The Washington herald., 1920-12-12
FUNDS PLEDGED
TO LAUNCH BIG
FINANCE FIRM
Sufficient Amount Raised
In Five Minutes at Chi
cago Meeting.
P. WARBURG SPEAKS
Declares World Foreign Trade
Is Deadlocked, and Country
Should Support Move.

CHICAGO, Dec. 11.-"world for
efgn trade is seadiocSed and it Is up
to the people of the United States to
break 1t through giving whole
hearted support to the proposed es-
tsblishment of a 800. 200, 900 foreign
trade finance corporation" Paul E
warburg. New York banker. and for
mer member Of the Federal Reserve
Board. said in An exclusive interview
here today.
The United States has to organize
itself to render service to the world"
said Warburg. And on the other
hand, the degree to which We can
realize our power depends on foreign
countries
Europe in that respect is a
nucleus. for unless Europe can buy
Argentine goods. Argentina cannot
buy United States products.
Our ability to break the deadlock
depends on two things: First. on our
mobilization for the task and the
degree to which we can mobilize our
financial resources, and second, on
Europe's ability to create conditions,
which are prerequisite for extension
of credits on a large scale"
Warburg endorsed the views OF
Herbert Hoover and John McHugh.
New York banker. that Europe must
settle the German indemnity in an
Intelligent way.
We must also have an actual
peace restored" he said.
Warburg expressed the belief that
the proposed corporation will be
beneficial to farmers.
The farmers should be behind the
corporation. for its effect will be to
help setting idle hands in foreign
countries to work and to feed empty
stomachs. and in doing that our ex-
cess supplies will be moved from our
markets" he said.
John McHugh. of New York, was
named chairman of the committee
TO work out details of the corpo-
ration Other members included:
Herbert Hoover. Paul Warburg.
New York; John S. Drum, San
Francisco; James B. Forgan, Chi
cago: F. o. Watts. st. Louis: Lewis
E. Pierson. New York: Charles II.
Sabin. New York: Arthur REYNOLDS,
Chicago; r. Howard, Clinton. Iowa
Thomas E. Wilson. Chicago; T. l..
Kent, New York: ]. G.. CuIbertson,
Wiehits Falls. Texas; Philip Stock
ton. Boston: Oscar Wells, Bfrming-
ham. Ala; J. H. Barnes. Duluth: A.
p. Bedford. New York; Herbert NY
rick. Springfield, Mass; Alexander
Legge, Chicago: Joseph II. Defroes,
Chicago; John S. Lawrence, Boston;
z. M. Herr, Pittsburgh: Roy d.
Chaplin. Detroit: John ]. Raskob;
Wilmington; Peter w. GoebeI. Kan
sas City; Thomas d. McAdam.,
Richmond; John Sherwin. Cleveland,
and George Edward Smith, New
York
The conference adjourned after
naming the committee. The COM
mittee met Immediately after its
appointment to draw up the perma-
nent organization.
Underwriting of the 100000. 900
necessary to launch the corpora
ton was subscribed at today's ses-
sion of the conference in about FIVE
minutes.
Newcomer Presents Report.
The report of the resolutions
committee, presented by Waldo
Newcomer, Baltimore, declared the
conference recognized the neces-
sity Of meeting the present critical
situation with respect to domestic
and foreign trade, especially the ex-
port OF agricultural products, raw
materials and manufactured goods,
so urgently needed abroad"
Continuing the report said:
The foreign trade financing
plan. as approved by the American
Bankers Association. will serve the
prosperity of the United States
by permanently Strengthening the
country's trade position.
orelgn buyers require longer
credits than can be supplied under
our present system and are prepared
to furnish adequate collateral"
The committee declared that the
organization would result in broad
ening the export market, relieving
the country OF surplus stocks of all
Kinds, which will result in stabil-
ized prices "and will have a speciaI
tendency to encourage production.
thereby insuring labor of steady oc-
cupation."
The report as adopted, stipulated
that the extension Of credits should
DC CoHnned 10 countries where there
is stable government and where
there Is an assurance of integrity
Of purpose"
The operations of the corporation
also should be confined. according to
the report. Ito financing for the
benefit of future foreign trade"
The ommittee, believing the pro-
ject viii mean so much to the coun-
try as a WHOLE" urged the financial
and practical cooperation of all
members Of agricultural. manufac-
turing. financial and labor Interests.
Frank /. Kent of the Bankers
Trust Company OF New York, ad-
dressed the conferences, declaring
that the condition OF the foreign ex-
change rate was at the bottom of
the trouble.
Richard Hawes, of st. Louis, de-
clared the proposed corporation
should have the backing of organ.
Izeu labor throughout the country.
argentina Man Retain