The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1915-09-09
NJ ADOO 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..
MoAdoo 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 COR
poration organized for the purpose OF
owning and operating the necessary
steamship lines.
Third. That the International
High Commission on Uniformity of
Laws be granted an appropriation Of
$4,000 to enable 1t to carry on the i'm
portant work 1t has undertaken and
represent the United States in the
meeting of the International High
commission OF all the Latin American
republics.
Fourth. That Pan American
financial conference be held annually
In the city of Washington, and that
the congress 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, and that an APP
preparation of $4,000 be made for said
conference" a8ts G..Ers.
In support of his suggestion for the
establishment of joint agencies of fed
eral reserve banks in neighbortng re-
publics, Mr.. McAdoo says that extern
sion OF the credit facilities of this ma
ton in those countries will inure to
'their and our advantage" He de-
clares that the plan advanced during
the conference here for the amend
ment or 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 companies. They
constitute 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
trade and finance in the various coun-
tries in which they operate"
The federal reserve act, Mr.. McAdoo
points out authorizes the establish
ment OF such agencies with the con-
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 1t. Entrance into this field
by the federal reserve banks, Mr. Nc
Adoo says, will not prevent member
banks from carrying on and enlarging
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 commerce would give them I'M
rivalled financial power"