The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1919-03-26
BILLIONS FOR
FINANCING OF
/ EXPORT TRADE

WASHINGTON. March c5.-Thc gov
ernments' billion dollar fund for ftnanc-
ing foreign trade soon will be opened to
American exporters through loans from
the war finance corporation. RcSula-
lions now being prepared by the corpo-
ration to cover advances will provide for
the lending Of sums up to s50.o0.00o to
any individual finn. corporation or OK
port association prnoaHy at 5H4 percent
for a maximum Of five years on ade-
Qnate collateral
The nature Of this collateral security
to Be accepted remains to be worked out
BY the corporation, but Indications are
that paper representing merchandise
engaged IA the export process will be &C
ceptahle. Collateral to the extent OF 20
percent Of the loan will probably be re-
quired end loans will be made either
direct to the exporters OF through banks.
Scores Of informal applications for in
formation or for advances have been re-
ceived from individual exporting firms
Or representatives Of the export assoei-
1tionS being organized under the "eoo
act. the war finance corporation re-
ported today. Preparations Tor MAKING
the loans VIII DO rushed in spite OF the
encrrnous burden thrown ON the corpor-
alton by the necessity Of making large
advances to railroad companies.
Reports indicate that exporters are
planning to make extensive use OF the
governments foreign trade fund as coon
As the regulations are completed and the
corporation Is ready to accept formal
applications.
This IS caused BY three principal In
3fuences-
First. European countries which will
need greet quantities Of American ma
terfals during the next year or two for
reconstruction and to make up for lack
Of constructive. enterprises In the war
have neither the gold nor the. credits to
pay for their purchases in this country
and their inability WIN be increased
when at the end Of the war tie United
States government stops making loans
to the allies
Second. foreign exchange rates, roi-
lowing removal OF artificial government
al influences by Great Britain. France
Italy and the United States last week
have produced a situation in which
American goods would cost foreign pur-
chasers much more than their value IN
dollars at this time il purchasers were
forced to pay cash AS a result. AUer'-
can exporters must sell on credit If they
are to sell in the quantities needed
abroad and tho war finance corporations
fund will provide q means OF pooling
these export credits under gove-nrr ont
supervision.
Third. American banks have not been
accustomed to financing eNpcr. transar-
tons, and cannot legally advance as
large SUMS as may he needed to finance
large export operations. Nor can they
ordinarily make advances for moro than
ninety days. whereas for most foreign
trade transactions 4 year or eighteen
months arc needed OF credits.
~ rr-0cjnal commodities reH-
resented in tha expor, associations al
ready developing ara: Steel. copper. lum-
Be. O. various kinds. textiles. autono-
n:lcs machinery O: varied styles. raw
cotton sugar. -naE0"s:a. paper. tanning
materials. phosphate. OF ard munitions.
One association would l!ric its foreign
trade to clothes prs.