HC Deb 07 July 1919 vol 117 cc1406-7W
Mr. GIDEON MURRAY

asked the Chancellor of the Exchequer whether he will give the House the provisions enabling the War Finance Corporation in the United States to promote commerce with foreign nations through the extension of credits?

Mr. BALDWIN

The relevant provisions of the Fifth Liberty Bond Act are as follow:

"Section 9. That the War Finance Corporation Act is hereby amended by adding to Title I. thereof a new Section, to read as follows:

Section 21

  1. (a) That the corporation shall be empowered and authorised, in order to promote commerce with foreign nations through the extension of credits, to make advances upon such terms, not inconsistent with the provisions of this Section, as it may prescribe, for periods not exceeding five years from the respective dates of such advances:
    1. (1)To any person, firm, corporation, or association engaged in the business in the United States of exporting there from domestic pro ducts to foreign countries, if such person, firm, corporation, or association, is in the opinion of the board of directors of the corporation, un able to obtain funds upon reasonable terms through banking channels. Any such advance shall be made only for the purpose of assisting in the exportation of such products, and shall be limited in amount to not more than the con tract price there for, including insurance and carrying or transportation charges to the foreign point of destination if and to the extent that such insurance and carrying or transportation charges are payable in the United States by such exporter to domestic insurers and carriers. The rate of interest charged on any such advance shall not be less than 1 per centum per annum in excess of the rate of discount for ninety-day commercial paper prevailing at the time of such advance at the Federal reserve bank of the district in which the borrower is located; and
    2. (2)To any bank, banker, or trust company in the United States which after this Section takes effect makes an advance to any such person, firm, corporation, or association for the purpose of assisting in the exportation of such products. Any such advance shall not exceed the amount remaining unpaid of the advances made by such bank, banker, or trust company to such person, firm, corporation, or association for such purpose.
  2. (b) The aggregate of the advances made by the corporation under this Section remaining unpaid shall never at any time exceed the sum of $ 1,000,000,000.
    3. 1407
  3. (c)Notwithstanding the limitation of Section I the advances provided for by this Section may be made until the expiration of one year after the termination of the War between the United States and the German Government as fixed by proclamation of the President. Any such advance made by the corporation shall be made upon the promissory note or notes of the borrower, with full and adequate security in each instance by indorsement, guaranty, or otherwise. The corporation shall retain power to require additional security at any time. The corporation in its discretion may upon like security extend the time of payment of any such advice through renewals, the substitution of new obligations, or otherwise, but the time for the payment of any such advance shall not be extended beyond five years from the date on which it was originally made."