The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-11-14
REESE EXPLAINS
BANKING PLANS
Federal international Banking
Company win Finance
Foreign Exports.
HAS VALUABLE PURPOSE
viii Provide Machinery for
Keeping Wheels of Trade
Busy During Crisis.
ny Lucky Raldw In. J

"a ~
! Peoples National Banks 0f flHs clt4.
YESTERDAY announced the plan mn.i..f
which the Federal international nauk
ing Go. Is being Organized. The essaa.
pany Is t0 rs an organization e. pra.
vide 4 method rs which exBaels e
foreign countries may be- ilnancesi aal
y tlieNanc tiiHe permit Aneriran pre-
dueers aud exporters e. eei cash fas
their tApnrts. n Alr. HreSe eNpes~.sa
H. tiie orsanlxation wlll praslle llse
lever by Whirh the wlteess ~ lure -
TRADE can be Kept moving filrlns tlte
period NitCn forelen exchange i a
"a. lowest cbh.
tfie organization doe. n0t lnlena 4
handle loans nn anA one atlt.r 81
produce, hul un tl prudilee. - ih8l
every crop ant every article II inunn.
iaetlire eau rpsrh Hafhei rhr Wiiue
purpose uf tne ul2 .nix8tfUu j. 10 aia Il.
tain business prosperitt
There ha~ been some /, 4r eNnfe~~e
that finaacins foreign trsae 80 3. Is
permit other countries 40 obtain fats
material. Would reapl tH lhe ,lesrIsurni
- domestic manula iufers - iaelnsit.
tine rlfean foreign labor H. rasanets
win Nuerirau labor. such Is at III
purpose - lhe organization and ii A4tl.
mot work piil lhai Wah Mhaf II All
do Will BE- e. cause an aslNanss Ia seu.
rrai conditions tn fotpl~4 countries
aud h"id foreign labor ai ionie. thus
creaiinK both ioeal uarkel ga ,ar-
eiEn countries for produrts AMI ler IL.
bot.
ln other ssarti~. the Whole purpose
and a1ln ~ the ofssaizaiion i to ais
30 re-ostablisling normal conditions II
supply and demand ami save llie Geo.
nomic structure st the s,urti from
crashing
lhe need anal purpose of tie ufganl
zaiion r. set forth IA tie foilos Ina
words
Tho nations whlch IN the pa.l haAs
heen tle most liberal buyers af hie
south principal AGRICULTURAL and alsn-
uiaciurcd products. are al present
such financial condition - lhe re..,ll
u ihe war that their purchasing pa,.
er haf been greatly cuFtailea.
The enormous depreciation u tils
value of their respective rurrenege@ =.
compared with the American slall,s
has become an added barrier to TIA
usual fiuw 0f seasonal exports 10 giae~t,
countries. with the result That ID ths
moment we appear % haNe an over.
supply of cotton, rice. sugar. tobacco.
lumber anu nearly every other conn
modify We produce Ia tie south.
Tie demand for these commodities
Il practically just a. great a. ever,
but for tne reasons already mentioned
these nations cannot afford 81 buy on
the customary terms. though they
would IN many cases be glad % hay
our products II we could extend them
The proper credit facilities, l. O.. give
them six Or ninc months 60 Pay Tor
then instead of tie short terms which
have been customary heretofore.
'ihe American exporter. on sl4e 9th.
er hand. linds II practically impossible
20 make sales on these long terms be-
cause our present financial machinery
does not provide adequate facilities 10
make such credits liquid and thus rer-
Nit him to keep on turning hts capitol
over
the average commercial bank can
not be expected 10 Oil. up is port-
folio with such long time paper. even
though Il may be perfecily safe. be-
cause no bin running over - DAYS i.
eligible for use la the Federal re-
serve Bank, II issued by q state or ma
tl0nal bank. an acceptance issued by
= bank chartered under the EDGE Act
will be eligible If Il runs for siX
months or moro.l
THE company will start business a.
s0On as SIX million dollars (s600o00)
has been subscribed, and no subscrlp-
tons shall become binding uniess this
minimum capitalization II assured
The organizers reserve the right. how
ever, 30 incorporate for , larger amount
II the total subscriptions are fouad
10 exceed this amount
NO honorary positions viii be ere
ated, and each ofleer elected viii ba
10 devote all Of his time and
energies 10 the institution The presi-
DENT who VIII be elected & member
of the board, viii be- a man of ex-
perlence IN this particular branch Of
banking and q special committee has
been charged with the duty of nndlng
he proper man 10 be recommended ~
the board Of directors at their flrst
meeting.
"An executive committee o. I've 81
experienced bankers. 0f which lhs