New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-06
Secretary McAdoo Wants
Federal Reserve Agencies
Below ISthmuS.
ADVOCATES MORE
SHIPS FOR TRADE
Government, He Says, Should
Provide Capital for Estab.
fishing New Lines.


with representative bankers. business
men and statesmen Of the Uni'cI
States and eighteen Latin-American
republics in attendance. MIR. McAdoo
summarized his suggestions for carry
ing on the work Of the conference and
improving the financial and CONNER
cial relations between the participat-
ing nations as follows:
THAT the twelve Federal Reserve
banks establish promptly joint agen
cies in the leading cities of all the
countries of Central and South Ame.-
ica for the purpose Of providing en-
larged credit facilities.
That the government Of the United
States provide promptly The necessary
steamship facilities by subscribing he
capital stock of a corporation organ
lied for the purpose of owning and
operating the necessary steamship
lines.
That the international High Com
mission on Uniformity OF Laws he
granted an appropriation Of $4,000 TO
enable il TO carry on the important
work it has undertaken and represent
the United States in the meeting or
the International High Commission Of
all the Latin-American republics.
That a Pan-American Financlc'
Conference be held annually in th"
CITY of Washington. and that the Con
gross authorize the President to ex-
tend invitations to the republics o.
Latin America to attend financial
conference in the city of Washington
during the year 1916, and that an APP
Precipitation Of $4,000 be made for
said conference"
Cites Advantages OF Plan.
In support of mis- suggestion for the
establis hment of joint agencies OF we'd
cral Reserve banks in neigh boring re-
rubics Mr. McAdoo says that extern
sion of the credit facilities of this ma
ton in those countries will inure 70
their and our advantage He de-
cares that tho plan advanced during
the conference here for the amendment
of the national bank act so that ma
tional banks could become stockholders
Of an independent bank which would
DO Il foreign business is inferior to
that he now proposes for joint agencies
of the Reserve banks.
THE Federal Reserve banks" the
Secretary argues. comprise in their
membership every national bank in the
United States, as well as a number of
leading state banks and trust compa-
ries They constitute a financial or
cd - OIL I'd
their operations in foreign countries
will be for the common benefit Of all
banks composing the system. These
agencies in foreign countries could. in
addition to their banking business,
render a great service 10 American
business men and bankers by furnish
ing credit reports and general infor-
nation about trade and finance in the
various countries in which they oper-
ate"
The Federal Reserve act. Mr.. McAdoo
roints out. authorizes the establ lsh-
nent of such agencies with the con
sent Of the Federal Reserve Board, and
while the banks cannot be compelled
10 take action along these lines, en-
enlargement by the board may prompt
them to it. 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 arc now doing IN
foreign countries, but the capital and
resources OF the Reserve banks utll-
lied for the extension and promotion
of commerce would give them UNI
rivallcd financial power
Steamship Facilities Essential.
"The question of adequate steam
shin facilities" says Mr.. McAdoo, "is
fundamental and underles every other
question concerning our trade and tut
IRE relationships with the Latin-Arler-
lean republics. The quick and effective
solution of this problem is for the
government of the United States to put
itself 5ehind Shipping enterprise 50
that the necessary financial support 20
make il successful will be assured. We
cannot expect private capital In TINS
country 10 engage in this essent.a!
undertaking. 1t is too big at the out
set for private capital"
Secretary McAdoo supports his con.
tention by saying that steamships OF
the sort he proposes could be used as
naval auxiliaries in time of war. lie
saws the Navy Department has IN
formed him that to bring the United
States Navy to its maximum useful
ness and efficiency in war time there Is
need of 400 merchant vessels OF APP
proximately 1,172,000 gross tons. and
in addition about 324 vessels OF lou
tons each TO be used for mine sweeping
in case the coasts are invested or Wis
tied by an enemy. Only a small par
of the larger vessels needed IN sucn
contingency, he says, are to be found
under American registry. The wise
course. he concludes. is for the gov
eminent to create the necessary naval
auxiliary feet and use IL in time OF
peace in the South American and othet
foreign trade. ~,
The task of the United States High
/ Commission on Uniformity OF Laws,
the Secretary says. is both great and
dificult. and an appropriation of s25,'
600 he thinks modestly sufficient. The
subject of direct cable communica,,
lions between North and South anc
Central America, considered of great
irnnortanee by the conference, the Sec
ratarv declares could be studied by
- tiigb Commission il the appropri-
I alton is granted. -, ,.,
The first conference, Mr. McAdoo
saws gave convincing proof OF the ad-
vantage of such meetings. and the
recommendation for $4,000 approo-
priation for a second next year Is MADE
LII the idea that they may become
/ WIN The Sacra,arv saws