Evening star., 1920-04-04
u. S. FINANCING FOREIGN TRADE

Ono year ago Congress. by un-
precedented action, authorized the
| use. OF a thousand
Foreign Trade million dollars of fed
| eral money by the
| Ampetus. War Finance Cor
poration to assist foreign trade
through loans to American exporters
and American bankers. who finance
them. This sum equals the nations
entire debt before the war.
That action by Congress indicated
to the country the Importance at
tached to giving foreign trade a
proper impetus during the recon-
struction and read1ustment period.
because foreign trade has come dur
| Ing the war to be closely entwined
\ with our politics. our finance. our in
dustry and commerce. our railroad
! and marine transportation and in
| surance. 1t has Influenced our labor
and made big changes in our educa-
tional system and social conditions
generally.
More recently Congress gave fresh
evidence Of the new attitude toward
| age Of the Edge export trade law.
which is designed to create long
term banking machinery which should
develop into the permanent agencies
for financing foreign trade.
How has the new order worked?
What advantage has really been
gained under this unprecedented fed
eral aid? The answer is given by
| Eugene Meyer, jr.. managing di-
| rector Of the War Finance Corpora
tion. who presented the needs Of
American industry to the ways and
means committee of the House and
the finance committee of the Senate,
and under whose direction the new
| law has been put in operation.
| Mr.. Meyer finds that some Of the
adapted themselves to the new con-
dittons and granted extensive long
term credits to foreign purchasers on
| scale hitherto outside of their ex-
perience. But what has helped to
stabilize conditions most of all is
| the restoration of many of the normal
trade channels that have been divert
ed or closed during the war
The situation was embarrassed by
the natural jealousy in Europe of
Americas financial position. Europe
| had financed the world. including
America. and contemplated with re-
luctance the steps proposed by the
United states to help them. Europe
was fearful that the financial center
OF the world might be shifted from
| Europe to the United States
X *
The most helpful and stimulating
work. however, has been in encour-
aging the forma-
Edge Law tion of Edge law
Corro-.+;.,, corporations under
Board. and in helping wherever bank
ers propose to organize under state
! laws for the financing of foreign
trade.
With improving conditions in Eu-
rope the immediate outlook in this
country. the War Finance Corpora
tion finds after careful survey, is
one Of diminishing exports of food
and Of increasing exports to European
countries Of those raw materials
needed for the reconstruction of in
dustry. for manufacturing goods for
| their home consumption and for their
re-expof. Chemicals. cotton. copper
and many forms Of manufactured
goods will be in great demand.
The resumption by European coun-
tries of trade with Germany, Poland
and Czechoslovakia is under way.
The economic necessity of resuminE
trade with Russia at the earliest pos
sible moment is now thoroughly un-
derstood. The situation in Germany
is expected to right itself as soon as
indemnities have been decided and
the German people can feel that they
have a stake in the future.
The War Finance Corporation has
under consideration important plans
| which Director Meyer believes will
result in a continuation Of export Of
supplies to Europe. and will bring
about within the next few months q
great improvement OF commercial
and industrial conditions in Europe.
Stress is being laid upon the neces-
sity for inland financial and CONNER
cial centers to realize that foreign
commerce and banking must not 10
cate exclusively along the seaboard
but that the foreign trade develop
ment must extend across this entire
country, and work inland from both
<,o OF