The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-04

a suggestion for the organization OF A
sort OF clearing house with the aid Of
several banks for the exchange OF credits
between exporters and importers engaged
| III Latin American trade was proposed
| yesterday by William T.. Peck mem
her OF subcommittee appointed by
James 4. Farrell. president of the United
states steel Corporation and at the head
OF the National Foreign Trade Council.
/ Inc working out OF the plan. 1t is be-
/ licved. Will accelerate trade with the Latin
I American countries
The scheme is To have such cooperation
between banks. exporters ana importers
! that merchant who wishes TO nav a
J certain amount OF money for coffee or.
/ dered in Brazil. for instance can 70 to
/ this clearing house with his cash. There
| ne can be put In touch with another
! exporter or merchant who has an order
| from Brazil for flour or some other com.
modify but Is unwilling to ship until he
is sure OF hts cash. by an exchange OF
credits the payment OF both bills can
he made without the necessity of the
transportation OF gold between the coun-
| tries.
Mr.. Peck. who Is the senior member
OF the hrm OF William Il. Peck & Co.
/ exporters OF lOi Pearl street. said yes
! terday chat the committee Of which he il
| member will hold a meeting in n few
! days and will seek the cooperation OF
bankers In wording out some plan to
Increase trade facilities between the
nted States and the Latin American
countries. lie said also that the clcarins
house idea is his own and he would ask
the National city Bank, which already
mas broken the way In establishing credits
with several countries in South America
to take the lead In obtaining the coopera-
ton OF still other banks. At present the
exchange OF credits Is considerable. hut
he would have it run up to 100000 900
or more
Mr.. Peck explained that some exporters
and importers were hartcr.ng among
themselves. but he believes that through
a clearing house "a bigger and NOR, salts
factory method OF exchange can he
developed. other exporters pointed out
that the establishment Of such sye;em
would lead the way TO making New York
y htg foreign exchange market. and with
the rediScount,ng Of foreign bills by the
Federal Rcsrrv, banks there would he the
same sale for foreign bills throughout
the country that there now is for COM
m,rcinl paper
one reason why the plan was suggested
by Mr. Peck Is that the tinted states is
buying coffee in large quantities from
Brazil and tn" helarc" of trade is against
~. II was said yesterday by !. r.
Schl"cta, manager of the Lloyd Brazileiro
steamship Line, tnit tho government OF
Brazil wanted bankers and importers to
send at least slO.00O000 to Brazil to
create a balance there Tor the buying Of
coffee.
Brazilisns point out that every year
the balance OF the United states IN favor
of Brazil for coffee aud rubber is almost
500. 900 900. That figure is consider.
ably larger than In 1912, when the United
states bough; from Brazil goods amount
ing to slil.9ii.sS5 and sold TO that
country merchandise amounting 20 sis,-
l0?.3l6.
The hope Of NJ. Peck AM other mer-
chants and bankers II tina; 10y the eStab-
lyhment of credit clearing house. or by
convention Of bankers, merchants eN-
portrrS and importers, arrangements can
be made by which American exports can
he rushed and the trade between o@tn
countries increased at much more rapid
pace than would be possible II the sys-
TEN of foreign exchange was LETT 10
various individuals to work out without
united effort
Morc statistics provided by merchants
Yesterday indicated how New York can
Ice made "a centre OF exchange Tor the
South American countries. II was eN-
ulsined that while Brazil is q big creditor
of the United States every year yet sh"
imports more by slo,ooO,ooo from ArGen-