The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1923-07-06
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 1otations 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. i
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 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 tos
the extent that American industry,
commerce and agriculture are inter:
national. True, the banker must take
within. his puryiew continuously the
conditions of affairs and the current
Of things throughout the world. sbut
80 must the exporter and importer,
and so must the farmer take into &C.
count the prices and tendencies of the
world market in Liverpool. stsgsF
Banking Mostly Home Business
1.-THE American bankers market is
the home market. His success Is con-
ditioned upon the capacity and will
ingness Of the American investor 70
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.
1.-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
of foreign governments or Industries
has hitherto been, with sporadic ex-
ceptions, Of relatively Inconsiderable
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 loaning
D. American funds to Europe provid
I'D such loans are considered sound ash
10 security and are made for legiti i
nate. constructive purposes. Indeed /.
'uch loans ought to, and believe will,
,e made in Increasing measure, when
In Europe will have become
,uch as to warrant 1t. ry
1T is manifest that the promotion /
If our export trade, including, Of
'ourse, the export of farm products,
equires US, under the circumstances
10 they now are and are likely to
emain for some time, to aid the pur.
hasing power Of other nations by eI
ending to them financial facilities to
reasonable extent go ~ =
1T is the function Of the banker to :
q instrumental in carrying out such :
In doing so, he IL the =
,eans Of serving useful national
urpose. Just as he served q useful, n
adeed highly important national \
urpose. in being the means Of attract Il
Y and bringing European capital to re-
merica in former years when condi n
ons we're reversed and such capital :
as nothing less than vital to the del "
elopment Of this country and the ~
3alf2Atfon Of ita onnor<un,%y>. ~