Republican farmer., 1920-04-23

worlds great needs and high prices. our commercial banks can not relieve the manufacturer of this burden II our foreign business is to continue II must be financed by means of capital and not credit, and this capital, whether 1t be for a short or longer period, must be obtained from the in- vestors of the country. This calls for the development of a new kind of banking organization, one that shall obtain it's working capital from investors and which shall be in pos ition to extend not merely credit but the loan of capital in aid of the ii nancing of our foreign trade
 Congress has provided the machin- cry for meeting this situation in the passage of the Edge Bill which per- nnits the organization of international banks with power to deal in long term foreign credits, to guarantee Or en- dorse notes and bills based on for eign commercial transactions, and with the right to purchase foreign bills, notes and obligations from American exporters, and to issue against such obligations and secur~ ities their own acceptances, notes, debentures and other obligations The operations of such banking asso- citations are to be under the super vision of the Federal Reserve Board, and are to be guided by regulations prescribed by the Board Such se- cuFities as are to be issued by banks organized under the provisions of the Edge Bill are to be issued in accord ance with regulations which have been promulgated by the Federal Reserve Board Inasmuch as these banking associations are under Fed l eral charter, and under the direct control and supervision of the Fed 1 eral Reserve Board, it may be prop. er1y assumed that they will be de- veloped along sound and economic l banking lines, and that any obliga- | tions issued by them will have q l standing and character, which should appeal to the conservative investor. 1 Believing that the terms of ths Edge Bill are sufficiently compEehen-
 sive to permit the organization of in ternaional banks which will be Of 1 incalculable value in developing the | foreign commerce of the United 1 States, we have applied for a charter for such a bank The Federal Re- l serve Board, after due consid erarIon, l has approved this application and
 issued a preliminary permit for or 1 ganization under the name of the
 First Federal Foreign Banking Asso-
 ciation-
 The initial capital of the bank will
 be s2,100,0 ,000. evidenced by 10000
 shares of a par value of s10O, per
 share, and 1000 founders or man
 agers' participation shares of the 1 same par value. These latter shares
 are to be entitled to receive 15 per l cent of the net earnings, and can be held only by the founders, directors l and officers of the company The
 purpose of these shares is to enable
 the organization to secure men of ex- 1 ceptional talent and experience for i the work of managing this enterprise
 and to obtain the close cooperation
 of important agencies abroad The
 stock of the First Federal Foreign Banking Association, including the
 founders or managers shares, has
 all been underwritten at s105 per I share.
 Inasmuch as the purpose of the
 bank is to build up an expert organi-
 zation for the studying of the foreign 1 credit problems. of the American ] n1anufa cturer, it has been decided
 to limit it's stockholders to banks,
 manufacturers and others interested | in foreign trade, and to give to man. l ufacturers participating as stock l holders the fist call on the facilities ] of the bank. The capital of the bank
 will be increased as rapidly as needed
 to meet the requirements Of present stockholders, and to take in other
 groups of manufacturers.
 The following banks and financial
 houses, on behalf of manufacturers
 in their respective localities, are asso- ciated in the organization on the