New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-01
Branches in Buenos AyreS
and Rio To Be Estab-
lished at Once.
MOVE TO OFFSET ANY
BUSINESS LOSS HERE
Plan Service to Aid American
Trade, with New York
Men in Charge.

10 onset any possible loss IN buSl
ness that may result from the opera
ton OF the new banking law, the Ma
/ tional City Bank has decided TO take
advantage OF that section of the fed
eral reserve act which permits partici
patlng banks 10 establish foreign
branches The directors at a meeting
yesterday authorized President Frank
A. Nanderlip TO make application TO
: the Federal Reserve Board 10 organize
a branch at Buenos Ayres. Argentina.
ard al Rio de Jsneiro. Brazil.
r. o. Bailey. Assistant Secretary OF
the Treasury under the Taft admin
istration. now associated with the Ma
tionsl City Bank, and James r. Mar
tire, head Of the banks customs secu-
rites department, will sail for South
America within a few days to make the
preliminary arrangements for the
establishment of the two branches.
Soon after the Reserve Board has
given its consent the banks will be or
ganized.
Capital Moderate.
At the City Bank it was said yester-
day that the capital of the two branch
institutions would depend largely on
from the Federal Reserve Board. 1t
was stated. however, that it was the
City Banks intention to begin with
modest capitalization. The plans are
T that five men shall be in charge Of
each branch. Whether they shall be
taken from the head institution has
not fully been decided, but it is likely
that those in charge at first will be
chosen from the banks New York ros-
ter. or possibly from other local banks
The cities of Buenos Ayres and Rio
de Janeiro were selected, it was said,
because Of their rapidly increasing
commercial Importance, the latter be-
cause the United States is a large i'm
porter from Brazil and the former on
account Of our large export trade to
the Argentine 1t will be the purpose
Of the City Bank through it's South
American branches TO make itself gem
orally useful to American firms doing
business not only with the cities men.
toned but with the other countries OF
South America in which exporters OF
the United States are interested. To
this end agencies of the two branch
banks viii be established.
Universal Demand.
Officials Of the City Bank explained
Yesterday that they had sounded the
commercial community on their pro
posed venture and found practically
universal demand for branches OF
+ American banks in South America.
( The banking business there is now un-
der the control of Germany, England
France and Spain, and the New YORK
+ institution will probably find some OPP
nosition at first. Il is now the custom
70 finance the commercial TRANSACTIONS
between this country and the oou'h
American countries through Europe
J In doing business direct with the CITY
Bank period of readjustment VIII
have to be faced.
( officials Of the City Bank freely adj
mitted that the big initial outlay
necessary to establish its foreign
branches will result in losses from tne't
oneration for some time to come. They
I believe, however, that the ur'mste
benefit will be so great that the Ge-
cision of the directors VIII be 1uliy
indicated. II.
scheme will also embrace the flotatlon
of loans 10 South American countries
in noed of financial assistance, put
F. th;s question is at present regarded as
too remote for definite predictions.
The intention now is to satisfy the
commercial demand for an American
bank.
Other Fields to Conquer.
Whether other American banks that
GRO members of the Federal Reserve
evstem will follow the National City
I Rank into South America or go east
ward remains to be announced bo5h
Russia and China offer fertile helaS'
the former from a purely commere'ai
aspect and the latter from the stanq-
noint of loans for valuable couces-
sions.