New-York tribune., 1922-01-21
Foreign Financing
Corporation Drops
Organization Plan
Committee to Remain in Elk.
istcnce Pending Removal
of Difficulties; Work
Not in Vain, Is Belief

Efforts to organize the projected
Sloo,o0o,000 Foreign Trade Financing
Corporation, actively initiated moro
.nan a year ago under the auspices Of
the American Bankers Association.
have for the time definitely been aban-
doned. Announcement to this effect,
made yesterday by the committee in
charge of the work. confirmed the
understanding obtaining for some
months in banking circles here that the
task OF organization was not proceed
ing favorably.
The committee on organization, the
announcement indicates, will remain
IN existence pending the time when
difficultics which stand in the way of
immediate fultilment of its purpose
either clear or give assurance that the
formation. under the Edge law. of cor
norations of the type Of the Foreign
Trade Financing Corporation is not
feasible"
The executive committee in it's state
ment expresses the conviction that its
work has not been in vain. in that it's
campaign of education has aroused
broader appreciation OF the need of
granting long term credits to foreign
buyers on large scale. 1t expresses
the hope that when remedial measures
are adopted they will not take the form
OF paternalistic arrangements between
governments. but will be supplied by
financial equipment created by private
interests. 1t especially notes with
favor the development of the Ter Meu-
len plan, which it feels will work in
with Edge law corporations
The plan for the corporation was
originally conceived by John McHuch,
now president of the Mechanics and
Metals National Bank, who has served
as chairman of the organization COM
mittee. After almost year of prc]in-
mary consideration it was presented in
completed form in December, 1920, to a
meeting of business men and bankers
held in Chicago at the call of the
American Bankers Association. The
plan was approved, and in January,
ly-l, prospectus was issued, and it
was announced that the new corpora
ton would shortly begin operations.
From Tic start the practicability of
the scheme was challenged. doubt being
expressed that the 100000, 900, if
raised. could be employed. Active op-
position developed in the Middle West
and some other sections. Further diff
Guilty arose from the fact that tho ap-
peal for funds came at a time when
i
already entered upon period of de-
preston. The committee successfully
oVercamc some obstacles, but it soon
became apparent that it could not raise
tho capital required. Its propaganda
was actively conducted on a nation
wide scale and won Endorsement of the
plan from many sources.
As the spring developed interest
waned. II was proposed that the cor
poration should begin business on a
more moderate basis. No statement of
subscriptions to it's stock was obtain
able, but the total was reliably esti
mated at something in excess of $25.-
100000. Much Of this was pledged.
however. condltlonally upon the full
capital being subscribed.
BY midsummer the committees ac-
tivitics were cut to virtual minimum.
The expected revival Of interest did not
develop in the fall, aud abandonment
OF the campaign is attributed as much
to tnlS~aS To 0,.v Ot her f1ctOr