Regional President Speech

ASOCIACION DE BANQUEROS DE MEXICO XXIX CONVENCION BANC ARIA Palabras del Sr. M. Monroe Kimbrel, Presidente de la Asociacion de Banqueros Americanos y de la Junta Directiva del First National Bank, de Thompson, Georgia, E. U. A. Remarks of M. Monroe Kimbrel, President of The American Bankers Association, and Chairman of the Board, First National Bank, Thompson, Georgia, U. S. A. 30 1963 Guadalajara, Jal., Mex., de marzo de . Publicado por Published by ASOCIACION DE BANQUEROS DE MEXICO Mexico, D. F. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis ASOCIACION DE BANQUEROS DE MEXICO XXIX CONVENCION BANC ARIA Palabras del Sr. M. Monroe Kimbrel, Presidente de la Asociacion de Banqueros Americanos y de la Junta Directiva del First National Bank, de Thompson, Georgia, E. U. A. Remarks of M. Monroe Kimbrel, President of The American Bankers Association, and Chairman of the Board, First National Bank, Thompson, Georgia, U. S. A. 30 1963 Guadalajara, Jal., Mex., de marzo de . Publicado por Published by ASOCIACION DE BANQUEROS DE MEXICO Mexico, D. F. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Es para ml, en verdad, un honor encontrarme hoy en- tre ustedes y ofrecerles los saludos cordiales de una organi­ zation hermana: la Asotiacion de Banqueros Americanos. Tambien, para ml en lo personal, es muy placentera esta ocasion, puesto que me brinda la oportunidad de dis- frutar de nuevo del afecto y la gentileza del pueblo mexi- <cano. Toda persona que goza de su hospitalidad, como ahora la senora Kimbrel y yo, percibe un nuevo matiz en la tignificacion de la hermandad y la comprension humanas. ,A juzgar por el aumento del numero de turistas que visitan y regresan una y otra vez a Mexico, la cordialidad es parte iimportante del caudal nacional. En esta Convention figuran varios oradores mucho mas 'familiarizados que yo con los problemas y posibilidades del jpals y, aunque no quiero quitarles su tiempo, me es impo- :sible resistir la tentacion de felititarlos por el dinamico pro- tgreso economico y social que se verifica en Mexico y que illama la atencion y gana el respeto de todo el mundo. 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis It is indeed an honor for me to join you today and to extend greetings to you on behalf of a sister organization — The American Bankers Association. This occasion is also a pleasant one for me personally. It has given me the opportunity to enjoy again the wonder­ fully warm and gracious spirit of the people of Mexico. Anyone who experiences your hospitality, as Mrs. Kimbrel and I are doing now, acquires fresh insight into the meaning of human understanding and brotherhood. Judging by the rising tide of tourists and the number who keep returning, your cordiality is not the least of your national assets. Your program includes several speakers who are much more familiar with your problems and prospects than I am. While I would not trespass on their time, I cannot resist the temptation to compliment you on the dynamic economic progress that is being made here in Mexico. It is earning widespread attention and respect around the world. 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Este progreso impresionante es un homenaje a las le- yes y practicas bancarlas mexicanas, ambas tan solidas. El Gobierno y la banca, aqui en Mexico y— en este sentido— en cualquier otro lugar, deben lograr dos cosas importan- tisimas: mantener una moneda estable y satisracer las de- mandas legitimas de credito. Cuando solo una de estas es atendida y la otra descuidada, los bancos no logran llegar a su meta. Probablemente ustedes —al igual que sus co- legas banqueros de los Estados Unidos— han encontrado que un equilibrio adecuado entre las dos, produce general- mente censuras y crlticas de sus extremos. La relacion de sus cifras, sus "records”, como los veo, indican que ustedes estan llevando el curso central, equilibrado, que sirve al interes publico. Ustedes han mantenido una moneda estable; no han puesto restricciones a su libre convertibilidad y han decla- rado repetidas veces con firmeza que no le impondran con­ trol alguno en un futuro previsible. Estos hechos, sumados a. sus intenciones, los colocan en una situacion excepcional, plies, por ejemplo, casi todos los miembros del Fondo Mo- netario Internacional se han visto en la necesidad de restrin- gir, en alguna ocasion, esa convertibilidad monetaria que ustedes siempre han mantenido libre. Tal vez el aspecto mas alentador de su desarrollo en los ultimos anos ha sido el exito logrado en el equilibrio de su economia. La de ustedes es, con mucho, la economia mas nivelada de toda Latinoamerica. Este equilibrio es la base esencial del progreso. Con el han eliminado ustedes las causas de las amplias fluctuaciones de su desarrollo econo- mico y acabaron tambien con las circunstancias que los obli- 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis This dramatic progress is a tribute to both your sound banking laws and your sound banking practices. The govern­ ment and the banks, here in Mexico, or for that matter anywhere, must constantly meet two overriding require­ ments. The first is maintaining a stable currency. The second is meeting the legitimate demands for credit. When one requirement is met and the other is neglected, banks fall short of their goal. Like your fellow bankers in the United States, you have probably found that a proper balance be­ tween the two generally results in criticism from extremists on both sides. The record, as I read it, indicates that you are taking the balances, middle course which serves the public interest. You have maintained a stable currency. You have not placed restrictions on free convertibility of this currency. And you have firmly stated several times that you do not intend to do so in the foreseeable future. This record plus your declared intentions place you in rare company; all but a few members of the International Monetary Fund have found it necessary, on occasions, to restrict currency converti­ bility. Perhaps the most heartening aspect of your growth in recent years has been the achievement of balance in your economy. Yours is by far the best balanced economy in all Latin America. This balance is the essential building block for progress. You have eliminated the basic cause of wide fluctuations in your growth by eliminating the circumstances 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis gaban a depender de un producto o de una mercancia basica. Me impresiona especialmente su desarrollo de 1962. La agri- cultura, las industrias petrolera, manufacturera y de la cons­ truction, asi como la produccion de electricidad y el comer- do, todos mostraron mejoria. Inclusive el ingreso per capita aumento, a pesar del incremento de la poblacion. Algunos de ustedes sabran, tal vez, que los banqueros de los Estados Unidos celebramos este ano un centenario. Se trata del centesimo aniversario del Acta de la Moneda Nacional, la Ley que nos proporciono nuestro primer papel moneda respaldado por el Gobierno Federal. Tambien nos dio el regimen de bancos privados estatuidos y supervisados por el dicho Gobierno Federal, los cuales, sumados a los similares de los gobiernos estatales respectivos, constituyen nuestro Doble Sistema Bancario. Para iniciar la celebracion de este centenario, la Aso- ciacion de Banqueros Americanos patrocino, en Washington, D. C., un Seminario sobre Desarrollo Economico. Nos reu- nimos en el varios representantes ejecutivos de distintos cam- pos de actividad para discutir la forma de mejorar la tasa de desarrollo economico de los Estados Unidos. El Presidente Kennedy participo en el programa. Nuestro interes en el desarrollo economico — en reali­ dad el interes de todo banquero— , debe considerarse como un autointeres, pues, nuestro sistema bancario o cualquier sistema bancario privado, no puede prosperar en una econo- mia estancada. Su prosperidad y su auge estan ligados direc- tamente con el auge y la prosperidad de la economia a que sirven. El desarrollo bancario y el economico no pueden 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis which compel reliance on one product or one basic com­ modity. I was particularly impressed with your 1962 growth. Agriculture, petroleum, manufacturing, construction, elec­ tricity and commerce all showed improvement. Per capita in­ come increased in spite of an increase in population. As some of you may know, the bankers in the United States are observing a Centennial this year. It is the 100th anniversary of our National Currency Act—the law which gave us our first paper currency backed by the Federal Gov­ ernment. It also gave us a system of private banks chartered and supervised by the Federal Government. These federally chartered banks, together with banks chartered by the re­ spective state governments, make up our dual system. To begin the observance, The American Bankers Asso­ ciation sponsored a Symposium on Economic Growth in Washington, D. C. We brought together leaders from sev­ eral fields to discuss ways to improve the rate of economic growth in the United States. President Kennedy participated in the program. Our interest in growth, and for that matter any banker’s interest in growth, might be considered enlightened self-in­ terest. Our banking system, or any private banking system, cannot prosper in a stagnant economy. Its prosperity and growth are tied directly to the growth and prosperity of the economy it serves. Banking growth and economic growth 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis realizarse separadamente, es necesaria su interrelation y mu- tua dependencia. Como todos ustedes saben, en Mexico los bancos pri- vados incrementaron en 1962 sus prestamos e inversiones en un 15%, aumento tres veces mayor que el del ano ante­ rior. Estos resultados no podrian haberse logrado en una economia perezosa. Debo anadir, como colega, que su prac- tica de insistir en equilibrios compensatorios —practica tam­ bien comun en los Estados Unidos— puede ayudarlos a sostener la base de deposito para satisfacer solicitudes de credito adicional en lo futuro. Tambien servira para mante- ner el progreso economico en marcha. Los esfuerzos de su Gobierno para mejorar los caminos carreteros y ferroviarios y realizar grandes obras de irriga­ tion y de generacion electrica con prestamos del Banco Mundial, tambien son elogiables. Todos estos proyectos au- guran favorablemente el progresO industrial y estimulan a. muchos mexicanos a invertir mas en su propia patria. Empero, este progreso acarrea sus problemas, pues una economia que da muestras de un adelanto ampliamente ci- mentado, es un atractiyo universal para los inversionistas a largo plazo — esta es la forma mas elevada de adulation entre financieros. Cuando el Mercado Comun Europeo demostro que estaba tratando de estimular el desarrollo economico de Europa, los inversionistas a largo plazo de todo el mundo .se interesaron. Los inversionistas de Estados Unidos envia- ron muchos millones de dolares a Europa, los cuales ayu- daron a estimular un desarrollo adicional. Esta fuga de ca­ pitals complied la situation de nuestra balanza de pagos, pero, como creemos en la libre convertibilidad, el libre 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis cannot come about independently; they are interrelated and mutually dependent. As you all know, the private banks in Mexico increased loans and investments by 15 per cent last year. The increase was three times as great as the increase the previous year. These results could not be achieved in a sluggish economy, I might add, as a fellow banker, your practice of insisting on compensating balances—a practice of bankers in the United .States—can help you maintaing the deposit base to meet additional credit demands in the future. It will keep eco­ nomic progress on the move. Your Government’s efforts to improve roads, railroads, irrigation and power facilities through loans from the World Bank are also to be commended. These projects augur well for industrial progress. These efforts have also encouraged .more of your countrymen to invest in Mexico. Yet this progress brings problems. As you know, an economy showing a broadly based advance is a universal .attraction to long-term investors. It is the highest type of financial flattery. When the Common Market showed that it was going to stimulate economic growth in Europe, it at­ tracted long-term investments from all over the world. United States investors sent millions of dollars to Europe. These dollars helped to stimulate additional growth. The trend •complicated our balance-of-payments situation;—but because we believe in free convertibility, free trade and free move- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis comercio y el libre movimiento del dinero, rechazamos toda idea de cortarla. No me sorprendi el otro dia al leer en un boletin del First National City Bank de Nueva York que los europeos tienen mas inversiones a largo plazo en los Estados Unidos que las que los estadounidenses tienen en Europa. Damos la bienvenida a estas inversiones porque ayudan a la crea- cion de fuentes de trabajo, mejoran nuestras relaciones co- merciales y coadyuvan a neutralizar las inversiones de los Estados Unidos en el extranjero. Creemos que esas inversio­ nes a largo plazo convienen a nuestros intereses y las acep- tamos gustosos sin catalogarlas ni discriminarlas. Los inversionistas que aprovechan su tiempo y gustan de observar los hechos, se dan cuenta que ustedes siguen un patron muy similar. Hace tiempo hubo quien dudara de la actitud de Mexico hacia las inversiones extranjeras. He hablado con banqueros y hombres de negocios que han tenido prolongadas relaciones con colegas mexicanos o extranjeros que laboran en Mexico, y estas personas, familia- rizadas con la situacion, me informan simpre de un clima favorable y creciente en pro de las inversiones extranjeras en Mexico. Tal hecho me induce a pensar que uno de los obstaculos a veneer es, simplemente, la falta de difusion de lo que es Mexico. Por ejemplo, en julio pasado, cuando el licenciado Mario Ramon Beteta, del Banco de Mexico, discutio sobre las inversiones extranjeras en la Convencion del Colegio de Abogados de Texas, aclaro muchos malentendidos. Su dis- curso ha circulado ampliamente en Estados Unidos y ha ayu- dado a borrar viejas apreciaciones equivocadas. 12 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis ment of capital, we rejected suggestions to curtail capital outflows. But I was not surprised the other day when I read a newsletter from the First National City Bank in New York which pointed out that Europeans have more long-term in­ vestments in the United States than the United States has in all European countries. We welcome this investment. It helps create jobs. It improves our trade relations. And it helps to offset United States investments abroad. We be­ lieve it is in our best interest to welcome long-term invest­ ments so we do so without qualifications or discriminations. Those investors who are willing to take the time and ex­ amine the facts realize that you follow a very similar pattern. There were a few who were slightly apprehensive about your attitude toward foreign investment. I have talked to bankers and businessmen who have had extensive relations with Mexican businessmen and foreign businessmen working in Mexico. These men who are famil­ iar with the situation report an increasingly favorable cli­ mate for foreign investment in Mexico. This leads me to believe that one of the problems is simply a problem of communications. For example, last July when Mario Ramon Beteta, of the Bank of Mexico, discussed foreign investment before the Texas Bar Convention, he cleared up many misconceptions. This speech has been wide­ ly circulated in the United States and has helped to clear up old misconceptions. 13 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Me pareee que la Asociacion de Banqueros de Mexico debiera considerar la posibilidad de participar mas activa- mente en este campo. Un programa ininterrumpido de in- formacion detallada distribuida entre los banqueros de Es- tados Unidos y de otros paises, acerca de la politica de Mexico sobre Inversiones extranjeras, podrla ser muy bene- ficiosa para ustedes y ciertamente, no$ ayudarla en el consejo a nuestra clientela. Me es grato repetir que realmente estoy disfrutando de mi estancia en Mexico y que con sumo gusto desearia po*der prolongarla. Como ocurre a la mayoria de los que visitan su gran pais, deseo ya regresar a el antes de haberme ido. Muchas gracias. i4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis It seems to me that the Mexican Bankers Association might consider the possibility of participating more actively in this field. A continuing program of disseminating infor­ mation to bankers in the United States and other countries about Mexico’s policies on foreign investments might well be beneficial to you and certainly would help us in advising our customers. Again, may I say I am enjoying my visit here in Mexico and only wish that I could prolong it. Like most visitors to- your great country, I am looking forward to returning even before I leave. Thank you very much. 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monroe Kimbrel (1963, March 29). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19630330_monroe_kimbrel

@misc{wtfs_regional_speeche_19630330_monroe_kimbrel,
  author = {Monroe Kimbrel},
  title = {Regional President Speech},
  year = {1963},
  month = {Mar},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19630330_monroe_kimbrel},
  note = {Retrieved via When the Fed Speaks corpus}
}