FINANCING EXPORTS

Auckland Star, Volume LXIII, Issue 93, 20 April 1932, Page 4

FINANCING EXPORTS

LATEST AMERICAN PLAN. The latest financial scheme of the United States Government for the rehabilitation of industry through its 2,000,000,000 dollar credit corporation includes provision to assist the financing of exports. The following paragraphs in the Reconstruction Finance Corporation bill are of particular interest to persons engaged in overseas trade: —■ The corporation is authorised and empowered to accept drafts and bills of exchange drawn upon it which grow out of transactions involving the exportation of agricultural or other products actually sold or transported for sale subsequent to the enactment hereof and in process of shipment to buyers in foreign countries. No bill or exchange or draft shall be eligible for acceptance if such bill shall have at time of acceptance a maturity of more than twelve months. All drafts and bills of exchange accepted under this section shall be in term?, payable in the United States, in currency of the United States, and in addition to the draft or bill of exchange shall at all times be fully secured by American securities deposited as collateral, or shall be guaranteed by a bank or trust company of undoubted solvency organised under the laws of the United States or any State, territory or insular possession thereof.