The Filer record. (Filer, Idaho) 1919-1930, 1923-08-02
INTERNATIONAL
BANKER" A MYTH
Otto H. Kahn Refutes Idea That
Foreign Finance Activities Dull
Allegiance to America.
BANKING REFLECTS BUSINESS
international Farmer" and Other
BusIness Men Who Sell to Foreign
Markets Create Demand for Inter
national Financial Service.

The idea that bankers engaged In
financing foreign trade and In hsn-
ding foreign bond fotations are par
ticular cult Of international bankers"
actuated by motives differing from
those of other bankers was refuted
recently by Otto H. Kahn Of New
York. in an address before the Roch-
ester Chamber OF Commerce.
There is no such thing as an In
ternational Banker In America, as the
meaning Of the term is generally
understood" Mr.. Kahn said. He exists
in the Imagination of people all too
numerous. but he does not exist In the
flesh. You might just as well speak
Of the international Farmer because
the farmer sells a certain percentage
OF his crops TO Europe. or OF the In
ternationai Manufacturer
"The banker maintains. and can
maintain. international contact. and
conduct international business, only to
the extent that American industry.
commerce and agriculture are inter
national True, the banker must take
within his purview continuously the
conditions of affairs and the current
Of things throughout the world. but
80 must the exporter and importer.
and so must the farmer take into &C
count the prices and tendencies Of the
-orid n, arGef In Tfvarnool
Banking Mostly Home Business
"The American bankers market 10
| the home market. His success Is con-
ditioned upon the capacity and will
| ingness OF the American investor TO
absorb the securities which he offers.
His very existence depends upon the
confidence and cooperation OF the
public and OF his Northumberland
any banker whose activities would
| Justly create the impression that he
was actuated by cosmopolitan rather
! than by American interests would
, very soon lose that confidence ana
following.
The business which he does for his
own account In, with. or for Europe.
10 inconsiderable as compared to the
business he does In America His prin-
cipal functions In relation to Europe
are to provide the requisite banking
facilities for export and import and
for travellers That part OF his fune-
tons which consists In financing loans
Of foreign governments or industries
has hitherto been. with sporadic ex-
ceptions. OF relatively inconsiderabie
proportions as compared to the vast
ness OF the volume Of his transactions
in financing American industry. com
merce and enterprise.
Necessity for Foreign Credits
In saying this. do not mean to
imply that there is anything that calls
for apology In the floating of foreign
loans In America and in the losning
o. American funds TO Europe. provid-
ed such loans are considered sound as
to security and are made for legfti-
mate. constructive purposes Indeed.
such loans ought 70. aud believe will.
be made in Increasing measure. when
conditions In Europe viii have become
such as 20 warrant II.
III is manifest that the promotion
Of our export trade. including. Il
course. the export Of farm products,
requires us. under tie circumstances
as they now are and are likely to
remain for some time. 10 aid the pur.
chasing power Of other nations By ex-
tending to them financial facilities to
q reasonable extent
IT Is the function OF the banker to
be Instrumental IN carrying out such
transactions. In doing so, be 10 the
means Of serving a useful national
purpose. Just |. he served a useful.
indeed highly important national
purpose. in being the means OF attract
Ing and bringing European capital to
America in former years when condt
tons we're reversed and such capital
vas nothing less than vital to the de-
velopncnt OF this country aud the
rsahsauoa II IT. opportulitiss-- !.