The Lee County journal. (Leesburg, Ga.) 1904-19??, 1923-08-10
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 han
ding foreign bond flotatlons are a 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 be does not exist In the
flesh. You might just as we'll speak
OF the international Farmer because
the farmer sells a certain percentage
OF his crops to Europe, or OF the In
ternational Manufacturer
1.-THE banker maintains, and can
maintain, international contact. and
conduct international business, only 10
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
SO must the exporter and importer,
and so must the farmer take into &C
count the prices and tendencies Of the
world market In Liverpool.
Banking Mostly Homo Business
"The American bankers market ia
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 and
following.
THE business which he does for his
own account in. with, or for Europe
Is inconsiderable as compared to the
business he does In America. His prin'I
cipal functions in relation to Europe
are to provide the requisite banking.
facilities for export and import and
for travellers. That part of his func'
lions which consists in financing loans
Of foreign governments or industries
has hitherto been. with sporadic ex
ceptions, OF relatively inconsiderable|
proportions as compared to the vast.
ness of the volume of his transactions
In financing American industry, com
MERGE and enterprise.
Necessity for Foreign Credits
"In saying this, do not mean to
imply that there is anything that call,
for apology In the floating OF foreign
loans in America and in the loanins
o. American funds to Europe, provid
ed such loans are considered sound al
to security and are made for legiti
mate, constructive purposes. Indeed
such loans ought to, and believe will
be made in Increasing measure, when
conditions in Europe will have become
such as to warrant 1t.
at Is manifest that the promotion
Of our export trade, including, ~
course, the export OF farm products
requires us, under the circumstances
as they now are and are likely til
remain for some time, to aid the pur
chasing power OF other nations by ex
tending to them financial facilities t
q reasonable extent.
''Tt Is the function Of the banker t.
be instrumental In carrying out such
transactions. In doing so, he is the
means OF serving a useful nationa
purpose, just as he served a useful
indeed a highly important nationa
purpose, in being the means Of attract
ing and bringing European capital te
America in former years when cOndi
tons were reversed and such CAPITA
was nothing less than vital to the de-
velopment Of this country and the
realization OF its opportunities"