The midland journal. (Rising Sun, Md.) 1885-1947, 1939-05-05
Bruckmfs Washington Digest
Restore Jobs by Helping in Sale
OF Products Of Farm and Factory
That Is Philosophy Of Head Of Exportmport Bank Which
Is Doing Good Work in Financing Trade With South
America; Outstanding Commitments 229 Millions.
BY WILLIAM BRUCKART
WNU Service, National Press Bldg. Washington d. C.


But having watched the negotiations
with foreign governments over re-
payment Of the loans made by the
United States during the World war,
] had some misgivings. It seemed
that here was another agency doing
exactly what Mr.. William Gibbs Nc
Adoo had done as secretary of the
treasury during the World war. In
other words, the futility of ever ex-
pecting payment on foreign loans
rather had been impressed upon me.
! told MIR. Pierson of my feelings.
"That cannot be so in our case"
he explained. 1--WE have collateral.
We have ways Of collecting. There
are guarantees behind the notes we
have received, for example, in the
locomotives. We have no fears at
ALL"
The guarantees, the collateral,
about which Mr.. Pierson spoke,
learned, were in the shape of bank
endorsement That is to say, one
of the South American banks, with
deposits in New York and other
large cities in the United States, has
added its promise to pay to the
promissory notes given by the pur-
chaser. Mr.. Pierson did not say
so, but it became readily apparent
to me that, should the South Amer
lean nation concerned decide to for
bid payments to foreigners, as has
happened before, the export-import
bank, If need be, could grab for the
South American deposits in this
country. Mr.. Pierson gave no init
nation that such a course had en-
tered his thoughts.
Concentrate on Financing
Exports to South America
At the moment, there seems to be
quite concentration of effort to aid
in financing exports to South Amer
lea. OF course, there have been
credits arranged for several places
in Europe, too, and also in China.
Mr.. Pierson is very optimistic about
future trade with China. But the
bulk of the loans have been in con-
nection with South American propo-
sitions.
And the fact that the export
import bank is paying so much at
.tention to South America is impor-
tant in another way. The fascist
dictators, Mussolini and Hitler, are
driving hard to gain trade footholds
in South America. Having the type
of government Germany and Italy
have, it is easy for them to make
any kind of arrangements desired
by using whatever government re-
sources are necessary. 1t strikes
me, therefore, that if the export
import bank is making that dent
about which I quoted Mr.. Pierson in
the opening sentence; if it is gaining
a toehold in South America against
the high-pressure methods employed
by the dictators, then it is perform
ing a great service for the citizens
of the United States. It is conceiv-
able, indeed, that extension of cred
it's in the manner described might
possibly be the means by which
North and South America can be
tightly bound to each other in war
as well as in peace.
There is another thing about the
export-import bank that impressed
me. It is operating on borrowed
money, of course; and the taxpayers
will have to make up any losses be-
cause the federal government OBJ
viously is morally bound to pay off
the banks bonds if it were to col
lapse. But thus far in its life, the
export-import bank has had no
losses. Thus far, it has been able
to pay all of its own expenses out of
the interest charged its borrowers.
Export-lmport Bank Stands
To Make Large Profit
And important also is the fact that
in the current year, barring I'M
foreSeen developnnenfS. the exnorf.