New-York tribune., 1920-04-12
Banker Urges =.
$lOO,OOO,OOO
Trade Agency
John McHugh Wants Big
Corporation Formed 70
Finance u. S. Commerce
With European Nations
To Be Under Edge Act
Project Is Indorsed by Amer
lean Bankers Associa-
ton; Would Aid Thrift

plan for financing Americas for.
eien trade under the provisions Of the
Edse act has been formulated by John
ucHugh, ce-president Of the Me-
ehanics and Metals National Bank and
published in brochure given out yes
terday by the American Bankers Asso-
cis.ion. Mr.. McHugh is chairman of
the associations committee on COM
merce and marine. His suggestions, in
part. follow:
ut is fair to assume that the general
opinion is that our foreign trade. both
EXPORT and import, in proper relative
volume, is necessary to a satisfactory
domestic situation here. 1t would seem,
therefore, that what we should concern
ourselves with most at this time is:
First-What method, or financial
machinery, should be adopted or
broueht into existence effectively to
hardle long time credits in the interest
of American trade?
Second - Having agreed on the
method, or the financial machinery, to
be adopted, or brought into existence,
what is the best way to bring it into
existence? and
"Third-Having brought it into ex-
stence, what shall be done to make it
that which it was brought into being
to do?
at would seem that the answer to
the first is that steps should be taken
at once to organize q, financial cor
poration under the provisions Of the
Edge act with the purpose in view Of
having a corporation capitalized at
least for s100,0OO,0O0. The personnel
and the management should be the
best that can possibly be provided and
one in which the confidence Of the
American investing public can be re-
posed without any question whatever.
One large, sufficiently capitalized finan-
cial organization is suggested rather
than many smaller organizations, for
the reason that a single large one
eign field and it could secure the CO.
operation of those in this country In
terested in it's objects. namely, the
bankers, exporters, manufacturers and
others who would become its share
holders"
MIR. McHugh's proposal for solving
his second problem-the means Of
bringing into existence the requisite
machinery-is that it be left to the
combined efforts Of certain standing
committees Of the American Bankers'
Association, Chamber Of Commerce of
the United States, Chamber Of Com
merce Of the State Of New York, In
vestment Bankers Association, Amer
lean Manufacturers Export Associa-
tlon, American Exporters and Import
Relations and the National Foreign
Trade Council, as we'll as state bank
ers' associations throughout the
country.
he continues:
Il would say In response to the third,
that after the foregoing has all been
accomplished. the organizations policy
should be clearly outlined as being
entirely and solely in the interest Of
maintaining and still further Develop
ing foreign markets for American pro-
ducts and that no diversion from this
should be permitted. It's efforts
should be and undoubtedly would be
supported by intense, well-directed
publicity which might be carried on,
not only by the corporation itself, but
BY the several committees already mon
toned, In order to convince the people
Of this country that we should practice
TWO important things: 80
One, thrift, in order that q reason
able part of the resulting savings Of
the people of this country might Be in
vested IN securities growing out Of our
foreign trade, and second, production,
In order that we could out Of our, sur
plus supply the foreign markets with
out subJecting our own people to in
creased costs for their own necessities.
The corporations energies should
De devoted to helping foreign peoples
70 help themselves. It should assist
!em IN financing the purchase chiefly
OF raw materials and equipment With
which to put their people to work 80
nat IN proper time when those for
elgners had converted the raw material
INTO finished articles we. in common
With others, could become tho pur-
cnasers Of them, which would immedi-
ately commence to regulate our prices
nere at home and enable US to gradual-
wors back to a pre-war normal con-