The Bridgeport times and evening farmer., 1920-04-19
BRING FOREIGN
 MARKETS CLOSE
 TO FACTORIES
tContinued From Page one.)

manufacturers who have, over a per iod of years, built up substantial markets in Europe at great expense and as 2. result of patient effort are now threatened with the loss of these markets. While at the moment, due 4o inc enormous demands of our do- Xnestic markets, this may not seem serious matter, nevertheless in view of sAae increase in the manufacturing ea- yacfty of this country, brought abouS bv the war, the time is not far distant when foreign markets for our surplus capacity will be a necessity if the in- dustrial prosperity of the United States is to be maintained.
 Many American manufacturers haVe customers in Europe with whom they have dealt for years, and whose standing and, responsibility are well known to them. These customers are today unable to pay for American yoods largely because of excessive cost due to depreciation in European cur reneies. Many of them are willing to give notes extending over a short period of time in the belief that with the general betterTnent Of conditions the increase in industrial productivity, and the revival of their export trade, European exchange will improve within a reasonable time. In ordet to continue doing business the Amer fca1 rnaufa cturer must either absorp the exchange loss, increase his priSes to cover it, or extend credits.
 The United States has advanced ten billion dollars to Europe, and our government has announced policy against further advances. The pres ent high prices have affected the cost of doing business, and the banks are called upon to furnish increasingly larger credits for the legitimate needs of the domestic business of this coun- try, Our commercial banks are de- posit banks and sound banking pr1n- ciples require that these banks do not tie up their funds in long term cred it's, but that their investments shall be in easily liquidated paper of short maturity.
 While the manufacturer may De able to lock up a certain amount or his capital in extending credits to old and favored customers abroad, never tbeless he is in no position to carry an increasing volume of such credits for an indefinite period Because Of the scarcity of credit, due to tho worlds great needs and high prices o11r commercial banks can not relieve the manufacturer of this burden. II our foreign business is to continue II must be financed by means of caplta' and not credit, and this capital, whether it be for q short or longer period, must be obtained from the in- vestors of the country This calls for the development Of new kind of banking organization, one that shall obtain it's working capital from investors and which shall be in a pos ition to extend not merely credit but Ir ai1 of hn nancing of our foreign trade.
 Congress has provided the machin- cry for meeting this situation in the passage of the Edge Bill which per- 1rits the organiza ton 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 a gainst such obligations and secur- Ities their own acceptances, notes, debentures and other obligations. The operations of such banking asso- Ciations 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- curities as are to be issued by banks orga anized 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 eral charter, and under the direct control and supervision Of the Fed eral Reserve Board, it may be prop erly assumed that they will be de- veloped along sound and economic banking lines. and that any obIiga- tions issued by them will have q standing and character which should appeal to the conservative investor.
 Believing that the terms of tho Edge Bill are sufficiently comprehen- sive to permit the organiza ton of in ternationa1 banks which will be of incalculable value in developing the foreign commerce of the United States, we have applied for a charter for such a bank The Federal Re- serve Board after due consideration, has approved this application and issued a preliminary permit for or sanitation under the name of the First Federal Foreign Banking Asso- ciation-
 The initial capital of the bank will be $2,10O,O00, evidenced by 2O,oOe sHittiL CS OI d pcdI NGIlie O4 SIOV Der share, and 1000 founders or man. aseI's' participation shares of the same par value These latter shares are to be entitled to receive 15 per cent of the net earnings, and can be held. only by the founders, directors and officers of the company. The purpose of these shares is to enable the organization to secure men of ex- ceptiona1 talent and experience for the work of managing this enterprise and to obtain the close cooperation of important agencies abroad The stock of the First Federal Foreigr Banking Association. including the founders or managers shares, has all been underwrftten at $105 De, share.
 Inasmuch as the purpose of the bank is to build up an expert organi zation for the studying of tf2e forefgr credit problems of the American manufactures. it has been decide lee to limit it's stockholders to banks
 manufacturers and others interested in. foreign trade. and to give to man ufacturers participating as stock holders the first cali on the facilities of the bank. The capital of the banl