New-York tribune., 1921-05-05
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Courage, Says
P.G.Harding
a.serve Board Head Tells
Foreign Trade Convention
Baslxs Are in Position TO
Help Thaw Out Credits


.rryEf.ANp, May <.--*The present
!. : 4ime for courage in the business
S..is Now ID the time to do things"
G. Harding. chairman of the
s.as,s1 Rsserve Ranking Board, made
nss ths KEYNOTE of his address at the
ss.snr - ~ session of she National For
- Trade Council convention to-day,
Tbree thousand delegates from all
-. q the United States are attend
= fhe convention. James A. Farrell,
~ n he united States Steel Corporation,
4 chsirnsn-
...sr:aa basis than We did year ago,
e. Hsyding said. I'VE are now enter
e - ,a.;;sn the last stage of the POSTWAR
a aas;os AS far as the hanking world
.nnrerued our worst problems Rre
ssst. The Federal Reserve Banks
= n an exceptionally strong rosision,
s;th So per cent gold reserves. This is
: higher percentage than at any time
snee 1918. The Federal Reserve
ssrks are now able to take part safely
( !. ! movement TO stimulate business,
si,h view to thawing out frozen
credits. s..
~son,ething should be done at once
:. stimulate business. When the ice
s..sn,t thaw out in time for the open
- 81 navigation, steps are taken TO
s s~s.f 10 the ice. The same thing
sasrt s.s he done to loosen frozen credits"
Tbe chief problem before the con-
4;on can be summed up in two
sentences. delegates say Here they
n Foreign trade fell off So per cent in
-.lns during 1929. How can it be
s,orrht back to its old level?
Frsd i. Kent, of the Bankers Trust
goupany of New York, emphasized
81 Importance OF foreign trade in an
,siress before the convention.
sFore;gn trade is necessary for the
,ngress Of the world MIR. Kent said.
aNo nation is self-sufficient. 1t is only
sy the interchange of products that
vorId development is possible. Prior
d The war the ordinary letter Of credit
ms sufficient for the purposes of carry
.ng on this trade, but developments since
shen have shown the need Of better
machinery. During the period Of fall
me prices buyers refused to accept
shipments. AS q result ports are
cIc9red with goods which cannot be
removed without great losses. Longer
credits are needed now to keep foreign
trade going.
Edge Act Offers Means
aThe way for this is provided by the
Edge sct. Under this foreign trade
snaneing corporations can be organ
rsd. These will not only provide for
.hese longer cerdits, but will also pre-
vent sharp fluctuations in the foreign
.rade market"
George R. Meyercord, president OF
me Illinois Manufacturers Association,
said that the formation of the foreign
trade financing corporation would aid
rrade. This association is being formed q
With capita lization Of s1g0, ,000, 600 to
nance foreign trade. IS
American manufacturers are being
offered profitable European business
svery day. but they have TO decline be-
csuSs this country lacks the foreign
trade system of Great Britain" said
Ar. Meyercord.
J. j. Donovan. lumber man, Belling-
BAN, Wash, also urged long time
credits for Europe
we nave the lumber to seil,n he
sasd. The world desires to buy. TIE
auyer il solvent, but has neither cash
aor goods available tor immediate pay
menf Banking machinery for long
Hme credits is necessary
Other speakers scheduled to address
ne convention include Senator Edge,
q New Jersey; Edward N. Hurley, for
mer chairman of the United States
shipping Board, and William Redfield
lofmer Secretary of Commerce.