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Show WOULD AMEND BANKING LAW John J. Arnold Urges Federal Provision for Capitalization of Foreign Banks. st Louis. Jan 21. Amendments to the federal banking laws whereby American banking institutions could unito with Americans interested in over sea commerce, in capitalization of foreign hanks, was urged' by John J Arnold, vice president of the First National bank of Chicago in an address ad-dress before the National Foreign Trnde convention bore today. He said : "A method, which has been given some consideration, is that of organ sing a separate banking corporation, the capital of which should be subscriber! sub-scriber! bv Americans interested In the trade of tho countries where such aji institution is to he estab lished. Under our present lawb this would necessarily be confined to individual in-dividual or eorporatious rather than banking institutions "It is my judgment that, a movement move-ment nf this character should be launched by the banking institutions of our land, and I should like to see' this body endorse the recommendation recommenda-tion that our laws be amended so aa to permit American banking institutions institu-tions to subscribe not more than an, aggregate amount equal to 5 per centi of their respective capital toward the! capitalization of foreign banks. "During recent months a great deal has been said with regard to America Amer-ica making loans to the belligerent nations. I think we are agreed that the destruction of life and property is an economic waste and that in a conflict such as that which is now raging In Europe the entire world will have to help bear the cost "It is therefore a reasonable conclusion con-clusion that the longer the war is prolonged the heavier will become our part of the cost. From an economic standpoint we can only conclude that making loans to the belligerent na tions is funilBhing them with sinews of war. In my judgment it would be a much wiser procedure to supply the countries with whom we are seeking trade development with funds which they require for the development of commerce. "European capital in the past has been furnished to South American governments and corporations. Under the operation of our federal reserve act, we are placed in a position where our credit facilities are made more elastic and on this account. I believe be-lieve the time is most propitious for American capital to seek employment in tbls manner What applies to South America applies to the Orient as well" oo |