The Washington herald., 1913-03-25
WILSON PLANS BANKS
ABROAD, is BELIEF
Presidents Policy for U. S. Trade Ex-
pansion Reported to Include
Change in Fiscal Law.
OUR TRADE AT DISADVANTAGE

Government officials and others who
have devoted themselves to the cNpan-
sion of American trade abroad are await
Ing with great interest the details or
President Wilson's plan for legislation
which shall give to American exporters
and contractors the banking facilities
- they need to put them on level with
their foreign competitors.
Those who have long been studying
this question believe that President VII
sons promise To this effect. contained in
his statement regarding Chinese policy.
means the amendment of the national
banking laws to permit the establish
ment of branches of American banks IN
foreign countries. This is the reform for
which American exporters and their Gus
toners abroad as well have long been
asking Such legislation repeatedly was
recommended by Secretary Knox and
President Taft in their four years effort
to advance American trade interests
abroad.
The export trade Of the United States
now amounts 10 more than $l.Wl.1hnOn.
Practically all of this enormous trade
is financed through foreign banking
houses In the absence of any American
banks abroad. American exporters and
their customers have no recourse except
to do business through the banks OF
other nationaities. This operates to the
great disadvantage OF American trade in
terests.
Other Nations Have banks.
In South America. which is the field in
which the American export trade is NV
enjoying the greatest increase, the lack
Of American hanks is felt keenly.
The business rivals of the Americans,
that is, the English, German. and French
exporters, all finance their South Ameri-
of Igrit-
ish. German, and French banks in South
America. Through these banks likewise
must pass all the commercial paper Of
the American trying to sell goods In
South America. Tn" competitors of
Americans have been found to be with
out srruplc in using to their own ad-
vantage al! the confidential Information
about American business transactions.
Their banks offer them ready means !
for striking at their competitors.
Samuel NcRoherts. vice president Of
the National city Bank OF New York. |
has suggested the creation of a new class !
of banks. which shall be privileged un- |
der Federal supervision. t" establish |
branches abroad and do an interna tiOnal |
business. lie would grant such banEs /
the privilege Of making TIM arccptanCes 4.
Of foreign drafts The power to lend ,
cr, dit amd til" amount Of outstanding ,
guararhces could easily he restricted. he /
believes. under Federal control ENami- |
nations could he C"mdurt"d by Cunsuls |
Mr. NCRob"rr> suggests. as deputy eN-
aminers under the present bank exam
lining system Tie strict Federal super
vision OF the hanks would. Mr.. NC |
Roberts believes, prevent the banks from
enibarras assing the government in it's for
eign relations. Another plan Of accom-
pllshing the same general result would
he TO enact laws authorizing the extern
sion of the privilege of establishing
branches abroad TO existing national
banks with sufficient capital to under
take International finance. subject to the
approval of the Treasury Department.
Several American banking houses have