The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-20
LONG TIME FOREIGN
CREDITS ESSENTIAL
G. II. Sabin Pleads for British
Methods in Building Up
Export Trade.
MARKETS SEEK OUTLET
National Prosperity Depends
on Continuation of Increase
of Production.

II Is OF vital Importance to grant AZ
least six months credits to foreign rur-
ohasers of American products. accord
Ing 10 statement Issued yesterday ny
Charles IT. Sabn, president of the Guar
anty Trust Company OF New York, who
In the first banker OF the Wall street
district to lay emphasis on the methods
used by England and Germany TO build
up foreign trade and TO declare that In
that way alone can America meet inter-
national competition. Mr.. Sabin's state
ment said
THE war literally forced us into
world markets OH a scale never before
even dreamed possible. And we are be-
ginning to realize that our national pros
perity is very materially dependent upon
the continuation of our vastly increased
production, which exceeds the require
ments OF our own market and must con-
tinue TO find an adequate outlet else.
where.
But owing TO the war other peoples
cannot pay us on practically cash
basis for the goods which they want to
purchase from US and which they sorely
need. Consequently we must allow them
more time in which to meet their ooli-
cations
I'VE mus. revise our point OF view
about foreign credits Our banks can
no longer restrict such credits 10 sixty,
ninety or a hundred and twenty days
and render TO manufacturers and eH-
porters the service which the present
readjustment period makes imperative.
England and Germany built up their
great foreign trade prior to 1914 largely
by making six months time the selling
basis for their goods. il We are to hold
our own in foreign trade we must proht
by the experience of other countries and
adapt ourselves to the needs OF the pres
ent situation. The war has taught us
many lessons peace will teach us more
We have learned, for instance, that our
existing banking system. prcdcated upon
elasticity, is to-day PROBABLY the strong
est In the world. But We now need to
develop greater elasticity in our banking
methods, particularly in our point OF
view regarding credits Tor the fostering
of our foreign trade This is especiall,
demanded in the selling OF our manufac
tured articles overseas, although it holds
true to some extent in the selling of raw
materials also.
The unpegging OF sterling and franc
exchange recently has surely made clear
to US the condition which Is bound TO
| prevail II we continue to insist upon
the short term credits which we have
| held to in the past. When the British
and French Governments withdrew their
support to sterling and franc exchange
/ respectively the tendency naturally was
to put the American dollar at a pre-
MUM in England and France. which
| means that it takes more francs and
shillings TO equal dollar. and conse-
! quently less imported goods can no
! purchased for an American dollar in
thHse countries than was possible prior
Ia the unpegging OF the exchanges. This
Will tend to discourage the huyinG Of
American goods and eventually will re-
suit in serious curtailment oc our for
eign trade, unless We couuteract that
I tendency by extending credits for a suhi-
| cient period to enable purchasers OF our
convenient time"