1.—7.

130

[gilbebt andeeson.

Previous to the war all the non-American companies had been rendered virtually bankrupt, and the price of stock had fallen, while only such quantities as the " Four " would permit were allowed to be purchased or shipped. Instead of American trust methods being favourable to the increased production of stock, we find that in the United States, with all the circumstances of extensive territory, varied climate—from semi-tropical to temperate —cheap foodstuffs, there has been a steady decline in cattle of over ten millions, equal to 20 per cent., and a decrease of five million sheep, equal to 10 per cent., all within the last ten years, and carries fewer sheep and cattle than any meat-producing country in the world. Further than this, the United States of America has a highly paid population, able to pay high prices for meat. The danger and dominance of the American trust to the Empire's supply of meal dales from their entry into the Argentine. This was made possible by the American system of finance and their position as large freight contractors. Being combined, they were in a position to demand special freight facilities, and on their entry into the Australian trade they openly stated that they would only buy free on board, as they had freight at |d., equal to 20 per cent., below other shippers. In regard to finance, American banking methods differ vitally from British or colonial banking. American banks take an active and direct interest in placing the shares, debenture, and stock of their important clients, and encourage their customers and others throughout the States to subscribe to the same. The stock is kept open and not closed, and is constantly augmented. Swift's are daily selling new shares. The American method enables the trader to have abundant capital, while the bankers are constantly on the outlook for fresh business which can be brought under control. Apart from providing capital, American firms are placed in a better position than British firms, exactly as the Germans were, by the extensive use of British banking credit. The American banker opens extensive credits with and through British and colonial banks. The drafts against these credits are drawn at long currency, usually ninety days' sight. These, with the documents, are handed over to the American bank on acceptance, who on their part transfer to their customer. The American firm gets the goods with something like ninety days' credit, and as meat is sold for cash against, the delivery order, his business is largely carried on by British capital. In contrast to this British and colonial banks only hand over documents for cash, whether the draft has matured or not. The British or colonial firm has to work entirely on his own capital, and obtains no advantage of long-dated credit, while his foreign rival by a different banking system carries on his business with British credits — i.e., British capital. The following table gives the shipments from the Argentine and Uruguay of the Amerioan trust and of the British and native companies, showing the enormous preponderance of the American control, representing 6643 percentage of beef for the Army, 628.3 per cent, mutton, 6578 per cent, chilled beef—free meat sold at prices far in advance of Government-controlled meat. The profits which the Americans have made are enormous, and represent a tax on the Empire, for which they make no return.

South American Exports of Frozen and Chilled Beef from Argentine and Uruguay.

Year 1916. Year 1915. Companies. Frozen Sheep and Lambs, Quarters Frozen Beef. Quarters Chilled Beef. Frozen Sheep and Lambs. Quarters Frozen Beef. Quarters Chilled Beef. I American. La Blancas, S.A. La Plata Cold Storago Company (Swift) .. Frigorifica Argentine Central . . ■ ■ ■ Frigorifica Armour do la Plata, S.A. Frigorifica Montevideo (Swift) 326,978 409,724 229,672 274,486 101,322 611,323 1,082,456 289,717 700,656 717,020 128,392 217,348 64,689 103,518 99,174 115,208 427,970 117,597 26,014 91,275 504,778 1,052,492 241,781 327,849 726,214 216,699 330,500 I .')4,864 28,996 170.451 1,342,182 3,401,172 613,121 778,064 2,853,114 881,510 Percentage of total 62-33 64-43 65-73 49-91 64-84 67-35 Other Companies. Compania Sansinena do Oarnes Oongeladas Las Palmas Produce Company The Smithfield and Argentine Meat, Company La Frigorifica Uruguaya 395 494 291,200 71,533 52,852 292,247 806,788 289,826 329,210 68,574 178,484 55,330 16,997 490,283 190,185 56,137 44,149 315,402 557,529 202,411 471,387 47,025 251,575 100,017 28,643 811,079 1,718,071 319,385 780,754 1,546,729 427,260 Percentage of total 37-67 33-57 34-27 ,50-09 35-16 32-65 lias Palmas Produce Company (on account British Government) 551,000 57,000 American companies Other companies Si 1MAKY. 1,342,182 811,079 3,401,172 1,718,071 613,121 319,385 778,064 780,754 2,853,114 1,546,729 881,510 427,260 Total On account British Government, 2,153,261 5,119,243 551,000 932,506 1,558,818 4,399,843 57,000 4,456,843 1.308.770 5,670.243