Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-05-03
WAR FINANCE BOARD HEAD
TO RECOMMEND EXTENSION
OF CREDITS ON EXPORTS
BY RALPH SMITH.

birth of an encouraging and worka Bile
spirit of cooperation between export
ers, bankers and the United States
government through the agency of
the war finance corporation, the cot
ton conference in Atlanta yesterday
made unquestioned progress in the
solution, of business difficulties con-
fronting the south.
When adjournment was taken at
the Capital City club at the afternoon
session, Eugene Meyer, Jr, managing
director of the war finance corpora.
ton who came from Washington to
attend the conference, voiced a senti
ment shared by everyone present. He
said:
IT consider this meeting to have
been a great success. 1t brought to.
gether in the friendliest terms bank
ers from all sections of the south,
representatives of the Federal Inter-
national Banking company and ths
United States, as represented by the
war finance corporation.
The conference has developed a
most encouraging spirit of co-opera.
tion, and that. gentlemen, is absolute-
ly essential to the handling of the
problem. Speaking personally and as
the representative of the war finance
corporation, l am extremely glad I
came; am extremely gratified at the
results and believe that | con see
better days ahead for the cotton pro-
ducers, merchants. manufacturers and
bankers of the south"
Harmonic on Plan
Assembling without any definite
program, the conference, through the
interchange of ideas. harmonized on
concrete plan of action which found
expression in the appointment of
representative of committee of nine
to work out detailed policy respect
ing the movement. of cotton from in.
terror points to the ports and ex.
port from the ports to foreign coun-
tries. The policy thus to be adopted
will include also the question of for
eign credits an dproblemS of domes.
tic financing, involving in the end
the absorption of much of the so.
called frozen" credits that country
banks have carried for months with
cotton as the security.
Appointment of the committee OF
nine by Rudolph S. Hecht, of New
Orleans, who acted as chairman OF
the conference, followed remarks
able speech by Mr.. Meyer. In this
speech Mr.. Meyer expressed his per-
sonal approval of q suggestion pre-
viously advanced by w. L. Clayton,
of Houston, Tex, member of the cot.
ton fir moi Anderson, Clayton & Co.
Mr.. Clayton's suggestion was that
the war finance corporation could
render Invaluable aid to the south in
the present emergency through ex-
from the initial point in the interior,
instead of extending credit on such
exports only after the cotton lis In
actual transit from American ports
to European countries.
The conference was swept with
wave Of enthusiasm when Mr.. Meyer
stated that he would recommend to
the war finance corporation the ex-
tension of such credits as covered
by Mr.. Clayton's suggestion.
To Recommend Credit Extension
Il do not wish to be misunderstood
by either the bankers or cotton eX-
porters here assembled" added Mr..
Meyer. Il will not suggest nor will
the War Finance Corporation devil
ate the slightest from the letter or
the spirit of the law of the land. but
| will recommend to the corporation
the extension of credits on bona fide
export"
The effort Of Mr.. Meyers recon-
mendation, if followed by the War
Finance Corporation, will enable eX-
porters of cotton to obtain credits at
Washington for quantities of cotton
purchased in interior points. AS
matters now stand, the exporters
their own funds Or money borrowed
from the banks and hold the cotton
at American ports for weeks or
months before they can secure any
financial aid from Washington.
The immediate Intervention or aid
of the War Finance Corporation in
handling such interior purchases
will release millions in money that
Is tied up for an indefinite period,
final negotiations and arrangements
for foreign export.
r, After Mr.; Meyers declaration,
governor Richard /. Manning, of
South Carolina, moved the appoints
ment of committee, to include Mr..
Hecht, to formulate a definite plan
for the acceptance of the aid thus
aging director. The motion was
amended to authorize the COMMITTEES
to consider and work out the details
of other suggestions designed to fa-
Guided among these suggestions was
the plan for political insurance" to
protect foreign credits against polit-
ical upheavals and possible future
wars.
The Committee
The committee appointed by Mr.
Hecht includes the following gentle
men: W.: l.. Clayton. of Anderson,
Clayton & Co.. Houston, Tex, chair
man; w. S. Thompson. of George Fl.
McFadden, Philadelphia; Richard T.
Harris cotton exporter, New York;
A. II. Clever, cotton exporter, Dallas,
Tex; f. S. Butler, Jr president
New Orleans Cotton Exchange; Oscar
Wells. president First National bank,
Birmingham: Nathan Adams. pr'esi-
bank, Dallas, Tex; Robert F. Mad
dox, president Atlanta National bank;
Richard !. Manning. of South Caro-
lima; T. J. Caldwell, vice president
Federal International Banking COM
pany,, New. Orleans; Rudolph s.
Trust company, New Orleans.
The committee met during tie
lunch recess at the Capital City club
in conference with Messrs. Meyer
and Angus Mclean, representing the
war finance corporation. Subsequent
ly, at the afternoon session, Mr.
the chairman, verbally re.
ported that that committee would
meet in Washington, D. c.. on May
9. in conference with the directors
OIL the war. finance corporation, &c
present a concrete plan of action.
A development of the conference
was the general favor In which bank
ers and exporters regard the sugges-
ton of political insurance against
loss on foreign credits through war
or revolution in foreign countries.
This matter will receive the atten-
ton of the committee. and may take
definite shape at a subsequent date
through a petition to congress or
the organization of a mutual insur-
ance association of southern bank
ers and exporters.
1T is a question that carries an
appeal to every one who has given
thought to the difficulties besetting
he export of American products to