The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1915-05-25
WOULD MAKE OUR BANKS
INDEPENDENT OF EUROPE
Warburg Says War Has Taught the
Nations Not Involved That They
Must Rely More On Their own Re-
sources
By Associated Press.

Washington, May 25.-Need for
greater reliance on their own resources
is one lesson which the European war
has brought home to the nations not
involved, in the opinion of Paul NJ.
Warburg, member of the Federal Re-
serve Board, who spoke to-day at the
Pan American Financial Conference.
Mr.. Warburg pointed out that when
the war began England, then acting as
banker for the world, felt forced to
ask for some of the vast sums due her
and that this request was reflected in
varying degrees in countries that were
in her debt. He spoke of the acute sit
uation which resulted in the United
States and elsewhere on this hemi-
sphere, and added:
"The lesson which all American ma.
tions will have to learn from last
year s experience, is that it is unwise
for the world to place its financial de-
pendenee upon any single nation; and
that those who can afford to do So
as for instance the United States,
should from this time on adopt policy
of greater reliance upon their own re-
sources. Those countries which cannot
rely exclusively upon their own re-
sources, should adopt a policy of di-
viding their risks of financial depend
ence as evenly and as widely as they
possibly can.
europe has done much In develop.
ing both the northern and southern
parts of this hemisphere. European
banks and bankers have been our
staunch and loyal friends in the past.
1t would be unbecoming in us and dis
loyal at the same time were we to for
get this or to attempt to profit from
their misfortune. But our own growth
and development and the unhappy fate
that has overcome Europe have COM
bined to bring about momentous
turning point in our economic history,
In the future the new world must lean
less heavily on the old
Though in normal times closely
connected with Europe, the American
continents ought to be so organized as
to form distinct unit in times of
emergency-A union whose transpor-
tation and credit system will remain
unbroken even though all Europe
should 60 to war;
Governor Hamln, of the Federal Re-
serve Board, told the delegates that the
United States never before was in the
position it occupies to-day to extend
its trade by ,ranting credit to thos.
nations which wish to be its customers.
Mr.. Hamlin said he would leave to
Others detailed explanation of how
the financial resources of the United
States have been strengthened by the
Federal Reserve act, but he ventured
the prediction that the banking system
of the nation through that act viii
become Zone of the Strongest systems
in the world''
He referred also to the establishment
of branch banks.
$ Branches of national banks have
already been authorized in Argentina,
Brazil and Panama and other coun-
tries said he, "and it is confidently
expected that a great development in
our trade relations with such countries
will result
Secretary McAdoo announced that
the committee on uniformity of laws
would consider the creation of an in
ternational commercial court to settle
matters arising out of trade disputes.
He also announced the personnel of the
committee which will take up the ques-
tlon of improved transportation facili-
ties to South America.
The conference by rising vote APP
proved sending the following cable
gram to the President of Argentina:
"The Pan-Ameriean Financial Con-
ference, assembled in Washington, ioiu
with you in celebrating this glorious
anniversary of Argentine independ-
ence. We extend to the government
and to the people of the republic of
Argentina our warmest congratula-
tions and our sincerest wishes for the
happiness and prosperity of the Argen-
tine nation.