It is thus seen that the Federal Reserve Board is clothed with broad powers for the regulation and control of the Edge corporations, and upon this regulation their success and avoidance of danger largely depend. The first set of regulations was issued 2 in March, 1920. Another potent factor determining the success of the Edge corporations is their ability to distribute among investors in this country the obligations that they may indorse or may issue against the foreign obligations they may acquire. Being a new form of banking institution it will require considerable publicity and propaganda to induce the participants in foreign trade to use them. Their development is also being promoted by the fact that in the different states (already 19) the "blue sky" restrictions forbidding one bank to hold for investment stock in another bank have been cleared away.

2 Federal Reserve Bulletin, Apr. 1920, Pp. 379-382.

Of the several Edge corporations already established the First Federal Foreign Banking Association of New York was organized by financial interests of New York and New England, in the interest of the manufacturers of their localities.

The Foreign Trade Financing Corporation of New York was launched during the economic depression in the winter 1920-1921, at a Chicago conference of some 500 representatives of the banking, commercial, agricultural, and industrial interests of every section of the country, with a view to extending long-term credits to foreign buyers of American goods and thus terminating the threatened paralysis of our international trade. The corporation is capitalized at $100,000,000, the shares being held broadly throughout the country, and it may issue $1,000,000,000 of debentures for sale to investors of all classes throughout the United States and elsewhere, if deemed desirable. The corporation is establishing branches in different parts of the United States as well as agencies in foreign countries.

A third Edge corporation, the Federal International Banking Company of New Orleans, was also founded during the depression in the winter of 1920-1921, by southern bankers, for the purpose of lending financial aid in the exportation of cotton and other southern products. It is capitalized at $6,000,000, with shares held throughout the cotton states, in whose larger cities branches and agencies are being located.