Britain, Belgium, Italy and France, the Honor- 
 able Myron T. Herrick, ex-Ambassador to France,, who 
 will address you. 
 
 Ladies and Gentlemen: You might now be going on to 
 your comfortable hotels, had I not been apprehended by 
 your Chairman as I was quietly leaving town. 
 
 I am especially pleased to have the privilege of saying 
 a word on the important subject of industrial business 
 organization. Knowing the financial chaos that exists 
 throughout the world we have been extremely anxious to 
 do something to stabilize credits and to re-establish (not 
 re-establish the credit system that existed before the war, 
 because that is now obsolete), but to recreate a system 
 that should again restore and stabilize the economic sit- 
 uation of the civilized world. That is what you gentle- 
 men from France, England, Italy and Belgium came here 
 to undertake, and how well you have done it! 
 
 Your preliminary statement indicates that there is 
 something over and above and higher than financial con- 
 siderations. It is conserving the fruits of this hard- 
 earned victory that cost so much of blood and treasure 
 and all but wrecked civilization. That is the meaning of 
 it. And I believe that when a system, in the wisdom of 
 men who will put not only their business intellect, but 
 their patriotism into the solution of it and have evolved 
 something, I believe that it will appeal to the American 
 people's patriotism as did our offer of Government bonds 
 in that crisis. 
 
 Why did 30,000,000 of patriotic Americans subscribe 
 
286 THE INTERNATIONAL TRADE CONFERENCE 
 
 to those bonds? Was it because it paid them three and 
 one-half per cent, or four per cent, or four and one-quar- 
 ter per cent when they could get eight or ten per cent in 
 those days? No. It was because they knew that this 
 country of ours, which we had so long struggled to build 
 here in this Western Hemisphere was good for nothing 
 if you failed, gallant men of Belgium, France and Italy. 
 That is why they did it. Our people are going to under- 
 stand very soon now, as they understood then, that if the 
 fruits of that victory do not moulder on the docks, as 
 they are in New York if what they have fought for and 
 what they have bled for is to be conserved they have 
 got to do something more than just barely to trade over 
 the bargain counter on these securities that you offer us. 
 That is what we want the people of the United States to 
 understand ; and it will take very little effort to have them 
 understand that an international system of credit is 
 necessary. We now know it is just as necessary as it was 
 to win the war, and we know now that the war could not 
 have been won had not America been there. She was 
 late, but she was there finally. Now let us profit by that, 
 and while Europe chafes and waits, and while commerce 
 is delayed, let us remember that we were late then and let 
 us be on time now. 
 
 We bankers ask: "What collateral have you?" That 
 is an automatic question when a loan is asked for : "What 
 collateral have you?" A great financier, one of the great- 
 est financiers that this country has known, said one time 
 in a financial conference : "I don't care what kind of col- 
 lateral a man brings to my desk,, if he has not got the 
 character to back it up I do not want his loan." Mr. 
 Morrow, who spoke to you last night, who sat at the feet 
 of that great financier and was a worthy student, told you 
 the same thing. That is axiomatic now throughout the 
 banking world and we understand perfectly that charac- 
 ter must back loans, so let's inventory our collaterals just 
 for a moment. 
 
 When the fire of the world fixed on little Beligum what 
 did she do? That is the standard of character which she 
 
THE INTERNATIONAL TRADE CONFERENCE 287 
 
 offers you as collateral. When France and England, all 
 unprepared and unbelieving that such a monstrous thing 
 could happen, rose to arms to meet this shock of war and 
 triumphed, did not they create some collateral upon 
 which you can base a loan ? Italy, the Italy of Garibaldi, 
 valiant Italy, which was allied to Germany in the begin- 
 ning of this war, but which, when she understood Ger- 
 many's fell and malevolent purpose, broke that alliance 
 and turned to the cause of righteousness, did not she cre- 
 ate a collateral that is good enough for America? If we 
 want to know what a nation will do in the future we only 
 need to ask what has it done in the past ; we need not go 
 back over the centuries of the history of these great na- 
 tions that have made civilization; we need only go back 
 over four and one-half years of their history to under- 
 stand what they will do in the future. What a nation has 
 done in the last four and one-half years is an earnest of 
 what it will do in the future. If they were honorable and 
 met their obligations,, that is all that is necessary. Why 
 even Germany understands that. 
 
 Now, this deeper significance lies in the fact that we 
 must quickly understand that the machinery has to be 
 recreated, it has to be new, and we love to make new 
 machinery. Why, the Federal Reserve Board, so worthily 
 represented here, came in the nick of time. It was a new 
 order of things. We have got to create a new order of 
 finance, but oh, what wonderful collateral you gentlemen 
 have to give us ! It is splendid, and we have not a doubt 
 about it. As Mr. Harding said, each one of us has his 
 problems. There are many unspoken thoughts in this 
 Convention, many forebodings as to the future, but we 
 are a nation, as are your nations, gentlemen, of hope and 
 confidence. Were there not forebodings in those fateful 
 days when Germany rushed Belgium? Were there not 
 forebodings throughout the entire world ? It seemed then 
 inevitable that civilization must go down, that there was 
 no hope, no chance; but the Allies marshaled all those 
 forces with something that Germany did not have a 
 
288 THE INTERNATIONAL TRADE CONFERENCE 
 
 spiritual power for the right. The great, attacking horde 
 was not only stayed, but beaten. 
 
 Now, out of all this came the belief, as so many million 
 people did believe, that when victory was declared the 
 millenium would come. Oh, but it has been slow and 
 their nerves are on edge and they are irritable, and the 
 whole world is ill-natured. The one great thing we need 
 is patience and good nature. That is a factor which is 
 necessary, and a little more of that good will toward each 
 other. But those unspoken thoughts that haunt us here 
 in America where we have never had this Government of 
 ours assailed. No one has ever dared to say that he 
 would like to bring on a revolution or to break down this 
 country of Washington and Lincoln; no one has ever 
 dared to say or speak those things until lately. Some 
 malevolent forces have misled labor in the idea that it 
 must take a certain course in order to benefit, when any 
 course that leads to destruction of this country is against 
 the interests of labor. 
 
 Certain people would have labor believe that its inter- 
 ests would be benefited by a certain direction ; but during 
 this war when labor in England understood that Eng- 
 land must perish unless labor and capital coordinated, 
 labor cast aside all its social interests for this one su- 
 preme cause. Then England won because labor came 
 generously forward and went into the conflict and en- 
 abled England to make her great place in history. She 
 did that because labor was patriotic. Labor is patriotic 
 in the United States and in all these other countries when 
 it understands. Labor in this country will understand that 
 any interest which is leading it to strike down the gov- 
 ernment that has nurtured and fostered it during all 
 these years, is the enemy of labor; will comprehend, as 
 all the people do comprehend throughout this country, 
 that the hand of treason shall not be laid upon that flag. 
 
 Cardinal Mercier is in this country. We saw him in 
 New York and he has been to my home town in Cleve- 
 land. It seemed to me that he was just about the greatest 
 ambassador that ever came across the waters,, because 
 
THE INTERNATIONAL TRADE CONFERENCE 289 
 
 he brings here at this time that doctrine of peace and 
 good-will on earth and yet, at the same time, underneath 
 that combination of delightful personality is a will of 
 steel and an intelligence as broad as the universe. And 
 I should like to compliment the gentlemen of Belgium, 
 not only upon that representative, but upon King Albert. 
 His is one head that does not lie uneasy within the crown, 
 I assure you ; and to my beloved friends in France, to tell 
 the truth, I came here as much to see them, Mr. Chair- 
 man, as anything else, because no one could live in France 
 and not understand that their 2,000 years of civilized 
 living, their wonderful history, when they beat back so 
 many times forces that would have changed the history 
 of the world, who fought on so many battlefields, have 
 always had a high conception of right no one could live 
 among those delightful people without loving them. Ana 
 my friends from England I have had a delightful time 
 with them. I have been telling them, in order to get next 
 to them, that I lived there 150 years ago and enjoyed it 
 very much. And Italy. Why, a part of our town is 
 known as Little Italy. There is always joy down there 
 and I do not know how many celebrations they have a 
 year, but it seems to me at least every other day they 
 have fireworks. 
 
 So, gentlemen, as you go out through this country you 
 will find that we are Yankees; we trade close; we have 
 sometimes a cold exterior, but underneath all that I be- 
 lieve, as a German said in sorrow in 1917, when he saw 
 that we were going to take up the gauntlet that they 
 threw down when the submarine warfare was resumed: 
 "I understand now that we have made a grievous mistake 
 because the Americans are the most idealistic people in 
 the world." You will find that underneath our cold ex- 
 terior, I assure you, warm hearts, and throughout the 
 country we shall welcome you in our own peculiar 
 fashions, in our provincial ways,, but when you go home 
 I am sure somehow you will carry the impression that 
 we love you all. 
 
290 THE INTERNATIONAL TRADE CONFERENCE 
 
 [Note: For the convenience of readers the reports of commit- 
 tees are taken from the order in which they appear in the stenog- 
 rapher's record and shown here, the closing exercises of the Con- 
 ference following them. EDITOR.] 
 
 Reports of Committees. 
 
 PERSONNEL OF PROGRAM COMMITTEE. 
 
 Reports of the Standing Committees were adopted as 
 follows : 
 
 JOHN H. FAHEY, General Chairman. 
 ANDREW H. P HELPS, General Secretary. 
 
 AMERICAN COMMITTEE FOR BELGIUM. 
 
 ALEXANDER J. HEMPHILL, Chairman, Guaranty Trust Co., New 
 
 York. 
 
 JOHN N. VAN DER VRIES, Secretary, Chicago, 111. 
 DENNISON, HENRY S., President, Dennison Mfg. Co., New York. 
 TRIPP, GUY E., Westinghouse Elec. & Mfg. Co., New York. 
 MINER, EDWARD G., The Pfaulder Co., Rochester, N. Y. 
 KELLOGG, DR. VERNON, National Research Council, Washington, 
 
 D. C. 
 
 GADE, LIEUT.-COM. JOHN A., New York. 
 VAN SCHAICK, COL. JOHN, JR., President, Board of Education, 
 
 Washington. 
 LAW, WILLIAM A., President, First National Bank, Philadelphia, 
 
 Pennsylvania. 
 
 AMERICAN COMMITTEE FOR FRANCE. 
 
 JOSEPH P. COTTON, Chairman, New York. 
 
 EMILE J. BALYE, Secretary, New York. 
 
 FULLER, PAUL, JR., Coudert Brothers, New York. 
 
 DAWES, CHARLES G., Central Trust Co. of Illinois, Chicago, 111. 
 
 MCFADDEN, GEORGE, Geo. H. McFadden & Bro., Philadelphia, Pa. 
 
 WILGUS, COL. WILLIAM J., New York. 
 
 MACROBERTS, GEN. SAMUEL, National City Bank, New York. 
 
 NICHOLS, DR. WM. H., General Chemical Co., New York. 
 
THE INTERNATIONAL TRADE CONFERENCE 291 
 AMERICAN COMMITTEE FOR GREAT BRITAIN. 
 
 IRVING T. BUSH, Chairman, President, Bush Terminal Co., New 
 
 York. 
 
 M. B. TREZEVANT, Secretary, New York. 
 CLARKE, E. A. S., President, Consolidated Steel Corporation, New 
 
 York. 
 
 ARNOLD, JOHN J., First National Bank, Chicago, 111. 
 CRAVATH, PAUL D., Cravath & Henderson, New York. 
 GREENE, JEROME D., Lee, Higginson & Co., New York. 
 MCCORMICK, VANCE C., Harrisburg, Pa. 
 POWELL, FRANCIS E., W. C. Tagle, New York. 
 STONE, CHARLES A., President, American International Corp., New 
 
 York. 
 
 BONBRIGHT, WILLIAM P., Bonbright & Co., Inc., New York. 
 CARLTON, NEWCOMB, President, Western Union Telegraph Co., 
 
 New York. 
 
 AMERICAN COMMITTEE FOR ITALY. 
 
 ROBERT P. PERKINS, Chairman; President, Hartford Carpet Cor- 
 poration. 
 
 PAUL CLAGSTONE, Secretary, San Francisco. 
 
 BAKER, GEORGE F., JR., Vioe-President, First National Bank, New 
 York. 
 
 PATTERSON, ALBERT M., Patterson & Greenough, New York. 
 
 HURLEY, EDWARD N., Chicago, 111. 
 
 WOOLEY, ROBERT W., Interstate Commerce Commission, Washing- 
 ton, D. C. 
 
 BABST, EARL D., President, American Sugar Refining Co., New 
 York. 
 
 SMYTH, CALVIN M., President, Young, Smyth, Field & Co., Phila- 
 delphia, Pa. 
 
 MADDOX, ROBERT F., President, American Bankers' Assn., Atlanta, 
 Ga. 
 
 MOORE, DR. JOHN BASSETT, New York. 
 
292 THE INTERNATIONAL TRADE CONFERENCE 
 
 COMMITTEE ON CREDIT AND FINANCE. 
 
 BELGIUM. 
 M. HANKAR. 
 M. JANSSEN. 
 M. VAN DEN YEN. 
 M. CANON LEGRAND. 
 M. NEVE. 
 M. DE GROOTE. 
 
 FRANCE. 
 
 M. BARON DU MARAIS. 
 M. ANDRE HOMBERG. 
 M. LOIZEAU. 
 M. MAURICE BOYER. 
 M. DE FREMINVILLE. 
 M. PESSON-DIDION. 
 M. ROCHE. 
 M. INGOUF. 
 
 GREAT BRITAIN. 
 
 SIR JAMES HOPE SIMPSON. 
 SIR ARTHUR SHIRLEY BENN. 
 MR. MARSHALL STEVENS. 
 HON. J. G. JENKINS. 
 BAILIE JOHN KING. 
 MR. FRANK MOORE. 
 
 ITALY. 
 
 PROF. B. ATTOLICO. 
 
 D. GIDONI. 
 G. FUMMI. 
 
 A. JACCARINO. 
 G. BlASUTTI. 
 
 I. MARCHISIO. 
 
 F. BAVA. 
 
 G. PEDRAZZINI. 
 L. PERERA. 
 
 L. SOLARI. 
 A. PEDRINI. 
 0. Riso. 
 SIG. LERRO. 
 SIG. Fusi. 
 
 E. GERLI. 
 R. SANTINI. 
 
THE INTERNATIONAL TRADE CONFERENCE 293 
 AMERICA. 
 
 JAMES S. ALEXANDER, Chairman; President, National Bank of 
 
 Commerce in New York. 
 GUY EMERSON, Vice-Chairman ; Vice-President, National Bank of 
 
 Commerce in New York. 
 FRED. N. SHEPHERD, Secretary, Chamber of Commerce of the 
 
 United States, Washington, D. C. 
 M. B. TREZEVANT, Assistant Secretary, Chamber of Commerce of 
 
 the United States, Woolworth Bldg., New York City. 
 JOHN T. WEBBER, Assistant Secretary, Chamber of Commerce of 
 
 the United States, Otis Bldg., Chicago, 111. 
 AIKEN, ALFRED L., Pres., National Shawmut Bank of Boston, 
 
 Boston, Mass. 
 ALDER, T. P., Treasurer, U. S. Steel Products Exports Co., New 
 
 York. 
 
 ANDERSON, FRANK B., President, Bank of California National 
 Association, San Francisco, Cal. 
 
 BEDFORD, E. T., President, Corn Products Refining Co., New York. 
 
 BEEBE, H. F., Export Manager, Winchester Repeating Arms Co., 
 New Haven, Conn. 
 
 BELL, JAMES F., Vice-President, Washburn Crosby Co., Minne- 
 apolis, Minn. 
 
 BONBRIGHT, WM. P., Bonbright & Co., New York City. 
 
 BOUDEN, J. E., Jr., President, Whitney Central National Bank, 
 New Orleans. 
 
 BROWN, JAMES, Brown Brothers & Co., New York City. 
 
 BROWNE, L. R., Credit Manager, International Western Electric 
 Co., New York City. 
 
 BURNFTT, C. R., President, National Association of Credit Men, 
 New York City. 
 
 BUSH, IRVING T., President, Bush Terminal Co., New York City. 
 
 CALWELL, CHARLES S., President, Corn Exchange Bank, Phila- 
 delphia, Pa. 
 
 ERICKSON, 0. T., Credit Manager, Carter's Ink Company, Boston, 
 Mass. 
 
 FORBES, ALLEN B., Harris, Forbes & Co., New York City. 
 
 GRAHAM, ALBERT D., President Union Trust Co., San Francisco, 
 Cal. 
 
 HELLMAN, I. W., President Union Trust Co., San Francisco, Cal. 
 
 HEPBURN, A. BARTON, Chairman of the Advisory Board, Chase 
 National Bank, New York City. 
 
 HILL, Louis W., Chairman, Board of Directors, First National 
 Bank, St. Paul, Minn. 
 
 HULBERT, E. D., President, Merchants Loan & Trust Co., Chicago, 
 111. 
 
 JAFFRAY, C. T., President, First and Security National Bank, Min- 
 neapolis, Minn. 
 
294 THE INTERNATIONAL TRADE CONFERENCE 
 
 KELLEY, CORNELIUS F., President, Anaconda Copper Mining Co., 
 New York. 
 
 KRECH, ALWIN W., President, Equitable Trust Co., New York. 
 
 LANE, MILLS B., President, Citizens & Southern Bank, Savannah, 
 Ga. 
 
 LAW, WILLIAM A., President, First National Bank, Philadelphia, 
 Pa. 
 
 LEE, GEORGE C., Lee, Higginson & Co., Boston, Mass. 
 
 MCELDOWNEY, H. C., President, Union Trust Co., Pittsburgh, Pa. 
 
 MADDOX, ROBERT F., President, Atlanta National Bank, Atlanta, 
 Ga. 
 
 MATHER, SAMUEL, Pickands, Mather & Co., Cleveland, O. 
 
 MORROW DWIGHT W., J. P. Morgan & Co., New York City. 
 
 PIERSON, LEWIS E., Chairman, Irving National Bank, New York 
 City. 
 
 PROSSER, SEWARD, President, Bankers Trust Company, New York 
 City. 
 
 RAMSDELL, HARRY T., President, Manufacturers & Traders Na- 
 tional Bank, Buffalo, N. Y. 
 
 REYNOLDS, ARTHUR, First Vice-President, Continental & Commer- 
 cial National Bank, Chicago, 111. 
 
 RHETT, R. GOODWYN, President, Peoples National Bank, Charles- 
 ton, S. C. 
 
 ROWE, W. S., President, First National Bank, Cincinnati, Ohio. 
 
 RUE, LEVI L., President Philadelphia National Bank, Philadelphia, 
 Pa. 
 
 SABIN, CHARLES H., President, Guaranty Trust Co., New York 
 City. 
 
 SCHIFF, MORTIMER L., Kuhn, Loeb & Company, New York City. 
 
 SHERWIN, JOHN, President, First National Bank, Cleveland, Ohio. 
 
 STILLMAN, JAMES A., President, National City Bank, New York 
 City. 
 
 STOCKTON, PHILIP, President, Old Colony Trust Co., Boston, Mass. 
 
 STRAUSS, FREDERICK, J. & W. Seligman & Co., New York City. 
 
 STUART, H. L., President, Stuart & Co., Chicago, 111. 
 
 SWINNEY, E. F., President, First National Bank, Kansas City, Mo. 
 
 WADE, FESTUS J., President, Mercantile Trust Co., St. Louis, Mo. 
 
 WATTS, F. O., President, Third National Bank, St. Louis, Mo. 
 
 WETMORE, F. O., President, First National Bank, Chicago, 111. 
 
 WINSOR, ROBERT, Kidder, Peabody & Co., Boston, Mass. 
 
THE INTERNATIONAL TRADE CONFERENCE 295 
 
 MINUTES OF CONFERENCE WITH FOREIGN DELEGATIONS 
 INTERNATIONAL TRADE CONFERENCE, ATLANTIC CITY. 
 
 The Committee on Credit and Finance held its confer- 
 ences with the representatives appointed from the Brit- 
 ish, French, Belgian and Italian delegations on October 
 20 to October 22, inclusive. In general these conferences 
 were informal in character and discussion of the situa- 
 tion in the respective countries was very free and frank. 
 In furtherance of the fullest and frankest possible inter- 
 change of views between the American and foreign rep- 
 resentatives, it was agreed by mutual consent that no 
 stenographic record of the proceedings be made, the 
 great object of the conference being, not the creation of 
 a record of definite facts, but rather a starting point of 
 mutual understanding from which concrete action could 
 be developed. 
 
 OCTOBER 20, 1919 CONFERENCE WITH BRITISH 
 DELEGATION. 
 
 The meeting with the British delegation was called to 
 order at 2.15 P. M. by James S. Alexander, Chairman. 
 The following members of the British Mission had been 
 appointed to confer with the Committee on Credit and 
 Finance : 
 
 SIR ARTHUR SHIRLEY BENN, K. B. E., M. P.; Chairman, London. 
 
 SIR JAMES HOPE SIMPSON, Director and General Manager, Bank 
 of Liverpool. 
 
 MR. MARSHALL STEVENS, M. P., Manchester. 
 
 HON. J. G. JENKINS, Corbiston, London; Member of Finance, 
 General Purposes and Merchants Committees, London Cham- 
 ber of Commerce; V. P., British Producers Association; for- 
 mer Premier, South Australia. 
 
 BAILIE JOHN KING, Chairman, National Light Castings Asso- 
 ciation, Glasgow. 
 
 MR. FRANK MOORE, Eady & Murcott Goode, Ltd., Leicester. 
 
 Sir James Hope Simpson, introduced by Mr. Alexan- 
 
296 THE INTERNATIONAL TRADE CONFERENCE 
 
 der, reviewed the financial situation of Great Britain and 
 pointed out the soundness of her government and private 
 financial condition; and also her international banking 
 situation due to remaining investments in foreign secu- 
 rities and to invisible items in the balance of indebted- 
 ness, such as money paid to Britain in the form of ship- 
 ping charges, insurance premiums, banking commissions, 
 etc. He declared also that labor conditions and indus- 
 trial methods were improving. Sir James expressed the 
 conviction that every British business man who asked 
 for credit would do so having in mind commercial trans- 
 actions on which he could make a profit and out of the 
 proceeds of which he could certainly pay whatever was 
 advanced. He indicated that Great Britain desired 
 simply the maintenance of existing business and credit 
 relationships with the United States and was not seeking 
 on her own behalf for the creation of any special or un- 
 usual credit arrangements. 
 
 OCTOBER 21, 1919 CONFERENCE WITH FRENCH 
 
 DELEGATION. 
 
 The Committee on Credit and Finance held two ses- 
 sions with the French representatives; the first com- 
 mencing at 10 o'clock and the second at 2.15. The fol- 
 lowing members of the French delegation had been ap- 
 pointed to meet with the Committee on Credit and 
 Finance : 
 
 M. EUGENE SCHNEIDER, Chairman, Head of Creusot Iron Works. 
 M. LE BARON DU MARAIS, Vice-Chairman of Mission, Director of 
 
 Credit Lyonnaise. 
 
 M. ANDRE HOMBERG, Vice-President of the Societe Generale. 
 M. LOIZEAU, Engineer, of the Credit Lyonnais; Assistant to M. 
 
 le Baron du Marais. 
 M. BOYER, Director of American Services in the Bank of Paris; 
 
 Assistant .General Secretary. 
 
 M. DE FREMINVILLE, Engineer at Schneider establishment. 
 M. PESSON-DIDION Mining Engineer; Delegate of the Union of 
 
 Metallurgical and Mining Industries; Director of the Societe 
 
 Centrale pour 1'Industries Electrique. 
 M. ROCHE, Delegate of General Syndicate of Chemical Products; 
 
 Director of the firm of Poulens Brothers. 
 
 M. INGOUF. 
 
THE INTERNATIONAL TRADE CONFERENCE 297 
 
 Mr. Alexander introduced M. Schneider, who reviewed 
 briefly the financial situation of the French Government, 
 pointing out that it was under the necessity of advancing 
 large sums for the rehabilitation of devastated regions, 
 which sums were expected to be reimbursed by Ger- 
 many, and correcting the misunderstanding of many per- 
 sons in this country that the French people were averse 
 to severe measures of taxation. 
 
 M. Schneider then introduced M. le Baron du Marais, 
 who made a detailed statement covering the economic and 
 financial condition of France. He outlined the situation 
 with respect to the output of coal, iron and steel, and 
 other metals, and textiles. He pointed out further the 
 character of the resources and production of French col- 
 onies in several parts of the world and then indicated 
 the progress which France had already made in rehabili- 
 tating devasted regions. 
 
 After reviewing the French budget for the fiscal year, 
 Baron du Marais pointed out that what the French need 
 is simply sufficient time to enable their production and 
 consequently their exports to be resumed. For this pur- 
 pose France requires credits from foreign countries of 
 sufficient amount to cover her needs for raw materials 
 and for a certain amount of foodstuffs,, and of long 
 enough maturity to permit the processes of production 
 and exportation to be resumed. 
 
 Following Baron du Marais' statement, the meeting 
 was opened to discussion and the American representa- 
 tives discussed fully with the French representatives the 
 financial situation of the French Government and plans 
 for increasing taxes to cover expenditures. There was 
 likewise a full discussion of various methods by which 
 credits might be extended under such measures as the 
 Edge bill. The terms under which foreign securities 
 would be marketable in this country were considered at 
 length. 
 
298 THE INTERNATIONAL TRADE CONFERENCE 
 
 OCTOBER 22, 1919. CONFERENCE WITH BELGIAN 
 DELEGATION. 
 
 The Belgians delegated to confer with the Committee 
 on Credit and Finance were : 
 
 M. FLORIMOND HANKAR, Chairman, Director. National Bank of 
 Belgium; Honorary Director General, Savings Bank of Bel- 
 gium. 
 
 M. ALBERT E. JANSSEN, Director, National Bank of Belgium, Pro- 
 fesor University of Louvain. 
 
 PROFESSOR PAUL VAN DEN YEN, University of Louvain, Delegate 
 of Belgian Minister of Finance, at Paris Conference. 
 
 M. CANON-LEGRAND, President, Chamber of Commerce, Mons; 
 Construction Engineer; Permanent President, International 
 Congress of Chambers of Commerce. 
 
 M. ALBERT NEVE, Departmental Director, Ougree-Marihaye Works, 
 Liege. 
 
 M. ALEXANDRE DE GROOTE, Vice-President, Antwerp Chamber of 
 Commerce. 
 
 The meeting was called to order at 10 o'clock by Mr. 
 Alexander. He then introduced M. Florimond Hankar 
 who reviewed briefly the situation of the Belgian Gov- 
 ernment, pointing out that Belgium was in a strong posi- 
 tion because all of its war expenses had been advanced 
 by the Allies and would be reimbursed to them by Ger- 
 many, and further because Germany under the terms of 
 the peace treaty was called on to make certain additional 
 payments to Belgium in advance of those made to the 
 Allies generally. In the discussion which followed, the 
 nature of the obligations to be assumed by Germany on 
 behalf of Belgium was explained in detail. M. Hankar 
 pointed out that the banks generally were in sound con- 
 dition and had largely increased their capital. He fur- 
 ther emphasized the rapid progress which is being made 
 in restoring normal industrial and mining production 
 and referred to the satisfactory labor situation. 
 
 Agriculture, M. Hankar stated, is in a very flourish- 
 ing condition and while in parts of the country, particu- 
 larly that damaged by trench warfare, production had 
 
THE INTERNATIONAL TRADE CONFERENCE 299 
 
 not yet been restored, still a start had been made in this 
 direction and the Germans were obliged to repair the 
 damage to the country. The Belgian delegation indicated 
 that they desired credits in this country sufficient to en- 
 able them to purchase raw material, especially cotton, 
 and of long enough maturity to permit of the resumption 
 of exports which would furnish exchange to liquidate 
 their indebtedness. 
 
 OCTOBER 22, 1919 CONFERENCE WITH ITALIAN 
 DELEGATION. 
 
 The meeting with the Italian delegates was called to 
 order at 2 :15 P. M. The members of the Italian Mission 
 appointed to confer with the Committee on Credit and 
 Finance were : 
 
 COMMANDER PROF. BERNARDO ATTOLICO. 
 
 COMMANDER DOMENICO GIDONI, Delegate of the Italian Treasury. 
 
 CHEVALIER GIOVANNI FUMMI, Stock Broker. 
 
 COMMANDER DR. AUGUSTO JACCARINO, Representative of the Ban- 
 co di Napoli. 
 
 CHEVALIER GAETANO BIASUTTI, Representative of the Banco Ital- 
 iana di Sconto. 
 
 DR. ILDO MARCHISIO, Representative of the Banco di Roma. 
 
 CHEVALIER FELICO BAVA, Representative of the Credito Italiano. 
 
 CHEVALIER GUIDO PEDRAZZINI, Representative of the Banca Com- 
 merciale, Italiana. 
 
 SIG. PERERA. 
 
 SIG. L. SOLARI. 
 
 SIG. A. PEDRINI. 
 
 SIG. O. Riso. 
 
 SIG. LERRO. 
 
 SIG. Fusi. 
 
 SIG. E. GERLI. 
 
 SIG. R. SANTINI. 
 
 Professor Attolico, introduced by Mr. Alexander, sum- 
 marized briefly the Italian situation, pointing out that 
 their present needs arise out of the suppression of trade 
 during the war, but on the other hand the transition from 
 war activities to peace activities is comparatively simple 
 in Italy, which is predominantly agricultural rather than 
 
300 THE INTERNATIONAL TRADE CONFERENCE 
 
 industrial in its activities. He referred to the favorable 
 situation of Italy as a clearing center for the movement 
 of goods between the East and the West. Italy likewise 
 will benefit by the resumption of tourist trade which is 
 an important item in her economy and which was cut off 
 during the war. 
 
 Professor Attolico then introduced Commander Gidoni 
 who discussed in greater detail the financial position of 
 the Italian Government and the terms of the forced loan 
 by which it is proposed to secure the retirement of a con- 
 siderable portion of the floating indebtedness and paper 
 currency. Commander Gidoni further outlined Italy's re- 
 quirements for goods to be imported from other coun- 
 tries for the year and explained the terms of syndicate 
 formed by the leading Italian banks to facilitate the 
 financing of these imports. 
 
 The meeting was then opened to discussion and the 
 American and Italian representatives went over the situ- 
 ation with the greatest frankness. The method by which 
 the Italians propose to obtain foreign credits through the 
 banking syndicate above referred to was discussed thor- 
 oughly and the financial condition of the Government and 
 of the banks was further reviewed. 
 
 In general the object of the Italian delegation was to 
 secure in this country a long term credit of sufficient 
 amount to provide for the purchase of merchandise, prin- 
 cipally raw materials, in the United States. 
 
 As a result of these conferences with the foreign dele- 
 gations and as a result of further consideration on the 
 part of the members of the Committee on Credit and 
 Finance of the facts and conditions presented, the fol- 
 lowing report was prepared and was submitted to the 
 open session of the International Trade Conference on 
 Friday, October 24, 1919, by Chairman Alexander: 
 
 REPORT OF COMMITTEE. 
 
 Your Committee on Credit and Finance was invited to 
 meet here to confer with business and financial repre- 
 sentatives of England, France, Italy and Belgium, for a 
 
THE INTERNATIONAL TRADE CONFERENCE 301 
 
 frank discussion of facts and exchange of views. It was 
 hoped that a better understanding of the needs involved 
 and of the resources available to meet these needs would 
 be reached. 
 
 Your Committee began its sessions on Sunday, October 
 19,, with the purpose of developing the views of the Amer- 
 ican bankers and business men on the Committee who 
 come from every section of the United States. This 
 group has met, in turn, with the distinguished missions 
 from the nations represented at the Conference and has 
 had the opportunity of hearing statements of extreme 
 value with regard to the economic, industrial, commercial 
 and financial situation in those countries. 
 
 In addition to this information the Committee has been 
 advised to some extent of the needs of other nations; 
 many measures have been discussed informally which 
 have to do with supplying the necessities of life to the 
 stricken areas of Europe. It is not within the authorizt- 
 tion of the present committee to discuss officially here the 
 countries not represented at this Conference. 
 
 The entire situation has taken on a new significance 
 because of the personal contact made possible by the 
 presence of men of such ability and longexperience in 
 international trade and finance. , The spoken word is 
 always more vivid than the written word. All this ma- 
 terial submitted to us will be presented to the Chairman 
 of the Trade Conference within a few days. In the 
 meantime it may be said in general that, after hearing 
 all the statements made here and studying as far as 
 time permitted the facts and opinions submitted by for- 
 eign and American delegates to this Conference, your 
 Committee regards this situation not as one of finance 
 purely, but rather as a great world problem arising out 
 of the interplay of social, economic and political forces 
 stirred into action by the world war. It must be self- 
 evident, therefore, that no single all-inclusive formula 
 will solve it. 
 
 And yet we believe that ways and means can be found 
 to furnish what is asked of us by the countries which 
 have told of their needs at the Conference. Of course, 
 until the factories are again in full operation and these 
 countries have thus substantially decreed their im- 
 ports and increased their exports, it is clear that they 
 must not be expected to make immediate payment in the 
 United States for the materials they need. 
 
 The missions in turn have emphasized the ability and 
 determination of their nations to meet their obligations 
 
302 THE INTERNATIONAL TRADE CONFERENCE 
 
 as they have always met them n the past. They have 
 stated that they expect any loans negotiated here to be on 
 terms and conditions that will meet our domestic situa- 
 tion. The British Mission has not asked for any special 
 aid for their country. The need of these countries which 
 do desire aid of us at this time is in the nature of assist- 
 ance only until the peak of their reconstruction period is 
 passed. The length of that period will vary in different 
 countries in proportion to the extent of the destruction 
 of war and also in proportion to the speed with which 
 their internal economic machinery can be fully set to 
 work. The foreign missions point out further that the 
 duration of their period of trial will depend to some ex- 
 tent upon the speed with which our aid is rendered. 
 They are already at work. But without help from the 
 oueside, they cannot approach a maximum of industrial 
 activity for a long period. 
 
 How are these needs to be met? European conditions 
 are such that to a large extent our exports must be 
 made on long-time credits. We find evidence of belief 
 among Amreican exportrs that the banks should pro- 
 vide funds for financing of our exports to Europe in 
 such a manner as to place upon the banks the burden of 
 the transaction. 
 
 The banks are eager to help. The difficulty is that 
 commercial banks, as custodians of funds, under obli- 
 gation to repay deposits on demand, are prevented both 
 by law and by sound business practice from tying up 
 their assets in long-time loans. We find this view 
 understood and confirmed by the distinguished bankers 
 among our European guests. American banks are today 
 functioning normally in the financing of a substantial 
 part of our foreign trade. To the extent that what we 
 export is balanced by what we import, banks can very 
 well make the temporary advances required. But the 
 problem of financing the excess of our exports over our 
 imports, the problem of supplying the long-term credits 
 to cover the balance of trade, is not one for the banks 
 along. Neither can the banks and the merchants solve 
 it alone, because the extent to which merchants and pro- 
 ducers can properly tie up their working capital in long- 
 time advances to foreign customers is limited. 
 
 To the extent that long-time credits are required, 
 therefore, it is clear that special machinery must be set 
 up and that, while the commercial banker will have an 
 important role to play, a large responsibility must rest 
 with other elements in the population, notably the in- 
 
THE INTERNATIONAL TRADE CONFERENCE 303 
 
 vestment banker, the exporter, the producer of goods for 
 export and, most important of all, the American investor. 
 
 To meet the problems of long-time commercial credits 
 your Committee believes that organizations of the type 
 contemplated in pending legislation constitute a valuable 
 part of the new machinery needed to meet the present 
 emergency. We have discussed at the Conferenc the 
 possibilities of corporations formed under the provisions 
 of the Edge Bill, the principles of which have been en- 
 ciation and other influential organizations. We recom- 
 dorsed by a committee of the American Bankers' Asso- 
 mend that steps be taken to expedite the speedy passage 
 of that legislation. We have given study also to the 
 powers of the War Finance Corporation as a helpful 
 agency in the present situation. We believe further care- 
 ful study should be given to both these agencies with a 
 view to bringing about not government initiative in this 
 work, but rather the establishment of a cooperative re- 
 lationship which will give help and encouragement to 
 private initiative and increase the broadest confidence 
 on the part of the public as a whole in the credit ma- 
 chinery to be set up. 
 
 It should be stated again that no corporation which 
 may be set up can take the place of individual ingenuity 
 and the wide variety of effort and skill on the part of 
 business men and bankers, working out in detail with 
 business men and bankers in Europe, specific trans- 
 actions. Some of these may be individually small. But 
 the success of one will lead rapidly to the development of 
 others, until in the aggregate the business done will be 
 large. A return of this normal intercourse, we believe, 
 is the ultimate objective desired on both sides of the 
 water and should be constantly kept in mind and en- 
 couraged even while we are devoting ourselves so 
 earnestly to providing unusual and temporary measures 
 to meet emergency needs. 
 
 It is in the attitude that your Committee has ap- 
 proached the formation of corporations of substantial 
 size, under provisions similar to those in the Edge Bill. 
 An organization with ample capital with facilities to ob- 
 tain full credit information abroad, and with a person- 
 nel which will insure an unquestioned standing at home 
 and abroad appears to be, in the estimation of your Com- 
 mittee, an expedient well worth support at this time. 
 
 When such a corporation is established and is ready 
 to issue its debentures, it is our belief that the securities 
 to be offered to the American public should stand on 
 
304 THE INTERNATIONAL TRADE CONFERENCE 
 
 their merit as an investment. We feel that if a security 
 is made available through the established investment 
 selling machinery of the United States, on a business 
 basis, the American public will demonstrate that they 
 have a deep interest in the grounds of friendship in the 
 splendid peoples who bore the greatest share of the war, 
 and with whom our soldiers fought side by side until vic- 
 tory was won. Nor will our people be unminduful of the 
 fact that men, women and children in some sections of 
 Europe will die of disease and starvation unless help is 
 speedily forthcoming from us. And, finally, we believe 
 the investing public realizes that the world is suffering 
 from the contagion of social unrest and radicalism, breed- 
 ing a disregard for law .and order which endangers the 
 very existence of democratic institutions. It is to our 
 interest to aid in re-esttblishing law and order every- 
 where. 
 
 Your Committee is deeply impressed with the neces- 
 sity of action which will meet as quickly as possible both 
 the desires of our foreign friends and the wishes of our 
 own people. There is no lack of desire to help. There is 
 no lack of vision as to the deep and far-reaching signifi- 
 cance of the problem, not only from the point of view of 
 America, but from the point of view of the world. But 
 your Committee has found the utmost diversity of judg- 
 ment and opinion among thoughtful men of wide experi- 
 ence in these matters as to the proper measures to be 
 taken. And this is not unnatural. The world situation 
 today presents the greatest financial problem of history. 
 Never in peace or war has there been a situation involv- 
 ing on the one hand such a variety of widely divergent 
 requirements, and on the other hand such a complication 
 of difficulties in the way of meeting those requirements 
 promptly and soundly. 
 
 And yet with the very difficulty of the problem there 
 goes a challenge to the skill, the ingenuity and the public 
 spirit of America. Business men and bankers can meet 
 this situation if they have the active support of the na- 
 tion, of labor, of the farmers, of the professional men and 
 women, and of the press,, and the sympathetic coopera- 
 tion of public officials. It is a matter for study, for wise 
 counsel, and for action which shall move forward in a 
 sure and conclusive way because it is a right way. 
 
 Looking to the future, it is a subject which must be ap- 
 proached so as to meet not only the urgent needs of the 
 moment but also to lay the foundations for broad, accur- 
 ate and world-embracing knowledge, on the part of 
 
THE INTERNATIONAL TRADE CONFERENCE 305 
 
 Americans, of foreign investment. Our American neces- 
 sities have very properly occupied our minds during the 
 few crowded generations in which we were building a 
 great nation across a wilderness of forests and prairies. 
 But increasingly in the future, business and finance must 
 be regarded from the point of view of the rights and re- 
 sponsibilities of all the peoples of the world. Economic 
 isolation is today a contradiction in terms. If we do not 
 now prepare to do our share in this situation, we shall 
 most surely find in another generation, when the world 
 has resumed its orderly course of business, that America 
 has not held her proper po sition in world affairs. 
 
 Your Committee believes that the understanding in this 
 country of this situation has been distinctly advanced by 
 the work of the present Conference. 
 
 This Committee has finished its work. But the great 
 problems presented require continuous study and coor- 
 dination. Therefore, your Committee recommends that a 
 new committee shall immediately be appointed by the 
 Chamber of Commerce of the United States to carry on 
 the work initiated at this Conference, and to put to prac- 
 tical use the material accumulated here. It is felt that 
 the new committee should represent the responsibility of 
 the entire country in meeting this national emergency. 
 It should be so constituted, either in its full membership, 
 or through a sub-committee as to be able to devote at once 
 a substantial amount of time to the work in hand, to con- 
 sult with all the interests involved, and to keep at the 
 job until it is finished. Members of your present Com- 
 mittee on Credit and Finance are prepared to join with 
 this new committee if desired. We believe that your new 
 committee will receive the active cooperation of the 
 country, and that it can proceed to the actual definition 
 and effective working operation of the practical measures 
 necessary. 
 
 JAMES S. ALEXANDER, Chairman. 
 
306 THE INTERNATIONAL TRADE CONFERENCE 
 COMMITTEE ON CHEMICALS. 
 FRANCE. 
 
 M. ROCHE. M. INGOUF. 
 
 M. DE PELLERIN DE LA TOUCHE. M. DE FREMINVILLE. 
 
 M. PONCET. M. PESSON-DIDION. 
 
 M. PARMENTIER. 
 
 ITALY. 
 
 F. QUARTIERI. A. ANZANI. 
 
 E. BARONI. O. ROSSATI. 
 
 P. G. LAZZERINI. 
 
 AMERICA. 
 
 CHARLES H. MACDOWELL, Chairman, 
 President, Armour Fertilizer Works, Chicago, 111. 
 
 E. T. CONNOLLY, Vice-Chairman and Secretary, 
 
 Acting Secretary, Manufacturing Chemists Association, 
 
 Boston, Mass. 
 
 ALFRED P. PERKINS, Assistant Secretary, 
 Chamber of Commerce of the United States, 
 Woolworth Bldg., New York City. 
 
 BOWKER, HORACE, Secretary, American Agricultural Chemical Co., 
 New York City; President, Chemical Alliance, New York City. 
 
 BRUNKER, ALBERT R., President, Liquid Carbonic Company, Chi- 
 cago, 111. 
 
 CHASE, M. F., Consulting Chemical Engineer, Leonard Construc- 
 tion Co., New York City. 
 
 CHILDS, WILLIAM HAMLIN, President, The Barrett Co., New York 
 City. 
 
 CORNWELL, WM. R., Secretary, American Dyes Institute, New 
 York City. 
 
 Dow, H. H., General Manager, Dow Chemical Company, Midland, 
 Michigan. 
 
 GARVAN, FRANCIS P., Alien Property Custodian, Washington, D. C. 
 
 GRASSELLI, E. R., Grasselli Chemical Co., Cleveland, Ohio. 
 
 HANDY, H. H. S., Vice-President, Semet-Solvay Co., Syracuse, 
 New York. 
 
 HOWARD, HENRY, Vice-President, Merrimac Chemical Co., Boston, 
 Massachusetts. 
 
 MILLER, C. WILBUR, President, Davison Chemical Company, Bal- 
 timore, Md. 
 
 PENNOCK, J. D., Solvay Process Company, Syracuse, N. Y. 
 
THE INTERNATIONAL TRADE CONFERENCE 307 
 
 REESE, DR. C. L., E. I. DuPont de Nemours & Co., Wilmington, Del. 
 
 ROSENGARTEN, A. G., Powers-Weightman-Rosengarten Co., Phila- 
 delphia, Pa. 
 
 SERGEANT, E. M., Second Vice-President, Niagara Alkali Co., 
 Niagara Falls, N. Y. 
 
 TAYLOR, DR. ALONZO A., University of Pennsylvania, Philadelphia, 
 Pennsylvania. 
 
 WIGGLESWORTH, HENRY, General Chemical Company, New York 
 City. 
 
 REPORT OF CHEMICALS COMMITTEE MEETING WITH 
 FRENCH DELEGATES. 
 
 The American Chemicals Committee met with the 
 French Chemicals Mission on Monday, October 20th, at 
 8.15 P. M., in Room 131,, Hotel Traymore, Atlantic City, 
 New Jersey. 
 
 The following were present : 
 
 FRANCE. 
 
 M. ROCHE M. INGOUF 
 
 M. DE PELLERIN DE LA TOUCHE M. DE FREMINVILLE 
 
 M. PONCET M. PESSON-DlDION 
 
 M. PARMENTIER 
 
 AMERICA. 
 
 CHARLES H. MACDOWELL, Chair- H. H. S. HANDY 
 
 man. HENRY HOWARD 
 
 EUGENE T. CONNOLLY, Vice- C. WILBUR MILLER 
 
 Chairman and Secretary. J. D. PENNOCK 
 
 ALFRED P. PERKINS, Assistant DR. C. L. REESE 
 
 Secretary. A. G. ROSENGARTEN 
 
 HORACE BOWKER E. M. SERGEANT 
 
 H. H. Dow HENRY WIGGLESWORTH 
 
 E. R. GRASSELLI 
 
 Mr. MacDowell opened the meeting by welcoming the 
 French delegates. He referred particularly to the val- 
 uable contributions made by the French scientists in the 
 development of the chemical industry and their splendid 
 achievements along the lines of pure science. He stated 
 that the chemical industry was so diversified and cov- 
 
308 THE INTERNATIONAL TRADE CONFERENCE 
 
 ered so broad a field and that chemical products were 
 raw materials in the making of so many finished products 
 and contributed so largely to their quality and value that 
 it was difficult to outline any program for special discus- 
 sion ; that at the moment the dyestuff s industry was much 
 to the front and that each of the Allied countries was 
 studying the further development of this industry with 
 the idea of making it as complete and self-supporting as 
 possible; that generally speaking, heavy chemicals were 
 consumed at home and that under ordinary circumstances 
 there would not be much opportunity for the exchange of 
 heavy chemicals between the United States and France; 
 that if certain agricultural and heavy chemicals could be 
 spared from the United States and shipping space se- 
 cured that he felt France could advantageously use these 
 materials in preparation for the coming Spring's plant- 
 ing; that unfortunately strikes and other circumstances 
 made it unlikely that any large tonnage could be spared 
 from the United States ; that the American chemical man- 
 ufacturers represented by the delegation present were 
 greatly privileged in having the opportunity of meeting 
 the French delegates and in ascertaining from them 
 just what help it could be to the French industry either 
 in the way of purchases from them or sales to them of 
 needed product ; that the rather distressing coal outlook in 
 France for the immediate future might restrict manu- 
 facture of some heavy chemicals in France, which short- 
 age could in part be supplied by United States manufac- 
 turers. 
 
 M. Roche, speaking for the French representatives, ad- 
 vised the meeting that before the war France had pro- 
 duced a large supply of heavy chemicals and a suf- 
 ficiently large supply of fine chemicals, and had exported 
 caustic soda and potash, but that during the war the 
 manufacture of fine chemicals naturally fell off. He 
 pointed out that the United States was naturally in a 
 better position than France, two of the chief reasons 
 being that she had wisely kept her chemists at home and 
 
THE INTERNATIONAL TRADE CONFERENCE 309 
 
 in the factories during the war and had entered the war 
 two years later than France. 
 
 He stated that much preparatory work is now being 
 done in France in the manufacture of dyes and that two 
 large concerns are active in this work, but that the estab- 
 lishment of the dye industry which is so essential to a 
 country, especially from a military point of view, will 
 naturally take quite a long time. He raised the question 
 as to whether the United States chemical interests and 
 French chemical interests could not enter into some sort 
 of arrangement for the sale of chemical products through- 
 out Europe. 
 
 He stated that the labor conditions had been critical up 
 to May; that the spirit of the discharged men was good, 
 although they were physically tired, and that the com- 
 manding men also were tired; that their strikes were 
 light and not especially dangerous. He was rather opti- 
 mistic as to the future. 
 
 In regard to the sale of certain United States chem- 
 ical products, he suggested that it would be beneficial to 
 France if the American manufacturers would sell such 
 products as they wished to sell in France directly to such 
 concerns in France as manufacture similar products, in- 
 stead of selling them on the open market. He added that 
 this might be done in case of dyes and Pharmaceuticals 
 by private agreement. This he thought would lessen the 
 competition which the French manufacturer would other- 
 wise be subjected to, and would enable the French manu- 
 facturer to re-establish himself, although,, by way of sug- 
 gestion he said that any such agreements should be not 
 for a few years, but for longer periods. 
 
 It was stated that France might desire to import a 
 certain amount of wood distillates from the United 
 States, and Mr. MacDowell remarked that in such an 
 event the Committee would put the French concerns in 
 touch with the American concerns which would sell these 
 products. 
 
 M. Roche stated that the most important chemical ex- 
 port that could be offered by France was potash from the 
 
310 THE INTERNATIONAL TRADE CONFERENCE 
 
 Alsatian mines, that they were prepared to ship mine 
 run potash and a limited quantity of the 80% chloride; 
 that it was figured they should be able to spare, over and 
 above their own requirements, some 50,000 tons K 2 for 
 shipment over the winter and spring months and they 
 would like to see the United States purchase this ma- 
 terial; that the condition of the mines was rapidly im- 
 proving as machinery was being put in shape and as 
 labor was trained, and that they hoped within two or 
 three years to be able to take care of not only their own 
 but general Allied requirements. 
 
 The meeting was advised that the development of the 
 alkali and caustic soda industry in the United States 
 during the war had been extremely rapid; that the pro- 
 duction in 1919 would be 100% greater than the produc- 
 tion in 1914 ; and that five American plants could produce 
 enough for the entire world. 
 
 It was stated that, as far as alkalis are concerned, it is 
 probable that France can take care of herself in regard 
 to this particular production. 
 
 It was suggested that France would probably need 
 some sulphate of ammonia at once; that the production 
 of sulphate of ammonia, of course, would be dependent 
 upon the coke ovens, and, in turn, the coke ovens would 
 be dependent upon the need of the steel industry for 
 coke. 
 
 The meeting then developed into a general discussion 
 of the situation. The various members of the American 
 committee were introduced and told what products their 
 respective companies were manufacturing. One member 
 of the American Committee stated that his company 
 would buy every bit of potash that France can sell and 
 deliver to this country. He added that, of course, he 
 would be interested in selling his products to the French, 
 but what he was especially anxious to do was to buy the 
 potash from France. 
 
 In answer to the question as to what products France 
 would probably be in a position to export, M. Roche said 
 that France probably would be able to export some wood 
 
THE INTERNATIONAL TRADE CONFERENCE 311 
 
 extracts, bauxite, synthetic products, oxide of antimony, 
 and some perfumes, but that the manufacture of perfumes 
 at present was difficult because of the high taxes. 
 
 M. Roche raised the question as to the importation of 
 certain products into this country because of the patents 
 which are now held by the Chemical Foundations, Inc. 
 He was advised that if there were any difficulties they 
 could probably be worked out to France's satisfaction. 
 
 Mr. MacDowell suggested that a study could be made 
 of the question of standardization and uniformity of 
 chemical products, contracts and terms. The meeting 
 discussed this matter for a short while. 
 
 The Conference with the French Chemical Mission may 
 be summed up as follows : 
 
 The Conference resulted in an interesting discussion 
 of the present conditions of the French and American 
 chemical industry, but it developed that there did not 
 seem to be any special way in which the United States 
 can materially help France, except in so far as this coun- 
 try will take potash from the Alsatian mines, and it was 
 indicated that this country will, for a time, take all the 
 potash which Alsace can produce above the requirements 
 of France, and for which France can obtain shipping 
 facilities for delivery here. 
 
 Arrangements were made whereby the French dele- 
 gates may interview the members of the American Com- 
 mittee and others interested in chemical products in their 
 offices in order to take up any business propositions that 
 the French delegates may have in mind. 
 
 Invitations were also extended to the delegates to visit 
 many of the American chemical plants. 
 
 REPORT OF CHEMICALS COMMITTEE MEETING WITH 
 ITALIAN DELEGATES. 
 
 The American Chemicals Committee met with the Ital- 
 ian Chemical Mission on Tuesday, October 21, at 2:15 
 
312 THE INTERNATIONAL TRADE CONFERENCE 
 
 o'clock P. M., in Room 131, Hotel Traymore, Atlantic City, 
 New Jersey. 
 
 The following were present : 
 
 ITALY. 
 
 F. QUARTIERI A. ANZANI 
 
 E. BARONI O. ROSSATI 
 
 P. G. LAZZERINI 
 
 AMERICA. 
 
 CHARLES H. MACDOWELL Chair- H. H. S. HANDY 
 
 man. HENRY HOWARD 
 
 EUGENE T. CONNOLLY, Vice- C. WILBUR MILLER 
 
 Chairman and Secretary J. D. PENNOCK 
 
 ALFRED P. PERKINS, Assistant DR. C. L. REESE 
 
 Secretary. A. G. ROSENGARTEN 
 
 HORACE BOWKER E. M. SERGEANT 
 
 H. H. Dow HENRY WIGGLESWORTH 
 
 E. R. GRASSELLI 
 
 Mr. MacDowell called to the attention of the meeting 
 the skill of the Italians along scientific engineering and 
 chemical lines,, and to the very complete and large chem- 
 ical and industrial plants in northern Italy. He referred 
 to the general increase in chemical manufacture in the 
 different Allied countries coming as a result of the war 
 and stated that America had surplus manufacturing 
 capacity for certain products and was increasing her ex- 
 ports; that, in the development of the chemical indus- 
 tries of Allied countries, export markets will naturally 
 be sought and that there will be strong competition be- 
 tween the different Allied countries; that this competi- 
 tion should be carried on in a friendly way and that each 
 country's chemical manufacturers should aim to supple- 
 ment their own lines with the products of other Allied 
 countries in world's merchandise as far as it was possible 
 to do so. He further stated that the American chemical 
 industry would be interested in ascertaining in what ways 
 it might be able to help Italy and in what way it could 
 benefit from Italy ; that in many respects Italy possessed 
 
THE INTERNATIONAL TRADE CONFERENCE 313 
 
 strategic advantages in the development of her chem- 
 ical and other industries as far as the Mediterranean, the 
 near East, and eastern trade was concerned; that she 
 had abundant water power which could be largely de- 
 veloped ; that she was well located for the distribution of 
 products made; that her traders were familiar with the 
 needs and peculiarities of the consumers through busi- 
 ness connections already established. He said that there 
 was reason to believe that in some branches of chemistry 
 the manufacturers of the United States and Italy could 
 find it mutually profitable to work together and that in- 
 vestments of United States capital in Italy might prove 
 of mutual advantage and that he thought United States 
 manufacturers would seriously consider making such 
 investments. 
 
 F. Quartieri, in reply, spoke in substance as follows : 
 
 Italy has devoted herself very strenuously of late to the 
 development of chemical manufacturing industries at 
 home. One valid incentive has been the fact that the raw 
 material requisite for this branch of commerce is not 
 a very important item, and the processes of transforma- 
 tion from war industries have been most admirably car- 
 ried out by our workers, and by the highly skilled tech- 
 nical staffs which Italy has at her disposal. 
 
 In figuring out these transformation expenses which 
 are infinitely less costly in Italy than in any other coun- 
 try we feel confident that the finished article will work 
 out cheaper in Italy than elsewhere. It is quite evident 
 that, in a commercial contest in this field, America with 
 her immense resources, would be in a position to over- 
 come all forms of European competition but only on 
 condition that she was prepared to lose rather than gain 
 over the business. 
 
 The Italian Mission is of the opinion that the most 
 advantageous course for both industries would be that 
 American capital should interest itself in the Italian 
 chemical manufacturing industry, in order that we may, 
 in unison, take the place of the once predominant Cen- 
 tral Powers in the supply of drugs and chemical produce 
 
314 THE INTERNATIONAL TRADE CONFERENCE 
 
 to the countries of the Mediterranean Basin and Eastern 
 Europe. 
 
 The meeting then discussed the question of investing 
 American capital in Italian chemical enterprises. It was 
 pointed out that the position of the Italian chemical in- 
 dustry was such that it must have assistance from out- 
 side, that this help can best be obtained from two coun- 
 tries, United States and Germany, and that the Italians 
 wished to get help from the United States. 
 
 It was further stated that the Italian industry would 
 wish American capital, some American raw materials, 
 American shipping and American chemical experience. 
 The plan that the Italian industry seemed to have in mind 
 was a combination of American and Italian interests for 
 manufacture, sale and the exportation of drugs and other 
 chemical products to certain European countries, as well 
 as their distribution in Italy. 
 
 The question was raised as to just what interests in 
 Italy the Germans still have. The meeting was advised 
 that all the property which had been formerly owned by 
 the Germans had been confiscated by the Italian govern- 
 ment and liquidated, and was no longer owned by Ger- 
 man interests, but that the German-owned Italian chem- 
 ical patents would be restored to the Germans six months 
 after the Treaty of Peace, and that royalties would have 
 to be paid to the Germans for the use of these patents, 
 but that the amount of these royalties could be regulated 
 by the Italian government. 
 
 The information was given that Italy had developed 
 her water powers to the extent of 1,500,000 electric horse 
 power and had reserves which could easily be developed 
 to total in excess of five million horse power; that de- 
 velopment of the water power would relieve the coal sit- 
 uation and that it was a splendid foundation on which to 
 build industry; that the plan was to tie in the northern 
 water powers with those developed more to the south of 
 Italy, so that there would be an all-year-round production 
 of power. 
 
 In regard to Italian tariffs, the statement was made 
 
THE INTERNATIONAL TRADE CONFERENCE 315 
 
 that there would undoubtedly be a high duty on finished 
 products entering Italy but a light duty on raw mate- 
 rials ; that there probably would be a maximum and min- 
 imum duty and that the United States would get advan- 
 tage of the minimum duty; also that the importation 01 
 dyes into Italy would be regulated by license and that it 
 probably would be difficult to import into Italy such dyes 
 as Italy would manufacture. 
 
 As to the general Italian labor situation, the feeling 
 was that, following some strikes in the early Spring, 
 the situation had greatly improved ; that the Italian labor 
 was dependable and that what it wanted was work at a 
 living wage and when this was secured, it was contented, 
 intelligent and hard working. It was stated that labor 
 had increased in cost during the war something like 400 
 per cent,, figuring in lire ; that it had gone up from three 
 to twelve lire per day, the latter figuring about $1.20 a 
 day at the present rate of exchange. 
 
 As to the alkalies, it was stated that Italy was pro- 
 ducing her requirements and would probably not call on 
 the outside for supplies. She will, in the development of 
 her chemical industry, require a small quantity of benzol. 
 
 In regard to agriculture, Signer Quartieri stated that at 
 the moment it was in rather poor shape because of de- 
 moralized farm conditions, war damage, etc.; that the 
 Italian government was providing for the introduction of 
 better farm methods, reclamations, etc. He stated that 
 Italy was not at present in shape to buy superphosphates 
 or rock phosphates from the United States on account of 
 the high ocean freights now prevailing ; that if rates were 
 reduced a considerable tonnage of rock phosphate could 
 be used. 
 
 In regard to taxes, it was stated that the profit taxes 
 will probably average about 60^, but that next year 
 these taxes will be abolished and the income tax will 
 range from 15 </ f to 20 %. It was explained that Italy, 
 like England and the United States, had imposed heavy 
 taxes out of earnings in order to meet war expenses. 
 
 The members of the Committee were then introduced 
 
316 THE INTERNATIONAL TRADE CONFERENCE 
 
 and told what companies they represented and what 
 products their companies manufactured. 
 
 Arrangements were made whereby the Italian dele- 
 gates may interview the members of the American Com- 
 mittee and others interested in chemical products, in 
 their offices, in order to take up any business proposi- 
 tions that the Italian delegates may have in mind. 
 
 Invitations were also extended to the delegates to visit 
 many of the American chemical plants. 
 
 REPORT OF COMMITTEE. 
 
 The demobilization of war industries has been proceed- 
 ing rapidly. This has been especially true in the chem- 
 ical industry, which was so greatly stimulated during the 
 war. Much of the chemical plant equipment needed for 
 war production has great value in peace times. This is 
 especially true in agricultural chemicals and dye-stuffs. 
 By a strange coincidence, plants and cannon eat the same 
 food, and nitrogen compounds, acids, phosphorus, potash 
 and other alkalies and chemicals are basic commodities, 
 both in war and peace. We are still "forging swords into 
 plowshares/' as in Biblical times. One of the difficul- 
 ties of readjustment and use is that war needs stimulated 
 a plant equipment in certain lines away beyond immedi- 
 ate peace requirement, and years of normal growth have 
 been discounted. On the other hand, additional equip- 
 ment will be needed to round out production held back by 
 war needs. Before the war, Germany had a practical 
 monopoly in several chemical lines, and, as it is easier 
 to buy than to make, other countries had dozed along 
 chemically and had not appreciated the basic nature of 
 chemical production in its relation to national safety and 
 its peculiar "key" position with regard to the chemical 
 production. War developments brought home sharply 
 the need of a self-contained national chemical production, 
 and of an army of trained chemists. Since the war, man- 
 ufacturers, frequently supported by their governments, 
 have been working to change over war plants to peace 
 production and to round out the output to the end that 
 their countries need not go abroad for the bulk of their 
 chemical needs. National chemical independence is 
 recommended, and perhaps to an exaggerated degree, as 
 international chemical commerce is important. 
 
THE INTERNATIONAL TRADE CONFERENCE 317 
 
 The two countries sending representatives of the chem- 
 ical industry are France and Italy. 
 
 The meeting held with the French delegates, headed by 
 Dr. Roche, resulted in an interesting discussion of the 
 conditions existing both in France and in the United 
 States and future possibilities. It was stated that it was 
 the French purpose to develop further and completely 
 its chemical and electro-chemical industry, and that par- 
 ticular attention was being paid to dye-stuffs. That fol- 
 lowing a strike extending through the early summer 
 months, their chemical labor situation was satisfactory; 
 that aside from the procurement of wood distillation 
 products, there was little we could supply them; that on 
 their part their main export in tonnage of importance 
 would be potash from Alsace. The French delegation 
 was informed that the United States was prepared to 
 take for the coming spring planting all the potash 
 Alsace could ship; that a small importation was now 
 being received, but that strikes, interior transport and 
 ocean shipping difficulties had so far prevented any large 
 movement. The ocean shipping difficulties should easily 
 be overcome as many ships are returning in ballast. It 
 was intimated that at least 50,000 tons of pure potash, 
 contained in, say 200,000 tons of mixed product, could be 
 spared from French needs, for winter and spring move- 
 ment, if it could be shipped. 
 
 The meeting with the Italian representatives, with 
 Commander Quartieri as spokesman, developed similar 
 conditions to those existing in France war chemical 
 plants were being changed over to peace-time require- 
 ments, and normal production would be secured as soon 
 as necessary raw materials could be obtained. Attention 
 was called to the fact that a considerable tonnage. of 
 American phosphate rock could be used but for the 
 high ocean freights now prevailing. Especial attention 
 is to be given by the Italian government to furthering 
 the use of fertilizers in crop production. Signer Quartieri 
 was strongly of the opinion that American capital could 
 find profitable and helpful occupation in Italy in. partner- 
 ship with Italian chemical manufacturers, and that it 
 could contribute experience, machinery and administra- 
 tion in the further development and rounding out of 
 Italian chemical manufacturing; that Italy possessed 
 fine chemists, skillful engineers, good workers and rela- 
 tively cheap electrical power. He stressed the fact that 
 Italy intended to develop her dyestuffs and general chem- 
 ical industry that her own needs might be met, and that 
 
318 THE INTERNATIONAL TRADE CONFERENCE 
 
 she might be able to do an export business; that Italy 
 possessed sulphur, pyrites, salt and other chemical raw 
 materials in abundance and would call for little raw ma- 
 terial from the outside. As to purchases of chemical 
 from the United States, there was little this country could 
 supply her with, benzol being one of the commodities. 
 As to sales by Italy, there was not much we could import 
 beyond that now coming here, such as citric and tartaric 
 acid, etc. 
 
 There was much of general interest discussed at these 
 meetings, such as reasonable uniformity in contract 
 terms, specifications, methods of analysis, etc., in selling 
 goods for export. 
 
 Arrangements were made for the inspection of chem- 
 ical plants by the Allied delegates and for interviews be- 
 tween them and chemical manufacturers in this country. 
 
 The American delegates highly appreciated the oppor- 
 tunity of conferring with the members of the Allied Mis- 
 sions. The Allied chemical industry has much in com- 
 mon and can be mutually helpful by the exchange of re- 
 search, by developing better and fairer methods of mer- 
 chandising, and in other ways. 
 
 The Committee desires to point out that a continuous 
 channel for further study and communication regarding 
 chemical relations with our Allies exist through the Man- 
 ufacturing Chemists Association of the United States, 
 the National Fertilizer Association, and the American 
 Dyes Institute. Communications to the Manufacturing 
 Chemical Association should be addressed to Mr. Henry 
 Howard, Chairman of the Executive Committee of the 
 Association, No. 148 State St., Boston, Mass., commu- 
 nications to the National Fertilizer Associations should 
 be addressed to Mr. W. D. Huntington, President of the 
 Association, at Room 1101, Garrett Building, Baltimore, 
 Md., and communications to the American Dyes Institute 
 should be addressed to Mr. William R. Corwine, Secre- 
 tary of the Institute, at 21 East 40th St., New York City. 
 CHARLES H. MACDOWELL, Chairman. 
 
THE INTERNATIONAL TRADE CONFERENCE 319 
 
 COMMITTEE ON COAL. 
 BELGIUM. 
 
 M. HANKAR. 
 
 M. CANON-LEGRAND. 
 
 M. NEVE. 
 
 FRANCE. 
 
 M. DE PELLERIN DE LA TOUCHE. 
 
 M. PARMENTIER. 
 
 M. PONCET. 
 
 M. INGOUF. 
 
 M. WADDINGTON. 
 
 M. GODET. 
 
 M. VARAIGNE. 
 
 ITALY. 
 P. G. LAZZERINI. 
 
 F. QUATTRONE. 
 V. E. SlLVESTRI. 
 
 E. FLORES. 
 
 AMERICA. 
 
 FRANK S. PEABODY, Chairman, 
 
 Chairman, Board of Directors, Peabody Coal Co., 
 
 Chicago, 111. 
 
 J. D. A. MORROW, Vice-Chairman and Secretary, 
 
 National Coal Assoc., Commercial National Bank Buldg., 
 
 Washington, D. C. 
 
 W. EPSEY ALBIG, Assistant Secretary, 
 
 Chamber of Commerce of the United States, Woolworth Bldg., 
 New York City. 
 
 DOVE, J. MAURY, Washington, D. C. 
 
 FARRELL, THOMAS F., Second Vice-President, Pocahontas Fuel Co., 
 New York City. 
 
 HUTCHINSON, S. P., President, Westmoreland Coal Co., Phila- 
 delphia. 
 
 HEILNER, SAMUEL, Percy Heilner & Son, New York City. 
 
320 THE INTERNATIONAL TRADE CONFERENCE 
 
 LYONS, HENRY S., Secretary, New England Coal & Coke Co., 
 
 Boston, Mass. 
 WALSH, JAMES P., Vice-President, Pittsburgh Coal Co., Oliver Bldg , 
 
 Pittsburgh, Pa. 
 WILLIAMS, W. H., Vice-President, The Delaware & Hudson Co., 
 
 New York City. 
 
 BURROWS, L. M., Castner, Curren & Bullitt, New York City. 
 GALLOWAY, A. W., Baltimore, Md. 
 CAPERTON, G. H., President, New River Coal Co., Charleston, 
 
 West Virginia. 
 
 MCCANDLISH, LINDSAU, Hutchinson Coal Co., Philadelphia, Pa. 
 PEALE, REMBRANDT, Grand Central Terminal, New York City. 
 RENEHAN, J. A., New York City. 
 
 TIERNEY, J. J., President, Powhatan Coal & Coke Co., Philadelphia. 
 WATKINS, T. H., President, Pennsylvania Coal & Coke Corp., New 
 
 York City. 
 WENTZ, D. B., Stonega Coal & Coke Co., Philadelphia, Pa. 
 
 The conferences of the coal committees developed the 
 fact that France and Italy are the countries standing in 
 greatest and most immediate need of coal ; that Belgium 
 is now producing within 90 per cent, of her pre-war 
 capacity, and exporting to Holland,, France and Italy, and 
 that bituminous coal only is wanted. Likewise the ques- 
 tion of American ship tonnage available, rates and, neces- 
 sarily, credits. Great Britain did not participate in the 
 Coal Committee conferences, a coal authority from that 
 country not being in the delegation, and for the further 
 reason that Great Britain has been, and is exporting coal 
 to the Allied countries in amounts detailed by the repre- 
 sentatives of the importing countries represented. 
 
 FRENCH COAL COMMITTEE. 
 
 The French and American Coal Committees met at the 
 Hotel Traymore on Monday, October 20, at 2.15 P. M., 
 Chairman F. S. Peabody, of the American committee, pre- 
 siding. 
 
 Mutual felicitations were exchanged. Mr. Peabody, in 
 his opening statement, announced that since the matter 
 of credit and finance would be adjusted by the Committee 
 directly in charge of those subjects, they would be omit- 
 ted from discussion in the coal group. He stated that four 
 
THE INTERNATIONAL TRADE CONFERENCE 321 
 
 factors entered into the furnishing of coal by the United 
 States to the European countries : 
 
 The supply of coal, 
 
 Railroad transportation, 
 
 Pier facilities, 
 
 Ocean tonnage. 
 
 At the present time, a fifth factor of importance is 
 labor. 
 
 Concerning the labor situation at present, Mr. Peabody 
 explained clearly, and noted the demand of the miners' 
 organization, and the danger of the strike on November 1. 
 
 At this point M. Francois Poncet read the following 
 statement : 
 
 THE COAL PROBLEM IN FRANCE AND THE ASSISTANCE OF 
 THE UNITED STATES. 
 
 Before the war, France produced about 40 million tons 
 of coal in round figures. Her consumption was equal to 
 about 63 million tons. She imported 23 million tons, 
 which made her one of the greatest importers of coal 
 in the world. 
 
 Of these 23 million tons that France imported, 11 
 million came from England, 7 million from Germany and 
 5 million from Belgium. 
 
 The war and the German invasion not only took away 
 half of her production, but removed half of her importa- 
 tion of coal. 
 
 To offset this terrific blow she was obliged to increase 
 the production of the basins that she still possessed as 
 much as possible, and to request England, her chief source 
 of supply, to increase the amount of coal that was being 
 shipped to France to as great an extent as possible. 
 
 In this way she was able not only to subsist during the 
 war, but to feed her manufacturing plants, and develop 
 the manufacture of war material to a large degree. Had 
 she been able to obtain a greater amount of coal she 
 would have been in a position to manufacture a much 
 greater quantity of steel than was actually manufac- 
 tured. It was this scarcity of coal that played an im- 
 portant part in limiting her metallurgical productions 
 during the war. 
 
 The following is the after- war situation: The mines of 
 the North of France, and the Pas-des-Calais, that yielded 
 
322 THE INTERNATIONAL TRADE CONFERENCE 
 
 20 million tons of coal in 1913, are destroyed. They will 
 not be able to produce any coal before 1922 at the earliest, 
 or probably before 1924, and until the normal figure of 
 production is attained,, from ten to twelve years must 
 elapse. In the mines of Lens alone, working with a force 
 of 40,000 h. p., it will take two years to pump out the 
 water that has overrun the pits. 
 
 All industries in the regions which have been freed 
 from German occupation, and which are now on the road 
 to re-establishment, require coal. In addition, industries 
 in general, that have derived from the war a new impetus 
 that is being sustained and developed, require still more 
 coal. Furthermore, the return of Lorraine to France 
 places at the disposal of the metallurgical industries 
 enormous quantities of iron ore that it intends to trans- 
 form into pig iron and steel. 
 
 And at this point we must bear in mind that progress 
 in industrial activity is indispensable for the recovery of 
 France, for the payment of her debts, for the restoration 
 of her economic equilibrium, all of which factors consti- 
 tute her internal peace. 
 
 In addition to all this, the return of Alsace-Lorraine to 
 France in no way represents a relief in the coal situation, 
 but rather a further aggravation of it. Alsace-Lorraine 
 produces 3,817,000 tons of coal, but her consumption 
 reaches 11 million tons, which leaves a new (burden) re- 
 sponsibility of 7,314,000 tons upon France. 
 
 A consideration of these different factors gives rise to 
 the following figures : 
 
 The coal requirements of France, which reached 63 
 million tons, in 1913, have now been increased to about 
 88 million tons. The deficit, which equalled 23 million 
 tons, approximately in 1913, is attaining 40 million tons. 
 To this figure, for the next ten years, we must add the 
 20 million tons of coal that the basins of the North and 
 the Pas-des-Calais will be unable to yield before another 
 ten years. 
 
 This means an annual deficit of 60 million tons of coal 
 that we must get from outside in order to be able to live 
 and to develop normally. 
 
 The treaty of Peace assigns to France the production 
 of the Saar basin for a period of 15 years. The Saar 
 basin produced 13 million tons of coal in 1913, of which 
 it consumed 5% million tons, leaving 7% million tons at 
 our disposal. 
 
 The Treaty of Peace further provides that for the next 
 
THE INTERNATIONAL TRADE CONFERENCE 323 
 
 five years Germany should deliver to France the equiv- 
 alent of the production of mines that she destroyed, 
 namely, 20 million tons. Nor is this coal to be delivered 
 gratis ; it is to be paid for at a price practically equal to 
 the export price paid for English coal. The Treaty of 
 Peace finally stipulated that Germany is to continue fur- 
 nishing to France the normal quantities that we received 
 from her before the war, i. e., 1 million tons. 
 
 By the mere application of the Treaty of Peace we 
 should recover, at least in theory, 34y 2 million tons of 
 coal. 
 
 We have to find a further quantity of 26 million tons. 
 Let us admit that Belgium will be able to continue to sup- 
 ply her pre-war figure of 5 million tons. We shall have 
 to ask England or other countries for the remaining 21 
 million tons. 
 
 Now, it is superfluous to insist upon the fact that Eng- 
 land cannot meet this total figure. We shall be more than 
 pleased if she will be able to give us from 9 to 10 million 
 tons. The decrease in English production that is the re- 
 sult of manifold reasons that have not to be taken up 
 here, compel the British government to limit its export 
 to a considerable degree. 
 
 That is not the sole difficulty. It is true that, ac- 
 cording to the Treaty of Peace, Germany is to deliver 
 27 million tons of coal to France. But that does not 
 mean that we can feel assured that she will meet all the 
 obligations to which she subscribed. Germany alleges the 
 diminution of her own production, her internal difficulties 
 and a thousand other reasons in which it is not the sim- 
 plest thing to distinguish sincerity from bad will. 
 
 We must take into consideration the difficulties attend- 
 ant upon transportation through the Rhine, Rotterdam, 
 and Antwerp, of such unusual amounts of coal. Canals 
 must be prepared ; new equipment is necessary. Viewing 
 the situation in its most favorable light, and admitting 
 that Germany will supply all that she has promised, it 
 will not be before next May, that is, until after the win- 
 ter season, that we shall be able to transport about two 
 million tons of coal per month. 
 
 During 1920 we cannot reasonably count on more than 
 15 million tons, approximately, of German coal. 
 
 To sum up : To meet a deficit of 60 million tons we shall 
 in reality receive but 38 million tons (8 million from the 
 Saar Basin), 15 from Germany, 10 from England, and 5 
 from Belgium. 
 
324 THE INTERNATIONAL TRADE CONFERENCE 
 
 There remains a gap of 22 million tons. The United 
 States can assist us in filling this gap. 
 
 We expect, through a series of systematic means, to 
 diminish the extent of our needs in coal perceptibly. We 
 expect to use liquid combustibles as much as possible. 
 We shall us hydraulic force. We shall have recourse to 
 lignite and slate-coal. We shall try to classify coal more 
 carefully and enrich it through washings, etc. We shall 
 thus continue the rationing of the domestic consumption 
 of coal, which we are still forced to observe and which 
 allows only 30 kg. of coal to a person each month. 
 
 But granted all this, whatever may be the extent of 
 the measures that we may employ, the fact still remains 
 that France requires a further supply of coal from the 
 United States, which is certainly not less than from 10 
 to 15 million tons. At any rate, this figure seems to ex- 
 ceed the quantity which the United States could give us. 
 As a result, we can really say that the French market can 
 absorb all the coal that the United States could give it. 
 
 The problem of receiving coal in France from America 
 resolves itself practically to a question of available ton- 
 nage, of freight, of selling price, and to the more general 
 question of the rate of exchange. 
 
 On these points we really require more information 
 than we can give. 
 
 We can do little more than say that because of the 
 difficulty in obtaining freight, its cost, and the increase 
 in the exchange rate, we have not been in a position to 
 attempt the extensive importation of coal into France 
 from America, except for minimum quantities. We have 
 had resort to American coal only as a last expedient or 
 as a desperate measure. 
 
 The net cost of a ton of American coal delivered in the 
 port of St. Nazaire, is about 250 /. ($32). This price ex- 
 ceeds the cost of English coal by about 100 /., and makes 
 the cost of American coal practically prohibitive. 
 
 Does that mean that we shall be unable to find the 
 assistance that we require to such an extent in the United 
 States ? Many people are of this opinion. But this is not 
 our opinion. We believe that before we can say that the 
 problem cannot be solved we should study it at very close 
 range, and we are grateful that the initiative of the 
 Chamber of Commerce has made it possible for us today 
 to appeal to your cooperation. 
 
 The amount of tonnage that is available is a considera- 
 tion that concerns you alone, in view of the present state 
 of our fleet of coal-ships. 
 
THE INTERNATIONAL TRADE CONFERENCE 325 
 
 The freight rate may probably be decreased by mak- 
 ing arrangements for a return freight. It can easily be 
 conceived that an American coal-ship carrying coal to 
 Marseilles, can bring back bauxite or Algerian iron-ore to 
 America. It can also be conceived that by placing con- 
 tracts that would provide for the delivery of a considera- 
 ble quantity of coal for a period of several years would 
 result in the lowering of the present price. 
 
 As to the questions of modes of payment, long-term 
 credits, and that obstacle that has become almost insur- 
 mountable, the exchange, it remains for the Finance Com- 
 mittee to study this side of the problem which we are here 
 considering. But, we still appeal to your personal sug- 
 gestions on this point. 
 
 M. FRANCOIS PONCET. 
 
 In reply, Mr. Peabody said that the operators of the 
 United States would be glad to furnish France the coal 
 needed, and were quite ready to make contracts for sev- 
 eral million tons of coal to go to France during a period 
 of years, if such arrangements were desired by the 
 French. 
 
 Mr. Farrell analyzed the present prices for American 
 coal delivered in France, and showed that ocean freight 
 accounted for three-fourths of the total delivered price. 
 He dwelt on the fact that these high ocean rates neces- 
 sarily acted as a restriction upon the development of the 
 American export coal business. The fact, that the bitum- 
 inous production this year, is approximately 100 million 
 tons less than last year, shows clearly the ability of the 
 American mines to supply European needs, if shipping is 
 available to transport the coal. 
 
 Mr. Wilshire, emphasized the belief that lack of ship- 
 ping was the primary difficulty of getting an adequate 
 supply of coal to France in the immediate future. He 
 said, he was confident that the coal could be produced to 
 the amount necessary, but that sufficient shipping was 
 not available. 
 
 Mr. Farrell and Mr. Wilshire, explained the workings 
 of the tide water coal pools to the French delegation, in 
 order that they might better understand the impossibility 
 
326 THE INTERNATIONAL TRADE CONFERENCE 
 
 of shipping coal of stipulated quality, if it were handled 
 through these pools. 
 
 Mr. Walsh elicited the information from M. Wadding- 
 ton, that France needs three times as much low volatile 
 as high volatile coal. It was pointed out by Mr. Wilshire, 
 that with the most efficient use of our present railroad 
 and harbor facilities, the United States could export over- 
 seas 25 to 30 million tons of coal per year. If, however, 
 greater exportation is desired, additional piers and tide 
 water terminals must necessarily be developed. 
 
 The export possibilities of the Southern Appalachian 
 coal fields, which use in large measure the Port of Charles- 
 ton, was explained by Mr. Knode. 
 
 The information relative to the allocation of vessels for 
 coal tonnage to Europe was given by Mr. Lyons, supple- 
 mented by Mr. Saint, of the Export Coal Division, of the 
 United States Shipping Board. 
 
 Mr. Morrow explained, briefly and clearly, the different 
 kinds of coal available for export. He also warned the 
 delegation against buying from irresponsible parties, and 
 emphasized the need of care in the purchase of coal. 
 
 Attending the conference were the following : 
 
 For France. 
 M. FRANCOIS PONCET. 
 M. A. F. WADDINGTON. 
 M. N. GODET. 
 
 COMMANDANT HENRY VARRAIGNE. 
 M. JEAN PARMENTIER. 
 
 For United States. 
 
 FRANK S. PEABODY, Chairman; Board of Directors, Peabody Coal 
 
 Co. 
 
 J. D. A. MORROW, Vice-President, National Coal Association. 
 THOS. F. FARRELL, Vice President, Pocahontas Fuel Co. 
 HENRY S. LYONS, Secretary, New England Coal & Coke Co. 
 
 F. W. WILSHIRE, Vice President, The Consolidation Coal Co. 
 JAMES P. WALSH, Vice President, Pittsburgh Coal Co. 
 RALPH H. KNODE, Vice President, Stonega Coke & Coal Co. 
 
 G. B. SEYMS, Rep. S. P. Hutchinson, President, Westmoreland 
 Coal Co. 
 
THE INTERNATIONAL TRADE CONFERENCE 327 
 
 H. A. COCHRAN, Rep. A. W. Galloway, President, Davis Coal & 
 Coke Co. and Pittsburgh Terminal Railroad & Coal Co. 
 
 A. M. FINE, Vice-President, Rep. W. H. Williams, Vice-President 
 Delaware & Hudson Coal Company. 
 
 GEORGE S. RICE, Chief Mining Engineer, U. S. Bureau of Mines. 
 
 H. Y. SAINT, Export Coal Division, U. S. Shipping Board. 
 
 J. H. Johnston, Director, Chamber of Commerce of the U. S. 
 
 JOHN CALLAHAN, Traffic Manager, National Coal Association. 
 
 J. 0. CALDWELL, Secretary to Traffic Manager, National Coal As- 
 sociation. 
 
 WILLIAM R. BENET, Rep. Nation's Business. 
 
 W. ESPEY ALBIG, Assistant Secretary, Rep. Chamber of Commerce 
 of the United States. 
 
 ITALIAN COAL COMMITTEE. 
 
 The coal committee met with the Italian delegation on 
 October 20, at 8.15 P. M. In the absence of the chair- 
 man, who had been called to Washington, to attend the 
 Wage Conference, with Secretary of Labor Wilson, Mr. 
 Wilshire, presided. 
 
 After a warm exchange of greetings between the Ital- 
 ian and American delegations, Chairman Wilshire gave a 
 statement of conditions similar to that given the French 
 mission, at the earlier meeting. In reply, Prof. Attolico 
 gave a brief resume of the Italian situation, explaining 
 the great need of coal in Italy to be supplied by the United 
 States. He pointed out, however, that the amount of coal 
 must necessarily be conditioned upon the price, since the 
 coal would enter into the cost of the manufacture of 
 articles to be sold on a competitive basis. He emphasized 
 the great burden placed upon Italian consumers by the 
 present ocean freight rates, and expressed the hope that 
 some reduction in these rates might be obtained. He 
 stated also, that since Italy would be a constant buyer 
 in the coal trade, it would be worth while for the pro- 
 ducers in the United States to make price concessions to 
 the Italian buyers. 
 
 The discussion developed the fact that Italy has been 
 receiving from the United States a considerable quantity 
 of inferior coal. The reason for this was explained, as 
 it was to the French delegation. The discussion of prac- 
 
328 THE INTERNATIONAL TRADE CONFERENCE 
 
 tical ways and means to increase the Italian coal market 
 always eventually reached the matter of ocean freight 
 rates. 
 
 In conclusion, Mr. Wilshire assured the Italian Mission, 
 that the American coal industry would be glad to do its 
 utmost to obtain coal supplies of the quantity and kind 
 needed. 
 
 The close study of conditions in America, which has 
 been made by the Italian Mission, led to a close agree- 
 ment between the American and Italian groups, regard- 
 ing the facts, and the measure which should be taken 
 for mutual helpfulness. 
 
 Attending the conference were the following: 
 
 For Italy. 
 
 COMMANDER PROF. BERNARDO ATTOLICO. 
 COMMANDER ENGINEER DR. LUIGI LUIGGI. 
 SIG. P. G. LAZZERINI. 
 SIG. ENGINEER F. QUATTRONE. 
 
 For The United States. 
 
 J. D. A. MORROW. 
 
 F. W. WILSHIRE. 
 A. M. FINE. 
 JAMES P. WALSH. 
 H. A. COCHRAN. 
 JOHN CALLAHAN. 
 HENRY S. LYONS. 
 J. O. CALDWELL. 
 
 G. B. SEYMS. 
 GEORGE S. RICE. 
 H. Y. SAINT. 
 WILLIAM R. BENET. 
 
 PAUL CLAGSTONE, District Secretary, Chamber of Commerce of 
 the United States. 
 
 JOSEPH CHIESA, Trade Commissioner, Bureau Foreign and Domes- 
 tic Commerce, United States Government. 
 
 W. ESPEY ALBIG, Assistant Secretary, Chamber of Commerce of 
 the United States. 
 
 BELGIAN COAL COMMITTEE. 
 The Coal Committee met with the Belgian delegation, 
 
THE INTERNATIONAL TRADE CONFERENCE 329 
 
 on October 21, at 2.15 P. M. Mr. J. D. A. Morrow, as 
 presiding officer, gave greetings to the Belgian Group, and 
 received in exchange cordial felicitations from it. He gave 
 illuminating and concise explanation of the different kinds 
 of American coal available for export, showing the loca- 
 tion of the fields, and the ports from which shipments 
 are made. 
 
 In reply, Mr. De Groote and Mr. Neve stated that Bel- 
 gium is now producing nearly 90 per cent, of her pre-war 
 output, and that, her chief requirements are for a compar- 
 atively small tonnage of coal for special uses, particularly 
 for cooking and metallurgical purposes. He stated that 
 prior to the war this coal had been obtained from Ger- 
 many ; now it must be secured in the United States. Bel- 
 gium is now exporting quantities of coal to Holland, 
 France and Italy. 
 
 Discussion disclosed the fact that anthracite coal from 
 America is wanted neither in Belgium, France or Italy. 
 The members of the Group discussed technical questions 
 regarding the characteristics of American gas coals, and 
 their utilization in by-product ovens, illuminating gas 
 plants and for other purposes. The Belgian delegation 
 explained that owing to the very high ocean freight rates 
 the Belgians would manage to get along with the smallest 
 possible importation of coal. Information was given 
 showing that Antwerp is installing facilities for the rapid 
 handling of coal. The discussion was quite informal, very 
 friendly and illuminating. 
 
 A comparison of the statements of the three delega- 
 tions, shows that the French are especially desirous of 
 securing the greatest possible quantity of coal from the 
 "United States within the next few months. The price 
 to be paid, while important, is a secondary consideration. 
 
 The Italians should like to have approximately 1 million 
 tons of coal per month from the United States. This, 
 however, is conditioned upon the price, since the cost 
 of the coal enters into the selling price of articles for 
 competitive sale, only the requirements of the Navy and 
 the railways being absolutely necessary. 
 
330 THE INTERNATIONAL TRADE CONFERENCE 
 
 The Belgians were concerned chiefly with the chemical 
 properties of the small amount of coal which they re- 
 quire from the United States. 
 
 Attending the conference were the following : 
 
 For Belgium. 
 
 M. FLORIMOND HANKAR. 
 
 M. ALBERT NEVE. 
 
 M. ALEXANDRE DE GROOTE. 
 
 For America. 
 
 F. W. WlLSHIRE. 
 
 J. D. A. MORROW. 
 THOS. S. FARRELL. 
 H. A. COCHRAN. 
 JOHN CALLAHAN. 
 HENRY S. LYONS. 
 J. O. CALDWELL. 
 
 G. B. SEYMS. 
 GEORGE S. RICE. 
 WILLIAM R. BENET. 
 
 G. W. REED, Vice President, Peabody Coal Co. 
 DAVID J. LEWIS, Member of United States Tariff Commission. 
 W. ESPEY ALBIG, Assistant Secretary, Chamber of Commerce of 
 the United States. 
 
 FORMULATION OF REPORT. 
 
 Subsequent to the sessions with the European Missions, 
 the American Committee, augumented by Samuel Heilner, 
 of Percy Heilner & Son, New York City, Lindsay Mc- 
 Candlish, Hutchinson Coal Co., Philadelphia, Pa., held 
 several meetings to perfect a complete statement of re- 
 sults attained during the conference and to formulate 
 adequate resolutions. 
 
THE INTERNATIONAL TRADE CONFERENCE 331 
 
 REPORT OF COMMITTEE. 
 
 The Coal Committee met with the delegations from 
 France, Italy and Belgium, according to schedule. 
 
 The French delegation stated that the total require- 
 ments of France would be about 88 million tons per year. 
 During the present winter it seems unlikely that Ger- 
 many will be able to deliver the coal to France stipulated 
 by the Peace Treaty. Allowing, however, for the imports 
 that can be obtained from Germany, Belgium and England 
 more than 22 million tons of coal are now required from 
 the United States. For some years to come several million 
 tons must be imported from America. Members of the 
 French delegation expressed the belief that control of 
 imports and distribution of coal in France, by the French 
 Government would be continued for perhaps six 
 months; thereafter it was expected that the business 
 would return to private hands. The Committee empha- 
 sized the high price of American coal delivered in France 
 due to high ocean freights. They also spoke of the diffi- 
 culty of obtaining sufficient vessel tonnage to transport 
 coal. 
 
 The Italian delegation dwelt on the importance of de- 
 veloping a permanent coal trade between the United 
 States and Italy, and said that Italy would necessarily 
 now look to this nation for several million tons of coal 
 annually. They also pointed out the excessive cost to 
 Italy of present imports of American coal with ocean 
 freights so high, and with exchange rates so unfavorable 
 to Italy. Speaking of the scarcity of shipping to trans- 
 port coal to Italy, the delegates explained that Italy is 
 using some of her own ships, and is chartering other 
 ships to carry her coal imports, and is thus helping to 
 bear the burden of transporting coal across the ocean. 
 
 The conference with the Belgian representatives de- 
 veloped the fact that Belgium is now producing nearly 
 90 per cent, of her pre-war coal production. Her chief 
 needs are for coking and other special coals, but with 
 the present prices of American coal so high when de- 
 livered in Belgium, on account of ocean freights, no im- 
 portant purchases of coal by Belgium in this market are 
 to be expected. 
 
 Your Committee explained the nature of American 
 coals and the different kinds which are available for ex- 
 port, and for use abroad. It mentioned the probability 
 
332 THE INTERNATIONAL TRADE CONFERENCE 
 
 of a strike of bituminous coal miners on November first. 
 Your Committee felt it necessary to warn European pur- 
 chasers against the activities of irresponsible speculators 
 in the export coal trade, many of whom have never had 
 any connection with the coal business, and have no ex- 
 pectation of continuing in it, and are offering to sell coals 
 which they can not obtain and deliver. It explained, that 
 the Tidewater coal pools, conducted by the United States 
 Railroad Administration, prevent the delivery of coal of 
 stipulated character on export contracts when the coal 
 is handled through these pools. This statement developed 
 the fact that European buyers are opposed to accepting 
 pool coal, and do so only because they may not be able 
 to obtain what they require outside the pools. 
 
 Credits and financial arrangements were mentioned, but 
 were left to the Committees on Credit and Finance, with 
 the assurance that American coal exporters would do 
 their full part in carrying out any recommendations of 
 the Committee on Credit and Finance. 
 
 The conference developed the unanimous opinion, that 
 there is no European demand for anthracite, but that the 
 need is for bituminous coal. It was made clear that, 
 barring a strike, America can produce ample bituminous 
 coal of the quantities and kinds sufficient to supply the 
 needs of our Allies in Europe, but that scarcity of ocean 
 shipping and high ocean freight rates are preventing the 
 shipment of the coal required. The further fact was 
 brought out that if our overseas coal trade is to be much 
 expanded, better facilities must be provided for export 
 shipments at American coal ports, and for discharge at 
 European ports. 
 
 The conferences also developed unanimity of sentiment 
 that the task of supplying our Allies with sufficient coal 
 can best be handled through the normal activities of the 
 business men of the nations involved, free from restric- 
 tions or interference by their Governments. 
 
 In conclusion, your Committee desires to express its ap- 
 preciation of the great and progressive work done by 
 the United States Chamber of Commerce, and pledges 
 itself, and the coal industry to use every possible effort 
 to bring to a successful outcome the deliberations of the 
 Conference. We also wish to express to the members of 
 the visiting delegations, our thanks for the clear and lucid 
 manner in which they brought the necessities of their 
 respective nations before us and the helpful suggestions 
 they made. 
 
 FRANK S. PEABODY, Chairman. 
 
THE INTERNATIONAL TRADE CONFERENCE 333 
 
 COMMITTEES ON FOODSTUFFS. 
 BELGIUM. 
 
 M. DE GROOTE. 
 M. HANKAR. 
 M. JANSSEN. 
 
 FRANCE. 
 
 M. JULIEN POTIN. 
 
 M. BARON DU MARAIS. 
 
 M. ANDRE HOMBERG. 
 
 M. LOIZEAU. 
 
 M. MAURICE BOYER. 
 
 M. DE PELLERIN DE LA TOUCHE. 
 
 M. PARMENTIER. 
 
 GREAT BRITAIN. 
 
 HON. J. G. JENKINS. 
 BAILIE JOHN KING. 
 MR. FRANK MOORE. 
 
 ITALY. 
 
 PROF. B. ATTOLICO. 
 V. MENEGHELLI. 
 A. JACCARINO. 
 G. PIETRA. 
 DR. RUGGIERI. 
 G. GRANATA. 
 
 AMERICA. 
 
 THEODORE F. WHITMARSH, Chairman; Vice-President, Francis H. 
 Leggett & Co., New York City. 
 
 DR. VERNON KELLOGG, Vice-Chairman and Secretary, The Na- 
 tional Research Council, Washington, D. C. 
 
 ADOLPH BOLDT, Assistant Secretary, Chamber of Commerce of the 
 United States, Chicago, 111. 
 
 AMENDT, GEORGE A., The Amendt Milling Co., Monroe, Mich. 
 
 BARNES, JULIUS H., President, Food Administration Grain Cor- 
 poration. 
 
334 THE INTERNATIONAL TRADE CONFERENCE 
 
 BENTLEY, C. H., Vice-President, California Packing Corporation, 
 San Francisco, Cal. 
 
 BISHOP, L. R., Secretary, Rice Association of California, San Fran- 
 cisco, Cal. 
 
 BREISCH, CHRISTIAN, President, Michigan Bean Association, Lans- 
 ing, Mich. 
 
 BURROWS, W. F., Libby, McNeill & Libby, Chicago, 111. 
 
 DAILY, H. A. N., President, National Canned Foods and Dried 
 Fruit Brokers' Association, Philadelphia, Pa. 
 
 DEMING, E. B., Pacific-American Fisheries, South Bellingham, 
 Wash. 
 
 DOTY, E. E., President, New York State Bean Shippers' Associa- 
 tion, Rochester, N. Y. 
 
 FLASH, EDWARD FRANK, JR., President, New York Produce Ex- 
 change, New York City. 
 
 HAWKINSON, J. A., President, Allied Packers, Inc., Chicago, 111. 
 
 JACKSON, GEORGE S., Vice-President, Food Administration Grain 
 Corporation, Baltimore, Md. 
 
 MAHR, JULIUS D., New York Mercantile Exchange, New York City. 
 
 MOORE, O. J., Sioux City, Iowa. 
 
 MORGAN, S. T., President, Southern Cotton Oil Co., New York City. 
 
 NISWANDER, J. F., Vice-President, California Peach Growers' As- 
 sociation, Fresno, Cal. 
 
 NORDIN, W. T., American Milk Products Corp., New York City. 
 
 SEARS, L. A., W. R. Roach & Co., Grand Rapids, Mich. 
 
 SKIPWORTH, V. D., Vice-President, Wilson & Co., New York City. 
 
 SWEET, W. F., President, Rumford Chemical Works, American 
 Specialty Manufacturers' Association, Providence, R. I. 
 
 STUART, HENRY, Richmond, Va. 
 
 SWIFT, G. F., JR., Swift & Co., Chicago, 111. 
 
 THOMAS, HOLGATE, California Associated Raisin Co., Fresno, Cal. 
 
 WHITE, F. EDSON, Armour & Co., Chicago, 111. 
 
 BELGIUM. 
 
 The Committee on Foodstuffs met October 20, at 2:15 
 P. M., with the Belgian Committee, consisting of M. De 
 Groote and M. Hankar. The American Committee in at- 
 tendance were as follows : 
 
 THEODORE F. WHITMARSH, Chairman. 
 DR. VERNON KELLOGG, Vice-Chairman. 
 ADOLPH BOLDT, Assistant Secretary. 
 C. H. BENTLEY. 
 L. R. BISHOP. 
 CHRISTIAN BREISCH. 
 W. F. BURROWS. 
 
THE INTERNATIONAL TRADE CONFERENCE 335 
 
 H. A. N. DAILY. 
 E. B. DEMING. 
 
 E. E. DOTY. 
 
 J. A. HAWKINSON. 
 
 GEORGE S. JACKSON. 
 
 JULIUS D. MAHR. 
 
 O. J. MOORE. 
 
 S. T. MORGAN. 
 
 J. F. NISWANDER. \ 
 
 W. T. NORDIN. 
 
 L. A. SEARS. 
 
 V. D. SKIPWORTH. 
 
 Gov. HENRY STUART. 
 
 HOLGATE THOMAS. 
 
 F. EDSON WHITE. 
 DR. ALONZO TAYLOR. 
 MR. F. B. WISE. 
 
 Chairman Whitmarsh, announced that the discussions 
 would be informal, and questions would be asked so as to 
 develop the freest exchange of conditions and ideas. The 
 Belgian Committee reported in substance as follows : 
 
 That the United States price on wheat and freight rates 
 are high, and that the exchange rate also militated 
 against their buying in this country. The present ex- 
 change rate with the United States is 8.65, as compared 
 with the normal rate of 5.20. Freight rates on wheat 
 from the United States to Great Britain is one-half that 
 to Belgium. However, as explained, this is due to the fact 
 that the rate to England on wheat is fixed by the gov- 
 ernment. 
 
 Mr. George S. Jackson, Vice-President of the Food Ad- 
 ministration Grain Corporation, explained that England 
 gained the advantage by compelling her own ships to 
 carry grain at a low rate, and that the United States Ship- 
 ping Board could not change the situation so long as 
 England maintained her present policy. In order to ab- 
 sorb part of the unfavorable exchange and obviate too 
 high prices the Belgian Government is selling the wheat 
 to consumers at less than cost. 
 
 Belgium produces three-fourths of her requirements 
 in bread products. Before the war they imported one- 
 half of their breadstuffs products from the Black Sea 
 countries. The exchange rate with other countries is more 
 favorable than with the United States. The Belgian 
 delegates reported that they will soon be able to obtain 
 
336 THE INTERNATIONAL TRADE CONFERENCE 
 
 wheat from Russia and Roumania. They also reported 
 having investments and money in Argentine, where they 
 can also buy wheat. 
 
 There is no demand for canned vegetables, milk and 
 fruit in Belgium, but there is some demand for canned 
 meats. They are now importing some cattle from Can- 
 ada, United States and Holland. The fishing industry 
 of Belgium, is not yet normal, but it is hoped that condi- 
 tions will improve in the near future. 
 
 Of the edible oils they import, one-fourth comes from 
 the United States,, the balance from East India, China 
 and Japan. They also import peanuts and copra, 
 which they crush themselves. The exchange rate is a 
 little more favorable in the East than with the United 
 States. Consumption of butter substitutes is increasing. 
 There is very little demand for rice and dried fruit, as 
 they are a fruit producing country. They purchase goods 
 from the East by exchanging products, shipping some 
 steel to India. They are large packers and exporters of 
 canned peas and asparagus. 
 
 There is no demand for corn for human consumption, 
 and very little demand for beans, as they now desire a 
 change from their war diet. The Belgian delegates re- 
 ported that if their exports to the United States could 
 be increased, the export rates would become more favor- 
 able. 
 
 On the subject of long credits, M. De Groote empha- 
 sized the fact, that credits were not sought, because Bel- 
 gium has no money, but almost entirely because of the 
 present unfavorable rate of exchange. Until this is cor- 
 rected, he said, there can be no great extension of his 
 country's trade with us. 
 
 Dr. Alonzo Taylor, who attended the meeting, and made 
 an informal statement at the request of Chairman Whit- 
 marsh, warned the Americans that more rather than 
 less government control of trade was to be expected in 
 European countries. In order to restrict imports to those 
 products, which were most needed in reconstruction, the 
 European governments would make every effort to ex- 
 clude other goods, even keeping food imports down to 
 the lowest level consistent with the necessary feeding of 
 their peoples. 
 
 FRANCE. 
 At a meeting of the Committee on Foodstuffs, October 
 
THE INTERNATIONAL TRADE CONFERENCE 337 
 
 20, at 8.15 P. M., the following delegates of France were 
 present : 
 
 M. TIRMAN. 
 
 M. WADDINGTON. 
 
 M. BOUYSSON. 
 
 M. POTIN. 
 
 M. DOLLEANS. 
 
 M. PARMENTIER. 
 M. BOYER. 
 
 In the informal conference, the following facts and 
 statements were submitted: 
 
 Argentine grain can be bought for less than it can be 
 bought from the United States. 
 
 France has investments in Argentine, which is a fac- 
 tor in maintaining the balance of exchange. 
 
 France now raises quite a few hogs and within a year 
 expects to raise enough for their own requirements. 
 
 Edible oils are obtained from her colonies, especially 
 in Africa, to meet their requirements. They import con- 
 siderable cotton seed and crush same themselves. 
 
 In the final analysis, the question of buying products 
 from this country is one of credit and exchange. The 
 shortage of labor is still felt in France. As a result of 
 the war, they lost 1,700,000 men. 
 
 Delegates believe the question of paying for food and 
 other products must be solved by the Financial Commit- 
 tee. 
 
 Mr. Bell, of the Washburn-Crosby Flour Mills, Minne- 
 apolis, Minn., suggested that the question of exchange 
 will adjust itself if we can aid France in increasing her 
 production and selling us more goods. 
 
 It was suggested by the Americans, that France could 
 materially increase her exports to the United States, by 
 increasing production of her high grade canned goods, 
 and thereby reduce the cost, which is necessary in order 
 to increase their volume of business in this country. 
 
 The fact was developed, that France's exports of wine 
 and spirituous liquors for the year ending June 30, 1914, 
 amounted to only $7,000,000. The suggestion was offered 
 that as France has recently acquired considerable potash 
 fields, that their exports of such products could be ma- 
 terially increased to this country,, which would more than 
 offset the loss on wine exports. 
 
 It was reported that France has perhaps less labor un- 
 rest than any other European country. 
 
338 THE INTERNATIONAL TRADE CONFERENCE 
 
 France has a big wheat production, and can practi- 
 cally grow enough to meet all their requirements. They, 
 however, will need and can use considerable dried fruits. 
 
 They export to the United States considerably in sar- 
 dines, mineral waters, preserves, linens, dresses and in 
 art products. It was developed that as 7,000,000 men 
 of France enlisted in the army, very few were demobilized 
 in time to be of any material aid in crop production this 
 year, hence France is in great need of all foodstuffs this 
 year. 
 
 During the Conference, M. Jules Potin submitted a for- 
 mal report, as follows : 
 
 REPORT ON AGRICULTURE AND FOODSTUFFS IN 
 
 FRANCE. 
 
 BY M. JULIEN POTIN 
 
 I am now touching a topic that will not fail to interest 
 you all, gentlemen, as it is the basis of our material life : 
 I mean foodstuffs. 
 
 France, before the war, enjoyed from the foodstuff 
 point of view, a most desirable situation due to her fertile 
 soil, to her mild climate, to the qualities of her peasants. 
 She found within her own boundaries the greatest part 
 of the necessary foodstuffs. 
 
 A few figures will illustrate what I have just said: In 
 1912, we imported only 6% of our wheat, less than 3% 
 of our oats from our Colonies, hardly any sugar was 
 needed and, as to meat, only a few specialties. 
 
 Said situation has been destroyed by the war. Our 
 mobilization has withdrawn from the fields all our young 
 and middle-aged manhood, and the richest part of our 
 territory, which gave the greater part of our sugar and 
 an important part of our cereals had been invaded at the 
 beginning of the war and devastated. 
 
 The area of tilled land passed from 1913 to 1917- 
 
 For wheat: from 16,355 acres to 10,477 acres. 
 
 For oats : from 9,875 acres to 7,375 acres. 
 
 For sugar beets : from 622,500 acres to 190,000 acres. 
 
 At the same time our sugar factories in the North of 
 France, had been taken away from us at the beginning 
 of the war, the number of our sugar factories being con- 
 sequently reduced to 64 out of a total of 206. And still 
 the output was not decreasing. 
 
 Owing to the help of our women, of our children, of our 
 
THE INTERNATIONAL TRADE CONFERENCE 339 
 
 men over 52 years, who were not called to the trenches, 
 the tilled land remained as fertile as before the war, and 
 two and a half acres (1 hectare) gave not less than 14!/2 
 quintals, in 1918, against 13.3, in 1913. 
 
 As to oats, conditions without being unfavorable are 
 not as good as they used to be as the output fell from 13 
 quintals in 1913, to 10 in 1918. 
 
 On the other hand, 2y 2 acres of land, cultivated in beet- 
 root, gave in 1918, 26 tons against 24 in 1913. 
 
 Our reserves of meat represented by our cattle were 
 decreasing at the same time, due to the tremendous con- 
 sumption of the armies, to our losses, and lack of labor. 
 
 Consequently, our imports increased, for fresh or 
 frozen meat, from none to 34,000 tons. 
 
 For salted meat from 550 to 48,000 tons. 
 
 What is going to be the situation in the years to come ? 
 Very important purchases will certainly be necessary. It 
 is true that the North of France has been returned to us, 
 but we have to render fertile again the devastated area. 
 Farms must be rebuilt. Labor, machinery and fertilizers 
 are to be brought forward, and this work of reconstruc- 
 tion, is not to be confined to the devastated area, but must 
 be extended to the whole of France. Fertilizers must be 
 distributed everywhere. It is urgent to replace by agri- 
 cultural machinery the lacking labor lost by hundreds of 
 thousands for the defense of the country, and the liberty 
 of the world. 
 
 The purchasing campaign of 1919-1920, was opened in 
 October, 1919, for the year 1919-1920. Our provisions 
 were the following: 
 
 Wheat, tons 4,000,000 
 
 Oats, tons 1,000,000 
 
 Frozen meat, pounds . 15,780,000 
 
 Porkstuffs, tons 150,000 
 
 Preserves, tons 20,000 
 
 Sugar, tons 500,000 
 
 Condensed milk, tons 30,000 
 
 Our food department has made a point to buy from the 
 different producers on the most advantageous terms in 
 the United States, in Argentine, Australia, Roumania, 
 Serbia, Southern Russia and Northern Africa. 
 
 Today our needs are covered until the end of 1919. 
 But we have still to buy from the first of January,, 1920, 
 to the first of October, 1920, the following quantities : 
 
340 THE INTERNATIONAL TRADE CONFERENCE 
 
 Wheat, tons 1,000,000 
 
 Oats, tons 200,000 
 
 Sugar, tons 100,000 
 
 Condensed milk, cases 600,000 
 
 Salted meat, tons 25,000 
 
 Lard, tons 25,000 
 
 Ham, tons 25,000 
 
 Sausages, tons 25..000 
 
 These different items amounting approximately to 
 $145,540,000, will have to be found in the different pro- 
 ducing countries. 
 
 In closing, I want to express a few words of hope as 
 regards our country. 
 
 I have told you how fertile our soil was. I feel con- 
 fident that before long, owing to the work of reconstruc- 
 tion, which we have undertaken, owing to the develop- 
 ment in the use of agricultural machinery, and in spite 
 of our heavy losses, our country will see an era of produc- 
 tivity which will make her stronger than ever. 
 
 ITALY. 
 
 Meeting held October 21, with the Italian delegates who 
 were represented as follows: 
 
 PROF. B. ATTOLICO. 
 V. MENEGHELLI. 
 G. PIETRA. 
 DR. RUGGIERI. 
 
 G. VlTELLI. 
 
 L. SCARAMELLI. 
 
 DR. A. BONASHI. 
 
 During the informal discussion, Professor Attolico, 
 acting as spokesman, reported on the following conditions 
 existing in Italy: The greatest requirement is wheat. 
 Their wheat crop was less than last year's by 500,000 
 tons. Last year, they imported 3,000,000 tons of cereals. 
 Before the war they had near wheat markets in Russia 
 and Roumania, also had good trade connections with Ar- 
 gentine. They should import two-thirds of their cereal 
 requirements from the United States, the balance from 
 Argentine. All European crops are short this year. They 
 will need considerable meat products, canned and frozen. 
 
 Last year they had meat only once a week. During 
 the past year they have materially replaced their herds 
 of cattle, and now have almost as many as before the 
 
THE INTERNATIONAL TRADE CONFERENCE 341 
 
 war, but not in weight, the cattle being young, and it will 
 require three years before the normal weight in cattle 
 will be completed. 
 
 They need only 40,000 tons of sugar; have plenty of 
 fruit, especially in South Italy. They need edible oils. 
 The pressing necessity for bread products is emphasized 
 by their statement, that they cannot import their needs 
 in cotton, minerals, coal, etc., until they first import their 
 wheat requirements. It is imperative, that they have 
 credit in buying wheat. They can buy all other require- 
 ments on personal credit. They need mostly winter wheat 
 for the manufacture of macaroni and paste. They claim 
 to be the only country that adopted the war bread from 
 the beginning of the war, and have continued to do so 
 up to the present time. Conditions are not favorable in 
 trading with Argentine. American representatives re- 
 ported that they can furnish ample canned and frozen 
 meats. 
 
 Italy will require considerable condensed milk, and pre- 
 fer the sweetened product, but may not be able to obtain 
 same on account of the present shortage of sugar. They 
 do not use butter substitutes, and do not obtain edible oils 
 outside of the United States. This year's olive crop is 
 short. They could barter in selling olive oil for cotton 
 seed oil from the United States. They need long-time 
 credits from one to five years. 
 
 They formerly exported butter, cheese and beans, but 
 now must import same. American delegates suggested 
 the group credit plan on the part of the Italian mer- 
 chants. Italy could increase their exports of mineral 
 water, tomato catsup, dried fruits, silks, raisins, grapes 
 and grape juice, marble, linens and nuts. The war in- 
 terfered with their plans of increasing sales in this coun- 
 try, but a movement is already started to conduct a com- 
 prehensive advertising campaign to increase the sale of 
 their products in this country. Mr. Christian Breish, of 
 Lansing, Mich., stated that Italy could obtain all the 
 beans they required in this country, and that the proper 
 credit would be granted. Their rice crop is equal to their 
 home consumption, where they formerly exported this 
 product. 
 
 0. J. Moore, Vice-President of the National Wholesale 
 Grocers' Association, offered the cooperation of his or- 
 ganization in introducing in this country the Italian food 
 products. 
 
342 THE INTERNATIONAL TRADE CONFERENCE 
 
 ESTIMATE OF PURCHASES BY ITALY FOM UNITED 
 STATES OF AMERICA FOR THE SERIAL YEAR 
 
 1919 (Sept. 1) 1920 (August 31). 
 
 Foodstuffs. Tons. Dollars. 
 
 (000 omitted) (000 omitted) 
 
 Cereals for human alimentation... 2,000 180,000 
 
 Oats and substitutes 160 10,000 
 
 Dry pulses 12 1,920 
 
 Frozen meat 60 33,600 
 
 Canned meat 6 6,300 
 
 Salmon 6 2,400 
 
 Dry fish 12 4,200 
 
 Condensed milk 6 2,400 
 
 Animal fats and swine meats 48 36,000 
 
 Butter and cheese 66 6,600 
 
 Comestible oils 9 4,950 
 
 Sugar 40 7,000 
 
 Fecules 1 250 
 
 Miscellaneous 5 5,000 
 
 Total 2,371 300,620 
 
 Specifications of Different Foodstuffs. 
 
 Commercial Bellies: 
 12-25 average. 
 Long Cut Hams : 
 
 8-25 average. 
 Fat Backs : 
 
 6- 8 average. 
 8-10 average 
 10-12 average. 
 Condensed Milk: 
 
 (Packed in 48 one-pound tins to a case). 
 (Packed also in 48 14-ounce tins to a case) . 
 Sweetened condensed milk, sweetened evaporated milk, 
 sweetened concentrated milk is the product result- 
 ing from the evaporation of a considerable portion of the 
 water from the whole, fresh, clean lacteal secretion ob- 
 tained by the complete milking of one or more healthy 
 cows, properly fed and kept, excluding that obtained 
 within fifteen days before and ten days after calving, to 
 which sugar (sucrose) has been added. It contains, all 
 tolerances being allowed for, not less than (28%) twenty- 
 
THE INTERNATIONAL TRADE CONFERENCE 343 
 
 eight per cent, of total milk solids, and not less than eight 
 
 per cent. (8%) of milk fat. 
 
 Butter: 
 
 (Packed in 5 and 6 Ib. tins) 88/90 score quality. 
 Cheese : 
 
 (Strongly seasoned.) 
 Cottonseed Oil: 
 
 Combustible, of best quality, non-congealable, suit- 
 able for mixture with olive oil ; deodorized. 
 
 1. Prime Winter Yellow (deodorized). 
 
 2. Prime Summer Yellow (deodorized). 
 Packed in barrels containing not less than 360 pounds 
 
 and not more than 400 pounds net each. 
 Peanut Oil: 
 
 Choice, deodorized, packed in tierces. 
 Frozen Beef: 
 
 Commercial trim with hanging tender and breast- 
 fats removed ; skirts fairly well trimmed with kid- 
 neys and kidney suet left in. 
 1-Steers 3-Heifers 
 2-Cows 4-Oxen 
 
 Averages : 
 
 450-500 Ibs. 
 500-600 Ibs. and up 
 Canned Meats: 
 
 Canned Corned Beef 12/6 Ib. tins to a case 
 
 Lunch Tongue 12/6 Ib. tins and other sizes 
 Ox Tongue 12/6 Ib. tins and other sizes 
 Boiled Beef 12/6 Ib. tins and other sizes 
 Veal Loaf 48/7 oz. tins and other sizes 
 Beef Loaf 12/6 Ib. tins and other sizes 
 Salmon : 
 
 Pink 1 pound tins, 48 tins to a case 
 Chum 1 pound tins, 48 tins to a case 
 Dry Fishes: 
 
 Codfish Packed in 448-pound drums (dry) also 560 
 
 pound drums (soft cured). 
 Haddock 
 Pollock 
 Hake 
 Dry Salt Meats: 
 
 Packed in boxes containing 5/600 Ibs. net each in 70- 
 
 Ibs. salt. 
 Dry Salt Fat Backs : 
 
 8-10 pound average 
 10-12 pound average 
 12-14 pound average 
 
344 THE INTERNATIONAL TRADE CONFERENCE 
 
 14-16 pound average 
 
 16-18 pound average 
 Dry Salt Bellies: 
 
 20-25 pound average 
 
 25-30 pound average 
 
 30-35 pound average 
 
 American Cut Hams, Dry Salt Cure, Unsmoked : 
 8-10 pound average 
 
 10-12 pound average 
 
 12-14 pound average 
 
 14-16 pound average 
 
 16-18 pound average 
 
 18-20 pound average 
 
 20-24 pound average 
 Square Cut Bellies: 
 
 12-25 pound average 
 
 12-30 pound average 
 
 AMERICAN. 
 
 The American Committee met October 21, and Chair- 
 man Whitmarsh appointed a Resolution Committee as 
 follows : 
 
 DR. VERNON KELLOGG. 
 E. B. DEMING. 
 C. H. BENTLEY. 
 HON. HENRY STUART. 
 
 A motion made by C. H. Bentley was adopted, to the 
 effect that the Resolution Committee draw up a report 
 and resolutions to be submitted to the General Resolution 
 Committee, regarding the needs of France and Italy, and 
 the necessity of extending credit to them in the purchases 
 of their grain requirements. 
 
 THE FOOD COMMITTEE MEETING, OCTOBER 22, 
 
 1919. 
 GREAT BRITAIN. 
 
 At a meeting this morning with the British delegates, 
 the following gentlemen represented that committee : 
 
 HON. J. G. JENKINS. 
 BAILIE JOHN KING. 
 
THE INTERNATIONAL TRADE CONFERENCE 345 
 
 During the informal discussion, the English representa- 
 tives submitted the following facts : : , 
 
 The English people are under a rationing system the 
 same as during the war, and mentioned, incidentally, that 
 they received as much butter at one meal in this country 
 as their total week's allowance. They have an ample 
 stock of grain in Australia and New Zealand, but lack 
 of transportation facilities has prevented the shipment 
 of same. This situation,, however, will improve next year. 
 They reported that considerable food has deteriorated in 
 the change of shipping or improper storage facilities at 
 certain ports. They have conducted a vigorous campaign 
 against speculation and hoarding of food, and are dealing 
 with this situation in a satisfactory manner. Before the 
 war they received their sugar requirements from Ger- 
 many and Austria, which, of course, is not available now, 
 hence must obtain their supply elsewhere. Australia now 
 has some sugar to export. 
 
 Before the war, England imported four-fifths of its 
 food products ; now as a result of intensified farming and 
 their rationing system, are growing three-fourths of their 
 food requirements. They have very little milk, and cream 
 cannot be purchased. They are allowed one ounce of but- 
 ter per capita per week. They are operating under the 
 rationing system, and every consumer must register and 
 give a list of the dealers they purchased their supplies 
 from. One of the principal reasons for continuing the 
 rationing system is the fear of strikes and lack of trans- 
 portation facilities. Their grain crop is less than last 
 year. However, their colonies have larger wheat crops 
 this year. They will not be able to buy from European 
 countries on account of general economic conditions, 
 hence they are compelled to buy of their colonies and the 
 United States. They are large users of condensed milk, 
 and will need more on account of the great increase in the 
 cost of fresh milk. The demand for meat will continue, 
 requiring about the same as before the war. Canned 
 goods are increasing in demand. The home demand for 
 fish is being supplied; later on they can export. They 
 will continue to need the edible oils as in the past. They 
 use some rice which they can obtain from Eastern 
 colonies. 
 
 Following the conference with the British delegation, 
 the Food Committee then discussed the details of the re- 
 
346 THE INTERNATIONAL TRADE CONFERENCE 
 
 ports and resolutions to be submitted. A motion made 
 by Mr. Bentley, that the following resolutions be adopted, 
 was carried. The committee also thanked the Chairman, 
 Vice Chairman and Secretary for the interest that they 
 manifested in the meetings. 
 
 REPORT OF COMMITTEE. 
 
 Your special Committee on Foodstuffs, with twenty- 
 four attending members out of twenty-seven appointed, 
 representing in their interests a wide variety of American 
 nature foods, and prepared products, and coming from 
 all over the country from the Pacific to the Atlantic Coast, 
 has held meetings with the appointed representatives of 
 each of the foreign missions. 
 
 At these meetings, the food situation, as to the present 
 and for the coming year, of Belgium, France, Italy and 
 Great Britain, and the disastrous results on each of these 
 countries on the food conditions, especially in the way of 
 lessened production and restricted importations, produced 
 by the war, and the efforts being made in each country 
 to meet and remedy those conditions by controlled food 
 use and stimulation of production, together with detailed 
 statistical statements of the food importations needed by 
 each of these countries during the period until the har- 
 vests of 1920, especially the needed importations from the 
 United States, have all been presented and fully discussed. 
 
 From the lists made by the foreign representatives of 
 their needs of food importation from America, and the 
 statements made in the discussions of these lists by the 
 American committee members, representing the produc- 
 tion and handling of all these various foodstuffs desired 
 by the European countries, it is apparent that there 
 exists, or will be produced during the period voted, a suf- 
 ficient American surplus to provide practically all the 
 foodstuffs listed, in the quantities asked for. 
 
 But, it is also apparent that the governments and 
 buyers of the foreign countries are forced with certain 
 serious difficulties in the financing of their purchases from 
 the United States, the chief of which is the matter of the 
 exchange rates, which, at present, are greatly to the dis- 
 advantage of the foreign purchasers. 
 
 The principal remedies suggested for meeting this ma- 
 jor difficulty were two: One, especially made by the 
 foreign representatives, is the extension of long-term 
 credits by American sellers to the European purchasers. 
 
THE INTERNATIONAL TRADE CONFERENCE 347 
 
 The other, especially made by the American committee 
 members, is the high desirability of increased exportation 
 from the foreign countries to America of any and all of 
 their own special products suitable for the American 
 trade. A most sympathetic attitude toward both of these 
 matters was exhibited by the committee members, and 
 various practical suggestions were made by gentlemen of 
 the committee looking toward the realization of these 
 remedies. 
 
 In connection with the matter of increasing the Ainer- 
 ican use of the special food products, which could be pro- 
 vided by the European countries, it was especially sug- 
 gested that the foreign sellers would attempt a wider and 
 more general distribution of their products in America, 
 and in particular should arrange to avail themselves of 
 the already existing American trade organizations and 
 domestic system for exploitation and distribution. It 
 was stated by various gentlemen of the committee, rep- 
 resenting certain large American food trades, that there 
 undoubtedly exists great possibilities in the way of ex- 
 tending in this country, particularly at present, the use 
 of many high grade special food products of the Euro- 
 pean countries represented at the Conference. 
 
 In connection with the matter of the need for special 
 temporary credit arrangements for the European pur- 
 chasers, the Committee, being particularly impressed by 
 the peculiar needs of the countries associated with us 
 in the war, for the importation from the United States 
 of large quantities of cereals, both for human consump- 
 tion and for the rehabilitation of their national herds, 
 suggests to the Executive Committee that sympathetic 
 consideration be given to the idea of making recommen- 
 dations to the President in this matter. It may be appro- 
 priate to suggest that as a matter both of wise public 
 policy and of an extension of our humanitarian efforts 
 which cannot entirely cease with the ending of the war if 
 our voluntarily accepted obligations to our associates are 
 to be fully met the President should exercise his au- 
 thority under the Food Control Act to the end of making 
 special arrangements to provide these needed cereals in 
 such quantities and on such terms of credit as may seem 
 to him wise and safe. 
 
 It is fully realized by your Committee on Foodstuffs 
 that the matter of finance and credit is the particular 
 province of a special committee on those matters. But 
 the conferences of the Foodstuffs Committee with the 
 foreign missions have developed so clearly the fact that 
 
348 THE INTERNATIONAL TRADE CONFERENCE 
 
 the only serious difficulty both in the full meeting of the 
 absolute food needs of our associates in war and in the 
 development of a desirable foreign market for the Amer- 
 ican food supplies created by the stimulated production 
 due to the war situation, and of any surplus that may 
 be continued to be created, is that of a satisfactory ar- 
 rangement for a temporary unusually sympathetic treat- 
 ment of the foreign buyers as regards finance and 
 credit that your Committee is constrained to make as a 
 special recommendation to you the high desirability of a 
 strong effort to effect such an arrangement. 
 
 Your committee has been strongly impressed by the 
 great mutual advantage that can accrue to America and 
 to the European countries by a continuation of such con- 
 ferences as the present and strongly recommends that 
 some form of permanent international organization be 
 effected which will insure this continuation. 
 
 In concluding this brief report, your Committee wishes 
 to express through you to the foreign missions, its ap- 
 preciation of their full and frank statements regarding 
 the food situation in their respective countries, and the 
 pleasure of the members of the committee in having had 
 the opportunity of an enlightening personal contact with 
 the distinguished representatives of those countries will 
 be held in especial sympathetic memory by us, as having 
 been associated with our own country in the successful 
 prosecution of a righteous war for liberty and humanity. 
 
 (Signed) VERNON KELLOGG, Chairman, 
 C. H. BENTLEY, 
 E. B. DEMING. 
 HENRY STUART. 
 
 COMMITTEES ON METALS. 
 BELGIUM. 
 
 M. CANON-LEGRAND. 
 M. NEVE. 
 M. HANKAR. 
 M. DE GROOTE. 
 
 FRANCE. 
 
 M. DE FREMINVILLE. 
 M. PESSON-DIDION. 
 
THE INTERNATIONAL TRADE CONFERENCE 349 
 
 M. BARON DU MARAIS. 
 M. ANDRE HOMBERG. 
 M. LOIZEAU. 
 M. MAURICE BOYER. 
 M. TIRMAN. 
 
 M. DOLLEANS. 
 
 GREAT BRITAIN. 
 
 BAILIE JOHN KING. 
 SIR ARTHUR SHIRLEY BENN. 
 SIR JAMES HOPE SIMPSON. 
 MR. MARSHALL STEVENS. 
 HON. J. G. JENKINS. 
 MR. FRANK MOORE. 
 
 ITALY. 
 
 L. LUIGGI. 
 
 F. QUATTRONE. 
 
 G. B. CECCATO. 
 M. LUIGGI, JR. 
 A. PALANCA. 
 
 V. E. SILVESTRI. 
 E. FLORES. 
 P. TUCCIMEI. 
 M. MIOZZI. 
 
 AMERICA. 
 
 E. A. S. CLARKE, Chairman; 
 President, Consolidated Steel Corporation, New York City. 
 
 O. K. DAVIS, Vice-Chairman and Secretary; 
 Secretary, National Foreign Trade Council, New York City. 
 
 GEORGE H. MOSELEY, Assistant Secretary, 
 Chamber of Commerce of the United States, Otis Building, 
 
 Chicago, 111. 
 
 BOSTWICK, W. A., President, International Nickel Co., New York 
 City. 
 
 BUTTERWORTH, WILLIAM, President, Deere & Co., Moline, 111. 
 
 CARLTON, A. E., Mining Engineer, Colorado Springs, Colo. 
 
 CORNISH, E. J., President, National Lead Co., New York City. 
 
 CRANWELL, THOMAS G., President, Continental Can Co., Inc., Syra- 
 cuse, N. Y. 
 
 DOUGLAS, WALTER, President, Phelps-Dodge Corporation, New 
 York City. 
 
 ELTON, JOHN P., Vice-President, American Brass Co., Waterbury, 
 Conn. 
 
350 THE INTERNATIONAL TRADE CONFERENCE 
 
 JONES, B. F., JR., President, Jones & Laughlin Steel Co., Pitts- 
 burgh, Pa. 
 
 LEITH, C. K., Madison, Wis. 
 
 O'LEARY, JOHN W., Vice-President, Chicago Trust Co., Chicago, 111. 
 PALMER, EDGAR, President, New Jersey Zinc Co., New Y,ork City. 
 PEEK, GEORGE N., President, Moline Plow Co., Moline, 111. 
 THOMAS, EUGENE P., U. S. Steel Products Corporation, Moline, 111. 
 YEATMAN, POPE, Mining Engineer, New York City. 
 
 ITALY. 
 
 The Committee on Metals met with the Italian Dele- 
 gation in Room 526, Hotel Traymore, at 2.15 P. M., Tues- 
 day, October 21, 1919 . 
 
 Upon roll-call the following persons were present: 
 
 For Italy. 
 
 L. LUIGGI. 
 M. LUIGGI, JR. 
 P. TUCCIMEI. 
 M. PALANCA. 
 
 For the Committee. 
 
 E. A. S. CLARKE, Chairman. 
 
 O. K. DAVIS, Secretary. 
 
 G. H. MOSELEY, Assistant Secretary. 
 
 GEO. N. PEEK. 
 
 EDGAR PALMER. 
 
 E. J. CORNISH. 
 
 POPE YEATMAN. 
 
 WALTER DOUGLAS. 
 
 EUGENE P. THOMAS. 
 
 A. E. CARLTON. 
 
 Conferees and Advisors. 
 
 GEO. E. RICE. 
 H. C. MORRIS. 
 L. C. GRATON. 
 GUY C. RIDDELL. 
 JOHN HUGHES. 
 PEMBERTON SMITH. 
 FRED C. COTTRELL. 
 E. S. BASTIN. 
 
THE INTERNATIONAL TRADE CONFERENCE 351 
 
 C. E. SlEBENTHAL. 
 
 WALTER TOWER. 
 MR. HUNTINGTON. 
 L. C. WELLS. 
 
 L. Luiggi, spoke for the Italian delegation, stating that 
 the annual requirements for the metal industries in Italy 
 during the next five years could be summarized as fol- 
 lows: 
 
 Tons. 
 
 Pig iron 200,000 
 
 Plates and shapes 60,000 
 
 Ingots, semi-finished 
 
 Steel and rail 215,000 
 
 Scrap iron 100,000 Eventually in case all 
 
 Tin flats 5,000 the pig iron and semi- 
 Copper 15,000 finished steel could not be 
 
 Various metals 10,000 got. 
 
 Total 605,000 
 
 These are minimum figures and requirements for our 
 own needs. This will enable us to give employment to 
 available labor, which is necessary to keep labor satisfied, 
 rebuild and extend the railways of the country which need 
 repair, reconstruct bridges, and complete their shipbuild- 
 ing program to increase and replace the enormous ton- 
 nage destroyed during the war. 
 
 Prior to the war Italy consumed about 2,000,000 tons 
 of iron and steel, about 500,000 tons came from Eng- 
 land, Germany and Austria. The rest was made in Italy. 
 Now they would like the 500,000 tons to come from 
 American markets to meet their needs. 
 
 Italy has established shipyards, has abundant labor, 
 and can produce ships under favorable conditions. Also, 
 with a supply of raw materials could to advantage con- 
 struct machinery and parts for American manufacturers. 
 
 The metals required will be used mostly in shipbuild- 
 ing, in agricultural implements, machinery for cotton and 
 silk mills, rails for new lines, and repairs, tin plates for 
 developing canned goods industry, copper for electrical 
 equipment and future development of electric railways. 
 
352 THE INTERNATIONAL TRADE CONFERENCE 
 
 Italy has great quantities of lead, quicksilver, and 
 borax for export. Other products for export are marble, 
 sulphur, citrus fruits, laces, paintings, statuary, carpets, 
 china, olive oil and cheese. 
 
 The building industry will also require some quantity 
 of steel. 
 
 The development of the water power of the country 
 is contemplated for the future when it is desired to elec- 
 trify the transportation systems throughout the country 
 and effect a conservation of coal. 
 
 Electric furnaces have been installed and operated 
 which produce a superior grade of steel, equal to that pro- 
 duced in other countries. 
 
 The social conditions may be said to be stable, and no 
 danger of socialism or bolshevism as long as the inhabi- 
 tants are able to secure food. 
 
 The government may be said to foster the electrifica- 
 tion of railways, drainage of lands by means of pumps, 
 irrigation, etc.,, and American capital would be quite 
 welcome. 
 
 It was hoped that amicable relations could be estab- 
 lished whereby Italy could secure the metals necessary, 
 not only for the present immediate necessities, but estab- 
 lish a trade that would extend to the future and that 
 would likewise find a market in America for many of the 
 products of their country which they are able to supply 
 in abundance. 
 
 FRANCE. 
 
 The Committee on Metals met with the French Delega- 
 tion in Room No. 526, Hotel Traymore, at 2.15 P. M., 
 Monday, October 20, 1919. 
 
 Upon roll call the following persons were present: 
 
 For France. 
 
 M. DE FREMINVILLE. 
 M. PESSON-DIDION. 
 M. BARON DU MARAIS. 
 M. LOIZEAU. 
 
THE INTERNATIONAL TRADE CONFERENCE 353 
 
 M. MAURICE BOYER. 
 M. TIRMAN. 
 
 M. DOLLEANS. 
 
 For the Committee. 
 
 E. A. S. CLARKE, Chairman. 
 
 0. K. DAVIS, Secretary. 
 
 G. H. MOSELEY, Assistant Secretary. 
 
 WILLIAM BUTTERWORTH. 
 
 A. E. CARLTON. 
 
 E. J. CORNISH. 
 
 WALTER DOUGLAS. 
 
 EDGAR PALMER. 
 
 GEORGE E. PEEK. 
 
 Representatives from the United States Government, 
 Advisors and Councillors. 
 
 GEO. F. RICE, Chief Mining Engineer. 
 
 H. C. MORRIS, Mining Engineer. 
 
 FRED G. COTTRELL, Assistant Director, Bureau of Mines. 
 
 E. S. BASTIN, U. S. Geological Survey. 
 
 C. E. SIEBENTHAL, U. S. Geological Survey. 
 
 L. C. GRATON, Mining Tax Division Internal Revenue. 
 
 GUY C. RIDDELL. 
 
 JOHN HUGHES, U. S. Steel Corporation. 
 
 WALTER TOWER, Consolidated Steel Corporation. 
 
 PEMBERTON SMITH. 
 
 MR. HUNTINGTON, Department of State. 
 
 L. C. WELLS, Department of State. 
 
 The French Mission stated that prior to the war their 
 consumption was about 120,000 tons of copper imports 
 94,000 tons, and exports 30,000 tons. Their annual re- 
 quirements for the present are now estimated at 90,000 
 tons of copper, to be furnished in the form of bars,, ingots 
 and electrolytic copper, this quantity to be used entirely 
 for home consumption, and not in any way for export. 
 On account of the enormous demand for war material 
 the foundries of France were encouraged by the Govern- 
 ment to increase the number of plants and production. 
 Today their requirements are for the material to keep up 
 the capacity of these plants. 
 
354 THE INTERNATIONAL TRADE CONFERENCE 
 
 The estimates for copper will undoubtedly vary owing 
 to salvage from war material and the use of other ma- 
 terials in connection with copper. Proposed construction 
 of electric railways, and power lines, are under discus- 
 sion, and should this develop, it will increase the demand 
 for these materials to some extent. No definite state- 
 ment of the extra requirements can be made at this time. 
 
 The requirements for ship plates for hull construction 
 is estimated to be about 100,000 tons up to the end of 
 1920. These ship plates are to be used in the shipyards 
 of France for the building of a merchant marine which 
 has suffered severely by the war. Before the war France 
 built 200,000 new tonnage every year. 
 
 The delegation wished information regarding modern 
 methods of shipbuilding, particularly electric welding 
 and riveting. Opportunity for visiting various plants 
 was offered to secure the information desired. 
 
 It was thought that the adoption of the American or 
 Lloyd's standard for testing and measuring steel would 
 be of great advantage in dealing with France on these 
 materials; that the method of testing materials should 
 be standardized, and in reference to this matter it was 
 suggested that the report of the United States Bureau 
 of Standards be consulted. 
 
 It was quite evident that France devoted her entire 
 energies to w r inning the war, and that is quite well illus- 
 trated in the statement of the increased number of blast 
 furnaces, and the fact that their tonnage in pig iron was 
 increased during the war to 600,000 tons and in steel to 
 1,500,000 tons annually. 
 
 Material available for export from France would be 
 manufactured cotton goods, vegetable oils, silk products 
 and chemicals. 
 
 As to the industrial situation in France there is no 
 idle labor. A large portion of those engaged in war and 
 war work have returned to their farms. Labor condi- 
 tions may be said to be favorable. Strikes, generally 
 speaking, to no extent have materially effected produc- 
 tion. 
 
THE INTERNATIONAL TRADE CONFERENCE 355 
 
 The peasants, who form more than fifty per cent of the 
 population, are small landowners and have largely re- 
 turned to their occupation of tilling the soil. 
 
 The factory workers are better classed as artisans in 
 their trades than what we would term common labor in 
 this country. 
 
 The close cooperation between the French and Ameri- 
 can governments would be quite welcome, with cooper- 
 ation in the interest of business between these nations. 
 
 It is approximately estimated that France furnished 
 the Allies, in the form of war materials, with products 
 amounting in value to about $8,000,000 up to the time of 
 the signing of the armistice. A large part of this ma- 
 terial furnished was from the commercial resources of 
 France. 
 
 GREAT BRITAIN. 
 
 The Committee on Metals met with representatives of 
 Great Britain in Room 526, Hotel Traymore, at 10 A. M., 
 October 21,. 1919. 
 
 Upon roll-call the following persons were present : 
 
 Representing Great Britain. 
 
 BAILIE JOHN KING. 
 MR. MARSHALL STEVENS. 
 HON. J. G. JENKINS. 
 
 For the Committee. 
 
 E. A. S. CLARKE, Chairman. 
 
 O. K. DAVIS, Secretary. 
 
 G. H. MOSELEY, Assistant Secretary. 
 
 WILLIAM BUTTERWORTH. 
 
 GEO. N. PEEK. 
 
 EDGAR PALMER. 
 
 E. J. CORNISH. 
 
 POPE YEATMAN. 
 
 WALTER DOUGLAS. 
 
 EUGENE P. THOMAS. 
 
 A. E. CARLTON. 
 
356 THE INTERNATIONAL TRADE CONFERENCE 
 Conferees and Advisors. 
 
 GEO. E. RICE. 
 H. C. MORRIS. 
 FRED C. COTTRELL. 
 E. S. BASTIN. 
 
 C. E. SlEBENTHAL. 
 
 L. C. GRATON. 
 GUY C. RIDDELL. 
 JOHN HUGHES. 
 WALTER TOWER. 
 MR. HUNTINGTON. 
 L. C. WELLS. 
 PEMBERTON SMITH. 
 
 Representatives from Great Britain advised that their 
 immediate requirements for home consumption of metals 
 would not necessitate to any great extent the importa- 
 tion of metals from the United States, that through their 
 colonies and otherwise they would be able to secure such 
 materials as are necessary. 
 
 To meet the problems of restoring the devastated coun- 
 tries of Europe in the form of manufactured products, 
 would necessitate negotiations for purchases of metals 
 to that extent. 
 
 The delegation was favorable to creating a permanent 
 organization, through the machinery of which could be 
 worked out the problems of an equitable distribution of 
 materials on a reciprocal basis. 
 
 Considerable discussion of a general nature was had 
 relative to the needs for conservation of transportation, 
 coal supply, as affecting metal industries, and labor condi- 
 tions. 
 
 No definite data as to requirements in metals was 
 given. The general opinion was that exports in metals 
 such as can be supplied from the United States, should 
 be made to the countries of Great Britain, France, Italy 
 and Belgium, to be used by them in the manufacture of 
 such articles as are necessary to reconstruct and to dis- 
 tribute to the nearby countries, at least until the time 
 when their own plants are in operation. 
 
THE INTERNATIONAL TRADE CONFERENCE 357 
 
 BELGIUM. 
 
 The Committee on Metals met with the Belgian Mission 
 at Room 526, Hotel Traymore, at 2 P. M., Wednesday, 
 October 22, 1919. 
 
 Those present were: 
 
 For Belgium. 
 
 M. CANON-LEGRAND. 
 M. NEVE. 
 M. HANKAR. 
 M. DE GROOTE. 
 
 For the Committee. 
 
 E. A. S. CLARKE, Chairman. 
 
 O. K. DAVIS, Secretary. 
 
 G. H. MOSELEY, Assistant Secretary. 
 
 WM. BUTTERWORTH. 
 
 WALTER DOUGLAS. 
 
 GEO. N. PEEK. 
 
 E. J. CORNISH. 
 
 EDGAR PALMER. 
 
 E. P. THOMAS. 
 
 POPE YEATMAN. 
 
 Advisors and Councillors. 
 
 C. E. SlEBENTHAL. 
 
 L. C. GRATON. 
 GUY C. RIDDELL. 
 JOHN HUGHES. 
 WALTER TOWER. 
 L. C. WELLS. 
 PEMBERTON SMITH. 
 
 Belgium's needs in metals are particularly steel billets, 
 American markets would be open to this trade provided 
 freight rates and prices were right. The chairman stated 
 that no doubt these matters could be arranged satisfac- 
 torily to meet the prices now being secured from Ger- 
 many and Lorraine. No definite estimates as to needs 
 was stated. 
 
 Belgium has twelve blast furnaces now operating, and 
 it is hoped to double the number during the next year. 
 
358 THE INTERNATIONAL TRADE CONFERENCE 
 
 Under normal conditions the output of steel in Belgium 
 is more than enough for home consumption and provides 
 an excess for export. The curtailing of building and 
 high prices for labor have tended to still further reduce 
 the need for steel so that it is difficult to estimate present 
 needs. However, such metals as are necessary it was 
 thought could be purchased by individual negotiations. 
 
 There is no immediate need for other metals, at least 
 the representatives had nothing of any quantity in mind. 
 
 REPORT OF COMMITTEE. 
 
 The Committee on Metals reports that it has had full 
 and free consultation with the Committees on Metals 
 representing the Belgian, British, French and Italian 
 Commissions, at which the situation in all these countries 
 with reference to their needs for supplies of metals in 
 order to effect the re-establishment of their industries 
 was fully presented and freely discussed. 
 
 In general the reports showed a greater stability of 
 labor conditions and less menace from social unrest than 
 previous public information had indicated. These discus- 
 sions also showed that the prospect for the complete re- 
 establishment of industry in those countries is decidedly 
 hopeful, provided supplies of raw materials and goods can 
 be secured. So far as metals are concerned it was dis- 
 closed that the requirements for France for the ensuing 
 year are estimated at 100,000 tons of ship plates and 
 90,000 to 100,000 tons of copper. 
 
 The estimates of their requirements submitted by the 
 Italian Committee included the following annual quan- 
 tities over the next five years : 
 
 Tons. 
 
 Foundry pig iron 200,000 
 
 Plates and shapes 60,000 
 
 Ingots and semi-finished steel and rails 215,000 
 
 Scrap iron 100,000 
 
 Tin plates 5,000 
 
 Copper 15,000 
 
 Various other metals 10,000 
 
 Total 605,000 
 
 There are under consideration in France and Italy 
 
THE INTERNATIONAL TRADE CONFERENCE 359 
 
 plans for extensive electrification of railways,, which, if 
 put into operation, will require considerable additional 
 supplies of copper over those stated. 
 
 The Belgian requirements are limited to semi-finished 
 steel and copper sheets, but the determination of approx- 
 imate quantities needed is so dependent upon the rate of 
 restoration of the Belgian works and the supply of neces- 
 sary fuel as to prevent for the present the making of 
 definite estimates. 
 
 The meeting with the British Delegation developed the 
 fact that no specific requirements have been formulated, 
 and that Great Britain expects to be able to obtain all 
 the supplies of raw materials necessary for her normal 
 trade, without any special arrangements therefor. The 
 British Chairman stated: "The object of America and 
 Great Britain ought to be how best to utilize their out- 
 puts for the benefit of the devastated areas. Great 
 Britain has already sent considerable consignments to the 
 continent in the way of metal goods for reconstruction 
 purposes. We expect not only to be able to continue this, 
 but also to increase the quantities." 
 
 Consideration of the situation presented by the French, 
 Italian and Belgian Committees disclosed the fact that the 
 American industries either have, or are capable of pro- 
 ducing surpluses adequate to meet these requirements, 
 provided satisfactory and effective means of financing the 
 transactions involved are arranged. While to a certain 
 degree and in some lines the American industry would 
 be able to take care of a part of these requirements in 
 normal commercial transactions, the aggregate of these 
 requirements involving long credits is so large that, in 
 the opinion of the Committee on Metals, some special 
 financial machinery must be arranged in order to enable 
 the satisfactory fulfilment of these requirements. In 
 view of the fact that filling these requirements presents a 
 problem beyond the scope of the normal financial ma- 
 chinery, it is the judgment of the Committee on Metals 
 that some emergency legislation such as is contemplated 
 by the Edge-Ackerman Bill now before the Congress in 
 Washington, should be enacted. The utilization of such 
 emergency facilities for financing exports would enable 
 the American metals industries to meet Belgian, French 
 and Italian requirements with the greatest possible dis- 
 patch and so contribute to the most prompt restoration 
 of normal conditions in Europe. 
 
 E. A. S. CLARKE, Chairman. 
 
360 THE INTERNATIONAL TRADE CONFERENCE 
 
 COMMITTEES ON PETROLEUM. 
 BELGIUM. 
 
 M. NEVE. 
 M. HANKAR. 
 M. DE GROOTE. 
 
 FRANCE. 
 
 M. DE PELLERIN DE LA TOUCHE. 
 
 M. PARMENTIER. 
 
 M. PONCET. 
 
 M. INGOUF. 
 
 M. DE FREMINVILLE. 
 
 M. PESSON-DIDION. 
 
 M. ROCHE. 
 
 ITALY. 
 
 F. QUARTIERI. 
 
 A. PALANCA. 
 T. THEODOLI. 
 
 G. RICCI. 
 
 AMERICA. 
 
 W. C. TEAGLE, Chairman; 
 President, Standard Oil Co. of New Jersey, New York City. 
 
 C. C. SMITH, Vice-Chairman and Secretary; 
 Assistant Sec'y* American Petroleum Institute, New York City, 
 
 HARRY O. PATTON, Assistant Secretary, 
 Chamber of Commerce of the United States, New York City. 
 
 DAVIDSON, GEORGE S., President, Gulf Refining Co. of Louisiana. 
 
 Pittsburgh, Pa. 
 DOHENY, E. L., President, Mexican Petroleum Company, New York 
 
 City. 
 
 LUCEY, CAPT. J. F., Lucey Manufacturing Co., New York City. 
 LUFKIN, E. C., President, Texas Company, New York City. 
 MOORE, DR. JOHN BASSETT, New York City. 
 O'DoNNELL, THOMAS A., President, American Petroleum Institute, 
 
 New York City. 
 
 PEW, J. HOWARD, President, Sun Company, Philadelphia. Pa. 
 PRATT, HERBERT L., Standard Oil Co. of New York, New York City. 
 REQUA, M. L., Sinclair Oil and Refining Co., New York City. 
 
THE INTERNATIONAL TRADE CONFERENCE 361 
 
 WELCH, R. L., Secretary, American Petroleum Institute, New York 
 
 City. 
 
 WHALEY, G. P., Vacuum Oil Co., New York City. 
 WOODMAN, A. C., Union Petroleum Co., Philadelphia, Pa. 
 
 Committees from Belgium, Italy and France met with 
 the American Committee on Petroleum, Great Britain not 
 being represented, and discussed this problem and in par- 
 ticular its bearings upon the general fuel situation as a 
 substitute, in view of the coal shortage in Italy and 
 France. Following are the proceedings of the three com- 
 mittee meetings: 
 
 BELGIUM. 
 
 Meeting of the Petroleum Committee of the Interna- 
 tional Trade Conference with representatives of the 
 Belgian Commission interested in the subject of Petro- 
 leum and its products, held in Room 127, Hotel Traymore, 
 Atlantic City, New Jersey, at 8.15 P. M., October 20. 
 
 The following members of the American Committee 
 were present : 
 
 W. C. TEAGLE, Chairman. 
 
 M. L. REQUA. 
 
 E. C. LUFKIN. 
 
 CAPT. J. F. LUCEY. 
 
 G. P. WHALEY. 
 
 W. E. PERDEW. 
 
 G. S. DAVISON. 
 
 H. L. PRATT. 
 
 C. C. SMITH, Secretary. 
 
 H. O. PATTON, Assistant Secretary. 
 
 Representing the Belgian Mission. 
 
 M. DE GROOTE. 
 M. NEVE. 
 
 The delegates from the Belgian Mission were warmly 
 welcomed by Chairman Teagle, who extended our guests 
 every assurance of cooperation. He requested the Bel- 
 gian delegates to speak with the utmost frankness as to 
 
362 THE INTERNATIONAL TRADE CONFERENCE 
 
 the situation in Belgium, and assured them of the desire 
 on the part of the American Petroleum Industry to render 
 all assistance possible in meeting their petroleum needs. 
 
 M. de Groote responded in behalf of the Belgian Mis- 
 sion, stating that the situation with regard to petroleum 
 and petroleum products in Belgium was quite satisfac- 
 tory there was no complaint of any shortage of these 
 products, and that it was unlikely there would be any dire 
 need in this respect for some time to come. 
 
 The problem that confronted them at the present time 
 was one of storage, in that practically one-half of the 
 tankage in existence before the war had been destroyed 
 as the result of the German invasion. The chief difficulty 
 in restoring this tankage was due to their inability to 
 secure steel plates. The question of securing plates was 
 now under discussion with the Metals Committee and it 
 was hoped that some solution would be reached that would 
 speedily remedy the Belgian present shortage of tank 
 storage. When the storage capacity was sufficiently in- 
 creased, it was his feeling that the use of fuel oil in in- 
 dustrial plants would be materially expanded. This ex- 
 pansion, however, would depend upon the ability of fuel 
 oil to compete with coal on a price basis and in a lesser 
 degree upon the question of storage. He also emphasized 
 that there would be considerable expansion in the use of 
 fuel oil in the merchant marine. Many ships were chang- 
 ing from coal to oil burners. American petroleum inter- 
 ests, naturally coming in competition with other oil-pro- 
 ducing European countries Russia, Poland, Roumania 
 and others, hence the sale of petroleum products to Bel- 
 gian interests hinged upon price. 
 
 Belgian imports of all petroleum products, prior to the 
 war, totaled for 1912386,000 tons. Of this the total 
 from the United States was 214,000 tons. The total 
 imported during 1912 was composed of 196,000 tons re- 
 fined oils and 190,000 tons lubricating oils. 
 
 Mr. Neve, the other member of the Petroleum Com- 
 mittee of the Belgian Commission, gave it as his opinion 
 that up to the present time very little fuel oil has been 
 
THE INTERNATIONAL TRADE CONFERENCE 363 
 
 used in their industrial plants. Because of the present 
 shortage of coal the industries as a whole throughout his 
 country were beginning to consider the use of fuel oil in 
 place of coal. The extensive use of fuel oil in these in- 
 dustries, however, would depend upon the relative price 
 of fuel oil as compared with coal, as well as upon storage 
 facilities. Belgium being a coal-producing country, it 
 does not offer an attractive market for fuel oil. 
 
 Both of these gentlemen submitted some very interest- 
 ing facts as to the havoc visited upon Belgium and Bel- 
 gian industries as the result of the war. Practically all 
 of their large industrial plants had been destroyed and 
 the machinery shipped to Germany. Under the peace 
 terms most of this machinery was now being returned to 
 Belgium and being reinstalled. The operation of these 
 restored plants, however, was contingent upon the secur- 
 ing of coal or fuel oil to operate the plants. 
 
 In this connection it was pointed out that the price of 
 coal at the present time is approximately $14 to $15 per 
 ton. Before the war the price was about one-quarter of 
 this figure. The present production of coal is about 86 
 per cent of the pre-war output, which was 23,000,000 
 tons per annum. Of the present production large quan- 
 tities are being exported to Italy and Switzerland. la 
 addition, coal to the amount of 7,.000,000 tons per annum 
 was imported from England and Germany. 
 
 Electric power has had a rapid development since the 
 end of the war. This has had a material affect upon the 
 consumption of illuminating oils in that country. Prior 
 to the war, kerosene was in general use throughout Bel- 
 gium for illuminating as well as cooking purposes. The 
 almost total cessation of kerosene imports during the war 
 of necessity compelled some substitute which has brought 
 about the more or less general use of gas or electricity as 
 a means of illumination and for other domestic purposes. 
 
 Practically all of the electrical plants are now restored 
 and in working order. It was the feeling of the Belgian 
 representatives that there would not be a very great 
 
364 THE INTERNATIONAL TRADE CONFERENCE 
 
 market for kerosene owing to the conditions just ex- 
 plained. 
 
 The use of motor cars, particularly trucks, has come 
 into general use since the signing of the armistice. Bel- 
 gian industrial interests have been quick to seize upon 
 the opportunity that was theirs, at the cessation of hos- 
 tilities, to purchase motor lorries offered for sale by th.e 
 various armies operating in Europe. Trucks and motor 
 cars of all descriptions now fill the streets. The day of 
 the horse vehicle has passed into the limbo of the days 
 that are gone. To put it in the words uttered by M. Neve, 
 "The streets of Belgian towns look like Fifth Avenue, 
 New York." There is no shortage of gasoline, he said, 
 with which to operate these motor vehicles. 
 
 On the general subject of reconstruction, the delegates 
 from Belgium agreed that their country was rapidly 
 reaching normal conditions. Notwithstanding the fact 
 that the population of Belgium has suffered a decline of 
 approximately 5 per cent., the labor question was fairly 
 satisfactory. When hostilities ceased in November, 1918. 
 800,000 men were unemployed. ' Today less than 200,000 
 are idle. There is some labor unrest, largely aggravated 
 by the agitation of labor leaders. Some of the large em- 
 ploying interests were loath to pay the prevailing wage, 
 which today is practically double that of the pre-war 
 basis. The skilled mechanic today is paid 17 to 20 francs 
 for eight hours' work,, which is generally the standard 
 throughout the country, both as to wages for skilled help 
 and as to hours of work. Bolshevism is not a serious 
 menace. Practically all of the smaller factories or plants 
 are in operation. In view of the fact that some of the 
 larger plants were destroyed and the machinery trans- 
 ported to Germany, the restoration of these larger units 
 to full operation has been considerably delayed. For ex- 
 ample, prior to the war, 54 large blast furnaces were in 
 operation; today only 11 have been restored. The re- 
 establishment of the remaining 46 was dependent largely 
 upon securing an adequate supply of fuel. Before the 
 
THE INTERNATIONAL TRADE CONFERENCE 365 
 
 war Belgium had 2,560 coke ovens in operation up to 
 date approximately 650 have resumed work. 
 
 The transportation situation as regards railroads is not 
 very satisfactory. Motor trucks are in a measure, how- 
 ever,, alleviating the shortage of locomotives. To restore 
 the railroads to their former traffic capacity would re- 
 quire some 500 new locomotives, and efforts are being 
 made to secure these in the United States. As deliveries 
 of their locomotive requirements could not be effected 
 under three months the transportation situation is quite 
 serious. Their old engines cannot be repaired to advan- 
 tage because of the lack of copper and material for tubes 
 all of the tube factories being destroyed and the ma- 
 chinery transported to Germany during the period of the 
 war. Until the return of this machinery is accomplished 
 Belgium will not be able to manufacture locomotives. 
 
 ITALIAN. 
 
 Report covering meeting of the Petroleum Committee 
 of the International Trade Conference with representa- 
 tives of the Italian Mission interested in the subject of 
 Petroleum and its products, held in Room 127, Hotel 
 Traymore,, Atlantic City, N. J., 2.15 P. M., October 22, 
 1919. 
 
 The following members of the American Committee 
 were present: 
 
 W. C. TEAGLE, Chairman. 
 
 G. S. DAVISON. 
 
 E. C. LUFKIN. 
 
 CAPT. J. F. LUCEY. 
 
 H. L. PRATT. 
 
 M. L. REQUA. 
 
 G. P. WHALEY. 
 
 W. E. PERDEW. 
 
 C. C. SMITH, Secretary. 
 
 H. O. PATTON, Assistant Secretary. 
 
 Representing the Italian Mission: 
 
 COMMANDER ENGINEER FERDINANDO QUARTIERI. 
 
366 THE INTERNATIONAL TRADE CONFERENCE 
 
 COMMANDER PIETRO GIOVANNI LAZZERINI. 
 MARQUIS T. THEODOLI. 
 CAPT. A. PALANCA. 
 And 
 
 H. C. MORRIS, U. S. Bureau of Mines. 
 Miss STONEWALL, Nation's Business. 
 
 Following a few words of welcome expressed by Chair- 
 man Teagle of the American Committee, the following 
 statement was submitted by Captain Palanca in behalf 
 of the Italian delegates : 
 
 Statement of Italian Fuel Oil Situation. 
 
 The two subjects raised in this statement, namely Fuel 
 Oil, and the entry of American capital in the formation 
 of Italian companies for the storage and distribution of 
 Fuel Oil, and the refining of petroleum were fully dis- 
 cussed. 
 
 Fuel Oil. 
 
 This discussion developed the fact that the use of Fuel 
 Oil as a substitute for coal is receiving the keenest atten- 
 tion on the part of both the Italian Government for use 
 on the Government owned railroads as well as by Italian 
 industries as a whole. This interest is prompted largely 
 by the fact that an equal amount of power in Fuel Oil, as 
 compared with coal, can be transported in one-third less 
 tonnage. The world-wide shortage of shipping, in ad- 
 dition to the scarcity of coal, is, therefore, an incentive 
 toward the use of a fuel entailing the employment of the 
 smallest possible amount of tonnage, assuming of course 
 that fuel oil can be obtained in sufficient quantity and at 
 a price that would compare favorably with coal. 
 
 Coal Prices. 
 
 In this connection it was stated by the Italian delegates 
 that prices for coal in Italy at the present time were 
 approximately, per ton, as follows : 
 
THE INTERNATIONAL TRADE CONFERENCE 367 
 
 American coal $33.00 per ton 
 
 English coal $28.00 per ton 
 
 German coal could be purchased, delivered in Italy,, 
 much cheaper than these prices, but was limited in 
 quantity. 
 
 If a complete transformation of coal to fuel oil was 
 effected in the railroads and other industries of Italy, as 
 pointed out in the statement quoted, it was estimated that 
 the fuel-oil requirements would total 4,000,000 tons per 
 annum. 
 
 It was the general feeling of the American members, 
 as expressed by Chairman Teagle, that the American 
 Petroleum industry could supply the contemplated Italian 
 requirements at prevailing prices, either f . o. b. American 
 ports or c. i. f., subject to tank-steamer tonnage being 
 secured. 
 
 In order to fully develop this transformation program 
 the Chairman of the Italian Mission emphasized that he 
 and his colleagues were officially empowered by the Gov- 
 ernment to enlist the capital, experience and cooperation 
 of the Americans in this enterprise. Should this offer of 
 partnership prove attractive to individual petroleum in- 
 terests in America he was prepared to go into further de- 
 tails, reporting the full circumstances to his Government,, 
 which in turn would place any individuals or companies 
 here, desirous of pursuing the matter further, in direct 
 touch with Italian interests wishing to enter such a 
 partnership. 
 
 This proposal was listened to with a great deal of 
 interest by American members; it being a subject to 
 which no previous consideration had been given, the 
 Chairman requested that the American Committee be 
 given an opportunity to discuss the matter privately. 
 
 Recess. 
 
 Upon reassembling at 5.30, the Chairman of the Amer- 
 ican Committee stated that the Italian proposal had been 
 reviewed with a great deal of interest. He explained that 
 
368 THE INTERNATIONAL TRADE CONFERENCE 
 
 the American Committee was conferring with the Italian 
 delegations representing the American Petroleum indus- 
 try as a whole and that the Committee had no authority 
 to commit the industry to any definite program of the 
 kind outlined. The matter was one for individuals or 
 companies in the petroleum industry to consider privately 
 with the Chairman and members of the Italian Mission. 
 
 The Chairman of the Italian mission, as previously 
 stated in this report, expressed his desire to go into full 
 details as to this proposal with any one interested. He 
 pointed out that ' 'Before the Great War there was no 
 interest in Italy in oil. Now it is a great National ques- 
 tion. Italy sees it is impossible to exist without oil ; con- 
 sequently we are doing all we can to interest American 
 Oil men in developing an oil industry in the nation. It is 
 a question of the life of the country." 
 
 The meeting adjourned at 6.00 p. m. 
 
 Statement by the Italian Committee. 
 
 It is undoubtedly thoroughly understood and recog- 
 nized that one of the most pressing problems for Italy 
 is that of her fuel supply. 
 
 While, on the one hand, no effort is spared to increase 
 the quantity of coal shipped from various sources to 
 Italy, on the other hand,, steps are being taken towards 
 the gradual transformation of railroads and factories to 
 burn fuel oil instead of coal. In this connection, we may 
 state that a certain number of our locomotives in service 
 in Italy have already been transformed, and that some 
 locomotives which we are here receiving on a contract 
 placed with an American Company are being built to 
 burn fuel oil. 
 
 As the greatest difficulty in the way of a normal and 
 sufficient supply of coal to Italy consists in tonnage scar- 
 city, that is partially overcome by the fact that the pro- 
 jected transpormation entails the use of about one-third 
 less tonnage to obtain the same result in power developed. 
 
 It is estimated that Italy's need of coal will in the near 
 future amount to a total quantity of 12,000,000 tons per 
 year. Given the expected development of our country, 
 this quantity may substantially be increased, and it is 
 therefore intended to develop a program of transforma- 
 
THE INTERNATIONAL TRADE CONFERENCE 369 
 
 tion of Italian railroads, manufacturing plants, shipping, 
 etc., capable of absorbing,, when completed, about one- 
 half of the fuel imported namely, an annual supply of 
 about 4,000,000 tons of petroleum (fuel oils, kerosene and 
 naptha being included in this quantity). This is of 
 course to be understood as applicable referring to the 
 period of completed transformation, so far as we can at 
 present estimate. It also makes allowance for the plan 
 of having a certain small proportion of the refined prod- 
 ucts manufactured in Italy. 
 
 This is therefore a very wide field of enterprise, at- 
 tracting from every point of view, capital, brains and 
 human efficiency. Practically the whole thing has to be 
 built up from the foundations. It embraces the supply of 
 oil, its transportation to Italy, the building of the neces- 
 sary tanking facilities, and their utilization ; the manufac- 
 ture as above stated of a small percentage of the refined 
 products required ; the distribution of the oils ; the oper- 
 ation of fueling stations; the supply of combustion out- 
 fit,, etc. 
 
 There is nobody more fit then the Americans to be our 
 cooperators and we might say our leaders in this enter- 
 prise. Large interests can find scope in it; companies 
 constituted; it is a problem that calls for broadminded 
 people, prompt action, economic efficiency, and proved 
 experience. Little wonder, therefore, if we look to you 
 as to the men specifically suited to co-operate in the 
 solution. 
 
 It is our intention to interest American capital, and, 
 whenever and wherever necessary, American direction 
 and leadership to the greatest possible extent ; so that you 
 may regard it in the light of a permanent partnership. 
 The only limitation we would place on your contribution 
 of capital is that just necessary to preserve the Italian 
 character of this enterprise, so that it shall fully enjoy 
 all the privileges granted to Italian companies under the 
 Italian law. 
 
 FRANCE. 
 
 Report covering meeting of the Petroleum Committee 
 of the International Trade Conference with representa- 
 tives of the French Mission interested in the subject of 
 Petroleum and its products, held in Room 127, Hotel 
 Traymore, 10 a. m., October 22, 1919. 
 
370 THE INTERNATIONAL TRADE CONFERENCE 
 
 The following members of the American Committee 
 were present: 
 
 W. C. TEAGLE, Chairman. 
 G. S. DAVISON. 
 
 E. C. LUFKIN. 
 CAPT. J. F. LUCEY. 
 M. L. REQUA. 
 
 H. L. PRATT. 
 
 DR. JOHN BASSETT MOORE. 
 
 G. P. WHALEY. 
 
 W. E. PERDEW. 
 
 C. C. SMITH, Secretary. 
 
 H. 0. PATTON, Assistant Secretary. 
 
 Representing the French Mission : 
 
 M. PESSON-DlDION. 
 
 M. FRANCOIS PONCET. 
 
 M. JULIEN POTIN. 
 
 CAPT. INGOUF. 
 and 
 
 EDSON T. BASTIN, U. S. Geological Survey. 
 
 P. B. KENNEDY, Director, U. S. Bureau of Foreign and Domestic 
 Commerce. 
 
 LESLIE C. WELLS, Trade Commissioner, U. S. Department of Com- 
 merce. 
 
 H. C. MORRIS, U. S. Bureau of Mines. 
 
 ROBERT P. SKINNER, U. S.' Consul General, London. 
 
 F. S. TISDALE, Nation's Business. 
 
 French Oil Production. 
 
 The delegates from the French Mission were welcomed 
 by Chairman Teagle,, who assured them of the desire of 
 the American Petroleum Industry to be as helpful as pos- 
 sible in meeting the petroleum needs of France. 
 
 The situation as regards petroleum was presented in a 
 written report read by Captain Ingouf. This report, 
 briefly summarized, pointed out that outside of Alsace, 
 where approximately 50,000 tons of oil are annually pro- 
 duced, France has no production of petroleum of appre- 
 ciable significance. 
 
THE INTERNATIONAL TRADE CONFERENCE 371 
 
 Coal. 
 
 The output of the coal mines of France had never been 
 sufficient to meet her own industrial needs. The loss of 
 many of her coal mines through war's destruction not 
 compensated for by aquisition of the Sarr district, made 
 it certain that France for some years to come would 
 afford a constantly increasing market for fuel oil. 
 
 Fuel Oil 
 
 Very little fuel oil has as yet been used in industrial 
 plants and under marine boilers. The war, however, 
 brought about possibilities for an enlarged use of this 
 commodity and it was predicted that in the near future 
 fuel oil would come into general use. Providing the 
 necessary tank steamer tonnage, storage and distributing 
 facilities as well as the incidental equipment necessary 
 to the burning of fuel oil were obtainable, it was esti- 
 mated that their requirements during 1920 would be at 
 the rate of 100,000 tons monthly. Later on, as additional 
 equipment was installed, it was believed that the impor- 
 tations would increase materially. 
 
 Previous to the meeting,, the French delegates had been 
 handed by the American Committee, a memorandum of 
 the subject of fuel oil reading as follows : 
 
 "The American Petroleum Industry is producing as 
 part of its refinery operations, a grade of fuel oil which 
 is being used generally for bunker fuel-oil purposes as 
 well as for commercial purposes on shore. This oil has a 
 minimum flash of 18,000 B. T. U.'s per pound ; is fluid at 
 30 to 35 degrees Fahr., and contains not to exceed two 
 per cent of dirt, water and sediment. 
 
 It is the view of this Committee, generally speaking, 
 that the fuel oil product which can be secured at the low- 
 est price will be a product having practically the charac- 
 teristics indicated above. 
 
 This grade of oil has proven satisfactory for most fuel 
 purposes and this Committee wishes to bring to the at- 
 tention of the Foreign Missions that if their governments 
 
372 THE INTERNATIONAL TRADE CONFERENCE 
 
 adopt specifications that exclude the delivery of an oil 
 of this character, through the imposition of more rigid 
 specifications, the result will be that the purchasers will 
 be obliged to pay higher prices for such products. 
 
 For other than bunker purposes (i. e., commercial pur- 
 poses on shore) certain crude oils are being used as fuel 
 without refining treatment. It is suggested that it may 
 be in the interest of foreign buyers if their governments 
 adopt such specifications as will permit of importation 
 of such crude oils for fuel use." 
 
 It was apparently agreed by the French delegation that 
 the fuel oil known as "bunker oil" and that for industrial 
 and marine use the grades used in the United States 
 would be generally satisfactory. They were assured that 
 it would not be difficult for the American Petroleum in- 
 dustry to supply their requirements of fuel oil as indi- 
 cated subject to the necessary tank-steamer tonnage 
 being secured. 
 
 Kerosene and Gasoline. 
 
 Prior to the outbreak of the Great War the annual con- 
 sumption of kerosene and gasoline was 120,000 tons it 
 is now estimated that the requirements total 500,000 
 tons, half kerosene and half gasoline. No accurate fore- 
 cast of the requirements of aviation gasoline could be 
 given. Lubricating oils were. being received in generally 
 sufficient quantities. 
 
 Road Oil. 
 
 An interesting feature of this report was the reference 
 made to the possibility of France becoming a large im- 
 porter of road oil, of which very little has been used up 
 to the present time. Its use presents an entirely new de- 
 parture in road building in France. With 44,,000 miles 
 of highways, 14 per cent of which were reconstructed 
 following the havoc of war, it is apparent that the use of 
 road oil presents an attractive field for American enter- 
 prise. The report submitted by the French delegation on 
 this point says "it is very likely that, following the ex- 
 
THE INTERNATIONAL TRADE CONFERENCE 373 
 
 ample laid by the United States, road oil will be more and 
 more used in the future." 
 
 Value of Imports. 
 
 Summing up the total French requirements of kero- 
 sene, gasoline, fuel and gas oil, they were reckoned at a 
 yearly value of approximately $50,000,000, exclusive of 
 freight charges. The report adds 'The United States 
 can secure a very large part of that business." 
 
 Transportation and Storage. 
 
 France has a regular fleet of tank steamers totalling 
 about 40,000 tons capacity, to which will possibly be ad- 
 ded some tankers of German origin, and in addition 
 70,000 ton of ships now building in France. It was 
 pointed out by the French that water ballast compart- 
 ments of vessels plying to France could be utilized for 
 carrying heavy oils a practice largely employed during 
 the war. All of these means, however, would not suffice 
 to transport ultimately the French requirements. Greater 
 additions to the tanker fleet would be necessary to carry 
 the contemplated further increases in the imports of pe- 
 troleum products. 
 
 Storage and Distributing Facilities. 
 
 Tankage for the storing of petroleum products is quite 
 adequate, totalling approximately 150,000,000 gallons 
 capacity. Tank cars, barges unloading berths and racks, 
 are sufficient, or can easily be made sufficient, to distri- 
 bute imported supplies. While pipe-line transportation 
 is little employed, this form of carrier will, in time, be 
 adopted and provide a more economical means of trans- 
 portation. Practically all of those extensive means for 
 the distribution of petroleum products were largely cre- 
 ated during the war and played a signal and important 
 part in bringing victory to the Allied forces. 
 
374 THE INTERNATIONAL TRADE CONFERENCE 
 
 Purchases. 
 
 The Government purchasing organization inaugurated 
 during the war will continue to exist for six months fol- 
 lowing the ratification of the peace treaty. Peace was 
 ratified in France in October. The next French Congress 
 will determine whether or not the present method of 
 grouping the French importers and pooling their pur- 
 chases under Government control will be continued. 
 
 Import Duty. 
 
 France must use petroleum fuels as a substitute for the 
 coal she lacks. To encourage the importation of com- 
 bustible oils, the Act of August 5,. 1919, and the Decree 
 of August 30, 1919, provide for a decrease in the import 
 taxes on heavy oils of from 120 francs per ton to but 4 
 francs. This means that fuel oil can now be sold in 
 France at a price which compares favorably with coal. 
 
 Kerosene. 
 
 The kerosenes used in France corresponds to the 
 grades known in the United States as "Standard White," 
 "Prime White" and "Water White." These grades are 
 perfectly satisfactory to the French consumer. 
 
 Gasoline. 
 
 The present gasoline, however, is not so satisfactory. 
 Before the War France imported mostly grades known 
 as 66/68 and 64/65 gasolines. Subsequently it has been 
 necessary to use 59/61 and the so-called "U. S. Navy" 
 grades. Because self-starters on motor cars are little 
 used in France, a gasoline of high volatility is desirable. 
 New cars, for the most part, are now being equipped with 
 self-starters. 
 
 On this point the American Committee explained that 
 the general application of self-starters to motor cars 
 would result in great economy of gasoline consumption. 
 Motors equipped with electric starters were rarely al- 
 
THE INTERNATIONAL TRADE CONFERENCE 375 
 
 lowed to run idle, which is the general practice with 
 automobiles not so equipped. The saving of gasoline re- 
 sulting from shutting off the motor whenever the car was 
 stopped would soon effect the additional cost of the elec- 
 tric starter. Then, too, attachment of starters would per- 
 mit the use of a lower grade fuel than would otherwise 
 be possible. 
 
 The discussion on this phase of the gasoline subject 
 brought out the suggestion from the American Com- 
 mittee that the French requirements should be supplied, 
 to the largest extent possible with gasoline of United 
 States standard specifications,, which is in general use in 
 America. This suggestion was prompted by reason of the 
 fact that, while the higher grade or more volatile gaso- 
 line could be furnished by the American petroleum in- 
 dustry, it would be more expensive than the Standard 
 grade used in the United States. 
 
 The Financial Situation. 
 
 Like other European nations, France is at a great dis- 
 advantage in the matter of exchange in financing her pur- 
 chases in this country. For example, gasoline costing 
 wholesale, 20 cents per gallon, f . o. b. New York figures, 
 francs 2.10, at French ports, at the present rate of ex- 
 change. At the normal rate the cost would be francs 
 1.28. 
 
 This emphasized the importance of French importers 
 obtaining credit covering their purchases here. Assur- 
 ance was given our French friends, that the petroleum 
 industry, as represented by the American Committee, 
 would gladly participate in any plan providing for the 
 extension of credit adopted by the Conference, and in this 
 connection they were handed a resolution bearing direct- 
 ly on this subject as follows: 
 
 "WHEREAS, the Petroleum Committee of the Inter- 
 national Trade Conference, composed of members of the 
 petroleum industry of the United States, has been called 
 together for the purpose of considering the problems in- 
 
376 THE INTERNATIONAL TRADE CONFERENCE 
 
 volved in furnishing European buyers with fuel oil and 
 other petroleum products, and 
 
 "WHEREAS, this committee believes it desirable that 
 the Credit and Finance Committee of the International 
 Trade Conference, formulate some plan which will be a 
 basis for the establishment of credits wherewith to liqui- 
 date purchases made in this country by said European 
 buyers, and 
 
 "WHEREAS, we wish to express the consensus of 
 opinion of this Committee on this subject to said Com- 
 mittee on Credit and Finance, now, therefore, be it 
 
 "Resolved, That it is the belief of this Committee that 
 the petroleum industry of the United States will par- 
 ticipate in any plan that may be worked out, and will 
 take its share of any type of international bonds or other 
 forms of security created under such plan." 
 
 Adjournment. 
 
 Following a few words from the Chairman, express- 
 ing a desire to assist France in every way possible in solv- 
 ing her Petroleum problems, and an offer from Mr. M. L. 
 Requa, former Director of the Oil Division, United States 
 Fuel Administration, to provide any desired information 
 on fuel oil burning equipment, the meeting adjourned at 
 12 M. 
 
 REPORT OF COMMITTEE. 
 
 The Petroleum Committee begs to submit the follow- 
 ing report: 
 
 The Committee had the pleasure of meeting with the 
 representatives from Belgium, France and Italy, and dis- 
 cussed with them general questions in connection with 
 the petroleum requirements of their respective countries 
 more particularly the question of their possible needs 
 of fuel oil to supplement the diminishing coal supply. 
 
 Briefly summarized the results of these meetings were 
 as follows: 
 
 
 
 BELGIUM. 
 
 In this country, there is little or practically no storage 
 or distributing facilities for the handling of fuel oil. Bel- 
 gium is a coal producing country, and we were advised 
 
THE INTERNATIONAL TRADE CONFERENCE 377 
 
 that its mines are now operating 86% of their pre-war 
 capacity. It was the expectation of the Belgian delega- 
 tion that, given the necessary time for reconstruction and 
 rehabilitation, there would be sufficient coal available to 
 cover their fuel needs. They reported that their sup- 
 plies of other petroleum products were in every way ade- 
 quate to take care of current requirements. 
 
 FRANCE. 
 
 The French delegation stated that the output of 
 French coal mines had never been sufficient for her indus- 
 trial needs, and the destruction of the mines in the North 
 had not been compensated for by the acquisition of the 
 Saar district. For these reasons, France would afford 
 tor some years to come, a constantly increasing market 
 for fuel oil. 
 
 Providing the necessary tank steamer tonnage, storage 
 and distributing facilities, as well as the incidental equip- 
 ment necessary to the burning of fuel oil, were obtain- 
 able, the French delegates estimated their requirements 
 for 1920, as approximately 100,000 tons of fuel oil per 
 month. The Petroleum Committee advised the French 
 delegates, that it would not be difficult for the American 
 petroleum industry to supply their requirements of fuel 
 oil as indicated, subject to the necessary tank steamer 
 tonnage being secured. 
 
 The French delegation explained, that they expected 
 a relatively larger consumption of gasoline in the future 
 than there had been in the past. The Petroleum Com- 
 mittee pointed out the desirability and, perhaps the 
 necessity of arranging as soon as possible, so that the 
 French requirements might be supplied to the largest ex- 
 tent possible with gasoline of United States standard 
 specifications. 
 
 ITALY. 
 
 The Italian delegation informed us, that there were 
 no coal mines in Italy and that one of her most pressing 
 problems was an adequate supply of fuel. We were ad- 
 vised, that a certain number of locomotives on the Italian 
 Government Railroads had already been adapted to burn- 
 ing fuel oil, and that contracts for additional locomotives 
 specified "fuel oil burners." They estimated, that even- 
 tually, as soon as the necessary tonnage and other facil- 
 ities could be created, that Italy might be able to use up 
 to 4,000,000 tons of fuel per annum. 
 
378 THE INTERNATIONAL TRADE CONFERENCE 
 
 The Italian delegation urged that American capital en- 
 gaged in the petroleum business should join with Italian 
 capital in the formation of local Italian companies to 
 undertake the creation of the necessary facilities, not only 
 for the storage and distribution of fuel oil, but also for 
 the completion and operation of two or three refineries 
 in different parts of Italy. 
 
 GENERAL. 
 
 All of the foreign delegations pointed out the difficulties 
 arising out of the present acute exchange situation, which 
 was fully recognized by the Petroleum Committee. 
 
 The following resolution was adopted : 
 
 "That, it is the belief of the Petroleum Committee, that 
 the petroleum industry of the United States will partici- 
 pate in any plan that may be worked out, and will take 
 its share of any type of International bonds or other 
 forms of security created under such plan." 
 
 A report in detail covering the proceedings of the vari- 
 ous meetings will be prepared and may be had upon appli- 
 cation to the United States Chamber of Commerce or the 
 American Petroleum Institute. 
 
 W. C. TEAGLE, Chairman. 
 
 COMMITTEES ON RECONSTRUCTION SUPPLIES. 
 
 BELGIUM. 
 
 M. CANON-LEGRAND. 
 M. NEVE. 
 
 M. VAN DEN VEN. 
 
 FRANCE. 
 
 M. VARAIGNE. 
 M. WADDINGTON. 
 M. GODET. 
 M. TIRMAN. 
 
 M. DOLLEANS. 
 M. PONCET. 
 M. INGOUF. 
 
THE INTERNATIONAL TRADE CONFERENCE 379 
 GREAT BRITAIN. 
 
 SIR ARTHUR SHIRLEY BENN. 
 SIR JAMES HOPE SIMPSON. 
 MR. MARSHALL STEVENS. 
 
 ITALY. 
 
 L. LUIGGI. 
 
 V. MENEGHELLI. 
 
 A. JACCARINO. 
 
 E. BARONI. 
 
 F. QUATTRONE. 
 
 G. B. CECCATO. 
 G. GRANATA. 
 E. GERLI. 
 
 V. E. SILVESTRI. 
 E. FLORES. 
 A. PALANCA. 
 0. ROSSATI. 
 T. THEODOLO. 
 M. LUIGGI, JR. 
 A. ANZANI. 
 P. TUCCIMEI. 
 DR. MIOZZI. 
 
 AMERICA. 
 
 E. W. RICE, JR., Chairman; 
 
 President, General Electric Co., Schenectady, New York. 
 
 GEORGE A. O'REILLY, Vice-Chairman and Secretary: 
 
 Irving National Bank, New York City. 
 
 ASBURY, CHARLES W., President, Enterprise Manufacturing Co., 
 Philadelphia, Pa.; President, American Hardware Manufac- 
 turers' Association, New York City. 
 
 BABB, MAX W., Vice-President, Allis-Chalmers Manufacturing Co., 
 Milwaukee, Wis. 
 
 BRANTINGHAM, C. S., Emerson, Brantingham Co., Rockfbrd, 111. 
 
 BURTON, J. H., J. H. Burton & Co., New York City. 
 
 CORNELL, C. L., Vice-President, Niles-Bement-Pond Co., New York 
 City. 
 
 DOAN, J. B., President, American Tool Work Co., Cincinnati, Ohio. 
 
 DURYEA, DR. J. T., President, Pierce, Butler & Pierce, New York 
 City. 
 
380 THE INTERNATIONAL TRADE CONFERENCE 
 
 FLETCHER, ANDREW, President, American Locomotive Co., New 
 York City. 
 
 GOODMAN, CHARLES A., President, National Hardwood Lumber Co., 
 Chicago, 111. 
 
 HERR, E. M., President, Westinghouse Electric & Manufacturing 
 Co., East Pittsburgh, Pa. 
 
 HILDRETH, CHARLES E., Secretary, National Machine Too. Build- 
 ing Association, Worcester, Mass. 
 
 KAUL, JOHN J., Kaul Lumber Co., Birmingham, Ala. 
 
 LEGGE, ALEXANDER, Vice-President, International Harvester Co., 
 Chicago, 111. 
 
 MASON, STEPHEN C., President, National Association of Manu- 
 facturers, Pittsburgh, Pa.; Secretary, McConway & Tnrley Co. 
 
 McCLURE, JOHN W., First Vice-President, National Wholesale 
 Lumber Dealers' Association, Belgrade Lumber Co., Memphis, 
 Tenn. 
 
 RANNEY, GEORGE A., President, National Implement and Vehicle 
 Association, Chicago, 111. 
 
 SALMON, W. W., President, General Railway Signal Co., Rochester, 
 New York. 
 
 STEWART, HAMILTON, Vice-President, Harbison Walker Refracto- 
 ries Co., Pittsburgh, Pa. 
 
 TRIGG, ERNEST T., Vice-President, John Lucas & Co., Philadel- 
 phia, Pa.; President, Federation of Building Industries. 
 
 The Committee met Sunday, October 19, at 8 p. m., the 
 following members being present : 
 
 E. W. RICE, JR., Chairman. 
 
 GEORGE A. O'REILLY, Vice-Chairman and Secretary. 
 
 WM. D. SOUTHWICK, Assistant Secretary. 
 
 J. H. BURTON. 
 
 A. R. BUSH. 
 
 MAJ. WM. M. CHAMBERLIN. 
 
 C. L. COMELL. 
 
 CHAS. E. HILDRETH. 
 
 GEO. A. RANNEY. 
 
 W. W. SALMON. 
 
 HAMILTON STEWART. 
 
 
 
 The following suggestions were offered for considera- 
 tion of the Committee : 
 
 1. Ascertain from Delegations: 
 
 (a) Class of goods required 
 
 (b) Quantity of same 
 
 (c) Rate of delivery required 
 
THE INTERNATIONAL TRADE CONFERENCE 381 
 
 2. Get information regarding plans of the four coun- 
 tries concerning the supplying of the needs of the Cen- 
 tral Powers ; this, because of its bearing upon our possi- 
 bility of production. 
 
 3. Information concerning the goods they will be able 
 to export; this in connection with the idea of barter. 
 
 4. Suggested that sub-committees be created to treat 
 different lines, or group of lines, which are to be con- 
 sidered. 
 
 5. Get information concerning the extent to which 
 these countries propose to supply their own needs by pur- 
 chases from us, also purchases from other countries. 
 
 6. It was suggested by Mr. Charles E. Hildreth that 
 the surplus machinery and tools, which it is proposed to 
 ofl'er to American purchasers by the Government, De 
 tendered to our Allies upon the same basis as is nroposed 
 to offer same to American trade. 
 
 MEETING. 
 OCTOBER 21, 10 A. M. 
 
 ITALY. 
 The Italian Committee, represented by : 
 
 L. LUIGGI. 
 
 V. MENEGHELLI. 
 
 E. BARONI. 
 
 F. QUATTRONE. 
 
 A. PALANCA. 
 T. THEODOLI. 
 M. LUIGGI. 
 A. ANZANI. 
 P. TUCCIMEI. 
 A. JACCARINO. 
 
 G. B. CECCATO. 
 
 Were received by the Reconstruction Supplies Commit- 
 tee, the following members being present: 
 
 E. W. RICE, Chairman. 
 
 GEORGE A. O'REILLY, Vice-Chairman and Secretary. 
 
 WM. D. SOUTHWICK, Assistant Secretary. 
 
382 THE INTERNATIONAL TRADE CONFERENCE 
 
 MAJ. WM. M. CHAMBERLIN, Assistant Secretary. 
 
 C. S. BRANTINGHAM. 
 
 A. R. BUSH. 
 
 J. H. BURTON. 
 
 C. L. CORNELL. 
 
 J. B. DOAN. 
 
 DR. J. T. DURYEA. 
 
 CHARLES A. GOODMAN. 
 
 CHARLES E. HILDRETH. 
 
 GEORGE A. RANNEY. 
 
 W. W. SALMON. 
 
 HAMILTON STEWART. 
 
 L. C. ZAPF. 
 
 Dr. Luigi Luiggi expressed great appreciation of the 
 wonderful industrial accomplishments of the United 
 States. Upon this, he based the confidence of the Italian 
 Mission in our ability to help Italy re-estabilsh herself. 
 Through Dr. Luiggi, the Commission voiced its apprecia- 
 tion of the efforts and success attendant upon Mr. Filene's 
 activities in behalf of this convention. 
 
 Dr. Luiggi stated that while the North of France has 
 suffered great industrial loss incident to the war, agri- 
 cultural interests in the North of Italy, have suffered very 
 materially, and this phase of the Mission's labors is to re- 
 ceive special attention. The Northern country is large- 
 ly under water, because of the lack of machinery in the 
 nature of pumps and other equipment for draining and 
 re-establishing the areas. The enemy destruction in this 
 section was exceptionally thorough. The region is high- 
 ly fertile, and the population is dense and exceptionally 
 capable in agricultural pursuits. Farmers also lost to the 
 enemy all of their farming implements which, together 
 with the damage to the buildings, developed almost com- 
 plete ruin. It is absolutely necessary to start produc- 
 tion on account of the great need of food supplies for the 
 rapidly growing population. Formerly Italy produced 
 sufficient food during eight or nine months of the year 
 to meet nearly all the requirements of the nation. Some 
 imports were made during the other three or four months 
 of the year. To meet the present and future conditions, 
 it is essential that the damaged machinery should be 
 
THE INTERNATIONAL TRADE CONFERENCE 383 
 
 replaced, and the farm machinery, fertilizers and other 
 methods of modern farming be applied. 
 
 The Austrians, while perhaps not so savage as the Ger- 
 mans, were more thorough in other respects. What was 
 not destroyed was carried away. If the buildings were 
 not destroyed completely, the doors, windows, hardware, 
 etc., were stripped and burnt or sent into enemy terri- 
 tory. As a result, lumber, windows, doors, etc., are vital- 
 ly needed to re-house people. Our aid in this respect is 
 solicited. While Italian homes were nearly all masonary 
 they cannot be built quickly, and haste is essential. Block- 
 making machinery would help those who desire to rebuild 
 in masonary and our cement block-making machinery 
 would be welcomed. In addition, our ready-made houses 
 would be of interest; this subject being treated later. 
 
 Prof. Vittorio Meneghelli explained that the fisheries 
 in the Adriatic, suffered materially. Practically anything 
 that served to secure fish, or other sea foods for the pop- 
 ulation, was destroyed. This included more than 1,000 
 fishing boats, and all equipment, such as nets, gear, etc. 
 This will require replacement. He submitted for the use 
 of the Committee, a complete report on the subject of 
 agricultural and industrial reconstruction, which is at- 
 tached. This report was read to the Committee. The 
 Professor stated, that in a nutshell, textile, engineering, 
 lumber, chemical and agricultural implements were those 
 needed prompt attention. 
 
 Com. Baroni explained how certain sections of the 
 country not yet in good cultivation, are surfaced with a 
 hard crust, which must be broken before cultivation. The 
 climate in this section is suitable for fruit, vineyards, 
 etc. The sections adjacent to Rome, and that in the 
 Southern part of Italy, are of this character. They would 
 all be exceedingly productive, if some means of quickly 
 and thoroughly breaking and cultivating the soil can be 
 had. Italy has large quantities of explosives, which she 
 wishes to use in blasting this surface, and Dr. Luiggi 
 asked what suggestion we could offer relative to quick 
 drilling processes which would produce holes, a maximum 
 
384 THE INTERNATIONAL TRADE CONFERENCE 
 
 of 3 feet in depth, in which explosives would be placed 
 for blasting. He suggested, that diamond drills, air drills, 
 etc., were too expensive, that some simple machine would 
 be required, and that, if possible, we should keep in mind 
 the fact, that electricity could be freely used throughout 
 these territories for power. Mr. Stewart, of Harbison 
 Walker Refractories, suggested the DuPonts be requested 
 to get in touch with the Italian Mission inasmuch as they 
 were doing this work on a large scale. 
 
 In other sections, winter rains and snows stay on the 
 ground so long that it prevents planting wheat and other 
 crops, unless promptly drained. There are a certain num- 
 ber of pumps, motors and draining equipment made in 
 Italy, but our larger interests in this direction suggest co- 
 operation in effecting desired results. After the land is 
 drained, trenches must be cut and the necessary ma- 
 chinery for doing this quickly and efficiently must be 
 secured. Not only it is necessary to drain these sections 
 for agricultural purposes, but the question of health of 
 the population living in these areas is involved. It is 
 requested, that the engineers of the United States War 
 Department, be asked to supply the Mission with the in- 
 formation relative to trench digging machinery, inas- 
 much as they have used large numbers of similar 
 machines during the war. It was suggested also, that 
 the Mission be referred to the Austin Company, of 
 Waukegan, 111., manufacturers of trench digging 
 machines. 
 
 There is an abundance of labor in Italy. Every means 
 of providing work and food for these men must be de- 
 veloped. Formerly, about 600,000 Italians emigrated 
 from Italy each year. The population is now increasing 
 at the rate of about 1,000,000 per year, and, because of 
 the shutting of the doors in allied countries to immigra- 
 tion, there is no exodus whatever, which is developing a 
 serious problem. If work and food is not supplied in the 
 immediate future, disturbances may result. It was sug- 
 gested, that American interests be requested to co-oper- 
 ate with the Mission in respect to the reclamation of land, 
 
THE INTERNATIONAL TRADE CONFERENCE 385 
 
 that is to clearing, draining and planting lowlands, to- 
 gether with the character of crops applicable. Dr. Luiggi 
 stated the Italian laws on the drainage of marshes grants 
 a good subsidy for this work on a very considerate basis. 
 Mr. Salmon of the General Railway Signal Company, of 
 Rochester, suggested that the Commission view the 
 work now being done in areas between Rochester and 
 Syracuse, in that much of it is of a character very similar 
 to that described by Dr. Luiggi. Mr. Salmon offered to 
 supervise a visit if the necessary arrangement can be 
 effected. 
 
 As a part of the above program of reconstruction, Dr. 
 Luiggi stated the housing question was of vital import- 
 ance. Wooden houses are too expensive. We might have 
 our manufacturers of standard homes submit a proposal 
 covering frames of houses without roofs or walls, but to 
 include wire netting sides upon which the Italians would 
 apply cement through cement guns, such as have been 
 made during the war. Expensive houses are not needed. 
 Buildings of a more or less temporary nature, such as 
 these frame and cement houses would meet the require- 
 ments. The Italians lack experience in the construction 
 of such houses, and will gladly invite American initiative 
 for their interest. Mr. Burton of J. H. Burton & Com- 
 pany, New York, suggested our "Take down" houses as 
 used during the war. He stated, the French Govern- 
 ment investigate these buildings, but because of the ten- 
 dency to stone similar to Dr. Luiggi's possible objection, 
 they were not inclined at first to buy them in quantities. 
 At the present time, however, Mr. Burton has submitted 
 bids for some 56,000 of these houses for use by the 
 miners in the Lens area. They are all fabricated ready 
 to set up. The cement is later applied with cement guns 
 as above described. Dr. Luiggi says this building is 
 exactly what they want in large numbers. The Southern 
 mills are figuring on supplying the lumber and frames, 
 and in designing and constructing them, they are includ- 
 ing the doors, windows, etc., that there will be absolutely 
 no loss, and the total cost would involve less than that 
 
386 THE INTERNATIONAL TRADE CONFERENCE 
 
 of an all-wood building. Dr. Luiggi suggested that these 
 buildings be supplied without roofs. Rubberoid roofs 
 have been experimented with in Italy, but on account of 
 the winds, and other conditions, they do not seem to have 
 proven satisfactory. Instead, roofs might be made of 
 tiles and slate, which are better and plentiful. Mr. Col- 
 lier, of the Ingersol Rand Company, can furnish informa- 
 tion relative to the cement guns referred to. 
 
 Summing up, the needs of reconstruction in Italy are 
 as follows: 
 
 Agricultural Machinery : 
 
 Pump machinery for drainage of land; trench dig- 
 ging machines, plows, sowing drills, tractors, thrash- 
 ing machines, drills for breaking up the land by ex- 
 plosives, etc. 
 
 Lumber : 
 
 For repairing houses and fishing ships ; about 20,000 
 tons per annum. 
 
 House Building Machinery: 
 
 Elevators for building materials, concrete and cement 
 mixers, excavators, brick presses, concrete block 
 making machines, cement guns, etc. 
 
 Machines For Fishing Industry: 
 
 Motors for ships, net making machinery, refrigera- 
 ting plants and trucks for fresh fish transportation, 
 etc. 
 
 The type and the number of these machines can only 
 be fixed after visiting the factories that produce them. 
 
 Dr. Luiggi expressed also the possibilities of hydro- 
 electric power in Italy. He stated, that of a possible 3 1/2 
 to 4 million h. p. available, only 1,500,000 was utilized. 
 It is desirable to utilize this power, but lack of money at 
 the present time prevents its development. Steel pipes, 
 transformers and other equipment will be required. 
 
 It is suggsted, that American and Italian interests be 
 combined for the purpose of developing this hydroelec- 
 tric power. Heavy trains can be handled over grades 
 incident to mountain lines, particularly in the central sec- 
 tions of the country, if the above can be effected. The 
 
THE INTERNATIONAL TRADE CONFERENCE 387 
 
 money necessary for these improvements can be returned 
 in the course of some ten to twenty years. Mr. Rice, 
 Chairman of the Reconstruction and Supplies Committee, 
 referred the Mission to Mr. Babb, of the Allis-Chambers 
 Company, of Milwaukee, interested in the manufacture 
 of water wheels. Dr. Luiggi suggested that the develop- 
 ment of these interests would enable Italy to amply re- 
 pay the United States for funds so employed. 
 
 The harbors at Genoa, Naples and Venice all require 
 improvements involving heavy expenditures. Some 
 $5,000,000 to cover the cost of dredges and other heavy 
 machinery, such as we have used on the Panama Canal, 
 will be necessary. This project, he thinks, is of such 
 vital interest that American engineers and executives 
 should visit Italy for the purpose of investigation. The 
 enlargement of the Genoa harbor has just been approved 
 by the Italian Government. This will involve the filling 
 in of some 3,000,000 square meters to provide space for 
 warehouses, etc,, in that it is physically impossible to 
 make further expansion landward, owing to the moun- 
 tains. The earth dredged will be used for filling in the 
 areas contemplated. It is estimated, that it will cost 150,- 
 000,000 lire, and that the land can then be sold at approx- 
 imately 300,000,000 lire. The Government is ready to 
 pay instalments up to 50,000,000 lire. American execu- 
 tives, engineers and contractors, are desired in connection 
 with the harbors and hydro-electric work, because of their 
 familiarity and proven ability to execute similar contracts 
 quickly. Italy would want to control on a basis of 51%. 
 Mr. Salmon, of the General Railway Signal Company, 
 Rochester, N. Y., advised that the New York State Barge 
 Canal was practically completed, and that possibly in the 
 near future the equipment used in this project could be 
 had. It was suggested that information be secured and 
 submitted to Dr. Luiggi. 
 
 Mr. Ranney of the National Implement & Vehicle As- 
 sociation, requested information from the Italian Mis- 
 sion, as to embargoes and restrictions existing on trac- 
 tors, and other articles at the present time. Mr. Quat- 
 
388 THE INTERNATIONAL TRADE CONFERENCE 
 
 trone, of the Italian State Railways, New York, stated 
 in answer, that temporarily certain restrictions and limits 
 were necessary on account of exchange. Mr. O'Reilly, 
 Vice Chairman, of the Reconstruction and Supplies Com- 
 mittee, asked if this did not apply only to cash payments. 
 Mr. Quattrone's answer gave the impression, that it ap- 
 plied generally. Mr. O'Reilly further stated, that he 
 hoped and assumed that exchange is, however, merely a 
 matter of temporary import. Dr. Luiggi also stated, 
 these embargoes are temporary, and that if Italy secures 
 large American loans, the exchange will drop, and that 
 after these loans have been consummated, the embargoes 
 would be raised. Mr. Quattrone asked, that the ques- 
 tion of credits not be considered so essential as that of 
 imports from Italy. They have great quantities of sul- 
 phur, marble and asphalt, and he thinks a combination of 
 American and Italian interests might be of material ad- 
 vantage to both countries. 
 
 Marble is also restricted from American markets, 
 which should be remedied, in order to develop exports to 
 America and decrease exchange. America previously pur- 
 chased large quantities of marble from Italy, and the 
 Italian Mission is interested in having this business re- 
 newed. 
 
 It was suggested that Italian engineers and dealers fre- 
 quently come to America to absorb American ideas; 
 whereas this is not reciprocated on the part of Ameri- 
 can interests. It was urged, that this be done. Italy 
 is very anxious to encourage mutual interests and earn- 
 estly requests that American executives keep in closer 
 touch with their possibilities. Co-operation might be also 
 arranged in respect to shipbuilding. The Mission espe- 
 cially invites American interests and shipbuilding experts 
 to study this phase of their requirements. 
 
 Large quantities of manganesite were exported from 
 Italy and from Austria and Hungary through Italy to the 
 United States. At the present time, California and 
 Washington are developing manganesite, said to be equal 
 that furnished by Greece, Austria and Hungary, but in- 
 
THE INTERNATIONAL TRADE CONFERENCE 389 
 
 f erior to Italian manganesite. This condition together with 
 the cost of transportation has greatly reduced the import 
 of manganesite to the United States, which, of course, is 
 felt by Italy. The price before the war was $16.00 per 
 ton, at New York. The price now approximates $35.00 
 to $40.00 per ton. In other words, the Western product 
 can be delivered very much lower in cost than that im- 
 ported. In addition, Congress passed a bill placing a duty 
 of $15.00 per ton on imported manganesite, all of which 
 means that the situation is rather indefinite at present. 
 Dr. Luiggi stated, the Italians were doing their very best 
 to lower exchange, and to bring about these improved 
 conditions. Prior to the war, they were shipping large 
 quantities of mercury to all of the Allies. Italy also pro- 
 duces large quantities of asphalt and borax, which they 
 are anxious to export. Dr. Luiggi stated the main in- 
 terest of the Mission is to lower exchange permitting 
 trade here in order not to be driven to other markets 
 
 It was stated that because many workmen in Italy 
 were not busy possibly unfinished articles could be 
 shipped from this country to Italy for completion by Ital- 
 ian labor, which might further reduce the cost. Raw 
 materials and machinery for the manufacture of finished 
 products for export to Turkey through Italy, and the 
 Near East, iy a subject contemplating the extension of 
 trade in that direction, and in addition, boots, shoes, 
 clothing, etc., partly prepared here, and completed in Italy 
 would find ready sale and develop trade. 
 
 Mr. Quattrone, appealed to the Committee relative to 
 the previous suggestion, that our practical men go to 
 Italy,, and co-operate with their labor. He stated that 
 many of our people visited Italy, but that as a rule they 
 came in appreciation of the artistic side of his country, 
 and that wb: ; le that was pleasing, he wishes our leaders 
 to see the possibilities of co-operation industrially, and 
 that, accordingly they come quickly for purposes of in- 
 vestigation along these lines. 
 
 Dr. Luiggi closed by stating that Italy must have help 
 of raw materials. England does not feel her losses so 
 
390 THE INTERNATIONAL TRADE CONFERENCE 
 
 much. France has suffered in the loss of men, and that 
 this is true of Belgium, but that in business, Italy has 
 probably suffered more than others. He stated, that 62% 
 of their Merchant Marine was destroyed, and that only 
 the smaller vessels were left, and that these were not 
 adapted for the purpose of export of merchandise. He 
 stated they have large shipyards and plenty of work- 
 men, but little raw material, so that the providing of raw 
 material is essential for the rapid industrial recovery of 
 Italy, and the money could be easily returned. 
 
 The inhabitants of Italy now total about 40,000,000. 
 Of these, 38,000,000 live by agriculture and all farmers 
 are very law-abiding citizens, leaving a balance of 2,000,- 
 000 for shipping and industries. The people are gener- 
 ally satisfied with conditions. He thinks order will be 
 kept throughout the country, and that few disturbances 
 we read of in the papers originate in thickly settled in- 
 dustrial centers, and are quickly abated by the rural pop- 
 ulation which means order. 
 
 Foodstuffs for a while will also be necessary, especially 
 wheat, and meats and fats may be required in certain 
 quantities. Dr. Luiggi thinks that after arrangements 
 for co-operation have been effected, and that sufficient 
 influence among our banks and large industries have been 
 arranged to develop these improved conditions, the rela- 
 tions will mutually and eminently satisfactory. 
 
 MEETING 
 WEDNESDAY, OCTOBER 22, 2:15 P. M. 
 
 FRANCE. 
 
 The French Committee, represented by M. le Comman- 
 dant Varaigne and Mr. Pesson-Didion, M. Tirman and M. 
 Parmentier, were received by the Reconstruction Supplies 
 Committee, the following members being present: 
 
 E. W. RICE, Chairman. 
 
 GEORGE A. O'REILLY, Vice-Chairman and Secretary. 
 
 WM. D. SOUTHWICK, Assistant Secretary. 
 
THE INTERNATIONAL TRADE CONFERENCE 391 
 
 W. M. CHAMBERLIN, Assistant Secretary. 
 
 MAX W. BABB. 
 
 C. S. BRANTINGHAM. 
 
 J. H. BURTON. 
 
 C. L. CORNELL. 
 
 J. B. DOAN. 
 
 DR. J. T. DURYEA. 
 
 CHARLES A. GOODMAN. 
 
 CHARLES E. HILDRETH. 
 
 STEPHEN C. MASON. 
 
 JOHN W. MCCLURE. 
 
 GEORGE A. RANNEY. 
 
 W. W. SALMON. 
 
 HAMILTON STEWART. 
 
 Major de Varaigne, head of the French Mission asso- 
 ciated with the American Services in Paris during the 
 war, read a review of the present situation in France 
 relative to reconstruction suppiles, a copy of which is at- 
 tached. 
 
 This report covers a general discussion of the subject. 
 
 France intends to follow the example of her friends in 
 the West. She will use improved machinery in an effort 
 to offset her loss of man power. The nation does not ex- 
 pect to require outside assistance in respect to farm ma- 
 chinery with the exception, perhaps, of harvesting 
 machines, binders, etc. The large number of motors, 
 tractors and other devices on hand following the war will 
 be applied quite generally to agricultural and other peace 
 requirements. 
 
 Lumber will be essential for building purposes. The 
 Baltic and White Sea sections, have supplied a portion of 
 these needs in the past. France intends to purchase as 
 much as is possible from her own colonies in order to 
 favorably affect the exchange rate. Many of the railroad 
 ties purchased by France and the Allies, remain on hand, 
 and in such quantities as to make it possible to divide 
 with other devastated areas where railroad reconstruction 
 is contemplated and under way. Only certain specialties 
 in wood and lumber will be imported from the United 
 States. 
 
 Silica brick for lining furnaces and other requirements 
 of a similar nature, will be imported from Greece and 
 Italy. The latter country is developing large interests 
 in ores of this nature. France, herself, will supply an 
 appreciable percentage of these products. 
 
392 THE INTERNATIONAL TRADE CONFERENCE 
 
 It is the intention of the French to import from those 
 sources, where they do not owe money in order to facil- 
 itate the payment of their debts to creditor nations. 
 
 It is true, that the switch and signal system of the 
 French railways are operated largely by hand. Only a 
 small number of freight trains are controlled by air. It 
 is admitted, that the larger cars, longer trains with 
 automatic control, as practiced in the United States, are 
 far superior to the small French car controlled by brake- 
 men, one to every five cars and indifferent schedules. The 
 customs of any country are difficult to change. Our sys- 
 tems are needed. Before the war, it was difficult to in- 
 augurate a change in methods because the five great rail- 
 roads were directed by engineers who are not inclined to 
 interfere with existing methods. Conditions have 
 changed, and there is now a bill before the French Par- 
 liament, which provides an administrative body for the 
 country's railway system, which will specify modern de- 
 vices for the safe and efficient operation of trains. Am- 
 erican assistance in this respect will be greatly appre- 
 ciated. Freight cars will have a capacity of fifty tons. 
 Generally, the small cars will be replaced. 
 
 It is the belief that the French working man is going 
 to take hold and do his part in the upbuilding of the 
 country. It is difficult to determine now nearly sufficient 
 the present supply of labor will be to the requirements. 
 Especially is this true of trained or expert leaders. Wages 
 is an element for consideration. It is not known what 
 percentage of labor may be had from Germany, if any, 
 in accordance with the Peace Treaty. This question has 
 not been settled. Emergency problems in respect to labor 
 are likely to remain a possibility. 
 
 It is not believed the labor situation in France is as 
 serious as that of the United States. America has gone 
 as far as she can in supplementing man power with 
 machinery. France still can improve in this respect. 
 United States has raised its labor forces to such an eleva- 
 tion, that they cannot go higher without the risk of a 
 blow-up economically. France has not yet reached the 
 limit to which she can make concessions to labor. Hence, 
 France has a considerable margin to rely on in further 
 developments. France is insured against bolshevism to 
 a large extent, because the peasants either own outright 
 or are directly interested in much of their land. Fully 
 90% of the farms are in their hands. The profits of the 
 soil will be worth more following the war than before. 
 
 France intends to export the same pre-war specialties; 
 
THE INTERNATIONAL TRADE CONFERENCE 393 
 
 silks, perfumeries, canned peas and other vegetables, 
 French macaronis, etc. However, a diversity of lines for 
 export is contemplated, for instance, the country now has 
 two million tons of steel for export, but doubts the op- 
 portunity of a ready market at present. These products 
 will be shipped wherever there is a source of demand. 
 It will all favorably affect the rate of foreign exchange. 
 That the rate of exchange will improve is certain. 
 
 The Chamber of Commerce is requested to submit the 
 list of machine tools required by France, and submitted 
 at this conference to the American Tool Builders' Asso- 
 ciation. It is believed, the association will co-operate to 
 the limit in securing these machines under the most fa- 
 vorable conditions of price, credit, etc. Reference is also 
 made to the large number of such tools in the hands of 
 the United States Government, in addition to those in 
 France, which were included in the sale of surplus sup- 
 plies to that country. 
 
 Russia, Roumania, Turkey, Servia and South America 
 are all debtor nations to France. Exports will be directed 
 as far as possible to these countries for obvious reasons. 
 
 With further reference to steel : France exported steel 
 and steel products before the war. She was the second 
 largest exporter of iron ore during that period. Much 
 pig-iron was exported to England. Coal, too, has always 
 been an important item of export. France supplied the 
 Allies with tanks, shells, light and heavy guns. The 
 United States purchased $300,000,000 in field guns alone. 
 Purchasing these supplies from France, effected a marked 
 saving in tonnage. The shipyards of France were mak- 
 ing war material. This explains the decrease in foreign 
 business during the war, and the great shortage of essen- 
 tials to the future of France as prevails today. The great 
 Creusot Works, is now preparing to manufacture mining 
 and other peace machinery. These plants are all being 
 re-established to meet peace-time requirements, and it 
 is believed that in the near future conditions will ap- 
 proach normal. 
 
 The canals of France are to be improved, enlarged and 
 used under much more favorable conditions. Larger 
 barges will be constructed. These means of communi- 
 cation with the eastern boundaries of the country will 
 greatly facilitate the exchange of supplies. The Seine is 
 to be improved, which includes deeper water at Paris. 
 The plan is a large one and contemplates work which 
 will involve the most improved engineering equipment, 
 dredges, shovels, etc. Cheaper transportation rates will 
 
394 THE INTERNATIONAL TRADE CONFERENCE 
 
 prove one of the marked advantages. America's work 
 on the harbors at Brest, and other ports, has greatly 
 impressed the French nation. Ten million dollars is the 
 sum contemplated for these improvements. 
 
 Food products are to receive special attention. Algeria 
 offers great possibilities for wheat when means of trans- 
 portation have been effected, and France expects to ex- 
 port considerable quantities of this essential. 
 
 In Alsace and other sections, it is contemplated to use 
 the great water power facilities for furnishing cheap 
 power throughout the adjacent sections. Railways oper- 
 ating with this power will afford cheap and efficient con- 
 nections with the Rhine. Large power plants with great 
 capacity and modern equipment, will be used instead of 
 smaller and more scattered units involving more labor, 
 etc. An outline of these proposed improvements is at- 
 tached. 
 
 The imports from Germany, in 1913 and 1914, naturally 
 included the products of Alsace and other sections now 
 within the boundaries of France. Potash interests are 
 to be enlarged. Formerly, Germany syndicated the out- 
 put, limiting the extent in order to control prices, etc. 
 Certain supplies will be imported from Germany, and the 
 costs applied on the debt of that country to France. 
 
 Summed up, the question of sources of supply for 
 France, are covered in the words of Major de Varaigne, 
 who stated, France intends to buy where she can get the 
 best goods at the best prices. 
 
 The "Lists of Importations from Germany into France 
 in 1912 and 1913," published by the Institut Francais 
 aux Etats-Unis, 599 Fifth Avenue, New York, affords in- 
 formation, which will enhance the value of this report if 
 a copy can be had and included. 
 
 REPORT BY M. LE VARAIGNE ON RECONSTRUCTION NEEDS 
 
 OF FRANCE. 
 
 I have been trusted with the mission of answering your 
 questions, and give you, as far as possible, any kind of 
 information you would require, about the work of recon- 
 struction to be completed in France, as well as about the 
 special supplies required for this work. In order to per- 
 form this task, I have thought that it would perhaps be 
 of interest to you to have, first, a general idea of what 
 this work of reconstruction may be, to what kind of de- 
 
THE INTERNATIONAL TRADE CONFERENCE 395 
 
 struction it applies, and in which proportion for each 
 kind. 
 
 I suppose, too, that it would be important for your 
 information to give you some figures, explaining what 
 was to be done at the time when the armistice was signed, 
 what has already been done, what remains to be done. 
 
 But, you could not understand completely, even with 
 figures, what this work of destruction accomplished by 
 the Germans amounted to, what it really meant for pop- 
 ulations entirely deprived of the means of earning their 
 livelihood, if I should not indicate to you first, the terrible 
 method with which the enemy acted, upon a perfectly 
 elaborated plan, to wreck our means of production. 
 
 In order to enlighten the question, we shall follow the 
 development and the execution of this plan. 
 
 At the very beginning, the German requisitions in the 
 occupied territories were limited to the necessities of the 
 zone of the armies, but, from January, 1915, the enemy 
 began to get hold, by means of requisition, of all the 
 goods which could not be brought to him from overseas 
 any more; coffee, rubber, wool, cotton, clothes, tissues, 
 etc. 
 
 Then, the Germans decided to transfer into Germany, 
 all our machinery in order to strengthen themselves, and 
 at the same time to weaken us. For this purpose an 
 official organization called B. D. K. was created, under 
 the supervision of the Minister of War. The first task 
 accomplished by this organization was to make an in- 
 ventory to classify and indicate to the German Indus- 
 trials, all the machinery existing in the plants of the 
 invaded regions in Belgium and Northern France. The 
 German Industrials, acting upon this information, and 
 often after a personal inquiry on the spot, bought any 
 material that happened to be convenient to them, giving 
 for this a percentage benefit to the said organization, 
 which made enormous profits out of this trade. 
 
 At the same time, with that civil requisition the mili- 
 tary service drew equally from our plants, all kinds of 
 supplies, the first opportunity being given, however, to 
 the B. D. K. organization. 
 
 As a manner of payment, the French or Belgian In- 
 dustrials would receive requisition bonds bearing no in- 
 dication of value, but only a very brief and often incom- 
 plete description of the material. 
 
 The requisitions made by the B. D. K. applied not only 
 to machinery, but also to railroad equipment, cranes, 
 even to building frames. 
 
396 THE INTERNATIONAL TRADE CONFERENCE 
 
 In many plants, when all the raw materials and ma- 
 chinery had been transferred to Germany, the frame 
 was minutely enumerated, then dismounted and sent to 
 be remounted in Germany. 
 
 After this period of utilization, came a period of de- 
 struction. To fill their blast furnaces and open hearth 
 furnaces, deprived of most of their pig iron, by the lack 
 of transportation, the Germans put into pieces with the 
 blow pipe, the metallic frames of the works, and trans- 
 formed in scrap iron the special machinery, which it was 
 impossible to transport. 
 
 They succeeded in this way in reducing by 75%, the 
 difficulties of transportation of the raw materials, but de- 
 stroyed by 90% to 95% the value of that machinery, and 
 thus sentenced to death the robbed plants, taking into 
 consideration the difficulties and duration of time that 
 would be necessary to replace that fundamental equip- 
 ment. 
 
 Such destruction was carried on without interruption, 
 until the end of the war, and even after the armistice 
 was signed. 
 
 On the 23rd of November, 1918, a letter sent by an 
 inhabitant of a town near to a German-Belgian border, 
 and yet occupied by the enemy, read as follows : 
 
 "We are full of joy and exultation, the last Boche rob- 
 bers will leave us within two or three days. They have 
 continued to destroy and plunder until the last minute." 
 
 At that time, the German Kaiser had already signed, 
 and the military party was no more the leader of Ger- 
 many. This is the best evidence that all the German 
 people are fully responsible for those destructions. 
 
 Those requisitions were not in any way commanded by 
 military necessities, and their issues were already in- 
 tended for civilians. 
 
 As an evidence of this information, there is a transla- 
 tion of an article published by the "Nordentsche All- 
 gemeine Zeitung," in August, 1918, which is as follows: 
 
 "Tools and construction materials, coming from the oc- 
 cupied territories will shortly be given to German 
 farmers, industrials and traders." 
 
 "The intermediaries" speculation will be avoided by any 
 possible means. There are, in those stocks: Pioneer 
 tools, tools for iron and lumber industries, for pipe con- 
 struction, for concrete makers, light apparatus, cables, 
 etc." 
 
 This is the best proof that military requisition has 
 been conducted in a way entirely contradictory to the 
 
THE INTERNATIONAL TRADE CONFERENCE 397 
 
 stipulations of the Hague Convention, for the only bene- 
 fit of civil enterprises, far away from the zone of armies. 
 
 The enemy could not even try and justify those requisi- 
 tions by the necessities resulting for him from the 
 blockade. 
 
 He has actually attempted to sell his surplus in neutral 
 countries. Offers have been made by advertisements, 
 notably in Holland and in Sweden, and the Allied diplo- 
 macy had to intervene to stop such sales. 
 
 If one remembers that the B. D. K., an organization de- 
 pending upon the Ministry of War, was given a per- 
 centage benefit on all these operations, one cannot but 
 conclude that the Germans have transformed the military 
 requisition into an immense and profitable commercial 
 enterprise. 
 
 If you add to those systematic destructions the ravages 
 made by the war itself; the towns and villages blown up 
 and put into flames by the incessant firing of the guns; 
 fields overturned by the battle raging for four years on 
 their soil, which is the total of the damages ? 
 
 A few figures for each of the branches in which de- 
 structions were operated will give you a general idea of 
 the harm done to France. 
 
 PUBLIC WORKS. 
 
 Figures extracted from "Journal Officiel," February 10th and 24th, 
 March 21st and July 8th, 1919. 
 
 A. RAILROAD: 
 
 Railroad lines destroyed or out of service 3,027 miles 
 
 Bridges destroyed 1,510 miles 
 
 Telephone and telegraph lines destroyed 1,730 miles 
 
 Buildings destroyed 590 miles 
 
 Water tanks 150 miles 
 
 Metallic canalization, signals and metallic 
 works other than bridges: tonnage to be 
 
 replaced 20,000 tons 
 
 Construction or repair shops out of order 7 
 
 Warehouses completely destroyed 25 
 
 Local railway lines and tramways: 
 
 Mileage of lines destroyed or damaged 850 miles 
 
 Estimate of material damages 416,000,000 francs 
 
398 THE INTERNATIONAL TRADE CONFERENCE 
 
 B. WATERWAYS: 
 
 Number of miles to be reconstructed 580 miles 
 
 Bridges entirely destroyed 450 
 
 Locks entirely destroyed or seriously damaged 115 
 
 C. ROADS: 
 
 National Roads : 
 
 Mileage of national roads damaged 4,800 miles 
 
 Tonnage of necessary materials 2,900,000 tons 
 
 Engineering feats destroyed 550 
 
 Approximate expenses 130,000,000 francs 
 
 Other Highways: 
 
 Mileage of roads to be repaired 52,000 miles 
 
 Tonnage of the necessary materials 7,500,000 tons 
 
 Number of engineering feats destroyed 1,500 
 
 Approximate expense 260,000,000 francs 
 
 2. INDUSTRIAL DAMAGES: 
 
 Material. Buildings. Raw Materials. Manufactured Products. 
 
 Failure to Profit. 
 Kind of Industries Affected. Total Estimate of Damages. 
 
 COMBING (1500 units) 3,186,480,000 francs 
 
 Cotton Mills: 
 
 Combed Wool 2,386,000 spindles 
 
 Carded Wool 400,000 spindles 
 
 Cotton 3,000,000 spindles 
 
 Flax, hemp, jute 500,000 spindles 
 
 12,356,280,000 francs 
 WEAVING : 
 
 Wool 36,000 looms 
 
 Cotton 14,500 looms 
 
 Lin-en 19,700 looms 
 
 Tulles, laces, embroideries 1,500 looms 
 
 Total 5,956,160,000 francs 
 
 COAL MINES: 
 
 For 22-millions of tons extracted and for 
 
 re-establishment of excavation works 4,254,400,000 francs 
 
 PRODUCTION AND DISTRIBUTION OP ELECTRIC POWER: 
 
 Material, Lines and Accessories : 565,560,000 francs 
 
THE INTERNATIONAL TRADE CONFERENCE 399 
 
 Kinds of Industrials Affected. Total Estimate of Damages. 
 
 IRON MINES: 
 
 Francs 
 
 For 18,000,000,000 tons extracted and for re- 
 establishment of excavation works about 500.000,000 
 
 Metallurgy of Iron and rough metallurgy 11,085,840,000 
 
 Mechanical construction and electric power 3,731,000,000 
 
 Sail metallurgy 2,587,580,000 
 
 Breweries (1,700 establishments) 616,260,000 
 
 Sugar refineries , 1,032,920,000 
 
 Distillieries, agricultural establishments 761 640,000 
 
 Oil plants, 110 establishments, production 
 
 90,000 tons 218 450,000 
 
 Tan-yard curriers' shops 174,920,000 
 
 Dying establishments, bleaching establishments 
 
 and stiff starching establishments 475.940,000 
 
 Chemicals and industrial products 4,451,350,000 
 
 Mirror and glassware factories 430,060,000 
 
 Extractive industries (4 million tons) 84,840,000 
 
 Tramways (393 miles) 132,730,000 
 
 Flour mills 422,140,000 
 
 Total 53,100.670,000 
 
 3. POPULATION AFFECTED BY WAR EVENTS: 
 Communes occupied by the enemy or evac- 
 uated 4,023 
 
 Total population of ten stricken "Depart- 
 ments" 4,987,922 inhabitants 
 
 DAMAGES AFFECTING FARMING: 
 
 Area of farming lands damaged by the war 1,800,000 ha. 
 
 Losses in farming implements 362,000 app. 
 
 Losses in vehicles, working stock 104,000 app. 
 
 LOSSES IN CATTLE, HORSES: 
 
 Heads. 
 
 Oxen 705,000 
 
 Sheep 678,000 
 
 Goats 13,000 
 
 Pigs 225,000 
 
 Asses and mules 3,000 
 
 Horses 268,000 
 
400 THE INTERNATIONAL TRADE CONFERENCE 
 
 5. DAMAGES AFFECTING REAL ESTATE PROPERTY: 
 
 pi > 
 
 0^2 "71 K^ 
 
 ft 
 
 $ 
 
 * 
 
 *3 
 
 2 
 
 c 
 
 S 
 
 ox, 
 
 
 'E 
 
 
 
 
 
 _r* s ^ 
 
 a 
 
 
 
 TJ 
 
 p . 
 
 "~ a 
 
 c 
 
 ^ w > 
 
 * 
 
 1 . 
 
 <& 
 
 0? 
 
 |S 
 
 c 
 
 o <y <u 
 
 M f 
 
 
 w <u 
 
 gl 
 
 ^ Jj 
 
 ^"1^3 
 
 IIB 
 
 o> < 
 
 *-C g 
 
 ?H f\ 
 
 '43 g" 
 
 p 
 
 M e8 - 
 
 ,2 -2 
 
 
 ^.X <u 
 
 l 
 
 S ft 
 
 || 
 
 
 || 
 
 ^ T 1 fe 
 
 ii 
 
 w oj 
 
 
 
 
 PH 
 
 PH 
 
 i 
 
 JH 
 
 s 
 
 .. 413,440 
 
 35% 
 
 52,817 
 
 93,252 
 
 
 
 
 ... 174,604 
 
 55 
 
 66,253 
 
 29,360 
 
 1,211 
 
 404 
 
 110 
 
 ... 94,175 
 
 62 
 
 41,004 
 
 17,831 
 
 1,119 
 
 907 
 
 
 ... 54,380 
 
 35 
 
 9,514 
 
 9,309 
 
 466 
 
 96 
 
 
 ... 144,628 
 
 69 
 
 50,888 
 
 48,946 
 
 2,755 
 
 734 
 
 60 
 
 ... 76,844 
 
 36% 
 
 9,578 
 
 17,562 
 
 492 
 
 
 
 ... 83,309 
 
 61 
 
 31,759 
 
 19,087 
 
 1,355 
 
 296 
 
 51 
 
 ... 53,336 
 
 68 
 
 23,830 
 
 12,202 
 
 
 
 
 ... 77,863 
 
 31 
 
 10,235 
 
 13,915 
 
 719 
 
 126 
 
 
 23,075 
 
 19 
 
 2,928 
 
 4,227 
 
 113 
 
 48 
 
 4 
 
 .1,195,654 
 
 47% 
 
 298,806 
 
 265,691 
 
 8,230 
 
 1,911 
 
 225 
 
 a^ 
 
 /erage 
 
 
 
 
 
 
 Nord 
 
 P. de C. . 
 Somme .... 
 
 Oise 
 
 Aisne 
 
 Ardennes 
 
 Marne 
 
 Meuse 
 
 M. & M. 
 Vosges .. 
 Totals . 
 
 The preceding figures may give you a pretty accurate 
 idea of the work with which France was confronted at the 
 time when it was possible for her to count her wounds and 
 measure their extent. 
 
 However tremendous was such an amount of work to 
 be done, however far exceeding the resources in labor and 
 supplies of France it may have seemed at first sight, 
 France was not discouraged at it, and immediately set to 
 work, without complaining and without, as it has falsely 
 been said, waiting for any help from outside. 
 
 The best evidence of this affirmation will be given to 
 you by a new set of figures, which will show you the 
 extent of the efforts that have already been made by 
 France to help herself and get out of her troubles by any 
 means she possessed offhand. 
 
 Those figures, as you will appreciate, I have no doubt, 
 have the fullest significance, and will enable you to 
 realize, at the same time, as well the extent of the work 
 that remains to be done, as the results obtained so far 
 by France alone in the way of getting on her feet again. 
 
THE INTERNATIONAL TRADE CONFERENCE 401 
 
 1. PUBLIC WORKS: 
 
 (a) Railroads 
 
 Number of miles remaining to be recon- j Double tracks 820 m. 
 structed when armistice was signed. | Single tracks 400m. 
 
 ) Double track 720m. 
 Number of miles reconstructed so farj gingle track 37Q m> 
 
 Number of miles remaining to be constructed, still 
 
 unserviceable 150m. 
 
 Number of stations still closed to traffic 46 
 
 Engineering feats still to be reconstructed .1 160 
 
 Engineering feats actually reconstructed 588 
 
 Telephone and Telegraph lines destroyed 1.730m. 
 
 Local Railway Lines and Tramways: 
 Mileage of lines destroyed or out of service 850 m. 
 
 ( b ) WATERWAYS : 
 
 Number of miles to be re-established at the Armistice . . 580 m. 
 Number of miles re-established 375 m. 
 
 2. AGRICULTURE: 
 
 Total area of the invaded territory 3,200,000 H. 
 
 Total area of farming land 1,800,000 H. 
 
 Total area of land rendered to cultivation 400,000 H. 
 
 Losses in oxen and horses (900,000 & 300,000) 1,200,000 H. 
 
 Replacements already made 200, 000 H. 
 
 Losses in farming implements 262,000 hp. 
 
 Replacements already made 200,000 hp. 
 
 Losses in vehicles and rolling stock 104,000 hp. 
 
 Replacements already made 16,000 hp. 
 
 Tractors for farming motor implements in service... 2,400 
 
 Seeds delivered in Spring, 1919 572,574 quint 
 
 Seeds estimated for Fall, 1919 328,000 quint 
 
 Fertilizers delivered in Spring, 1919 93,941 quint 
 
 Fertilizers estimated for Autumn, 1919 644,520 quint 
 
 3. BUILDING HOUSES: 
 
 Total of houses destroyed or damaged by the war 550,000 
 
 Houses temporarily repaired 80,000 
 
 Constructions semi-temporarily 23 ,600 
 
 Barracks already fixed .16,225 
 
 Temporary barracks and houses in course of construc- 
 tion or in order 60,000 
 
 Material delivered: 
 
 Bricks 150.000,000 
 
 Bituminous paper (February-Aug.- 
 
 ust) 15 millions of square metres 
 
 Transparent product 4 millions of square metres 
 
402 THE INTERNATIONAL TRADE CONFERENCE 
 
 4. LANDS: 
 
 Area of lands covered by barbed wire, 
 
 removed 98 ,800,000 sq. metres 
 
 Area of lands cleared out of projectiles... 2,194,000 
 Number of cubic metres filled into 
 
 trenches 54,000,000 cubic metres 
 
 Number of wells cleaned 17,507 
 
 TRANSPORTS TAKEN IN CHARGE BY MINISTRY OF DEVASTATED 
 REGION : 
 
 Material used 10,000 trucks 
 
 4,000 trucks 
 
 Tonnage handled weekly by kilometres 1,700,000 tons 
 
 Number of narrow gauge railroads exhibited 760 miles 
 
 Kilometre tonnage weekly 130,00 ) tons 
 
 RECOVERY OF LOCALITIES: 
 
 Number of communities occupied by the enemy evac- 
 uated 4,023 
 
 Number of communities back to civil life 3,872 
 
 Number of public schools before the war 4,583 
 
 Number of public schools opened on August 31st 3,000 
 
 ADVANCES COVERING WAR LOSSES. 
 (Made by the French Government) . 
 
 Principal objects: 
 
 Advances made to people as indemnities for war 
 
 damages 
 
 Advances for immediate reconstruction. 
 Advances for furniture. 
 Advances for agriculturists 
 
 Advances to working men and small merchants, etc. 
 Amount of advances to these different headings from 
 
 January 1st to September 1st, 1919, 1,500,000,000 
 
 francs. 
 
 This is, gentlemen, what France has already done in 
 the way of reconstruction during the first eight months 
 of 1919. If you will take into account the bulk of mater- 
 ial and supplies of all sorts that was to be transported 
 for that work from every part of France, on a railway 
 system which had already been under the most tremend- 
 ous pressure during the war, and to which another 
 enormous effort was imposed for the transportation of 
 demobilized troops, you shall realize the immensity of 
 the task which has already been performed. 
 
THE INTERNATIONAL TRADE CONFERENCE 403 
 
 During the six months period from April 1st to Sep- 
 tember 30, 1919, the whole military transportation, oper- 
 ated on the French railway lines, as well for the Ameri- 
 can as for the French army, necessitated the running of 
 about 30,000 trains of fifty cars each. 
 
 Our railway system, having now done with such addi- 
 tional burdens, will be more able to meet the require- 
 ments for the reconstruction. 
 
 I come now to a new part of this statement, to which 
 we could give as a headline : 
 
 WHAT KIND OF HELP CAN BE GIVEN TO FRANCE FOR. HER 
 RECONSTRUCTION WORK? 
 
 Here, gentlemen, I reach a most difficult part of my 
 task. I shall try my best to tell you definitely which 
 are the requirements of France from other countries, 
 and particularly from America, for reconstruction pur- 
 poses, but you must realize that France has been divided, 
 for statistics, into two zones : the devastated one and the 
 other regions, and that figures can only be approximately 
 given. 
 
 However, from my first conversation with some of the 
 gentlemen in this committee, in which they were kind 
 enough to state before me, with a great frankness, and in 
 a perfect spirit of cooperation, what they expected me to 
 explain to you, I have come under the impression that 
 any information I should be able to give would be wel- 
 comed by you. 
 
 In studying our needs for reconstruction, we must bear 
 in mind that, under actual economic conditions, and in 
 view of the exchange market, it seems that it is absolute- 
 ly imperative that France should bend all her energies to 
 increase her production and restrict her importations to 
 the articles which she cannot procure at home or in coun- 
 tries where the exchange works in her favor. By so do- 
 ing, she will protect not only her own interest, but the 
 interests of her creditors. 
 
 From this point of view, our situation may be summed 
 up as follows: 
 
 France should obtain from importing manufactured 
 articles, and import only the necessary raw materials to 
 feed her production. The country helping us to get the 
 needed raw materials will directly contribute to our work 
 of reconstruction, as it will allow us to give work to our 
 existing industries in the whole country, and to produce 
 
404 THE INTERNATIONAL TRADE CONFERENCE 
 
 most of the necessary articles needed for the preparation 
 of our devastated regions. 
 
 In our opinion, the problem of setting in motion our 
 production outside of the devastated regions, and the 
 problem of restoring the devastated regions are but one 
 and the same problem. 
 
 We will see, passing in review our direct needs for 
 reconstruction that they can nearly all be met by our 
 resources, provided that, on the other hand, we will re- 
 ceive the raw materials necessary to restart and develop 
 our production in the rest of the country. 
 
 In fact, the four factors of the reconstruction work are : 
 labor, materials, transportation, and finally, organization 
 and execution ; that is to say, engineering and supervision. 
 
 We shall review successively those four factors, and 
 try to get an idea about the help America could lend us : 
 
 A. Labor: 
 
 I think that we may, without any hesitation, state that 
 America, a country already suffering from the scarcity 
 of labor and paying very high wages to workmen, is not 
 in a position to lend us any assistance in this matter. 
 
 B. Materials: 
 
 The principal materials which are needed for the recon- 
 struction, are, roughly enumerated, as follows: Lum- 
 ber, concrete, lime and cement, glass and other similar 
 products, stones, bricks and tiles, slates, frame work, 
 machinery, agricultural machinery, textile machinery, 
 leather or cotton belting, hardware. 
 
 A. Lumber: 
 
 We were already importers of lumber before the war, 
 for about 1,230,000 tons. During the war, the enormous 
 military requirements to which France had to satisfy 
 with her own resources, have resulted in the clearing 
 of trees of important areas. 
 
 Owing to thse facts, the so far made estimates provide 
 that in the next few years, France will have to import 
 a minimum of three to four millions of cubic metres of 
 lumber per year. 
 
 We hope to be able to get from our African colonies, 
 in which the resources in lumber are enormous, the 
 greater part of our requirements. 
 
 If there is any dificit to meet, Sweden, Norway and even 
 Bohemia, can send us the surplus, without counting Ger- 
 
THE INTERNATIONAL TRADE CONFERENCE 405 
 
 many, who can very well pay a part of its indemnity by 
 shipments of lumber. 
 
 B. Concrete Lime Cement: 
 
 There is, very likely, no help to be asked for, by France, 
 for such materials. The production before the war was 
 in general sufficient for the consumption, and a margin 
 was even left for exportation of cement. The demand 
 will certainly be much greater in France now than it 
 was before the war, but all the developments of produc- 
 tion necessary to match the requirements are under way. 
 
 C. Glass and Similar Products: 
 
 The production in France before the war far exceeding 
 the local consumption, and a very important surplus was 
 left for export trade. 
 
 We are, it is true, deprived of a part of our production 
 by the destruction of an important number of our plants 
 in the North of France, but, if for some time, we are 
 compelled to import glass, we shall certainly find, in Bel- 
 gium, any quantity of glass that we may happen to need. 
 
 D. Stones, Bricks and Tiles, Slates: 
 
 For air that line of materials the estimation already 
 made by exports provide equally that, however, important 
 the demand may be, the resources of France, properly 
 utilized, will be sufficient. 
 
 E. Steel Frame Work: 
 
 Restoration of Alsace Lorraine, whose iron and steel 
 industry was specialized in the production of commercial 
 steel, notably frame, gives us very important supply of 
 this material, not only sufficient for our present needs, 
 but leaving a substantial surplus for the export trade. 
 
 F. Machinery : 
 
 In France, which are the machine tools of national pro- 
 duction that can compete with the imported machines ? 
 
 In the first place,, we mention the engine lathes, which, 
 with the exception of a few tool-room lathes, types of 
 Hendey Norton, Rivett or special relieving machines, for 
 instance, are manufactured under good conditions. We 
 estimate that the total quantity necessary can be pro- 
 duced by France in a proportion of from 3 to 4 and can 
 be introduced in a proportion of from 1 to 4. 
 
 For the sensitive, ordinary, radical or special drilling 
 machines, one must estimate that France can produce 
 
406 THE INTERNATIONAL TRADE CONFERENCE 
 
 approximately a fourth of the necessary quantity, a half 
 at the utmost. 
 
 In order to give a general idea of the requirements in 
 machine tools for our country, and the means wherewith 
 to satisfy them, the French Mission has drawn a schedule 
 indicating : 
 
 1. The designation of the machines. 
 
 2. The total quantity necessary for a period of ap- 
 proximately 12 to 18 months. 
 
 3. The proportion which can be found in France, or 
 imported. 
 
 4. The approximate corresponding value in francs. 
 
 I have only one English copy of it, which I shall with 
 pleasure lend to one of you, and which you could have 
 copied. 
 
 In conclusion, it results from this study, that France 
 must produce, within 18 months, approximately 16,520 
 machine-tools for an approximate value of 198,503,000 
 francs, that it is indispensable to import approximately 
 37,454 machine tools for an approximate value of 251,- 
 367,000 francs. 
 
 As concerns small tools, one can estimate that in 
 France, it is possible to produce a half of the necessary 
 tools and to import the other half. 
 
 G. Agricultural Machinery: 
 
 According to information we have, machinery for motor 
 farming is very little required by France, and it is esti- 
 mated, that the French production, to which may be added 
 the great bulk of machinery already introduced in France 
 during the war will be sufficient in quantity for our needs. 
 
 On the contrary, some more accessory and harvesting 
 machinery, reapers, binders, thrashing machines, etc., 
 may be still bought in America in the near future, 
 though the total amount does not run into figures. 
 
 H. Hardware: 
 
 There does not seem to be any need of importing hard- 
 ware in large quantities, very considerable numbers of 
 workshops having started during the war to the effect 
 of manufacturing war material, tanks for machines, 
 artillery trucks, etc., whose activities have now been 
 diverted to the manufacture of hardware. 
 
 /. Special Machinery for Textile Industries: 
 
 As it has been stated in the Textile Committee, our 
 
THE INTERNATIONAL TRADE CONFERENCE 407 
 
 industry in the North of France, has been partially put 
 out of service and robbed of its machinery. But an im- 
 portant part of the stolen material has already been 
 brought back from Germany, and the plants have been 
 put into operation again. 
 
 However, all the machinery employed in France during 
 the war, has greatly suffered from an intensive use, and 
 wants overhauling and even partial replacement. 
 
 As far as the cotton industry is concerned, I am able 
 to give you some figures that will indicate what will be 
 our approximate needs in looms and spindles in the next 
 few years. 
 
 I know for certain that it would be exceedingly interest- 
 ing* for the French textile industry, not only of cotton, 
 but of wool and linen, to find in America a part of the 
 looms and spindles it will require. 
 
 Before the war, there was in France a total of about 
 140,000 cotton looms. The return to France of Alsace 
 Lorraine, will increase this number by about 45,000 looms, 
 which gives a grand total of about 185,000 looms. 
 
 We shall be near the truth by saying, that in the next 
 few years, we may require yearly, about 20,000 new 
 looms, that is to say, a little more than 10% to keep our 
 cotton machinery in good working condition. 
 
 The number of cotton spindles before the war was 
 about 1,250,000. Alsace Lorraine will give us almost 
 2,000,000 more spindles. The total of our spindles will 
 be more than 9,000,000, for which the same proportion 
 of replacements shall be necessary. 
 
 For the wool industry, the number of our spindles was, 
 before the war, 2,600,000. One hundred thousand more 
 spindles have been put into operation and Alsace Lor- 
 raine brings back to us 500,000 spindles. The total num- 
 ber of our wool spindles will consequently reach 3,200,000 
 for the necessary replacement of which we shall equally 
 be glad to count upon American deliveries. 
 
 C. Transportation: 
 
 This question, which is being taken in the Shipping 
 Committee, is a very serious one. I have already stated 
 in the first part of the present study, the tremendous pres- 
 sure which has been, during the last five years, and espe- 
 cially during the last six months, put upon the railroad 
 system of France. 
 
 This system is not yet working in a normal manner. 
 But, a great improvement has already been effected, and, 
 
408 THE INTERNATIONAL TRADE CONFERENCE 
 
 it is expected, that the situation will be normal at the 
 end of the present year. 
 
 The rolling stock recuperation from Germany, as well 
 as the American engines and cars bought by the French 
 government from your stock in France, are sufficient for 
 our needs. On the other hand, our stock of rails and ties 
 are numerous enough. 
 
 What we need is to reorganize on a normal basis a 
 traffic system disturbed by the necessities of war. As 
 far as the rebuilding of roads is concerned, which means 
 a very considerable work, we have the necessary raw 
 materials and machinery. 
 
 D. Engineering Work: 
 
 There remains to be considered the general organiza- 
 tion of the work, and, particularly the engineering con- 
 struction work. 
 
 There, gentlemen, I suppose that your co-operation 
 could be of a very high value. 
 
 You know much more about construction engineering 
 than anyone else. Your engineers have become masters 
 in the way of building, in the shortest possible time, com- 
 plete towns and villages. 
 
 I feel pretty sure that your collaboration in that line, 
 would be a very useful one. I am not speaking here in 
 any official capacity as you well know, but I express a 
 personal opinion shared by many of my friends. 
 
 I feel too much myself about Franco- American co-oper- 
 ation, in which I have been engaged so completely during 
 the war, to have any doubts upon the results which that 
 new co-operation could obtain, and, I think, it would be 
 a splendid culmination of our joined effort if your en- 
 gineers would come and help in rendering to life those ter- 
 ritories for the freedom and the soil of which your sol- 
 diers have fought side by side and heart by heart with 
 ours. 
 
 MEETING. 
 WEDNESDAY, OCTOBER 22, AT 10 A. M. 
 
 GREAT BRITAIN. 
 
 The British Committee, represented by Mr. Marshall 
 Stevens, as Chairman; Sir Arthur Shirley Benn, Sir 
 James Hope Simpson, C. B. Carryer and Lieut. A. S. Jar- 
 
THE INTERNATIONAL TRADE CONFERENCE 409 
 
 ratt, Assistant Secretary, were received by the Recon- 
 struction Supplies Committee. 
 
 The following members being present : 
 
 E. W. RICE, JR., Chairman. 
 
 GEORGE A. O'REILLY, Vice-Chairman and Secretary. 
 
 WM. D. SOUTHWICK, Assistant Secretary. 
 
 MAJOR W. H. CHAMBERLIN, Assistant Secretary. 
 
 BRANTINGHAM, C. S. 
 
 BURTON, J. H. 
 
 BUSH, A. R. 
 
 CORNELL, C. L. 
 
 DOAN, J. B. 
 
 DURYEA, DR. J. T. 
 
 GOODMAN, CHARLES A. 
 
 HILDRETH, CHARLES E. 
 
 HOWARD, C. C. 
 
 MASON, STEVEN C. 
 
 RANNEY, GEORGE A. 
 
 SALMON, W. W. 
 
 STEWART, HAMILTON. 
 
 The British Commission, opened the discussion in a 
 statement to the effect that they were seeking no favors 
 and that their own reconstruction problems were being 
 solved without outside aid. They have come primarily to 
 co-operate with the United States in helping to re-estab- 
 lish those nations seriously impaired because of the war. 
 
 One of their own immediate problems is the housing 
 of their own people, who have been assured by the Gov- 
 ernment, that on return of the men everything that could 
 be done for their welfare would be effected. England 
 is now considering the utilizing of the wooden huts used 
 during the war in face of prejudice against this type of 
 house prior to the war. Legislation prevents profiteer- 
 ing in rents. England is probably suffering more in 
 respect to a shortage of housing than any other nation 
 involved in the war. 
 
 In providing for the devastated areas only those sup- 
 plies actually needed should be afforded. Luxuries and 
 non-essentials should be eliminated. In order to develop 
 uplift and improve social conditions, an effort should be 
 made to provide better living conditions than prevailed 
 before the war. In view of the fact, that the United 
 States is more familiar with quickly constructed houses, 
 than other nations, that phase of the subject is one. 
 America should especially undertake to solve. 
 
410 THE INTERNATIONAL TRADE CONFERENCE 
 
 England is short of transportation, which includes 
 locomotives, etc., and there is an urgent need for up-to- 
 date means of dealing with transportation. Solving this 
 question is a problem with which they are very much 
 concerned at present. The financial question is more 
 pertinent with England than the subject of reconstruc- 
 tion. 
 
 Sir Arthur Shirley Benn, in reviewing the above, stated 
 that while 400,000 houses were short, and should have 
 been built within the period of the war, they were con- 
 fronted now with a possibility of only 80,000 buildings 
 per year; this, because of the lack of the trained labor 
 required in providing larger numbers of houses. 
 
 England and the United States, apparently, are doing 
 all that is possible to prevent further inflation of prices. 
 
 Sir James Hope Simpson stated that the supply of raw 
 material in England is ample ; that they have large stocks 
 which, when developed into finished products, will favor- 
 ably affect the rate of exchange between England and 
 America. 
 
 The Commission emphasized the fact that England, be- 
 cause of her extensive financing of the other Allies before 
 America entered the war, is disposed at present to work 
 toward the payment of her own obligations, instead of 
 assuming others by extending long-term credits to her 
 friends on the continent the question of financing the 
 long-term requirements of reconstruction in the devas- 
 tated areas is in a large measure up to the United States. 
 
 Considerable discussion was devoted to the question of 
 risk to be assumed in financing reconstruction require- 
 ments. A rather sharp distinction was drawn between 
 the risks which could be assumed by business men, and 
 those which should be assumed by government. Refer- 
 ence was made to political risk in the more newly estab- 
 lished countries of Europe, and to the propriety of hav- 
 ing this risk assumed by goverments, instead of by busi- 
 ness men. The question of exchange risk also was dis- 
 cussed. 
 
 Long credits will be essential to the conduct of busi- 
 ness with countries affected by the war. In Poland, food 
 and cotton are essential. The mills of Poland are ready 
 to resume operations as soon as raw cotton can be sup- 
 plied. This will furnish labor for many idle people, and 
 will serve to stabilize conditions. In all devastated coun- 
 tries, tools and agricultural machinery are the require- 
 ments. Particularly does this apply to South Russia. 
 
THE INTERNATIONAL TRADE CONFERENCE 411 
 
 Shipments have already been made to these territories, 
 and in several cases the principle of barter of commodities 
 was applied directly with good results. Summed up, the 
 essential is a supply of sufficient raw materials, and the 
 means with which to reproduce the necessities. This is 
 a work of humanity and will serve to stabilize political 
 conditions. 
 
 The British Commission stated that these supplies from 
 impoverished countries could be better supplied and 
 financed by America than by any other country, and that 
 an American Commission might find it advisable to be 
 on the spot in European countries to approve such ship- 
 ments as were brought in, to arrange the securities, and 
 to eliminate the requisitioning of unnecessary luxuries. 
 
 The Commission was anxious to have the Committee on 
 Reconstruction and Supplies know that these remarks and 
 suggestions were purely of a sympathetic and co-opera- 
 tive nature ; that they were not presuming to tell us what 
 we should do, and that it was, of course, our privilege to 
 determine just how far we should go. 
 
 MEETING. 
 OCTOBER 20, 2:15 P. M. 
 
 BELGIUM. 
 
 The Belgian Committee, represented by M. Canon Le- 
 grand, M. Neve, M. Van den Ven, were received by the 
 Reconstruction Supplies Committee. 
 
 The following members being present: 
 
 BABB, MAX W. 
 BURTON, J. H. 
 BUSH, A. R. 
 HITCHCOCK, C. U. 
 FILENE, ED. A. 
 CORNELL, C. L. 
 DOAN, J. B. 
 FLETCHER, ANDREW. 
 GOODMAN, CHARLES A. 
 RANNEY, GEORGE A. 
 SALMON, W. W. 
 STEWART, HAMILTON. 
 
 The Chairman, Mr. Rice, of the General Electric Com- 
 
412 THE INTERNATIONAL TRADE CONFERENCE 
 
 pany, requested that the Belgian Commission state its 
 views as to requirements of Belgium for reconstruction 
 supplies. 
 
 A general discussion on the part of members of both 
 committees followed, of which the following is a general 
 outline : 
 
 M. Canon-Legrand advised that steel works, metal 
 works, and similar industries, were in need of general 
 equipment. There is some interest at the present time 
 in fuel oil. 
 
 They have used large quantities of coking coal, which 
 was originally secured from Germany, in addition to their 
 own output. 
 
 Mr. Andrew Fletcher, President, The American Loco- 
 motive Company, advised at this point, that contracts 
 had been let at the present time for some twenty or more 
 oil tankers for Belgian trade. 
 
 M. Canon-Legrand stated that iron was not required. 
 Other metals tin, lead, etc. while of interest, were not 
 necessary. 
 
 M. Canon-Legrand advised that machine tools were of 
 vital interest to Belgium at the present time. He stated, 
 that his factories had been completely stripped of such 
 equipment, and had been used by the Germans for their 
 own purposes, prior to the time they evacuated, at which 
 time, as above, they took with them all equipment. He 
 further stated, that some two thousand machines of the 
 above character had been ordered from the United States 
 Government ; that selection of the various types had been 
 completed, and that he had had a 'phone message from 
 Washington, to the effect, that they were ready to ship 
 as soon as transportation could be had. 
 
 M. Canon-Legrand dealt especially on the higher prices 
 of machinery as quoted by the United States and Eng- 
 land, which he regretted very much had necessitated pur- 
 chasing from Germany at much lower prices. He stated, 
 that the Germans were soliciting their business every 
 day. He said that the Germans, having made a complete 
 chart of all plants in Belgium, had a thorough knowledge 
 of what machines were there, and, in the course of the 
 war, used them as required, and this information, of 
 course, is now of considerable value to them. As above, 
 however, the prices in England and the United States, 
 were two or three times higher. The Germans are de- 
 livering the above tools new, and at the same price as 
 quoted before the war. Exchange which, together with 
 
THE INTERNATIONAL TRADE CONFERENCE 413 
 
 excessive freight rates, makes the prospect of business 
 with us, as much as he regrets it, exceedingly doubtful. 
 
 M. Canon-Legrand expressed the gratitude of Belgium 
 for what has been done by the United States, especially 
 in connection with the food supplies we had afforded them 
 during the four years of the war. 
 
 Mr. Fletcher, of the American Locomotive Works, ex- 
 plained to M. Neve, who had remarked that locomotives 
 and railway equipment were badly needed, his recent pro- 
 posal to Belgian Government, for 400 locomotives. This 
 contract, Mr. Fletcher stated, would probably be com- 
 pleted in the immediate future. He also advised, that he 
 and other American manufacturers were in a position to 
 supply such locomotives as were required on very short 
 delivery. It was stated, that recent advice tended to 
 prove that the Belgian Government would pay cash, 
 which would indicate that arrangements from other 
 sources had been completed. 
 
 M. Canon-Legrand stated that the French locomotives 
 they had secured, were both passenger and freight. There 
 is a greater demand for freight locomotives than the 
 passenger type. 
 
 Timber, wood, lumber and similar material, under this 
 heading, were badly needed. Their supply previously and 
 at present has been coming from Sweden. 
 
 Mr. Burton of J. H. Burton & Company, New York, 
 afforded information relative to railroad ties as needed 
 by Belgium. These pine ties cost $2.00 each in America, 
 and with a freight rate of approximately $2.00 per tie, 
 made the price 25% higher than a first class oak tie could 
 be had in Belgium. These oak ties are secured from the 
 Belgian and French Ardennes. 
 
 Belting is not required at present. This industry has 
 been rapidly renewed, and they now have a sufficiency. 
 However, leather in general is required. 
 
 In answer to a direct question as to what were the 
 essential needs at present, M. Canon-Legrand advised 
 that coking coal, oil and locomotives were primary. 
 
 Glass factories are getting under way, and they are, 
 in fact, in position to export certain products under this 
 heading. 
 
 Prior to the war, Belgium had some twenty-five hun- 
 dred coke ovens in actual operation. At present, less than 
 seven hundred are operating. 
 
 The railway locomotives secured from Germany were 
 not in good condition. They also received a great many 
 
414 THE INTERNATIONAL TRADE CONFERENCE 
 
 railroad cars from Germany, so that their equipment, in 
 that respect, is not short. In their own manufacturing 
 they have always produced more cars than locomotives. 
 
 M. Canon-Legrand is a manufacturer of steel and wood 
 cars. 
 
 Steel cables for mines and similar purposes are re- 
 quired. Belgium secured twenty-nine thousand (29,000) 
 kilometers of salvaged wire from England, which had 
 been captured from the Germans. This wire was sup- 
 posed to have been copper. As a matter of fact, it was 
 a substitute; it was steel wire coated with copper. 
 
 The Belgian railroads are all owned by the Government. 
 
 Paper cutters and some printing machinery are needed, 
 according to Mr. Neve. Copper fire boxes for locomotives 
 and copper for other purposes are required. At this 
 point, it was suggested to Mr. Fletcher, that the locomo- 
 tives he is supplying be equipped with some of these 
 boxes as spare parts. 
 
 Asbestos products are not particularly needed. They 
 are using a substitute for asbestos, which seems to afford 
 satisfaction at probably less cost. 
 
 Concrete mixers are required in connection with re- 
 construction work. 
 
 At this point, Mr. Stewart, Vice-President of the Har- 
 bison Walker Refractories Co., asked if any arrangement 
 had been made in Belgium for the receipt of such infor- 
 mation as this convention might develop along the line 
 of "Sources of Supplies." It was stated, that the present 
 Committee on Permanent Organization, is effecting a plan 
 to handle this subject. 
 
 M. Canon-Legrand asked Mr. Fletcher, of the Ameri- 
 can Locomotive Works, for books of instruction on the 
 construction of locomotives, etc. Mr. Fletcher has ar- 
 ranged to supply these. Requests were also made for data 
 on the subject of progress in aviation. It was suggested, 
 that the War Department be put in touch with this in- 
 quiry, and that what information can be had be supplied 
 to Mr. Canon-Legrand, whose card is attached herewith. 
 
 M. Neve advised that great quantities of castings for 
 rolling mill machinery were used, and that previously 
 much of it may be shipped as ballast, and that perhaps 
 connections of this character might be made here. A 
 member of the Committee, suggested the United En- 
 gineering & Foundry Company, of Pittsburgh, as a source 
 of information relative to the subject. 
 
 In answer to inquiries, M. Canon-Legrand advised that 
 
THE INTERNATIONAL TRADE CONFERENCE 415 
 
 labor usually worked eight hours, and that very little 
 overtime was ever employed. He stated, that there had 
 been no lack in efficiency since the war, but that the labor 
 question was largely dictated by the syndicate, which 
 compares with our American Federation of Labor here. 
 A fifty-hour week prevails. Wages have been increased 
 four times as much as before the war, and that prior to 
 the war a ten-hour day was the rule. 
 
 M. Canon-Legrand stated that five years ago the Bel- 
 gian State Railway employes were equally as efficient at 
 three (3) francs per day, as they are now at twelve (12) 
 francs. M. Canon-Legrand's employees in his several 
 plants five years ago, were receiving forty (40) centimes 
 per hour; today, they are receiving fl.30 per hour. 
 
 M. Neve advised that Belgium is interested in labor- 
 saving machinery, particularly now that the old tendency 
 to use men for ordinary purposes for instance, wheel- 
 ing ashes from ash pits and other forms of common labor, 
 at a low wage is out of the question. The low price 
 man, in other words, cannot be found. 
 
 There is some piece-work, but the syndicate endeavors 
 to direct that pay also be governed on the basis of the 
 age of the employee. 
 
 REPORT OF COMMITTEE. 
 
 The Committee has tried to stay on its own side of 
 the road, and to avoid intrusion upon the prerogatives 
 of other committees assigned to the treatment of other 
 subjects; but we have not found it altogether easy to 
 carry out that good intention. The subject of recon- 
 struction supplies is such an exceedingly broad one, and 
 is so intimately related to other subjects not included in 
 our function that with the best of intentions on our part, 
 we frequently found ourselves wandering considerably 
 from our assignment, and talking about shipping or steel 
 or oil, or finance and credit, perhaps particularly finance 
 and credit, but, however, we believe with great benefit 
 to our own purposes and, we hope, without danger to the 
 purposes of the several committees whose duty it was 
 to handle these subjects. 
 
 The spirit of our sessions has been splendid. At no 
 time, and at no point in our discussions has there ap- 
 peared anything which might suggest the idea of a con- 
 test. We got together in a spirit which, indeed, if I 
 might depart just a little bit from my report and gener- 
 
416 THE INTERNATIONAL TRADE CONFERENCE 
 
 alize, seems to express a great deal of the best part of 
 the spirit that was developed during the war, that spirit 
 that in war-time brought the military leaders of the dif- 
 ferent nations together in perfect unity for the purpose 
 of developing campaigns of war in a common cause, and 
 which now brings other and equally great leaders of these 
 nations together again in a spirit of perfect unity, and 
 again to prepare a campaign in the interest of a com- 
 mon cause, not so war-like as the other, but, 1 am quite 
 sure, not less serious. 
 
 Our methods of operation were simple and rather 
 direct. In a very friendly sense of the term, we were 
 largely from the great state of Missouri, and I am glad 
 to say that our guests seemed to get the idea, and 
 "showed us." Their equipment of facts and figures was 
 splendid, and they not only seemed to know what we 
 were driving at, and what we wished to get, but they 
 seemed to be able to meet us all, even the most technical 
 of our members, quite upon our own ground, and then 
 some. 
 
 A more detailed report upon the development of our 
 committee has been filed with the headquarters of the 
 Chamber and will, in time, I assume, be ready for more 
 general distribution. In our operations, we tried to find 
 out these things, first, what are the reconstruction sup- 
 ply needs of these countries, what portion of these needs 
 or what things required did they expect us to provide, 
 and in what quantities, and at what rate of deliveries. 
 Then, we reversed the operation and tried to find out what 
 they were able to produce within a reasonable time which 
 they could sell to us, with a natural desirable effect upon 
 the exchange difficulty, of which everybody seems to be 
 so keenly conscious, and which has been referred to con- 
 stantly in the deliberations of our committee. Then, 
 naturally, we discussed with them their most urgent re- 
 construction problems and tried to find out what it was 
 that we could do in the way of providing advice or 
 assistance or expert aid, which might simplify the solu- 
 tion of these problems, and in this particular I am glad 
 to be able to report that very substantial progress seems 
 to have been made. 
 
 Takng up the countries in the order in which we met 
 these committees, and confining the report to the more 
 important needs which were expressed, we found about 
 as follows: 
 
THE INTERNATIONAL TRADE CONFERENCE 417 
 BELGIUM. 
 
 Belgium needs from us, and principally, first of all, 
 money; then cars, tools, heavy machinery, coal, coke, oil, 
 mining machinery, railroad engines and lumber, and a 
 number of other things, of course, but these are the out- 
 standing needs which came to us as the result of our total 
 deliberations with them. Another point which impressed 
 us very much, and which seemed to impress them very 
 much was this. They state that because of the unfavor- 
 able condition of exchange as between them and us, and 
 because of our comparatively high prices, and because, 
 also of the slowness with which our deliveries can be made 
 they find that in all probability they will be obliged to 
 buy in Germany a great many goods which they would 
 much prefer to buy from us. They told us and have con- 
 vinced us conclusively, that the work of reconstruction 
 in Belgium is going on rapidly, and that even now very 
 substantial progress has been made. Two railroad maps 
 in particular, which they showed us, were most im- 
 pressive, one indicating the condition of destruction as 
 referred to railroads existing in Belgium at the time of 
 the signing of the armistice. The destroyed railroads 
 were marked in red, and it was a pretty red map. The 
 second, indicated the present condition, and it looked to 
 use like nothing but a steady diet of miracles operating 
 since the signing of the armistice, and now could have 
 eliminated so much of the red from that particular map. 
 They told us that the labor conditions in Belgium, while 
 not entirely satisfactory, are improving at a very grat- 
 ifying rate, that the laborers had gone back to their 
 work, or are going back in a very gratifying number. Of 
 course, they have labor troubles, as we have. Over there, 
 they call it labor syndicates. Here, we call it by another 
 name, but it amounts to the same thing. They told us 
 that their day of labor, because of the pressure applied 
 by these syndicates has been reduced to eight hours, but 
 they told us also, which impressed us as very important, 
 that the unit efficiency of labor is quite up to the pre- 
 war standard. 
 
 ITALY. 
 
 Italy's reconstruction problem is principally, and nat- 
 urally, an agricultural one. This is due to the fact that 
 something like 90 per cent, of the population is engaged 
 
418 THE INTERNATIONAL TRADE CONFERENCE 
 
 in agriculture. They need agricultural machinery in con- 
 siderable quantities, also machinery for draining and 
 trench or ditch digging, which will enable them to operate 
 with speed and efficiency. On this point, we were able, 
 we believe, to give them some valuable suggestions and 
 to direct them to a number of concerns in this country 
 which have made extraordinary progress in the develop- 
 ment of machinery of this kind. 
 
 Italy also needs assistance on a rather extensive scale 
 in rebuilding of their fisheries industry, great numbers 
 of their fishing boats haying been destroyed, which has 
 been the fate also of fishing tackle, nets, etc. The prob- 
 lem of housing their population was described as very 
 great, and they stress the importance of the employment 
 of American expedients, and incidentally, assistance from 
 us in the use of machinery which can be utilized in quick 
 the erection of standard houses. They referred particular- 
 ly to the employment of what I believe we know as a 
 cement cone. It is a little bit vague in my mind just what 
 that is, but they seem to know all about, and here again 
 we were able to direct them to original sources of infor- 
 mation upon these matters. 
 
 They need also oil, coal and a wide variety of lines of 
 supplies, and the United States should be able to play an 
 important part. They referred also to their needs in the 
 matter of improvement of harbors. 
 
 In general, their needs for our goods are very consid- 
 erable,, and not the least of them is their need of money. 
 
 ENGLAND. 
 
 When we came to England we found that in the matter 
 of reconstruction supplies they have no problem which 
 they are not quite able to solve for themselves. They 
 stated very frankly that they came requesting no assist- 
 ance, but they certainly came in a thorough spirit of 
 helpfulness. 
 
 Their discussions with us upon labor conditions in 
 England and more generally upon those existing on the 
 European Continent were most illuminating. They left 
 us with a rather definite expression to the effect that 
 while the labor situation in Europe generally is quite 
 serious, it can be handled; the problem can be solved. 
 They have radicals there, as we have here, but, as one of 
 the members of the British Committee stated, it is almost 
 beyond doubt, and they referred particularly to England 
 
THE INTERNATIONAL TRADE CONFERENCE 419 
 
 and also included some of the continental countries, that 
 these radical tendencies will in time yield to the recog- 
 nized power of law and order. I am quoting directly 
 from what they told me. 
 
 Reference was also made, and quite naturally made by 
 them, to the general problem of financing the require- 
 ments of the more seriously war injured of the European 
 countries, and also to the exceedingly important part 
 which the United States also naturally must play in the 
 solution of this problem. They called our attention to 
 the fact that up to the time we entered the war they had 
 borne the financial burden and that now their greatest 
 interest naturally concerned putting themselves in such 
 a condition as to be able to meet their own obligations 
 rather than, without very good cause, adding to that list 
 of obligations. 
 
 FRANCE. 
 
 The French Committee on Reconstruction Supplies sub- 
 mitted a particularly complete report upon their situa- 
 tion, which report is in the possession of the Chamber 
 and I am sure that you will find it interesting and of 
 great assistance in this general reconstruction problem. 
 This report presented an interesting and surprising state- 
 ment of the reconstruction work which already has taken 
 place in France, and tended to show that unemployment 
 is diminishing rapidly, that agricultural reconstruction 
 has progressed substantially and that the people of the 
 country are going back to work in a gratifying manner, 
 that transportation facilities, such as the railroads and 
 canals, destroyed during the war are rapidly approach- 
 ing their pre-war condition; that immense new public 
 works, transportation, drainage, harbors, etc., are being 
 projected and, in general, the French situation as re- 
 gards industry and commerce is far and away in advance 
 of what is rather generally believed in this country to be 
 the case, and they had facts and figures and statistics and 
 that sort of thing upon which to base their statements. 
 
 The French particularly emphasized the importance of 
 their proceeding along reconstruction lines which will 
 recognize sound economic principles. They, among other 
 things, and quite naturally,, propose to buy where the 
 conditions for buying are most favorable, and to sell 
 where they can do so with the greatest benefit to France. 
 Their discussion upon these points was most interesting, 
 
420 THE INTERNATIONAL TRADE CONFERENCE 
 
 and they treat this subject in more full detail in the more 
 complete report in the possession of the Chamber. They 
 indicated an astonishing I do not know whether it 
 should be astonishing, but we have heard so much on the 
 other side that it did surprise us a little they had at 
 least a surprising disposition to solve their own problems. 
 They spoke of the immense supplies of wheat and other 
 commodities to be found in the French Colonies and 
 which could be transported to France in ships, and they 
 seemed to have made a most thorough study of the situa- 
 tion, and to have some very well worked out theories as 
 to the extent which they can afford under existing con- 
 ditions of exchange, high prices, etc., to purchase their 
 goods from us. 
 
 They need, as do Belgium and Italy, money, lumber, 
 machinery, automatic car couplers and railroad signal 
 systems and other improvements in their transportation 
 situation and other lines rather distinctly American, 
 which may be used in more completely modernizing their 
 transportatnon situation; but at every point they im- 
 pressed upon us the extreme difficulty they would en- 
 counter in buying these things from us. 
 
 We are sorry that we did not have more time to confer 
 with these gentlemen. We feel we made progress. We 
 found our meetings were delightful and we hope the 
 work that was started in our committee will continue in 
 the future. 
 
 E. W. RICE, Chairman. 
 
 COMMITTEES ON SHIPPING. 
 BELGIUM. 
 
 M. DE GROOTE. 
 
 M. CANON-LEGRAND. 
 
 M. NEVE. 
 
 FRANCE. 
 
 M. DE PELLERIN DE LA TOUCHE. 
 
 M. PARMENTIER. 
 
 M. BARON DU MARAIS. 
 
 M. ANDRE HOMBERG. 
 
 M. LOIZEAU. 
 
 M. MAURICE BOYER. 
 
 M. POTIN. 
 
THE INTERNATIONAL TRADE CONFERENCE 421 
 GREAT BRITAIN. 
 
 SIR ARTHUR SHIRLEY BENN. 
 SIR JAMES HOPE SIMPSON. 
 MR. MARSHALL STEVENS. 
 HON. J. G. JENKINS. 
 BAILIE JOHN KING. 
 MR. FRANK MOORE. 
 
 ITALY. 
 
 B. ATTOLICO. 
 
 L. LUIGGI. 
 
 P. G. LAZZERINI. 
 
 F. QUATTRONE. 
 
 A. PALANCA. 
 L. SOLARI. 
 SIG. PFISTER. 
 SIG. DI GIORGIO. 
 A. T. BARBERINI. 
 
 AMERICA, 
 
 P. A. S. FRANKLIN, Chairman; 
 President, Mercantile Marine Co., New York City 
 N. SUMNER MYRICK, Vice-Chairman and Secretary. 
 
 Mills Building, Washington, D. C. 
 
 C. W. STOWELL, Assistant Secretary, 
 
 Chamber of Commerce of the United States, Woolworth Building. 
 
 New York City. 
 ACKERSON, J. L., Vice-President. United States Emergency Fleet 
 
 Corporation, Philadelphia, Pa. 
 
 BURLING, EDWARD B., Union Trust Bldg., Washington, D C. 
 CHUBB, HENDON, Chubb & Son, New York City. 
 DAY, CHARLES A., Day & Zimmerman, Philadelphia, Pa. 
 DEARBORN, G. S., President, American Hawaiian Steamship Co., 
 
 New York City. 
 GORDON, JOHN R., Traffic Manager, Union Sulphur Co., New York 
 
 City. 
 
 GRACE, JOSEPH P., President, W. R. Grace & Co., New York City. 
 HULL, A. H., President, Hull Steamship Co., New York City. 
 KIRLIN, J. PARKER, New York City. 
 
 OGDEN, GEORGE D., Freight Traffic Manager, Pennsylvania Rail- 
 road Co., Philadelphia, Pa. 
 
 PALEN, E. E., Assistant Director of Operations, United States 
 Shipping Board, Norfolk, Va. 
 
422 THE INTERNATIONAL TRADE CONFERENCE 
 
 POWELL, J. W., Vice-President, Bethlehem Shipbuilding Corpora- 
 tion, South Bethlehem, Pa. 
 
 RAYMOND, H. H., President, Clyde Steamship Company, New York 
 City; President, American Steamship Association. 
 
 TAYLOR, H. BIRCHARD, Vice-President, William Cramp & Sons 
 Ship and Engine Building Company, Philadelphia, Pa. 
 
 AMERICAN. 
 
 The first meeting of the Committee on Shipping was 
 called to order by Chairman P. A. S. Franklin at 8.30 
 o'clock Sunday evening, October 19, in the Submarine 
 Grill. 
 
 The following members of the Committee were present : 
 
 P. A. S. FRANKLIN, Chairman. 
 
 EDWARD B. BURLING. 
 
 CHAS. A. DAY. 
 
 G. S. DEARBORN. 
 
 JOSEPH P. GRACE. 
 
 J. PARKER KIR^N. 
 
 GEO. D. OGDEN. 
 
 E. E. PALEN. 
 
 J. W. POWELL. 
 
 H. H. RAYMOND. 
 
 H. BIRCHARD TAYLOR. 
 
 N. SUMNER MYRICK, Vice-Chairman and Secretary. 
 
 C. A. STOWELL, Assistant Secretary. 
 
 Mr. H. Y. Saint of the Coal Bureau of the Shipping 
 Board, Mr. J. D. A. Morrow Vice-Chairman of the Coal 
 Committee of the Conference, and Mr. H. Lane of the 
 Information Bureau of the United States Shipping Board, 
 were also present. 
 
 This meeting was attended, of course,, by no represen- 
 tatives of the foreign missions, and was intended for the 
 discussion of the methods by which the conferences with 
 the foreign delegations should be taken up, and general 
 talk concerning the needs of each, and particularly those 
 of Italy, because the first scheduled meeting with a for- 
 eign delegation was with Italy on Monday afternoon. 
 . Mr. H. Y. Saint of the U. S. Shipping Board was pres- 
 ent and gave particularly valuable information on the 
 Italian situation with reference to available tonnage of 
 
THE INTERNATIONAL TRADE CONFERENCE 423 
 
 American ships, inadequate terminal facilities in At- 
 lantic ports, and the impossibility of return cargoes. In- 
 teresting information was also given by Mr. Gordon of 
 the Union Sulphur Co., concerning English domination 
 of the Italian coal trade, the handicap of American coal 
 exporters before the war because of the shorter haul 
 from England, and the added advantage of the English 
 in securing return cargoes of Spanish iron ore. 
 
 In the general discussion that followed it was brought 
 out that the Mediterranean coal trade in the future might 
 be considered as a debatable proposition, but a number of 
 the committee present believed America had a fighting 
 chance. This lead to a discussion of the present coal pools 
 and the evils existing under this system and to a discus- 
 sion of the larger independent operators and exporters of 
 coal who practically maintained their own pools. Because 
 of the importance of this later discussion,, Mr. J. D. A. 
 Morrow, Vice-Chairman of the Committee on Coal was 
 called into conference and made a very valuable contri- 
 bution. 
 
 The meeting adjourned at 10.30. 
 
 ITALIAN. 
 
 The second scheduled meeting of the Shipping Com- 
 mittee took place on Monday afternoon, October 20, at 
 2.15, in the Submarine Grill. The following were 
 present : 
 
 Representing the Italian Shipping Committee: 
 
 PROF. BERNARDO ATTOLICO. 
 
 DR. LUIGI LUIGGI. 
 
 COM. PIETRO GIOVANNI LAZZERINI. 
 
 COM. ENG. FERDINANDO QUARTIERI. 
 
 MR. A. PALANCA. 
 
 M. L. SOLARI. 
 
 A. C. BONASCHI. 
 
424 THE INTERNATIONAL TRADE CONFERENCE 
 
 Italians of New York or Italy attending the Confer- 
 ence by invitation of the Italian Mission : 
 
 MR. G. VITELLI. 
 
 MR. L. J. SCARAMELLI. 
 
 MR. G. B. CECCATO. 
 MR. V. MENEGHELLI. 
 MR. O. TUCCIMEI. 
 MR. C. H. HAUSS. 
 
 The following members of the Shipping Committee of 
 the Chamber of Commerce of the United States : 
 
 MR. P. A. S. FRANKLIN, Chairman. 
 
 MR. N. SUMNER MYRICK, Vice-Chairman and Secretary. 
 
 MR. EDWARD B. BURLING. 
 
 MR. HENDON CHUBB. 
 
 MR. CHAS. A. DAY. 
 
 MR. G. S. DEARBORN. 
 
 MR. JOHN R. GORDON. 
 
 MR. JOSEPH P. GRACE. 
 
 MR. EDWARD N. HURLEY. 
 
 MR. J. PARKER KIRLIN. 
 
 MR. GEO. D. OGDEN. 
 
 MR. E. E. PALEN. 
 
 MR. J. W. POWELL. 
 
 MR. H. H. RAYMOND. 
 
 MR. H. BIRCHARD TAYLOR. 
 
 MR. C. A. STOWELL, Assistant Secretary. 
 
 MR. W. F. GIBBS, Secretary to Mr. Franklin. 
 
 And the following men of the Coal Bureau of the Ship- 
 ping Board : 
 
 MR. H. LAUE. 
 MR. H. Y. SAINT. 
 MR. W. F. TAYLOR. 
 
 Representing the Trade Commission of the Depart- 
 ment of Commerce: 
 
 MR. JOSEPH CHIESA. 
 
 MR. WESLEY FROST, of the Department of State. 
 
 MR. PAUL CLAGSTONE, of the Chamber of Commerce of the 
 
 United States, and representative of the "Nation's 
 
 Business." 
 
THE INTERNATIONAL TRADE CONFERENCE 425 
 
 Chairman P. A. S. Franklin called the meeting to order 
 and the members of the Italian Mission promptly began 
 the statement of their needs. 
 
 Professor Luiggi dwelt briefly on the state of the Ital- 
 ian shipping before and during the war and following 
 the signing of the Armistice. He made an interesting 
 point that apparently the vessels which were lost through 
 submarine warfare were those of the largest cargo 
 capacity possessed by Italy, and that at the close 
 of the war Italy had in her possession a great majority 
 of small cargo carriers which could not be operated at a 
 profit in overseas trade, particularly in the coal trade. It 
 was stated that the Italians possessed abundance of 
 skilled workmen and were able to build ships of the very 
 highest type, but the lack of coal was operating seriously 
 against railroad transportation, fuel with which to run 
 mills and blast furnaces, and to work the iron mines. In 
 fact, every phase of industrial life is crippled. 
 
 In seeking the solution of these difficulties, Professor 
 Attolico suggested four remedies: 
 
 1. The possibility of buying ships in America, which 
 depends very largely on price. 
 
 2. The possibility of America financing plates and 
 other material for the shipyards in Italy. 
 
 3. The possibility of combining American capital with 
 Italian capital to institute steamship lines. 
 
 4. Reduction of freight rates. 
 
 It was developed later in the discussion following the 
 departure of the Italian delegation that Italy's tonnage 
 is about 2,500,000 gross tons,, including home chartered 
 tonnage, and also 500,000 tons to be obtained by release 
 from Great Britain, about one-half of which has been 
 delivered, or is being delivered. It is expected that the 
 total delivery by Great Britain will be completed by the 
 spring of 1920. It must be borne in mind, however, that 
 a large number of these vessels are small cargo carriers 
 and are not adapted to profitable trade with the United 
 States. They may, however, be used to advantage in 
 
426 THE INTERNATIONAL TRADE CONFERENCE 
 
 obtaining grain from Southern Russia and for the pos- 
 sible development of coal routes via the Suez Canal when 
 Italy's credit will enable her to purchase from India. 
 
 It was further brought out that the existing Italian 
 laws could give little encouragement to Amercian in- 
 vestment interests in the matter of organizing privately 
 owned steamship lines to Italy. Fifty-one per cent of the 
 capital stock would of necessity be under Italian control, 
 and this, of course, would not meet with favor with 
 American capital. 
 
 It was shown that prior to the war Italy's coal supply 
 was mostly obtained from Great Britain, but the present 
 conditions in England, due to labor troubles, are such that 
 England cannot supply the demand and Italy must turn 
 to the United States for coal. The Italians made it per- 
 fectly clear in this respect that they were seeking to 
 establish a permanent trade in coal, mentioning the fact 
 that the Pocahontas coal was best known and was readily 
 accepted. In the case of the railroads, however, certain 
 types of grates and fire-boxes were not adapted for any 
 but the English coal. 
 
 In previous discussion on Sunday night, it was shown 
 that America could not supply but a fractional part of the 
 coal Italy needs, due to shortage in shipping, length of 
 turn around and high cost of freight. It has been the 
 custom of the Shipping Board to send back most of their 
 boats in ballast because of the absolute inability to se- 
 cure return cargoes and the delay in loading a boat if 
 cargo were obtainable would cost more in dollars and 
 cents than the profit of the return cargo. 
 
 During the discussion Italy pointed out the fact that 
 pier and terminal facilities had been largely increased 
 and that delays were less during the last three months 
 than before, and that it was now possible for the coun- 
 try to discharge at least one thousand tons a day. It was 
 suggested by Mr. Gordon that if increased ability in dis- 
 charging coal cargoes could be had by Italy, that there 
 would be a possibility of lowering freight rates. Mr. 
 Taylor of the Shipping Board, in rebuttal,, stated that it 
 
THE INTERNATIONAL TRADE CONFERENCE 427 
 
 was a possibility that the rates had already been lowered 
 to a very low figure possibly in a somewhat altruistic 
 spirit. 
 
 An interesting point to the American shippers was 
 cleared up by H. B. Taylor of the United States Shipping 
 Board, who told the Italian delegation he had been in- 
 formed that demurrage could not be protected at Italian 
 ports by a lien on the cargo of ships held up there. This 
 statement brought protest from the Italians who stated 
 they were anxious to correct this impression in the minds 
 of the American shipper. Mr. Quattrone, of the Italian 
 Mission, assured the American Committee that Mr. Tay- 
 lor had been misinformed, and that he had just learned 
 by cable that demurrage charges could be protected by 
 lien on the cargo. Mr. Franklin, the Chairman, noted 
 that what shipping required was dispatch and not de- 
 murrage. 
 
 Italy complained of the fact that the rates to South 
 America from the Atlantic Coast were very much cheaper 
 than those to Italy, quoting the figures of $14 to the 
 Platte, as against $25.50 to Italy. Professor Attolico 
 stated that he realized that one reason why the freight 
 rate to South America was cheaper was doubtless the 
 great interest the United States had in developing trade 
 with South America. It was brought out in the evening 
 discussion, however,, that the cargo from the United 
 States was one consisting of half coal and half general 
 merchandise sent to the River Platte or some part of 
 South America, and that the rate was cheaper on account 
 of the possibilities of return cargo. 
 
 It is the opinion of the Shipping Committee that the 
 Mediterranean coal trade is largely a debatable proposi- 
 tion. It may be possible to develop a profitable trade 
 there, provided that the coal pools are organized to the 
 extent of providing coal of higher grade and uniform 
 quality. The present railroad pools with an indiscrimi- 
 nate dumping of mixed grades are rapidly giving Amer- 
 ican coal a black eye in the American market. It has 
 been shown, as well, that the great independent operators 
 
428 THE INTERNATIONAL TRADE CONFERENCE 
 
 (Berwind- White, Pocahontas Fuel, etc.) have, by care- 
 ful grading, chemical analysis and special service to cus- 
 tomers, developed a trade that is absolutely reliable in 
 Europe and have made themselves a name for their 
 product. 
 
 An interesting feature of the afternoon discussion was 
 the disclosure that before the war Italy had begun to 
 make a steady purchase of American coal and had ac- 
 cumulated a reserve. When the supply from England 
 was cut off, it was this accumulation of American coal 
 that enabled Italy to carry on and to keep her factories 
 running during a certain period of the war, at least. 
 
 The meeting adjourned at 4.35, with the understand- 
 ing that no decision would be made by the Committee 
 until after the close of the Conference. It was voted that 
 the appointment of sub-committee on coal for Italy be 
 left to the discretion of the Chairman, Mr. P. A. S. 
 Franklin. 
 
 Joint Meeting. 
 
 In order to make the most of the time of Mr. H. B. 
 Taylor, of the United States Shipping Board,, it was de- 
 cided to hold an informal dinner on Monday evening, Oc- 
 tober 20, at 6 o'clock, at which time at least two repre- 
 sentatives from each of the four visiting delegations 
 could question Mr. Taylor and draw from him certain 
 information not so readily available in a more formal 
 session. There were present from the Shipping Com- 
 mittee Messrs. Franklin, Myrick, Raymond, Dearborn, 
 and Stowell; from the British Commission, Sir Arthur 
 Shirley Benn, and Mr. Marshall Stevens; from the Ital- 
 ian Commission, Professor Attolico, and Messrs. L. 
 Luiggi and P. G. Lazzerini; from the Belgian Commis- 
 sion, M. de Groote and M. Albert Neve ; from the French 
 Commission M. Pellerin de Latouche, M. Freminville, M. 
 Parmentier,, and M. Harinkouck. 
 
 Following the dinner a very informal and extremely 
 interesting discussion took place, centered about Mr. 
 
THE INTERNATIONAL TRADE CONFERENCE 429 
 
 Taylor, who was able to give a great deal of wanted in- 
 formation on the subject of available tonnage, freight 
 rates, the triangular route, and the general policies of the 
 Shipping Board. This meeting adjourned at 8.15 to per- 
 mit the members of the foreign delegations to attend 
 other evening sessions. 
 
 BELGIUM. 
 
 The Committee from the Belgian delegation met with 
 the Shipping Committee at 10 A. M. on Tuesday, October 
 21. in the Submarine Grill. There were present the full 
 membership of the Committee in Atlantic City at the 
 present time (Messrs. Ackerson and Bull being absent) ; 
 Honorary Vice-President A. B. Farquhar, Mr. Taylor of 
 the Shipping Board, Mr. Frost of the State Department, 
 Mr. Paul Clagstone of "The Nation's Business," Messrs. 
 L. S. Gillette and M. J. Sanders, Directors of the Cham- 
 ber of Commerce, and the following members of the Bel- 
 gian Mission: M. de Groote, M. Canon-LeGrand, and 
 M. Neve. 
 
 The requests of the Belgians were very brief and per- 
 tained mostly to the matter of lower rates on foodstuffs. 
 Belgium does not lack coal, with the possible exception 
 of gas and cooking coals, formerly obtained from north- 
 ern France and from Germany. Coal production in Bel- 
 gium at the present time is about 86 per cent of the pre- 
 war figure, and Belgium is even now selling coal to 
 Holland, Italy and France, the last named in small quan- 
 tities. 
 
 M. DeGroote was the principal speaker and showed 
 plainly the fact that from the standpoint of Belgium the 
 reduction of freight rates would have to be absolutely 
 necessary if wheat is to be obtained in sufficient quan- 
 tities to make bread at a fair price. The wheat supply 
 formerly available from Russia, is not obtainable at this 
 time. Furthermore, should conditions better in that coun- 
 try, it would not be possible to move any great amount 
 of wheat until the middle of April, 1920, due to the freez- 
 ing of waterway communications. 
 
430 THE INTERNATIONAL TRADE CONFERENCE 
 
 The Belgian tonnage is not under any Government 
 control. It appears, however, that it operates under 
 agreement with the Government, by which commodities 
 are brought to Belgium at a lower price than the open 
 freight rates. The Belgian ships are free to operate in 
 any part of the world whatever,, but they are practically 
 all engaged in bringing commodities of the greatest need 
 to Belgium. Italy's coal is practically all moved out of 
 Belgium by Italian ships, and one line running to Austra- 
 lia bunkers in Antwerp, and takes, as well, a general 
 cargo. 
 
 Inquiry made concerning the potash trade of Alsace- 
 Lorraine as to the advisability of moving it through Ant- 
 werp, rather than Rotterdam, developed the fact that 
 in the opinion of the Belgian delegation, it would not be 
 possible to obtain Government pressure to this end. This 
 must be accomplished through the enterprises of private 
 firms. The vast amount of kanit formerly routed through 
 Germany and the Dutch ports could well be transported 
 through Antwerp, and the suggestion was made by Mr. 
 Taylor of the United States Shipping Board, that the 
 possibility of obtaining a return cargo of potash, greatly 
 in demand in the United States, might operate to reduce 
 shipping rates on eastern cargoes from the United States 
 of foodstuffs and commodities greatly in demand in 
 Belgium, on which the Belgians believe the freight rates 
 are at present excessive. 
 
 The Belgians particularly emphasized their belief in 
 the necessity of a free market and unrestricted shipping 
 for the entire world, believing that the steady increase in 
 tonnage,, plus the competitive factor, would tend to re- 
 duce freight rates to a normal level and thereby relieve 
 their greatest need that is, of obtaining sufficient food. 
 
 The meeting adjourned at 12 o'clock. 
 
 GREAT BRITAIN. 
 
 The committee from the British delegation met with 
 the Shipping Committee at 2.15 o'clock on Tuesday after- 
 
THE INTERNATIONAL TRADE CONFERENCE 431 
 
 noon, October 21, in the Submarine Grill. There were 
 present the full membership of the Committee in Atlantic 
 City at the present time (Messrs. Ackerson and Bull 
 being absent) ; Honorary Vice-President A. B. Farquhar, 
 Mr. Taylor of the Shipping Board, Mr. Frost of the State 
 Department, Mr. Chiesa of the Department of Commerce, 
 Mr. Paul Clagstone of 'The Nation's Business," and the 
 following members of the British Commission : Sir 
 Arthur Shirley Benn, Sir James Hope Simpson, Mr. Mar- 
 shall Stevens, Mr. J. J. Brokerick, Civil Attache, British 
 Embassy, and Mr. George Berkes, Secretary. 
 
 Sir Arthur Shirley Benn in presenting the case of the 
 British delegation stated that Britain had not come to ask 
 for anything, but strongly advocated heartiest coopera- 
 tion between American and British mercantile interests, 
 strongly favored the elimination of Government control 
 at the earliest possible moment in order to bring freight 
 rates to normal levels. 
 
 During the war the English mercantile marine suf- 
 fered heavily far more than that of any other nation. 
 Continuous effort had been maintained in shipbuilding, 
 and as was later brought out by Bailie John King, Eng- 
 land, which heretofore purchased to a certain extent cast- 
 ings and other construction parts of ships from Germany 
 and Austria,, had been able to produce everything she 
 needed in her own yards in sufficient quantities, not only 
 for war needs, but for years to come. The sentiment 
 was plainly expressed that should the need arise in Eng- 
 land for any material or equipment which she herself 
 could not supply, the utmost effort would be made to ob- 
 tain these in America. 
 
 It was shown by the remarks of all the speakers that 
 America will have only the fairest kind of competition 
 in the world's markets, and that England's boast is that 
 no discrimination is shown, not only in the case of Amer- 
 ican ships, but in the case of any maritime power. It was 
 plainly shown both by the British and American speakers 
 that the place in the world's merchant marine formerly 
 held by Germany should now be- held by the United 
 
432 THE INTERNATIONAL TRADE CONFERENCE 
 
 States, and that working in the closest harmony with 
 England, as brother Anglo-Saxons, the commerce of the 
 world should be carried on with every vessel working at 
 100 per cent efficiency. 
 
 Mr. Edward N. Hurley, formerly chairman of the 
 United States Shipping Board, in a very happy speech, 
 testified to the hearty cooperation of the British ship- 
 owners and admiralty during the war, and saw nothing 
 ahead but the same spirit in the years of peace. 
 
 By other speakers the hope that Britain and America 
 should sit at the same table and in amity arrange for a 
 full and complete shipping program was plainly stated. 
 
 It was voted that the Chairman appoint at his discre- 
 tion an advisory committee to continue the investigation 
 and discussion begun in these conferences on the subject 
 of coal. To this same committee were referred the reso- 
 lutions of the Mercantile Handling Machinery Associa- 
 tion and the petition submitted on behalf of the Millers 
 National Federation of Chicago by Mr. F. H. Price,, a 
 delegate to the Conference. 
 
 The meeting adjourned at 4 o'clock. 
 
 FRANCE. 
 
 The final session of the Shipping Committee was held 
 on Wednesday, October 23, at 10 A. M., in the Submarine 
 Grill, it having been agreed by the French Commission 
 as well as the Shipping Committee to change from the 
 scheduled afternoon session to the morning in order that 
 certain members of the Committee might be present. 
 
 There were present the following members of the Com- 
 mittee: Mr. Franklin, the Chairman; Mr. Myrick, the 
 Vice-Chairman ; Messrs. Day, Dearborn, Gordon, Hurley, 
 Kirlin, Ogden, Palen, Raymond,, Taylor, and Stowell ; Mr. 
 Taylor of the United States Shipping Board, Mr. Lane 
 of the United States Shipping Board, Mr. Frost of the 
 State Department, Mr. Chiesa of the Department of Com- 
 merce, and Mr. Clagstone of "The Nation's Business," 
 and the following members of the French Mission: M. 
 
THE INTERNATIONAL TRADE CONFERENCE 433 
 
 Tirman, M. Andre Homberg, M. Pellerin de La Touche, 
 M. Waddington, M. Roche, M. Parmentier,, M. de Fremin- 
 ville, and M. Boyer. 
 
 M. Pellerin de La Touche presented the statement of 
 the French, reading it in French ; at the same time each 
 member of the Committee was furnished with a copy of 
 the translation. This statement, which covered eight 
 pages, was a very clearly defined and well presented story 
 of the French shipping situation, emphasizing the pre- 
 war conditions, the great losses sustained by submarine 
 warfare, and the present condition of the merchant fleet. 
 
 France's three requests for consideration by the Com- 
 mittee are here quoted verbatim from the report: 
 
 1. That the German steamers which are still in the 
 hands of the United States Shipping Board and which 
 have been used to bring back to your shores your gallant 
 soldiers, be allotted to France, England receiving as com- 
 pensation the big steamers which are now being com- 
 pleted in the German shipyards and amounting to 300,- 
 000 (?) tons. 
 
 2. That the settlement for our ships requisitioned in 
 July,, 1917, in your shipyards be made shortly, either by 
 giving back these ships or similar ones, taking into con- 
 sideration in a liberal manner the depreciation of the 
 first named and the decrease we can figure in the future 
 of the value of the latter. 
 
 3. That liberal terms for payment be made to those of 
 our shipowners who will negotiate in the United States 
 for the purchase of ships built or to be built. 
 
 The statement concluded with an appeal to the justice 
 and fair play of America in the matter of assisting 
 France to rehabilitate her merchant marine, and put it 
 on the same footing commercially as before the war. 
 
 An interesting and lively discussion followed in which 
 a number of important facts were developed. Mr. Hur- 
 ley and Mr. Gordon, in connection with their work in 
 France with the Inter-Allied Maritime Transport Coun- 
 cil, referred to the agreement, to which the French were 
 a party, that the German ships allocated to the United 
 States during the war were to be returned to that Coun- 
 cil and not to the French nation directly. 
 
434 THE INTERNATIONAL TRADE CONFERENCE 
 
 England has agreed to build for France 500,000 tons 
 of merchant ships, of which 170,000 tons have been deliv- 
 ered. These vessels range in size from 3,500 tons up to 
 10,000 tons. M. de Latouche spoke of an advantageous 
 contract that had been arranged between the Compagnie 
 Generale Transatlantique and the City of Paris whereby 
 a number of smaller ships, unsuited for general overseas 
 cargo work,, had been assigned to the city of Paris coal 
 trade on a five-year contract basis, and could therefore 
 be considered as a profitable investment. 
 
 Detailed explanation of the tonnage in building and 
 being built for France in American shipyards which the 
 United States was forced to take over for war purposes 
 followed. Eighty per cent of the purchase price of these 
 vessels had been paid by the French shipowners and to 
 date it has been impossible to recover this payment. In 
 rebuttal, Mr. Taylor of the United States Shipping Board, 
 pointed out the fact that settlements had been made with 
 certain of the Allied and neutral countries on this very 
 question; money payments had been made rather than 
 ships returned, although the actual return of the vessels 
 had been asked for in each case. Mr. Taylor pointed out 
 that the actual return of requisitioned vessels to France 
 would, in a measure, tend to stultify the previous action 
 of the United States Shipping Board. 
 
 In opposition to this view the French advanced the ar- 
 gument that since the shipyards of France had been ab- 
 solutely idle during the war period, and the entire indus- 
 trial resources of the war had been centered on the man- 
 ufacture of munitions, a large part of which in the later 
 years of the war were supplied to America, the case of 
 France, in her request for the return of the ships, was an 
 entirely different proposition from that of the other 
 countries. 
 
 Mr. Kirlin then spoke concerning his understanding of 
 this agreement. Negotiations with the French concern- 
 ing the return of 23 or 27 ships and six ships for the 
 French Government railways, have centered entirely 
 upon the return of the ships,, with no alternative propo- 
 
THE INTERNATIONAL TRADE CONFERENCE 435 
 
 sition to settle in cash, nor any offer on the part of the 
 United States Shipping Board to settle in cash. The dif- 
 ficulty in these negotiations has been largely due to the 
 fact that the United States Shipping Board has not yet 
 been able to furnish a statement of the final cost of 
 building these vessels. 
 
 It was shown that the French desire to purchase at 
 least 3,500,000 tons additional shipping to bring the total 
 merchant marine to 6,000,000 tons ; that ships will be pur- 
 chased in America provided that the cost compares favor- 
 ably with that of other shipbuilding nations, and if 
 favorable terms of payment can be arranged. 
 
 On query by Mr. Gordon concerning the 500,000 tons 
 of shipping to be built by Germany for the Allies for the 
 next five years, the French stated that they hoped to pur- 
 chase a part, if not the greater part, for they believed 
 that the ships will be offered at as low a figure as any- 
 where in the world. 
 
 At the conclusion of the presentation of the French 
 case the members of the French Commission withdrew, 
 giving an opportunity for the general discussion of the 
 situation among the members of the Committee. 
 
 At this point the following committees were named : 
 
 Advisory Committee. 
 
 MR. GORDON, Chairman. 
 
 MR. POWELL. 
 
 MR. OGDEN. 
 
 MR. DEARBORN. 
 
 MR. KIRLIN. 
 
 MR. RAYMOND. 
 
 Coal Committee. 
 
 MR. OGDEN. 
 MR. DAY. 
 MR. PALEN. 
 
 It was understood that further meetings of the Ad- 
 visory Committee would be held in order to formulate a 
 report for the use of the Chamber of Commerce. These 
 meetings are subject to the call of the Chairman. 
 
436 THE INTERNATIONAL TRADE CONFERENCE 
 
 Votes of thanks were then passed to the Chairman, the 
 members of the Committee,, the representatives of the 
 United States Shipping Board and the State Department. 
 
 The final conference adjourned at 12.15 P. M. 
 
 REPORT OF COMMITTEE. 
 
 Separated from many matters that were suggested for 
 consideration by the visiting delegates, there are a num- 
 ber of outstanding facts to which attention is herein 
 particularly directed. 
 
 1. Belgium desires lower freight rates, and it was the 
 suggestion of the Belgian delegates that if there were a 
 free market for tonnage throughout the world, rates 
 would fall and Belgium would participate in the advan- 
 tage of the decline. 
 
 There is a great question, however, if it is possible to 
 get free tonnage in the manner desired. England is in 
 great need of foodstuffs. Indeed, it has been said that 
 England's condition in this respect in the coming winter 
 will be more severe than it was at any time during the 
 war. Under those circumstances, it is hardly to be ex- 
 pected that British shipping will be left free to seek the 
 most profitable trades, and until that permission is 
 granted, obviously there can be no such thing as free 
 tonnage. 
 
 2. Italy, although she has lost heavily in tonnage dur- 
 ing the war, is in a fair way of recouping these losses 
 through the construction of new tonnage in her own 
 yards, by purchases abroad,, and by the acquisition of 
 Austro-Hungarian tonnage that formerly hailed from 
 Adriatic ports. Italy's great necessity is coal coal with 
 which to re-establish herself industrially; for the pur- 
 poses of transportation; and for the health and comfort 
 of her people. This necessity must be met and it can only 
 be met by America. Previous to the war Italy imported 
 over ten million tons of coal annually from England, and 
 lesser amounts from France, Germany and the United 
 States. But new importations from those countries, 
 other than the United States, have so greatly diminished 
 as necessarily to oblige Italy to rely almost wholly upon 
 the United States. Unless the United States fulfills in 
 this respect Italian expectations, there must necessarily 
 result throughout Italy great distress. The Committee, 
 
THE INTERNATIONAL TRADE CONFERENCE 437 
 
 therefore, believes that it is of the highest importance 
 that there should be a coordination of effort in the United 
 States to come to Italy's rescue. It is with great satis- 
 faction that the Committee recognizes the fact that of all 
 the nations in need of coal Italy is contributing more 
 largely than any other in providing for her own neces- 
 sities. 
 
 3. France is in need of tonnage and of shipbuilding 
 materials. During the war France was unable to make 
 use of her shipyards for the construction of merchant 
 tonnage because the yards had been devoted wholly to 
 war purposes. After the beginning of the war, but be- 
 fore the United States entered the war, this tonnage was 
 all requisitioned. Up to the present moment, no settle- 
 ment has been made for the compensation of the private 
 owners of that requisitioned tonnage. The claims of 
 France alone,, of all the nations similarly situated, have 
 not been settled. The Committee is advised, however, 
 that the whole matter is the subject of present negotia- 
 tion and that a satisfactory adjustment of these claims 
 will soon be reached. 
 
 France would like to purchase from the Shipping 
 Board, or have built in American shipyards, several hun- 
 dred thousand tons of her merchant ships, but even if 
 this desire were promised fulfillment by the Shipping 
 Board, the prices at which American Government ship- 
 ping is now being held precludes any thought of selling 
 American tonnage to France at this time. But these are 
 matters to which the Committee proposes to give con- 
 sideration. 
 
 4. The British delegates alone had no request to make 
 for material support from the United States in the re- 
 establishment of her merchant marine and overseas trade, 
 except the good will of the American people. Honorable 
 competition on the part of the world was heartily in- 
 vited in the belief that there was ample room for both. 
 
 It early appeared to your Committee that an adequate 
 consideration of the problems herein briefly set forth was 
 impossible during the life of this Conference. There are 
 top many interests involved to be reached and brought 
 within a possible field of cooperation to permit of any 
 specific action at this time. In view of this circumstance, 
 therefore, your Committee has appointed two subcommit- 
 tees, one to deal with all of the problems, save that of 
 coal, that have been presented, and another to devote 
 itself exclusively to the coal question, particularly as it 
 
438 THE INTERNATIONAL TRADE CONFERENCE 
 
 affects Italy. This latter subcommittee is to act in co- 
 operation with a subcommittee of the Coal Committee. 
 Already the two committees have had a preliminary 
 meeting, and it may be affirmed with considerable as- 
 surance that if the tentative plan of procedure marked 
 out is carried into effect, it will result not only to the very 
 great benefit of the Italian people, but will contribute to 
 the establishment of a coal trade with the Mediterranean 
 ports that will be of so great advantage to the United 
 States in the years to come as alone to justify, from the 
 viewpoint of an American citizen, calling this Conference. 
 In conclusion, your Committee, with considerable sat- 
 isfaction, calls attention to the fact, that the Committee 
 was made up of sixteen extremely busy men, and that 
 fifteen of them were present at practically every session. 
 
 P. A. S. FRANKLIN, Chairman. 
 
 COMMITTEES ON TEXTILES. 
 BELGIUM. 
 
 M. DE HEMPTINNE. 
 
 M. JANSSEN. 
 
 M. CANON-LEGRAND. 
 
 M. VAN DEN VEN. 
 
 FRANCE. 
 
 M. WADDINGTON. 
 M. GODET. 
 M. VARAIGNE. 
 M. POTIN. 
 M. ROCHE. 
 M. TIRMAN. 
 
 M. DOLLEANS. 
 
 GREAT BRITAIN, 
 
 MR. FRANK MOORE. 
 SIR ARTHUR SHIRLEY BENN. 
 SIR JAMES HOPE SIMPSON. 
 MR. MARSHALL STEVENS. 
 HON. J. G. JENKINS. 
 BAILIE JOHN KING. 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 439 
 
 ITALY. 
 
 G. MYLIUS. 
 G. GRANATA. 
 
 0. ROSSATI. 
 
 1. MARCHISIO. 
 
 P. DE ClCCO. 
 
 G. B. CECCATO. 
 G. P. VILLA. 
 V. MENEGHELLI. 
 
 AMERICA. 
 
 JOHN R. MUNN, Chairman; 
 President, Textile Manufacturers' Alliance Corporation. 
 
 New York City. 
 
 PAUL T. CHERINGTON, Vice-Chairman and Secretary; 
 Secretary-Treasurer, National Association of Wool Manufacturers, 
 
 Boston, Mass. 
 
 VERNON E. BLAGBROUGH, Assistant Secretary, 
 
 Chamber of Commerce of the United States, 
 
 Woolworth Building, New York City. 
 
 ALLEN, ETHAN, New York City. 
 
 BLANCHARD, F. S., Pacific Mills, Boston, Mass. 
 
 BLUMENTHAL, SIDNEY, President, Sidney Blumenthal & C'x. New 
 York City. 
 
 COPELAND, PROF. MELVIN T., Cambridge, Mass. 
 
 DANE, CHESTER L., President, American Woolen Products 1 Com- 
 pany, New York City. 
 
 Foss, GRANVILLE E., Brightwood Manufacturing Co., North An 
 dover, Mass. 
 
 HODGSON, GEO. H., Vice-President, Cleveland Worsted Mills Cleve- 
 land, Ohio. 
 
 MACCOLL, JAMES R., Treasurer, Lorraine Manufacturing Co 
 Pawtucket, R. I. 
 
 MASTERS, FRANCIS R., Lawrence & Co., New York City. 
 
 VICTOR, HENRY M., President, Union National Bank, Charlotte, 
 N. C. 
 
 VILLA, A. P., President, A. P. Villa & Bros., Inc., New York Citv. 
 
 WEBB, CHARLES J., Charles J. Webb & Co., Philadelphia Pa. 
 
440 THE INTERNATIONAL TRADE CONFERENCE 
 COMMITTEE ON TEXTILES. 
 
 AMERICAN. 
 
 Meeting for Organization, 2 P. M., October 20. 
 Present : 
 
 JOHN R. MUNN, Chairman. 
 
 P. T. CHERINGTON, Secretary. 
 
 V. E. BLAGBROUGH, Assistant Secretary. 
 
 F. S. BLANCHARD. 
 
 SIDNEY BLUMENTHAL. 
 
 M. T. COPELAND. 
 
 CHESTER L. DANA. 
 
 GRANVILLE E. Foss. 
 
 F. R. MASTERS. 
 
 V. F. VILLA. 
 
 CHARLES J. WEBB. 
 
 The meeting was called to order by the Chairman,, Mr. 
 Munn, who stated the general results of the preliminary 
 conference with the foreign delegates held in New York 
 last week. The textile industry, Mr. Munn said, is called 
 upon to export a surplus which does not exist. Raw cot- 
 ton, apparently, constitutes the only exception to the 
 statement that among textiles and textiles materials, the 
 United States has little that it can export a this time. 
 
 A general discussion followed, participated in by 
 Messrs. Masters, Munn, Copeland and Foss, which de- 
 veloped approximately the same point with greater or 
 less detail with respect to the foreign countries repre- 
 sented at the Conference. Mr. Foss called particular at- 
 tention to the shortage of yarns in this country, and 
 others mentioned the fact that we were now importing 
 mohair yarns and some others from Europe. 
 
 Mr. Blumenthal made the point that the demoraliza- 
 tion of the European textile industry was due partly to 
 the actual removal and destruction of machines, partly 
 to the lack of repairs, and partly to the deterioration of 
 manpower,, but declared that the best thing to be done 
 
THE INTERNATIONAL TRADE CONFERENCE 441 
 
 was to put the industries of these foreign countries in a 
 position to use their equipment. 
 
 Mr. Webb declared that high-count worsted yarns and 
 tops are now being imported into the United States, and 
 the prices in these foreign countries are cheaper than 
 they are here. 
 
 Mr. Masters said that there probably would be a con- 
 tinual exportation of hosiery and knit goods to France, 
 and also to England, but that the total value probably 
 would not be large in comparison with the total produc- 
 tion in this country. 
 
 After further discussion participated in by practically 
 all of the members of the committee present, it was 
 agreed that any conference with the foreign delegates, or 
 inquiries and discussions, should aim to bring out the 
 actual facts concerning the four principal groups or 
 points, as follows : 
 
 1. The requirement of each of the four foregoing coun- 
 tries in both raw materials and some manufactured 
 products, and wherever such business did exist, in fin- 
 ished products as well. 
 
 2. Pre-war production conditions and tendencies, in- 
 cluding the number of spindles in actual operation, of 
 working hours now prevailing as compared with pre-war 
 times, and the general and social labor conditions. 
 
 3. The amount of exportable surplus in each of the 
 foreign countries and in the United States in the case of 
 the principal items of textiles under present conditions 
 as compared with pre-war times. 
 
 4. The method by which any commercial obligations 
 entered into as a result of general agreements as to pol- 
 icy should be guaranteed, 
 
 a. Whether by foreign government. 
 
 b. By foreign bankers. 
 
 c. By the foreign industry. 
 
 d. By the United States Government. 
 
 e. By bankers in the United States. 
 
 Chairman Munn then appointed the following com- 
 mittee to serve as a special reception committee in con- 
 nection with welcoming the foreign delegates at the meet- 
 ing of the Textiles Committee : 
 
442 THE INTERNATIONAL TRADE CONFERENCE 
 
 MR. Foss, for Belgium. 
 
 MR. MASTERS, for France. 
 
 MR. DANA, for Italy. 
 
 PROFESSOR COPELAND, for England. 
 
 MEETING 8 P. M., OCTOBER 20. 
 
 BELGIUM. 
 Present : 
 
 JOHN R. MUNN, Chairman. 
 
 V. E. BLAGBROUCH, Assistant Secretary. 
 
 SIDNEY BLUMENTHAL. 
 
 W. A. GRAHAM CLARK. 
 
 M. T. COPELAND. 
 
 CHESTER L. DANE. 
 
 GRANVILLE E. Foss. 
 
 JOHN S. LAWRENCE. 
 
 JAMES R. MACCOLL. 
 
 F. R. MASTERS. 
 
 V. P. VILLA. 
 
 H. M. VICTOR. 
 
 CHARLES J. WEBB. 
 
 M. CANON-LEGRAND. 
 
 The Belgian Textile Delegates not having arrived in 
 Atlantic City, the first part of the evening was devoted 
 
 Following the discussion by M. LeGrand, Mr. John S. 
 Canon-LeGrand, of the Belgian Mission. 
 
 Following the discussion by M. Legrand, Mr. John S. 
 Lawrence introduced a set of resolutions concerning cot- 
 ton, which had been submitted by the United States dele- 
 gate members at the World Cotton Conference, held in 
 New Orleans, as follows. 
 
 "WHEREAS, a great and unprecedented emergency now 
 exists in the world requiring prompt assistance to the 
 countries of Europe in order to restore as quickly as pos- 
 sible the operation of their industries and a return to 
 normal economic conditions; and, 
 
 "WHEREAS, a broad public policy demands an increase 
 in world-wide production with the least possible delay, to 
 
THE INTERNATIONAL TRADE CONFERENCE 443 
 
 the end that the existing high level of prices may be re- 
 duced; and, 
 
 "WHEREAS, certain essential industries in Europe 
 which should be producing are not now able to do so 
 owing to their inability to secure the necessary materials 
 on sufficient long-time credits to permit them to resume 
 business operations and production ; and, 
 
 "WHEREAS, the materials required involve credits of 
 such character that the usual channels of credit exten- 
 sion are unable to meet them, requiring the assistance of 
 some government agency capable of safely extending, al- 
 locating and controlling such credits and cooperation with 
 other governments, creating a form of investment secu- 
 rity appealing to the general public ; and, 
 
 "WHEREAS, appreciating this situation our Government 
 has authorized an extension of ONE BILLION DOLLARS of 
 credit to finance our exports through the agency of the 
 War Finance Corporation; and, 
 
 "WHEREAS, this situation requires unity of effort and 
 cooperation between other governments and our Govern- 
 ment, and involves credit of longer term than American 
 commercial banking machinery is justified to assume; 
 therefore, be it 
 
 "Resolved, That we recommend that such enabling 
 legislation be enacted by Congress as will permit the War 
 Finance Corporation to purchase directly self-liquidating 
 secured approved obligations of foreign manufacturers, 
 corporations, firms or merchants, endorsed by foreign 
 commercial banks,, or bankers and guaranteed by the 
 Government Bank and approved by the recognized gov- 
 ernments of the respective countries, to be used by such 
 manufacturers, corporations, firms or merchants for the 
 purchase in the United States of essential materials 
 necessary for the resumption of business operations and 
 production in those countries, thus giving empolyment 
 to their people and aiding in a return to political, social 
 and economic stability, and for the production of such 
 merchandise as may be exported, and to provide exchange 
 for further purchases. Be it further 
 
 "Resolved, That it is the sense of this Conference that 
 if the aid of the Government of the United States can be 
 extended in the manner above indicated, to provide for 
 this emergncy financing for which no other agency now 
 exists than the War Finance Corporation, that the exist- 
 ing banking and credit machinery of the United States 
 will be adequate to provide for the general financing inci- 
 
444 THE INTERNATIONAL TRADE CONFERENCE 
 
 dental to normal international banking operation,?. 
 Finally 
 
 "Resolved, That it is our opinion that with the Govern- 
 ment cooperation as above outlined, at least one million 
 bales of cotton, together with large quantities of other 
 essential products could be made immediately available 
 for those European industries which are now unable to 
 operate." 
 
 In the course of the informal discussion following, Mr. 
 Cherington raised the question whether it would not be 
 advisable in negotiating new commercial treaties with 
 the chief allied and associated countries, to include a 
 provision for clauses which would permit the refunding 
 of all tariff duties on merchandise from these countries,, 
 imported into the United States for a specified term of 
 years, upon the submission of proof that the price paid 
 for the merchandise imported in the country of produc- 
 tion, was not less than the prevailing market price in the 
 chief market in the United States for goods essentially 
 similar. 
 
 FRANCE. 
 
 A meeting of the Textiles Committee with the French 
 representatives was held at 2.15 P. M. Tuesday afternoon, 
 October 21, at the Hotel Traymore. 
 
 The following persons were present : 
 
 Representing France. 
 
 M. EDUARD DOLLEANS. 
 M. WADDINGTON. 
 M. GODET. 
 j 
 
 Representing the Committee. 
 
 MR. JOHN R. MUNN, Chairman. 
 
 MR. PAUL T. CHERINGTON, Secretary. 
 
 MR. V. E. BLAGBROUGH, Assistant Secretary. 
 
 MR. CHESTER DANE. 
 
 MR. W. A. GRAHAM CLARK. 
 
THE INTERNATIONAL TRADE CONFERENCE 445 
 
 MR. CHARLES J. WEBB. 
 MR. J. J. MERRITT. 
 MR. GRANVILLE E. Foss. 
 MR. F. S. BLANCHARD. 
 MR. MELVIN T. COPELAND. 
 MR. SIDNEY BLUMENTHAL. 
 MR. F. R. MASTERS. 
 MR. EDWIN M. SMITH. 
 MR. A. P. VILLA. 
 MR. JAMES E. MACCOLL. 
 MR. JOHN HANRAHAN. 
 MR. GEO. H. HODGSON. 
 MR. D. R. CALHOUN. 
 
 After the meeting had been called to order by the 
 Chairman, Mr. John R. Munn, M. Waddington of the 
 French delegation was introduced, and he presented some 
 statistics concerning the present state of the textile in- 
 dustry in France, among the more significant of which 
 were the following : 
 
 Cotton spindles in France 9,300,000 
 
 Spindles operating on Egyptian cotton 1,500,000 
 
 Spindles operating on American cotton 7,800,000 
 
 Total number of spindles in northern France 
 
 before the war 1,100,000 
 
 Approximate amount of American cotton re- 
 quired (bales) 1,000,000 
 
 Number of looms operating on cotton 182,000 
 
 Total number of employes in cotton industry 
 (spinning and weaving), men, women and 
 
 children 300,000 
 
 Approximate number of other employes be- 
 sides spinners and weavers 1,500,000 
 
 M. Waddington declared that after the complete cessa- 
 tion of textile operations during the month of August, 
 1914, there was a resumption almost wholly on military 
 production, but even this showed a reduction of not less 
 than eighteen and probably not more than forty-five per 
 cent of normal. In addition to the lack of labor,, the lack 
 of raw material and the shortage of coal, both of which 
 were due to the failure of transportation, greatly hin- 
 dered the operation of the industry. 
 
446 THE INTERNATIONAL TRADE CONFERENCE 
 
 M. Waddington gave a summary of conditions in the 
 French industry since the signing of the armistice. He 
 showed that in general throughout the occupied territory 
 the Germans had stripped the mills of all copper parts 
 and belting. Apparently they had intended to keep the 
 territory permanently, and left the looms intact. When 
 defeat became imminent, however, they decided to break 
 up what machinery they could and remove the rest. This 
 was not completed and much of the machinery was over- 
 taken by the French army before it reached the fron- 
 tier. Work has been resumed in many of the mills of 
 northern France, and the probabilities are that it will not 
 take more than a few months to almost completely restore 
 the more important parts of the cotton industry of north- 
 ern France. 
 
 Notwithstanding the shortage of labor due to the large 
 number of men killed and disabled, and the exhaustion 
 of the women laborers, the probabilities are that the 
 restoration of the industry will not take long. The prin- 
 cipal obstacle is the securing of an adequate supply of 
 raw material, and the chief feature of this problem is the 
 necessity of getting some kind of extension of time in 
 payment for the cotton, so that the payment may be made 
 after the changed situation has to some extent improved. 
 In other words, M. Waddington took the position that the 
 French cotton industry would be able to meet practically 
 all of the difficulties of the situation, provided they were 
 not handicapped by this individual burden, which could,, 
 without undue tax, be avoided by postponement. 
 
 In connection with the woolen industry, M. Wadding- 
 ton read a translation of a statement prepared by M. 
 Godet, covering the woolen and worsted industries. This 
 statement showed that the reconstruction of these indus- 
 tries in northern France would be sufficient for taking 
 care of home consumption in France for the current year. 
 The total restoration for the country would probably 
 amount to twenty-five per cent of the pre-war normal 
 capacity in these industries, if immediate needs 
 for clothing orders had been placed in Bradford. There 
 
THE INTERNATIONAL TRADE CONFERENCE 447 
 
 was no necessity for the importation from the United 
 States of raw materials for this industry in so far as cot- 
 ton is concrned. 
 
 The woolen and worsted industries of France are 
 anxious to increase to something like pre-war basis their 
 exports of high-grade woolen fabrics to the United States. 
 In this they are somewhat handicapped by the tariff, but 
 with the proper selling conditions, the probabilities are 
 that the handicap could be overcome. 
 
 Other matters mentioned by M. Godet were the desira- 
 bility of relaxing the taxation on the importation of 
 French feathers without killing birds, and also in the 
 United States adequate production for added designs and 
 feathers. 
 
 In the general discussion which followed M. Godet de- 
 clared that although the hours of labor in the French 
 textile industry had been reduced from ten hours per day 
 to eight, the production in the weave looms had not shown 
 a corresponding decrease. By beginning work more 
 promptly, and by working continuously until the hour of 
 closing, and also by providing adequate assistance in the 
 way of bobbin boys, etc., the actual amount of work done 
 in the weave looms had been increased so that probably 
 the output for eight hours was between ninety-two and 
 ninety-seven per cent of the output previously secured in 
 ten hours. 
 
 In the spinning departments this is not true, since it 
 is impossible to run the spindles economically any faster 
 than they were formerly run. The output of the spinning 
 looms is about eighty-five per cent of that formerly ob- 
 tained. 
 
 Wages have been materially increased so that they are 
 now, roughly speaking, from two to two and one-half 
 times those prevailing during the pre-war periods. 
 
 In reply to a question by Chairman Munn as to how 
 long credit would be required for the cotton supplied by 
 the United States, M. Godet said that if arrangements 
 would be made to extend the time of payment certainly 
 as much as one year, and possibly as much as five years, 
 
448 THE INTERNATIONAL TRADE CONFERENCE 
 
 it would greatly simplify the strained situation,, and would 
 tend to assist in rectifying exchange conditions. 
 
 In reply to another question M. Godet said that he knew 
 of no effort inaugurated in France for the joint guarantee 
 of credit on the part of industry, similar to the Belgian 
 arrangement. 
 
 TUESDAY, OCTOBER 21, 1919, 8:30 p. M. 
 AMERICA. 
 
 Present : 
 
 MUNN, JOHN R., Chairman. 
 
 CHERINGTON, MR. PAUL T., Secretary. 
 
 BLAGBROUGH, MR. VERNON E., Assistant Secretary. 
 
 BLUMENTHAL, SIDNEY. 
 
 CLARK, W. A. GRAHAM. 
 
 COPELAND, PROF. MELVIN F. 
 
 CALHOUJJ, D. R. 
 
 DANE, CHESTER L. 
 
 Foss, GRANVILLE E. 
 
 HODGSON, GEO. H. 
 
 LAWRENCE, MR. 
 
 MASTERS, FRANCIS R. 
 
 WEBB, CHARLES J. 
 
 Chairman Munn, read a statement concerning the 
 French requirements in the matter of textiles as brought 
 out by the Conference, in the afternoon. This statement 
 was made the basis of general discussion from which a 
 number of specific recommendations emerged. 
 
 On the motion of Mr. Webb, it was voted to include in 
 the recommendation a provision that a credit of two hun- 
 dred million dollars ($200,000,000) should be extended to 
 France for the purchase of raw cotton. 
 
 Mr. Lawrence submitted resolution as follows : 
 
 "We are in favor of a United States Government loan to 
 France for the purchase of cotton." 
 
 This resolution was referred to a sub-committee con- 
 sisting of Messrs. Munn, Copeland, Lawrence and Cher- 
 ington. 
 
THE INTERNATIONAL TRADE CONFERENCE 449 
 
 On motion, Chairman Munn appointed the following 
 sub-committee to redraft a general statement of the re- 
 quirements of the various nations as brought out in the 
 Committee discussions, consisting of Messrs, Blanchard, 
 Cherington, Copeland, Lawrence, Chairman Mr. Munn. 
 
 On motion of Mr. Copeland, the following resolution 
 was referred to sub-committee: 
 
 "We recommend that so far as possible, any credit ex- 
 tended should be given in such manner as to avoid fur- 
 ther inflation of currency in the United States. 
 
 ITALY. 
 
 A meeting of the Committee on Textiles, was held at 
 10 a. m., Wednesday, October 22nd, 1919, at the Hotel 
 Traymore. 
 
 Upon roll-call the following persons were present: 
 
 Representing Italy. 
 
 G. MYLIUS. 
 I. MARCHISIO. 
 A. JACCARINO. 
 T. TUCCIMEI. 
 H. TAVEIBA. 
 P. DECICCO. 
 V. MENEGHELLI. 
 
 Representing the Committee. 
 
 JOHN R. MUNN, Chairman. 
 
 V. E. BLAGBROUGH, Assistant Secretary. 
 
 GRANVILLE E. Foss. 
 
 CHESTER L. DANE. 
 
 F. S. BLANCHARD. 
 
 F. R. MASTERS. 
 
 GEO. H. HODGSON. 
 
 EDWIN E. SMYTH. 
 
 MELVIN T. COPELAND. 
 
 H. M. VICTOR. 
 
 D. R. CALHOUN. 
 
 W. A. GRANHAM CLARK. 
 
 M. JOSEPH CHIESA. 
 
450 THE INTERNATIONAL TRADE CONFERENCE 
 
 Chairman Munn, after opening the session introduced 
 Mr. Mylius, who read a prepared statement concerning 
 the Textile Industries of Italy. This statement as given 
 is attached. 
 
 The following points were brought out in the general 
 discussion which followed the reading of the report. 
 
 1. By law, night work by women and children is en- 
 tirely prohibited in the mills. Labor organizations, gen- 
 erally speaking, are opposed to working mills in more 
 than one shift. The mills, which operated two shifts be- 
 fore the war still do so. The probabilities are, however, 
 that as winter comes on, and it is evident that the mills 
 are warmer and more comfortable than the weather out- 
 side, an increased amount of two shift work may be pos- 
 sible. The forty-eight hour week is now universal, and, 
 it is generally assumed, that the reduction in production 
 due to the decrease in hours of work is roughly ten per 
 cent, of the normal pre-war figure. The present wages 
 paid to women are about five lire per day, while men are 
 paid eight lires, and some cases as high as ten. 
 
 2. On the matter of equipment, the point was made 
 that there are about 140,000 looms in Italy, of which not 
 more than five or six thousand are automatic. The war 
 destroyed possibly two thousand looms. There are in all 
 about 100,000 printing machines, about one-half of which 
 are owned by a single concern. 
 
 On August 1st, the stocks of American cotton actually 
 purchased for this year's use were about 276,000 bales, 
 of which about 100,000 bales were still in the United 
 States, the remainder being either in transit or being un- 
 loaded in Italy. In buying cotton this year, more spot 
 than future cotton has been bought, because of the condi- 
 tion of the market. Probably the industry is pretty well 
 covered up to the end of May, 1920. 
 
 Normal stocks are usually about 30,000 bales at the 
 ports, and enough more to make up 100,000 bales in the 
 mills. 
 
 The type of cotton used to the greatest extent in the 
 Italian mills is full American middling, either Texas or 
 Mississippi. Some long staple also is used, but this does 
 not amount to more than 20,000 bales per year. 
 
 Generally speaking, the industry is in good financial 
 condition, and needs no financial help at this time. So 
 far as exchange affects the situation the many problems 
 
THE INTERNATIONAL TRADE CONFERENCE 451 
 
 is to set up some sort of an Italian Government agency, 
 which would assume the risk for a period of years, and 
 allow the spinners to withdraw from the transaction and 
 eliminate uncertainly, except as related to rules of the 
 Government agency. 
 
 The mills of Southern Italy have as a rule been small, 
 but about three years ago about 300,000 spindles and 20,- 
 000 looms were merged in a financial control in the form 
 of a stock company. 
 
 The export business of Italy in cotton goods has re- 
 sumed only very slowly. Some Turkish business has re- 
 sumed, and there are very splendid shipping relations 
 with Salamatia and Constantinople. 
 
 In recent months, there has been some time given to 
 encouraging shipments to the near east on a barter basis, 
 but the difficulty in operating on a barter basis is that 
 the industry is rather highly specialized, and there are 
 few Italian concerns capable of handling both imports 
 and exports. The export business in cotton goods ap- 
 parently depends for its success on conducting a special- 
 ized sale of cotton goods both in Italy and abroad. 
 
 GREAT BRITAIN. 
 
 At a meeting of the Textiles Committee of the Inter- 
 national Trade Conference, October 22nd, 1919, the fol- 
 lowing members were present : 
 
 British Representatives. 
 
 FRANK MOORE, LEICESTER, England. 
 
 J. JOYCE BRODERICK, Washington, D. C. 
 
 JOHN KING, Glasgow, Scotland. 
 
 J. HOPE SIMPSON, Liverpool, England. 
 
 J. G. JENKINS, London, England. 
 
 G. E. BERKES, London, England. 
 
 C. R. CARRY, Leicester, England. 
 
 American Representatives. 
 
 JOHN R. MUNN, New York City. 
 J. R. MACCOLL, Providence, R. I. 
 
452 THE INTERNATIONAL TRADE CONFERENCE 
 
 EDWIN W. SMYTH, Philadelphia. 
 
 GEO. K. MYERS, New York City. 
 
 F. R. MASTERS. 
 
 GEO. H. HODGSON, Cleveland, Ohio. 
 
 D. R. CALHOUN, St. Louis. 
 
 W. A. GRAHAM CLARK, Washington, D. C. 
 
 CHESTER L. DANE, New York City. 
 
 FESSENDEN S. BLANCHARD, Boston, Mass. 
 
 GRANVILLE E. Foss, North Andover, Mass. 
 
 H. M. VICTOR, Charlotte, N. C. 
 
 V. E. BLAGBROUGH, Washington, D. C. 
 
 MELVIN T. COPELAND, Cambridge, Mass. 
 
 W. R. SIBLEY, Washington, D. C. 
 
 HOMER HOYT, Newark, Del. 
 
 PAUL T. CHERINGTON, Boston, Mass. 
 
 Mr. Frank Moore of Leicester, England, made a gen- 
 eral statement in which he said that apparently the cot- 
 ton situation had already been pretty well thrashed out 
 at the New Orleans meeting. So far as the wool trade 
 was concerned, he said, there is plenty of trade for all 
 of us. The devastated countries, he said, might very well 
 be supplied from the United States. The general discus- 
 sion which followed brought out the fact that there prob- 
 ably would be some reduction in output in the textiles in 
 Great Britain as a result of the curtailment of hours to a 
 48-hour week. Mr. Moore said the normal pre-war con- 
 sumption of 3,500,000 bales of cotton, of which 3,000,000 
 came from the United States, probably would not be mate- 
 rially reduced. He said that Great Britain did not need 
 special credit arrangements for conducting this matter, 
 for even the exchange difficulties he believed would be 
 discounted. Manchester, he said,, had been running on 
 short hours not over 60 or 70 per cent, capacity and 
 the mills were well sold up. 
 
 The British representatives made it clear that the man- 
 ufacturers of Great Britain were very anxious to continue 
 their export business and that they planned to make every 
 effort to revive this business as promptly as possible. 
 
 Sir James Hope Simpson said that except in the devas- 
 tated countries, the commercial connections for rebuilding 
 the British export business in textiles already exist, and 
 
THE INTERNATIONAL TRADE CONFERENCE 453 
 
 that with production resumed, it was a safe assumption 
 that reasonable restoration of British export business 
 would follow, notwithstanding the fact, that wages in 
 England have been doubled. One of the principal diffi- 
 culties in the industry up to this time, he said, was in the 
 matter of wool combing. Wool combers are not working 
 well. 
 
 In replying to questions concerning the credit situation, 
 Sir James Hope Simpson said that while no doubt Great 
 Britain had over borrowed, it was not now inclined to 
 extend credits unduly. He thought it quite possible that 
 arrangements might be made in various quarters for the 
 conduct of a barter business. 
 
 Further discussion brought out the point that usually 
 the heavy purchases of raw cotton in the United States 
 for use in Great Britain are completed by the end of 
 November, or, at least, by the end of the calendar year, 
 so that probably the needs for 1920 were now being cared 
 for vigorously. 
 
 Attention was also called to the fact, that in view of 
 the high cost of building and equipment, the construction 
 of new textile mills probably would be very slow for a 
 number of years, and that the indications were, that there 
 would be a shortage of cloth of practically all kinds for 
 a long time to come. 
 
 It was also shown that there is now under way in Eng- 
 land a general movement for refunding and merging fac- 
 tories so that much of the machinery either is now or 
 soor will be on the books at present prices. When this 
 has taken place it is expected that more machinery will 
 be bought, 
 
 Japanese competition was generally conceded to be one 
 of the disturbing factors in the textile trade, and espe- 
 cially in the trade in cotton. 
 
 Sir James Hope Simpson, on being asked concerning the 
 length of time necessary for the resumption of normal 
 commerce with the bordering countries to the south and 
 east of Germany, said that he thought probably it would 
 take about a year for business to be resumed in Rou- 
 
454 THE INTERNATIONAL TRADE CONFERENCE 
 
 mania, and in Czecho-Slavonia. On the other hand, he 
 said, he thought the resumption of business in Finland 
 and Lithuania would not take as long. 
 
 REPORT OF COMMITTEE. 
 
 The Textile Committee has endeavored to keep the dis- 
 cussion confined to four general headings : 
 
 1. Merchandise required in the form of: 
 
 (a) Raw material. 
 
 (6) Semi-finished products such as yarns. 
 
 (c) Manufactured goods. 
 
 2. The present productive capacity and production in 
 the foreign countries as compared with the pre-war pro- 
 duction > and the tendencies as to costs, operations and 
 supplies. 
 
 3. Available exportable surplus which the foreign 
 country has now or desires to attain in the re-establish- 
 ment of its textile industry, also the exportable surplus 
 available from America. 
 
 4. The basis which may be suggested by the foreign 
 missions as to the methods of procuring their require- 
 ments. 
 
 FOREIGN TEXTILE SITUATION BY COUNTRIES. 
 
 FRANCE. 
 
 The Committee on Textiles had before them Messrs. 
 Waddington, Godet, Potin and Dolleans of the French 
 delegation. It developed that France was desirous of re- 
 establishing its textile industry on a basis which would 
 provide for their domestic requirements, and take care of 
 the French Colonial trade. 
 
 Based on the available machinery operated to a reason- 
 able commercial capacity, 75% of the production will be 
 required for domestic consumption, and the remainder of 
 25% would, by and large, be utilized in the export trade, 
 which has been developed largely with their own colonies 
 under preferential tariff rates. 
 
 The French textile requirements appear to be confined 
 almost entirely to raw cotton, and they estimate a total 
 quantity of 1,050,000 bales of American cotton per an- 
 num. This will enable the industry to operate on its 48- 
 
THE INTERNATIONAL TRADE CONFERENCE 455 
 
 hour week, and provide their domestic requirements and 
 export surplus. Any reduction in this quantity of raw 
 cotton will tend to 
 
 (a) Cut down full operation of their mills. 
 (6) Necessitate a reduction in consumption, or 
 (c) Cause a loss of an established export trade. 
 
 The French delegation is anxious to secure American 
 cotton of the better grades, but will be willing to utilize 
 the lower grades or turn to Egyptian cotton or Indian 
 cotton, rather than curtail production. 
 
 At the prevailing price of cotton this represents an an- 
 nual expenditure in this country of between $175,000,000 
 and $200,000,000. 
 
 M. Waddington indicated that there was no shortage 
 of cotton at the present time in France, nor was there 
 any individual financial obstacles to purchases on the part 
 of the French manufacturers. The problem is one rather 
 of the re-establishment of the normal rate of exchange. 
 
 The French Mission, indicated a welcome to invest- 
 ments of American capital in France textile enterprises. 
 
 M. Waddington spoke of his desire of having France 
 receive American cotton on a preferential basis. 
 
 GREAT BRITAIN. 
 
 From our conference with the delegates from Great 
 Britain, it appears, that the British cotton industry, and 
 most other branches of the textile industries are rapidly 
 resuming normal production. Their requirements of raw 
 cotton will probably be about 3,500,000 bales of which 
 3,000,000 bales will be American cotton. 
 
 The British delegates stated, that their imports of raw 
 cotton would be financed with the necessity of a grant of 
 credit from America. It was pointed out, however, that 
 several countries such as Poland and Czecho-Slovakia, are 
 in desperate need of raw cotton which can be obtained 
 by them only with the assistance of long-term credits 
 from America. 
 
 ITALY. 
 
 The Italian cotton industry, which before the war em- 
 ployed 4,600,000 spindles, is to a large extent in a posi- 
 tion to resume operations. Production is somewhat cur- 
 
456 THE INTERNATIONAL TRADE CONFERENCE 
 
 tailed by the shortened hours of labor. Allowing for this 
 the estimated requirements for the current year are re- 
 duced from one million bales to 885,000 bales, of which 
 700,000 bales, formerly came from the United States, 
 while estimated requirements from the United States this 
 year, are 650,000 bales. Normal exports of cotton goods 
 are chiefly to the Levant and amount to about 25% of 
 the total output. 
 
 The Italian silk industry has been interf erred with by 
 the war and Chinese competition. But, it is the hope 
 that with the restoration of more nearly normal condi- 
 tions, exports to the United States will increase. 
 
 The hemp industry also is in a fair way to right itself 
 and soon return to a normal basis. 
 
 In the manufacture of wool, Italy plans to emphasize 
 competition in high grade products. With respect to 
 these products and high grade cotton fabrics the dele- 
 gates express a hope that the United States would lower 
 its duties on Italian products in return for similar con- 
 cessions in Italy. 
 
 The Italian delegates presented a statement concerning 
 credits similar to that offered by the French delegates, 
 namely; that while private concessions are not sought, 
 it was hoped, that arrangements could be made between 
 the governments of the United States and Italy, by which 
 payment for raw cotton bought this year could be de- 
 ferred until exchange conditions were more favorable. 
 
 BELGIUM. 
 
 No delegates familiar with the Belgian textile indus- 
 tries appeared for the conference with the committee. 
 Based on the figures of pre-war consumption. 
 
 PORTUGAL. 
 
 A representative of the Portuguese, explained to the 
 committee, that their cotton industry is now resuming 
 operations after an idleness due to lack of orders. They 
 will need 80,000 bales of American cotton if their indus- 
 try operates at full time. For the purchase of this cot- 
 ton the Portuguese manufacturers would like long-term 
 credits from America. 
 
 SUMMARY. 
 
 1. Textile production in Europe is rapidly becoming 
 established on the basis of reasonable capacity operation 
 
THE INTERNATIONAL TRADE CONFERENCE 457 
 
 within the limits of shorter working hours, which have 
 somewhat restricted output as compared with pre-war 
 production. 
 
 2. America being an importer of all raw materials 
 used in the Textile industry, except cotton, we find that 
 all delegations are interested almost solely in the pur- 
 chase of American cotton, and they have indicated no 
 interest in purchasing wool, silk, flax or other textile 
 fibres in this country. 
 
 In manufactured textile products, Europe is fortunate- 
 ly able to provide her own requirements, given the neces- 
 sary raw materials and puts forth no demand on the 
 American textile mills. American mills are producing a 
 relatively small exportable surplus, which surplus, it is 
 considered desirable to ship to those importing markets 
 which will continue to be purchasers of our textile mer- 
 chandise. 
 
 3. In order to provide raw cotton to those of our Allies 
 whose exchange has suffered depreciation excessively the 
 necessity of credit accommodation, is emphasized, so as 
 not to handicap such Allies in competition with the neu- 
 trals, and those countries which are not so far affected by 
 the high cost to them of the American dollar, 
 EFFECT OF AMERICAN TEXTILE INDUSTRY AND AMERICAN 
 
 CONSERVATION. 
 
 4. Our own textile situation is sufficiently acute with 
 the existing high level of prices that there is a distinct 
 danger to us should overseas purchases tend to further 
 elevate prices and accentuate further social unrest due 
 to higher costs of necessary clothing (we attach a con- 
 fidential report of approximate demands for cotton w'th 
 available supplies). 
 
 5. That, although there appears a demand for raw 
 cotton in excess of the available indicated supply, it must 
 be borne in mind that much European requirements have 
 already been contracted from this year's crop, with the 
 attendant enhancement of prices which has secured in 
 the period of this active buying. 
 
 6. That while depreciated currency is a handicap in 
 all countries which import from the United States for 
 their own domestic consumption, it has a corresponding 
 advantage when raw material or other merchandise is im- 
 ported for re-export in competition with the similar prod- 
 ucts from the United States, and, it is as necessary, in 
 the interest of our foreign trade to stabilize exchange, as 
 it is for the foreign country to have it stabilized. 
 
458 THE INTERNATIONAL TRADE CONFERENCE 
 
 RECOMMENDATIONS. 
 
 1. That, in spite of the possibility of unequal distribu- 
 tion of scanty supplies, no government agency should be 
 established in the United States to allocate textile ma- 
 terials, particularly raw cotton. 
 
 2. That, if credit is granted to our associates in the 
 war to assist them in rehabilitating their industries, and 
 stabilizing exchange, adequate provision should be made 
 to prevent inflation of the credit currency of the United 
 States ; further inflation would doubtless occasion another 
 rise in prices, and aggravate the conditions that are al- 
 ready so threatening to the general welfare of the coun- 
 try. 
 
 3. That, if credit is granted as suggested above, ade- 
 quate provision should be made to guarantee its utiliza- 
 tion for specfic purposes. The committee believes that it 
 is to the interest of the textile industries of America as 
 well as to the interest of others that this credit should 
 be utilized as some sort of revolving fund to stimulate 
 the increase of exports from Europe. The committee ap- 
 proves the appended resolution adopted last week, at the 
 World Cotton Conference in New Orleans, regarding the 
 method of financing cotton exports to our Allies. 
 
 4. That, inasmuch as there is a danger of a general 
 scarcity of raw cotton not only this year, but for several 
 years to come, every cotton manufacturer and consumer 
 in the world should be urged to avoid waste and to use 
 every practical means of conservation of the material. 
 The Textile Committee, furthermore, strongly urges that 
 every effort should be made to stimulate an increase in 
 the production of raw cotton in this country and abroad. 
 
 5. That, consideration be given to the possibility that 
 Italy, France, Poland, Czecho-Slovakia and possibly other 
 countries securing American capital investments in estab- 
 lished textile enterprises, which would appear to offer 
 ample remuneration, reasonable safety and an oppor- 
 tunity to assist in the re-establishment of the textile in- 
 dustries of these countries by providing dollars for the 
 purchase of raw materials here. 
 
 JOHN R. MUNN, Chairman. 
 
THE INTERNATIONAL TRADE CONFERENCE 459 
 COMMITTEES ON PERMANENT ORGANIZATION. 
 BELGIUM. 
 
 M. CANON-LEGRAND. 
 
 M. VAN DEN VEN. 
 M. DE GROOTE. 
 
 FRANCE. 
 
 All members of the Mission. 
 
 GREAT BRITAIN. 
 
 SIR ARTHUR SHIRLEY BENN. 
 SIR JAMES HOPE SIMPSON. 
 MARSHALL STEVENS. M. P. 
 HON. J. G. JENKINS. 
 BAILIE JOHN KING. 
 FRANK MOORE. 
 
 ITALY. 
 
 B. ATTOLICO. 
 D. GIDONI. 
 V. MENEGHELLI. 
 P. G. LAZZERINI. 
 G. FUMMI. 
 A. JACCARINO. 
 
 F. QUATTRONE. 
 
 G. GRANATA. 
 L. SOLARI. 
 L. PERERA. 
 
 G. B. CECCATO. 
 0. ROSSATI. 
 SIG. OLDRINI. 
 SIG. SERRATI. 
 P. DECICCO. 
 
 AMERICA. 
 
 HARRY A. WHEELER, Chairman; 
 
 Vice-President, Union Trust Co., Chicago, 111. 
 
 S. C. MEAD, Vice-Chairman and Secretary; 
 
 Secretary, Merchants' Association, New York CHv. 
 
 W. G. G. BENWAY, Assistant Secretary; 
 Chamber of Commerce of the United States, Chicago, 
 
460 THE INTERNATIONAL TRADE CONFERENCE 
 
 ARNOLD, JOHN J., Bank of Italy, Montgomery & Clay Stree .s, San 
 
 Francisco, Cal. 
 CARR, JOHN J., Director, Consular Service, Department of State, 
 
 Washington, D. C. 
 FAHEY, JOHN H., Boston, Mass. 
 FILENE, EDWARD A., President, William Filene's Sons Co., Boston 
 
 Mass. 
 
 HERRICK, MYRON T., Cuyahoga Building, Cleveland, Ohio. 
 JOHNSON, ALBA B., Philadelphia Pa. 
 KENNEDY, PHILIP B., Director, Bureau of Foreign and DomestV 
 
 Commerce, Department of Commerce. Washington, D C. 
 MINER, EDWARD G., President, The Pfaulder Co., Rochester, N. Y. 
 RUBLEE, GEORGE, Cornish, N. H. 
 SEIBERLING, F. A., President, Goodyear Tire & Rubber Co , Akron, 
 
 Ohio. 
 
 SKINNER, ROBERT P., American Consul General, London 
 SMITH, GEORGE ED., President, Royal Typewriter Co., New York 
 
 City. 
 
 AMERICAN COMMITTEE. 
 
 Minutes of the proceedings of a meeting of the Ameri- 
 can Committee on Permanent Organization, held at the 
 Traymore Hotel, Atlantic City, New Jersey, on Monday, 
 October 20, 1919, at 2.15 P. M. There were present : 
 
 MR. A. C. BEDFORD. 
 MR. JOHN H. FAHEY. 
 MR. JOHN J. ARNOLD. 
 MR. WILBUR J. CARR. 
 MR. EDWARD A. FILENE. 
 MR. ALBA B. JOHNSON 
 MR. PHILIP B. KENNEDY. 
 MR. EDWARD C. MINER. 
 MR. GEO. RUBLEE. 
 
 MR. F. A. SlEBERLING. 
 
 MR. ROBERT P. SKINNER. 
 
 MR. GEO. ED. SMITH. 
 
 MR. S. C. MEAD, Vice-Chairman and Secretary 
 
 MR. W. G. BENWAY, Assistant Secretary. 
 
 In the absence of the Chairman, Mr. Harry A. Wheeler, 
 the meeting was called to order and presided over by Mr. 
 John H. Fahey. 
 
 A synopsis showing the origin, construction, method of 
 operation, activities and rules and regulations of the In- 
 
THE INTERNATIONAL TRADE CONFERENCE 461 
 
 ternational Congress of Chambers of Commerce, were dis- 
 tributed for the information of the members of the com- 
 mittee. 
 
 Chairman Fahey made a historical statement relative 
 to the International Congress. The Committee then took 
 under consideration the following question: "Is some 
 form of permanent international organization desirable ?" 
 After discussion, it was moved by Mr. Johnson, duly sec- 
 onded and unanimously carried, that some kind of per- 
 manent organization is desirable and necessary. 
 
 The question then considered was: "What countries 
 should be included in such an organization ?" After con- 
 sideration it was moved by Mr. Johnson, and duly sec- 
 onded, that the five Allied nations, France, England, Bel- 
 gium, Italy and the United States should be included. This 
 motion was unanimously adopted. The next question 
 considered was : "Should other Allied and neutral nations 
 be included?" It was moved by Mr. Skinner, and duly 
 seconded, that membership of such an international or- 
 ganization should be comprehensive in character and 
 should include other approved Allied and neutral nations, 
 leaving the approval to the discretion of the proper gov- 
 erning body of the organization. After a careful discus- 
 sion of this action, it was unanimously adopted. The 
 next question considered was : "What should be the basis 
 of representation?" It was moved, by Mr. Bedford, and 
 duly seconded, that it is the view of the committee, that 
 at the outset membership should be confined to business 
 and financial men, inviting government co-operation. This 
 motion was carefully considered and discussed, and sub- 
 sequently, unanimously adopted. The question then con- 
 sidered was: "Should the International Congress of 
 Chambers of Commerce be utilized as a basis for such a 
 new organization ?" It was the consensus of opinion, dis- 
 closed by the discussion, that the organization should be 
 created de novo, and that, if possible, the International 
 Congress of Chambers of Commerce, should be merged 
 therein. The following question was then considered: 
 "What Steps may properly be taken now to start such 
 
462 THE INTERNATIONAL TRADE CONFERENCE 
 
 a new organization?" After discussion, an attempt to 
 answer the question was deferred until after the con- 
 ference with the delegates from the other countries. 
 
 The Chairman stated, that at his last conference with 
 Mr. Wheeler, the important topics discussed with Mr. 
 Wheeler, were about as follows : 
 
 (1.) Any form of organization should provide for the 
 permanent secretariat or bureau with resources and facil- 
 ities for continuing research work. 
 
 (2.) The resources of the organization should be suffi- 
 cient to provide for committees on special international 
 subjects and to make the reports available to member 
 organizations. 
 
 (3.) A board of directors, or some governing body, is 
 necessary to direct the work of committees and the secre- 
 tariat, and to oversee the preparation of matter for meet- 
 ings. 
 
 (4.) Action of the Conference in whatever form pro- 
 vided for would contemplate presenting the agreements 
 arrived at to the legislative bodies of the various 
 countries. 
 
 (5.) A study should be made of the League of Nations 
 organization for the purpose of finding out to what ex- 
 tent the League of Nations would be prepared to deal 
 with the decisions arrived at by the Conference. 
 
 (6.) The permanent secretariat should be expected to 
 maintain a persistent follow-up system to press for action 
 in the various countries the matters agreed upon. 
 
 (7.) The machinery of the organization should provide 
 for the presentation of reports and questions in such a 
 way that all the countries in the membership would have 
 due notice of contemplated action and would have full op- 
 portunity to be heard and to register their views. 
 
 STATEMENT OF PURPOSES OF ORANIZATION. 
 
 The Committee, by unanimous action, tentatively 
 adopted the following statement of purpose of such an in- 
 ternational organization. 
 
 '"The purpose of the organization is to promote inter- 
 national commerce, to facilitate the commercial inter- 
 course of nations, to secure harmony of action on all in- 
 
THE INTERNATIONAL TRADE CONFERENCE 463 
 
 ternational questions involving commerce and industry, 
 and to promote peace, progress and cordial relations be- 
 tween the countries and their citizens by the co-opera- 
 tion of business men and their associations devoted to the 
 development of commerce and industry." 
 
 The meeting thereupon adjourned until Tuesday, Octo- 
 ber 21, at 10 A. M., for a joint session with the repre- 
 sentatives on the committee from Belgium, France, Great 
 Britain and Italy. 
 
 W. G. G. BENWAY, Assistant Secretary, 
 
 JOINT COMMITTEE. 
 
 Minutes of the proceedings of a meeting of the Joint 
 Committee on Permanent Organization, held at the Tray- 
 more Hotel, Atlantic City, New Jersey, on Tuesday, Octo- 
 ber 21, 1919, at 10 A. M. 
 
 There were present: 
 
 Repreenting the United States. 
 
 JOHN EL FAHEY, Chairman. 
 
 S. C. MEAD, Vice Chairman and Secretary. 
 
 W. G. G. BENWAY, Assistart Secretary. 
 
 JOHN J. ARNOLD. 
 
 EDWARD A. FILENE. 
 
 WILBUR J. CARR. 
 
 ALBA B. JOHNSON. 
 
 PHILIP B. KENNEDY. 
 
 EDWARD G. MINER. 
 
 GEORGE RUBLEE. 
 
 ROBERT P. SKINNER. 
 
 GEORGE ED. SMITH. 
 
 Representing Belgium. 
 
 M. CANON-LEGRAND. 
 
 PROF. PAUL VAN DEN VEN. 
 
 Representing France. 
 M. TIRMAN. 
 
 M. JULIEN POTIN. 
 M. GODET. 
 
 M. EDOUARD DOLLEANS. 
 
464 THE INTERNATIONAL TRADE CONFERENCE 
 
 Representing Great Britain. 
 
 SIR ARTHUR SHIRLEY BENN. 
 SIR JAMES HOPE SIMPSON. 
 MR. FRANK MOOBE. 
 MR. GEORGE BERKES, Secretary. 
 
 Representing Italy. 
 
 COMMANDER DOMENICO GIDONI. 
 COMMANDER PIETRO GIOVANNI LAZZERINI. 
 CHEVALIER GIOVANNI FUMMI. 
 COMMANDER DR. AUGUSTO JACCARINO. 
 Together with MESSRS. SOLARI, SCARAMELLI DE Cicco 
 and BONASCHI as advisors. 
 
 The meeting was called to order by Mr. Fahey, acting 
 chairman, of the American Committee, who reported that 
 because of duties in connection with the Industrial Con- 
 ference, now in session in Washington, Mr. Harry A. 
 Wheeler, the Chairman of the Committee, was unable to 
 be present. Mr. Fahey made a preliminary statement 
 regarding the purposes for which the Committee was 
 created, and the desirability and necessity for the estab- 
 lishment of some appropriate type of permanent inter- 
 national commercial organization as the result of the Con- 
 ference now taking place. 
 
 The Chairman's statement was followed by remarks 
 made by M. Cannon-LeGrand, relative to the importance 
 of this matter. M. LeGrand inquired whether or not 
 the American Committee had drafted a proposed concrete 
 plan in any degree of detail. 
 
 The Chairman replied that the American Committee 
 had been considering principles only, and that they had 
 purposely refrained from drawing up a detailed plan of 
 application of such principles in order that there might 
 be full opportunity for free interchange of ideas in the 
 joint committee meeting before the formation of detailed 
 plans. The Chairman thereupon outlined the seven prin- 
 ciples or topics considered by the American Committee, 
 and set forth in detail in the minutes of the meeting of 
 the American Committee, held on October 20th, 1919. 
 
THE INTERNATIONAL TRADE CONFERENCE 465 
 
 M. LeGrand stated that the Belgian, French and Ital- 
 ian Committees had discussed the subjects of permanent 
 organization, and joined in suggesting for consideration 
 the following draft of a basis for organization: 
 
 "This organization is not to be a Government Organi- 
 zation. 
 
 I. AIMS: 
 
 (a) To create an information bureau, which will cen- 
 tralize all economic data: Respective needs, present pro- 
 duction and future possibilities of each country. 
 
 (b) To act as an organ of independent coordination, 
 which will suggest trade regulations and legislative 
 measures, that will facilitate and encourage the develop- 
 ment of economic intercourse. 
 
 (c) To inform public opinion through the views of 
 technical experts and business men. 
 
 (d) To put at the disposal of all official organizations 
 the whole documentation prepared by those experts and 
 business men. 
 
 II. ORGANIZATION: 
 
 (a) This organization will consist of the following ele- 
 ments : 
 
 1. An international bureau will be located at the seat 
 of the organization, and will consist of two delegates 
 from each nation, plus two sub-delegates, who will col- 
 laborate with technical assistants. 
 
 2. There will be a corresponding National Bureau in 
 each country, which will be in constant relations with the 
 International Bureau. 
 
 (b) This organization may include all countries that 
 are members of the League of Nations, but subject to 
 election. 
 
 (c) To each country will be left the designation of its 
 own representatives, so that the representatives will actu- 
 ally reflect the economic forces at work in their respec- 
 tive country. 
 
 (d) A general meeting will take place every two years 
 in one of the countries belonging to this Association. The 
 views exchanged there will permit the representatives of 
 the various countries to compare experiences and dis- 
 cuss reforms that may be in order. 
 
466 THE INTERNATIONAL TRADE CONFERENCE 
 
 In case of emergency, the Bureau may summon a meet- 
 ing by giving three or four months notice. 
 
 Eventually, votes may be taken by post and resolution 
 taken if two-third members vote for. 
 
 The Bureau may always, if it finds it useful, call for a 
 meeting of specialist members. 
 
 III. EXPENSES. 
 
 The expenses of the International Bureau will be borne 
 by each Nation in the same proportion as in the Inter- 
 national Postal Bureau of Berne. 
 
 IV. SEAT OF ORGANIZATION : 
 
 It is desired that the seats of the permanent organiza- 
 tion be located in (to be determined). 
 
 A joint Committee will be charged to prepare a com- 
 plete plan of organization to be submitted to a special 
 Congress next year, to which the actual five Nations rep- 
 resented in Atlantic City will send invitations." 
 
 The items contained in this draft were then discussed 
 seriatim : 
 
 After a very frank and free discussion and considera- 
 tion, it was the consensus of opinion that membership in 
 the League of Nations should merely determine eligibility 
 for membership in the new organization: 
 
 That the initiation and perfection of the organization 
 should rest in the five countries represented in this gath- 
 ering : 
 
 That the perfection of organization in each country 
 should be left to that country, because of the difference 
 in conditions in the various countries : 
 
 That it is preferable that the regular meetings should 
 be biennial, and that there be provision for calling of 
 special meetings and for some form of referendum system 
 to be available in the interim between meetings : 
 
 That, there should be a preliminary organization 
 effected at this gathering to formulate detailed plans of 
 permanent organization for presentation at a first meet- 
 ing to be called by the Committee and held in 1920 : 
 
 That, each country should finance its own Bureau and 
 
THE INTERNATIONAL TRADE CONFERENCE 467 
 
 proportionally, contribute to the financial support of the 
 International Bureau, either upon the basis of population, 
 or in the ratio in which support is given to the Interna- 
 tional Postal Union, or upon some other appropriate 
 basis ; 
 
 That, provisions should be made for invitation to other 
 selected nations to participate in the first organization 
 meeting : 
 
 The subject of compensation of executive officers was 
 discussed, and it seemed to be the consensus of opinion, 
 that the administrative officers or bureau heads, who 
 would be permanently engaged in the International Bu- 
 reau work, should be adequately compensated, but that 
 the executive officers, such as president or chairman, 
 should not receive compensation. 
 
 Discussion also ensued in reference to the seat of the 
 International Bureau of the permanent organization. No 
 conclusion on this matter was reached. 
 
 It was moved by M. Tirman, duly seconded and unani- 
 mously carried, that there be a sub-committee of this 
 Committee, consisting of two of the representatives from 
 each of the five countries, to which Committee shall be 
 referred the principles above set forth, and which Com- 
 mittee, in the light of the discussion at this meeting, shall 
 prepare a report on permanent organization, based upon 
 the principles set forth above, and that the report thus 
 to be prepared be presented to the general Conference, 
 between the Committee on Permanent Organization, and 
 all other Committees of the Convention to be held this 
 evening. 
 
 The members representative of the respective countries 
 announce the selections for membership in the sub-com- 
 mittee, to prepare the report : 
 
 GREAT BRITAIN. 
 
 SIR ARTHUR SHIRLEY BENN. 
 MR. FRANK MOORE. 
 
468 THE INTERNATIONAL TRADE CONFERENCE 
 
 FRANCE. 
 
 M. TlRMAN. 
 
 M. EDOUARD DOLLEANS. 
 
 BELGIUM. 
 
 M. CANON-LEGRAND. 
 
 PROF. VAN DEN VEN. 
 
 ITALY. 
 
 CHEVALIER FUMMI. 
 COMMANDER JACCARINO. 
 
 UNITED STATES. 
 
 JOHN H. FAHEY. 
 
 JOHN J. ARNOLD. 
 
 S. C. MEAD, Secretary. 
 
 MEETING OF THE COMMITTEE ON PERMANENT 
 ORGANIZATION, OCTOBER 21. 
 
 The meeting was called to order, at 8:30 o'clock, p. m., 
 Mr. Alfred Bedford presiding. 
 
 The Chairman: Gentlemen, you see from the lists of 
 committees that ex-President Harry A. Wheeler is the 
 Chairman of the Committee on Permanent Organization. 
 You all know that Mr. Wheeler is detained in Washing- 
 ton, on account of his very important duties there, in 
 connection with the Conference now going on, he being 
 the chairman of the group representing the manufac- 
 turers of the United States, called by the President. In 
 Mr. Wheeler's absence, I asked Mr. Fahey, if he would 
 act as chairman of the Committee. The Committee has 
 been in session several times to give this matter most 
 careful consideration, and I now ask Mr. Fahey to re- 
 port to the Committee, and also to act as chairman of this 
 meeting. 
 
 Mr. Fahey: Gentlemen, as Mr. Bedford has explained, 
 your Committee on Permanent Organization, consists of 
 
THE INTERNATIONAL TRADE CONFERENCE 469 
 
 a certain number of members appointed to represent the 
 United States, and some three to five members represnt- 
 ing each of the foreign missions has been giving this mat- 
 ter consideration, and this evening, is prepared to pre- 
 sent to you a tentative report as the result of their de- 
 liberations. 
 
 The question of international organization of business 
 men and financial interests of the world, is obviously ex- 
 citing more attention and receiving more consideration 
 today than ever before in our history, and for evident 
 reasons. The war has resulted in bringing us closer to- 
 gether in many respects. It is developing problems that 
 we never before anticipated. Out of it is growing some 
 new relations of the nations, which must, in the natural 
 order of things, have to do with the development of the 
 economic welfare of the several countries of the world 
 represented in that league. 
 
 Beginning with something like a dozen years ago, sev- 
 enteen years ago, to be exact, there was in existence the 
 International Congress of Commercial and Industrial As- 
 sociations developed in Europe. It progressed rapidly for 
 some years without very much attention from the busi- 
 ness men and business organizations of the United States. 
 Its inception came from that splendid little country, Bel- 
 gium. The man on whom the International Organiza- 
 tion of Businessmen, was most dependent, is one of the 
 distinguished members of the Belgium Delegation, whom 
 we have with us on the occasion of this International Con- 
 ference, I refer to M. Canon Legrand, who for 15 or 16 
 years, carried forward the lamp of progress so far as 
 international commercial organization is concerned. Other 
 economic interests have long seen the necessity for effi- 
 cient organization, and have been ever willing to supply 
 the necessary resources, its usual payment for business- 
 men, those most able to perfect the best kind of organi- 
 zation to fail to support their organization internationally 
 as they should. The international courts of Chamber of 
 Commerce in the last six years of its existence showed re- 
 markable progress. The Congress at London in 1910 was 
 
470 THE INTERNATIONAL TRADE CONFERENCE 
 
 most successful. It was followed by the Congress at 
 Boston when we persuaded them to come to this country 
 in 1912, and finally, in 1914, it reached the peak of its 
 achievements at the splendid Congress held in Paris in 
 that year attended by something like 1,800 or around 
 2,000 delegates. If my memory serves me rightly that 
 Congress was held under the auspices of the French Gov- 
 ernment and was liberally supported and encouraged by 
 that Government. It was held under the most auspicious 
 circumstances and was most successful in its results. On 
 that occasion also much attention was given to the idea 
 of better organization and a further development of this 
 international chamber, but unfortunately, the interven- 
 tion of war prevented the carrying out of those plans. 
 This last spring the members of the permanent commit- 
 tee, or what we know in this country as a board of di- 
 rectors of the International Congress met in Paris to 
 survey the situation and to consider what steps should 
 now be taken toward its further reorganization and de- 
 velopment; and it was agreed out of the discussions at 
 that time that as a first step the leading commercial na- 
 tions of the world which had fought together in this late 
 great war should first meet and clear their ideas on this 
 as well as other subjects. The result is this splendid con- 
 ference in which we are now participating, and one in- 
 cident of it has been this discussion of permanent organi- 
 zation along broader lines. 
 
 The committees appointed to represent the several na- 
 tions began their sessions and the exchange of ideas and 
 soon found that our friends from Europe have been think- 
 ing along rather more advanced lines, or in more definite 
 form than we have ; and so today we were able to arrive 
 at an agreement as to a tentative plan and method. It 
 should interest you to know that first of all our minds 
 were in absolute accord as to the nature of the interna- 
 tional organization and the fact that advantage to be 
 taken of this meeting to take the necessary steps to per- 
 fect it, and so, as a result of these transactions I am 
 privileged to present, on behalf of the committee,for your 
 
THE INTERNATIONAL TRADE CONFERENCE 471 
 
 consideration and discussion this unanimous report of 
 the committee: 
 
 REPORT OF COMMITTEE. 
 
 Your Committee on Permanent Organization begs to 
 report that it has given careful consideration to the sub- 
 ject referred to it and, by unanimous action, joins in 
 making the following recommendations: 
 
 I. That the need of more comprehensive organization 
 of the commercial and financial interests of the various 
 nations is imperative and that the present International 
 Trade Conference should serve as the foundation on 
 which to construct a permanent organization. 
 
 II. Your committee has adopted and recommends th^ 
 following statement of general purpose of the organiza- 
 tion: 
 
 "The purpose of the organization is to promote inter- 
 national commerce, to facilitate the commercial inter- 
 course of nations, to secure harmony of action on all in- 
 ternational questions involving commerce and industry, 
 and to promote peace, progress and cordial relations be- 
 tween the countries and their citizens by the cooperation 
 of business men and their associations devoted to the de- 
 velopment of commerce and industry." 
 
 III. Your Committee believes the specific aims of the 
 organization should be : 
 
 (a) To create a permanent international headquar- 
 ters which will centralize all data concerning economic 
 subjects and social conditions; the facts relating to the 
 respective needs, present productions and future possi- 
 bilities of each country. 
 
 (6) To act as an instrument of coordination which will 
 suggest trade regulations and legislative measures to 
 facilitate and encourage the development of economic in- 
 tercourse. 
 
 (c) To inform public opinion through the publication 
 of facts concerning business conditions and through dis- 
 semination of the views of technical experts and business 
 men. 
 
 (d) To put at the disposal of all official organizations 
 the reports and conclusions prepared by those experts 
 and business men. 
 
 IV. Organization: Your Committee presents the fo!- 
 
472 THE INTERNATIONAL TRADE CONFERENCE 
 
 lowing tentative suggestions as the basis for a plan of 
 organization : 
 
 (1) A board of directors of two members selected by 
 each nation. In the event of the inability of such direc- 
 tors to attend the meetings they shall be represented by 
 an equal number of alternates. 
 
 The board of directors shall have general charge of 
 the business of the organization, supervision of its poli- 
 cies and direction of the activities of the international 
 headquarters and its staff. It shall determine the ques- 
 tions to be placed upon the agents for all meetings. 
 
 (2) An international headquarters shall be located at 
 the seat of the organization. One representative of each 
 member nation shall be attached to the international head- 
 quarters and shall be resident at the seat of organiza- 
 tion and may have such necessary technical assistants as 
 the board of directors may determine. 
 
 (Let me divert a moment there to explain that the pur- 
 pose is a permanent international bureau at which each 
 nation shall have a permanent resident representative 
 or general secretary; that these secretaries may have 
 such technical assistance as may be recommended by their 
 organization and approved by the board of directors, 
 thus providing continuous machinery, always available 
 to the business interests of the nation.) 
 
 (3) There shall be a corresponding national bureau in 
 each country, which will be in constant relation with the 
 international headquarters. 
 
 (b) This organization may include all countries that 
 are members of the League of Nations, but subject to 
 election by the board of directors. 
 
 (c) The membership of the organization shall consist 
 of chambers of commerce, commercial organizations, 
 banking associations, and similar associations, the votes 
 of which shall determine all questions of poilcy. Firms, 
 corporations and individual bankers or business men 
 shall be eligible to admission as associate members by 
 vote of the board of directors and under regulations to be 
 prescribed by the directors. Such associate members 
 shall be entitled to receive the reports and bulletins of the 
 organization and shall be privileged to attend meetings. 
 
 (d) In any nation having a national board or organi- 
 zation of its commercial interests the members of the 
 board of directors shall be chosen by that organization. 
 In countries where such national board or organization 
 does not exist the plan of permanent organization to be 
 
THE INTERNATIONAL TRADE CONFERENCE 473 
 
 later prepared shall recommend some equitable method 
 for choice of directors. 
 
 (To explain : Your Committee, as it discussed the details 
 of this plan found, of course, that it was quite impossible 
 to evolve in detail the type of organization finally neces- 
 sary. There are great differences between the organiza- 
 tions in the various countries. Some, of them have na- 
 tional functions of their organizations as we have in our 
 Chamber of Commerce of the United States ; others have 
 smaller and more concentrated boards. In some coun- 
 tries the organizations of business men are partly official 
 and partly private. The desire was that the selections of 
 members of the board of directors, or governing body of 
 the International should be chosen by the proper repre- 
 sentative national board, if one existed, as being a more 
 representative choice and providing a more convenient 
 way of selection; but it was recognized that that ma- 
 chinery was not available in all countries. It is impos- 
 sible at the moment to say what method may well be pur- 
 sued for the selection of directors in countries having no 
 national organization, and so it was agreed in the com- 
 mittee that that was a detail that might well be left for 
 your committee on organization, as provided for, to work 
 out in some circumstances.) 
 
 (e) The regular meetings of the general membership 
 of the organization shall be held at intervals of two 
 years, except that provision shall be made for the calling 
 of special meetings when necessary. At such interna- 
 tional conferences each organization represented in the 
 membership shall be entitled to send not more than five 
 delegates, who shall have the privilege of discussing all 
 questions presented to the Congress. 
 
 (The view was held by some that it ought not to be more 
 than two or three, on the ground that the Congress would 
 otherwise become unwieldy to control. The view was 
 that in a great international meeting of this sort it was 
 wise to have various business interests represented, not 
 merely manufacturing and commerce, foreign commerce, 
 let us say, but that every type of business should have 
 representation, or opportunity for representation. But 
 since that was a detail calling for further consideration 
 we agreed that the wording might well be: "Not more 
 than five delegates," leaving the way open for further 
 recommendation by a committee which would be able to 
 give further time to the subject.) 
 
 (/) In taking a vote at the Congress each delegate 
 shall be entitled to one vote. The vote shall be taken in 
 
474 THE INTERNATIONAL TRADE CONFERENCE 
 
 the first instance by a show of hands and the questions 
 shall be decided by a majority of the votes recorded; pro- 
 vided, however, that delegates representing any two coun- 
 tries may ask for a vote by nations, in which case any 
 decision previously recorded shall be final if the resolu- 
 tion proposed by the majority of the delegates is ratified 
 by a majority of the countries. 
 
 (The question of voting in such a way as to protect the 
 interests of all countries and leave the way open to no 
 injustice is not an easy one to adjust; because of varying 
 conditions it is obviously wise that the views of such a 
 great international gathering should be taken as promptly 
 as possible; and yet, if it be by a show of hands or vive 
 voce vote, some provision must be given for the safe- 
 guarding of interests of nations; and votes would not, 
 after all, be useful or of advantage unless they repre- 
 sented a general concensus of opinion. Therefore, our 
 committee reported this, which you will understand, after 
 all, is a tentative suggestion for deliberations on the sub- 
 ject may result in an even better plan, but that particular 
 difficulty must somehow be met, as you will realize.) 
 
 (g) In all countries having a national board or organi- 
 zation of the commercial and financial interests, the ap- 
 plications for membership in the international organiza- 
 tion shall be passed upon and approved by the national 
 board of organization. 
 
 (The purpose 01 that, gentlemen, was this : If no check 
 of that sort is provided the way is open for all kinds of 
 organizations, great and small, whether their purpose be 
 really serious or not, to have a place in your international 
 organization. Certainly its force and strength will de- 
 pend upon its character and its hands could well be weak- 
 ened if its membership were not guarded with some care. 
 At least the opinion of the committee was that if the duly 
 constituted board of organization of the country was 
 ready to recommend any applicant for membership that 
 would assuredly furnish a safe basis for admission. 
 Otherwise there might be some difficulty, as there has 
 been on occasions in the past in the International, where 
 men who were going abroad and were merely tourists 
 and visitors attended sessions and added nothing to the 
 strength of the deliberations or the character of the 
 gathering, and that needs to be safeguarded.) 
 
 (h) The Committee on Permanent Organization shall 
 consider, and, if possible, report as a part of a permanent 
 plan of organization some practical method of securing 
 the opinions of the members of the organization on im- 
 
THE INTERNATIONAL TRADE CONFERENCE 475 
 
 portant international questions in the intervals between 
 the meetings of the Congress. 
 
 (That is a subject that has been given attention for 
 some years by those who have been giving thought to this 
 subject. You know the success with which we have de- 
 veloped the referendum system for the recording of votes 
 in our organization in this country. It was felt that 
 consideration of the project and further study than it 
 would be possible to give in hurried meetings now might 
 result in the development of some scheme, the adoption 
 of which would make possible securing the business opin- 
 ion of the world between the two-year periods of inter- 
 national meetings.) 
 
 (i) The Committee on Permanent Organization shall 
 also report a recommendation as to the location of the 
 permanent headquarters. 
 
 (On that article there was some discussion in our com- 
 mittee, the view being held on the one hand that probably 
 it would be wise to have the permanent headquarters of 
 this organization in close proximity to the headquarters 
 of the organization of the League of Nations, perhaps in 
 the same city. However, that headquarters is not per- 
 manently fixed. There was the view in your committee 
 that that subject also should be given further consider- 
 ation and should be a matter of later report.) 
 
 V. Temporary Organization: It is the recommenda- 
 tion of your Committee tnat the nations represented in 
 this Conference, namely, Great Britain, France, Belgium, 
 Italy and the United States, shall constitute a temporary 
 organization, and that a joint committee be appointed 
 representative of these nations to prepare a plan for per- 
 manent organization; that as soon as practicable a meet- 
 ing be called by the Committee on Organization of the 
 representatives of such nations as they may unanimously 
 determine to invite, at which meeting the plan for perma- 
 nent organization shall be presented for adoption in final 
 form. 
 
 (Now a word on that: There should be a permanent 
 organization to take these suggestions and work them 
 out into a plan for permanent organization; that the 
 members of the present International Trade Conference 
 constitute themselves as the foundation of the interna- 
 tional organization, really temporary organization, and 
 when ready they shall invite other nations to join with 
 them in a meeting to discuss a permanent plan, accept it 
 and to begin the operations of the permanent organiza- 
 tion.) 
 
476 THE INTERNATIONAL TRADE CONFERENCE 
 
 Your Committee recommends that the delegates in this 
 Conference from each of the five countries shall select 
 immediately two members of a joint committee on per- 
 manent organization to present a complete plan of or- 
 ganization for submission as provided above. 
 
 Respectfully submitted, 
 
 United States : 
 
 JOHN J. ARNOLD. 
 WILBUR J. CARR. 
 EDWARD A. FILENE. 
 MYRON T. HERRICK. 
 ALBA B. JOHNSON. 
 PHILIP B. KENNEDY. 
 EDWARD G. MINER. 
 GEORGE RUBLES. 
 
 F. A. SEIBERLING. 
 ROBERT P. SKINNER. 
 GEORGE ED SMITH. 
 JOHN H. FAHEY. 
 
 S. C. MEAD. 
 Belgium : 
 
 M. CANNON-LEGRAND. 
 
 M. VAN DEN YEN. 
 
 M. DE GROOTE. 
 France : 
 
 M. TIRMAN. 
 
 M. JULIAN POTIN. 
 
 M. GODET. 
 
 M. DOLLEANS. 
 
 Great Britain : 
 
 SIR ARTHUR SHIRLEY BENN. 
 
 SIR JAMES HOPE SIMPSON. 
 
 MARSHALL STEVENS, M. P. 
 
 BAILIE JOHN KING. 
 
 FRANK MOORE. 
 Italy: 
 
 B. ATTOLICO. 
 
 D. GIDONI. 
 
 V. MENEGHELLI. 
 
 P. G. LAZZERINI. 
 
 G. FUMMI. 
 
 A. JACCARINO. 
 SIG. OLDRINI. 
 P. DE CIGGO. 
 
THE INTERNATIONAL TRADE CONFERENCE 477 
 
 F. QUATTRONE. 
 
 G. GRANATA. 
 L. SOLARI. 
 L. PERERA. 
 
 G. B. CECCATO. 
 0. ROSSATI. 
 SIG. SERRATI. 
 
 Gentlemen, that is the report of your committee for 
 such consideration and discussion as you wish to devote 
 to it. Let me add in conclusion that the one fundamental 
 thing which members of your committee are impressed 
 with is this: That with the present needs of the world 
 the time is now, and the opportunity is now, for us to 
 take progressive steps in this direction. The very fact 
 that you are gathered here to deal with present-day prob- 
 lems is sufficient evidence of the fact that you are men 
 of action. As business men we constantly hold ourselves 
 responsible for action when the opportunity is ripe, when 
 we are prepared for action; and so your committee pre- 
 sents this plan with apologies for the fact that we recog- 
 nize it as incomplete in many directions ; that it calls for 
 refinement and for development, but we believe that if wo 
 may soon make a beginning while our guests from 
 Europe are still in this country that we can take further 
 steps toward its evolution before they leave and that 
 within a short time we will be prepared to call others to 
 join with us and to take steps to make this a real, living 
 aggressive and useful thing. 
 
 Perhaps members of some of the delegations from 
 abroad have some ideas with reference to this subject 
 which they would like to present to you and likewise that 
 there may be some members of our own committees who 
 would be interested to ask questions or say a word on the 
 subject, and it would be my pleasure to recognize any of 
 you who are prepared to say a word. Perhaps it might be 
 in order indeed I think it would be most fitting that 
 the particular man who has contributed most in this di- 
 rection and whom we must all recognize, should say a 
 word to us on this subject. The business men of every 
 
478 THE INTERNATIONAL TRADE CONFERENCE 
 
 country in the world are under the greatest obligations 
 to M. Canon-Legrand. 
 
 REMARKS OF M. CANON-LEGRAND. 
 
 Mr. Chairman and Gentlemen: Excuse me if I cannot 
 speak English as well as I could wish in order to thank 
 you for the good feelings you have just expressed to- 
 ward me. I want expressly to thank Mr. Fahey for the 
 good words he said of me and to express our feelings of 
 good will toward Mr. Wheeler, who is absent for the mo- 
 ment and whom I had occasion to know seven years ago. 
 
 As Mr. Fahey has told you, the work of the Interna- 
 tional Congress of Chambers of Commerce was initiated 
 in Belgium about 14 years ago. It was in Liege, in 1905, 
 that for the first time we in Belgium had the idea to con- 
 voke the members of the Chambers of Commerce of the 
 Netherlands and of the world, if possible. After this 
 meeting in Liege, and the following year we had our sec- 
 ond meeting of Chambers of Commerce in Milan and 
 there we had the pleasure of seeing about 300 members 
 in attendance. Two years later we went to Bohemia, 
 and there the attendance was still greater, being about 
 500. Two years later we were in London where our 
 Congress was attended by about 600 members ; and it was 
 in London for the first time that we had the pleasure of 
 meeting what I may call our friends of America. I re- 
 member in London Mr. Filene came with some business 
 friends to invite the Congress to hold its next session in 
 America, in Boston. Of course we accepted that in- 
 vitation and two years later we were in Boston. It is a 
 great pleasure for me to recall the reception given us 
 when we landed in your country seven years ago. Your 
 reception of us was so great,, so large, so sympathetic, 
 that it has always lingered with us and always will. We 
 were marvelously received and after that reception at 
 Boston we had the pleasure of making a trip about the 
 same as that on which we are to start next week. But 
 I am sure that after seven years we will find many new 
 
THE INTERNATIONAL TRADE CONFERENCE 479 
 
 things in your country, because America is always doing 
 greater and greater things. We in Europe marvel at the 
 height of your buildings and the length of your bridges. 
 I am sure that after the lapse of seven years we are to 
 see still more wonderful things than we did then. 
 
 As I remember it, at that Congress in Boston we had 
 an attendance of about 1,000 members. Two years later 
 we went to Paris and had about 2,000 members. You see 
 the work which had been done. Its beginnings were 
 rather modest, but we feel like you, that the circum- 
 stances of wars have changed things and that our modest 
 work in the matter of international congresses of cham- 
 bers of commerce, which met every two years, was not 
 enough and that there must be special relations between 
 nations, especially to begin amongst the nations which 
 have fought together and won the victory together; and 
 we quite agree to the proposition which was made that, 
 during the intervals between the congresses, it was neces- 
 sary to keep all the nations in close contact. That is the 
 reason of the article of the report read by Mr. Fahey to 
 the effect that during that period there must be found 
 some way of taking a referendum in order to act in a con- 
 tinuous manner about the great economic and social ques- 
 tions. Those reasons, gentlemen, are the reasons why a 
 new structure is now necessary and we are quite sure 
 that the warm reception you Americans have given to the 
 idea will aid the progress of our work and create an in- 
 stitution that will make for the future welfare of hu- 
 manity. 
 
 Mr. Fahey: Gentlemen,, I am sure that M. Schneider, 
 of the French Delegation, will want to say a word on this 
 subject. 
 
 REMARKS OF M. EUGENE SCHNEIDER. 
 
 Gentlemen, I was quite unprepared to speak tonight on 
 this most interesting subject, but I must observe that 
 perhaps I am not quite a stranger to this question, for 
 while we were crossing the ocean M. Canon-Legrand was 
 
480 THE INTERNATIONAL TRADE CONFERENCE 
 
 relating to me some of the things that happened in the 
 Congress in Paris. He told me that this Congress was 
 the occasion of the meeting of many members of the dif- 
 ferent countries. While I was not present in my own 
 country at the time of the conference in Paris yet my 
 people received that Congress in my works at Creusot. 
 M. Canon-Legrand reminded me the other day that some 
 of the members of that Congress were Germans. I had 
 the opportunity of giving them a bird's eye view of the 
 guns, the effectiveness of which they were to learn a few 
 years later. 
 
 While we have been speaking of war weapons I think 
 this Congress is going to be a striking, and most inter- 
 esting and most useful peace weapon. One of the things 
 that impressed itself upon me most forcibly is this sen- 
 tence in the first page of the report : 'The purpose of the 
 organization is to promote international commerce, to 
 facilitate the commercial intercourse of nations, to secure 
 harmony of action on all international questions involv- 
 ing commerce and industry, and to promote peace, 
 progress and cordial relations between the countries." 
 Personally I think and believe that one of the most lasting 
 effects will be the promotion of peaceful ideas. We must 
 observe that during the past few generations most of the 
 difficulties between nations have come from economic mis- 
 understandings. Therefore I affirm and believe that if 
 we may, in a peaceful manner and in a friendly way, talk 
 over all those matters before they come to a difficult point 
 we may do a wonderful work towards the preservation of 
 peace. 
 
 I think a great change has been made in the ideas of 
 relations between countries. Just a few days before I 
 left Paris I was received by the President of the Republic 
 and I was received by our Premier, M. Clemenceau, and 
 both of them told me that they understood and distinctly 
 knew that in the future the business men were going to 
 interfere in political matters, and M. Clemenceau told me 
 that we were the modern type of ambassadors. 
 
 Gentlemen, I will not detain you longer, but I want to 
 
THE INTERNATIONAL TRADE CONFERENCE 481 
 
 thank our American friends for the splendid idea that 
 prompted them to include this question among the 
 various matters we wanted to discuss. I think that of the 
 different questions we have had to consider this will cer- 
 tainly be one of the more lasting and most useful. 
 
 The Chairman: It might interest you to know in re- 
 gard to M. Schneider's reference to the visit of the last 
 International Congress to his magnificent plant at 
 Creusot, that there were some ninety odd German dele- 
 gates present at that conference; that one of the most 
 interesting and inspiring things that we saw during the 
 trip, which was taken under the auspices and at the in- 
 vitation of the French Government was the exhibition of 
 modern artillery to which he refers. Moreover, the fact 
 that the entire plant was thrown open for view without 
 the slightest hesitation, in great contrast to visits that 
 perhaps some of us have had in past years to Krupp's 
 and to similar plants. I well remember that following 
 that day at Creusot, on the way south on the train, the 
 comment was freely made on the part of the men who 
 were present that it was a fine thing that the work of the 
 great Creusot plant was not confined to the making of 
 artillery and ammunition, but to other and more useful 
 things,, and that surely the day was not far distant when 
 there would be no neceessity for creating engines of war 
 when the entire production could be turned to articles of 
 peace. In less than thirty days, gentlemen, we were on 
 the eve of war. 
 
 Mr. Fahey: We wish to hear a word from our col- 
 leagues from Italy on this particular subject and I am 
 confident that Commander Quartieri would like to say a 
 word to us. 
 
 Capt. Lazzeini: The Commander says that with your 
 permission he would like to have Signor Mylius speak in 
 his stead. 
 
482 THE INTERNATIONAL TRADE CONFERENCE 
 
 REMARKS OF COMMANDER GIORGIO MYLIUS. 
 
 M. Mylius: I take pleasure in addressing you, gentle- 
 men, and I am glad I am here with this new organization 
 and hope to be at any future meeting of the association. 
 I came to the meeting of the Chamber of Commerce in 
 Brussels and to that of Paris in 1914. I have already 
 been in our international organization and I can appre- 
 ciate all the benefit which one can receive from it. The 
 International Federation of Manchester, on whose board 
 of directors I have sat eight or nine years, has journeyed 
 all the world round to have congresses, from Manchester 
 down to Egypt and then in America and all over Europe, 
 and intercourse at those Congresses in the form of social 
 gatherings brings great benefit with it, the intercourse of 
 business men of the different nations and the particular 
 people who are living in the nation in which the Congress 
 is held, who gather, of course, more numerously. 
 
 I have heard with pleasure how the rules have been 
 drafted and I think they will be very successful, and I 
 can only wish that the organization should be promptly 
 organized and put in order. 
 
 Mr. Fahey: The experience of Sir Arthur Shirley 
 Benn, chairman of the British Delegation,, in interna- 
 tional organizations, and his interest in the subject is 
 such I know that we could not prevent him from saying 
 a word on this subject. I take great pleasure in calling 
 upon Sir Arthur Shirley Benn. 
 
 Sir Arthur Shirley Benn: Mr. Chairman, you have 
 been kind enough to say that you cannot prevent me from 
 saying a word. I am afraid I have said more than a word 
 or two already, but Bailie John King, who comes from 
 Scotland, would be glad to say a few words to you in be- 
 half of our delegation. 
 
 REMARKS OF MR. BAILIE JOHN KING. 
 
 Mr. Chairman and Gentlemen: I understood that I was 
 to supplement what Sir Arthur intended to say. How- 
 ever, I am glad to be present here with reference to tho 
 
THE INTERNATIONAL TRADE CONFERENCE 483 
 
 particular matter that is now engaging our attentian. I 
 think of all the subjects which have come before us a. 
 this time that none is more important or is charged with 
 greater possibilities than this arrangement which we 
 are seeking now to make and the meetings which have 
 been forecasted in the draft arrangement which is now 
 before us. 
 
 Gentlemen, we here have all had painful experience. 
 It is wonderful that the painful things of this world often 
 produce the very best results. Gray mornings are often 
 the precursors of brightest days; and weeping springs 
 are followed by sunny summers and autumns of richest 
 harvests. And so, in the business as in the natural world, 
 they who sow in tears shall reap in joy. We have gone 
 through painful experiences. The blood of many related 
 to all of us here has dyed the ground in France and Bel- 
 gium, and now out of that welter I trust will come, under 
 the auspices of this great nation who has been our host 
 in these past days, such a structure of peace that will 
 bring prosperity and amity to the nations, and that we 
 shall have cause to remember Atlantic City as being the 
 birthplace of one of the greatest institutions the world 
 has ever seen, such an institution as will bar these con- 
 flicts which have dyed the heather with blood. 
 
 Mr. Fahey: I am sure there must be among the mem- 
 bership of some of our own committees some gentlemen 
 who have an interest in this subject and who would like 
 to say something on it and the chair desires to say that 
 the meeting is open for discussion of all questions or for 
 any remarks on the subject as a whole which you care to 
 make. I wonder if Mr. Alba Johnston does not wish to 
 say a word to us on this subject? 
 
 Mr. Johnston: I will give place to our honored friend 
 Mr. Farquhar. 
 
 Mr. Fahey: Mr. Farquhar, Mr. Johnston suggests that 
 we ought to have a word from you. 
 
 Let me say, gentlemen, that Mr. Farquhar is an hon- 
 orary vice-president of the Chamber of Commerce of the 
 United States and is one of the members of our board of 
 
484 THE INTERNATIONAL TRADE CONFERENCE 
 
 directors, a man who, through his life, has contributed 
 to the business progress and commercial prosperity of 
 our country and has done his full share in building up the 
 organization machinery of the United States Chamber 
 of Commerce. Mr. Farquhar, of York, Pennsylvania. 
 
 REMARKS OF MR. A. B. FARQUHAR. 
 
 Mr. Chairman and Gentlemen: It has certainly been a 
 very great pleasure to meet you all here. I was in 
 Europe just before the war broke out on a semi-govern- 
 ment mission through France, Belgium, Germany, Bo- 
 hemia, Austria,, and the Balkans, and while there in the 
 Balkans the war commenced. I did not hear a single 
 person in France or Belgium, or Germany, or Austria 
 speak the word war, although I passed from Austria into 
 the Balkans just about ten days before it commenced. It 
 did not seem that the masses of the people had any idea 
 that this great war could come, and from it I am led to 
 believe that it is the work of the military spirit which I 
 think is going to be silenced forever by this League of Na- 
 tons. But commerce has done more to bring peace than 
 any other cause. It brings peace and enlightenment. 
 Without commerce the world would still be living in 
 caves, dressing skins; there would be no intercourse, no 
 improvement, no advancement. It is commerce, inven- 
 tion and manufacture, that has advanced the world and 
 made it what it was. As M. Schneider said, Clemenceau 
 told him that men of commerce, men of business, will be 
 the diplomats. I think the time has come now, when we 
 should have an able man of business, at least one with 
 intelligent business methods to take the helm of state, 
 and direct the affairs of recuperation. It is very certain 
 this waste of war can only be compensated for and the 
 world brought back to prosperity by increase of produc- 
 tion, careful management and efficiency. That is so ab- 
 solutely certain, so full of common sense, that no one could 
 doubt it. We all should be willing to work longer hours, 
 be more economical and more efficient, until we make up 
 
THE INTERNATIONAL TRADE CONFERENCE 485 
 
 what has been lost. Except for the noble work of our 
 European friends, British, French, Belgian and Italian, we 
 probably would be in the throes of a terrible war our- 
 selves at the present time. If they had been conquered, 
 there is no question but what the war would have come 
 over to our borders. I feel that we owe a very great 
 debt to them, and, for my part, I think, it should be paid. 
 I am ready to do my share, and to advocate the payment. 
 We are all bound together now as one nation throughout 
 the world. What benefits one portion of the world bene- 
 fits all, and our interests are intertwined with those of 
 Belgium, Italy, France and England ; and their prosperity 
 will be prosperity for us. Therefore, we should not hesi- 
 tate a moment to grant any assistance that will be neces- 
 sary to restore their prosperity. 
 
 In this country, we have had great men. Our consti- 
 tution, I think, as Gladstone remarked, is the greatest 
 form of government that ever emanated from the mind 
 of man, the first really great form of government the 
 world has ever seen. There were great men in those days 
 and we have had great men since. It is my good fortune 
 to have known a good many of them. Among my 
 first acquaintances that made a great impression upon 
 me was our great President, Abraham Lincoln, called the 
 typical American of all times. He embodies all the great 
 principles of the Americans, rose up from humble begin- 
 nings. I was with him, knew him before the war, knew 
 him during the war, walked and talked with him, was 
 with him at Gettysburg, sitting in the corner of the plat- 
 form as he delivered a classic which you have all heard, 
 but which, like many other good things, cannot be re- 
 peated too often. I am going to repeat it now. It was a 
 memorial to the great battle of Gettysburg, the greatest 
 of the war, when they came there to honor the dead who 
 had been buried there. He said: 
 
 "Four score and seven years ago, our fathers brought 
 forth on this continent a new nation, conceived in liberty, 
 and dedicated to the proposition that all men are created 
 equal. Now we are engaged in a great civil war, testing 
 
486 THE INTERNATIONAL TRADE CONFERENCE 
 
 whether that nation or any nation so conceived and so 
 dedicated, can long endure. We are met on a great bat- 
 tlefield of that war. We have come to dedicate a portion 
 of that field as a final resting-place for those who here 
 gave their lives that that nation might live. It is alto- 
 gether fitting and proper that we should do this. But 
 in a larger sense we cannot dedicate, we cannot conse- 
 crate, we cannot hallow this ground. The brave men, 
 living and dead, who struggled here, have consecrated it 
 far above our poor power to add or detract. The world 
 will little note, nor long remember, what we say here, but 
 it can never forget what they did here. It is for us, the 
 living, rather to be dedicated here to the unfinished work 
 which those who fought have thus far so nobly advanced. 
 It is rather for us to be here dedicated to the great task 
 remaining before us that from these honored dead we 
 take increased devotion to that cause for which they gave 
 their last full measure of devotion that we here highly 
 resolve these dead shall not have died in vain that this 
 naticn, under God, shall have a new birth of freedom and 
 that Government of the people, by the people, for the peo- 
 ple, shall not perish from the earth." 
 
 And from the last inaugural : 
 
 "With malice towards none, with charity for all, with 
 firmness in the right, as God gives us to see the right, 
 let us strive on to finish the work we are in; to bind up 
 the nation's wounds; to care for him who shall have 
 borne the battle and for his widow, and his orphans; to 
 do all which may achieve and cherish a just and lasting 
 peace among ourselves and with all nations." 
 
 M). Fahey: Gentlemen, one of our American business 
 men, who thinks internationally and who, during the late 
 war, made a splendid contribution so far as our ability 
 to take part in that struggle is concerned, is Mr. Edward 
 N. Hurley, of Chicago, Chairman of our Shipping Board 
 during the trying period when our ships were trying to 
 come to your aid on the other side of the Atlantic. Mr. 
 Hurley has a national view, and the true imagination of 
 an American business man. I know he will have a word 
 
THE INTERNATIONAL TRADE CONFERENCE 487 
 
 or more of interest to say to you on this subject, and 
 I am going to take great pleasure in presenting to you, 
 Mr. Hurley. 
 
 REMARKS OF HON. EDWARD N. HURLEY. 
 
 Mr. Chairman, Mr. Bedford, and Gentlemen: I appre- 
 ciate your kindness, Mr. Chairman, in asking me to say 
 a word. I first want to congratulate the Chamber of Com- 
 merce of the United States for the progress they are 
 making in cementing the ties between our neighbors 
 across the "pond" and the American business men. I 
 had an opportunity to come in contact with the Cham- 
 ber of Commerce of the United States, as a member of 
 the Federal Trade Commission, and later as Chairman of 
 the United States Shipping Board, and I always had the 
 feeling that if I wanted to get advice and counsel that 
 was sound and sane in the public interests and, gentle- 
 men, the business interest is nothing but the public in- 
 terest I could go to the Chamber of Commerce and re- 
 ceive their guidance, counsel and advice. I have gone to 
 them many times and never found them wanting. 
 
 I have a thought in connection with our deliberations 
 here, and am going to address myself for the moment to 
 the American business men who are conferring with our 
 friends from the other side. They are over here after a 
 very trying period, and we are all anxious to be helpful. 
 Sympathy is all right; doing something is all right; but 
 results is what they need, and what we should try to bring 
 about. We should strive to do something that is con- 
 structive. If we are going to continue on with friendly 
 lines, which wish is in the mind of every American and of 
 every man here tonight from the other side, we must 
 start to do business direct by placing orders with our 
 friends on the other side for the products that they are 
 manufacturing, and that they can get. The balance of 
 trade must be fair. Otherwise, we are not doing busi- 
 ness, and we are not helping ourselves. We have a large 
 
488 THE INTERNATIONAL TRADE CONFERENCE 
 
 number of ships today for service coming back in, and 
 I, for one, am anxious to join with the other American 
 business men, to try and purchase everything that we 
 possibly can from the nations that are represented here 
 tonight. Thousands of good articles for sale. That is 
 the way to balance trade, and to help them financially. 
 Loaning money is a fine thing, and those nations that re- 
 quire it should have it; but the placing of orders, laying 
 aside any selfish motive we may have on being fearful 
 that they might take some of our business. Let us say 
 that we are going to do business along business lines, 
 not for this month alone or for next month, but for the 
 years to come; allow them to find themselves and re- 
 construct their business demoralized during the war. In 
 this way we will do more to bring them back to their for- 
 mer sound position than in any other. I thank you, 
 gentlemen, for your kindness. 
 
 Mr. Fahey: Gentlemen, we have had the privilege of 
 having as our aid in perfecting this report and in some ad- 
 vanced study of the subject,, Mr. S. C. Mead, of New York, 
 the Executive of the great New York Merchants' Asso- 
 ciation, and one of the ablest men in that capacity in the 
 country. Mr. Mead, representing that great organiza- 
 tion, has given considerable thought and study to this 
 particular subject, and I am sure you will be interested in 
 having an expression of views from him. I take pleasure 
 in presenting to you, Mr. Mead. 
 
 REMARKS OF MR. S. C. MEAD. 
 
 Mr. Chairman Mr. Bedford, and Gentlemen: This is, 
 indeed, a very unexpected pleasure or task, whichever 
 way you may look on it, which has been imposed upon me. 
 I desire to address myself for just one moment to the re- 
 port which is before the meeting. 
 
 I agree with one or two of the speakers that have pre- 
 ceded me in the belief that there is no more important 
 single subject before this gathering than that of, at least, 
 
THE INTERNATIONAL TRADE CONFERENCE 489 
 
 starting the work of perfecting some form of efficient, 
 effective, permanent co-operative organization between 
 the nations represented here. 
 
 The subject matter covered by this report pertains not 
 merely to the solution of the great problems which now 
 confront the nations, which, to a greater or less extent, 
 were simply temporary in character, and will be solved 
 in the course of a few years, but this looks forward far 
 into the future and, in my belief, far beyond the present 
 generation. If there can be created out of this gather- 
 ing a cohesive, strong, representative organization of 
 business and social friendship between the business men 
 of these nations, just think what it will mean for the 
 future generations as well as for the present. Therefore, 
 gentlemen, irrespective of the immediate questions of 
 economics, reconstruction and finance in which we are 
 involved for the moment, irrespective of all these ele- 
 ments, I feel myself that this particular matter of per- 
 manent organization is a far more important element in 
 the sense that it will be of great value to the future ; that 
 it is a more important element than the problems which 
 we are interrnitt Q ntly discussing, and which pertain to the 
 present. It is, therefore, my hope, Mr. Chairman, that 
 out of this meeting will come some action based upon the 
 outlines presented in this report, which will insure the 
 consummation of some such organization for the future. 
 Thank you. 
 
 Mr. Fahey: I see back in the rear of the room, Mr. E. 
 A. S. Clarke, President of the Consolidated Steel Corpor- 
 ation, one of the men of the United States engaged in 
 the great world-wide trade, very familiar with interna- 
 tional conditions and who, I am sure, is interested in this 
 subject. I am going to ask Mr. Clarke if he will not say 
 a word to us. 
 
 REMARKS OF MR. E. A. S. CLARK. 
 
 Mr. Chairman and Gentlemen: It is needless to say 
 that I am really very much surprised at being called upon. 
 
490 THE INTERNATIONAL TRADE CONFERENCE 
 
 I can only say that I am certainly in most hearty sym- 
 pathy with the formation of such an international organi- 
 zation as has been proposed, and I believe that from it 
 must come very great benefits to our relations with our 
 goo^ friends from over seas. It can function in many 
 ways and give us the opportunity for interchange of 
 ideas, of opinions and thoughts and should be of the very 
 greatest benefit. 
 
 I would like to add one word as to the great pleasure 
 I have had in meeting with the delegates from the foreign 
 nations, in the Committee on Metals, of which I have 
 been chairman. We have met in the most delightful 
 spirit of friendliness. The delegates have given us a pic- 
 ture of their conditions, which has been of the most in- 
 tense interest, and which, at the same time, has given, 
 I think, to all of us a basis of information as to their 
 needs and to our duties. That lays on us the greatest 
 obligation, as Mr. Hurley says,, to perform here; and I 
 most sincerely hope that when these gentlemen shall re- 
 turn to their ov:r> countries they will take away with 
 them a real and definite assurance of a plan and action 
 for aid in the restoration of their countries and in the 
 solution of the difficulties which have come upon them 
 during this terrible world-wide war. Thank you. 
 
 Mr. Fahey: I see another of our business men, the 
 heau of our largest American steamship company, the 
 International, Mr. P. S. A. Franklin, President of that 
 great steamship company. I am sure that he will be 
 interested to say something on that particular subject. 
 I take pleasure in presenting, Mr. Franklin. 
 
 REMARKS OF MR. P. A. S. FRANKLIN. 
 
 Gentlemen: It has been a great privile.ee and very in- 
 structive as far as the Committee on Shipping is con- 
 cerned, to hear the views of the delegates from abroad 
 regarding the conditions in their countries and their re- 
 quirements. It has developed quite clearly, that certain 
 
THE INTERNATIONAL TRADE CONFERENCE 491 
 
 very large channels of commerce and trade have mate- 
 rially altered. Certain countries will require supplies in 
 very large quantities as, for instance, coal to Italy from 
 the United States, whereas, they formally secured it from 
 England. The United States has now launched itself into 
 a very important steamship ownership and will, therefore, 
 have to take upon itself the burdens and responsibilities 
 that formally they have not enjoyed. It was a great 
 privilege to hear from these gentlemen, particularly the 
 gentlemen from the nations that owned the largest 
 amount of shipping, that they rather welcomed the 
 United States in the business than otherwise. The other 
 countries naturally want the assistance of the ships to 
 deliver the goods that they require. 
 
 One thought has presented itself to us which really is 
 in line with the discussion of the evening, as I understand 
 it, and that is an international relationship in future busi- 
 ness; that all present ship-owning nations of the world, 
 should combine their forces as much as possible to get 
 for the Allies, who have gone through this war of 
 course, the others have suffered more seriously than the 
 United States, but, nevertheless, they have been in it re- 
 cently that we should try to combine forces of the Allies 
 to take over and operate steamers in the trade that 
 iornierly were controlled and carried by Gei man steamers 
 and, I think, that if this international body should be 
 formed, it would be a tremendous step in that direction. 
 I cannot help feeling that it would be a very important 
 matter if something of that kind can be accomplished. 
 I think it would be helpful to the commerce of our Allies, 
 and ourselves in the future. 
 
 It is a privilege to be asked to address you. I am very 
 much indebted to you for this unexpected pleasure. 
 
 Mr. Fahey: The President of the Manufacturers' Ex- 
 port Association, for the past two years, is Mr. George 
 Ed Smith, of New York,. President of the Royal Type- 
 writer Company. He has done much in recent years to 
 develop the organization of our American business men 
 in their relations to international commerce. Mr. Smith 
 
492 THE INTERNATIONAL TRADE CONFERENCE 
 
 has been giving us the benefit of his consideration as a 
 member of our committee on this subject, and I am sure 
 that Mr. Smith can add something to the discussion of 
 this particular matter. I will ask Mr. Smith to address 
 you. 
 
 REMARKS OF MR. GEORGE ED. SMITH. 
 
 I am as much surprised as any of the previous speakers, 
 but very glad to add one little note possibly to what has 
 been said, and that is the desire on the part of the 
 American Manufacturers' to assist as far as they can 
 in the reconstruction of other countries. We realize 
 that this one-sided trade must change, and that in order 
 to keep our trade our customers must be prosperous ; that 
 to be prosperous, they must produce ; that in order to pro- 
 duce they must receive needed materials from this side. 
 One thing I have noticed on the part of the citizens of 
 this country is a desire on the part of the Americans and 
 American business men to see, if need be, some of their 
 business drop off in order that the manufacturers and 
 producers of other countries may get on their feet, and 
 that the citizens of those countries may begin to enjoy 
 the life that we, ourselves, enjoyed. 
 
 Gentlemen, a big step forward has been taken in this 
 organization which has been launched. I believe that you 
 will see the day when this will be looked upon as a mem- 
 orable occasion, to say further, that the success of this 
 movement must be made a very close part of your own 
 affairs. If this were not to succeed, as we hope it will, 
 it would be a very sad thing for business men to have 
 attempted it. Of course, we must be personally interested 
 in the nations, but we business men are supposed to lead 
 and set examples; and I sincerely hope, that each of us 
 may support this movement to an extent that those who 
 look to America to be a leader in this matter may not be 
 disappointed. There are certain provisions made here for 
 the support of individuals, and if all of us who are here 
 
THE INTERNATIONAL TRADE CONFERENCE 493 
 
 tonight, and have seen this movement launched, will give 
 our individual support, it will go a long way towards 
 launching this movement upon a smooth sea. 
 
 This International Congress of Business Men must be 
 a success. If there is to be a political congress of the 
 same nature and character, possibly we, as business men, 
 can show in a small way the path ; and if we can, we will 
 have done something ourselves, for those who need our 
 help at this time, and for future generations. I think a 
 big duty rests upon every man in this room tonight. What 
 has been done must be seen through, and, we as business 
 men must not leave this room without taking with us 
 not only th^ credit for what has been done, but the re- 
 sponsibility of carrying it through to a success. 
 
 Mr. Fahey: One of our most distinguished American 
 business men, a former ambassador to France, who has 
 shown great interest at home in the development of busi- 
 ness men's organizations, recently president of the Cleve- 
 land Chamber of Commerce, one of the finest organiza- 
 tions we have in the country, honors us by being present 
 tonight. I take very great pleasure in presenting to you 
 Hon. Myron T. Herrick, of Ohio. 
 
 REMARKS OF HON. MYRON T. HERRICK. 
 
 Mr. Chairman and Gentlemen: It is a great pleasure 
 for me to be honored as a member of the committee to 
 welcome my old friends from La Belle France, also from 
 Belgium and Great Britain and Italy. 
 
 I know of no movement since the war that has elicited 
 more interest on my part in these reconstruction days 
 than this meeting here at Atlantic City. 
 
 The creation of organizations that come naturally, or 
 organizations that come naturally into existence are 
 usually the most potent because they come to meet some 
 urgent need. It was not very long ago we all remem- 
 ber it when there were little organizations in some of 
 the cities called Boards of Trade, Chambers of Commerce 
 
494 THE INTERNATIONAL TRADE CONFERENCE 
 
 or something* of that sort. They busied themselves 
 largely by marking the local markets on the blackboard ; 
 took no special interest in civic affairs. If they took an 
 interest in civic affairs it was only civic affairs. Their 
 horizon was the town or the county and they did not go 
 beyond. But, as the years have gone on, these organiza- 
 tions throughout the United States have multiplied and 
 increased until there is hardly a village in the United 
 States that has not a Chamber of Commerce. That 
 Chamber of Commerce has broadened its vision. It has 
 not only looked after the trade of that village, that county 
 seat or that city, but it has finally assumed the obligation 
 of civic affairs, and the best part of these organizations 
 has been this : It has been wholly non-partisan with no 
 social stratas, composed of earnest, patriotic men inter- 
 ested in their own affairs in the village or the city; broad- 
 ening all the time its comprehension, and assuming re- 
 sponsibility. It is a natural growth of a natural process, 
 grown naturally in these years to meet a supreme need 
 and that need has now arrived. Why, what could we ac- 
 complish in meeting these gentlemen who come over here 
 rightfully for encouragement, for cooperation, if we had 
 not organization? That is the basis of everything prac- 
 tical. We found, without any propaganda, but by natural 
 growth, our great country with a powerful organization 
 the evolution of which was the United States Chamber of 
 Commerce; and here we are, a non-partisan body pre- 
 pared to do something for America when America never 
 in the world needed it as she does at this present moment. 
 That is the Chamber of Commerce. 
 
 We are ready. We are a comprehending people be- 
 cause we represent the highest, the little, and the lowest 
 classes, if you choose to divide the population of a coun- 
 try into classes. We have been drawn very closely to- 
 gether in this great country of ours and are ready to 
 speak to these gentlemen. We understand another thing, 
 my friends from across the seas. We understand that 
 our obligation we have grown a little less selfish during 
 this war is to vou. Why? Because you stood in the 
 
THE INTERNATIONAL TRADE CONFERENCE 495 
 
 breach during those fateful years whilst we dallied and 
 waited, and you gave your best blood; but finally we 
 backed into the war and thank God we came out with you 
 on top. It is for those reasons, as one of the last speak- 
 ers has said here, why we profited in those years. It is 
 for those reasons that we should srive you the first con- 
 sideration, because in those years that we were so 
 anxious, we were running full time, making money while 
 you stood up there against a force that threatened the 
 overthrow of civilization. You stood there; lo, you 
 guarded the gate whilst we waited ; that is why we should 
 give you first consideration, in my opinion. 
 
 Mr. Farquhar, who quoted beautifully those words of 
 that unselfish statesman ; that man who, in a great crisis, 
 forgot political considerations and supported everything 
 to the one great cause of the country and humanity. 
 Now, I want to quote from another man whose words 
 apply to this meeting. He was our respected President 
 during a period when there was peace and good-will on 
 earth because of the existence of that friendliness of 
 which you spoke. It was Wililam McKinley. William 
 McKinley thought as he looked over this country that 
 we had been rather selfish and just about three-quarters 
 of an hour before he was shot, stricken down by the as- 
 sassin,, he said : "The period of our exclusiveness has now 
 passed." It passed then; we entered a concert of na- 
 tions; and as the world developed, and as we have been 
 able by a supreme effort, to save it for civilization, let us 
 now, as we have entered this new period understand that 
 our obligation is to maintain this fraternal spirit be- 
 cause it is self-preservation and because our greatest task 
 is now here. We understand perfectly that while it is 
 unspoken there is in the mind of every thinking citizen 
 today for the first time a feeling that there are people 
 whc would overthrow this government; people who would 
 delude labor; people who would delude capital; people 
 who would delude the unsuspecting public for a purpose 
 that is not disclosed. When the American people find, 
 when they fully understand, that there is any group of 
 
496 THE INTERNATIONAL TRADE CONFERENCE 
 
 men and that applies to the honest laboring man as well 
 as to any citizen in the United States when they under- 
 stand that that purpose is to overthrow this government, 
 then this government will rise in its might and down 
 with that force. 
 
 So, I am pleased, gentlemen, to be one to welcome you 
 here and to enter enthusiastically into the plan by which 
 the comprehending people and the people in this world, 
 who have striven so hard to save it; and by saving it 
 have taught themselves unselfishness; have been thrown 
 back on the splendid principles along which our country 
 is organized and who understand or I am pleased to feel 
 that we shall be able together to understand how to lay 
 aside our selfish interests ; better understand that funda- 
 mentally we are all right. 
 
 If you want to know what a nation is going to do in a 
 great stress, as I heard somebody say that they feared 
 for Great Britain, that they feared for France, that they 
 feared for America in this crisis,, just ask what they have 
 done in the past. They are bound to do it again. We 
 know what England has done through the centuries; we 
 know what Italy has done; we know what Belgium did, 
 and we know what France has done through all the cen- 
 turies; and, therefore, we know if banded together with 
 an unselfish, honest purpose we are going to love each 
 other, we are going to live in peace and harmony, and 
 order will come eventually when all this is carried out; 
 all of which is going to make this world worth while, I 
 am sure. 
 
 Mr. Fahey: One of our business men who has been 
 greatly interested in this subject for years, who has been 
 a member of the permanent committee of the interna- 
 tional before the war, and who has acted as a member of 
 this committee, reporting on a tentative plan of organi- 
 zation, is Mr. Edward A. Filene, of Boston. I know that 
 you will be interested in hearing few words from him on 
 this subject. 
 
THE INTERNATIONAL TRADE CONFERENCE 497 
 REMARKS OF MR. EDWARD A. FILENE. 
 
 Mr. Chairman, Mr. Bedford, and Gentlemen: You will 
 not be surprised when I say I am surprised at being called 
 upon, but this is rather unexpected. 
 
 I rejoice very greatly indeed that we are so near the 
 realization of the strengthening and development of the 
 international organization which our friend M. Canon- 
 Legrand so devotedly started in Milan so many years ago. 
 I have the greatest hopes of success, and one of the 
 reasons is that when business men get together they can 
 agree and can accomplish the purpose for which they get 
 together. Business men know that no trade is a good 
 trade unless it is mutually satisfactory, and on that basis 
 we can build up an organization that will be effective in 
 its work. Another reason why I confidently believe this 
 organization will be of very great use for the world is 
 that I believe that the resources of the world, the possi- 
 bilities of production are not more than half developed 
 as yet. 
 
 There are existing very great obstacles all over tho 
 world. Among the important obstacles is the failure of 
 the business men of the different nations to get together 
 as often as they should. There is a field of possible in- 
 crease of production the international work of business 
 men of the world. That is so promising that while it be 
 difficult I believe it is sure to be successful. I believe with 
 Mr. Hurley that the way to practically aid, cooperate, 
 may I say, with the European nations is to buy their 
 goods. But I think Mr. Hurley will agree with me that 
 the goods have got to be preduced at normal prices be- 
 fore we can buy them. I am just back from Europe and 
 while there met our representatives, my own and those 
 from seventeen of the big stores of this country. We be- 
 lieve that the adjustments will be made and are enlarg- 
 ing our European offices on a scale incomparably larger 
 than before the war. But, gentlemen, the work for which 
 this Congress has come together is primarily needed. If 
 we are to buy those goods with exchange at 50 per cent 
 
498 THE INTERNATIONAL TRADE CONFERENCE 
 
 or 100 per cent more than normal it is exceedingly diffi- 
 cult to buy them and bring them here and sell them profit- 
 ably. Therefore, I rejoice in the outlook that there shall 
 come definite and substantial efforts for the reconstruc- 
 tion of business that will make possible the buying of 
 those goods profitably to the nations of Europe and 
 profitably to ourselves. 
 
 Finally, gentlemen, this war has somewhat diminished 
 the number of princes, and Nature abhors a vacuum ; and 
 so I welcome to the possibilities of this organization to 
 coming to the acquaintance of the world the new states- 
 men of the world, the new princes of the world, the mer- 
 chant princes of the world, princes not because of their 
 wealth, but because of international public service. 
 
 Mr. Fahey: Mr. Johnson, of Philadelphia, very happily 
 suggested when I called on him that I secure a word from 
 Mr. Farquhar, but I know that Mr. Johnson has some- 
 thing on his mind on this subject and on this Congress 
 and I am going to return to him just the same and ask 
 him for a world. 
 
 REMARKS OF MR. ALBA B. JOHNSON. 
 
 Gentlemen: I thought I had escaped. I had dismissed 
 the subject of puzzling over what I should say from my 
 mind and now you can readily understand that, after 
 hearing from all these eloquent speakers there is nothing 
 left for another man to say. 
 
 Mr. Herrick has referred somewhat to the development 
 of Chambers of Commerce. I think it was about 90 years 
 ago that the idea first started in the United States. The 
 old Philadelphia Board of Trade was established at about 
 that time and its course was very much as Mr. Herrick 
 described, that is, it was a Board of Trade and had the 
 shortcomings of the older organizations their lack of 
 vision, their lack of ability to fulfill the expectations of 
 those who looked for results from them has caused a mul- 
 tiplication of such organizations until the time has come 
 
THE INTERNATIONAL TRADE CONFERENCE 499 
 
 in most of our states when we are embarrassed by their 
 number and are striving to get back again to the uni- 
 formity of a lesser number in a more potential organiza- 
 tion. That, however,, is not the subject which is of in- 
 terest to you, but the subject which seems to be worthy 
 attention is the fact that the trade organization fulfills a 
 place in modern civilization which is necessary and in- 
 dispensable. Time was when the individual, rising head 
 and shoulders above his fellows, exercised an influence in 
 his community, in his state, or in the nation, which made 
 his voice listened to with deference; but, with the multi- 
 plication of such individuals, with the enlargement of 
 business interests, with the creation of great numbers of 
 business organizations the individual voice is lost; it has 
 ceased to have its potency, and it has become necessary for 
 groups of individuals to unite in order to make their voices 
 heard,, and in order unitedly to speak and to avoid some 
 disadvantages of individual advice and individual action. 
 Therefore this movement of business organization has 
 spread, as Mr. Merrick has said, not only throughout the 
 length and breadth of the land, comprising alike the 
 small villages, the towns and the small cities, but it has 
 also spread to individual trades, to individual professions 
 and to every diversity of business interest ; and now when 
 it is desirable for business to have its voice heard, 
 whether in the community or in the nation organization 
 is indispensable. Now, if this is true on the small scale 
 and the larger scales which I have mentioned, it i,3 
 especially true in international matters. Business men, 
 united for a common purpose will have not only resources 
 of investigation, but a potency of utterance when their 
 well-matured expressions are ready to be announced. 
 
 I want to emphasize theis matter of research. It is 
 highly important that some great international organi- 
 zation like this should be studying the commercial prob- 
 lems of the world, those political questions which have a 
 bearing upon commerce, the questions of tariffs, trade- 
 marks and other subordinate questions, all of which, how- 
 ever, are of vital interest to the individual business man. 
 
500 THE INTERNATIONAL TRADE CONFERENCE 
 
 Therefore, Mr. Chairman, it seems to me that this com- 
 mittee on permanent organization has done wisely in pro- 
 posing such a plan of organization as that which has been 
 put before you. I have listened to the report and read 
 the report of the sub-committee with the greatest care. 
 I can find no flaw in it and I confidently believe that it 
 will receive the unanimous approbation of this organiza- 
 tion and, therefore, Mr. Chairman, I move the adoption of 
 the tentative plan of organization which has been pro- 
 posed by the subcommittee. 
 
 Mr. Farquhar: I will second that motion. 
 
 (The motion was put by the Chairman and unani- 
 mously carried.) 
 
 COMMITTEE ON RESOLUTIONS. 
 REPORT OF COMMITTEE. 
 
 MR. JOSEPH H. DEFREES, Chairman. 
 MR. ELLIOTT H. GOODWIN, Secretary. 
 
 Representatives of the British Mission. 
 
 SIR ARTHUR SHIRLEY BENN. 
 SIR JAMES HOPE SIMPSON. 
 
 Representatives of the French Mission. 
 
 MONSIEUR EUGENE SCHNEIDER. 
 MONSIEUR A. TIRMAN. 
 
 Representatives of the Belgian Mission. 
 
 MONSIEUR FLORIMOND HANKAR. 
 MONSIEUR CANNON-LEGRAND. 
 
 (Representatives of the Italian Mission. 
 
 COMMANDER DR. FERDINANDO QUARTIERI. 
 GRAND OFFICER PROF. BERNARDO ATTOLICO. 
 
 Representatives of the United States. 
 
 LEWIS E. PIERSON. 
 GEORGE ED. SMITH. 
 E. GOODWYN RHETT. 
 JAMES S. ALEXANDER. 
 JOHN H. FAHEY. 
 
THE INTERNATIONAL TRADE CONFERENCE 501 
 
 THEODORE F. WHITMARSH. 
 E. A. S. CLARKE. 
 WILLIS H. BOOTH. 
 
 As a result of the organization of the various commit- 
 tees appointed to meet with committees representing the 
 Missions from abroad and the useful conferences, which 
 have been in progress in advance of this Convention, 
 your Committee on Resolutions found its task compara- 
 tively simple. 
 
 As you are aware, these Committees for the most 
 part were organized to represent particular industries 
 and groups of industries in the United States whose di- 
 rect aid and cooperation were desired in efforts to restore 
 the normal processes of commerce. The members of 
 these Committees being representative of all the factors 
 in their industries were,, therefore, in a position to say 
 what could or could not be done in their particular lines 
 in meeting immediate needs of Europe, and likewise 
 wherever it was possible to secure prompt results, they 
 were in a position to influence action. 
 
 Reports from the Conference Committees have been re- 
 ceived and adopted by you. In general, they have cov- 
 ered three phases of the questions before them. 
 
 First. Matters which the Committees could themselves 
 take up with their industries and secure action with little 
 delay. 
 
 Second. Matters calling for legislation or in which it 
 is necessary to obtain the cooperation of governments, 
 and, 
 
 Third. Questions calling for further study before the 
 Committee is either able to act or make recommendations. 
 
 Through the instrumentality of this International Con- 
 ference, accurate and dependable statements as to com- 
 mercial, industrial and social conditions in the various 
 countries represented here, have been placed before the 
 public of the United States for the first time. Much new 
 information has been made available. The problems in- 
 volved are so many and complicated that no business man 
 of experience would expect the committees to make com- 
 prehensive reports and recommendations as a result of 
 the comparatively brief consideration they have been able 
 to give to the data presented to them. 
 
 It is, therefore, most gratifying that each of the Amer- 
 ican Committees has been able to present a preliminary 
 report carrying as many concrete suggestions and recom- 
 mendations for prompt action as they were justified in 
 
502 THE INTERNATIONAL TRADE CONFERENCE 
 
 making under the circumstances. These reports have 
 been presented and adopted by you. This action makes 
 special resolutions on most of the subjects involved un- 
 necessary. 
 
 Each committee reports the need of further work and 
 investigation in order to follow up the results of the Con- 
 ference and to deal with questions which could not be 
 disposed of immediately. All of the committees of the 
 Conference will,, therefore, continue their work in co- 
 operation with the permanent organization provided for 
 the International Trade Conference and the Chamber of 
 Commerce of the United States which will do everything 
 possible to forward their efforts. 
 
 All of the reports made by the committees and the pro- 
 ceedings of the Conference will be published immediately 
 and placed at the disposal of the delegates to this Con- 
 ference and the business and financial organizations of 
 the country. The same course will be followed as soon as 
 additional reports are received from the committees. For 
 these reasons your Committee on Resolutions finds it 
 necessary to present for your consideration only a few 
 resolutions which are general in character and which may 
 be separately considered. 
 
 The resolutions which the committee desires to submit 
 are as follows : 
 
 The following two resolutions were presented by the 
 Petroleum Committee, considered and amended by the 
 Resolutions Committee and as amended are recommended 
 for adoption by the Convention : 
 
 Reciprocal Recognition of Nationals. 
 
 Resolved, That it is the sense of the International Trade 
 Conference that nationals of each country should be ac- 
 corded reciprocal recognition in foreign countries iden- 
 tical with that accorded in their own country to nationals 
 of other countries. 
 
 Governmental Control of Industries. 
 
 WHEREAS, during the period of the war the conduct of 
 commerce and industry throughout the world was largely 
 placed under governmental control the freedom of trade 
 and the law of supply and demand being set aside, and ; 
 
THE INTERNATIONAL TRADE CONFERENCE 503 
 
 WHEREAS, it was generally understood that this situ- 
 ation was purely temporary and would come to an end 
 when normal conditions should be re-established; 
 
 Now, therefore, be it 
 
 Resolved, That it is the sense of the International 
 Trade Conference that all restrictions on natural eco- 
 nomic laws should be lifted as soon as the exceptional 
 circumstances growing out of the war will permit. 
 
 The following resolution was submitted by the Coal 
 Committee, considered and amended by the Resolutions 
 Committee and as amended is recommended for adoption 
 by the Conference : 
 
 Restrictions on Coal Industry. 
 
 WHEREAS, Our Conferences with the European Coal 
 Committees have developed the need of extending and 
 continuing exports of coal to Europe from the United 
 States; and 
 
 WHEREAS, Various restrictions by agencies of the 
 American and European governments prevent the most 
 effective measures being taken to provide suitable coal of 
 sufficient quantities under conditions mutually advan- 
 tageous; and 
 
 WHEREAS, The need for several particular classes of 
 coal in Europe and the production of many different kinds 
 of coal in the United States make it necessary that the 
 purchases, shipment and distribution of those coals 
 should be handled throughout by practical and experi- 
 enced business men familiar with the details of such busi- 
 ness ; and 
 
 WHEREAS, Governmental restrictions seriously inter- 
 fere with the development of permanent and desirable 
 trade relationships between the American coal industry 
 and European consumers; 
 
 Therefore, be it 
 
 Resolved, That we urge the abandonment of govern- 
 mental restrictions on the purchase, shipment and dis- 
 tribution of coal from America as soon as ever the cir- 
 cumstances of the respective countries will permit. 
 
 And be it further 
 
 Resolved, That the Conference requests the directors 
 of the Chamber of Commerce of the United States to 
 bring this resolution to the attention of the appropriate 
 
504 THE INTERNATIONAL TRADE CONFERENCE 
 
 American authorities, and that the members of the for- 
 eign missions be likewise requested to bring it to the at- 
 tention of their prospective governments. 
 
 The following resolution originated with the Resolu- 
 tions Committee itself and in the form here submitted it 
 is recommended for adoption by the Conference : 
 
 Interchange of Commodities and Raw Materials. 
 
 In being in the common interest of nations that there 
 should be the widest possible development of industry and 
 commerce and that prosperity should everywhere prevail, 
 the International Trade Conference deems it to be of 
 prime importance that there should be the widest prac- 
 ticable interchange of commodities and in particular the 
 freest practicable distribution of raw materials, and that 
 at the present moment consideration should be given to- 
 the question of fair distribution of raw materials in con- 
 nection with any financial plans for the revival or reha- 
 bilitation of industries which have been interrupted or 
 prostrated by the war. 
 
 JOSEPH H. DEFREES, Chairman. 
 
 CLOSING EXERCISES. 
 
 An Expression From the Foreign Missions. 
 
 Sir Arthur Shirley Benn: Mr. Chairman. 
 The Chairman: Sir Arthur Shirley Benn. 
 
 Sir Arthur Shirley Benn: We beg to submit to you a 
 resolution unanimously passed by the delegations from 
 over the seas. 
 
 The members of the delegations from Belgium, France, 
 Great Britain and Italy desire at this time to give public 
 expression to their keen appreciation of the action of the 
 Chamber of Commerce of the United States of America 
 in extending the invitations which have enabled them to 
 come to this great country under such inspiring auspices 
 to visit so many of its great centers of industry and com- 
 merce and to come into close personal contact with so> 
 
THE INTERNATIONAL TRADE CONFERENCE 505 
 
 many of its representative business men. They are 
 deeply grateful for the splendid hospitality which has 
 been shown to them by the Chamber and for the kind ar- 
 rangements which have been made for their entertain- 
 ment and instruction. 
 
 To each and every one of the distinguished gentlemen 
 here present who, with admirable public spirit, have left 
 the pressing affairs and traveled so far from all sections 
 of the United States to give the benefit of brotherly 
 counsel and encouragement in the solution of the vast 
 problems with which their countries are faced, they de- 
 sire to convey a personal and heartfelt message of thanks. 
 Signed by the Chairman of the Belgium, French, British 
 and Italian delegations, respectively. 
 
 FLORIMOND HANKAR. 
 
 EUGENE SCHNEIDER. 
 
 ARTHUR SHIRLEY BENN. 
 
 FERDINANDO QUARTIERI. 
 
 The Chairman: Sir Arthur Shirley Benn, M. Eugene 
 Schneider, M. Florimond Hankar and Commander Quar- 
 tieri, representing your respective nations, I have to say 
 to you that we shall be glad indeed to enter this minute 
 upon the records, and I will ask Mr. H. L. Ferguson,, the 
 President of the Chamber of Commerce of the United 
 States, to make response to your most courteous resolu- 
 tion. 
 
 Mr. Ferguson: Sir Arthur and gentlemen of the Euro- 
 pean nations : I do not know anything more calculated to 
 relieve the fatigue of a trip to New York and back today 
 and a hard day's work in New York than to receive your 
 resolution. I want to tell you that we appreciate it and 
 it will be placed among our proudest possessions in 
 Washington in the archives of the Chamber. It has been 
 a great pleasure to have you gentlemen come over here, 
 and I assure you that you have brought with you a 
 message that made worth while all the work of bringing 
 together this Conference ; and, personally, we like you, we 
 feel that you fittingly represent your great countries and 
 we hope that this is but the beginning of a business as- 
 sociation between the representatives of the great coun- 
 tries of the world which will do so much to cement the 
 
506 .THE INTERNATIONAL TRADE CONFERENCE 
 
 peace and friendship of the world and to make possible 
 that prosperity, harmony and good feeling so necessary 
 to the happiness of all. Thank you. 
 
 MR. BEDFORD'S CLOSING ADDRESS. 
 
 Ladies and Gentlemen: We are drawing to the closing 
 moments of this Convention. It is my privilege, as well 
 as my duty, at this time to express on behalf of the Board 
 of Directors of the Chamber of Commerce, and I am sure 
 I can also speak for our friends from overseas, the very 
 great appreciation we feel to those who have carried on 
 and originated and helped make this Congress a success, 
 the success I am sure you all feel it to be. Especially are 
 we grateful to the Chairman of the Program Committee, 
 Mr. Fahey, who has labored incessantly and earnestly to 
 bring about this success. To the Chairman and mem- 
 bers of the various committees our most grateful thanks 
 go out. Never before, I believe,, has there been such an 
 aggregation of business men and bankers as has been 
 assembled here in the work in this Convention. They 
 have labored most assiduously and steadfastly and faith- 
 fully and have done a magnificent piece of work. Our 
 gratitude to them is most sincere and heartfelt. 
 
 The staff of the association and of these committees we 
 also wish to thank. Sometimes we little think when we 
 come to these great functions .of the immense amount of 
 detail work and the long hours of labor that are entailed 
 upon the staff, but their enthusiasm and goodwill and 
 faithful devotion is what makes these kind of functions 
 successful. It needs the right kind of a staff, and we 
 have got it. I also want to thank the gentlemen of the 
 Press. We could not do anything without the Press. The 
 publicity of what has gone on here is what is going to 
 make ultimately successful the mission these gentlemen 
 have come here on and the Press has done splendid serv- 
 ice for all and we are extremely grateful to them. Of 
 course we would like to have been on the first page every 
 
THE INTERNATIONAL TRADE CONFERENCE 507 
 
 day, but with all the things that are going on and all eyes 
 centered on Washington and here and there, we recognize 
 sometimes that we are lucky to get in at all no matter 
 how big we think we are. But we do feel that the mis- 
 sion these gentlemen have come to us on not only is im- 
 portant to them but is of vast importance for the well- 
 being and good of our entire country ; and so we are going 
 to ask that the Press will continue to show its good will 
 and appreciation of the importance of the work these 
 gentlemen are doing as they go about the country. 
 
 I have been handed a letter of appreciation from the 
 Press commenting the publicity staff which they say has 
 been of very great assistance to them. It is signed by the 
 newspaper correspondents who have reported the Inter- 
 national Trade Conference and they make a special ref- 
 erence to Mr. Ben H. Lambe, who has done so much to 
 help them in their work. This communication is signed 
 by the representatives of the New York Tribune, New 
 York Times, Philadelphia Inquirer, Philadelphia Public 
 Record, Pittsburgh Times, Financial America, Boston 
 American, Philadelphia North American, the Associated 
 Press, the New York Herald, the Sun, the New York 
 World, and the Daily Current News of New York. 
 
 One more announcement in response to a request for 
 information on the proceedings of this meeting. It is 
 announced that the record of the groups as well as the 
 general sessions will be reported fully in the current 
 number of The Nation's Business. 
 
 Now, gentlemen of the Congress, the formal deliber- 
 ations of our Conference at Atlantic City come to an end. 
 Our visitors from overseas will make, under the auspices 
 of the Chamber of Commerce of the United States, a visit 
 to a number of our larger cities and we will meet with 
 our friends again in New York on the eve of their de- 
 parture for Europe. Thus the International Trade Con- 
 ference cannot be said to be at an end, for the plan in 
 inviting our European friends placed no less importance 
 upon bringing these business men into intimate contact 
 with the commercial interests of our country in their re- 
 
508 THE INTERNATIONAL TRADE CONFERENCE 
 
 spective home surroundings than it did in bringing about 
 the discussion here upon broad and fundamental topics. 
 
 We feel that it has been a very fruitful week. It has 
 certainly been a strenuous one, and great credit is due to 
 every man in attendance for the seriousness with which 
 he has devoted himself both to the committee meetings 
 and to the open conferences. The large attendance of 
 representative American business men which we have 
 seen here may be regarded by our friends from Europe 
 as an indication of the intense interest American business 
 men have now come to experience in our world trade re- 
 lations. The registration of those who attended this Con- 
 ference totaled some three thousand. Before the war to 
 have gathered such a group as have come together here, 
 and on such an errand, would have been absolutely im- 
 possible. 
 
 Let me say without another moment's delay that this 
 large number of business men who have come here, repre- 
 senting, as they do, a cross-section of the whole commer- 
 cial and financial life, have been perfectly delighted at the 
 privilege they have enjoyed of meeting these delegates 
 from overseas. That delight has been enhanced in no 
 small measure, not alone by the charm of manner and 
 unvarying courtesy so constantly displayed by all of our 
 visitors,, but by the far more important fact that you have 
 brought to us a real insight, born of long observation and 
 practical experience, into the vital affairs of their re- 
 spective nations. 
 
 At the very outset of these conferences it was my privi- 
 lege to ask of our visitors from overseas information 
 upon certain very important, intimate information, going 
 to the very depths of the problems of national prosperity, 
 indeed of national safety and perpetuity. You have 
 answered our questions in the spirit in which we asked 
 them. Your perfect frankness and sincerity in attempt- 
 ing to reveal to us the real conditions as they exist in 
 Europe has been both enlightening and satisfying. 
 
 It has been my opportunity for many years to have had 
 intimate business relations with all parts of Europe. It 
 
THE INTERNATIONAL TRADE CONFERENCE 509 
 
 has been my privilege recently to visit England, France 
 and Belgium and to see something of the way in which 
 these countries were gathering themselves together and 
 entering the new world of reconstruction. 
 
 And there has never been, as I stated in asking my 
 questions, the slightest doubt in my mind as to the future 
 safety of prosperity of Europe, and yet it has been re- 
 assuring and enlightening to me to hear the wonderful 
 reports you bring us of the new vision and the new 
 spirit which animates your people. A single statement, 
 like that given me by one of the distinguished gentle- 
 men of the French Mission, to the effect that of the forty 
 million population of France, some eleven million are in- 
 dividual land owners, is the best possible answer to the 
 question as to whether France is menaced by Bolshevism. 
 No country, the rank and file of whose people have so 
 great a stake in her prosperity and safety, can for one mo- 
 ment be in jeopardy from so insidious a thing. Many of us 
 had heard that France had been bled white, but the facts 
 which you have brought us, and the picture you have 
 given to us, has made us all feel as never before that 
 nothing can interfere with the future safety and prosper- 
 ity of this great nation. She poured out her blood and her 
 treasures with prodigality almost without precedent in 
 history, and now, with great portions of her country still 
 devastated and in ruins, we find her whole people arising 
 in their might to a realization of yet greater destiny. 
 
 And I am sure all of us have been impressed with what 
 we have learned here of Italy. The Italy of music, and 
 art, and beauty we have long known, but the Italy of com- 
 merce, and trade, and manufacture ; the Italy of invention 
 and scientific research; the Italy of ambition and mate- 
 rial prosperity, is an Italy with which our people have 
 been unfamiliar. What you have told us has been a reve- 
 lation, and we know that it will be a yet greater revela- 
 tion as you continue to tell it to our people. 
 
 It has been a delight to have with us the distinguished 
 delegation from Belgium. No information was necessary 
 to make us feel more keenly appreciative of the sacrifices 
 
510 THE INTERNATIONAL TRADE CONFERENCE 
 
 Belgium had made during the war. The bravery and 
 the undying perseverance of her people during that crit- 
 ical period will, throughout all ages, be one of the most 
 brilliant pages of human history. We knew that if this 
 war resulted in nothing else it must at all hazards bring 
 about the restoration of Belgium to the material losses 
 she has suffered during the war, but you have given us 
 an insight into the spirit of enterprise and initiative with 
 which you are engaging in your task of rebuilding the 
 shattered industries of your country, and it is upon a 
 knowledge of this unquenchable spirit of Belgium that 
 will be established still greater confidence and good will 
 on the part of the American people which will, I am sure, 
 cement our relations, both commercial and as people, for 
 all time to come. 
 
 And as for Great Britain : What an inspiring part she 
 has played. Your delegates here have but intensified the 
 feeling our people already have of enthusiastic admira- 
 tion and profound respect for the unvarying steadfast- 
 ness, resourcefulness and dependability of the great Brit- 
 ish nation. And we still feel, that which we never 
 doubted, that from the demoralization of war English 
 finances and trade, indeed even her whole national life 
 will arise to greater strength and prosperity than ever 
 before. 
 
 You, our foreign guests,, have told us this story at 
 Atlantic City. It has gone in part, by medium of the 
 press, throughout our land, but we want you to continue 
 to tell that story. Tell it to all our people. They will be 
 keen to hear it and you will be gratified as you realize 
 their satisfaction in obtaining the information you are 
 so well able to give them. 
 
 It would be impossible to summarize in a few words 
 the great work of this conference, and yet, looking back 
 over the week, perhaps we can indicate in a few words at 
 least the titles of several achievements of no small 
 moment. 
 
 1. We have laid here the foundations for the establish- 
 ment of a permanent international commercial organiza- 
 
THE INTERNATIONAL TRADE CONFERENCE 511 
 
 tion, a permanent medium through which the business 
 men of the countries gathered here may exchange infor- 
 mation and advice, may communicate their views of prob- 
 lems of mutual concern, and may cooperate in promoting 
 intelligent and broadminded commercial development in 
 behalf of the prosperity of the whole world. This is a 
 great achievement, and one of the foundations of which 
 we shall hope to build a great structure of international 
 good will. 
 
 2. We have greatly clarified the problems of interna- 
 tional credit and the methods by which the people of the 
 United States may cooperate with those of Europe in 
 hastening the reconstruction of the world. It has been 
 made clear that if future credits on a large scale are to 
 be extended to Europe they must be, not through govern- 
 ment, but on private initiative, and yet all such activities 
 must at all times have the cordial cooperation and en- 
 couragement of governmental authorities,, and nothing 
 should be spared in the form of legislation or such gov- 
 ernmental action as may be necessary to promote this 
 great end. To lend to Europe the stupendous sums which 
 have been mentioned would require saving on the part of 
 all our people. The extension of such credits cannot be 
 by our banks alone. The banks themselves largely act as 
 media through which to mobilize the credit resources of 
 the merchants, the farmers, the working people, and the 
 citizens generally, of our country. Our people must be 
 made to see that through saving and through thus mak- 
 ing possible these large European credits, the surest pos- 
 sible contribution will have been made to the prosperity 
 and future welfare, not alone of Europe, but of our own 
 country itself. Our people must also realize that if we 
 are to be able to save the wherewithall with which to 
 bring about the prompt restoration of the productivity of 
 Europe, it cannot be accomplished by turmoil and strife 
 at home. I venture to commend to my labor friends the 
 importance of stopping to realive what they are about in 
 the strikes now being threatened in this country. Indus- 
 trial strife means not alone no saving for Europe, but it 
 
512 THE INTERNATIONAL TRADE CONFERENCE 
 
 means disaster to ourselves to every one of us. The 
 lesson of this is of vital importance to every man gath- 
 ered here, and it is a lesson which it is incumbent upon 
 each one of us to bring home in every way we can to 
 those with whom we are individually associated. 
 
 Europe has not come to us as a suppliant, but has 
 come to us offering America the most brilliant opportu- 
 nity in history, and that Europe will arise from the war 
 a greater Europe and stronger than ever before no man 
 who has heard what has been said here for a week can 
 question for a moment. The problem that faces America 
 is whether we shall avail ourselves of the opportunity 
 Europe offers to us to provide such substantial co-oper- 
 ation to Europe in her reconstruction that it may be 
 brought about with a speed and in a spirit which will con- 
 tribute not alone to the welfare of Europe but of the 
 prosperity and happiness of the United States for all time 
 to come. I wish to say to those gathered here from the 
 business life of America that this is the supreme thought 
 that we should carry with us from Atlantic City. 
 
 I am leaving this Convention with a new faith in the 
 Allies, by whose side we were privileged to fight in this 
 war. I am going to try and spread that faith among my 
 fellow townsmen when I get back to my own business. If 
 you share that faith,, as I am sure you do, I ask you to 
 do the same in your towns. 
 
 I myself am confident that as the outcome of the dis- 
 cussions here the situation can be met. A Committee on 
 Credits and Finance, gathered from all parts of the 
 country and comprised of men of the highest financial and 
 business ability have made a report, in which they state 
 briefly : 
 
 First. After considering the great problem from all 
 angles the committee states definitely its belief that the 
 requirements of the nations represented at this Confer- 
 ence can be met. 
 
 Second. No one plan can cover all cases. The problem 
 of each nation is different from the rest. Not only finan- 
 
THE INTERNATIONAL TRADE CONFERENCE 513 
 
 -cial, but commercial, social and political factors enter 
 into the problem. It is the responsibility of America. 
 
 Third. The first definite step recommended is the for- 
 mation of corporations for foreign credits under the 
 Edge Bill. 
 
 Fourth. It is recommended that a permanent commit- 
 tee be immediately appointed by the Chamber, represen- 
 tative of the entire nation's interest in meeting this emer- 
 gency which can present the case of the entire American 
 investing public. 
 
 By following these recommendations a method will be 
 found by which credits will be extended to the European 
 countries, by which the people of the United States will 
 be given the opportunity to help Europe and to help 
 themselves by extending credits to those who are richly 
 deserving of credit. 
 
 And now, if I may be permitted rather diffidently, as 
 I bring these proceedings to a close, I shall venture to ex- 
 press something of the same thoughts I have hereinbefore 
 stated in English in a few words to some of our guests 
 who may not be so familiar with English language : 
 
 Messieurs: Maintenant que les seances de la Confer- 
 ence Internationale du Commerce arrivent a leur fin, je 
 veux remercier de movreau nos amis d'Outre-Mer pour 
 leur presence ici. 
 
 Vous voudrez bien me permettre d'exprimer la grande 
 satisfaction que les hommes d'affaires Americains reunis 
 ici ont eprouvee en ayant 1'occassion de discuter les 
 grands problemes du commerce international avec les 
 hommes eminents qui representent la pensee nette, 1'ex- 
 perience mure et la courtoisie traditionnelle, et qui com- 
 posent les groupes singuliers qui sont venus chez nous, 
 d'Angleterre, de France, d'ltalie et de Belgique. 
 
 Vous nous avez, Messieurs, fait voir 1'Europe Occiden- 
 tale sous un nouveau jour. Nous connaissions 1'Europe 
 
514 THE INTERNATIONAL TRADE CONFERENCE 
 
 d'avant-guerre. Nous avions conscience de vos sacrifices 
 et de votre courage, aussi bien sur le champ de bataille,, 
 que dans vos foyers, pendant ces annees terribles de la 
 guerre. 
 
 Vous venez maintenant et vous nous nous faites voir 
 FEurope de 1'Ouest, se relevant de la douleur et de la 
 devastation, non seulement prete a assumer sa grande 
 tache de Tavenir, mais parfaitment confiante dans son 
 pouvoir de reconstruire une nouvelle Europe, une Europe 
 plus grande que jamais. 
 
 Vous nous avez fait partager votre confiance. 
 
 Vous allez maintenant passer en revue nos principales 
 villes. Vous allez rencontrer nos hommes d'affaires en 
 plus grand nombre encore. Nous desirerions que vous leur 
 fassiez entrevoir les ressources et surtout Pesprit de vos 
 differents pays comme vous nous les avez fait entrevoir, 
 ici. 
 
 Vous trouverez dans chacune des villes que vous 
 visiterez un accueil chaleureux et un esprit desireux 
 d'entendre ce que vous avez a leur dire. 
 
 Us desirent vivement connaitre les besoins de TEurope 
 comme vous nous les avez exposes ici, et nous sommes 
 certains que, lorsque vos visites dans les differentes villes 
 seront terminees, vous aurez donne a tout le peuple 
 Americain une nouvelle conception des relations com- 
 merciales et internationales. 
 
 Vous leur communiquerez quelque chose de cet enthou- 
 siasme pour vos differents pays que vous avez su nous 
 communiquer, et vous aurez ainsi pose les bases d'un 
 effort cooperatif , entre notre propre peuple et ceux de vos 
 Pays, comme jamais il n'en aura existe. 
 
 Nous felicitons vos divers pays d'avoir ete si digne- 
 ment represented a cette Conference, et nous nous 
 felicitons nous-meme de POccasion que nous avons eue 
 de vous recontrer et d'echanger, nos idees franchement 
 et amicalement. 
 
 Esperons done que, comme resultat permanent, de ces 
 grandes reunions il aura ete cree de nouveaux liens 
 d'amitie et d'entente entre la nation americaine et les 
 
THE INTERNATIONAL TRADE CONFERENCE 515 
 
 peuples des pays que vous representez, et qu'ainsi une 
 paix durable et une prosperite generate seront assurees 
 au mcmde entier. 
 
 
 THE TOJLJR. 
 
 That the business men of Europe and England might 
 have an opportunity to view personally some of the great 
 industrial centers of America, arrangements were made, 
 in cooperation with the Chambers of Commerce in such 
 cities, to visit Philadelphia, Baltimore,, Pittsburgh, Cin- 
 cinnati, St. Louis, Kansas City, Chicago, Detroit, Cleve- 
 land, Akron, Buffalo, 
 Niagara Falls, Roches- 
 ter and Boston, wind- 
 ing up with a week in 
 New York before tak- 
 ing ship for overseas. 
 While social atten- 
 tion was a necessary 
 part of the program, 
 practical observation 
 ^^^^ was the predominating 
 
 purpose, and on this 
 
 ^llj^^^^Pr trip the visitors had 
 
 ^ opportunity to visit 
 
 many of the great in- 
 dustrial plants of 
 those cities w h i c h, 
 during the war, poured 
 forth the deluge of 
 food, metal and ma- 
 terial which supplied 
 the Allied armies and completed the destruction of the 
 huge German war machine, from all which grew the ne- 
 cessity for the International Trade Conference and the 
 closer knitting of the trade ties of the world. 
 
 While social attention was a necessary part of the pro- 
 
 I 
 
 D. A. SKINNER, 
 Assistant Secretary, in Charge of Tour. 
 
516 THE INTERNATIONAL TRADE CONFERENCE 
 
 gram, practical observation was the predominating pur- 
 pose, and on this trip the visitors had opportunity to 
 visit many of the great industrial plants of those cities 
 which, during the war,, poured forth the deluge of food, 
 metal and material which supplied the Allied armies and 
 completed the destruction of the huge German war ma- 
 chine, from all which grew the necessity for the Interna- 
 tional Trade Conference and the closer knitting of the 
 trade ties of the world. 
 
 The visiting mission sailed for home on the President 
 Grant November 26, 1919. 
 
 The Committee on Tour and Transportation was com- 
 posed of the following members : 
 
 DELOS W. COOKE, Chairman; 
 
 Associate Director, Cunard Steamship Co., New York. 
 JOHN McE. BOWMAN, 
 
 Biltmore and Associated Hotels, Neiv York City. 
 OLIVER T. BOYD, 
 
 General Passenger Agent, Pennsylvania Railroad, 
 
 Broad Street Station, Philadelphia. 
 EDWARD CHAMBERS, 
 
 Director of Traffic, U. S. Railroad Administration, 
 
 Washington, D. C. 
 GEORGE W. CULLEN, 
 
 Passenger Traffic Manager, Delaware, Lackawanna & Western 
 
 Railroad, 90 West Street, New York. 
 GEORGE D. DIXON, 
 
 Vice President, Pennsylvania Railroad Company. 
 
 Broad Street Station, Philadelphia, Pa. 
 C. C. HOWARD, 
 
 Assistant Cashier, Irving National Bank, New York. 
 ALFRED H. SMITH, 
 
 President, New York Central & Hudson River Railroad Co., 
 Grand Central Terminal, New York. 
 
THE INTERNATIONAL TRADE CONFERENCE 517 
 
 GENERAL COMMITTEE. 
 
 ALFRED C. BEDFORD, Chairman. 
 JOHN H. FAHEY, Vice-Chairman. 
 ANDREW H. PHELPS, Secretary. 
 
 ADAMS, SILAS B., P. O. Box 187, Portland, Maine. 
 
 AFFLECK, B. F., President, Universal Portland Cement Co., Chi- 
 cago, 111. 
 
 AIKEN, ALFRED L., President, National Shawmut Bank, Boston, 
 Mass. 
 
 ALLEN, CHARLES L., President, The Norton Company, Worcester, 
 Mass. 
 
 BLACK, HARRY A., President, Black Hardware Co., Galveston, 
 Texas. 
 
 BLISS, C. N., JR., Bliss, Fabyan & Co., New York City. 
 
 BLUMENTHAL, GEORGE, Lazard Freres, New York City. 
 
 BOTSFORD, SAMUEL B., President, Chamber of Commerce, Buffalo, 
 New York. 
 
 BRANTINGHAM, C. S., President, Emerson-Brantingham Co., Rock- 
 ford, 111. 
 
 BROWN, JAMES, BROWN BROS. & Co., New York City. 
 
 BROWN, ORTON B., Vice-President and Treasurer, Berlin Mills Co., 
 Berlin, N. H. 
 
 BUFFINGTON, EUGENE J., Illinois Steel Co., Chicago, 111. 
 
 BUTTERWORTH, WILLIAM, President, Deere & Co., Moline, 111. 
 
 CANNING, A. J., President, Burlington Chamber of Commerce, Bur- 
 lington, Vt. 
 
 CAPWELL, H. C., President, Chamber of Commerce, Oakland, Cal. 
 
 CARLTON, A. E., President, Golden Cycle Mining and Reduction 
 Co., Colorado Springs, Colo. 
 
 CASANAS, B. C., President, New Orleans Association of Commerce, 
 New Orleans, La. 
 
 CHENEY, CHARLES, President, Silk Association of America, New 
 York City. 
 
 CHILDS, WM. HAMLIN, President, The Barrett Co., New York City. 
 
 CHILBERG, J. E., President, The Scandinavian-American Bank, 
 Seattle, Wash. 
 
 CLARKE, E. A. S., President, Consolidated Steel Corporation, New 
 York City. 
 
 CLAUSE, W. L., Chairman, Pittsburgh Plate Glass Co., Pittsburgh, 
 Pennsylvania. 
 
 CLIFTON, CHARLES, President, National Automobile Chamber of 
 Commerce, Buffalo, N. Y. 
 
 CLUETT, GEORGE ALFRED, Cluett, Peabody & Co., Troy, N. Y 
 
518 THE INTERNATIONAL TRADE CONFERENCE 
 
 COE, W. R., Chairman of Board, Johnson & Higgins, New York 
 City. 
 
 COFFIN, CHARLES F., President, Chamber of Commerce, Indian- 
 apolis, Ind. 
 
 COOKE, DELOS W., Cunard Steamship Line, New York City. 
 
 COONLEY, HOWARD, President, Walworth Co., Boston, Mass. 
 
 CORBETT, H. L., President, Chamber of Commerce, Portland, Ore. 
 
 CRADDOCK, JOHN W., President, Craddock-Terry Co., Lynchburg, 
 Virginia. 
 
 CRAWFORD, GEO. C., President, Tennessee Coal & Iron R. R. Co., 
 Birmingham, Ala. 
 
 CROOKER, GEO. L., President Providence Chamber of Commerce, 
 Providence, R. I. 
 
 CROSBY, JOHN, President, Washburn-Crosby Co., Minneapolis, 
 Minn. 
 
 CROWDER, A. C., President, Chamber of Commerce, Birmingham, 
 Alabama. 
 
 CROWELL, H. P., Quaker Oats Co., Chicago, 111. 
 
 CULLEN, JAMES K., Niles-Bement-Pond Co., New York City. 
 
 CUYLER, THOS. DEWITT, Commercial Trust Bldg., Philadelphia, Pa. 
 
 CALWELL, CHARLES S., President, Corn Exchange Bank, Philadel- 
 phia, Pa. 
 
 CARRY, EDW. F., President, Haskell-Barker Car Co., Chicago, 111. 
 
 DAVIS, J. H., President, Chamber of Commerce, Tacoma, \Vash. 
 
 DEAN, WM. J., Nichols, Dean & Gregg, St. Paul, Minn. 
 
 DEFREES, JOSEPH H., Defrees, Buskingham & Eaton, Chicago, 111. 
 
 DENNISON, HENRY F., Dennison Manufacturing Co., Framingham, 
 Mass. 
 
 DOBBS, SAMUEL C., President, Chamber of Commerce, Atlanta, Ga. 
 
 DOLLAR, ROBERT, President, Robert Dollar Co., San Francisco, Cal. 
 
 DRYDEN, FORREST F., President, Prudential Insurance Co., New- 
 ark, N. J. 
 
 DURAND, W. C., President, General Motors Corporation, New York 
 City. 
 
 DYER, WILLIAM ALLEN, President, Chamber of Commerce, Syra- 
 cuse, N. Y. 
 
 EASLEY, JOHN G., President, Chamber of Commerce, Richmjnd, Va, 
 
 ECKER, FREDERICK H., Vice-President, Metropolitan Life Insurance 
 Co., New York City. 
 
 EDSON, JOHN JOY, Chairman, Washington Loan & Trust Co., 
 Washington, D. C. 
 
 ELTON, JOHN P., President, American Brass Co., Waterbury, Conn. 
 
 ENDICOTT, HENRY B., Endicott, Johnson Corporation, Boston, Mass. 
 
 ERSKINE, A. R., President, Studebaker Co., South Bend, Ind. 
 
 FARQUHAR, A. B., A. B. Farquhar Co., Ltd., York, Pa. 
 
 FARRELL, JAMES A., President, United States Steel Corporation, 
 New York City. 
 
THE INTERNATIONAL TRADE CONFERENCE 519 
 
 FEISS, PAUL F., President, Chamber of Commerce, Cleveland, Ohio. 
 
 FELT, DORR E., President, Felt, Torrant Mfg. Co., Chicago, 111. 
 
 FERGUSON, HOMER L., President, Newport News Shipbuilding & 
 Dry Dock Co., Newport News, Va. 
 
 FILENE, EDWARD A., Wm. Filene Sons' Co., Boston, Mass. 
 
 FLETCHER, ANDREW, President, American Locomotive Co., New 
 York City. 
 
 FLETCHER, D. W., U. S. Senator, Jacksonville, Fla. 
 
 FRANKLIN, P. A. S., President, International Mercantile Marine 
 Co., New York City. 
 
 FREDERICKSON, G., President, Chamber of Commerce, Oklahoma 
 City, Okla. 
 
 FREEMAN, CHARLES D., President, New Jersey State Chamber of 
 Commerce, Newark, N. J. 
 
 FREED, LESTER D., President, Commercial Club, Salt Lake City, 
 Utah. 
 
 GADSDEN, P. II., Vice-President, United Gas Improvement Co., 
 Philadelphia, Pa. 
 
 GAGE, D. S., President, Chamber of Commerce, Houston, Texas. 
 
 GAILOR, THOS. F., Bishop of Tennessee, Sewanee, Tenn. 
 
 GAMBLE, JOHN W., President, Chamber of Commerce, Omahn, Neb. 
 
 GARRETT, ROBERT, Robert Garrett & Sons, Baltimore, Md. 
 
 GARY, E. H., Chairman of Board, U. S. Steel Corporation, New 
 York City. 
 
 GEORGE, CHARLES C., President, City National Bank Building, 
 Omaha, Neb. 
 
 GIBBS, EDWIN C., President, Chamber of Commerce, Cincinnati, 
 Ohio. 
 
 GILLETTE, L. S., President, Plymouth Investment Co., Minneapolis, 
 Minn. 
 
 GLASS, FRANK P., President, American Newspaper Publishing As- 
 sociation, Birmingham, Ala. 
 
 GRACE, JOSEPH P., President, W. R. Grace & Co., New York City. 
 
 GREENE, EDWIN FARNHAM, Lockwood, Greene & Co., Boston, Mass. 
 
 HAILE, JOHN H., President, Chamber of Commerce, San Antonio, 
 Texas. 
 
 HANDY, H. H. S., President, Semet-Solvay Co., Syracuse, N. Y. 
 
 HAYDEN, CHARLES, Hayden, Stone & Co., New York City. 
 
 HEPBURN, A. BARTON, Chairman of Advisory Board, Chaso Na- 
 tional Bank, New York City. 
 
 HERR, E. M., President, Westinghouse Electric & Manufacturing 
 Co., Pittsburgh, Pa. 
 
 HERRICK, MYRON T., Chairman of Board, Union Carbide & Car- 
 bon Co., Cleveland, Ohio. 
 
 HILL, Louis W., Chairman, Great Northern Railroad, St. Paul, 
 Minn. 
 
520 THE INTERNATIONAL TRADE CONFERENCE 
 
 HODGES, WM. V., President, Civic and Commerce Association, Den- 
 ver, Colo. 
 
 HOLLISTER, GRANGER A., Vice-President, Rochester Railway and 
 Light Co., Rochester, N. Y. 
 
 HOWARD, CLARENCE H., President, Commonwealth Steel Co., St. 
 Louis, Mo. 
 
 HULBERT, E. D., President, Merchants' Loan & Trust Co., Chi- 
 cago, 111. 
 
 HARTMAN, GEORGE, President, Commerce Club, Toledo, Ohio. 
 
 JACKSON, T. E. President, Chamber of Commerce, Dallas, Texas. 
 
 HAMES, LEE WARREN, President, Chamber of Commerce, Dayton, 
 Ohio. 
 
 JOHNSON, ALBA B., President, Pennsylvania State Chamber of 
 Commerce, Philadelphia, Pa. 
 
 JOHNSON, JACKSON, President, Chamber of Commerce, St. Louis, 
 Missouri. 
 
 JOHNSTON, F. H., President, The City Coal & Wood Co., New 
 Britain, Conn. 
 
 KAHN, OTTO H., Kuhn, Loeb & Co., New York City. 
 
 KAINS, ARCHIBALD, President, American Foreign Banking Cor- 
 poration, New York City. 
 
 KELLY, H. J., Sioux Falls Chamber of Commerce, Sioux Falls, 
 S. Dak. 
 
 KELL, FRANK, President, Wichita Mill & Elevator Co., Wichita 
 Falls, Texas. 
 
 KEITH, CHARLES S., President, Central Coal & Coke Co., Kansas 
 City, Mo. 
 
 KENT, JOHN S., President, National Boot & Shoe Mfg. CD., Bos- 
 ton, Mass. 
 
 KINGSBURY, F. J., President, Bridgeport Brass Co., Bridgeport, 
 Conn. 
 
 KINGSLEY, DARWIN P., President, New York Life Insurance Co., 
 New York City. 
 
 KOSTER, FREDERICK J., President, California Barrel Co., San Fran- 
 cisco, Cal. 
 
 KNIGHT, CHARLES S., President, Chamber of Commerce, Reno, Nev. 
 
 LAMONT, R. P., President, American Steel Foundries, Chicago, 111. 
 
 LANGDON, CAVON S., President, Civic & Commerce Association, 
 Minneapolis, Minn. 
 
 LANDON, A. A., Vice-President, American Radiator Co., Buffalo, 
 New York. 
 
 LANDON, HUGH McK., Banker, Indianapolis, Ind. 
 
 LAYMAN, W. A., President, Wagner Electric Co., St. Louis, Mo, 
 
 LEE, IVY L., The Merchants' Association of New York, New York 
 City. 
 
 LUFKIN, E. C., President, Texas Company, New York City. 
 
 NAGEL, CHARLES, Nagel & Kirby, St. Louis, Mo. 
 
THE INTERNATIONAL TRADE CONFERENCE 521 
 
 McBEAN, ATHOL, President, Chamber of Commerce, San Fran- 
 cisco, Cal. 
 
 MCCOMBER, JOHN G., President, Boston Chamber of Commerce, 
 Boston, Mass. 
 
 McCoRMiCK, HAROLD F., President, International Harvester Co., 
 Chicago, 111. 
 
 MCCORMICK, R. A., McCormick & Co., Baltimore, Md. 
 
 MCFADDEN, GEO., Geo. H. McFadden & Bro., Philadelphia, Pa. 
 
 McKAY, O. L., President, Meridian Board of Trade, Meridian, Miss. 
 
 McLucAS, WALTER S., President, Chamber of Commerce, Kansas 
 City, Mo. 
 
 MACROBERTS, SAMUEL, National City Bank, New York City. 
 
 MARLING, ALFRED E., President, Chamber of Commerce, New York 
 City. 
 
 MADDOX, ROBERT F., President, Mellon National Bank, Pittsburgh, 
 Pennsylvania. 
 
 MARTIN, THOMAS L., President, Chamber of Commerce, Boise, 
 Idaho. 
 
 MATHER, SAMUEL, Mather & Co., Cleveland, Ohio. 
 
 MATTAI, WILLIAM H., President, Merchant and Manufacturer As- 
 sociation, Baltimore, Md. 
 
 MELLON, A. W., President, Mellon National Bank, Pittsburgh, Pa. 
 
 MEREDITH, E. T., Publisher, "Successful Farming," Des Moines, 
 Iowa. 
 
 MERRICK, HARRY H., President, Association of Commerce, Chi- 
 cago, 111. 
 
 MEYERS, H. P., President, Association of Public and Business Af- 
 fairs, St. Paul, Minn. 
 
 MINER, EDWARD G., President, The Pfaudler Co., Rochester, N. Y. 
 
 MOORE, DR. JOHN B., 267 West 73rd Street, New York City. 
 
 MORELAND, WATT L., President, Chamber of Commerce, Los An- 
 geles, Cal. 
 
 MORGAN, WM. FELLOWES, President, Merchants' Association, New 
 York City. 
 
 MORSE, CHARLES A., Governor, Federal Reserve Bank, Boston, 
 Mass. 
 
 NEWTON, A. E., President, National Machine Tool Builders' Asso- 
 ciation, Worcester, Mass. 
 
 NICHOLS, DR. W. H., President, General Chemical Co., New York 
 City. 
 
 OSTEREICH, W. C., President, Chamber of Commerce, Albuquerque, 
 New Mexico. 
 
 O'LEARY, JOHN W., Arthur J. O'Leary & Son, Chicago, 111. 
 
 OLIVER, GEORGE S., President, Chamber of Commerce, Pittsburgh,. 
 Pennsylvania. 
 
 OTIS, CHARLES A., Cuyahoga Building, Cleveland, Ohio. 
 
 PARKER, JOHN M., John M. Parker Co., New Orleans, La. 
 
522 THE INTERNATIONAL TRADE CONFERENCE 
 
 PARSON, REGINALD, President Chamber of Commerce, Seattle 
 Wash. 
 
 PATTERSON, JOHN H., National Cash Register Co., Dayton, Oh?o. 
 
 PEABODY, FRANK S., Peabody Coal Co., Chicago, 111. 
 
 PIERCE, BRADFORD D., President, Chamber of Commerce, Bridge- 
 port, Conn. 
 
 PIERSON, LEWIS E., Chairman, Irving National Bank, New York 
 City. 
 
 PORTER, A. J., Chairman of Board, Shredded Wheat Co., Buffalo, 
 New York. 
 
 POST, JAMES H., B. H. Howell, Son & Co., New York City. 
 
 POWELL, J. L., President, Wichita Wholesale Grocery Co., Wichita, 
 Kan. 
 
 RAWSON, F. H., President, Union Trust Co., Chicago, 111. 
 
 REA, SAMUEL, President, Pennsylvania R. R. Co., Philadelphia. Pa. 
 
 REICER, C. W., President, Chamber of Commerce, Cheyenne, Wyo. 
 
 REYNOLDS, GEO. M., President, Continental & Commercial Na- 
 tional Bank, Chicago, 111. 
 
 RHETT, R. GOODWYN, President, Peoples National Bank, Charles- 
 ton, S. C. 
 
 RILEY, R. SANFORD, President, Chamber of Commerce, Worcester, 
 Mass. 
 
 RUE, LEVI L., President, Philadelphia National Bank, Philadel- 
 phia, Pa. 
 
 RYAN, JOHN D., Anaconda Copper Mining Co., New York City. 
 
 SABIN, CHARLES H., President, Guaranty Trust Co., New York City. 
 
 SANDERS, M. J., Agent, Leyland Line, New Orleans, La. 
 
 SAULSBURY, L. K., President, Chamber of Commerce, Memphis, 
 Tenn. 
 
 SAUNDERS, W. L., Ingersoll Rand Co., New York City. 
 
 SCHWAB, CHARLES M., Chairman of Board, Bethlehem Steel Cor- 
 poration, New York City. 
 
 SCOTT, F. R., President, Chamber of Commerce, Fargo, N. Dak. 
 
 SCOTT, ISAAC M., President, Chamber of Commerce, Wheeling, 
 W. Va. 
 
 SEGER, C. B., President, United States Rubber Co., New York City. 
 
 SEIBERLING, F. A., President, Goodyear Tire & Rubber Co., Akron, 
 Ohio. 
 
 SELZ, J. HARRY, President, Selz, Schwab & Co., Chicago, 111. 
 
 SHARPE, HENRY D., Browne & Sharpe Mfg. Co., Providence, R. I. 
 
 SIMMONS, WALLACE D., Simmons Hardware Co., St. Louis, Mo. 
 
 SIMPSON, JAMES, Vice-President, Marshall Field & Co., Chicago, 
 Illinois. 
 
 SMITH, GEO. ED., President, Royal Typewriter Co., New York City. 
 
 SMITH, THOMAS FLOYD, President, Board of Trade, Louisville, Ky 
 
 STONE, CHARLES A., President, American International Corpora- 
 tion, New York City. 
 
 STORROW, JAMES J., Lee, Higginson & Co., Boston, Mass. 
 
THE INTERNATIONAL TRADE CONFERENCE 523 
 
 STOTESBURY, E. T., Drexel-Morgan Co., Philadelphia, Pa. 
 STRATTON, H. M., President, Chamber of Commerce, Milwaukee, 
 
 Wisconsin. 
 
 SWASEY, AMBROSE, Warner & Swasey Co., Cleveland, Ohio, 
 SWIFT, Louis F., President, Swift & So., Chicago, 111. 
 TAYLOR, FREDERICK W., President, Chamber of Commerce, Tucson, 
 
 Ariz. 
 TEMPLETON, ALLAN A., President, Board of Commerce, Detroit, 
 
 Mich. 
 THOMPSON, ROY L., President, Chamber of Commerce, Little "Rock, 
 
 Ark. 
 
 THORNE, ROBERT J., President, Montgomery, Ward & Co., Chi- 
 cago, 111. 
 ULLMAN, ISAAC M., President, New Haven Chamber of Commerce, 
 
 New Haven, Conn. 
 VICTOR, HENRY M., President, Union National Bank, Charlotte, 
 
 North Carolina. 
 
 VOGEL, AUGUST H., Pfister & Vogel, Milwaukee, Wis. 
 WADE, FESTUS J., President, Mercantile National Bank, St. Louis, 
 
 Missouri. 
 WALTERS, HENRY, Chairman of Board Safe Deposit & Trust Co., 
 
 Baltimore, Md. 
 WARFIELD, S. DAVIS, President, Continental Trust Co., Baltimore, 
 
 Maryland. 
 WEAVER, JAMES B., President, Chamber of Commerce, Des Mojres, 
 
 Iowa. 
 
 WELBORN, J. F., President, Colorado Fuel & Iron Co., Denver, Cclo. 
 WHEELER, HARRY A., President, Union Trust Co., Chicago, III 
 WHITE, JAMES G., President, J. G. White & Company, Inc., New 
 
 York City. 
 WHITMARSH, THEO. F., Vice-President, Francis Leggett & Co., 
 
 New York City. 
 
 WHITRIDGE, HORATIO L., Inter-Allied Trading Corporation, Balti- 
 more, Md. 
 
 WILSON, THOS. E., President, Wilson & Co., Chicago, 111. 
 WILCOX, WILLIAM G., President, Wilcox, Peck & Hughes, New 
 
 York City. 
 
 WING, DANIEL G., President, First National Bank, Boston, Mass. 
 WOODIN W. H., American Car & Foundry Company, New York 
 
 City. 
 WOOLLEY, CLARENCE, M., President, American Radiator Company, 
 
 Chicago, 111. 
 
 WILLARD, DANIEL, President, Baltimore & Ohio R. R. Co., Bal- 
 timore, Md. 
 YOUNG, OWEN D., Vice-President, General Electric Company, New 
 
 York City. 
 
524 THE INTERNATIONAL TRADE CONFERENCE 
 
 OFFICERS AND DIRECTORS OF THE CHAMBER OF 
 COMMERCE OF THE UNITED STATES. 
 
 President, 
 
 HOMER L. FERGUSON, Newport News, Va. 
 President, Newport News Shipbuildmg and Dry Dock Co. 
 
 Honorary Vice-Presidents, 
 JOHN H. FAHEY, Boston, Mass. 
 
 Publisher and Manufacturer. 
 CHARLES NAGEL, St. Louis, Mo., 
 
 Attorney, Former Secretary of Commerce and Labor, U. S. A. 
 HARRY A. WHEELER, Chicago, 111. 
 Vice-President, Union Trust Co. 
 
 A. B. FARQUHAR, York, Pa., 
 
 President, A. B. Farquhar Co., Ltd., Mfgs. Farm Implements. 
 
 R. GOODWYN RHETT, Charleston, S. C. 
 
 President, Peoples National Bank. 
 
 Vice-Presidents, 
 
 ALFRED C. BEDFORD, New York, N. Y., 
 Chairman of the Board, Standard Oil Company. 
 
 JOSEPH H. DEFREES, Chicago, 111., 
 
 Defrees, Buckingham & Eaton, Attorneys. 
 
 THOMAS F. GAILOR, Sewanee, Tenn., Bishop of Tennessee. 
 
 Treasurer, 
 
 JOHN JOY EDSON, Washington, D. C., 
 Chairman of the Board, Washington Loan & Trust Co. 
 
 Chairman, Executive Committee. 
 JOSEPH H. DEFREES, Chicago, 111. 
 
 General Secretary, 
 ELLIOT H. GOODWIN, Washington, D. C. 
 
 Assistant Secretiry, 
 D. A. SKINNER, Washington, D. C. 
 
 DIRECTORS. 
 
 S. B. ANDERSON, Memphis, Tenn., President, Anderson-Tully Co. 
 MAX W. BABB, Milwaukee, Wis., President, Allis-Chalmers Mfg. Co. 
 GEORGE H. BARBOUR, Detroit, Mich., President, Michigan Stove Co 
 J. K. BRANCH, Richmond, Va., President, Merchants National Bank. 
 
THE INTERNATIONAL TRADE CONFERENCE 525 
 
 WILLIAM BUTTERWORTH, Moline, 111, President, Deere & Co. 
 
 A. E. CARLTON, Colorado Springs, Colo., Mining and Farming. 
 
 J. E. CHILBERG, Seattle, Wash., President, Scandinavian American 
 Bank. 
 
 W. L. CLAUSE, Pittsburgh, Pa., Chairman of Board, Pittsburgh 
 Plate Glass Co. 
 
 EDWARD A. FILENE, Boston, Mass., President, Wm. Filene Sons* Co. 
 
 P. H. GADSDEN, Charleston, S. C., President, Charleston Consoli- 
 dated Railway & Light Co. 
 
 CHARLES C. GEORGE, Omaha, Neb., President, George & Company. 
 
 L. S. GILLETTE, Minneapolis, Minn., President, Plymouth Invest- 
 ment Co. 
 
 GRANGER A. HOLLISTER, Rochester, N. Y., Vice-President Rochester 
 Railway and Light Co. 
 
 CLARENCE H. HOWARD, St. Louis, Mo., President, Commonwealth 
 Steel Co. 
 
 FRANK H. JOHNSTON, New Britain, Conn., President, City Cool & 
 Wood Co. 
 
 FRANK KELL, Wichita Falls, Texas, Miller and Stockman. 
 
 FREDERICK J. KOSTER, San Francisco, Cal., President, California 
 Barrel Co. 
 
 JAMES R. MACCOLL, Pawtucket, R. L, Treasurer, Lorraine Mfg. Co. 
 
 R. A. MCCORMICK, Baltimore, Md., Vice-President, McCormick 
 & Co. 
 
 CHARLES A. OTIS, Cleveland, Ohio, Otis & Co. 
 
 LEWIS E. PIERSON, New York, N. Y., Chairman of Board, Irving 
 National Bank. 
 
 JOHN L. POWELL, Wichita, Kan., President, The Johnston & Lari- 
 mer Dry Goods Co. 
 
 M. J. SANDERS, New Orleans, La., Manager, Leyland Line. 
 
 ERNEST T. TRIGG, Philadelphia, Pa., Vice-President and Manager, 
 John Lucas & Co. 
 
 HENRY M. VICTOR, Charlotte, N. C., President, Union National 
 Bank. 
 
526 THE INTERNATIONAL TRADE CONFERENCE 
 
 ADMINISTRATIVE ORGANIZATION, CHAMBER OF 
 COMMERCE OF THE UNITED STATES. 
 
 General Secretary, 
 ELLIOT H. GOODWIN. 
 
 Assistant Secretary, 
 D. A. SKINNE?,. 
 
 Research Bureau, 
 
 JOHN M. REDPATH, ELMER J. DAVIDSON, 
 
 Chief. Assistant Chief. 
 
 LACEY C. ZAPF, J. E. FITZGERALD, 
 
 Assistant Chief. Assistant Chief. 
 
 W. M. MACKIE, Legislative Assistant. 
 
 Organization Service Bureau, 
 
 COLVIN B. BROWN, F. S. FITZPATRICK, 
 
 Chief. Assistant Chief. 
 
 Field Division, 
 
 FRED N. SHEPHERD, JOHN N. VAN DER VRTES, 
 
 Manager. Secretary, Central District. 
 ANDREW H. PHELPS, PAUL CLAGSTONE, 
 
 Secretary, Eastern District. Secretary, Western District. 
 
 Field Secretaries, 
 
 W. ESVEY ALBIG A. P. PERKINS 
 
 W. G. G. BENWAY WM. D. SOUTHWICK 
 
 VERNON E. BLAGBROUGH C. W. STOWELL 
 
 ADOLPH BOLDT M. B. TREZEVANT 
 
 G. H. MOSELEY JOHN T. WEBBER. 
 H. 0. PATTON 
 
 The Nation's Business, 
 
 MERLE THORPE, Editor and General Manager. 
 
 F. S. TISDALE, Managing Editor. 
 
 BEN H. LAMBE, Associate Editor. 
 
 JOHN G. HANRAHAN, JR., Business Manager. 
 
 GEORGE K. MYERS, Eastern Advertising Manager. 
 
 VICTOR WHITLOCK, Western Advertising Manager. 
 
THE INTERNATIONAL TRADE CONFERENCE 527 
 
 Chairmen of the Missions 
 
 Standing left to right: 
 
 (1) Sir Arthur Shirley Benn, K. B. E., M. P. 
 
 (2) Comm. Engineer Fernando Quartieri 
 
 (3) M. Eugene Schneider 
 
 (4) Mr. Alfred C. Bedford 
 
 (5) M. Florimond Hankar. 
 
528 
 
 THE INTERNATIONAL TRADE CONFERENCE 
 
 Members of the Belgian Mission 
 
 Standing left to right: 
 
 (1) Mr. John N. Van der Vries 
 
 (2) M. Alexandra de Groote 
 
 (3) M. K. C. Adams 
 
 (4) M. Charlier. 
 
 Seated left to right: 
 
 (1) Prof. Paul Van den Ven 
 
 (2) M. Canon-Legrand 
 
 (3) M. Florimond Hankar 
 
 (4) M. Albert Neve 
 
 (5) M. Albert E. Janssen. 
 
THE INTERNATIONAL TRADE CONFERENCE 529 
 
 Members of the British Mission 
 
 Standing left to right: 
 
 (1) Lieut. A. S. Jarratt 
 
 (2) Hon. J. Joyce Broderick 
 
 (3) Sir James Hope Simpson 
 
 (4) Mr. Frank Moore 
 
 (5) Mr. George Berks. 
 
 Seated left to right: 
 
 (1) Mr. Marshall Stevens, M. P. 
 
 (2) Sir Arthur Shirley Benn, K. B. E., M. P. 
 
 (3) Bailie John King 
 
 (4) Hon. J. G. Jenkins. 
 
530 
 
 THE INTERNATIONAL TRADE CONFERENCE 
 
 Members of the 
 
 Standing left to right: 
 
 (1) M. le Commandant Varaigne 
 
 (2) M. Parmentier 
 
 (3) M. Harinkouc 
 
 (4) M. Collin 
 
 (5) M. Dolleans 
 
 (6) M. Maurice Boyer 
 
 (7) M. Mazot. 
 Seated left to right: 
 
 (1) M. Pellerin de la Touche 
 
 (2) M. Waddington 
 
 (3) M. Julien Potin 
 
 (4) M. le Baron du Marais. 
 
THE INTERNATIONAL TRADE CONFERENCE 
 
 531 
 
 French Mission 
 
 Standing left to right: 
 
 (1) M. Pesson-Didion 
 
 (2) M. Francois-Poncet 
 
 (3) M. Ingouf 
 
 (4) M. Loizeau 
 
 (5) M. Lehideux. 
 
 Seated left to right: 
 
 (1) M. Eugene Schneider 
 
 (2) M. Tirman 
 
 (3) M. Roche 
 
 (4) M. de Freminville. 
 
532 THE INTERNATIONAL TRADE CONFERENCE 
 
 Members of the 
 
 PI 
 
 Standing left to right: 
 
 (1) Mr. Antonio Agresti 
 
 (2) Dr. Joseph Chiesa 
 
 (3) Comm. Ersilio Baroni 
 
 (4) Marquis T. Theodoli 
 
 (5) Chevalier Giovanni Fummi. 
 Seated left to right: 
 
 (1) Comm. Pietro Giovanni Lazzerini 
 
 (2) Comm. Pro. Vittorio Meneghelli 
 
 (3) Comm. Prof. Bernardo Attolico. 
 
THE INTERNATIONAL TRADE CONFERENCE 533 
 
 Italian Mission 
 
 Standing left to right: 
 
 (1) Engineer Mario Luiggi 
 
 (2) Mrs. Antonio Agresti 
 
 (3) Mr. Arturo Anzani 
 
 (4) Mr. Paul Clagstone 
 
 (5) Dr. Ildo Marchisio 
 
 (6) Comm. Augusto Jaccarino. 
 Seated left to right: 
 
 (1) Comm. Engineer Ferdinando Quartieri 
 
 (2) Comm. Domenico Gidoni 
 
 (3) Comm. Engineer Dr. Luigi Luiggi. 
 
GENERAL LIBRARY 
 UNIVERSITY OF CALIFORNIA BERKELEY 
 
 RETURN TO DESK FROM WHICH BORROWED 
 
 This book is due on the last date stamped below, or on the 
 
 date to which renewed. 
 Renewed books are subject to immediate recall. 
 
 FEB 7 - 1955 
 
 REC'D LD 
 
 21-100m-l, '54 (1887sl6)476 
 
UNIVERSITY OF CALIFORNIA LIBRARY