Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-11-11
BANKERS PREPARE
TO TAKE STOCK IN
COTTON CONCERN

Continued from Page IL
stock, as stated, will be $4,000. 600.
of which $6,00O,00O will be paid in. I'm
less this entire fund is subscribed
and in sight by December 10, next,
the project will be abandoned, but
this is highly improbable, since bank
ers, business men and exporters ia
m1liar with the objects of the insti-
tuition are certain the subscriptions
will be forthcoming
To Help Exports
The object of the foreign finance
corporation is to stimulate and en-
courage the expectation and distribu-
ton in foreign markets, through sat-
products of the south-manufactu red
and agricultural, with especial at
tention to cotton, rice, sugar and
lumber.
The corporation is the second of
the sort to be organized under the
provisions of the Edge act, and it's
pa1d-in capital of $6,000,000 will eX-
coed by three times the capital of a
similar foreign trade bank recently
organized and now in satisfactory
operation in New York.
Foreign finance corporations, such
as the institution organized at New
Orleans, will supplement the federal
cilitating credits and thus encour-
aging business By special provision
in the federal preserve act national
banks are authorized to subscribe
to the capital stock of such insti-
buttons, and the institutions. in turn,
subject to the supervision of the fed
eral reserve board at Washington,
may establish branch banks in for
eign countries to promote better
trade relations and facilitate credit
arrangements.
Under the organization plan adopt
ed at New Orleans for the Federal
Foreign Finance corporation, it is
estimated that if the banks of the
southern states will subscribe three
per cent of their capital and surplus
to the stock of the finance corpo-
ration the capital of $12O00,000 will
only fifty per cent, or 100000, will
be paid in.
The state and national banks of
Georgia, of which there were 811,
according to the record Of December,
1919. have an ,ggregate capital and
in round numbers. Of this sum the
banks amounts to approximately
s19, 900 900.
Results Expected Here
According to the organiz SI.n
will be requested to subscribe three
per cent of their capital and surplus
to the stock of the Federal Foreign
Finance corporation. Thus, if all of
the Atlanta banks Sign on the dot
ted line" as is Anticipated and seems
the capital stock Of the foreign
trade bank will be held in Atlanta.
Assuming that every bank in Geor-
gia participates in the foreign fl
nance corporation, 100000 of the
capital stock of the Federal ForeigD
of the whole, will be provided in
Georgia.
But the organization committee, in
it's New Orleans meeting, in working
out the details of the giant banking
corporation, was governed by spirit
Of conservatism, and fixed the initial
capital of the foreign finance cor
poration at a figure which, it is con-
f1dently believed, will be subscribed
in the allotted time, even though
some of the banks in the territory
may be tardy in recognizing its i'm
portance to the southern section and
its immediate value to them as a rev.
enue producing. agency.
1t is obvious. however, from the
scope and character of the corpora
ton, that the growth and expansion
of it's activities may require add1-
tional capital, and the organizers
feel that it's demonstrated worth will
invite not only tardy bankers, but ex-
porters and other business interests
to invest in the corporation.
The conference of Atlanta bankers
at which the Federal Foreign Finance
corporation was launched was one of
the most representative ever held in
Atlanta. The speeches of Senator
Hoke Smith and Messrs. Maddox, Ott-
ley, Lane, Wellborn and McCord were
heard with the deepest interest and
evident approval.
Estimate Endorsed
After hearing the detailed objects and
possibilities of the corporation illumi-
mated by Messrs. Ottley and Lane,
the assembled bankers nodded I'M
questioned assent to Senator Smiths
declaration that the institution. in
value to the south, was second only
in Importance to the federal reserve
banking system and the establish
ment of a regional bank in the cot
ton belt.
At the conference Tuesday after
noon, the formal report of the COM
mittee of organization, as presented
to the New Orleans meeting, was not
read, but it's details were discussed
by Messrs. Maddox, Ottley and Lane,
who also dwelt upon the immediate
Importance of the foreign finance cor
poration and it's potentialities for
improving permanently business con-
ditionS in the south.
Mr. Maddox discussed the origin
of the corporation at the recent con-
vention of the American Bankers as
ISOLATION at Washington. He dis
claimed having originated the plan
himself, and told how, at a confer
ence of southern bankers the sug-
gestion of such an organization met
with general approval. Following a
special committee was appointed to
investigate the plan and he was
chairman of this committee, and on
the strength of the committees re-
port he called the New Orleans meet
ing. which resulted in the organiza-
ton Of the corporation.
Mr.. Ottley, who served as a men,
Der of the organization committee at
the New Orleans convention, spoke
of the Importance of the corporation,
and recounted how it's operation
would innure to the material growth
and development of the south. He
emphasized the Importance of expedi-
tious action, and urged that it is