EXCERPTS FROM HEARINGS.

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National City Bank is now taking steps in that direction, as you know. The
Shawmut National Bank also is considering extensions of that kind. It seems
to me if banks could be encouraged, even in groups, to go down there it would
assist us immensely. People naturally like to buy where they are getting credit.
A great deal of business passes by and goes to England and the Continent in
that line.

The lack of proper banking facilities was also emphasized by John
Marshall Smedes, of the First National Bank, of Cincinnati, who
aald

Another great trouble we have, as I understand the question, is the lack of
proper banking facilities, which furnish very little banking connection between
this country and South America, and the banking is largely done through London,
 Paris, and Berlin. }
The Germans have made very great effort to fasten their banking system
upon the people down there, and we have neglected it. The result is that when
you go to pay your bills, or when you want their paper discounted down there,
it is almost impossible to get it done with us here. It has to be done through
foreign brokers, and that adds a. burden fo the problem of selling and getting
payment.

Credit énformation—T. Edward Wilder, of Wilder &amp; Co., Chicago,
 Ill, said:

One of our_greatest troubles, of course, is credits. We are unable under our
present arrangements to transact business with South America, with Russia,
with China, and some of the other neutral nations—Russia is not neutral, of
course—because of our inability to meet conditions which have been met by
Germany and England in long credits. The banking arrangements which are
being made now by the National City Bank, of New York, and the National
Shawmut Bank, of Boston, and some of the other banks are helping us in our imports
 of raw materials, but in our exports we have no relief as yet. We are
losing much business because of that condition.
Edward T. Hendee, secretary of Joseph T. Ryerson &amp; Son, Chicago,
 Il, said:
« # * qyunder the heading of banking, I think little need be said. We have
no American branch banks abroad, and until we have such banks we are going
to be at a very great disadvantage.

G. Fred Collins, salesman for David Lupton’s Sons Co., Chicago,
Ill, and former salesman in South America, representing several
large concerns, said:

The German houses gave from six months to a year credit. The American
manufacturers wanted their cash in New York City, so I did most of my business
 on the last trip through the American Trading Co. and W. R. Grace &amp; Co..
and people of that character, who had their representatives down there and
who would collect drafts and so forth against shipments made with bill of
lading attached. All the business I did was done that way. I did not give
credit to anybody because the American manufacturer did not want to give
credit, he wanted to get cash in 30 or 60 days, and nobody was willing to give
any credit. The German manufacturer did give credit and the English manufacturer
 did also.
O. E. Osthof!, vice president of H. M. Byllesby &amp; Co., Chicago, Ill.,
which company has a controlling interest in a steamship line plying
to South American ports and has recently organized an export house,
said:

In starting this mercantile company we find, for instance, that the banking
facilities .are not quite what they should be as far as the American banks are
concerned. There are several large banks in this country who have advertised
iately their purpose to extend credits and organize branches, as an illustration,
in South America; but we find that in order to have them really extend the
facilities that foreign banks do now, they will have to have a great deal more
experience. and at the present time they are probably feeling their way.