New-York tribune., 1919-12-27
Signing of Edge
Bill Leaves Credit
Problem Unsolyed
Measure Will Help, but No,
Enough, to Meet Situs.
ton, Bankers Say; Dav;.
son Plan Not Abandoned

Leading international banker, :,
Wall Street yesterday expressed q,
view that the signing Of the Edoe 49, '.,s
Tor the creation of foreign fnanc1Y,'. ~.
operations would aid the Euro,sa-
credit situation, bu, would no.
it comprehensively on the scale needss
What is needed is conidence.p o,.
the leaders in the movement for c,a.:.
for the Old World said, "and ns;..'
tho Edge bill nor any other can leei.
late confidence into the situation,
Many plans for the formatio, =.
Edge bill corporations are under Il.
cussion. but none has matured g.
enough for public announcement T.
expected that corporations Of ann,ov:
mateiy s1O,00O,0Go capital will +.
formed under the auspices Of bus;no,.
men in the cities which are most al;vs
TO the needs of the international s;.r
alton, such as New Orleans. ST. ror;.
Minneapolis, Chicago and New yo,,.
BANKERS expect, too that the co,.
porations will be formed along .r.d.
lines, one for the steel trade for ev
ample. and others for the conner
trade. But the proponents Of act;On
on an immense scale predict tha. n.
springine up Of corporations under tbs
Edge law will be natural bank;..
growth, and will be perhaps too smsf
IN the aggregate and TOO long deferred
to correct the present demoralized con-
ditlon Of the foreign exchanges.
Investment bankers assert that the,o
IS now virtually no appetite for forejr,
bonds, and that debentures of Edge law
corporations, which are based az fCr
elgn credits; would appeal to the in
vestment public only if protected bvs
ample capital on the part OF the issn-
ing corporations and by the yielding q
a high rate of interest. One bankin-
authority said that the debentures
would have TO pay from So. Der cer.
upward TO compete with outstanding
bonds.
But the prevailing feeling is tia.
nothing can be done in huge wav # +
has to be based on the support Of the
investment market Many of the in.
dividual industries, however. it is ex-
pected, may subscribe capital TO tho
formation of Edge corporations that
will aid them in their foreign business
When the condition of The investment
market improves the plan suggested bv
Henry P. Dawson. of J. P Morgan &
Co., will be actively revived, it became
known yesterday. His program in
wolves the creation Of great nation
wide investment trust, which should be
supported by the investment bankers.
the great industrial interests. the in
vestors and the United States govern
ment. Mr.. Dawson advocated the ere
alton Of an instrument colossal enough
to meet the whole European credit
needs.
After the peace treaty wrangle is set
tied, the railroad muddie is cleared I'D
and the tax laws changed so as 10
bring wealthy individuals into the man
ket again for taxable bonds, in the
phraseology of we'll informed bankers
the Dawson plan will be actively
doomed again. The sponsors of the
plan now believe that the United States
government will Rave to take a vigor-
Gus part If the Dawson idea is to sue
ceed. For example, they would CON
slider it desirable for the Comptroller
Of the Currency to recommend 70 ma
tional banks the purchase of deben
lures that might be issued, and for the
Secretary of the Treasury and the Sec
retary of Commerce to put themselves
effectively on record as to the necessity
of buying such debentures if Europe i
to be saved from chaos and America,
trade with the Old World is TO be held