Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-04-30
COTTON WOULD BE
HELPED BY NEW PLAN
Continued From Page ~

urgea that o the United statea in
der to encourage exports, should pro-
vide an agency for lnsuring foreign
Iloss through war or revolution. He
| thinks the government should not
| write insurance in excess of Is per
cent of the actual cost of the prod
uct exported.
| If, as he pointed out, an exporter
sells to an European buyer for ST.
| 100000 cotton or wheat or corn that
cost him only 100000, then the gov
eminent should not write insurance
| against this credit in excess of $780,
| 900.
Does Not "Cover" Usual Losses
The suggested political insur-
ance" would not indemnify an ex-
porter, or banker against loss from
any other cause than war or reVolu-
ton. In a word, if a banker or ex-
porter extended a million dollars in
credit to a foreign buyer, who should
| subsequently, become insolvent or
for any other reason, except war or
exporter, and not the government,
would take the loss.
Political Insurance." Mr.. McFad-
den explained, sis nothing more nor
less. than insurance against political
upheavals, and the idea of having
the government issue such insurance
| is predicated upon the realization
that in the event of political up
| heaval only an agency as powerful
as the United States would have a
1t is not the idea of Mr. Nc
Fadden or any other person favor
able to political insurance" that the
government should engage perman-
emily in the enterprise. With the
restoration of permanent peace the
/
| cease, and in the meantime Ameri-
can exporters will have re-establish-
ed their business relations with Eu-
rope on satisfactory and enduring
basis.
Atlanta bankers who have studied
| the McFadden plan believe that it
offers a solution for the chief bust
ness evil of the day. The political
unrest abroad in their opinion, is
| largely if not wholly responsible,
for the inability of American ex-
porters to move cotton and other
products of the farm to European
markets. The exporters, as Mr.. Nc
| Fadden pointed out, are familiar
with the. moral character and fl
| nanc1al integrity of foreign mer-
chants and manufacturers who are
| clamor1ng for American cotton and
! Other products. A reasonable assur-
| ance that their credits would be in
| IDENTIFIED aaginst the possibility of
poIiClcal upheaValS would result inn
| medlately in the movement OF MIL
lions of bales Of cotton.
MORE
The suggested appeal to congress
tor the creation of an agency for the
issuance of political Insurance." is
not the only matter that will receive
the attention of the bankers and ex-
| porters at their joint conference Sat
| urday. Other ways and means for re-
| lleving conditions will be advanced
AS a result of the original Joint
conference in New Orleans three
weeks ago, Anderson, Clayton & Co.,
! cotton exporters, already have ship
| ped 10000 bales of cotton to Euro
| pean markets.
| The Federal International Banking
company, capitalized at $7,000,0OO, is
| prepared to extend long-term credits
on foreign exports. and the war fl
| nance corporation, with an abundance
of capital furnished by the federal
government. is cooperating with the
| banking company. These two agencies
are working together to relieve banks
! throughout the south, which have
| been rendered almost dormant in the
! performance of their usual functions
, because their surplus capital is tied
up on cotton loans, which cannot be
| liquidated until a foreign market is
created for the product