Arizona republican., 1912-12-26

great development in agriculture. commerce and industry No provi- sion whatsoever was made for for eisn trade In fact. the laws for bade the establishment of American banks abroad. Today, as an instance European banks are firmly establish cd in South America and are active lv furthering there the interests ot European trade Practically all the ports of Latin-America. large or small, have them. Yet in our own sister continent you will not find d single banking institution bearing d North American name.
 American banks in foreign mar kets would be powerful aids to the upbulding of our commerce.; mani festly and for the subjoined reasons are they indispensable:
 First They would furnish a direct financial exchange
 Second They would provide a safe and efficient means of obtaining ere dit information. independent as to foreign merchants and impartial as to American exporters
 Third. They would correctly pres ent to foreign customers the stand ing of our own export houses. Fourth They would furnish capi-
 tai or credit at the foreign market.
 Fifth. They would, bring American financial interests in touch with for eign enterprises. which. if exploited. would create business for the Amert- can exporter.
 Four Billions of Foreign Trade. our foreign trade today amounts vearly to four billion dollars Amer ican goods now traverse the world. Tn some staples we control the for l eign supply There are no geograph- | ical barriers to our world markets. ! But what of our banking system 1 It is still circumscribed by the boun- i diaries of the United States. We, the ! wealthiest country in the world. have 1 no world credit We cannot control our gold supply. We alone of ali { civilized countries collapse periodi 1 cally under money panics.
 i Our banking system is unique. Un- 1 like. any other country. we have in- 1 dependent banks. They have no way i of cooperation. But complete bank | ing cooperation is absolutely neces-
 sary to control rising panics. Other 1 countries have proven this. Oui banks have demonstrated it, by being
 compelled in times of stress to ia! back upon their local clearing house ] associations, the only means-but a | crude means-of cooperation that VIC have. The necessity of cooperation l is Fundamental banking principle , It is not to be argued against. Bul aside from this theoretical truth, Wt /, have the obvious to guide us. They | do not have panics abroad; We do. | Again. it is only by cooperation
 and the consequent fixing of q uni i form rate of discount. to be raised
 or lowered as circumstances demand i that we can control the flow of golt If to and from this country This l! fundamental to international credit
 It is also banking principle.
 Broadening Business Credit.
 A second striking peculiarity of ou
 banking system is that we have r'
 broad discount market such as the! ' have in Europe. our banks are Tor
 bidden by law to accept bushes
 bills for discount. Instead they take | for instance. the business man promissory note. In other words merchant in this country who ha sold a bill of goods and wishes t realize at once on the sale, canno ! change this prime evidence Of eN change into d credit instrument. Ii 1 gets credit at his bank on his pape T promise tu pay" But this latte (sf sDStr,n,anf showing no tranSactiO to goods. is confined to the one pan that takes it. The makers aoliltY | pay is unknown at other banks ; this kind of credit instrument has n circulation powers whatever.
 In Europe on the contrary. tn