New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-19

Of finance. the branch bank scheme APP
peals strongly and he is convinced '"d'
If will prove the greatest benefit 10 al
engaged IN the foreign trade OF IN
United States and TO those producers
whose goods find their chief or an Jill
portant share Of their market aproau'
10 Mr.. McAdoo will doubtless ran tne
task Of assisting Mr.. Glass in worKihs
out the details of this scheme, ana II
is a cause Of satisfaction TO the Pfesl-
dent that he has in his CABINET ono
whom he regards as especially 1tted 10
ndvise with the trainers of the ne"
financial bill.
The bill recommended by the Ma
tional Monetary Commission made pro-
vision for American banks in foreign
countries. but on "A different basis
The foreign American banks which II
pronosed would have been Incorporated
solely TO do business abroad and would
have been precluded from receiving de-
posits i'm this country or doing gen
cral banking business here. WINE
American banks would have been per-
mitted to acquire stock in such foreign
American banks. no bank could hold
moro than 10 per cent of the total issue
of such a bank. That was a radicaiy
different proposition from that OF the
4gtna nj " 7.
Glass.
Far from the least important behehl
which is expected TO accrue from the
system Of branch banks will be the
ability of American bankers to take
TART i'm foreign loans without specia'
assistance from the Department Oh
state. The history of the brief part
PLAYED by this country in the so-calieu
six-power loan to chin. is still fresh
in the memory of all interested in such
matters.
Secretary Knox, having become con-
WINGED that in order to conserve the m
nucnce of the United States in China 1t
was necessary for this country through
its bankers, TO become sharer IN ne
loan. was compelled to appeal to Ameli-
can bankers to take part of the pro-
posed bond issue. Before the negotia-
,ions were actually completed there
WAS a change of administration ana
Prcsidcn1 Wilson. in formal state
ment of his views. made ii clear that ne
did not approve the course of the pre-
ceding administration. whereupon the
bankers withdrew from the negotia-
lions and their share of the loan.
No Government Help Needed.
Opinion differs regarding the adNlsa-
bintv Of President Wilson's step ana us
effect ON American interes.s in China
but it is claimed there will be no dill
ference of opinion regarding the ad-
disability of American bankers being IN
position 10 share in such loan With
ont appealing to their government Tor
special assistance or protection. ii MI
GLASS; scheme works out as well as he
expects. il will supply this defect IN the
present system. and having made such
y loan. American bankers will have
their own representatives on the
ground 10 protect their interests and 10
insure the proper segregation OF inter-
ests and sinking fund.
In a less degree this scheme Will 1t Is
contended. assist in solving the finan-
cial problems in Nicaragua and Hon
duras for which Senator Knox sought
solution through the treaties sun pend
ing before the Senate.
The proposition for currency reform
has not gone far enough in the Senate
20 disclose whether or not majority
can be obtained TO pass bill which
has the general characteristics Of The
one outlined in The Tribune. The Dem
ocratic members Of the Banking and
Currency Committee. as well as thcii
colleagues in the Senate. are disposed
20 90 slowly and to examine the grouh1
carefully before taking any step. Al
nresent the members of the committee
are going over the information gath
cred by the Monetary Commission dno
the House committee. 1t Is believed
this information cannot be sifted fol-
al least three weeks.
When this is done ii Will be deter
mined whether more information IS re-
onired. II is expected. however thai
some hearings will be held by the Sen
ate committee. with a view 10 further
clucidation of some points in the testi-
monv taken by the Pujo committee
chiefly with regard to the extent tt
which the normal reserve may he
drawn upon in times Of stress.