The Birmingham age-herald., 1914-07-30

other lands to which they are exporting
 American manufactured commodities in
 large amounts, have been sent to Presi-
 dent Vanderlip containing expressions of
 warm approval of his plan. In answering
 these communications, he has substan-
 tially admitted that the purpose is now
 maintained by himself and his associates.
 Mir Vanderlip does not expect that the
 immediate profits gained by investment
 of this kind will be very large. but he is
 confident that the indirect advantages
 both to the institution and to the United
 States which will follow the establish
 ment of American branch banks will soon
 become great. This bank is not to be the
 only one which will undertake to esfab-
 fish branch institutions in other parts Of
 the world It is understood to be in con
 temptation of one or two of the larger
 Lanks of Chicago and also of at least one
 of the banks of St Louis to establish
 branch institution in other parts of the
 world. St. Louis and New orleans, which
 are cities likely to gain very large com
 mercial growth through the opening of the Panama canal to navigation are like ly to establish branch institutions by and by in several of the South American na- tions
 The New York and Chicago institutions which may hereafter establish branch banks will not confine themselves to South America. China is regarded as onering a very great opportunity for branch American banks, and there may be instl- tutions established in Russia, in Germany and probably very early at London. The London bankers are contemplating with some apprehension the possible loss of business which the establishment oi | American branch banks in London will | entail
 Trade Follows the Loans
 | The modern model now familiar to busi- ness men who have very large affairs Is l this: Trade follows the loans. At one | time it was said that trade followed the | flag, and it was always said In the | United States that trade followed the | rails But in world affairs it is now recos- nized that trade follows the loan and adequate banking facilities. Recently ir l China representatives of large American l interests met with some embarrassment l when perfecting terminal contracts b, I reason of the fact that we have no ad- | equate banking facilities in China.
 1 Indirectly soue of the larger banks ol 1 New York ans Chicago learned wha | the magnitude Nof some of the financia transactions behind which stand trade re 1 lations between the United States ant South America are. These transactions will be greatly facilitated, and at mucf | less cost, when they can be carried or 1 through American branch banks.
 | What Must be Done in Mexico Whatever the political point of view respecting our relations with Mexico ma,
 now or may hereafter be, there is onl, | one opinion held among men of larg' | financial experience or who are at thu head of great industries and who hav' alaready had some familiarity with condl | tons in Mexico There is no doubt tha | if there could be assurance of peace MT l Vanderiip and his associates would sooi 1 be persuaded to establish branch in | stitution in the City of Mexiso.
 l The view of business men of large af fairs in both finance and industry Witt respect to Mexico is this: There vii be no cessation from turmoil, from revo lution and general disturbance, until tn