The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-10-22
ENGLISH PROPOSE
TRADE BANK FOR
WAR-END PROBLEM
They Want to Be Ready for
TremnedOus Commercial
Contest Expected When
Peace Comes

London, October -(Correspondence
of the Associated Press.)-The most
definite attempt to deal with the
financial side of the trade problems
that will arise after the war is pro-
posed by the departmental committee
which suggests the establishment OF
British trade bank, under royal char
ter with capital of 100000 and a
first issue OF from f2,500,000 to $4,000
900, a further issue being made after
ward. If possible at premium.
The bank would not accept deposits
at call or notice and only open cur
rent accounts for parties who proposed
to make use of the overseas facilities
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 British foreign
bank of Importance exists.
Where desirable the bank would CO
operate with the merchant and manu-
facturer and possibly accept risks upon
Joint account and would become a CEN
ter for syndicate operations, availing
itself of the special knowledge which
it would possess through it's informa-
tion bureau.
In leading Up to it's conclusions the
committee says that from careful study
of the evidence taken and knowledge
of banking arrangements and facil-
tiles there exist to a considerable ex-
tent at the present time in this coun-
try the machinery and facilities for the
financing both of home trade and OF
large overseas contracts and for car
rying through much of the business
which has boen done by foreign banks.
THE British banks afford, we be-
lieve, liberal accommodation to the
home producer" the report proceeds.
Similarly the colonial banks and Brit
ish foreign banks and banking houses
render immense assistance to British
TRADE abroad and certainly in the far
east and in many parts of South Amer
lea banking facilities do not fall short
of those of any other nation. We find
also that in the case of large con-
tract operations British contractors,
with the assistance of financial houses,
have in the past been ready to pro-
vide large amounts of capital 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 facll-
tiles mentioned. We recognize also that
the British manufacturers may be fire.
quently in want of finance of kind
which 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 to have
laid themselves out for stimulating
their promotion and for carrying them
to successful completion.
'"rhe trade bank would in many ways
be beneficial to the development OF
British industry and manufacture. 1t
might in certain cases after careful
examination agree to make advances
for the extension of existing manu-
featuring plant or perhaps for the
amalgamation or coordination of Ger
tain works so as to reduce the cost of
production. 1t would assist these works
to obtain orders abroad and give them
reasonable financial facilities for exc
cutting these orders.
IF financial assistance is given by
the government to undertakings in
connection with what are known as
key Industries, the business should,
dunn of the institution and 1t should
be appointed an, agent for carrying
through the foreign commercial and
financial transactions in which the
government is interested"
Among many other suggestions is
one for an up-to-date information de-
partment which will be independent OF
the commercial intelligence depart
ment Of the board OF trade. but in
close touch with 1T. This bureau should
organize and keep up to date the sta
tus of firms abroad. 1t should secure
the earliest information from abroad
of new business openings, large con-
tracts offering state and other loans
and issue proposals.
The scheme has been fairly well re-
ceived in commercial and banking
circles.