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.
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