The Birmingham age-herald., 1914-07-06

conformed in every respect to the de- scriptions.
 Furthermore the completion of the Panama canal is certain greatly to in- crease our South American trade. The managers of one of the great mercantile houses in this city said this morning that the completion of the Panama ca nal would make it necessary for their house to prepare for largely increased trade with South American countries. There remained, however, the establish ment of the especial facilities for the providing of bills of exchange ana, Tn other ways, aiding Americans engaged in South American enterprises, facili- ties which can be furnished by Ameri- can banks alone.
 Last Winter within 8 short time alter President Wilson gave his approval to the new national banking law, Frank A. Vsnderlip, president of the National Clty bank, made what seemed to be a sudden for it was certainly very hurried-trll to Europe The incident attracted the attention of bankers all over the United States, and 1t WAS observed at the treas ury department at Washington. One of the surnlses to explain this sudden de- parture was based upon the alleged de- sirability for personal conference between Mr Vanderlip and MT. Stillman, chair man of the board of directors of the Ma tioial City bank who has been soiourning for two CT three years at Paris. It was pr esufned that at this conference de- cision would be reached whether or not the City bank would make application for n embership in the lew national bank system, and then announce the support of the new system. This surmise could not have been entirely accurate, for 1t has been since learned that there was at no time doubt on the part of the City bank management of the wisdom of it's cordial acceptance of the new national banking law and its constant cooperation with the government in the organization of the system and it's immediate operation after orga ganization.
 Many times leaders .n the financial dis trict have confessed hat they wondered whether the chief purpose of MT. Van derlps sudden visit to Paris was dis oGssion with MT. Stillman respecting the expedieney of taking early advantage of that provision of the new national bank ing law which permit an institution which has a capital and surplus of not less than $1,oo0,o00 to establish branches IT foreign countries in case the federal re- serve board gives it's approval to plan Of that kind.
 Some thought that the National City bank might be contemplating the filing oi an application with the federal board fol permission to establish branchs bank ir London, and possibly n one or two places upon he continent of Europe. No intima. tion was heard that MT. Vanderlip con tenlplated the establishment of branch banks in South America
 Yet now fl is regarded as probable that MT Vanderlip only awaited the organiza. tion of the federal reserve board before taking the first step for the establish ment of branch banks in South Amer ica.
 There is little doubt here that the fed. eial reserve board will, speedy after its organization and probably gladly, permit the City bank to establish branches as soon as possible in Busnos Ayres and in Rio Janeiro, these orgaL izations probably te De followed by others in Chile and in Peru.
 The Chief Reason
 Willie it is regarded as undoubtedly true that President Vanderlip and his as- sociates arc anxious to render service to American business and to stimulate a great expansion of trade between the United States and South America. vet .Eere IS also discovered another reason Tor this plan. It is not yet certain that under the new national banking law tht ger banks of the United States are go. lfg to be able to find as remunera five GIT plcyment for their capital and re. sources as they sound under the old pehklng law. No one pretends to predic, exactly what the earning capacity of the greater banks is to be under the new law But if large trade can be built TIT with South America then there can be lIentapie banking business assured fol nc larger banks and there seems to b, no doubt that it is ..hc req asonable hon, oi 1alrly good profits that has persuada, Adr- Vanderlip and his directors to max, carry applications to the federal reserv, LeaId Tor remission to establish branche, Tn south America, or course, it is ap parent that il profitable business can i, tiis way be secured this will mean great fl, ,iie, euseu trade between the United Stale. ana South American countries.