The Washington times., 1918-12-07
LONDON REMAINS
FINANCIAL Center

NEW YORK. Dee. L-LeopeId
Frederick. director OF the Americas
Smelling and /RsnninE company.
makes the following statement:
Whether London or New York win
continue after the war to prsdomi-
nate in financing world trade Is .
question that has caused keen dis
cussion In banking circles.
THE popular belief IL that New
York today 10 the center Of worIa
finance and that we have succeeded
In Wrestling from London their pre-
mier position.
The question was discussed at .
recent meeting Of the Council OF For
eign Relations held at the Metropolis
tan club. p. W. Wilson. OF the Lon
don Daily News. said regarding flu
ture relations between the United
States and Great Britain that The
passed from London to New York
In q reply to Mr.. Wilson I set
forth my reasons for believing that
London still holds the financial su-
premacy. Since then I have made .
careful investigation and ascertained :
the approximate amount Of ac-
ceptanees outstanding against foreign
trade In this country. I also have
canvassed many authorities on the
London acceptance market. The con-
illusions / have been able to draw
from this are that only 80 far a.
loans made by the United States t.
the Allies are concerned has the nnan-
cial center been shifted to New York
ETrwu
exports and imports OF the world ars
concerned London is still supreme
Compares FiguresL
The following table shows the e.
timated amount Of aeceptznces out
standing against international busl-
ness both in London and in New
York:
LONDON.
Acceptanees OF all London
clearing house banka. colonial
banka foreign agencies and
private bankers outstanding
in the nelshborhocd Of. tSea ~. 49,
NEW YORK.
AcceptAnees OF New
York national and
state banks and
trust companies. .t37O. .ooo. zee
Aeceptances OF for
eign trade corpo-
rations and for
eign agencies es-
tablished In New
Acceptance; Of pri. '''
Vats bankers -. Is.aOo.Seo
Total .sssS.OOo.SoS
Deduct acceptanees
issued for the
purpose OF dnane-
ing d o estie
trade S15s. zee zoe
Leaving a total Of scceptsncss
representlng the financing OF
imports and exports through
Lack merchant Baakers.
: The foregoing figures show that
London is away ahead. and believe
that even with the much needed I'M
proyement OF the machinery for
financing international trade London
for many years to come will outdis-
1--WE are lacking here the large mum.
Der Of merchant-bankers: old estab-
lished accepting houses with business
ramifications in all parts of the globe.
We here will be satisfied II we eau
hold the Central and South American
and Far Eastern business. Although
dollar exchange has made great
strides since the war, the New YORK
discount market Is still in its infancy.
For the present there Is little like
lihood that we will get the financing
VI Nnc COnllnculdA lIduC OL EuEOpG- ~
Is hardly likely that. say, an Amster-
dam merchant importing goods from
France. will seek accommodation In
New York. he will 90. as heretofOrs.
20 London
1t may be possible. / think. that
this handicap OF location will be part
ly overcome in the future with ths
airplane development, which would
narrow down the time consumed By
the mail in transit.
I'm order to retain their business ,
the English bankers have made great
sacrifices during the last six monthA-
They are paying on foreign check
accounts "A per cent interest and
keeping the discount rale at 5h per
cent. They know that trade flows
where money Is cheapest We have
to take our hats off to the English
They understand international IA
nance"