The sun., 1919-09-10
REDFIELD TO HEAD
NEW ORGANIZATION
Will Be President of Foreign
Trade Clearing House
of New York.
TO FURNISH CREDIT DATA
Operations to Begin About
New Years and Will Cover
Whole Globe.

a, American trade abroad has been
taken in the formation OF the Foreign
Trade Clearing House, of which William
c. Redneld, formerly Secretary Of Com
merce, is to be president, was learned
yesterday in authoritative quarters. Men
instrumental in the formation OF the new
oorporation, however, refused to confirm
the selection of Mr.. Redfield as its ex-
ecutive head, declaring that any state
ynent on that point would have to come
from the Secretary himself. Secretary
RAddeld announced on last Friday his
resignation from President Wilson's
Cabinet. but refused at that time to d.
yulge the nature of the undertaking in
which he planned to engage.
Three thousand manufacturing ex-
oorters throughout the country, as well
ss score or more of International bank
ing Institutions, are interested in the
new corporation, which has been char ;
tAred under the laws Of New York with
a nominal capitalization. The corpora
ton will be, as its name signifies, a clear
ing house through which data regardins
the credit Of purchasers in every coun-
try Of the world may be obtained oy
American exporters att nominal cost
1t is Of exceptionally wide scope and its
sponsors predict tremendous success
Immediately after it shall have begun to
function, which probably will be at the
first of next year.
Mark O. Prentiss, resident vice-presi-
dent and director of public relations OF
the National Surety Company. who was
one Of the chief figures in the formation
of the new corporation. declared yester-
day that its possibilities are almost un-
limited Mr.. Prentiss has conferred
with many OF the leading exporters ana
bankers Of the country on the plan and
has received unqualified Endorsement OF
the arrangement in nearly every In
stance.
I'VE are having daily conferences
with some of the most representative
men in the United States" Mr.. Prentiss
said Yesterday, discussing the per-
sonnet and selecting the directors and
deciding when they shall get together
for formal organization, which will be
probably within the next three weeks"
Has Conferred with Redneld.
Mr.. Prentiss refused to confirm or
deny the report that ex-Secretary Red
field IL to head the new organization.
1T will be the responsibility OF the
directors" he said, ito elect a president
/ must admit having discussed this
able length. Personally i would be de-
lighted to have him become its presi-
dent, because l consider no man IN
America has more intimate knowledge
of the worlds commerce than he. But
I must decline to make any definite
statement as to what his attitude Is or
will be beyond the admission that he
has on more than one occasion, publScly
and privately. enthusiastically Endorsed
the enterprise" --r - 81. IS 2 ~, 80 uf
The workings Of the plan, as pointed
out by Mr.. Prentiss, are not involved
nor do thew require an extensive organ
lzat.on circling the globe. All exporters
who desire the service which the clear
ing house will give may become members
of II by the payment of a nominal fee,
which 1t is expected will be tentatively
800 In addition they will be required
to pay a small percentage. probably less
than Per cent, of the amount repre-
sented in any transaction. In that way
the new corporation will be made self
sustaining and conceivably may be made
q good investment for its stockholders.
All members of the clearing house will
be required to lay before II a record Of
their foreign transactions that the credit
OF the purchasers abroad with whom
they have business may be established
When that credit shall have been fixed
all applications for credit received by
the member exporters may be referred
70 the Foreign Trade Clearing House
where 1t will be looked up and stamped
with approval or rejection. which, It is
pointed out. will not constitute a guar
aniee OF the credit in strict sense. but
It will amount almost to q guarantee in
tina. It will be made only after very
careful and exhaustive examination OF
the application under consideration.
The three points wherein the new
clearing house probably will prove of in
estimable value and which Mr.. Prentiss
pointed out yesterday are:
!. The assurance to the exporter that
his bill is reasonably certain Of pay
ment- By having all credit application
passed through a single central organi-
sation, the possibility of a purchaser
buying to the limit of his credit from
four to five exporters at the same time
is eliminated. Thus the markets of the
world are opened to American trade with
as little credit risk as is possible to at
tain.
Advantage to Foreign Buyer.