Evening star., 1919-12-20
EXPECT EDGE BILL
TOOPEN MARKETS
, viii Transmute European
Credit Into American DOL
lars, Promoters Believe.

The opening up of world markets
for foreign trade. the continuance of
production and manufacture on the
speeded-up wartime schedule in this
country and the gradual stabilizatior
of exchange are expected to result
through the operation of the Edge
export finance bill, which is now
awaiting the Presidents signature.
d. In brief. 1t may be said that this
legislation transmutes European
credit into dollars for Americans. 1t
enables the American producer and
exporter to sell goods to the penniless
foreign purchasers and yet receive
actual cash to meet pay rolls, buy
raw materials and keep the plants in
operation.
1t expands the American banking
system and makes it international in
scope. Under the federal reserve act
the national banks cannot rediscount
long-term papers The concerns or
ganized under the Edge bill can take
long-term paper and instead of re-
discounting use it as collateral for
debentures. These debentures are to
be sold to the investing public and
the cash received from them is to go
to the American exporter. producer or
vender.
Thus the Edge act is a complement
to the Webb export trade act. which
allows combinations for export trade
which are forbidden under the anti
trust act in domestic commerce.
Under the Edge act the same eie-
ments that combine to seek foreign
trade may finance their own sales
abroad. For example. a number of
shoe men may unite and sell a large
quantity of shoes in Europe. They
may organize under the Edge act and
finance their shoe sales and thus do
a double -barreled business. making a
legitimate profit out of both branches
of the business
The Edge bill is expected to open up
markets for American goods all over
the world.
There is no way in which Legislation
can arbitrarily restore exchange to
normal. But the Edge bill is looked
to as certain way to enable the
European countries to get on their
creasing their exports. AS the exports
increase the exchange rate will auto
matically adjust itself.
Now America has all the money and
all the goods that the other nations
need Commerce is all one way. The
balance of trade is unhealthily over
balanced in favor of the United States
When this country gets return cargoes
il will help great deal toward re-
storing the exchange balance.
As conditions now stand the people
OF the United States cannot consume
all that can be produced, especially
with production stimulated as never
before under war pressure The
United States needs the world mar
kets, Just as much as the world mar
kets need the goods from the United
states. Previously, il was impossible
20 finance this foreign trade. Now ii
can be financed. and there will be a
reflex action in keeping the American
Industries humming. So that through
the Edge bill will come benefits to
every working man in this country as
well as the exporters and nnanufac-
turers, for it wil2 assure plenty OF
work for all who are willing to work
Cotton Jump Immediate Result.
An indication of this effect was given
on the day the Edge bill was passed by
the Senate. Cotton prices jumped
Those who know the cotton market
realized that this measure makes it pos
sible to move the surplus cotton crop in
stead of keeping il stored up, with con =
sequent reduction in paintings next sea
son. The same is true with regard tC
the wheat crop and cattle raising.
Another comfort to all people in this
country Is that the Edge bill should sci
at rest all talk of another big loan &c
Europe for many millions 1t gives the
European countries an opportunity tG
earn a restoration OF industry and pros
perity without squandering the hard
earned American dollars. So that the
Edge bill makes American financing Of
European trade a rational business
proposition and not an eleemosynary ol
emotional one.
Members OF Congress have been as
sured that there are number of strons
k6rganizations preparing to take advan-
aee of this legislation as soon as Presi-
dent Wilson signs the sil ahsy II sy oS w
900 to $25.oo0.000. SO that they will bt
far from inconseQuential factors in for
eign commerce.