reigners who in so many places help to form an
atmosphere favorable to their countries' interests.

They would work to replace with our goods those now shut off by the war,
but also to introduce dozens of lines of American products which are now
comparatively hard to find in these markets. A number of strong firms
might join to establish commercial houses or selling agencies in trade
centres of certain groups of countries. Commission houses might do the
same if they carried samples and instructed their clients in packing,
credits, &c., but in each case there should be American houses on the
spot which would carry general lines and supply to the eye that visible
evidence of the goods themselves which is such a valuable form of
advertisement.

In the establishment of American houses in these countries, as in many
other respects, much may be learned from the Germans. They bring out
carefully selected young men. These, if efficient, have sure promotion.
The partners retire before old age to make room for those who work up.
The inefficient are dropped. It is a little like the principle of a good
foreign service.

I think the most minute study should be given, first, to the nearer
countries, say those north of the Equator, including the republics of
the Caribbean. Each country must be separately studied. Primarily, there
will be found a cry, sometimes desperate, for capital. Public works,
concessionary and otherwise, have stopped for lack of funds from Europe.
New developments in railroad building, mining, harbor works,
plantations, are arrested. Where European credits have been customarily
used to handle crops, there is distress, and no less so in cases in
which such credit has previously been given by ostensibly American
houses operating really with European capital.

American capital may come to the rescue by advances upon good security
through local banks. It can establish banks or buy controlling interests
in existing banks, many of which pay their stockholders 15 per cent. or
more. It can relieve the stagnation and make profitable investment by an
active campaign for public and private contracts and for sound and fair
concessions, not visionary or get-rich-too-quick schemes.

Supposably, the repairing of the destruction brought by the war will
make European capital scarce for some years, but an effort will
doubtless be made to retain for it its former preponderance in these
countries; and so it is important that, w