The Washington herald., 1919-02-19
FOREIGN LOANS
AID U. S. TRADE
Holland Says New Policy Of
Government Will Boost
Home Industry.

Home Industry.
The Secretary of the Treasury.
Mr.. Glass, has recommended that
congress authorize the War Finance
corporation to make advances to
exporters up to $1,000, 100000 ana
also TO enact such legislation as
VIII make IL possible for the United
states to Increase loans to foreign
governments. A recommendation Of
this kind. made by a man who has
gained nne reputation for conser-
Vative courage, is spoken of here
as experimenting various efforts
now under way whose purpose Is
the increase of our foreign trade.
Presumsoly an advance of as much
as $1,000, 900 to American ex-
porters is in line with the proposi-
tion that the governments loan to
foreign countries be increased.
should there be occasion for action
o. that kind.
Apparently Secretary Glass Is OF
the opinion that an enormous de-
mand il to come from foreign coun-
Sfes 20 the United States for food
and articles manufactured in this
country. Our allies to whom en-
lsrged loans may be made. should
the recommendation OF Mr.. Glass
be fayorably acted upon by Con-
gress, will need credit or funds
In order to make payment for pur-
chases- So also exporters, in the
view OF Secretary Glass, may need
large advances of money so that
they may be able to meet the de-
} nands which are to come to the
United States from other coun-
tries.
Easy to Liaaldatc.
There is noting new In the pro-
position involved in making advances
to exporters. even as much as
N.0o0OO,00 00O. They win be able to
Bauidate 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 foreign buyers obtain IN
This country In the form Of loans
made by the government.
Attention is called to the fact that
there J., some conflict OF opinion rr-
spectins industrial md financial con-
ditions, especially in Great Britain.
France and Itsiy- George A. CASTOR.
who is we'll qualified to speak upon
these subjects and who has beea ia
Europe for fol- 1tuths. seems u Us
confident that Great Britain and m
a considerable measure France will
be in position through their own
financing to rebuild their devastated
countries and to set their industries
going.
Mr.. CASTOR upon his return to New
York a few days ago intimated that
II would require at least two years
for Germany to re-establish itself in
dustrially and that long time must
elapse before Germany will be able
to dump her commodities in foreign
markets.
On the other hand excellent au-
thority is now reporting that Ger
many is recovering herself Industrial
ly with great rapidity put that her
manufacturers do not intend to pro-
duce commodities OF inferior quality
and at low cost in order that they
\ may md ready markets Tor them in
kther countries. but instead will adopt
the American plan OF very high ef-
fciency and great utilization Of the
work Of skilled artisans, not employ
ing cheap labor.
Then. again, just at the time when
industrial leaders and bankers in Bel
siurn have negotiated with bankers
in the United States for a credit ag-
CregatinC 100000. the money thus
obtained TO be utilized in Upbuilding
the manufacturing interests OF Bel
gium. there cons reports well 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
exporters which may reach as high a
figure as 81 CO.., ,OOC. .O0O is concerned, the
point is made that the War Credits
Board. up TO the day the armlstice
WAS signed. made advances which ag-
=regstsd a little under 81 .0OO. .0oo. 900 to
the contractors who were manufacture
ing arms and munitions OF war. That
hoard handled in the aggregate nearly
$500 COO in the form Of collateral Sc
Curities upon which advances were
made TO the contra ctors II also ad-
yanced TO them s324O 900.
The government recognized the jus
tice Of the plea made by manufactur-
Crs I'm which It was stated that they
could not fulhlI their contracts unless
they had eUanciaI assistance from the
government.
The Real Reason.
= Reasoning OF this kind appears to
have been accepted by Secretary
Glass, as sound. For II is deemed
OF almost vital Importance that the
United States at this time takes ad-
Vantsgo Of the opportunity which
now exists for maintaining and
Ereatly increasing h"r foreign trade.
In order to do this. however, II
seems 10 Secretary Glass as though
the exporters would be justified in
seeking advances from the govern
ment. The security upon which
these loans will be made will evil
IDENTIFY be passed upon by the Secre-
tary or his authorized subordinates.
Early in the spring two oTganiZa-
tions, the membership of one OF
which represents manufacturers all
over the United States who are
ready to do all that in them lies to
increase their foreign trade. and the
other a local organization which
represents the Mississippi Valley,
will hold conventions at Chicago for
the purpose of agreeing upon plans
and stimulating interest so that our
export trade may be deyeloped, as
many able men believe It can soon
be developed. There appears to be
ueome confusion OF view respecting
our ship program.
Some excellent authorities belieya
that with proper aid from Washing
ton our shipping interests can be so
highly developed as to furnish no
reasonable grounds for fear Of the
competition of Great Britain In the
overseas trade. Others. including
Mr., CASTOR. are convinced that Eng
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