The Washington herald., 1912-04-02
SHUSTER HAS AN
IMPORTANT JOB
ToEstablish Closer Financial
Relations with South
American Republics.
THE BENEFIT rs. MUTUAL

w. Morgan Shuster, lately treasurer
general of Persia, has become identified
with the National City Company, of New
York, and will shortly leave Washington
for South America, as the South and
Central American representative Of that
company. The National City Company
Of New York was the outcome of q move
ment which began some three or four
years ago to establish closer financial
and commercial relations between this
country and the republics to the south of
US.
1t has been a difficult matter TO find
adequate authority under which to or
ganize a bank or banks for doing busi-
ness abroad. There is no general Ru-
thority under Federal statutes covering
the subject, and what little powers are
to be found under the laws of the several
States are wholly inadequate. The Presi-
dent has twice recommended to Congress
the enactment of legislation that would
enable American banks to go into for
eign deals, buot nothing has yet been
done in Congress that would result in
giving such authority. At the present
time, notwithstanding our trade with
South America is considerable and grow
ing, 1t is generally financed through Lon
don; and 1t has been estimated that the
loss to American interests through this
Indirect means of settlement amounts 70
rs much as 100000 annually.
Develops Foreign Banking.
The National City Company was organ
lied under the business corporation act
Of the State Of New York, largely for
the purpose of bringing about eventually
the extension of American banking IA
rilities TO our merchants and others do
ng business in Mexico, and South and
Central America Altogether, the COM
pany has become largely interested in
these countries; and its investments re-
late very largely to bonds Of the state
of Sac Paulo, the great coffee producing
state of Brazil; bonds of the argentine
Republic: of the city of Lima, Peru; of
Costa Rica, and of Hayti. The company
is also interested in the Chinese finan
cial situation, and is one of the partici-
pants in the Manchurian loan.
Prior to the organization of the Ma
tional City Company, the stockholders
OF which represent a certain part of
the stockholders of the National City
Bank, of New York, the latter institu-
tiOn had already taken great interest
in the development of our foreign
banking facilities. This was particu
larly manifested in the great and sue
cessful undertaking of building the
National Railroad in Bolivia, in con-
junction with the Bolivian government,
from La Paz, the capital of that coun-
try, to what is known as the. Antofa
gasta Terminal This resulted in Civ
ing Bolivia. which is wholly an interior
state. an outlet to the seacoast by rail- |
road across the Andes.
For Closer Business Relations.
The National City Company is capi- |
talized at *1O.Ooe.OOO. and is entirely |
separate and distinct from the National
City Bank. although a large proportion
Of the stockholders of the latter are
also stockholders of the National City
Company. The entrance of the Ma
tiOnal City Company into the South
American banking field probably marks
an epoch in the history of bank
ng in the Western Hemisphere. 1t is
the first real effort made toward a COM
orehensive scheme for bringing into
closer financial relationship this coun-
try with the countries of South and
Central America. Mr.. Frank A. Van
ierllp, president of the National City
Bank of New York, is also president of
the National City Company
Shuster Well Equipped.
American field fully equipped for the |
important undertaking he will have in |
hand. Since the development of the |
critical situation in persia, arising |
from the Russian. English and other |
interests there, the personality and |
able and courageous stand taken by |
Mr. Shuster, Persia's somewhat youth |
full treasurer general, has attracted |
worldwide interest. He was born if !
Washington. D. C., in 1877, being now |
about thirty-four years old, and is the |
third William Morgan Shuster, his |
father and grandfather of that name |
also having been born in Washington. |
His mother, Caroline Won Tagen Shus- |
ter. is A daughter of the late Charles |
6. Won Tagen, at one time well known |
in business circles in Philadelphia.
In 1903 he married Miss Pearl Trigg, |
Youngest daughter of Col. H. c. Trigg, |
head of one Of the oldest banking houses |
Cf Kentucky. Mr.. and Mrs. Shuster have
two charming little daughters, aged re-