54 TWENTY-FIRST REPORT. 



(3) The First National Corporation, Boston, with one branch. (4) The Asia 

 Banking Corporation, New York, and (5) The International Banking Corpo- 

 ration, New York, with twenty-four branches. Practically all of these corpo- 

 rations are operating in Central and South America and the Orient. In addi- 

 tion to these exclusively foreign trade banks, two national banks have estab- 

 lished foreign branches, — The National City Bank of New York, with twenty- 

 one branches in South America, Cuba, Porto Rico, Russia, Italy, a represen- 

 tative in Copenhagen, and authorized to establish branches in Belgium, 

 Switzerland, Portugal and Spain; and the First National Bank of Boston with 

 one branch in Buenos Aires. Among the State banks having foreign branches 

 are The Guaranty Trust Company, The Equitable Trust Company, and The 

 Farmers Loan and Trust Company, all of New York, with offices in England 

 and France and agencies in all parts of the world. 



In conclusion, we may summarize the acceptance situation in the United 

 States by stating that the necessary banking machinery has been fully author- 

 ized by the Federal Reserve Act, that many banking organizations have taken 

 advantage of the opportunity to accept and discount, that the war has been a 

 factor in the rapid development of a market in this country, and in making it 

 unnecessary to submit to the strong competition of the London market, and 

 finally that the future looks even better than the past, because (1) business 

 men are becoming accustomed to the use of the acceptance and are favoring 

 it, (2) a campaign of education by the different banks and the American 

 Acceptance Council is well under way, and (3) the demand for acceptances 

 should expand immensely during the next few months, after the banks are 

 relieved of the billions of government short-term war paper. Mr. Paul War- 

 burg, formerly a member of the Federal Reserve Board, says that, "when we 

 return to normal conditions, it is likely that the Federal Reserve system will 

 be found carrying as a permanent investment a sum very largely in excess of 

 its pre-war normal load, and it is to be expected that then, with war paper 

 out of existence, acceptances will again play the leading role in the Federal 

 Reserve system investments." The future then for the acceptance market in 

 the United States seems very promising, although it is not likely that New 

 York will surpass London, with its history and natural advantages, for many 

 years to come. 



University of Michigan, 



