The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-09-23
WE'RE PREPARING FOR
WORLD TRADE BATTLE
Edge Measure Made Possible BY
Strength of the Federal Re
serve System.

w dItentIOu MANY
of his addresses in the West to tn
Importance of the United States rati
flying the peace treaty and league O
nations in order that the business of
the world may be resumed at once.
and that America may participate to
the immense extent the possibilities
warrant. AS indicative of its belief
in the approval Of the treaty, as prep
aration for Americas part in the bat.
tie for world trade conquest, the sen
ate has passed foreign finance bank
ing bill and it is expected the house
OF representatives will take similar
action soon. Incidently. this meas
ure is only made possible by tn
strength Of the federal reserve bank
ing act, one OF the greatest legisla
tive triumphs of the Wilson admin
istration.
This bill. introduced by Senator
Edge, of New Jersey, is a develop
ment of the Owen foreign finance bill
of the last session, one OF the ad.
ministration measures that failed of
passage. Senator Owen, one of the
architects Of the federal reserve act.
suggested to Senator Edge that a Re.
publican had better handle the meas.
ure in this congress, hence it now
bears the Jersey senator's name.
Though starting out on the Owen
principles favoring foreign banking
corporation with American govern
mental participation, the Edge bill
has become an act practically limited
to private banking activities under
federal reserve board supervisors. AS
such it had the approval of prominent
banking interests, and, with some
amendments, was. okehed by the fed.
eral reserve board.
The chaotic conditions brought on
by the world war are accentuated at
the present time by financial and in.
dustrial uncertainties, due in large
measure to doubt as to the fate of the
league OF nations and stability of in.
ternational finance, American manu-
facturers and merchants are chary of
seeking foreign business because Of
the tremendous balance of trade in
favor OF the United States in the last
three years, now amounting to some
$12,OO0,O00.00O. With the peace
treaty signed and order brought out
the present chaos. they are more than
desirous of assisting in the rehabilita-
tion of EUROPE.
To offset this tremendous balance
the United States has taken over gold
and securities, but the bill, of course.
is far from being paid in full. The
present time is an emergency period
OF Europe and it's needs are of a
drastic nature. If America does not
give Europe the credit it asks be.
couse IL cannot realize on the bills of
exchange, there will be little or no
trade, Ii is pointed out. The Ameri.
can exporter is hesitating because he
feels that he has already gone the
limit in extending his international
credits, and fears to risk more with
out specific assistance from this side
OF the water.
1t is believed the foreign finance
proponents point out that il viii! "a
cilitate international trade by fu.n.
ishing a means of marketing the bills
of exchange. This will enable the
smaller business men to have the
same facilities in international trade
new enjoyed by larger firms with
close connection with big banking
firms that specialize in business across
the seas.
In the very early days of the world
war some Americans saw the oppor
tunity to seize the bulk OF the Ger
man trade In South America. They
found that inadequate banking facil
tiles constituted the greatest barrier
South Americans were accustomed to
long credits from England and Ger
many and demanded the same from
America. Ninety day bills were un
known there. and six months was the
usual minimum.
The National City Bank OF New
York was the first to establish bank
ing branches in leading South Amer
lean cities. and IL was followed by 9th
er concerns from New York and Chi
cago until now American exporter
have laid the foundation for large