Omaha daily bee., 1920-12-12
American
Trade Plan
Launched
Committee Named to Begin
Actual Work of Forming
Huge Corporation to Fl
nance Business Abroad.
Ready to Operate Jan. i
By ARTHUR M. EVANS.

Chicago, Dec. 1.-THE billion
dollar baby in the worlds markets
was born today. The project to
form corporation with $l00,000,000
capital and $1,000,000,000 capacity,
was adopted by the conference of
finance, industry, farming and busi-
ness. Forthwith committee of 80
was appointed to proceed with the
work OF organizing the company
and getting it into operation.
The name suggested is the For
eign Trade Financing corporation.
A fund of 100000 was pledged to
meet the expenses of launching the
venture and after the conference ad-
journed the 80 organizers went into
session to start things moving. New
Years is expected to see. it ready
for business.
The personnel of this creative
body OF 80 was reported by the COM
mittee on plans and scope, with
John H. Fahey Of Boston, chairman.
1t is invested with full authority to
add to its numbers and to take all
steps deemed necessary or appro-
pirate to organize and bring into
operation, a corporation under the
provisions of the Edge act, with a
capital of $l00,00G,000 for financing
American foreign trade.
Resolutions Adopted.
The committee is to receive sub
scriptipns to the stock of the cor
poration. 1t will also nominate the
board of directors and the principal
executive officers.
Resolutions adopted by the confer
ence set down two guiding prin-
ciples:
Extension of credit by the corpo-
ration should be confined to coun-
tries, where there is stable govern
ment, and where there is an assur-
ance of integrity OF purpose. +
Corporations of the corporation
should be confined to financing for
the benefit of future foreign trade"
John McHugh of the Mechanics
and Metals National bank of New
York is to be head Of the board of
directors, without compensation,
The argument hammered home
during two days addresses by lead
ing financiers and producers was set
forth again by Fred |. Kent of the
Bankers Trust company of New
York, who made the chief speech OF
the day.
Outlines Cause of Trouble.
"The fact that the United States
dollar is at a premium throughout
the world" he said, "or to be more
explicit, the underlying cause for this
fact, is at the bottom of our trouble,
insofar as it is economic; even as
the deprecated exchange of other
countries furnishes the root of their
crying economic difficulties.
"The principal and most disas-
trous effect lies in the brake put
upon the distribution of the worlds
products, as it is this stagnation in
distribution which throws commodi.
ties on markets which cannot absorb
them, resulting in the falling Of
prices at a dangerous speed, with the
consequest enforced idleness Of
labor.
Many countries, which before the
war shipped products to European
countries, are unable to do SO today
as they cannot sell on long time
credit, so they naturally turn to the
United States, where they can sell
for cash. AS the result, commodi-
ties have piled up here for which
there is no market, until the export
ing countries in many cases, where
they have been buying from US, have
nothing marketable to send us with
which to pay for their imports.
High Export Trade.
"We find ourselves, therefore, with
a high export trade that is only be-
ing paid for in part by large por-
ton of the world, and that is fast
nearing a point where it will be cut
drastically to- essentials unless the
great buying power of Europe is re-
stored.
"Such restoration can only come
from an extended period during
which raw materials must go for
against long time credits. Food
stuffs must be furnished also, but,
except where shipped by relief Of
ganizations, they should be largely
paid for. promptly as they go into
immediate consumption.
I'VE are therefore brought face to
face with the question how we can
best extend long time credits to
Europe on a basis that will enable
her to reconstruct her industries and
to other countries of the world, to
enable them in turn to make ad-
vances to Europe for goods which
they can furnish"