New-York tribune., 1921-05-08
Long Credits to
Europe as u. >.
TradeAidUrg.ed
National Foreign Business
Council Wants Machinery
for Promotion of Free
Exchange for Exports
Must Balance Exchange
Return TO Normal Depends
Largely ON Improvement
i'm Our ForeignCommerce|

CLEVELAND, May 7.-With the
unanimous adoption Of the foreign
srsds program for the coming year, as
recommended by the general conven-
tion committee, copies of which will
ba SAINT to President Harding, members
OF his Cabinet, Senators and Congress-
men. the eighth annual convention of
the National Foreign Trade Council
closed four-day session this morning.
The report of the committee is y
composite embodiment of all practical
Recommendations brought forward by
international experts at the general
and group sessions of the convention.
seThe business world is suffering to-
day from unbalanced exchanges" the
report said. Notwithstanding the po-
sition of the United States as cred
itor nation, the present unstable finan-
ciai condition of large part of the
world, especially of Europe, is the
fundamental cause of our own business
depression.
"A return to normal conditions in
this country depends in large part
upon an Improvement of our foreign
trade. The present retrogression is evil
denced by the maximum of the coun-
try's export trade of S928,o00, 900 in
June, 1920, decreasing in October to
$75I,000,00o, and in March, 1921, to
SS84,000, 900.
Curtailed Foreign Purchases
foreign nations whose imports ex-
ceed their exports have been compelled
60 curtail purchases because of inabil-
ity to pay by exports.
The United States must continue 20
increase its imports of raw material
and merchandise not detrimental to
existing industry in order to receive
pay for the exports necessary to stable
employment by labor in agriculture
and industry, and to permit of the
liquidation of the obligations of the
debtor nations.
"It is generally agreed that the solu-
sion depends upon our ability to create
adequate facilities for the purpose of
drawing upon surplus American invest
ment funds in order that the long-term
credits so badly needed by the Euro
pean countries may be furnished. Most
of the countries of Europe are unable
to pay us now or for some time to
come in gold or merchandise, and un-
less they are enabled to obtain credits
20 purchase raw materials their busi-
ness and ours will continue to stagnate.
"We urge the immediate creation of
financial institutions under the Edge
law. whose machinery will facilitate
extension of long-term credits to pro-
mote free exchange of exports and i'm.
ports. We commend efforts 10 ac-
quaint our investing public with the
necessity of purchasing debentures
ISSUED by such institutions against ap-
proved foreign securities for this pur
noss.
"The reduction of loans and accumu-
fation of banking reserves now permit
the extension OF credits sufficient to
accelerate recovery in certain lines.
This should gradually thaw frozen
credits and end stagnation and provide
export and import cargoes for our now
partially idle merchant marine.
Increased Confidence in Business
"The increased confidence prevailino
in the American business world denotes
the disappearance of danger of finan-
cial panic. AS Iiquidations progress
and reconstruction il. Europe proceeds,
normal conditions will be restored
gradually. 1t will continue to be the
part of prudent commercial and finan-