Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-11-28
HOW j, S. BANKERS
AID EXPORT TRADE
Formation of $5O,OOO.OOO
Corporation Shows Readi-
ness to Grasp Opportunities.
PUBLIC IN THE MARKET
TO BUY STOCKS OUTRIGHT
Slump in Marginal Trading Re-
garded as Adding Strength
to Situation.

garded as Adding Strength
to Situation.
week has furnished still another evil
dence of the ability of American bank
ers to conceive of gigantic measures
for the extension of American COM
, merce and, what is more important, of
| the courage and resourcefulness to put
these projects into execution. Without
one word of preliminary announcement
and disregarding entirely the usual
policy of publicity incidental to the
birth of such gigantic enterprise, we
| learn for the first time this week of the
| complete organization of fifty
million-dollar corporation, combining
| the interests of some of America
| leading captains of finance and indus
try, for the purpose of developing and
extending the export trade of the
United States.
This is by far the most ambitious
attempt that has yet been made to put
the United States in her rightful place
| among the commercial nations of the
| world, and while we must. under nc
circumstances, exult in the deplorable
| condition of other nations making such
a trade conquest comparatively easy
we should be untrue to our own best
interests. did We not exert ourselves to
the utmost in order to fll In the
breaches made by the ravaghes of war
| Furthermore, our duty to the woriC
| in general compels us to furnish many
of the commodities that have hereto
! fore been produced by the nations that
| are now engaged In self-destruct1on
/ This is we'll illustrated in the case OF
| the South American republics, many OF
most of which are. now sending theil
| commercial ENJOYS to this country fol
| the purpose of diverting our products
| to their markets. Even France has re-
sorted to this method of procuring fol-
herself the fruits of American industry
| and at this time five special French
| commissioners are in this country, not
to SELL but to buy. and to lay the
| foundation for the permanent buying
! of our commodities. There is ample
of the formation of such an exporting
| agency, though the problems incidental
| to it's organization and operation will
command the careful attention OF
Americas most skillful commercial
| leaders.
Capital for Foreign Fields.
new company will be carrying OF
American capital into foreign fields
thus opening the markets of the world
| to American mining. railroad, electrical
and harvesting machinery, as well as
raw material, clothing and foodstuffs
| In order to do this, it will be necessary
| to maintain elaborate receiving ano
dispensing agencies in the foreign
markets, and this Is where the skill as
well as the capital of the American
promoters will be extensively required
Therefore, it is stated by those who
are behind the new scheme that its
success will depend, to a large extent,
upon the education of American IN
vestors to take foreign securities. The
field for development is almost I'M
limited, and it is believed that there
is an abundance of investment money
in this country now to absorb many
foreign issues. 1t is probable that a
start will be made in South America,
where the war has greatly embar-
raised many projects which had count
ed on European capital. Securities OF
some of these companies may be ac-
qulred from the present holders and
brought here from Paris and London.
Another great field for the new com
pany Is looked for in Russia. The ex-
tensive natural resources of that coun-
try have hardly been touched, and, VIII
the exhaustion due to the war, 1t Is not
| be found to open the mines and build
the railroads that are needed. 1t is
planned to get concessions under agree
ment to spend large sums in develop
ment work and to finance these in the
United States. In this way great
market will be opened for machinery
and mill products. One of the bankers
who will be actively identified with the
new corporation said this week that
the charter would be drawn broadly
ha Il n . N
gage in almost any business. When
asked for his idea of the possibilities,
he said: "In brief. we hope to go after
the business which this country should
do abroad and bring it here. The
United States has figured little in con-
struction work in South America, Rus
STA or the east. That was because we
ourselves were borrowers of capital.
Opportunity offers now to get the trade
that we are capable of handling. The
idea will be successful if American in
vestors accustom themselves to for
eign investments. The money that is
pouring in now from the bellfgerents
belongs to them, i'll the sense that it
should be put to work doing what it
would have accomplished in other fields
but for the war"
The stock of the new company will
not be offered for public subscription,
but will be confined strictly to it's orig
inal incorporators.
Investments and Business.
The reports of diminishing sales on
the stock exchange is not an indicatio
of decreasing public interest in invest
ments. but rather an evidence that
those who have surplus funds are pur-
chasing for permanent investment and
for dividends rather than for transitory
fluctuations in quotations. They have
feared to their sorrow, moreover, that
fluctuations have not always been to
their liking, and that their private bal
ances have therefore been decreasing
instead of increasing. This has been
particularly true of the war stocks
which at first gave evidence of esta b.
fishing novel records in the art of sky
rocketing. but which, in the majority
of cases. have failed to live up to their
expectations. Thus. while the turnover
of stocks has perceptibly decreased
brokers report a steady increase in the
number of new customers who are
quietly and steadily absorbing the
standard investment stocks; and this
process is of much more benefit to the
technical position of the market than