The sun., 1919-10-23
EXCHANGE RATE
,BIG PROBLEM OF
! TRADE MEETING
No Way Yet Devised to Re-
! move Penalty Upon Buy
y ing in U. 8.
FORMAL SESSIONS OPEN
A. G. Bedford Welcomes Dele
gates to Great Convention
at Atlantic City.


&Ar1.ANrIc CrrY. Oct 22.--The lobhies
"a conference rooms Of the Hotel
Gxaymore already have produced sub
kntiai results, which the Interim
6cna Trade Conference win submit to
h6veen three and four thousand
American business men gathered here
~ the opening Of the conferences
formal sessions.
These formal sessions began on the
millior dollar pier tonight with Homer
l. Ferguson presiding. A c. Bed
ford Of the Standard Oil Company
ssmade the address OF welcome Breck-
ssnridge Long spoke for the State De-
spartment and the heads Of each Of the
fnreign missions responded But far
mors important than the graceful
Swords of international comfy ex-
schanges In the fact that informal con-
: ferences already have developed .
) Snird's-eye view of the entire world
trade situation and have gathered val
nable detailed facts which every one
sof the men here and interested In sx-
Z port trade viii find Of the most I'm
!. .portance and usefulness.
81 In the main but one problem remains
~ b eolved--the keystone problem OF
sexchange and credit rates The con-
ference knows what business there 10 to
be done In each Of the countries repre-
scented. but as yet no definite scheme has
been produced which will cut those re-
- xrrtl ma
senormous temporary penalty upon any
ens desirous OF doing business In the
Uu1fsd States
q Food Group Has Plan.
x me- first sectional group TO complete
M deliberations, the food group. this
Afternoon made the flrst definite recon-
nsndations to the conference for the So
Sztecu os tss exchange prchlsm. The
sommittse reported that there were but
tyvo possible ways to meet it-long term
credits or encouragement OF European
SknportA
u Surprisingly enough the latter course
found much approval here tonight Rep
Efsssntatives Of big American food inter-
Eests told the conference they believed
sghsre was an important market here for
high grade European food specialties
Sond that thcy would aid In every way in
II development
:, Tho food group also recommended
mat President Wilson be asked to exer-
elise his authority under the food control
act to facilitate the. export OF cereal sur
piuses and the provision Of credits there
Tor.
81 British fnanciers In me course Of to-
days conferences for tho first time made
the declaration that continental creditors
could expect little from Great Britain
Z They pointed out that England had
financed the continent up to the time
the United States entered the war. The
result Is, they said. that England At the
present time can absorb no more foreign
AcreditA The result OF this declaration
will be that the Italians. Belgians and
Omitted States not only for their loans
but for their goods. They are begin
ming to see the truth Of this. and the
days conversations revealed somewhat
more willingness on the part OF the men
from the continent, particularly the
French. to recognize this necessity and
- make tho best bargain they can here
81 ConuictfnE views-
A throughout the negotiations senti-
ment and business are somewhat at
variance. There are those among the
american delegates who believe that
foreign creditors should Be acoommo-
dated at q rate below tho domestic rate
because they carried the burden Of the
Swaf for the United States for three
wears and a half before the United
I3tatss got into It
"A On the other hand there are men
hare no less recognizant Of this debt Of
saAmerica 70 Europe. who point out that
scredit cannot be financed here unless II
cts made widely popular and that II can
'Snot be widely popular II offered at .
Z rate Of return below that available on
eimilar or better domestic risks
y This side Of tho problem was reflected
to-day by Samuel Morgan. president Of
sfhs virginia-Carolina Chemical Conn
pany. and the American Cotton OIL Com
pany. one Of the most important repre-
sssutstives Of American food interests In
the conference.
81 NY estimate that we in America
Eshouid accept the debentures or long
term notes or their equivalent running
at least i've years Is based largely upon
the custom In this country" he said.
.fsuch legitimate and well thought Of
paper AZ In issued by various prosperous
s,ArasT4can tadustr!ais brings returns OF
E5 and per cent and I do not agree
with those who claim that we should
Q provide a system which would call for
interest as low as per cent. II we do
not make the paper as an investment
z attractive to the general public we shall
IND great difficulty in obtaining re-
slnewals, and. indeed. In floating the
: original issue. II Is Of the utmost I'M
: portance that we establish a system
: which will be popular and we cannot
: do that on low rate of interest"
= Mr.. Bedford In opening the irst OF
s the big meetings tonight well summed