The Washington herald., 1921-03-14
EXPORT ORDERS
LOSING MILLIONS
WEEKLY, REPORT
Foreign Trade Financing
Corp. Assemblies Start
ling Information.
WITHOUT PARALLEL
Leading New York Business
Men Cannot Recall Equal OF
Commercial Crisis.
PARALLEL


losses Of export orders running in
to millions OF dollars were indicated
In a report issued today at the
iofices of the Foreign Trade Finan-
cling Corporation. which is now be-
ing organized under the Edge Act
to promote the country's foreign
trade by granting long-term credits
which are needed for financing pur-
chsses Of American goods abroad.
Information assembled by the or
ganization committee indicates
situation which is without parallel
in the memory of leading New
York business men. Following are
few of the most significant facts
coliated in the corporations sur
vey:
There are in New York today a
greater number Of purchasing
agents for buyers abroad than at
any time since the close of the war.
Several million bales of cotton are
now stored at various points in the
South. held up by lack Of adequate
credit machinery to finance their
sale to buyers abroad.
Surplus supplies Of grain, to the
extent Of several hundred millions
OF bushels above this countrys
normal need, are stored at primary
points throughout the Middle West
held for similar reasons.
In the absence of adequate credit
facilities, due to the fact that COM
thnfr
lending resources to the limit of
prudence, certain large corporations
are preparing to finance their own
business.
As an emergency measure. certain
manufacturers are reverting to the
ancient practice of barter.
In one Middle Western State man
ufacturers are facing a loss of s2o.-
\ 100000 in current export orders from
Southeastern Europe alone.
| Banks Caavassed.
A canvass of banks in the financial
district. made for the purpose of
shedding light on the possibilities
Of immediate business abroad. re-
vealed the fact that there is a strong
demand for credits running from six
months to a year by responsible
business interests in Japan, Ger
many, Denmark. Finland. the
Balkans, South Africa, Italy. Aus
tralasia and the republics of South
America.
These credits are sought to finance
purchases of Americas foodstun:
and raw materials, standard article:
of manufacture, and. in addition
many manufactured specialties suct
as electric dynamos, harvesting ma
chinery. locomotives, typewriters
machine tools, adding machines
TRACTORS and miscellaneous engineer
ing equipment. Bank officials wer'
unanimous in commenting upon thu
sound character of this business
but could see no way of extending
the desired credit under existing
facilities.
Attractive Orders.
Offers of profitable export bust
ness running into large sums are /;
matter of daily occurrence. Col
lateral offered as security for long
term loans is uniformly good. 4
typical instance was the offer mad
during the past week by certain
business interests in Roumania
who indicated their readiness to Sc
aside as collateral large supplies
Of stored oil, cash and government
bonds. A similar offer was mad,
today by commercial agents fren
Bulgaria.
A certain -four miller has state,
that he has before him at presen
two inquiries from foreign buy
ers; one inquiry for about $4,000
worth of dour for Poland, and an
other for an equal amounto 70
Czecho-Slovakfa- One offers to pu
up as security Polish governmen
bonds, payable in American dollars
for twice the amount of the valu
Of the -four: drafts to be payabl
within six months Of shipment. Tn
other offers to put up sugar GER
tincates for sugar stored II
Czecho-Slovakia, with the under
standing that these certificate
would be margined down to tn
present value of sugar. Credit de
sired here Is also for six months.
The extent to which manufac
turers are aroused over this dali
loss of foreign business was indi
Gated by a visit at the offices o
the Foreign Trade Financing Cor
poration by George P. Meyercort
president of the Illinois Manufac
turers' Association.
III Mr.. Meyercord declared that tn
| Illinois manufacturers are thor
] oughly alive to the situation. Man
ufacturers throughout the Middl
I West, he said. see in these foreiF
orders their only hope of returniR
soon to the full-time srhedule 70
| their factories. and do not propos
to see this lucrative business goin
to waste for lack Of adequat
| financing. \
III Independent Financing.
Following E. II. Gary's recent an
/, nouncement that the United State
Steel Corporation is setting asid
twenty millions for financing tn
orders of its foreign customers o.
long-term basis and Charles
| 'Schwab's statement in Paris durinl
the past week. promising to ope
large credit accounts in Europe {
facilitate business for the Bethleher
| steel Company. there are marked In
dications that certain powerful cor
porations will resort to independen