The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-03-28
Will Loan Money to Individuals
or Corporations at a Low
Rate of Interest.
BUT MUST GIVE SECURITY
Papers Representing Merchan-
disc Engaged in Export Pro-
cess Probably Will Be Ac-
ceptable.

washington, March Z7.-The gov
ernment's billion dollar fund for
financing foreign trade soon will be
opened to- American exporters
through loans from the war finance
corporation. Regulations now be-
Ing prepared by the corporation to
cover advances will provide for the
lending Of sums up to $4,000. 900
to any individual firm, corporation
or export association, probably at
"a per cent for a maximum OF
five years, on adequate collateral.
The nature OF this collateral Sc
curity to be accepted remains to be
worked out by the corporation, but
indications are that papers repre-
senting merchandise engaged in the
export process will be acceptable
Collateral to the extent OF 1875 per
cent of the loan PROBABLY will be
required and loans will be made
either direct to the exporters or
through banks.
Scores Of informed applications
for information or for advances have
been received from individual ex-
porting firms or representatives Of
the export associations being organ
tzed under the Webb act, the war
finance corporation reported. Pre-
parations for making the loans will
be rushed In spite OF the enormous
burden thrown on the corporation
by the necessity of making large
advances to railroad companies.
To BE Extensively Used.
Reports indicate that exporters
are planning to make extensive use
OF the governments foreign fund
as soon as the regulations are COM
pleted and the corporation is ready
to accept formal applications.
This is caused by three principal
Influences:
First. European countries which
will need great quantities of Amer
dcan meats during the next year or
two for reconstruction and to make
up for lack of constructive enter
prise in the war. have neither the
gold nor the credits to pay their
purchases in this country and their
inability will be Increased when the
United States government stops
making loans to the allies at the
end of the war.
Second. Foreign exchange rates
Following removal OF artificial gov
ernmental influences by Great Brit
ain, France. Italy and the United
States last week. have produced a
situation in which American goods
would cost foreign purchasers much
more than their value in dollars at
this time IL purchasers were forced
10 pay cash. AS a result, American
exporters must sell on credit II they
are to sell in the quantities needed
abroad, and the war finance cor
poration's fund will provide a means
OF pooling these export credits un-
der government supervision.
Banks Not Used to IL.
Third. American banks have not
been accustomed to financing ex-
port transactions and can not legally
advance as large sums as may be
needed to finance large export on
arations. Nor can they ordinarily
make advances for more than 80
days, whereas for most foreign trade
transactions a year or eighteen
months is needed on credits.
1t Is the last condition which has
driven export organizations to the
war finance corporation. since the
law provided that the corporations
may make loans direct to exporters
only IL loans can not be obtained
through regular banking channels at
reasonable terms.
Foreign exporters doing business
In the United States also have un-
dertaken Informal negotiations with
the corporation to ascertain wheth-
or they may share in the govern
ment's credit arrangements. They
have been told that means probably
can be worked out by which they can
obtain advances from an American
bank which in turn can transfer the
loan to the corporation. The cor
poration can not lend directly to q