The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1914-11-07

THE HAsK.
u. S. Banks in
BY Frederick j
The community Of interests Of the
two Americas Is subject that has
been very much to the fore since the
outbreak of the war. The peaceful
aspirations OF the world at present
are confined practically to the guar
dianship Of the republics Of this
hemisphere, a matter which has
served forcefully to draw them to-
gether, and. moreover. they are de-
pendent as never before financially
and. commercially. One Of the move
inents which will accomplish most
toward fixing this closer inter-rela-
tionship Is that for the establish
ment Of branches in the several South
American countries by the great
banking houses Of the United States
1t has been predicted that one Of
the results Of the European strug-
gle would be the transfer Of the
worlds money market from London
to New York. Our bankers, however,
by profession a conservative people,
have refused to subscribe any en-
thusiasm to this prediction. On the
other hand, even they are willing to
see. as one Of the wars consequences
the two Americas transacting bust
ness with one another in complete
independence Of London's financial
aid. 1t Is accepted as foregone that
the dollar draft is to tNlpersede the
pound sterling draft In the West.
London for more than one hum
dred years, or since the shifting Of
the worlds financial center from
Amsterdam to the Thames, has been
the great clearing house Of the
Eplanet, where all international cred
its have been settled. During this
period, a draft on London has been a
business instrument employed by
peoples Of every nationality In the
settlement Of accounts with one an
other. Such draft is always given
preference over draft on Paris or
Berlin. because everybody can use 1t.
In the affairs Of finance, London has
held the tremendous position OF
reigning city.
1t is by reason Of this worldwide
financial prestige that London re-
tanned Its tight grip upon the sew
keral trading countries. Business
connections with German, French or
American banking houses were not
necessary, but it was imperative that
the banker engaged In the financing
lof international trade should have
Econnections in London, for the Lon
I'don bankers guaranteed the credits
of the world and kept international
freights moving from all parts Of the
compass between buyers and sellers
with remote or no acquaintance with
leach other.
London has been able to carry on
this vast business on little more than
$250,0OO 900 of gold reserve in nor
NAL times. It has financed the bus
siness of the world on stock Of gold
not equal to one-sixth OF that which
we have in this country. The United
States has gold stock double that
Eof any other nation. It has several
times the banking credit Of the next
richest nation, and greater natural
resources than any other land, with
the possible exception Of Russia.
Yet. along with other countries, the
United States has done It's export and
import business through the London
center.
So we have done our business with
South Americans. as with Europeans
and Chinese, through London banls-
ers. The two Americas have dealt
with one another in the terms of
pounds and sterling, and their trade
has paid Its percentage to the city of
London. Now, however, even the
bankers Of this country are willing
to predict that this situation is to
to cease. With the establishment Of
powerful banking relations with
South America. business is to be
wone in terms Of dollars, and pay
Iments are to be direct.
Some of the larger banks in this
country are planning to open
branches In the financial centers of
the republics to the south. Among
them, the National City aBnk Of New
York, one Of the strong banks OF the
world, has decided to open under our
new banking law branches at Buenos
Aires. Argentina. and another at Rio
de ,Janeiro. Brazil. It will probably
not be long before other of our larg-
er banking Institutions will fillow in
this lead and and before the pound
sterling becomes unknown to the
United Statesman American trade.
Conservative New York bankers
see in this move. aided by the fnan-
cial disturbance brought about by the
great war, the firm establishment in
New York City Of the western worlds
financial market. With SO much ac-
complished, 1t will no doubt follow
that New York bankers will 81 still
farther afeld, making their city the
worlds financial and credit clearing
center. And should the financial