Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-02-21
so MILLION FOR
BELGIAN CREDIT
Arrangement Is Made to
Facilitate Exports for
Reconstruction
BANKS TO AID
Proposal to Lend Republic
1870 900, 900 on Security of
Customs Receipts

New York. Feb. 81. - Formal an
nouncement of the completion OF nego-
~tiations by n syndicate of bankers
headed by the Guaranty Trust Com
pany, J. =. Morgan A. Co, the National
Bank Of Commerce and the National
City Bank for the establishment OF q
commercial export credit in New York
of $50, 900, 900 for a consortium OF
Belgian banks has been made. This
Is the first important credit arranged
in the United states with a foreign ma
tion since the country's entrance into
the war. and it is expected to be fol-
lowed shortly by several other and more
important ones.
About seventy Belgian banks with an
aggregate Of reserve in excess OF $780,
900, 900 are in the arrangement. They
include the Banaue Rationale de Bel
Clique and the Societe Generate de Bel
giaue. Under this credit the Bandue
Rationale de Belglque. acting for the
consortium. is to draw drafts from time
to time on syndicate participants.
Every series Of original drafts will be
drawn at ninety days sight with privi-
lege Of three renewals OF ninety days
they are 80 created as TO be sold in the
syndicate participants for acceptance.
A feature Of the acceptance is that
they are so created sa TO be sold In the
open discount market. and the proceeds
placed at the disposal Of the Belgian
consortium in this country, to pay for
merchandise here for shipment to Bel
GUM, presumably for reconstruction.
would Re-estabiish Industry
The proceeds OF the credit will be used
only to provide funds in America to
purchase American supplies for re-es-
tablishing industrial operations in Bel
GUM and, according TO the statement
issued by the syndicate. the agreement
IL so worded as to prohibit the use of
the credit for other than industrial and
commercial uses. Obligations OF the
Belgian Industrial interests. for whose
benefit the credit is being arranged. will
be held in Belgium as security for pay
ment of the drafts.
The credit is similar. II not almost
identical, to five previous credits granted
TO French banks just prior TO this coun-
try's entrance into the war. Four OF
the credits were arranged by Bonbright
& GO. witt a large French munition con.
Germ. Each was for SO, 900. 200. Still
another was arranged by a syndicate of
banks headed by the Bankers Trust
Company for $780, 00. 900. All Of them
have been paid of within the last few
months.
American bankers are near an agree
ment with the Mexican government
whereby that country will be advanced
financial aid. One OF the biggest handi-
cape in the Mexican situation has been
the unreasonable attitude of the Car
ranzA government on foreign-owned
property under its jurisdiction and the
abandonment of the cont1scatory tax
scheme is understood TO have sufficiently
cleared the atmosphere to permit Mex
ico's financial agent. Rafaelo Nieto, who
is in the city. and New York bankers
to reach Common ground.
The national debt OF Mexico. aggre-
gates about $3.50, 00O, 900. a large proper.
tion of which is owed to Americans who
invested in that country's securities. In
addition, the National Railways OF Mex
leo has some SEQ, O00, 900 of obligations
largely held in this country. Mexican
finances are in such shape that the in
terest on the debts is not being paid and
action TO remedy conditions IL expected.
one suggestion heard in banking cir
Giles is that banking interests in the
United States arranged to refund the
s3IO,OOO,Oc0, the new money TO be in the
form Of bonds which would be a direct
lien on Mexican custom receipts and
supervised by a joint committee OF Amer.
lean and Mexican representatives. Both
export and import duties woul be COL
lected bv the joint agency, which would
retain control Of the funds, issuing GER
t~ifcates in payment Of duties.