Evening star., 1920-01-04
INTERNATIONAL MARKET
FOR SECURITIES ADVISED
Eugene Meyer, Jr., Addresses For
eign Press Correspondents
in New York.

NEW YORK, January (by the AS
sociated Press) Est Establishment of an
international public market for inter-
national securities as the most normal
and expeditions means of providing the
war-stricken countries of Europe win
long-term credits, was recommended
tonight by Eugene Meyer. jr.. manag-
ing director of the War Finance Cor
portation, in an address before the asso-
citation of foreign press correspondents
Assuming" he asserted, las seems
clear from the annual report OF the
Secretary of the Treasury, that credit
from the United States government is
no longer desirable or obtainable, ex-
cept in cases of pure relief, there are
three forms of credit left from America ::
Credit from banks. credits from indus
trial and commercial sources, and
credits obtainable from the investment
market in this country"
Bank credit is necessarily short-term
credit and totally inadequate to meet
existing difficulties, he explained, al
though the Edge bill, recently passed
by Congress, is designed to facilitate
the creation of long-term credits of a
kind appropriate for foreign trade under
present circumstances.
Commercial credits also are being
arranged in considerable amounts. he
said. some of the industrial companies
applying for and getting their funds
from the War Finance Corporation.
ranged for he said totaled s15,OO0.-
500, divided equally between pur-
chases for agricultural machinery To-
comotives and electrical machinery.
Credits obtainable in the invest
ment market" Mr.. Meyer continued,
should be the most important source
of assistance if it can be enlisted on
behalf of the situation on a larger
scale. A number of loans payable in
dollars already have been issued in
this country, and this is one good
method by which the American in
vestor is helping. But one method is
not sufficient, and for some time l
our public markets. under proper
safeguards. not only to those dollar
loans, but to the internal loans of
foreign countries.
In years past when the United
States needed foreign capital Europe
bought our American dollar securi-
ties, and it was only as an exception
that the American borrower was
called upon to issue his obligations in
foreign currencies. American invest
ors are accustomed to certificates that
are engraved and certified by re-
sponsible transfer agents for pur-
poses of protection. and there is no
reason why they should not get this
protection by American bankers and
trust companies issuing local certifi-
Gates which represent the deposit of
foreign certificates.
ANY dealer in international securi-
ties should be able to buy. these for
eign securities in the open markets of
Europe and at a moderate charge to
have his European certificate ex
changed for an American one which
would be good for delivery in our
markets. The results would be: Fur
nishing through the investment mar
ket large aggregate amounts of funds
for financing our trade with European
countries through the medium of the
American investment market; ma
terial broadening and consequent sta
bilization of the exchange market;
helping the European markets for
their internal loans because the Euro
pean investors would have the ad
vantage of an international market
rather than national one for their
own issues making the internal loans
of foreign countries available as col
lateral for securing shorter or longer
accommodations from various sources
in America, including the war finance
corporation"
Dr. Marcel Knecht was reelected
president of the association at a busi-
ness meeting preceding the dinner.