New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-07-19
THE PENDING BILL
Thy TELEGRAPH TO TIE TRlBu'E.1

THE PENDING BILL
fBy TELEGRAPH TO TIE TRIBUHE1
Washington, Juiy ls.-The hill 10 nco'pornc Inv
International American Bank recently rep rt'1 Nv
/ chairman Dorsey from the House Committee on LAM"
inc and Currency j, exciting considerable interest anu
! there +. some prospect Of action upon IL at u,
! session, unless Congress, adjouinN az an cum, .
/ than is now generally expected. lhe p'''
came Of the report Of the Committee on bahn'"S ~
! III. international American Conference "a VIM" w
/ r,ittoc senior Ilurtad0 was Chairman. Inc w."
/ r,e,d,t,ps ~ the committee approved ny W
rotary Blaine and by President Harrison III "' 'P''"
/ me. age transmitting the report to congress
Nmoue the reason, given by senior lluri"do anu MS
colleagues IN support Of their rccommchu"'''' w.,
| these. That even after the establishment VI Do"''
mean, Of transportation the Increase Of co",'''o
ho,ycor American nations will be slow ana hl'"''S
! rc,orv ,,nIes, persons engaged in international com
rnercc shall have banking faciliti" VIM" 49, "
! came measure Ilherato them from inc P'" 100
/ r,orornIv of credit which Is now h'Id ny ''. '
| ~ London and the European continent "'', ,'"
,oc, MIGHT thu, he greatly extended even j '''o
| 80 -, irnuroycmcntS in transportation u"' '"o
| 80 ,r,.,n, If commissions now paid 10 E"'"f'""
| ho,Lcrs world be paid tO American OHuNV'' W NV
| chants Themselves. and thus Kept III al"
! ccpt,,,s Of fbs continent that " 'her' '"o'
/ 60 dor among the countries icpresented J." "' ~
/ er,,,c, any organized system Of bankers eN, "''e
,, O., instance draft, upon the United states
I or red
! - , ol,,,ipnble AT all In many OF the H"'No'' -
,,, ,,erlc, and in most " them are ~alahl' Only
! -, a discount below thc sterling e'i''
! manner drafts upon South ana ''h'ra1 N"''t ~
| n,,,ucaly unknown in the money m'rh''> VI -
| t,a, philodclpha, Baltimore, Ncworl'an', 'h'"S'
and uoston" that it !, for the interest u r"-"r''"
"''' -, ,,.r.r. to foster trade relations between
| -, .,d the several American nations ra'h'I "''"
| -, tl. American coHntrlc, themselves "''' "','
,,,s - the United states. dealing VII" Inv
! - south AID Central America Amos, ",'"l.' -.
! ,,ou arr. driven to The use of EhsI''" "'''" -.
| t4,h a commission Of "a OF per cent IS c"s'"''
arly paid. .,,,.,, nrercnt plans
! -, 10, discussed concerning the best means VI
! ,cut,tir- direct banking business between o'' ~
! ,., Your committee lns considered anu u'''''
| , number Of propositions relative - '"'
! -, hanks ny mean, ~ which the NatlohHi "o'
! ~ -. .houn afford financial facilities for inter
| American banking. such action In Your oo''h'
| Judgment docs not fan within the proper 'P'.'F
! -,.,,,,r,aut There is no reason however "h' 'o
! Govo, nents r.pre~encd ia this conference S"o"'" '
| generally charter banking corporations 10 go VS.
! hus,nc,, Of the class which Is no" ge"'r'', uo'
| the great banking corporations OF Lo''o"' ''"' a.
IN tho issuing Of circulating bank notes U"' i '"'
u-basc and sale Of llls Of cXchhne'' CON- o"''"''
,,.rc,ng on commodities generally, ana Tor t'' l>s'
- -, tonkcr-' letters Of credit 70 ala merchants ~
! the transaction 81 their business one oi ''' ~"
,cncnt. 20 be derived by all Of the "oVefh'n"" ~
! c..ontcd in tho International American ''ni''''''
! from the establishment Of such banh "o"'' W -
! no Investor. In the several countries IN u'"'''N'
-" -, -ecur,tios would have better means
| 49,, .,r which now exist for making such invest
| ments. , e,otc
| FOR example. South or Central Am'H,"n A.
| a,.u,t to Noat q foreign loan would feel i'o" =
| nondent upon a single combination OF s)'"'
| rrrorcaD banker, than at present There "ou" w
ring state
! ., a,plv for National loans, A. against s''H''
! .-ret to the mercy Of which said Borrowing "VN-
crprneut IS now virtually exposed. The same ""t'
god rs to all classes Of state AID mnni'PA sec
! tbs whatever. Latin American Investor" ""''" Inv
means more readily At command for t'e Ihv~'h'' III
49,, i,,.s,i..,,,,u # all cIl.-,.. Of North American
cr4ti.s and the investors 81 III" United oiAc' Womb
i., e,d mean. FOR tie invcstl cation Of AID Invest
r.n IN all clas4c, If sccurus issued by the states
Municipalities, or corporations Of Latin america,
In his letter transmitting the Tport 10 thc Frc'l-
| dent secretary Blaine wrote:
srhc foreign commerce II The Nations south OF the
Gulf Of Mexico aud the Rio Grard' amount annuilS
70 more than ~ 1O0OOo.OOo. At present. the P""lle
Of tho UuiOd state enjoy only meagre sla" 81 t.,
market but the action u TIE recent C"hi'rcu'' VIII
result. believe, IN the removal OF certain "'''i'"'
which now tend 10 oba7ct the expansion Of our trade
| one Of the most serious Of these obstacles Il the
absence Of a system OF direct exchange, and credits,
| by reason Of which the exporting ana importing
merchants of Tie United stttc,, engaged IN commerce
! Win Central and south Amercs have been compelled
10 pay the bankers OF London tax upon every uah'-
acton Last year our commerce with the countries
nth Of H. amounted to 3@-2.oO5oj1, Of which the
Imports Of merchandise valued at $i7lo57'"66.
and the import, IL specie and bullion were Al ,23d,
79l while our exports consisted Of merchandise valued
At s7I 03-lsI and $o,Go7,I70 IN specie and bullion
"of the merchandise imported into tn" tinted
states the greater part paid for by rmitianc',
10 London and cities Of the Continent. % cover
draft, against European letters OF credit. For tho
ne Of these credits commission Of . : Of per cent
J., cl-omarly paid. 20 that the European banks
| cujoycd a large profit upon our business, with Il
| minimum Of r-ll Th, system steadily results IN
o,sc, to our merchants In Interest and difference, In
| cychaugc. well a in commissions. These losses
would bc largely reduced by the establishment Of an
| international s. -t"m Of banking betwc'n the Amer
! lean republics. The merchants of tn, country are
a.. dependent upon the bankers Of Europe III their
financial transactions with their American neghbors
a., they are upon the shlpowncrs Of Great Britain
for transportation facilities. and viii continue 10 labor
under these emil -ncuts until banking systems
are established
In line with the foregoing recommendations, Rep
reScntatyc INT, Of Illinois, offered BILL which was
referred the Committee Banking and Currency.
Thtt committee has reported substitute which Is
now the calendar. The substitute Ia, been care
fully drawn, and special regard has been paid to the
ilp"i'S 'Hrt'0u'''' '''''''''" III i'''N''' ''''''
son, special 1t Is not proposed to involve
the United state, In any financial responsibility, but
only 10 give the proposed bank corporate franchise,
and 10 promot. public confidence by requiring that
ijh condition and transactions shall hc submitted 10 a
>crutny similar 20 that which Is exercised over
the domestic banking system
The following extracts from the admirable report
prepared by Chairman Dorsey to accompany the sub
| stitutc are Of general interest:
"The committee with the operation OF tic
Controller oi the Currency has incorporated into tho
substitute bin the very beneficial provisions Of the
National Bank act, requiring regular reports 10 be
MD with th- Department VI the Treasury, and That
general publicity bc gwen periodically through news
| paper publication a TO the condition Of Tire AFFAIRS
| III tie oipurit.uu. ana vcailp with the Controller
4 the tuiIttuCy and the secretary ~ the Treasury
!sll power to- and ali time, examine into tie
tirs OF che corporation, empowering these officers 10
! "a am time compel any impairment Of is capital
! -tocl - be- made good inhur "hrh the corporation
moy be would mp ~ by thc at provided lhe cor