Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-06
Secretary McAdoo Advises the
President Regarding Trade
With Latin America.
STEAMSHIP FACILITIES
URGED AS IMPORTANT
Wants Reserve Banks to Promptly
Establish Agencies in Republics
and Enlarge Credit System.

| Four important suggestions for the de-
velopment and maintenance Of COM
| merce with Latin America have been
made to the President by Secretary
McAdoo of the Treasury Department
They are contained in the report OF tho
proceedings and conclusions of the
Pan-American financial conference held
here last May between representative
business men, bankers and Statesmen
of the United States and the eighteen
Latin American republics.
The suggestions of Secretary McAdoo
for carrying on the work Of the con-
ference and improving financial and
trade relations between the republics
of North and South America are epito-
miZed as follows:
First. That the twelve federal re-
serve banks establish promptly joint
agencies in the leading cities of all the
countries of Central and South America
for the purpose Of providing enlarged
credit facilities, as outlined in the first
Second. That the government Of the
United States provide promptly the
necessary steamship facilities by sub
scribing the capital stock Of a corpora
ing and operating the necessary steam
ship lines.
Third. That the international high
| commission on uniformity of laws be
granted an appropriation of $4,000 to
enable it to carry on the important
work 1t has undertaken and represent
the United States in the meeting of the
| International high commission OF all
the Latin American republics.
Fourth. That q pan-American fnan-
cial conference be held annually in the
city of Washington. and that the Con-
gress authorize the President to ex-
tend invitations to the republics of
Latin America to attend a financial
during the year 1915. and that an ap-
preparation of $4,000 be made for said
conference.
To Advantage Of Both.
In support Of his suggestion for the
establishment of joint agencies Of fed
eral reserve banks in neighboring re-
publics. Mr.. McAdoo says that extern
sion of the credit facilities Of this
nation in those countries will inure
to their and our advantage" He de-
clares that the plan advanced during
the conference here for the amendment
tional banks could become stockhold-
ers in an independent bank which
would do foreign business Is inferior
to that he now proposes for joint
agencies of the reserve banks
The federal reserve banks" he ar
CUES, comprise in their membership
every national bank in the United
States, as well as a number Of leading
state banks and trust companies. They
constitute a financial organization Of
tons In foreign countries will be for
the common benefit Of all banks COM
posing the system. These agencies in
foreign countries could, in addition to
= ~ lrtv
service to American business men and
bankers by furnishing credit reports
and general information about trade
and finance in the various countries in
which they operate
The federal reserve act, Mr.. McAdoo
points out, authorizes the establishment
Of such agencies with the consent of
the federal reserve board. and while the
banks cannot be compelled to take ac-
ton along these lines, announcement
by the board may prompt them to it.
Entrance into this field by the federal
reserve banks, Mr.. McAdoo says, will
not prevent member banks from carry
ing on and charging the business they
the capital resources of the reserve
banks utilized for the extension and
promotion OF commerce would give
them unrivaled financial power"
Urgent Need Of Ship Lines.
The question Of adequate steamship
facilities" says Mr.. McAdoo, us funda-
mental and underlies every other ques-
ton concerning our trade and future
relationships with the Latin American
republics. The quick and effective So
luton of this problem is for the gov
eminent of the United States to put
itself behind a shipping enterprise SO
that the necessary financial support to
make 1t successful will be assured. We
cannot expect private capital in this
country to engage in this essential un-
dertaking. 1t is too big at the outset
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. He
says the Navy Department has inform
ed him that in order to bring the
United States Navy to its maximum
usefulness and efficiency in wartime
there is need of 400 merchant vessels
of approximately 1.172,00o gross tons,
and in addition about 324 vessels of
$50 tons each to be used for mine
sweeping in case the coasts are in
vested or visited by an enemy. Only
q small portion Of the larger vessels
needed in such contingency. he says.
are to be found under American reg
istry. The wise course, he concludes.
necessary naval auxiliary fleet and use
IT in time of peace In the South Amer
lean and other foreign trade.
The task Of the United States high
commission on uniformity of laws. he
says. Is both great and difficult and an
appropriation Of $4,000 he thinks mod
estly sufficient. The subject of direct
cable communications between North
and South and Central America, con-
sidered of great Importance by tho
conference. the Secretary declares.
could be studied by the high commits
sion II the appropriation Is granted.
The first conference. Mr.. McAdoo
says, gave convincing proof OF the adj
vantages of such meetings and the
recommendation for . $4,000 appro-
priation for a second next year Ia made
with the idea that they may become
annual affairs. The Secretary says
that 1t is the purpose to work in har-
mony with the Pan-American Union.
WILL BE IN CAMP ONE WEEK.
Woodmen Of the World Pitch Tents