The Birmingham age-herald., 1919-07-27
FINANCING FOR
 BIG EXPORT TRADE
By HOLLAND

By HOLLAND
 New York, July 26.-(SpecaD-If it were possible to secure gifts of money from the American people amounting to about
 s4oo oo0,0oo for the needs of the Red Cross | organization it should be possible to se- lcLre from American investors capital az tgregating s3000 ,ooo0 000 as a basis for l the orga anization of a company whose business will be the financing of Amer | ican exports. There is no doubt in the minds of those who are contemplating | creating an organization of that kind. atout securing all the capital that may be needed.
 Several propositions have recently been made having in view the organization of a corporation of this kind Some time ago one was proposed which was to have a capital of not les sthan s500. 900. of | which the government was to take at least one-half Henry P Davison since his return fnom Europe, has been much l occupied with the working out of a plan which, if it is perfected, will practically l syndicate American banks, American /; finance, American industry and American mercantile business so that the needs | of the world can be met It is no won | der that MT. Davison Is compelled to l move very slowly. The plan is titanic, Nothing like 1t was ever proposed by any 1 government or private capital. Yet the i proposal is nothing more than the mobil- 1 ization of American resources, the co-or- dnation of them and then the handling of them under skilful direction, quite as l slxilful as any which is needed for the dil ection of the federal reserve system
 or the treasury department.
 ] Mir. Davison is understood to have been ! greatly encouraged by the approving 1 words which have reached him either by | lf lau nal 1ioot frr all ports of the country. This approval,
 however. is based upon the belief that
 the plan in its general purpose is ad-
 mirable. Of course there remains to be
 received approval for the many details
 which it will be necessary to work out before this huge corporation is organized and begins business. Some have spoken | of 1t as, in it's immediate effect at least, | fully as important as is the agreement | between the nations, If this be ratified, so to act in cooperation and to main tain a peaceful world. For the peace of the world can be all the sooner secured l if the nations of the world are able 10 begin production, to nourish industry and to provide abundant employment.
 ANOTHER PROPOSITION When reports were received from Wash ington a few days ago that Senator Edge of New Jersey had prepared a measure and introduced it which if sanctioned by Congress and the President would make it possible to organize a corporation upon such large scale as to enable it to meet all the conditions entailed by the contem- plated growth of our export trade, the first impression was that the senator's plan seemed, if adopted, likely to make it unnecessary for MT. Davison further to carry on his plan for a nationwide syn dcate.
 This view, however seems to have been incorrect. The probabilities are that if any action is taken upon the senator's plan it may result in some kind Of coop eration with or perhaps the absorption of. the plan-upon which MT. Davson is now at work. It has seemed to MT. Davison to be the better part to confine owner ship and operation of the corporation which he con.emplates entirely to the control of private interests. It would operate under state charter, and if such charter were granted it would be the largest ever issued by any state, at least for an undertaking of this kind, that is to say, the financing of exports.
 Senator Edge is of the opinion that the organization should be federal. It should be incorporated by federal charter. It should be under federal control As the banks of the federal reserve system are under government control However, the difference between Senator Edges plan and the one which MT. Davison has in
 
 CTS here as not great enough to cause a collapse of the proposition or seriously to interfere with the organization of | great expert financing corporations.
 Fundamentally the purpose is to facili- | tate the business of American exports. | Those who are best informed now say | that there can no longer be any doubt 1 of the magnitude of these exports. Some |, of the authorities go so far as to say | that if we are wise in the handling of this | opportunity we will gain supremacy in !! worlds trade and will keep it for many I years.
 Should there be government control by | the corporation and should it be ncorpo- rated under federal charter, then the | danger which some have thought might | turk in this proposition, which is the ere , ation of huge monopoly dominat ting the | American export trade, would be culmi nated There seems to be no dounbt that l a corporation of this kind which might | have the privilege of issuing debentures l up to two million dollars would not only | prove to be of vast benefit in systema- | tizing, stabilizing and facilitating Ameri- l can exports. but will also be able to | earn, not excessive. but reasonable | profits.
 Some kind of corporation or perhaps | organization must be perfect ] ed if our industries, our agriculture and | our mines are able easily to meet the de- | mands which will come to the United l States for these commodities. It is not 1 a question of ability to secure the needed | ca pital. but it is instead a question of | skill in securing co operation and CO., as well as the highest financial 1 ability in the directing the affairs of the We have the resources. We l possess the capital that is needed. We are waiting to see whether put of these two favorable conditions men of very great ability can so mobilize our resources as to enable American exporters | easily to meet the demands which are