Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-11-12
PLANNING TO MEET
TRADE PROBLEMS
Departmental Committee
Suggests Establishment
Of a Trade Bank.
WOULD BRANCH OUT
Would Be Beneficial to De-
velopment of British
Manufacturing.
WOULD BRANCH OUT

= Correspondence of The Associated Press)
LONDON. Nov. 10.-The most defi
mite attempt to deal with the finan-
cial side OF the trade problems that
will arise after the war is proposed by
the departmental committee, which /
suggests the establishment of II British
trade bank, under royal charter, with
Il capital OF ten millions sterling and
a first issue Of from two and a half
millions to five millions, a further Is
sue being made afterwards, II posi-
Dlc. al a premium.
The bank would not accept deposits
at call or notice and only open cur
rent accounts for parties who pro-
posed to make use of the overseas ia
cilties which it would afford.
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 Briti1h-forciSl'
bank OF Importance exists
Whore desirable the bank would CO.
operate with the merchant and manu-
facturcr and possibly accept risks
upCn Joint account, and would become
n center for syndicate operations.
awaiting itself of the special knowledse
which it would POSSESS through It's
information bureau.
Ii. 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 con-
siderable extent at the present time III
this country the machinery and IA
cili'ics for the financing botr OF home
trade and of large overseas contracts
and .or carrying through much of the
business which has been doEe by for
eiGn banks
Afford Accommodations.
"rhc British banks afford. we be-
lieve, liberal accommodation to the
home producer the report proceeds.
similarly the colonial banks and
British foreign banks and banking
houses render immense assistance to
British trade abroad and certainly n,
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 Brittsi.
contractors, with the assistance OF
financial houses, have In the past
been read yto provide large amounts
of capital and to take considerable
risks in connection with the opera
tions which they have undertaken.
"Cur arrangements are faulty in
our not co-ordinating many of the
facilities mentioned. We recognize
also that the British manufacturers
may be frequently in want Of finance
OF n kind which a British joint stocl,
bank with liabilities as above &C.
scribed could not prudently provide,
whereas the German banks in par
ticular seem to have been able to az
ford special assistance at the incep-
ton OF undertakings of the most
varied description and to have laid
themselves out for stimulating their
promotion and for carrying them to Il
successful completion
a Great Bencfit.
',rhe trade bank would in many
ways be beneficial to the development
of British industry and manufactures
1t rIight IN certain cases, after care
full examination, agree to make ad-
vanccs for the extension OF existing
manufacturing plants or perhaps fol-
the amalgamation or coordination ol
certain works so as to reduce the cos'
OF production. 1t would assist these
works to obtain orders abroad an1
give them reasonable financial facili-
ties for executing these orders.
''If financial assistance is given by
the government to undertakings II
connection with what are known a
key industries, the business should
if possible, be done through the me-
dum of the institution, and 1t shoulc
be appointed an agent for carryinl
through the foreign commercial ant
financial transactions in which th'
government is Interested"
Among many other suggestions Ii
one for an up-to-date information de
part,nent which will be independent
of the commercial intelligence depart
ment of the board of trade but II
close touch with 1t. This bureau
should organize and keep up to dat
the status of firms abroad. 1t shoulc
secure the earliest information from
abroad of new business openings. larry
contracts offering state and othe
loans and issue proposals.
The scheme has been fairly we'll re
ceived in commercial and banking
circles.