New Britain herald., 1915-09-06
M'ADO0 GIVES
 IDEAS ON FINANCE
Establishment Of Federal Banks in South America Recommended

Washington, Sept. 6.-Secretary McAdoo yesterday transmitted to President Wilson his report of the proceedings and conclusions of the an-American Financial conference
 held here last May with representative
 bankers, business men and statesmen
 of the United States and eighteen
 Latin American republics in attend
 ance. MT. McAdoo, summarized his
 suggestions for carrying on the work
 of the conference 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 l the countries of Central and South America for the purpose of providing enlarged credit facilities, as outlined l in the first part of this report 'Second. That the government of l the United States provide promptly l the necessary steamship facilities by subscribing the capital stock of a corporation 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 $25, 900 to enable it to carry on the import 1 ant work it has undertaken and repre- 1 sent the United States in the meeting of the International high commission
 of all the Latin-American republics. 1 Fourth. That Pan-American ] financial conference be held annually l in the city of Washington, and that 1 the congress authorize the president | to extend invitations to the republics l of Latin-America to attend a financial conference in the citly of Washington during the year 1916, and that an ap-
 propriation of s5o,O0O be made for 1 said conference"
 Federal Banks in South. Tn support of his suggestion for the l establishment of joint agencies of | federal reserve banks in neighboring
 republics, MT. McAdoo says that ex- l tension of the credit facilities of this 1 nation in those countries will insure l to ''their and our advantage" He de-
 clares that the plan advanced during the conference here for the amend ment of the national bank act so that national banks could become stock holders in an independent bank which would do a foreign business is inferior to that he now proposes for 1 joint agencies of the reserve banks. '"The federal reserve banks" he | argues, "comprise in their member ship every national bank in the United States as well as a number of leading state banks and trust com- panies. They constitute a financial organization of unequalled strength and their operations in foreign coun- tries will be for the common benefit of all banks composing the system, l These agencies, in foreign countries l could, in addition to their banking business render great service to Am- erican business men and bankers by 1 furnishing credit reports and general l information about trade and finance | in the various countries in which they operate.
 Action Authorized.
 The federal reserve act, MT. 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 thse lines en- couragement by the board may