Omaha daily bee., 1919-09-15
Redtield ON Foreign Trade
From The Brooklyn Eagle.

-
field stated that he had received no offer to
head an organization to be known as Foreign
Credit Clearing House, though he agreed that
he had had conversations with Mark o. Prem
tiss concerning the need for some sort of
credit organization in connection with foreign
trade. He took the publication Of an article
in New York that he was to head such an Or
ganizaton as an occasion for issuing a state
ment telling of the need for some sort of
credit clearing house
published in New York paper" he said, shat
/ have been selected as the executive head of
foreign credit clearing house. So far as am
informed no such organization exists no one IS
authorized to extend such an invitation on be-
half of any organized body and no such invi-
hardly accept or decline a proposition until it
| is made, and none has been made.
Il have had one interview and some cor
respondence with Mr.. Mark O. Prentiss in con-
nection with the plan for the so-called foreign
trade clearing house and am informed that
the idea has been approved by prominent men
Of affairs to whom it has been submitted. SO
far as my own action is concerned, however,
nothing further can be said than was stated by
me last week, that | am considering several
matters which have been suggested to me, none
OF which has reached decisive stage"
Mr.. Redheld then declared that the subject
of foreign credits having been raised. it was
proper for him to give his views on this subject.
The first great need of the country today
is peace" declared the secretary. "The energies
of our industry and commerce are choked at
the source, so far as their outreach into the
great world is concerned, because we are still
at war There arises before the United States
a unique opportunity both to serve the world
and to earn great and deserved rewards for
itself, but we cannot take up that opportunity
in adequate way until have peace.
Although he did not include it in his issued
statement, Mr.. Redheld stated that there was
no middle ground for business, between war
and peace and that in every sense of the word
business was still at war, and would remain
until the treaty of peace was ratified.
when peace has come" continued Mr. Red
field, I'VE need what we have not--an adequate
organization for furnishing the credits which
the world requires"
He then explained that in small way indi-
vidual institutions have credit bureaus, but
these were quite inadequate to release the pro-
ductve power OF America.
There ought to be, and in some way there
must come to be-" continued the secretary, IF
we are to do the job right, great corporate
unit, or units, either under government super
vision or possibly government participation
certainly with the governments approval-and
with great capital, say billion dollars. This
body should take the securities of nations,
provinces, cities, corporations, private and pub
lie enterprises, in various parts of the world,
and then secured by these and by its own vast
financial strength should issue its debentures
to be sold all over the United States a
basis of a commercial return for small and
large investors alike.
The task is great The $1,O0O0OOOOO will
not be sufficient. Probably Severa billions
must be raised. Investors cannot search for
themselves into the foundations of foreign Sc
curities, but such units as are proposed can do
SO and their own securities will find ready &C
ceptance. Through this means the savings of
America can be made of service to the world
and through this service three-fold profit will
come to reward the capital and the labor OF
this country.
The three fold reward, says Mr.. Redheld,
will be, first, the direct interest return from
investment; second, the business normally aris-
ing from the operations OF the concerns or
enterprises in which the investment is made,
and third, the enrichment of the country in
which these operations proceed by reason Of
those operations SO that it is better able to buy
and what is important now is better able to
pay its share of the vast sums owed us from
abroad. The secretary then laid stress upon
the important factor in our foreign trade, this
important factor being credit information.
The existing means OF credit knowledge
are insufficient" he said. Credit arises from
commercial life and that life is changing,
growing thing; therefore, credit knowledge
must itself change and grow with the mercan-
tile life of which it is the fruit. 1t must arise
from actual knowledge of transactions, not
from hastily obtained opinions. 1t must not
depend upon individual and partial judgments
but upon ascertained fact. 1t must. therefore,
record coming from the sources of transactions
of such kind, that credit not only may not
be misused, but that there may be no tendency
to misuse it because it will be known that
knowledge exists where it can act both as a
helper and check"
Summing up the whole business situation,
Mr. Redheld sald
These three things we need: First, peace,
then organization, then knowledge When
these are once had he would be bold man who
would put limits to usefulness and our
growth. The door of opportunity is open now
it will not always stay So"
Still Like the Kln0 Business