The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-11-16
MEMPHIS BANKERS
MAY GIVE AID TO
FINANCE COMPANY
Meetings of Bankers in Three
Grand Divisions of State
Will Be Called to Discuss
Subscribing to Stock.

Memphis Clearing House associa-
ton, has called a i citing OF the as
ISOLATION for Wednesday afternoon
at 3 o'clock to discuss the partiCipa-
ton of Memphis banks in the or
ganization of the Federal lnterna-
tional Banking corporation. This
corporation was planned at re-
cent meeting at New Orleans under
the name of the Federal Foreign
Finance corporation. but the name
was not approved by IN" federal re-
serve board, owing to its similarity
to that of another similar corpora
ton, and the name of Federal Inter-
national Banking corporation was
substituted
The proposed corporation is re
ceiying the enthusiastic support of
the banking fraternity throughout
the South. At least three states
have announced that their quotas
of stock have been underwritten. In
two of these cases, that of Louis
lana and Georgia, the amounts IA
derwritten have gone well above the
states quotas. New Orleans and
Louisiana banks have subscribed
S1,250,000, Texas has underwrittcn
$500 000 and reports from Atlanta
state that Georgia bankers have ST.
100000 subscribed.
This makes a total Of 81, 100000 of
the $6,000,000 minimum which must
be subscribed before the corpora
ton will start 70 do business. Mem
phls bankers are showing keen IN
terest in the movement, and FAVOR
able action is expected Wednesday,
Dwight NJ Armstrong, member or
the committee on permanent organi-
zation, and one of the committee OF
\ Southern bankers who worked out
the plans of the American Bankers
association, will urge at this meet
ing that a meeting be called at once
of West Tennessee bankers to take
action on subscriptions to the cor
poration's stock. Meetings of Ar
kansas bankers at Little Rock and
OF Mississippi bankers at Jackson
are being held Tuesday to discuss
the quotas of these two states.
State Bankers Like Plan.
MIR. Armstrong is receiving en-
couraging letters from bankers IN
all parts of the South who COM
mend the plan. t. r. Preston:
president of the Hamilton National
bank, OF Chattanooga, state chair
man of the campaign committee Tor
Tennessee, has written Mr. Arm
strong stating that Chattanooga
: banks will get behind the movement
and other leading bankers of the
state have stated that the move
ment is taking well in their sec
tons. V. j. Alexander. vice presi-
dent of the Cumberland Valley Ma
tional bank. of Nashville. and presi-
dent of the Tennessee Bankers as
sociation. has written that he is
thoroughly In sympathy with the
movement and that he will call
meetings of the bankers of the
three grand divisions of the state to
indorse the movement. The quotas
Of the various states was figured on
the basis of per cent of the total
capital and surplus of the banks,
but the allotment to Tennessee or
$500, 900 will not run this high.
The formation Of trading com
panies, such, for instance, as the
Mississippi Delta Cotton Export
ana Trading company, instead OF
conflicting, will work in well with
the finance corporation, according to
Mr.. Armstrong For 1t will not be
tlle purpose of the banking corpora
ton to engage in trade in any way
In fact. under its charter under the
Edge act, 1t can not do SO. It's
function will be solely banking. ana
In this function its relations with
the trade companies should pc mus
tually beneficial. The trading COM
NAMES may use the corporation as
q financing medium in carrying for
ward their trade with foreign coun-
tries whose credit has been I'M
haired as a result of the war.
II is probable that numbers OF
these trading companies Will be
formed. in cotton, in lumber, sugar
rice and the many other commodi-
ties which the South produces. y
win be the function of the finance
corporation to act merely In the ca
paclty of banker to these companies
and any others who may wish to DO
d foreign business. The organlza-
ton of such a company was mado
necessary because of the restric-
lions placed upon the ordinary
banking machinery of this country;
restrictions which were recognized
by the trainers of the Edge act, and
which are removed in the case IT
hanks organized under the provis-
ions of the act.
A companion act, the WeoD- POM
creme act, provides for the torma-
tion of export trading corporations
and new trading companies are be-
ing formed in the South under this
act. according TO Mr.. Armstrong.
Will Look After Safety.
The requests for credit made b.
export traders will be subject to the
keen scrutiny of trained bankers be
fore finances are made available and
the. safety of the loan will be gone
into thoroughly. Besides the presi-
dent of the corporation, whoever he
may be a board Of directors will
pass upon all loans before they are
made.
Illustrating methods to be fol-
lowed bv the corporation a case in
noint is the sale Of the BaldwH. Lo-