Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-19
FEDERAL AID NOT
TO Be PERMANENT
Guaranty Trust Company's
Views on Foreign Finance
Corporation and Relief.

That congressional action on any
proposals for governmental aid in
the foreign trade situation need In
no way interrupt or change plans
for the development Of the 800, ooo.o 900
foreign financing corporation to be
established under the Edge law, is
the opinion Of the Guaranty Trust
Company Of New York expressed in
American Goods and Foreign Mar
kets, Its semi-month1y survey OF in
transitional trade.
These proposals for government
aid are for relief of a temporary
nature, and would be applied to q
situation Of Immediate stringency.
The fundamental purpose OF the
proposed Edge law financing corpora
ton, on the other hand, as a. perma-
nent institution organized to point
the way in the development OF our
foreign trade, has been constantly
emphasized. The survey says. fur
Their:
country the 6eiief. shared 81 repre-
sentatfvss Of agricultural and indus
trial sections alike. that relief for
our farmers and manufacturing pro-
dncers from the present pPtrthEent
from some action BY ths sSssrhmsnts
This belief has developed even In
quarters strongly opposed ordinarily
to any attempt on the part OF the
government to participate N domes'
tic or foreign banking. It's support
ers point out that private -enterprise
cannot Immediately handle the DIM
culties involved. and that. until it can
or until the conditions are eaSeo.
there must be government aid.
Must Work Deliberately. =
It IL admittedly tho idea Of those In
tsregtsd in the proposed financing cor
porAtion that such an organization must
work deliberately and sunsly. 70 Lay
fffnfy and permanently . foundation on
which its usefulness win depend. Thus
It will continue with undiminished pos
sibiltas.; irrespective of the decisions
which may be reached by Congress in
regard to. the present emergency!
Any attempt by the government per-
manently to take, over the financing op-
efations upon which our great and grow
ing foreign trade is dependent wound be
obviously unwise. The cost Of such a
venture must eventually fall on the
taxpayer.
Inc Of our foreign business be left to
our business and commercial organixa.
ton, operating under the broad general
laws of economies and supervised by
government agencies.
The worldwide scope OF the opera
ton of the new corporation ana III
nationwide power for appeal to invss.
resolutions, which were the outcome OF
he recent Chicago meeting. To make
interest in tho institution as general as
possible, the cooperation and aid Of
IAN members Of agricultural manufac,
turing. financing and labor interests
Win Be enlisted. 1t IL further expected
that the operations Of the corporation
will be confined to financing for the
benefit Of future foreign trade and
that the extension Of credit by the cor
poration win be "conflned 70 countries
where there u . stable government and
where there Is an assurance Of inteli-
gent purpose"
Tmportant Promise u Future.
The action Of last weeks Chicago
meeting Of representatives OF banks
and industry throughout the coun-
| try. In approving enthusiastically the
plan for the 3lo0.00o.o00 foreign
1 portant p SSnI to 4 The. future Of
American commerce that has been
given by any public or private inter-
ests since the armistice. An under
| writing fund has been subscribed to
cover the initial expense of launch
ing the corporation: a committee OF
| the meeting is at work on plans for
the actual and immediate realisation
Of the institutions. and its existence
ing, . reasonable hope Of the future
The meeting brought forth the first
offer Of . subscription to the stock
| Of the new corporation. when the H.
linois Manufacturerg Association, au.
thorized a subscription Of 100000 ia
the capital stock. to be increased to
81. 900, 900 II necessary. It is earnest.
| II 70 be hoped that the machinery OF
Organization which was so enthusi.
astically set In motion at tho meetine
may shape an institution which viii
receive the widespread support Of the
many interests which are to be bene.
dtsd by its operation.