Omaha daily bee., 1915-09-28
TRADE WITH SOUTH AMERICA
Conference Suggests Reserve Banks
Establish Joint AGENCIES in Lead
ing Cities of Latin Nations.
SHIPS AND CABLES ARE NEEDED


WASHINGTON. Sept s5.-secretary
McAdoo has 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-American republics
in attendance. Mr.. McAdoo summarized
his suggestions for carrying on the work
of the conference and improving the
/ financial and commercial relations be-
tween the participating nations. as fol-
lows:
! First. That the twelve federal reserve
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 ia
cilities. as outlined In the first part of
/ this report.
/ Second That the government of the
1 United States provide promptly the
necessary steamship facilities by sub
scribing the capital stock of a corpora
| ton orsanized for the purpose OF owning
and operating the necessary steamship
| lines
Third That the international High
Commission on Uniformity OF, Laws be
1 bIdHNtu an appropriation OF AEo,VV 10
enable Il to carry on the important work
/ it has undertaken and represent the
United States in the meeting OF the In
ternauonal High commission of all the
Latin-AmeIican republics
Fourth. That a Pan-American Finan-
cial conference he held annually in the
city OF Washington, and that the con-
gress authorize tho president to extend
invitations TO the republics Of Latin
America TO attend financial conference
in the city of Washington during the
year 1916, and that an appropriation OF
$50 0oV be made for said conference"
Advantage wiII BE- Mutual. Z
In support Of his suggestion for the
establishment OF joint agencies of fed
eral reserve banks in neighboTing re
publics Mr.. McAdoo says that extension
of the credit facilities OF this nation in
those countries will mure to their and
our advantage" He declares that the
plan advanced during the conference here
for the amendment of the national bank
act so that national banks become stock
holders in an independent bank which
would do a foreign business is inferior
to that he now proposes for joint agen-
cies of the reserve banks.
The federal reserve act, Mr.. McAdoo
points out, authorizes the establishment
of such agencies with the consent of the
Federal Reserve board and while the
banks cannot be compelled to take action
along these lines announcement by the
board may prompt them to it. En-
trance into this field by the Federal
Reserve banks Mr. McAdoo says. will
not prevent member banks from carrying
on and enlarging the business they are
I At. g. ls,,N 4,
capital and resources of the reserve
banks utilized for the extension and pro-
motion of commerce would give them
lmrivalled financial power.
Transportation is Problem.
THE question of adequate steamship
facilities says Mr.. McAdoo, lis funda-
mental and underlies every other. question
concerning our trade and future relation
| ships with the Latin-American republics
The quick and effective solution of this
problem Is for the government of the
| United States to put itself behind a ship
ping enterprise so that the necessary
financial support to make II successful
will be assured. We can not expect prl-
vate capital I'm this country to engage
in this essential undertaking. 1t is too big
at the outset for private capital"
/ Secretary McAdoo supports his con-
tention by saying that steamships OF the
sort he proposes could he used as naval
auxiliaries in time of war. lie says the
/ Navy department has informed him that
in order to bring the United States navy
TO its maximum usefulness and efficiency
/ in war time there is need of 400 merchant
/ vessels of approximately 900 gross
tons and in addition about 324 vessels OF
! 156 tons each 10 be used for mine sweep
! ing in case the coasts are invested or
visited by an enemy. Only a small por-
ton of the larger vessels needed in such
! contingency, he says, are to be found
under American registry. The wise course.
he concludes, is for the government to
create the necessary naval auxiliary
! fleet and use It in time of peace in the
South American and other foreign trade.
Direct Cables Are Needed.
| Tho task OF the United States high
commission on uniformity of law, he
says, is both great and difficult and an
appropriation Hf $4,000 he thinks mod
osty sufficient. The subject OF direct
cable communications between North
and South and Central America, con-
sidcred of great importance by the con-
ference. the secretary declares, could be
studied by the high commission II the
appropriation is granted.
D The first conference. Mr.. McAdoo says,
gave convincing proof of the advantages
of such meetings and the recommendation
I for a $4,000 appropriation for a second
next year is made with the idea that they
may become annual affairs. The secre-
farv saws that it is the purpose to work
I'm harmony with the Pan-American
union.