The Birmingham age-herald., 1917-08-29

| New York, August 8.-(Special.) )-About a year ago the National City bank Of New York established a branch bank
 at Buenos Ayres. It was regarded by some of the abler bankers of New York as a venture which did not give promise of immediate success. Never
 theless, President Vanderlip was persuad- ed that there were excellent commercial reasons as well as reasons that involved an increase of commerce between the United States and South America which were sufficiently good to justify the venture. Reports received from Argen-
 tina today show that the deposits in this
 branch of the City bank jumped from
 $1, ,0oo, 600 to about $6,O00,OOo in a little less
 than year. Furthermore, the institu- ton has been of great assistance in aid- ing our commerce with Argentina. That maintained by the United States with and South American republic, excepting
 possibly Brazil.
 Other branches have been established
 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 estab-
 lished In Buenos Ayres. There have
 come some intimations that the federal
 reserve board at Washington does not look with favor upon the esta blishment
 at present of branches of American banks in fnacial centers of their na- tions. The reasons for this objection are believed to be technical and apply only to the present tune. After the war is ended American banking fa-
 cilities will undoubtedly be established In all of the great financial centers of
 other nations. For it Is believed that it Is essential to do this if we are to hold the foreign trade we have now gained and are to be successful in the
 severe competition for that trade which
 will surely follow the termination of the war;
 Almost all of the representatives of South American nations who are now in the United States or who have recently l been here believe that the great prestige i gained by Germany in South American trade is gone for good. So also other nations which have exported to South 1 American countries commodities to the exclusion of the United States are likely I to lose that trade permanently. Two | or three concrete illustrations of the | changes which have taken place and are now under way may be worth while. The largest cities of tropical Brazil es- pecially Pernanbuco and Bahia. for
 many years lighted their public streets | by means of a peculiar kind of alcohol lamp. These lamps were made in Ger many and the export of them constituted considerable item in Germanys trade with South America. Alcohol is used be- cause it is plentiful and cheap. But as soon as the war put an end to the l 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 1 it was impossible to get new ones. Then 1 it occurred to the authorities to send representatives to the United States so | that 1t could be learned whether lamps
 of this kind could be manufactured here. The burners were of peculiar | type that had been used for over 50
 years. The American manufacturers at l first thought that they would be unable
 to make these lamps. but the inventors and experts at last showed them how
 it 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 to
 maintain that commerce after the war
 no matter how strenuously Germany
 may try to regain it,
 Manchester. England. has been the
 chief beneficiary so far as South Ameri-
 can trade In cotton goods Is concerned. Now. however, little or no imports of these goods reach South America and in
 some of the republics there is desper-
 ate need of cotton goods. That is true l especially of Colombia. The representa- | tives of Colombia who are now in the 1 United States hope to be able to make purchases of cotton goods in sufficient
 amount to meet Colcmbia's need. This
 should result In a large demand for the 1 kind of cotton goods which Is manufac- tured in the south. If a market for these American-made cotton goods is se- cured in South America now there should be no reason why 1t cannot be main tained after the close of the war, aI- though, of course. England will, as soon possible after the war is ended, at tenDt tO regain that trade
 The reports which the representatives of the South American republics who are
 now in the United States bring to this
 country suggest that with perhaps one or two exceptions all of the South Amer
 lean republics. while maintaining a sort