The Birmingham age-herald., 1920-10-26
Daily Financial Gossip
By HOLLAND

1 sciiie systematic and Incorporated man
 ner, backed by financial strength. aid
 Europe in regaining her feet. He pro- posed the organization of a great cor
 poration with sufficient capital whose | sole purpose would be furnishing aid
 to Europe chiefly in the form of fa- ciliating our export trade He was sure that this corporation could is- sue debentures which would be readily ! absorbed by the American people, thereby obtaining the needed funds which would make it possible to grant credit to would-be customers in other countries. The administration at Washington, before which Mir Davison put this plan. because he regards 1t
 as essential that it receive the moral support of the government, was not in- terested The reason which was given | for this lack of interest was the ab- sence of President Wilson in Europe, and his exclusive occupation with the drafting of the treaty and the covenant of the League of Nations,
 | FINANCING FOREIGN TRADE Now when apparently 1t is not neces- sary to secure recognition by the gov ernment, the American Bankers Asso- citation looks with favor upon the prop osition to create a new instrument by means of which a bridge of credit may be built over which trade with other lands can be carried and maintained as long as there Is any necessity for it.
 Possibly this is the most important mmendation associated with the | ecent meeting of the American Bank CTS Association. Something must be done if this country is to take ad- vantage of it's present opportunities for 1 Increasing trade. Every competent man knows that upon the maintain ance and increase of our foreign trade no small part of our prosperity as a nation depends. We have. for instance, excellent opportunities to increase it l in the near east but lacking financial facilities, we are permitting Great Britain to capture that very rich field. James A. Farrell, who is President Of ~the United States Steel Corpora 1 ton and one of the ablest of all Ameri- cans who has within the past twenty years cultivated our foreign trade, sai recently that at least 20 per cent of our entire industrial output should be marketed in foreign lands if American industry is to be prosperous.
 Apparently the technical manner in which the proposed foreign trade coz pcration would facilitate trade is siml- | lar to the method which was suggestsi l I by MT Davison year and a half ago. l A citizen of any other country, or d | C rpOratlOn anAlOuS to puy machinery or other maerial in the United States would make application to this corpora I ton for credit. It the applications were regarded as justified by the character ard standing of the applicant, then the corporation would advance the credit and being in this way fortified the ap- 1 plicant would go into the American | market and buy those things of which | he stood in need and make immediate rayment for them and ultimately re- deem his credit at the foreign trade | corporation institution, because hav- l ing marketed his own products. he W ould be in funds with which to take
 up the indebtedness.
 l The proposition from one point oi view is excellent proof that our owr men of finance. our bankers and in- dustrial leaders are not sleeping but are awake to the necessity of taking 1 such steps as will enable us to com : pete, especially with Great Britain, and
 1 at the same time aid other nations
 to our own benefit as well.