The Montgomery advertiser., 1908-05-16
s. D. Scudder Of NeD York
 Talks to Alabanaa Bankers

'Tnternational Banking. discussed by s. D. Scudder, president of the Tn ternational Banking Corporation oi New York. before the Alabama Bank CTS Association, was one of the re- markable\ address of yesterday. Mir Scudder proved himself a man Of iet- ters as well as a man of business ana practical advice about q topic which he thinks has been too much neglected by bankers was enriched with phil osophic consideration of trade between nations.
 After defining International banking as those facilities which aid m tne exporting abroad of local products, ana the importing of foreign goods, or II desired in simpler language: oanktns facilities or the exporter and imporier' exchange, Mir. Scudder continued:
 'Is 1t not clear that Americans To- eated abroad must stand all the loss on such transactions? Is it not p,hiin phis tribute abroad must be taken into con sideration? You may ask: Suppose that an, American bank or its brancn coct tSis tnsrs you'd Tepg under our present prohibitiye trading laws the larger portion of all commls- sions must necessarily go abroad, pc cause in the absence of sufficient export trade from such place to the United States, any American bank or oranch there would itself be compelled to set. tie with its United States head-ofnce through Europe. The inverse argument also holds good in such a case: Where ever such a foreign country Is dls- posing of. or we will say clearing. most of its foreign goods, there also It VII, a 1t happens that London and Paris ana Berlin are today capturing the world most profitable trade and levying their banking tribute on every. poriion oir or n,yn ', merchants to trade and barter in the markets of the world. Leave the bank er entirely out of this deal. ana see how it works with the exporter who is rich and does not have to borrow | Supposing for the cotton you take abroad. you were permitted to bring | back some goods to be sold here at a ton shipment and the money 1t repre- sents be earning its way back so 10 | speak? But our high protective tar l if forbids the importation and so you | are compelled to ask that gold be sent | back, not only at great cost ana loss | to you in dollars and cents. but also Tn i ultimate loss of trading opportunity with the very people you have been | 'Is 1t to be wonderediat that the na- | tions of the world are more and more 1 resisting our efforts to take their 9oldA l Is there anything astonishing in the | recent worlds movements to become | some day independent of our products l Already we see cotton fields springinR up where none were thought possible
 before Wheat growing and cattle | raising are now going on in countries | which up till now we have thought ab- | solutely dependent upon our supplies
 I am not free trader. but want oul people to awaken to the danger that | threatens In our immense prosperity | brought about chiefly by our wonderful
 natural productiveness, (some say alsc by our great ingenuity, but that IS lul | iy counterhalanced by our. great ex. | trayagapce and wastefulnessl. we have forgotten the rule Of Live and let live. We are continually applying the law | of humanity instead of remembering that there must also be division.
 ''Not that I advocate any genera | policy which would create balances o | trade against us. Just the reverse: | want to see the balance of trade Tn l crease reasonably but naturally anC
 not artifcially in our favor. This I insist cannot result if we continue thu policy which our people are following | and apparently with more and nor
 blindness as the years gon on. l clain
 that the crisis which the phole. worl'
 is now passing through is Ndue .larEel'
 to our actions here in America during
 the past three decades. ,,,
 'fThe Impression has been gradual!
 gaining abroad that we want the earth
 and when you consider that we ar
 simply one member of a great insep
 thing to get into the heads of the rest
 Not sonly has this feelinl
 created a general resistance to those
 of our efforts which tend towards de
 nleting the others of their gold; hut
 as always happens in a closely alliet M
 family, the laws of human nature hay'
 nroduced limitations of our energy
 emons the rest of the family. Thi
 general movement to seize s.t am0untinI %SWn n
 III n.raad on inc part of every leading
 gtST nation, has strained the worlds credi
 and an confidence almost to the 6reakin' D, K n,
 point When each member r. of saie1 the fam m
 f,;i, gait at once there commences t
 spri spring @i up doubt in the mind f.e of eacI
 as as to the others ability aHs to keep t6s he !
 up. Then it is that Te . Wsi naSe of conn
 ginning of that withdraW,aa ,a,,na Ul % sonn