FINANCE  AND  CREDITS  297
that  we  as  a  nation  take  the  bulk  of  their  products, ­
  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