New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-06

-. ,;me in its history has reached the
In. where it will be creditor ma
- instead Of debtor, 1t seems
ry.lv that its largest investments
.broad in development projects will be
!. South American countries. Already
!. have expended millions in Central
,r,riea. with most satisfactory re-
cults generally speaking. We have
,,r+r;huted something TO the upouild-
~ the countries further south
-. Init now they are offering the
..,,oest Of inducements to our in
s.. $500, snd we shall be very short
',-s.cd II we do net see the opportu-
-. Ne have been under such press
-. Inns FAR because of the enormous
S.~,,nSs made upon US by a continent
=. ~ that we have failed TO develop
~s,i6lv as we should constructive
~-,--anrne for South America The
- hes now come when We should use
s.i.as. q mart Of the profits of the last
s:-S,een months in building an endur-
80. business and look far into the
s - instead of being diverted by
-. Glamour Of temporary conditions.
18Th America will advance very
IL during the next twenty years
s-.isss money from the United States
..,Tss the motive power. European
So5ys, made South America what 1t Is
.o,5sy. but Europe must now resign
10 task Of development, TO turn Its
s..e,.ion 10 home needs. Therefore,
".'I -, es we are concerned the great
s,,Somental need in Central and South
America, in addition 10 transportation
i rot alone American banks, but very
considerable investments OF our capl-
tsi The necessity for such invest
rosr+s and its relation 70 the develop
-rent Of business abroad IS something
That is not generally understood Dy
The reople Of the United States. Inere
{. no such lack of appreciation OF II,
however. in European countries. In
recort number 1.-THE London Econo--
-n;st" in reviewing the reduction OF
Rri.ish capital available for employ
oent particularly after the war, makes
yerv clear the possible effect on Eng
lands trade. and remark: These capl-
,el accunulations-pr profits and savings
nj the community a prlnclpal
support 10 our foreign trade, Tor our
merchant and manufacturers followed
In Inc wake Of our financial invest.
,rer+s. The great merchant houses OF
he city are. Of course, partly financial,
partly commercial -,
Investments on our part in South
America are sure 70 bring most satls-
factorv returns if carefully made, for
sorpd foundations have been LAID. Inc
emplovment Of the same intelligence
and courage which wrought the up
building of our own great West, with
:ts splendid returns, will produce
highly satisfactory results IN SouIh
American countries.
That this fact is realized by some OF
the ablest and most farsighted imam,
f,ers and business men IN the Onlteo
c.atcs is already clear from the IN
yes.igstions of many projects when
are now being made and the careIui
plans which are in process. 60,
Even the casual visitor to the South-
srp countries cannot fail TO be I'm.
dressed with the formidable serles OF
fnrlish and German banks which ne
9rds In every centre. He notes also
,bat French. italian and Spanish lnsti-
,rt;ons are conspicuous. Until WITHIN
The last two years, however, there were
PRACTICALLY no American banking lnsu-
tr,;ons in these countries. Facilities
for the handling Of commercial trans
,c+;ors were available through these
foreign banks, acting as correspondents ~,
o. our own banks. But there Is very
great handicap in trying TO 90 business
in this indirect fashion. e
In 1914 the National City bahh VI
New York began the development OF an
ambitious programme for branch DahS-
ing in the tropical countries, anu e.
though il encountered the lneVlIaole
and vast amount o.
effort has been put into the unoerlaA-
ing, these branches are now eons
ahead splendidly. The first oranen was
epsned in Buenos Ayres IN Novem De
1914. with about thirty employees ne
,taf now numbers over one hundred
Of whom twenty are Americans. inns
branch quickly outgrew its orlginal
quarters and was obliged to move lnto
a large banking house. Already, now
eve il is pressed for room. lts de-
posts from Argentina merchants are
now more than 100000 IN gold, ana
during the last year its discounts nave
grown from 100000 to over Wv
100000 gold. Brazilian branches at kio
De Janeiro. Santos and Sac Paulo, WIN
an Office in Bahia, were all opened last
year and are making very good prog
r,ss The branch in Montevldeo, Oru,
guav. has also begun to develop gooa
business. One has Just been opened az
Valparaiso. Chilli, and two are IN opera
t;op - Crbe-ir Santiago and Havana.
The Mercantile Bank of the Americas
Granted since the outbreak OF the
war. established TO do business WIN
South and Central America mas
branches at Guatemala. honduras
Nicaragua. Colombia and Nenezue,a;
The Banco Mercantil Americana ueI
Peru will soon open new banklhg
house in Lima. Peru. Further extern
sions 70 the system are planned. Wher-
ever the American bank has mAue w.,
appearance it has been most coIuIa.L'
received. If the legislation recon-
mended by the Federal Reserve boaru
permitting our national banks 70 coin
tine in the maintenance OF 1oIe4tH
branches is passed, II IS certain 70 NC
taken advantage Of promptly; ana d
new series Of branches should DC INC
resul. within the next year.
Aside from the regular commerce.;
and financial business when Danhs u
this Character are organized to 40
there is. however, a very large held OF
work TO be organized in South and Cen
trsl America in bringing TO the atIeh
ton Of the people Of this country souna
for the investment OF
captal in many kinds Of enterprises.
The growth of European trade Was
not brought about simply by the eSiaps
tshment Of banks. Capital from all OF
NE leading commercial nations %
Europe has been pouring in during the
last thirty years, 10 Brazil and Argeh-
una, Uruguay and Chilli, and all the
C.lner countries. Great Britain mas DeeH
the leader. Up 10 wear ago, it is esti-
mated that she had invested in the
A!rgentine over St.71OOOO,OO0. in Brazil Sdd
Nl5,00000O. in Uruguay Sl80,OOO,OOO'