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

~ ANklNG III South America mas
X its romance. Also 1t has had,
and still has. its profits, which
reach romantic figures.
roreign banking in South America
may be said to have begun a little
more than half a century AGO. 1t
was In 1852 that the London and River
Plate Bank was established in Buenos
Ayres. II had subscribed capita ~
approximately s7.500,O00, OF which
$4,000, 900 was paid in. II has now a
subscribed capital Of sl+6ooo0o, ~
which $500 900 Is paid up rs reserve
IL a fraction under $4,000 ooo.
During the early years when il was
spreading out and estsbllshins branches.
comfortable dividends were pad III
SOS Il was going along ~ dividend
rate OF 1s per cent. per ennum, with
occasional additional dividends in the
way Of bonuses. For EIGHT or ten years
hereafter II paid 10 per cent, then
L acquired the 30 per cent. dividend
rs an annual habit. with the plus sish
IN some years. Two years ago the
,hareholders were presented with a
.pecial bonus Of 10 shilings, or s2.lS.
share.
The net profits Of the London and
River Plate Bank last year were
life over $4,000, 900. while balance
~ $500 900 was carried forward. I've
deposits and current accorH: now range
from $4,000, 900 upward
The Anglo-soutn American Bank,
with a subscribed capitol ~ little
'ess than 500, 900. 900. Of which su.00O.O0H
: paid up. logs along NJ dividend rate
Il i2 per cent. Last yeor i's net profits
we're in excess Of 81 5l9oAo
The British Bank % South Amer.c1
i'm 1918 paid II per cen. on paid up
capital Of s4s66 900 The regular divi-
lend was l2 per cent. and IN" bonus
brought it up to II per cont Then
here was an additional bonus = per
,ent.. which made the actual return on
he capital invested 90 per cent,
The London and brazilian Bank also
paid a dividend Of 20 per cont. on
rapital of s6,OO0.0O THIS institution
was established a little over half
century ago on a capital ~ approXi-
inately s3650.O00. For many lars II
maintained conservative dividend rate
nf 10 per cent. but with the increase
If capital the rate was advanced until
n 1918. with the bonus, II amounted 70
20 per cent.
The profits Of these I'VE Leading Euro
lean banks Of South America have been
duplicated by other foreign banks with
less capital. The Bank OF Madrid and
,uenos Ayres. with capital OF s2,oOO,-
900, pays 16 per cent.
Some OF these institutions conine their
operations to the east coast countries
Brazil, Uruguay and Argentina. Others
cover the whole field.
On the west coas: there are other for
ign banks In Chile II has been said
that the loans have reached ten times
he capital. There have been instances
" dividends Of 40 per cent. hut from
- per cent. upward Is considered sat
isfactory. The same statement holds
rue as to Peru.
Ecuador differs from most OF the
South American countries In that the
Greater part OF the banking funds are
native capital The Guayaquil banks are
practically independent of the European
chain system. II IL considered a poor
YEAR when they do not pay from l6
10 20 per cent.
Bolivia has some foreign capital in the
form OF branch foreign banks, but the
tendency there Is tn encourage the ma
live institutions. The Bolivian Bank of
the Nation is In process of re1rganiZa =
ton. The authorized capital Is $50 900 =
900 The Government propos 10 take
100. 900 shares and to name three out
Of the seven directors.
Colombia has not much foreign capital
invested in her banks. The disordered
currency and matters OF a political char
acter have discouraged the establish
ment OF European banking institutions
Recent events indicate that American
hanks may occupy the Colombian field OF
connection with the rehabilitation OF
the national finances.
Generally speaking. the progress ot
banking in the South American coun-
tries has been coequal with their ma
terial progress.
The Argentine Republic. which has
had the greatest material Advancement
has also shown the most marked prog.
ress' in banking. This applies 10 do.
nestle institutions as we'll as to the
foreign banks.
At the beginning of tho present year
there were about $50 banks In Argen-
tina. with a total paid up capital oil
$3.50, 10000 The total deposits were
approximately $3.50, 00o, 900. II Is In.