Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-10-17
CONCENTRATES
ESTABLISHING
COMMERCE BANK
Great Britain Makes Attempt
to Deal With Trade Prob
lens That Will Arise After
War.

associated Press Correspondencel
London oct 2-The most definite at
tempt to deal with the financial side
of the trade problems that will arise
after the war is proposed by the de-
partmental committee which suggests
the establishment of a British trade
bank, under royal charter, with a cap
ital of ten millions sterling and a first
issue of from two and half millions
to five millions, a further issue being
made afterwards, if possible, at a pre-
MUM.
The bank would not accept deposits
at call or notice, and only open cur
rent accounts for parties who propos-
ed to make use of the overseas facih-
ties which it would afford.
Would Enter Agency Arrangements
The bank would enter into banking
agency arrangements with existing
colonial or British-foreign banks, and
would have power to set up branches
or agencies where no British-foreign
bank of importance exists.
Where desirable the bank would CO.
operate with the merchant and man
ufacturer and possibly accept risks
upon Joint account and would become
center for syndicate operations,
awaiting itself of the special knowl-
edge which it would possess through
its information bureau.
In leading up to its conclusions the
committee says that from careful
study of the evidence taken and
knowledge of banking arrangements
and facilities, there exist to a consid-
cradle extent at the present time in
this country, the machinery and facil-
tiles for the financing both, of home
trade and of large overseas contracts
and for carrying through much of the
business which has been done by for
eign banks.
British Afford Good Accommodations.
"The British banks afford we be-
lieve, liberal accommodation to the
home producer the report proceeds.
Similarly the colonial banks and
British foreign b4uks and banking
houses render immense assistance ia
British trade abroad and certainly in
the Far East and in many parts OF
South America banking facilities do
not fall short of those of any other
nation. We find also that in the case
of large contract operations British
contractors with the assistance of fl
nancial houses, have in the past been
ready to provide large amounts of cap
ital and to take considerable risks In
connection with the operations which
they have undertaken.
"Our arrangements are faulty in our
not co-ordinating many of the faclll-
ties mentioned. We recognize also
that the British manufacturers may be
frequently in want of finance of a KIND
which a British joint stock bank with
liabilities as above described could not
prudently provide, whereas the Ger
man banks in particular seem to have
been able to afford special assistance
at the inception of undertakings OF
the most varied description and toI
have laid themselves out for stimu-
lating their promotion and for carry
ing them to a successful completion''
Trade Bank Beneficial.
THE trade bank would in many
ways be beneficial to the development
of British industry and manufacture
If might in certain cases after careful
examination agree to make advances
for the extension of existing manufac-
turing plants or perhaps for the ANAL
gamation or coordination of certain
works so as to reduce the cost of pro-
duction. 1t would assist these works
to obtain orders abroad and give them
financial facilities for eX-
ecuting these orders.
IF financial assistance is given by
the government to undertakings IN
with what are known as
KEY Industries, the business should, If
possible, be done through the medium
of the institution and it should be APP
pointed an agent for carrying through
the foreign commercial and financial
in which the government
is Interested
Among many other suggestions Isl
one for an up to date Information de-
partment which will be Independent
of the commercial intelligence depart
mont of the Board of Trade but in
close touch with it, This bureau should
organize and keep up to date the
status of firms abroad. 1t should Sc
cure the earliest information from
abroad of new business openings, large
contracts offering state and other
loans and issue proposals.
The scheme has been fairly well re-
ceived in commercial and banking
circles.