AMERICAN FOREIGN SERVICE JOURNAL m Photo by Flandrin, Gibraltar. THE ROCK OF GIBRALTAR JULY, 1925 FEDERAL-AMERICAN NATIONAL BANK NOW IN COURSE OF CONSTRUCTION IN WASHINGTON, D. C. W. T. GALLIHER, Chairman of the Board JOHN POOLE, President RESOURCES OVER $13,000,000.00 IHE FOREIGN S VOL. II. No. 7 WASHINGTON, I). C. JULY, 1915 The International Chamber of Commerce THE economic progress of the twentieth principal nations of the world who have real century made one thing obvious: A perma¬ business interests. At each new accomplishment nent meeting ground for the business inter¬ new members were attracted, and with each new ests of all nations must be found. International member the field of accomplishment was widened. Congresses of Chambers of Commerce were called So after six years there are represented 329 together at Liege in 1904, at Milan in 1905. at Chambers of Commerce, 50 trade associations, 22 Prague in 1908, at Boston in 1912, and finally at national associations of bankers, 367 individual Paris in 1914. Thus, spasmodically, leaders of hanks, 102 associations of industrials, 719 manu¬ finance, commerce and industry gathered together facturing concerns, 9 national organizations of to consider the vast and growing complex of shipowners. 55 individual shipping companies, and international business. After 1914 there is a 47 railway companies and transport enterprises. pause—for obvious reasons—and then again the This mixture of finance, industry and trade could commercial and trade interests of America acted not hut develop into a central point of contact for as host to representatives of business in Belgium, world business. A permanent headquarters at France, Great Britain, and Italy. This was in Paris, frequent council meetings, and a biennial 1919 at Atlantic City, and it marks the origin of general meeting keep the pot boiling and act as the International Chamber of Commerce. A year clearing houses of international business enquiries later the International Chamber was formed, and and information. it immediately undertook an analysis of the vast The machinery has been put together cautiously. economic adjustments which the war had made It was of prime necessity that the Chamber should necessary. keep to its own knitting. Political considerations The purpose of the Chamber is written in the were tabooed at the outset. But it was also neces¬ terms of its Constitution: “To facilitate the com¬ sary to keep itself free from the special interests mercial intercourse of countries, to secure har¬ of particular trades; and it must not encroach on mony of action on all international questions the functions of other existing institutions— affecting finance, industry and commerce, to en¬ either private or governmental. On the eve of courage progress and to promote peace and cordial the Chamber’s third biennial general meeting at relations among countries and their citizens by the Brussels in June of this year, it is pertinent to cooperation of business men and organizations enquire : How far it has realized its aim devoted to the development of commerce and “. to facilitate the commercial inter¬ industry.” course of countries . .” ? It is now six years since this goal was set. The Chamber, starting with a modest membership, now One of the greatest obstacles to smooth inter¬ includes business representatives from the 36 national trade has been the absence of a forum in ?09 which disputes and differences could be aired and arbitration rules of the International Chamber settled. In order to relieve this situation the of Commerce) rendered by one or more arbi¬ International Chamber created a Court of Inter¬ trators nominated by the Court of Arbitration national Commercial Arbitration to function of the International Chamber. They agree, under the aegis of the Chamber’s permanent therefore, to accept and execute the decision organization. The plan was to develop inter¬ of the arbitrator or arbitrators.” nationally a system which had long and success¬ The Chamber had experts work out the exact fully been functioning in national business circles. meaning of trade terms such as C. I. F., F. O. B., The Court has two divisions: One of conciliation F. A. S., etc., in each trading country in the world. and the other of arbitration. Conciliation is car¬ These have been coni])iled and issued in book ried on in the administrative commission which is form, and plans are now under way for revision composed of permanent national representatives and enlargement. No trader need now contract attached to headquarters. It is an entirely in¬ with a foreigner and find out later that F. O. B. formal procedure in which both sides of a case meant one thing to him and something quite dif¬ are heard and an equitable solution is submitted ferent to his foreign customer. It was not the to the parties for their consideration and—it is intention of the compilation to provide further hoped—acceptance. But if the dispute is serious help than this, but it has lately been noted that and involved, actual arbitration has been found some international contracts have specified that the most effective method of procedure. In arbi¬ the “definition of the International Chamber” tration special arbiters are appointed, and the case shall lie final in case of dispute. is tried usually at a minimum of expense and with the greatest possible speed. Parties must Flag discrimination is usually accepted in submit voluntarily, but in so doing they hind them¬ coastal trade. But it is an open question whether selves to accept the award. So far the Court has a nation should discriminate in the matter of tariff done well. Out of 92 disputes submitted 36 were rates, port charges, etc., in favor of its own ships expeditiously settled. engaged exclusively in Of these only a small international trade. The number came to actual International Chamber hearing, the parties mu¬ went into this problem tually resolving their thoroughly. Experts in difficulties at the simple all member countries intervention of the prepared elaborate re¬ Court. At the moment ports on the subject—- 12 cases are pending. each from the point of Of the 44 cases in view of his own coun¬ which the Court was try—and at the general unable to bring about meeting at Rome in much-needed relief, the March, 1923, these re¬ main trouble was the ports were sifted and absence of an arbitra¬ compiled. At Brussels tion clause in the busi¬ this year the position ness contract disputed. will be reviewed again A model clause has now in the light of the two been drawn up which intervening years of ex¬ will effectively abolish perience. If final agree¬ this obstacle if inserted ment can be reached, a in contracts: uniform principle will “For the settlement lie urged upon all na¬ of all disputes in con¬ tions which desire to nection with the in¬ foster international terpretation or the commerce. execution of this con¬ Il<n ris and Ewing There are many WILLIS H. BOOTFI tract, the contracting other questions which parties agree to sub¬ President of the International Chamber of Com¬ persistently rise to vex mit to arbitration (in merce. Mr. Booth is a vice-president of the the world’s business. accordance with the Guaranty Trust Co. Through railway lines 210 and through connections between ships and rail universally acceptable check which will meet the systems would greatly facilitate trade, and the needs of international money transactions. The Chamber is considering how they can best be Brussels meeting is to consider this in all its realized. aspects. And by defining and cataloguing the Acquaintance with the other man’s problems is differences, and pointing the way to the solution, a certain means of promoting international inter¬ a world business opinion will be created, which is course. Wherefore the Chamber issues in all half the remedy. Bills of lading have been largely languages a constant stream of digests and bro¬ standardized by such means. chures on matters of international importance. The field of foreign judgments is one in which In addition to this the administrative commis¬ international harmony is much needed. Each sioners of some member nations attached to per¬ country has its own traditions from which it will manent headquarters get out weekly information not depart readily. But even now there are letters and periodical confidential bulletins which limited classes of foreign judgments in which are circulated by national committees among its unity of practice is possible with a minimum of members. adjustment. The Chamber has enlisted some of the best legal wisdom of the world in its attack . to secure harmony of action on all on this problem, and at Brussels conflicting inter¬ international questions affecting finance, in¬ ests will face each other in the spirit of concilia¬ dustry and commerce . tion. There is good prospect that a first step in Multiple taxation of firms doing an inter¬ the process of reconciliation will be made. First, national business has been an increasing handicap money judgments will be discussed, then judg¬ to trade since the war and the subsequent rise in ments in bankruptcy, divorce, and similar matters. taxes everywhere. A state’s sovereign power to Trade-marks, patents, etc., are given general tax cannot be questioned, but if each takes its international protection by means of appropriate tithe without regard to conventions. But no the other, the man standard convention has whose interests are been devised which common to more than gives a maximum of one state is soon snuffed protection and which out of existence. After meets all interests on extended investigation the basis of complete in all countries, in which mutuality. Accordingly, the best minds of the the experts of each world have participated, country represented at a formula is being the Brussels meeting found by which each will consider the results country may collect its of years of careful in¬ proper revenue without vestigation in this field stifling economic initia¬ with a view to finding tive.