The Washington herald., 1921-02-13
Limit Ban to Be
Removed on New
Agency's Stock
National Banks, With Re
serve Boards Consent,
Free to Act.


plete and accurate information on
the foreign securities which it pro-
poses to buy or accept as collateral.
and for the general transaction OF
its business, the corporation, under
the law. can establish branches or
agencies in foreign countries. when
approved by the Federal reserve
board. The corporation may also
establish offices IN different parts
Of the United States. subject to the
| board, as the need for such Offices
may arise.
Flotation Plans.
1t is planned to distribute the de-
bentures of the corporation among
! investors Of all classes throughout
the United States and elsewhere. II
deemed desirable. The issues will be
designed to promote thrift ard to
appeal to small as well as large in
vestors, so as to enable all our peo-
pie to share in the beneft OF a ma
tion-wide institution for furthering
our foreign trade.
While the object Of the orEaniza-
ttion of the corporation is to satisfy
a pressing need in our commercial
]
| the interests OF the country a. a
whole. II will be a private institU-
tion whose first duty must be TO pre-
serve the safety OF the investmen Mt
Of it's stockholders and return fair
profit on that investment Its ulti-
mate and larger success will be
measured by the character OF the
service, which IL renders in main
tanning and further building up our
foreign trade.
Operations of the Corporation.
The operations OF the corporation
will be safeguarded by
First-The provisions Of the Edge
act, which form an amendment tc
the Federal reserve act, and provide
for supervision by the Federal Re
serve Board. as required by the act
Second-Its ability. owing TO it'
large capital and resources, to main
tain an efficient and thorough or
ganization for investigation Of the
foreign securities, which it purchaser
or upon which il makes loans;
Third-Its nationally distributed
ownership and thoroughly represen
tative control which will assure 1
, policy in accord with the Interest,"
Of the nation as q whole, and no
subject to undue influence by an!
one section or interest Of the coun
try
Anv national bank is authorized
? with the permission Of the Fedora
: Reserve Board. to invest in tn
, stock Of a corporation organized
e under the Edge act, so long as tn
: aggregate amount OF stock held b,
= such bank in all corporations en-
l gagged in business OF the kind de
/ scrihed in the Edge act and in sec
ton 25 Of the Federal Reserve &C
!, as amended does not exceed 10 pc
cent Of the banks capital and sur
plus.
q No Limit to Subscription.
n The provisions OF the so-calle
; Mclean -PIatt act limiting the riEh
o Of national banks to inve<t In tn
stock Of certain classes OF corpora
!, tions to January l. 1921, do not ap
; plv to the investment of stock !
: corporations organized under tn
Edge act. and national banks ma!
with the permission OF the FederS
- Reserve Board. invest in the stoC
Of corporations organized under tn
Edge act. without regard TO u
time limitation Of the McLean-Pla.
n act.
!, Applications by national bar .
for permission to invest in the St
Of corporations organized under IN
Edge act must be made 10 the f'"
eral Reserve Board on forms " 10.
that board has arranged to pTo .ln
for the purpose and which m'"
obtained either from the oftlC
the committee on orEanizativn .. IN
corporation or from the F. der'
Reserve Banks OF the several DIS
. tricts. Subscriptions by nations
banks may be filed at once. with IN
provision that they are mace SUI
II ject to the approval Of the Feoer
Reserve Board, and payments there
on should not be made until tia
approval by the Federal ReserN
{ Board has been granted.
The men. who for two years haN
devoted their time and energies
the study and development Of tn
plan, the associations and indiVi'
i uals that united with them at. u
Chicago conference and the con
( mittce on organization, which h'
been charged by that conferen'
( with the launching Of the pIa
have devoted their best ehort 10 u
- task for no other reason than m
:. they are profoundly convinced Nh'
- they are rendering a national SER
;. ice. They feel that the creation
an organization as here propose
; will furnish a machinery OF va
: Importance for the protection al
further development OF America
D" commerce and trade and for saf
- guarding the position Of the Unit
states as world power in con
. merce and finance.
Al Invitations to Subscribe.
II In accordance with the resoluti'
At of the Chicago conference uno
ST which the corporation is to be o
lie ganized an invitation TO subscri
II to its capital stock is extended
ORGANIZATIONS and individuals re
l. resenting agricultural, manufactu
r ing. financial. labor and other j
l. terests throughout the Unit
y States.
H. In accordance with this poll
le subscription books have been open
IN at the ofices Of the committee
OIL organization, 66 Broadway. Ne
At York City. Subscriptions are bell
le received at The rate OF SlO5 p
B share of 500. This provides 81
Of capital and IS surplus for ga
e share subscribed. The surplus fun
u will provide additional safety TO [
81 share holders and will assure 7
- serve for contingencies. There "
II, be no attempt at stock promote
- or any underwriting Of the tss'
- nor win any commission be ps
- for the sale of stock. A payne
=, of S25 on each share of stock su
-, scrIhad for will be called in 8