Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-12-07
S100,0O0,0OO AID
PLANNED TO PUSH
NATIONS EXPORTS
Big Bank to Help Market
ing in Europe of Sur
plus Products.
AIM TO SAVE HUGE LOSSES
BY FARMERS AND INDUSTRIES
Foreign Countries Need Raw
Materials for Reconstruct
ton Work.
WILL. EXTEND CREDIT HERE
believe Corporation Would isc.
Establish Americas Grip on
World Commerce.
AIM TO SAVE HUGE LOSSES
BY FARMERS AND INDUSTRIES
WILL. EXTEND CREDIT HERR
mN HonERT J. BENDER.
,"t,rd New. stan Correspondent.

tnitcd News Stan Corrrspondrn,.
NEW YORK. Dec Ga 500. 600 900
banking institution. to Cnsac. exports
of A'n"rica's surplus raw materials
and nnish"d products. estimated 20
total around Sl,5DO ODG.0QQ - expect.
od 10 grow on; o! conference. Fr..
day and Saturday IN Chicago between
representative busine4G men and
bankers from ail sections OF ,ne
country.
Thai n" nations cxpor; trade mus:
be rc-cstabiish.d wthou; great de-
i"y IS tho almost unanimous belief
expressed by l.ad:nE economists. That
the banks ri IN" country nave gone
a. Ear as they can IS the rcc!arat.o:
"f leading bankers ana auanc!ets
Somc idea OF tae need OF Il :oreis n
cnt!et for surplus materials produced
during and since the war may be
shown in the fact that authorities
estimate tn" existing surplus OF COM
moditi.s over and abov" the domestic
demands as 100000 ualcs o. cotton.
20O.oOO.0"0 bushels OF grain, $3.50. COO. =
600 In packing house products. and
f15o.Jbo,000 in scm!Hnished raw ma
'rr.alS and finished products. This
slut IL not "clicvcd. naturally would
react unfavorably beth on industries
and the farmer.
The condition o. foreign countries
while Improving. has not reached tho
stag" wncre liquid capita ~ avail
able TO meet prompt or even short
time credit payments on shipments ut
American goods TO Europe. During
the recent financial conference nt
Brussels. I, developed. according TO
President NJ StraCosh. OF the financial
commission OF the league OF nations.
that eleven out OF the twelve Euro
pcan nations represented were CON
fiontcd with the impossibility OF bal
ancing their budgets.
Unable. therefore, TO pay for goods
shipped from the United States. for
eign countries at the same time are
in need OF these goods in many in
stances vita!ly wanting raw materials
for reconstruction.
President Charles r. Sabin of the
Guaranty Trust Company. who will
attend the Chicago meeting. describes
tha situation thus. by way OF COM
mcnding tho plan for an export IL
nancing corporation. made possible
under the Edge law passed b. the last
session OF Congress:
Foreign nations. impoverished by
the last six years. have no further
liquid assets with which TO pay for
our goods. Our manufacturers and
producers are unable to accept long
term payments and thus tie up the
money Invested in producing tho
goods over period OF years Tho
only way in which this diverse posi-
ton can be adjusted is through an
agency capable OF accepting the Of
fcrs for longterm payments from the
foreign nations and advancing tho
money Immediately upon them to the
American manufacturer and pro-
queer. This is task beyond the
scope OF the ordinary commercial
bank OF the country. the assets OF
which must be always in readiness
for demand"
AS Sabin explains, the commercial
banks have gone their limit. During
the war the government took care vi
the European countries in their
financing Of purchases In the United
States. After the war this aid was
withdrawn and credit extensions were
taken up by the banks. According to
Sabin. however. they have extended
assets and further steps are beyond
their scope"
The need of the day. he says, and
the export financing corporation pro-
vides for 1t, is the entrance OF the
American investing public.
The great institution concciv ed
would cal! upon banks. manufac-
turcrs. farmers. exporters and in
dividuals from every section OF the
country for subscriptions totalinG
500. 100000. this to comprise the
capital stock of the corporation. Each
Federal reserve district would sub
scribe an amount proportibnate to its
resources, provision for which is en-
bodied in the Edge law. Its board OF
directors would be chosen as nearly
as possible according to Federal re-
serve districts. It would operate
with sense OF national RESPONSE
bility under the guidance OF it's di-
rcctorate of experts and would bo
checked and supervised by the high
est Federal banking board in the
land.
1t is the conviction OF many OF the
leading bankers. in fact sponsored by
the American Banking Association.
that such a corporation is necessary
and IL established will restore
Americas grip on the trade markets
of the world.
: MEASURE AIMS TO REVIVE
WAR FINANCE CORPORATION
fRv kyqoci ad