The Washington herald., 1921-04-27
LONG TERM CREDIT
FIRST ESSENTIAL
FORFOREIGN TRADE
Survey Shows U. s. Is
Crippled by Finance
System.
MANY CHANCEsLosT
Demand for American Goods
All Over the World Is
Stopped.
MANY CHANCESLOST

NEW YORK. April 2s.-The or
ganizarion committee of the For
eign Trades Financing Corporation
has completed another Illuminating
survey showing the effect upo:i
American farmers, manufacturers
and producers from the existing In
ability to finance foreign business
on long-term credits with countries
where immediate payment is DIM
cult
Hundreds of instances of business
opportunities abroad which Amer
lean producers and manufacturers
have been compelled to forego-in-
cluding many transactions which
foreign concerns sought in vain to
negotiate-have been investigated
and analysed. The result has been
made the subject of a report replete
with striking illustrations of the
Importance of establishing quickly
relief for a condition which Is hav-
ing a very marked effect upon
American manufacturers and agri-
cuIturists and upon American labor.
Specific instances are cited to
show that business transactions
which had to be abandoned might
nave Decn Atu OH SLCSCSSA oAiy
and profitable with the machinery
for extending long-term foreign
credits such as the Foreign Trade
Financing Corporation will provide.
Ten million dollars worth OF
American machinery could be mar
keted at once in a leading European
country IL long-term credits could
be arranged Efforts to arrange
this credit so far have not been
successful, even though backed by
excellent guarantees, including gov
ernment guarantees. The contern-
plated credit transactions woulc
yield a net return to American in
vestors Of slightly better than 8
per cent.
DEFINITE advices Nave been re-
ceived by the organization commit
tee of the Foreign Trades Financing
Corporal on indicating that there is
the greatest interest in the Far
East in the operations of the cor
poration when IT begins function
ing. The Far Eastern advices state
that there will be many desirable
opportunities there for business on
the part of American exporters
when the corporation starts opera
tions. China is eager to have
American cotton.
Coal shipments were refused to a
reputable South American buyer
who had warehouse receipts for
coffee to offer as collateral, but who
could not arrange dollar credits.
The order amounted to hundreds OF
thousands of dollars.
A large order for American farm
implements and hardware for Rou-
manian purchasers was cancelled
for the reason that only part pay
ment could be made in cash, the
remainder being rendered in gov
ernment bonds and oil securities.
An order for exportable foodstuffs
and fuel for one European country
aggregated 1000, 900 tons. The ma
terial was to come from many parts
of the United States and shipments
were TO be extended over a year.
Exporters had tentatively arranged
to ill the commission and begin
shipments. when it was discovered
to be impossible because of the lack
of redit-extending facilities.
For the same reason an automo-
bile manufacturer in Ohio was re-
Gently forced to reject a South
American order for S250.000 in
trucks. He could not finance the
Utdl cACCpN OH d CdSn DdSlS. mat
was not obtainable under existing
conditions. 1t is reported that of
many countries anxious to buy
American automobiles, Australia
alone would take s25,0O0,000 worth
forthwith If loans of reasonable
length could be arranged.
Both in Egypt and India negotia-
tions for a wide range of American
products are hanging fire pending
the development and operation of
Edge law corporations, which can
take over acceptable securities in
foreign countries and pay for them
on condition that the money shall
be spent in America for American
goods. India and Egypt want to
import from the United States such
articles as food. soap, cutlery, per-
fumery, kitchen utensils, glass and
earthenware, linoleum, alcohol and
gas stoves, novelties, typewriters,
motor cycles, and children's scoot
cars
Mexico wants machinery and
equipment for shrimp fishing such
as is used by Louisiana fishermen
and Mexico Is used to long-term
credit
Consular agents in South Africa
report that importers are interested
In United States made machinery