The Birmingham age-herald., 1914-02-02

minister the new law. After Mr.. Wander
lip spoke. some notifications of the law
We're secured which probably justified HIM
IN agreeing with his friend, Jacob Schiff,
who stated that the bill was s. i'er cent
good. Mr.. Sell represents those honk-
ers who are confident that the IS per
cent Of the bill which they 10 nc. ie-
gard as good will be eliminated by amend
ment shortly after the actual adrninistra-
tion OF the law and the trausser of Ire
national hanks of the United states from
the old 10 the new system huVe taken
place.
A Satisfactory Feature of the Bill
There is no feature of the uex national
banking law which is contemplated with
a greater sense of satisfaction tnan the
one which permits national banks. with
the cors'rt of the federal reserve loard,
to establish branch institutions IN Other
countries. This feature of the law is 10
prove advantageous not only to- 4\mei-
lean banks, but to Americans who are
engaged in International trade or COM
merce. The presumption is strong thas
branch banks of this kind Will at an early
day he established in London ny Amer
lean banks which have capital and re-
sources sufficient to justify the OPEN
ing of branch banks in London. There,
sooner than anywhere on the continent of
Europe, excepting possibly Hamburg or
Bssrlin. will be opened American branch
banks. Probably no ATTEMPT will be made
to establish branch institutions in Paris.
For. in the first place, France taxes these
institutions Willie Great Britain does not,
and in the second place, exchange upon
London passes current in Paris as readily
as do francs. Within a year or two,
branch banks will be established in the
far cast, supplementing one or two Amer
lean Institutions which do nci operate un-
4 - - l.
branches i'll the Orient. 1t is not the ex-
pcctation that branches will be estab-
lished at an early day in any of the
South American countries. although with
COZ tluous development of our COM
merce with South American institutions
OF that kind will be inevitable by and by.
The City Banks Action
When it was announced a day or two
ago that the directors of the National City
bank at their latest weekly meeting, had
given unanimous approval to the cooper
alton of the bank with the new system
by seeking membership in that system. 1T
was at once assumed that this action re-
fected the consultations which have re-
Gently taken place at Paris between Pres
ident Vanderlip and James Stillman, who
Is chairman of the board, and who has
for some years sojourned at Paris.
And 1t is also assumed that one of the
several reasons which persuaded Mr.. Still
man that this was the wise course TO
adopt was that 1t would make it practi-
cable speedily to open a branch institu-
tion of the National City bank in London.
That would tend to the fullflment of
purposes which Mr.. Stllman has been pre-
sumed to have had in mind. For when
he had within a few years brought the
National City bank from a position GER
tainly second to one and presumably
surpassed in resources and influence by
several national banks in New York city
to a pre-eminent position among American
banks ii was suspected that he purposed
taking advantage as far as possible of the
great opportunities which international
financing had created.
1t was sometimes said of Mr.. Stilman
that he looked upon the world as the
field for this bank. But under the old
national banking law it was impossible
to take good advantage of these oppor-
tunities The bank may now do so, and
the fact that other banks of New York
city which have sometimes been enum-
Grated among those which represent Mr.
Stillmans counsel and influence announced
that they, too. would ask to be admitted
to the new national banking system, 1t
was made certain that practically the en-
tire national bank membership of New
York city would speedily be numbered
with those of the nation which are to be
received in the new system The Second
National bank. whose president, William
A. Simonson, is vice president of the Ma
jional City bank, will, with the unani-
nous approval of its directors. apply for
admission. and the Lincoln National bank,
which has close affiliations with the Ma
tional City bank, cordially accepted the
recommendation of its president, Charles
Elliot Warren. that the institution apply
for admission in the new system