The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-12-11

THINK PRESENT
PRICE DECLINES
WILL CONTINUE
Foreign Trade Corpora
ton Discusses Import
ant Measures.

Chicago, Dec. 11.-(By United
Press. belief that the present
psice declines will continue indef-
nitely was indicated by delegates
attending the foreign trade financ-
ing conference here today. The
conference was called to discuss
plans providing for formation Of q
$100.000,000 foreign trade corpora
ton to maintain and stimulate
Americas foreign trade.
Former Secretary of Commerce
Redheld declared the present low
prices were due to the backing up
OF our export trade.
The result, he said, was an over
supply which forced prices down
and caused enormous losses to
producers.
Redtield declared that when the
proposed corporation starts to
functioning it will eventually hal:
the decline and steady Americas
foreign trade.
1T will particularly benefit our
Latin American trade" he said.
The conference was called to or
der by John s. Drum, San Fran
cisco, president OF the American
Bankers association.
! He was followed by John Nc
Hugh Of the Mechanics & Metals
,, National bank OF New York, who
sounded the keynote speech.
McHugh declared an emergency
had arisen which justified estab-
lishment Of the proposed corpora
ton.
During the war and for a year
and a half after the armistice, he
said, the great wave of prosperity
which swept the country sent
prices higher.
Spending at home was generous
and unstinted," he said. Other
nations bought our goods as never
before"
Since. however, McHugh said
conditions have changed.
Prosperity Stops.
! '"Our extraordinary prosperity
has stopped" he said Factories
and mills have shortened thei,
hours OF work: many even have
closed down.
Goods prepared for export have
backed up all Vdf seaports, owing
to lack OF msans to finance theil
shipments and our markets are
glutted in consequence. Yet the
irony Of it all is that the outside
world could use all the surplus We
might spare. and Europe is still
, calling urgently for our goods ant
for our aid"
McHugh elaborated on the plar
for the establishment Of the pro
posed corporation.
II would. he said, assume tn,
foreign trade obligations to enable
foreign buyers to absorb this coun
try's surplus. Then the corpora
, ton. he said, would issue debent
ures on the foreign obligations.
That the backing up of America
foreign trade has cost the countr.
$4,000. 100000 was the statement 0
George S. Murphy, banker of Man
haitian, Kan.
1T has cost the state of Kansa
. alone approximately SAC, GOO, ,0O
, between July l and Dec. l Of thi
t year." he, said.
or this. the loss in wheat repre-
: sented $131, 100000 alone, Murph.
, estimated.
| IF this corporation had been il
existence we would have saved a
least half OF this" he said.
? Senator Walter f. Edge of New
! Jersey, author Of the law whicl
fauthorizes the organization of tn
proposed corporation. urged reviva
!, of the war finance corporation.
, But 1t must be distinctly speci
:. fed that its help is to be open I
all and not to be confined to tn
:, benefit of select circle" he saii
Separate Corporations.
Edge particularly favored estab
lishment Of separate finance cor
porations. such as is being organ
e lied by southern bankers to pro
4 mote a market for cotton.
Q There is no reason why tn
t farmers and all others should nc
) pursue the same course" he said
Then, if any Of these groups
unable to handle its export trade
it can turn to an organization sue
as is proposed here, and if it b
.hH tInf SC 4