New-York tribune., 1920-12-11
Bankers Back
100 Millions $
! Export Bureau
'irst Steps in Organizing
/; Corporation TO Aid Trade
: With Europe Taken at
Meeting of 800 in Chicago
Hoover Outlines Big Task
Move Made Under Provisions
of Edge Law; Redfie'd
and John McHug!l Speak
Special Dispatch TO The Tribune


! CHICAGO, Dec. 1o-First steps to-
ward the organization of a 100000. :
1000 corporation to bolster foreign
strade by paying cash to exporters for
sgoods sold to foreign firms unable to
spay cash for them, were taken here
to-day when three hundred bankers
.and financiers assembled to work out
:the details of the plan. Formed un-
sder the provisions of the Edge law
FOR financing foreign trade, the cor
sporation will have in addition to its
capitalization, more than billion dol
liars credit with which TO serve its
purpose.
One of the principal speakers to-
! day was Herbert Hoover, ardent sup
/. porter of the plan, who characterized
; the proposed corporation as "a mile
stone in the development of organized
cooperation between our banks, our
. business men, our farmers, and our
'workmen."
Besides Dir. Hoover's speech, other
.fncidents of the days session we're:
The appointment of two committees,
, e on scope and means, and the other
en- resolutions. which met tonight to
discuss the name, manner OF organiza-
en- and other vital points Of the
Sharp criticism by Senator Walter
H. Edge of New Jersey of the oppo-
:is Lon by bankers of his own state
,and Pennsylvania to the formation Of
ne corporation.
The keynote speech was made Ky
Ohm McHugh. president of the
Mechanics and Metals National Bank
It New YORK, and chairman Of TIE
commerce and Marine Commission Of
The American Bankers Association, the
commission which has been largely IN
strumental in drawing up the pros
l-etu5 CT the proposition.
The meeting was presided over by
y His li. Booth, vice president of the
Guaranty Trust COMPANY Of New
crk. John II. Drum, Of San Fran
clsco, president of the American Bank
erss Association. the man who called
he congress OF financial men here,
made short talk at the morning ses-
sion.
Redfield Says Aid Europe Now
William C. Redheld, Secretary of
Commerce, who is mentioned as the
possible bead of the new corporation,
was one of the speakers in the after
noon. After a review of the situation
Secretary Redfield said:
'If we want the trade Of Europe we
have got to help Europe now We
must not wait until she s on her feet
and then expect her trade Now is the
time. and it is my firm belief and
thought and feeling that such help Will
come from such an organization as that
which is being discussed here to- day"
Mr.. Hoover said: You indeed have
9 great problem, for our farmers to-
day are suffering great losses and our
workmen much unemployment. And
this is due to d cons iderabe degree to
the stagnatlon in orders for our ex-
port surplus. And from this stagna-
ton the consuming power of our own
home market is reduced. and the eff
fects are accommodating upon us
Surely to-day, with these forces
laundering at every docr in this land,
ws should heed the oft-repeated warn
ing tnat our welfare is no longer iso-
lated.
I'VE must face the issue that the
economic ills we suffer in d large de-
gree arise from the vicious economic
circles that can be broken in one way
only, and that is by the establishment
Of credits abroad, not the dangerous
snort time credits in which we have
already become overextended but the
long time investment. The war has
brought to us grear many new phe-
romena in our international economic
life, and the greatest Of these phenom-
ena is that we will not for a long time
20 come, if ever, be able to establish
our foreign trade upon a balanced in
take of commodities assisted by the
minor factors of remittance and scrv-
ice. II we would give full time en-
ployment to our farmers and our work
people, to our laborers and our busi-
ness men, we must be prepared to in
fest abroad some part Of the value of
this surplus that we would export
Hoover Stresses Need of Credits
THE social and economic demoraliza-
ton of Europe, the shifted economic
relationships Of these states within