7. Banks as exhort promoters.—The number of American banks active in foreign trade is small. The National City Bank of New York City has branches in many of the South American countries as well as in Asia and in Europe, and supplies foreign traders with information as well as finances their shipments. The American International Corporation with a cap italization of $50,000,000, organized to undertake the making of foreign investments, is closely connected with the National City Bank. The bank publishes a monthly magazine of information, The Americas, and pamphlets on special topics. The Mercantile Bank of the Americas, New York City, American Foreign Banking Corporation, New York City, First Na tional Corporation of Boston, and the Discount Cor poration of New York are other banking institutions interested in promoting foreign trade.
A constantly increasing number of the leading American banks and trust companies, among them the National City Bank, National Bank of Com merce, Irving National and Guaranty Trust, all of New York, and the First National Bank of Boston are issuing letters, pamphlets and sometimes books dealing with various aspects of foreign trade.
In France the Credit Lyonnais, the Comptoir Na tional d'Escompte de Paris, and the Societe Generale de Credit Industriel et Commercial are the most ac tive in foreign trade.
England is represented abroad by a large number of banks. The Bank of Egypt, the British Bank of South America, the Hongkong and Shanghai Bank, the Imperial Bank of Persia, the London and River Plate Bank, and the American Bank are but a few of a long list. English foreign banks usually spe cialize in one section of the globe and establish many branch banks.
The German banks in pre-war times did not spe cialize as closely as English banks but they had a certain degree of territorial specialization. Among the largest German "over-seas banks" at that time were the Banco Aleman Transatlantico which had headquarters in Berlin and branches in more than twenty-three Latin-American cities. The Banco de Chile y Alemania with headquarters in Hamburg and twelve branches in Latin America, the Deutsch Siidamerikanische Bank of Berlin in Buenos Aires, the Deutsche Bank and the Disconto Gesellschaft were very powerful banks. The latter two had been in strumental in establishing many banks in foreign lands. The Dresdner Bank had specialized in the Balkan States and had also entered the South American field.
The documents which the exporter attaches to the draft discounted at the bank to be forwarded to for eign banks for collection, tell an interesting story to those engaged in foreign trade. The German over
sea banks were not slow in realizing that, and the Ger man manufacturers were greatly benefited by the de tailed information regarding the business transactions of foreign rivals which was furnished them by their banks. These latter, with characteristic Teutonic morality, considered it a part of their legitimate busi ness to act as business spies.
8. Recent many changes in the banking world have taken place, all pointing toward an exploitation of the international banking field on a larger scale than ever before. The Hollandsche Bank voor Zuid Amerika of Amsterdam has opened branches in Rio de Janeiro and Buenos Aires. The English banks are increasing the number of their branches especially in South America. The consoli dation of the London County and Westminster Bank with Parr's Bank, both strongly intrenched in foreign connections, is merely one of many consolidations tak ing place in that country. The British Trade Cor poration, organized in 1917, "to provide financial fa cilities for trade after the war," with a capitalization of X10,000,000, is another significant development; and the organization of the British Overseas Banks Association comprising all the most important banks engaged in foreign transactions still another. The Italian Government in 1917, established the National Institute for Foreign Exchange to control all foreign exchange transactions in Italy. This includes the es tablishing of the weekly rates.
Despite their desperate situation in the last year of the war, German foreign bankers were not inac tive. In April, 1918, a Society for International Un dertakings was created with a capital stock of 20,000,000 marks as a rival of the American Inter national Corporation. Another similar, but even larger organization with the same purpose was founded in Hamburg about the same time.
9. Sample fairs.—One of the most interesting re cent developments in foreign trade promotion is the opening in many parts of the world of "sample fairs." At the beginning of the war only two national fairs, that at Nijni Novgorod in Russia, and that at Leip zig in Germany, had international significance. At these fairs merchants from every corner of the world came together to offer their goods for sale and to place large orders. The manufacturers thru these fairs contracted for delivery far ahead of production and reduced their risk by thus being able to adjust production to sales. Business was done thru sam ples and admission was limited to bona fide buyers.