BEPLIES TO OARD AND SCHEDULE INQUIRIES. . 427

nuthorized to extend such facilities to clients for the acceptance of drafts covering
 domestic transactions, although the State banking law in New York
gives permission to State banks and trust companies of extending these facilities.
 for both foreign and domestic transactions. This is likewise the case ‘in
Maryland, Utah, Vermont, and Texas—the latter restricted to foreign acceptances
 only; but the laws of other States carry no provision for banks extending
 to their customers the use of its credit in the development of commercial
relations, and it would seem apparent that State bank legislation throughout
the United States be amended to harmoniously conform to the new and better
system,
It is opined that we as a Nation can not successfully develop our foreign
trade so long as it is necessary for us to operate through banking institutions
of competing countries, and while the Federal reserve act provides for the
establishment of branches by member banks in foreign countries, it is felt
that few banks care to assume the risk separately. Jointly owned foreign
sanks would appear to best serve the requirements of the country as a whole.
Cooperation thrives best where action through association is legally possible
and practically safe.

B. Conprrions AND NEEDS OF AMERICAN SHIPPING.

A large proportion of the remainder of those answering these
questions expressed the idea that there is a great need for a merchant
 marine. It seems to them essential that we have better transportation
 facilities of our own. It is generally urged that the Government
 cooperate to make it Zone for shipowners of this country
 to compete with those of foreign countries on an equal basis.
Suggested methods for developing an American merchant marine.—The
 head of a hop-growing concern presents the subject and
gives his ideas as follows:
i. America should increase its merchant marine.
2. The American merchant marine should be American in the fullest sense
of the name.
3. The American merchant marine should be built in America bx American
laborers and owned by Americans. The vessels should be built of American
material and they should be manned by American officers and crew.
4. The American merchant marine should have proper advantages either by
way of subsidy or preference or other advantages to make it pay America to
increase its merchant marine.
5. If it is determined to allow subsidies, they might be made to apply only
when the vessels can not otherwise be operated at a fair profit. There is no
sense in paying subsidies when shipowners are making fabulous profits, as at
present,
6. The relations between an American vessel and the American Government
 and the many advantages of such relationship should be made mutually
reciprocal,
7. When a vessel has received any protection or any subsidy or any other
advantage by reason of being under the American flag, it should never be
allowed to change its flag.
8. There should be a merchant marine commission with power to regulate
scean rates and shipping regulations. Such commission would, however, need
allow greater latitude in rates, etc., to ocean carriers than the Interstate Commerce
 Commission allows to rail carriers.
9. The monopoly that American vessels have on American coastwise and
lake traffic makes subsidy, etc., in such business unnecessary.
10. Subsidies or special advantages should be limite. to foreign business of
American vessels, and should be so arranged to give special consideration to
American vessels on regular routes. This plan would cause American vessels
to go on regular runs and foreign vessels to take the irregular or tramp traffic.
11. When all practicable regular runs are covered by American vessels, a
condition which will take many years to reach, it may then be advisable to
give subsidies or special advantages to tramp vessels. .
12. Subsidies and special advantages should be as far as practicable fixed on
export traffic instead of both export and import, because it is the export trade
that should be developed. while imports should be discouraged.