Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-01-18

lects the amount from A. together
with the commission agreed upon
when the credit was opened. and re-
mits the amount to it's London banker
10 meet the draft. On all such trans
actions the London banker. while not
himself advancing any money, is ex-
tending q credit for which he charges
the New York banker a commission
The result is that we are paving trib-
Ute to European bankers amounting 10
an immense sum annually for the pur.
pose Of Financing our imports.
THE fact that London exchange is
more marketable generally throughout
the world than New York exchange Is
one Of the principal reasons why it is
necessary for US to issue credit upon
London instead Of upon New York"
That our defective banking laws
have been in existence for half a cen
fury. that they still continue to exist.
are matters Of wonderment through
cut the civilized world Perhaps the
simplest explanation is that our coun-
try Is comparatively so new. With ire
mendous natural resources back of US,
and with uneQualed enterprise, we
have gone ahead sweepingIy and re-
gardlessly. But with all our wasteful.
ness, it is doubtful if any one extraya-
gance equals in dire results the sue
cessiYe losses this country has sus-
tanned from our periodical money pan
ics,' brought on directly by our panic
breeding banking system.
American Methods Anticipated.
Our present system was founded on
war debt. 1t dates back to 1863,
when the country faced great crisis:
The federal treasury was empty; gov
eminent credit was, gone. The temp
tation to use banking for this purpose
was to great to be resisted Perhaps
IL was excusable then; but in neglect.
ing a revision of this system to meet
modern requirements, what a terrific
price has been paid!
In framing these banking laws no
thought was had for the country
great development in agriculture, com.
msrce and industry. No provision
whatsoever was made for foreign
trade. In fact, the laws forbade the
establishment of American banks
abroad. Today, as an instance, Euro
pean banks are firmly established in
South America, and are actively fur.
thering there the interests of Euro.
pean trade. Practically all the ports
of Latin America, large or small, have
them. Yet in our own sister continent
you, will not find single banking in
situation bearing a North American
name.
American banks in foreign markets
would be powerful aids to the upbuild.
ingrof our commerce; manifestly and
for the subjoined reasons are they in
Indispensable.
; First They would furnish a direct
financfal exchange. 49,, - ~
+ Second. They would provide a safe
and efficient means of obtaining credit
Information, independent as to foreign
merchants and impartial as to Ameri,
can exporters.
Third. They would correctly present
to foreign customers the standing OF
our own export houses.
Fourth. They would furnish CAPT.
tai or credit at the foreign market.
TtIIH i uSJ "Oulu DIIH6 AuSTlCdu
financial interests in touch with for
eign enterprises, which, If exploited,
would create business for the Ameri-
can exporter.
Volume Of Foreign Trade.
Our foreign trade today amounts
yearly to four billion dollars. Ameri-
can goods now traverse the world. In
some staples we control the foreign
supply. There are no geographical
barriers to our world markets.
But what of our banking system2 1t
is still circumscribed by the boun-
diaries of the United States. We, the
wealthiest country in the world, have
no world credit. We cannot control
our gold supply. We alone of all civ
ilized countries collapse periodically
under money panics.
Our banking'system is unique. IN
like any other. country we1haEe indie
=