The New York herald., 1922-05-13
FARRELL PLAN LET'S
FOREIGN DEBTS PAY
Suggests Billions Owed to U. s.
Be Transferred to Status
of Investments.
TRADE MEETING CLOSES
Resolution Urges America to
Extend Liberal Credit to
Customers Abroad.

PHILADELPHIA. May 12-Snggestion
that the billions of dollars of foreign
indebtedness to the United States be
transferred to the status Of investments
or actual ownership n foreign property
was made tonight by Japlas A. Farrell
of New York at the banquet which
closed the ninth National Foreign Trade
Councils convention. Gov. Sproul of
Pennsylvania also spoke.
Mr.. Farrell. who is president Of the
United States Steel Corporation and
chairman of tho National Foreign Trade
Council urged the nee assitJ of the
councils forming public opinion to
counteract Impressions that tend to
minimize the significance of foreign
trade.
Resolutions adopted at the business
session to-day. which stand as the dec
.laration of the councils policy. urged
America to cooperate in world rehabili-
tation by extending credit including
long term credit, to foreign customers
by a tariff policy (which will make 1t
possible and profitable for other coun-
tries to sell to us in order that they may
buy from u.s." by reinvesting abroad at
least the interest accruing on foreign
loans and by the development of an
American investment market for foreign
securities.
Peace Dollars Value.
American dollars are peace dollars"
one of the resolutions declared, and
stated as conditions upon which Amer
lea would grant aid for the rehabilita-
ton of Europe that not a dollar OF
American capital or credit be used for
propaganda or militaristic purposes; that
Europe establish political and social
order adopt sound financial programs,
reduce it's enormously inflated currencies
and introduce rigid systems of taxation
and economy.
Asserting that transference of the
foreign Indebtedness to investments
abroad, preferably in properties OF a
public service nature, would have an
effect upon international exchange, Mr.
Farrell said:
1--WE then would be building for our
selves for the future, and there need
be no question then of wiping off these
huge items Of Indebtedness which cast
their sinister shadows over the inter-
national exchanges and which must
more directly influence them when and
IL payment Is ever attempted"
Development Of the foreign trade OF
the United States. Mr.. Farrell said
involved the problems of international
finance, rational tariffs with a reason
able protective tariff for home indus
tries and a bargaining tariff for Amer
lean exports and a merchant marine
policy to develop American shipping
Neesl Peoples support.
1.-THE greatest subsidy our ships can
have" he said. would be the support
of the American people. The greatest
hardships under which they are at
present laboring is the lack of such
support"
This means, the speaker said. Amer
leans should always have the "favoring
spirit toward their own vessels, but
does not mean American exports should
be shipped only by American vessels,
'since shipping is an international
problem and We require inward as We'll
as outward cargoes."
The councils argument for greater
foreign trade was contained in the as
sertion OF the declaration Of the prin-
ciples that the productive capacity of
the United States was greater than the
normal requirements of the domestic
market.
Foreign balances due the United
States can be made only to the degree
that the United States accepts goods
and services, the declaration said, and
added that these goods need not be
such as would be in competition with
American made products.
With reference to the American mer-
chant marine, the resolutions urged that
ali restrictions and inhibitions by the
Government be removed. particularly
with respect to rates, routes and SER
vice