The Detroit times., 1915-08-20
A m e rio a n Business
Men Hampered By
Credit Facilities
START MADE BY
MILAN COTERIE
One New York Finan.
cial House Agrees
to Subscribe
BY HERBERT COREY
Copyright, 1918. By Herhsrt Corey.l

banking facilities are needed to
help American business men get
and keep the Italian trade. ] am
making no apology for having more
to say about this opportunity. 1t
isn't every day that even n nation
can pick up two or three hundred
million dollars worth Of business
Just for the trouble OF STOPPING. But
better banking facilities are not an
absolute essential. Americans have
been getting along pretty vel, un-
der present conditions. Germany
alone sold or bought more to and
from the Italians than does Uncle
Sam.
THE present banking arrange'
ment Is incOnvenient and costly"
explained one OF the leaders OF this
commercial community. I'VE pay
tolls to England or France when
ever We sell a bill of goods to an
Italian
There Is another far more dan
gerous angle to this situation which
viii be discussed later. For the
moment consider the percentage
that our rival trading countries OF
Europe have been taking on Ameri-
can trade. There are no Italian
American banks In this country.
Consequently American credits can
not be purchased directly.
England and France usually have
plenty OF American credits 20 sell.
So that the Italian buyer OF Ameri-
can goods buys credits on London
or Paris. The American seller
cashes these credits. The Lordon
or the Paris bank makes Profit.
Neither England nor France does
he business with Italy that we do.
There IS every reason why an Ital-
l.ian-American bank should not
merely do q good business hut In
Hnltely simplify trading for the two
parties. These facts were known
long before the war. Coniitions
have recently altered so that an
I'alian-American bank seems TO be
almost ? necessity.
Such bank Is in process OF or.
ganization at Milan. Some months
ago Consul Grout at that city called
together The men OF both countries
who are Interested In the American
| trade and an Italian-American
Chamber OF Commerce was organ.
lied. This body already has more
members than the British Chamber
Of Commerce, which Is = years old
A committee from this chamber be
| gan to consider the formation OF an
a number 81 prominent italians. OF
whom Guglielmo Marconi Is the
leader, were ut work on the same
plan. The two committees have
been consolidated, one bank in New
York City has agreed TO subscribe
100000 Ire, and there is a prac.
teal certainty that the bank will
become a reality. Progress on this
plan must necessarily be slow on
account Of the war.
There are other reasons why an
Italian-American bank would be OF
great value to those In the Ameri-
can trade. One Is that IL would
serve the convenience OF both par.
ties to trade transaction. To
take case In point: Some months
ago an Italian entered the rooms
of the American Chamber OF Com
merce at Milan.
Can you tell me n ! can get GER
tain goods in America" he asked.
II have always bought them in Ger
many. but my supply is almost ex-
hausted. must have more or lose
my trade
That was easy. The secretary of
the chamber put him In touch with
half dozen American firms that
made the needed goods. After the
necessary correspondence he placed
his order with one of these firms.
Then the American firm wrote to
Consul Grout to ask as to the finan.
cial responsibility OF the Italian.
That was an error, OF course. II
the American had been familiar
with foreign trade he would have
known that no consul Is permitted
to pass upon questions of that sort.
The consul was forced to refer the
American TO his banks or to COM
mercial agency.
I'm time" said the business man
who told this story. "the buyer got
the goods he wanted. n there had
been on American bank here the
whole affair could have been dis
cussed and settled by cable. Az IL
was the Italian buyer was put TO
80 much Inconvenience that he was
Disguised.
80 wish the war were over said
he. 80 that could get my goods
In Germany, as used to do. II Is
too dif1icult to buy from you Amer
leans"
Which leads to another important
point OF the banking situation. No
one here prctends for one moment
that the Germans will be kept out
OF this market when the war Is