656 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

offered; and, with the permission of the Board, up to 100 per cent
of the unimpaired capital and surplus. No very great use of such
acceptances has yet been made; but it seems reasonable to look for
a gradual approximation to European customs, at least for the
export trade. American commerce ‘could not but be facilitated by
conforming in this respect to the terms on which Latin-American
and Asiatic purchasers have been accustomed to buy in Europe.
The American banks in foreign countries will naturally and almost
necessarily supply the credit service which has been spoken of above
(p- 60) as one of the important functions of European foreign-trade
banks and their connections. The National City Bank plans to keep
at its main office in New York a duplicate set of the credit files of
its South American branches.
Americans have not, however, been wholly destitute heretofore of
means of obtaining credit ratings. Both the Bradstreet Co. and
R. G. Dun &amp; Co. have for years had foreign branches. Dun has
more than 80, Bradstreet more than 100. These are supplemented, as
in this country, by correspondents where there are no branches. The
National Association of Manufacturers, with headquarters at New
York, and the Philadelphia Commercial Museum have long maintained
 foreign credit services. Information may often be obtained
also through foreign banks in New York. Nevertheless the present
American banking and credit facilities available for foreign business
are far inferior to the British facilities that British traders enjoy,
and to the German foreign trade financial organization that was so
potent in fostering German trade before the war, and to this extent
American manufacturers, exporters, and importers are at a disadvantage.
 This can only be remedied by the continued extension of
American banking and credit institutions into the foreign markets,
where thev are most needed as agencies of American commerce.

SECTION 4. FOREIGN INVESTMENTS OF THE CHIEF TRADING
NATIONS.

The investment of capital in other countries is an effective means of
increasing trade with such countries. This results not only from the
naturally increased demands of such countries, as their own industrial
development proceeds, but also from the fact that the investors
usualy purchase supplies and equipment for foreign enterprises from
the fiome country. Indeed, European nations have frequently made
such purchases a condition of loans and investment.
The Commission does not advocate a similar policy on the part of
American manufacturers or the Government of the United States.
In discussing the foreign investments of the chief commercial nations
it is merely presenting the facts concerning one of the important
competitive factors which Americans encounter in foreign trade.