The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1923-08-17
Otto n. Kahn Refutes Idea That
Foreign Finance Activities Dull
Allegiance to America.
BANKING REFLECTS BUSINESS
international Farmer" and Other
Business Men Who Sell 20 Foreign
Markets Create Demand for Inter.
national Financial Service.

A. AuSo INV LINN SAooe
financing foreign trade and in han.
ding foreign bond iotations 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 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
t%ernational 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
SO must the exporter and importer,
and SO must the farmer take into &C
count the prices and tendencies CT the
world market in Liverpool.
Banking Mostly Home Business
THE American bankers market is
the home market. His success is con.
ditioned pom the capacity and will
ingness OF the American investor 60
absorb the securities which he oiCrs.
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.
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-
tons which consists In financing loans
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.
merce and enterprise.
Necessity for Foreign Credits
I'm saying this, l do not mean to
imply that there Is anything that calls
for apology In the floating OF foreign
loans In America and In the loaning
o. American funds to Europe, provid.
ed such loans are considered sound as
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 II.
1T Ia manifest that the promotion
OF u export trade, including, Of
course. the export of farm products,
requires US. under the circumstances
al they now are and are likely 20
remain for some time. to aid the pur,
chasing power Of other nations by ex.
tending to them financial facilities to
q reasonable extent.
1T Is the function of the banker to
be instrumental In carrying out such
transactions. In doing so. he is the
means OF serving a useful national
purpose. just as he served a useful,
indeed q highly important national
purpose. In being the means Of attract
Ing and bringing European capital &c
America In former years when cosdi
tons were reversed and such capttal
was nothing less than vital to Ii. 10
velopment Of this country aLe tAe