The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-24
SAYS BANKING POWER
MAY SHIFT TO THE US.
+. d. Hubert Of Chicago Be-
licvcs LOndOn'S Premier PO-
SitiOn Is Challenged.
DUE TO THE RESERVE ACT

CHICAGO, Jan. 23-Edmund n. Hubert
ce.presidcnt OF the Merchants Loan and
Trust Company. defended the Federal re-
rive act before members OF the Union
League club to-day and asserted that
I.oudon's position as the world banking
mower would he teopardized by the United
states at the conclusion Of the war be-
cause OF the act.
In referring to the Forgan- Rey nolds-
lewis controversy MIR. Hubert said the
.ramcrs OF the act intended to write II In
such way AS to make political control
Impossible. and he added, Il think they
succeeded
I'VE have been on thin ice so long it is
lard to realize we are now on solid
ground" continued MIR. Iiurburt ut ~
rue that under the present act reserve
banks can deal in a limited way III com
uorcial paper and 80 can go into the open
market but this was done to assist in
,Deping down interest rates in case OF pos
siblc bank combinations. II is understood
py the Reserve Board and bankers that
his is not for money making purposes.
Mr.. Hurlburt thought 1t OF little con-
.cquencc whether the reserve banks
armed dividends though he thought they
would. and predicted the greater loaninE
powers given to banks would more than
compensate for any loss Of dividends.
Mr.. kents Address.
Fred J. Kent. ce-prcsident OF the
Bankers Trust Company OF New York. in
an address reviewed the financial and
trade difficulties since rhe outbreak OF the
war In Europe and continued
AT present we are trying to replace
the certain markets which we had In
Europe for urcertaL. markets In South
america. II there were no war there is
some doubt as to whether such a change
would he beneficial t. this country. Ger
many. for instance has undoubtedly been
able to buy more largely Of our goods
because it was supplying It's own to South
America. We could not expect to take
away Germany's trade IN South America
and still have GU. exports to Germany
continue on the same scale. other things
neng equal.
AS the war has stopped our trade to
Germany. however, to a great extent we
are obliged to 90 to South America for
an outlet for our goods and South Amer
90 may have to come 10 us should the
var continue We consequently have no
real choice, but We must not forget that
10 We take away from a country its trade
We cannot expect 20 sell that country our
goods 10 the same extent as before
Competition will ultimately decide
which countries supply other countries
ot the world with certain goods, but such
competition should only be based upon
natural ability and resource of manu-
facturc and production and not upon
'orce The world must come TO such con-
dition ultimately, and each country Will
give that which II is best ht;ed TO give
and receive that which 1t is least able to
,oduce.
To Get Real Prosperity.
"While We must all strive for the
worlds markets IN legitimate way we
must not forget that there will be a sure
reckoning II we attempt to override such
markets. This country cannot have pros
perity to the detriment OF the whole
world. but the whole world can have
prosperity TO the great benefit OF this
country We must get away FROM the
narrow position that we have assumed
among ourselves and among the nations
IL We would be the great country that We
all desire.
1.-THE present war is partly the outburst
OF commercial Jealousies in which We
should take no part. and is a warning 10
ms that We can hes. strive for ourselves
by striving for our fellow man and BY
not attempting 10 build our own castles
upon his DEGRADATION. Men can work
side by side competing for the same bust
ness and still be friends, and commercial
war. while general, is not necessary.
Honorable and able competition cause
the admiration Of competitors, who are
only able to successfully meet such COM
petition and maintain their positions by
being honorable themselves. Commercial
wars merely mean competition carried on
with bitterness and unfairness and 1t is
doubtful II militdrism can he controlled
rntl the nations compete in proper