Evening star., 1921-04-05
B|G0RDERH RHE[DUP
. ON LACK OF CREDIT
Much Foreign Commerce Re.
tarded Pending Plans for
Financing.

NEW YORK, April (SpeclaI).-
Two million tons of exportable food
stuffs and fuel, representing a single
order to a certain New York corpora
, warehouses and freight cars pending
arrangements for financing the ship
ment to the foreign buyer. This in
dtcation of how the foreign commerce
of the United States Is being retarded
because Of a lack of credit extending
facilities was given today in a state
ment issued from thy offices of the
Foreign Trade Financing Corporation
to whose committee on organization
the affected New York exporter turned
in his dilemma.
The prospective purchaser is stable
foreign government which offers in
payment one-third of the amount
when the commodities are unloaded at
the port of discharge. and the other
two thirds in excheduer bills (gold)
at six months terms. reformable for
further periods of six months with
amortization Of 25 per cent.
Proper TERMS Awaited.
The purchaser desires 100000 tons
of wheat, 10000 tons of maize, 150.-
600 tons of -four. 100000 tons of rice.
40. 900 tons of sugar and 100000 tons
of coal for ships and industries. pro-
"ided the proper terms are given.
The export firm which has the mat
ter in hand reported to organizers of
the Foreign Trade Financing Corpora
ton that it had been assured that
organizations such as the rice millers.
composed of rice growers in the south,
as well as other organizations in the
west, would be more than glad to re-
ceive such orders if financing could
be ARRANGED for the shipments which
are to be made at stated intervals
throughout the present year.
Cotton Industry Affected.
in which lack of long-term credit
facilities is standing in the way of
American industrial development is
contained in a letter received at the
offices of the Foreign Trade Financing
Corporation from the Pacific Mail
Steamship Company. which says:
1--WE are just in receipt of a letter
from the West Texas Chamber of Com
merce, Stamford. Tex, stating that con-
siderable shipments of raw cotton could
be made to China if satisfactory ar
engagements could be made to finance
them. This is a concrete case where
your organization could be Of material
assistance to San Francisco. At pres
ent most of the cotton going to the
orient is controlled by the Japanese
If arrangements could be made as sug-
gested we believe considerable cotton
could be diverted to American lines,
furnishing tonnage very much in de-
mand at present"
CarKoes to American Ships.
The above communication Is consid-
cred highly significant. in view of the
fact that cotton is perhaps the most
vitality affected industry in the present
economic slump. and also because of it's
mention of the necessity of giving
cargoes to American ships. which have
beer hard hit by the drop in the export
and import business of the country.
Certain New York banks which have
connections with business in the south
have expressed great interest in the
news that one Of the Edge act corpora
tons, which has been in operation only
extent that it's directors have been
obliged to call for additional capital
Demands upon the Federal International
Banking Corporation of New Orleans,
1t is reported. have been so heavy that
an effort is being made to increase the
capital stock from $1,000, 900 to $10, ,000,-
900.
Lumber and Naval stores.
New York bankers see in this situ-
alton in New Orleans ample justifica-
tion for conducting Edge act CORPORA
tions on the basis of a large capitalize
ton, such as that planned for the For
eign Trade Financing Corporation.
The larger part of the demands upon
the Edge act corporation in New Or
leans has been for the shipment Of cot
ton. but lumber and naval stores ex-
porters are also seeking financial as
sistance. The requests have been so
numerous that only the best Of them
are considered.
Communications continue to reach
the offices of the Foreign Trade Financ-
ing Corporation. which is the largest of
the concerns organized to operate under
the Edge act to promote foreign trade.
showing trade openings in all parts of
g.
American merchandise and raw ma
terial.