The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-30
STRAIN ON EXPORT
BANKERS RELIEVED
AS STOCKS MOVE
Year Has Noted Many
Suspensions Through
out World.
CRISIS NOW PASSED
Holdings of Commodities, at
Inflated Values Gener-
ally Liquidated.

NEW YORK. Dec z9.-Profts from
international banking haSe been some
what reduced during 1921. from the
: London viewpoint. no less than from
here. by trade deadlocks, price recess
sions and fluctuations in foreign ex-
change.
To avoid loss from depreciation of
moneys held abroad. participations in
commercial and Industrial undertake.
ipgs In Central and Eastern Europe
Became frequent by banks on the con-
tinent, especially French and italian.
and by individuals. especially British
and American.
Practically every bank with an in
ternational business has suffered
losses" says the London Statist,
which in several instances led to
suspension. In Japan the Seventy
fourth Bank Of Yokohama and the
Agricultural and Industrial Savings
Bank shut down in 1920, while in
July OF that year the Banco Italiano
del Uruguay suspended and in De-
cember the Banco de Barcelona fol-
lowed suit
Suspensions in Cuba.
The Cuban crisis caused suspension
Of three large and eleven small private
banks.
Failure of the Banque Industrielle
de Chine led to widespread loss and
the many proposals put forward for
reconstruction have so far failed.
"Oesterreichische Landerbank of
Vienna. the Natiunei Bank of Buch-
Arrest. several other Rumanian banks.
the Pfalzische Bank OF Ludwigshavep,
Allgemeine Bankverein of Dusseldorf
and the Helsingfors Diskontobank
have been involved in difficulties
while at home a petition was filed for
compulsory winding up Of the London
and General Trade Bank, and thu
British-American Continental Bank
has gone into liquidation.
TronbIe I'm New York.
AT New York the Foreign Trade
Banking Corporation went into yolun-
tary liquidation on account OF un
settlement in international commerce
and the Mercantile Bank OF the
Americas passed into the hands of
a committee. owing to fall in COM
modify prices and dislocation Of ex-
changes in Cuba and Central and
South America The first mentioned
institution dealt in acceptances and
was generally regarded as the pioneer
discount bank in the United States
while the second was organized dur
ing the war by American banks and
trust companies to finance import and
export trade.
These banking syndicates have be-
come not uncommon across the At
lantic. facilitating by acceptance
movement of the large export surplus.
Union of interests distributed risks
and by mobilizing the financial re-
sources of outlying districts relieved
monetary pressure on the big centers.
DiversificatiOn OF hazards over many
countries and commodities was also
an attractive feature. Side by side
with this development. some Of the
largest banks established a system of
foreign branches or subsidiaries.
For time all went well, but the
cancellation Of contracts that ac-
companied trade depre ssion led to the
return to American drawers Of drafts
dishonored by foreign bcyers in re-
spect to goods financed by these new
organizations. and the consequent
loss. combined with unsettlement of
trade and exchanges has brought
about an almost complete reversal of
policy
During 1921. so far as we can as
certain. more than twelve foreign Of
- fees or agencies OF American banks
have ceased operations. The stronger
units still maintain their overseas con-
nections. but the fact that the hazards
Of foreign banking have proved too
much for many American bankers is
nf iCfl1lr aic~rf Er.tnEe