The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-09
FOLLOWS
CAPITAL, NOT FLAG"
Argcntinian Tells New York
Bankers Confidence Will
Win New Markets.
URGES EXPRESS BOATS

ATLANTIC CITY, June s.--Tradc follows
capital, not the flag. This was the key
note OF an address by Carlos A. Torn
quist of Buenos Ayres at the twenty
third annual convention Of the New York
State Bankers Association to-day. In
which he said banker Of the United
States might easily obtain a great part
of the business in the Argentine for
merly handled by European enterprises.
In the course of his address Mr.. Torn
quist said
Eighteen months ago the dollar ex-
change was Of the most nominal charac-
ter and practically non-existent In South
America. To-day. although In It's in
fancy. II Is an established fact.
There is no reason why the United
States should not be placed on a footing
OF equality with Europe in relation to
Argentine finance and business II the
necessary notifications OF your Federal
banking n trade laws are made on
lines which would more largely facilitate
banking and commercial operations be-
tween the United states and the Argen-
tine. For instance. why should not the
United States receive "A large share OF
the $3.50. 600, 900 or 5000. 600, 900 which
ordinarily every year go into the cofers
of European accepting houses. which ac-
cept both for commercial and financial
credits?
Old Theory IL Exploded.
'The experience OF the foreign banks
in the Argentine Republic has exploded
the theory that trade follows the flag.
The results obtained there show that
trade follows capital. and even in these
early days of the investment OF Amer
lean capital in Argentine issues and en-
k.r l. ap,vIo nNtAanNA nf the
truth and soundness OF the latter theory.
But in order to convert this theory into
practical form there are other essentials
To be considered.
.There must be closer personal contact
between Americans and Argentinians'
want to SEQ the inauguration or the
hfst necessity of increased trade rela-
tons, and that Is the establishment OF
a service Of first class. comfortable and
fast steamships that will make the trip
from New York to Buenos Ayres. and
vice versa, in twelve TO fourteen days.
Extended Intercourse etwee the lead
ers Of the respective communicative
Of their secretaries and employees
would do more good to foster and aug.
ment international thar any
number Of conferences or publications.
I'VE are seeing the extraordinary pro-
portions reached lately in the trade be
tween the two countries and. although
much of il doubtless owes Its existence
to war conditions, a great part OF the
advance has been the result or closer
personal investigation and or the exer'
else of more vigorous efforts on the par
OF American manufacturers than Prev
ously were put forth.
Must show Conscience.
"Stlll, since my stay In the Cniteo
States I have seen in the columns o
the press an undercurrent OF suspicior
and mistrust, with more than one opel
reference TO the necessity for official pro
lection. even by force. for American IN
yestors in South American countries
speaking for my W country let m
aay. gentlemen, that the great ana CLOS
relations built up by Europe with IN
Argentine Republic have been estab
lished principally on the basis OF mutua
confidence; and unless the American
are prepared to show the same cohh
dence rs has been shown by the hnancia
and mercantile communities OF Europe
confidence justified by long experience
they would better not waste their time o
their money in the effort TO capture
larger share of our trade.
In his opening address John l.. Kloep
fer president of the association. ad'o
Gated an enlarged merchant marine. as
sorting that large crops are Of It'll
use unless there is a market for then
The steady absorption Of securities b
this country showed that America
preparing for the future In fnancia
steadiness. he said.
The convention. which Is being held q
tho Hotel Trayrnore. will continue thre
dAUa