The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-11

100000 EDGE
LAW PLAN STARTED
Conference i'm Chicago Hears
Project to Spur Foreign
Trade Outlined.
WOULD HELP EXCHANGE
Proposed Corporation Could
Extend Credit Abroad for
81, 0,000,0 900.
WOULD HELP EXCHANGE

Special Despatch TO THE New YORK HERALD.
CHICAGO, Dec. 10.--Before ESQ Of the
country's bankers, Industrial leaders and
agricultural representatives John Nc
Hugh, vice-president OF the Mechanics
and Metals National Bank CT New York,
outlined to-day plan for s1Oo,Ooo,ooo
world trade corporation, which, he be-
lieved. would bring about the resumption
Of Americas foreign trade.
The conference, which was held in the
Florentine room OF the Congress Hotel,
will adjourn tomorrow.
1.-THE plan" Mr.. McHugh said, ''out-
lines the formation under the Edge act
and, through the united effort and CO.
operation of bankers. business men and
producers, of a corporation of sufficient
resources to make it really valuable
instrument OF international welfare"
He urged the immediate formation of
the corporation in order that II might
function early In 1921.
Under the Edge act the company could
extend credit for ten times its capitalize
ton to foreign purchasers OF American
goods or at maximum $1,000, 300. 900.
II successful the corporation Is expected
to solve the situation created by the fall
in foreign exchange values which has
resulted in reducing American export
trade to minimum. and stabilize tie
deprecated currency OF the European
countries to a certain extent The pro-
gramme contemplates taking over for
eign securities virtually in pawn, until
the merchandise should be paid for. The
financing corporation would issue rs
own debentures. secured by such stocks
and bonds. and sell them to American
investors
The first storm cloud on the horizon
or the hacker of the proposed organi-
cation came early this morning. when
the president of the Reading Clearing
House Association. Reading. Pa, wired
John r. Drum. who presided over the
meeting. that banks of Pennsylvania
we're opposed to the project
Walter s. Edge, United States Sem
ator from New Jersey. father of the
Edge bill, the first speaker. outlined
the means for foreign finance provided
by his bill. Senator Edge asserted that
he was opposed to Governmental ''in-
trusion or participation in private bust
ness" except as a last resort, and point
ed to the action OF the Southern cotton
raisers as way out or the present
slack In trade.
IAN ideal example has been set by the
men In the South" he said. who have
organized an export finance corpora
ton to handle their own staple. There
is no reason why the farmers should
not pursue the same course and the
hardware man and the shoe man and
all others. Then II any OF these groups
is unable to handle its entire export It
can turn to an organization such as
you propose"
Herbert Hoover, who addressed 1.-THE
members of the conference, declared
that II els vital TO every workman in
America that Europe regains her ex-
change and RECEIVERS her prewar stand
ara OF living. or else we will be dragged
down to Errope's level IF we would
give full time employment to our farm
ers. our workingmen and our business
men," he said. I'VE must be prepared to
invest some part of the value OF our
surplus supplies in foreign trade. The
remedy consists in our king sys-
tennatic permanent investment"
William A. Redfield formerly Secre-
tary OF Commerce. pleaded for American
Investments abroad to enable us to COM
pete with England and other trade Pow
ers. within the past sixty days agents
here for two large businesses, one IN
New Zealand and the other In Australia.
have received Instructions not to buy
another dollars worth of American
Goods" he said. I'VE must correct that.
Foreign investments will do it,