The Portland daily press., 1890-05-28
A BANK FOR THE AMERICAN PEOPLES
Who are Now Dependent on the Old
World Institutions.
The Plan endorsed by tho Recent
international Conference.
Letters From the President and Sec
rotary of State.

WASHINGTON, May 27.-The following mes
sage was transmitted to Congress today by
the President:
transmit herewith letter frsm the Secretary
State, enclosing the report adopted by the Inter
national American Conference, recommending
the establishment of an International American
Bank with principal offices in New York and
branches in the commercial centres of the other
American republics. Ii is not proposed to involve
the United States in any financial responsibility,
but only to give the proposed bank a corporate
franchise and promote public confidence by re-
curing that its condition and transactions shall
be submitted to scrutiny similar to that now
exercised over our domestic banking system. The
subject Is submitted for the consideration of Con-
gress in the belief that il will be found possible
to promote the end desired by LEGISLATION so
guarded as to avoid all just criticism.
lSignedl BENJAMIN HARRISON.
In his letter TO the President, Secretary
Blaine says:
The foreign amerce OF The nations south OF
the Gulf of NIX ca and Rio Grande amounts an
nualy to more than 81, 100000, 900. At present
the people OF the United States enjoy only mea.
gre share of this market. The action Of the re-
cent conference will result, believe, in the re-
moval OF certain obstacles which now tend to OBJ
struct the expansion of our trade, One of the
most serious OF these obstacles Is the absence of
system OF direct exchanges and credits by rea-
son OF which exporting and importing merchants
of the United States engaged in commerce with
Central and South America, nave been. COM
PEELED to pay bankers OF London
commerce with the countries south of the United
States amounted to 1882 ,005,O57, OF which the
imports OF merchandise were valued at $751;
$3.50, and imports of specie and bullion at
$21, ,236, ,791. The exports consisted OF merchan-
disc valued at $71 ,93S, ,19l, and 81 ,66S ,470 of
specie and.bnlion; OF the merchandise import
paid for by remittances to London ana the cities
OF the Continent to cover drafts against Europe
an letters of credit. For the use Of these credits
was customarIly paid f' fhe European banks have lave
enjoyed large profit upon our business, with
minimum OF risk. This system steadily results
and differences in exchange, as well
as in commissions. These losses
q py me tba
American republics. The merchants Of this coun-
try are as dependent upon the bankers Of Europe
in their financial transactions with their Ameri-
can neighbors as they are upon the ship owners
OF Great Britain for transportation facilities, and
VIII continue to labor under these embarrass-
ments until direct banking system Is establish
ed. The report of the committee of the Pan
American conference, presents simple and easy
method OF relief and the enactment of the meas
ure recommended will, in the judgment of the
conference, result in the establishment of proper
facilities for inter-American banking.
A bill has been prepared at the State De-
partment 20 carry into effect the recommend
ations of the committee. The bill designates
American Conference as a commission to re-
ceiye subscriptions to the capital stock of
The International American Bank" books
for which purpose may be opened in Wash
ingtoD, New York and such other principal
cities In the American republics as the COM
missioDers may think proper. AS soon as
$4,000 shares are subscribed, the subscribers
shall have the same privileges as are now en-
joyed by banks generally, its acquisition of
real estate, however, to be limited to 10 per
cent of the capital stock paid in. The cor
poration may be designated by the Secretary
OF the Treasurer as depository of public
money and may be employed as a financial
agent of the government. The principal Of
fee shall be in Washington or New York
City, with power to open branch offices in
the United States, Mexico, and
South and Central America. The cap
ital stock is fixed at S10,OO0,O0o in 500
shares, which may be increased by two
thirds vote to not exceeding 100000. Bus
iness may be begun as soon per cent OF
the subscriptjnrA :. ara.,r9jA F(,reSha AT
years. The board of directors shall consist
of 25 persons, not less than Is to be citizens
of the United States. No person shall be a
director who does not own 250 shares of
stock The stockholders are made liable to
poration shall file semi-annually with the
Secretary of the Treasury a report of its
financial condition, and its affairs shall, at
all times, be open to the examination of the
officers of the Treasury Department. Pro-
vision is made for the appointment of a re-
ceiver for the corporation and the winding
up OF its affairs in case its capital stock Is
impaired more than 20 per cent of the
amount of capital stock actually paid in and
the directors fail to make such impairment
good