The Washington herald., 1917-08-29
HOLLAND LETTER
The Biggest Daily
Financial News Feature of
the County's Best Newspapers

About a year ago the National City
Bank Of New York established a
branch bank at Buenos Aires. 1t was
regarded by some of the abler bankers
of New York as a venture which did
not give promise of immediate success
Nevertheless Pre- mt Vanderlip was
pSesuaded that there were excellent
commercial reasons as well as reasons
that involved an increase OF CONNER
meTce between the United States and
South America which were sufficiently
good to justify the venture. Reports
received from Argentina today show
that the deposits in this branch of
the City Bank jumped n,OoO,00O to
about 5000. 600 in a little less than a
year. Furthermore the institution has
been OF great assistance in aiding our
commerce with Argentina. That COM
merCe promises to be the largest main
tanned by the United States with any
South American republic, excepting
possibly Brazil.
Other branches have been estab-
lished in important South American
centers and the success of each of
them has been relatively speaking as
excellent as has been that of the
branch bank established in Buenos
Aires. There have come some init
nations that the Federal Reserve
Board at Washington does not look
with favor upon the establishment at
present of branches of American
banks in financial centers of their
nations. The reasons for this objec-
tion are believed to be technical and
arply only to the present time. After
kraW1 hi 49,
facilities will undoubtedly be estab-
lshcd in all of the great financial CEN
tors of other nations. For it is be-
lieved that it is essential to do this
if we are to hold the foreign trade we
have now gained and are to be sue
cessful in the severe competition for
that trade which will surely follow
the termination of the war.
Germany and south America.
Almost all of the representatives OF
South American nations who are nov
in the United States or who have re-
Gently been here believe that the
great prestige gained by Germany in
South American trade is gone for
good. So, also, other nations which
exported to South American coun'
tries commodities to the exclusion OF
the United States are likely to lose
that trade permanently. Two or three
concrete illustrations of the cahnges
which have taken place and are now
under way may be worth while. The
largest cities of tropical Brazil, espe-
cially Pernambuco and Bahia, for
many years lighted their public
streets by means of a peculiar kind
of alcohol lamp. These lamps were
made in Germany and the export OF
them constituted a considerable item
in Germanys trade with South Amer
ica Alcohol is used because It is plen-
tiful and cheap. But as soon as the
war put an end to the imports from
Germany the authorities of these
cities found themselves face to face
with a perplexing problem. The old
lamps were wearing out rapidly and
it was impossible to get new ones
Then it occurred to the authorities to
send representatives to the United
States so that it could be learned
whether lamps of this kind could be
manufactured here. The burners
were of a peculiar type that had been
used for over sixty years. The Amer
lean manufacturers at first thought
that they would be unable to make
these lamrs. but the inventors and
experts at last showed them how II
could be done. Now we are sending
TO Northern Brazil lamps of this kind
in considerable quantity and they are
so satisfactory that we shall be able