The sun., 1918-11-29
CALLS LONDON FIRST
IN FINANCIAL WORLD
Leopold Frederick Says British
Hold Supremacy in For
eign Trade.
DISPUTES y. Y. CLAIM
Cites Outstanding Acceptances
Against Foreign Business
to Prove Contention.
DISPUTES y. Y. CLAIM

LonuOn bun 10 the financial centre OF
the world. Notwithstanding the vast
loans made by the United States to the
various countries OF Europe, according
70 statement issued yesterday by Leo
pold Frederick, director of the American
Smelling and Refining Company The
bankers OF England continue to finance
the bulk Of the worlds trade and have
maintained their supremacy notwith-
standing the great financial burden UNI
der which the British Empire has been
laboring. In this contention Mr.. Fred.
eick takes issue with i. w Wilson OF
the London Daily Noics. who recently de-
clared that the financial centre OF the
world had passed from London to New
York. Mr.. Frederick's statement fol.
lows:
Whether London or New York will
continue after the war to predominant in
financing world trade is a question that
has caused keen discussion in banking
circles.
THE popular belief is that New York
to-day Is the centre of world finance and
that we have succeeded in wrestling from
London the premier position.
The question was discussed at n re-
cent meeting Of the Council or Foreign
Relations he'd at the Metropolitan Club.
L. W. Wilson of the London Daily NeUs
In a very able speech regarding future
relations between tho United States and
Great Britain declared that the flnan-
cial centre Of the world has passed from
London to New York
This d d not coincide with the views
that held. which views were prompted
by knowledge OF the actual conditions of
the money markets both in New York
and London. My Spaech at the meeting
was in the nature Uf a reply TO Mr.. VIII
son. At that time ] set forth my reasons
for believing that London still holds the
financial aupremacy. Since that time l
hav' rm de "A careful investigat ton and
asCcrta. / the approximate amount OF
acceptdnctS outstanding against foreign
trade IN this country. ] have also can
Vassed many authorities on the London
acceptance market. The conclusions ]
have been able to draw from this are. as
l said in reply TO Mr.. Wilson. that only
so far as loans made by the United
states TO the Allies are concerned has
the financial centre been shifted 10 New
YORK; however SO far as the financing
or exports and imports of the world it
concerned, London is still supreme.
THE following shows the estimated
amount of acceptances outstanding
against international business both in
LouIon ana In New York:
"London-Acceptances Of all London
Clearing House banks, colonial hanks
foreign agencies and private bankers
outstanding. in tho ueighborhoOd O
$500. 900, 900.
New York-Acceptances of New
York national and State banks and trus
companies, S270,000.O00; acceptances o
foreign trade corporations and foreign
agencies established IN New York. S55,
400. 600; ac"Cptances OF private. bankers
$40 100000. Total, s365 OO0. 900.
Deduct acceptances issued for tn.
pure se of financing domestic trade
SIS, oO6,0op, leaving Il total OF accept
Auoes representing the financing of i'm
ports and exports through New York
$2io. 100000.
The foregoing figures show that Lon
don Is far ahead, and. believe tina
even with the much needed improve
men, OF the machinery for nuancin,
international trade London will still fo
many years to como Uutdistance New
YORK. We are lacking here tn
large number OF merchants. bankers, oil,
established accepting houses with bust
rcs% qualifications all over the globe. W,
mere will DC satisfied II We can hold IN,
Central and South American and fa1
Eastern business. Although dollar ex
change has made great strides sine, IN,
war. the New York discount market T.
St!ll in It's infancy. For the present tner,
Is little likelihood that we will get. OK
Dept occasionally, tho T0gncinc Of tn,
continental! trade or i'ropc Il f.
hardly likely that, say. an Amsterdam
merchant importing good from Franc,
Will seek accommodation In New York
re will CO. as heretofore to London. T
may he possible, l think. that this haudi
zap OF location will be partly oyercnn,
N the future with the airplaue develop.
Went, which would narrow down IN,
TIM" consumed by the mail IN transit.
Il dwelt especially upon the great
aoilltY or the English to maintain IN,
sterling ratio for SO long at tho 'prgged
heure and the discount policy Of IN.
London market, which during the none
tary stringency in New York in the las
few months enabled il TO render gr,a0
services To tho allied nations in assum
ing tho burden Of financing vas,
amount os exports and imports Of IN,
world
In order - retain their business IN,
English bankers have made great sarri
'lt"s during tho last six months. The,
~" paying on foreign check account a..
per cent. interest ana E,c-,iue tho dis
count rate al Si2 per cent. They know
that trade flows where money !s Cheau
est. We have t take our hats oil 10 III,
English. They understand juternatlonr
finance"