Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-06-05
National City Bank Endorses
Plan 10 Underwrite Debts
of South American Nations
in Need Of Capital.
CREDIT INTERCHANGE
WOULD RELIEVE BONDS
Secretary of State Suggests
Arrangement That Is Com
pIimented in Quarters USu-
ally UnfriendIy to NebraSkan,


Washington. June New York fin
ANGLERS, politicians and others who
read advanced proofs of the National
City bank circular issued today ex-
pressed something more than aston
ishment at the leading article, which
is entitled, "Mr. Bryan's Interesting
PROPOSAL.
Newspapers all over the country, SO
far as known, published story from
Washington last week telling of a
Pan-American conference dinner to
the South American diplomats at
which Secretary Bryan threw out a
suggestion. lin a personal and unof-
fetal way that the United states
government underwrite debts OF the
Latin-American republics Some re-
ports. however, merely declared the
secretary proposed that the United
States aid in financing the republics.
There having been no applications
for underwriting, so far as known,
and the proposal being distinctly
unique, the published statement re-
garding Mr.. Bryans suggestion re-
ceived little public attention.
Bryan's Real Proposal.
Now comes the National City bank
Y.
Bryan actually proposed.
The bank circular says that Mr.. Bry-
an cited instances, when speaking at
the Washington dinner, of govern
ments having to pay as high as per
cent for loans and some more than
that The interchange of credit pro-
posed by him was to be accomplished
by taking from a South American ma
A III Ia
in return a like amount of United
States bonds bearing per cent inter-
est The United States, however, was
not to make the l per cent difference
as a profit, but to create with that
difference a sinking fund which at
per cent would retire the South
American bonds in forty-seven years.
OF this the National City bank says:
''The scheme IS not only daring, but
brilliant in its conception, first be-
cause 1t goes beyond the conventional
government finance, and brilliant be-
cause 1t appeals to the imagination
as Offering something which may be
realized, although attended by diff
culties, and If carried through would
become an act of historic statesman
ship"
the suggestion to some of those which
have come from David-Lloyd George,
which, while they created astonish-
ment at first, finally brought him hom-
age from the British nation.
Under the roof of the treasury
building, in federal reserve board cir
cles and among business friends here
of President Frank A. Vanderbilt OF
the National City bank of New York,
no surprise was expressed at the in
dorsement by that bank of Secretary
Bryan's suggestion for the United
States government to underwrite thel
debts of South American countries.
Calls Bryan Financier.
BY these friends 1t was said today
that Mr. Vahder1lp regarded Bryan's
plan as "a great. constructive finan-
cal proposition" In picturing the sim
cerity of Mr.. Vanderlip's Endorsement
of Bryan these intimates told a story
of a private dinner in Washington,
last week, at which Mr. Bryan made |
a financial speech.
Gentlemen, said Mr.. Vanderlip' |
who followed the secretary of state, |
Mr.. Bryan has either risen to the |
greatest heights or fallen to the low
est depths; he has become q great !
llnancier"