The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1920-01-04
ADVOCATES
WORLD MARKET FOR
WORLD SECURITIES
Credit From Banks, Indus
trial Sources and Invest
ment Markets Only
Forms Now Available
BY Assce,stsd Prsss

FfT@~N-NfN~
New York, January establishment
Of an International public market for in
ternational securities as the most normal
and expeditions means of providing the
war-stricken. countries of Europe with
long-terIn credits, was recommended to-
night by Eugene Meyer, Jr., managing
director of the war finance corporation,
in an address before the Association oil
Foreign Press Correspondents.
Assuming" he asserted, 'as seems clear
from the annual report of the secretary OF
the treasury, that credit from the United
statas government is no longer desiraDie
or obtainable except in cases OF pure re-
lief. there are three forms of credit LETT
from America: Credit from banks, credits
from industrial and commercial sources,
and credits optainable from the invess-
ment market in this country
Bank credit is short-term credit anu
totally inadequate to meet existing dill
culties, he explained, although the Edge
bill, recently passed by Congress, IS de-
signed to facilitate the creation of long
term credits of a kind appropriate for for
eign trade --nder present circumstances
Commercial credits also are being ar
ranged IN considerable amounts, he said,
some of the industrial companies applying
for and getting their funds from the
War tjnsnce corporation. Reconstruction
loans already arranged for, he said, to-
tailed SIS 00o,0 GOO, divided equally between
purchases for agricultural machinery,
locomotives and electrical machinery
MARKET CREDITS BEST
Credits obtainable In the investment
market' Ilr Meyer continued, should
be the n.yt important source of assist
ance- if 1t can be enlisted on behalf OF
the publication on larger scale. A num-
Der of loans payable in dollars have been
already issued in this country, and this is
one good method by which the American
investor is helping. But one method is
not sufficient and for some time l have
been advocating the opening of our pup
lie markets, under proper safeguards, NOT
only to those dollar loans, but to the IN
ternal oans of foreign countries
an years past, when the United states
needed foreign capital. Europe bought our
American dollar securities and it was ohiy
as an exception that the American Dor
rover was called upon to issue his oniiga-
tjons in foreign currencies. American m
vestors are accustomed to certificates that
are engraved and certified by re-
sponsible transfer agents for purposes OF
protection and there is no reason why
thew should not get this protection ~
American bankers and trust companies
issuing local certificates which represent
the deposit of foreign certificates.
ANY dealer in International securities
curities in the open markets of Europe
and at moderate charge to have ms
European certificates exchanged Tor an
American one which would be good LOT
da1;verv in our markets. The results would
be: Furnishing through the investment
market large aggregate amounts of funus
for financing our trade with hurope,a,
countries through the medium OF tn+
the American investment market; ma a.
terjaI broadening and consequent staoiii-
cation Of the exchange market; neipnns
the European markets for their lnternl-
tionalz loans because the European m
yestors would have the advantage OF an
International market rather than ma
tional one for their own issues; maiin =
~ internal loans of foreign countries
available as collateral for securing shorter
or longer accommodations from various
sources in America. including the Wal
Finance corporation.
DR.. Marcel Knecht was reelected presl-
dent of the association at a BUSINESS
meeting preceding the dinner.