The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-08
SAYS YANKEES
ARE POOR BANKERS
Controller Ridgway Praises Do
nestle Advancement but Sees
Failure Abroad.

report, Controller of the Currency Ridg-
way, referring to $ the most marvellous
growth in the wealth and commercial
Importance Of the United States, says:
Almost every year all previous records
are broken in the volume of our internal
trade, our exports and imports. The peo-
pie Of the United States have become
the richest in the world. and the natural
resources of the country are so great
that this is sure to continue and increase
for many years to come. The amount Of
bank clearings and deposits and the mon
ey on hand in the banks increases in ev-
cry portion of thel United States at q
most remarkable rate. &teE}
In spite of all this, however, we do not
seem to be taking our proper rank and
position in foreign ]. and international
banking. One of the chief difficulties en-
|countered by all merchants and manufac-
turers In extendingsrtheir trade with for
elgn countries, and especially those Of
South America and Of the Orient is the
lack of American banking facilities and
the necessity of doing this business very
largely thru European houses. This ranks
next in Importance to the question of an
American merchant marine, as it is one
that has very great influence on the
volume and character Of our foreign trade
S..a5 Silver Handicap. 7" s::-
| I AS long as the United States were ex-
| perlmentlng with silver or a bimetallic
| standard that fact acted as handicap in
this direction, but, now that the gold
standard is firmly and irrevocably ,estab-
llshed' we should be able to take our
proper place in international banking
sactions. New York should become
more and more the: depository for inter-
national balances, and exchange on New
York be accepted more and more in all
commercial countries of the world. One
important reason why our people have
/ not been more aggressive and taken a
larger part in International banking bust
ness has been the same as"in many other
I lines or trade-that is, that we have been
too much occupied with our own domestic
/ business and there has been a grea ter
temptation to transact the business at
nome, Which was easy to do and promised
as great or even greater profits
With the accumulation of capital an1
wealth. this condition is greatly changed
ana there Is now in the United States
abundant capital and talent for this bust
Gagged IN handling foreign exchanges; some
OF them have large and successful foreign
aepaielnehts. In a measure, as thu
demand arises, facilities are beins
supplied, and the controller sees NJ
objection, but on the contrary man,
advantages, in having the larger an.
|, more powerful national banks encour
aged to ~ cultivate this business h,
granting them additional powers and au
, thority for doing So. =, =
Il Suggestions for Remedy.
There have been suggestions made tina
the organization of national corporation
should be authorized Z for the purpose O
conducting the business of foreign an,
:. international banking alone, but these d
: not seem to have met with much favor
ana It would appear to- be wiser polio
TO- utilize the weH-organized and stron
| national banks, which are already largel
engaged In this business. The contro1ie
believes that it,.wouldGbe wise policy an
= entlrely Just to, the banks to restric
thesea powers hto bgufsiaof5 large .capita
II located in the reserve cities. :. Many. q
I, them now have 4 we'll organized. foreig
departments and OFFICIALS familiar wit
this business, and the controller believe
that they are the best agencies now a
hand to extend and increase this yer
important business -.
The controller would, therefore, rec
ommend, in pursuance Of this policy, tina
national banks having a capital of $1,000,
ooo or more and located in the reserv
cities or central reserve cities be spe
| clhcally authorized to: buy and sell for
$ elgn exchange; to- accept bills drawn %
themselves, payable not to exceed fou
, months after sight, and to issue letters {
: credit; and also to- open and maintai
$ such offices, agencies or branches as ma
may be necessary to conduct this bushes
f in" foreign countries, Porto Rico, the Phil
ippine islands, the Hawaiian islands an
the Panama canal zone. ,.
1t is believed that this measure will ten
a to make closer the relations of the" Unite
y States with each of it's possessions, an
+ would be obviously to the advantage (
= both. The Increased sphere of our nation
L al life imposes new duties which, in SO ia
= as they relate to the great questions {
I banking and exchange, call for additions
I legislation; and the recomm endations cor
4 tanned in the foregoing are intended t
meet the necessities of our manifest obi
cations and 611tieS in