South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-12-12
LAUNCH BILLION
DOLLAR TRADE
COMP ANY TODAY
Hoover Points Out
Foreign Needs
BY ARTHUR NJ EVANS.

By ARTHUR VI. IN AN
TT is vital 10 every workman m
The United States that Europe sinai
recover her exchange her produc-
tion; shall recover her standard or
living or we shall be dragged down
20 European standards.
Herbert Hoover hammered this
home yesterday before gathorirg
of bankers. farmers. manufacturer.
and general business interests which
met AT the Congress hotel TO con
slider the formation OF a 100000
600 corporation with a potential ca-
pacity of $1,000. 600 600 for duanc-
ing American foreign trade
II is expected 10 be organized to-
DAY with view of beginning opera
tions ON New Years or soon there
after. Gossip last night was that
IT'S head may be John McTugh. vice
president of the Mechanics and
Metals National bank. New York
Urge Big Foreign Investments
The burden OF the procession of
addresses which filled yesterdays
sessions was that since America has
become the great creditor nation
since the war started the only way
to 1--we up 70 the part is 20 inves,
q large part OF the surplus in pro
dUctive enterprises abroad. Rave
he world asking for us. IN other
words.
Speaker after speaker pointed ont
that only through the formation of
long time credits i'm this fashion cam
Americas surplus production be
successfully sent 60 markets over
seas Since the armistice the float
ing debt" Of Europe 10 AmeriCa
from trade balances has grown 10
between s3.5OO.OOO. coo and $4,000
coo. 900 This floating credit. it was
maintained. has been a prime factor
in precipitatinE the credit strinecncy
i'm the United States and a new
basis of financing is necessary
T. y. Hurley an Optimist
The great majority of the speak
ors were optimistic. but toward the
end a few speeches had a. lugubri-
GUS tone. which Jed Edward ".
Hurley. former president OF the
Emergency Fleet corporation, TO Ie-
"a little sunshine On again
I'm am optimIzt." he said. -G.t
the plan started. then perfect 10 as
necessary. Here's the first sub
-crjption-rhe Illinois 2lanutactur-
ers' association authorizes me 90
say it viii underwrite $500. 600 OF
the capital aud if necessary IL VIII
take a million dollars worth We.E.
been talking of foreign trade in the
Mississippi valley for j. years and
,his is our opportunity
Hoover sees Vast PossiEilitic~.
IIoover's exposition was the main
event oI tNe day eff successful
he said this VIII have been th,
most mementous economic confer
ence since the armistico.
we must face the issue that the
economic ills We suffer in a large
degree arise from various eConomie
circles that can be broken in ono
way only. that is by the establish
ment OF credits abroad. not the
dangerou. short time credits iu
which we have already become
overextended. but the long time in
vestment in reproductive enterprise.
You have great problem. for
our farmers today are suffering
great losses and our worEmen great
unemployment. And tins is due Don
considerable degree 10 the stagna-
ton i'm orders for our export SUR
plus.
ITO ~ there il only one remedy.
and that is BY the systematic per-
manent investment Of our surplus
production in reproductive works
abroad. We thus reduce the return
that we must receive 20 "a basis o'
interest and profit"
Gives the Farmers Side
r. r. Howard. head OF the Amer
lean Farm Bureau federation gave
the agricultural angle.
Prosperity viii not be ir ful
swing again" he said. until the
buying power Of the farmer is re-
stored. Last July I paid Sl.s5 for
corn 10 raise pigs II 7 tried 70 sell
the corn ] raised las, summer T
couldn't get over 35 cents "a busheL
Half the farms are in the hands OF
tenants They produced the crop
Al terridc expense. II the farmers
had 70 Iiquidate their debts and sell
their stocks today, one-foUrth the
farmers of the country would So
into bankruptcy.