The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1915-01-21
IBy John !. Arnold, Vice Presi-
dent of the First National
of Chicaqo.
DESIRES AN AMENDMENT
To the Federal Banking Laws
of This Country So as to
Bring That About.

a
ST. LOUIS. Jan. mendmen
to the federal banking laws whereby
American banking institutions could
unite with Americans interested in
oversee commerce In capitalization
of foreign banks, was urged by John
J, Arnold, vice president of the First
National Bank of Chicago. In an ;iti-
dress before the National Foreign
Trade convention here today.
He said Nv 4
"A method which has been given
some consideration is that OF organ
Eizing separate henking cor
porntion the capital of which
should be subscribed by Amefi
cans interested In the trade OF
countries where such an inst titution
Is to be established. Under our
present banking laws this would
necessarily be confined to Individuals
or corporations rather than banking
institutions.
.1t Is my jud dgment that q move
ment Of this character should be
launched by the banking institutions
of our land and / should like to see
this body endorse the recommends
ton that our banking laws be amend
led so as to permit American banking
institutions to subscribe not more
than an aggregate amount equal to
| five per cent of their respective cap
| ital toward the capita1izati tiot of for
|eign banks. And such subscription
should be carried by the banks con
Ecerned as an Investment, and In this
way, eliminate the necessity of hay
| ing foreign bank subject. to aexaini
nation 0 nthe part of American bank
Examiners, feature which rs OBJ
ectionable5 to foreig gners doing biisi-
ness with srcli q banking inst titition
The undertaking would also have the
advantage Of beink Co opefative IN
character and co zext xtensive III liabii-
| lfty, with reasonable Limitations 10
the latter, while where the pareiit
bank establishes a branch the entire
resources of the parent instit ton
might be placed in jeopardy by the
acknowledgement Of such branch or
branches. The subscribing OF capi-
Il tai, however, should not be limited
to banking institutions, but should
be open to American exporters and
of the countries in which the iiistifn-
iStVHp hIS " Ue AUShteu. ~ ~ -.
During. recent months, a great
deal has been said. pro and con. viii,
regard to America making loans to
the belligerent nations. i think that
we all are agreed that the destrucz
ton Of life and property Is an eco
lnomic waste and that In q conflict
such as that which is now raging IN
Europe, the entire world will have
Ito help bear the cost, and the United
States OF America is quite an Import
ant factor of the world. It is there
fore a reasonable conclusion that the
longer the war is prolonged the
heavier will become our part Of the
cost. From an economic standpoint
we can only conclude that NAL king
loans to the beiligerent nations q
furnishing them with sfnews OF war
I'm my Judgment, therefore. 1t would
Ibe much wiser and saner proceed
lure to enlarge upon that which fi;ls
lrecently been done and supply tic
lcountries with whom we are seeking
trade esdevelopment with funds which
| they require for the development of
Such loans should be
made against property security. Will.
THE upbuilding OF the export and ifil-
lport business as the ultimate aim.
! European capital In the past has
been furnished to South American
governments and corporations for
the building of wharfs, railroads.
lship Hines and other industries. As
q result. European engineers were In
lcharge Of the work and in turn spec
flied the use of European mat teriaI.
and insofar as practicab bic. employed
European contractors. This chafac-
ter OF loans necessarily resulted in
benefit to Europe as we'll sas to Sotlth
America. Under the operation or
iour federal reserve act, we are now
placed In position where our credit
facilities are made elastic, and on
this account; I believe that the Time
iissmost propitious for American cap
litaI to seek mployment in this man
lnsr What appffe to South Amcri-
lea applies to the Orient tfaS wei L
II