The Birmingham age-herald., 1919-02-19
LOANS AS AN AID
 TO FOREIGN TRADE
Fly HOLLAND

| New 1OTk. GpIudiS iS' NSPN~
 The Secretary of the Treasury, MT Glass, has recommended that Congress authorize the war finance corporation | to make advances to exporters up 70 | s1 00O, GOO, 900 and also to enact such | legislation as will make it possible Tor 1 the United States to increase loans TO 1 foreign governments A recommends l ton of this kind, made by man who | has gained fine reputation for conser- vative courage is spoken of here as supplementing various efforts now un- der way whose purpose is the increase of our foreign trade. Presumably an advance of as much as $l,0Oo, o,o0o.ooo to American exporters is in line with
 the proposition that the governments s | loan to foreign countries be increased, | should there be occasion for action of | that kind.
 Apparently Secretary Glass is of the opinion that an enormous demand IS to come from foreign countries to the United States for food and articles manufactured in this country. Our all lies to whom enlarged loans may be made should the recommendation Of AIr. Glass be favorably acted upon by Congress will need the credit or funds in order to make payments for pur- chases. So also exporters, in the view of Secretary Glass, may need large ad- vances of money so that they may be able to meet the demands which are to come to the United states from other countries.
 There is nothing new in the propo- sition involved in makind advances to exporters. even as much as $1O00oOo,- 000 They will be able to liquidate these advances when they are paid for the commodities they sell in other countries. They will be paid, in great measure. out of the funds which for eign buyers obtain in this country in the form of loans made by the govern ment.
 Attention is called to the fact that there is some conflict of opinion re- specting industrial and financial con- ditions, especially in Great Britain, France and Italy George A. Gaston. who is we'll qualified to speak upon these subjects and who has been ir Europe for four months seems to be confident that Great Britain and in a considerable measure France will be
 in position through their own financ- ing to rebuild their devastated coun- tries and to set their industries going.
 MT Gaston. upon his return to New York a few days ago intimated that it would require at least two years for
 
 trially and that long time must elapse before Germany will be able to dump her commodities in foreign mar lSets.
 TWO POINTS OF VIEW
 On the other hand excellent author ity is now reporting that Germany is recovering herself industrially with great rapidity but that her manufac turers do not intend to produce commo- rf inf af cost in order that they may find ready markets for them in other countries. but instead will adopt the American plan of very high efficiency and great utilization of the work of skilled ar tisans. not employing cheap labor.
 Then again just at this time, when industrial leaders and bankers in Bel gium have negotiated with bankers in the United States for credit aggre- gating $50,000.000, the money thus ob- tained to be utilized in upbuilding the manufacturing Interests of Bel gum there come reports we'll worth needing that Belgium possesses money in large amounts and that she might rely upon her own financing for the upbuilding of her industries.
 So far as making advances to our ex- porters which may reach as high fig ure as $1,000 00O,000 is concerned, the point is made that the war credits board, up to the day the armistice was signed, made advances which aggre- gated little under billion dollars. to the contractors who were manufac- turings arms and munitions of war. That board handled in the aggregate nearly $500. 060.0 in the form of coi- lateral securities upon which advances were made to the contractors. It also advanced to them $S24000.000.
 The government recognized the jus tice of the plea made by manufacture CTS in which it was stated that they could not fulfill their contracts unless they had financial assistance from the government
 THE REAL REASON
 Reasoning of this kind appears to have been accepted by Secretary Glass as sound. For it is deemed of almost vital importance that the United States at this time take advantage of the op- portunity which now exists for main- taining and greatly increasing her foreign trade. In order to do this however. it seems to Secretary Glass as though the exporters would be jus tified in seeking advances from the government. The security upon which these loans will be made will evidently be passed upon by the secretary or by his authorized subor 1inates.
 Early in the spring two organiza- tions. the membership of which repre-