Los Angeles herald., 1890-05-28
PAN-AMERICAN BANK.
THE SCHEME TRANSMITTED TO
CONGRESS.
Letters of President Harrison and Secre-
tary Blaine Endorsing 1.-THE Bill
Prepared by the State Department.

WASHINGTON, May 27.-The president
today transmitted to congress letter
from the secretary of state, enclosing
the report of the international American
conference on theinternational American
bank scheme. In his letter the presi-
dent says it is not proposed to involve
the United States in any financial re-
sponsibility, but only to give the pro-
posed bank corporate franchise, and
promote public confidence by requiring
that it's condition and transactions be
submitted to scrutiny similar to that
exercised over our domestic banking
system. The subject is submitted for
the consideration of congress, in the be-
lief that it will be found possible to pro-
mote the end desired by legislation so
guided as to avoid all just criticism.
In his letter to the president Secretary
Blaine sets forth the advantages to be
derived from such project, and says in
part:
''The merchants of this country are as
dependent upon the bankers OF Europe
in their financial transactions with their
American neighbors, as they are upon
the ship-owners of Great Britain for
transportation facilities, and will con-
tinue to labor under those embarrass-
ments until direct banking systems are
established. The report Of the commit
tee of the Parliamentary conference pre-
sents simple and easy method of re-
lief and the enactment of the measure
recommended, will, in the judgment of
the conference, result in the establish
ment of proper facilities for inter-Amer
ican banking.
A bill has been prepared at the state
department to carry into effect the
recommendations of the committee. The
bill designates the United States dele
gates to the Pan-American conference as
commissioners to receive subscrip-
tions to the capital stock of the Inter-
national American Bank, books for
which purpose may be opened in Wash
ington, New York and other principal
cities in the American republics. AS
soon as 50,0 900 shares are subscribed, the
subscribers shall have the usual powers
to organize corporation which shall have
the same privileges now enjoyed by banks
generally. Its acquisition of real estate,
capital stock paid in. The corporation
| may DC oCSlSiduCu Wy thC SCClSIdty VI
the treasury a depository of public
money, and may be employed as the
financial agent OF the government. The
principal offices shall be in Washington
or New York, with the power to open
branch offices in the United States,
Mexico, and South and Central Amer
ica. The capital stock is fixed at $40,
100000, in 500 shares, which may be
increased, by a two-thirds vote, to not
exceeding $25, 100000.
Business may be begun as soon as 25
per cent. of the subscriptions are paid in
cash, but at least $5,0O0,O00 must be
paid in within two years. The board of
directors shall consist of twenty-five
persons, not less than fifteen to be citi-
zens of the United States. The stock
holders are made liable to the
amount of their subscriptions, but
no more. The corporation shall file
semi-annually, with the secretary of the
treasury, report Of the financial condi-
ton, and its affairs shall at all times be
open to examination by the officers of
the treasury department.
Provisions are made for the appoint
ment of receive and the winding up
of it's affairs, in case the 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 i'm
pairment good.