FINANCE AND CREDITS 297 
that we as a nation take the bulk of their prod 
ucts, combine to overcome all attempts on 
the part of Europeans to establish banks in 
these countries. As the local exporters 
ship their goods to our shores where they 
are disposed of they instruct their agents 
to deposit the moneys so received in local 
American banks, against which they issue 
checks in liquidation of indebtedness, thereby 
eliminating the necessity for the services of the 
international banker. Local banks in these 
countries, never very strong, and always subject 
to forced loans from financially embarrassed 
governments, do not enter materially into 
the business life of the community although 
they also maintain credits in New York and 
sell drafts against them. The consequence is 
that every leading merchant throughout these 
lands develops into a foreign banker, on a 
small scale, and buys and sells exchange. As 
long as this condition prevails, and it works 
most satisfactorily, the foreign bank will not 
be required to open its doors. 
Practically the same state of affairs occurs