The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1919-09-19
PASS FOREIGN
FINANCING BILL
Authorizes Formation of Ameri-
can Banks to Aid in Promo
ton of Export Trade.
LARGE LOANS FOR EUROPE
MANY Banks Will Be incorporated Un-
der the Law and Its Enactment Will
Greatly Help to Clear the For
eiqn Commerce Situation.

Washington.-After three days of
discussion the senate passed the Edge
foreign financing bill.
There was no record vote and those
who have been critical of the measure
contented themselves with putting
through a few amendments which are
not regarded by Senator Edge as in
juring it in any material respect.
Two of the amendments proposed by
Senator Gronna, of North Dakota,
were adopted One of them imposes
double liability upon stockholders OF
the corporations to be created under
the bill. This is the same liability TO
which stockholders in national banks
are subject While Edge objected to
this provision on the ground that 1t
might make it more difficult TO secure
capital, yet lie said he recognized that
such safeguard might he valuable in
giving additional security to deben-
lures issued by the corporation.
Another amendment by Senator
Gronna was designed to make the cor
poration liable to taxation. Senator
Edge construed the original bill as
covering this point and he did not OBJ
ject to the amendment pressed by the
North Dakota senator,
The senate also adopted an amend
ment on the motion of Senator Owen,
of Oklahoma, eliminating a provision
eSempting the foreign financing cor
poratiOn from the Clayton antitrust
act. Two or three of the senators had
objected to this exemption.
The measure amends Section % of
the Federal Reserve act by providing
that any group of five or more men
predominantly Americans may form
with capital stock of not
less than 100000 to conduct foreign
financial operations for the promotion
of export trade The associations thus
organized are to be under the super
vision of the Federal Reserve Board,
like national banks; they are empow-
cred by the bill to transact general
banking business, to borrow and lend
on real or personal security.
A feature in the bill provides that
the banking corporation may furnish
to European concerns by taking
on their plants. Against
the securities the banks may issue de-
bentureS to be sold to investors and
the money thus raised is paid to Amer
lean manufacturers or exporters in re-
turn for goods supplied to Europeans
BY means of this plan, the manufac-
turers in the United States will be able
to receive actual money for the goods
they may sell to penniless foreigners
1t is believed that this method will
greatly facilitate trade between the
United States and Europe.
Senator Edge said during the debate
on the bill that by opening of foreign
markets American industrial plants
will be kept going at full time, labor
will be employed at adequate wages
and cargoes will be provided for the
American merchant marine, which now
include over 1000 vessels. He added
that the abnormal foreign exchange
rates will be gradually readjusted and
foreign embargOes or other diScrimina-
ton against American goods will be
precluded.
Following the passage of the bill,
Senator Edge said THE main object
l wished to accomplish was the ac-
ceptance of the principle that the ma
tional banking system should be ex-
banded TO recognize the necessity of
cooperating in the question of export
This will be fully accomplished by
of the bill which now has
been passed by the senate