Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-28
NATIONAL BANKS
MAY co ABROAD
Presidents Plans Said to In
cIude Law to Permit Run
ming Foreign Branches.

--ant officials and others who have de-
-o.e5 themselves to the expansion Of
American trade abroad are awaiting
7;.h great interest details of President
Wilson's plan for legislation which shall
1--WE American importers and contrac-
ors banking facilities needed to pu.
hen on a level with their competitors
Those who long have been studying this
7uestt0n believe President Wilson's
promise to this effect, contained in his
statement regarding Chinese policy,
can mean but one thing, and that is the
amendment of the national banking
avs TO permit the establishment Of
branches Of American banks In foreign
countries.
This is the reform which every Amer
lean exporter and his customers
abroad as well have been long asking
nr Such legislation was repeatedly
commended by Secretary Knox AMI
President Taft in their four years ef-
',r- TO advance American trade inter
as abroad.
The export trade of the United States
now amounts to more than one thou
sard million dollars. Practically all #
.his enormous trade is financed through
banking houses. In the absence Of any
American banks abroad. American ex-
p0rters and their customers have no
recourse except to do business through
The banks Of other nationalities. This
operates to the great disadvantage Of
American trade interests.
Lack Felt in South America.
In South America, which is the fed
~ which the American export trade IS
7ow enjoying the greatest increase. the
ack Of American banks is felt keenly.
The business rivals of the Americans
that is, the English. German AMI
French eXporters-au finance their
South American business through
branches of British, German and
French banks in South America
Through the banks likewise must pass
III the commercial paper of the Amer
ian trying to sell goods in South
America. The competitors Of Ameri-
ans have been found to be without
ripple in using to their advantage Ill
Lee confidential information about
american business transactions which
aacessarily passes through the foreign
banks
Many a man has found these leaks
through the foreign banks to be dis
-'rous to his business ventures in
South America.
Likewise the American branch bust
as7 houses which are now being estab-
sled in South American countries
ave no friendly financial agent AZ
hand in case Of difficulties. The en-
HrasSeJ American must go to The
ana of his competitors in time of tenn
.oFaT needs. Could he call on 40
mercan bank interested in seeing him
asper rather than in his downfall, n
"1.d be certain OF much more liberal
7tment than is now the case.
Means Suggested.
"nJol McRoberts. vice president Of
National city Bank of New York.
suggested several means by which
result promised by President WI
might be brought about. He "a
~, of course, legislation which will
'mJ the establishment Of branch
'eG states banks in foreign couu
This is now prohibited by the inter
'H'lons which every controller OF
urrency has put on the section Of
national bank law of 1863 which
IDS.
ne usual business of each national
'AtnE association shall be transacted
the Office of banking house located
the place specified in its organiza-
IN certificate"
IL is believed that this prohibition
"S accidental rather than intentional.
AIR. McRoberts has suggested, and
plan is looked on with great favor
Washington. the creation Of a new
ass of banks which shall be privileged
ader Federal supervision to establish
anches abroad and do an internal
onal business. He would grant such
nks the privilege of making time &C
i eptance Of foreign drafts. The power
10 lend credit and the amount of out
8>anding guarantees could easily be re-
s.rcted, he believes, under Federal
ntrOl
Examination by ConsuIs.
Examinations could be conduct
u. by consuis. Mr.. McRoberta sug-
-estS, as deputy examiners under the
resent bank examining system. Ths
strict Federal supervision Of the banks
would, Mr.. McRoberts believes. prevent
banks from embarrassing the GOV
--.aant in its foreign relations. Az
~r plan Of accomplishing the sau7
-7heral result would be to enact laws
+I,aorizing the extension of the priv
eye Of establishing branches abroad &c
visiting national banks with sufficienC
aPtal to undertake international
nance subject to the approval of the
'easury department.
incidentally, It is believed such banks
"uId reap great profits. The average
dividend yield of British banks in South
america is. according to the latest
available figures, a trihe less than IF
'ero per cent a year.
FINANCIAL WRITER HERE.
nay mOnd Gould Hopper. vice president