The Washington herald., 1921-02-16
PRIVATE INTEREST
ESSENTIAL TO U. 5.
FOREIGN TRADING
New Jersey Senator
Urges Separate Finan-
cling From Government.
U. S. LOANS COSTLY
Loans By American Citizens
Would Eliminate Fresh Bur-
dens Upon Taxpayers.

Declaring that the way to stimu-
late and foster Americas foreign
trade must be by financing II
through private initiative, not by
government aid. Senator Walter E.
Edge, Of New Jersey, yesterday ex-
pressed qualification at the progress
Of the Foreign Trade Financing
CORPORATION, the 800. 100000 con-
cern now being organized under the
provisions Of the legislation bear
ing his name.
There must be foreign trade in
large volume, in the opinion Of Sen
ator Edge. il this country is to pros
per. But to attempt by loans OF
government money to finance eI-
sort transactions is merely to load
fresh bnrdens upon the taxpayers.
The rational and sound way to go
about meeting this critical situa-
ton is for American citizens to loan
their funds as a private business
venture, such as the new corpora
tion Is.
Indorses New Step.
As an ardent advocate Of the
stimulation of worldwide trade for
the United States said Senator
Edge, land incidentally as the au-
thor Of the act under which the For
eign Trade Financing Corporation
Is being organized, am highly
gratified and interested to see that
there is being formed on a large and
comprehensive basis. the machinery
which will carry out the provisions
Of this measure to finance the for
eign trade of the country. The es-
tablishment of the corporation is of
wide significance to the United
States. It offers opportunities for
reviving and strengthening Ameri-
can commerce and giving to Euro
pean and other foreign countries
the raw materials and manufactured
articles they need. not by any act
If charity. or through American
government channels. but as a
straight business proposition. And
: Ru this applies as well to other
Corporations formed under this act.
Foreign Trade n Necessity.
Our foreign trade must be finsnC-
Red There is no question as to
fwhsther there shall be foreign trade
$There must be, both for the welfare
ptials and manufactures now collect
ing here far in excess of our ability
to use them and for the welfare Of
the rest of the world, which needs
Dur surplus. Our merchant marine,
half of it now lying tied up in our
harbors, must be used to carry our
goods to all the ports of the world
and bring back goods in return.
XNIu Ala nebt Payment
Furthermore, no matter how
much money or credit the United
states may lend 10 Europe, either
through private or government
channels. we are not going to en-
courage or stimulate foreign pur-
chasing if we impose an embargo
against imports from other lands.
n the American producer needs help,
don't let US hand him a pair Of brok-
en- crutches And IL must be re-
nnembered that our imports will help
nav for the goods we send abroad,
will help to restore foreign ex-
change to a reasonable basis, and
1 indirectly will help Europe to cur
tail its enormous Indebtedness to
the United States.
Export Finance Bill.
TT has been said when this gen.
.-aI subject has been under discus
~.ion on the floor Of the Senate that
the producers were not taking ad-
,.ntape of the export finance act
because only two or three corpora
lions had been organized under It.
tn. answer is that up to a very
few months ago producers and bust
ness men in general did not feel
the actual, pressing necessity OF
IooLin1 out for trade. We still were
IIvi1p in that fools paradise of
I.rge profts made during and ia
,,adiatelv following the war and
there was little inspiration Of ap-
narent necessity to provide invest
rent capital for such a purpose;
tba full pains Of readjustment and
5enation had not yet been felt. But
In the past few months. since con-
5itions have materially changed, or
5ers for goods have fallen on and
/ nrices to at least the producer, even
4 tboupb not always to the consumer,
nave shrunk materially. However
have frankly stated, this export
financing activity will not alone
Eolve the problem.
Urges wise Tariff.
., wise. carefully considered poll
low on the tariff, as it relates to eA-
,Crts and markets. may well go
,tde bv side with this credit sup
-+inT instrument. The policy,
tbourh. must be most carefully con-
,i5ered and from every possible an
- hurried legislation will harm
more than help. and just to pass a
sanhszard tariff bill" especially In
IIIrb an emergency and crisis, may
I've black eye to the real Ameri-
FAN tarir policy. and s it back far
90 than all the freStrade argu-
.,e1ts in the world ever could pos
.iblv accomplish.
Europe Must BE Considered.
"Eor one thing we must carefully
o,sider Just what retaliatory meas
res a hfgh-protective tariff at this
t,r,s NAV invite from most countries
.,hich already are buying our goods
- are disposed to buy them. We
-,ust consider whether the addition
u I1come we might receive from ar
.,,.reency tariff will compensate
Ibs American government, American
BUSINESS and the American people al
Iar1a for an inevitable falling of
- Innorts which ultimately mus
gaIIou We must consider whether
through this method, we can arti'
E,IaIIv raise the prices to the pro-
sncer and still find him a market
,hroad or even at home, even IL we
a. manage to keep his competitors
"a. ~ this country. We cannot con-