The Connecticut labor news. (New Haven, Conn.) 1921-1925, 1921-04-01
FOREIGN TRADE
FINANCING CORP.
GETS UNDER WAY
World S Greatest Institution Soon
to Subscribe One Hundred
Millions for Work.

New York, April 1-Manufacturer
farmers, and bankers are rallying be-
hind the organization of the 100000 600
Foreign Trade Financing Corporation,
and the organization committee of 80
has announced the conclusion of a week
of notable progress, At least three
aspects Of the work of the past 10 days
stand out definitely:
l. The passage by 10 state 1egis1a-
lures OF 'enabling acts" permitting state
banks and trust companies to purchase
stock i'll this corporation.
2. The appointment of a committee
n policy" to make survey of world
trade and to decide when the corpora
ton should open its doors for business.
l. The announcement that amend
ment to the federal reserve law, under
which the Foreign Trade Financing
Corporation is to operate, will be intro
duCed in Congress when it COnvenes on
April 1l-this amendment to permit the
corporation to call for payments on its
subscriptions as they are needed instead
of at the arbitrary periods now specified
by the law.
This committee on policy IS composed
of members of the executive committee
of the advisory council of the federal
reserve board. John Ntzhugh, chairman
of the committee on organization, and
the probable chairman of the permanent
board of directors, has announced that
tire initial payments the SubsCript iOns
to the capital stock will be called when
this body has determined in what parts
of the world the corporation should inn
mediately extend its facilities in the in
tereSt of American exporters.
TIL committee on policy is as fol-
Levi L. Rue president. Philadelphia
National Bank, Philadelphia.
Paul NJ. Warburg, former governor
of the Federal Reserve Board.
John J. Mitchell, chairman of the
board, illinois Trust & Savings COM
pany, Chicago, III.
Philip Stockton, president, Old Col
ony Trust company, Boston, Mass.
+. F. SWinney, president, First Ma
tonal Bank, Kansas City, Mo.
F. O. Watts, president, First National
bank St. Louis, Mo.
This committee was determined upon
in view Of suggestions which have been
made that long-term credit should no
longer be extended to foreign buyers
of American merchandise until the ma
chinery of the League of Nations, by
which credits will be guaranteed, is per-
fected.
In regard to the immediate need Of
such facilities and such volume of
long term credit as hte corporation will
provide, Mr.. McE1ugh said last week:
There is a great volume of business
awaiting American exporters, provided
ong-term credit is established to enable
foreign buyers to finance their purchases
Evidence is in the hands Of the organ
izers Of the corporation OF weekly losses
running into millions of dollars-losSeS
suffered by American farmers, manufac-
turers, and exporters because OF the alb
sence of adequate banking facilities.
In spite of the overwhelming testl-
mony OF foreign buyers for goods,
we have found among certain people
sentiment that foreign markets are not
ready to take our goods, and that proper
security to protect loans made in the in
terest of our exports is not readily avail
able. Under the circumstances, there
fore, we have invited group of men
whose judgment will readily be accepted
by every farmer, business man, and
banker of the country to make a frank
and unbiased survey of the situation to
the end that any existing fear regarding
our international financial arrangements
may be promptly and tisfactorily an
sWered."
Up to the present time the campaign
for the fotation of the S1OOOO0000
stock of the corporation has been con-
Quoted along broad educational lines, for
the purpose Of aCquaintlng the general
public with the form of banking author
lied under the Edge act. An intensive
campaign for subscriptions will not be
conducted until May, when it is hoped
by the committee that the country will be
sufficiently familiar with the purpose and
scope of the corporation to give whole
hearted support to its activities.
The formation Of local committees
throughout the country is going on with
considerable rapidity. In all sections
manufacturers and farmers are cooper
ating with the bankers in the organiza-
ton of the worlds largest institution for
the support of foreign trade.