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
nina Foreign Branches.

"
.,t officials and others who have de-
I'D themselves to the expansion Of
u,srf.s1 trade abroad are awaiting
.5 great interest details of President
krtrson's ulan for legislation which shall
.rs American importers and contrac-
- banking facilities needed to put
IAN On level with their competitors.
E |r,os4 who long have been studying this
,ss-f1r believe President Wilson's
-,,,is4 I'D this effect, contained i'm ais
Il Element regarding Chinese policy.
an mean but one thing, and that is the
.~ardment Of the national banking
aus ro permit the establishment Of
ranches of American banks III foreign
ountries.
This is the reform which every Amer
han exporter and his customers
abroad a. we'll have been long asking
- such legislation was repeatedly
recommended by Secretary Knox and
president Taft in their four years eff
e,r 10 advance American trade inter-
n SIS abroad.
The export trade Of the United States
now amounts to more than one thou
sand million dollars. Practically all #
"a his enormous trade is financed through
n snk.ng houses In the absence of any
r American banks abroad. American ex-
r5r-erS and their customers have no
scoursz except to do business through
le banks Of other nationallties This
n aerates to the great disadvantage Of
n American trade interests.
Lack Felt in South America.
In South America. which is the fed
n which the American export trade IS
Il Bow enjoying the greatest increase. the
rs 5f American banks is felt keenly.
The business rivals of the Americans
that is, the English, German AMI
4 French eXporters-all finance their
= South American business through
q ranches Of British, German and
4 French banks in South America.
NTarough the banks likewise must pass
\ the commercial paper of the Amer
an trying 10 sell goods in South
f America The competitors of Ameci-
/ ans have been found to be without
E sup,e i'm using To their advantage all
le confidential information abou,
American business transactions which
4 recassar.ly passes through the foreign
aHks.
Many q man has found these leaks
trough the foreign banks to be dis
suous TO his business ventures in
South America.
4 Likewise. the American branch bust
hess houses which are now being estab-
shed in South American countries
ave no friendly financial agent 1t
baud .u case of difficulties, The en-
3grssed American must go to he
lns of his competitors in time Of tenn
p)r8ry needs. Could he call on an
American bank interested in seeing him
rospsr rather than in his downfall. n
ol.d be certain Of much more liberal
treatment than is now the case.
Means Suggested.
Samuel McRoberts, vice president Of
National City Bank of New York,
As suggested several means by which
- result promised by President W.
might be brought about He ia
US. of course, legislation which will
-m.t the Enlistment Of branch
Mite. states banks in foreign coun
r.-s.
This is now prohibited by the inter
citations which every controller OF
he eurrency has put on the section OF
De national bank law of 1868 Will
eads:
The usual business of each national
7nhjng association shall be transacted
The office of banking house located
2 the place specified in it's organiza
ION certificate"
1t is believed that this prohibition
as accidental rather than intentional
Mr. McRoberts has suggested. and
is plan is looked on with great favor
u Washington, the creation of a new
lass Of banks which shall be privilege
2nder Federal supervision to establish
branches abroad and do an interna
lonal business. He would grant such
banks the privilege of making time &C
oeptance Of foreign drafts. The power
--i'N 'AtAlt anu lIt dillpuHl VI Jul
standing guarantees could easily be re-
sFicted. he believes, under Federal
control
Examination by Consuls.
examinations could be conduct
ed by consuls, Mr. McRoberts sug-
sests, S deputy examiners under the
PRESENT bank examining system. The
strict Federal supervision of the banks
would, Mr. McRoberts believes, prevent
He banks from embarrassing the gov
eminent in its foreign relations. An
o,Aer plan Of accomplishing the same
general result would be to enact laws
authorizing the extension of the privi-
eye Of establishing branches abroad &c
7NStng national banks with sufficient
apltal to undertake international
nance subject to the approval of the
treasury department
incidentally, it is believed such banks
Would reap great profits. The average
.NIaend weld of British banks in Sout7
america is, according to the latesi
available figures, a trifie less than fl
'een per cent a year.
FINANCIAL WRITER HERE.