The Washington times., 1915-05-25

banker at this stage OF our development
But the safety of all countries demands
that IL again England should find her
self forced to call upon her debtors for
instant payment there should be at least
one country strong and Independent
enough to shoulder a substantial por-
tion of tho burden.
independence Needed.
at should be the aim Of the United
States from now OH to move rapidly
toward entire financial Independence,
said Mr.. Warburg In conclusion.
Though in normal times TIM apSay closely con- con-
tinents ought to be so organized as to
form a distinct unit in times of emerg..
ency-a union whose TRANSPORTATION ana
even though all Europe should go to
war. An American union of this Kind
will prove of the greatest economic ad-
vantage for all nations concerned.
In his analysis of the Federal reserve
act, Mr. Warburg reminded the dele
gates that the Federal Reserve Board
has been advised by IT'S counsei that the
words importation and .exportation,
strued as conflninG these transactions
to importations or expectations into or
from the United States, but that these
transactions may also cover shipments
between foreign countries The United
States, therefore, shall he in position to
serve as bankers for our American sis-
ter republics, not only In their trade
with us. but even in their trade with
others"
This reference was to the provision
in the act relating to the disCounting
by Federal reserve banks of bills arts-
ing out OF transactions based on the I'M
portatiOn or expectation of goods.
Discuss Need of Ships.
Lack of shipping facilities was infor-
mally discussed by DIR. Garcia, OF
Co. pnnr nf r.
Rcntina. Secretary McAdoo also took
pa TT in the discussion, and appointed
special committee to consider the prop
lem The AMERICAN members OF me the
Federal Trade Commission; II. G. Rhett.
Charleston, n. c.; Paul Fuller, Now
York; f. G. Brown, New York; Georee
W. Norris, Philadelphia: Harry a.
York. Argentina, Brazil, Chile. urug-
uay, Peru, and Ecuador also are rep
resented on the committee.
The question of the formation OF an
International congress for the settle
meht of trade disputes was taken up,
and Secretary McAdoo announced that
tho matter will be considered by either
a special or regular committee
The congress today by a rising vote
adopted a resolution sent 10 the FRESH
dent Of Argentina congratulatng that
nation upon the celebration today or the
anniversary Of Argentine independcnce,
a.
that its interest centers in the question
OF transportation.
SO long as all of our commercial
transactions are through Europe, Hep
burn said, we can make little progress
in the southern countries. Congrss mas
mot gone far enough in furthering Amerl-
can U<gstry of ships. The last Admln-
istratioI has lowered tariff bars OF trade
and given us very excellent phhnB s9s-
tenn.
Mortimer Schiff, N~w York interna-
tiohal banker, told the congress what
bonds American investors preferred;
Rifles and dreadnoughts are not good
security" he said. Each nation should
finance It's own non-producttve enter
prises. There is no economy in snort
term financing, and the United states
cannot wholly replace the European
market"
| The afternoon is to be devoted to the
| first meetings of many group confer
| ences at the Shoreham Hotel Secretary
| McAdoo, presiding over the conference,
| suggested yesterday that number or
| committees be named to take 40 the
! problems of particular interest TO the
eighteen nations represented the sccre-
| tary appointing American business men
| to meet with each OF the elghteen
| foreign committees.
A 5 o'clock this afternoon, following
these conferences. the Argentine am
| bassador, Romulo s. NaOn, will enter
tain the delegates at the embassy. the
| occasion celebrating the one hundred
| and fifth anniversary of Argentine IN
| dependence.
Brilliant Reception.
The sessions of yesterday closed with
q brilliant reception in the Pan Amer
! can building last evening at "hich the
| Secretary of State and the Secretary
| of the Treasury were hosts TO olEclal
delegates and invited guests.
! Frank A. Nanderlip, president OF the
| National City Bank of New YORK, was
! T,,ft BOD at do a
gates. outs de of those in official life
who spoke at the afternoon seSs on yes
terday. He followed Secretaries Nc
! Adoo and Redfield, and Postmaster Gen
| eral Burleson, whose speeches were
| published in the $50 edition of The
| Times.
The Unied States is in a happy posi-
| ton to develop foreign banking follow
| ing the enactment OF the reserve act,
| said Mr. Vanderlip. This act has made
| fundamental differences in our banking,
has permitted national banks TO have
| branches In foreign countries, and mas
| done things which will be OF great ad-
| vantage in branch banking.
Requirements Reduced.
| This country and other countries
| should understand the position we are
| In concerning our reserves. The new law
| reduces the reserve requirements, and
we have. / should sayoffhand. 1885,
900 900 more reserve than the law re-
| cures Tor natlOIldls lltie 40
| similar plethora in the state banks.
! This gives us an enormous capacity Tor
! the expansion of loans. We can prob
| ably expand loans two or three billion
| dollars we may not be in state OF
| preparedness for war, but we are IN
| state of preparedness to expand loans
abroad and credits at home. This fea-
ture Of reserves aad the possibilities OF
foreign loans is avery important Item
In our relations with South America.
| Hitherto we have been able to find en-
ployment for our capital at home, but
under the new banking law and with
our growing wealth We will open a vast
field for foreign investment"
Mr.. Nandernp ls of the argentina
group" conference committee, which
will hold sessions daily. Other Ameri-
can business men who are meeting with
the representatives OF the Argentine
republic are Mortimer L. Schift,
Charles Il. Sheriff, and L. II. Gary, OF
New York. and +. A. Delano, the latter
a member OF the Reserve Board.
J Samuel Hale Pearson, OF the Argen-
tina delegation, suggested to the con-
ference the advlsabilty of appointing
a committee on fast navigation to
work out the questions of steamship
traffic which will come before the con-
ference.
Secretary McAdoo, acting as chair
man of the conference, announced that
sucn A committee would probably be
ari-