Advantages Of Direct Service

The American importer in this connection is able to spare himself from the contingencies frequently arising in connection with foreign shipments, such as short weights, losses, damages, etc.. If it should happen that they occur, they may be adjusted more properly, cheaply and effectively between the American banker and the foreign shipper or his bank, than if such adjustments had to be made via the London banker as would be necessary in using a sterling credit. At the present time this convenience is of exceptional importance to the American importer as the abnormal fluctuation in prices for all kinds of merchandise makes or unmakes a deal, according to the promptness with which the bank is able to support the transaction on behalf of the importing merchant. This is an advantage of dealing directly and in which the elimination of a second intermediary party cuts out time and trouble otherwise incurred.

Economic Value To The Nation Arising From The Use Of Dollar Credits

Quite apart from the direct economy to the individual resulting from the use of the dollar credit is the broader question of the economic value accruing to the nation as a whole through the designation of the dollar as the basis of value in our credit transactions with the rest of the world. The volume of our imports during the past decade has increased rapidly. Before 1900, the total of our imports amounted to less than one billion dollars. The volume today has risen to from three to four billion dollars. Included in the imports are products from all parts of the world shipped direct to our own shores, and while no nation enjoys higher international credit than the United States, yet it is a fact, that in order to finance the movement of our imports, we have been compelled to have recourse to indirect channels and call on foreign money centers to furnish us with the necessary credit facilities to take care of a large part of our imports. For this accommodation, the American merchant has had to pay millions of dollars annually, in interest, commissions and other charges. Today, with the general adoption of the dollar credit and its more extended use, these charges can be saved and an economy effected to the benefit of our commerce as a whole.

At no time in the economic history of the United States has the purchasing power of the dollar in foreign markets been greater than it is today because of the varying premium which the dollar commands at present, practically throughout the world. The time is present to increase the prestige of the dollar and to standardize its use in the liquidation of our direct purchases abroad. To this end, the co-operation of the merchants of the country and of the bankers to extend the use of dollar credits is, therefore, necessary.