The Washington herald., 1920-11-13
A Wise Marketing Plan.

The Daily Oklahoman, Oklahoma City, COM
naents favorably upon the recent meeting of more
than 100 bankers of the South held in New Or
leans when Federal foreign finance corporation
was organized Saturday night The capitalization is
to be $6,oooooo. The purpose of the organization is
the financing of the foreign marketing of the staple
products of the South. such cotton. rice. sugar
and lumber. Each of the twelve Southern States is
to be given capitalization quota and the bankers
from these States have pledged themselves to see
that the quotas are met. Oklahoma is included in
the twelve.
While it is not yet known just what form the
organization to take" the Oklahoman says there
is to doubt that if it is formulated along
the right lines it will be of great benefit to the
South. Some such export financing corporation has
been considered for time. 1t has been dis
cussed frequently and has been indorsed by Gov.
Harding of the Federal Reserve Board; William g.
McAdoo, former Secretary Of the Treasury, and
many other prominent men, McAdoo recently Of
fered his legal services free to President Wanna
maker, of the American Cotton Association, in or
ganizing such corporation.
There is some question as to whether capi-
talization of S6oooooo will be sufficient. Talk here
tofore has been for $Ioo,oooooo corporation.
Even an export corporation with 100000 capital
should be of much service. If it is found that more
capital is needed, campaign for additional funds
can be launched.
However, the foreign marketing Of American
crops, even with the aid of the export financing
corporation, will be under great handicaps until
stable conditions in Europe are restored and until
the exchange rate is brought back to normal.
Europe already is heavily in debt and there are
many hnandiers and economists who believe that
the best thing for Europe do is to get along on
little possible until she is producing sufficient
wealth in the form of materials finished
products to pay her current expenses and some
thing on her past indebtedness AS long the ex-
change rate is unfsvorable to Europe. the money
of European countries will not purchase as much as
it would if THE rate normal
Insofar as the United States is concerned the
restoring of stable conditions in Europe and nor
NAL exchange rate will depend upon the attitude of
helpfulness aloofness which this country may
adopt toward European nations. A high tariff, for
instance, would tend to keep out European goods
and would postpone the day when European ma
tions will get back their feet, financially.
"The export financing corporation get the
Souths products to Europe, but it cannot force the
Europeans to buy"
The plan is, believe, the logical method for
any section OF the country to follow when it finds
a slack demand for its products. The recent Ku-
Klux-Klan activities and the burning of cotton
glnS as means OF keeping up the price OF cotton,
are methods that are as absurd as they are repre-
hensibe.
The law of supply and demand is merciless in
its effects sometimes but is study of markets and
salesmanship that keep it under control The exer-
else of calm business foresight is, of course the
only sane method of disposing of products The
step taken by the Southern bankers should help to
prevent repetition of the recent performances in
some Of the cotton-growing States. At the least it
is an effort to meet the situation in a sensible,
American manner.