Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-27
NATIONAL BANKS
NAY co ABROAD
president'S Plans Said to In
cIude Law to Permit Run
Ming Foreign Branches.

"A uarl.Hu trade abroad are awaiting
,s.h 81 1t interest details of President
wilson. plan for legislation which shall
live American importers and contrac-
.,rs barking facilities needed to put
.rs~ -r 70 level with their competitors.
-T1oss ago long have been studying this
.rasrtaa believe President Wilson's
-r6m,-a -1 this effect. contained in MS
rHsmaut regarding Chinese policy
Ian mean but one thing, and that is the
amendment Of the national banking
laws g.. permit the establishment Of
branches of American banks III foreign
eoun,r'z-
This is the reform which every Amer-
han exporter and his customers
sbroaG 2 well have been long asking
b. such legislation was repeatedly
Recommended by Secretary Knox ami
Prrsid-ur Taft in their four years ef-
br, TO advance American trade inter-
ID, abroad.
I Tho export trade of the United States
.pv amounts to more than one thou
hnl million dollars. Practically all If
his enormous trade is financed through
hnking houses, In the absence of any
kmerican banks abroad. American ex-
sor.ers and their customers have no
kcourse except to 90 business through
b. banks Of other nationalities. This
feratez 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
ioH .njoying the greatest increase. the
ack Of American banks is felt keenly.
The business rivals of the Americans
--aat -. the English. German AMI
french eXporters-all finance their
'outl American business through
,ran.hes Of British, German and
french banks I'm South America.
through the banks likewise must pass
I Tie commercial paper of the Amer
ban trying TO sell goods in South
america. The competitors Of Ameri-
srs have been found to be without
cripple i'm using to their advantage an
be- confidential information about
mrr.r1u business transactions which
.sssarily passes through the foreign
auEs
Many man has found these leaks
trough the foreign banks to be dis
srous to his business ventures in
olrr America.
Likewise. the American branch bust
'-. aouses which are now being estab-
= .u I'm South American countries
a'" mo- friendly financial agent ct
anu in case Of difficulties The en-
s.ra~-ed American must go 10 he
anil of his competitors in time of tenn
iw needs. Could he call on an
m~..an bank interested in seeing him
7r,rer rather than in HIS downfall n =
@,rd De- certain OF much more liberal
( meut than is now the case.
Means Suggested.
r w1eI MeRoberts, vice president OF
National City Bank of New York,
p sggested several means by which
result promised by President WI
f'n-ghy be brought about. He IA
r. uf course, legislation which viii
rEf The establishment OF branch
..a states banks in foreign couu-
his is now prohibited by the. inter
'.#Uons which every controller. of
+ currency has put on the section Of
national bank law Of 1863. which
TIN. usual business of each national
N..ns association shall be transact 4 !
'ua Office Of banking house located |
b. place specified in its organic
'n er,ifcate'"
|. Is believed that this prohibition |
's .cidentaL rather than intentional |
.Nr.. McRoberts has suggested. and /
plan is looked on with great favor /
Washington. the creation of a new |
a>- Of banks which shall be privileged |
ldes Federal supervision to establish |
aneaes abroad and do an internd
PM. business. He would grant such |
lnNs the privilege of making time ac-
f.ance Of foreign drafts. The power |
lend credit and the amount Of out |
and.ng guarantees could easily be re- |
rle'ed, he believes. under Federal |
n,r01
Examination by Consuls.
Examinations could be conduct /
by consuls. Mr.. McRoberte sug-
s.s. S deputy examiners under the |
: nt bank examining system. Tns I
= Federal supervision Of the banks /
'a... Mr.. McRobeIts believes. prevent /
' 'anks from embarrassing the gov 7
emf in its foreign relations. Az /
plan Of accomplishing the sans /
pa, result would be to enact laws /
ling the extension of the priyi- /
OF establishing branches abroad :, /
sing national banks with sufficient /
'.al TO undertake international /
77ae subject to the approval of the |
#siry department.
JIM 4entally, it is believed such bdnas |
dat. reap great profits. The average /
lend yield of British banks in South |
.lfea is. according to the latest !
z'to-e figures, q trife less than NJ /
" per cent a year.
FINANCIAL WRITER HERE.
IS -EDnl Gould Homer vice president 7