Evening star., 1939-03-05
Export Import Bank Extension
Starts New Dollar Diplomacy
Signs Point to "Good Neighbor Policy Executed
in Deeds Rather Than Words in
South America
Bv Blair B0UeS.

to Mexico. 1t got commitment of
$l25,O0O from the bank. But the busi-
ness was placed outside the United
States.
Pullman-Standard Car Export Co.,
New York. Country, Brazil. Commodity,
freight cars. Commitment, $4,000. The
business went to Belgium because we
could not meet that countrys terms.
Harley Davidson Motor Co., Milwau-
kee, Wis. Country, Turkey. Commodity,
motorcycles. Commitment, 100000.
Business placed outside the United
States.
Caterpillar Tractor Co., Peoria, ILL.,
Country Turkey. Business placed in
Czecho-S Slovakia because we could not
meet their terms.
The j. G. Brill Co., Philadelphia Pa.
Country, Argentina Commodity, rail-
road equipment. Commitment, $450,000
Business placed outside the United States
after the application was made and
an effort made to get the business.
Pullma1Standard Car Export Co..
New York. Country, Brazil. Commodity,
railway cars. Commitment, sl,761 ,0O0
Business went to Germany.
The Willamette -Hyster Co., Portland,
Greg. Country, Turkey. Commodity,
standard winches. Commitment, $l5,-
700. Business went to Germany.
Gillespie & Co., New York. Country
Brazil Commodity. industrial products
y,1o
outside the United States.
Caterpillar Tractor Co., Peoria. Coun-
try, Turkey. Commodity, industrial prod
ucts. Commitment, 81 900 600. The busi-
ness went to Czecho-S -Slovakia.
Locomotives for Brazil.
The bank now is prepared to make
available credits for large locomotive
shipments to Brazil. This is one imme-
diate result of the visit here of Mr..
Aranha, who was invited to Washington
by Mr.. Roosevelt and who returns to
Rio de Janeiro this week. The railroad
industry has benefited in the past from
the banks operations. Chile, Mexico and
China have bought locomotives through
the medium of EXport-Import credits.
The bank also has aided Brazil in off,
setting blocked balances on foreign ex-
change to the amount of $1,7l6,977. 1t
has advanced credits for sale to Mexico
of pipe and water meters, pumps and
motors, railway equipment and water
purifying equipment. Costa Rica has
bought used steel rails, Venezuela
printing press, Chile farm machinery and
Bolivia cotton yarn through the medium
of the bank. Except for some fountain
pens this is almost the complete history
of sales to South America through the
bank; it is not large.
Among the other countries which have
bought American goods from exporters
obtaining credits from the Export
Import Bank are Poland cotton and
copper, Italy cotton, Iran (tires and
automobile equipment, Australia, New
Zealand and Denmark manufactured
products.
The banks use as an extraordinary in
strument of national policy has been
challenged, but its business administra-
ClOll 1ldS UCCll SOuIlN, 1lOlll tllC SCdIlupOlIlC
of collections 1t has suffered losses on
none of it's loans and only two loans are
in arrears-a 100000 loan on tobacco
sold to the Spanish tobacco monopoly,
of which all but $4,000 has been paid,
and payments on an 100000 railroad
loan to Mexico, of which $417,O0O has
been repaid.
Makes Up Dividends.
The bank has earned sufficient money
to make up dividends on its preferred
stock which had accrued in the 10
months after its creation, when it did
not operate, as we'll as to meet current
dividends and operating expenses.
The operating expenses are not large.
The bank has staff of six, headed by
its president, Warren Lee Pierson. He
joined the bank in 1884 as general coun-
Sell Then 1t was run by George N. Peek,
who resigned from the administration in
indignation and has been challenging
the New Deal foreign policy and trade
agreements program ever since Mr..
Plerson was given his job in February
1896. He is AZ years old.
Mr.. Pierson joined the New Deal from
California. where he was Los Angeles
lawyer, educated at the University of
California and the Harvard Law School.
Republican protests about the $25 ,OOO,-
900 commitment to China must take his
memories back to the spring of 1887, be-
fore the Japanese war began, when Mr..
Plerson made special trip to China to
investigate the possibilities of throwing
our way some of the Chinese trade
which Great Britain was getting. China
had great transportation projects afoot
highways and railroads. She was in
the market for materials. Mr.. Pierson
thought he could interest American
companies in some Of this business, with
the Export-Import Bank supplying
credits when possible.
R. Walton Moore, Assistant Secretary
of State, is chairman of the board of
trustees to which Mr.. Pierson is imme-
diately responsible. Its other members
include Herbert Feis, adviser to the
State Department on international eco
nomic affairs; Harry L. Hopkins, Secre-
tary of Commerce, and Jesse H. Jones,
chairman of the Reconstruction Finance
Corp. A vacancy recently occurred with
the resignation of Wayne Chatf1eld
Taylor as Assistant Secretary OF the