The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-13

that II contemplntes the promotion and
support OF the widest possible foreign
market for our normal trade In er-
portable staples. Furthermore. the
problem Is primarily a banking prop
lem, because 1t Is the duty OF our bank
ers to find the money to keep American
business moving in the largest volume
In which II Is possible to move II
proftably. Business support and CO.
operation are assured II the ankers dc
their part, and incidentally II might b
remarked that the assistance of gov
ernmental interposition Is neither asked
o desired.
In general the problem must be solved
by a large recourse to the bankers
money market, SO called, that Is, the
colossal lending capacity Of our ex-
Extraordinarily strong banking position.
All the tokens OF II are that for several
years to come the bankers will be able
to expand credit for foreign uses with
out unwarrantably limiting the supply
available for domestic needs.
Only last month the Comptroller OF
the Currency, speaking of the national
banks alone, said tina including the
twelve Federal reserve banks, they had
IAN unemployed loaning capacity suff-
Client to carry for our W people at
market value the entire cotton crop and
half, II not the whole, OF the wheat crop
and the tobacco crop, which II In not, OF
course, conceivable tnat they will be
asked to do and also finance, until the
purchasers can pay In gold or It's equiva-
lent. n thousand million dollars or SO OF
exports OF foodstuffs or manufactured
products to be shipped to the rest OF the
world Add to this exhibit the capacity
of the State banks and trust companies
TO extend accommodation and II is mani
fest that the country Is copiously
equipped with the wherewithal to meet
the requirements OF the foreign exchange
situation.
As for the lines Of possible action It
ought to be obvious that the maximum
of advantage would be conferred on the
United States II our bankers could ar
range to grant practically the whole OF
the credits now sought In the form Of
acceptances of bills drawn on New York.
The large total Of dollar exchange thus
created would give the bill on New York
a table footing which would make II a
prime candidate for international credit
after the war. The Federal Reserve
Board has recognized this opportunity
in the new regulations promulgated by
It broadening the facilities for the re-
discount Of acceptances.
In n statement ~OmpanN tne new
regulations the board sets forth that
It's aim has been ito do everything in
its power to create for the American &C
ceptance. that is. dollar exchange, a
dominating position in the orld's mar
kets.- The statement says further
The United States should do now what
Europe has done for many generations
for the United States. that is to say.
the bank facilities OF the United States
should be used for the carrying OF i'm
port and export transactions for foreign
countries. Just as much as Europe up
TO now carried by its acceptances the
import and transactions OF the
United States"
Presumably the Anglo-French finance
mission will not press this point OF
American opportunity. Presumably II
will take advantage Of any indisposi-
ton our bankers show to make exten-
sivc acceptances which might render
II difficult. II not impossible. for the
London bill OF exchange eventually IA
recover its prestige. Still, 1t is To bs
hoped that a substantial portion OF the
foreign loans now arranged will he In
the shape OF acceptances.