Evening star., 1920-08-22
OUR EXPORT TRADE
NEEDS CREDIT AID
Manufacturers Have FL
nanced Themselves =
Partially. 81
From Daily Financial America.

Aeauefship IS the one/need for any
program that will enable America to
fund very large part of her swoll-
en- credits. Ever since October last
our exporters hzve been hoping
against hope for>the bridge of credit
that would enable them to go on sup
plying Europe's needs Eventually
europe must pay our bill by produc-
ing and shipping her own goods. But
cfedlt OF two to five years is needed
until the revival of European industry
is posslhAe. For ten months of the
present Uscal year our exports have
eXceedGd Sc, TOO. .000, 900, or about a
DllilorA and quarter more than in
the same period last year.
Pfksage of the Edge law encour-
aged our exporters to believe that the
Necessary long-term credits for Eu-
rope would be provided. The law per-
,4nits corporations to be organized for
the sale of foreign securities in Amer
lea to pay for American exports. Prac-
tlcally it enables Americans to ac-
cept mortgages on foreign factories,
mines, farms railroads or other busi-
ness property for their advances.
Exporters Hopeful.
Our exporters, while waiting for
this long term credit. have kept on
working. They have used short-term
credit at high rates. to 3 per cent.
They have borrowed on notes and
on liberty bonds. Many have been
forced to sell their bonds at a sac
rifice of 1910 Is per cent. They have
been a large factor in depicting the
ordinary~credit resources of the coun-
try. ard causing tight money and
high Yates that are pinching business
of all kinds.
Meanwhile the mobilizing of credit,
promised last fall to maintain for
eEn trade. is lacking. Our bankers
hesitate to make the effort. A COM
nittee of the United States Chamber
of Commerce. composed chiefly Of
bankers. reported recently that "the
small investor is not saving money"
and could not be depended on to buy
foreign securities. 1t urged that the
income >tax load be lifted from larger
investors SO they would be induced to
| invest in these credits.
SMALL Investor Saving.
Savings bank and life insurance re-
ports do not sustain this statement con-
cerning the small investor. He added
a larger sum than ever to the resources
of these institutions last year. His saw
ing included also a large part of the
Victory note sales. This year he is put
ting more money into building
than in many years. He is not thrift
less.
All Of these small investments have
been encouraged by a vigorous. per-
suasive campaign of thrift. The small
investor had Victory notes urged upon
him in houSe-to-houSe canvass of the
nation. The savings bank follows him
to the movies and through the screen
persuades him. The life insurance
agent he has never been able to escape
The house-builder's advertising meets
him everywhere. But who ever has un-
dertaken to sell these Edge law foreign
securities?
Without this credit, however, our ex-
porters are handicapped British goods,
on long-term credits, are going into
European markets that Americans can
not reach. British textile industries. al
ways vastly greater than our own, are
expa nding and taking up the foreign
trade abandoned by Germany Our own
export trade appears to have passed the
peak. ApriPs trade was below that of
the same month last year..
Lacks Federal Encoara<enent.
Our foreign trade lacks the govern
ment encouragement given in Britain.
A committee of the American Bankers
Association, headed by John McHugh,
vice president of the Mechanics and Met
ais. Bank, reported recently that a na-
tioA-wide organization to finance our
foreign trade can be readily brought in
to existence. Exporters, manufacturers,
bankersand Others were ready for such a
movement under the Edge act, but await
leadership, this committee said. I'VE
are disposed to the opinion" these bank
ers reported. that government support
OF American foreign investment is alb
soiutely necessary. but that in all prob
ability it will not be forthcoming. un-
less a demand arises for it; and that
TINS demand will not make itself felt
until 1T is backed up by powerful pub
lie opinion
Long Years OF Effort,
Public confidence in life inur.nce
and savings banks has been built up bv
several generations of steady growth
and persistent effort. Much Of our
trade with Europe would not survive
campaign SO protracted. It's needs ars
immediate. Because they are poorly
served a heavier burden is lajd an
Americas whole credit strpcfura Ia
sacrlnee the trade for which we havs
just built up a great merchant neat
seems an impossible alternative yet -
cannot be expected to support itself ~,
the recent basis Of three-fourfhs c,,.,s;4
and one-fourth exchange Of goods v;the
out assistance. e>0 Will