The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-01

teresting to note that Of This amount
| si93 500 600 was savings deposits.
The Argentine Government financial
| institution. which has some Of the
/ features both Of the Bank OF France
and OF the Bank Of England, Is known
az the Bank of the Nation. 1T Is No.
! 10 among the sixty hanks of the world
which have deposits in excess of 800
! 900 900 According to the latest report.
that for 1918. its deposits were $3.50 O0o. e
| 900
! The deposits Of the Bank Of France
for tho same year were reported as
/ Sl97 ,000, 600. The Argentine Bank of
the Nation was only s3,0O0000 below
the Dresdner Bank Of Germany whose
deposits are frequently cited as an
! illustration of German thrift.
/ The Bank OF the Nation is the Gov
eminent fiscal agency. and its vaults
/ hold the gold on which tn, Argentine
paper currency is based. This is known
rs the conversion fund. It has $50
branches throughout the republic It's
savings deposits are heavy.
When the disturbance in credits fol-
lowed the European war II was the
Bank ct the Nation with which the
National City Bank OF New York ar
! ranged for a mutual credit balance of
81 ,000,000 in order to facilitate exchange
between the United States aud Argen-
tina.
The preponderance Of British bank
ing capital In South America appears
from the names OF the financial insti-
tutions. II is the natural result OF the
fact that for three-quarters OF a CEN
fury surplus British capital found its
most profitable field for investment in
South America. not only In banks them
selves but in railway building and
other development enterprises and In
general trade.
When Germany began 10 60 after
South American trade she saw the need
OF banking facilities. and she therefore
proceeded to get into the banking bust
ness. The Banco Alcman Transatlan-
tico. or German Transatlantic Bank.
whose sphere OF operations Is on both
coasts. was organized with capital
OF approximately s5.00o,000. II Is in
reality subsidiary OF the great
Deutsches Bank Ct Berlin. It's share
holders are satisfied with dividends
ranging from s TO 10 per cent, since
they also reap decided commercial ad.
vantsges from the institution.
The foreign banks usually have been
organized with a special view to the
business OF the different European
! countries whose nationals are settled in
I the various South American countries
So II happens that there are French
banks. Italian banks, Swiss banks, Bel
CLAN banks. German banks. Spanish
banks and English banks.
! A recent illustration OF the tendency
to form banks based on national in
terests was the organization of the
Dutch Bank of South America, with a
capital OF $500 900. which was sub
scribed chiefly in Amsterdam and Rot
terdam. II was backed by the shippinn
interests and by some grain firms which
handled part OF ArRentina's wheat crop
There Is not much direct trade between
Holland and Argentina. not one fiftt
OF that between the United S.ot.s anC
Argentina, yet in this instance the
Dutch were more enterpris!ng than th'
Americans. for they organized The banl
before any steps had been taken in tn,
United States for similar institutions.
The foreign banks IN the Soutl
American countries do not appear I,
excite opposition on the part of tn
native banks, nor IL there much com
petition with them. All the larger
foreign banks have branches which ar
enGblcd to do business on a relativel,
small capital.
Exchange on the European onancin
capitals in itself affords them YER,
satisfactory profit. For example, tn
trade between tho United States an
the different South American countrie
is now $3.50. 100000 annually. The usun