New-York tribune., 1919-09-04
Measure, Already Approved
by Senate, Permits Use
of 5 Per Cent of Capital
and Surplus of Banks
Allows Long Time Credits
Edge Act, Still Pending,
Will Provide for Corpora
tions to Use the Money
Neac York Tylbane
WASHINGTON Burecu

WASHINGTON, Sept. 3-The first
step toward the Administration
scheme for financing American trade
abroad was accomplished to-day when
the House, with slight amendments,
passed the Platt bill, already passed
by the Senate. This amends the Fed
eral Reserve act so as to permit na-
tlonal banks 70 invest 5 per cent OF
their capital and surplus in the stock
of corporations principally engaged in
such phases of international or for
eign financial operations as may be nee
essary TO facilitate the export Of Amer
ican goods.
The final step in the plan for fnan-
cling American sales in foreign markets
is contained in a bill. already intro
duced in the Senate by Senator Edge
and in the House BY Representative
Ackerman. Of New Jersey, amending
the Federal Reserve act 20 allow the
formation Of corporations IN which ma
tlonal banks. under the act passed to-
day, may invest.
Long Time Credits Needed
Both bills. It is understood. are in
direct line with President Wilson's de-
cislon, when it was seen a. Paris that
Europe would need long time credits
which no present financial organization
short of the United States government
could provide. 1t being the idea that
the government should not undertake
to 60 into commercial banking on the
scale required I anry P Dawson was
sent back from Paris 10 study means
10 use Americas financial resources to
meet the emergency.
Nr. DavlSon's report to the President
on that situation and what he recon-
mended has never been made public.
II is understood. however, that the
Platt bill is entirely satisfactory 10 the
Administration, and that me Edge bill,
which rounds out the scheme Tor an
international credit organ ization al
most without parallel. is also sans
factory, but the President mas not yet
publicly approved o. either.
Partisanship Not Involved
Despite the fact that to-day's bill
man bill, would, one Republican mem
ber OF the House SAID, tend 70 con-
firm the claim that Wal Street IS
back Of the league the bill IS an
other member said. twas allowed %
slip through" and the President
started on his league OF nations tour
tonight without the .gnifcance OF the
situation beng generally graspea. Ne-
publican leader Monde-l declared him
/
that any element OF partisanship as
involved in 1t.
The bill passed to-day will at once
make potentially available IN ercl.ts
for firms doing an international bank-
ing business some $500, ,00U 0J0. or ;
per cent Of the capital and surplus OF
American nationa. banks, which tne
Controllers Office to-day estimated
roughly at S2,000,00o 0U0 Buc THIS
American trade abroad, is only flac-
ton OF the credits that the blil is ex-
pected to make available
Fears Over-Speculation
To-days bill met with opposition
from both sides of the House, but was
passed by vote of 100 TO 81 Repre-
sentative Fess, of Ohio, opposed it on
the ground that il was conducive to
extreme speculation, such as had
caused. he said, the panic following
the Revolutionary War and those OF
1919, 1887, 1857, 1873, 1898 and 1907.
Demanding to know what the War
Finance Corporation had done with the
billion dollars given it for the pur-
pose of financing foreign trade, Repre-
sentative Green, of Iowa, declared in
favor of letting Europe have only those
goods 1t could pay for. He called at
tention to the statement by Herbert
Hoover that foreign ports are choked
with goods held for speculative prices
Says Grain Shipments Wait
Representative Stevenson, OF South
Carolina, favored the measure. declar-
ing that cargoes of grain are now lying
in American ports awaiting suitable
exchange arrangements before their
owners would permit shipment abroad.
Representative McFadden. of Penn
sylvanla. Republican member Of the
House BanAiag and Currency Commit
tee, opposed . on the ground that spe-
cia aid to finance American sales ID