The New York herald., 1921-01-31
EDGE LAW COMPANY
STOCK PUT ON SALE
Foreign Trade Financing Cor
poration Campaign On
To-day.

The countrywide campaign for the
sale Of the 500. 200. 900 capital stock of
the Foreign Trade Financing Corpora
ton will begin to-day. The new cor
poration. the presidency OF which has
been rendered to w. p. G. Harding, Gov
ernor OF the Federal Reserve Board. IL
tho first big step backed by the busi-
country to extend long term credits to
foreign buyers of American goods and
thus to break the threatened paralysis Of
our international trade
The prospectus giving the definite
plans of the committee on organiza-
ton has been sent to the 10000 banks
In the country and will be distributed
this week to thousands OF manufacturers
and producers 1t outlines In detail the
organization purposes and the method OF
operation of the new corporation.
This prospectus details the method by
which one Of the most pressing problems
confronting American business will be
handled Through the organization OF
this corporation means Of extending at
| least 81, 900, 100000 in long term credits
to foreign customers Of America will be
provided.
Subscriptions for stock Of the corpo-
ration will be received at the rate of $105
share. There will be no promotion
stock or any underwriting concessions,
nor will any commission be paid for the
sale Of stock. A payment Of s25 on each
share Of stock subscribed for Will be
called In accordance with the provisions
Of the Edge act when the corporation Is
ready to commence business.
In regard to the functions Of the COR
poration the prospectus states as fol-
lows:
IAN Edge act corporation may, under
the law, extend long and short term
Iscredits. invest In securities, purchase
bills Of exchange. engage in foreign
banking and in every lawful way aid In
financing foreign trade. 1t may likewise.
with the approval of the Federal Re-
serve Board, issue and sell 10 the invest
ing public It's own notes and debentures
to an aggregate amount Of ten times its
paid UP capital and surplus. 1t may not
engage In the general business OF buying
or selling goods or commodities in the
United States, nor engage In domestic
banking except such as In the Judgment
of the Federal Reserve Board may be in
cidental to its international or foreign
business.
1t Is planned to distribute the de-
bentures Of the corporation among in
vestors of all classes throughout the
United States and elsewhere II deemed
desirable. The issues will be designed
to promote thrift and to appeal to small
as well rs large investors, so as to en-
able all our people to share in the
benefit of nationwide institution for
furthering our foreign trade.
"The selling and distributing ability
Of the banks and institutions which be-
come stockholders Of the corporation
will be utilized. on basis of adequate
remuneration, In the sale Of the de-
bentures. In like manner agricultural,
industrial and commercial interests
which invest in the stock Of the corpora
ton may be availed of to promote the
sale Of its debentures."
For the purpose of obtaining informa-
ton on the foreign securities which the
corporation proposes to buy or accept as
collateral. and for the general transac-
tion of its business. the corporation vii,
probably. according to the prospectus,
establish agencies in foreign countries
The corporation Is expected to establish
branches in different parts of the United
States.