New-York tribune., 1920-10-20
Hurley Advocates
$l5O,O00,0OQ Fund
For Foreign Credits
Special Dispatch to The rrioun


CHICAGO, Oct. ia cooperative
system whereby credits can be ar
ranged Tor the marketing of American
products abroad was advocated by
EDWARD n. Hurley, former chairman Of
the Stripping Board, in an. address de-
Iivered at banquet given by the
National Marine League here this eve
ning. Admiral Benson, the present
chairman of the board, also spoke.
urging international reciprocity in
commerce and shipping.
ms country to-day is in q rather
peculiar position" said Mr.. Hurley,
with the second largest merchant
heet of ships in the world ready to
move our surplus wheat, cotton and
inanutactured products to the markets
OF the world; many of these ships arc
now ldle IN our ports with no cargoes
oaered, with a surplus crop of cotton
tor export of 100000 bales. which
at the present low market price would
amount to $So0,000,0O0; with a surplus
1or export of 300,000O00 bushels of
wneat, which at the present market
price would bring over 100000, 600;
products of $25o,0oO,OOo; as we'll as
sou, 100000 worth of semi-manufac-
tured raw materials and finished manu-
1actured products of various kinds.
Inc countries of Europe are in the
market tor the major part of this
SUI pius, but our marketers of wheat.
cotton and other products still ask for
payment in gold at our seaports before
goods are shipped
Our position should be a CONNER
clal one. With these tremendous ex-
cess products to sell and with our
natural overseas customers restricted
20 40
cooperate with these customers TO
place them in position to make their
needed purchases.
"A plan could be adopted under
which the marketers of the diverse
products could comparatively work out
d system OF credits and within limits
paralleling some of the existing co.
operative marketing associations in
this country.
Through the medium of corpora
tlon, collateral bond issue of from
$100,o00,00Q to sl50OOO 900 could be
created to bear interest at 8 per can't
an ana TO run three years, or possibly five.
Ihis amount is deemed sufficient, as if
would furnish revolving fund during
the period of the marketing of the
products.
The lnarketers of the various prod
ucts would make the sales to the pri-
NdCe purchasers IN the various Euro
pean countries, receiving in return IN
obligation from the purchaser, definite
as to amount and time of payment and
as to interest. These receivable obli-
cations would constitute the security
for the bonds, these obligations, to
have the guaranty of the purchasers
particular governments which most all
the European governments are willing
to do, and possibly also the guaranty
Of the marketers in this country
with these obligations so guaran-
teed as security the bonds should be
a safe investment, but to make assur-
ance doubly secure the market 'rs
might be called upon to create a mar
gin for further protection. This again
should be done through the medium of
the corporation issuing the bonds
"The final settlement of the purchase
obligations could be fixed on a ratio
as between the foreign currency and
the dollar at an agreed rate of OK
change, which might be substantially y
that of the present late of exchange.
This adds an attractive feature, be-
cause we can assume that what we are
doing will of itself substantially IN
prove the financial position Of The
countries whose nationals ava'lcd
! thems selves of the man.