The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-22
MAIL WORLD TRADE
CORPORATION CALL
Bankers and Business Men
VIII Meet in Chicago
December 10-11.
CAPITAL TO BE BILLION
Plan to Stimulate Foreign
Demand for U. S. Goods
by Long Loans.

Machinery Tor the organization OF the
s1o0,oO0,000 corporation for the flnan-
cling of foreign trade proposed at the
convention of the American Bankers AS
ISOLATION last month was set in motion
yesterday with the mailing OF a pros
pectus to every corner OF the country
for the consideration Of bankers and
business men. 1t Is proposed to estab-
lish the corpoNetion on or about January
1. The prospectus is issued by a spe-
cial committee named by John s. Drum,
president of the association. and calls
for meeting of representative bankers
and business men to be held in Chicago
December 10 and IL.
1t Is not intended that any one coun-
try will receive special consid Grafton
from the corporation, the prospectus
states. The object of the plan is TO en-
courage the foreign trade Of the United
States as a whole, and the plan as con-
templated would operate wherever such
trade exists.
"An immediate inauguration OF this
corporation" according to the pros
pectus. lis believed vital TO the interests
of the United States, in order that our
foreign trade may be adequately
financed and in order that our Industries
may be protected, so far as possible.
from an anxious future with attendant
elements of unemployment and unrest.
stagnation Exists Here.
EAphasis is laid on the fact that
stagnation has developed in this country
in the case of staple commodities UT emit
~ nee ded in other pa. IS OF the world.
1t is pointed out also that expo Is from
the United States 20 many countries over
a considerable period have not yet been
paid for by those countries, and that
future exports for an indefinite time can
not be paid for except over an extended
period.
I'm the case of countries where It Is
believed exchange may turn within Il
lew months, buying in the United States
has practically stopped" the prospectus
goes on to say, except whore arrange
ments could be made for postDoning pay
ment until exchange turns.
European countries in general are
being obliged to confine their purchases
here vigorously TO necessities Of the mo-
ment and are unable TO obtain sufficient
raw material TO restore their industries
Our export trade outside of Europe
which has been built UP during the last
several years covering South America,
South Africa, Australia and tho Ear
East. is beginning to back up and throw
goods manufactured for export into COM
petition with goods manufactured for
domestic consumption in the markets OF
the United States"
The prospectus indicates that banks.
business corporations and the public
generally viii be invited TO subscribe for
stock in the corporation. Subscriptions
win be received ut the rate OF sos a
share, providing 500 capital and SIS sur
plus for each share subscribed The
point is expressly made that there will
be no underwriting or promotion stock
Longer Loans Needed.
It Is argued that the advancement Of
foreign loans and of FUNDS to manufac-
turcrs by the banks have been carried
as far as conservation permits. and that
further credits, in order TO meet the-sit-
uation. must be Of longer time than
banks and industrial Institutions can
be asked TO carry.
With 500, 100000 capitai the corpora
tion proposed would be permitted by Law
to issue it's debentures against existing
securities owned by IL TO an amount
equal to $1,000, 000.0 900. According TO
the prospectus, debentures could I'M
doubtedly be distributed, secured by high
class foreign obligations of sufficiently
long time to enable the restoration Of
Industries in importing countries and
allow Of payment AZ maturity.
1t Is proposed that the directors OF the
corporation be elected by the stockhold-
crs in way that will provide for the
OF the entire country on
the board.
Among the committee Of arrangements
for the Chicago meeting are Charles ii.
Sabin. president of the Guaranty Trust {;
John McIugh, vice-president OF the Nc
chanics and Metals National Bank ;
Lewis t. Person chairman of the board
of the Irving National Bank; l. Is mt
vicc-pres.dent of the Bankers Trust, and
George u. Smith, president Of the Royal
Typewriter Company.