New-York tribune., 1917-07-24
American Banks
BrancningOut in
Many Directions
France Welcomes Invasion as
Means Of Improving
System


changes in the machinery OF intetna,
tional finance have been brought ABOUT
.e result of the war. Germany, TOT
instance. has been eliminated, tempo
rarilv at least, from the internationai
banking field. American and BRUSH
banking interests. on the other hand'
have been pushing out into new fields
Several American banking instituti'hs
have extended their connections into
South America. Russia is receiving
the attention of others. Both Engiisn
and American banks are doing an IN
creased amount of business with the
French.
Lately English bankers have entered
the Spanish field. A precedent OF long
years standing was broken the other
dav. when the London County ana
Westminster Bank, Limited, one OF the
strongest of the English joint stock
banks, established a branch in SPAN
This is the first time London Clear
ing House bank has ever set up a
branch outside Of Great Britain.
Scandinavian countries have extend
ed their banking connections, wniie
Dutch bankers have entered the South
American field in an active way.
Louis Aubert, in an article which
anneared in a recent issue of Figaro,
discusses the increased interest of Eng
lish and American bankers IN tile
French financial field. m
at appears" this writer says, "that
in certain quarters there is feeling
of surprise, | may almost say Oh anx-
ietv. at the amount of business done
| by English and American banks IN
/ France in recent months.
There had existed here for mary
years a small number of banks founded
by individuals of English or American
birth, and these occupied in our finan-
,, cial world a highly honorable but
somewhat restricted position. lhelr
clients were drawn, as matter OF iact,
almost wholly from foreigners resld ng
in Paris or passing through the city
and from prominent members OF hlgh
French society. Beyond this fairly
small circle they had scarcely tried to
reach the general public. During these
last years, but still very guardedly, a
a few American and English banking
houses had, it is true, opened branches
in Paris. Their activities were, how
ever, limited TO a comparatively small
number Of operations, and most OF the
large banks of London and New York,
when approached with suggestion to
enter our market, showed themselves
refractory.
"Since the war, however, many i'm
portant offices have been opened here.
Others will come, and now that the
movement has begun, it is probable
that no important English or American
institution will feel able to do without
an agent and branch in Paris. The
section around the Opera House will
take on more and more an Anglo-Saxon
| air, but I must admit that | shall no.
let that either surprise or annoy me
On the contrary, | think that we all
ought 10 rejoice at it.
"a certain number of these banks
have already rendered great service TO
our war industries by bringing help
at the time when our own banking
houses were paralyzed by the unex
pected moratorium. They will be OF
still greater service at the close OF
hostilities. Their representatives have
come TO know our manufacturers and
our business men. Even though our
financial habits and customs are differ
ent from theirs, they are learning that
our business morals are as high. They
are familarizing themselves with our
methods of work, which at first seemed
TO them so impractical. For our part,
we are learning their methods, and we
are beginning to understand their de-
mands. In time we shall arrive at
agreements which have fallen through
in the past because of mutual misun-
derstanding. The Germans, thanks to
their obsequious adaptability, which en-
ables them to mould themselves out
wardly to the ways of any country,
had succeeded in playing an important
part in our financial affairs, while the
English and Americans held aloof.
Things will be different in the future,
but we must not deceive ourselves by
thinking that we shall find in our new
associates the same slsvish docility
that we found in the Germans.
"The American, like the English
banker, is very fond of his own way,
and we shall have to make certain con-
cessions. Let us not forget also that
we had occupied up to this time the
position of the man who controlled the
funds, beseiged by suppliants, and
therefore able to impose his will in
all matters.
after the war the roles will be re-
versed. We, in our turn, shall have
become the suppliants, and, as such. we
shall have to adapt ourselves to the
point of view of our creditors when we
ask their help.
"The presence in France Of all these
great foreign banks cannot, more
over, fail to have a stimulating effect
on our own banking houses. Bureau
cracy does not flourish only in the Of
fees of the government, alas, and the
bureaucratic spirit is chronic disease
in France. Now, there is nothing like
the arrival of a competitor to make
man put his house in order. look for
the greatest amount of good from this
competition. The public will go where
it gets its business done best and most