The Savannah morning news., 1904-12-09

Years 10 come. The amount of bank
Slearlngs and deposits and the money
on hano IN the banks increases in ev-
cry portion of the United States at a
most remarkable rate. In spite of all
tnis, however, we do not seem to be
edAihg our proper rank and position
IN IA foreign and International banking.
one OF the chief difficulties encounter
cd oy all merchants and manufactur
ers in extending their trade with for
eigh countries, and especially those of
south America and of the Orient, is
the lack of American banking facilities
ana the necessity of doing this BUSH
ness very largely through European
houses. This ranks next in importance
TO the question of an American mer-
camille marine. as it is one that has
very great influence on the volume
and character of cur foreign trade.
Silver Handicap Out of the Way.
AS long as the United States were
experimenting with silver or a bime-
tallic standard that fact acted as a
handicap in this direction, but now
that the gold standard is firmly and
irrevocably established we should be
able to take our proper place in in
ternational banking transactions. New
York should become more and more
the depository for International bal
ances, and exchange on New York De
accepted more and more in all COM
mercial countries of the world One
important reason why our people
have not been more aggressive and
taken larger part in International
banking business has been the same as
in many other lines of trade-that is,
that we have been too much occu-
pied with our own domestic business
and there has been a greater tempta-
ton to transact the business at
home, which was easy to do and
promised as great or even greater
profits.
Plenty of Capital at Home.
with the accumulation of capital
and wealth this condition is greatly
changed, and there is now in the
United States abundant capital and
talent for this business, If it is given
proper encoura cement. Many of the
national banks are now engaged in
handling foreign exchange; some of
them have large and successful for
eign departments. In a measure, as
the demand arises, facilities are being
supplied, and the controller sees no
objection, but on the contrary many
advantages, in having the larger and
more powerful national banks en-
couraged to cultivate this business by
granting them additional powers and
authority for doing so.
There have been suggestions that
the organization of national corpora
lions be authorized for the purpose OF
conducting the business of foreign and
international banking alone, but these
do not seem to have met with much
favor and 1t would appear to be
wiser policy to utilize the well organ
lied and strong national banks wh.ch
are already largely engaged in this
business.
To Restrict Large Banks.
"rhe controller believes that it would
be a wise policy and entirely just TO
the banks to restrict these powers to
hanks of large capital located in the
reserve cities. Many of them now
have we'll organized foreign depart
ments and officials familiar with this
business, and the controller believes
that they are the best agencies now al
hand to extend and increase thls very
important business.
1.-THE controller recommends, in pur-
suance of this policy, that national
banks having a capital of $1,O0O,OOO or
more and located in the reserve cities
or central reserve cities be specitcal-
ly authorized to buy and sell foreign
exchanged; to accept bills drawn on
themselves, payable not to exceed four
months after sight, and to issue letters
of credit. and clso to open and main
tain such offices, agencies or branches
as may be necessary to conduct this
business in foreign countries, Porto
Rico, the Philippine Islands, the Ha-
waiian Islands and the Panama canal
zone.
1T is believed that this measure will
tend to make closer the relations OF
the United States with each of it's
possessions, and would be obviously to
the advantage of both"