The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-17
TO EXTEND
FOREIGN CREDITS
Twenty-Five Leading Bankers
Choose Committee of Or
ganization.
J. P. MORGAN CHAIRMAN
Stupendous Project Affects
Industrial Lines and Large
Financial Centres.
J. P. MORGAN CHAIRMAN

Twenty-Five or more of the leading
bankers in this city In conference yes
terday at the offices OF ]. p. Morgan &
Co.. with H. P. Dawson as chairman,
chose a committee OF organization to
put through gigantic plans for extending
foreign credits on q scale never before
attempted outside OF the credit extended
to the belllgerents by the Government
following ouv entrance into the war.
The size Of the foreign credits that are
needed can be measured only by the
abnormally large European need for
American goods, and the organization
OF Americas banking and Industrial re-
sources Is to proceed on the broadest
possible basis.
The New York committee OF organi-
cation, which was picked out yesterday,
was as follows: J. p. Morgan. chair
man James s. Alexander, president of
the National Bank OF Commerce: James
s. Brown of Brown Bros. & Co.; Allen
B. Forbes Of Harris, Forbes & Co. Alvin
w. Krech. president OF the Equitable
Trust Company: Charles II Sabin,
president Of the Guaranty Trust Com
pany Jacob Schirf of Kuhn, Loeb a Co.
James A Stillman, president of the Ma
tiona City Bank Seward Prosser, presi-
dent Of the Bankers Trust Company,
and Albert II. wiggin, chairman of the
Chase National Bank.
The possibility that the German sign
Ing OF the terms OF peace will be OBJ
tanned by the close of the week caused
the bankers, who have the responsibility
OF seeing to 1t that America does her
share in financing Europe. to hasten
their plans for devising an adequate in
strument and organization 70 finance the
huge transactions that are In prospect
Mr.. Dawson. on his way back from Chi
cago, where the bankers received his pro-
posals with acclaim and voted TO choose
committee of organization from the
clearing house members in that city, de-
cided to summon by telephone all the
available bankers in New York TO an
informal conference and as a result of
this action more than twenty bankers
came to the Morgan Offices yesterday
afternoon.
Who Attended Meeting.
Included in the list in attendance
were H. p. Dawson and Thomas Coch-
ran of the Morgan firm. James s. Alex
ander, Seward Prosser. Walter E. Frew.
president OF the Corn Exchange Bank
Otto H Kuhn of Kuhn. Loeb q Co..
Charles H. Sabin, William Woodward,
president of the Hanover National
Bank; James Fl. Fulton, an executive
manager OF the National City Bank
Alvin Krech. Ernest Stauffen, vice-pres-
idsnt OF the Liberty National Bank; w.
z. Bell Of Harris Forbes & Co., Gray
son NJ. p. Murphy, vce-president Of the
Guaranty Trust Company; Jackson
Reynolds, vice. president Of the First Ma
tional Bank E. V. r Thayer, president
Of the Chase. National Bank; Stephen
Baker, president Of the Bank of the
Manhattan Company; James 8. Brown
OF Brown Brothers q Co and Charles S.
Sargent, Jr., OF Kidder Peabody 4 Co.
Lee Higginson g. Co., also were repre-
sented.
Following the conference. which he
described as an informal meeting, H p.
Dawson said that the bankers in Chicago
received his plans with enthusiasm. saw
the necessity of coordination of Amer
ica's industrial and financial resources
and decided to form at once a commit
tee of organization. Boston bankers have
discussed the situation and will hold
formal meeting in the near future. &C
cording to Mr.. Davidson. who said that
the programme being discussed would
take in every city of financial inn
portance in the United States. Respond
ing to questions. OR. Davidson said In
part:
Consideration IL being given to the
organization of Industrial lines and
definite committee In each line will
probably be selected. Thus far no for
NAL step has been taken. Some of the
industrial lines. which may be expected
to sell their products in Europe and join
the plans for participation In foreign
credits. are textiles, copper. steel and
tobacco. Neither the bankers commit
tees nor the Industrial committees will
exclude any industry or any bank from
a participation in the programme that
may be decided upon eventually.
Regarding the extension OF credits TO
European countries no specific request
has been received by the local bankers
but all of the European countries need
to place loans. In connection with the
cable despatch to the effect that the
Belgian Government was making arrange
ments 10 borrow here, l may say that so
far as / know nothing definite has been
done in the matter and an extension Of
loan TO the Belgian Govrnment may
become part OF the big plan.
Bankers Approve Plan.
Bankers in this city and elsewhere
appear to be unanimous in the express
sion OF approval of the plan of CO.
ordinating the supply ana demand of
credit In the interest Of the entire coun-
try. The proposal does not retard any
private loans now under negotiation. For
example, the successful Swedish Govern
ment loan was financed and distributed
without interference with our plans In
any way. In general. however, bankers
are impressed with the need OF coordi-
mating the credit demands OF Europe. It
is possible that big debenture corpora
ton will be formed to finance the credits
which fundamentally will be used to en-
able Europeans to buy goods produced
In the United States, but which might
to a moderate extent permit a European
country to buy in some other country
than the United States, provided It were
good business to finance the transaction.
There, OF course, will be some export of
capital, but the bulk OF credits will be
used TO extend the foreign trade of the
United States,
1T must empha size that 7 am stating
merely the plans which are being dis
cussed to-day in the light OF our pres
ent understanding OF the subject. It IL
possible that II a big corporation IL
formed II will be able to issue deben-
lures Of a nature that will be attractive
to investors. Personally I should like
to see a single and standard form Of
debenture, one 30 we'll secured that It's
value could not be questioned. Never
theless at the present time II has not
been determined what the form of 90
curity or Its guarantee will be.
ar il certain that the total annotyxvf