New-York tribune., 1921-05-23

Last week in the stock market, how
ever, was little more than an tnterlude.
Activity contracted, and outside par
ticipasion again slurnped. Floor trad
ers and semi-professionals dominated,
and, as is their wont, they we're ex-
perimental, testing out the possibili-
ties for small profits by quick turns in
either direction.
Money rates were maintained on a
fairly even keel last week ut per
cent. Although the Federal Reserve
system disclosed further Improvement
in its position, the fact that member
banks are engaged in paying off their
borrowings at the central institutions
as fast as funds accumulate tends TO
keep the supply of money available for
the call market limited. Commercial
borrowers are paying an average Of 7
per cent for accommodation.
The National Association Of Manu-
facturers at its convention at the Wal
dorf-Astoria Hotel last week correlated
multitudinous suggestions for stirnu-
lating Americas export trade. Busi-
ness men now recognize that trade
must movs in both directions, that
Americans will have to invest abroad if
foreign trade is to continue, and that
the time when foreign competition will
be heightened is approaching. AS early
as the spring of 1919 these observa-
tions were commonplace to those who
attended to the ideas Of farseeing inter
national bankers, such as Frank A.
Vanderlip and Henry P. DAWSON The
first suggestions Of these bankers for
comprehensive financing programs were
not adopted, and business men will con-
tinue to be conscious that all is not
we'll until these basic problems in con-
nection with foreign trade are solved
in a fundamental way.
Eugene Meyer jr., head of the War
Finance Corporation, is aggressively
expounding his recommendations for
more fluid market for foreign securities
4AA bHl5 NCGhblS IIC recognizes L1aI
financial groundwork must be laid as
basis for sustained trade. He urges
that Americans forge new machinery
to meet novel relationship with the
rest Of the world.
Mr.. Meyer presented his ideas to the
Listing Committee of the Stock Ex-
change, and earlier in the week dis
cussed them before the National Asso-
citation Of Manufacturers. The essence
of his proposals follows:
"In choosing as my subject miss
ing link in international finance and
its relation to the market for Ameri-
can manufactures" said Mr.. Meyers,
II had In mind link which is missing
and which in my opinion can promptly
be supplied-a link that, I believe,
quickly would become big and strong,
and one that would add strength at
the weakest point in the chain of the
worlds economic relations. The miss.
ing link I have in mind is a properly
established public market for interna-
tional securities-that Is, for securi-
ties having free, broad, public mar
kets in the United States and in the
foreign countries.
"In the pre-war period, when the
banking for American import and ex-
port business was done very largely
by foreign banking institutions and
with foreign capital, this facility was
furnished to us, as debtor nation, by
European bankers. AS pre-war con-
ditions are reversed, it might be ex-
pected that a similar facility would,
under present conditions, be placed by
us at the disposal of at least some of
the foreign countries. An interna-
tional security market has not been
established in America, and the mar
ket in Europe has ceased to exist.
II do not mean that our bankers
have not done we'll. On the contrary.
the firms that have handled the float
ing of dollar loans for foreign gov
ernments and municipalities have
achieved noteworthy results in that
field. The maturity of the Anglo
French loan last year, which had been