The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-08
'SCHIFP SAYS TRADE
RESTS ON WARSHlpS
Tells International Delegate,
Investors Must BE Sure
Of z. s. Protection.
FOREIGN N X URGED

FOREIGN BANKING URGED
The International Trade Conference,
It's second days session under the sus.
pices Of the National Association a,
Manufacturers in cooperation with N.
banking and transportation interest, Al
the United states at the Hotel Astor VA.
terday turned its attention to the nnsnc.
ing OF foreign trade. The present larl
of credit facilities was discussed, tina o.
tablishment of an American bank a..
voted to the upbuilding Of foreign trsA.
as contemplated In al amendment TO m.
Federal reserve act was
by several speakers. and the problem az
foreign investment brought in.
A report submitted by the conm,tt,.
on banking and currency of tho assocls.
ton definitely proposed the establishment,
OF an american Bank OF FOREIGN
Trade" This through its Offices through.
out the world. the committee sugges,sL
would handle all accounts and drafts N
and from foreign countries. issue le,tep
of credit, advance money on foreign A.
counts. gather information on the anan.
ella standing of buyers. and inve.tiraes
opportunities for the sale of American
goods and for American Investment,
This or a similar organization backed
by the resources Of the Federal Reserve
Bank was recommended boy John Clau.
sen. manager of the foreign department
Of the Croker National Bank. san
Francisco. n John ]. Arnold, ylosr
president Of the First National Bank q
Chicago. Mr.. Arnold suggested that the
already established foreign branches of
the National City Bank would make an
excellent nucleus for further devsloo-
ment.
Suitable Men Scarce.
Ernest e. Ling, manager of the IA.
eign trade department of the Nationsi
City Bank, explained the TREMENDOUS
burden which lay on the foreign bransh
banks In investigating credit and CON.
ditions, n the need Of trained men b
carry out tho work. Obtaining suitable
men. ne said, vas one OF the creates
difficulties in this field Of banking.
In h matter Of foreign invesumsue
tho two speakers were Mortimer l.
Schiff Of Kuhn. Loeb 4 Co, and i
Santihlano of tho Guaranty Trust Con-
pany.
After expressing hope that with In
l CIO0o OL tl0 war JIb6 lINeStOIo OF I'M
country would become familiar enoush
with h South and Central American
countries TO nance a part OF Their
foreign loans that had previously bssn
handled by Europe. Mr.. Schiff said:
The American investor must fssl
confident that our Government will pro
tect his legitimate investments In for.
eign countries. 1t has been a great safe.
guard TO the European investor to know
that II a foreign country failed 10 1--we
up to tn engagements his GovNrnmsn.
was not only ready but would back him
up automatically ard even otherwise IN
enforcing his Just Demands
"The courts are not open to intena.
tional financing. as in the case Of cor.
porate enterprises. and warshlps mus,
unfortunately take tho place of receiv.
erships and foreclosures. Until we can
feel certain that u Government will
maintain h rights OF American citizens
who have made legitimate investments
in foreign countries It 10 hopeless 70 try
to create here a real market for for.
eign securities.
Experiences IN MEXICO.
Experiences such az American !nvss
tors hav had In Mexico. where appar
entity nothing has been done n safe.
guard their rights. not even 20 the eS.
tent OF seeing that customs duties spec!a.
cally pledged TO b~ondholders have teen
made available for them. do more 10
militate against foreign investments by
our public than all tho talk OF foreign
trade and America "a tho ~~r,uL
financial centre of the world does 70 ar.
courage them"
Mr.. Santihlano saw In fore. gn '-ve~
ments the best means OF protecting n.
country against sudden and maj
changes such as the present
TIE other SPEAKERS Of tho day c,-t
George Seeheck of the Guaranty T-iR
Company. Or, T.. T.. Pratt, chic, ~ n.
Bureau Of Foreign and Domestic Com
merce. Washington John Rassett Moore
former counsel OF the state D~par'
ment, n V. Gonzales. banking adviser
bf the National Association ~ Msrr'an
turers. Or. Pratt advised tie mRru'ar
tuners on policies In launching into ~.
eisn commerce. and Mr. MOORE ~
viewed the country's present ;rifA -e's.
tons with other countrlc-
In the evening a banquet was Helt q,
the Hotel Aston. with James \ Ems-
OF Washington az toastm, ester ~.
brazilian and Peruvian Amhassid'-'
w. :. Kies. vice-prcsiden' 81 che ".
tional City Bank, and Prof Jeremiah "
jerks OF New York University. Wore =.
l speakers. The conference will clos. ~
day with general speeches and reports
from Italian. Australian. Persian ar
indian delegates.
Mr.. Kies. after reviewing ''e s''S
reversal OF conditions TN THE %.a.''~
since a year ago. gave waFH..c e. p .
Establishments which would he ne, essay
uhnn thu. nrnSant o. "a t..#.- stHfN