The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-06-11
WALL, STREET
SEEKS CONTROL
Plans Being Made To Dominate
Cotton and Similar
Corporations
FINANC1ERs TALK OF
CENTRAL CORPORATION
Cooperation of Government
and of Commodity Export
Corporations Expected.

Washington, June with a view
to quieting the unrest in Europe by
Fastening return to normal econom-
ic conditions, financial interests in
New York, with the assistance of the
federal reserve board, are giving con-
sideration to the formation of a group
OF export corporations for wool, cop
per, steel, tobacco and other Ameri-
can products similar to that organized
to handle foreign sales of cotton.
It is planned to give the group cor
porations the backing Of a central Sc
curities corporation which would
draw its funds from the investing
public. furnishing, perhaps, hundreds
Of millions of dollars. to finance the
shipment of raw materials to The
countries lately at war so that they
may return to work and pay off their
debts to this country.
Government officials believe that no
important project now is under con-
sideration as reconstruction meas
ure and point TO the disturbed condi-
tions Of the foreign exchange market
as necessity for some action to end
present abnormal conditions.
Operations of the International Cot
ton Corporations will be watched
closely by bankers and the result util-
lied in the organization Of other
group corporations as may be needed.
a great advantage in having concern
to handle each material being funds
to start work can be raised in the Sec
ton of the country most vitality In
terested in that particular industry.
AS the initial funds of each corpora
ton are exhausted by financing ship
ments abroad. they would obtain ad-
ditional money from the central SC
curities corporation which woulc
take as collateral the European se-
curitfes pledged to the group corpora
ton ard the obligation Of that cor
poration. With such ample security
and the possibility Of offering an az
tractive return. perhaps, 6 per cent. it
is believed debentures offered by the
central corporation to the public
would find ready sale. It is planned
that the central corporation would be
flexible in organization, starting with
small capital and enlarging IS the
export financing developed.
Present world conditions are point
ed to by government officials as evil
dence of the need for scn1e such ma
chinery as it contemplated in the ex-
port and central corporations Long
term credits are needed by Europe
and raw materials rather than finish
ed products except where the latter
ire to be used in rcviving producing
powers. Belgian interests, which re-
Gently obtained short term credit
Of $5O,0O0,O0o in New York, have
been unable to utilize any OF the mon
~ because the exchange rate is so ad-
verse that the money would cost, PEI
haps, 80 per cent An even worse Sit
uation exists in France and in Italy,
n the opinion Of financial experts, and
will continue for several years until
hose countries rehabilitate their in
lustries and reduce their Indebtedness.
Government credits to the alliesl
now total approximately s9,3l0,0O0,-
600, leaving only S690,000,000 Of the
2mourt authorized That is too small. /
t is believed, to finance the exports
needed which is said to be another
reason for the reed of private initia-
tive in solving the question of credits. !
The war finance corporation is said to
be ready to take the obligation Of
the exports corporation if the pubic
does not, although the latter con !
tingency is not expected.