Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1890-05-28
A BANKING SCHEME
Which Is to Aid lnter-Anerican
Commerce.
BLAINE'S LETTER IN ADVOCACY.

A Great Financial Institution for the
Building Up of Trade with Our Sister
Republics-Senatorial CONNIE mt on the
Bill to Stop Importations in TO Prohib-
itory States of Tanglefoot-The Idea
Extending to Oieomargarine Capital
Miscellany.
WASHINGTON CITY, May 1S.-The presi
dent sent to congress yesterday the draft
of bill to carry into effect the recon-
mendations of the international American
conference by the incorpo ratoin of
the International American bank.
The commissioners named are: John
B. Henderson, of Missouri; Corne-
Iius N Bliss, of New York William
Henry Prescott, of South Carolina; T. J.
Coolidge, of Massachu sets; Andrew Car
negie,of Pennsylvania; Clement Studeba-
ker, of Indiana; John F. Hanson, OF
Georgia; Henry c. Davis, of West Vir-
ginia; Charles r. Flint, of New York, and
NJ. NJ. Estee, of California. The capital
stock is to be $4,000, 600. subject to in
crease to SIS, 000, CO. The shares are to be
of 500, par value, each.
A Letter from Secretary b aine.
The following letter from the secretary
of state, accompanied the message of the
president:
ITO THE PREsIDENT:-Ihavet the honor to
submit herewith the report of the COM
mittee on banking as unanimoU sly adopt
ed by the International American confer
ence, recently in session in this city. 1t
was the wish of the conference that this
proposition, of such great intere It to every
American republic, should as promptly as
possible secure the earnest attention of the
congress of the United States
Obstacles To Be Removed.
"Tbe foreign commerce of the nations
south of the Gulf of Mexico and the Rio
Grande amounts annually to more than
$1,000, COCOON At present the United
States enjoys only meagre sha are of this
market but the action of the recent con-
ference will result, believe in the remov-
al of certain obstacles which now tend to
obstruct the expansion of our trade. One
of the most serious of these obstacles is the
absence of a system of direct exchange and
credits, by reason of which the exporting
| and importing merchants of the United
States engaged in commerce with Central
and South America have been compelled
to pay the bankers of London a tax upon
every transaction.
What We Have to Pay Europe.
LAST year our commerce with the coun-
tries south of us amounted to So, 00o, 057,
| of which the imports of merchandise were
| valued at SlS1, 05S, 900. and the imports OF
| specie and bullion were 81. 236 791; while
our exports consisted of merchs ndise val.
ued at 81 ,s3s, Isl and seas, 40 in specie
and bullion. OF the merchandise import
l al inrA ha he vi
was paid for by remittances tn London
| and the cities of the continent to cover
drafts against European letters of credit.
| For the use of these credits com mission OF
| three-quarters of per cent is customarily
paid, so that the European banks enjoyed
| a large profit upon our business with a
| minimum of risk.
| 4 Way Out of the Trouble.
This system steadily results in losses tc
our merchants in interest and differences
| in exchange as well as in commissions
| These losses would be largely reduced tc
| our merchants by the establishment of al
| international system of banking between
the American republics. The merchants
| of this country are as dependent upon the
| bankers of Europe in their financial
| transactions with their American neigh
| bOrs as they are upon the ship-Owners Of
| Great Britain for transportation facilities
| and Will continue to labor under thest
| embarrassments until direct banking sys
| TENS are established. The report of the
| committee hereto attached presents sim
| pie and easy method of relief, and the en-
| actment of the measure recommended
| will, in the judgment of the conference
result in the establishment of proper facil
| tiles for inter-American banking"