The Birmingham age-herald., 1920-11-12

of a southern export company.
 Mir. Wells has been active in the mat ter for some time, and since his return from the meeting in New Orleans last week has discussed the subject before several bodies of Birmingham business men. When asked yesterday for statement on what the new project meant for the south, MT. Wells ,5ald:
 Southern bankers are organizing finance company. under the Edge vx- port finance act< which is an amend ment to the federal reserve act passed by Congress in December of last year.
 This is matter of prime interest to the public just now, because--1t :s a constructive effort toward the crea- tion of a market abroad for the prod ucts of our own section.
 Cotton is not moving today, except in a most sporadic and unsatisfactory manner because of the lack of an ade- Quate market and particularly an ex- port market As serious as the reduced price may be, that is not so grave a matter to the financial independence ot the cotton producing area as this ques tion of a market.
 BANKERS BECAME ACTIVE
 
 in Europe, normally our purchasers of cotton, enter into the present deraa sed status of the export market and tke bankers of the southern country from North Carolina to Texas, after conf sr- ring both at Washington during the American Bankers convention about two weeks ago, and again in New Or leans last week, decided that the best way to offset these difficulties is through the machinery provided ny the Edge export finance act
 Bankers from every state embraced in the territory just indicated were present in New Orleans. They were enthusiastic in their determination to organize this financial institution. It's name has not yet been chosen, as that can be done only with the approval of the federal reserve board, under whose supervision it will be conducted
 SOUTH WELL REPRESENTED
 Fifteen of it's 20 directors were named at the meeting, and they include able and well-known bankers from all over the south. The bank will be lo- cated in New Orleans and three of her principal bankers drawn from as many of her large banks the Whitney Ccn> tral. the Hibernia and the Canal will be on the board thus affording good material for service on the fin ance committee of the new institution. Bankers from other points, Houston, Dallas, Jacksonville, Memphis, Sayan- nah, Atlanta. Tupelo, Birmingham and Carolina points will be on the board. The capital stock will be not less than $6,Ooo,ooo. It will be contributed by banks chiefly, but exporters, whole salers, manufacturers and all others whose business may be facilitated by the handling of sound foreign credits are invited into the organization An active campaign for subscriptions to the stock will be conducted from DOW until December 10 among the banks in all southern states on basis of a min imum subscription from any one bank of per cent of its capital and surplus
 The New Orleans banks pledged 8 minimum of s1,250, 900 from Louisiana of which $1,oo0,0o0 will come from New Orleans. That means more than 5 Der cent of capital and surplus. Col. T. o. Smith of the Birmingham Trust and Savings company will have charge of the campaign in Alabama, and it is confidently expected that the banks of the state will subscribe at least a full $500,000 to the capital of the Few company, to say nothing of other sub- scriptions. If we raise more than $6, 900, we will increase the capital and can furnish increased facilities for creating markets where none exist now. This is the purpose of our pro> ject. If we can find competent nan- |agement early in our organization work. we can begin operations by Jan- uary.
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