The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-03
Finance Takes a Step Ahead.

in Wall Street. despite the atmosphere
OF opaque depression with which that
interesting place is supposed to he sur
rounded. From no other part Of the
country has there come lately an an
nouncement containing 80 much of opti-
mistic business purpose as that which
is disclosed In the informal statement
Of the National City Banks plans for
the establishment of branches and agen.
cies in South America to promote the
growth Of the Pan-American trade rela-
lions, carrying with it logically a de-
tween the North and South American
peoples
Here Is proof Of the most practical
character that Wall Street Is not alto
gether the abode Of rcactionary spirits
which politicians pretend to see there.
Anything but an effort to dlscredit the
policies Of the Wilson Administration is
implied in the contemplated investment
of capital to assist the expansion OF
commerce between the two Americas.
On the contrary the project in question
makes use of what is likely to he the
principal achievement of the Wilson Adj
mlnistratlon. the Federal reserve act,
to do whatever capital can accomplish
in the direction of establishing the
foundation of a greater prosperity for
the country in a broadening Of Amer
lean markets.
This Is perhaps the most striking
immediate aspect of the city Banks
proposed undertaking. Moreover, the
enterprise is conceived in terms Of
service to American business which is
not TO be measured only by the POSSIBLE
ity OF banking profit that may accrue.
What else does this exemplify than the
idea which Mr.. WILSON has exalted
in his proclamatons of opportunity for
American trade and industry?
For the rest the broader relations of
this South American branch bank and
agency scheme are those which appear
In its response TO the steadily increns-
Ing demand Of American merchants and
manufacturers for u provision of bank
ing facilities which will enable them to
compete on even terms in the Argen-
tine. Brazil and other South American
countries with European manufacture
crs and traders. Every foreign trade
convention held in this country of late
years has ended in the conclusion that
/ South America offered the most hopeful
( field for commercial cultivation, but
| that little Roadway could be made with
out II banking organization which
would permit exporters and importers
to adapt themselves. AZ have European
| traders. to the trade and financial Gus.
toms of Latin America.
This seems 10 be notably propitious
| time TO make the beginning Of those
banking relations with South American
countries that have long been desired.
| Up to year or 30 ago II boom prevailed
In the principal South American coun-
tries which had been inflated with Eu-
ropean capital. To-day depression, fol-
lowing heavy liquidation, has succeeded
an exaggerated expansion in Brazil and
Argentina. Europe Is not purveying
capital lavishly to its former custom
ers. whose activities II had overstim-
ulated, and the entrance OF American
bankers into South America can be
more safely made than at any previous
time In recent years. Furthermore, II
will be effected nj n juncture when
Latin American business will he all the
more inclined to welcome new CONNER
cial friendships, backed by large poten-
tlal supplies of fresh capital. which Ia
greatly needed for the exploitation OF
South American resources.