The New York herald., 1920-01-21
Tells Pan-American Congress
of the Friendly Relations
Formed by Commerce.
ASKS LATIN BANKS HERE
Urges Opening of Branches
in United StateS-Moore Describes
Commissions Work.
[srEs,.E DESPATCH TO TIE HERALD

tended to bring the Americas closer to-
gether. was the dominant theme of the
address Of William Gibbs McAdoo, for
merly Secretary Of the Treasury. at to-
nights meeting Of the Pan-American Con-
gress.
Mr.. McAdoo unfolded the story Of grow
ing commercial relations between the two
continents which has tended to bring to
South America a new declaration of inde-
pendence from European entangIements
and t, cement the friendly relations among
all the Americas.
Mr.. McAdoo was the chief speaker of the
evening. while John BaSsett Moore. former
Assistant Secretary OF State and vice
president of the Executive Council of the
International High Commission, was the
chief speaker on the days programme
Mr. Moore unfolded another chapter in the
increasing good feeling that is growing up
between North and South America. Mr..
Moore said the results of the work of the
International High Commission could
hardly be overestmated
substantial ameliorations OF methods Of
customs administration had been secured
in numerous countries said Mr.. Moore.
Six republics had adopted uniform statis-
tical classification Of merchandise and two
rules dealing with bills OF exchange
through the efforts Of the commission had
been incorporated in the codes of Brazil.
Guatemala, Nicaragua and Venezuela and
four other countries, he declared, and the
oh tfrlr yhnt, IA,
Hague rules and the United States Instru-
ments act Of 1916 would be the only two
systems governing bills of exchange in use
in the western hemisphere.
international Gold Clearance.
The draft of a treaty to carry into effect
the convention to establish an interna-
tional gold clearance fund has so far been
signed by the United States, Paraguay,
Panama, Haiti and Guatemala, and the
principle approved by six other countries
and probably will be adopted by them all. |
The fund is designed not only to assure the
safety OF deposited gold and to avoid the
necessity of its shipment when difficulties |
In transportation exist but also to stabilize
exchange through the adoption Of an in
ternational unit Of account The treaty Il
covers only the American nations, but, Mr.. |
Moore said in closing. it contains a prin-
ciple which may prove to be Of incalcu- |
liable value to the world.
During the day suggestions were made
which show the growing Importance Of
Americas new commercial relationship to
South America. The Bolivian committee
recommended q loan of 81, 900 00C to COM
plete railroad construction by which it Is
expected to open the commercial possibili-
ties Of that country.
A statement of unusual importance to
this country was issued by the Haytian
delegation to the effect that "internall
conditions have been greatly improved
since the coming Of the United States into
the Haytian national situation"
Frank A Vanderlip, chairman of the
Argentine group, made the statement that
in the opinion of many bankers State
banking laws should be amended so as
to permit the opening of American
branches. at least by the government
banks Of South America.
Can't Open U. S. Branches.
Although American banking houses
are opening branches all over the world"
Mr.. Vanderlip said. "our State banking
laws make 1t impossible for the Latin |
American institutions to open branches
In this country and compete with US on
our own ground. These laws were for
mulated before American banks had in |
vaded the foreign field. and had the effect |
or securing our banks from competition
FOR deposits from foreign institutions.
This Situation was discussed today in
the Argentine group, and it was the gen.
eral opinion of the American members |
that the interests of fairness demanded |
readJustment so that at least the gov
eminent institutions, such as the bank
or Argentina, might be permitted to open |
branches in our financial centres, and /
compete for deposits.
This is not a matter for federal Iegis-
lation, but lies entirely with certain
States" concluded Mr.. vanderlip.
Opening his address on the growing
commercial relations between the two /
Mr. McAdoo called attention
to the fact that the United States export
trade to South America had increased |
from 500, 900 in 1915 to s400OCO.OO0 in 1919. |
while the imports from Latin America |
had increased from s261 900, 900 In 1915 to
1858 100000 in 1919. Mr. McAdoo said this
had resulted in large measure from the
OF South America and Eu-
rope, but in large degree also from the
results of the first Pan-American Finan-
cial Congress and the International High l
which was created by that
conference to carry out the programme of
the congress.
American bankers bid.
''rhe financing OF public improvements"
said Mr.. McAdoo, has been aided by our
bankers to some extent, Notwithstanding
ne grave tunes Nnen Europe was draw (
ing heavily on the credit resources Of the
United States The banks Of several gov
Argentine and Panama. and Of
several cities CRio de Janiero and sac
Paula) have been placed I'm the United
States investment market. Some OF your
private enterprises Central Railroad OF
Argentina and Brazilian Light and Trac-
.ion) have obtainoS funds I'm our market
when Europe could not respond. Your
commercial bills OF credit have found n
ready market I'm the United States. Our
Federal Reserve banks have had. accord
ng to recent figures, over $500 900 900 of ac-
septance in its portfolios. Of which South
American drafts formed goodly fraction II
whereas at the time of our meeting In 1915
here was no American acceptance market Il
The last five years developments have IA
,ilitated direct banking and exchange be-
tween the American republics.
The full possibilities of the Panama
Canal In increasing intercourse between
the two Americas and between. them and
the rest of the world could not be realized
during the war. Only with the restora-
ton OF normal conditions OF trade viii
the profound influence and value of the
canal be apparent y
THE marvellous prosperity the Ameri-
cas- have enjoyed, has given us, united
great capacity for service to the world. l.
Europe. ravaged by war, hungry and
destitute yet still strong In recupcrative