The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1915-09-09
MADOO PROPOSES
new CREDIT PLAN
Would Have Federal Reserve
Banks Establish Branch
Agencies In the Latin
American States.

Washington. Sept. 7.-Secretary Nc
Adoo today transmitted to President
Wilson his report of the proceedings
and conclusions Of the Pan-American
Financial conference held here last
May with representative bankers,
business men and statesmen of the
United States and eighteen Latin-Am-
erican republics in attendance. Mr..
McAdoo summarized his suggestions
for carrying on the work of the con-
ference and improving the financial
and commercial relations between the
participating nations, as follows:
First. That the twelve federal re-
serve banks establish promptly joint
agencies in the leading cities Of all
the countries of Central and South
America for the purpose of providing
enlarged credit facilities, as outlined
In the first part of this report.
Second. That the government of
the United States provide promptly
the necessary steamship facilities by
subscribing the capital stock of a cor
poration organized for the purpose Of
owning and operating the necessary
Third. That the International
High Commission on Uniformity Of
Laws be granted an appropriation Of
2 5000 to enable it to carry on the i'm
portant work it has undertaken and
represent the United States in the
AiS>1tibo VI ~ \ LIZ
commission of all the Latn-American
republics.
Fourth. That a Pan-American
financial conference be held annually
in the city of Washington, and that
the ngress authorize the president to
extend invitations to the republics Of
Latin America to attend a financial
conference in the city Of WASHINGTON
during the year 1916, that an APP
preparation of $4,000 be made for said
conference"
In support of his suggestion for the
establishment of joint agencies of fed
eral reserve banks in n%eighboring re-
publics, Mr.. McAdoo says that extern
sion of the credit facilities of this ma
ton in those countries will inure to
their and u advantage" He de-
clares that the plan advanced during
the conference here for the amend
ment of the national bank act so that
national banks could become stock
holders in an independent bank which
would do a foreign business is in
ferior to that he now proposes for
joint agencies of the reserve banks.
"The federal reserve banks" he ar
cues, comprise in ther membership
every national bank in the United
States as well as a number of leading
state banks and trust They
constitute a financial organization Of
~unequaled strength, and their opera
tons in foreign countries will be for
the common benefit of all banks com
posing the system. These agencies,
in foreign countries could, in addition
to their banking business, render a
great service to American business
men and bankers by furnishing credit
reports and general Information about
rad and finance in the various coun-
tries in which they operate
The federal reserve act, Mr.. McAdoo
points out authorizes the establish
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sent of the federal reserve board, and
while the banks cannot be compelled
to take action along these lines en-
enlargement by the board may prompt
them to it. Entrance into his field
by the federal reserve banks, Mr.. Nc
Adoo says, will not prevent mennber
banks from carrying IN and charging
the business they are now doing in
foreign countries, but the capital and
resources of the reserve banks util-
lied for the extension and promotion
of would give them I'M
rivalled financial power"