After the war America will have a gigantic international mercantile
marine, which must be employed in international commerce; otherwise it
will pass into the hands of other nations who will employ such ships in
commerce. As a means of maintaining American commerce and keeping the
American merchant marine employed we must expand our export business,
and one of the factors of vital importance is to have adequate foreign
banking facilities, information and credit furnished our exporters and
our importers.
The banking capital employed in the foreign exchange department of the
American banks probably will not amount to $200,000,000. The usual
bills are 30, 60 and 90 day bills, so that the available American
Capital in this service is by no means adequate to handle the foreign
business. Our imports and exports in 1917 were over nine billions. We
ought to handle a large part of foreign international bills, for we
have the banking power if it were organized and employed. As a means
to this end I have introduced a bill in the United States Senate (Sen.
3928) which I fully explained in the Senate Feb. 25, 1918, to establish
a Federal Reserve Foreign Bank.