Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-27
NATIONAL BANKS
MAY co ABROAD
Presidents Plans Said to In
cIude Law to Permit Run
nina Foreign Branches.

american trade abroad are awaiting
NTH great interest details of President
81 vi son plan for legislation which shall
n give American importers and contrac-
4 .--s banking facilities needed to pu.
. .-s7 on q level with their competitors.
r-osa Who long have been studying this
orss-sou believe President Wilson's
,-orfsa 10 this effect, contained in his
statement regarding Chinese policy,
IAN mean but one thing, and that is the
sqerdment of the national banking
nus -o permit the establishment Of
srsrcnes Of American banks in foreign
countries.
This s the reform which every Amer
lean exporter and his customers
a broad az well have been long asking
fo-. such legislation was repeatedly
commended by Secretary Knox AMI
& President Taft in their four years ef-
for. to advance American trade inter-
4s,s abroad.
The export trade of the United States
now amounts to more than one thou
sand million dollars. Practically all If
this enormous trade is financed through
banking houses. In the absence of any
American banks abroad. American ex-
p7rterS and their customers have no
recourse except to do business through
me banks Of other nationalities. This
operates to the great disadvantage Of
a American trade interests.
Lack Felt in South America.
In South America, which is the fed
in which the American export trade IS
b ror enjoying the greatest increase. the
81 ack ot American banks is felt keenly.
The business rivals Of the Americans
that is, the English, German and
N French eXporters-all finance their
South American business through
branches Of British. German and
French banks in South America
Through the banks likewise must pa
ali The commercial paper of the Amer
lean trying to sell goods in South
America. The competitors of AmerI-
"a cans have been found to be without
srrup.e in using to their advantage al
the confidential information about
American business transactions which
II necessarily passes through the foreign
banks
Many a man has found these leaks
trough the foreign banks to be dis
asrrous to his business ventures in
South America.
Likewise, the American branch bust
ness houses which are now being estab-
shed in South American countries
have no friendly financial agent at
hand in case of difficulties The en-
oarrassed American must go to The
bank of his competitors in time of tenn
porary needs. Could he call on an
American bank interested in seeing him
prosper rather than in his downfall, h.
would be certain OF much more liberal
rsatment than is now the case.
Means Suggested
Samuel McRoberts, vice president Of
he National City Bank Of New York,
has suggested several means by which
he result promised by President W.
sn might be brought about He ia
sors Of course, legislation which will
permit the establishment OF branch
United states banks in foreign couu-
RES
This is now prohibited by the inter
relations which every controller Of
he currency has put on the section Of
ne national bank law Of 1868, whieh
reads:
The usual business Of each national
banking association shall be transacted
ar the office of banking house located
IN the place specified in its organiza-
Ton certificate"
II is believed that this prohibition
Vas accidental rather than intentional.
Mr.. MCRoberts has suggested. and
plan is looked on with great favor
ar Washington. the creation of a new
ass Of banks which shall be privileged
a0der Federal supervision to establish
ranches abroad and do an internd-
+ oonal business. He would grant such
banks the privilege of making time ac-
esptance Of foreign drafts. The power
10 lend credit and the amount of out
standing guarantees could easily be re-
strcted he believes. under Federal
ontrol
Examination by ConsuIs.
Examinations could be conduct
20 by Consuls, Mr.. McRobert9 sug-
seSls' as deputy examiners under the
' eSent bank examining system. The
\ Sflet Federal supervision of the banks
would Mr. McRoberts believes prevent
D." banks from embarra ssing the gov
'Ament in its foreign relations. An
.aar plan of accomplishing the same
general result would be to enact laws
''hoEIzing the extension of the privi-
sse of establishing branches abroad &c
"-ung national banks with sufficient
7pHa. to undertake international
nance subject to the approval Of the
-7sury department
incidentally. it is believed such banks
'l4 reap great profits. The average
.aonc Weld of British banks in South
A"fa.a IS. according to the latest
'a-ao.e figures, a trife less than fl
vi pc. cent a year.
A