The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
-
SECTION
giving proceedings
of the
jof American Bankers' Association
Convention
Held at Atlantic
City, September 25, 26, 27 and 28,
INDEX TO THIS
1917.
SECTION.
"'.-Page
Page
NATIONAL
EDITORIAL ARTICLES—
BANKERS AND WAR
SPIRIT OF
89
DETAILED
STATE
ADDRESSES
DETAILED
REPORTS
PROCEEDINGS.....
. .. . . .
160
ADDRESSES
90
. .
BANKING SECTION-
CLEARING HOUSE
SECTION-
.
FINANCE.
CONTENTION
COMMITTEE
BANK
94
118
.132
ADDRESSES
..........'.. .145
COMMITTEE
REPORTS... . ............157
SECTION
BANK
,.
ADDRESSES
.;........................173
WILLIAM B.
PROCEEDINGS...........,183
SAVINGS BANK SECTION.
ADDRESSES
DANA COMPANY.
Act of Congress, by
.193
..
.209
Advertisements see pages 92 and 93
Front, Pine & Dbpeysteb
Copyright in 1017, according to
179
COMMITTEE REPORTS
COMMITTEE REPORTS
For Index to
169
TRUST COMPANY SECTION-
DETAILED
SECTION-
167
PROCEEDINGS
PUBLISHERS.
Sis., New York.
WILLIAM B. DANA COMPANY, in office of Librarian
of Congress, Washington, D. O.
PHILADELPHIA, PA
S|S»CHAFrrfred
teas
CAPITAL AND SURPLUS, $10,000,000
Aots
as
Executor, Trustee, Guardian, Administrator, Assignee
C/W-V-
W;-
J-i
ti'1,
V.I-
>
and
r-
r
"i'V.'V*
*■;
Receiver, also
-r
■
*v' •-
as
•'
•
•'%,
-
v u.y;• :•
y '£
Assumes entire
Individuals
charge of
B.
as
V#' .L'.:'/:-
-
: "J-,
•,
7
.y"-*-;:-
■'
•«,
•••'.
-V V-
Financial Agent
Real
Estate.
in
Allows Interest dn
Burglar-Proof Vaults.
MORRIS, President
THE
ft^NNSY|^ANiyC€OMPANY
for Insurances
TRUST
on
AND
Lives and Granting Annuities
SAFE
DEPOSIT
COMPANY
Capital and Surplus
C. S. W.
BROAD STREET OFFICE
Chestnut and
.
*V!' V-n
'•
Corporations.
or
Deposits, and Rents Safes
E.
•..
Depositary under Plans of
Reorganization, and
for
'*•
.
$7,000,000
PACKARD, President
517 Chestnut Street
Juniper Streets
Philadelphia
v'
Wm. A. Read & Co
Nassau
United States
Bonds,
and
and
Railroad
Cedar
Canadian
Bonds
Investment Securities.
Offerings
CHICAGO
Municipal
and
other
List of Current
application
upon
PHILADELPHIA
234 So. La Salle Street
Streets
1421 Chestnut Street
BOSTON
19
LONDON, E C.
Congress Street
6 Austin Friars
THE CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
57 Broadway
Capital
Surplus and Profits (Earned)
Deposits (Sept. 11, 1917) -
$10,000,000
-
-
-
-
12,623,000
-
-
302,027,000
OFFICERS
A. Barton Hepburn, Chairman
Albert H. Wiggin, President
Samuel H.
Miller, Vice President
Edward R. Tinker, Vice President
Carl J. Schmidlapp, Vice President
Gerhard M. Dahl, Vice President
Alfred C. Andrews, Cashier
Charles C. Slade, Asst. Cashier
Edwin A. Lee, Asst. Cashier
v
.
c
William E. Purdy, Asst. Cashier
Charles D. Smith, Asst. Cashier
William P. Holly, Asst. Cashier
George H. Saylor, Asst. Cashier
M. Hadden Howell, Asst. Cashier
S. Fred Telleen, Asst. Cashier ■
Robert I. Barr, Asst. Cashier
Sewall S. Shaw, Asst. Cashier
DIRECTORS
Henry
W.
A. Barton Hepburn
Albert
H. Wiggin
Edward R. Tinker
Henry B. Endicott
Edward T. Nichols
James N. Hill
Daniel C. Jackling
Frank. A. Sayles
Cannon
h
John J. Mitchell
Samuel H. Miller
Newcomb Carlton
Charles M. Schwab
Guy E.
Tripp
'
Frederick H. Ecker
We Receive Accounts of
Banks, Bankers, Corporations, Firms or Individuals on favorable terms, and shall be pleased
to meet or correspond with those who contemplate making changes or opening new accounts.
FOREIGN
EXCHANGE
l
DEPARTMENT
Credit
of
Letters
medium for
During the
mission,
and
to
to
the safest and
are
war we are
officers and
We have also sent
issuing such Credits
men
our
of
com¬
in the U. S. Army and Navy,
or
Y. M. C. A. work.
American representative
France for the convenience of
with
convenient
carrying funds.
those engaged in Red Cross
to
most
our
friends,
headquarters at the office of the Credit
Commercial de France, 20 Rue
Lafayette, Paris
BROWN
Philadelphia
BROTHERS & CO.
NEW
YORK
'
Boston
BROWN, SHIPLEY & COMPANY
Founders
Court, Lothbury
LONDON, F. C.
123 Pall Mall
LONDON, S. W.
v-
AT
Capital,
BALTIMORE, MARYLAND
$1,000,000
Surplus and Undivided Profits,
4f
V '-.".iT-'-S'.;-I •rs-** S!*".:••''•• £;«
ww»»w«
iumwiw
'
rM^m:
£W£»2Ut*<
<6Wfo0e>$%:
PHILLIPS LEE
GOLDSBttROUGH, President]
S. STERETT McKIM, Cashier
WALTER W. BEERS, Assistant Cashier
$670,764.58
To Somewhere in
Europe
on
American
"A. B. A.
Bankers
ues
Association
For many years "A.B.A."
Cheques, like the magic carpet of Arabian Nights
to Europe and
other countries on errands of pleasure and business.
Now these Cheques are
carrying Americans to Europe on another kind of errand—fighting for the
safety of American democracy and world democracy.
fame, have been carrying Americans safely and comfortably
The
who
are
going abroad to fight our country's and humanity's Battles
spared all unnecessary worries and annoyances.
Those who are
provided with "A.B.A." Cheques will be assured of jnoney comforts and
freedom from'money worries, whatever other hardships they may encounter.
men
should
be
'-A.B.A."
Cheques
country
have
Cheques can be used in any
where military plans may take our
fighting men, because they are international
heart will
in
vided
character
and
verted
into
foreign
do
not
have
to
be
con¬
country.
the
coin
or
currency of any
In the United States and
Canada they are like so many dollars; in the
United Kingdom and British colonies like
so
many pounds, shillings and
pence; ,in
France so many francs, and so on.
Think
what
saving in
see
with
money."
to
it that
the
they also
"handiest,
are
safest
pro¬
travel
<■'■■■)
.
"A.B.A."
Cheques
be obtained at the
may
principal banks in thousands of cities and
towns
throughout the
Canada.
money
United States
Lloyd's Bank; in Paris,
from Morgan, Harjes & Co.
delays and other
,
had
at
They
may
be
of the branches of the Inter¬
most
national
and
In London, from Morgan, Gren-
fell & Co., and from
changers' fees, in
annoyances this will mean
to
the American army and navy men in
Europe. The officers of both arms of the
service are supplying themselves with these
a
matter of course; those who
comfort of the rank and file at
as a
the
Banking Corporation in the prin¬
cipal cities of the world.
They are issued in four denominations—$10, $20, $50 and $100.
Each cheque bears the
printed equivalent that the purchaser should receive in various countries, but owing to the
present disruption in the exchange markets, new equivalents, of advantage to the purchaser,
have been agreed upon, and such equivalents are either
stamped on the cheque or printed on
separate sheets, issued with each purchase of cheques.
Persons
buying "A.B.A." Cheques for use abroad should
selling bank fojr information in regard to the new
foreign equivalents above mentioned.
ask the
BANKERS
TRUST
CO.
NEW YORK CITY
Downtown Office
Astor Trust Office
16 Wall Street
Fifth Avenue at 42nd Street
4
PENNSYLVANIA
CAPITAL, SURPLUS AND UNDIVIDED PROFITS
j w
i.
v j
■
Transacts
Trust
.
General
a
Banking and
Company Business
OFFICERS
HENRY C. McELDOWNEY
President
W. MELLON.
ANDREW
Vice President
JAMES M. SCHOONMAKER...
.
..Vice President
SCOTT HAYES.
J.
HARVEY
Treasurer
EVANS
JOHN A. IRWIN..
....
.Assistant Treasurer
Secretary
Secretary
WILLIAM WYLIE SMITH..... Assistant Secretary
WILLIAM A. ROBINSON
Assistant Secretary
.
.
JAMES S. CARR
WILLIAM
.Assistant
..Trust Officer
I. BERRYMAN...
CARROLL
SIDNEY S.
P. DAVIS.
Assistant Trust Officer
LIGGETT. Manager Bond Department
DIRECTORS
ANDREW W. MELLON
JAMES H. BEAL
W.
HARRY BROWN
,
ARTHUR V. DAVIS
JOHN
RICHARD B. MELLON
THOMAS MORRISON
HENRY C. McELDOWNEY
B. F1NLEY
HENRY C. FOWNES
LEWIS A. PARK
HENRY C. FRICK
HOWARD
PHIPPS
BENJAMIN F. JONES, JR.
HENRY R. REA
PHILANDER C. KNOX
DAVID A. REED
JAMES
J.
WILLIAM B. SCHILLER
H. LOCKHART
MARSHALL
LOCKHART
GEORGE
JAMES M. SCHOONMAKER
E. SHAW
YOUR BUSINESS SOLICITED
E have
specialized for
g=
over twenty years
S3.
in the
handling of public utility
ities of
centers
secur¬
companies operating in growing
of the United States
—
We
are
active also in the
origination of invest¬
ment
business in the industrial field
We
finance
properties
and
operations
We offer
mortgage
their
supervise
i
to
banking. houses entire issues of
bonds, short
term notes
and preferred
stocks'
We give
particular attention to the investment
requirements of institutions and private investors
=3
Our aim is service leading up to transactions
of mutual advantage, and to that end we place
at
the disposal of dealers, institutions and
investors
our
numerous
facilities.
BERTRON, GRISCOM & CO.
40 Wall Street
NEW YORK
Land Title
Building
PHILADELPHIA
Trustees
T. BANNARD
OTTO
S. READING BERTRON
JAMES A. BLAIR
MORTIMER N. BUCKNER
JAMES C. COLGATE
ALFRED A. COOK
ROBERT
W.
deFOREST
JOHN B. DENNIS
PHILIP T. DODGE
GEORGE DOUBLEDAY
BENJAMIN S. GUINNESS
JOHN HENRY HAMMOND
F.
N.
HOFFSTOT
FREDERIC B. JENNINGS
WALTER
JOHN
JENNINGS
McCALL
C.
OGDEN L. MILLS
JOHN J. MITCHELL
JAMES PARMELEE
HENRY
C.
PHIPPS
E. PARMALEE
EDMUND D.
PRENTICE
RANDOLPH
NORMAN P. REAM
DEAN
SAGE
JOSEPH J. SLOCUM
JOHN W.
STERLING
JAMES STILLMAN
MYLES TIERNEY
OFFICERS
OTTO
MORTIMER N.
HORNE, Vice-President
BANNARD,
Chairrqan of the Board
HARRY FORSYTH, Treasurer
BUCKNER, President
FREDERICK J.
T.
-
CHARLES E.
Assistant Secretaries
AUGUSTUS C. DOWNING, JR.
HERBERT W. MORSE, Secretary
^
JOSEPH A. FLYNN
HAYDOCK, Vice-President
MEMBER
THE NEW
H. WALTER SHAW
ARTHUR S. GIBBS
JAMES DODD, Vice-President
YORK CLEARING
OF
HOUSE
ASSOCIATION
V;
ESTABLISHED
1837
'•"'•Vw,..;
'r
.h
f
'
....
.■
...
h
«**
•
r?r«as®@|^
Ua*3
-trfyjJrj
';
-,,
r
*•'
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I "-'/•
r
i
f
r~* „L»
1
E«'V. -Si' ,•;' • "f
c- •»•»».'.
1
!«♦••• *•"
„
ftk^T.lilr i.|37;ra'J
|Tiii'ii'"i
iwii'i
i
ji"
Ivi-|£K..._
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■_'
■
-■-*..
iiii^i6»Mtetia»aiiBto aiiSKMtiitk jk^awk itafertiiiiiU&i tfljilJh&ajt &
NEW YORK
8
...
..
•
CHARTERED
1864
Union Trust Company
OF
MAIN
YORK
NEW
BROADWAY
OFFICE, 80
Plaza Branch:
Capital
786 Fifth
$3,000,000.00
Avenue
Corner
60th Street
Surplus
$5,530,729.01
Fifth Avenue
Branch:
425 Fifth
&.
a
.
£■ uJ&A, it..
-4*
~
'
to,1'
•
-
<
'
l
n
Avenue
Total Resources
Corner
11 ""IS*i
•***'u
**
38th Street
"*|31 tffyfe
$97,336,489-31
Pf t i-v^ $ft' * fSb£*£
v-7
AM*.
.:^jt"WWBI
5.x."". WrtuJji
MAIN OFFICE, 80 BROADWAY,
Authorized to act
Trustee, and is
Acts
as
as
a
Executor, Administrator,
Guardian, Receiver or
Legal Depository for funds of every
description
of Corporations, and accepts
Trustee of Mortgages
and registry of stock
the transfer agency
OFFICERS
EDWIN G
MERRILL, President
J. Y. G.
Vice-President
POPHAM, Vice-President
JOHN V. B. THAYER,
HENRY M.
W.
McMASTER MILLS, Vice-President
CARROLL C.
T. W.
HENRY M. MYRICK, Secretary
D. ALTON
Officer
MORTON, Asst. Trust Officer
ROGERS, Asst. Secretary
CHARLES W. PARSON, Aset
Secretary Plasa Branch
,
HARTSHORNE, Assistant Secretary
EDMUND P.
ROWE, Asst. Secretary
ERNEST H. COOK, ABet.
RAWLINGS, Vice-President and Trust
BENJAMIN A.
Plata Branch
«
WALKER, Vice-President
Secretary Fifth Avenue Branch
TRUSTEES
W. BMLKN
ROOSEVELT
AUGUSTUS W. KELLEY
CHARLES H. TWEED
WILLIAM WOODWARD
JOHN V. B. THAYER
WALTER P. BLISS
FREDERIC deP. FOSTER
JAMES GORE
EDWIN
G.
KING
MERRILL
M. ORME
V.
WILSON
EVERIT MACY
WM.
H.
NICHOLS, JR.
ERNEST ISBLIN
RICHARD DILAJTKLD
FRANCIS M. WELD
J. Y. G.
WALKER
JAMES BROWN
CORNELIUS VANDERBILT
JOHNSTON DE FOREST
Established
1810
Capital, Surplus and Undivided Profits, $16,000,000
Deposits, (Sept. 11,1917) $187,000,000
OFFICERS
GATES W.
'
McGARRAH, President
Vice-Presidents
JOHN McHUGH
WALTER F
-
FRANK 0. ROE
HARRY H.
ALBERTSEN
POND
SAMUEL S. CAMPBELL
JOSEPH S. HOUSE, Cashier
:
Assistant
Cashiers
JOHN ROBINSON
ARTHUR M. AIKEN
ERNEST W. DAVENPORT
WILLIAM
ALEXANDER F.
NORTH
BRYAN, Auditor
McLEAN, Manager, Foreign Department
OUR
are
E. LAKE
DEPARTMENTS
completely equipped
correspondents in
a
to
handle the business of
thorough and efficient
manner.
Banks, Bankers, Corporations, Firms and Indi¬
viduals
are
invited
to
establish relations with
10
us.
NEW YORK
mi TRUST
Wall
CHARTERED
52
II
111 New York
IN. 1830
Grants annuities.
as
Accepts Trusts created by Will
Agent for the
ten
Allows interest
owners.
Manages
property
deposites payable after
on
Legal Depository for Executors,
days' notice.
'
otherwise.
or
Street
Trustees and Money in Suit.
Accepts only Private Crusts and declines ail Corporation or otfter Public Crusts
WALTER
HENRY
M.
J. LOUIS
PARISH, Jr., 1st Vice-President
ZEGER W.
S.
KERR, President
B.
IRVING
ZELM,
van
van
ZELM, Asst. Secretary
JOHN C. VEDDER, Asst., Secretary
2nd,Vice-President
HOPKINS, 3d Vice-President
ALGERNON J. PURDY, Asst.
L.
WILLIAM B.
ROE, Secretary
TRUSTEES
TRUSTEES
•
Walter Kerr
Charles G. Thompson
Howard Townsend
Frederic W. Stevens
Eugene Delano
Stuyvesant Fish
Edmund L.
Secretary.
AUSTIN, Asst. Secretary
Alfred E. Marling
Baylids
,;:.TTKO STATE}? rtftANCH 'HANK,
'\hh <hmr i/ir-tf
i/'Jtirte sD. i'/
•'
iTtfrnl Ibrc.Mor.vof (kit# Hnr.k,
Henry A. C. Taylor
COflriKlJUS
HAY'
.
Moses
Eftj?
Edward M. Townsend
ftW'illUwn Lai^bt KjT|f ifiiac Cavern.ur Kft'
ftV/iMiiun Hftiulerfon F-ftjf ls>im AtKiijfoa
Ely
Cqlumbus O'D. Iselin
fikjwlc.
Thorns.
W. Emlen Roosevelt
l.owKfijf
lifij?
f.olut
My my
Efy
Ludlow JEfq'
Gulion
Edward
«J.m&ilmn UuiTftSJ
Jfvtt mitrAi/ tfuua
(I\jitauutwn
J. Hancy
KfqflGabj ltd WI ,udUivd-f<{
Gerard
Augustus D. Juilliard
Taylor' |
ESQ* t'HESimiNT
Matthew t fartwn
Henry Parish, Jr.
Cotnrnfistcnm) fir Ji.terUny.
an
fijuut Ltlfirr.
.
Nicholas Biddle
Henry Lewis Morris
William M. Cruikshank
Cleveland H. Dodge
.
^
-friz ' AHCVE
COF.tiEk^iTG-yZ
•
W/O
*
'/&K::tiDVED'. VH'OM THE FVV N'DATi
vV
Thomas Denny
O^EHTHE.
Stephen P. Nash
SOUTHEAST
''SWWimjMVZ WALL TiFiFST. JUiS£ tim.
Lewis
Lincoln Cromwell
Spencer Morris
Joseph H. Choate, Jr.
Paul Tuckerman
CORNER-STONE OF THE OLD UNITED
as
mounted in the Office of the New York
STATES BRANCH BANK
Life Insurance and Trust Company
STATEMENT
Made to the Banking
Department of the State of New York at the close of business on
LIABILITIES
ASSETS
Real Estate......
Bonds and
Loans
on
Mortgages..
,,
.
.
.
.
.
...
Collaterals......;
Bills Receivable.
.
.
Cash in
Company's Vaults
Deposite
Accrued Int., Rents, Suspense Acct., &c.
Bonds and Stocks (Market Value)
Cash
on
September 8, 1917
Capital Stock.
$2,238,995.69
3,388,137.73
1,968,211.81
11,085,333.53
2,500,050.00
1,060,570.57
Undivided
Profits
3,472,296.31
32,050,204.47
* *
Deposites in Trust..
Life Insurance Fund.
360,996.42
»
2,345,393.71
Annuity Fund
676,764.20
.
$1,000,000.00
.«• •
.
Surplus Fund and
(Market Value)
,
17,227,396.84
$40,145,460.37
11
Interest
Due Depositors,
Taxes, &c....».
♦
916,569.46
$40,145,460.37
ESTABLISHED 1847-
Dealers
in
Bonds
suitable
for
National and State Banks, Insurance
Companies, Estates and individuals.
Specialize in Bonds of the highest
Statistical
to
information
furnished
institutions and investors.
Negotiate security issues of Rail¬
road,
Public
Utility and Industrial
Corporations, and act
J
12
as
fiscal
agents.
llMlillLN
35
PINE
ST.,
PHILADELPHIA
FRANKLIN BANK BLDG.,
NEW YORK
DEVONSHIRE ST.,
185
Government
BOSTON
Loans, Municipal
Railroad
and
Securities
Industrials
High Grade
Securities Corporation
General
FRANKLINJBANK BLDG., PHILADELPHIA
35
PINE STREET,
NEW YORK
Authorized Capital
Issued
$10,000,000.
$5,021,875
Deals
and
invests
in public service
securities
Participates in security underwritings
Finances public service
enterprises
DIRECTORS
CALDWELL
HARDY,
ALEXANDER J.
HOWARD A.
S.
Z.
Norfolk, Va.
HEMPHILL, New York
LOEB,
MITCHELL,
Philadelphia
GEO.
ROBERTSON, Shamokin, Pa.
J.
J. G. WHITE, New York
F. T. CHANDLER,
Norfolk, Va.
REID,
K.
Trenton, N. J.
F. W. BACON, Philadelphia
P. M. CHANDLER,
New York
FERGUS
W.
F. W. ROEBLING, Jr.,
Philadelphia
Philadelphia
PARMLEY W. HERRICK, Cleveland,
TRIMBLE,
Philadelphia
C.
of
Standard
Municipal, Railroad
.».,7
and
Public
with
their
regularly
their
names
Utility Bondjs
current
to
prices
those
placed
on
will be
asking
our
to
sent
have
mailing list.
A. B. Leach & Co., Inc.
Investment Securities
62 Cedar
Street, New York
105 So. La Salle
Philadelphia
Street, Chicago
Boston
Buffalo
Minneapolis
Baltimore
St. Louis
14
%
SERVICE
INVESTMENT
OUR
\
A National
Organization
The correspondent offices
of The
National City Company offer the service
nation-wide organization to
investors in their respective localities.
of
a
Good service is
.
an
essential • factor in sound
The investor must secure adequate
based upon sound and experi¬
investing.
information
enced
Good
judgment.
around
every
•
business is built
service in the bond
a
group
.
of specialists—experts in
department of finance.
:.Y
By means of numerous correspondent offices
City Company brings to local
The National
investors
throughout the country the expert
knowledge, facilities and advantages
•Y;,:
provided
by this nation-wide organization.
You
are
York
invited
office
or
to
consult either the New
any
of the
correspondent
offices.
We
give personal attention to
individual
latest
investor.
or
call for
our
general Circular C. R. 400.
The National
National
the requirements of each
Write
City Company
City Bank Building, New
York
.
CORRESPONDENT OFFICES
>y
BOSTON, MASS.
10 State Street
PHILADELPHIA, PA.
1421 .Chestnut St.
PITTSBURGH, PA.
Farmers Bank Bldg.
PA.
WILKES-BARRE,
Miners Bank Bldg.
KANSAS
CITY,
MO.
Republic Bldg.
DENVER, COLO.
First Natl. Bank Bldg.
_
137 So. La Salle St.
SAN FRANCISCO, CAL.
424. California St.
ALBANY, N. Y.
Ten Eyck Bldg.
NEW ORLEANS; I.A„
303 Baroune St.
LOS ANGELES, CAL,
• Hibernian Bldg.
CHICAGO, ILL.
CLEVELAND, OHIO
1
Guardian Bldg.
'
BALTIMORE, MD.
Munsey Bldg.
.
BUFFALO, N. Y.
Marine Bank Bldg.
ST. LOUIS, MO.
Bank of Commerce Bldg.
SEATTLE, WASH.
Iioge Bldg.
Railway Exchange Bldg.
LONDON, E.
PORTLAND ORE.
C. 2 ENG.. 30
15
Bfehopsgate
DETROIT, MICH.
Dime Bank Bldg.
WASHINGTON, D. C.
741 15th St.. N. W.
MINNEAPOLIS, MINN.
McKnight Bldg.
•
*
W. T. Rickards Co., inc.
Commercial Paper
The
Rookery, 209 So. La Salle St.
Correspondent
Mc CLUNEY & CO.
NEW YORK & BOSTON
44
Wall
Correspondent
Correspondent
BLAKE BROTHERS & CO.
ST.
LANE, PIPER & JAFFRAY, (Inc.)
MINNEAPOLIS
LOUIS
St.
Devonshire St.
Ill
NEW YORK
BOSTON
Blake Brothers
&
Co.
Commercial Paper
STOCKS and BONDS
Members of New York and Boston Stock Exchanges
Correspondent
Correspondent
Mc CLUNEY & CO.
ST. LOUIS
Mc
Correspondent
LANE, PIPER & JAFFRAY, (Inc.)
W. T. RICKARDS CO.
MINNEAPOLIS
CHICAGO
Cluney & Company
Commercial
ST.
Paper
LOUIS
300 North
Broadway
Correspondent
Correspondent
LANE, PIPER & JAFFRAY, (Inc.)
W. T. RICKARDS CO.
MINNEAPOLIS
CHICAGO
.
Correspondent
BLAKE BROTHERS & CO.
NEW YORK
Lane, Piper & Jaffray,
BOSTON
inc.
Commercial) Paper
MINNEAPOLIS
835
First
National—^oo
Correspondent
W. T. RICKARDS CO.
CHICAGO
Line Building
Correspondent
BLAKE BROTHERS & CO.
NEW
YORK & BOSTON
16
Correspondent
Mc CLUNEY & CO.
ST. LOUIS
Organized
1852
Resources Over Sixteen Million Dollars
ALEXANDER GILBERT
Chairman of the Board
ROBERT A. PARKER
President
WM. M. ROSENDALE
Cashier
ALBERT D. BERRY
.
Assistant Cashier
I7O R sixty-five years this institution has had a steady,
conservative, profitable growth, enjoying to the fullest
extent the confidence and good will of the business
community.
at your
Its reputation,
service.
17
resources
and facilities
are
TAYLOR, DODGE & ROSS
Bankers
Investment
1
" '*%t
'
1
;
-
.
'
v
'
1
'
,
We specialize in
.
<k
.1
«
,
'
Public Utility Bonds
Offerings and prices submitted
upon
request
Short term securities and listed bonds
taken in
exchange at market
We Invite
Correspondence
;
•
■'.
V'.V./'i
••J.
'v
•
"V■*.
111
'•
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;
.
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West
ff.r
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■.
"••••.
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•>.?.
•''-•
•
•
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..
Street
Monroe
Phone
rV '•*
-"t;;;
V'vw
:
the
several
Randolph 6030
"Bond
underlying thought in
thousand
us
to send
A.
help
C.
in
you
you your copy.
H.
mailing
monthly,
your
investments
Specify Booklet CF-200
Bickmore & Co.
Ill
R.
our
our
Topics" each month, free of charge.
It may
As\
copies of
Broadway, N. Y.
Megargel
MEMBERS
NEW YORK
INVESTMENT
27
PINE
NEW
STOCK
&,
Co.
EXCHANGE
SECURITIES
STREET
YORK
.
..
*r-r
j
•
' J'
Chicago
Making Friends
is
V
'
SEABOARD natiowai bahk
OF
THE
CITY
OF
NEW
YORK
S.
C.
G.
BAYNE,
President
,
.
C. THOMPSON.
Vice-President
B. L. GILL,
CAPITAL
W. K.
,
Vice-President
.
CLEVERLEY,
,•■■■
Vice-President
L. N.
DEVAUSNEY,
Vice-President
$1,000,000
H. W.
DONOVAN,
Cashier
JEFFERDS, Asst.Cashier
C. C. FISHER, *
Asst. Cashier
J. D. SMITH,
Asst. Cashier
B. I, DADSON,
Asst. Cashier
J. E. ORR,
Asst. Cashier
.
O. M.
.
.
.
.
,
DIRECTORS
SDBPLOS am PBOflTS
SAMUEL G. BAYNE,
President
WILLIAM K. CLEVERLEY,
(EARNED)
Vice-President
EDWARD J. CORNISH,
President
National Lead Co.
MICHAEL J. DEGNON,
President Degnon Contracting
$3,325,000
Co.
HENRY C. FOLGER,
President Standard Oil Co.
of New York
BENNETT L. GILL,
Vice-President
EDW. H. ft. GREEN,
President Texas Midland Railroad
PETER MCDONNELL,
General Agent,
Transailantica
DEPOSITS
STUART
JOSEPH
G.
ItaiianaS.S.Co.
NELSON
SEEP,
President South Penn Oil Co.
CHARLES C. THOMPSON.
$57,000,000
■
Vice-President
v
WILLIAM H. WOODIN,
i»(«itniiiliTil^1l(iii
President American Car &
Foundry Co. *
WE
YOUR
INVITE
ACCOUNT
Emerson
&
BANKERS
120
New York
Broadway
D.
It.
FRANCIS
D.
R.
T.
H.
FRANCIS
C.
H.
T.
T.
J., D,
P.
FRANCIS
.
J
City
FRANCIS, JR.
HIEMENZ
FRANCIS
& CO.
(Established 1877)
INVESTMENT
SECURITIES
MUNICIPAL, RAILROAD, CORPORATION
'
MEMBERS
214
NEW
YORK,
CHICAGO,
North Fourth Street
»
BONDS
ST. LOUIS STOCK EXCHANGES
St. Louis, Mo.
Every month three of
our
CHELLIS
phabetically, serve
on our
Executive Committee
with six other members of the Board,
ele&ed for
At least twice each year, therefore,
year.
ELLIOTT. AVERETT
director takes
passing
upon
an
especially a&ive part in
the ads of the officers. And at the
FRANK
G.
every
director reviews every transaction that'has
occurred since the last
meeting.
The directors
BOWERS, Goldman, Sachs & Co., Bankers
N.
B.
Do
Vice-Pres. Bankers Trust Co.
CLOSE,
COOKE, Vice-Pres. Erie Railroad
W.
DELOS
Stores Co.
BARBER, Vice-Pres. Barber & Co.. Inc.
J.
S.
BOIS, Compt. Amer. Telegraph & Telephone
F1TZPATRICK
F.
FREDERICK
President The Railway Steel Spring Co.
WILLIAM 'GIBLIN
President The Liberty National Bank
HARVEY
regular monthly meeting of the whole Board,
'
Vice-Pres. United Cigar
C.
every
AUSTIN, President of the Company
A.
EDWARD
HENRY
one
DIRECTORS
THE
directors, chosen al¬
GIBSON
D.
President Mercantile Safe Deposit Co.
THOMAS HILDT, Vice-Pres.
A.
R.
Bankers Trust Co:
HORR, Treas. Equitable Life Assurance Society
HERBERT
F.
HOWELL
■
Vice-Pres. National Bank of Commerce
N.
D.
JAY, Vice-Pres. Guaranty Trust Company
JAMES W. JOHNSTON
Treasurer Western Electric
of this institution
really direct.
Co.
LORD
BERTRAM
Finan. & Foreign Mgr.
ELGOODC. LUFKIN,
Wells Fargo & Co.
President The.Texas Company
JOHN McHUGH
Vice-Pres. Mechanics and Metals Nat'I Bank
MERCANTILE
F.
THEODORE
MERSELES
Vice-Pres. & Gen.-Mgr. Nat'I Cloak & Suit
ALBERT
MILBANK,
SAMUEL
&
Deposit Company
Trust
G.
H.
H
SHERBURNE
BROADWAY
PRESCOTT
S.
NEW YORK
SARGENT, Jr.
Kidder, Peabody Co., Bankers
BENJ. B BRYAN
LOUIS V. STERLING
MEMBERS OF
Exchange
Anglo-Amer. Cotton Products Corp.
JACKSON E. REYNOLDS, Vice-Pres. First Nat'I Bank
CHAS.
New York Stock
'
Vice-Pres. Chase National Bank
.
Treas.
115
Company
Masten & Nichols. Lawyers
MILLER,
JAS. T. BRYAN
BENJ. B. BRYAN, Jr.
B. L. TAYLOR. Jr.
'
"
HOWARD H. LOGAN
FRANK C. HOLLINGER
J. J. BAGLEY
LOUIS N. STOTT
GEO. A. WEGENER
HARRY L. RENO
Boston Stock Exchange
Chicago Stock Exchange
New York Cotton Exchange
""
NEW YORK
CHICAGO
New York Coffee Exchange
New York Produce Exchange
New Orleans Cotton Exchange
Chicago Board of Trade
1
Minneapolis Chamber of Commerce
Winnipeg Grain Exchange
St, Louis Merchants Exchange
Salt Lake City
Stock Exchange
Los Angeles Stock Exchange
Philadelphia Bourse
Associate Member of
Liverpool
Cotton
Association
LOGAN
New YorK,
U
BRYAN
113-115 Broadway
Chicago, 2 Board of Trade
Our Own Private Wires with Branch Offices and
from the Atlantic to Pacific
20
Correspondents
18881
ESTABLISHED
Franklin Trull Company
Member of the New York Clearing House
Association
With offices located in the financial centers of New York and
Brooklyn this Company is amply qualified
and satisfactory manner. We have a department especially equipped
for collecting Brooklyn items and offer to out-of-town institutions the same efficient service which has
proved so satisfactory to the large New York City banks who are now sending us their Brooklyn collections.
handle collections in
to
a
prompt
TRUSTEES
K.
CHARLES
ALLEN
WILLIAM
ALLEN
R.
HENRY
BEEKMAN
CHARLES
HAYES
G.
JAMES
CUTTING
JOHN
'
R.
HEWLETT
ROBERT
BUTLER
CURTIS
BAYARD
R.
GEORGE
BRUERE
HENRY
HUTCHINS,
GRISOLD
ISELIN
H.
H.
WILLIAM
IMBRIE
J.
FRANK
A.
C.
DELAFIELD
MARTIN
B
DENNY
A.
LUDLOW
KRAMER
ARTHUR
W.
DODGE
R.
WALTER
LEIGH
WILLIAM G.
WILLIAM
HADDEN
CROWELL
G.
THOMPSON
DAY
of
LOW
RAMSAY
M;
CHARLES
MURRAY
PIERREPONT
POST
EDWARD
JOOST
PEABODY
STUYVESANT
JAMES
JR.
TUTTLE
KING
WOOD
LOW, JR., Chairman
Executive Committee
OFFICERS
KING
ARTHUR
EDWARD
......
DELAFIELD...
C.
CLINTON
J.
..,
MONTGOMERY.
.Asistant
WATKINS
L.
CLARENCE
President
EDWARD
.Vice-President
.Assistant
PEACE.
G.
.
PHILIP
.Chairman
LUDLUM
W.
WILLIAM
v,.
..........
GERRISH.
THORNTON
ROBERT
WOOD
FREDERICK
Secretary
Secretary
Secretary
A.
L.
.Assistant
Assistant
Secretary
Secretary
BLAGDEN....... .Assistant
Secretary
M.
S.
FINCKE.,
CURRY.
G.
.
.
......
BILLINGS.......
WILLIAM
and
REIMERS,
.Assistant Secretary
............
Manager
Fulton
.Auditor
Street
Office
Market Branch.
BANKING OFFICES CENTRALLY LOCATED
In New York City's
166 MONTAGUE STREET
WALL STREET
46
corner
In
In Brooklyn's Business and Financial Dirtrict
Financial District
of William Street
corner
569
FULTON
near
of Clinton Street
At Brooklyn's Market Entrance
Brooklyn's Shopping Center
1001 WALLABOUT MARKET
STREET
Flatbush Avenue
Washington and Flushing Avenues
corner
Chas. I). Barney .& Co.
Securities
Investment
ISTEW
1£5
YORK
Broad
PHILADELPHIA
CITY
15K2
Street
members
of
the
new
york
and
W» Invito Investment Inquiiues
St(k:ks
and
philadelphia
Inoivixnjai.
on
Bondh Purchased, Sold,
and
ESTABLISHED
BIOREN
and
Cahried
on
stock
South
Fourth
Street
exchanges
Trustee Aooountb
Favoubabi.e Terms
1865
&
BANKERS
MUNICIPAL, RAILROAD and PUBLIC
314
CHESTNUT
Members New
STREET,
PHILADELPHIA, PA.
York and Philadelphia
21
UTILITY SECURITIES
Stock Exchanges
TRUST CO
56
W0^.
Broadway
New York
Condensed
V-
Loans and
Bonds
Cai-h
1917
LIABILITIES
Discounts.
and
on
Statement'September 8th,
ASSETS
Interest
and
1,500,000.00
Surplus
Securities.
1,432,721.88
Hand and in Banks......
Accrued
$1,000,000.00
Capital
$8,092,483.16
Undivided Profits........
Reserved
1,810,605.45
Taxes,
Accounts
Unearned
for
23,552.13
Deposits
Interest,
73.519.11
etc......
Accrued Interest
Receivable
35,653.03
....
14.043.12
Payable
8,734,147.36
..
.....
$17,359,362.62
$11,359,362.62
OFFICERS
ALEXANDER V. O.STROM, President
•
B. E.
SMYTHE, Vice-President
T. BARTH, Vice-President
D.
CARDOZO, Asst. Secretary
DIRECTORS
JOHS.
ANDERSEN
GERHARD
J. Andersen & Company
KNUT
DACHKE
Andresens Bank, Christiania
CHARLES
E.
*
'
JAMES
■
F.
G.
DAHL
E.
DAHL
E.
W.
EDWARD
FOSTER
SAMUEL
BF.RWIND
R.
N.
WILLIAM
R.
Surety Co.
•
ALEXANDER
F.
V.
OSTROM
GEER
BIRGER
Shipowner
■
COE
CHARLES
ChairmaD, Johnson & Higgins
S.
Gerd.
Ilaight, Sandford & Smith
Capital, Surplus and Profits
over
GENERAL BANKING AND
.
.
.
.
TRUST BUSINESS.
OFFICES:
OSLAND
West.
Agt.
E.
HAIGHT
Started Business June
HVOSLEF
MACKELVIE
President
EDWARD
•
Assets
BRUCE
Hayden, Stone & Company
FULLER
Kissel, Kinnicutt & Company
BROWN
First Vlce-Pres. Amer.
L.
HOLTER
W.
Bennett, Hvoslef & Co.
Treas. Amer. Sugar Refining Co.
V.-Pres. Berwfoid-White Coal Mining Co.
R.
O.
Attorney
FREDERICK
BELL
HEGGE
Creditbank, Christiania
Centralbanken for Norge, Christiania
Vicc-Pres. Washburn-Crosby Co.
JOHN
KAMPSTRUP
Den Norske
.
EDWIN
S.
■
BEDFORD
Viee-Pres. Vacuum Oil Co.
■
M.
Vice-Pres. Chase National Bank
CAPPELEN
A.
Norwegian-Amer. Line
SMITH
Guggenheim Brothers
.
11, 1917
$3,500,000
over
$30,000,000
.
INTEREST PAID ON CHECK ACCOUNTS
JERSEY CITY, N. J.
Officers:
JOHN W. HARDENBERGH, President
ROBERT S. CARMICHAEL, Asst. Treasurer
J. HENRY CASTENS, Asst. Treasurer
CHARLES L. DECKER Asst. Treasurer
S. LEROY HETRICK, Asst.
WILLIAM J. FIELD, Vice-President
JAMES G. MORGAN, Vice-President
ALBERT I. DRAYTON, Vice-President
Secretary
JAY S. PERKINS, Sec'y and Treas.
J. RICHARD TENNANT, Asst. Secretary
EDWARD HENN, Asst.
Secretary
I
•
LYMAN H. OPDYCKE, Asst.
Secretary
SAFE DEPOSIT VAULTS
Capital, $150,000.00
Surplus and Profits, $500,000.00
TRANSACTS
A
GENERAL
TRUST
BANKING
BUSINESS
Officers
JOSEPH THOMPSON
President and Trust Officer
LEWIS EVANS
Vice-President
y<v
y
-
-
M. D. YOUNG MAN
Vice-President
22
SILAS SHOEMAKER
Secretary and Tieasurer
JOS. B. SMITH
Assistant Treasurer
AND
COLUMBIA
TRUST
Main
Office, 60 Broadway
Harlem Branch, Lenox Ave. & 125th St.
COMPANY
Bronx
Uptown Office, Fifth Ave. & 34th St.
Branch, Third Ave. & 148th St.
MEMBER NEW YORK CLEARING-HOUSE ASSOCIATION
HOWARD BAYNE, Vice-President
WILLARD V. KING, President
BENJ. L. ALLEN, Vice President
JAMES ELY MILLER, Vice President
HARRIS A. DUNN, Vice President
ORRIN R. JUDD, Trust Officer
LANGLEY
CHARLES F. MINOR, Vice-President
A. N. HAZELTINEj Asst. Trust Officer
J. SPERRY KANE, Asst. Secretary
WILLARD C. MASON,
GEO. E. WARREN, Vice-President
Asst. Trust Officer
FRED'K V. CLOWES, Asst. Secy.
HOWARD E. RIDER. Asst.
FREDERICK G. HERBST, Auditor
ARTHUR W. HUTCHINS, Asst. Treas.
Statement of Condition Sept. 28,
ASSETS
Cash in
hand
.,
Banks and
Public Securities,
Exchanges
LIABILITIES
t
Purchased,................
Exchange.,..........,
New York City
Heal Estate,
■
*,
[ *'
*
Deposits.....
7.400.327.84
.
.v.
.
Mortgages.......,...
61,731,783.32
6,764,429.77
4,641,208.40
...,
Office Cheques......
..............
546,037.66
.,.,
354,304.63
Reserved for Taxes and Dividend........
Accepta
nces,
4,007,587.08
Etc
Accrued Interest Payable.
.
,
283,216.84
.,...........,,,
3,323,707.99
Banking Houses.....,,........,
Customers' Liability en Acceptance, Etc...
Accrued Interest Receivable....;,
Surplus and Undivided Profits..........
3.342,728.77
^
$5,000,000.00
6,512,776.84
96,819,363.32
Capital Stock...,..,...,,,...,.....
$6,660,459.93
10,111,021.35
....'
Short Term Securities......................
Foreign
Treas.
1917
.
•
■
Other Bonds and Stocks..
Loans and Bills
.
1.:; ;•V,;
„.,v.,,
ROBERT I. CURRAN, Asst. Treas.
S. STERN. Manager Foreign Dept.
II. M. ATKINS, Asst. Secretary
on
Vice-Pres. & Secy.
WALTER G. KIMBALL, Asst. Treas.
CHARLES E. WOLFF, Asst. Secy,
Cash
WIGGIN,
W.
FRED C. MARSTON, Treasurer
5,443,790.16
4,007,587.08
..
',..
96,241.76
$113,523,286 37
5113,523,286.37,
DIRECTORS
BENJ.
CHARLES H. KEEP, Chairman of the Board
EDWARD H. CLARK
ALLEN
L.
Vice-President,of the Company
ANCELL
H.
HOWARD
HAROLD
BAYNE
G.
EDWARD
BAYNE
CHESTER
JAMES
HENRY
E.
BROWN
E.
Colorado Springs,
J.
H.
R.
Colo.
President New York <$• Pennsylvania Co.
NOAH C.
A.
BARTON
ROGERS
Attorney at Law
GREEN
FREDERICK
*
STRAUSS
J. & W. Seligman & Co., Bankers
WILLIAM
HARDING
Charles D. Barney &
CARLTON
President Western ITnion Telegraph Co.
NEWCOMB
Bankers
MARLING
E.
AUGUSTUS G. PAINE, JR.
GIFFORD
GOLDMAN
HORACE
Traction Co.
Real Estate
President Texas Midland Railroad
CARLTON
KUSER
,,
Goldman, Sachs fr Co., Bankers
Redmond & Co., Bankers
A.
ALFRED
:
DELANO
Attorney at Law
BETHELL
FRANKLIN O.
M.
R.
LEHMAN
Lehman Brothers,
Brown Brothers & Co., Bankers
BEATTY
President New York Telephone Co.
1
PHILIP
CORNELL
MOREAU
Consulting Engineer
UNION N.
ANTHONY
pres't South Jersey Gas, Electric &
CLARK
Attorney at Law
President Seaboard National Bank
A.
BENJAMIN
Whltp, Weld & Co., Bankers
>
Vice-President of the Company
SAMUEL
CLARK, JR.
Clark, Dodge & Co., Bankers
President Best & Co.
.
CRAWFORD
KING
WILLARD V.
President of the Company
Manager Hearst Estate
GEORGE
BALL
A.
TUCKER
Tucker, Anthony & Co., Bankers
Co., Bankers
FREDERICK
HEPBURN
W.
WHITE
Peters, White & Company,
Chairman Chase National Bank
Chemicals
'
A'
^aV
/
' >
No_ 3J 4
A
'Vf'
f 7 J'-.
•
OF JERSEY CITY, N. J.
Capital, - - - - Surplus and Undivided Profits,
Deposits, - - - -
-
-
-
$400,000.00
$1,318,159.35
$12,364,429.68
OFFICERS
,
EDWARD I. EDWARDS, President
ROBERT E. JENNINGS, Vice-Pres.
HENRY BROWN, Jr., Cashier
JACOB R. WORTENDYKE, Asst. Cashier
DIRECTORS
Charles Siedler,
Robert E. Jennings,
Henry E. Niese,
Arthur G. Hoffmann,
George T. Smith,
Edward L. Young,
Edward I. Edwards,
Lyman N. Hine.
1
23
*
'
SMITH, FOLDS & CO.
HATHAWAY,
45 Wall
Street, New York
Commercial Paper
PITTSBURGH
PHILADELPHIA
421
Nat.
Bank
Main
266 West 34th
<
A.
Harlem Branch:
7th Avenue at 135th Street
Street, New York
OFFICERS
•
'
■
YORK,
DEPOSIT
COMMERCIAL
.
'
.
'
/
-
CITY OF NEW YORK
TRAVELERS CHECKS, FOREIGN EXCHANGE, MONEY
SAFE
A STRICTLY
,C'V;
WM. W. TAPPAN, Asst. Cashier
Cashier
• GEO. F. EWALD, Asst.
DEPOSITORY STATE OF NEW
LETTERS OF CREDIT,
;
E. STILGER, President
LOBB, Vice-Pres. and Cashier
;
BANK
EXCHANGE
A.
WM.
L. C. Smith Building
v
Office:
.
Bldg.
SEATTLE
Bldg.
CHELSEA
:
First National Bank
Chestnut Street
FRANCISCO
SAN
1st
408 Olive Street
208 South La Salle Street
Congreis Street
LOUIS
ST.
CHICAGO
BOSTON
60
BANK
IN
ORDERS
VAULTS
THE
HEART
OF
NEW
YORK
II. BURR & CO.
BANKERS
COMMERCIAL
PAPER
Investment Securities
120
BROADWAY, NEW YORK
Boston
Chicago
San Francisco
Philadelphia
St. Louis
Seattle
Hartford
Cleveland
Portland
CHARTERED
.
,
1853
Dnlteo Slates Irani Gompanp of (lew Hon
45
and
CAPITALSURPLUS
47 WALL STREET
...
W.
.
$14,681,061.00
-
;
,
WILFRED J. WORCESTER, Secretary
"
PELL, Asst. Secretary
;
$2,000,000.00
.
SHELDON, President
KINGSLEY, Vice-President
WILLIAMSON
.
AND UNDIVIDED PROFITS
EDWARD
WM. M.
-
CHARLES A. EDWARDS, 2d Asst. Secretary
trustees
.
:
john a. stewart. Chairman of the Board
William Rockefeller
Lyman J. Gage
James Stillman
-
y
.
Arthur Curtiss James
Cornelius N. Bliss, Jr.
Payne Whitney
v
Frank Lyman
William M. Kingsley
Henry W. de Forest
Edward W. Sheldon
Cljauncey Keep
John J. Phelps
William Stewart Tod
William Vincent Astor
'
Ogden.Mills
v
Chas. F. Hoffman
Lewis Cass Led yard
William Sloane
NEW YORK
OF
41 West 34th Street
'
Near Broadway
Our location and facilities enable
us. to
handle the, business of
efficiently, and without
our
correspondents
loss of time.
J. ADAMS BROWN, President
JOHN P. MUNN, M. D.t Vice-President
UDO M. FLEISCHMANN, Vice-President
CURTIS J. BEARD, Cashier
H. I. STEVENS, Asst. Cashier
Interest Allowed
on
Nori-Borrowing, Inactive and Trustee Accounts
SAFE
BOND
Commercial
DEPOSIT
VAULTS
GOODWIN
&
Investment Securities
Pap er
*
new
hi
boston
30
san
454
State St.
francisco
California St.
york
Broadway
philadelphia
421
Chestnut St,
minneapolis
410
N. Y. Life Bldg.
25
chicago
230
So. La Salle St.
Seattle
Hoge Bldg.
Metropolitan Trust |Company
of the City
offers
a
of New York
complete and dependable service to corre¬
spondent banks.
While
working
constantly to increase our local
making every effort to perfect our
business
we are
service
to
You will
simplify the handling of
out-of-town
financial
institutions.
New York
your
business, greatly increase your banking facilities
and
enlist
the
services
of
strong financial
a
or¬
ganization in the center of the American money
market, if you place your account with the
Metropolitan
Trust
Company of the City of
York.
New
60 Wall Street
358
(Founded 1824)
Capital, Surplus and Undivided Profits, $11,000,000
We
shall
who
be
change
their
in
balances of
H.
K. Twitch ell,
correspond with
or
new
accounts
relations.
or
Vice-President
Vice-President
H, Smith, Cashier
those
making
Interest
banks, time deposits and special
Halpin, Vice-President
I. B." Hopper,
Edward
banking
President
Percy H. Johnston,
Francis
pleased to meet
contemplate opening
paid
a
on
accounts.
James L. Parson, Assistant Cashier
J. G. Schmelzel, Assistant Cashier
John B. Dodd, Assistant Cashier
Samuel T.
H.
M.
Jones, Assistant Cashier
Rogers, Manager Foreign
rtment
DIRECTORS
Cheney
Frederic W. Stevens
Charles
W. Emlen Roosevelt
Arthur
Robert Walton Goelet
Frederic A.
Iselin
26
Juilliard
Ridley Watts
Herbert K. Twitchell
Percy H. Johnston
';
■
'
■
Added
Open
.'
1
..
Facilities Now
National Banks
to
'TpHE recent amendment to the Federal Reserve Act places
^
the Trust
acting
as
Offering
Company in
correspondent.
a new
and favorable position for
.
wide range of service, together with extensive
Company now seeks the opportunity to serve in
befitting the new conditions.
a
resources,
the Trust
■
a manner
This
Company will welcome inquiries looking to the opening of
by National Banks and others requiring the services of a
correspondent in New York City.
accounts
Interest Credited
.
UNITED
MORTGAGE &
Monthly
..T
-
STATES
'
TRUST COMPANY
Capital and Surplus
-
'
•
$6,000,000
-
New York
•
>
■
The American
Exchange National Bank
v
•
128
O
new york city
broadway
-
W HEN the Federal Reserve Act became a Law, our close
▼
touch with the financial requirements of the mercantile
•
▼
'
•
of
this country enabled us to decide at once that
Acceptances would be largely used in financing future business
interests
transactions.
Our
experience convinces us that Acceptance Credits and Trade
Acceptances are being used to advantage. Business men will
find it highly profitable to familiarize themselves with this
important phase of banking.
•
'
'
1
V
_
The
possibility o| financial strain incident to the war can be
greatly reduced through the use of Acceptances — the most
liquid form of commercial paper. We are operating a depart¬
devoted exclusively to dealing in and developing their use.
•
ment
We have issued
Domestic and
a
practical
two
"Acceptances" — "Financing
Practical subjects treated in
be had on application.
pamphlets
—
Foreign Trade "
Copies
way.
can
27
'
'
.
■"
'
'
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'
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UTICA TRUST
^mmiws0^i^^Mmm
fSI^^SIBili^^paiilili
DEPOSIT CO
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DCDYD
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Utica's
FA
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First Trust
Company
1899)
( Founded
General
W/&>s/A?y*'z^
Resources
addition
over
Trust
to
Resources
$11,000,000, in
Department
exceeding
$3,000,000
Officers
J,
Francis
J).
Day.,;..
Clinton
(ieorg'c
E.Dunham.
.......
,.
Thoifias
lv.
G rah am
Coventry..,;,
Charles
Proctor....,
W.
.
Williams.
.Vice-President
,Vice-President'
......,..
Greyer C. Clark
George
.....
.,..........
Lamb...,
j.
President
.............
......;.,Vice-President
Murray,
.
.
.
.
Secretary
.
.Treasurer
.
Assistant
..Assistant
Secretary
Treasurer
SlflP
Iflffifk
Directors
.'■'v.
^y:iPX'v'HA
LyV
<loorgc 10. Dunham
J. Francis Day
"^T-
Thomas
Proctor
li.
Clinton .Murray
D.
Frederick
S.
F.
.).
.!.
S.
Fasten
Eihridfrc
-
Frey.
T.
A.
F.
Wheeler
Doolittle
Graliam Coventry
Charles B. Mason
Robert Fraser
'
Andrew
Frank
Gilbert
A.
Sherman
F.
Julius
Sherman
Franklin
\ts*r.
P.
GimrgaC VanTuyl, Jr.
'/ffy'/e/.•/.ioiiicij.
ESTABLISHED 1882
J. S. FARLEE & CO.
•
66
BROADWAY, NEW YORK
INVESTMENT
Specialists in Bonds
SECURITIES
'
and Slow Securities
New
Securities for Conservative
Investment
England and Pennsylvania Securities
—
Suitable for Banks, Insurance and Trust
Always
on
Hand
Special Attention
Companies
GUARANTEED R. R. STOCKS
Exempt from Personal and from Normal Federal Income
Suitable for Executors, Trustees, etc.
Descriptive List of Offerings
(111
J
/l^
*
/III A
^
IV
I
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£&
I
l*k
vfii
28
on
Application
5 NASSAU STREET, NEW YOR]
TELEPHONE 2780 RECTOR
Members of New York Stock Exchange
We
own
and
offer
Bonds and Preferred Stocks
of Public
Utility Companies
in the
management
of which
Descriptive Circulars
we are
on
associated
Request
Hodenpyl, Hardy & Co.
Incorporated
.
Securities for Investment
Wall Street
14
First National Bank
New York
Bldg.
Chicago
Municipal Bonds
EXEMPT
We
FROM
FEDERAL
INCOME
TAX
specialize in the purchase and sale of this class of investment and
sified list
includes Bond issues in all parts
Our latest revised
•
'
■
I-
list of selected issues sent
'
•
■
our
diver¬
of the country.
on
'
.
request.
' ' ■
'
:
'
:
■
" '
Wi lliam R.fompton Company
MUNICIPAL
New York
14 Wall Street
"Over
a
BONDS
.Chicago
Pittsburgh
Bldg.
105 S. La Salle Street
St. Louis
Quarter Century in this Business"
Farmers' Bank
408 Olive Street
Cincinnati
102 Union Trust Bldg.
H. D. WALBRIDGE & CO.
14
Street
WALL
STREET, NEW YORK
'
Railway, Gas and Electric Light Securities
WE PURCHASE AND OPERATE
PUBLIC UTILITY PROPERTIES
AND FINANCE ATTRACTIVE UNDERWRITINGS
29
THE
Goal and Iron National Bank
#g:5* Klflv-
OF THE CITY OF NEW YORK
*»?!
T%$ m-*
:•• ••:^,. y?
».**>; ;^r5..f'r
V';
y0ffi £•
■
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'I'/ff?. °V -. /*vJ.-' :*,
Capital
,
* 1
fejsr-4 j!'*t4." '
-
$1,000,000.00
-
-
878,124.88
(Earned)
Profits
Surplus and
'"
>4vr^~
jm •••*,, s.
f*
•'fester ££
&* «*r
KFiF
■
f-r-
JOHN T. SPROULL, President
"
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If f n5 '-•
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WMm m
A
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Mil*
DAVID
,
TAYLOR, Vice-President
Vice-President
ALLISON DODD,
fii#l
•.' -"3M2* '^sf
Member New York
..
&
N.
LETTERS
in
& K.
CHECKS
Letters of Credit and Travelers'
best known in the
our
advertising
K.
CREDIT
OF
TRAVELERS'
K. N.
Clearing House Association
■yx^4iWl£$?l
K.
and
ADDISON H. DAY, Cashier
WM. H. JAQUITH, Asst. Cashier
WALLACE A. GRAY, Asst. Cashier
Checks
are among
the oldest
Banks and Bankers will be interested
banking field.
especially prepared for popular distribution.
matter,
Copies of Leaflets and Bookfeis will be sent
Members
New
Stock
York
on
request
Exchange
EquitableBuilding
New York
City
ESTABLISHED
of tHe
City of New YorR
257
BROADWAY
PHINEAS C.
HERMAN
EDWARD
K.
GILBERT H.
WILLIAM
1829
LCUNSBURY, Chairman
D.
'
KOUNTZE, President
CHERRILL, Vice-President
KIMBALL C. ATWOOD, Vice-President
JOHNSON, Vice-President
FRANK E. ANDRUSS, Cashier
F. FITZSIMMONS, Asst. Cashier
JOHN P. LAIRD, Asst. Cashier
ACCOUNTS OF BANKS, BANKERS, MERCHANTS AND MANUFACTURERS SOLICITED
30
Organized 1882
THE LINCOLN NATIONAL BANK of the CITY OF NEW YORK
42nd STREET, OPPOSITE GRAND CENTRAL TERMINAL
CAPITAL,
.
...
.
.
.
v
.
SURPLUS AND UNDIVIDED PROFITS,
DEPOSITS,
V
.
.
.
TOTAL RESOURCES,
.
.
.
.
.
A. SIMONSON, vice-president
Cashier
JOSEPH P. GRACE
WILLIAM
WILLIAM G. ROCKEFELLER
HARRY
$21,627,000.00
$26,475,000.00
THOMAS KENWORTHY. Assistant Cashier
EDWARD L. BISHOP. Assistant Cashier
.
MARCELLUS HARTLEY DODGE
v
.
.
President
DIRECTORS
EBEN E. OLCOTT
$2,089,200.00
HENRY E. STUBING. assistant Cashier
DAVID C. GRANT. Vice-President
JOHN S.SAM MIS,
.
.
$1,000,000.00
.
.
.
.
.
...
.
ELLIOT WARREN,
CHARLES
WILLIAM
.
.
.
.
.
.
j',
WILLIAM A. SIMONSON
BREWSTER
EDWARD
J. LUCE
CHARLES
ELLIOT
WARREN
HOWARD C. BROKAW
L. ROSS ITER
WILLIAM
HOWARD 3. BORDEN.
S. HAWK
EDWARD W. BROWN
Depository of the State of New York anc| City of New York
Accounts oil Banks, Bankers, Trust
Companies, Corporations and Individuals Invited
TRANSATLANTIC
v;.""1
*
MAIN
Vt'''"\'
--'v
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-
NEW
'
COMPANY
YORK
..v.,-'"
OFFICE
ST.
WILLIAM
67-69
TRUST
EAST
V'V-:
:'VK'
CAPITAL,
AND
1 O
...
9
SIDE
A
V
E
BRANCH
N-U
E
'■'.v'.'
A
SURPLUS
UNDIVIDED
PROFITS
$1,400,000.00
DIRECTORS
H. RIEMAN
ARPAD G.
DUVAL, Chairman,
'
august
■>
PIRNITZER,
pre8ident
WALTHER
H.B.FONDA,
vice-president
JULIUS
LEVE,
merchant
coun8ellor-at-lavv
OAKMAN,
presiotnt hudson companies
GUSTAVE
MORRIS CUKOR,
V
WALTER G.
GERSTER, M. D.
capitalist
president american beet sugar co.
LUTTGEN,
belmont & co..
A.
VON
NUBER
bankers
DEPOSITORY
UNITED
U.
S.
STATES
POSTAL
GOVERNMENT
SAVINGS
I
NEW
YORK
STATE
NEW
SYSTEM
YORK
CITY
FUNDS
FUNDS
'
i
The
49-51
■
"
'
Mutual
■
,
Bank
West 33rd Street, New YorK
CHARLES A. SACKETT, Pre.ident
HUGH N. KIRKLAND, Vice-President & Cashier
JOHN C. VAN CLEAF, Vice-President
EUGENE CALVIN, Assistant Cashier
DIRECTORSi
Richard
3
Hi •
Delafield, Chairman
r'-
1
Andrew
J. Connick
Thomas Dimond
eriJESssssreg7
Otto
M. Eidlitz
Joseph H. Emery
A. P.
W. Kinnan
Hugh N. Kirkland
Thomas
31
C. W. Luyster
Isidore Saks
Samuel McMillan
James Thomson
Charles A. Sackett
John C. Van Cleaf
F. Vietor
! U NION
EXCHANGE NATION
~
cy^NEWYORKo
**
Capital and Surplus
$2,200,000.00
Deposits
$13,500,000.00
AVE..£i? 2.1st ST.
Organized
1903
House
Member of New York Clearing
SIDNEY H. HERMAN, President
LOUIS J. WEIL, Vice-President
and Cashier
DAVID NEVIUS, Vice-President
GEORGE B. CONNLEY, Assistant Cashier
COMMERCIAL BANK
A STRICTLY UP-TO-DATE
SITUATED IN THE NEW COMMERCIAL AND
Banks that
can
MANUFACTURING DISTRICT, FIFTH AVENUE AND TWENTY-FIRST STREET
payable in their locality
handle to advantage the items
invited to correspond with
are
as.
CAPITAL
TOTAL
AND
RESOURCES
SURPLUS
OVER
OVER
$15,000,000.00
$2,000,000.00
NEW
Hudson Trust
BANK of business
capital, surplus aftervol¬
and all,
ume
Company
(METROPOLITAN OPERA HOUSE)
Capital and Surplus Over $1,100,000
terms
the
officers
Our
give
attention to the
Deposits $5,600,000
on
are,
bankers.
most
consistent with conservative
liberal
Let
Banking
their personal
requirements of
have
us
tunity of serving
SAMUEL S. CONOVER
SAFE DEPOSIT VAULTS
John W. Nix
.
.
.
•,
president
HENRY C. STRAHMANN,
vice-pres.—secretary
JOHN J. BRODERICK, JR.
Mars
'
.
.
.
L. Viele
Vice-President
.
.
Secretary
.
A
.
Arthur W. Mellen
President
Vice-President
.
Asst. Secretary
Asst. Secretary
.
and Trust Officer
.
treasurer
.
Depositary for Federal, Stajte, "Municipal
Stephen
vice-president
RICHARD A. PURDY,
Court
Andrew H.
vice-president
JOHN GERKEN,
oppor¬
.
.' :
.
George Henry Sargent
BALDWIN,
an
you.
OFFICERS
*
FRANK V.
,
only the manifestations of success¬
ful management.
The true test'
of banking efficiency is the personal
service given to each depositor.
Broadway and 39th St.
Accounts solicited
CITY
YORK
E, Tilden Mattox
and
MEMBER
and Trust Funds
OF
THE
•
.
NEW
Asst. to President
.
YORK
CLEARING
HOUSE
LINCOLN TRUST COMPANY
204
FIFTH
AVENUE, NEW YORK
BROADWAY and 72nd STREET
15ROADWAY and LEONARD STREET
1
*
OFFICERS
S.
Alexander
Abram. M.
Webb, President
Frederic P. Davis, Secretary
Hyatt, Vice-President
Charles JO. Calhoun, Asst. Secretary
Ward, Vice-President
Owen
Nelson
F, Griffin, Asst. Treasurer
t
-
DIRECTORS
\v.
i).
wm.
g.
m.
abram
baldwin
geouge
augustus
coxklin
george
william
hermann
erskine
felsinger
c.
fi.eitmaxn
.john
p.
f.
f.
kountze
p.
mun.v,
m.
murphy
isaac
n.
geo.
kklioman
d.
isidor
a.
owen
leask
louis
hewitt
jesse
hyatt
blagden
alexander
wm.
c.
h.
CAPITAL AND SURPLUS, $1,500,000
s.
webb
whef.lock
morton
stern
straus
vondermuhll
ward
whitman
100 Years
a
CHARTERED
1799
Commercial Bank
Bank
THE
of the Manhattan
Company
WALL STREET
40
NEW
YORK
Capital
-
-
-
$2,050,000
Surplus
-
-
-
4,500,000
FOREIGN EXCHANGE
Commercial Letters of Credit
ACCOUNTS
SOLICITED
Officers
Of
149
STEPHEN BAKER, President
HENRY K. McHARG, Vice-President
of New York
the City
BROADWAY
Capital and Surplus
D. H.
$5,000,000
Resources
85,000,000
PIERSON, Cashier
McNEIL, Asst. Cashier
B. D. FORSTER, Asst. Cashier
CHAS. D. BAKER, Asst. Cashier
JAMES
LOUIS G. KAUFMAN
President'
•
RICHARD H. HIGGINS
-"FRANK J. HEANEY
Vice-President
Vice-President
WILLIAM H. STRAWN
BERT L. HASKINS
Vice-Pres. and Casliier
Vice-President
WM.
A-CLINKUNBROOMER
H
MAX MARKEL
T.
BAKER
Vice-President
WALTER B.
STEPHEN
Assistant Casliier
HENRY C. HOOLEY
BOICE
FREDK.
Assistant Cashier
Assistant Cashier
VINTON M. NORRIS
R.
JOSEPH BROWN
Assistant Cashier
Assistant Cashier
NEW
Invite
PATERSON
S.
TOD
CHAS. H. TENNEY
Chairman
We
W.
BAKER
SPEYER
WILLIAM
G. BOURNE SAMUEL
WILLIAM
GEORGE M. HARD
<•'
Directors
HENRY K. McHARG JAMES
HENRY L. CADMUS
PERKINS
Vice-President
j
MOORE, Asst. Cashier
TICHENOR, Asst. Cashier
GEORGE R.
BOLLING
Vice-President
W.
•
Vice-President
Vice-President
ROLFE E.
F.
M. W.
NORBORNE P. GATLING C. STANLEY MITCHELL
Vice-President
Vice-President
SLOANE
SLOAN
B. H. BORDEN
WALTER
JENNINGS
CHARLES D. DICKEY
Your Account
JERSEY
MUNICIPAL
BONDS
BOUGHT—SOLD—QUOTED
LUDWIG
& CRANE
INVESTMENT SECURITIES
61
Broadway, N. Y.
33
SANGER
CURTIS &
;
NEW YORK
49 WALL STREET,
Members New York,
Boston and Chicago Stock Exchanges
l:;-
STOCKS
'
:;
BONDS
PAPER
COMMERCIAL
BOSTON
33
CHICAGO
Congress Street
129 Sduth La Salle Street
I®war©
V
BANKERS
'
1411 Chestnut St., Philadelphia
30 Pine St.. New York
Members New York
Inquiries Invited for
and
High Grade Investment
Philadelphia
Stock
Securities
Exchanges
Dominick & Dominick
VI
•
ESTABLISHED
MEMBERS OF THE NEW
'
-v.
.
•
v
1870
YORK STOCK
EXCHANGE
Dealers in Investment Securities
115
Broadway
New
Wiggins Block
York
Cincinnati
34
/
•
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THE CONTINENTAL TRUST COMPANY
•
BALTIMORE, MD.
'.;Vu4'
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Invites the Accounts of Banks
'
and Trust
Companies
<>***-
-i-:,
»msm
■
■
Facilities for
Handling Collections
Exceptional
«0lPIII
Mi
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cA,
»1
T ransacts
:heIIjF
and
i:C
*lTp£
T rust
General
a
Banking Business
•
;
-
CAPITAL, $1,350,000
lip
Qtirar
1,350,000
SURPLUS,
,
»
Correspondence Invited
CONTINENTAL TRUST
BUILD ING
DAV1ES WARFIELD, President
S.
.
■
•
''V
"
;'Yv:-V;.-
Bank
ATLANTA
We
will
take
good
care
of
every
Our facilities for service are
your
bit of business sent us.
extensive and
we can
make
and satisfactory.
dealings with us thoroughly agreeable
"
OFFICERS;
Capital..
*
Surplus
Deposits
...
$600,000
....
$1,158,000
....
$12,500,000
Bonded
W. English.
K. Ottley ....
Charles I. Ryan....
James
W.
T.
Perkerson
Stewart
P.
M.
II.
B.
...
McGinty...
Berry
Rogers
...........President
.VicePresident
Vice-President and Cashier
'...... .Assistant Cashier
Assistant Cashier
......:
.Assistant Cashier
.Assistant Cashier
...................
.
John
......
.
.
.
.....
;
......
..........
.
....
.
....
....
.
...
.
..
...
................
Investments
Number of Carefully Selected
and, Most Attractive Industrial First-Mort¬
Including
gage
a
Issues Yielding 6 Per Cent or More.
Correspondence Solicited
DUQUESNE BOND CORPORATION
115
223 Fourth Avenue, Pittsburgh
Broadway, New York
35
Oldest
Established in 1892
Company in Morris County, New Jersey.
Trust
TRUST
MORRISTOWN
COMPANY
Morristown, N. J.
SAMUEL
RESOURCES
A
;
ABOUT
MILLION
TEN
DOLLARS
where you can get it when wanted; with interest from date deposited until
safe place to put your money
.
FREEMAN, President
date withdrawn—always
subject to daily check—payable through New York Clearing House
6
DIRECTORS
Samuel Freeman
Henry F. Taylor
John H. Capstick
James N. Wallace
A. R. Whitney, Jr.
James B. Duke
Willard W. Cutler
G. G. Frelinghuysen
O. H. Kahn
Walter G. Oakman
;
PATERSON
NATIONAL
Charles H. Sabin
Granville M. White
Harrie T. Hull
William V. S. Thorne
S. Harold Freeman ,
Nicholas F. Brady
Frederick Strauss
William B. Boulton
Jno. H. B. Coriell
Harry A. Van Gilder
FIRST
BANK
PATERSON. N. J4
NATIONAL BANK
United States and State Depository
PATERSON, N. J.
r
~
~~~
1
Capital
I#£"•».
it? 'mm':
mh.
~
"4
wf," <(»•»"«*/
r-i-yi,,.
#
'
'•
~|VA
"■
-«Nrl
><&>
$300,000
A'*G/
v
*r
.
n,
.
'i
j
.y
,
78 Xl
''
■
'| t'f iii
f--Afe? V. j||, ]J|. ,*£<
Surplus
•
1864
and
1917
Profits
'5=*W.r.1,'Ss"n
-.4Kv
■
*
$520,000
*
It
>
m
*
Tit--,
«...
I
Deposits
$3,500,000
Hon.
CAPITAL AND SURPLUS, $1,200,000
JOHN W. GRIGGS. President
RESOURCES, $6,500,000
ELMER Z. HALSTED, Vice-President
DANIEL H. MURRAY. Cashier
EDWARD T. BELL,
WHITFIELD W. SMITH,
President
Collections
our
Specialty.
Accounts and
ROBERT J. ItELDEN,
Qu/c$ remittances and Small charges
Cashier
FREDERICK 0. BOGERT,
Ass't Cashier
-
Vice-President
Correspondence Invited
Collections remitted for
UNION
TRUST
on
day of payment
COUNTY
COMPANY
ELIZABETH, N. J.
DEPOSITS
-
-
$6,270,460.49
CAPITAL AND SURPLUS
675,223.27
OFFICERS
CHARLES H. K. HALSEY, Pre*dent
LOUIS F. HERSH, Vice-Preiident
RUSSELL W. LEWIS,
EDWARD A. FAULKS. Trea.urer
36
Sec'y and Trust Officer
THE PLAINFIELD TRUST COMPANY
PLAINFIELD, N. J.
Capital and Surplus $625,000.00
This
institution's
strong
broad
and
connections
prganization insure efficient service.
Resources
over
$8,500,000.00
officers
O. T. Waring, President
Augustus V. Heely, Vice-President
>•;/
DeWitt Hubbell, Sec'y & Treasurer
F. Irving Walsh, Asst. Sec'y-Treas.
Adele H. Kirby, Assistant Treasurer
J. Herbert Case, Vice-President
1873
ESTABLISHED
CAMDEN
SEPT. 11,
1917
Capital, Surplus and Undivided Profits, $1,397,560.97
Deposits
.
.
...
....
.
.
8,866,536.07
Trust Funds
Well equipped for
.
.
.
.
.
the settlement of estates,
care
ALEXANDER C. WOOD,
of trust funds andother financial business
Chairman of the Board
«
JOSEPH LIPPINCOTT, Secretary and Treasurer
F. HERBERT FULTON, Asst. Sec'y and Treas.
President
EPHRAIM TOMLINSON, Vice-President and Trust Officer
EDWARD 1. FARR
13,000,000.00
...
.
.
...........
GEORGE J. BERGEN, Solicitor
THE MECHANICS NATIONAL BANK OF TRENTON, N. J.
DIRECTORS
FOUNDED A. D. 1834
OFFICERS
EDWARD
C.
HENRY
KELSEY
Ex-Secretary of State
C. STOKES
C. STOKES, President
EDWARD
Former Governor of New Jersey
HENRY
C.
KELSEY,
HARRY
D.
LEAV1TT, Vke-Pres.
Vke-Pres.
RICHEY
F.
ISAAC
Counsellor-at-Law
JOSEPH
R.
SWEENY,
RUDOLPH V.
KUSER
Peoples Brewing Co.
Cashier
FERDINAND W. ROEBLING; Jr.
Roebling's Sons Co., Wire Mfrs.
SCOTT SCAMMELL
J. CADWALLADER SLACK, Asst. Cashier
Counsellor-at-Law
NEWTON
»•
-
J.
BUGBEE
CONVERY
Merchant
Capital Stock, $500,000
SAML.
Surplus and Profits, $1,203,040
T.
.
A.
$10,000,000
Deposits
K.
A.
Contractor
WILLIAM
M.
ATCHLEY
Farmer
MADDOCK
v
T. Maddock's Sons Co.
'
ROBERT
We sollclt'your business
C.
KOLB
BaRcr
KARL
Collections promptly remitted
G.
ROEBLING
Roebling's Sons Co., Wire Mfrs.
COMPANY
CENTRAL TRUST
CAMDEN, N. J.
"
CAPITAL, SURPLUS & UNDIVIDED PROFITS
DEPOSITS.
RESOURCES'
$ 415,000.00
-
-
-
TRUST FUNDS
fZT'J'ZtS
-
2,815,553.72
-
-
-
3,230,553.72
'
-
-
-
1,250,000.00
We have unexcelled facilities for
and
will
remit
daily
or
handling collections,
weekly at lowest rates
H. H. GRACE, M.D.,
President
CASPER T. SHARPLESS, Vice-President
JOHN B. CLEMENT, 2nd V.-P., See.-Treas.
MONTREVILLE SHINN, Asst. Sec. and Treas.
C. CHESTER CRAIG, Trust Officer
37
A Mark of Confidence
Because
we
have
we
have the courage
of
our
convictions, in
advertising
our
consistently and continuously placed ourselves
on
opposed to everything inimical to the investing public.
on
our
part has
shall continue
we
come
inspired
to
confidence which
a
justify by
in contact.
our
we
confidence
connection.
to
be
in
are
mind
more
This is
by those seeking
'1
Y
This stand
have justified and
Numbered among our clients
carried
as
dealings with all those with whom
fifty banking institutions in the Pittsburgh district.
of
record
a
a
than
mark
brokerage
.-'V
Moore, Leonard & Lynch
Members
cago
Frick
of New, York,
and
Philadelphia
Pittsburgh,
Stock
Building, Pittsburgh, Pa.
Chi¬
Exchanges
Ill Broadway, New York
KAY; &
BROKERS
UNION
BANK BLOC
penn bldg.
PITTSBURGH
Patterson
bldg.
New castle. Pa.
erie, pa.
MEMBERS
New
Pittsburgh Stock Exchange
York
Slock Exchange
Investment
J
Chicago Board of Trade
Bonds
a
Specialty
%
BROKERS
Members New York Stock
Stock
Exchange,
Chicago
Exchange, Boston Stock Exchange, Pittsburgh
Stock
Exchange,
PITTSBURGH, PA.
Chicago
Board
Branch Office:
38
of
Trade
Wheeling, W. Va
PITTSBURGH
In the center of
AN
OF
CAPITAL
THE
an.
INDUSTRIAL
EMPIRE
Pittsburgh,iu The
T/: '7C
Industrial Empire, stands
Workshop of the World/'
millions tons of freight is her annual
Nation.
/
One hundred and seventy
contribution to the commerce of the
A
million-and-a-half
wages.
The
a
day she.pays her workers in salaries and
\
>■-/.
-
products of her varied industries range from pickles to loco¬
motives; from steel rails to table glassware.
The
deposits of her banks, $704,000,000 at latest report, are actively
engaged in the development of the Nation's Industrial
7
deposits of
over
New York and
Center.
her financial institutions is the Mellon Bank,
Chief among
with
Chicago.
Y# MELLON ' NATIONAL BANK
•
PITTSBURGH
RESOURCES
OVER 130
MILLIONS
THE PEOPLES NATIONAL BANK
OF
Our intimate
.
to
PITTSBURGH, PA.
association with those who are in close
touch with the
us
.
large industries of. Pittsburgh enables
give intelligent and satisfactory
having business of a financial nature
service to any
in this district.
-
CAPITAL
SURPLUS and PROFITS
DEPOSITS
$1,000,000
$2,000,000
$26,000,000
<
$100,000,000, the largest national-bank between
CAPITAL $3,729,900
Is
fully equipped to handle all Business pertaining to a Trust Company
Banking, Trust, Real Estate and Safe Deposit Departments
in its
lyfrl
George H, Earle, Jr., President
Edw. S. Buckley,
S. F. Houston, Vice-President
William R. Philler,
Jr., Treasurer
Secretary
John A. McCarthy, Trust Officer
Edgar
Fetherston, Treasurer Edw. Y.
Asst.
Trust Officer
Directors
George H. Earle, Jr.
Samuel F. Houston
Frank C. Roberts
William A. Patton
J. Levering Jones
George Woodward, M.D.
Bayard Henry
John Gribbel
James F. Sullivan
Cyrus H. K. Curtis
Richard Y. Cook
R. Dale Benson
Louis J. Kolb
J. Wallace Hallow ell
DOENOT
a
It'is
fortunate in
having
now a
development in its metropolitan
district unequaled by any other
section.
For
information,
CORN
see
the
EXCHANGE
NATIONAL
BANK,
Philadelphia
The First National Bank Chartered
Organized, Equipped and
Conducted for SERVICE
You Appreciate Good Service
We Appreciate Your Business
,
Correspondence Indited
of
Philadelphia
^Charter Number One
OFFICERS
WII I IAM A
KENTON WARNE, Vice-President
I AW
'
Prpsidpnt
'
FREAS B. SNYDER, Vice-President
HARRY
Total
THOMAS W. ANDREW, Cashier
CHAS. H. JAMES. Assistant Cashier
CARL H. CHAFFEE, Assistant Cashier
J. HAAS, Vice-President
Resources
$37,000,000
THIRD NATIONAL BAN K
PHILADELPHIA
A
Commercial
Bank ln
a
Commercial Centre
Capital, $600,000.00
LEWIS R. DICK, President
'
G. BRINTON ROBERTS, Vice President
WM. T. TOMLINSON, Assistant Cashier
W. CLIFFORD WOOD,
THOMAS W. ASTBURY, Jr.. Assistant Cashier
Cashier
We solicit the collection of drafts and other items that require personal presentation,
and shall give good service at a reasonable charge.
Our department is well-
equipped, and all branches of
our
business conducted
41
/
/
on
intelligent and liberal lines.
PHILADELPHIA
Capital
....
.
.
Surplus and Net Profits.
.
.
.
E.
.
FRANK G.
R.
W.
F.
SHANBACKER, President
W. A. BULKLEY, Ass't Cashier
ROGERS, Vice-President
J. CLARK, Vice-President
and Cashier
K. HARDT, Vice-President
$3,000,000
7,000,000
C. F. SHAW, Jr., Ass't Cashier
W. R. HUMPHREYS, Ass't Cashier
Philadelphia
Capital, Surplus and Profits
$1,050,000
Total Resources
13,000,000
over
-
-
-
OFFICERS
J. S. McCULLOCH, President
T. H. CONDERMAN,
O. STUART
Vice-President
ACCOUNTS
AND
Cashier
CORRESPONDENCE INVITED
This bank offers all the power
42
L. N. SPIELBERGER, Vice.President and
FREDERICK FAIRLAMB, Asst. Cashier
WHITE, Asst. Cashier
consistent with safe and
sane
banking.
THE MARKET STREET NATIONAL
BANK
'
OF
1
PHILADELPHIA
CAPITAL
iiSBpfti
DEPOSITS
..............
.
13,870,000
.
17.000,000
.
OFFICEUS
•
.
||®l
'
1,500,000
.
TOTAL RESOURCES OYER..
Jambs F.
II.
,
$1,000,000
SURPLUS and NET PROFITS.
Wm. P.
'
Sullivan, President
Sinnett, Vive-Pres. and Cashier
Sullivan, Vice-President
Fued F
Livingston
Wm.
FIRST CLASS COLLECTION
II
Spellissv. Asst. Cashier
Trappe.
Cashier
FACILITIES
CORRESPONDENCE INVITED
■
i"
-
VVV'!
■
PHILADELPHIA
Capital $5,000,000
PAYS
Surplus $16,000,000
INTEREST
EXECUTES TRUSTS OF
ON
DEPOSITS
EVERY DESCRIPTION
SECURITIES AND VALUABLES TAKEN
WILLS
SAFELY
•
FOR
SAFE
KEEPING
CHARGE
KEPT WITHOUT
WILLIAM P. GEST, President
J.
C.
W. G.
NEFF, Vice-President
GEO. H. KYD,
JOS.
Treasurer
LITTLETON, Vice-President
McMORRIS, Secretary
DIRECTORS
HENRY
W.
<i. < OLESBERRY P If RYES
BIDDI,E
(HARLEMACNE TOWER
SAMUEL
WILLIAM I\ GEST
EDWARD
T.
STOTKSBURY
T. BODINE
JONATHAN C. NEFF
EDWARD WALTER CLARK
MORRIS R. BOCKirS
SIDNEY
JOHN 8. JENK8, JR.
TYLER
LYBRAND, RO SS BROS. & M ONTGOMERY
CERTIFIED PUBLIC ACCOUNTANTS
' ' '
\
.
'
'
. .
-
'
,
.
Offices:
1
.
PHILADELPHIA
NEW YORK
BOSTON
PITTSBURGH
■
'
I
SAN FRANCISCO
'
•
CHICAGO
NEW HAVEN
Agencies:
LOS ANGELES
KANSAS CITY
NEW ORLEANS
.
.
LONDON, ENGLAND
SEATTLE
DALLAS
SAVANNAH
-*
ESTABLISHED 1866
®. CO.
BODINE, SONS
COMMERCIAL PAPER
COLLATERAL
129
SOUTH
FOURTH
LOANS
NEGOTIATED
PHILADELPHIA, PA.
STREET
SPECIALISTS IN SECURITIES FREE OF
PENNSYLVANIA STATE TAX
HARPER & TURNER
Investment Bankers
1000-1012 STOCK EXCHANGE BUILDING
PHILADELPHIA
Members Philadelphia Stock Exchange
Established 1893
'•
MORRIS BROTHERS, Inc.
PORTLAND, ORE.
MUNICIPAL AND CORPORATION
Pacific Coast Securities A
BONDS
Specialty
MORRIS BROTHERS
COMPANY
PHILADELPHIA
HIGH-GRADE MUNICIPAL, RAILROAD AND
New
York and Pennsylvania
ERVIN
INVESTMENT
Drexel
OF
THE
NEW
1
YORK
•
Tax Free Bonds A Specialty
<a
co.
SECURITIES
Trinity
Building
PHILADELPHIA
MEMBERS
PUBLIC UTILITY BONDS.
AND
Building
NEW YORK
PHILADELPHIA
STOCK
EXCHANGES
The
Fidelity Trust Company
Charles
?
1
|
and
LEAR
f
WARFIELD, President
BLACK, Vice-President
SAMUEL M.
Streets
BALTIMORE, Ml).
EDWIN
VAN
Lexington
W. BLADEN LOWNDES, Vice-President and Treas.
HENRY D. HARLAN, General Counsel
GEORGE L. MAHLER, Asst. Sec'y and Asst. Treas.
HANN, Vice-President
J. H. BEATSON, Sec'y and Asst. Treas.
F. HOWARD WARFIELD, Trust Officer
C. T. WILLIAMS,
Manager Investments
DIRECTORS
EDWIN
WARFIELD,
President.
VAN
Black,
LEAR
Sheridan,
HERMAN
BLACK,
Wilson
E.
HOWARD
v.
BRUCE,
Bartlett-Hayward
SPRIGG
Prest.
Union Tr.
D.
Co.
CAMDEN,
& Deposit Co.,
W. Va.
CHARLES
VIce-Prest.
Company.
BOSLER,
Capitalist,
■
Con.
M.
Gas,
Parkersburg.
COHN,
Electric
Power
Light
&
Co.
SOLOMON
FRANK,
Capitalist.
FRANK
President
Maryland
A.
FURST.
Dredging & Contracting
Co.
E.
STANLEY
James
S.
Gary
GARY,
& Son.
JOHN
S.
GIBBS,
JR..
Glbhs Preserving Company.
HENRY D. HARLAN,
General
Counsel,
The
Fidelity
Trust
Co.
WILLIAM
A., HOUSE,
Capitalist
JOSEPH P. KENNEDY.
P.
Kennedy Foundry Co.
WILLIAM KEYSER JR.,
Capitalist
W
VIce-Pres.
BLADEN
Second
LOWNDES.
Bank,
Cumber¬
National
land.
SEYMOUR
MANDELBAUM.
Capitalist.
GUSTAVUS
G.
Ober
&
OBER, JR.,
Company.
Sons
THOMAS
O'NEILL
O'Neill & Co.
JOHN
WALTER
United
.States
GEORGE
■
SMITH.
Senator.
WARFIELD
Capitalist.
CLARENCE
Coal
W.
WATSON.
Operator.
THOMAS
A.
WHELAN,
Attorney-at-Law.
MORRIS
Wbltrldge.
FIDELITY
CHARLES
Acts
Rents
terest
Safe
AND
WHITRIDGE,
White & Company.
BUILDING,
LEXINGTON
STS.
BALTIMORE."
Executor, Administrator, Guardian and Trustee, Manages Estates
Deposit Boxes and Receives Valuables on Storage, Does a General
as
Allowed
on
Deposits.
Issues Letters of Credit and Travelers'
and Collects Incomes.
Banking Business. In¬
Checks.|
BANKING, INVESTMENT, TRUST, REAL ESTATE AND FOREIGN DEPARTMENTS
AUGUST
31, 1917
RESOURCES
Stocks
and Bonds
-
$6,283,368.68
-
Loans Secured by
Collateral
Cash in Vault and Depositories
6,093,106.99
-
-
-
-
-
-
-
-
2,165;372.62
$14,541,848.29
LIABILITIES
Capital Stock
Surplus and Undivided Profits
Deposits
Reserved for Interest and
Taxes
$1,000,000.00
-
-
-
1,433,280.34
12,055,896.09
-
-
52,671.86
$14,541,848.29
45
1864
CHARTERED
SAFE DEPOSIT AND TRUST COMPANY
MM
MMMMgk
13
as
Trustee of
Transfer
Acts
as
«Maaw
-MV
-WHfc.
NHMMfc
MMg
'WNMf
SOUTH
STREET
Surplus and Profits
Capital $600,000
Acts
«
BALTIMORE
F
$2,500,000
over
Corporation Mortgages.
Fiscal Agent for Corporations and Individuals,
Depository under plans of reorganization.
.
Agent and Registrar.
Executor, Administrator, Guardian, Trustee, Receiver, Attorney and Agent, being
especially organized for careful management and settlement of estates of
every
character.
Fireproof building with latest and best equipment for safety of contents.
Safes
for
rent
coupon rooms
Securities held
its large
in
for
on
use
fire and burglar
proof vaults, with spacious and well lighted
of patrons.
deposit for Out of Town Corporations and Persons.
'
DIRECTORS
H.
WALTERS, Chairman of Board
JOHN J. NELLIGAN, President
WALDO NEWCOMER
SAM'L M. SHOEMAKER
JOHN W. MARSHALL, Vice-Pres't
NORMAN
BLANCHARD RANDALL
JAMES
DOUGLAS H. THOMAS
ELISHA H. PERKINS
ISAAC M. CATE
ROBERT GARRETT
GEO.
ANDREW
P. SPAMER,
C, JENKINS
GEO. B.
2nd Vice-Pres't
TRUST
UNION
GAMMIE, Treasurer
COMPANY
BALTIMORE
Modern up to date banking department, being thoroughly
equipped to handle all business pertaining to banking.
Interest allowed
subject to check.
deposits
on
Special attention given to handling Reserve Accounts of State
Banks and Trust Companies.
Transacts a general trust business.
OFFICERS
JOHN M. DENNIS, President
MAURICE H. GRAPE, Vice President
JOSHUA S. DEW, Secretary
WM. O.
N. W, Corner Calvert and German
PEIRSON, Treasurer
Sts., Baltimore, Md.
Capital, $1,000,000
TRANSACTS A GENERAL TRUST AND BANKING BUSINESS
OFFICERS
h.
S. Zimmerman.
President
Jervis Spencer, Jr., Secretary-Treasurer
.2nd Vice-President
Ivan Skinner..Asst. Secy, & Asst, Treas.
,
Carroll Van Ness.
.
DIRECTORS
E.
II.
F.
Donaldson
Richard Gwinn
Bankard
John
Brown
B.
Howell
C.
Griswoi.d, Jr.
Robertson Griswold
T.
Hill
J. Barry Mahool
George W. Fleming
Robert Garrett
Wilbur
.John
.Tames
John
Miller
G. Rouse
L.
T.
Sellman
Theodore E. Straus
Richard H. Thompson
Herbert A. Wagner
Arthur G. Wellington
Henry B. Wilcox
L. S. Zimmerman
Stone
Correspondence and interviews Invited
NATIONAL
FIRST
BANK
RICHMOND, VIRGINIA
$ 3,000,000
Capital and Surplus
Deposits
Resources
.
-A'.-
-
.-
21,000,000
-
-
-
-
26,000,000
over
JOHN M. MILLER, JR.,
W.
M. ADDISON,
President
CHAS. R. BURNETT, Vice-President
Vice-President and Cashier
RICHMOND
TRUST
44;:v444444
Richmond, va.
Capital
>
Surplus and Profits
-
'
-
officers
-
;4
4"
;
President
.
.Vice-President
.,
'
,
.....Vice-President
CHAS. J. ANDERSON...................
R. J.
4
$1,000,000
215,000
4: v
E. L. BEMISS
JAS. G. TINSLEY
CO.
SAVINGS
AND
.Secretary and Treasurer
WILLINGHAM, Jr.
..Trust Officer
DEANE MAURY
4
GRANE, GILPIN & CO.
BANKERS
-
Members of
Washington Stocky Exchange
Banking and Investment
604
Securities
WASHINGTON, D. C.
14th Street N. W.
4
47
First National
Bank of
Chattanooga
"Fifty-second Year"
CAPITAL
$
SURPLUS and PROFITS.
750,000.00
650,000.00
........
TOTAL RESOURCES
14.000,000.00
CHAS..A. LYERLY, President
J. P. HOSKINS, Cashier
J. T. LUPTON, Vice-Pkes.
W. H. DeWITT, Asst. Cashier
C. C.
Z.
NOTTINGHAM, Active Vice-Pees.
J. D. M. MARSHALL. Asst. Cashier
C. PATTEN, JR., Vice-Pres.
Vv. M. ViCKERS, auditor
,l
•
The National Bank
NATIONAL
of Commerce
BANK
CHATTANOOGA, TENN.
NORFOLK, VA.
Capital
$1,000,000
CAPITAL
Surplus
$1,000,000
and
ISURPLUS
Profits
$600,000
$1,000,000
Resources Over
WE INVITE
$14,000,000
YOUR
Our
ACCOUNT
NATHANIEL
BEAMAN, President
TAZEWELL TAYLOR, Vice-President
R. S. COIIOON. Cashier
M. C.
R.
P.
Unsurpassed
Prompt Service and Reasonable Rates
T. R.
FEREBEE, Assistant Cashier
Preston,
J. B. F. Lowry
.President
Cashier
G. H. Miller,
BEAMAN, Assistant Cashier
JOHN R.
Collection Facilities
Are
S. A.
Vice-President
KILBY, Assistant Cashier
marked)
D. S.
Vice-President
features
C. M.
Promptness, Courtesy, Safety and Reliability
Strauss,
Assistant Cashier
Jno. Stagmaier
Henderson,
Assistant Cashier,
E. B. Shadden
Preston,
Vice-President
Auditor
.1
TRUST COMPANY
LOUISVILLE, KY.
Ss'sS flfti
Capital, $2,000,000
A
JOHN
W. BARR.
Surplus and Undivided Profits
JR.
over
l. M. RENDER
President
Secretary
L. W.
BOTTS
Vice-President
J. lithgow smith
Manager of Sales
$800,000.00
J. G. McPHERSON
Assistant
Secretary
ARTHUR PETER
Trust Counsel
JOHN T. MALONE
Manager
Manager of Rents
J. F. SPEED
MENEFEE WIRGMAN
^"istant Secretary
J.D. WINSTON
GEORGE LEWIS
D. F.
Treasurer
MURPHY
Assistant Treasurer
WM.
I. MORTON
Superintendent of Vaults
48
Auditor
L. P. MILLER
Assistant Auditor
Birmingham
Trust & Savings Co.
BIRMINGHAM, ALABAMA
Organized in 1887
Capital $500,000
ARTHUR W.
:v;.
't
■
i'
''
If:,.;.
'
W.
',-rT^yjaJl'&
vi•.«<
,
BENSON CAIN, Ass't Cashier
C. D. COTTEN, Ass't Cashier
E.
W. FINCH, Ass't Cashier
TOM O. SMITH, Vice-President
'
.
Surplus (Earned) $650,000
SMITH, President
H. MANLY, Cashier
Steady adherence to conservative banking is
coupled with prompt attention to all business.
*•*
We
Especially Solicit Your Birmingham Items,*
First National Bank
BIRMINGHAM,
Capital $1,500,000
Resources
Surplus $1,500,000
$22,000,000
over
JOHN H.
BARR,
tlw.'
H.
J.
K.
Chairman
THOMAS HOPKINS, Cashier
F. S. FOSTER, Ass't Cashier
THOMAS BOWRCN, Ass't Cashier
OSCAR WELLS, President
J.
ALA.
WOODWARD, Vice-Pi esident
FLEMING. Vice-President
....
.
y-j
QUICK RETURNS FOR SOUTHERN COLLECTIONS
SEND
US
YOUR
ITEMS
DEPOSITORY OF THE I'MTEO STATES
AM) STATE OF ALAIUMA
first national bank
OF
HOUSTON, TEXAS
CAPITAL, $2,000,000
SURPLUS, $500,000
G. G. TIMMINS,
j. T. SCOTT. President
F.
M. LAW, Vice-President
W. S. COCHRAN, Vice-President
H. B. BR1NGHURST. Ass't Cashier
F. E. RUSSELL. Cashier
J. W." HAZARD, Ass't Cashier
WE INVITE CORRESPONDENCE
UNEXCELLED
As,;t Cashier
J. L. RUSSELL, Ass't Cashier
FACILITIES
OF
FOR
BANKS
AND
HANDLING
BANKERS
DESIRING
COLLECTIONS
ON
THE
STATE OF TEXAS.
ESTABLISHED 1873
FORT WORTH, TEXAS
/■•'
'
Capital $600,000 ($200,000 earned)
Surplus and Profits $1,200,000
K.
ELMO SLEDD,
E.
W.
M. MASSIE,
R.
We
M. VAN ZANDT, President
Vice-President
W. FENDER,
B. VAN
R. E. HARDING, Vice-President
ZAND!, Vice-President
Cashier
Assistant Cashier
cordially invite the
RAYMOND C. GEE, Assistant Cashier
H. P. SANDIDGE, Assistant Cashier
correspondence of Banks and Bankers desiring efficient and
satisfactory service
in this territory
49
,
r
Capital^1,000,000
Surplus $1,000,000
Total Resources $17,000,000
INCORPORATED
i
1792
THE
NATIONAL UNION BANK
BOSTON, MASS.
Boston's oldest bank,
with
an
originally chartered in 1 792,
unbroken record of continuous dividends
hundred and
for
one
Its
medium
attention
to
twenty-five
size
its
gives
depositors.
years.
assurance
of
personal
OFFICERS
HENRY S.
GREW, President
WILLIAM S. B. STEVENS, Vice-President
ARTHUR E. FITCH, Cashier
ALEXANDER WHITESIDE, Vice-President
JOHN W. MARN0, Assistant Cashier
BAKER, AYIJNG
& YOUNG
AA-Gas, Electric Light, Water Power
Bonds and 1Yeferred Stocks
50 CONGRESS
PHILADELPHIA
STREET, BOSTON
SPRINGFIELD
CHICAGO
SPRINGFIELD NATIONAL BANK
SPRINGFIELD, MASS.
HENRY
H.
ROBERT W.
BOWMAN,
President
RALPH
DAY, Vice-President
P.
ALDEN,
Cashier
PHILIP S. BEEBE, Assistant Cashier
Comparative Statements of Twenty-four Years' Business:
Year
Capital
1893...
1897.
1901
....
1905
$200,000.00
200,000.00
200,000.00
250,000.00
Surplus
and Profits
$51,766.00
87,968.00
244,564.00
307,125.00
Surplus
Deposits
$382,000.00
1,002,000.00
1,762,000 00
2,196,000.00
Year
1909.
1913
1915
1917
Attention is called to the
Capital
.$500,000.00
...500,000.00
500,000.00
500,000.00
and Profits
$581,500.00
675,650.00
803,060.00
943,000.00
Deposits
$3,150,000.00
4.100,000.00
5,130,000.00
6,500.000.00
steady increase from year to year in all three of these accounts.
original Capital paid in at the date of the Bank's organization, May 6, 1893, was $200,000.00.
May 6, 1904, the Capital was increased $50,000.00 and on May 6, 1909, was again increased
$250,000.00.
The Capital is now $500,000.00, Surplus $500,000 00, and Undivided Profits over $440,000.00.
The
On
50
100 Franklin
Street, Boston
18 75
BUSINESS SINCE
IN ACTIVE
Capital $1,000,000
SS£tr„.„gS
Deposits $16,000,000
«.»»»•«»»
OFFICERS
CHARLES E. ROGERSON,
President.
WILLIAM H. WELLINGTON,
Vice-President.
C.
WILLIAM
WILLIAMS,
Vice-President.
GEORGE E. GOODSPEED,
Treasurer.
ROLAND
E. CIIAFEY,
Assistant Treasurer.
EDWARD E. STEVENS,
Assistanr Treasurer.
FRANCIS J. BURRAGE,
Secretary.
ARTHUR W. COLLINS,
Assistant Secretary.
MARVIN SPRAGUE,
Trust Officer.
WILLARl) T. CARLETON,
Asst. Trust Officer.
LYMAN H. ALLEN,
Asst.
Trust
Officer
ROBERT L. SIIEWELL
Real Estate Officer
WILLIAM E. NUTTING,
Manager Safe Deposit Department.
EDWARD C. BURRAGE,
Asst.
Mgr. Safe Deposit Department.
DIRECTORS
Henry S, Shaw
C, Minot Weld
Wallace L. Pierce
William II, Wellington
Costello C. Converse
Nathaniel Stevens
Edward W. Hutch ins
John S. Lawrence
Elwyn G. Preston
Nathaniel F. Ayer
We
under individual
capacities
we
^0': ($41,000,000).
We act
as
William C. Williams
corporations, firms and banks and
'
'trustee under wills, Trustee
indentures and Administrator of estates. In the above
authorized to act
are
Herbert Lyman
John W. Farwell
allow interest.
Amor Ilollingsworth
Henry G. Brooks
George W. Wheelwright
of individuals,
Charles F. Dowse
Richard M. Saltonstall
We solicit the accounts
Lewis A. Crossett
Charles E. Rogerson
as
Executor and
hold
now
'
over
Forty-one
Million
Dollars
../-.v^
Trustee under Railroad and other
corporate mortgages,
Transfer
Registrar of Transfers, and have departments
equipped to care for this business.
Agent, Fiscal Agent and
admirably
We rent
Safe Deposit boxes
from $10 to $350 per year, affording
protection for securities or valuables.
LARGEST IN NEW ENGLAND.
51
absolute
Our Safe Deposit Vault is the
ESTABROOK
&
CO.,
MEMBERS NEW YORK AND BOSTON
STOCK EXCHANGES
'/.<**•
jt£
j
«".
''
"™*''
?■*/"■"' f
(M
f
wr^tf ji k, y
•
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ami
15 State Street,
j
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K**
«.
*rw
,
*i
.
-'•
•'
tf :
24 Broad Street, New York
V—*
BALTIMORE
:
Boston
■
■
HARTFORD
SPRINGFIELD
y.
Members New
York and Boston Stock
Exchanges
INVESTMENT SECURITIES
53 State Street
7
BOSTON
Wall
Street
NEW YORK
INCORPORATED
SPECIALISTS
TRADED
IN
IN
ALL
UNLISTED
PARTS
OF
THE
SECURITIES
WORLD1
INQUIRIES INVITED
New York, 34 Pine Street
Boston, 53 State Street
52
Merrill
Oldham
& Company
Bonds for Investment
We recommend
35 Congress
•
•
;
.
"•
.
-
.......
•
./
V
Street Boston
'
,
- •
.
•
■ *
; ......
.
.
_
■ .
; :
International Trust Company
Boston, Mass*
115 Summer Street
Deposits over $20,000,000
Surplus $1,500,000
45 Milk Street
Capital $1,500,000
WITH DIRECT
"
CONNECTIONS THROUGHOUT THE NEW ENGLAND STATES THE
DISPOSAL THEIR COLLECTION SYSTEM, ASSURING YOU
AND CREDITS.
CORRESPONDENCE INVITED.
PLACES AT YOUR
INTERNATIONAL TRUST CO.
OF PROMPT RETURNS
OFFICERS
CHARLES G. BANCROFT,
FREDERICK AYER, Vice-President
HENRY L. JEWETT, Vice-Pres. and
CLIFFORD B.
WHITNEY, Treasurer
HOWARD NORTON,
UNION
President
A. FRANCIS HAYDEN, Trust Officer y
CHESTER B. PIERCE Asst. Treasurer
A. EDWARD GARLAND, Asst. Secretary
Sec.
Asst. Secretary
TRUST COMPANY
PROVIDENCE, R. I.
Surplus $500,000
Capital $1,000,000
1
fltSS
Hill
IIIIIIp
OFFICERS
MARSDEN J. PERRY,
ARAM J.
Chairman of the Board
GEORGE W. GARDINER,
'
'
POTIIIER, President
Vice-President
CLINTON F. STEVENS, Asst.
A
Live-Spirited
Treas. and Asst. Sec'y
Institution in the Heart of Providence
Rhode Island Collections
Particular Attention Given to
53
HAROLD J. GROSS, Vice-President
FRANK E. CHAFEE, Treasurer
CHARLES H. SHELDON, Secretary
& COMPANY
(ESTABLISHED 1900;
INVESTMENT
•
SECURITIES
NEW YORK
CHICAGO
Andrews Bldg., 27 Pine St.
108 So. La Salle Street
Specialize in high grade industrial preferred stocks
Underwrite security issues of
J
•
established
With
our
industrial
efficient organization
*
•
corporations
we
are
eminently able
to
handle your business
EASTERN
•
ALBANY. N. Y.
BALTIMORE. MD.
10 State Street
15 State Street
BUFFALO. N. Y.
BOSTON. MASS.
BANGOR, ME.
Munsey Building
100 State Street
NEW
OFFICES
MANCHESTER, N. H.
Merchants Bank Building
Fidelity Building
HAVEN, CONN.
177 Church Street
NEW YORK. N. Y.
1452 Broadway
ONEONTA, N. Y.
PHILADELPHIA. PA.
PITTSBURGH, PA.
PROVIDENCE, R. 1.
Widener
Building
Union Bank
PORTLAND, ME.
Building
Mears
WASHINGTON, D. C.
Woodward Building
441 S. Salina Street
WESTERN
Building
GRAND RAPIDS, MICH.
Commercial Bank Building
LOS ANGELES, CAL,
Merritt Building
DES MOINES, IOWA
Securities Building
SPRINGFIELD. MASS.
Third National Bank
Building
Building
SYRACUSE. N. Y.
CLEVELAND. OHIO
Industrial Trust Building
SCRANTON, PA.
Fidelity Building
New Guardian
234 Main Street
-
OFFICES
CINCINNATI, OHIO
Gwynne Bldg.
DETROIT, MICH.
INDIANAPOLIS, IND.
KANSAS CITY, MO.
Merchants Bank Building
ST. LOUIS, MO.
Boatmens Bank Building
MILWAUKEE, WIS.
First National Bank
Building
MINNEAPOLIS. MINN.
Andrus
Building
Book
Building
Ridge Arcade Building
SAN FRANCISCO, CAL.
Mills Building
SEATTLE, WASH.
Arctic Building
.•
MEMBERS
;
New York
;;^
Chicago
^ wf
'
Chicago Board of Trade
Chicago Stock Exchange
Stock Exchange
137 So. La Salle Street,
Bonds
and
Stocks
I -
,
b
7 Wall Street, New York
.
Capital and Surplus, $4,000,000.00
UNITED
A
STATES
GENERAL
WILLIAM
NELSON N. LAMPERT.
.....
I
V
HENRY R. KENT
.JOHN
GEO.
FLETCHER.........
II.
MARCUS
E
C.
.TACOP.OWSKY.
TTJRRS
A
...
..
COMPLETELY
112
V Uc-V residents
A.
TILDKN,
BUSINESS
President
W. LE GROS
CIIAS. L. BOTE..,.
WM. L. McKEE
R. J. McKAY...
J
...
BANKING
WM.
.
(
WILSON.
DEPOSITARY
Cashier
EQUIPPED
j
. . . .
v
..'I
V Assistant Vwilier*
j
WM. E. McLALLEN.J
HARRY LAWTON. .Manager Foreign
FOREIGN EXCHANGE
West Adams Street,
55
hlwehange Dept.
DEPARTMENT
CHICAGO
Merrill, Cox
&
Co.
COMMERCIAL PAPER
COLLATERAL LOANS
76
WEST
MONROE
STREET
CHICAGO
y.a"
.
va;-
,'v.'
•'v. V.*;
A. G.
•/r,;7*•'''.'V-
V-'-V;1.-
s~
i ' v\ (s *•*&£.:*"«.
.
"V- v'»l •>v
•:
BECKER & CO.
(INCORPORATED)
COMMERCIAL PAPER
■
'
-
...
.
ill i
Northeast Corner
i La
.
111
Salle and Adams Streets
EDWARD P.
v>hlCcigO, 111.
RUSSELL
WALTER
S.
BREWSTER
C. L. PENISTON
■
russell, brewster & co.
'
•
.
SUCCESSORS TO
EDWARD L. BREWSTER
STOCKS
116 West Adams
AND
& CO.
BONDS
Street, CHICAGO
Trinity Building, NEW YORK
MEMBERS OF
Chicago Stock Exchange
We
have
on
hand
a
carefully selected
New York Stock Exchange
assortment of
Bonds for Investment.
Particulars
on
application.
Correspondence of Bankers Invited.
JOHN BURNHAM & CO.
HIGH GRADE INVESTMENT SECURITIES
41
LA SALLE STREET
WRITE
FOR
OUR
U5
QUOTATION SHEET
CHICAGO
LIST
OF
ILLINOIS
TAX
EXEMPT
BROADWAY
NEW
STOCKS
yORK
•*'
Powell, Garard & Co.
Securities
Investment
■
39' South
■.
La Salle Street
Chicago
Philadelphia
Stock Exchange Building
Detroit
.
Dime Bank
'v':":.
New Orleans
Maison Blanche Building
'
,
Dallas '
Busch Building
>
Building
*
Correspondence Invited
Warren
Gorrell
Investment
.
20B
SOUTH
Co.
&
Securities
LASALLE
STREET
CHICAGO
"
>
o
•
-•
SLAUGHTER & CO.
110 West Monroe Street
•
'
'
•
,Vov
Chicago
•'
.
'■
....
:
members'
New York Stock
Exchange
New York Cotton
New York Coffee
Exchange
Exchange
Chicago Stock Exchange
Winnipeg Grain Exchange
Chicago Board of Trade
St. Louis Merchants'
New York Produce
Minneapolis Chamber of Commerce
it
J. HERBERT WARE
Exchange
,
Exchange
j.. / ■
* EDWARD F. LELAND
•
.
WARE & LELAND
STOCKS
WE
GRAIN
COTTON
UNLISTED
SECURITIES
BONDS
SPECIALIZE
160 West
61
IN
Jackson Boulevard, Chicago
Broadway* New -York
MEMBERS
NEW YORK STOCK EXCHANGE
CHICAGO STOCK EXCHANGE
NEW YORK COTTON EXCHANGE
CHICAGO BOARD OF TRADE
57
_
W.G.SOUDERS& COMPANY
BANKERS
INVESTMENT
South
208
•
■
CHICAGO
■
Dime Bank Building
Salle St.
La
; J". DETROIT
.
Building
Bank
National
First
MILWAUKEE
Secured
STEAM
INDUSTRIALS
SERVICE
332
•
WATER POWERS
RAILROADS
PUBLIC
■
First Mortgage Bonds of
by
RAILROADS
ELECTRIC
/
INVESTMENTS
GRADE
HIGH
SOUTH
CORPORATIONS
AVENUE
MICHIGAN
€JM©&§®
•
;
'
.
7
-.7V
NBW YORK
Mu
n
i
'
...
7
Safest
•
.
7. "7:;.'"
7 7
JOLIX*.
77PRATTLE. WASH.
i pal
c
-
.
■
JHK.VRV
HO KAST -4-iiwu JSTKB3KT
B ond
FREE OF FEDERAL INCOME TAX
'
*
Interest
"
.
.
from
Banks
for
Known
Investments
■
.
,
4^ to 6
•
■
and
Hanchett
per cent.
Bond
Co.
(INCORPORATED)
39
So.
BRANCH
LaSalle
OFFICE:
DIME
St.,
Chicago
BANK BUILDING, DETROIT
58
77.7'
Individuals
''.'••••
Apply for Current Circular
The
s
;
THE DIME SAYINGS BANK
DETROIT, MICH.
$2,200,000.00
33,000,000.00
Capital, Surplus and Profits
Resources
over
OFFICERS
WILLIAM
LIVINGSTONE...
GEORGE H. BARBOUR.,. ;
.
i
.. ,.............
CHARLES A. WARREN.....
...
CHARLTON
Vice-President
CHAS. O.
Vice-President and Cashier
a
Assistant Cashier
.
BREEN....
.
Assistant Cashier
...Auditor
.
......
Credit Manager
Manager of Branches
Send
general hanking business
HENRY M.
.
Assistant Cashier
..
....
JOHN D. MORTON.........
Assistant Cashier
JOHN C. BARRON
Transacts
...
E. PARTRIDGE
BALL"
GEORGE T.
..........Assistant Cashier
F. F. TILLOTSON
L. C. SHERWOOD.,.........
CARNEGIE.
DAVID S.
President
Detroit collections
us your
FRANK W. BLAIR
CAMPBELL
President
Chairman
Commenced business October 19th, 1891
'■■V'
•.
Now
entering
year
of highly capable and successful
its twenty-seventh
upon
administration
of
of
business
trust
all kinds.
mmmm
PES
MOINES NATIONAL
DES
BANK
MOINES, IA.
seeking a desirable
handling IOWA business.
Offers its services to ail
connection
Its
central
for
location and large list of cor¬
respondents afford facilities unexcelled in
this field.
Capital
Surplus
ARTHUR REYNOLDS
President
J.
A.
CAVANAGH
Vice-President
C.
A.
BARR
Vice-President
59
J.
-
$750,000.00
150,000.00
H.
HOGAN
Cashier
C.
A.
DIEHL
Assistant Cashier
> /•—-
Southwest
National Bank of Commerce
$$ if
AND
m Commerce Trust Company
^
Combined Capital
^!»
VS
Combined Surplus
rf
"f'
ff
>
-4-lt?
it 11%
and 151061:8
•
.
•
Combined Resources
E[
ig i
•
.
$5,000,000
$2,975,000
$93,650,000
Members Federal Reserve System
COMMERCE
60
BUILDI
Large Enough
Strong Enough
To
To
Serve
Any
All
Protect
Organized in 1857
The
National
Bank
Commerce
of
in St. Louis
connections insures to its friends
STRENGTH,
AND
EFFICIENCY
PROMPT
SERVICE
TOM RANDOLPH, Chairman of the Board
JOHN G. LONSDALE, President
W.
B.
COWEN, Vice-President
F. W.
-
W. L. McDONALD, Vice-President
WRIEDEN, Assistant Cashier
G. N.
HITCHCOCK, Assistant Cashier
A. L.
WEISSENBORN, Assistant Cashier
W. M.
E.
CHANDLER, Assistant Cashier
J. MUDD, Assistant Cashier and Manager Disct. Dept.
A. W.
'
J. A. LEWIS, Vice-President and Cashier
THIAS, Assistant Cashier and Manager Credit Dept.
;
He international Trust Go.
Denver, Colorado
Member Federal Reserve
System
CAPITAL AND SURPLUS, $1,000,000
RESOURCES
15,000,000
JOHN EVANS, President
THEO. G. SMITH, Vict-President
H. J. ALEXANDER,
Vice-President
A. M. CULVER, Manager Safe Deposit Vaults
P. E. CLELAND, Treasurer
H. T. SIBLEY,
Transact
a
H. H, BROOKS, Secretary and Trust Officer
F. G. HARRINGTON, Assistant Secretary
Manager Bond Department
General Trust Company Business
The National Bank of Commerce
of Seattle
over
Resources
E
invite
firms
the
and
accounts
responsible corporations,
and those of banks and
prepared to render prompt and
satisfactory service, and to handle Northwestern business
individuals,
bankers, and
'
of
$18,000,000.00
upon
are
the most favorable terms.
We
shall be
sentatives
of
pleased
Eastern
to correspond with and to meet the reprcSouthern companies which contemplate
.
and
establishing offices or branches in Seattle, and believe that our , re¬
sources, experience and extensive connections on the Pacific Coast
and in the Orient and Alaska, give us unsurpassed facilities for prop¬
erly handling any business entrusted to us.
M. F. BACKUS, President
J.
A. SWALWELL, Vice President
R. S.
F
W.
BKOWNELL, Assistant Cashier
L. F.
F. H. LUCE,. Vice President
WALKER, Cashier
R. P. CALLAHAN, Assistant Cashier
KELLOGG, Assistant Cashier
Boettcher, Porter & Company
denver
INVESTMENT
■v-e-w
SECURITIES
First National
Bank
of St Paul
I
I
$®!v
I
m
i
1
|i t* J J S 1 I
f 111
m4|llr\
iSSt*;-* 11
1
UNITED STATES DEPOSITARY
Deposits
Surplus
Capital
$46,000,000
$2,000,000
$3,000,000
'
OFFICERS
LOUIS W.
HILL, Chairman Board of Directors
EVERETT H.
BAILEY, President
OTTO
MARK
M.
NELSON, Vice-President
CHARGES H. BUCKLEY, Cashier
R.
"
CHARLES E. GALL, Assistant Cashier
SKINNER, Vice-President
MARTIN
•
EDWIN MOTT, Assistant Cashier
HENRY B. HOUSE, Assistant Cashier
CYRUS P. BROWN, Vice-President
GEORGE H. WICHMAN, Assistant Cashier
BROWN. Assistant
to
the
Chairman
any
Capital $1,000,000
Affiliated with
Surplus and Undivided Profits $250,000
The First
National Bank of St. Paul
OFFICERS
LOUIS W. HILL, Chairman
Board of Directors
GEO. P. FLANNERY, President
EDWARD P. DAVIS, Vice-President
JOHN J. TOOMEY, Vice-Pres. and Treas.
A. W. L. WALLGREN, Secretary
RENSLOW P. SHERER, Vice President
H. W. MARTIN, Asst. Sec. and Asst. Treas.
FRED R.
CRANE, Mgr. Farm Loan Dept.
63
The
^ItlZC
OF LOS ANGELES
Surplus and Profits, $769,036
Capital, $1,500,000
Deposits, $16,000,000
Ample
to
resources
assure
No service this bank
consistent service for all commercial accounts
render will be regarded as unimportant
can
OFFICERS
A.
WM. W. WOODS, Vice-President
M. J. MONNETTE. Vice-President
J. WATERS. President
E. T. PETT1GREW. Cashier
GEORGE E. F. DUFFET, Ass't Cashier
LOS ANGELES
SAN FRANCISCO
105 West Fourth St.
477 California St.
GEORGE BUGBEE. Ass't Cashier
H. D. IVEY, Ass't Cashier
PASADENA
65 South
Raymond Ave.
$300,000
700,000
Surplus Earned
Send
us
your
Louisiana and Mississippi Collections
64
OFFICERS
President
STODDARD JESS
E. D. ROBERTS
Vice-President
E. S. PAULY
.
W.
A. C. WAY
.
.
JOHN S. CRAVENS
T.
S.
HAMMOND
.
.
.
E. W. COE
Assistant Cashier
.
W.C.BRYAN
W.
J.FORSYTH
H.
.
.
LUTZ
.
Vice-President
.
.
Vice-President
Cashier
.
Assistant Cashier
.
A.B.JONES
JOHN P. BURKE
Vice-President
.
.
Assistant Cashier
.
.
Assistant Cashier
Auditor
Manager Foreign Department
DIRECTORS
J.
JOHN P.
M. ELLIOTT
.
.
Chairman of Board
H.JEVNE
BURKE
H; Jevne Co.
Vice-President
JOHN S. CRAVENS
O.
J.
KOEPFLI
Vice-President
J. C. DRAKE
President Los
Bishop & Co.
DAN MURPHY
Angeles Trust and Savings Bank
FRANK P.
„
Capitalist
FLINT
E.
Attorney
President
M. H. FLINT
Vice-President Los Angeles
Torrance,
Marshall & Co.
JOHN B. MILLER
Trust and
President Southern
Savings Bank
E. D.
C. W. GATES
California Edison Co.
ROBERTS
Vice-President
Capitalist
STODDARD
J. MARSHALL
F.
JESS
President
President
65
0. STORY
California Fruit Growers' Exchange
The Canadian Bank
of Commerce
ESTABLISHED
1867
RESERVE, $13,500,000
CAPITAL, $15,000,000
SIR EDMUND WALKER, C.V.O., LL.D
SIR. JOHN
,
D.C.L., President
H. V. F. JONES, Ass't General Manager
AiKD, General Manager
S. H. LOGAN, Supervisor
of Foreign Department
HEAD OFFICE. TORONTO
This bank,
having 374 branches in Canada, is enabled to place at the disposal of its Correspondents
every kind of banking business throughout the Dominion.
unexcelled facilities for the transaction of
Special attention given to the collection of Commercial
ACCOUNTS
OF
FAVOURABLE
New York
F.
B.
AMERICAN
BANKS
RECEIVED
ON
I
TERMS—CORRESPONDENCE INVITED
Agency—16 Exchange Place
Francis, J. A. C. Kemp and C. J. Stephenson, Agents
PORTLAND BRANCH
SAN
FRANCISCO'BRANCH
F. C. Maipas, Manager '
G. W. B. Heathcote.
SEATTLE BRANCH
paper.
E. B. Ireland,
MEXICO CITY BRANCH
Manager
D.
LONDON. ENGLAND. OFFICE. C. Cambie. Manager
66
Muirhead, Manager
Manager
INCORPORATED 1869
Capital Authorized
Capital Paid Up
-
-
-
-
-
$25,000,000
.
12,911,700
-
-
-
-
Reserve and Undivided Profits
Aggregate Assets
Head
14,324,000
300,000,000
-
-
-
-
-
-
Office, Montreal
BOARD OF DIRECTORS
Sir HERBERT S. HOLT, President
E. F. B.
E. L. PEASE, Vice-President
JOHNSTON, K. C., 2nd Vice-President
J AS. REDMOND
HUGH PATON
W. J. SHEPPARD
C. E. NEILL
C. C. BLACKADAR
G. R. CROWE
WM. ROBERTSON
C. S. WILCOX
SIR MORTIMER B. DAVIS
JOHN T. ROSS
D. K. ELLIOTT
A. J.
A. E. DYMENT
G. H. DUGGAN
/>
BROWN, K.C.
R. MacD. PATERSON
HON. W. H. THORNE
G. G.
E.
C.
E.
L.
F. J.
W.
B.
STUART, K.C.
PEASE, Managing Director
NEILL, General Manager
SHERMAN, Aaat. General Manager
TORRANCE, Supt. of Branches
Branches in Canada:
176 in Ontario and
Quebec
78 in Maritime Provinces
.
68 in Central Western Provinces
38 in British Columbia
6^Branches in Newfoundland
in West
Branches
Mil"',
K'i'l1
♦ .1 rf
!■
■
I'll
Indies:
Cuba—Havana, Santiago and 22 other points
Porto Rico—San
,r
Cf-llF-p"
[E It
s>|at
ft
„
Lv t IIII
nK
2r-
I
Juan and 2 other points
Republic—Santo Domingo and 4 other
points
Antigua—St. John's; Bahamas—Nassau; Barbados
—Bridgetown and Speightstown; Dominica—
Roseau; Grenada—St. George's; Jamaica—
■«..11" {few
»*•>,'If■;,
■
Dominican
**4
Kingston; St. Kitts—Basseterre;' Trinidad—
Spain, San Fernando and Scarborough
Port of
||
(Tobago)
[•
15 IE IE
Branches in Central and
If Bit H:
South America
British
Honduras—Belize
Guiana—Georgetown (Demerara), etc.
Jose, Limon
Venezuela—Caracas, Ciudad Bolivar, Maracaibo and
British
Costa Rica—San
Puerto Cabello
LONDON,
NEW YORK AGENCY, THE ROYAL BANK
Corner
William
and
Eng.
OF CANADA
Princes St., E. C.
Cedar Streets
NEW YORK
Cor. William and Cedar Sts.
The entire ground floor of this building has been
secured under
a
long lease
-
COLLECTIONS
Central America
handled
A
GENERAL
South and
and the West Indies, etc..
in
Canada,
promptly and
BANKING
on
favorable terms
BUSINESS
67
TRANSACTED
ESTABLISHED 1875
IMPERIAL
OF
Capital Paid
up
BANK
CANADA
Reserve Fund $7,000,000
$7,000,000
PELEG HOWLAND, President
■
E. HAY, Gen'l Mgr.
HEAD OFFICE-TORONTO
We solicit the Canadian Business
of American Banks at
any
of
our
Branches_
Prompt Attention is Assured.
126
BRANCHES
IN CANADA
AGENTS
York
New
n
Bank of the
■v
Manhattan
Buffalo
v
Buffalo
Bank of
Company.
Boston
Detroit
National Shawmut Bank
First and Old
Philadelphia
■
Detroit National
Chicago
Fourth Street National Bank,
First
Farmers and Mechanics National Bank
.■
National
Corn Exchange
Great Britain
Lloyds Bank, Limited, Head Office,
Bank
i
Bank,
National Bank
■
Lombard Street,
Load an,
E. C.
CORRESPONDENCE INVITED
AND
CORPORATION BONDS
SERVICE
\
Sixteen
Bonds
places
to aid in
this
of
years
us
service
in
a
to
investors in
position
to
offer
satisfactory buying', selling
security.
.
or
Canadian
all facilities
investigating
•
Any enquiry with respect to Municipal, Railroad, Public
Utility
or
Standard Industrial issues of the Dominion
of Canada will
receive
our
best attention and
We invite
I. R Wood
-
-
LIMITED.
President
-
-
A. Morrow
-
VW-Prejident
J.W. MhcheH
-
Viee-President
A A. Freser
«»
enquiries.
-
W.I. Hodgcns
-
T. H. Andison
'
A. P. White
-
-
-
'
Esublished 1901
MONTREAL BRANCH
Canada
Life
A. W. Steele
26
KING
STREET
EAST
-
Building
-
TORONTO
68
Manager
LONDON. ENG.. BRANCH
Ne.
Ml Secretary
Aflft Treasurer
•
HEAD OFFICE
Secretary
Treasurer
advice.
2
Austin
A. L. Fuller
ten.
Friars
Manager
UNION BANK OF CANADA
HEAD
OFFICE, WINNIPEG
CAPITAL AND SURPLUS
TOTAL ASSETS
$8,500,000.00
-
$112,300,000.00
-
Officers
R. T.
H. B.
Riley, G. H. Thomson, Vice-Presidents
Shaw, General Manager
J. W. Hamilton, Asst. General Manager
Advisory Committees
fSTUYVESANT FISH, Esq.,
York-!
(
•
.v
John Gait, President
•
New
V
Viy,-.
Sir William Price, Hon. President
f Lieut-Col. J. LEIGH WOOD, C.M.G.
Col. CORNELIUS VANDERBILT,
Esq.,
London
GILBERT G.THORNE, Esq.
Lieut.-Col. The Hon. SYDNEY PEEL
s
1 F. W. ASHE, Esq.
With branches located in all the principal cities and towns in
310
Canada, the Bank is particularly well equipped to handle col¬
Branches
lections
in Canada
or
other business entrusted
TWO BRANCHES
The New York
Canadian
IN
it
to
by American Banks
LONDON, ENGLAND
Agency Statistical Department will furnish
on
application information respecting Canadian investments, in¬
dustrial opportunities
Information
firms and others.
and
\
NEW YORK AGENCY )
Geo. Wilson )
i
F. T. Short j
49 WALL STREET
ANK
Canadian Companies,
reports upon
'
.
_
A"""
OF TORONTO
Head Office;
"
TORONTO, CANADA
'
i
INCORPORATED
i855
Capital
.
.
.
.
$5,000,000
Reserved Funds 6,508,000
/Complete
facilities
^making
tions
of every
banking
business
description.
AGENTS IN
NEW
Canada
throughout
for
and
YORK,
UNITED STATES
Nat.
Bank of Commerce
CHICAGO,
First
BUFFALO,
Manufacturers'
National
for
prompt collec¬
National
Bank.
&
Traders'
Bank.
ST. LOUIS, National Bank of Commerce.
w:
G.
GOODERHAM,
President
JOSEPH HENDERSON,
Vice-Pres.
THOS.
119 Branches in Ontario,
/
ASSETS,
HOW,
General
Manager
Quebec and the West
$73,000,000
69
F.
Canadian
Government and
Our lists
and
Municipal Bonds
comprise the highest grade Municipal
in Canada.
obtainable
Government Bonds
Correspondence invited.
Wood, Gundy & Company
14 W all Street, New York
Toronto
London
ESTABLISHED 1864
Head Office:
MONTREAL
Paid
Capital
Up
$7,000,000
$7,000,000
Rest
$421,292
Undivided Profits
Sir H.
MONTAGU
K. W.
BLACKWELL,Vice-President
E.
F.
ALLAN, President
HEBDEN, Managing Director
D. C.
MACAROW, General Manager
CANADIAN COLLECTIONS
Having 236 Branches and Agencies in Canada, and
respondents in
V
facilities
are
for
every town
making collections throughout the Dominion
unsurpassed.
;
Canadian" Checks
Canada by
NEW YORK
AGENCY
W.
„
M.
mail
cashed,
or
and
telegraph,
63-65
::
cor¬
from coast to coast, this Bank's
money
transferred
to
favorable terms by the
on
WALL
STREET
RAMSAY, C. J. CROOKALL, Agents
Telephones, Hanoyer 8057-8058
INCORPORATED
1855
MOLSONS
THE
BANK
Head Office: MONTREAL
98 BRANCHES IN
Capital Paid Up
Total Assets Over
-
-
-*
Reserve Fund
-
EDWARD C.
CANADA
-
-
-
-
$4,000,000
.
-
-
-
-
4,800,000
64,000,000
PRATT, General Manager
SPECIAL ATTENTION GIVEN TO COLLECTIONS
RECEIVED FROM THE UNITED STATES
70
A. E. AMES & CO.
(Established 1889)
INVESTMENT
SECURITIES
CANADIAN
Government, Municipal and Corporation
Bonds and Stocks
n
Members Toronto Stock Exchange
74
Broadway, New York
53 King
Street West, Toronto.
Transportation Building, Montreal
THE :?
'■:<
>
Bank of British North America
Established in 1836. Incorporated by
Royal Charter in 1840
Reserve Fund £620,000
Paid-up Capital $1,000,000
GRACECHURCH ST., LONDON, E. C.
HEAD OFFICE, 5
COURT OF DIRECTORS
R.
F.
S.
FREDERIC LUBBOCK
EDW. ARTHUR HOARE
BALFOUR
G.
E.
JOHN H. BRODIE
J. H. MAYNE CAMPBELL
C.
HOARE
HON. A.
R.
MILLS.
w!
JACKSON DODDS, Secretary
B.
AMES,
H.
B.
DUNBAR WHATMAN
GOLDBY, Manager
W.
W. R. MACINNES
M.P.
R.
MILLER
140 St. James St., Montreal
Head Office in Canada,
V
MACKENZIE, General Manager
JAMES ANDERSON, Superintendent of Branches
Superintendent of Eastern Branches, Montreal
v
O. R. ROWLEY,
.
J.
J'
S.
COMMITTEE IN MONTREAL
ADVISORY
SIR HERBERT
W. TOMKINSON
GEO.
M.P.
McEACIIERN, Superintendent of Central Branches,,
N.V^UUS, | inspectors, Montreal /
Winnipeg
A. S. HALL, Inspector of Branch Returns
AGENCIES IN THE UNITED STATES
york
new
52 wall street
(Opened 1843)
W. T. OLIVER and P. C.
SAN FRANCISCO,
TT
HARRISON, Agents
a. g. fry and a. s. Ireland,
Agents
■ •
;V;
264, California St.
of England and Messrs. Glyn & Co. LIVERPOOL—Bank of LIVERPOOL.
SCOTLAND—National Bank of Scotland, Limited, and Branches.
IRELAND—Provincial Bank of Ireland. Limited, and
Branches; National Bank, Limited, and Branches.
AUSTRALIA—Union Bank of Australia, Limited. NEW ZEALAND—
Union Bank of Australia, Limited.
INDIA, CHINA and JAPAN—Hong Kong & Shanghai Banking Corporation; also
FOREIGN AGENTS—LONDON—The Bank
Mercantile Bank of India, Limited.
WEST INDIES—Colonial Bank.
LYONS—Credit Lyon-
PARIS—Credit Lyonnais.
'
MEXICO—Banco de Londres y Mexico and Branches.
nais.
vv
:
Drafts
on
South Africa and West Indies may be obtained at the Bank's
Issues Travellers Credits available in all parts of the World
AGENTS IN CANADA FOR COLONIAL
Branches
T," :
BANK. LONDON, AND WEST
INDIES
THE MICHIGAN TRUST COMPANY
GRAND RAPIDS, MICH.
LEWIS
H.
WITHEY,
CLAUDE
President
Acts
as
Real Estate.
.^CHOUTEN, Secretary
EMEKSON W. BLISS, Asst. Secretary
NOYES L. AVERY, 2d Asst. Secretary
GORHAM, 3rd Vice-Prest.
Executor, Administrator, Guardian,
HAMILTON. 4th Vice-Prest.
JOH V H.
Vice-Prest.
HENRY IDEMA, 2nd Vice-Prest.
WILLARD BARNHART. ist
F. A.
$800,000
Surplus
$200,000
Capital
Trustee, Receiver, Assignee, etc.
Audits books.
other Securities for sale.
Takes entire charge of Property.
Grade Bonds and
71
Loans Money on
Has High
The National
of New Zealand
LIMITED.
Incorporated in England under the Companies Acts and
in New Zealand by Special Act of the General Assembly.
HEAD OFFICE:
17, MOORGATE STREET, LONDON,
AUTHORISED CAPITAL
SUBSCRIBED
PAID-UP
E.
C.
£3,000,000
2,250,000
750,000
£715,000
£1,500,000
-
yy
yy
RESERVE FUND
UNCALLED CAPITAL
Directors:
HON.
HENRY
STUART
LITTLETON,
Chairman.
JAMES H. B. COATES.
ROBERT LOGAN.
CHARLES
HON. WILLIAM PEMBER REEVES.
LINDSAY ERIC SMITH.
HENRY
F.
ELGAR.
FRESHWATER.
Secretary and London
Manager: ARTHUR WILLIS
BRANCHES AND AGENCIES IN NEW ZEALAND:
ALEXANDRA SOUTH
GORE
PAEROA
Waikaia Agency
AUCKLAND
Do.
SYMONDS STREET
Do.
NEWMARKET
HAMILTON
Do.
NEWTON
PALMERSTON NORTH
PAPAROA
GREYMOUTH
PUKEKOHE
HASTINGS
BALCLUTHA
Tuakau
HOKITIKA
Kaitangata Agency
Owaka
Maungaturoto Agency
PORT CHALMERS
Matangi Agency
*
Agency
KUROW
BLENHEIM
RIVERTON
'
Orepuki Agency
Thornbury Agency
Duntroon Agency
MILTON
■
CHRISTCHURCH
■
CROMWELL
MOSGIEL
DARGAVILLE
STRATFORD
NAPIER
Te Kopuru
"
TAPANUI
•
NELSON
Aratapu Agency
Agency
Okato
WAIHI
Agency
WAIUKU
OAMARU
DUNEDIN
Aka Aka
ONEHUNGAv
Do.
NORTH
Do.
SOUTH
Otaua
OTAUTAU
(Agency)
Agency
Agency
WANGANUI
Nightcaps Agency
GISBORNE
Heriot Agency
TIMARU
NEW PLYMOUTH
Kaihu Agency
Agency
REEFTON
INVERCARGILL
OUTRAM
Do.
CHIEF OFFICE IN NEW
ZEALAND.
;
WELLINGTON
—
TE ARO
WELLINGTON.
General
Manager: D. W. DUTHIE.
Assistant General
Manager and Inspector: J. M. McLEAN
The Bank issues DRAFTS and
LETTERS OF CREDIT, makes
Telegraphic Trans¬
fers, opens_ Current Accounts, negotiates and collects
Bills of Exchange.
Receives
Deposits of £50. and upwards for 1, 2 or 3
years at 4 per cent, per annum, and conducts
every other description of banking business.
Correspondents in all
parts of the world.
72
{Established under Egyptian Law, June, i8q8,
With the exclusive
Capital
In
right' to issue Notes payable at sight to bearer.)
...
300,000
Reserve Fund
£3,000,000
.
Shares of .£10 each, fully paid.
J-
-
-
-
-
Governor
£1,30.0,000
Head
f. rowlatt, esq.
Office
cairo
'
1
Committee
London
e. w. p. foster, esq., c. m. g.
sir carl meyer, bart.
Hon. Algernon mills
Hon. Sidney
,
6 &
.
Peel, d. s. O.
London Agency
7, King William Street, E. C. 4
;
Manager
Assistant Manager
J. T. BEATY-POWNALL
The National Bank of
A. F. GILLBEE
Egypt
including:
v
transacts
all kinds of banking business,
:
Current Accounts, Fixed Deposits, Circular Notes,
Foreign
Drafts and
Telegraphic Transfers, Stocks and Shares, Collection of Bills,
Offices in Egypt at Cairo
Benha,
Beni-Suef,
Mansourah,
Mousky
Zagazig; and
Suakim, and the Sub-Agencies
etc.
(Head Office), Alexandria, Assiout, Assuan,
Chibin-El-Kom,
Minieh,
Sohag, Tantah,
Exchange,
Damanhur,
(Cairo), .Port
Fayoum,
Keneh,
Luxor,
Said, Rod-el-Farag (Cairo),
in
the Sudan
at
El-Abeid, Tokar and Wad Medani.
at
Khartoum,
Port
Sudan,
Hongkong
and
Shanghai
Banking Corporation
HONGKONG, CHINA
'
I
'HE Head Office of the Hong-
1
kong and Shanghai Banking
Corporation is located in Hong¬
kong, China. It was incorporated
by Special Ordinance of the Leg¬
islative Council of Hongkong, in
It has
1867.
a
paid
up
Capital of
Hongkong currency $15,000,000;
Sterling Reserve Fund, $15,000,000; Silver Reserve Fund, $18,500,000.
Reserve liability of
Proprietors, $15,000,000. De¬
cember 31, 1916, the current
ac¬
(gold and silver) were
$203,917,063.31 and the fixed
counts
deposits
and
were
total
$99,150,736.79
$402,812,-
assets
944.59.
It has 36 Branches and
Agencies
China, Japan, India, Java,
Straits Settlements, Philippines,
in
and Agencies and Corre¬
spondents in all the principal
etc.,
cities of the world.
-
V.
v.v*
JIHAD OFFICE,
HONGKONG AND SHANGHAI
WIIDEGlfERJgtgl
36 Wall St., New
BANKING CORPORATION, HONGKONG
YorH
ecie
Yokohama,
Subscribed
Capital, Yen 48,000,000
Reserve Fund, Yen 21,300,000
Capital Paid-up, Yen 36,000,000
Japan
BRANCHES
AND
AGENCIES:
Antung-Hsien
Nagasaki
Bombay
Newchwang
Calcutta
New York
Changchun.
Osaka
Darien
Peking
•
(Dalny)
/
Fengtien(Mukden) Ryojun(PortArthur)
Hankow
San Francisco
Harbin
Shanghai
Honolulu
Singapore
Hong Kong
Sydney
Kobe
Tiehling
Liaoyang
Tientsin
London
Tokyo
Los Angeles
HEAD OFFICE: YOKOHAMA
74
Tsinanfu
Lyons
Tsingtau
ANGLO-SOUTH AMERICAN
iiKS; LONDON
CAPITAL,
L°
,
v
(458,000 shares af £10 each) £4,500,090
ar
$22,500,000
-
£2,250,000
ar
$11,250,000
•
PAID UP,
-
I
RESERVE FUND,
•
-
-
'
£1,400,000
ar
$ 7,000,000
RESERVE LIABILITY OF SHAREHOLDERS
£2,250,000
ar
$11,250,000
TOTAL RESPONSIBILITY FOR CREDITORS
£5,900,000
ar
$29,500,000
BANKERS:
Bank
of
England—Barclay
& Co., Ltd.—Capital & Counties
Bank, Ltd.—London County and Westminster Bank, Ltd.
.
BRANCHES:
FRANCE; Paris. SPAIN:
Valparaiso,
quimbo,
Santiago,
La Serena,
Talcahuano.
Chilian,
ARGENTINA:
Deseado, Mendoza,
Rafael, Trelew.
NEW
Barcelona, Bilbao, Madrid. CHILI:
Iquique,
Antofagasta,
Concepcion,
Buenos
Rio Gallegos,
Copiapo,
Co-
Punta
Aires,
Arenas,
Bahia
Blanca,
Rosario de Santa Fe,
San
URUGUAY: Montevideo.
YORK
AGENCY,
60
WALL
STREET
JOHN CONE, Agent
Y
HEAD
FREDERICK CHARLES HARDING, Sub-Agent
OFFICES, OLD BROAD STREET, LONDON
Bills
on
Australasia,
Also
Europe, South America,
India and
South Africa.
Purchased
and
Correspondents for
NATIONAL
BANK OF INDIA, LTD.
Collected,
ia,
Incorporated by Royal Charter, 1853
Capital (Gold)
$6,000,000.00
.
Reserve Fund
$9,500,000.00
Reserve
Liability of
Shareholders
$6,000,000.00
Undivided Profits
$787,325.00
Total Assets
$166,954,205.00
Branches
in
China,
Japan,
Philippine
Islands,
Java,
Straits Settlements, India and
Burmah,
the
and
and
Agencies in all
principal cities of Europe
Australia.
Commercial
Travelers' Credits issued,
available in all parts of the
and
world.
CALCUTTA
OFFICE
Head Office: 38
WILLIAM BAXTER,
Foreign
exchange
bought and sold.
Bishopsgate, LONDON, ENGLAND
Agent, 88 Wall Street, NEW YORK
The National Bank of
South
BANKERS TO THE
THE
GOVERNMENT IN THE TRANSVAAL,
UNION
ORANGE
AND
STATE,
FREE
TO THE
NATAL,
AND
IMPERIAL GOVERNMENT
Subscribed Capital
$14,250,000
With power to
$20,000,000
increase to
$17,750,000
Paid-up Capital and Reserves
Head Office:
PRETORIA,
General Manager, E. C. REYNOLDS
London Offices: Circus Place, London
Wall, E. C., 18 St. Swithin's Lane, E. C.j
Manager; D. CUNNINGHAM
EGYPT
ARABIi
rrtftYSSIH
*
List'of Branches and
namb)^J»0MbaS*
Agencies
Cape Provi nee
;
East Africa
69
.
JMJSBURi
Natal
>
....
fbUMAYO
Orange Free
State
wsxift,
.
.
.
.
.
Portuguese
Territory
Rhodesia
South-West
aft
Protectorate
Swaziland
Transvaal
.
.
.
.
MAP
OVER
300
SHOWING LOCATION OF PRINCIPAL
BRANCHES
IN
BRANCHES
SOUTH
AFRICA
Banking Business of Every Description is Transacted in All Branches
Bills
on
all points
negotiated and collected.
and Commercial Credits established
on
Letters of Credit and Drafts issued
all Branches and Agencies of the
Bank in Africa and abroad.
New York Office, 10 Wall Street, New York
R. E
City, U. S.
Offers to American banks and bankers its superior facilities for
sion of trade and commerce
A.
SAUNDERS, AGENT
the exten¬
between United States of America and Africa
76
,
Standard Bank of South Africa, Ltd.
HEAD
10
CLEMENTS LANE,
OFFICE
.
LOMBARD STREET, LONDON, E. C.
Paid-up Capital
£1,548,525
£2,000,000
or
$7,742,625
or
£4,645,575
or
$10,000,000
$23,227,875
£25,338,128
£35,192,009
or
$126,690,640
or
$175,960,045
Bankers
to
the Government
Reserve Fund.
Reserve
Liability of Shareholders
Deposits..
Total Resources.
...
Union
Cape
of
South
Province;
Africa
of the
in
the
the Imperial
Government in South Africa; and
to
.the
to
Administration
of
Rho¬
desia.
More than Two Hundred and
Fifty
Agencies in Cape
Province, Natal, Transvaal,
Orange Free State, Basutoland,
Branches and
Rhodesia, British Central Africa,
Uganda, East Africa and South
West Africa.
"v
W. H. MACINTYRE
AGENT
68 WALL ST.. NEW YORK
Also
representing
1
f
The Bank of New South Wales
with
three
(337)
Fiji,
Bank
hundred
and
thirty-seven
Branches throughout
Papua
(New
Australasia,
Guinea).
Premises, Cape Town, Africa
BANK OF NEW SOUTH WALES
(Established 1817)
LONDON
Total Assets, at 31st
March, 1917
SIR
H. L.
W.
$287,130,048.00
M. TRITTON,
S. M.
Esq.
BURNS, Esq.
DAVID GEORGE, Mgr.
HALKERSTONE MELDRUM, Asst. Mgr.
$19,474,900.00
up
Reserve Fund
Reserve
DIRECTORS
FREDERltK GREEN, Chairman
14,000,000.00
-
Liability of
-
19,474,900.00
$52,949,800.00
Head Office, SYDNEY, NEW SOUTH WALES
The
Bank has
London Office, 29, Threadneedle Street,
E. C. 2
337 BRANCHES and AGENCIES in the Australian States, New Zealand,
Fiji, Papua (New Guinea), and London, and Agents and Correspondents all over
the World, on whom the London Office grants Circular Letters of Credit and Circular
Notes. Also issues Drafts on demand. Makes Maii'and Cable Transfers. Negotiates
and Collects Bills of Exchange.
Receives Deposits for Fixed Periods, on terms
which may be known on application, and transacts every description of Australian
Banking Business. Wool and Produce Credits arranged.
-
Represented in New York by the
Standard
Bank, of South Africa, Ld., 68 Wall Street
77
THE CAPITAL AND COUNTIES BANK, Limited
ESTABLISHED 1834
HEAD OFFICE:
($5
-
39 Threadneedle
Street, LONDON
£1.)
Subscribed
Paid-up
Capital.
Capital
Reserve
Fund
....................
..
..
.
....,....
.............i
...
Dec. 31, 1916.
Deposit and Current Accounts.
Cash in hand, at Call and Short Notice. A...
v.....
.
.
....
....
.^......
Bank
Wales,
has
and
.
79,398,580
106,232,700
Exchange, Advances and other Securities....—
and
261,914,700
89,033,465
.
.............
Investments
This
4,000,000
*
"
........
Rills of
$43,750,000
8,750,000
..
,
upwards of 500 offices in England
it has over 11,000 i Shareholders.
Every kind of Banking business transacted
The FOREIGN
EXCHANGE DEPARTMENT
Currency Drafts on all Cities—Letters of Credit and Notes payable throughout the
World—Mail and Telegraphic Transfers.
Approved Freight Bills purchased. Commercial
Credits established available anywhere against usual shipping documents.
Shipowners'
Freight Remittances and Disbursements to all parts.
issues
FOREIGN
The
Bank
acts
as
Agents
BILLS COLLECTED
for American Banks and Trust Companies
and invites corre¬
spondence.
THE UNITED STATES AND CANADA
AGENTS IN
NEW YORK—The National
PHILADELPHIA
City Bank of New York
American Exchange
-
Philadelphia National Bank
SAN FRANCISCO—The Wells Fargo Nevada
The National Park Bank
'
National Bank
SEATTLE -Seattle National Bank
National Bank
BOSTON—The First National Bank of Boston
.
MONTREAL—The Bank of Montreal
CHICAGO—The First National Bank of Chicago
TORONTO—The Canadian Bank of Commerce
CABLE ADDRESS:
CODES:
Elmfield, London
Liebers, Western Union, Peterson's International
Swiss Bank Corporation
ESTABLISHED 1872
;
BASLE,
ZURICH,
ST.
GALL,
LAUSANNE.
GENEVA,
BIENNE.
Capital Authorized and Fully Paid Up
frs. 82 000 000.-
Reserve
frs. 27 750 000.-
-/
-
LONDON OFFICE
-
-
-
-
-
-
GENERAL MANAGER: X.
The Bank wish
to
draw the
43, LOTHBURY, E. C. 2
CASTELLI
•
special attention of the American public to their
WEST END BRANCH: lie, Regent Street,
hats
large visitors'
and in the
rooms
Waterloo Place, S. W. 1., which
and is situated in the very centre of the WEST END
immediate
arrangements are:
neighbourhood of all the important hotels.—Special
being made* for dealing with the financial requirements of
Members
the
of
Traveller's cheques
American
Military
Forces
cashed, and telegraphic and mail payments made
Allied and Neutral Countries.
and Naval
78
to
all
Office—
Head
THREADNEEDLE
5,
STREET,
LONDON,
E.C. 2
Telegraphic Address—"CIMIDHO, STOCK, LONDON."
Telephone—2481 LONDON WALL
Foreign Branch Office—8, FINCH LANE, LONDON, E.C. 3
SUBSCRIBED CAPITAL
$114,739,020
-
PAID-UP CAPITAL
...
-
-
23,903,960
RESERVE FUND
-
-
-
20,000,000
Current Deposits
and other Accounts
Cash in Hand &
at
-
.
-
OVER
-
-
Bank of England
-
OFFICES
1000
IN
$902,086,245
-
.
V'-
-
THE
UNITED
-
182,388,565
-
KINGDOM
Sir Edward H. Holden, Bart., Chairman
.
LIMITED
•
(ESTABLISHED IN 1836)
CAPITAL .£14,000,000,
"
700,000 Shares of
In
-
-
.£3,500,000
=
.
=
=.
-
£4,000,000
Chairman:
Deputy Chairman:
WALTER LEAF, ESQ.
THE RIGHT Hon. THE VISCOUNT GOSCHEN
HEAD
OFFICE: 41,
LOTHBURY, E. C. 2
Joint General
:
The
F;
Managers:
\
J. BARTHORPE
J. W. BUCKHURST
Branches or Agents in all the Principal Cities and
Kingdom and has Correspondents throughout the World.
Bank is represented by
Towns of the
United
MADRID
"■
£20 each
=
Paid=up Capital
Reserve
,
.
LONDON
'
BRANCH:
*;■
CALLE
DE
PARIS:
COUNTY
&
WESTMINSTER
22, PLACE
BANK
Every description of British and
AND
(PARIS)
LIMITED/
VENDOME.
Sums of £10 and upwards received on deposit,
EXECUTOR
ALCALA 43.
and interest allowed thereon.
Foreign banking business transacted.
TRUSTEE
79
DUTIES
UNDER TAKEN.
BANK
HEAD OFFICE: 71,
LOMBARD STREET, LONDON, E.C. 3.
CAPITAL
SUBSCRIBED
-
-
$156,521,000
CAPITAL
PAID
-
-
25,043,360
-
.
18,000,000
(June, 1917)
705,268,005
do.
337,869,515
UP
FUND
RESERVE
DEPOSITS,
-
&c.
ADVANCES,
&c.
THIS BANK HAS NEARLY 900 OFFICES IN ENGLAND AND WALES.
AMERICAN
LLOYDS
NAVAL
and
BANK
MILITARY
FORCES.
(FRANCE)
LIMITED
offers the services of its BRANCHES at
PARIS,
BORDEAUX,
for negotiating
HAVRE,
all kinds of
WILLIAMS
.
BIARRITZ
and
NICE,
U.S. Treasury Drafts, Cheques and Bank Notes, and transacting
/
banking business.
DEACON S BANK, LTD.
FOUNDED
'
1771-1836
Members of The London Clearing House
TOTAL
ASSETS
31st
December,
1910,
MANCHESTER OFFICE
Mosley Street, Manchester
20 Birchin
(WEST END OFFICE:
and 113
BOLTON,
^27,822,940
LONDON OFFICE
BLACKBURN,
Lane, Lombard St., E. C. 3
2 Cockspur St., S. W. 1)
other Offices
including
CHESTERFIELD,
CHORLEY,
PRESTON,
ROCHDALE, ROTHERHAM, SHEFFIELD, STOCKPORT AND WIGAN.
Every description of British and Foreign Banking transacted.
Capital (fully paid) Frs. 250,000,000
HEAD
CENTRAL
19
Boulevard des
390
branches
OFFICE
Italiens, Paris
Reserve fund Frs. 175,000,000
OFFICE, LYONS
LONDON
OFFICE
40 Lombard Street, E.C. 3
.
LONDON
4
WEST
END
OFFICE
Cockspur Street. S.W.
1
in
France, Algeria and Tunis, and also at Alexandria, Barcelona, Brussels, Cairo,
Constantinople, Geneva, Jerusalem, Madrid, Moscow, Odessa, Port Said, Petrograd, San Sebastian,
Seville, Smyrna, Valencia.
Correspondents in Lisbon and Oporto: Credit Fraeno-Portugais.
Issue of Letters of Credit
payable throughout the world and of currency drafts on all coun¬
Telegraphic Transfers.
Collection of Drafts and Documents.
Approved foreign
purchased.
Collection of Shipowners' Freight Remittances and Disbursements to all
parts.
Stock orders executed on the Paris, London and other Stock Exchanges.
tries.
Mail and
bills
80
The Union of London & Smiths Bank, Ltd
OFFICE
HEAD
2
Princes Street,
London, England
tk-:
'
sterling
£25,000,000
AUTHORIZED CAPITAL
SUBSCRIBED CAPITAL.....,
.
.£22,934,100
£3,554,785
UP CAPITAL.
PAID
'
RESERVE FUND.
DEPOSITS
.........................
ACCOUNTS, 30th JUNE
& CURRENT
LINDSAY ERIC SMITH,
SIR FELIX SCHUSTER, BART.,
Governor.
Deputy Governor.
MANAGERS
GENERAL
H.H.HART
£1,150,000
1917...... .£51,527,370
L. E. THOMAS
(Town and Foreign).
(Country).
Secretary
H. R. HOARE.
The Bank has Branches
Agents in all the principal Cities and Towns in the United
or
Kingdom and Correspondents throughout the world and undertakes the Agency of Country
and Foreign Banks, whether Joint Stock or Private, issues Circular Notes and Letters of
Credit, effects purchases and sales in all British and Foreign Stocks and Shares, collects
dividends on Stocks and Shares and the half-pay of Officers, Pensions, Annuities, etc.,
and
and Trusteeships.
undertakes Executorships
Established
Sanctioned
in
by
Charter and
1836.
Royal
under
the
authority of Parliament.
BEAVERBROOIC
LORD
•
Chairman
Mi'-.
.
iWB
■
"
□
-
..
Special facilities to Americans in London. •
Every form of transacted.
Banking
head
office:
29,
gracechurch street,
;
-
e.c. 2.
eoxdon,
Subscribed'
Paid
up
Reserve
-
-
-
-
-
-
-
Fund
-
-
-
-
,
>£2,000,000
600,000
200,000
Capital
-
.'.
-
Branches:
MANCHESTER.
LIVERPOOL.
WEST
WEST
INDIES—Antigua, Barbados, Demerara,
AFRICA—Freetown (Sierra Leone), Accra
and
New
York
Port
Harcourt
Agency:
22,
81
Jamaica, Trinidad, &c.
and Seccondee (Gold
Coast), Jos, Lagos, Kano,
(Nigeria).
William Street.
'
Maitland, Coppell & Co.
52,
William Street, New York
ORDERS EXECUTED FOR ALL INVESTMENT SECURITIES.
AGENTS OF CORPORATIONS
AND
NEGOTIATE
AND
ACT AS
ISSUE
LOANS
BILLS OF EXCHANGE, TELEGRAPHIC
TRANSFERS, LETTERS OF CREDIT ON
Union of London & Smiths
Bank,
Limited,
London
Messrs. Mallet Freres & Cie., Paris
Banco Nacional de Mexico
AND
Agents
for
the
ITS
BRANCHES
BanK
of
Australasia,
TRAVELERS' LETTERS OF
AVAILABLE THROUGHOUT
THE
BROAD
CREDIT
UNITED STATES
BOISSEVAIN
24
etc.
&
CO.
STREET, NEW YORK
Members of the New York Stock
Exchange
Investment Securities
v
Commercial
Department
Foreign Exchange
Correspondents of
MESSRS. PIERSON & CO.
SUCCESSORS TO MESSRS. ADOLPH BOISSEVAIN & CO.
AMSTERDAM, HOLLAND
WILLIAM SCHALL
CARL
muller, schall
45
William Street
-
-
MULLER
& co.
New York
Members
Foreign Exchange
Commercial Credits
82
New
York Stock
Exchange
BARCLAY
COMPANY
&
LIMITED
HEAD OFFICE:
54, LOMBARD STREET, LONDON, E.C.
Nominal
£13,500,000
£12,679,440
Capital,
Capital Subscribed,
Paid
Capital,,
800
£4,594,443
Fund,
up
Reserve
£2,200,000
BRANCHES
IN
Drawing and Deposit Accounts opened at
BRITAIN
GREAT
any
of the Branches, according to the usual
custom of Bankers.
may be made through any Branch of the Bank to the credit of Customers' Ac¬
any other Branch.
Orders for the purchase or sale of Stocks, Shares, &c., executed through London Brokers.
Dividends, Pensions, and Annuities received for Customers of the Bank.
Payments
counts at
The Bank undertakes all classes of Foreign Business, including the collection of Foreign
Bills, and the remittance of moneys abroad.
Circular Notes, Circular Letters of Credit and Fixed Letters of Credit issued payable in
the principal Cities and Towns of the world.
The Bank undertakes the office of Executor and Trustee on terms, particulars of which
may^be obtained at Head Office and Branches.
FOREIGN
54,
EXCHANGE
Lombard
Street,
DEPARTMENT
London,
W.
O.
E.
C.
ASSISTANT
MANAGER
W.
Stevenson
L.
MANAGERS
Maclaren
C.
B.
Meyrick
PETROLEUM BANKING AND TRUST COMPANY, S. A.
APARTADO
(P. O. BOX) 468
TAMPICO, MEXICO
Capital Authorized
-
VW
OFFICERS
R. THOMAS
-
THOMAS W.
President
-
W
-
$100,000.00
-
DIRECTORS
R.THOMAS
-
1
Vice-President
\
THOS. W. STREETER
Hi P. GREENWOOD
-
-
-
Vice-President
<
GEO. L. CHRISTIE
F. J.
-
-
-
-
I
W.F.BUCKLEY
GEO. L. RIHL
-
-
F.BUCKLEY
1
-
\
-
-
-
-
-
4
HENRY HOUZE
STREETER
GEO. L. CHRISTIE
GEO. L. RIHL
Capital Paid-up
$1,000,000.00
-
Manager
Secretary 8b Treas.
-
-
-
MEMBERS AMERICAN
Payments and Collections made
on
BANKERS
ALTAMIRA
ASSOCIATION
all parts of Mexico, in both Mexican Gold and New York Exchange.
BANKERS
120
BROADWAY,
DOMESTIC
LONDON AGENTS
AND
NEW.
FOREIGN
YORK
SECURITIES
SPECIAL CORRESPONDENTS IN
:
PARR'S BANK, LTD.
MONTREAL
UNION OF LONDON & SMITH'S BANK, LTD.
SAN
UNION BANK OF SCOTLAND, LTD.
83
FRANCISCO
New
Main
Office
Building
Brooklyn Trust Company
Chartered
April
Member of the New York
177
1866.
14,
-
Clearing House Association
Montague Street, Brooklyn
Bedford
Branch
Manhattan Office
Fulton Street and Bedford Avenue
Wall Street
and
Broadway
TRUSTEES
FRANK
BABROTT
L.
FRANCIS
WALTER
L.
IIINE
WILLIS
ST. J. BENEDICT
GEORGE M. BOARDMAN
SAMUEL W. BOOCOCK
EDGAR M. CULLEN
WILLIAM N. DYKMAN
JOHN II. EMANUEL, JR.
DAVID
II.
LANMAN
DAVID
G.
LEGGET
WILLIAM
HENRY
HESTER
FRANK
W.
MAXWELL
MAYNARD
MUN SON
F. NOYES
OGDEN
E.
L.
HAROLD
LYMAN
HOWARD
L.
JOSEPH
ROBERT
*
I.
CLINTON
OWENS
PIEItREPONT
PRATT
L.
EDWIN
P.
J.
FRANK
C.
ROSSITER
ALEXANDER
IT.
WA LB RIDGE
WILLIS
D.
M.
WHITE
WOOD
OFFICERS
EDWIN
P.
MAYNARD, President
DAVID II. LANMAN, Vice-President
FRANK J. W. DILLER, Vice-PresidentWILLIS MCDONALD, Jr., Vice-President
FREDERICK T. ALDRIDGE, Vice-President
WILLARD P. SCIIENCK, Secretary
ADVISORY
EUGENE
EDWARD
F.
HORACE
W.
HERBERT
AUSTIN
FARRELL,
U.
W.
WILLIAM
SCHMIDT,
Branch
Secretary
Secretary
Secretary
BRANCH
McCARItOLL
EDWARD
II.
N.
Secretary
Secretary
Asst.
H. TIIIRKIELD, Asst.
FREDERICK B. LINDSAY, Asst.
FREDERIC R. CORTIS, Auditor
LYONS
EDMUND
Asst.
GILBERT
COMMITTEE—BEDFORD
BARNES
Asst.
SILLECK.
PENCHOEN.
A.
THOMPSON
MOODY
Manager
ORGANIZED 1859
The Nassau National Bank of
CAPITAL, $1,000,000.00
Brooklyn
SURPLUS (earned) $1,000,000.00
OFFICERS
G. FOSTER SMITH. President
T.
SCHENCK REMSEN
H.
P.
Vice-President
SCHOENBERNER
ANDREW J.
Cashier
RYDER
Asst. Cashier
DIRECTORS
edgar
Mcdonald,
DANIEL V.
Chairman.
FRANK
Trust Co.
HADDEN,
frank lyman,
Trustee, United States Trust Co.
george S.
DARWIN R. JAMES,
<fc
Knapp
President
ADRIAN VAN SINDEREN
W. A. & A. M. White
FRANK C. B. PAGE
Vice-President e. W. Bliss Co.
A.
ingraham,
Member of the New
Jr.,
President American Chicle Co.
Lawyer.
STS.
GEORGE M. BOARDMAN
Paterson, Boardman
EDWIN P. MAYNARD,
President Brooklyn Trust Co.
President, Brooklyn Savings Bank
COURT and JORALEMON
HEGEMAN,
G.FOSTER SMITH
Vice-President, Title Guarantee &
CROWELL
B.
Retired
BAILEY,
AUGUSTUS
HEALY,
A. Healy <fc Sons.
York
HERBERT O. HYATT
President Brass Goods Mfg. Co.
Clearing House and the Federal Reserve Bank
V
Nucva
Cabkgramas: "Turnure
York,
Calk de Wall Nos. 64—66
Lawrence Turnure & Co.
Depositos
cargo
venta
y
del Cobro
e
Industriales. Compra
Cobro de Letras,
Cable
Giros, Pagos por
y
Cupones, etc.,
Puerto
Rico,
y
Santo
y
Venta de Letras
por
cuenta agena.
Cartas de Credito, sobre la
ciudades de Cuba, tambien sobre
Mexico,
Compra
Remision de Dividendos e Intereses.
y
de Valores Publicos
de Cambio.
otras
Depositos de Valores haciendonos
Cuentas Corrientes.
Habana
y
Inglaterra, Francia, Espana,
Domingo, Centro
y
Sud America.
Corresponsales:
Habana: N. Gelats
Puerto Rico: Banco
Paris: Banque
y
Londres: The London Joint Stock Bank, Ld.
Ca.
Comercial de Puerto Rico
Francaise
pour
le Commerce et l'lndustrie y Heine y
Ca.
Goldman, Sachs & Co.
New York
60 Wall Street
Commercial Paper
Foreign Exchange
Letters of Credit
Investment Securities
60
137 So. La Salle St.
Congress St.
Boston
Chicago
85
As
Fiscal
Agents of Cities Service
Company and Operating
of
its
and
ninety odd
gas,
heating,
power,
Managers
electric light
water
and
oil
producing, transporting and refining
subsidiaries,
nish
the
we
first-hand
properties
L.
shall
be glad to fur¬
information
or
regarding
their securities.
Doherty &
60 Wall
Street, New York
INCORPORATED 1869
THE NEW ENGLAND TRUST COMPANY
135
Street,
Devonshire
Surplus and Profits Over $3,000,
Capital, $1,000,000
Executor, Administrator, Trustee,
as
Mass.
COMPANY IN BOSTON
THE OLDEST TRUST
Acts
Boston,
Guardian, Attorney
Agent
or
BANKING DEPARTMENT
TRANSFER DEPARTMENT
SAFE DEPOSIT VAULTS
LETTERS OF CREDIT
TRAVELERS' CHEQUES
OFFICERS
JAMES R. HOOPER,
ARTHUR
ALEXANDER COCHRANE,
•
Treasurer
CHARLES E. NOTT, Asst. Secretary
BOARD
Arthur
Alfred
j.
Adams
"
.
Bowditch
D. Cameron Bradlev
S. Parker
Bremer
Alexander Cochrane
George H. Davenport
^
O
FREDERICK P. FISH, Vice-President
HENRY N. MA RR, Secretary
•
ORRIN C. HART. Trust Officer
.
"
ARTHUR F. THOMAS, Asst. 1 rust Officer
ROBERT B. GAGE, Manager Safe Deposit Vaults
Vice-President
GEORGE
President
ADAMS,'1 Vice-President
FREDERICK W.'ALLEN# Treasurer
EDWARD B LADD, Asst. Treasurer
RAYMOND MERRILL, Asst.
.
OF
DIRECTORS
WIGGLESWORTH, Chairman
FranWln ^obbs
James R. Hooper
David P. Rimball
Robert A. Leeson
Francis W. Fabyan
Frederick P. Fish
Frank H. Gage
Morris Gray
Sidney Harwood
Ernest Lovering
-
Walworth Pierce
Henry H. Proctor
Edwin M. Richard.
Herbert M. Sears
Arthur R. She rj
Henry D. Shattuck
24 BROAD STREET
NEW YORK
;
v.-
:
■
'
'''vGv'
INVESTMENT
TRAVELERS'
OF
'
'
SECURITIES
LETTERS
CREDIT
88
Bankers
OF THE
(Commercial
Copyrighted in the
Vol.
NEW YORK, OCTOBER
Commercial
CHRONICLE.
Financial
and
Saturday
every
graph
and
its
the
with
morning,
from
cable
is
weekly
a
latest
correspondents
own
by
news
relating
tele¬
the
to
various matters within its scope.
The
Chronicle
Supplements,
valuable adjuncts
The
year,
comprises
issued
number
a
periodically,
added
of
which
and
form
Sections
is furnished
without
.
The
Railway
with
the
of
Inter-State
to
every
annual sub¬
is
Electric
also
Railway
furnished
without
State
furnished
without
Chronicle.
The
is
also
furnished
extra
charge
three times a year,
to
sub¬
annual
Chronicle.
Financial
and
every
extra
charge
to
subscriber
every
of
and
Quotation
Section, issued monthly,
wise furnished without extra
the
Terms
for the
Dollars
in chides
August,, equally
others are published from time to
the United
V
•;
ago
doubt since the
announcement of
January
in Europe, and Eleven and a Half Dollars in
■>- A.
A,- ''"A A' ^
the
previous
summer^
same
international law
warfare, "the time
sea
unrestricted
was not
regards
as
in
our own
the
<
■
Afi
■
A.
■
at
Federal control of industry
finance
was
necessarily the text of the speeches
City.
our
own
participation in the
considerations
which
American finance.
It
that
was
war,
and the
participation
a
new
raises
curious and in
a
year ago
assembled when the seemingly urgent
tion
that of
possible early
economic effects.
weeks
after
German
the
It was,
Kansas
Chancellor
proposal for
a peace
peace
a
ques¬
and its probable
in fact, not very many
City Convention that the
actually did make his formal
on
the first day of
Convention, in his statement that " war today is
principal business, and must become the
the nation's
business of all;" in his appeal
nothing but the
the
we even
" think
banking community to " do our duty, and not
make it
possible for
banks that
The
small,
that
needs," and in his summons
war
appeal for
was
any one to say
of American
they profited by the war."
economy
and savings, large and
repeatedly and properly a theme of dis¬
cussion.
Mr., Blackett
of
the
British
Treasury
pointed out to the Convention that " the war must
be
paid for out of
inforced
by
new
equally
savings," and this was re¬
assertion in other
positive
speeches; -Mr. Blackett, however,
that
United
the
reached
attained
Mr.
a
States
point in
war
had
in
cordially'testified
eighteen
weeks
savings which England had
only after eighteen months.
Harding of the Federal Reserve Board, pre¬
mising by the statement that our actual war expendi¬
ture
since
April
(including the advances to our
Allies) had exceeded the total expenditure of the
conference.
The German overtures failed
in
way
melancholy coincidence that the Convention of
was
The President of the
•
City should have found the paramount topic
of discussion to be the financial and economic effects
of
far
war.
during the interval,
keynote
today,
are
Convention
Bankers'
;
t
Atlantic
country's rela¬
European conflict what they,
that
so
prices, and the general condition pf the markets,
to
AMERICAN BANKERS AND WAR FINANCE
inevitable
all know
mill,
relations to the European
the national taxes, the
of
was
regarding
regard' to American Government's borrowings,
the
A complete index to the advertisements appear¬
ing in the present issue of the Bankers' Conven¬
tion, Section will be found on pages 92 and 93.
it
we
how much water has flowed under the
and debates at Atlantic
INDEX TO ADVERTISEMENTS AA
our
in
yet ripe" for an
Since then
campaign.
Association struck the
they did with
"statesman, in his
that unrestricted sub¬
31
when he made his stipulation
to observe the rules of
war
Front, Pine and Depeyster Streets, New York
as
proposals
has been subjected to
In view of what has occurred
(which
States, Thirteen Dollars
WILLIAM B. DANA COMPANY, Publishers
Assembling
own
marine warfare would be resumed, declared that
and
tions to the"
to state,
Even the
to nothing.
Chronicle, including all the Supplements, are
within
postage)
Canada.■■ >
came
negotiation ten months
the gravest
time, like the present Bankers' Convention Section.
Ten
definite terms which
Government's request of
own
.
.
,
Besides these Supplements,
is like¬
charge to every subscriber of-the
Chronicle.
up to
aims, and the Vatican's similar suggestion of
war
>
Bank
name any
Our
annual subscriber.
Section, issued' semi-annually, is also
City
and
month
filed each
expenses,
Commission,
Section, issued
scriber of the Commercial
Tiie
and
Commerce
it has refused
as
sincerity of the German Chancellor's
Section, issued monthly, containing
earnings
without extra charge to every
The
its
of
Earnings
returns
sworn
it would accept.
last
charge
time, to
The Gov¬
had failed.
source
refused,
last December for the German Government
scriber of the Chronicle.
the
the present
Section, issued three times a
extra
same
Berlin
at
ernment
or
exceedingly
of the Weekly issues.
Railway and Industrial
No. 2729
13, 1917
from the
tures
Chronicle
published in time for the earliest
newspaper of 90 to 128 pages,
mail
1917 William B. Dana Conjpany, in the office of the Librarian of Congress, Washington, D, C.
105.
THE
Tjie
year
fl?iwahcial (Chronicle.
&
as
all previous over¬
Civil War, called attention to
the service done by
BANKERS'
90
new
our
banking system.
vented any
ficient evidence of the attitude of this part of the
pre-
$2,000,000,000
loan by four
war
There is not much doubt left
American people.
financial stringency during the subscrip-
tions to the recent
million
In particular, it had
CONVENTION.
as
bearing the financial burden, when $1,110,-
to who is
the
000,000
of the estimated $2,610,000,000 war-tax
English Munitions Ministry assured the bankers
revenue
is to be derived from
that there
$600,000,000
subscribers.
separate
"
was
Mr. Brand of
question of the integrity of the
no
external debts of all the Allied nations " whose two-
thousand-million
of
or
of
more
holds.
ernment now
obligations
our
financing these Allies, which England had thus
far
borne, must
now
fall primarily
on
the shoulders
of the United States.
Yet
would
even
another side.
was
England
give much larger credits, this English speaker
declared, if it could make the goods in which the^
credits
United States which could
Lord Northcliffe
cans to
to
it
extendedbut
were
was
the Atlantic, but "go
Mr. Strong of the
Federal Reserve Bank
a
New York
positive statement of bel.ef that, while the Governdestroy industrial ef-
will be
ficiency by ill-applied taxation, the country
all the taxes required to maintain its
credit, and support all the borrowings needed for the
period of the
war,
without crippling its vital nidus1
friP'Q
the government—as
■,
■,
already doing in the personnel of the Red Cross,
conclusion
of
any
THE SPIRIT OF THE CONVENTION
Secretary Frederick E. Farnsworth, of the Ameri¬
Bankers> Association>
can
^ Association.
(>f
or
who
proceedings of the Atlantic City Con-;
vention would
unquestionably be, that the American
burden
were
placed
recognizing the
on
prepared
which
must
the nation
to
cheerfully sustained.
the
tQ
would be
poor
joint and in-
resources,
dividual, of the banking community,
at the
were
service of the Government.
These
because
facts
are
cen{ralj but it
^
number of the
a
From
internatioriaI fame.
Convention
waf
some
emphasis, not
patriotism and self-sacrifice in war-time by
grew
were
of
were
speakers
of
beginning to end it
t
-
.
Columbia
University,
aroused
intense
an
patriotic spirit by his denunciation of sedition in
the Senate of the United States,
That unusual
ceedings
that
worid
due, of
was
tbe
interest
bankers
called
are
people.
come
attached to the pror
course, to
tragedy not only
sionaries who
was
as
the important part
to
upon
play in the
financiers, but
as
speakers
Prominent
impressed
upon
the bankers that they are called upon to help" the
Government not merely by
buying Liberty Bonds
carrying to the farmers the need of greater
quarter, to picture the bankers and capitalists of the
mis-
in close contact with all kinds
tempts which have been made, in
one
•
•
Butler,
reached when Dr.
was
or
than
was
the ;nfluence of the
and
American bankers is unusual, but because of the atmore
not
was
from day to day, until at the final
session the climax
of
years ow.
city
by far the most enthusiastic
was
vital interest anfl
a
convention
the
convention
forty.two
the topics under consideration
gatheri
of
worthy of
fact
held l.v
ever
the iargest
not
was
jn ^ past
the kind hM
.
war,
The sacrifices
by rich and
The
financial
enormous
shoulders by this
it through.
see
be borne
s
It
pr0noUnced this year's
City the best
.
listened to the
bankers, while
Atlantic
at
,
who reads
one
boards, and of the
war
loan propaganda.
war
struggle
The
the financial community is
of the special administrative
hun-
supplemented all this by Ins
inent should be careful not to
the conflict
see
readiness to give personal as well as financial help
fully perform that task.
cross
spirit of determination to
through, of willingness to bear the burden, and of
only the
now
in Bridgeport, Bethlehem, and
dred other centers.
able to pay
It is the
pointed out that the American
England do not
swell wages
-
to
this there
to
The
showed in what
kind of spirit this heavy burden is being shouldered,
Gov-
But he added that the burden
Convention proceedings
Bankers'
profits and
excess
the/income tax.
from
more
inducing their customers
so
to
invest, but by
crops
;and to all the people the necessity of conservation
country as people who first deliberately plunged the
of the
country into war for their own selfish profit, and
and of
then resisted every
there may be an abundance of food, clothing, guns
policy which would make them
share in the expense of it.
This
the circulars sent out when the
was
war
expressed in
financing first
in Congress-—proposing that the Govern-
came
up
ment
confiscate
sum,
and adding, not perhaps in the vein of the
outright all incomes above
certain
a
highest patriotism, that the advantage of such
is that it " will cost most of those who
the
war
same
today
a pretty
big
sum
are
a
plan
backing
of money."
The
conception has reappeared in the speeches of
Senator
of
vocates
The
La
Follette
and
other
confiscatory taxes
course
of tax
on
Congressional adthe rich.
of self-denial, of foregoing pleasures
crops,
an
abandonment of extravagance, so that
and munitions for the
men
whom the Government
has called to fight its battles..
all of this advice
seed
the
sown
of
reputation
whenever
The spirit in which
received indicated that the
had fallen upon fertile ground and that
bankers
their
was
United
the
for
States
upholding
it is assailed
Government
by treason within
or
by
foe without.
Trade is
as
jealous
as a
suspicious
woman.
Rep-
resentatives of Great Britain told how in England
don the
use
of automobiles for pleasure and how
by the banking community of income supertaxes
one
running
up
to 63 per cent, and
plies of gasoline to ten gallons
running
up
to 60 per cent.i, has given
the
maintain
they had used posters to induce citizens to aban-
legislation, and the acceptance
war
will
profits taxes
fairly suf-
result of the campaign had been to limit
single
owner
of
an
automobile.
per
month
sup-
to
a
These and simi-
BANKERS'
lar
because they had aroused
posters,
tradesmen and manufacturers,
among
CONVENTION.
animosity
called
were
91
sorbing securities in which past savings
vested.
For the
in-
are
good of all, therefore, it
was
"
crime
in
posters."
But it
United
the
States
stated that there
was
are
automobiles
as
4.000,000
urged that the
owners
of well-seasoned investments
retain such securities, but at the
themselves to put
Surely there is opportunity here for self-denial if
disposal of the Government which
to
it be not
urge
" crime."
a
parts of the country, the South
City from all
being particularly
represented and the Southern bankers being
ever
of
time, either in the meetings of the
one
discordant note whenever the
Government in
ing the
discussion.
under
<
It
every
may
assembled in the
more
ardently
patriotic body
possible
United
of
Discussions
relative
new
a
wage
the
war
savings
are
order
to
Bonds
cause
to
raise
would
part
funds
tend
to
ous wars
financial disturbances.
should
come
and increased
by the exercise of
denial, coupled with taxation,
the Federal
In
savings and securities
in
wages
longer
ac-
and salaries
economy
may
and
savings,
new
in
Liberty
values
and self-
be able to meet
were
a
Lord Northcliffe pronounced
series of
founded
wars,
to
utilize past
gathered by the Gov-
States has entered the
But
war
now
there
rich neutral country capable of ab-
a
settlement of
one
upon
dif-
of the
more
matters was a discussion concerning a
of State banking laws.
inconsistent that
in
some
numer-
interesting development which received
little attention in the great crush of
a rate
It
was
important
uniformity
urged that it
of interest above 6
was
per cent,
States should be usurious, while in others
there might be
no
limit to the legal rate.
The lia-
bility of stockholders in banks differs in the several
States.
it
one
in
Laws prescribing
comes to
reserves vary,
the collection of
a
debt
a
and when
banker in
section of the country who has loaned
some
recover
necessary
by force and marketed here.
that the United
no
Past
requirements.
England it became
ernment
from
investments
market
But
a
would not terminate the others.
One very
Government
reinvestment
unsettle
quired out of current income,
is
of
with such
for
struggle
and he stated that
already invested in securities and other
and
the
held out that the conflict might
was
to an end.
the
savings rather than from past savings.
property,
No hope
soon come
ferent motives and animosities of long standing,
predominating sentiment that the
required to
the greatest trial since
prove
its organization.
convention
sales
to
interest in the welfare of the nation
the
.
bonds revealed
the
than
present year.
money
a
The bankers of
before, and they feel the unifying influence
a common
in what is likely to
was
States
men
in annual
gathered
there
subject of aid-
way
could be
who
was
well be doubted that
there
bankers
numerous
in the general Convention
or
be spared,
whole country have been drawn closer together than
At
sections,
can
tion of the American Bankers' Association will be
productive of much good.
conspicuous for their activity in the proceedings,
no
dollar of income at the
every
Unquestionably the forty-third annual Conven-
The bankers assembled at Atlantic
well
time exert
same
against about 800,000 in all the rest of the world,
other section
on
may
account of exemption laws which de-
feat his claims.
The argument touched the ten-
der spot of State rights, and bankers from
ber of States in the South
the
money
find it most difficult to
old doctrine and to
were
a num-
quick to defend
insist that the points
ferred to should be subject to local regulation.
re-
Index
advertisements
to
Page.
Page.
ACapital & Counties
Page.
78
„
• •
82
Fort
35
Co
&
PlERSON
Estabrook
Holland.
Amsterdam,
Gobrell
Atlantic
Co.
Bank
Union
National
.......216
Weeks
(Jas. D.)
Leach
(A. B.) & Co., Inc.
45
Logan
&
Lybrand,
.......
Ross
Bros.
&
14
London
City
....
43
Safe Deposit & Trust Co
Merrill, Cox & Co.
56
46
Md...
of
Powell, Garard & Co.
Read
&
Limited
,
Birmingham, Ala.
Birmingham Trust & Savings
National Bank
50
57
Souders
Co. 49
National Bank...
First
10
...
Staats
49
Stone
Mass.
Boston,
Bros.
Bond
16
& Co.
Boston Safe Deposit & Trust
Chandler & Co.,
Curtis &
......
•
Co.*.
gomery'
Stone
(Wm. A.) & Co............
43
Souders
Union
Union
.
Bank.
Trust
......
Trust
59
.216
.........
i
County
Trust
Co........
..........
National Bank.
Grand
Michigan
14
Burr
36
&
Trust.
.
.
.
Co.
............
49
71
52
37
ing
&
Corporation.
..............
Commercial Trust Co.
First
of
N. J..
.
National Bank
22
City, Mo.
25
Co
56
(John) & Co....
.....
Co
24
Bank
.
Southwest
National
BaNk
Molsons
Securities
Bank
Bank
Bank
of
..
Corp.
(The)
of
.....
Canada
25
16
14
68
70
..........
Canada
...,....
70
67
Morristown, N. J.
Mobbistown Trust Co.
60
Anglo-South
American
Brown, Shipley & Co.
Canadian
Bank
of
of
New
York'City.
Exchange
.
•
National
.......................,
(A. E.)
Andrews
&
& Co..
.......
Co
National
77
...
Commerce.
..
Bankers Trust
83
..
Bank
2
66
Bank
of
of
Barney-
27
71
54
American
Bank...
Babcock, Rushton & Co.
Wales
55
Bank
Newj Orleans
71
New South
38
Orleans, La.
Atlantic
of
34
.......
75
British North America.
Co., Ltd..
Castle, Pa.
Bank...
of
&
36
...
Nation A
Anglo-South
Bank
Barclay
New
Ames
London, England.
,
New
Bank
of
Bank
29
Inside Back Cover
.
Dominion
American
Burnham
.
....
Montreal, Canada.
23
Bond & Goodwin.
Co.
...............
British North America. 71
of
49
commerce and commerce trust
&
66
58
(A. B.) & Co., Inc
Commercial
55
counselman
..
& Co
Guilds, Kay & Woods
56
Curtis & Sanger
Commerce.
Lane, Piper & Jaffray, Inc..
74
Jersey City, N. J.
48
& Co., Inc ......
National
SO
.
Fidelity Trust Co.............. .212
Bank¬
54
Exchange
.
Minneapolis, Minn.
China.
Shanghai
Becker
Corn
.
Newark, N. J.
48
Co.
(WM. R.)
of
Goodwin.
24
Babcock, Rushton & Co......
Compton
48
City, Mexico.
Bank
Merchants
First National Bank...........
.
(Geo. H.) & Co
-
(W. G.)
V
.
Co................
Kansas
Burr
.
Milwaukee, Wise.
Souders
Bank
(Geo. H.) & Co.
Hongkong
Chicago, 111.
(A. G.)
Canadian
73
Hamilton National Bank
&
Mexico
38
Rapids, Mich.
Trust
Estabrook
Chattanooga, Tenn.,
Andrews
Lyonnais
Erie, Pa.
Fort Worth
Trust Co.
Lyons, France
59
Co..
37
Bank.
Louisville, Ky.
Hartford, Conn.
Co
National
R.)
58
Houston, Texas.
First
65
64
54
& Co..........
Hongkong,
Central
76
Co...........
Royal
Egypt.
Safe Deposit &
81
Companies.215
Angeles, Cal.
(Wm.
Bond Co., Inc. 58
Guilds, Kay & Woods.
Camden, N. J.
Camden
78
64
Leach
Cairo, Egypt-.
of
.
(The)
1
84
(A. B.) & Co., Inc........
National Bank
Los
Credit
Mich.
Co
(W. G.)
Buffalo, N. Y.
Leach
G.)
77
Citizens National Bank........
First National Bank.
Bond &
21
Nassau National Bank
J.
1
67
Smiths
Wood, Gundy & Co
59
Elizabeth, N. J.
84
Co
Trust
Franklin
&
Fort Worth, Texas.
Co......
Trust
&
Fidelity & Columbia
87
Brooklyn, N. Y.
Brooklyn
Co
Hornblower & Weeks.
.214
Webster
&
24
Moines, Iowa
Savings
Dime
52
& Burr.
Parkinson
Read
........
Trust
Detroit,
50
Co.
.......
..........1.........
(The
62
Andrews
53
New England Trust
White
.
.
...............
London
of
..
S. Afric a, Ltd.
of
Corp
.
62,
Hanchett
Bank
Union
..
Canada.
of
Bank
.
Staats
& Co.....
Des Moines National Bank.....
14
......................
Union
Bank
54
II.)
Des
Mont¬
Merrill, Oldham .& Co
National
76
& Co...
Ohio.
International
52
&
34
Boettciieb, Porter & Co.........
53
Bros.
IIoss
Lybrand,
..........
Denver, Col.
24
...
(A. B.) & Co., Inc. .x
Leach
(Geo.
52
Co........
Trust
Dominick
29
South Africa,
..........
Burr
216
Weeks......
International
Royal
73
Zealand,
.....
(Wm. A.)
Bank, Ltd.
.........
Andrews & Co
'58
(The)..
& Co., Inc.
Hotchkin
&
Co.
Cleveland,
85
Hathaway, Smith, Folds & Co..
Hornblower &
(Wm. R.)
Dominick
13
Estabrook & Co
Companies. .215
79
72
Swiss
(The J. G.)
........
New
of
Standard Bank
Compton
64
Hanchett Bond Co.
Ltd.
Bead
Egypt
of
(The)
IS
24
Sanger
Goldman, Sachs &
Ltd.
57
Cincinnati, Ohio.
Co. 51
v .........
Inc
....214
Leland
White
2
Co...
(Geo. II.)
58
64
Co
Webster.....
&
25
Brown Bros. & Co
Burr
(W. G.) & Co
( Wm. It.)
Bank,
Westmins¬
and
of
National Bank
Taylor, Dodge & Ross..........
Goodwin
&
& Co
Ware
50
Baker, Ay-ling & Young
Blake
O.)
(A.
68
80
Outside Back Cover.
Russell, Brewster & Co..
78
Swiss Bank Corporation...
......
79
Co., Inc
(W. T.)
SO
..........
Bank
ter
75
Morgan, Gbenfell & Co.
National Bank
Rickards
Switzerland
Basle,
Corp.
Midland
County
1
(Wm. A.) & Co..
.........
..................
Slaughter
Trust Co. of Maryland.
Union
.
Limited
57
46
3
.
Securities
Dominion
London
......
(Williams) Bank. Ltd. 80
Bank,
Mont¬
.
Aus¬
81
Lyonnais.
Lloyds
20
Bryan.
India,
of
China.
58
Co
Timber
gomery
4G
Co
Trust
Maryland
&
Lacey
14
.............
(A. B.) & Co., Inc.
Leach
Credit
Bank, Ltd.
Bank
Deacon's
35
Bank
&
tralia
Colonial
29
.....
52
Co.
Trust
Fidelity
57
& Co...
24
Hornblower
Co..........
Trust
&
Estabkook
85
Sachs & Co
(Warren)
Chartered
IIodenpyl, Hardy & Co
22
Baltimore, Md.
Continental
National Bank.. 55
Hathaway, Smith, Folds & Co..
City, N. J.
Safe Deposit & Trust.
Atlantic
66
Co
Dearborn
Goldman,
Atlanta, Ga.
National Bank
Fourth
&
Bank»
Co
30
55
4
British North America.
Manhattan
75
71
Co........ 33
(Ciias. D.) & Co..
21
INDEX TO ADVEKTISEMENTS—Continued
Page.
Page.
Bert ron,
Griscom & Co....
BickMore
Blair
&
Blake
Bros.
&
&
25
2
00
Walbridge
13
Ware &
75
Wood, Gundy & Co..
Inc
India,
of
National
.'
Bank
Exchange
Bank
Clark, Dodge & Co..........'
National
Iron
Colonial
20
.12
Compton
Corn
.213
Bank
Curtis & Sanger..
Doherty
&
Duquesne
&
Fidelity
Goldman.
Sachs
Grace
(W. II.)
Co......;...
&
Barney
Bertron,
Griscom & Co.........
& Co
Bond
Brown
&
Burr
25
IIodenpyl, Hardy & Co..........
29
Drexel & Co
...216
Hotchkin & Co.,
&
Ervin
Trust
Burr
First
28
Fourth
30
Franklin
Goodwin
( Geo. II.)
Kidder
(A. M )
& Co..
Knautit. Nachod & Kuhne.
Lacey
(Jas.
Leach
(A.
D.)
.....
Timber Co.....
58
National Bank........
64
National
42
Lincoln
Trust
Logan
Bryan
Girard
&
Market & Fulton Nat. Bank
17
Turner
(Emerson)
&
Co.....
19
Mechanics & Metals Natl. Bank
10
Megargel
18
(R.
C.)
& Co.
(A. B.) & Co., Inc.-.
&
Trust
Merchants' Bank
Metropolitan
Moore.
(J.
Canada.
of
Seattle, Wash.
Pennsylvania
&
...
i70
20
Lynch
...(38
P.) & Co........... J
on
j
Sciiall
Mutual
Bank
National
&
Co
......82
New
Bank
City
So.
of
Africa.
Company
Netiierland
York
Parkinson
Read
Russell.
Seaboard
Securities
Smith
of
52
1
Canada
Trust
National
(F.
S.)
.....
Co...
07
50
Co
22
Bank/.
19
Corporation
& Co
11
7
& Co
(Edward B.)
Smithers
Speyer
Co.....
Brewster &
Scandinavian
2.1
...
Burr.
(Wm, A.)
Royal Bank
Bank
15
Ins. & Trust Co.
Trust
&
24
Timber Co
of
58
Commerce 62
Springfield, Mass.
.
•
43
bJLnic
.......
Bank
52
Banking
...........
50
Trust
and
Co., S. A.
S3
•
Toronto, Canada.
1
Ames
(A. E.) & Co
40
Bank
of
71
Toronto
69
13
Canadian Bank
34
General.
50
Co.
Tampico, Mexico
Petroleum
Front Cover
....
&
Springfield National Bank
43
Insur¬
(Edward B.) & Co
National
60
Co..
Baker, Ayling & Young..
Dominion Securities Co.
41
Imperial
42
Wood.
of
Bank
of
Commerce
........
66
68
Canada..... 68
Gundy & Co
Pittsburgh, Pa.
70
New York Life
New
Union
D.)
24
..
70
31
Ltd,
National
For
Trust Co.
Third National
Muller.
Co.
Securities Corporation
Outside Back Cover
(Jas.
Estabrook
.
(Wm. A.) & Co............
Smith
Lacey
44
Lives, &c
Real Estate
Commerce.
of
The National Bank
14
.
Co
Inside
Read
Bank
Hathaway, Smith, Folds &
Mont¬
Market Street National Bank.
Morris Brothers
.215
(Geo. II.) & Co............
24
;..
20
Co.
Co
Trust
Leonard
Morgan
Deposit
&
gomery
ances
Mercantile
Bros.
Ross
.
44
IIarper
Lybrand,
McMillin
42
Hathaway, Smith, Folds & Co..
82
..........
..
Goodwin ...25
Canadian
213
32
33
Crane.
Burr
Inside Front Cover
.
20
Co
Maitland, Coppell & Co
&
Bank!
National
00
..
'
Bond &
Bank ......213
Fuqua (W. F.) & Co............
Leach
Ludwig
Bank.
Co.
(The J. G.) Companies.
43
National
Commerce.
of
(Wm. It.)
White
41
Girard Trust Co.
24
24
Bank. ......./..
14
Lincoln
&
Street
& Co......
Staats
Co
31
& Co., Inc
B.)
National
71
25
Hathaway, Smith, Folds & Co..
44
Fidelity Trust
Francisco, Cal.
41
Co.
32
...............
61
Canadian Bank
Outside Back Cover
52
Inc
Co.
...
British North America.
of
Bond &
,
Hudson
Commerce,
of
13
Inc
Corn Exchange National Bank.
Weeks
16
03
Bank
2
24
&
14
Co
San
& Co........... 24
(Geo. II.)
Chandler & Co.,
24
& Co....
63
44
& Co
19
.
First National Bank. .1
21
Goodwin.
Brothers
29
Northwestern Trust Co.
0
..
Co
St. Paul, Minn.
21
(Chas. D.) & Co
IIatiiaway, Smith, Folds & Co..
Hornblower
(A. B.)
National Bank
Bodine, Sons & Co.....
85
(William R.)
54
Bioren
...........210
& Co.
Leach
30
Co.
47
Mo.
Hathaway, Smith. Folds & Co.
Philadelphia, Pa.
&
Louis,
(Geo. II.) & Co............ 24
McCluney &
Andrews
47
Francis, Bro. & Co.
30
......
21
Co...
Burr
64
Bank
33
Tarbell
Trust
National
32
Co.
St.
Paterson, N. J.
Paterson
<
Richmond Trust & Savings Co...
Compton
First National Bank/
53
National Bank
.
Co............
(Wm. R.)
216
Richmond, Va.
First
80
28
& Co............
Franklin
Staats
76
Trust Co.
48
Outside Back Cover
35
....
Union
Pasadena, Cal.
52
Corporation
Trust
&
34
Commerce...
South
of
Hornblower & Weeks
7J)
Morgan, IIarjes & Co
80
..........
Co...
(J. S.)
Finch
& Co
Dominick
Bond
Estabrook
Farlee
34
(IIenry L.)
Dominion
of
Bank
Ltd
Providence, R. I
Companies..215
Bank
Lloyds
29
Co..,.,
(Wm. R.)
Exchange
23
Africa,
Paris, France
81
Columbia Trust Co....
29
National
Norfolk, Va.
30
Bank....
Bank
& Co
The
57
Bank
66
i..... 44
...
Pretoria, So. Africa.
25
(The J. G.)
National
24
Commerce
of
Brothers, Inc.
27
Leland.
24
...
Morris
Co
Trust
(H. D.)
1
Chemical National, Bank
Coal &
States
White
Aus¬
China
32
(Geo. H.) & Co.
9
24
Co.,
Canadian Bank
Co...
Commerce...
of
Chatham & PheNix Natl. Bank. 33
Chelsea
Trust
Union
United
& Co
Bank
&
tralia
Co
United States Mtge. & Trust Co.
Bank
Chartered
Union Exchange National Bank
Burr
85
(Lawrence) & Co
216
Portland, Ore.
31
Co
Trust
& Co............
(Geo. H.)
Chandler &
Turnure
Hornblower & Weeks
S3
& Co
56
(John)
Canadian
Transatlantic
82
..
Brothers
Chase
10
Co....
Portland, Me.
..214
Webster
Stone
Sutro Brothers
&
Page.
77
Ltd..
17
Co..........
Goodwin
Brown
Burr
&
&
Burnham
S. Africa,
Bank
Standard
SS
& Co
(A. H.)
Co
Boissevain
Bond
0
93
General.
& Co
& Co
13
34
20
8
Andrews &
Trenton, N. J*
54
Co
National
The Mechanics
Childs„ Kay & Woods.
/
.
(Wm, R.) Co
Compton
Duquesne
Bond
38
29
35
Corp
Bank.
37
Utica, N. Y.
.
Utica Trust
Deposit Co
and
28
39
Glover & MacGregor
Washington, D. C.
Hathaway, Smith, Folds & Co..
24
Commercial
Lybrand,
Ross
Bros.
&
43
gomery
Masten
Mellon
(A. E.) & Co............
38
Moore, Leonard & Lynch
.....
39
Gilpin &
Co.,...
47
47
Wheeling, W. Va.
Masten
(A. E.)
& Co....
38
Winnipeg, Canada.
Union Bank of Canada.
.........
69
5
Union Trust Co
Yokohama, Japan
Plainfield, N. J.
Plainfield Trust Co.
Crane.
38
39
National Bank
Peoples National Bank
National Bank.....
Mont¬
....
37
Yokohama Specie
Bank, Ltd
74
43d Annual Convention, Held at Atlantic City, N,
Loan, W. G» McAdoo
Second Liberty
War Finance and Reserve System,
-
How Long,
A
-
Report of Secretary
Report oi Treasurer
-
Report of Protective Department
Page 106
Report of Contract and Purchasing Department
-
Page 127
-
Page 110
Report of Committee
Page 112
Page 113
Report of National Bank Section
Page 118
Report of State Secretaries Section
Page 121
Page 122
Page 123
Page 123
Report of American Institute of Banking Section
-
-
•
-
-
-
-
-
Page 125
Page 105
-
-
Report of General Counsel
-
•
Report of Committee on Federal Legislation
Second
Insurance
on
Report of State Bank Section
-
-
-
Page 128
-
-
-
Page 128
-
-
-
-
-
Page 129
-
Report of Liberty Loan Committee
Report of Executive Council
Detailed
Page 129
-
-
the
of
Gentlemen
American
great pleasure to
and
association
to
express
Bankers'
-
to
Association,
in person
you
my
-
-
Page 129
Page 130
•
Page 132
-
The
Liberty Loan
it
the members of this
meet
Page 129
-
-
Report of Proceedings
Page 127
-
By William G. McAdoo, Secretary of the U. S. Treasury
gives me
Page 125
-
-
-
-
-
Report of Committee of Twenty-five
-
-
-
...
-
State Legislation
on
-
Why We Must Fight On, N. D. Hillis
Annual
Report of Committee
Report of Agricultural Commission
Page 101
-
-
Changing World, N. M. Butler
PROCEEDINGS
-
,
G. M. Reynolds
Lord Northcliffe
94 '
Page
-
Benj. Strong
Civic Soldiers in War, Carl Vrooman
Business in War Times,
CONVENTION
TO
INDEX
J., September 27 and 28, 1917
deep
possible.
*
There are some noisy
agitators and disloyal
writers in this country who have persistently endeavored
to confuse the issue and to carry
on
seditious and
a
appreciation of the patriotic and cordial support the
subtle propaganda for the purpose of producing discon-
States have given to the Govern-
tent among the people and of giving aid and ecourage-
bankers of the United
ment in the
important financial operations in which the
They deserve high
European war.
for
the notable services
i ributions
could
be
their
they rendered and for the con-
creditable
more
the
to
American
for
The credit
has
have always been
have
obligations
bulwark
of
fulfilled.'
financial
Finance is
structure
nation
serve
its
upon
financial
defense
of
the
the
country
and
to
is
make
'
war.
all
In
of
the great
imperiled.
the
con-
national
financial operations in which the
which it must engage in the future,
the Amer-
banker must, because of his knowledge/ experience,
ican
ability, and influence, become the first line of defense and
offense.
To
doubt.
the
thorough
the
relieves
ment
come
His
a
you,
great
cooperation
task,
however
with
the
responsibility of
April 6, 1917.
probably
Much of this same propaganda has
carried
been
forward
America
since
a
German ambassador, before he
was
dismissed.
and certain disloyal elements in the United
has
been
expended
disclosures
recent
for
by
this
how active were Germany's own
in this country.
to
is
stupendous,
representatives while
determine
to
disloyalty of all these efforts,
stamp
them
relentlessly
out
walls than by the enemies without,
It has
been
repeatedly
stated -that
America
restated
as
entered
this war to make liberty and democracy secure throughout the
world.
While that is true, it must always be
immediate reason.
any
solve its
successfully, and the opportu-
should be
and
at no time be imperiled more by the traitors within our
of
great opportunity—
helping the Government
Germany
of the
indicate
remembered that America entered the, war for
perhaps important that the reasons why we are
with
some
It
It is well for the American people to
realize the hypocrisy and
and
but
form.
Department
Noble and idealistic
as
often
as /
a
pionship of universal democracy, she entered the
sions of
Germany,
rights within our
the
own
wanton
disregard
borders as well
the
contemptuous
violation
of
more
is her cham-
primarily because of the persistent insults and
of
as upon
and the ruthless destruction of American
war
States the
modified
purpose,
State
the
a
effective at this time.
It
With that
and with money provided by German sympathizers
money
seas,
at
entered
the war by German .money left in the United States for
nity to serve your country in ways peculiarly useful and
•
the
European war, August, 1914, until America entered the
war,
Govern-
the patriotic bankers of America, has
responsibility and
huge financial problems
by
German Government directly, from the outbreak, of the
remorselessly, because the interests of the Nation must
V
Government has been engaged in the past, and in all of
those in
A large part
financed
would be difficult to ascertain exactly how much money
credit impregnable and sufficient for all the purposes of
the
undoubtedly
was
Nation's
the outbreak of hostilities is to
resources
propaganda
propaganda has continued, but in
fundamental to war that the first duty of
so
every
of
of this
national
The
If that credit be impaired, the whole economic
rights.
and
first
the
is
its
inviolate;
honorably
ment to the enemies of the United States.
that purpose by Von Bernstorff, the adroit and malevolent
Government throughout its
scrupulously observed ; its engagements
always, been
credit
Federal
maintained
been
people than
"
mercy.
of the
Nothing
providing this monu-
extraordinary generosity in
history
commendation also ;
they made to the Red Gross war fund.
mental fund
•.
the outbreak of the
engaged since
has been
Treasury
war
aggres-
American
the high
international
law
life and prop-
erty.
Before this
war
broke out, every civilized nation ac-
BANKING
cepted and honored the rule that in
chant
by
vessel, neutral
an
crew
observed law
upon
first made safe.
were
war
Under this
French
or
merchant
vessel
war
taken
from the
warfare
has
until
the
and
passengers
crew
ship and their safety secured,
always"
respected
the
lives
travel.
law,
If
regiment should capture
lost,
traveling to his post.
under
the
repeated
1916,
7,
United
of
except
the
would
that
not
in accordance
international
law,
with
and
the
"only
and
children, killing
the German Government said to
wounding others, the whole world would
great number of them, crippling
with
had been accorded
Germany
limited
has
her
standing friendship
a
ing of the Lusitania, which caused
and
children, because on
women,
States,
wounded
are
.who
many
The
bullets may
the rule of the
reason
enforced
hit by
not
are
by
unarmed
without
ship
nation is
giving
to
they
escape,
thrown
are
rigidly
the
must
the
or
There is
perish.
uninjured
to
chance
no
The
escape.
for
water
the
warfare
States,
them
all
and
obliterates
to
What, therefore, would be
''without
sea
injuring
promptly
inexcusable
and
proportions
when
it
Is
it
is
still
by
merce
the
proceeded
numerous
number
of
notified
of
American
the
of
international
humanity,
committed
the
on
noncombatant men,
and iu
of all
high
She has destroyed
States
law
ruthless
and
been
of
German
wantonly disregarded.
that
Americans
should
right to sail
sail
them
on
ships
under
or
have
because
there
flag
an
tion for American business men,
to
answer
sailed
rightful
pursuits
were
entitled
cepted
to
were
On
1 he
go
under
protection
vessel
will
not
be
promise
by
six
weeks
three American
steamship
were
lost.
universally
of
On
ac¬
civiliza¬
.
the United
Imperial German
notified
has
Commander
Scarcely had
Italian
and
Schneider
gave
the
without
liners do
not
On
October 15,
Arabic
The
was
German
sunk
Gov¬
seven
regrets and
'
British
American
was
lives
sunk
in
violation
of
.'10
gross
the
violation of
international
British
liner
these
Persia
United
with
the
4th
of
naval
officers
the
on
orders
new
" iii
definite
gave
had been
wijtii
accordance
vessels
recognized
by
international
the
One American
and crew.
Cabosha
steamer
on
and
sunk
was
killed
20,
1916,
October
on
the British
steamer
killed
were
Marina,
the Brit¬
on
31,
1917,
German Government
the
gave
will
meet
in
zone
Germany
to
zone
a
Mediterranean,
England,
will
from
all
and
Great
Britain,
German
view
France,
the
this
of
of
note
sistent
with
then
iu
the
from
within
that
States
United
February
on
relations
3, three
with
the
Government in the following statement:
ment's
it
and
AIT ships met
etc.
sunk.
be
intimation
course
by forcibly
Italy,
that of neutrals included,
navigation,
to
her enemies
France,
afterwards, severed diplomatic
days
prior
Illegal measures of
the
around
declaration
the solemn
May 4,
the
withdraws
given
and
honor of
the
which it explicitly announced
would
take in
and
employed
to
suddenly
in
the event
that the
which
the
United
and
without
Imperial
the
this Government has
1916,
dignity
which
assurance
Govern¬
no
alternative
States
but
to
in its note of April 18,
con¬
take
1916,
Imperial Government did not
methods of submarine warfare
Imperial
Government
now
proposes
On the 29th
All
and
diplomatic
German
the
American
relations
Empire
ambassador
at
between
were
Berlin
the
United
States
thereupon
was
severed,
the
immediately with¬
William P. Frye
drawn, and the German ambassador, Von Bernstorff, was
law.
given his passports.
Following
American vessels
promises, and
was
the
again to resort.
destroyed.
that, attacks were made upon several
in
act
torpedoed without warning,
of November, 1915, the American vessel
was
the
accordingly.
were
of
relations
thereafter,
1916, 17 Americans
January
preventing
that
disavows
this assurance been received before the
steamer Ancona
an
■
Whereupon
warning and
that
States:
Government
diplomatic
Government,
declare and effect an abandonment of the
The
effect
this notice, to take effect the following day:
the
ernment said to
of
the
steamship Russia, December 14, 1916.
-
the
lives
Unless
and
Government
the
sever
this Government that
merchant
October 28,
ish
were
and
promptly violated.
thereafter,
to
weeks
two
8 Americans were killed
and
of passengers and
sunk, by submarines without
and
declare
>.
the
on
errands.
1, 1915, the German Government
was
immediately
vessels,
but
German
the
lives of passengers
transporta¬
In
This
dictates
pursue.
warning and without securing the safety of the
to escape or offer resistance.
try
now
can
without
foreign flags and
provided
choice
German
to
of
eastern
safety of the lives of noneombatants,
should
it
course
Again, and in spite of these repeated assurances,
following assurance to the United States:
Liners
one
Government proceeded to sink merchant vessels
first assured.
September
indisputable
general principles of visit and search in the destruc¬
tion
American consular and
the safety
and
recognized
German
law and the mandates
until
sacred
to
furnish
accorded
but
is
about
1916,
law."
They had
their legitimate
upon
the
say
humanity, viz., that the ships would not be sunk
enemy
an
crew
the
international
tion and
by
to
forced to sail
the
universally
to
com¬
Govern¬
the
altogether.
assurance to
merchant
on
diplomatic officers, and others engaged in peaceful
They
consider
the
what
to
enough merchant
not
to
and
carrying
no
Whereupon
huyp
seas
and were compelled
were
American
high
the French flag.
those vessels,
on
the
It is not
not
ships bearing the British
a
the
upon
must
law
Government
against vessels of
regard
present methods of submarine warfare against pas¬
freight
Empire
issued
Americans
its
of
have
can
May,
fashion, in defiance
manity and civilization.
rights
without
warning, killing
accepted rule of hu¬
every
States
there
that
and
senger
mer¬
and children without mercy
women,
international
without
seas
the most brutal and
The
United
Government
German
vessels
Government
the Government of the United States is at last forced to the
conclusion
what Germany has done consistently
war.
citizens,
Whereupon the
German
the
the.. Imperial
submarines,
of
abandonment
since the outbreak of the
dis¬
to
ships with¬
1910, two months thereafter, that—
purpose
of
use
rules
Imperial
Yet this is exactly
chant
the
ment
the high seas.
upon
the
not
was
subjects.
sinking
a
Government
the 18th of April,
If
en¬
trace."
a
the killing of noneombatants on land is a crime of colos¬
sal
long¬
and
crime of the first order in
a
her
*
by the sink¬
which
enemy
a
wounded
remorseless
life
and
16, 1910,
of
because
neutrals,
confined
prosecute relentless and indiscriminate warfare
gulfs
because
and
and imperiling the lives of many more.
on
all
principles
passengers
On February
affected
be
these assurances,
warning,
out
&nk
if you
noneombatants
into
in
ves¬
the death of citizens of the United
"Government
German
American
chance
retaliation
merchant
escape.
been
that
the
The
the .United
retaliation should
as
regard
has always
sea
civilized
every
actually
German
the
intention,
be rescued, taken to the hospitals and saved, while
may
an
men,
those who
with
again
the United States—
submarine
sink
land
the
submarines
general
after
safety."
horror; and yet this would be far less inhuman than to
containing noncombatant
of
Government
German
sink enemy
and
sea
be¬
vessel
assurances
German
States
crews
ship at
This Ameri¬
the British
on
lire upon a crowd of unarmed and helpless men, women,
gasp
passengers
them being
entitled to protection under international
Mediterranean
sels,
city, and, while marching through the streets, should
a
300
among
American vessel upon which he could
no
as
On .January
French town
a
than
more
were
obliged to sail
was
well
assured the
noncom-
the
German
a
crew
German Government.
were
batants.
of
the
consul
was
He
as
warning and
of
was
there
muse
Civilized
of
consul
can
Ger¬
a
members
xVmerican
an
long-
95
without
ranean
and
ship with the full
knowledge that that ship would not be sunk by
man
mer¬
a
American citizen had the right to travel
an
British
a
time of
belligerent, should not be sunk
vessel unless the lives of the passen¬
enemy war
and
gers
or
SECTION.
in
on
the
December
Mediter¬
Between
months,
1
February
American
3
and
was
April
killed
1,
on
1917,
the
ship Eavston, 10 Americans were killed
almost
British
on
two
steam¬
the British
CONVENTION.
BANKERS'
96
1 American was killed on the British
steamer Veil a more,
to
threat,
the
out
carry
there was
nothing
left
for
steamship Torino, 1 American was killed on the French
America to do but to fight or else submit to this tyran-
8 Americans were killed on the British
nical and monstrous edict of the German military despot
steamer Athas,
We chose to fight—and why?
steamship Laconia, 1 American was killed on the Nor-
American
the
killed
American
the
on
Crispin.
but
nation, however powerful, to order American vessels and
American citizens to keep off the high seas and prevent
America from selling her surplus products of the farm,
submarines in these two months,
the factory, and the mine to other nations of the world,
Americans,
no
the Vigilancia,
five on
except
were
if
killed.
by
the
into
Yarrow dale was cap-
the British steamer
citizens were taken
American
and 72
war,
of
American
abused and subsequently
The
crowning
They
rights.
ing to
and
maltreated
in occurrence—was the
men,
and
and
If
life and each
as
blow
to
nation,
a
ful precedent.
during
foreign nation in
any
this
the
are
nations of the earth, and
fate-
a
In a future war some other nation might
of the high seas, and we would be
of having yielded in the first instance.
act of war upon the American people,
Germany
war
States
and American commerce should be ordered off of
zens
these
destroyed
it
conclude that American vessels carrying American citi-
every
American ' vessel
their
but
obliged to submit or to fight under all the disadvantages
and
two years was an
would
if we had submitted, we would have established
May 7, 1915,
on
114 American citizens—
by
mortal
a
standing
property, of all the
some other portion
American
every
have been
people.
our
common
and children.
women,
Each
sinking
and the killing of
vessel,
ger
it
to keep off any portion of the high seas, which
Germany's ruthless
in
steamship Lusitania, an unarmed passen-
the British
of
order,
could with impunity order vessels of the United
policy, however—and I mention it last, although it was
the first
that
would have brought irreparable injury, loss, and suffer-
as
released.
infamy
of
act
were
it
would
self-respect,
honor,
prisoners of war by Germany, which was a clear violation
submitted to
tamely
brought disaster and ruin to the American people.
Not only
German auxiliary cruiser prior to our entry
a
had
we
have
Moreover,
tured
any
19
and
missing from the British steam-
or
sunk by German
were
Healdton,
steamship
it, and,
second, because we can never concede the right of
were
Besides this, seven American steamships
Americans were killed
'ship
Vigilancia, 7 Americans
steamship
Because, first, national
honor and self-respect imperatively demanded
wegian steamship Sjostad, 5 Americans were killed on
If we had been
' submissive, it would not be an illogical next step for
of which were avoided from time to time
the nation which ordered us off of 500 miles of the
by the plausible assurances and excuses of the German
Atlantic Ocean to order us to keep off the entire Atlan-
the consequences
tic Ocean except that pa'rt within three miles from
Government, each and every one of which was perfidiously
and each and every one of which
and insincerely made,
diction.
deliberately disregarded.
was
But this is not all.
her
and
citizens
enjoying
On
We could never submit to such
the
hospi-
most
striking.
tality and receiving our protection, was plotting against
from
carrying
Britain,
munitions plants, fomenting strikes and disturbances
up
welfare
the
.
labor
of the
world, disseminating false information and
minds
poisoning
the
their
Government,
own
ing
influence
to
Bernstorff's
foreign
to
pay
know
office,
American
plotting
people against
downfall, and
its
Congress,
our
evidenced
as
which he said
in
Congress
of, which
tions.
seek-
by
busy
was
of money to
through
the
upon
spy system
our
numbers;
numbers.
world.
of
you
And while
shores
Zimmermann, the
a
go
or
of
influence public opinion and the national
policies of the American people,
for
market
waste
to
would
be
begging
Mexico
dastardly
work,
Mexico
the
in
event
result
would
far
below
the
that
What
success.
more
perfidious
jury to
cotton
famies?
And yet
we
were
at
peace?
government
a
there
are
What must
capable
of such
lie
in-
those who undertake to de-
would
have
sufficient
war!
•
grounds
,
upon
to
enter
this
•
American rights through
years
but
enough,
1915, 1916, and 1917
when
German
the
were
provocation
Government
undertook
by its edict of January 31, 1917, to mark off hundreds
miles
France,
on
of
and
the
sight every
liibited
merce
high
Italy,
although in
and of international
If
by
American vessel which entered these
waters,
pursuance
of
lawful
procom-
right, and actually proceeded
would
be
While
so
our
and the
injured
by
export trade
import trade would disappear,
essential
to
our
national
life
and
We must have them, and we can never sub-
we
won
by
we
had
yielded to this insolent order signed by the
Kaiser in his palace in Berlin, he would have destroyed
our
sink
the grain growers
tlie unmolested enjoyment of the rights
it
would
inNo
the blood and courage of our ancestors,
Great Britain,
that
returns
mit to any tyrant who.forbids us to sail the high seas
surrounding
to
our
are
with
consequent
id the peaceful pursuit of our legitimate interests and
declare
seas
and
farmers,
particularly,
destroyed,
and
and child in America.
than our
imports
existence.
persistent destruction of American life and property
during the
of
,
.
The outrages committed upon
the
which
be
Certain
markets
products at home,
prices,
production,
woman,
growers
our
demoralized
of
man,
every
more
be
cost
obedience to the Kaiser's order.
fend Germany and to say that the American people did
not
reduced,
stagnation
the
of
judgment upon
greatly
California,
Mexico
are
would
Our production always has exceeded
attempt to sell'the whole of
one
the
be
employment,
and Texas would be restored to
her
nation
which
of
we
of industry would result, and suffering and want would
conduct could have characterized the government of any
with
out
and
join
round
soil," the production
own
would
this
to
na-
products
If
farm products
these
our
surplus
factories.
in
Japan
promising
Arizona, New Mexico,
them,
the
our
the home demand, and if we are denied foreign
invite
to
our
constitute
and
upon
our
export trade with the entire
represent
upon
in
those, countries
factories
stalk in the land.
United
Great
and
States
war
the
to
prosperity
$2,247,000,000,
were
to
our
thrown
urging
make
commerce
our
Our
mines, of
our
mines and
our
labor
for-
they
exports
eign secretary in Berlin, had sent a dispatch to Mexico
her to
ships
inseparably connected with
exports
farms, of
our
rot
with
1910
Our
These
denied
and through the corrupt
in
than one-half of
more
former occasions,
own
is
our
In the fiscal year 1917 our total exports to Great
organization
on
are
submission
of
forbade
order
Spain.
and
people
a
Kaiser's
people and
our
\
disaster
the
Britain, France, and Italy were $3,457,000,000, in round
Von
" I request authority
:
as
perhaps prevent war."
can
intrigue through his
use
the
to $50,000 in order,
up
Bernstorff
Von
of
The
France,
as
side
right of free and unmolested intercourse with those
dispatch of January 22, 1917, to the Berlin
influence
to
United
our
States by blowing
the domestic security
in
were
destruction
a
"
material
our
have acknowledged juris-
we
Of our vital rights.
Germany, while professing friend-
ship for America, and while her ambassador, her representatives,
shores, over which
own
one
zens
stroke
commerce,
of
his pen
more
than
$3,400,000,000
of
and American vessels and American citi-
would have been excluded from all intercourse with
the great and friendly nations
and Italy.
By
one
of'Great
Britain, France,
stroke of the Kaiser's
pen
he would
BANKING
.
have
accomplished
with
It
all
is
the
navies
and it
edict,
sible for America.
And
so
had
we
to
engaged in
we
intend to
bring
We intend to match organization
American
rights will be pre-
vital
America's
that
served, that peace upon a stable and just basis will be
reestablished,
When
.
nation
a
their
from all State, municipal, and local taxation, except
buy and
estate and inheritance taxes, and all Federal taxes except superincome taxes, excess-profits taxes, and iu-
can
they
families while
dependent
lives for
very
amount
reasonable
us;
of
risking and
are
We
insurance.
life
them
must supply
we
with
a
stroy
their insurability and conscript almost the
their
earning
to
destroyed
do
can
air fighters;
and
planes
carried
commerce
our
succor
our
his
and
food and other
time
the
of
of the United
problem
it is the problem of keeping
people;
these
in
mander
under
objects
great
Chief
the Comand Navy of the United
direction
the
of the Army
and
democracy
the world's
The
have
made him one of the greatest of
outstanding figures.
problem
is twofold:
Governments,
allied
the
To supply essential
because
it
is
vital
and, secondly, to. meet our own
be raised by
to
sent
in
the amount
raise by additional
billions of
fourteen
and
estimated that $5,000,000,0Q0 will repre-
additional loans to the allied Governments, which, f
turn,
This
is
It
dollars.
thirteen
between
issues
will give us their obligations
bearing interest.
$5,000,000,000 will not, therefore, represent
of
these
and
honor
will
ultimately be repaid to the American
we
part
must
of
thirteen
30th
expendi-
the good faith
foreign Governments—loans which
it will represent loans based upon
tures;
as
the
taxation for the fiscal year
ending June 30, 1918. we shall have to
bond
to
requirements.
Roughly speaking, and after allowing for
revenue
credits
credit shall be sustained;
that their strength and
cause
for justice, sivilization,
for America's rights,
and
honor
of
stand for America's
States, your President, whose glorious
of
forward
Treasury supplied with the means to carry
the
to
back to
everything goes
of the American banker and the
American
the
States that every demand in
The problem of the American Treasury
gold pile.:
is the problem
of
All these
It is upon the
quickly.
because
focuses,
war
must
we
which they can buy arms
supplies in our markets.
things must be done and done
Treasury
in defiance
seas
submarines;
the Belgians, and the Russians—
by lending them money with
and
with
in arms—the British, the
noble compatriots
the Italians,
French,
great mer-
be maintained and
the high
across
Kaiser
German
the
and maintain
build a
must
we
of
finance
general
our
to
fourteen
June,
installments
these
1918,
seems
loans,
financial
people.
But
they are an integral
operations.
To
raise
billions of dollars on or before the
by the sale of
to
some
bonds in recurring
people an impossible task.
These bonds did not
To be successful with recurring
issues of liberty bonds, it is necessary that they should
appeal to the masses of the people. In order to give
the exemption from supertaxes on the first liberty bonds,
it was necessary to make the rate of interest correspondingly low. The returns show that of the 4,000,000
subscribers to the first liberty loan 3,900,000 subscribed
in amounts of $10,000 or less.
The aggregate of such
Subscriptions was approximately $1,300,000,000, or 62^
per cent of the first offering.
To most of these subscribers exemption from Jhe supertaxes was of no value,
or in any case of little value, whereas to the 40,000 subscribers who bought large blocks of liberty bonds the
exemption from the supertaxes gave an undue advantage.
In order that they might have this advantage,
make the widest appeal.
predominant fleet of aero-
that our long line of communication
so
Were exempt also from supertaxes.
than restitute
less
no
gallant soldiers in France may
our
of
Wre
Navy; we must provide a
chant fleet,
briefly to the taxation feature of these bonds,
The first liberty bonds bore 3^ per cent interest and
insurability and their diminished earn-
We must increase, strengthen,
ing power.
de-
whole
when we draft them and send
power
front.
the
them
their
our
They are convertible into another issue
of bonds, if authorized by Congress, bearing a higher
rate of interest than 4 per cent. I shall not enter into
the details, because Treasury circulars and regulations
will explain them fully. I do desire, however, to advert
heritance taxes.
must pay their
we
must, as a humane and just Nation, support
we
giving their
of
The new bonds bear 4 per cent interest and are exempt
'
and sailors armed
money
necessary'clothing and food;
with
.
is
We must constantly provide them
American skill devise.
wages;
essential
first
the
the best that
with
equipped
be
'
.
We must keep our soldiers
money.
and
earth.
to
comes
war
institutions will
democratic
that
and
extended throughout the
We
campaigns we must make for the sale of liberty bonds,
and I am comforted by the reflection that the Governmeut has the solid and unswerving support of the
patriotic men who compose the American Bankers' Assoeiation.
I
y
victory will be complete, that America's honor will
vindicated,
our
women
valor, and I have not the shadow of a doubt that
man
the
will is perfect;
farmers, wage earners, laborers, men
alike, Girl Scouts and Boy Scouts, and every
other class of our x>eople—and we can do the job. Already we have demonstrated what a united people can
do when partisanship is subordinated to patriotism;
when love of country becomes supreme. I look forward,
therefore, with confidence to the success of the recurring
which we
war
war—a
against German skill, American valor against Ger-
skill
our
manufacturers,
rights, and so it is
our
science against1 science,
against organization,
are
have only to pull together—bankers, lawyers, doctors.
successful issue by the organized
to a
resources
spirit is indomitable! and our success is certain.
monstrous
be a
would
righteous
might of this Nation.
be
for
fight
a
adequate;
German Empire.
thing for America to submit to it.
that
It is not easy, but it can be done,
Our
he could achieve
the
of
It is a stupendous undertanking, but, it is not impos-
in
farms,
our
on
than
mines
our
armies and
monstrous
a
destruction
more
factories, and in
our
97
SECTION.
,
the small holder was obliged to receive a lower rate
of
interest. It was estimated that under the pending House
bill the exemption from supertaxes would make a'3y2
per
cent liberty bond in the hands of a man
with a large
income equivalent to a taxable bond bearing 91-5 per
cent interest per annum for that part of his income in
of $2,000,000. The inequality of this plan is obIf sets at naught the principle, now firmly
grounded in our national policy, that graduated taxes
shall be laid upon wealth in order that the burden of
excess
vious.
taxation may be equitably distributed and made to bear
more heavily upon the rich than upon the poor. No one
now challenges the correctness of this principle.
It is,
therefore, essential that Government bonds should be
issued upon a basis which .will be equally just to the
and the rich man, so that each may purchase
these bonds upon practically the same interest basis after
allowing for the different scales of taxation. The present
law accomplishes that object.
'
,
It should be borne in mind, moreover, that if the Goveminent should continue to exempt from supertaxes
bonds issued during this war, the time would come when
there would be created in this country a class of people
of great wealth, enjoying great incomes wholly free from
tax burden. .A grave risk would be involved in such a
policy. It would be fraught with great danger to the
state and would be well calculated to produce discontent
with tax burdens falling thus heavily on the many to
the exclusion of the few.
.
.
,
For the purpose of illustration, let us suppose that
poor man
98
the
BANKERS'
continues
war
CONVENTION.
long that $20,000,0()0,000 of bonds,
so
authorized, not only the interest rate but also
bearing 4 per cent interest, should be outstanding, and
that they were exempt
taxation.
.$800,000,000
per
Get
us
that
suppose
exemption
almost
annum,
super-
half,
from
much
as
the
as
$400,000,000,
or
supertaxes which
people of great wealth.
gress
these bonds would be
that
to
Secretary of
the
of
the
maturity,
issued
to
conversion,
interest
same
now
offered.
must
be exercised
the
upon
by taxation
the people;
of
masses
raised
in
other
words,
they
would have to be taxed directly in prder that the $400,-
Secretary
000,000 of tax exemption could he accorded to the people
The
of
wealth
great
is
who
bought
liberty
the
bonds.
This
tion
affects
less the
or
the
on
rich.
one
price for which the bonds
basis
of
We
what
they
be worth
may
They must be offered
to
all
the
The result of selling a
interest
of
and
and
will
sons,
but
turn
is
from
banks
too
of
will
"chased
the
these
It
will
deposit
he all
from
without
be unable to hold
small.
be
than
savings hanks,
or
and
accumulated
by
States
the
to
or
Much
well
as
to
as
considerations, however, make such
emic.
If the bonds
it would
probably be necessary to offer
interest
than 4 per cent.
sudden
an
adjustment
eurities to
States,
he healthy.
the
markets
taxes
for
other
se-
It is important that the United
in becoming a great borrower of money, should
adjust the terms of issues in such
far
practicable,
as
securities.
given,
is
It
which
apparent
controlling
are
a
way
that the
market
have
I
reasons
against
supertaxes, apply, if at all, only to
avoid,
to
as
break in the general
any
exemption
from
limited extent to
a very
exemption from stamp taxes and normal income taxes.
These taxes
levied
are
at
ought
to
incidental
he
to
able
normal
its
to
and
which
be
it
by
ownership.
full
a
little
The
value
for
a
There is
a
very
United States bond
taxes
United
and
returns
States
If
.•
ought
sell
its
from
bonds.
The
bonds
.a
throughout the United States.
subsequent
a
series
of
bonds
higher rate than 4 per cent
by
the
holders
their
of
option, at
issue
bonds
not
United
the
is
public.
States
these
any
bonds
bearing
per annum
before
the
will
end
have
interest
par,
at
should be issued
of
the
the
war
then
privilege,
at
time within six months after such
made, of converting their
than
at
bonds at
par
into
the price,
which the bonds bearing interest
higher rate shall be offered for subscription to the
Of
rate than
4
course
per
bonds
hearing
cent cannot
interest
be issued
at
a
higher
without further
legislation by Congress, and, if such an issue should he
place
position
a
be
made—not
from
which
lie
bargains which
the
bonds
new
into
conversion privi-
a
be exercised
with
respect
any
under
4
the
bonds
this act
course,
bonds
of
the
first
issue.
just
like
those
conversion
will
have
the
they
may
old
law
which
differs
law under which the 4
holders
of
the
3y2
in
keep their 3y2
the
per
3%
cent
within
vember 1.5,
the
if
period
they
of
desire
bonds,
six
to
per cent
while
into
new-
The
they
must
the 4 per cent
months
exercise
liberty
the
issued.
are
of
old
'-w .:
cent
per
bonds
exercise the privilege of conversion
bonds
v
respect from
one
per cent
the
as
'
under
issued
are
issued
maturity
same
interest and redemption date
per cent bonds, or
being
now
bonds
bonds if they prefer.
The
Their
They may convert their bonds
bonds
cent
subscription, except that the
principal and
bonds
offered
are
of Congress does
the rights of the holders of the
liberty
per
for
such
upon
which
substantially de-
are
recently approved by
fixed by the previous act, and by the terms
beginning
it
at
all,
No-
would
have the right, if subsequently bonds should be issued at
a
still higher rate, say 4y2 per cent, again for
period
a
of six months beginning at the date of the issue of those-
bonds, to convert their bonds into 4y2 per cent bonds*
though
even
version
they
into the
had
4
per
made
not
intermediate
an
bonds.
cent
This
con-,
arrangement,
more than fair to the old bondholders and to carry with
it
burdens
of
administration
and
difficulties
in
connec-
tion with the future financing of the United States which
ought not to he repeated.
to
has
been
refuse
urged upon me that many men of wealth
to
buy
the
4
this;
but
always
if it
is
be
equitable to all
true,
to
Government
that
can
appeal
alone to
means,
nor
to
a
bond
alike and which
fact
the
he
with
of the
will
Government
terms
upon
liability
loath to believe
make
fair
the
and
widest
the people without regard to the
man
a
may
finance
not
bond
should
I
the position
offer
possible appeal to all
extraneous
cent
per
super income taxation.
must
„
bearing the higher rate of interest at
less
at the
offered
it
to
exemption
will, of course, continue to be exempt from all State and
local taxes
in
were
new
wm
able
If
also
carry
of Congress
act
and
cent
per
into
stamp taxes in the price and interest rate
be
if any
Various
war.
of the bonds themselves.
such
will
to
resulting from the language of the old law, seemed t<>
harassed
get
end.
an
is
Congress and»to the Treasury Department to be rather
feeling that the holder of
not
level
to
come
it
by the
rate,
bondholder, rich and poor alike.
every
natural
at
wealth
arises
approximately equal value to
upon
and the exemption carries
to
all
President,
nor-
To do that would involve too
in
the
way
higher rate of
a
by
affect
discussion ,acad-
a
exempt from normal
not
were
will
superiority
that privilege may
not
wholly
of
the
Of
Practical
supertaxes.
of
course
subscription.
rights
a
right
conversion
higher rate,
a
position
the
In
it
provisions for conversion
termined
rich
might he said for subjecting the bonds to
taxes
These
,
sy2
original subscriber.
at
a
for
fact, the extent of tlie wealth of the holder.
income
then
pur-
the bonds themselves, but upon
upon
lege
very
the
the 4 per cent bonds
as
of
of
date
same
to a subsequent issue of the holder's option,
be
to
him
re-
the ten-
and
the
equality with the purchaser of bonds of
get
circumstances the value of the tax exemption de-
extraneous
for
they can
adequate consideration moving from them either
United
pends not
as
because the
them,
less
the time for these bonds
them
low
and the
poor
and
the
date
period prescribed
or
privilege
which conversion is made
from graduated
will buy them for patriotic rea-
means
the
Treasury
this
issue
next
give
during the
equal
a
within
so,
from time to time might be offered by the United States
very
upon
bond which bears
exemption
income taxes will be this: The
super
people of modest
dency
carries
the
to
the
exercise
same
conversion
new
might pick and choose between
people alike at
price, and should appeal to all alike and
rate
mal
not sell bonds in billions
can
terms.
to
the
to
.
turn can be had for it.
the
object of
of substantial
be sold for the United States, yet no adequate re-
more
of
this
they
the
the investor in 4 per cent Liberty Bonds in
manifestly unfair, because, although the total exemp-
may
If
if
dates,
for redemption before maturity
be
under
determined, except
have
arbitrary, figures merely for the purpose of illustration.
have to
so
them,
will
This
.$400,000,000 would
Treasury
act of Congress ; and the holders of the
bonds
the
privilege
taking
am
gen-
4 per cent bonds will be entitled, if they wish to do
represented
Bear in mind that I
the
an
to receive bonds of the character
war.
accorded
was
by
or
authority of
entire
Government at the outbreak of this
expenses of the
the
from all taxation, including
The interest charge on
the
eral character of the bonds will be determined by Con-
rich,
the poor.
be
this
to
nor
poor
war
the
man
rich.
or
by
The
making
of
an
moderate
Its appeal must be to all
the
people, and all the people must respoud to that appeal
and
by
great
united
credit
effort
sustain
operations.
It
that patriotism should play
eminent
lieve
bonds.*
that
the
I
do
not
American
the
has
no
Government
been
in
suggested
these
to
me
part in the sale of Gov-
concede
people
this,
will
although
buy
these
I
4
hepee
BANKING
Government
cent
first,
love
self;
second,
interest
make
of
in
love
If
hands
it-
subject by Col. M. W. Thompson, now in charge of the
and
interests
of
is
the
true,
of
man
patriotism
wealth,
&
because
Class,
Government's
the
if
credit
is
of
and
the
Signal
Corps
member of the
a
of
firm
the
figures
I
arrayed
quote
in
this
Thompson
The ar-
statement
paragraphs
two
United
the
of
financial accountants, of New York.
impressive.
most
patriotism
with
are
this
from
statement:
greater stake in the security of Government than any
Other
Black,
gument- and
without patriotism, has
or
Division
States Army,
individual
each
most interesting and illuminating paper on this
a
Finance
safety which will
his happiness and prosperity.
modified
with
or
a
this
is,
life
combined with that vital
welfare
material
Patriotism
everything—above
of country
the
secure
merits.
their
011
above
Nation's
the
and promote
'
bonds
country
SECTION.
„
investigation of the present available supply of capital sog-
de-
gesta the conclusion that the present needs of the Government may be
stroyed and disaster conies upon the country, as it inevi-
Me<|UI'telJ' me<- "4 ,hat the entrance of the Government into the
market as a departure for capital need not prevent necessary expan-
•
.
.
#
tably will if the Government's credit fails, what is propto the rich man,
erty worth
■
_
free
response
buying Government hoilds the rich
B^
•obtains the safest
investment
the
ill
world
and, at the
i
But
ill
secures
supertaxes,
His
principal
in
„
Of
man
of
even
beyond
„
peradventure.
Its market
bearing
during
to
with
the war
liberal
Germany.
investor?
the
the
bond has been issued
I
by
rate
interest
could
of
instance where
no
State, 01*
a
of
What
know
division thereof in .the United
in the State
it is convertible
higher
a
more
political sub-
any
States,
be
by any private
or
a
.
.
normal
year,
corporations,
normal
.
not. force
bankers
savings
business
,
from
men,
„
all
sources
farmers,
.
..
in
and
into
Indeed,
a
they
but they are
TT
^
the United
investors
States,
generally,
amount.
In
that year savings in
this country,
including those
reinvested by corporations in their own enterprises, amounted to $15,-
Conservative estimates for the current year indicate that
aggregate for 1917 available for the use of the Government in pro- *
seeuting the war and
for the general purposes of financing industry
$18»000'000*000*
may rcach
I have not had opportunity yet to study the elaborate
State in the Union and not, as-in the
bond
another
need
country
-of
Neither
-
the
These conclusions are striking.
000,000,000.
,
it is exempt from
it pays an adequate return;
issue;
.
value is
of State, municipal, or local bonds, only
iitfo
character.
j
of
needs
but
Patriotic
amount to from $5,000,000,000 towas about two and a toia the supply
$«,000,000,000. in half times the
capital in the Uuited States
to
matchless
State in the Union;
every
the
,
shake it.
can
taxation in every
a
4,,
"In
from
subject
bond,
,
safe
IS
stress
nor
same
of
investment
ail
....
Storm
investment
Government
a
will be first served,
,are at variance with the general attitude of financiers,
soundly based upon accurate statistical Information.
safety and makes property secure.
the merits of the
1
upon
V
case
vi
^
the
to
policy of retrenchment.
'
lliotes the national
the
man
time, by helping to sustain the national credit, 1
pro-
wealth
The needs of the country must be and
thcre win be sufficient capital left for industrial purposes.
_
mail.
same
nion.
what is life worth to the
tables and the argument which have been submitted to
me
in support of these conclusions, but I have examined
them sufficiently to convince me that they are worthy of
deep study.
his firm,
to
I am greatly indebted to Col. Thompson and
Messrs. Thompson & Black, for the service
have rendered in making such a careful analysis,
they
and for the privilege they have given me of making use
I hope to be able to publish Col.
corporation, which gave to the investor the opportunity
of it.
of converting that
Thompson's state-
ment in the near future.
at
bond into
subsequent issue of bonds
a
higher rate of interest.
a
The
be, but I am
There may
not aware of it.
Whatever differences of view there may be about the
annual savings of the American people, it is
.
question naturally presents itself as to how these
: true that they are so large that with the
undoubtedly'
other resources
great
operations of the Government are to be financed.
of the country upon which we may draw, there can be no*
They
can
the united support
doubt whatever of the ability of the people of the United
of all
the
financed only through
be
people of the United States.
The kind of sup-
port I mean is that every individual, every partnership,
corporation, shall
every
invest not only their available
from time to time in Government
means
bonds, but that
convenience;
shall make sacrifices of comfort and
they
.that
they shall economize; that they shall avoid waste;
shall save in every possible direction in order ■
that they
that, they may increase their
available'resources for the
of assisting the Government in these prodigious
purpose
operations
We
thrift
encourage
and
are
of the
resources
,
(including trust companies)
now
the
War
were
never
so
of the United
At the outbreak of the
$37,000,000,000.
combined
National and
of
resources
the
banks
$3,000;-
000,000 by bond sales or twice the amount of the
ing resources of the country.
now
annual
has
am
not
been
much speculation as to
after
have
I
myself
been
greatly
and as
have been
favored.
to
how
confused by the many con-
Aiding estimates and theoretical
I
the demands of the
be
war,
necessity of cutting off of
capital expenditures during the war, but it
The desirability for that action is none the
is not.
Jess necessary, because, as a matter of prudence and of
wisdom, we should conserve the resources of the Nation
in every possible direction.
,
I11 the matter of savings, which are of such prime
portance,
son in
what are the
much will
this
unnecessary
im-
the Treasury purposes to issue in the near
and upon such a reasonable plan that the humblest per-
the needs of the Government are satisfied.
in
This sounds at variance with what I am going
to say subsequently about the
be
States, as to whether or
they are large enough to meet
eminent.
future and to sell to the people war savings certificates
is as small denominations as $5, maturing in five years,
suggesting that this may
savings in the United
Government
left
of every financial undertaking of the
Gov-
I am only drawing a comparison.
There
not
I
bank-
Upon the same basis we
be able to raise $74,000,000,000 through
loans.
were
$1,500,000,000, and yet with these limited
banking resources the Union Government raised
eminent
the success
impeded by the essential financial operations of the Gov-
.
combined
The
estimated to be
done;
for
industrial and commercial situation unharmed and un-
Banks
should
able
Already the country is aroused to the importance
to do?
Government, and for the continued maintenance of our
ample for ourselves and so formidable for our enemies
Civil
the cutting off of luxuries during the period
of this war, what may not tile American people be
in this critical
first duty of the hour
Fortunately the resources of America
States
prevention of waste, the practice of genuine
by
economy,
place their entire resources at the disposal of
time is to
State
be effected under the pressure of patriotism and neces-
sity,
and cooperation throughout the land which augurs well
the
that
now.
voluntarily are now augmented by the savings which can
of the situation, and there is a spirit of determination
the Government.
as
If
the ordinary savings which have been made heretofore*
industry
must
throughout the land, and we must make everybody understand
Government
make upon them for the purposes of this war.
which the national' security absolutely
upon
depends.
States to finance every demand which the
may
observations with which
Recently there was placed in
my
the land may be encouraged to save all that he
can and
to invest in an absolutely safe security
interest, while at the same time doing his part to
bearing
sustain
the Government and help win the war. I have appointed
a War Savings Committee to take charge, under the
direction of the Secretary of the Treasury, of this
tm-
portant branch of the work. This Committee consists
of Messrs. Frank A. Vanderlip, Chairman; Frederick A.
Delano, of the Federal Reserve Board; Ilenry Ford, of
CONVENTION.
BANKERS'
100
L.
Charles
Detroit;
of
Baine,
Boston;
Mrs.
know, have maturities of from thirty days to four months,
Elizabeth
and
It will
Bass, of Chicago; Eugene Meyer, of New York.
issues
possible these, certificates will be made available for
the
the post-offices,
through
of the country
people
is not alone in the amount of money
but
in
ficial
the value of thrift and saving.
facts,
effect
manent
upon
discrimination
Wise
involving
loans
to
as
new
serv¬
and to
these Treasury certificates as offered.
having the Federal Reserve Sys¬
to
capital
of
value
the
to
and
banks
the
to
It not only gives strength and security
people.
financial
our
means
demonstrating every day its tremen¬
and
importance
American
promoting savings, but also in exercising a
not alone in
'
patriotic
Government by purchasing promptly,
This system is
dous
render inestimable service,
can
render highly valuable and
can
fortunate in
are
ifest.
the future economy of the country.
They
Undue strain
tem, whose usefulness is now becoming increasingly man¬
per¬
Upon the bankers rest a peculiar duty and responsi¬
bility at this time.
simplified.
but
to avoid disturbance and inconvenience.
way as
the
to
We
Its bene¬
to survive the war and have a
effects ought
eased
the extent required,
intelligent presentation
nation-wide scale and through an
of the
ice
the United States on a
teaching the people of
a
The banks
that may be saved,
only
payments are spread over a period and adjusted
cause
in such
for war savings certificates
not
the credit resources of the country is avoided be¬
upon
agencies that may be designated by the Government.
The value of this campaign
is
the interval between recurring bond
met, and the process of financing these bond
are
issues
in¬
offices, the banks and other
ternal-revenue offices, customs
Through their use, the necessities of the
Government during
ing the forthcoming liberty loan campaign, but as quickly
as
sold in anticipation of bond offerings and the pay¬
are
ment of taxes.
possible to offer the war savings certificates dur¬
not be
it
but
structure,
offers
essential
the
and flexible
legitimate credit expansion
note
expenditures and in discouraging every unnecessary un¬
issues, for which the country has so long stood in dire
dertaking involving fixed investments until after the close
need.
of
this
that the
fellow
my
world is
is
war
".'States..
have
be
States,
the
the
authorities
in
be governed by
mediate
is
war
wish
to
deep study of this question
when it is desirable to take action,
you
<
has
no
do
will be prepared
When
the
in
Through
interstate commerce.
may
,
time be concerted,
absence of
bankers
of
State
the
In the
But that would take time.
action
or
is
it
country
extent, unnecessary
doubt, to meet this question if
no
possible, however,
discourage,
to
to
a
for the
very
in
amount
of
that it
met.
offering of liberty
an
is
be
the
with
minimum
be carried on and
can
I should feel happier if
larger, but I have endeavored to make it as
possible in order that the least possible strain
as
be put upon the country's resources during the crop-
We must make this loan a success.
failure
The
success.
bonds would be
A few
of
single
a
We
issue
for America than
worse
the field of battle.
great
unwise investment of capital
the
situa¬
a
Government must
the
con¬
moving season.
cooperation of the States, effective measures could
the necessity arises.
,
small
such investments by private corporations,
except those engaged in
the
of
needs
effectually conducted.
war
the loan "were
am
the actual
are
We are face to face with
remember
please
I
I do not determine these
Government.
announce
offerings I
These facts
which the Government's business
has it the power to legislate
nor
I
bonds,
through legislation, to regulate or control
with regard to
of the oversubscription.
understand, gentlemen, that in the de¬
the amount of these
where the
tion
$3,000,000,000, with the right
by inexorable facts.
necessities of your
capital expenditures of States, municipalities or political
'subdivisions of States,
The amount is
questions arbitrarily.
quickly with the Government.
power,
that
way
commanding duty of self-
allot 50 per cent
termination of
trolled
It should be remembered that the National Government
.
a
offering of the Liberty Loan has just been
should like you to
that if the time comes
so
next
reserved to
that you, the bankers of America, make a
urge
to cooperate
The
organized scale to
expenditures; but I
capital
unnecessary
any
upon
in such
patriotic service to the country.
announced.
I do not mean to have
definite suggestion that an im-
a
It would consolidate
It is a
question.
put in
interest and
Private enterprise should
the same principle.
impregnable for their interests and
more
interest of the country.
be
of our
controlling
the
works, and improve¬
public
over.
attempt be made
discourage
governors
and
by joining the
interests
Government in this war could not
political subdivision of the country
infer that this is
you
cities,
our
unnecessary
this*
until
ments
patriotic
the
of
every
discontinue
to
of
duty
mayors
common
their own
the operations of the
gladly his available means in Government bonds, and it
Bhould
I wish that the
System, and by doing so to make that
the financial strength of the Nation
duty of every citizen to invest
the first
be
promoting
system
great
the
•
should
of
Federal Reserve
the entire investment field in the United
over
has already won the approval of the
people of the United States.
State banks would realize the great opportunity they now
impressive that the Government
so
This system
bankers and
countrymen,
preempt and occupy exclusively, if necessary, until
must
It
realize,
must
gravity of the situation for the Nation and for
the entire
this
We
war.
We must
never
can
of
a
make it
a
Government
disaster
let that happen.
upon
(
days ago I read the following manifesto issued In
Berlin by the League of German Municipalities:
private and public enterprises during the period of this
If
war.
I
hope that this association
mittee to study
the public
as
It is also
of
America
this problem and to be prepared to act
interest
shall
conserve
war
18,
fund
the
talks,
money
October
when
given
of
President
the
United
the subscription lists close,
by
German
the
people
States
may
leara
by
that the echo of the new
will
have
drowned
out
com¬
pletely the clamor of unending protests to which his reply to the Pope
require.
may
matter of great
a
will appoint a com¬
has
stimulus.
given
importance that the bankers
their
own
resources,
having
.
Let
meet
us
that
challenge by
a
subscription to our
always in mind the supreme necessities of the State, so
Second
that they may be able, as the
days after the close of the German loan, which will make
ment's credit, to respond
first bulwark of the Govern¬
quickly and effectively to any cails
the Government may make upon
It is most
be
kept
a
reasonable
lever throughout
and
the country,
expansion of credit should be had to carry
the great commercial and
Nation
In this connection
important, gentlemen, that interest rates should
at
that sufficient
on
them.
industrial operations of the
to assist in the flotation of successive issues
prompt
and
bankers
of
time and
impress upon you the importance of a
widespread
the
United
response
States
to
on
the
the
part
of
the
offerings of short-
Treasury certificates which will be made from
time to time by
the Treasury.
Loan
These certificates, as you
on
German
the 27th day of October,
military
that
America
field, her
to
the
invincible
Navy
the
upon
despotism
nine
marshals not alone her brave soldiers upon the
high
seas, 1
her
industries
throughout the length and breadth of this land,
well
to
her
use
financial resources,
them
all
but as
and that she is determined
without stint and regardless of sacrifice
to vindicate American
German infamies.
of Government bonds.
I should like to
clear
Liberty
Let
rights, outraged too frequently by
us answer
this challenge by mak¬
ing clear to the world that the American people,
transcendent love of
behind
their
the purposes
great
with
justice and of country, stand solidly
President and support unequivocally
of this war.
*
.
Fellow countrymen, we are at one of those great points
BANKING
in the progress of civilization where
the
whole
human
race
are
pregnant issues for
It
be determined.
to
is
an
inspiring thought that noble, free, peaceful, and libertyloving
America
has
influence, if not to determine, the
We have
a
grave
God
by
called
been
course
powerfully
to
of future events.
responsibility, and I know that we shall
discharge it worthily of American patriotism and Ameri¬
idealism.
can
These
and magnitude.
frequently
be
problems are of unparalleled novelty
The means of determining action must
instinctive
more
We
logical.
than
traversing unknown and uncharted seas.
are
Our compass
•
•
•
•
101
SECTION.
must be the steadfast
cooperation of the best wisdom and
intelligence of the country, inspired by a lofty patriotism
which neither obstacles can
America's
discourage nor death defeat.
rights must be vindicated; a just and
sacred
lasting peace must be established;
triumphant;
these
despotism
must be
democracy
destroyed;
must be
when
and,
everywhere
great things have been accomplished,
throughout the length and breadth of the civilized world
men
came
proclaim noble America as the valiant knight
shall
who
upon
the scene in the blackness of the night and
rescued civilization!
•.
.
*
.
■
...
*
]
^
•
,
•
.
War Finance and the Federal Reserve System
By Benjamin
The
which
invitation
your
to extend to me to address
.
panied
about
officers were good enough
this Convention was accom-
I should say something
the suggestion that
by
of
relations
the
the
Strong, Governor of the
Reserve
Federal
System to
But those who have sent sons to
government financing.
Some of
dollars.
good-bye to boys who
have just said
us
leaving their homes to make the supreme
are
Our return
that investment will not be
on
again been shown that our form of government
institutions develop
the
best the nation has to
must be accorded
which
only one part of the fighting machine
being created is
with which we must
equip ourselves if the sacrifice of sons and husbands
The first army to be mobilized
not to be in vain.
army
ties
for
the American
turhing
billions
the
activi¬
to produce material
people, so as
Our battles can be won only by
conducting warfare.
over
to
government as rapidly as needed
our
must be drawn from
of dollars of credit,-which
work
the
for
of the
character
general
needed
been
had
financial
1913.
when
Reserve
Federal
the
Act
that govern¬
became law
Secretary of the Treasury was authorized to
Federal Reserve Banks to act as the
Agents.
These
two
brief paragraphs in
bankers and their aids, are
country can produce
Secretary McAdoo
he could build up a
press
and a
but so
minimum cost just
foundation
finance which would
great army, the bankers,
multitude of other organizations not
financial operations of the gov¬
co-ordinated that their services would
Treasury Department and of its
fiscal agent
was
advised of its appointment as
and directed to proceed
the re¬
committees—largely
these
developed
the
duty
com¬
sub¬
of
dividing each Federal reserve district into sub-districts
and even smaller divisions
eral
tically all the others),
tatives
a
that
so
ultimately in the Fed¬
Reserve District of New York
actively at work in
few weeks of the
(and I believe prac¬
had committees or represen¬
we
every
city and town within
In con¬
day we were told to start.
junction with the committees appointed to actually sell
of
the
with the development
charge of news,
had particular
which
country,
publicity, advertising, public speaking, distributing post¬
and« managing
ers
educate
to
of
portance
great
a
the
saving
of
variety
activities
other
people of the country to the im¬
and
the
buying
of
bonds
of
the
government.
Most of you
matter
wTas
it
that
was
are
familiar with the way in which this
Notice
handled.
almost
an
necessarily
was
task
superhuman
to
so
Plans made
dle of June.
always to
loan
be
of
they when the first
hands of the magni¬
Many bankers expected the bonds to
immediately
to realize what a
inadequately equipped with clerks
the. placing
must be handled
loan
of a
for the government
by most precise methods requiring accur¬
ate reports,
which must be filed on time.
how
it
ing
to
do
mar
the
We have learned
Whatever friction noth¬
better hereafter.
really
can
others failed
payment;
subscriptions; still others failed to take into
that
account
upon
magnificent response would result from
this offering and were
to handle the
th^ mid¬
But much of the difficulty was due to a
the task.
delivered
the
hastily cannot be expected
so
smoothly, nor did
work
placed.
was
short
cover
ground adequately between the first of May and
magnificence of the
response.
During the last few days before the subscriptions closed,
when
we
New
of
were
lTork
telephone
calls
rush
of
storm.
a
the
handling
alone
each
in
some
day,
subscriptions as
Nor need
the Federal
thousands
we
one
we
could
of
Reserve Bank
telegrams
and
feel the impending
would sense the approach
be ashamed to admit that at
close, the flood of subscriptions was completely be¬
yond the handling capacity of even some of the largest
and
best
organized banking institutions in
the district.
It is stated that there were four million subscribers to
the loan.
I believe this underestimates the actual
ber of subscribers
by at least 25
per
cent.
num¬
In the Second
Federal Reserve District, we have delivered 1,931,666 full
paid interim certificates which in
agencies.
Each reserve bank
upon
bankers—there
of
of
raise armies and the
machine for war
supplant those of the
fiscal
of American
foresaw that upon this
ordinarily related to the
ernment,
statutes,
supplies.
bring into co-operation in one
the
our
which I believe can,
to furnish credit at a
rapidly as the government can
as
appoint the
all that was required to lay
for an organization
foundation
be relied upon
the
Government's Fiscal :
supplemented by the patriotism and energy
^the
Con¬
bankers' commissions, and in December,
out deduction of
and
organization
subscription with¬
sold by popular
ment bonds should be
posed
appointed to co-operate with
were
banks
serve
tude
determined by statutes
had for many years provided by law
Committees
general lack of appreciation on all
already enacted before our entrance into the war.
gress
While the organizations were different
district, the main characteristics were the same.
the country.
earnings and economics of the people of
The
in each
is
is the
which must shape and control the economic
of
machinery needed to place the first Liberty Loan,
May 3, 1917.
on
aimed
through personal self-denial.
great military organization now
The
indi¬
only be won by
can
They look to us for the support
heroism.
vidual
which
victories
of the
.bonds, publicity organizations were created in all parts
national tradition.
is'our proudest
for
and our
in our citizens that generous altruism
We look to these armies of the
offer
valued
but in the consciousness that it has
in rates of interest,
which
sacrifice
They are our real investment in the
for their country.
war.
of
find it difficult to discuss the war in terms
France,
Federal Reserve Board of New York.
14 per
number equals about
cent, of the population of the district.
one-half of this proportion prevails
If less than
throughout the
coun-
'
BANKERS'
102
CONVENTION.
ment of the first rank in Government finance.
in the
creased along with a rapid increase in our gold reserves,
makes this first war loan an achieve-
response which
a
about
I
meet these increasing demands, so at the same time the
Such
scribers.
less than 01,000 sub-
no
produce 25,000,000 subscribers for a
the war, and is making further demands upon our pro-
exception of deliveries of the
gauged—roughly, it is true, but still with a fundamental
accuracy—by the amount of the borrowings and in-
I think the same will be true in all
creased tax collections of the Government, and we must
District with
permanent bonds.
districts.
bonds
will
of
the
Naturally, those who
of
first
the
issue
deliveries.
The
of
officers
the
issue
second
,
permanent
bonds
I
actually accelerated when the pressure is applied,
only expressing
am
When the Government makes an offering of securities,
Secretary of the Treasury, as well as the
all
the
banks,
reserve
in
asking
that
I will
briefly describe how the conduct of their operations is
rapidly
are
The reserve banks form
the machinery of production.
the center or hub of this credit machine, and
the expense and labor
us
being prepared, and I know that
the wish of the
again speed up the machine of credit to keep pace with
decide to convert
may
bonds of
into
prefer not to require of
two
The volume of these demands may be
ductive capacity.
Government loan.
Every detail of the last loan has been completed in the
Second
finance
to
Now our Government has entered
increased trade.
an
the whole country would
response by
a
circulation of credit had to be speeded up
told that with their population of
am
250,000 people they had
production of our mills had to be speeded up to
The
The record
city of Rochester indicates what is possible in the
whole country.
Bank deposits and loans in-
became increasingly active.
try, It would indicate at least five million subscribers—
the
whether of
long
term
bonds
short
or
term
notes,
the
bankers, through whom these subscriptions were origin-
banks of the country immediately realize that their cus-
conducting this com-
tomers or clients will subscribe to the offering, and that
made, co-operate with
ally
in
us
plicated operation of making deliveries.
Such
falls to take into account the
bonds
labor
The
involved.
requisitions
banks called for
serve
a
bonds
the
by
require 20,000,000 sheets of
tons.
In the Second District
have handled
we
4,005,057
pieces in issuing interim certificates alone.
indicate
the
of
amount
labor
has
increased
from
The
1,00 to
Publicity
about
Division
involved
000
of
Committee employs about 100 people
in
placing
people in
District
Reserve
are
made.
'
actual
machinery
for
selling
the
rule they do not take cash
a
but take credit
the books of the reserve hank of their district or of
This is the first spin of the
their local reserve agent.
The Federal Reserve Bank of New York receives
wheel.
from the other eleven reserve banks a vast sum of New
in additon, and the
Federal
As
rior.
York exchange for collection and remittance in advance
greatly exceed that number when all appointments
The
,
few
embraces about 15,000 individuals, and will
now
their New York balance or calling in their New York
loans, and withdrawing these credit balances to the inte-
Loan
a
Liberty
the
Committee Organization of the Second
on
on
these Government bonds, the clerical force of our bank
months.
have money on deposit there, prepare for this by drawing
re-
weighing 237%
paper
Government's
of each loan being-placed.
reserve
It must settle with the other
banks every Thursday through
the Gold
merit Fund maintained in Washington.
a
pull on the reserves of all the banks in New York City,
The
checks
we
collect
from
them
reduce
cause
the New York Clearing House statement.
Of much greater im-
drain the member banks in New York
eral Reserve Bank and borrow
cial operation that it may be conducted without disturb-
another.
to
markets,
money
disorganization
of
and
business.
consequently,
Of
I
this
causing
should
speak particularly from the standpoint of
like
a
to
Federal
the
Sometimes other
to recoup tlieir reserves.
the last loan,
gold in
market..
payment
York
is
the
From it radiate the
an
country's
central
market.
money
principal currents of credit,
accurate view of the New York position
that
so
is illuminat-
ing as to the whole country.
of the Reserve
ing, I would
bank
say
reserves
Country.
In
System in relation to Government financ-
a
that the
and
or
reserve
bank keep the books of
.Government credits for the entire
banking
sense
they
the general ledger.
run
the Federal
a
period of two weeks, and in addition received
in
gold
of
certain
20th.
matter,
so
that you may judge in
because the confidence that is
understanding of, and belief in,
our
based
upon
banking system at
this time is essential to success—Mthout it
we
shall fail
—with it, we must succeed.
country
may
be said
roughly
spond to the volume of the country's business.
ness
to
like proportion.
takes
place,
of this
past few years.
formula, take
When the
same
our own
war
period of disturbed business,
orders, and at the
some-
As business declines, liquidation
bank loans and deposits go down
proportion of reserve to deposits increases.
tration
corro-
As busi-
increases, bank loans and deposits increase in
what
large number
reserves
As
and
an
the
illus-
experience in the
broke out, after a short
we
were
flooded with
time flooded with gold.
war
Business
were
was
offset.
A further
means
of relieving the loss is to offset it by
transfers of Government
deposits from these sections of
the country which have drawn
their
own
so
have
reserves
heavily
been
on
New York
increased
These transfers
to
an
accom-
are
plished by telegraph through the Gold Settlement Fund,
and start currents flowing in the opposite direction, so
that the movements between New York
other Federal
of the
and each
districts largely offset each
reserve
leaving only net amounts to he transferred.
The amount of banking Accommodation required in
any
well-organized
a
Their
immediately built up and, to that extent, the drain
amount unnecessarily large.
that you should have the facts
obligations
All of this gold came to the Federal Reserve Bank
of New York, but was for the credit of
judge whether they do it well
this
international
amounting to over $50,000,000 which matured on June
that
not, and it is desirable
at the time of
Reserve Bank of New York
Present conditions afford the first
opportunity for you to
or
also be employed
For example,
of New York banking institutions.
Were I asked to state in the fewest words the functions
can
the Fed-
in one form or
money
means
To meet this
come to
purchased from the British Government $120,000,000 of
Reserve Bank of New York and of the New York money
New
reserve
the wide fluctuation in excess reserves shown by
portance is the problem of so arranging this huge finan-
ance
their
balance at the Federal Reserve Bank of New York and
bonds, keeping proper records of their issue and making
however, the most important part of the
Settle-
This results in
deliveries is not,
Government's financial operations.
Banks
the, subscriptions in their respective localities.
located outside of New York City, practically all of which
total of 8,782,000 pieces, which
would
To
on
physical
enormous
for
(the hanks) will be called up to make the payment
they
complaint as has arisen regarding deliveries of
other,
>
Still another method has been provided for achieving
the desired result with
eral
reserve
bank
a
minimum of delay: Every Fed-
has adopted
a
resolution
authorizing
its officers to rediscount its portfolio with any other Fed-
eral reserve bank.
This procedure is authorized by Sec-
tion 11 of the Reserve Act, which gives the Federal Reserve
the
Board, upon the affirmative vote of five members,
power
to
require such
rediscounts,
the Reserve Board to fix the rates.
to be in the nature of
a
and
authorizes
At first this appears
borrowing operation, but in point
of fact it is really not so
at all.
The
Federal
reserve
BANKING
bank,
in
this
New
case
loses its
York, which
reserves
SECTION.
103
the advances which
they have received from the Federal
through the Gold Settlement Fund, is usually simply pay¬
Reserve Bank of New
ing out
It
which
has
banks
the
the other
to
been
New
lrork
moved
of
amount
it
those
can
of
due
bank
redis-
considerable amount of
and
banks
reserve
sufficient
becomes
which
banks
to
the
impair
in that
case
correspondingly
are
instead of settling
Expressed differently
Settlement Fund with
through the Gold
would
York
in
members
simply turn over its portfolio in part
reserve
strengthened.
we
the
position of the Federal Reserve Bank of New
reserve
balances
money
member
its own
of
the New
other
discounts
these
York, then
use
by
the
to
by
accounts
If any
paper.
it
the reserve
depleted by these drafts from
are
reserve
restored
are
is
reserves
to
The
their
counting
the
deposited with
whose accounts
interior.
banks
reserve
gold,
settle our debit balances by
the
out of our portfolio, apportioning it with
paper
regard to the reserve position of each of the other
This plan for
banks.
reserve
speedy and almost auto¬
put into opera¬
matic transfers of credit has not yet been
tion, though in the future it may become a resource of
then
can
York, which builds
turn
up
its reserve.
reserve
other
to
repay
banks any
which it previously might have delivered to them
paper
if
in
rediscount
serve
from
the
transactions
banks.
place between
reversed and canceled
disbursements
banks have
of
as
a
result of the ulti¬
Government.
the
The
strength.
>
j
explanation seems necessary
This
They have provided the machinery
temporary advances.
great mass of credits rapidly from one part of
to move a
the country to
another and back again.
In a sense tlie
placing of these huge Government loans is like moving
a
must
faster.
move
make' it
that is
These
large Government borrowings
to speed
necessary
up
the credit machine, and
exactly what the Reserve System is doing.
The
figures
the
of
Gold
Settlement Fund
illustrates
what is being done:
Gross
Clearings,
3 months,
ending June 30,
1916
Clearings,
3 months,
ending June 30,
1917......
832,299,000
$
5,101,317,000
1916
Paid:
1917
the
expressly
System
Reserve
regard to just such a situation, is simply being exercised
emergency,
effective
the
of
though
as
twelve reserve banks in
and
time of
that their combined strength may be as
so
they
were
instead
bank
one
of
twelve.
To
to
the next step in these
chronology;
our
after the subscriptions are closed, is
financial operations,
payment into the reserve banks by the bank¬
their actual
The preliminary read¬
ing institutions of the country.
justment of credit to enable them to do so,, you
to
the Government on the books
Where actual payments are made, the
constructively.
reserve
at
banks, acting as fiscal agents of the Government,
once
redeposit these payments with the national arid
constructive, it"simply means that the bank originally
(either, for itself or its customers)
subscribing
Government
to
Where the payment
they originate.
where
banks
state
is
of the re¬
banks, in some cases actually, in other cases only
serve
•
will ob¬
The payments as made
has already taken place.
credited
are
its
its
hank,
with
books
merely credits the Government on
amount
the
the
furnished
stage
for the
securities, instead of making a, remittance
reserve
viously
this
to
be
remitted, having pre¬
with collateral.
Government
the Government has
At
hundreds, and possibly
thousands, of accounts on the books or banks throughout
It is now in position to make disbursements
the country.
either from its own
But
nations.
purchases or for loans to the allied
these
as
payments
made in New York at the
deposits
shift
and
them through
Fund to New York.
,
Then
made in what we may
a
new
the Gold
be
New
York
through
Settlement
set of entries must be
call the general ledger.
posits in other districts are drawn
to
principally
must
present time, it becomes neces¬
for the reserve banks gradually to withdraw these
sary
42,994,000
219,263,000
28,723,000
217,648,000
$93,473,000
$512,430,000
,
Total
But
think
I
I
interested
more
am
in
the
Gold
The de¬
down and remitted
Settlement
Fund.
As
reduce the reserves of the banks that hold the
this may
a
still
to
their
Government loans,
of
loss
nent
Government, has resulted in
the banks of the interior.
when
some
the
last
extent,
loan
was
York
is
a
small
being
as
done to
a
result
As these funds
from the interior
reserve
are
cer¬
withdrawn
banks
they are
immediately disbursed by the Government in New York
and
increase the
deposits and
banks generally.
reserves
of the New York
The New York banks can then
repay
perma¬
superficially to be well grounded, but the effect will
pear
If it were so, that section of the coun¬
not,be permanent.
suffered
try which
suffer
a
permanent loss of deposits would
permanently a corresponding contraction of sav¬
ings realized from its productive capacity, whether it was
in manufactured
or
of
goods, foodstuffs, the products of mines
This great credit fund being
forests, or what not.
expended by the Government, with the exception of the
pay
is
of soldiers abroad and of negligible purchases abroad,
in this country
being expended
in
the. purchase of
materials of great variety, and the amounts
allies
almost entirely
are
that
means
all sections
in
loaned to our
It
being spent here as well.
of the country these credits
inevitably move back to their points of origin, di¬
must
rectly or indirectly through Government purchases.
New
ships, oil and coal, and products of mills, mines and for¬
ests in every
part of the country, now go to the Govern¬
and each pulls back a share of this
ment,
Even those sections which do not
ment contracts
materials
either
of
of
kinds
in
goods
which
must
These movements,
which
are
one
leave
a
this
locality for loans to the Gov¬
the amount which that locality
what it produces.
that
our
agricultural products,
of the year.
In the interval, withdrawals
credits from those sections
vacuum
the year
not reach, it means
of the chief instrumentalities for bringing
sections where
for
difficult to exactly trace
readjustment, are in the main marketed at one
short season
bank
a
replaced
and saving have been arrested, since the
admitted
be
or
but the result is inevitable, and in those
of the profits on
about this
of
be supplied
where this movement does
that production
must
part of the country
The intricate commerce of the coun¬
try is so interwoven that it is
It
one
demands for raw materials or, create
from other sections.
sections
great fund.
directly receive Govern¬
indirectly receive the benefit. Purchases of
various
develop
vacuum
way
deposits now arising from sales of
tificates of indebtedness.
New
and
in
though very moderately, today
of withdrawals of
to
placed,
done
a
The. fears many bankers have
saves out
was
of
expressed to me on this score would in some sections ap¬
the paper
This
withdrawal
deposits, and consequently of reserves, by
ernment is measured by
reserves.
the
proceeds to New York and their disbursement in
amount subscribed in any
for them to the extent necessary to make good
are
you
stage of this operation.
though at this point the ultimate effect of
banks of those districts must stand prepared to discount
reduced
assuming that
later
It appears as
Government deposits throughout the country, the reserve
the
in
correct
subscriptions
New York by the
return
serve,
May
'The
whole.
provides for the co-operative use of reserves
facilities
credit
member banks as a
of the
the benefit
for
$ 75,519,000
April
statute and very wisely provided with
authorized by the
statute
$21,756,000
June
of
function
normal
the
.
When we have a large crop, the credit machinery
crop.
Balance
to make clear that
reserve
stepped into the breach simply to make some
Gross
vast
re¬
preliminary withdrawals from New York will
have been
mate
taken
had
Gradually the whole set of entries arising
production and marketing are continuous
around.
credit
of the country will
somewhat longer than in manufacturing
But when crops are moved and paid
will
move
back
inevitably
to
the
agri-
BANKERS'
104
CONVENTION.
their
cultural sections so long as profitable crops are produced
1
tbere.
refer
I
this particularly
to
of the fears which
some
the Government in placing the next loan.
the
banks,
reserve
marketing of
the
that
on
In
and emphatically because
bankers entertain
which
induce them to withhold their best efforts from
of assurance
The last work
point, very properly, must
by
bridged
banks.
reasonable
the
at
banks
reserve
break
of
a
share of
pay a
system will
of
our
banking
new
banks
reserve
themselves,
fear
I
is required, and that
banks should
serve
in
serves
loans
of strain,
other cause.
these matters
that the
it
little
government
whether
banks
will
see
reasonably short time and which
a
Congress has wisely fixed at ninety days and
I think I may use
longer.
no
the experience of the Federal Reserve
Bank of New York to illustrate this
point.
On the first of
The history of the financial opera¬
government in the Civil War is entirely
justify
the policy
being
Within
pursued.
months of the outbreak of
suspended specie payment.
our
Civil
Our govern¬
borrowing money from the banks in 1861 at
was
for bonds
expansion which they afford to our banking
which mature within
war
exam¬
In 1862
money.
basis produced a value of about 96 per cent of par
to
portfolio containing self-liquidating bills and loans
a
of
Europe for
the government placed its loans at rates which on a gold
ized
system is that temporary expansion which is represented
by
principle
the disastrous expedient of issuing fiat
by
by domestic difficulties,
reserve
fundamental
do not need to turn to
than six
banks
the Boer War, demonstrate, by the
as
this
ruinous rates of interest, and only too soon was driven to
The exercise of self-control in
that the
means
to
our
ment
or
occasioned
our own
more
War
we
minimum of diffi¬
a
The records of the British
Napoleonic Wars, the Crimean War
this subject.
on
adequate
The re¬
tie up their re¬
for the
financing,
government
by any
or
be expected to
kind
one
But
tions of
Their function is to make these temporary
during periods
and
Only
is self-control.
financing
permanent
anybody else.
war
not
ples
heard
intention to attempt
arbitrary control of these money matters.
of control
have
may
you
disclosed,
finance.
Speaking of these matters from the standpoint of the
the
in
recently
even so
mistakes
be so important to every citizen.
careless discussion of their possible
finance
bond interest, to
pay
will have
war expenses,
culty in borrowing money.
They
Government
use
any
impose taxes at the out¬
heavy enough to
war
and
when this
You will then realize ,that
rapidly amortize bond issues when peace comes, and to
arise in
history
hundred and fifty
one
of financial operations in war time of certain Euro¬
expect to be used, and no time like the present will ever
our
On this subject his¬
The records of the British
money.
minister who has the courage to
reserve
for.
are
borrowing
pean governments.
reserves must be
accommodation
That is what the
few words in regard to
a
have, the record of the last
years
for during the interval between the
financing the Government,
in
I
as
from
come
conclusion, I wish to say
tory
assisting
agricultural sections must both finance the |farmers
and assist in
behind the government
resources
the Administration's financial policy.
might
harvest and the next, when banks in
one
energies and their
in the conduct of the war.
bearing high rates of interest.
from
duced
on
loans
placed by the government in 1863 pro¬
gold basis
a
value, and in 1864
.
low
as
low
as
in 1862 were but
in
as
64%
as
41^
as
On the other hand, the clear
:
value
The funds real¬
war
per
cent,
of par
cent.
per
from taxes
revenues
$52,000,000; in 1863, $113,000,000, where¬
1866, after the close of the war, the revenue legisla¬
tion then in force
produced the
enormous
total for those
June, the discounts and loans of that bank, all maturing
days of $558,000,000.
within
support the government's credit early in the war by ade¬
ninety days, amounted to $37,000,000 and its in¬
It is
obvious
that the failure to
vestments, which included $20,000,000 of short term cer¬
quate tax revenues undoubtedly
tificates of the government, amounted to
unfortunate later indulgence in every variety of unsound
about
that
tioned
we
time the
began to
interior drafts which
have
I
At-
men¬
in, and during the month of June
come
banks
that short
$550,000,000.
aggregating about
period
discounts
our
During
from $37,000,000
rose
June 1 to $252,000,000 on June 19.
on
Of this $252,000,000 of
discounts,
within
15
30
days,
19,000,000
29.000,000 matured within 60 days and
$
31,000,000
matured
matured
within
90
;
In other words,
in two months
we
liquidated $190,000,000 of paper taken from member banks
practically
September 19
disturbance to the money market.
no
our
On
total discounts amounted to $87,000,000,
as
the
compare
to be almost
of
some
for the
reason
which
have
present
tax
program
with
Their dissimilarity is so striking
startling, and is
auguries for the
is not
success
one
of the most hopeful
bur whole
of
financial
Personally, I rejoice that the officers of
face the criticism
under¬
our gov¬
on
the
one
the other hand of those radicals who think it
on
heavy enough.
Not enough taxes
credit, too much taxes
comes
is
the
ducement
to
production.
means
declining
declining industries.
means
only danger in exacting heavy taxes
on
The
profits and in¬
danger of not allowing sufficient profit in¬
the
I
industries
of
the
country to stimulate
confidently believe that
our
country can
all the taxes required to maintain its credit and to
pay
which,
us
these past experiences.
heavy;
days'
000,000 without any increase in rates being employed to
force the reduction.
the effects of
one
hand of those who believe the program of taxation is too
By August 15, our discounts had been reduced to $62,-
of
let
was
steps for nearly fifty years.
ernment have the courage to
days,
within
$
$
with
Now
expedient,
our
taking.
$173,000,000 matured
.
financial
dogged
obliged to settle debit balances to the interior
were
reserve
$29,000,000.
.
support all the borrowings needed for the period of the
$29,000,000
15
days,
within
30
days,
matured
within
60
days.
$21,000,-000
Our
within
matured
$20,000,000
r
matured
$17,000,000
matured
within
90
days.
investments
totaled
$8,900,000,
war, vy it bout
crippling its vital industries, and that those
who
calamity simply because they don't want to
,
pay
of
which
only
now cry
heavy taxes will
error.
But
our
some
day see and acknowledge their
Congress must be careful not to destroy
$1,300,000 consisted of long-time bonds of the government,
the
purchased
which must expand to meet War
under
statutory
$2,600,000 short-term U.
provisions
•
this
With
lis
on
liquidation
and note liabilities.
tember 14 held
reserve
With this
wrong?
our
and
'
•
•
automatically
*
accomplished,
per cent,
of
The whole Reserve
our
it
reserve,
net deposit
System
on
Sep¬
the liabilities
magnificent foundation
banking
There is
no
of the
upon
transactions,
whole
system.
which to rest
how
can
things
our
go
occasion for timidity on the part of
bankers in putting the full weight of their influence,
income
for. plants
war
$1,415,000,000 of cash, practically all gold,
against
government's
Act,
September 19 with $658,000,000 of
practically all gold, being S9
as
the
S. Treasury certificates of indebt¬
edness.
leaves
of
sources
and
which
produce
inventories
which may
ceases, and yet they must be built.
income will retard
Those of
us
new
motive behind
this great nation.
the
war
it
But
be useless when
To take all their
will
our
war
be
an
boys to France
is.
Our part
simply because
quately equipped.
our
be¬
boys and lose
financial
army
providing
is inade¬
I am convinced that the only impor¬
tant weakness in our financial
State bank
are
in it and
imperishable glory for
we must not lose our
for lack of money, nor must we fail in
the money
Industries
construction.
who have sent
ginning to realize what the
the
taxes.
conditions, need earnings
membership
organization is the lack of
in the Federal
Reserve System.
BANKING
One-half of
financial army is equipped with
our
SECTION.
modern
machinery by membership in the system.
front without
The other half,
equally patriotic, is ineffectively armed.
You will recall
united.
are
men
days of the
they must
when
large numbers
sent to the
were
Soldiers in the
By Gael
I
think
I
can
safely
that
say
I
Vbooman, Assistant
shall
not
make
that does
not admit of overstatement.
to exaggerate the
and
as
hour in
our
history.
way
Not
as
a
hope to feed ourselves, but
tious,
for
course,
of
as one
a
able
war
.
starving ourselves, but millions of
This
fellow
our
may
to stand
by
real foe.
our
our
allies in
While
we are
even
a
hand-to-hand struggle with an
of
illegitimate
were
Evidently
even
us
opportunity at home to show
na-
officials who have drawn down upon themselves venomous
abuse for having dared to insist
on
gitimate
we are
war
you
is to be won, we shall havri to put several
you,
the field:
The army
furrows, and the women's
" Sammies "
of
a
in
the
rampart for free gov-
army
of food conservers, beat-
ing back the flank attacks and the
in
regard to the splendid work that has been done by your
agricultural commission, but I can at least tell
in
eminent and free, men ;^the army of food producers in the
Of course
tell
free
war
profits.
war
If this
glad to be able to say that the bankers of America
can
keeping this
from any taine of graft, extortion, or other forms of ille-
best
trenches, making of their breasts
there is nothing new that I, an outsider,
self-sacrifice, and
courage,
this enemy of all the world.
am
en-
patriotic devotion fighting side by side with those Federal
than this great
loyally doing their share in this great fight.
red-
to whom the gods have not vouchsafed the
armies
I
loyal,
this great nation is not
fight of democracy against autocracy—fhe fight against
are
while
profits,
rushing eagerly forward to sac-
rifice money, ambition, and even life itself, upon the altar
Those of
not be
our
strictly military way,
a
fighting another fight that is harder
in
distinction of service in the trenches, evidently will find
men are.
doing
arena
tirely free from tories, junkers and disloyal reactionaries,
arch-enemy of all mankind, this dread mother of
pestilence, is
millions
of country.
always
can
We
and
for Democracy
blooded Americans
seen
sisterhood of
we are face to face with Famine.
bank
boys,
our
intent only upon extorting from the Government despic-
us—and
we
State
you
to
people
of military operations—but we are
people, of
happen
home victorious.
come
forced into the
face to face also with War's most dreadful
handmaiden,
Famine.
with
rest
shall
of the Navy and the Chairman of the Shipping Board
one
history, if not the most fateful hour in all
the
what
fail of
us
only enjoy if we
organization of unpatriotic, selfish, sodden steel magnates,
transcending anything that the world has
hitherto in
indeed
may
Don't let
we can
possible
we as a
concerns
ammunition.
Secretary of Agriculture, Washington, D. C,
This is the most momentous
It is not merely war that
scale
on a
gravity of the crisis that
world-power face.
a
It is not
It
determine
to
JVar
any
exaggerated statements here today—for my theme is
arms and
duty for iack of the strength
our
the disastrous results to the Russian armies in the
early
war,
105
rear
attacks of
world-old camp-follower of war—famine; and
as a
army
of
civilians
in
the
business
that
patriot
political
and
a
world,
representative of the Federal Department of Agriculture,
lighting against disloyal greed, unpatriotic partisanship,,
how
perverted personal ambition, and economic treason to the
we
value the constructive
the
work
commission is
doing for agriculture, and thus for the country a.s a whole.
When that commission
betterment.
complisliing
There
is
of
way
our
honor, while
that
shall watch
has
the
we
,
agriculture through its
prosecution of your campaign for better farming.
Your work for
despicable scramble for illegit-'
steel and coal,
on
munitions and
This degradation must not come,
se-
immortal roll of honor.
The nation galls to-day for an
equal number of volunteers to fight in the business world,
and at the ballot box, to make the conduct of this war as
-
clean and patriotic, as heroic and self-sacrificing, at home
it is in the Frenches of France and Flanders.
These boys are rich with a wealth in comparison with
which the treasures of the Rand are as dust and ashes,
lurking over the skyline of the world.
is
typical of the splendid service that the business
or
this country, as a class, are rendering to their country
in her hour of extreme need.
I dare
fore have the business men of a
It is
aver
a
work that
that
men
never
be-
nation shown such pa--
triotism as they have shown in the United States during
the
a
Men of America!
on
significance, now" that this ghastly specter of famine
vital
an
food.
profits
very
is
,
war
as
agricultural betterment becomes of
gaining for themselves
lective draft have had their names written on the nation's
We
be of any assistance in the
are
imperishable renown, fighting
Ten million of the flower of American manhood by the
typically American work,
of that work with the keenest
can
an
imate
interest, and shall always be glad to co-operate with your
commission wherever
boys in khaki
and dying triumphantly in the trenches, that country will
econrnic
typically American possibilities.
progress
our
be disgraced at home by
Arid when the American Bankers' Association
local representatives it began a
of civilian patriots be not organized to stand
and for their country
This is fundamentally an agrieul-
Agriculture is the mudsill of
'
an army
behind the President and fight this great fight for business
ac-
through the fostering of a permanent,
went to work to foster scientific
one
If
for the material welfare of this country
turahcountry.
and
possible
no
more
scientific agriculture.
structure.
Republic.
dozen years
a
than
whole
as .a
established half
clear down to rock bottom in the matter of
ago, you got
economic
was
past three months.
Instead of regarding the
opportunity to extort illegitimate
dazed
and
distracted
Government,
war
many
war as
profits from
of
them
a
have
Life offers them unlimited credit—youth with its years to
draw upon, health with its glow and power, hope with its
lure, dreams with their unledgered treasures, love that is
the
crown
of all
these.
The very
wine of life is theirs,
They have every-
in a cup; yet they put the cup aside.
as
thing; yet they offer all.
Gentlemen, do you get that?
home,
All!!!!
We who stay at
though we were to sacrifice to the very uttermost,
though we were to say not merely 10, or 20, but even 100
offered not only their services but their enormous business
per
organizations and properties to the Government, on any
country,
conditions it might see fit to impose.
humblest private in khaki who gives his lifeblood to stain
This is
a
splendid
and thrilling manifestation of the real American spirit.
Unfortunately, however, there have been exceptions to
this
rule.
Only
recently
we
have
seen
the
Secretary
cent, of our material wealth upon the altar of our
can
never
hope
to give as
much
the sodden soil of Flanders or Champagne.
as
has
the
For that boy
is richer than the Rockefellers, or than the house of Morgan,
richer than any or all of the kings of world finance,
Can
who offer everything is the
men
must
atism
ism
called
this is the only
of our
the patriotism
as
fighting in the trenches, is not worthy to
only question is how soon our
the
'
lower motive than that of the man who
not
who allows personal
man
civic crusade for national decency and
worthy to live under the flag that floated over
of the Revolution,
the heroes
and
ton
floats over those boys of our own
lives
are
free America may
hake his
sacrifice of greed and partisanship, a
and the free institutions
to furnish bread to
sacrifice
well
who has within him
man
and to
of the world from the military
to
ages
to-day
with them in this immortal crusade to make the
"safe
peace upon
.'pV
the
dier
of
the
fails
who
citizen
Every
to
the
par¬
President
leading not only a war of national
is
achieve
of
Now our chance
The greatest crusade the world has ever seen,
greatest cause for which a free people ever drew
the
form themselves into
gain the ascendency and trans¬
self-governing nations, this war can
From every side voices are
brought to an abrupt end.
Hun¬
heard, urging the masses of Germany, Austria and
We have
hearts as
search
given to understand that, as soon as
have been
the forces of liberalism
gary
have all
We
life.
great minds and souls of other days.
pure as ever were
The Central
defense, but a world crusade for democracy.
be
in
success
entered this crusade with hands as clean and
V.:.'v v'' parasite, '.v-/r-
Powers
commonplace, above
the smug and
conventional
sword, calls upon us to sacrifice and to achieve.
ticipate in this patriotic movement is a slacker and a
Our
rise above
of
has come.
reconstruction is a civic sol¬
and political
democracy.
and
level
something that would make us the spiritual kindred
business and industry is going to be raised to a higher
standard.
Every patriot who participates in this great
work of social
and good men of
the desire to emulate
hoped that some time it might fall to our lot to
All
going to mean to our nation a rebirth.
There is not one of us, I take it, who as
humanity.
past and been thrilled with
them
permanent
establish a
to
just and self-governing foundations.
This war is
■
democracy,"
for
every
spark of devotion to principle
a
child has not read stories of the great
a
world
compassion of
patriotism but to the imagination and
institutions
Serbia?
enough to appeal not only to the
task great
a
.
despotism of the Hun and the Turk, has his chance
join
marks¬
Prussia, and Bavaria, and Austria, as
to stricken Poland and devastated
as
This is
fighting in France to protect our free
are
Would it not be a fit¬
manship of our naval gunners, if, after the war, we were
countryman of the boys
Every man who is fit to be the
of
ultimately the starv¬
allies, but with a view to feeding
ting thing, a thing as typically American as the
profits from
opportunity to extort illegitimate war
merely with a
feeding ourselves, our armies and the armies
to
ing millions of the Central Powers.
too old to enlist in this home-
country or from fellow countrymen.
who
our
There is no man too old to
sacrifice at the shop, the bank, the farm, the
a
I like to think that we are engaged in
great food production campaign, not
this
that they are too old to
than
wheat with
rather than a
shall win this war is a positive,
we
negative force.
to die that a
people of any nation, that
people, and that tlie flood of corn and
a
which
flesh and blood whose
national honor.
our
ballot-box,
of the
with
view
There is no man
enlist.
guard of
Washing¬
live.
Every day we hear men regret
glad that we are in this war with no
quarrel is with a caste and a principle, rather
our
anything save only.freedom
dearer to us than
played it will be seen to be a bread card;
bitterness in our hearts for the
and that to-day
honor, but who to-day are preparing
and
militant
have
In this war of liberation we hold the trump,
food.
I think we are all
self-respect, is un¬
triumph shall come.
I have said, this is a food war now—and we
as
and when it is
interest, ambition, or partisan
prejudice to keep him from participating in this
.
the
Any
red-blooded, loyal, hundred-per-eent. American.
a
For,
offers his life is
possible short cut to peace.
event, victory is as sure as to-morrow's sun—
In any
be
Any man who is actuated by a
patriot at all.
a
fiber
the same
of
not
is
first line,
continuance of
So far as the human eye can see,
battles and slaughter.
whose patriot¬
man
triumph in Ger-
without the necessity for a further
many
standard by which patrithe
and
measured
be
three-fourths of the
human race is that liberalism thus may
of these
President Wilson has said, the patriotism
The prayer on the
lips and the hope in the hearts of
youth upon the altar of Freedom.
As
Ilapsburgs what the Russians
recently did with the Romanoffs.
so
he has sacrificed his
liquidate—for
to
hope
ever
the Hohenzollerns and the
Street
and lie has laid upon us an obligation that all Wall
(
CONVENTION.
BANKERS'
106
to rise in splendid insurrection, in order to do with
the
for
has come to do
some
those of knight of old going forth to
Your opportunity and mine
Holy Grail.
something eternally worth while—to make
sacrifice for high,
spiritual ends.
Let us each do his
part promptly and with a solemn sense of the
of what
we
to us
service to
like of which may never
the cause of human freedom the
come
significance
do, for this is an opportunity for
again.,
v.j;
Business in War Times
G. M. Reynolds, President of the Continental &
By
Some
one
things
said
puffed
up
has
to
over
information.
tion.
and
I
I
said
them,
Now,
but
because
the
that
you
likes to have nice
everyone
them,
my
appreciate
assure
that
of
and
should
they
should
they
have
get
inside
friends, I have inside informa¬
generosity
it is
of
introduction
the
privilege
a
as
well
as
a
As I look out
pleasure for me to meet you here today.
over
not
this vast audience I feel somewhat in
a
reminiscent
mood, for there are today within the sound of my voice
probably more people in this audience than
members of this Association
years
ago
American
when
I attended
that
Convention.
there
were
There
at
there were
New
an
and
Orleans.
approximate
when
If
I
I reflect
mem¬
upon
the fact that out of that beginning has grown this mag¬
\
nificent
American
Bankers
Association
with
its nearly
eighteen thousand members, and with an attendance at
the
convention
and
five
ranging
thousand, I
most influential and
in the world.
am
twenty-five
between
burglars,
the greatest organization of its
I know your
I
eye
my
am
do
very
the
on
this
to
had visits twice from
take
to
any
with
chances
(Laughter.)
particular time.
or
I say this for the reason
news
items
which
were
the West announcing the date upon
Convention
American
hold
it instead.
dispatches
throughout
the
propose
glad indeed that this Convention has been
called at this
that
not
kind
President rather better than,
time-piece, but will turn the clock where I can
my own
keep
I
hundred
to believe that it is the
prone
did Mayor Bacharach, and, having
twenty-seven
three hundred delegates
was
bership of fourteen hundred,
or
first convention of the
my
Association
Bankers
remember correctly,
at
twenty-six
Commercial National Bank of Chicago.
be
would
Bankers
what they
held
stated
that,
sent
which
after
all,
Association officials had decided
were
to call
a
War Convention, the
BANKING
inference being that there had been
whether
this
not
or
Convention
question
some
would
be
held
as
SECTION.
to
he
this
at
but
called
I
this
at
thermore,
this
there has been
that
say
I
any discussion of this
glad
am
this
of
city last week
the
fact
that
War
a
Now, there
to
are
that
few
a
has
been
not
right,
primarily for profit,
things beyond that, and
anything
is
the
that
fare; and I
liar
so
foremost
pertains
and
I
as
public
to
While
there
we
are
his
good
do
compliment to
said
of
of
him
duty
man
win
to
The
country
the
the
if
stand
we
who
and
honor
man
a
will
the
back
there is
the
are many
almost
to
can
uniform.
to
his
knows
help
nothing of rank
that is
the
towards
necessary,
I think
between
these
gentlemen, if
in
which
I
can
doing the
of
or
do
wear
commis¬
a
have
of
me
of
this
country
two
industry
and
that
the
call
banker
single
doeS
not
patritoic
as
the
are
banker
I
and
have
place,
as
produces
trial
not
his
now
only does in
what
more
bankers,
that
which
crop.
country;
could
feel
not
well
that
did
the
bankers
se¬
these
closing of
do?
They
did
out
their
friends
at
inconspicuous
them,
and
they
organization
and
upon
until
market
a
Exchange
further
any means.
the burden and the exigency of their
certain
a
not
was
and
con¬
situation
cooperation
extent,
open,
that
later
That
had to contend with,
was a
011
though the
even
they carried
them
through until the Stock Exchange
on
finally opened.
to
carried
was
big problem that the bankers
and in my discussion today I pro¬
while not intending to take much of your time—
pose,
to stick very largely to the discussion of the
propose
attitude of the bankers in this
to
war.
his
help
you
is
who
being
the
say,
other
if
I
truism, namely,
cooperation
with
who
man
is
the first
to
finance
is
working in the
raised
and
man
sent
of
gold
our
raising of hundreds
funds.
eWliat
for?
tions of this country abroad,
who
indus¬
abroad;
farmer when he har¬
You have to help to finance him
in
several
were
England
where
we
they put
fund
To
which
were
ninety days
hundred
France
and
million
then due, and
or
four months.
raised
obliga¬
extremity
abroad,
and
money
at the start, and this gold
time
that
at
confidence
of
countries
they needed their
some pressure on us
when
the
assure
dollars
other
and
debtors,
were
was
turbed,
con¬
were
of millions
friends in New York to meet the obliga¬
would be due within the next
when
in
we
some
when
people
unsettled,
was
dis¬
were
and
were
we
the
which,
largest centres
if
I
million million
one
remember
correctly,
showing that there is in business
pose,
is known
sentiment; the
as
European
creditors
of
mere
tee in New York enabled
situation, and it
was a
4.80—6.00—7.00—5.25.
the
a
on
one
you
They
will
the
country
the
full
one
to
as
asked
to
another
the
the part
hundred
remem¬
was
of
million.
one
Fund.
situa¬
rather
as
themselves
to
Following that,
to
hundred
Now,
the
of only 10
raised; however, the
obligated
contribute,
Cotton
single loan
had
hundred
fund
met
remember correctly,
of
were
known
if I
use,
of that amount of gold
cent,
bankers
not
pur¬
exchange, particularly the telegraphic exchange,
with
we
the
deal that
them to cope with that serious
from
selves
that
serious one, for
ran
furnish
a great
disposal of this Commit¬
tion
per
dollars gold
served
knowledge
America
million dollars of gold was at the
ber the
pending the
could get a supply of the Aldrich-Vreeland
We created that
notes.
fund,
of
directly
the
dollars
ability of
the
was
of
and,
I
as
In
of
with
time that
because he has to do
more,
fronted
problem that the bankers
necessity of issuing Clearing House
so.
emphasize,
a
The second great
confronted with the
upon
do
where,
phases of the business.
secondly, you have to finance the
vests
this
certificates
of human
finger
you
other business
every
the foodstuffs,
army,
in
startled
and
industry,
represented
want
patriotic does, but he does
actively with
War
win
to
of those branches
one
Convention
a
Commerce
of
business,
the
of
tions due, and soon to become due, and in their
busi¬
distribution,
and
commerce
just attended
Government
bankers
of
(nearly as
a
points lies every activity
we
what I believe in my heart to be
can,
of
we were
There
that the two things that com:
you can name a
Chambers
the
lines
Why,
without:
so
class
no
pulse of business, I would like to have
I
Stock
still
I
of
Exchange of New
Declaration
marketble because of the
not
sell
not
put
created
that
^
promote
endeavor. that
the
upon
What
over
through
to
organizations, if efficiency in business is
to
Stock
the
the effect?
collateral,
were
did
dition
neces¬
it
to
contributing not only
success
it seems to
is
war
much
Where did the burden then fall prin¬
fell
as
They got
you
essential
prise the whole category of what must be done
the
to the banker;
goes
compel the sacrifice of the value of those securities.
They
because
bankers of this country.
If successful
man
prices, causing great losses to them—not by
defend
but he does not
contradiction, that there is
in America
par¬
friends, that there have been
before
was
Exchange.
not
entitled to
much in active cooperation and self-denial in
way
the
of this
and
soldier who is
a
country,
here, and
say
more
during which the bankers of this
two
or
It
securities
;
upon
bank counter, in every hamlet
every
serve
He
successful
ness
it
of straps, but he is doing the best he can, and
or
pulse
their fingers upon the pulse of busi¬
measure.
cipally?
our
to
well
see
the
ill physically we go to a physician,
say
had
What
beyond
that the
say
industry and distribution.
as
the closing of the
day
a
I
industry in this country,
are
may
have
Europe.
patriots and soldiers at home,""
city in this country, is
want
to
absolute
which will
business
during the last three years and
I
take
York
coun¬
for hu-
warfare,
an
in
~
There
and
I
and
and
we
times
time
ness;
is well started.
second
activities
makes
assist the
curities
can
are
who
you
branch and phase of this great thing that we
country
spleiidid business organi¬
trenches,
behind
sions,
in
the
war
a
and
a
the
never-ending supply of munitions and supplies
a
following.
best he
is
who
his
I want to tell you, my
many
wel¬
doing; but I want
so
that
war
cartridges, and
bankers, who had hundreds of millions of dollars of
duty
full
the
have
to
trenches
men
there
winning is
of
the
the
are
successful conduct of this
zation
go
words.
representatives
as
in
guns
gentlemen,
final
know
in
commerce
and
because consciousness
our
and
especial
an
doing what we
forward
go
glory that
understand,
sity to its
is
banker
or
long before the
Stripes
and
of
they jeopardize their lives in
to
it
discharge
we
the public
to carry
Stars
that
patriotic,
matter
a
war,
men
is
he
and
in
this
which side
business
uncertain
110
finance the manufacturer
you
Now, when
community in
performed is the greatest reward
endeavor,
consciences
think
not
any
that
well
co¬
only do that, but you finance
but when business is sick the
many
and public
not
ticularly at this time,
able to observe,
am
in
man
try may record their patriotism in
I
and
who sends it abroad, if it goes out of the
and
every
call
interest be¬
110
You
over.
touches
there
here at this time in order that the bankers of the
Personally
themselves
support
So
of
glad that this Convention has assembled
am
lines
the
upon
large number who distribute them.
people in this country who pretend
business
business
banker
transportation
largely
banker
It
people who still profess to believe that bankers
the
The
very
the ammunition
thousand
States.
stuff
country,
in
business do to help win this war? "
can
yond-that of seeing what they can earn.
the
held
was
the United
money-grubbers, and that they have
into
this
the exporter
was
Convention, and the chief topic of the dis¬
are some
believe
are
there
convention of nearly one
a
of the Chambers of
Commerce of
was
Convention
particular time because of that, and fur¬
because
cussion of " What
it.
dependent
operation in helping them to equip their lines to carry
I do not believe
kind,
transports
are
time.
107
obligate
million
I
our¬
dollars,
understand
it,
really made under that fund, yet
BANKERS'
108
We have had some discussion about taxation:
We
have had some discussion about the question of how
much should be paid per annum on our expenses now,
but it is only a matter of discussion. We all believe
that to prevent over-expansion, a goodly share at least
of the profits, war profits and excess war profits should
be paid in taxation to apply on the cost of this war. ,
The only trouble and the only criticism I have to make
is that we have not yet known just what we had to work
to. The American business man quickly adjusts himself to a condition if he knows what that condition is;
and it seems to me to have been a little unfortunate
that we have all this discussion on taxation coming at
the same time that we try to float these large issues of
that the mere fact that a
bankers
assured as
are
we
dis-
had been made to it enabled them to
subscription
CONVENTION.
.
satisfactory manner.
things that have
the business and business men
of the cotton situation in a
pose
Following that, we have had many
done
service
more
to
the bankers, so far
generally, because whatever affects
the whole coun-
public confidence is concerned, affects
as
try
on
we
have
had
then,
we
have had
our
tion.
We
Later
I
and
the
banker, beof
and
of these duties
one
every
I am here to say to Mr. Strong,
obligations.
bonds.
of
the authorities
at
and
Bank,
Reserve
Federal
the
met
have
country
these
with;
to contend
problems
many
splendid manner in which the bankers
of the
cause
had
have
Government bond flota-
happy today to say that I am a
am
the war.
into
entering
our
Since
to
in any
tion of the
people.
*
...
We find ourselves in America
-
cause
have
such
unable
to
we
are
dent Goebel
handle
it. '
is
It
not
it is
standpoint
the
of
country
The
truck
today
All over
into
more
we
It
The railroad have
nieans cooperation all along the line.
but I am told
in the first instances;
use
uphold the dignity of this country, and our cause.
Now, efficiency in business means cooperation.
improving our state roads.
are
automobile are being brought more
the
and
off and go to work in earnest to help to accomplish what
President Wilson is trying to accomplish, namely, to
and
invested
capital
standpoint of necessity to the people.
this
whatever is loaded in the truck at the beginning,
that,
shown that through the appointment of a committee of
or
ninety-seven per cent.
railroad men, who operate with an expenditure of 3 per
by
the railroads, and I
where it is raised,
it
of
what the schedule is to be there will be no complaint,
but every man in this country, whether he be a banker,
or in what line of business he may be, will take his coat
branch of business in this
the largest grand
from
from the
or
day.
speaking
partisan point of view for the railroads, but be-
a
country
and
the schedules on us.
Now, I was told the conference committee had come
to an agreement, and if we kfaow today or tomorrow
Presi-
his address has referred to the railroad
in
only mention it again now, not because I am
cause
of
matter
a
I mentioned it in my talk here the other
situation.
from
be-
abnormally large business that
an
It is a matter of transporting it..
financing it.
I
much handicapped
very
accomplishment of the things we want to do
in the
we
credit and satisfac-
arises, to win this war, to the
that
What do you
think about those changes in the Revenue Bill?" I said,
"Well, that reminds me somewhat of a little girl who
came home from school and said to her mother, she said,
4Mother, I have got to quit school,' she said; 'Why,
dear, why?' 4 It is not any use for me to go any longer,'
she said, 4 I never can learn spelling,' she said, 4 why,
mother, every day they change the words on me.'" And
so it has been with them (laughter)—they have changed
other
necessity
Washington that the bankers intend to meet every
obligation that is imposed upon them
;
-
A man asked me yesterday—he said, "
ninety-six
be handled
finally must
increased efficiency
cent, they have brought about an
Now, the same measure of cooperation
measure of efficiency can be shown in our
try in my way to point out the fact that a part of the
of 26 per cent.
inefficiency of our present system and present conditions,
or
through lack of ability to transport soldiers and supplies
individual and private work, if we get this cooperation
.
rapidly as they should be, was due to the fact that
as
the improvements necessary
of the country.
how the Federal Reserve Banks are going to be able
to keep up with the progress,
to finance the people of this country in all of those war
is the
six
mately
send
our
.
and; as I said before, primarily we are organized for
their munitions and their supplies abroad,
men
the sake of profit, but we are engaged in a problem now
bottoms
per
annum
that is of vastly more importance to all of us than is
take into consideration the small amount '
the question of profit and loss.
tonnage that is available you can see, that that con-
stitutes
one
of
the
greatest
arisen to
have
have.
tliat in this country, with the large expenditures which
situation.
that
Con-
'• Congress is providing for, that I have not heard a single
that
Now,
our
has appropriated approximately a billion dollars
to feel that it is his bounden duty to do all he can to*
read that within
support President Wilson and the Administration in win-
from this time it is contemplated that America
year
.will
ning the war along the lines that they have started our.
and
purpose,
our
the paper I
this morning in
have
million
nine
machinery is'at work,
five
hundred
thousand
tons
of
shipping bottoms available for her use in this war, and
in
trade
world's
the
have
got to meet all
after
.
the
is
war
over.
Now,
we
those problems of business in this
Personally
average
I
rather
am
inclined
to
think
that
the
banker looks at it as if it was his own personal
controversy—and
we
that is not a bad
way
to look at
fected,
endeavor
things
which
to
are
do
to
utmost
our
necessary
to
the
accomplish
solution
of
the
these
problems, they will all be solved. /
I
have
such
know
better
than you
trying to .accomplish,
with
them
and
Republicans,
or
forget
and
and I
what
do
they
are
it is our duty to go along
whether
we
Democrats
are
whether we believe in this policy
or
or
that
an
business
abiding
man
=
to
faith
in
believe
Now,
I
am
sure
that
the
bankers
realize that it is just as necessary
the
that
genius
of
whenever
the
that
to
of
this
country
have these
new
bonds floated, and floated successfully, as it is for them
to keep their banks open, and I am
going to do their part toward it.
problem arises he will meet that problem promptly.
tion to business or that Governmental relation to business.
it.
subject as though we were the one af-
treat' the
American
They
-
policy, or whether we believe in this Governmental rela-
big broad way.
If
Everybody seems
business man criticize the amount.
and
that
already
a
people
It is a strange thing
we
problems
gress
for
We are not an eleemosynary institution,
it a success.
approxi-
slightest doubt
about the bankers doing everything they can to make
to
shipping
of
tons
when you
and
derstand that there is not going to be the
of transporting our soldiers and
He told me that it required
ships available.
of
one
to finance this new loan, and I want Mr. Strong to un-
confronting
supplies to Europe, because of the small tonnage of
I have not the slightest fear of our ability
problems;
Now, I was told the other day by an official at Wash-
our
/
'
Mr. Strong has pointed out very distinctly and clearly,
.
ington that the greatest problem that is now
this country
ourselves!
among
had not allowed the roads sufficient income to make
we
the same
that
of
all
questions
opinion
only,
of partisanship
that
we
sure
that they are
I feel in these days
should be
ought not
to
questions
allow anything
aside from the main chance to stand in our way in the
BANKING
accomplishment of those things
which
SECTION.
have under-
business
Now, what is the duty of the bank?
That is the prob-
lem
that goes to the heart of everyone of us.
our
duty?
give such support
do
five.
as we can
qualify all
that
should
Bank
consistently; and
no
banker
can
say,
must
do all
but
we
to
can
do
must
we
we
this
do
and
what
when
which
can
have
we
time
box, and
we
we say
we
are
have
we
Now,
I
speculative,
am
see
to
to
Federal
can
we
which they will
it
of
the
in
the
right
Reserve
Federal
light—I
Now, if
know
how
go
I
am
in
round the corner and
some
do get it,
come
other way.
you
even
where
center
a
I
know
we
this
grown
how
you
in the back door—it
I feel that I do not stand
people about how to borrow money,
if
need
you
you
it,
you
do get it,
and
don't show it in your state-
that I think the time is coming for
us
fallacy and false notion, and
out in the open and
legitimate
Let
only saying to you in a very frank way,
cooperate
us
come
our
Federal
us.
our
so
Reserve
System,
so
far as we can, it is
duty to cooperate with it, and particularly when by
doing
we are
going to cooperate in the interest of
respective communities.
own
our
that^
We ought to cooperate
and deposit with it, and therefore in
the
to cast aside
.
with
Now it is here, it belongs to
System will
replenish
am
do what is necessary.
gear-
namely,
I
our
•
I am almost inclined to believe that in these times, if
the man who heretofore has been afraid to rediscount,
that
manner
in
enable
us
legitimate, because
and afraid to show it in his statement, that is the need
anybody to expect bankers to ex-
of moral courage to do so, if he goes to the Federal Re-
mean
along lines which are
which smell of either overexpansion, and
speculation and overexpansion
Now, I have been going
serve
;
are
years,
up
Board, he will make a record and an honorable
record for patriotism in the discharge of his duty and
in relation to the business men of his own community,
Now,
iiot a
my
friends, I did not come here with any special
set talk to make to you, preferring rather to talk to you
from
and down the country here
preaching to the bankers that the re-
a
heart a little, as
I have today.
One of the
has been that I did not intend to keep you long,
and I think, I have already taken as much time as I
should do.
conditions; by which I mean that when the neces-
community in which
my
reasons
discounting function was a perfectly legitimate one under
a
officers
to
or
for several
sity of
and
so,
ments.
part of the game at this time.
proper
because
you
that the bankers of this country are going to
sure
to
and
the
security is satisfactory.
because I know when
■
Reserve
go
institution to do
business,
'
which
this
at
takes it in
"No," because
accomplish,
credit to them, or be helpful
tend
say
doing—that is
so
I propose to rediscount when-
We must
throw some sand in the
we
legitimate demand, I
a
to
us
for
induce
here lecturing
larger
do if the people
money
look
can
we
retarding the success of the great thing
it is unreasonable for
I
for
community by
legitimate demand; and when I say the de-
every
mand is
no
that this
think
in the
reserves
meet
demands
can
to believe the
up,
They have done
must do it here.
we
war.
reservoir
a
can
support the legitimate
undertaken
winning of this
be
to
it must not prompt
purposes,
every
we
a
own
to beat it.
question of the fear of showing rediscounts has
;
larger busi-
promote
country put their mind to it.
it in several countries and
all
to
can
yield, and better quality, which
of
Therefore,
promote not only a
all
conserva-
or
of course, with that
it must be conservative, it must be safe.
ness,
vided I
we
we
your
whenever the necessities of my customers require it, pro-
therefore
anything that is not is consistent
We
way
ever it is to the interest of my
What is
We all know that primarily the raising of
foodstuffs is the first essential, and
in
the best
we
taken.
can
109
As I said in the beginning, it is always a
pleasure to me to meet the American Bankers' Associa-
bank is located is for
than the bank fur-
tiori members and I mean socially; but in my relations
nishes, it is perfectly proper for them to rediscount with
to this Association, I feel a good deal like the nigger
that
community to have
their
correspondents
service.
wherever
they
can
get- the
and his religion.
best
you
*
I do.not
could
more money
loan
mean
more
by that, that I believe that because you
experience meeting, this colored man got up and said,
have, it was a proper
said,
but he
said. " I have lied and done everything else that is bad,"
but he says, " Thank God I haven't forgotten my religion
—I have not lost my religion."
[Laughter.] I am that
way with the American Bankers' Association. ;, Whatever
else way happen I have not lost my interest.in the
American Bankers' Association or my love for its mem-
money
than
you
" Yes. I have been a very bad man all my life," he
" I robbed the hen roosts and I stole the pig" ;
thing to rediscount and carry out continuously, because
I
don't, but I have said that even under the old law, I
believe
that
the
bankers
hampered their activities and
retarded their growth and development,
and impaired the
efficiency of business in their respective communities, because
they
were
afraid to show a rediscount.
Now, my friends, we have got to get that out of our
system if we are going to meet
we'fire confronted.
the Federal
it—it
this condition with which
Let me tell you the best thing about
Reserve Bank.
If you are not satisfied with
is to borrow money from it and uphold your own
He was at a meeting, at a revival, and
Well, at this
know they have experience meetings.
.
bers.
I appreciate the honor always to meet mj
friends in
will be my
of this experience.
conventions assembled, and J hope that, it
pleasure to add many years
.
CONVENTION.
BANKERS'
110
"How
>
Mr.
Long?
I came
capacity to
Peter Goebei I feel
somewhat hazy as to my
before you chiefly as a man who made
a
come
like that which I endured in Great Britain two years
study of this war long before the war; as a mam who
and
I
before
come
you
a
as
itself.
.
States that
I had no idea when I arrived in the United
that
idea
no
dressing
ad-
influence and
much
so
honor of
lize that we must conserve every ounce of energy
im-
have the
ever
of
men
many
so
should
I
•
every
I had
pleasure to speak here in Atlantic City last •
the
I
talked about,
In my own profession, which,
as Mr. Goebei told you, is largely that of the production
of newspapers, we had no idea of thrift. In the begin-
had one speech in which the speaker outlined
hing of the war in 1914 our newspapers stood very much
freedom to the world.
During the week, as I have read in the newspaper reports the many admirable speeches made here, you have
had
millions and
and
you
something that
the
I
war.
of
desirous
when
theater of
of them
of
even
we
hope
billions of dollars
will not think
war
that
and
seven
scattered
have
we
Some
half millions of men.
a
in Palestine, some of them in
are
vast
the
over
Britain
The
war
is costing Great
the financial
to nurse
baby, and up to that time we had
of
'
you
as
now,
are,
very
There is
loans made
ter of
fact every
cities.
some
All
workingman
tell
and
subscribe
national
our
the
there
five millions
were
liberally
as
And
loans.
I
subscribers
of
railroad, in the counting houses,
even
on
the ships.
These loans to the
have
some
may
of
through the navies of France*
the
in
Belgium
and in
are
that
that
from
me
horrors
now,
is
to
in
the
war.
ever
care
United
I have
to
see
World
York
investigation
States.
seen
Far
be
it
too much of the
it again;
but
we
enee,
I produced
must
are
in subscriptions to these loans the working people
I
produced
a
that
very
same
great
midst of prosperity, and,
'
Great Britain, have
my
care
no
newspaper,
a
war
in
Great
small
which
You, here in the
success.
to
very
When I got
New York experi-
my
small
far less extent,
we
in
idea of the thrift and the saving
going on in the countries in which the
no
a
and it had a very large sale.
has since had
bene-
in
experiment which I had long desired to try out on
home, having been made wise by
are
•
And I turned the occasion into
somebody's else newspaper:
We have
Joseph
Mr.
away,
the honor to place his
Great Britain,
sides of it, we must realize that if we
New
me
and
Russia.
I know from personal
here
glorify
of it to
look at. both
to get
and
so
of the ablest members
one
passed
newspaper
Wages were never higher in Great Britain than
they
ago
profession—since
The
which
newspaper,
shortly, I may mention that
supporting the
the circulation among the workers is very
ficial.
years
small
the
way
are
to the conclusion that though the evils of war
great
of
the
for twenty-four hours.-
opinion, are beneficial
war
seventeen
our
establishment,
the farms,
an
my
and
armies
on
favor
on
Pulitzer, of New York—did
it,
to
in
will find
you
.'
.
Allies, in
quite apart from the fact that they
come
Speaking
doubt that the Amerias
(Laughter).
scouts
to
of them men working at the forges, in the shops,
many
and
for
no
admirable in the intelligence department of the war.
And the reporters, as I learned today, make excellent
the
of subscriptions
The editorial staffs
rifles.
turn out bullets, shells, or
are
that our last loan exceeded six; billions of dol-
you
lars,
departments of the newspapers are eminently fitted to
mat-
is here, and much of
the money
will
workingmen
our
a
cent advanced is spent in an increase
Liberty bonds, for I have
can
As
way.
You may take
Those engaged in the mechanical
one-half by the war.
who think that these loans
mysterious
will come back in the form
money
on
in
of as much benefit
it roughly that every newspaper staff has been reduced
I have
in Bridgeport, in Bethlehem and in others of
wages
your
economy,
Personally I be-
to the war as the generals themselves.
and that is In respect of the
by the United States to the Allies.
Atlantic
the
newspapers in Great Britain has been
which many of my American
upon
I can speak,
well educated people
found
the
subject
one
friends think
of
of
The wasteful consumption of paper means a reduction
of power, of raw material, and of labor that could be
lieve that the immense saving we have effected in the
Allies.
cross
signs
show
to the world must
utilized for the purposes of the war.
the
to
large advances
if they are to preach
Newspapers,
newspapers.
economy
advanced to the Allies six billions of dollars, and we are
making
That is one of the
that leads to the immense waste in the offices
reasons
that
and
newspapers
own
tains more pages than some other fellow's paper why
he thinks it is the best paper.
We did have
to the time you came into the war and began
up
who
People
success.
and counts up the number of pages, if the paper con-
chiefly hear
thirty-five millions of dollars a day,
so
its
imagine that when a man buys a paper in the morning
engaged in what is known as the Western front,
financial part of the war.
of newspapers that the
greater
'
that it is a fantastic belief among the
larger the paper the
I say
owners
Mesopotamia,
endeavoring to free Belgium and France.
was
when
saying too much on behalf of my country
of them in Africa, and those that you
are
our
ing any great secret of the profession to which I belong
vainglorious or
me
I am not reveal-
where your newspapers stand today.
had done in Great Britain in financing
you
mention
I
sbme
again
to the purpose of winning the war and bringing
told that bankers like lots of figures.
was
available product in order to accomplish the de-
feat of the enemy. We did not realize that most of the
businesses of the ordinary peaceful life can be adapted
portance in their respective localities
week, and
Wre did not reaand
and saving was absolutely essential.
great banks in. one convention, and I
number of your
had
realize that for the successful conduct of war thrift
possible to gather representatives of so vast
it would be
a
business as usual.
There was quite a business
slogan, using those very words, "Business as Usual."
Money was plentiful.
Workingmen who had hardly
ever ridden in an automobile owned them.
We did not
our
who has spent much
man
of the last three years at the war
We thought we would be able to conduct
to democracy.
1908, saying what I thought was building in Europe,
in
We had very little realization of what war meant
ago.
speaking tour of this country in 1898, and again
a
waging of the war.
to the United States in a period very much
necessary to the
flattering introduction given me by Mr.
fill the bill.
I
of capital
must have their share of the vast amount
President, Ladies and Gentlemen:
After the very
made
the United States
By Lord Nortiicliffe, Chairman of the British War Mission to
Britain.
There
are
war
is.
We have
occasional
drop-
pings of bombs near the sea, like here at Atlantic City,
But where the war is they do know about thrift and
about economy.
I took the occasion to bring with
here to-day something that I
am sure
will be
a
me
great sur-
BANKING
prise to many American
the
I
the
of
scene
people
who
that they
war
from
far
so
are
do not quite realize it.
bring a/ copy of a leading and a prominent French
daily
it
It
newspaper.
the size
of many
complete
is
about
(Exhibiting).
Here is
newspapers.
That
is
what
of
part
one-hundredth
of your great
people
those
SECTION.
I
think
also
the
into
Ill
that
belief
those
that
Frenchwoman,
formerly
front
in
food
Germany.
has
for
easy
those in
like
people
Great Britain and in the United States to advise people
it
and
in
will
their
advice;
they
midst.
have
the
The
French
tickets
food
no
countries
neutral
such
no
relating to economy;
they
as
but
today,
of
need
have
they have very few laws
have
they
in
of
many
have
automati¬
has
You
ask
may
Are
me,
does
not
there
that
mean
war?
Well,
is, is weary of it.
That
they
is
of
weary
intention, though, of
any
giving up one single effort to bring the war to a suc¬
conclusion.
cessful
millions
many
that
this
designed
not
see
for
of
with
years
better
in
have noticed
roads and the factories
country,
Great
and
States;
Northwest countries,
worked
is
on
that
be able to
forces
the
of
when
the
Paris and left behind them
Then it
had
Germans
in
been
with
them
preparation
for
the rail¬
lines of that
their
or
strikes in
in
the
That
agents.
of
even
has
were
make
to
much
would
war
be
few
a
going
been
do not
one
going to
are
that
Britain
short
that
and
gandists
but with the intention
That is
tion.
demolition
of
of
.soldier
with
opened
and
I myself remember seeing
that
used
were
for
fire
the
had
known
the
The
pieces
buildings
increasing
things
was
waist.
small
into
of
it is well
there
his
contain
throw
to
these
Indeed,
bullets
around
to
purpose
All
flames.
fore.
bag
a
found
dead German
a
will
that
see
back
they
weakening the Allies
peace,
out
new
a
be
date
on
that
efficient
in
the
Germans
the
will
mark
it
is
their point of view.
of
released
months
be¬
solation:
ten
years
There
was
Germans;
South
is
not
the
seventeen
there is
our
was
with
years
a
but
war
is
between
Great
who
series
for German
of
the
Germans
from
own
war—the
the idea that one
all
these wars,
war
of
behind
my
French
worse.
They are follow¬
are
talk¬
in
the last
That after
is
war
not know
have
sad
three years
things
that
have
I
I have this one con¬
all, as your chairman said to-day,
a
we
are
small
all
We
France which we
things about
many
and
what
seen
the
all
bringing the Allied peoples together.
learned
all
have
of
think
I
proud
We
of France.
nation—the
millions
six
of
Belgians that are still, living under the heel of Prussia
—we
have
with
seen
of
presence
the
what
oppressor.
dignity they
can
We have seen
stand the
that
t
Italy,
the chains that have been placed around her enterprise
for
Poland;
a
for
war
It is
Italy's
Italy against Austria.
a
war
war
is
Now,
single defeat of the Germans will stop
is, in
motives
the
captivity and
Southwest Africa;
it.
many
of
some
find
I
Belgians
goaded for years by Austria, has decided to throw off
Italy.
her
of
fighting
and
the
Great
the recovery of the lost provinces of
great
the
Dutch
was
fighting
are
wars.
and
the
Britain
with
a
of
Austrians
the
war
a
for the relief of Belgium; a war for the
war
elimination
the
whom
ago,
today; the
It
war.
between
war
there
Africa,
Britain
the
did
war
of
some
coordinated.
when
peace
ing about peace and making war.
When
of
enslaved
badly
very
prospect
bringing
ing the most ancient device in history ; they
witnessed
German
even
Their government
doing nothing of the kind.
are
on
previous.
This
They
They
that
is
department
from
one
have
have
notice
you
move
or
they have stolen.
You
German
point of view
believe
them
German department is talking
one
another
very
a
the
many
peace,
prepara¬
give back
to
horrible engine of war.
my
shall
the ground
that
the moment
carefully at
mean
violence..
their
cease
look
you
never
inch from
an
about
I
If
offerings.
peace
of
.were
force
made
that
was
celluloid
that
the
been
bag
of
after
week
obvious that it is surprising that
very
that they have dragged into
careful
most
be
prepare.
accomplishing
they
the
a
propa¬
would
war
not
any
Great
^any intelligent persons should take any notice of those
at
have
so
of
in
belief in
delusions
peace
for
it
The
the
very
nature
pernicious
should
intention
any
be
a
greatly
by
that
world
these
out
with
not
war
must
throw
They
week
the
the
the
spread
short in order that the world
never
that
told
who
maintain
suffered
aero¬
opinion,
my
would
short war.
a
widely
in
frightful
so
women
preparation.
impos¬
utilization
using the means
war
could
We
idea of
was
the
nations
time.
of
by this
war
From
showed
because
was
very
thought that by
invention
the
period
long
realize
of
none
great
very
a
retreating from
the
and
difficult
more
They
whom
They
as war
genius, like the
poisoning
wells.
bank¬
as
short
very
thing
a
houses, for the quick burning of buildings and for the
of
position
a
not1 realize that the
much
war
science
may
for
the
did
longer.
of apparatus and war
machines
years
They
could
one
that
civilized days such
of
up
civilization
lot
a
that
was
conclusion
in these
lofty
men—I
who, at the end of their meeting, came Ao the
ers—men
sible.
so
the
remember
of business
speedily over; that it would be of
strikes here in
that
Germans
won't say that they occupy
I
weeks.
company
may
I saw the real signs of German prepared-!
was
six
to a
I remember the first time after
began when
material.
tie
twenty-five years, and I for
all
in
over
put
rebellions
months
preparation
be
distinguished
a
You
it
extinguish this conflagration for
long period.
It
few
a
careful
for at least
riess.
of
work
is
It
believe
world
Everywhere they have carefully implanted
the
not
Easter.
of those phophecies in Eng¬
Indeed, there were people there who thought the
would
war
The Germans have
propaganda and have settled
years.
the
over
have had
and in India.
rate by
at any
or
try
war
plane, the submarine, the machine gun, would all tend
were
had
telling them that the
of all the inventions of American
Mohammedans in Turkey and as Protestants
as
in Holland.
their
have
with
to
will
have had
you
we
three years
pleasant
more
war
can
we
land.
much
Christmas,
by
had
provide the enemy
to
is
people happy by
over
have
help
it
That
in that part of the line
enemy
you
the telegraph
that
Britain, and that
United
the
of
is restless; you may have
and
know
you
be
We
to
know
I
not
are
all know
we
this
admirable.
Berlin
soldiers
And
tfoat
all
but
wholly
be
from
word
a
opinion
a
vary
around
world
look
completeness that
a
the
is
shake has been planned and
that Argentina
that
it
the
you
Europe,
would
purpose
noticed
If
great earth
only
that
in
people
collapse.
suddenly
may
know
I
served
make
report of
cally adopted themselves to the conditions of war.
the whole world, where the wrar
The Austrian
the Prussians.
as
strengthened the
and
quite
they
it
provisions.
is
have talked
Of course,
that the misfortune in Russia has had two effects.
in
It
us
in appearance, but they have sufficient food; and excel¬
example to the world in self sacrifice, in patience and
thrift.
I
We know that
Frenchman,
every
times.
many
Germany prisoners.
has shown an
large sheet.
very
a
before
war
with
to the
nearly so well fed
was
short
been
great many
all the energy used in the production
which
delude themselves
to
a
I have
lent
every
try
have
exaggerate the physical sufferings of Germany.
have patriotically done in order that they may conserve
of that newspaper,
who
we
humble opinion, preposterous.
for the last ten years.
and
her freedom
seen
here in the United States a peaceful
people and
that
it
is
people have been aroused to the fact
our
essential
state of tyranny
extended.
I
can
assure
And we have
people like your
for the
world's
happiness that the
imposed by Prussia shall not be further
1
you
that
we
from Great Britain, while
BANKERS'
112
magnificent
the
I
that
men
young
in
see
Mr.
affairs,* is
that
one
I
appreciate
keenly
very
which I wish at the outset to express my
ciation.
will
You
not
expect
striking address to which
especially
me,
familiar
have just listened, to speak
we
only
of financial
them in
administration
framework
the
perplexing prob¬
financial
and
provided for
us
policy to
by the, stu¬
There is
pendous events in the midst of which we live.
private undertaking,
gain,
private and personal ambition which can stand
no
melting heat of this
in the face of the
moment
a
private interest, no private
no
You have been told just now how the
appalling crisis.
most
keen-sighted observer over seas appraises the forces
that
are
continuance.
emphasis
world
as
Let
me
I can command that the free nations of the
to discover and
this contest in order
themselves for
armed
have
with such force and
to you
say
of their
the likelihood
estimates
work and
at
lay the foundations of a new world, and
they will not cease their hands until that new world is
found
August 1st, 1914, with
the
even
500
most
years
smoke and the quest
contented,
storm
except
world
growing for
world began.
a new
and
far
At first
mountains.
up
We were a
peace-loving people.
a
across
the
and
seas
This
land
and
could not see how it affected
we
in
us
pained and grieved spectators of the fighting
as
of old
broke
old
and American soil, went
of
prosperous
a
cloud
suddenness that appalled
a
experienced, the
European
on
friends, and as
the
we saw
,
to contest,
doing
the lust of conquest, the
the
desperation
of
despair
fifty years in building, we began to see
France and Great Britain and Belgium and Italy so
down
from
the
silent powerful
this
high mountain
glacier
of
tops
coming
despotism
and
autocracy was trying bit by bit to overwhelm and destroy
the fertile
We
entered
ciples
known to
poses
as
this
We
and for the most
man,
To
well.
save
Belgium?
France and Great Britain?
provinces of Italy
tracted
South
Russia
to
America
stitutions
of
into
her
the clutches
institutions of the United
President, this
the world
have
has
been
forces
on
ever
contests
land
and
war
seen
States
differs
dent, our soldiers can fight
I
and
have
Yes.
the American people lost
Teutons?
of the
Yes.
safe from invasion.
from
every
sea.
is
a
that
All other wrars
governments
This
war
war
using
armed
between peo¬
that
agricultural, industrial, economic, financial, moral
the people
possess,
and you
are
as
truly enlisted
you
Have
their capacity for corporate in¬
the United
States that either house of Congress may by
a
two-thirds vote expel a member.
thinking
about,
breathe
lette
the
with
cheers and cries of " You're right,
we
no
courage?
Are
so
we
them.
(Applause and
give it to him.")
Have
mealy-mouthed that we are
object like that!
an
(Ap¬
The other day Charles Edward
people.
our
sit
It is the most solemnly serious prob¬
laughing matter.
before
to
Believe me, gentlemen, this is no
plause and laughter).
lem
men,
by having Robert M. LaFol-
air
same
What, Sir, are they
patriotic
honorable,
those
there and be contaminated
Russell, a distinguished Socialist, who went by appoint¬
ment of the President of the United States on the recent
Mission to Russia, stated in a public place that the
sian downfall
by those
was
in
no
Small
ignorant Russian
poor
Rus¬
part due to the reading
soldiers of this man's
speeches in the Senate and on the hustings as evidence
Why,
food
the
you
of every
permit that
a
States
United
native
was
united
not
sincere
and
boy that goes to his transport as to
New
of
Jersey,
which
has
am
citizen
a
of
York
New
No
of
as
Mr.
I call
has
upon
two
heed.
patriotic
them to take up
single act would go so far to shorten
Hundreds of millions of dollars and
that.
thousands
of
precious lives
will be lost because we
my
which
I am
two patriotic
Senators in the Senate, and I call upon them to take
I
in
might just as wrell put poison in
(LaFollette) to talk as he does.
man
son
war
keep
Mr. Presi¬
soldier's enemy, but
There is a provision in the Constitution of
tens
ples using armed forces, to be sure, but using every re¬
source,
a
dignation?
this
To
fighting it across the
are
sedition and cowardice.
got to fight
pur¬
To help dis¬
Yes.
own?
in this respect.
between
on
We
kinds.
two
tion, conspiracy, cowardice and treason exists.
To aid
But, above all, to keep the Constitution, the laws and the
Mr.
a'.'
.
and Ave are fighting it here where evil-minded sedi¬
sea,
matter.
To restore the
sure.
of France?
and
come
from
To be
the Government of the
and
ling attack upon the American people and American in¬
this
of
selfish
Of course.
and at
arm
one
fighting ths war in two places; we are repel¬
are
prin¬
for the highest
struggle
you
It is the sol-
nation solid and
bit to keep this
Senators in the Senate, and
valleys in which we live.
have
with
if
as
war
over seas.
way,
one
President
States.
Unted
the
saw—that
our
united behind the
war.
quickly
in
going
another arm without personal risk.
each
But
that
nation had been
belligerents of this
in another way, with
this
—as
the
It is your lot and mine to contest,
tear
barbarism,
of
of
ranks
the khaki and were
down the fair fabric of reputation that a great European
cruelty
in hand with those who have borne
afraid to make trouble with
established.
and
On
have
heart
are
Columbia University, New York.
drer's lot
You are taking an
depositor.
a
as
hour this afternoon from the great and
lems
the
after
subject connected with banking, with which
to you on any
am
grateful appre¬
they
great personal risk.
for
and
fact that
by the
they
.
wore
few moments this afternoon before this
a
representative company of American men of
and
great
in
The honor of
President, Ladies and Gentlemen:
and
they have sent,
the
of
Changing
By Dr. Nicholas Murray Butler, President
standing for
proof
to Europe,
sent
it
this burden for the last three years.
hands, for if the Americans are extravagant—and
A
they have
hand
and
to heart
have
are—and
of supplies that
earnest
shown
into worthy and gen¬
they
the troops
ships full
proof that the great burden England has borne
is to pass
am
by
your
of bankers is
This great assemblage
financing the war
erous
for
is
equally true that they a generous people, and already,
further
no
thrift,
I
that is coming
from
set
learned
ourselves, most
gladly welcome the help
and
training camps.
I
afraid
confident of our power to defend
very
cordially
in
CONVENTION.
are
being lost and
stand supine.
President, I feel stirred from the very depths of
heart when I think that there are among our people
those in
high public place who have been trusted by con¬
fiding constituencies who will with their eyes wide open
betray the Government of the United States in this war.
And
do
peace
the
you
which
other
recognize
see
day
their
weaken your
the significance of these cooings about
come
from Berlin—what the New York Sun
described
as
" rabid
significance?
specials."
They
are
Do you
intended
to
effort and mine, in the hope that we may
stay our hand before the
new
world of which we are
in search has been discovered and
organized.
Any human
BANKING
being who
render
asks
is
greater
is
freedom,
aspirations.
is
not
it takes two persons to make a
There must be
alone.
will
only
American people
is
the
when
come
the vessel,
into
But as
confidence
supreme
water
like
safe
make
to
for
our
mass
in
deck
their
Mr. Chairman
barometer has
note that the
in American society
There is the soldier, and
like this.
There
soldier.
people and the
the farmer—he feeds
There is
health.
in
soldiers
equips the soldier and makes him
finance all the others
flow through the land, even as our-
land, bearing
Mississippi flows through the center of our
on
and that laves the land
the ships of war,
soft
its
with
-
bosom
its
facts-
Then there is, last of all,
banker, whose business it is to
to make money
ready for his battle
in the presentation of the
conflict.
tremendous
the
and
There is the publicist
be victorious.
shows his wisdom
clothes
manufacturer—he
the
is
in order that it may
and
There is the
keep the State in liberty.
physician, with his nurse—they keep the
the
flow, that it may become
fertile and pro-,
duce abundant crops..
fathers in
Your
a
in
the time of Alexander
many
Revolution.
and who is related to all
the professions and oc-
preeminence set apart
cupations, and therefore by way of
in
of
kind
a
Hamilton had
The only man
respects in each community, who is a universal
great task financing the
man,
divine
way
help the people fight in
to
a
battle like this.
fought really five battles, and each
Your fathers
a
the
of
with
In 1776 they fought for liberty
freedom
fought for the sanctity of
land; in 1812 they fought for liberty and
the
in 1846 they
sea.
frontier
In
lines.
to the black
/
land.
great foreign
on
white man by
1861
they
fought
to
extend
liberty
and to safeguard the liberty of the
giving it to the black man.
In 1898 they
men,
fought to remove the
"
arbitrary might from the neck of
Cuba, Porto Rico, and you
another nation, small nation,
are
here
now
five of these
to follow up and protect all
liberties and to affirm that the great
your
doctrines for which
fathers lived and died cannot perish
utterly out of
this land.
I
passed the other day through the land
There
are,
five men
the
of England.
back of the 7,000,000 soldiers at the
and Women toiling to equip one
front.
channel.
terials.
going on.
At
is raging; a great southeastern
rocking; men are anxious;
arising to engulf anything that comes
is for us to keep
firm faith and strong arm, until
that glass
waters go down,
quiet conditions the peaceful
and until
voyage
we
resume
front,
soldier boy at
They have carried 8,000,000 men across
They have transported 10,000,000 tons
Every day
now
England
dueing more small shells than in
i
under
which the storm broke in upon.
German Atrocities
Every three days she is producing more large
shells than in the first year of the war. Every four days
she is producing more machine guns than during the
first year of the war. Every six days she is producing
more large cannon and heavy ordnance than during the
first year of the war, gnd this is but the beginning. Then
consider her ships on the high seas. Every week 5,500
this war.
of the Convention:—
and gentlemen
of crisis
time
it is his duty to
who
Then the
Hillis, Pastor Plymouth Church, Brooklyn.
Dr. Newell Dwight
Rev.
there are six classes
general
of this
wreckage.
path.
stout hearts,
children's
You have sat upon
storm at sea.
taken
have
and
By
a
broken
begin.
Why We Must Fight On, In View of
in
of
the sea is safe for the mariner, the
Oh, Mr. President, and gentlemen, it
would
every
rises, until that sky clears, until those
You have seen a great
In
astounds
and
rises, the skies clear—the storm is past and
voyages
the great waves are
children.
the
a
gale is blowing, the ship is
That is the
children and
our
frightens
this moment the tempest
signs of direction
experience records and teaches,
beyond it lie perhaps the happy fields that wre
it
That, gentlemen, is a symbol of what is
of the
only road to peace, marked by all the
and
sea
calms again,
barometer
new
waves;
being in sight of it, and it leaves a once quiet
untroubled
in their arms as an instrument of policy
and distance that human
perhaps to its undoing; it lashes the water
mighty
human
That
above a whisper.
by its overwhelming defeat.
destroyed
and
quarrel, so it takes two
talk about peace
can
we
denly the storm bursts—the tempest in all its fury rocks
by those against whom we are fighting
and its conditions
before
Sud¬
The
willing consent to durable peace
a
darkening spot on the southeastern hori¬
ideal.
of an
zon,
Our Allies cannot make peace
to make peace.
persons
a
and an ominous black calm over all the waters.
state
those and peace is secure.
us
sharply down, the clouds are beginning to gather,
that there is
a
satisfy human wants
liberty to
Give
Peace is
ideal.
an
gone
sur¬
and still
another
organize for
to
accomplishment
the
upon
of unconditional
short
peace
us
Peace
war.
attendant
ideal
for
asking
113
SECTION.
the
of ma-
is creating and pro-
the first entire year of
incoming or outgoing ships.
And they Mve loaned 600
of their ships to France and 400 of their ships to Italy,
I said to one purser of the ship: "So you went down
off the Island of Cyprus in the Mediterranean?" He
said, " Yes, I was in the sea some five or six hours,
and then some weeks in a hospital."
"And you were torpedoed oft' Alexandria?" / "Yes,"
he said.
And he said, "My assistant went down in
the Lusitania."
I said, "Are you going to continue in this way?"
And he said, "The Kaiser has said that he will make
the water boil around England with explosives. If my
steamer goes down'I am going on a freighter. If the
freighter goes down I'll go on a small Government boat,
If that goes down I will find something else to float on;
but all of this boiling hell around England shall not interfere with England being fed."
I speak today from the viewpoint of the optimist,
Now, a man who has been along the hundreds of miles
of front in France said that France is dead; France
not dead, but, tired. France is simply tired nervously,
The women have black rings under their eyes, they are
The children in the street are tired
effects of it; that was
the condition some time ago, but when America came in
it was a great new force, a flood of energy, and it rested
them. The difference between the othef soldiers and the
French soldiers is this: The Frenchman is tlie best soldier in the world in this great conflict for the reason
you will see he is fighting for his native land.
I met
a captain there and he had raised over 100 men.
He
tired nervously.
nervously, the horses show the
explained why his group was so efficient. He said:
" I will put my 1CK) boys against every boy in the world,
They all wear the same kind of helmet and trousers
and shoes, but when their right legs move you would
think it was only one leg moving, and when their left
legs move you would think it was only one left leg
j
114
BANKERS'
moving, but
have captured
we
(his place some of them had
trousers
and
some
lighting they
within
get
their
out
friend,
and
and
rush
German
the
from
runs
Frenchman
the
is
trenches
Germans
the
and
bayonet."
already
himself to his country and
they
Now, before 1
the
has
given
to his God and he
never
there
never
these
the
The
that
hours
in
a
more
has
into
out
and
let
ruins
me
say
and
get the data
thousands
First, they hold
They take the
that has suffered anything at
soldiers,
women
they
and
and
took
men
children
that
make
and
had
suffered
of
brewer
in
who
$30,000 of his
be authenticated.
McCormick,
cey
would
not
able to preside
want to say a word about the
cause
have
an
cannot
cause
to
great
have
effect
an
without
unless
emergency
give you the
reasons as
ambition.
The
Kaiser,
cause
from
could
on
the
no
Day of
This
law-
world."
influence of
doric
these
I
am
and
The
words:
explanation
" From
five
childhood
men,
over
just
a
began
in
a
dreamed
dreaming
my
a
a
the
I
have
the
been
contains
under
Great, Napoleon.
dream of world
the
Theo-
Each
of
empire—they failed.
dream of the German World
Empire—
mailed fist shall succeed."
captured and their
the great
states
capitals—Athens, Ephesus, Jerusalem,
Carthage—reduced
paying tribute to Rome.
But
to
county-seat
the Kaiser
side with that map another world
map,
towns,
prints side by
with Berlin the
capital; and by 1915 St. Petersburg, Paris and London
were
to be
county-seat towns, subdued provinces of Ger-
many—and Washington and Ottawa
were
to follow
with
Canada.
After
the
That
this
United
is
war,
why
I
States."
the
shall
The
not
Kaiser
stand
President
told
any
Mr.
Gerard:
nonsense
heard,
but
from
he
did
As to
the
bankers
was
far
without
manii-
manufacturing until
will train Ger-
we
great province which
a
needed.
He
I
me
continued:
will
bring in
vast army."
a
a
Two
They captured
that great tract of land which they wanted and got fine
coking coal.
turn."
7
He
In
1866 Bismarck said,
said, farming
pays
8, manufacturing 10
or
per
cent; and
5
" Now
per cent
cent, but
per
comes
should pay
war
should become Germany's chief
war
War shall become
cent.
They
had
He
while
cent,
per
chief
our
brought back
with
8 and
1,000
per
you
and
him
industry,
or
pays
war
France
with
war
our
return, finance
since farming pays 6 per cent and banking 7
know
the
title
the
deeds
to
She built the North German Lloyd,
she developed great factories and she leaped to the front,
and
Germany passed first in pig iron in thirty-two
and
became
first
in
division, and later
steel,
and
all
forms
in
then
of
in
the
years,
electrical
chemical
matters;
and finally won what she called "Industrial Efficiency."
Now,
seven or
eight
Germany wakened
years ago
with
up
terror.
I
read up
"Germany at Bhy by Reason of the Extent of
Her
Iron
would
suggest that you
Supply."
look
into your library,
It contended
be exhausted
within
the iron
that
twenty-five years.
and
supply
There is
minority report which 1 accompanied that, report which
a
that
says
the
beyond 1915.
iron
the'
era
of
mines
of
Germany
Germany knew, that
civilization
on
in
the
these
you
days with
Pullman
and
car
an
will
cart.
ox
last
not
could not
carry
This
is
Vanadium
arid
there
discovered
other
refined steel.
Now,
about
that
time
in
in Northern France
one
world.
author,
One (lay
published five
Germany five
to
be
years
iron
second
a
If
war.
an
mitted
I
am
haye
are
these
fourth
only
rate
nation."
England
in the
224-236 of his book
made this prophesy:
and
up
men
atrocities
and
on pages
discover iron mines
France
some
speaking
seen,
was
or
Belgium, for Germany will
or
mines, they will lead
There
1911
of the greatest iron beds
ago,
years to
with France and
the word " Germania "
stamped on the United States and
"
club,
iron mines, and
no
years later he went to war with Austria.
He printed one map
headed " The Roman
Empire," with, all
Alexandria,
Kaiser
things
Germany into
Alsace and Lorraine.
Alexander, Julius Caesar,
Second, Frederick
men
o|f
turn
teach
conference in
the
will
result.
the Potsdam Palace in 1892.
The pamphlet
distributed by the Kaiser begins with these
words: "The
Pan-German Empire: From
Hamburg on the North Sea
to the Persian Gulf.
Our immediate
goal: 250,000,000
of people.
Our ultimate goal: the Germanization of all
these
which
Bethmanthe
goal
the
Austria has coking coal for
stand back of
manufacturing 10
and
war
other
national interest.
questions will be asked by
Judgment.
cannot do much
you will
real
Germany's right is the right of the lion
lamb, and that
God
Now, if
the
1,000
a
of
wealth
nor
fine army and
a
You
some
meeting
a
richness
you
never
is
with
plainly that England led Germany in
no
You
theory of iron force, the right of big
Germany to loot
little Belgium or-North
France, and drill them in the
the
be
cause.
Van
think
men
furnish
bill
to reside in
Nietzsche,
Hollweg, Von Bissing and Plauss
belief that
will
this
I analyze them.-
First of all you can find the
less
there
called
manufactories and France has
our
"
back of it, and,
therefore, very hurriedly I propose
Goliath,
or
the Athenian
Germany's
other culture beside France./
Bismarck
into
many
little
of them.
laws,
light.
Bismarck* replied, " If that is true,
the testimony.
adequate
and
their
on
painting,
means
have the steel and certain other products necessary,
you
old friend, Cbaunover
124 of
gift for culture of the intellect.
no
no
facturing, and
to the analysis of these atrocities I
go
Nietzsche
They answered that Germany has
cases
such
no
my
On page
crime against culture lies
"culture"
super-Hercules
a
there could
Chicago with
believe
He said
money.
Unfortunately,
was
Now, before I
a
of
between the ages of 72 and 90
years of age.
Chicago
of
On page 38,
and away the leading nation of the world,
men,
a
be
he told these
anything at the
I started at
Their
tire
never
pig iron, steel, cotton, woolens, building ships, and
over
2,000
she ruins culture."
reasonableness
1804
In
statements of everyone
statements
and
and asked why the German people were not richer; and
the
thousands
investigation
an
celebrate
cathedrals, international
Germany has
found,
are
the outer exhibi-
were
philosophy of force.
they
every
By
that, there is
Therefore, they
They preseuted their testimony and I separated
some
sculpture,
should
women
Belgium, the
volume he'says: "I feel it my duty to tell the
same
sweetness,
the hands of the German
the
hands of the German officers.
32 old
and
still hot.
are
have
we
dead body.
with
when
French
a
France,
inner
its
execu-
Homo, Nietzsche says: "Wherever Germany
conscience."
smoking; and
investigator,
the
whom
master
Germans that
getting
spent only
photographs of the dead bodies that
these documents.
every
an
the
retreating from
hot and
of
the
was
Nietzsche
the Lusitania, the rape of
on
extends her sway,
prepared
that
historian;
praising—Nietzsche, judges Germany aright.
photographer and stenographer, who
documents while the ashes
first take
ex-
fact that
death
to
remember
village they had in
a
the
great
in his Ecce
in
the retreat and
on
the facts I have here are from
go
the
issued
bored
must
village left the whole ruins
lawyer—a judge,
to
carefully
been
been
You
war.
German army was
few
attention
has
care
world
facts of this
every
a
and great
facts.
call
documents
were
these,
to
its
was
The murder of Edith Cavell, hundreds of
in deeds
tion
study of those atrocities of
a
originator of this World War
assassination of Northern
"My
he
dead;
tives.
and children
Boches
said,
The
Treitsclike
philosopher; Yon Pissing and Yon Hindenburg its
,
to
come
Germans, I want
than
Kaiser;
fix
I
pects to go home again."
the
not tremble.
trousers, but when they get to
grey
yards of the
bayonets
crawls
At
blue
some
fighting for their land, and when they
are
ten
7,500 Germans.
over
red trousers and
CONVENTION.
"I
give
to go to war
never
This
consent
is
war
these
recover
an
iron
until 1925.
who
of
from
say
which
they
we
have
all
information
giving testimony
which
never
hear
so
which
my
corn-
much.
my
ears
eyes
have
SECTION.
BANKING
three
For
heard.
disbelieved
.
and
lies
Belgium
inventions,
of their anger passed resolutions saying: "What our
Government is, we are. Their acts are our acts. Their
deeds and military plans are our plans." Knowing his
pro-
to he
of German atrocities were
English
as
have
German-Americans
years
that the stories
tested
eople through and through, the Kaiser called his soldiers
bofore him and gave them this charge: "Make yourselves more frightful than the Huns under Attila. See
that for a thousand years no enemy mentions the very
forever.
of the nations assemble for
hypocrisies, but that day has gone by
French
representatives
the
When
settlement there will be laid
the final
sentatives of Germany
before the repre-
affidavits, photographs, with
other
name of 4Germany' without shuddering." Why do the
German people say they feel to terribly because the an¬
thors of the world call them " Huns " and "barbarians "?
make the German atrocities far
than the scalping of the Sioux Indians
legal proofs that will
better established
Black Hole
frontiers, the murders in the
the western
on
the crimes of the
of Calcutta, or
Who named them "Huns"? Their Kaiser. Who christened them "barbarians"? Their Kaiser. Who likened
the German soldiers to bloodhounds held upon the leash
by the Kaiser's thong, as they strained upon the leash
with bloody jaws, longing to tear their French and Belgian prey? With bloody fingers, the Kaiser said, "I
baptize thee 'Hun' and 'barbarian.'" Let the Kaise*'s
words stand: " For a thousand years no man shall speak
the word 'Hun' without shuddering."
Spanish Inquisition.
France and
the edge of Belgium this year has returned home a saddened man.
German cruelty and French agony have
-
who has passed through
Every American
cut
passed, the
hurried to the scene
village the retreating
following morning accredited men
to make the record against the Day
The German philosopher has dehumanized the. German
officers and men; later on I shall give a detailed account
of the devastated regions of Northern France, but here
and now let us confine the observations to the ruined
villages and towns of Eastern Frane.
Here (producing piece of metal) is a reproduction of
an iron coin given as to token to each German soldier.
At t^ie top is a German portrait of Deity, as the German
understands it, and underneath are the words " The
good old German God." To encourage the German soldier to cruelty and atrocity against Belgians and French,
the Deity holds a weapon in his right hand, and to dull
dead and mutilated
The photographs of
Judgment.
of
On a battle line 300
the wound.
whatsoever
in
length,
in
miles
Germans
is no Dakin
in the heart and there
bloody gash
a
solution that can heal
tell no lies. Jurists rank
high two forms of testimony: The testimony of what
mature men have seen and heard, find the testimony of
children too innocent to invent their statements, but old
girls, children and old men
For the first time in
to a science.
Therefore, this great war for peace must go on until
the German cancer is cut clean out of the body.
I am speaking only from information which my eyes
have seen and giving you testimony which my ears have
enough
to describe
what they saw.
has reduced savagery
history the German
About documented
heard.
on
evidence I piled nine volumes
simple illus-
And I will give you one as a
pulpit.
my
brought
out and shot.
This shooting was heartbreaking, as they
all knelt down and prayed.
I will not read all, but
back of that statement were a lot of documents and
tration:
In one place all
testimony taken before a
merited
and
makes
spent
history.
Days
Southern
Belgium,
«
German atrocities
government
the
in
nations
ferent
the inhabitants were
great jurist.
of
catalogue
cold
The
upon
Northern
the
of
archives
the most
up
doeu-
now
the
sickening page
records
France,
or
difin
preserved in
in and about
the ruined villages of Alsace and
nauseated—^physically and mentally.
black series of. legally documented atroei-
days spent in
Paris,
Lorraine, leave one
It is one Jong,
Every solemn pledge
ties.
and
that Germany signed a year
half before at the Hague
a
Convention, as to safe-
guarding the- Red Cross,- hospitals,
women
at
as
of paper."
" scrap
a
committed
of anger,
in
not
mood of drunkenness, nor an hour
a
left
on
so-called German ef-
a
factories, carried away machinery,
bombed every farm house and granary,
houses,
no
his-conscience and to steel his heart to murder, the token
holds these words: "Smite your enemy dead; the Day
of Judgment will not ask you for your reason." To
this native characteristic Goethe was referrring when he
said: "The Prussian is naturally cruel; civilization will
intensify that cruelty and make him a savage." The
German atrocities of the last three years simply illustrate those words, for we must confess that German
efficiency reached its highest point in the discovery of
new and horrible devices for torturing old men, helpless
women and little children.
Here and now I would like to confine our observations to the ruined villages and towns of Eastern France.
Pulling his iron token out of his pocket, the token
exhibiting Deity as a destroying soldier, the German officer and private reads the words beneath, "Smite your
enemy dead. The Day of Judgment will not ask you
f°r your reason." Having, therefore, full liberty to loot,
these Germans became the wild beasts. The plan had
been " Brussels in one week; Paris in two weeks; Lon-
deliberate, cold, precise,
policy of German frightfulness.
It is not sim-
ply that they looted
robbed
scoffed
These atrocities also were
but were organized by a
ficiency, and perpetrated
scientific
cathedrals, libraries,
children, and unarmed citizens, are
and
plough
nor
reaper,
chopped
down every
pear
with every grape vine, and poisoned
Germans slaughtered old men and
tree, and plum tree,
all
The
wells!
matrons,
mutilated captives in ways
that can only be
whispers; violated litle girls until
dead; finding a calfskin nailed upon a. barn
dried, they nailed a babe Beside it and wrote
spoken of by men in
they were
door to be
beneath the
weird " Zwei"; they thrust women and chil-
to dehospitals, Red
Cross buildings; violated the white flag—while the worst
atrocities caunot even be named in this mixed audience.
No one understands the German people as well as the
dren between
themselves and soldiers coming up
fend their native
Kaiser.
tience, and
the
put
the German
Commerce,
spirit of magnanimity, pa-
good will, distinguished
Prussian
and
lar
land; bombed and looted
Our President, in a
between the Kaiser
Government, and over against them
But Germany's Chambers of
certain popuwould have none of this, and in the fury
people.
Hamburg's Board of Trade, and
assemblies,
115
„
don in two months," and then two pockets filled with
rings, bracelets and watches; from Paris or Nancy, for
the sweethearts at home. When the German army in
Lorraine was defeated by one-half its number, it fell
northward, passing through French towns and villages
where there were no Frenchmen, no guns, and where no
shots were fired. During July and August we went
slowly from one ruined town to another, talking with
the women and the children, comparing the photographs
and the full official records made at the time with the
statements of the poor, wretched survivors, .who lived
in cellars where once there had been beautiful houses,
orchards, vineyards but now was ouly desolation. In
Gerbevillier, standing beside their graves, I studied the
photograph of the bodies of fifteen old men whom the
Germans lined up and shot because there were no young
soldiers to kill; heard the detailed story of a woman
in the garden,
him and were
cut the rope,
revived the strangled youth, only to find that the soldiers
had returned, and while the offiecr held her hands behind her back, his assistant poured petrol on the son's
head and clothes, set fire to him, and while he staggered
whose son was first hung to a pear tree
and when the officer and soldier had left
busy setting fire to the next house she
BANKERS'
116
about,
flaming
a
When
they
the next
they
torch,
had
burned
all
shrieked
the
lying
and
chine
they
as
belfry
In
then
guns,
the
that
next
which
into
had
lifted
woman
and
child—275
every
ma-
church, and notified the French
the machine guns they
and children.
women
own
stripped
women
After several
days' hunger and thirst, at midnight, these brave women
slipped
their
little boy through the church window, and bade
a
husbands fire
ing they
preferred
suffering.
and in
And
the Germans in the belfry, say-
upon
death
blowing that machine
twenty of their
the indignities
to
Frenhmen
these
so
of history, where shall
other
race,
sneaking
find
you
In
hundred
a
record of any
a
who call themselves civilized, who
cowards
that
they
could
put women and little children before them
Proof
overwhelming.
than
more
the
Gentlemen,
out
resources of the latter."
could go through
man
no
understanding
perfectly
that
Ridge is the Gettysberg of this
tox is not far off.
of the British and of the French troops, and for
of comparison I will
poses
in one-half
at
a
use
between horses
race
Some of you
and
The track is brushed
board, and
makes
until
horse goes
the top
around
shield?
the letters
beasts.
eighteen.
nocent
two
The
little
her
was
Vendre
all
they
all
their
and
men
expression."
and
unnerved
Diary
the inhabitants
knelt
wives
almost
one
brought out and shot.
as
like wild
are
Today destroyed eight houses, with their inmates.
Bayonnetted
"In
of Private Max
we
girl
of
so
a
in-
me,
Eitel
of
without
Anders:
exception
were
This shooting was heartbreaking,
down
and
prayed.
It
is
real
sport,
yet
it
saw
the dead body of a young girl nailed to the outside
door of
teen
to
watch."
cottage by her hands.
a
retreating
were
terrible
sixteen years
or
In
really
was
marching
old."
from
through
two years came out
the
and
She
Page 21.
Malines,
At
"Haecht
about
was
I
four-
Affidavits 11-67.
eight
drunken
A
street.
corroborate it?
can
rods and
little
child
of
on
D. 10.45.
spikes
wooden
Hofstade,
atrocities
the
Germans
sixteen.
At
the
twenty-five witnesses, who
Passing
taken
and
nailed to
trenches and
for
vance
photographs of
had
morning
received
notary's
diately,
women
boy of
a
taken
from
her
young
were
years
the
by the fact
proven
the
officers
Madame
make
her
children,
from
Roomans,
escape
imrne-
times out of
seven
city
over
bayonet
from
six
alone,
inquests
hundred
Upon
were
held
victims, including
their
mothers.
It
charge of the Kaiser to his
quarter and take
no
prisoners.
hands be at your mercy."
German army
published
they began this
diers to
people and
break
war.
the
a
is
the
army.
logical
"Give
Let all who fall into
The General Staff of the
manual
several
years
before
They explicitly charged their sol-
[Will of the
enemy
horse,
by cruelty.
Wit-
at
twenty
and
barbed
one
in
comes
ahead
over
rivers
and
of
far
as
other
horse,
the bridges,
as
concerned,
and
granaries that
absolutely free field to
an
the
there, remember that Ber¬
are
and
the streams and six
has
troops
can
haven't
that.
They
back of the
move
desolated country in which
have
50,000 of
seen
American
our
into this.
there,
over
to
the enemy
American
our
navy
have
the
belong to the
lines, and that the British and the French and
go
Ameri-
this
over
But
retreats.
I
boys train and, like
ready
day
any
to
get
And back of those lines, back of these great
trenches,
will find
you
that the bridges
for the Amerb
cans and the French and the British have all been blown
buildings dynamited,
up,
damaged
in
some
way,
there
no
barns
or
are
Finally
phase
of
this
You must
They
through.
rivers
shell
to
will
the
the
be
case
spear
last
bitter-
first
in
holes;
battle..
or
and
point
The
beyond
of Athens
and
and
One day Demosthenes
the
filled
pit
}:■■■-'
:
solid
military .sphere, and
destroyed
large
granaries for them, and absolutely
battle
with
canals and
and
come
remember
went
.
will
we
Macedonia,
pounded
said,
buffer
state
and
their
"Here
must get rid of it";
we
last
compare,
then
then
the
is
a
they
second,
Now then you have a great buffer here, two buffer states,
England, France and Germany did not have this.
have the
Canal if it
navy
Then
the
on
\Ve
"And
a
trust,"
in
the
we
on
one
should
side of which
also
put
on
their street
other
his wife
or
point
Chicago, Philadelphia, Boston and New
corners
and
to
men
stand
we
any man
who allows another
you
allow
he
would let such
or
was
vilifying
had entered into
men
on
our
street
one.
an
a
man
a
to
man
third
vilify
reach
party,
honorable alliance,
corners
to
vilify
allies, that is nothing hut standing side by side with
enemies, giving comfort to them.
who
stand
One
arm,
our
an
vilify Great Britain, which has
his partner,
where
with whom
Britain
" In
side,
saviour.
our
when
have
we
the
English navy."
Yorw should allow these loud-mouthed
the
and they would
receiver fifteen minutes after they landed,
coins,
I wonder that
been
You
coming through the Kiel
were not for the British navy
the hands of
God
German
off New York here, and you bankers would go into
come
Gentlemen,
aged men and women, and babes unborn, removed
result of the
no
a
about to begin.
was
one
the bodies of
the
your
who
the looting and killing of all the citizens, men,
and
retreat
very
by
old
Affidavits D 100-8.
25th
from
to
the
These records could be multiplied by thousands.
upon
or
carefully planned in ad-
of August
warned
to
affidavits
child three
a
were
great kindness
wife,
as
killed,
terrorizing the people is
the
on
addition
and
door by its hands and feet.
a
of
were
a
horse jumps to the
covers or gets over all
would
Haecht,. in
That all these atrocities
that
hands
the boy before he died
saw
they violated
the
both
to .other
•
through
whom
addition
affidavits
just afterwards.
women
off
cut
inquest
in
second
a
eight rods,
every
every two rods, and yet that second
way
from
as
wire at every five rods, and trench holes and shell holes
soldiers
his bayonet and carried it away while his comrades
sang.
Withdrawing
on
And then there is
everything is beaten.
soldier skewered the child
a
level
as
that
that
houses and the barns
in the diaries of Ger-
excited
is
mile in 1 minute and 50 seconds—I believe
a
diaries.
so
fine
is the rate of speed—is there any clergyman at hand who
is out in the open territory
are
the
seen
and
canals
August 22nd, note book
been
track
one
open
"Our soldiers
have
you
will
have
track, one-mile track, possibly at the County Fair,
many
soldiers.
pur-
illustration that
an
minute describe.
a
ing.
man
that Appomat-
and
war
taken from the bodies of dead German soldiers with their
Thomas:
with-
Vimy
of
Very few realize the real superiority
In considering conditions
Take these pages found
that land
battle
the
and he is going into all sorts of obstacles
a
as
are
seek to destroy the
manner
total intellectual and material
men
atrocities, that go with
important still, here
com-
That other horse is jumping and running side by side,
original photographs, affidavits and documents rest-
more
"A
the
batants of the enemy states and the positions they occupy,
but it will and must in like
ing in the archives of France against the day of reckonWhat is
52.
page
such
Here are, in brief, the records of
thousand individual
a
on
merely against
energy
like
fight
not
from the War Manual
page
are
play the game fairly, but in their chattering terror
or
this
is conducted with
were
guns,
out of the belfry killed
gun
years
they
their
turned
wives and children.
own
ness
war
village stood the ruined
if they fired upon
would kill their
of
Germans
the
forced
in number—rinto the little
soldiers
retreated,
the bodies of thirty aged
fell, the bodies
slain.
last
at
square
laughter.
and
morning, the prefect of Lorraine reached that
Gethsemane and photographed
men
with
houses
CONVENTION.
out
on
the
street
I
say
corners
that these
vilifying
our
our
men
Great
should be hung for treason.
la«t
word:
Our
great need
now
is
for
a
stroDg
clarity of intellect, with great love for liberty in
hearts, great vigor in
our arms; and
for every Ameri-
BANKING
woman
can
to
husband, and I am
nation,
this
your
is
France
because
to
the
what
French girl
said in my
is only my
only his wife; I give him to France
his mother"; give your boy equally
give him unto God beause he
" I
presence,
say
this republic is the
because
boy; and he must go with open eyes so
mother of
that he can
distinguished
he has
been at a hospital in France.
He sent me a cablegram
and I replied to his message.
Last January he sent hie
a letter, at midnight,
after the close of a terrible day.
He said, "I have now seen all there is of this war;
The
other
surgeon
this
war
had
he
day I
abroad.
is
on
a
letter
from a
For nearly two or three years
of God."
slept
that he had
got
a
He then went 011 to
tell of how
months, and before
but he added he had never
stone for three
been in a
tent,
been so happy.
I
have
seen
Belgium, a lamb torn
am
on
wolf
by the wolf, and I
the side of the lamb.
has
here
on
here,
as
decided.
the
explanation the
I know the
I
right
this western front; this battle will be decided
all the wars of the last 200 years have been
This war has been decided already, but it will
already offered.
wish for your
take
with out forefathers.
stand clearly
117
SECTION
It does. not interest me.
mental and spiritual good you were
enemy
a
few months to find
it out.
I know
this war is very good. I will tell you
can have no purple wine until you crush
why it is he feels
the reason: You
grapes;
your
the
you can
made
sacrifices.
Jesus
salvation of the world.
and
have no clean, white linen until
and no liberty until you have
flax has been beaten,
that made
is
crucified and you have the
Abraham Lincoln is
for the freedom
assassinated,
of the slaves, and the
God we will have
will be decided
that government of the jmoplby the people and for
the people shall not perish Yr<5m the face of the earth.
liberty
of this
nation; and please
victory; and please
God, soetrer late, it
Committee and Officers'
Annual Report of the General
Reports—Banking Section
Secretary, Fred. E. Farnsworth
and
year,
To
the American
Gentlemen
of
the
Your
Bankers'
1916,
attention
officers
of
the
of
(as
this
submit
September 3,
Association,
August 31,
the
published
convention)
General
as
this
covering
the
fiscal
Over
from
year
shall
fully
the
deal
the
on
affairs
tenth
reports
submitted
briefly
of
the
Commissions,
pamphlet
for details
with
these
pertaining
Committees
presented
or
the
to
as
items,
while
various
activities
its
on
the
6,000
including
its- finances,
Secretary of the
to
report
administration
my
during
of
its
and
(due
this,
in
have
my
to
of
its
and
report
from
the
than
evidences
this
about
member
Many
Journal
of
various
that
by
of
many
that
and
deserve
war)
to
would
but I
by
all
and
am
do
but
to
sorry
not
get
careful
a
many
in,
come
commendation
members
our
the
subscription
the
continue
of
The
from
congratulations
in
of
reason
in¬
an
1915.
matter
received;
they
since
of
increase
banks
been
monthly,
10,000
use
letters
have
publication
issued
now
and
making
Association
brought
other
gratifying.
the
are
ago
Notwithstanding the
conditions
most
year
continue
Editor
protest of
benefits
Association.
a
press
success.
to
which. is
few
of
over
financial
marked
price
of
copies of the Journal
some
and
Journal,
and
during
endeavoring
directly to
more
Association,
General
as
of
daily
the
by
subscriptions from
matters
year,
40,000
crease
the
to
Association.
I
their
upon
Secretary
1917.
Sections,
in
extended
are
successes.
1017.
JOURNAL-BULLETIN
report
my
specially directed
Association,
Departments
sessions
to
is
City,
Association.*
respectfully
American
September 1,
the
Bankers'
I
:
York
congratulations
my
individual
New
the
persual
columns each month.
EXECUTIVE COUNCIL
LEGAL DEPARTMENT
It
is
the
in
gratifying to note the steady increase in membership, and it is
clearly
more
demonstrated
administration
of
the
by year
year
business
of
the
that
Greater
the highest efficiency
Association
only
can
be
The
spring meeting of the
Lodge,
Briarcliff
largest
attendance
present
and
-Serious
was
Manor,
in
only
free
a
N.
Y.,
Council
May
on
7,
history—there
our
nine
consideration
General
Executive
absentees,
was
given
8
and
being
whose
held
was
9,
at
1917,
with
absence
well
the
members
.
than
to
His
has
and
of
meetings
many
report,
been
to
soon
made
activity
proved equal
members
our
attending
as
ciation.
have
ever
Association's
our
of
be
to the
the
task
acting in
and
year,
of supplying
committees
submitted,
important
past
legal
advisory capacity
an
various
this
upon
during
should
of
as
the
Asso¬
your
receive
undi¬
vided attention.
unavoidable,
was
of
Counsel Paton
information
Briarcliff
eighty-seven
demands
department
had
through its Executive Council.
to the affairs of the Association, there
expression of opinion
and
throughout
the
sessions
STATE ASSOCIATIONS
harmony
prevailed.
The hew
of
ment
class,
Council, which will meet for organization after
this
sixteen
and
twelve
to
the
viz.,
last
Ohio,
one;
various
of
between
did
members,
Eight
Michigan,
have
accomplishments
and
one,
members
in
all
Association
directions.
officials
has
in
the
This
associations,
interest
member¬
local
one;
one.
in
matters
the
Willing
tant
26,
Company Section
problems
with
has
excellent
results.
1917, occurred'' the seventh
of
United
the
The affair
in
added
It
co-operation
to
the
introduction
Commerce,
The
international
February
touch
given
head
the
function
the
of
through
Canadian
and
special
attention
within
relation
has
been
the!schools.
between
its
given
Special
railroad
activity in
to
study
securities
and
the
has
has
it
been
Interests
savings
been
bank
The
is
it
expected
has also
ever
an
v
the last
that
for
conventions,
that
Alaska
the
increasing
ever
of
as
State
those
of
Secretaries
spring meeting of the Executive
much
good
General
your
will
through
come
banquets,
group
Secretary
institute
to
attend
this
dinners,
many
etc.,
and
beep ably represented at similar gatherings by
officials
and
department
increasing number
.
Control, of
in
the exchange of ideas.
Association
year.
of
an
well
as
state
every
expected
in some of the state
and
Interest
is
association
an
growth
mutual
Board
pleasure
a
Association
various
of
heads.
members
our
v.'\'v.' V
Through
this
reached
each
are
V:\
DEPARTMENT OF PUBLIC RELATIONS
Through
of
installation
also
be
for
one
and
the
Bank
the
associations,
Columbia,
there will
healthy
a
of
in attendance at
and
of
given
invest¬
Journal
the
methods,
continued
of
occurs
show
opportunity for
means
bankers'
District
problems
only.
were
conferences,
impor¬
many
evening,
the guest of honor.
banks
the
Monday
banquet of the Trust Companies
Walker,
Edmund
Sir
Savings Bank Section has
savings
to
of
as
thrift,
On
annual
to
the
purpose
Council,
of
highest
brought about this splen¬
consideration
the
all
but
in
States at the Waldorf-Astoria
Hotel, New York City.
largely attended and unusually successful, doubtless due,
was
part,
given
and
The year has been one of special activity
Section
marks
forty-nine
now
Union
well.
as
is
the
Trust
are
the
before another convention
additional
Montana,
activity
the year
in
108.
one;
Wyoming,
great
and
There
adjourn¬
the three-year
of
added .nine
Missouri,
developed
their bank
and
total
have
states
one;
Utah,
one;
Sections
Sections
thirty-five in
grand
a
the
members
record.
The
of
twenty-seven
by securing the necessary increase in
two;
special interest to
record
comprise
year.
Council
Iowa,
Nebraska,
The
will
ex-officio
than
more
members
ship,
convention,
class, thirty in the two-year class,
one-year
Manager
columns,
Welton
interest by our members.
effected
in
Editor.
To
for
the
in
the
well
as
given
by
as
publicity
to
other
and
Editor
its
welfare
Lewis
publication of
is
is
due
carefully
smail
no
and
means
various
matters
Further changes and improvements
Journal,
Associate
his work
has
of
have been'
studied
by
of
amount
its
credit
monthly magazine.
our
ments.
The
Clearing House Section
ship with splendid results,
during the
has
Seven
year.
recommended
met
with
the
general
of
and
adoption.
in
have
The
for
organized.
It
symbol,, which has
discussions
clearing house
epoch
in
DEPARTMENT OF CONTRACTS AND PURCHASING
member¬
having been added
been
house
by
important
an
campaign
members
new
clearing
a
participated
mark
a
clearing houses
approval
will
managers,
conducted
twenty-five
new
adoption
during convention .week,
and
has
the
to
occur
A
in
creation
this
of
necessity,
time
war
onstrated
the
establishment of the
of
of
the
Institute
convention
in
Wednesday,
on
seriously
of
The
Banking
Denver,
in
holding only
1917.
curtailing
marks
Section
their
steady
a
In
Section,
service
and
through
small
no
in
the
hearty
share
of
having
this patriotic
is
com¬
membership
the
the
state
them
and
live
I
that
Secretary
The
has
a
been
the
far excels
associations
this
to
ago
I
State
in
various
is
and
now
excellent
Secretary
of
Bank
Section
the
on
At
there
are
matters
their
to
shows
is
It
of
part
that
of
time
forty-nine,
with
aggregation
the
of the Michigan Bankers'
National
the
and
were
all
for
the
of
pride
reason
that
Section
and
Association.
Section, organized
with
the
to
many
study
convention,
the
the
at
Seattle
formation
of many
convention,
important
committees which
Section, which
matters
has
experienced
came
now
of
peculiar
have given
interest
a
into existence during our
healthy
growth
to
its
and
Educational
Section,
and
Kansas
promises
well
future.
proved
is
members
in
capable
.a
for
Philpott;
Director
their
to
Presidents
Allen,
who
co-operation
is
in
McWilliam
also
Mershon, Harrison,
and
Rankin;
Secretary of the
various
matters
and
State
throughout
to
Bank
the
forms
It
of
more
to
extent
duties
has
in
met
holding in
consideration
improved
our
well
as
of
as
the
than
before,
ever
organization
an
be
so
large
occasions
has
been
several
on
instances
some
since
given
to
two-day sessions,
the
various
of
been
not
policies
idle
well
as
and
its
labors
in
the
reduction
as
gratifying to note (:he steadily
matters
and
worthy
members
Associa¬
'
has
of
insurance,
and
correspondent.
will
is
in
increasing inter¬
Secretary
It
have
Ruffin
be
to
has
hoped
that
year
runs
close.
its
The
our
Committee
mittee
various
urged
laws
the
also acted
of
the
Legislation
through
the
recommended
year
in
Federal
on
various
on
an
Association
our
another
known
associations
Reserve
service
Legislation
problems
advisory capacity
Twenty-five
Federal
valuable
before
(formerly
state
by
him
of
and
Com¬
the
as
various
with
states,
marked
•
Committee
during
consult
'
success.
The
State
on
Law), has,
on
in
its
in
as
of
well
campaign
General
Act.
connection
has
with
worked
Federal
in
as
for
relief
Counsel
the
in
Paton
of
work
With
good
legislation.
conjunction
the
certain
has
effect
It
has
with
the
phases
rendered
three
a
committees
mentioned above.
The
given
Finance
Committee,
the
careful
with
expenditures
analysis
to
and
the
its
Sub-Committees,
finances
various
mitted at spring meeting and convention
The
My hearty appreciation and thanks to Secretaries
Thralls
of
greater
a
Committee
Committee
rates.
scrutinized
The State Bank
for
in
to
important
brought before it.
Committee of
members.
City
resulted
est
careful
Insurance
insurance
state
secretarial
there
pardonable
Secretaries
State
increas¬
membership of over 6,000 banks, and this year of its history has
marked
serious
head
be.
Administrative
most
Association,
to
last annual convention,
our
tion
due
ramifications
ago.
years
organizations.
most
was
Secretaries
organization
the
existing ten
progressive
refer
years
of
complete
more
that
condition
forty-four
ten
record
and
associations,
work
The
must,
perform
grown
and
of secretaries
parent
membership
has
before
ever
has again rendered valu¬
with
to
upon
ours
many
years'
activity
ing
as
committees
through the
than
activities.
The ten
relied
action
highly
members
position
Chi¬
in
war
The
through its
increased
of
Various
regularly
-
various states,
co-operation
our
in
better
its
session
convention
increase
and the Section is
render the service to be
expected of it.
The State Secretaries
associations
one-day
a
The demands
to
of bankers'
canceled
banking institutions,
many
boys
year
various chapters,
of
September 12,
handicapped
Institute
mended.
able
its
as
contracts,
Manager Lewis has dem¬
COMMITTEES
American
scheduled
cago
selection
prices and
proper
and
the
Section.
'The
securing of
small task,
no
his
department.
examiners
history
the
period, is
wisdom
Committee
various
in
Chairman
Adams
their
of
changes in
successful
efforts
every
to
Twenty-five
the Federal
point
and
win
certainly
is
the
reports,
have
carefully
Association
statements,
and
etc.,
has
sub¬
time.
waged
Reserve Act,
Secretary
out.
has
of
not
Thralls,
a
strong
and
the
who
that
fault
have
campaign
it
of
has
its
been
not
for
been
members.
untiring in
The
Committee
special
touch with
and
the
their
efforts
performed
important work
several
as
appreciation
well as the
be given in detail
by them, will
of
success
in
This
call
had
we
of
duty,
ramifications
extending
ever
lishing county agents in
state
to
new
many
tions
for the
of
matter
should be a
through the efforts of
that
its
this first Liberty Loan
in making
individually and collectively
that
and
AT WAR
bank
so
thus
CAMPS
experience in
with
its
requests
various
to
member
our
the cantonments,
212
to
The
banks.
.
facilities
banking
ready
were
list
our
on
town
of
a
let¬
and
both
expected,
was, .as
response
the
in
banks
the formation
suggesting
Thirty-two cantonments
willingness to do their bit
Unfortunately this movement has not been success¬
and all expressed a
and patriotic,
" boys."
the
written
were
to
camp.
sent
were
prompt
of War ruled against the establishment of
This decision is to be regretted,
ful,
because the Secretary
any
banking facilities at any camp.
for
it
of
through his Commission.
the matter,
for our
referred to President Goebel and on
provide
to
The proposition was
letters
adjacent
at
ters
for
members,
our
cantonments,
city
or
diversification of crops, etc., have not
neglected, and Chairman Hirsch deserves the hearty congratula¬
and thanks of our Assocation for what has been accomplished
been
of
some
direction
his
schools,
better
roads,
It
share in that success.
a
soldier boys.
estab¬
places and the movement promises
strongly emphasized
by the war, has been given serious study, and through the medium
of its publication—The Banker-Farmer—and otherwise, a live inter¬
est was created and excellent results accomplished.
The problems of
better
Committee,
to this
due
received suggesting the establishment of banks within, the
were
associations, county and
The problem of food supply,
to be nation-wide.
1917.
know
to
success
BANKS
this Commission has succeeded in
committees,
of
rendered
was
a
although no
army
agricultural
Loan
is
for their untiring efforts
,
AGRICULTURAL COMMISSION
With
Liberty
Association
our
wonderful
so
From
local
Association
it during the year.
made upon
have been
the
awaits
Commission
important
first
to
members valued service
flotation
demands
the
satisfaction
reports.
CURRENCY COMMISSION
of the
thanks
and
regular and volunteer members alike,
Council have been in close
of the Association during the past year,
Association and
of the
the various
Committee,
Library
Membership,
on
committees
119
SECTION.
BANKING
does
important that the " boys "
seem
their
depositing
should
have easy
of funds to
transmittal
the
savings,
means
those
" at
home," etc.
COMMITTEE
PROTECTIVE
GENERAL OFFICE
Department have received careful
and attention at the hands of this Important, though (for
reasons)
secret committee.
And, while they cannot indi¬
receive the thanks of our members, the Association is never¬
relating
Matters
analysis
obvious
vidually
the Protective
to
made
mittee,
of
Gammon
receive
of the William J. Burns International Detective
is available to all Association members, should
careful reading by our members and comprise the complete
a
over
a
arrangements and
has perfected its
Agency
the first Liberty Loan
cam¬
of the Del Mar Library, $5,000 (both expendi¬
tures
under authority of the Executive Council).
Then, too, there
are the natural increases in expenditures incident to increased Associa-i
tion
activities.
ROUTINE WORK
Offices
fiscal
the
During
is accom¬
through added experience and facilities than
past records, although past records have indicated
by
shown
This reduction in balance is due
$20,000 in
about
of
expenditure
hand of $3,098.58.
cash balance on
paign and the purchase
of
and
mail
just ehded we
year
million
two
than
more
letters,
sent out from
circular letters,
The following statement shows
etc.
Journal-Bulletins,
restults
better
been
has
the
year
the
a
$32,264.22.
1916 the balance was
to
work and his department
plishing
shows
report
In
contrary notwithstanding.
Ma'nager Gammon
to haudie this important field of Asso¬
has proved itself most efficient. '
I want to commend the most excellent work of the William ,T. Burns
International Detective Agency, Inc.
The weekly reports which are
submitted to and read by your General Secretary show that during the
past
A small but necessary amount of new
FINANCES
Treasurer's
The
ability
his
shown
again
formerly occupied by the New York
Some 700 running feet of shelf space has
the year for the accommodation of Library and
typewriters, etc., has been purchased.
furniture,
all statements to the
has
ciation
rooms
Protective Department records.
understanding of ftie department's
rules and the facts involved.
Members should keep in mind that all
cases which come within the rules
of the Protective Department will
be handled without cost to the
member concerned; our Association
will
prosecute amateur and professional alike, and cases should be
reported to the nearest Burns Agency for prompt attention.
It is not
necessary to advise the General
Offices before a case will be taken
up,
two
Association.
during
added
been
the
year
State Bankers'
through improper
invariably
almost
the
Nassau Street, as we have acquired
Bank Building at 5
National
during
activities and accomplishments.
More letters of commendation of this department than ever before
have been received, and I am glad to say also that fewer communica¬
tions
have come in registering complaints.
The latter are written
history of the year's
the entire twelfth floor of the Han¬
Offices now occupy
General
Our
which
\
>
IMPROVEMENTS
OFFICE
report
Inc.,
Agency,
Protective
the
full
printed
'
able manner as a result.
most
and the report of Manager
Department.
These reports, with the
Executive Council,
the
to
hold
Full discussion ensues at these
Association business are handled in a
meetings.
bi-monthly
meetings and various matters of
the report of the Protective Com¬
year's work will be shown by
in the General Offices have organized and
of departments
and
Administrative Committee the officers and
of the
suggestion
the
monthly
appreciative of their labors.
theless
The
On
heads
CABINET
the General
Proceedings.
the volume
matter in detail:
express
of service.
yearly improvement and the best
MAIL MATTER
FIRST-CLASS
^
-
LIBRARY
Letters
purchase of the Del
during the year. On the recom¬
and approval of the Executive
Council, the loan feature of the Library has been suspended.
The
resignation of Miss Glenn as Librarian having been accepted last June,
the work Of the Library is being handled by an able corps of assistants.
of
Committee
Library
the
■
.
\
the
SECOND,
in
meeting,
spring
Briarcliff
President
E.
CLASS MAIL MATTER
FOURTH
1,759
Signs
of
Lists
..v.....
members.....
Packages
Total A.
B.
mail matter.
A.
WAR
..........
LOAN. COMMITTEES
Total
second, third and fourth
Total
•
first
authorized
this work.
Ex-President
Fred I. Kent of the Bankers
Offices in New York, to direct
Pierson
Company,
Chairman
and
was
Chairman;
made
Vice-Chairman;
Secretary;
Assistant
FitzwIIson,
class mail matter...
Thralls
Represents
Secretary;
Section
Secretaries
Mershon,
Gilbert
Messrs.
bond
sales,
Bogart
and
R.
F.
Ayers,
men
9
matter, not printed matter.
Many en¬
three to eight enclosures, totaling about
printed matter actually sent out.
from
SECTIONS
Total
Total
AND
DEPARTMENTS
matter
second, third and fourth class mail
proved
Committees
and
the
value
mall
Total
Express
matter
>
.
.
•'•
matter....
packages
Grand
in
became
an
of their appointment to this Important
unknown element—State Chairmen and
Sub-Committees were named and communications and
printed matter were mailed and mailed and mailed again to
and
non-member banks alike throughout the country—about
envelopes
being
necessary
to
your undivided attention to the
Committee which will be presented
bespeak
Loan
.
total
• •
.144,354
1,049,807
15,991
■.
,.1,065,798
»
advertising and publicity, volunteered their services to our
were accepted.
The individual work of the various
Committee—time
addressed
84,781
59,573
class mail
first
'
Har¬
experienced
.245,875
40,238
MEMBERSHIP
and
Committee
members
B.
619,340
.
pieces of mail
contained
1,500,000 pieces of
General Secretary Farnsworth, VicePa ton; Assistant Secretary
and
.
mattdr
General Counsel
Allen and Messrs. Welton and Lewis, Editor and
Associate Editor, respectively, of the Journal, were of the Committee.
rison,
.
509,347
*286,113
velopes
Council
Executive
the
class mail
18,525
1,096
'
-
.
Trust
486,342
1,625
including those of A,. I. B
Codes
in the first Liberty Loan of 1917 by the Association
Goebel named a General War Loan Committee, located
the General
Lewis
2,628
THIRD AND
active participation
and
such as typewrit¬
etc.
Journal-Bulletin,
GENERAL WAR LOAN COMMITTEE
i
At
letters,
other than
mail
lists,
109,993
*
r.
13,737
93,628
<
finance have been added
banking and
mendation
First-class
ten
etc
letters,
Circular
Mar Library, by authorization of
the Executive Council, the Association has added to its Library a col¬
lection of unusual interest and
value, consisting of several hundred
books and thousands of pamphlets,
manuscripts, clippings and exten¬
sive notes on financial matters, the latter made by Col. Del Mar in the
libraries of Europe.
An index of some 15,000 cards accompanies the
collection and offers ready access to the valuable material assembled.
This collection,
known as the Alexander Del Mar Collection of the '
Library of the American Bankers' Association, is properly housed in
the space formerly occupied by the New York
State Bankers' Asso¬
ciation, on the same floor as the General Offices of the Association at/
5 Nassau Street, New York City..
Through the generosity of C.ol. Del
Mar; the Association has also been presented with a collection of coins
and paper inoney of no mean interest, which will also be displayed
to the same rooms as the library collection.
To the Library proper,
numerous
books,
pamphlets, magazines and clippings on matters of
the
Through
..............
care
for
each
member
30,000
mailing.
I
report of the General War
by Chairman Pierson. The
When
our
membership
bers.
balanced on August 31, 1917, our Association
One year ago we had enrolled 16,016 mem¬
last Briarcliff spring meeting I expressed the desire for
books were
was
At our
17,000 members
associations
effective and
gain
over
17,328.
by the end of the
and state
our
fiscal year.
The response by state
vice-presidents and various other agencies was
31 last shows a net
enrollment of 17,328 on August
the previous year
of 1,312—the record increase in member-
120
BANKERS'
ship for any one year since
gratifying
tion
as
well.
as
In
enty-nine
six
total
with
teuth
am
of
the members
sure
peculiarly
■
571,
v...;;':/;'/
and
708;
of
of 820;
pleased
aye
Iowa
with
1,066,
of
with
of
Is
2,800.00
Ending August 31,
303,198.88
Income,
ending August 31,
year
1918....
$310,728.88
MEMBERSHIP
new
members,
with
1,039,
BY
YEARS
Minnesota
with
total
a
Gross Loss by
Net Loss by
Failures, Mer¬
Year
Membekbhip
Delin¬
ger,
Failures,
2,813
1898
3,424
and
1899
Gross
Merger, Delin¬
quents, etc.
1897
third
Pennsylvania
Net
Gain
Gain
quents, etc.
371
982
611
248
783
535
3,915
211
741
1900
the distinction of having every bank
Nevada
has
only one bank not an
Association;
Year
..,
Making Total
fifty-six, a total of 623;
1,006; Oklahoma with forty-
thirty
second
Columbia enjoys
$4,730.00
(estimated;................
Dues for Fiscal
..
Illinois
our
.
Corporate Stock.................
Balances
with
.
member
and
Bank
on
sixty-six,
1,039;
974, then follows Iowa with 905, Kansas with 820, Missouri
Ohio each with 708, California with 659 and
Texas with 623.
District of
Bonds
on
1918
sev¬
with
a
Interest
Estimated Annual
is second
fourth
Montana
total
a
of
total
a
states,
Missouri
Kansas is
comes
Texas
Michigan
■>;■{
by
Nebraska follows with seventy-
then
fifty-eight,
of 571;
'\.K
total of 905;
a
559:
with
Association,
our
;•
v/-;■
,'sviwr?:y
New York stands first in its membership in our Asso¬
year,
with
of
forty-seven,
of
'
last
The
INCOME
administra¬
my
total of 708 ; Ohio stands third with
a
total
a
total
a
In
total
a
total
a
Illinois
with
total
of 508.
As
and I
;
members,
members,
fifty-seven,
ciation
year
this
members,
members,
808;
New-York
new
new
new
new
of
a
This result Is
of
membership
227
members,
new
one,
In
ninety-eight
eighty-seven
a
organization.
our
close
Interest
Increase
first with
comes
the
at
me.
General Secretary
'
the
with
to
your
CONVENTION.
4,500
234
819
585
1901
5,504
200
1,313
1,113
•
530
1902
6,354
186
1,159
973
but three
1903
7,065
313
non-members; Delaware and Rhode Island must supply eight and
eleven,
1,139
826
1904
7,563
500
1,120
A.
B.
A.
member;
respectively,
The
to
known
in
Sections
to
within
come
increase
various
Arizona only two non-members
have
the
full-membership
Association
and
been
membership,
officials
received
and
of
the
through
Alaska
column.
through
Association,
their
labors
7,677
1,038
1,152
114
1906
8,383
337
1,043
706
applications
by
for
620
1905
of
1907
1,302
868
the' efforts
the
flscal
National
Bank
1917, is
9,251
434
.
Section..,.
State of .Iowa, with
Smith,
L,
within
said
American
H.
C.
Schultz,
State
R.
S.
Bank
S.
B.
W.
Stevens,
state,
State
Secretary
General
the
Bankers'
Frank
Offices
H.
A.
Miller, A. C.
Warner
and
and
others
Sections
of
Vice-President
for
Iowa.
311
Hawes, member Administrative Committee, Missouri.
Rankin, Secretary Ohio Bankers' Association..
Guthrie, member Executive Council,
Savings Bank Section
Harry Yeager, member Executive Council,
Company Seetlon
E.
Farnsworth,
Edward
Many of
in
Secretaries
and
securing our increased
of
Association
our
loyalty.
At
increase
Montana
and
to
the
A.
B.
Reynolds
Ohio
16
A.
for
membership,
Vice-President
the
for
past
all
valued
and
year,
for
16
1,304
405
1.971
667
13,323
790
330
2,041
1,251
14,100
14,720
the
thanks
of
their
made
was
to
Goebel and Ex-President
Iowa
join
to
Mr.
II.
Association),
our
C.
Schuitz,
accomplishment
this
in
723
744
359
1,521
777
894
384
1,514
620
15,010
924
434
1,214
290
1916
16,016
883
416
1.889
1917
1,006
17,328
876
308
2,188
1,312
'
1915
MEMBERSHIP
OF
STATES
AND
THAN
100
TERRITORIES
Nevada
Philippine
44
Porto Rico
........
.........
.....
.A,
...
LESS
1917)
86
.......
32
Canada
...
Delaware
HAVING
MEMBERS
(As of August 31,
Arizona
Hampshire.....
72
Costa
New
Mexico
89
Islands........
4
12
^.
.........
53
Cuba
State
assistance
this evidence
special effort
a
Iowa,
iudvjdual
greatest
rendered
<President
of
12,072
New
State Vice-Presidents,
this
and
one
convention,
urging the banks
State
our
credit
them
Iowa
1911
21
16
have
membership
due
are
the recent
its
Arthur
members
1,504
21
member Executive Council,
Executive Council members,
our
298
22
Nelly, member Executive Council,'West Virginia.........
Association
879
781
29
25
Oklahoma
Trust
C.
1,639
11,405
'
81
S.
552
374
1913
116
Section
1,243
760
1914
the
Association.
691
10,682
1912
121
the co-operation of Messrs.
E.
9,803
1909
year
follows:
as
1908
1910
ending August 31,
Rhode
Island........
48
Rica
;•
Isle of Pines.
Vermont
78
17
1
Mexico
Alaska
Panama
Canal Zone
1
Hawaii
/..
o
22
Santo
18'
15
;
4
Domingo
Venezuela
belongs
Total
member¬
607
ship campaign for the year.
August
31,
♦Erased
1916
from
tion
V
the
and
rolls
through
withdrawal
failure,
December
1,
MEMBERSHIP
16,016
liquidation,
consoldi-
1916.....
Division
876
op
Banks
in
Association, August 31,
1917
■
rr>
Membership
........
August 31, 3917,
.7..;... .7
members
new
♦Regained members
(secured
.......,,.
.
joined during the
from
the
a
35,140
.,...........
.1,620
year.
above)..........
'568
2,188
State
Territory
ok
fM
1917,
....,
v...........
&
Alabama
A
net increase
A net loss
A
for
for
net loss
the
fiscal
the year
for
the
of,,........
year
in failures,
1,332
171
.308
,
It
will
be
observed
considering
1915-1916
15,010.
with
the
list
....
..,
California
membership
thousand
In
the
at
beginning of
the
loyalty
to
size
the
of our
Gratifying results
bersliip
the
by
loss
total
net
losses
solidations
in
the year
The
five
218;
and
as
the
for
shown
in the
liquidations
year
of
16,016'—slightly
fewer
•
membership,
were
the
usual
this
is
the
and speaks
of
1916-1917,
for
reports
for
the
loss
For
was
in
mem?
1915-1916
137,
delinquents, failures,
the
year
membership is
of
1915-1916
estimated
'
Association
the
The
con¬
and
308
at
twenty-
increased
as
s
September
1,
September
1,
1885.......'.
139"'
September
1.
1895.
Annual Dues
1570
1875.............
................
August
31,
1905.....
August
31,
1906.,.............
31,
1600
.
........
j.
..
1907......
$11,606.00
10,940.00
8383
'
31,
1908..
1909..
......10682
August
31,
1910.
August
31,
1911
August
31,
1912.
August
31,
1913...............
14100
...
12072
August
31,
1914..
August
14,
1915
August
31,
1916
31,
1917.
14720
1732S
1
265
215
309
88
1
4
659
115
7
16
9
1
1
261
69
8
7
45
50
1
1
181
4
1
13
2
1
0
44
3
3
17
1
1
42
■V:
23
6
36
13
9
'
•
93'
52
4
1
0
203
12
1
1
367
2
1
0
159
349
343
217
85
43
1
•1
1,039
158
155
41
63
3
1
0
421
......
252
237
53
43
319
1.
0-
905
.........
200
601
2
7
9
1
0
820
77
75
1
23
5
1
1
183
35
124
1
23
5
1
1
190
59
0
0
38
21
1
0
82
44
23
19
30
1
1
200
159
2
26
75
116
1
1
380
45
12
175
508
Illinois
Indiana
..........
......
Kansas
Louisiana
.
,........
Maine
Maryland
.........
•
'
Massachusetts
Michigan
Montana
...
.......
........
Mississippi
.......
..........
90
184
201
347
33
146
113
481
119
•
1
1
8
0
6
1
2
571
1
14
2
1
0
/ 197
22
.
57
32
1
2
70S
..........
82
192
20
13
0
1
0
308
.........
186
358
4
7
3
.1
0
559
11
19
O
1
Nevada
New
Hampshire
New
Jersey
....
Carolina
North
Dakota......
Ohio
48
2-
185
39.
434
27
'
0
1
0
'7
14
1
0
4
101
18
1
O
,
0
32
.
72
336
36
1
9
3
1
0
89
277
144
106
97
1
7
1.066
1
36
0
214
-
65
104
7
1
117
232
0
4
4
1
0
269
Oklahoma
180
35.8
62
61
132
1
3
708
304
0
10
1
1
0
571
255
Oregon
77
Pennsylvania
Rhode
170
Island
94
10
12
7
1
1
202
587
104
52
194
33
1
3
974
17
1
1
19
229,324.48
16016
August
1
8
South
1
1
Carolina.....
48
39
128
233,915.00
15010
......
2
18
North
198,530.00
28
4
Mexico.......
213,752.50
2
2
York.
188,934.00
13323
.
80
178
7
New
175,352.00
11405
0
244
150,795.00
9803
31,
1
84
...
162,507.00
9251
August
August
1
.......
New
137,600.00
19
3
12,975.00
v
1
0
131
127,750.00
'7677
1
52
50
Nebraska
Membership
0
13
53
14
.........
Iowa
20
Columbia..
Georgia
Idaho
2
...........
Florida
Missouri
have
'■
'
Paid
August
of
.........
Minnesota
our
resources
follows:
Dist.
.......
Kentucky
»
resources
membership and
delinquent
of losses
liquidations.
and
416
list
billionv. dollars.
The
the
our Association
1916-1917;
aggregate
of
year
our
history of
years
...
Connecticut
members.
consolidations
for
the
twenty-seven
of
also shown in
are
failures,
was
and
members
more
proportion
Smallest list of delinquents in the
for
exceedingly small,
delinquents
398, with a membership at the beginning of the year of
delinquents for the present year of 1916-1917 are 171,
a
members.
well
delinquents is
The
,...
........
Delaware
of
membership.
1,620
.•
.
were
The
a
over
that
large
our
members.,...... 1....
new
E-
77
112
Arizona
Colorado
Making the actual gain in
u
£
X
03
Arkansas
137
delinquents
in
year
V
consolidations, etc..
3
.
■
37,328
.
m
>
a
vf • a
membership........
es
0}
4-»
August 31,
O
<Si
1
10
18
1
South
1
Dakota......
198
90
213
3
9
10
1
0
245,651.00
2641,529^17
Tennessee
Utah
(estimated)
303,198.88
Vermont
326
79
114
1
50
10
1
1
256
343
Texas
189
29
57
1
1
3
623
23
..........
58
4
7
11
1
1
105
41
0
0
23
13
1
*0
78
BANKING
SECTION.
Annual
MEMBERSHIP—Continued
Division
Banks
of
in
1917
31,
August
Association,
The
s.
s3
93
*6
Territory
or
03
©
o
2
"£>
u
O.
H
02
93
>
*
9
1
1
20
9
1
2
333
231
775
WyomiDg
Canal
1
0
0
0
0
17
0
0
0
0
0
0
1
2
5
0
0
0
3
0
0
0
0
0
4
2
0
0
0
0
12
0
Canada
0
52
O
1
0
0
Costa
O
2
O
0
0
0
1
18
2
1
0
111.
0
O
0
1
0
0
0
0
1
0
0
0
Santo
5
0
0
0
0
0
0
'
.
/
,
'
'
■
■'
864
7,492
5
0
0
Chicago,
1.392
1,506
46
General
tive Council,
ton
by
officials
the
Secretaries.
of
their
1949
country,
In
this
The
patriotism.
President
gage
T.
R.
also
$50,843.75
12,000.00
11,600.00
11,505.00
11,559.09
Santa
30,000.00
28,500.00
25,950.00
30,825.00
Fe,
Mort¬
4's due 1995
York
City
3^'s
due
ATLANTIC
Just ten
E.
Year
Fiscal
Interest
Welton,
on
on
Extra
Dues
Prepaid
Section.............
Company
Section,
Savings
Account
Savings Bank Section,
Bank
years
Bills
sale
Book of Forms........
stationery and printing...............
postage,
travelling
Account
sundry
Account
Liberty
expenses
small
.........................
items
Loan
576.06
60.00
20,000.00
62.00
•
2,60
Section.....
Bank
State
Account
741.03
7,428.14
Payable
Account
Office
Section,
of Telegraphic Cipher, Codes"...
Account
,
"
Banking Section
Section
Commission
Agricultural
Account
ago
260.54
56.00
special account
of
Institute
Account
Ten
special
Section.......................
Account
$271,878.67.
.
88.57
Company
Trust
met
year
59.80
66.00
Trust
Account
four rooms
comprised our General Offices, with nine salaried employees.
To-day
we occupy the entire twelfth floor
(divided into twenty-two rooms) of 5
Nassau Street and have,fifty employees on the salary list.
There are
seven
Sections to-day as compared with two in 1907; and since that
year there have been created our Journal-Bulletin
(with a monthly
circulation now of 40.000 copies) ; a Library of three thousand Volumes
and forty thousand pieces in the Reference Department; a Legal De¬
partment; Protective Department with thousands of records of bank
criminals and a rogues' gallery of 4,700 photographs; a Department
.of Public Relations and a Department of Contracts and Purchasing.
The General Offices have, also been modernized with up-to-date office
fiscal
past
account.......
Account
CITY
1907; on September 1 this year we had 17,328
for the fiscal year 1906-1907 was $135,617.05
income
Our
6,295.00
....
Proceedings....
General
sale
Clearing House
the
..
(1917-1918)
dues
Account
Account
for
1,670.00
50.00
254,199.47
(1916-1917)
dues
Clearing House
and
4,730.00
convention
guests,
Current
of the em¬
2,619.50
(1915-1916)
American
enrolled.
1917
bonds
and
stocks
Account
9,251 on September 1,
31,
$32,264.22
At that con¬
General Secretary, and with the completion
your
REPORT
August
bank balances.......
Interest
years
ciation
Ending
balance
Cash
annual convention.
its thirty-third
elected
was
Wing,
1916.
August 31,
Account
I
M.
RECEIPTS
Account
of ten
FINANCIAL
TREASURER'S
For
of service in that capacity, just a few words on the Asso¬
then and now seem to be appropriate.
The membership was
vention
25^506.67
$118,734.51
great
a
September 24 to 29, 1907, our Association
on
years ago,
Atlantic City for
in
26,700.00
$109,155.00
Treasurer.
untiring energy and devotion in
the busiest in the history of the Association.
past year,
26,500.00
$114,000.00
30.000.00
Respectfully submitted,
ployees of the General Offices for their
this
Cost
Topeka
valuable
Messrs.
to
Secretary to the General Secretary, and to all
Wilson,
extended
well as all
as
Market Value
Books At
•
for their loyal support and the
work done during the year; also, -full appreciation to
excellent
most
courtesy
$45,000,00
1940
heads of Departments,
Lewis and Scott,
the help and
of his assistants,
Corporation, Reg¬
Sections; and at this
Treasurer Wing, General Counsel
Fitzwilson,
Secretary
Assistant
and
Paton
in
due
Committee have been
Administrative
thanks to
my
dollars
Quincy,
4's
istered
appreciation to the secretaries of the different
wish to express
of
all
Presi¬
is broad-minded and liberal
and always has the best interests of the Association at heart.
Else¬
where in this report, under the head of the Sections, I have expressed
I
hundred
Association.
the
pleasure to work with President Goebel; he
time
four
twenty addresses, all ringing with true
and
close to the activities of the Association and have given
aid to the General Offices at 5 Nassau Street.
It has been
very
my
or
$47,400.00
large
association conventions; and during the Liberty Loan
he made more than
campaign,
three
$50,000.00
have
state
of
number
of
$122,000.00
of especially strenuous activities, the services of
been invaluable.
The President has visited a
year
Goebel
dent
saving
was
This year
4's
General Secretary is most grateful.
your
saving
The
has been customary.
as
appreciation
my
.....
and
New
wel¬
throughout
brought in contact with the bankers
when
1916-17, with
In
$1,031.89.
Burling¬
General
of encouragement; and the hearty
words and communications
accorded
the
the
of
loyalty
come
me
appreciation and
Committees; and
State Vice-Presidents and State
general Association membership;
Association,
the
the
For
office,
Farnsworth and
1921
courtesies rendered to him by the Execu¬
Departments, Commissions and
Sections,
$1,607.50.
was
Quincy,
Division,
and
hearty
most
his
expresses
further
a
officers of
Atchison,
i
Secretary
dues
Burling¬
Chicago,
17,328
APPRECIATION
The
Treasurer's
express
and
due
4
49
■
thanks for the help and many
the
expense
Par Value
4
0
0
be
to
Joint
5,979
total
Carried On
15
0
5
0
the
by Colonel
me
ton
2
4
in
of the other
1
0
0
to
wish
22
9
........
I
0
1
•
of
will
there
0
1
Venezuela
collect
to
the
2
0
.
cost
53
Panama
Domingo....'
it
items,
postage and clerk hire due to further economy in handling this work.
0
Mexico
Pines
1915-16
more
0
-
0
of
In
18
7
1
10
Isle
16,604 in
is due to the
increase $17,000
instead
13
Cuba
Of this
100
0
Rico
$31,645.
0
6
Rica
of
1
11
1
Islands.
borrow
brought about by having more of the work done in the New York office
2
4
Philippine
the drafts for membership dues were sent out,
423
60
Hawaii
1
1
264
Zone
and the
the un¬
to
1
32
Alaska
Owing to
compelled
1
21
.
been
4
123
.
$32,261.22
was
$3,098.58.
has
1
1
.
1916,
is
21
2
114
88
1,
1917,
1,
Association
proposed increase in dues.
18
17
3
Wisconsin
Porto
282
12
213
.
the
increase of amount
H
136
.
September
number, amounting to $277,700—an increase in number of 1,133 and an
o
<
105
.
band
September
expenditures
CS
1-4
03
02
hand
on
September
71
Virginia
Washington
Virginia.....
ffl
■*4
3
Report of the Treasurer, E. M. Wing
on
$20,000 which will be paid out of the first receipts.
*
o3
tc
o
a
a
West
usual
j3
k2
«
SS
__L
4j
-
"v
K
DO
U
CD
■*->
balance
balance
93
State
121
Bonds
67.59
50.36
12.74
3,963.00
2,000.00
fund
$337,322.62
Sept.
$3,098.58
Balance
1917—Cash
1,
DISBURSEMENTS
devices.
D.
J.
Col.
Powers
cil
in
1907;
the
For
(now secretary of the. New Jersey
Jersey's member of the Executive '
William J. Field
and
Association)
Bankers
Council.
New
was
splendid
which
progress
been
been
fortunate
tion
indeed
in
tendered
first
the
City
Kansas
at
our
last
this
fortunate
I
in
have
of
Cashier Bartlett
through
was
renewed at
there have been
promises made
the
invita¬
put
Atlantic
visited
In
dues,
1916-1917 overpaid..............
account
dues,
1917-1918 overpaid
Rent,
General
I
securing
assistance
for
my
local
service
to execute
the
received
many
on
and
comfort
our
happy
Most
occasions during the
several
this convention
sincere
most
committees
at
their
details of
year
and found its people
to meet our require¬
our
Association,
the
thanks
to
the
Atlantic
of
hands,
in
their
Executive
City
for
the
earnest
en¬
convention and on behalf of
to convey its thanks for this
the
successful convention and
unbounded hospitality of the city.
Ofiices and Sections..
• ••
Silver
Frederick
E.
Farnsworth,
General
Secretary.
1917-1918
expenses
presented to retiring President...
for 1915-1916 (Marwick, Mitchell, Peat & Co.)
Service
Auditors
Extra
dues
guests,
convention
expenses
Trust Co.,
Bankers
Telegraph
Premium on officers'
Cipher Codes
Institute of
American
Banking Section..
Section .\ ...
Savings Bank Section, special account
Legal Department
Savings
Bank
Protective
Clearing
Committee
House
Section
-
1,268.94
43G.75
756.04
253.44
517.23
Telegrams:
dues 1916-3917
collecting
express
and
Fixtures for General
help
Office
Treasurer,
for
5,883.37
32,497.55
8,059.68
13,925.97
809.49
members
new
Furniture and
collecting
City
the
Proceedings
Secretaries.
distributing Annual
and
all
to
and printing..,.,
2,000.00
140.30
10.00
Council, Vice-Presidents anod State
Executive
Extra
.........................
Offices
stationery
Postage,
Traveling
and
Offices
General
Salaries,
Treasurer,
done
willing to do all in their power
conclusion,
deavor
account
Refund
Telephone
been
convention.
ments.
Committee
i..,......
Refund
Convention
arrangements
ready and
$659.87
, •
.........
..
pleasure
our
enough to attend.
perfecting
ever
success
Fund
Office
Publishing and
invitation
this
membership
Signs,
will be carried home by everyone who was
forty-third convention
the
convention
Bank;
August. 31, 1916,
recollections of
has
effect.
for
each
their duty.
Seattle
and
year,
Everything
into
and
The Association has
year of men
who have
Atlantic City in response to an
in
National
City
Atlantic
selection
the
faithful in
assembled
are
we
made
has
period.
that
during
services
conscientious and
Again
of
their
gave
Association
the
given to all the officers who so
during the decade, full credit should be
loyally
First
Chairman of the Executive Coun¬
Pierson,
E.
George M. Reynolds,
President,
elected
was
and Lewis
Vice-President
bonds..
3,502.88
419.10
100.00
1.510.00
756.72
106.25
1.00
13,208.03
12,086.61
1.68
18,442.55
67.961,0»
7.090.82
BANKERS'
122
CONVENTION.
of
DISBURSEMENTS—Continued
Clearing House
Trust
Section,
Company
Department
National
1.53
Book of Forms................
opposed
8,643.07
Section
Public
of
Bank
Section
Journal-Bulletin
of
Agricultural
American
the
Association.,
Secretaries
Committee
on
Federal
Committee
on
State
Committee
Special
Efficiency
Committee
of
Digest
Legal
Loan
War
Credit
on
Discount and
Interest,
Balance
La
Crosse,
Balance
etc
Batavian
New
National
N.
of
Bank
in
effort
of
an
that
Messrs.
to
mem¬
Harding
impress
being made
were
upon
by
committee's earnest
the
there made for
and
Committee
of
at
meeting of
a
with
Twenty-five
Board
Reserve
word
the views
the
Washington
that
received
was
of
Delano
Federal
that
lection
the
desire
the
sub¬
Clearing
Com¬
adjournment of
on
Ilardwick
the
had
Committee
the
of
right
delay
a
mittee
passed
First,
with
to
the
amendmeht
Senate
and
the
amendment.
BriarclilT
a
agree
In
ac¬
sub-committee of
a
Washington
conferred
and
with
with other members of the
that
Committee of Twenty-
the
the Board in
possible
every
solution
permanent
four
of
of
the
the
to
way
Clearing
and
Col¬
reached.
in
weeks
which
Ilardwick
the
charges
shall
nation-wide
a
amendment,
thereon embodying
report
that
Ilardwick
the
assuring them
and
defeat
to
made
of
went
Clearing Committee and
Board,
cooperate
the
conducted
$337,322.62
Twenty-five
the
to
provisions
arrangements made at
of
problem should be
After
3,098.58
the
Reserve
desired
394.29
the
to
with
end
•
Board
number of
a
with
demands
the
Congress.
Council
meeting.
Committee
Mr.
Com¬
Y.
the
had every prospect
conferred
Board
Reserve
then
were
the
meantime
the
five
$2,704.29
in
York,
the
3,399.57
..... *
sixty-fourth
Executive
the
the
assure
Federal
the
cordance
bank,
National
Wis.....
deposit
on
merce,
in
deposit
on
Exchange
supplies, repairs,(
Sundry items,
of
of
substance
in
4,935.00
9.13
receipts.........
see
of
resolution had passed the House directing the House conferees to
18,530.10
Bonds,
to
and
embodying
611.20
Committees
Liberty Loan
In
209.86
Opinions
suggestions
cooperate with the Board in bringing about a proper solution of the
the Council
10,357.21
...
the
with
with much favor and
Twenty-five
of the Federal
Arrangements
5,601.45
Forms.
Meeting
of
of
reasonableness of
the
mittee
1,264.97
,
Committee
Delano
committee
235.06
v.......................
House
Despite this opposition
form.
accordance
question.
122.30
3,877.15
Contract Department..................
Council
Executive
to
Legislation.......... i.......2,998.66
—...........
in
during the
spring meeting
the
committee
1,776.30
„
Twenty-Five.....
Section
Bank
.
Legislation....
of
Committee
Purchasing and
State
%.... .
of
them
12,919.41
Section
the
and
11,928.14
consideration
final
bers
940.62
receipts
see
amended
passing when questions of international importance arose preventing
At
37,214.71
w...........
...
Commission,
Bankers
Library, Including purchase of Del Mar Library
State
its
4,398.92
Committee
Administrative
of
7,096.87
.
Committee
Insurance
Bill
Committee of Twenty-five met
6,690.61
Relations......
Banking and Currency Committee of the
the amendment in any
to
Kitchin
the
the
members of
the
were
be
the
campaign
was
Conference
Com¬
two provisions:
regulated
by
the
Federal
Reserve
against
the
Federal
Reserve
Board.
CERTIFICATE
AUDITORS
OF
Second,
that no
Banks.
We
audited
bave
that
31
of
accounts
of
Treasurer
the
the year ending August
accordance with the
tbey are in
31,
and certify-
1917,
balance of $3,098.58
We verified the cash
file.
on
first
the
Wall Street,
79
New York.
PEAT
September 18,
CO.
&
the
and
Senate
that
letter from
issue
of
Liberty
Bonds,
Reserve
Board
Federal
the
Bill
reported
as
law.
a
Clearing
by
Conference
the
Following the
sub-committee
of
the
Committee
meeting
Collections
To
the American
its
entered
Committee
the
in cooperation
its duties believing that,
upon
Federal
on
Legislation,
it
serve
with the
made
charged
was
responsibiliy of securing an amendment to the Federal Reserve Act and
such
changes
Collection
as
are
the
Federal
not only
operations
banks,
the
to
Clearing
Reserve
the
make
to
necessary
equitable,
fair and
system
in
modifications
and
System
of
the
of
Federal
but
the
the
the general
to
Committee
Twenty-five
Reserve
the part of the committee was to communicate with
the Federal
of
Reserve
Reserve Banks with
the view of
assistance.
get from
had
Also
acquired
The
next
to
Board
and' officials of
such data and
bearing upon the Clearing and
step
was
nation-wide
a
investigation
views, experience and advice of the bankers,
conferred
Board
with
in every section
facts that
and
The
next
1916,
11,
was
the
all
facts
tion
a
the
to
canie
21
members
question
from
subject
the conclusion
that
in
were
went
compiled
the
and
purchase and
compensation
change
the
to
counter
furnished
or
Federal
the
for
service
public,
and
whether
exchange
entitled to
are
be
•
in
sold
ex¬
Banks
to
items
cover
presented
by
those institu¬
erned
by
supply
between
no
the
bank
for
in
It
Act
pensation
direct.
drafts
A
to
all
Chicago
that
under
making
dollars
to
There
to
und
for
exchange
any
was
one
House
ten cents
amount
service
other
with
This
some
authorities,
charges for service and
to
the
banks
shall
expenses
is
a
reasonable
to
shall
exceed
the
total
Later
five
the
bill
a
have
incurred
Committee
Committee
of
was
of checks
conference of
held
with
the
a
a
taking
from
without making
other
the
Department,
law
charge
them
Bank
,
the
give
to
and
Reserve
collect
to
banks
on
reported
as
Bankers
that
from
time
Association
to
together
by the committee
follows:
as
Reserve
the
in
items
make
respective
should
of
bank
a
this
been
Reserve
expense;
own
originally
as
prevent
has
their
members.
Act
transactions of
than
this
service,
a
within
Reserve
Federal
The
to
incurred
of
from
character
placed
Board's
namely,
upon
ruling
that
of
currency.
firm
the
in
its
Federal
made
by
Federal
any
for
justice
the
Banks
Federal
interpretation
is
be
compensation
recognized
expenses
contained
many
upon
from
paying
shipped
Federal
been acquired
has
incurred
liberal
committee
the
be
the
undertaking
reasonable
Board
therein
of
one
of
and
are
to
Federal
expenses
more
but
by
Reserve
with
went
belief
Reserve
remitting
Reserve
that
the
the
Bank,
right
upon
Board
banks
recent
all
where
amend¬
to
fix
items
such
a
re¬
Federal
is
acting as agent, and that the Board is charged with
responsibility of fixing and. allowing the remitting banks reasonable
The
provisions that
in
view
of
Federal
as
supported
the
a
in
because
known
right
to
remitting.
it
the
as
make
'<
Reserve
Kitchin
reasonable
This bill
contained
was
provision
no
The Committee recommended
amend¬
an
and drafts
presented at any
sub-committee
of
the
one
Committee
time.
of
Twenty-
Banking and Currency Committee of the
House
in the h6pe of
getting the approval of that body to the recommenda¬
tions of the Committee of Twenty-five.
It was found that the majority
the
clerical and
nothing
your
leaders
the
pending Kitchin Bill providing that the charge in no case
ten cents per hundred dollars or fraction thereof based on
amount
a
charge.
or
the
collecting and remitting for checks and
Reserve
directing
to
to
ceived
and
prohibiting abuse by the few banks that make exorbitant charges, and
further if adopted would necessitate a legal interpretation to determine
ment
public in
Federal
that
reasonable
in¬
embodying the views of the committee,
pending in the House
that
now
necessarily
part
handling items deposited by their
Bank,
by
as
opinion
Fourth,
your
of
inate in
large
a
smaller
banks
imposed
upon
system.
modified
the
In this position
General
Counsel
committee
your
of
the
by
the
Federal
Board
measure
the
dissasisfaction
by
liberal
which
inter¬
Board
a
Reserve
Congress would
is
American
under
serve
to
elim¬
prevails among
the
throughout the country, because of the burdens that are
them through the operations of the clearing and collection
This
dissatisfaction
more
Your committee
resources
be
system
law
the
development of the
mobilized
may
responsibilities
proper
of
upon
System.
a
charge shall be made against the Federal
checks and drafts which belong to th&
committee is further of the opinion that
the
authority conferred
the
to
principal.
Association.
pretation
the
only
Bank
the
such
no
refers
Reserve
Bankers
provided
satisfactory
ments
com¬
checks
However,
par.
has
committee
entitled
are
transportation charges
hundred
per
of
Re¬
law
compensation for their services.
appointed.
conferred
with
measure
a
total
Federal
modified
daily
Office
American
that
subject
or
of
part of this report.
a
your
the
cover
recognized
time.
accordingly
and
to exceed
the
on
the
by the Federal Reserve Board.
direct
are
checks
committee
is
reasonable
furnished
as
Post
the
it
amendment to the Federal
an
whether
no .case
based
Washington,
then
was
It
what
to
in
of
of
charging its actual
remitting
cover
Board
clearing and
the
the
on
Banks
the
remit at
of
information
banks
The
the
to
agree
conditions
when
informed
provisions.
Companies
relations
the
present
charge
a
thousand
per
and
be gov¬
expressed.
Bill.
not
production
should
urged which would provide for
thereof
at
having introduced
above
be
compensation in
presented
Senate
the
$1
and
in
exchange
through
hereto
that
Third,
banks
sub-committee
from
warranted
than
of
cost
communities
is
that
unanimously agreed that
fraction
or
demand,
more
should
This
dollars
of
Committee
the
Reserve
of
this
to the passage of the law with
of
may
on
Second, that the provision in the
incurred.
further
was
and
various
expenses
Reserve
of
America
items
cash
and
opinion
and
rendered
passed
the
was
At
showing greater liberality in
that
cessation
activities
conclusions
position-by
offices
tions.
It
law.
sending to their members stamped
are
are
Express
Journal
the
attached
The
charge
through the medium of remittances made direct to
Reserve
the
view
being operated along practically
now
Reserve
and
Banks
a
the
drafts
data
drafts.
the
over
in
service
reason¬
providing
direct
the
with
the
satisfactory
is
its
to
number
currency
voluntarily
First,
sale of exchange is
incurred
expenses
that
is
delibera¬
on
noted
detailed
with all
carefully
mature
limited
a
Reserve
using
and
not
time
committee
very
relative
Federal
two
banks
also
in
The
December
The
over
after
legitimate function of banking and that banks
able
will
acquired.
were
attendance.
angle;
every
information
and
the
upon
meeting of the committee in Chicago,
a
which
considered
of
available
were
is
checks
of the country was obtained and all data, information
step
at
the
and experts
men
Federal
a
of Twenty-five
it was operated prior
as
charges
Banks
which
through
the
that
placed any interpretation
ruling
that
Federal
there
problem.
business
not
service charge thereon,
express
information as they
collection
lines
member
The
obtaining their advice, cooperation and
them
end
and
envelopes in which to make returns.
Federal
the
Committee
has
exception
any
first step on
The
assured
the
adopted
was
might be developed.
definite
any
same
their
public.
the members
the
as
Board
again
with
cooperate
Clearing and Collection system is
and
that
of
being
Chairman
of the modified amendment
passage
Committee
Committee
to
system
far
So
with
the
desire
collection
Bankers' Association:
Your committee
arising
fear
the
aiding in working out a -proper plan under the modified
Report.of the Committee of Twenty-Five Regarding Check
would
checks
this
to
the
on
banks
the
million Dollars exchange upon
Banking Currency Committee of the House.
became
1917.
of
sale
by a
the
of
The
MITCHELL,
House
the
from
1917.
MARWICK,
of
members
be made
supported mainly because of fear
were
a
aroused
at August
as
the
provisions
shall
charge an aggregate of
The disburse¬
above statement.
These
part of
American
the
properly vouched and the receipts are in accordance with the
are
records
for
Association
Bankers
ments
the
charge
meet
to
in
is
feels
the
an
one
of
the
factors
that is
preventing
important functions of the Federal Reserve
that
it
is
greatest
adequate
imperative that
degree
way
the
possible
in
the
banking
order
that
tremendously increased
arising from America's participation in the war.
A
settlement of this particular question will go a
long way toward
of
the banking
system.
Your committee believes that
unification
BANKING
ber
The conditions
to
be accomplished in the direction of making the clearing and collection
plan fair and equitable to the banks and the public.
The law has been
amended, but changes and modifications in the clearing and collection
all
made during
possible progress has been
been
have
system
of
that
effective
duced.
pointed
this
of
President
the
by
Among
Committed is
five.
of
re¬
in
services
to
desire
thank
to
Committee
the
Mr.
Counsel
General
American
the
of
in
and
notaries.
the
More
act defining
the
the
act
there
recently
the
have
been
Federal
on
from
for
Legislation
drafted
subjects
legislation
of
much
still
is
the
subjects
various
laws
fullest
on
done
nection
with
of
work
the
committees,
of
number
a
in
year
and
in
there
,
adjunct
•
demands of duty entailed
To render still
and
to
it is un¬
refer in any detail to
to his work in connection with such committees.
This
secretarial
been
has
well
as
of the Association
had
have
preparatory
the
that
before
of
the
laws
holiday
State
to
which
would make valid
,
by
banks and other transactions on
to
this
resolution
which
subject,
State,
As
the
your
law
passed this law.
Counsel and adviser of various other committees and sections of
Association,
Committee,
istrative
lation
connection
Committee
Association
Forms
and
Secretaries of all the Sections
their
work
tective
and
has
and
with their work;
Credit
on
has attended all meetings of the Admin-'
also been
drafting
resolutions
and
docu¬
participated in the work of the
has been
constantly consulted by the
the legislative
from
Apt,
to
bankers
enacted
were
imposes
which
Bill
Revenue
impending international
the
called
on
for
of
it
as
the
of
tax
a
that
committee
include
should
law
8
per
March 4, 1917,
crisis crowded many
and no laws, of
provision
that
cent,
upon
of
the
all
profits of
suggestion
a
capital
term
was
made to the
referred
to
in
the
undivided profits and the law
passed was so worded.
was
business of banking pending in the Sixtyof committee, but which failed
Among the bills affecting the
fourth
the
surplus and
capital,
.
which progressed out
Congress
to the congestion of legislation and the consideration of larger
and international problems are includihg the following;
owing
national
1.
bill
A
authorize
to
national
(
-
banks
of
avail
to
state
guaranty
of
deposit laws.
2.
bill
A
authorize
to
the
Secretary
of
the
Treasury
to
surplus
use
lh the Treasury to purchase or redeem outstanding interest bear¬
moneys
the Association through its legal and semi¬
organized and persistent effort ac¬
complished important results In the i promotion of uniform and bene¬
ficial legislation affecting the banking interests and in the standardiza¬
tion of forms of commercial instruments.
The recommendation by the
Inter-State Commerce Commission In June 1908 and adoption by the
extra¬
which began Decem¬
program,
except
of Representatives
House
the
of
Means
chairman
legal advice by the Pro¬
During the last ten years
the
corporations in excess of 8 per cent, earned on capital invested.
While
that measure was under consideration by the Committee on Ways and
in connection with the various phases of
Insurance Committees.
and
last
and endeavoring to carry
Sixty-fourth Congress,
advising such Committee of the progress of legis¬
the
affecting
in
ments
Counsel
your
and
Congress
Sixty-fourth
the
of the
session
interest
vital
the
has, already
Dakota;
South
the
short session ending by limitation
a
Reserve
Federal
in.
One
in
since
Federal. Legislation
on
has been directed toward watching legisla¬
legislative measures, including proposed amendments to the
important
Pursuant
covering
Federal Legislation
on
given to the committee by a vote of the convention
session
was
that
During
amendment
to the different State associations.
committee
your
originated
1910,
ber,
the Commit¬
Saturday half holidays.
Committee
the association
second
The
the payment of checks
prepared a draft of law
Counsel
forwarded
was
authorized
a
Patox,
Kansas City.
at
your
to draft and recommend a suitable
State Legislation
on
some
Committee
Administrative
the
October
Last
tee
which
tion
your
This since became
signed by the Governor on April 7 last.
being
Maine,
B.
General Counsel.
■
ordinary session of the Sixty-fourth Congress,
measures
Stater associations,
Act.
Instruments
Negotiable
of
work
The
convention of
Counsel attended a hearing
Committee last February and made an argument' in favor
Maine legislature,
the
of
Committee
A digest of the pub¬
Gentlemen:
•
report of the Committee on State Legislation
results accomplished.
Upon request of the Judiciary
the
show
the
of these opin¬
some
by H. H. McKee
Counsel
of
forty-one States during
State Legislation,
in
The
printing.
to
Report of the
The
present year.
will
tax
Association
questions.
af¬
out the instructions
this Association in
by
favored
measures
pending
the
through
promotion,
the
in
active
been
has
the Committee on
with
and
con¬
in manuscript form and now awaits
,
attention.
share of
large
a
connection
In
charges,
collection
reasonable
in
advisory
reference to the pages of
the last year.
lias
forwarding of printed digests to
the Federal Legislative Council and other interested workers; the is¬
suing of confidential bulletins supplemented by letters and telegrams
as
the* exigencies of the situation called for;
interviews with mem¬
bers of Congress at. Washington;
participation in certain legislative
hearings; attendance'and participation in committee meetings; in the
drafting of bills and amendments for Congressional action.
The sub¬
jects of amendments to the Federal Resedve Act, including the provi¬
for
of
Over 600 opinions, published and unpublished, have
fecting banks and the preparation and
sion
the
which
in
engaged
amount
legal
submitted
upon
opiuions has been prepared
revision,
been
large
Thomas
a
and offi¬
and promotion of leg¬
has
a
members of
individual
opinions
members during
rendered" to
lished
proposed
Legislative
State
a
State Legislation
Counsel
committees,
legal.
as
general way the work in connection with National legislation
included the examination and summarization of all bills introduced
Iu
create
on
more
Federal
Federal Legislative Council as an
General
for
year
legal
published.
are
l>een
in this report,
that General Counsel,
subjects or
work
of their various activities and
subjects
the
covering
report
necessary
such
of
the Jouhnal-Bulletin
ions
Convention
this
will
nature of this work is sufficiently indicated by
its own
Each of these committees will make
Association.
the
the Sec¬
with the work of other committees and
lesser degree
a
tions of
each
done
rendition
the
Warehouse Receipts
State and
Federal Legislation.
on
which
in
Association
the
with
is
work
;-
.
before
which
Committee
the
to
the
be prosecuted to the
the field of constructive legislation
measures
nection
State Legislation
Committee on
The
pending
Constitution
adjunct
the Committee
to
from
islative
The Committee of Twenty-five
The Committee on
its
of
milflcatiou
committees on
respective
now
are
the
to
an
as
Aside
.
Federal Legislative Council
The
to
the-providing of more adequate
the paramount
cially establish the present unofficial
especially
more
of the
work
the
Council
con¬
Federal Legislation
Committee on
The
the past
during
active
Satur¬
on
has
'
further
in
and this work will
consistent with
extent
be
to
both national and state;,
amendments
been
noon
Association
Congress.
in
work
State
Legislation,
has
of
limiting
acts
through the energetic work of its legal com¬
laws,
Report of General Counsel, Thomas B. Paton
Counsel
on
the competency
o'clock
twelve
various subjects,
these
the present day,
There
chair¬
Judge Thomas B. Paton,
Association.
Bankers
transactions after
bank
Viewing all
at
effectiye
General
banks
of deposits
payment
providing
by the great war which overshadows our country.
The
the
authorizing
days.
Respectfully submitted.
Annual
the
known
punishing the crime
and
authorizing
acts
and
Act,
Bill,
funds,
without
limiting the liability of
the act
trust
drafts
or
Credit
Slander
for
Bank
liability of banks for non-payment of checks through error and the
credit
McKee, and by its secretary,
H. H.
Law,
with explosives,
names
checks
the
as
to
mittees, more than 200 enactments of laws in the different States, nslde
cooperation and especially for the assistance rendered by its
man,
Check
of
designed
Statements
also
our
protect
banking transactions safer.
make
to
False
known
drafted by
been
years,
States,
act
its deep
express
cheerfully rendered without compensation.
were
also
We
giving
various
and
the
are
raised checks,
or
two
bank
of Twenty-
appreciation for the untiring efforts of the Secretary of the committee,
Mr.
Jerome Thralls.
His work has been unusually effective and his
its
the
the
this opportunity
take
to
in
crime
and
measures
the Bad
as
burglary
forged
a
.
wishes
Committee
these
during the last ten
enacted
punishing-the
also
made
be expedited,
of the
authority to continue the work entrusted to the Committee
The
and
fraud
from
Derogatory Statements Act,
committee of five be ap¬
Association with full power and
that
recommend
therefore,
We,
Committee can
the
expensive if the size
less
have,
measures
banks
act
of
work
the
and
of
123
Association
and much yet remains
yet to be obtained.
are
believe
We
more
the year.
extremely unusual character
an
SECTION.
ing obligations of the United States.
3.
legal committees has, by systematic,
bill
A
permit
to
adjoining states
to
select only a
from
directors
their
located near the boundary line of
majority. instead of three-fourths of
of the state in which said banks are
banks
national
residents
located.
'
Bill of Lading in two forms for
straight and * order shipments
containing certain safeguards against
fraud
was,
in
itself, an
important achievement, largely effected
through the efforts of the Committee on Bills of Lading of this Asso¬
ciation, whose functions have since been merged in the Committees on
State aDd Federal Legislation.
Following this, has come the enactment
of
the Uniform Bills of Lading Act
in a considerable number of
States and also, in modified form, by the sixty-fourth Congress, stand¬
generally
carriers
cial documents
the
the Uniform
the National and State law upon these commer¬
of title and safeguarding in a much greater degree than
and unifying
ardizing
before
of
the banks
faith
and
commercial
of these instruments
purchasers who advance value upon
of credit.
The Uniform Warehouse Re¬
in a large number of States and we
now have a special
committee whose function includes the creation of
a
standard form of warehouse receipt and which will also investigate
the State laws which regulate warehouses with a view to their suffi¬
ciency to insure the safety of the holders of receipts.
The adoption
of the Uniform Negotiable Instruments Act in all but two States of the
ceipts
Act
has also been passed
of the efforts of the Committee on State
Legislation of this Association, working in conjunction with State
organizations of bankers.
This Act has been of priceless value in
standardizing the negotiability of bills, notes and checks the country
over
and has saved the banks of the country from incalculable loss
which would have resulted from conflicting States laws.
A large num¬
Union,
is
a
result largely
4.
•
bill
A
to
buy and
sell
known as the Webb Bill, the object
combinations of manufacturing and commercial
is to encourage
of which
houses
promote export trade,
to
abroad,
thus exempting such associations from
the
provisions of, the Anti-trust Act of July 2,
the
Clayton
'
■
-
A
bill
acts,
subsequent
so
issue certificates in
the
of
request
Banks,
5-
'
•
■
'
'
aniend the Parity Act of March 14,
to
the
1890, and section 7 of
1914.
Anti-trust Act of October 15,
'
'
0
1900, as amended by
as to authorize the Secretary of the Treasury to
denominations of $100,000.00 payable to order upon
Federal
Reserve
Board,
or
any
Federal Reserve
Federal Reserve Agent.
or
6.
A
bill
teenth
of
amend the Federal
to
Federal
of
interest
subject
of
to
bankers,
mentioned more than a score of other measures
exclusive of eight measures dealing with
the
introduced in the Sixty-fourth
not reported by the committees to which they were
"interest and usury."
and
sideration.
Utah and New Mexico.
to the bills
but were
Congress,
referred
Farm Land Bank district to be composed of the states
Wyoming,
Colorado,
In addition
Farm Loan Act by establishing a thir¬
not one of
were
them became a
law or received serious
con¬
BANKERS'
124
At
convention
the
City last October,
American
the
of
Committee
your
Association
Bankers
CONVENTION.
When
Kansas
at
in
by a vote of the convention:
-•
,
To
I-
•
with
cooperate
special
a
of
committee
fair and
reasonable
a
amendment to the
an
for
charge
and make an
themselves,
as
be
to
the
ap¬
effort
have
to
Federal
and
advocate
endeavor
legal
for
reserves
law
a
per
cent.—5
at
of
subjects first
many
will
report
our
recite
activities
our
with
deal
which
four
these
connection
in
legislation.
The
of
committee
25
for
the
the
proval of your legislative committee the following proposed amendment
had
Federal
further
Provided
shall
act
from
be
making
drafts
and
Act:
that
construed
dollars
this or any other section
prohibiting
charges,
fraction
or
presented
value
nothing in
as
reasonable
hundred
one
Reserve
at
in
no
based
time
exceed
ten
for» collection
of
payment
or
Your
legislative
committee
without
but
approved
to
success,
the
the
have
proposed
Banking and Currency consider it
in
R.
on
amend
H.
20045,
H,
When
two bills
R.
sentatives,
ment
effort
an
added
the
to
introduced to
it
but
decided
that
subject under discussion.
part
as
S.
of
7838
the House went to conference.
instructed
were
to
amendment adopted by
amendment
Senate
the
charge
Bill
and
the
the
on
substance
had
that
been
amendment
our
Board
authority
remission
lection
is
be
Senate,
modified
determine
to
reasonable
remission
and
by the
of
whether
made
against
give
and
recommendation of the Conference Committee
and
House.
the
while
Thus
accepted and the principle of the right of
the collection and remission of checks
fication
which
the
inasmuch
tion
of
the
is
law
that
the
at
The
Federal
Reserve
have
not
charge amendment to
make
of
them
to
committee
the
for
Reserve
advocated
Houses
two
serves
charge for
a
by their Federal Reserve Bank for
Your
of
upon
of
country
Banks
before
Congress
banks,
5
and
5
Banking
cent,
per
in
cent,
per
the
to
vaults.
be
small
carried
banks
Con¬
the
pur¬
congressional
wide demand
than
less
$300,000,000
Currency
introduced
circulate
to
the
of
cost
Reserve
the
by
re¬
Federal
the
When
stated
as
they contained
Reserve
Act
amendments
introduced
in
authorizing mutual savings banks
Federal
tained
by
tended
Your
but
with
amendments
permit
branches,
the
Banks
which
of
Even
it did
committee
to
relieve
Reserve
in
committee,
not
were
enacted
banks
under
a
certain
the
law
June
of
Federal
be
not
main¬
These
two
not reported
gate of
Board
to
in¬
was
establish
take
it
To sum
-
received
up
up
at
forces
the
time
kind
the
The
the
Senate
25,
which
comment
most
five
have
as
fight
it
the
had
was
over
Federal
its
of
the
Therefore
on
be
observed
your
that
an
Legislative
effort
to
that
the
collection
the
committee
of
Georgia
Reserve
charge
committee
subject
Act.
the
history of
Council
achieve
the
charge amendment
amendment, because it
Hardwick
under
report
will
on
except
and
the
legislation
as
The
Hardwick
that
Federal
to
an
state
special
on
was
and
its
Legislation
that
there
Federal
to
committee
amendment,
committee
desired.
introduced
amendment
special
measure
hearty cooperation between the Committee
in
preparations
in
the Hardwick
Senator
to
further
Federal
made
carrying out its orders, although all
harmoniously together to achieve the result
worked
by
special
a
Congress.
the
convention
hardest
amendments
make
leaders
adjourns and push it through.
Committee's activities in connection with instructions
last
which is known
of
Senate
the
Chairman
of
the Chairman
this
be
House
suggested
bills.
there
State¬
out¬
are
The country¬
which
and
be
the
it is
not
of
National
becomes
measure
borne
Con¬
by
Banking and
on
authorizes
If this
to
Bureau
authorized
Committee
plates
of
have
the
the
and
dollar
one
Senate
the
of
condition
notes
1917,
currency
as
for
of
clearly
are
danger
of
receiving
a
that
in
redemption
by
the
a
and
National
authorizing the issue
certain
relief
that
can
Engraving and Printing is
in
sections
some
of the
country has become
the
the
will
have
which
5200, U. S. Revised Stat¬
the
limit
security that
shall
in „the
being
law,
in
there
abused.
shall be 40
this
and
bill
to
any
one
to
be
seems
to
appear
which
provides
as
the aggre¬
way
not
and
that
maxi¬
the
of the capital and surplus
cent,
per
suspended
does
The
favorable consideration
most
be
be required,
may
that may be extended
defined
privilege
As
-
authority under the proposed law
bank
in
and
prescribed in
will
fate
in
they will
of
passed
in
analysis
"be
should
June,
of
greater
brought forward
be
stated
association
a
that
they
carefully
and
stronger
business
than
$75,000
in
excess
of
None
of
Statutes.
for
action
until
the
regular
session
committee
valuable
in
The
the
the
services
members
and
two
or
the
idea
of
to
making
the
to
members
of
this
The amendments
the
Federal
member
Reserve
banks
and
the
call
acknowledges with
by
those
the
Federal
deep
a
who
of appreciation
sense
have
been
associated
done
excellent
acknowledge
Without
little could
very
the
and
members of
work
the value
Council
the
with
us
"
.
and
through them
have"responded promptly and loyally .to
has been issued.
members
have
Legislative
of the association
that
are
desirable addition to the Federal Reserve Act."
rendered
of
it
banker,
every
the
particulars.
of
serviceable
forbids detailed
space
familiar
approval
one
with
more
Legislative Council
We
the
meet
time
are
•
members
Council
us
of
which
work.
our
every
lack
world, and it is the general belief that these amendments
important and
very
While
amendments
except perhaps" in
written
were
1917."
these
for
the
of their
the
have
this
splendid organization
been
accomplished.
association who
American
services
Bankers
and
thank
of
The
have helped
Association.
them
for
their
cooperation.
Mr.
of
He
of
Thomas B.
inestimable
has
made
the
committee
gressional
laws
and
terested
committee and
his
Tbe
and
He
your
appear
committees.
the
for
to
and
amendments
not
task.
Paton, the general counsel of the association has been
value
committee
as
its
adviser
and
secretary.
frequent trips to Washington to confer with the chairman
was
twenty-
case
The most notable legislative enactment by the
Sixty-fifth Congress
affecting banks is the law amending the Federal Reserve Act which was
will
Legislation. ~
no
section 5200 of the Revised
December.
Your
before Gongress
your
available
desired.
the
the
only partially successful
was
in
and
and
referring to this subject has been reported by the Committees
of Congress to which they were referred and it does not seem
probable
law.
worked
Commerce,
on
21,
will
which
accommodations
borrower
any
System
diligently in behalf of the Webb bill during
Sixty-fourth Congress and during the -present session of the
Sixtyfifth Congress.
It has passed the House of Itepreentatives, is now be¬
fore the Senate,' having been reported
favorably by , the Senate Com¬
to
of
$100
preparation
notes
the
mittee
were
association
which authorize the Federal Reserve Board to suspend
and
amount
limit
periods
conditions
telegrams
the
serious shortage of bills of
a
bills
law.
Reserve
by the Federal
or
committee to recommend that not
your
Sept.
Reserve Board
determine
the
to
were
into
for
counsel
larger amount of
a
bill
immediately,
Federal
the
the
sub-section
Banks.
Cummings
■
of
the
for
required
by whiskey are
letters and
though Congress enacts legislation
Four measures,
fixed
members
authorizing
general
additional
a
these
situation
the
cent.
Representatives
increase
balances
the Bill
become
not
of
Federal
and
proposed
member
provision
a
secured
acute,
point with
a
loans
the
That provision
being worked to its capacity printing Liberty Bonds, stamps, etc;
Your
committee will do everything in its, power to have the proper authorities
per
became
House of
commodity.
numerous
attention
larger volume of small
Bill
this
on
become associate
to
conditions,
amount
banks
amendment
to
the
stricken Horn
were
the other
also
certain
days,
member
Another
System,
under
thirty
provisions
with
Reserve
Board,
exceeding
Senate
provision amending "section 9 by adding
a
(2)
the
Reserve
The
in to the House conferees
originally
were
banks.
the
above.
Federal
the
1917,
country
in
give
pay
utes, have been introduced at this session of the Sixty-fifth Congress.
cent,
the
to
as
and
and
committees
by
by
the loan limit of 10 per cent, as fixed by section
sent
are
and the House Bill provided for 7
cent,
per
Senate conferees gave
result
21,
Banks
6
amount at
so
Government
$1.00 and $2.00 notes.
the
member
the
The
have
indicating
bills led
of accommodation
Federal
consideration
modified
was
the
Mr. Glass, the Chairman of the House
gress.
mum
be
the
and
for $1.00
carried
shall
reserves
faith,
good
destroyed
standing about $300,000,000 of small bills, $l's and $2's.
by Congress provides
cent,
under
was
in
the
on
indefinite
legalized commodity the
by the Treasury Department indicate that
be
per
which
the
authority of
issued
ments
finally adopted
5
which,
the
cent.
per
and
vague
about to be
was
of
use
August
Paton,
Reserve Act amendments referring to reserves which was
that
by
this
under
with
10
they would be under either the
of
month
Judge
destruction
of the Federal
part
the
committee called
The
the
per
the
the vice-president,
expected
checks
10
Bill
the
adopted
denominations.
Your
to
of
by
Hineh,
law
regards it
Currency
That
received
Mr.
Banks
collection.
the establishment
and
the
col¬
collection
the
purposes
Smoot amendment
for
position than
Early in
their interpreta¬
themselves when such
drawn
When
the
is
banks
recon¬
was
over
of the Food Control Bill
those
reasonable price for their
a
law
a
better
a
be
of
loss
the Smoot amendments.
charge for
right
remission
in
a
Board
the
thereof
of
a
action.
warehouses
and
for
useless for
statement that
a
banks
member
Reserve
the
was
plus
cost
the security of a
upon
commercial
committee
amendment
our
suggestion
utterly
collection
checks
by
amend¬
bank.
bank to make
a
amendment
the board has issued
as
having
for
be
used therein
as
protect
to
recognized by Congress, the modi¬
later
adopted
renders
for which it is intended.
pose
so,
Congress
Committee
ference
in
fully
and
collection
Reserve
44 cost "
not
of
owner
Currency
our
charge
no
the
to
taken
Currency
charge
it
law
a
million gallons
Smoot
Banking
adopted by the Senate
was
succeeded
we
Cum-
adopted pro¬
became
shall
Banking and
Federal
for
that
Federal
a
for
this
at
resulting in
by Senator
ojp
recommendation
the
charge
a
be
Senator
was
measure
bond
on
collection
a
in
Committee
passed
one
whiskey
amend¬
part of the House
the
contained
to
as
unreasonable
or
be
so
it
subject
to
Senate,
which
supply,
Committee
the Senate, but when the conference report was
adopted
the
this
grain
germane
our
presented to the Senate and the House several weeks after
ment
on
all
their money
bonded
owners
amend¬
not
was
Senate adopted
The conferees
to
agree
collection
the
the
Later the
the
and
House Committee
the
in
and
the Federal Reserve Act.
by
to have
made
was
was
7833
discussion in the House of Repre¬
under
was
committees
connection with S.
favorably
reported
Currency,
Banking and
ment
20045,
not
the President authority in his discretion to commandeer spirituous liquor
became
and
amendment
congressional
two
if
that
out
opposed that provision
did
which
of
conference
per
of checks
checks and drafts and remission therefor by exchange or otherwise."
tried,
before
was
amendment offered
the word
law
Congressional
bank
cents
the total
on
of this
non-member
or
to
case
thereof,
one
any
member
a
Bill
payment
upon
loaned
the
is
seem
The next day the Cummings amendment
that
Your committee
and
44
it
does not
measure
banks that carry loans upon warehouse certificates for
another
provided
ap¬
to
there
the
stricken out.
was
confiscation of at least two hundred
bond.
ground that
submitted
and
prepared
pointed
many
and
Government
other
with
,•
special
checks
millions of dollars in revenue to the Government and causing
to
sidered
object of solicitude to your Federal Legis¬
Therefore
then
and
Bill
Revenue
House
without conserving the
whiskey in
bill, having been approved by the American Bankers
Committee.
lation
while
the tax on checks
introduced an amendment
virtual
mean
whiskey
distress
an
Control
Food
committee
of
3.
Association, became also
the
later,
and
removed
was
Senate,
the conferees and
July 6th,
on
would
cent, in member's own
per
branch banking in any form.
The Webb export
by
bank
hibiting the withdrawal of distilled beverages from bonded warehouses.
provision
10
into
banks
vaults.
To oppose
in
not
was
to
the
all
probability of bank checks being taxed.
the
mings,
v.:-
enacted
country
with Federal Reserve Bank and 5
cent,
per
the
in
taxing
protested the exemption of $5.00
Before the bill was reported to the Senate
,
Your
establishing
tax
time any
adopted
upon
this
As
consideration
When
Act.
'■/
have
to
agreed
the plan
Reserve
referred
provision
a
committee
the tax.
being debated
being written by the Finance Com¬
was
contained
Your
oppose
exemption
was
work out a
remitting for checks and drafts upon
2.
To
bankers
equitable plan that will permit member and non-member banks
make
to
25
to endeavor to
not
it
$5.00.
of
Bill
Revenue
Senate
the
of
excess
but did
pointed by the president of the association,
War
the
mittee
Federal Legislation was directed
on
assumed
the
deserves
valuable
to
behalf
prepared
of
and
our
association
approved
existing laws in which
the burden of correspondence
Federal
and
work
Secretary of
He
in
he
in
tbe
Legislative Council
should
receive the
connection
Special
with
Committee
of
numerous
our
is
in¬
members of the
alone
thanks of
con¬
proposed
association
with
which
Federal
before
the
is
no
light
association
Legislation.
twenty-five,
Mr.
Jerome
-
BANKING
Thralls,
did
out
of
amendment
acknowledge
tion of his
Senator
He
which
was
work and
of
Georgia,
did
in
connection
Hardwick
introduced
in
collection
the
which
He
Act.
being
of
part
lively
resulted
Therefore
we
assurance
of
in
The past
succeeded
be
been
should
if
of
allotted
organizations
Federal
for
in
the
of
of
member
Every
Legislative Council
Federal
on
A
been
the
given
before
of
con¬
and
other
or
reason
following
forwarded,
Associations:
on
by
law
Saturday,
any
perform
this
passed
of
any
noon
of
amount
legislation
legislatures
received
iu
of
from
this
the
the
states
would,
Association
desire
is
keep
the
at
available
on
for
valid
any
close
the
afore¬
This
option."
own
South
other
at
transac¬
Dakota.
than
measures
has been passed
this year
have
reports
A
of the
call
upon
not
of this
summary
incomplete.
the Office
file in
on
is
and
any
be
be
compel
transactions
or
banks
Official
and
best,
any
Saturday;
to
entitled 'to
open
acts
affecting
6tates.
many
all
report
would
such
on
by the Legislature of
year
or
performed
or
be construed
to
certi¬
payment,
instrument
midnight, provided such
custom
or
whatsoever
manner
the
transaction
o'clock
of
General
such
yet
as
legislation
record
all
of
Counsel
members
as
specific information.
George
his
Member of
the
G.
Clarabot,
Chairman,
Legislation that achieves
only
by
aud
because done
noon
twelve
any
negotiable
nothing herein shall
to"
or
other
or
in this State,
reports thus far received is
association
state, for it is not your committee on Federal
Saturday
transactions
such
State
in
voidable,
Saturday after such hour except at its
any
large
by
been
in
where,
prepared
various
shall
or
specifically recommended by this Association,
as¬
have built
the
check
a
which
noon
business
has
keenly
are
them
states
other
and
make
committee
our
void
acceptance,
that
State,
o'clock
of
should
which are valuable
states,
their
members
many
iu
said,
It has called
Council
organization
This
and
them
to
Legislation.
with
cooperate
Legislative
Council
Legislative
Federal
work
this
law
service.
for
further
tion
of Congress referred to the
Federal
the
banks
which
Counsel
the
to
twelve o'clock
performed
or
twelve
behalf.
out
other
by
State,
render
or
certification,
done
bank
a
Association.
organized
The
with
took
statement,
acceptance of
provided
given promptly and fully and all forces at our
has been
the
splendid
up
nection
in
fight
hard
a
the three members
members
preserved.
in
made
has been a busy one for your committee.
have
interested
and
Harrison
Mr.
now.
or
payment,
appreciation of their efforts in behalf of the members
the
which
sistance
command
Act
Reserve
by
states
Instruments Act,
General
law of this
any
validity of,
Saturday between
any
form,
modified
a
checks
in
iu
as
approved
other transaction by a bank
Hardwick amend¬
in
though
was
explanatory
the
fication
was
the House
having
finally in
amendment,
cause
Bankers
year
upon
our
express to
our
of the American
freely
the
Federal
the
interest
in
well
as
resolution
which
Nothing in
McFadden worked hard
Mr.
instruct its conferees to agree to the substance of the
ment
and
Senate
of
payment
half-holidays
"
amendment.
charge
the
this
to
law
an
affect
incorporated in the amendment to
the amendment
Reserve
in
amendment
having it adopted there.
in the House to have
Federal
with
the
of
with
McFadden of Pennsyl¬
Lewis T.
Hon.
the
Sarturday
questionable validity.
Pursuant
publicly our apprecia¬
Mississippi, deserve our thanks for the
Pat Harrison of
a
provisions of the Negotiable
of
draft
Hardwick
valid
half-holiday,
the
are
to
is pleasant
It
make
on
of
invaluable
express
will
afternoon
tireless and persistent
to those in and
was
amendment.
that
for
his
the value of
instrumental
the
him.
work
which
125
transactions
tight over the
the
services.
they
Senator
burden of
The
upon
of
fought
who
vania and Hon,
work
fell
amount
vast
a
Congress
committee.
that
to
with
energetic in connection
particularly active and
allotted
Hardwick
and
been
has
the work
SECTION,
but the members of the
legislation.
It
association
are
can
the ones
and
keeping them
ing,
can
of
by writing to their members of Congress
who,
and do -secure results.
achieve
legislation
good
affecting
coordination
and
purpose,
in
if you
business to be enacted if
your
Respectfully,
direction
under competent
desire,
so
with singleness
convention, you,
of effort,
The
can
suffer bad
can
you
or
factor
Bankers
American
this
we
Committee
The
past
in
year
states
has
by
been
promoting
various
the
actment
Legislation
through
organizations
in
The
bankers
of
years'
en¬
of
achieved
,
Negotiable
Instruments
has
Act
by
passed
been
the
Legislature of Maine which leaves but three states, California, Georgia
Texas
and
The
Uniform
this
passed
Bills
of
by
year
Lading
the last
As
states.
Congress
governing bills issued
of
factory.
.
Uniform
The
act has
The-Uniform
Our
Act
credit
has
been
its original
Our
ments
by
Act
in
been
Our
now
this
passed
passed
has
year
Wyoming.
this
This
been
now
the
false
making
still
of
statements
12
in
certain
obtain
andv
has
funds
Nevada,
Oregon
been
of
standing
has
banks
beeu
also
the Banking Law.
to
in
Illinois,
Arkansas,
Dakota.
In
Twenty-
Iowa,
in¬
Missouri,
however,
these states,
all
ex¬
cept Illinois, a feature has been added under which if the drawer afterWard
ment.
In
check
the
makes
good
this
Arkansas
within
be
must
specified time he
a
done
"immediately
the drawee or'three days; in
demand by
in
has
drawer
in
good and
forty-eight
Dakota
South
after notification
hours
ten
Iowa
days; in Oregon
to
make
check
bad
ducing
for
time
the
the
Kansas
Dakota
38
in
Act
all
1916,
a
is
have
meeting
been
redeem
passed
same,
its
in
a
check
original
refused
of
guilty
or
now
this
In
South
In
mis¬
a
modified
'punishing
this
year
of burglary
in
Illinois
with
and
explosives
Iowa
their statute books,
laws
in two
which
has been
makes
23
of this character.
to
names
the survi¬
North
by
relating
to
competency
of
and
that
active
bankers'
of this
in
on
suitable
State
Legislation
amendment
to
be
State
authorized
Holiday
to
laws
infinitely
field
safer
farming pro¬
forces
indicated
in
the
of
October,
last
agricultural
of
City meeting
and,
increase
to
state
asso¬
new
your
Agri¬
efficiency of
the
districts,
were
to grow and
of the
many
the
when
committees
have continued
work
report
a
assigning
seven
Our principal activity since
agricultural
have further advocated
policy
the
into zones and
states
creating
a
as
result of this campaign.
a
of this
Wisconsin,
Ohio and Texas bankers' agri¬
Pennsylvania,
lines,
along these
have organized
and
will
testify
of county organization.
plan
incoming Agricultural Commission should be con¬
In
I
presently
that
so
committee
in
of
county
every
trust
we
state
every
have an
may
and„ a
banker
the Union.
redoubled our efforts toward
county agents, and no better proof of the
the
into
and in its campaign
war,
will
it
endeavor
for increased food
to
place a
county
agricultural county of America.
de¬
hundreds of „calf, dairy and
baby beef clubs," sheep, swine and poultry clubs, have been organized
by bankers all over America.
Thousands of pure bred cattle, sheep
Your
velopment
and
ers
of
the
livestock industry,
swine have been
and to children,
The
terms.
these
clubs.
paign
agents
}iave
have, attended
the
furnished
these
financed
They
advocate
the
and
have been sold to farm¬
purchased by bankers and
have
animals—they
to
members of livestock clubs, at actual cost, on easy
county
They
continued
has
Commission
Agricultural
colleges,
October 31,
purpose
agricultural
at the same
Committee in every one of these counties,
announced, that
has
every
the business
policy can be offered than the fact that our government,
have
on
City
twelve months we have
entrance
our
production,
agent
the
sounder
a
real
and,
and
the
was
into seven
while we
agricultural
cultural
held
organized,
the employment of additional
since
the
of
the Union
direction,
past
business
Agriculture.
of
bankers'
feature
agriculture
During the
playing
all
an
in
the
organization
of
the purchase and distribution of
the
scientific
The
enterprises.
packers,
are
used
been
to
testify
to
important
direction,
while
government,
the
the
agri¬
the
importance of these
part in the great cam¬
government is waging for the increase of the world's meat
You are all familiar with the plans of our Secretary of Agri¬
and of Food Administrator Hoover for the conservation and
our
supply.
a
of
chairman
to
the sound
to
experts,
Kansas
at
Iowa,
of your
this
in
our
engaged
have
The
country.
advanced
has
subdividing their
Missouri,
few
bankers
of
line
might
profitable
more
efficiency
state,
committees
efforts
wisdom
this
Departments
Agricultural
tinued
the
the effort to organize an active bankers'
effectiveness
The
of
business
happy to announce that,
Michigan,
a
have
agricultural prosperity,
our
was
every
the
movements.
Committee
business
member of the Commission.
Eleven states in
the Legislature of Nevada,
Committee
recommend
of
cultural
the
themselves,
These activities
committees
member
to
make every
length.
time has been
in
within
increasing
to
them at the disposal .of their
state
divided
we
this
credit.
those
chief
the
pre¬
is
it
to the
among
view
institutions
various
some
each
to
by
spread
to
apply these efficiency methods
Association
bankers
notaries
of
State
Committee
these
am
to
Immediately after the Kansas
committee
I
helped
banks,
movement
the
and
Commission and of the state bankers'
by
has
bank
law.
of the Administrative
the
at
work,
that
the
the law of 34 states.
law
it was
Resolved
draft
to
days.
ten
amended.
re¬
,
this year
passed
now
At
of
are
and
passed this year by the legislatures of Illinois and
recommended
Our
now
instead
were
making the issuer of
fails
authorizing payment of deposits
Carolina and
been
has
law
passed
who
and
states.
been
has
law
passed
all now having on
Act
The
vor
hours
the
defining the
additionally
states in
24
of
funds
This
demeanor.
The
to
provisions
was
check
In Florida,
making the offense a felony,
of notification
penalty
of
amended,
wag
further act
a
want
form
law
the
Provisions of this character
days.
objectionable, being in the nature of compounding a felony.
the
upon
Missouri within five days after
receiving notice of nonpayment; in Nevada within ten
the
punish¬
escapes
of
become
states
which
untarnished
which,
interest
the
and financial assistance
and
this
this
to
have
of
passed
South
and
States
outlined
our
law.
the
the banking
well
made
vital
a
upon
agricultural
purpose,
campaign
with
large banking
increase
to
advocated
cultural
state¬
is
make
How
which,
preparation,
intense
most
directed
have
our
extension
lending direction
jects
meas¬
We have heard much of efficiency these past few
that
Agricultural
either
maliciously circulate
who
the
experts
order
the
ciations.
form, is in force in 30 states.
persons
by
when
organization—
become
been endeavoring
has
nation-wide
bpen
farming—the greatest
your
from
respects
This law,
effective law.
an
to
Illinois
Arkansas,
in
changed
was
financial
have this
for
United
passed
in
committees
Con¬
in
year
proposed law punishing the giving of checks where there are
sufficient
in
has
this
military
as
of these experts and have placed
activities
Legislatures
but is
punishing
to
for
law
modified
law
derogatory
satis¬
total of 40 states.
a
has
passed in Arkansas as an added section
eight states
been
has
This Act
the
the
draft,
or
proposed
passed in
penalty
a
passed
recommended
the
in
Act
Dakota, West Virginia and
Illinois.
Arkansas
Id
of
-
providing
Nebraska.
Act
most
This
We are endeavoring to
the progress
is
subject
basis
adventure
accomplish
to
Commission
your
and several of
customers
19
its
production—have
lofty
necessary
America.
Effiviency
safer,
of
the Uniform
based on
foreign commerce,
important
"
•
by
livestock
Association
time
a
advocating ever since
prosecution of the great enterprise
that,
as
country,
years.
Bankers
at
benefit, aims to make the peoples of the world free,
agricultural efficiency.
time,
Transfer
Delaware and
necticut,
New
act
an
this
on
been
now
Stock
states.
passed
Receipts
North
Montana,
important
Minnesota and
.
Warehouse
Delaware,
was
This Act has now been passed
in inter-state and
legislation
of
uniformity
persistent effort
Missouri.
Legislature of
the
Hampshire also passed this law.
much
after
Act,
and
time has aroused
this
services
the law.
to pass
yet
been
engaged—that
just
which
40
State
success
has
feed
found
is
doctrine
follows:
as
have
the
some
tot
recommended
and
Association.
Bankers
American
fifth year of Its existence,
successful
has
the
of
free, to enjoy the blessings of liberty and self-government.
paredness
during
active
been
have
State
approved
measures
American
the
Uniform
The
State
on
the
are
We
State Legislation
on
food,
in
nation
desire for material
as
Report of Committee
the
Association.
.
Commission
Commission
increased
Federal Legislation,
on
this,
upon
the
ures
McKee, Chairman,
H.
Committee
Agricultural
enters
laws
indifferent.
are
you
H.
Chairman
Gentlemen of the American r
Therefore,
assembled
here
Report of the Agricultural Commission, Joseph Hirsch,
affecting bank¬
informed of the merits of legislation
Association
Bankers
advise,
and
suggest
culture
development
of our
livestock
industry,
and
it
is
of special
interest
BANKERS'
126
to
committees,* has been assigned a part in this campaign.
cultural
The
•
state
associations,
livestock
and
cultural
bank
in
banker**, prominent in the work of the bankers* agri-
how many
note
CONVENTION.
which
have
vigorously conducting agri-
been
to the marked
will testify
movements,
increase
and to the de-
loans,
the Increasing safety of bank
deposits,
veiopment of rural prosperity and contentmeit.
If you want first-hand
knowledge of what has been accomplished
as a
direct result of bankers*
agricultural
activities,
turn
to a
Illinois
furnished
has
to
few of our states.
example with its remarkable livestock cam-
an
placed
2,500 calves with
days.
Wisconsin
boys and
clubs within
of these
girls
testify to
Michigan will
and
seed.
believed
Wisconsin
The
agricultural
increase
while
distributed
state's
the
campaign for pure
of
which it
is
average
seed
from
yield
of
an
per
The'
which
lost
is
'
of poor seed.
because
annually
acre,
millions
Michigan bankers hope to save their state some fifteen
dollars
their '
with
conjunction
in
variety
ja
wheat
to tliirty-eight and one-half bushels
twenty bushels per' acre
of
acting
bankers,
have
college,
will
ninety
what has been done in
the development of the dairying industry,and in their
bred
and it is stated
organized scores of calf clubs,
Bankers have
paign.
have only
you
campaigns, conlargely under bankers' auspices, which have saved millions of
entire
ducted
dollars
to
South
has
engaged
farmers
southern
safe-farming
upon
and
have
marked
agricultural
an
revolu-
agricultural and live-stock projects have been engaged upon by bankers
as a result of its influence.
I have just been scanning the pages of
our little publication for the last twelve months, and, in my judgment,
there are few banking magazines which have presented their readers
with articles from higher or more authoritative sources than have
appeared in the pages of the Banker-Farmer.
Among the notable contributions received, let me mention articles especially written for the
Banker-Farmer by Secretary of Agriculture David F. Houston, Assistant
Secretary Carl Vrooman, who graces us with his presence on this oeeasion, by Hon. Bradford Knapp, in charge of the government extension
work in the Southern States, Herbert Quick, of the Federal Farm
Loan Board, and other government officials.
In May we were officially
requested to run President Wilson's appeal to the farmers of America,
which was reproduced on the front page, while in August we published
a special communication which was sent by Secretary Houston to the
Agricultural Commission, asking the co-operation of bankers in twentyfour states where a surplus of perishable food crops existed,
A copy
of the Secretary's letter was sent to the association of the twenty-four
states mentioned, with a request to reprint in a bulletin to be sent
out to all their members, and, as a result of this action, the Secretary
of Agriculture was able to get into immediate touch with the bankers
in these states, and the department expressed itself as much gratified
and
at the results accomplished,
The Banker-Farmer played an important part in the home garden
and canning, campaigns, and special articles were written for the paper
by Hon. Charles Lathrop Pack, president of the National Emergency
Food Garden Commission, by Madam Leonarda Goss,' editor of The
Farmer's Wife, while notable contributions were received from num-
comn^ttees have received the enthusiastic support of the scientific
forces of the United States Department of Agriculture and the Land
hers of editors of influential farm journals, deans of agricultural colleges, and others.
But, not only agricultural leaders have contributed
Grant
to bur pages. The Banker-Farmer, true to its name, has been furnished with many leading articles by a number of the greatest
bankers in America, including President Peter Goebel and VicePresident Hinsch of the American Bankers Association, Messrs. Frank
tlon
in
agricultural
wealth
Colorado, and
sylvania,
that
have engaged
will bear witness to the
policies advocated by the
upon
has resulted,
prosperity
greater
committees
agricultural
Tennessee and
Arkansas,
other states,
many
bankers
where
bankers'
In
cotton.
activities.
bankers'
fact
Mississippi
has been tremendously increased a» a resuLt of
Missouri, Kansas, Washington, California, Perm-
of
land
the
the
Colleges.
has been the
interesting feature of the work during the past year
An
banker-farmer
association
meetings
has
at
conducted
colleges.
The Wisconsin
two of these joint meetings—the last conagricultural
the
The
being attended by 500 farmers and one hundred bankers.
fercnce
their agricollege at Pullman, while the chairman of this Commission
had the pleasure of addressing a session of the California association
which was held at the University Farm
School at Davis, California,
at which about 500 member^ were
in attendance.
The bankers were
conducted
association
Washington
excursion
similar
a
to
cultural
4
first conducted
evidences
eal
in
tree
sion
on
in
held
specimens
hundreds
tion I
bankers
industry
practical
This
which
is the
appointment of
of
them
it
which
we
have forty-two of these
giving
not
are
this movement today
The greatest need in
active agricultural committee by every state
an
present,
of every
general wei-
to their own advantage and the
this
to
committees, but
measure of support
the efforts of every
the
work
when
this time,
deserves—especially at
and
banker
of the colleges and the
There are scores of projects upon
its infancy.
in
their communities.
At
which
country—the. bankers are acting as the
our
fields.
the
is still
association.
of the
development
the
to
the scientific forces
bankers can engage
fare of
some
of
forces
work
to
between
link
attention
their
This is the kind of bankers' agricultural work
prosperity
bring
connecting
conven-
their communities as a direct result of this very
in
practical meeting.
will
most interesting bankers'
the
was
praemade clear
and it got quick results, because many California
turning
now
are
livestock
It
A
value—the
value—of thoroughbred livestock was
bankers.
of
attended,
ever
shown
were
Percheron horses.
accompanied^eacb exhibit, and the
Ileal dollars and cents
to
bankers
The
swine and
sheep,
cattle,
pedigreed
of
minute lecture
live
Following this, an interesting ses-
pavilion.
livestock
the
the Union should be joined toward in-
farmer in
creasing our food and livestock production.
outlining plans which it believes to be sound, and has beep endeavoring to co-ordinate the work
of the state agricultural committees, but seven men can not, of themselves, make a success of this work.
We need a leader in every state
and we need followers in every county of these states, and I call upon
The
Agricultural Commission
president
state
every
utmost
national
always
has
and
secretary
upon
members
the
of
this
us
active, personal assistance in this work, which has now become of
your
to
been
Bankers Association to give us these men and lend
great American
the
and
has
been
importance.
but it
sound,
duty to see that your state association
cultural
which
committee
always
has
It
been
important—it
so vital
It is your
will
join
in
establishes
good, strong agri-
a
policies advocated
the
by your
We can not dictate the policies of any state
province merely to suggest and to encourage eer-
Agricultural Commission.
association—it is
tain
lines
of
How
are
to
get
endeavor.
we
in
we
three
to
and,
As
the
to
selves,
have
with
First,
third,
in
work
the field;
which
will
There
second,
reach
correspon-
like
busy men—they are engaged in their own hanks,
many
days
other
of
their
time
personal
to
work
in
and,
so
far
as
of
this
also
feeble
a
medium, with
sent
there have been
field.
in
touch *
at»i>est,
the time and the means at our disposal.
Yet,
office of the chairman alone
Commission have been equally
of the
to
28,000 bankers of America,
by
reach
credit rate sheets and
and
the publication of
an
our
tenant
leases,
diligent.
But,
in order
only effective method
can
be
official journal which will bring to them the
appeared
It
as
occupies
it
is
a
the
has
continued
to
increase
the
editor, L. M. Tobin, the
scope
of its usefulness.
unique position among the banking journals of America,
only
publication
interest in
by the scientific
a
devoted
better agriculture.
bankers'
received
exclusively
to
arousing
the
It has been enthusiastically
forces of the government,
copies of
in
the
the
model
of
pages
the
better evidence of the actual value of this magazine
no
than the fact that individual banks have paid
copies of the paper,
landlord
magazine,
us
be
can
while hundreds of
offered
156,000
$4,282 for
which they have distributed to their customers,
Now, just a word about the method of distribution of the BankerFarmer.
We have asked the state associations to co-operate with the
American Bankers Association by subscribing for this magazine
basis of the small charge of twenty cents
per annum
on
the
member bank,
per
This is approximately one-half the cost of publication, and this method
of distribution seems to me to be absolutely fair and equitable.
If
the American Bankers Association were to send the paper only to
members of the Association, as has been occasionally suggested, it
would today reach some 17,200 bankers, but a large "portion of this
number
are
city bankers, and while their interests
the publication, it Is, nevertheless,
well served by
are
fact that the bankers
a
desire
we
most to reach are the small country bankers who frequently do not be-
long
to the
American'Bankers Association, but
the state associations, and
tions to co-operate with
who are
members
this very fair basis.
us on
I do not think the matter of this joint distribution has been fully
derstood by
number of the state presidents
a
of
therefore, asked the state organiza-
we have,
and
secretaries,
nor
un¬
by
members of our Executive Council, aHd I trust this makes it clear to
because,
you,
which
we
during
are
the
uext
engaged is
the co-operation of
every
months,
twelve
when
important,
especially
so
work
of
the
the
work
ought
we
state bankers' association, and I
Agricultural
advocating through
Commission
the
and
policies
Banker-Farmer are,sound,
the
want the as-
If the
have been
we
theni
upon
to have
they ought to
reach to every Htate Association, but we cannot reach thorn unless you
help us.
I am not going to burden
with
you
the detailed report will appear in
you
extended financial
an
the printed proceedings,
to know that the entire coBt to the
report—
but
I want
American Bankers Association
for the work of the Commission during the past twelve months, includof
the
associations
state
tions,
and
other
$11,928.14.
Of
this
Banker-Farmer,
$2,438.47
sources,
amount
and
$651.40
Briarcliff meeting,
but,
expense and in the
publication of the
An
last
May.
was
This
the
every
joint
We
bank
received
subscrip-
expenditures
cent
were
attaching, to
used
Was
Commission
attended
by
a
was
large
held
the work
and aroused great interest.,
agricultural committees was held
a
on
At the time this article
large attendance.
at
number
meeting of the Agricultural Commission and the chairmen
the state bankers'
the
In office
paper.
was
of the members of the cotmcil, and ladies,
A
total
expense
Agricultural
meeting
$4,506.
Individual
Our
outside of that,
interesting meeting of
Briarcliff
was
from
$5,000.
over
the first day of this convention.
Banker-Farmer
We haVe also
through reading' the -Banker-Farmer.
During the twelve months ending" August 31, our circulation was
Of this number 152,043 copies were subscribed for by twentyfive state associations, who distributed them to their members, while
indications pointed to
doing through the medium of the Banker-Farmer.
in
We
.'>"16^684.
plans and purposes of your Agricultural Committees, and this we have
the able direction of our very capable
thereof.
result
several thousand
which
been
Under
work
This is the kind of practical work by which we have been reaching
the bankers, and hundreds of them will testify to the fact that" their
interest in agricultural and livestock development has been aroused
out, during the last twelve months, not less than
1,300 communications, to say nothing of circular letters, while the other
members
valuable
sold, at practically cost price, over 20,000 copies of the agricultural
from
keep
matter
Tobin.
the Banker-Farmer has done
dred clubs have been organized as a
ing the publication
to
by correspondence with the states assigned to him, but this is,
it may interest you to know that from the
Mr.
have furnished thousands of these forms to bankers, and several hun-
Each one of the members
faithfully,
endeavored,
editor,
of our
pen
furnished-many
editorial
and
preparing printed forms for the organization of life-stock clubs.
possible, they have given
their personal time to this public service.
has
In' addition to this,
have
special
while
have been from the facile
your-
yet they
the
number of calls to deliver addresses before bank-
organizations,
of
Commission
are
all the bankers.
the members of your Commission,
first, "method,
are
given
and
personal
committees?
agricultural
official organ
an
They have accepted a
ers'
these
contributions,
slstance of every member of this organization to that end.
I
bring these matters before the associations—how are
touch
methods.
dence,
our
committees
articles
agricultural
bankers'
state
valuable
been so important,
has never
nation, as it is at this very moment.
the welfare of this
the
seed testing, experiments
selection,
fertilization, etc.
spraying,
was
farm and were given practi-
tour of the university
a
the value of seed
of
Vanderlip, George M. Reynolds, .Tames B. Forgan,* A. Barton Hepburn,
the governors of the Federal reserve banks, and by a number of
the presidents and secretaries of the state bankers'
associations,
My associates on the Agricultural Commission afid the chairmen of
of
September 24,
was prepared,
It is planned to co-ordinate
the movement to every
of the state committees and extend
state association.
Representatives of the United States Department of
Agriculture and of a number of the agricultural colleges have promised
to be
in attendance.
There is
which,
n<p feature of
the work of the American Bankers Association
in my judgment, is of more importance than that of
your
Agri-
,
BANKING
cultural
Commission.
organization,
with
the
and
achievement,
me
the
on
the
as
of
Fred "N.
if
have
Wheeler
Commission
veritable
to
with
with
as
president
brilliant
Commission
service
special
this
pay
served
ripe experience.
of
N.
O.
likewise, served
worked
in
close accord with
in
1
appeal,
Agents.
telegrams,
and
benefit
and
the program
burglars,
ators,
of
support
to
Agricultural Commission;
the
state
work which is
a
banker who engages upon it and which is
every
farm customers—a work which
their
has
been
always
the fullest measure of your support.
Hiuscii,
sneak
men,
OF
thieves,
OUR
Win,
J.
Burns
ham,
Alabama;
Colorado;
land;
Chicago,
and
telegrams.
comprising
bogus
check
oper¬
AGENTS
Kansas
City
and
the
period
the
crimes
of
than
other
could
be
committed
expected
against
members
proportion
in
of
the
to
the
large
membership,
Inc.,
Birming¬
Denver,
Louisiana; Baltimore,
Louis,
St.
Ohio;
Minneapolis
Missouri;
Mary¬
and
Des
E.
Moines,
Sears,
Phila¬
Spokane,
Iowa.
They
Oklahoma
Commerce
Second
South
also
and
East
London,
I
wish
special
Building,
Memphis,
Dallas, Texas,
Salt Lake City,
Street,
this
time
Tennessee;
and William
R.
P.
Duffy,
Utah.
the
this
aided
the
United
department
Federal,
534
]
State,
Canada,
materially
very
and
county
their
for
States
during the [fiscal year.
cases
representatives,
Montreal and Toronto,
in
own
thank
to
throughout
have
they
five
have
Hous¬
correspondent
one
England.
at
authorities
of
and
City^ Oklahoma; M. W. Williams, 408-409
Trust
They also have offices of their
and
Washington,
c/o Hotel Albert, Jacksonville, Florida; A. B. Cooper, 908
Building,
of
and
St.
and
Buffalo
Oregon;
Portland,
has
now
California;
Michigan;
New York; Cleveland,
Seattle
Texas;
ton,
ejovered by this report there has been no marked
number
the
Agency,
country, as follows:
Francisco,
delphia and Pittsburgh, Pennsylvania; Providence, Rhode Island;
Colcord
Report of the Protective Department, L. W. Gammon,
Manager
this
San
Illinois; New Orleans,
Minnesota;
York City,
New
Bunk
in
and
Detective
in
own
Angeles
Massachusetts; Detroit,
Boston,
Paul,
Los
Schumacher, 601 Young Street,
increase
forgers
DETECTIVE
International
twenty-three ofHces of their
C.
Chairman.
in
and
communications.
complete record of each.
a
OFFICES
at
Joseph
Association
received
also
has
letters
has 5,420 photographs of criminals,
now
hold-up
with
The
the
for
for our National Defense that it becomes your patriotic
duty to give it
increase
2,132
Editor Tobin has been
economically sound, but which today has become so important a factor
During
department
letters and other
PHOTOGRAPHS
The department
of
these
faithfully
closer relationship and a better understanding between
a
the bankers and
Annual
The
written
include circular
not
us.
again,
once
the work of your
bringing about
in
and
Vice-President Hinsch and General Secretary Faroswortb,
conclusion,
material
Detective
our
letters
wheel-horse, while grateful acknowledgments are due Presi¬
Goebel,
ciation
939
These figures do
while Mr.
associations and the individual members of the American Bankefs Asso¬
of
the past twelve months ending August 31, 1917, the Pro¬
Department has received 29,929 reports and other communica¬
from
agri¬
chairman
as
so
tions
Sams
as
tribute. to
you
During
tective
its
since
ever
Gordon of Missouri,
have
who
of
one
served
rendered
has
distinguished
desire
I
intelligence born
who have
been
associated
only
Committee and
but
Agricultural
rendered
has
with
an
not
presidents of their state associations,
committee.
your
has
been
lias
CORRESPONDENCE
chosen
be
should
past year
who
men
R.
127
committee of the
permanent
Commission
the
Association,
the
of
In
the
J.
a
the
the Agricultural
of
and
Shepherd
Idaho
dent
of
Messrs. Will C.
members
a
become
that
and B. C. Powell of Arkansas, have,
cultural chairmen
the
of
Bankers'
member
a
feel
Mr.
chairman
as
organization in 1913.
of Ohio,
I
is because
Wisconsin
service
should
members
care.
Commission.
distinction
of
it
It
the
utmost
SECTION.
local
cooperation,
the
in
for
investigation
L. W. Gammon,
Manager., ■'
'
ARRESTS
'.
For
the
period
from Sept.
1916,
1,
Total cases
Total
disposed of arrested prior to September 1,
not
arrests
since
September
1916..........—
1,
Report of Contract and Purchasing Department,
George Lewis, Manager
including..August 31,
to and
up
1917, I beg to report as to operations against criminals, as follows:
1916.
.
.
443
.
Contract
The
113
............
not
was
556
Convicted
..
Released,
department
420
of
136
tive
the
16,
On
1917.
trial
Council
referred
to,
These
are:
department.
1916, up to and Including August 31,
1917, there
have been
burglaries and attempted burglaries on members,
and similar
crimes
non-members,
Since September 1,
on
as
follows:
Non-Members
Members
required,
General
the
nual
Arkansas
..
..
1
California
2
physical
1
the
in
1
Idaho
vised
1
Illinois
..............
...
....
7°
16
2
6
3
.....
—.....,,......
Michigan
Minnesota
...
1
3
members;
2
3
The
most
ducted
department
.9
3
3
Oklahoma
Oregon
Pennsylvania
Tennessee
12
into
1
..............
of
1
;
the
Including
for
the
an¬
of
printing
the
charge
take
to
of
until the finished
of
the
and
spring
and
service
expenditures
The
upon.
$50,000 annually.
study
constant
of
super¬
Through
and
printing
market conditions,
effected.
requisitions
receipt of
on
and approved by the
signed
General
by
Secretary.
just closed there were received 317 requisitions,
out.
sent
were
Frequently
work
which
appointed
of
a
this
with
connection
requisition
one
May
facility
and
of
the
The
campaign
the command
con¬
of
manager
Loan
War
task
a
been'called
has
Loan
General
mailing,
at
resource
matter of pride
June.
and
member
printing and
the
department
Liberty
the
which
the
Com¬
brought
of the depart¬
that the total of one and a half million
pieces of printed matter sent out by the Association
1
..................—
every
a
and
except
Association last
was
It is
of
work
conventions
at
about
constantly
orders
in
charge
play
ment.
1
Texas
in
mittee
use
purchase orders.
was
the
by
2
its
at
the
of information
bureau
be called
buying
are
important
do
contract
to
general
a
may
of
year
several
to
upon
Dakota
Ohio
as
made
are
purchase
for
and
supplies,
the publication
for
„
rooms
6
2
.........7
York
1
2
Nebraska
calls
office
meetings,
spring
department head
or
444
and
1
Missouri
purchases
section
functions
all
and by keeping in clofee touch with
savings
During the fiscal
2
.
act
methods
problems,
No
7
a
Kentucky
to
capacity It
considerable
3
Iowa
Kansas
con tracts
this department amount to
by
economical
paper
Indiana
and
whatever
for
to arrange for mailing and addressing
meeting
for
arrangements
meetings,
-
Georgia
purchase
conventions and
at
programs
1
2
Colorado
North
make
to
to
out
1
Arizona
New
To
proceedings aud to follow up this work
sent
are
and
Council
$950
to assist in the preparation of literature sent out from
Offices,
book of
books
segregated
was
As¬
Spring Meeting of the Execu¬
outlined the
and
stationery, printing of all kinds,
when
it
but
Bankers'
for the balance of the fiscal year.
Its first formal report was made to the
Awaiting
it
Executive
The
old,
years
appropriated
9,
May
ten
the American
that date
separately.
Briarcliff,
at
is
Department
departmnt of
a
charged
meeting
139
..
Purchasing
March
expenditures
.
insane and died
escaped,
its
until
spring
281
>
.
and
formally created
sociation
during the period
th§ campaign was produced without delay, In an incredibly short
and with scarcely a typographical error. To cite a single in¬
time,
Washington
2
Wisconsin
Of
attacks
the
members
on
nineteen
were
unsuccessful.
twenty-seven
Of the attacks
on
'
$35,372.68,
while
by
the
loss
been
,
connection
sustained
-
have
In
members
$64,637.11.
There
burglaries,
thirty-one
by
During the same
a
burglaries
non-members
on
them,
while
or
to
loss
of
members
on
there have
been
on
rule report all attacks
with
a
on
non-
loss, $200.
them, also the exact loss
the other hand non-members rarely report attacks
with the result that
we
following
burglaries,
of
the
figures
are
given
for
and attempted-burglaries,
.......
Members
3 o'clock meeting that after¬
printed.
the
pamphlets
Each
time
the
country
eloping of the loan,
into type
the
of
reported
banks since the inauguration
known:
upon
that
1,608
Loss
$2,307,581.94
497
Loss
302,173.88
The
Forty
was
On
the
thousand
copies
printed it meant
Saturday
as
every
afternoon
the
bank in
preceding
final urgent appeal in leaflet form
put
was
thousands were printed and sent on their
to endure.
to
show
that
the
department
as
way.
now
or¬
probably as great a strain as it will ever be
Fortunately, during the period of the campaign
work in
the approval
to
a
cited
entire attention
been made
Other
are
has withstood
almost al! other
show
mailed.
piece of. matter
circularized.
was
afternoon many
ganized
called
a
being
and a proof submitted within half an hour, .and in the course
instances
These
were
addressing and mailing of 30,000 envelopes,
buying,
With
information
on
protective feature, such as are
Non-Members
your
the
to
the pages received a final O, K. at 11 o'clock that night, and the
do not obtain
record of some of these attacks or losses.
The
form
day
so
a
in manuscript
in
the proofs were ready for the ap¬
proval of the General Committee at its
of
forty-nine hold-ups
on
handed
was
next
the
|
hold-ups
the loss sustained,
campaign
noon,
was
amounted
loss of $135,143.74, also one sneak theft,
Onr members as a
sustained;
period
the
printer at 10 o'clock one morning;
were
with
$66,640.80, also three sneak thefts with a loss of $1,370.
members with
during
,
1
sustained
loss
successful
the sixteen-page " Plan Book " which proved so extremely valu¬
stance,
able
non-members thirty-nine were successful burglaries,
thirty unsuccessful.
The
1
2
....
.....
the General Offices
was
practically suspended
be given to the Liberty
could
of the General
Secretary,
several
Loan,
contracts
liave
during the past year for letterheads, paper, etc., which will
the advantage of the
economies
ure
in
Association during the next few months.
contemplation.
department endeavors to practice economy without hysteria,* and
efficiency
without
stepping all
over
itself.
Respectfully submitted,
Difference
.1,111
$2,005,408.06
George
Lewis,
Manager.
BANKERS'
128
CONVENTION.
forms
various
Report of the Committee on Insurance by H. E. Parker
first
minimum
the Members of the American Banker&
To
Gentlemen:
Because
of
the
special
minimum
Association:
consideration
which
probably give at this convention to insurance matters generally,
be of value
doubtless
work for
mittee's
The
of
paid
forms
Which
by
bank
would
that
theory
the
complete protection
vital
a
of
various states
companies
of
out
begun,
was
examined,
were
tained showing
work
form' of
improved
Much
improved.
companies
Committee instituted
lias
been
for
our
created
It
discouraging
activities.
made
We are
offset
to
happy
coming into very general
are
obtaining without
tection
than
the
For
instance,
companies,
paid
the
to
of
contains
months
Our
by
the
within
or
copyright
sold
is
tie
the bank.
policy
contains
of
su¬
for
used'in
entering
of
use
explosives,
tools,
enforced
ments
is
itself.
It
1913,
the
by
Committee
would
burglary
lengthy
a
losses
paid
losses
$71,516.56.
to
For
the
twelve
last
September 1,
1917, burglary and hold-up losses paid
amounted
$103,207.86.
to
Association
the
and
insurance,
and
cost,
insure
of
the ablest
of,
the
its
through
W.
fidelity bond
is
justified
forms,
life
together
banks
of
this
proposal
exceed
$500,000
Committee by
banks,
would
Association,
Inquiries
to
and
execute
all
our
the
your
upon
mittee
bond
of
the
member
that
country,
on
which
recommended
point out
to
this country,
proposal
to
in
Hayden
member
pre¬
banks
to
Amer¬
Lloyds4pay
same.
no
li¬
litiga¬
&
of
Com¬
this
Your
Committee has submitted this
companies heretofore licensed to
the matter is at this time having
insurance
forms, aud
these companies.
Some
of
them
have
already
that the bond will be furnished to member
of tbem has already written your Com¬
the lower rate of $2 per thousand will be charged.
In
Committee
bond
designed
bond
was
to
finally
leading
One
request
Committee has outlined the history of the blanket
meet
the
American
the
insurance
companies,
System.
ties
the
and
effect
of
E.
have
duties
impose.
Parker, Chairman.
I
:
take
pleas¬
the
Act.
banks
has
represents
prior
Trust
Kansas
at
devoted
various
in
its
influences,
Companies
of
join
the belief that
largely
to
Federal
the
possible,
wherever
to
and
efficient
an
energies
functions
to
Re¬
Federal
the
mobilization of the
a
country.
the
given
to
responsibili¬
these
meet
congratulated in having in
It
Is,
national
facilities
of
sense
a
its
to
bnt
Law.
the
the
increased
brought, tremendously
banks,
be
to
that
lias
war
Reserve
immense
an
its
dpne in
themselves of
law
used
are
Federal
exist
Executive
The
held
were
prosecuted
has
the
our
satisfaction
This
did-not
members.
these
of
been
of
national
the
to
its
to
rendered each'
has
the United States would benefit and strengthen
into
entrance
Section
Bank
two
Section
and
This was
national
avail
may
Banks
interests of
profound
has
has
of all banks in
banking
America's
,
The
and
State
responsibilities
the form of which
conferences
and after disapproving
At
tion,
The
by
offered
There
is
anything
over
of
security
doubt
which
system
the
this
country
present
year
war
Reserve
Federal
and
no
sense
a
time
this
the
satisfaction
enactment.
advance
in
full force
with
therefore,
banks
amendments
Briarcliff
its
passed
meeting
the
during
the
Executive
Committee,
placed the machinery of the Section at
ernment
has
had
the
and
Federal
Reserve
Banks,
resolu¬
through
the disposal
in
materially
of
the Gov¬
$he flotation of all
war
loans.
following
Immediately
cil
the
of
machinery
the
the
sections,
departments and
ciation.
It
rendered
all
practically
of
Briarcliff
Section
its
was
committees
valuable
and
energies
to
meeting of the
merged
of
the
eflicient
the
with
of the
that
American
service;
other
Bankers
in
fact,
proposition
one
Coun¬
Executive
for
Asso¬
devoted
entire
an
month.
The
addresses
The
has
Section
development
gatherings
Section
has
in
legislation,
and
be
harmful
The
to
to
the
of
of
particularly
to
the
of
of bankers
co-operated
effort
to
prevent
banks
Secretary
affairs
Committee
been
interested
the acceptance business.
of
to
Legislation
competition of Lloyds,
approved by your Committee after many
other
before.
endorsed
the event of
opinions,
and
continuance
strengthened the law and broadened the powers of national banks.
selling
annual
and
Messrs.
all
is
the
the
most
a
representative
that
and
and
the
more
form
for this
of Lloyds bears
this
brought abroad.
this
the
copyright
previous reports your
with
form
a
Committee has been exceedingly busy answering
your
of
in
be
to
American
consideration
advised
in
banks
h# highly
proper
business
have
regarding
proposal
American
and
it
have. transmitted
hanks
which
of
in this city.
one
development
System,
reserves
prevailing
losses
gives
this, country
number of very large and
a
deem
we
to, transact
suit
pany
but
particular group
paying claims
to
insurance
ican
cense
for
pay
incorporated
Committee,
the banks of
this
for
reputation
your
tion
only
your
to
had
gratifying
the facts
you
Convention
the
of service
meetings;
Section
the
manner.
serve
cost
but discovered during the
of
the
Reserve
Accompanying this proposal
undertaking
not
of
paid by
Although
time
miums
thereto
approval
premiums
insurance.
excellent
at
This
the
five
encouraging
Lloyds submitted
& Company, of
on
amount
enthusiastic
the Execu¬
opportunity of saving $400,000 per annum on the two million
an
dollars
of
to
of
the National
year
held
has
The'work
containing all of the essentials of ouf copyright
addition
the
met
Hayden
reduction
prior to the execution of the bond,
thereof.
which
of
group
F.
\V.
20 per cent,
a
of $2.50 per thousand.
of bond
in
and
occurred
offering,
the
to
to
have
we
instance
by
to
be
to
have come
we
may
it,
making
tried
have
we
anil the pleasure of the Association
outlined
Committee
particularly
recommend
of
as
command
without
any
increased
an
encourage
reported
Your
which
each
in
as
representatives
is
it
line
well
this
the
at
activities
the
but
that
you
in
their, pleasure;
with
have been
City, two at Briarcliff. and
to
than
the
submitting the following report:
Committee
heavy expense,' whereas;,
consideration
due
reputable
a
representing
Mellen,
rate
form
new
a
claims
their
Committee
your
from
proposal
E.
Canada,
Montreal,
May
Last
given
has
however,
insurance.
a
large
at
of
experience
long
are
While
incurred
President and Gentlemen
in
month
'
Committee,
Council
the
existence of the bank may depend
very
.
bank
tive
of
payment
and
services,
with
During its second
insurance at the expense of their protection.
be vital—the
may
it.
Your
of
the
the banks
to
present rates does not constitute a
at
coverage
upon
important
office
Report of National Bank Section by Joseph S. Calfee
reduction
a
York
some
expert
interests with
emphatically
have
we
as
of
some
attention,
your
New
times.
all
at
burdensome.
to
to
to
banks
his
and
of
all
interests,
report
correspondence
our
the
Committee,
Association
always
seem
too
matter
A printed list of
education
by
knows
controversies
to
insurance
been brought
non-member
to
insurance
not
and
,
Committee under¬
any
enclosure from
H.
Mr,
ure
per
of
coverage
the
Committee
your
Respectfully submitted,
of
237
increased
the
is equivalent to
cost,
of
for loss
upon
the Association.
detail
insurance
able
Which experience
of burglary
amount
has
increasing
that
more
possible
as
the cost of their
cost
the
nearly
as
cheapen
The
infinitely
banks
member
submits,
the
cent.,
per
from
foresaw such
one
your
interested,
Committee,
in
and
of
cannot
work
to member banks
while the membership
words,
without additional
is
it
23
the
to
Committee
Your
of
paid
hold-up claims
cent.
other
increased
has
banks'
In
policy
being received.
mail
lengthy and
committee
We
ending
months
time
safe
committed
1915, these
For the year ending September 1,
$30,§23.27.
amounted
some
the
assisting in the settlement
,
amounted to
conditions
to eliminate
as
policies paid
upon
banks
member
to
be
Committee,
the
of
you
from
of. the
in
report
us
your
a
valu¬
to grow, and many most satisfactory ac¬
previously
a
member
have
we
stood.
for the year ending September 1,
hold-up
and
make
both
be
to
to
to
form
one
to
obtaining
robbers
No
help,
opinions
may
Committee
impartial to all
contact,
of
#
the"
to
the improve¬
of
of all
paid
policy
without regard
enumeration
An
interesting to note that
total
copyright
new
with the time lock
etc.
your
Our
equipment.
the
equipment
burglary into
report
than
so
remove
was
and
for
asks
or
are
is
of the
each
of
report
opposition
old
to
burglary
case
able
not only
changing
of
instance,
as
in
is
with
valuable to your-Com¬
forms
burglary
no
losses
bank
has
this
of
membership
and
In
For
been
has
Com¬
up
after
case
bank
their leisure.
introducing
of
the
that
fair
policies did not pay for burglaries unless explosives, electricity or tools
were
all
up
the
being used
opinion
the
the
is
but
abreast
burglary
information
Secretary
this
similar
The
which
purpose
cannot
bond
Under the old
warranties.
no
following
in
services
the
warranties
maintenance of burglar alarms,
equipment,
of
burglary
copyright
by
made
periods,
Our copyright
etc.
the Insurance companies,
sold by
insur¬
and
bank,
your
takes
once
member
undertook
latest
The
cost
When¬
member
a
Committee
copyright
and
such
member banks
now
in
loss,
it at
open
bank.
to
the
Insurance
schedule of warranties which
a
reported,
sort
any
is,
at
coverage,
keep
our
bank
except
furnish
the
by
the Secretary of
to
the
conditions.
new
acknowledgments
The
months
the
to
us
time
to
which
for
to
advantages of the membership in
unlimited
by
service
this particular has continued
is
in
cent,
per
contingency.
cases
to
our
hereto¬
the initial
in
A continuance of this work
enable
by
the
this
of
use
than
continuous.
reported
your
and prior to that time
addition
and
insurance
fifteen
bond
forms of bond
The old
would
character
to
as
Our
six
bond.
the
of
warranty
policies
existed
sold
tha't audits would be made at stated
employees
no
burglary
bond
Is
which
the
building and
of
the
la
burglary
on
of 237
be
to
grown
in
knowledgments of service
the insurance companies.
by
of
conditional upon
were
guaranteed
pervision
etc.
of
of discovery.
period
bank
paid
forms
old
within
discovered
termination
companies
ance
the
smaller
however,
coverage
reduction
a
insurance
in
forms has
also
rates
encourage
increase
an
its
you
time
burglary
such
these
number of claims
under
if
Western
a
in
wider
Your Committee
In
pro¬
has
sustaining
it
from
created
to
takes
banks
that member
complete insurance
more
a
to
a
than
hold-up
or
valuable
that
entered
bank
In
defalcation occurring during the life of the bond was not
a
unless
after
cost
result of the wider use of these more liberal
Increased
been
the result
in
covers
that our copyright forms
however,
to
banks
possibility,
of
Committee's
your
the
.
report.
question
most
the
premises
heretofore enjoyed.
ever
inevitable
The
additional
of
the
to
due
insuiv
new
of the
copy
amend
the
and to meet the many
results
with
use,
these
is
bond,
1
.
reported
of the insurance companies to
the
to report,
are
the
create
to
that
Committee
robbery
been
a
felt
'
the
ago
the part of the member banks
task
easy
no
a
dangers
tbem your
continued
value
more
your
bank
and
insurance
but after copyrighting
forms,
been
has
efforts
the
by
of
burglary,
a
mittee,
and
robbery
charges
reduction
a
Protective Department at once sends
able
systematic campaign of publicity through which
a
to educate the member banks to their use,
them,
as
offered
was
forms, to overcome the opposition
ance
burglary,
whereas
companies is $625
Lloyds
the
the banks
to
have
we
of
obtained
have
settlement of its claims.
ob¬
was
The
companies.
annum,
claims under this form of insurance to member banks
insurance.
render
laws
of
average
not
we
and
has
a
insurance
many
The
infinitely
the
and these forms have from time to
growing demand on
a
forms.
bonds,
opposition
improved
these
to
of
contested claims
many
but
of
work
mittee
pro¬
of the insurance
policies
ever
the
service
nearly
as
the
The
Your
loss makes such
study
a
bank
of
was
the conditions under which many claims were not paid,
which
been
material
a
of
record
a
rob¬
losses
the cost of insurance,
the
obtained,
been
important
most
give
existing
hold-up policies have been evolved,
time
would
as
Accordingly
necessity.
first
fore
pyament of
many
schedule
has
Instead
the
insurance
additional
Committee
has
the insurance contract.
the
possible when
as
tection
the
forms
insurance
such
the
per
the American
complete.
the
the. burglary,
of wblch
when
Insurance
$1,000
the
Lloyds.
Innumerable
of
is
by
copyBght policies, giving
amount
of
of
insurance.
under
study
and
reason
to cheapen
the banks was not to attempt
create
bonds
by
the amount
whole
careful
A
covered
be
excluded from
to be
advanced
that
American
by
Lloyds bond
the bond offered
and
annum,
than
attempted
the
on
on
more
Com¬
banks
the
existence
the
revealed
the fidelity
both
in
from
banks.
member
use
thought
bought were found
Committee
the
that
member
to
far
were
hold-up policies,
messenger
the
contracts
in
forms
per
It will
your
Your
companies
insurance
Insurance
restrictions
and
bery
the
by
of
insurance
technical
to
results of
rate
three years.
the last
sustained
losses
many
to
briefly the
very
early investigations of your Committee showed
claims
various
of
review
to
will
you
rate
and
the
the
to the
Section
General
in
closely
get
The
in
encouraging
Secretary
ten
cities
with
the
of
business
has
certain
laws
Federal
on
and
corrective,
which
would
interests.
devoted
Association.
the
delivered
banking topics.
upon
Committee
certain -constructive
passage
has
He
a
great
served
as
deal
of
his
Secretary
time
the
to
Twenty-five. '
*
BANKING
As
result
a
net
a
gain
The
and
year,
with
the
of
of
the
The
that
banks
business at
the
usual."
sooner
facilities
the
well
send
of the
Bankers
to default
a
special
Sectiou can
of
Association
the
were
$403.13.
$8,330.
are
in
Section
the
Association
the
year
against
changes
the
The
the
fact
that
which
must
come,
brings
day
only.
on
John H. Puelicher
Report of the State Bank Section by
Mr.
Chairman
back
task,
difficult
rather
their
make
to
The
the
but
the
ok
Convention :
to the Association.
reports
Section
Bank
State
the two
from
to business
To take you
addresses you have heard just now is a
Presidents of the Sections are required
Gentlemen
and
was
of
and
voice
In
Association.
The
.
■
-
.
the
which
work
■
„
of
dedicated themselves to
Section
the
Federal Reserve Act which
would enable State bankers to join the Federal Reserve System with
n
sacrifice of as few privileges .as possible.
The Federal Reserve Act
as amended
takes none of your charter rights and priviliges from you
as
State bankers, but gives you in addition
to those rights all the
the
was
rights
Act
that
of
'
Act
is
complete and
is the result of the
of the civilized,
experience
the
banking experience of
is a good piece of legislation.
the world, and
civilized countries of
activities which will be presented to
The Section has further engaged in
the care of the Insurance
in this Session.
The
findings of this Committee were unanimously endorsed by a resolu¬
tion which was adopted yesterday at the meeting of this Section.
I
want to thank the President of the National Bank .Section, who
in
his report said
that the national banks have assisted and will
continue to assist in pointing out to state bankers who are not mem¬
bers of the Federal Reserve System
the advantages of that system.
We State bankers want to study the provisions of the Federal Re¬
serve
System carefully, m that if we enter, we may enter intelligently
and with the intention of staying in the system.
Some things have been said about the patriotism of State bankers
who. have
not joined the system.
We want to feel while we are
State bankers, yet in our patriotism and in our devition to our country
are
more
none
been
have
make
will
which
Committee,
there
activities
The
later.
yon
its
President
later
taries
in
recent
in
and
secretarial
each
this
closer
their places are
experience,
years
with
State secre¬
the forty-nine State
the older secretaries have
and while perhaps lacking
representing
Within the past year several of
associations.
retired
Section,
Secretaries
the
There are forty-nine
Gentlemen :
the
other
State
and
operation
new
men,
lack nothing in eneregy and willingness.
In
secretaries have kept in much closer touch"
the parent association, and the results of
with
and
harmonious team work have been more ap¬
than at any time, previously.
The State Associations stand to the National Association in about
the same relative-position as the groups stand to their respective State
Associations.' The mutual benefits especially during present times—
of co-operation between the National Association and the State Assoeiations cannot l>e overestimated.
Every State Secretary is coining to
realize this fact more and luore each year.
We believe that In the not far distant future to be a member of a
State Association will require membership in
the American Bankers
Association, just as membership in a group requires mcmliership in a
State Association.
Putting these links together is bound to create
in a short time a combined force that will not only lie invaluable to
the whole banking fraternity of our country,
but a tremendous chan¬
nel for various industrial and civil improvements as well.
There is.
parent during the past year
1
believe,
avenues
no
other
of approach
association in existence today that has so many
for the welfare of the states and of communities
generally.
Associations maintain their own headquarters, with a
secretary in charge at all times.
They are the ones that direct—
not altogether, of course, hut to a very creditable extent—their state
banking legislation, and through their labor and efforts many banking
laws
that have greatly benefited banks and bankers have been put
Many
State
the
Illinois,
to
membership,
and
and
secure
of
hard
worked
the
full
a
their report
pamphlet that is here containing the
I-
American
Allen
each
others
75
want
that
time
the
on
the
and
each
for
cents
" bears,"
were
Right here I
let you into a secret,
to
confidential.
for our Section was based not on a
at
"bulls"
that
fact
all
need
the
bulls
still
are
membership has increased
the
Institute
banking
tell
and we believe that
two
years,
if not
is
ten
and
me,
but
increase
in one year, must reach
for our purposes.
and 22,043 members.
chapters
educational standard will compare,
our
with any school in the land.
We realize
is changing.
Those of yon who have been
know the difference between
years
your
the customs of
We realize that banking is becoming a profession,
and we are working to that end, to produce
ambition,
our
of
l>ody
seventy-nine
America
in
for
of ignorance.
it
But
A.,
what is
now
and
B.
those of ten years ago, and I venture to say that ten years
today considered knowledge will he considered "little
today and
short
in
has
now
professors
banking
from
are
A.
2,490 graduates,
have
college
that
the
on
we
will provide the funds that we need
The
a
accordingly, is no
We need more,
getting.
that
money
which
membership
20,000.
We
We
the
pf ours.
We
w*e
Several years
blanket sum
the A. B. A.
Association, and some of
member of
3,000 since that time, and our revenue has increased
fault
The American
Assecjation :
will all treat it as strictly
on
but
year,
Bankers
seventeen years old and has spent a liberal
now*
money.
you
the appropriation
who
men
is
there
will
keep
that
thing
one
with
the
cannot
do.
up
we
procession of progress.
We
cannot
produce
a
greater insight and fore¬
sight and profounder patriotism than the long line of American giant
bankers, who have met every emergency that has confronted this coun¬
try and financed every war in which the country has been engaged
from the days of Alexander Hamilton and Robert Morris down to the
time of Peter Goebel and his seventeen thousand associates.
of
body
with
men
sterling character,
more
-
Committee, by Lewis E. Pierson
Report of Liberty Loan
the authorization of the Executive Council of the Wat
Committees of the American Bankers Association were formed im¬
Acting under
Loan
the adjournment of the
after
mediately
The purpose, as expressed
Briarcliff.
at
Council, was that the—
Bankers Association,
cutive
American
machinery
Spring meeting of the council
in the resolutions of the Exe¬
through its members and by the use
Offices, hereby offers to assist
distributing the bond issues of the
in the General
of
its
official
in
the
patriotic work of selling and
States Government.
United
"By the same resolution
the President of the Association and the Ad¬
authorized to appoint such Committees as
ministrative Committee were
advisable and
seemed
funds
necessary
and
The
first
the President was also
authorized to expend .the
the resolution into effect.
j
Council was communicated to the Secre¬
carry
Treasury who
of the
tary
support
to
of the Executive
action
This
replied that he would avail
himself of the
his appreciation of the offer.
step toward the execution of the work, thus laid out was
expressed
Committee, composed of the Adminis¬
the presidents of the several sections, and a
of the General Secretary, the General
the several section secretaries and the Manager of the Depart¬
Public Relations.
The President appointed me chairman of the
Committee, and later Mr. Fred I. Kent, Vice-President of the
appointment of an Executive
tiie
trative
(Committee and
Committee
General
Secretaries Section by S. B. Rankin
and
or
of interest.
47 of the
page
"
your
believing that
ago
Counsel,
Mr.
on
ok
of
amount
in
report
loyal.
Report of State
from
found
be
Institute of Banking is
should
changed is not true.
Evolution will change it; as our needs
known it will be further amended.
But as it stands today it
become
stock
A.
Graettinger
Dakota.
committee
The
will
II.
.
amended
as
South
sentiments
E.
he
never
the
' v"
Reserve
Federal
the
That
to make known
have been secured for
for the coming year is
Section
generally the privileges which
this direction.
in
them
into
before this
bankers
State
System.
The Federal
the greatest piece of financial legislation
the laws of this country since the adop¬
It enables the unifying of the banking
Reserve
States.
the United
The work
to
written
Constitution.
its
of
system
is
amended
as
been
has
tion
the
to
Federal
tlie
of
priviliges
and
Reserve
amendments
of
securing
ap¬
regarding
either
company,
a
was
Report of American Institute of Banking Section, by George
in
officers
found
of
A.
members
the
to
I will state that the financial statement of the Section
conclusion,
be
of
Section
Moehlenpah of
S. B. Montgomery of Quincy, 111.; and Sec¬
general reports.
approximately.
is
today
.membership
of
Wisconsin.
accurate
convention
this
at
B.
resolution
a
Secretaries'
the
referendum
a
A.
of
that committee were:
chairman ;
as
Bartlett
in
organized at Kansas City one year ago.
7,500 members <Applause).
The
future membership of this organization must come largely from
the State bankers in this country, and that Section, If well goverend.
is bound to wield a
powerful influence in the financial affairs of the
Its
the
MeFadden
were
"
by
take
Council
fidelity bonds and burglary insurance for its members
to carry
Mkmuers
opportunities for activity
new
to
Bankers
American
of the
Section
a
Executive
the
President
the
The appointees on
Milwaukee,
after war conditions.
the part of the
Section, and we believe, through close co-operation on the part of the
Executive Committee,
the Offices, the Vice-Presidents and the mem¬
bers, the Section will render service of a greatly increased value to the
'.banking fraternity during the forthcoming year.
Each
organization,
mutual,
of
It is not " business
liquid, believing that
by tlie Federal Reserve Banks they will In*
offered
committee
a
As
they do add much to its strength and power.
meeting
point
the
books.
and
can
authorizing
Appropriation
assets
their
they
spring
adopted
will
recognize
and
banks
keeping
are
to meet
prepared
the
Before
went
to
requested.
safeguard
they
in
have arisen
the
At
retaries
time is abnormal and that
present
To
adjusted
has
trip.
expenses
to
commercial
are
later,
or
be
will
amount
National
The
ensuing
the
he
that
afford
American
the
visitis
this character
not
the state statute
upon
the
during
departments.
those
one
on
returned
for
enabled to report
Association
representative
The
$7,500.
Section
The
expenses
are
Washington
these
could
cases
from
appropriation
$7,090,87.
estimated
with
received
Section
of
way
such
we
to
differences
with
member
Capitol.
of
of
matters of
Section,
the
to
Section
trips
each
of
members
the
the
number
a
thirteen
Government
the
individual
representative
handle
of
the
of 395 members.
year
made
occasion
the
relations
as
has
departments
because
activities of
the past
on
organization
for
the
of
in
Secretary
129
SECTION.
ment
of
General
Trust Company,
Bankers
General
this
On
composed
was
made Vice-chairman.
fell
Committee
the
burden of creating plans
and
This Committee ha*, its reach extended by, >■
the making of numerous committees known as the War Loan Commit¬
tees of the American Bankers Association.
One of Uiese was composed
of a man in each Federal Reserve District; another was made up of
operations.
the
directing
the vice-president for
as Readers, and
with the presidents of all state bank associations included.
These com¬
mittees were further subdivided by groups, counties and congressional
districts and, finally, the members of the Reserve District Committee
made up a coinmittee-at-large in
his district.
,.
,
, .
These various committees., comprising a total membership of about1,000 leading bankers, covered the whole country.
The line reached
from the General Offices in New York through the committees iu the
reserve districts,
in the state ami through the state bankers' associa¬
tions down to the groups and finally to the individual banking units)
This plan of organization was approved on May 9.
On May 10 it was
in process of execution.
On May 11 there was mailed from the General
Offices a booklet containing the text of the War Loan Act and the terms
and conditions of the bonds to 29,750 banks.
This was accompanied
by an appeal for cooperation and a statement showing the pressing
representative men In each state, with
active and
state
the
need
for
Thus
and
was
It
is
it.
three
two
well
the Executive Council
members of
the
and
days
days
way.
much easier
to
create
up
of those on
a
after
after the
under
new
the
to divert an
organization.
whom
authorization
by the Executive Council
plan of organization was approved, the work
complete vindication of the idea that
It was a
existing organization to a new use than
When the existing organization is made
the chief reliance is placed for
accomplishing a
BANKERS'
130
did
Association
operations. The
account has
been published in the Joiiinal.
Every man here and
every bank represented
is familiar with the outcome.
Every one of
you is an integral part of the organization and every one was a factor
in bringing the work
to a successful conclusion.
The theory in the
beginning was that the Association would give help particularly to the
country banks.
Banks in the cities, through their clearing houses, are
already organized.
Nevertheless, it was found that the ideas of the
General Committee are as useful in the cities and they found appli¬
cations there and everywhere.
But the dominant idea was to point the
way for the most efficient cooperation by the country banks, to supply
them with the practical plans for organizing their wauataiti#, for
selling the bonds on partial payment plans, for, aiding einplayeM to
get the bonds to their employees.
The banks were supplied with publicity material for use In their local newspapers and with copy for
posters and advertisements.
All these things involved the preparation,
printing and mailing of circulars, leaflets, booklets, cards and much
other material.
Nearly two million pieces of literature of all kinds
were sent to the banks
of the country in less than three weeks.
You
will undoubtedly remember that model sermons were prepared by two
eminent clergymen; these were in great demand and it is estimated
that these sermons and others they inspired were preached in 10,000
churches.
There was
essential.
was
for
the need
the time nor
under
done
great
pressure.
demand with expedition. "
every
%
Speed
no time for elaborate preparation and neither
long discussion.
The General Committee met
necessarily
all
was
pertinent that I speak particularly
is
with
strong
a
and
the
and
and
grasp
it.
compose
disregarded.
were
the situation
and
complete understanding of
a
through five weeks of time in which night
they never let go
sleep
who
men
'■ •;,
mailing
Their
than meet conditions as they
more
department
out booklets
They turned
idle.
never
was
arose;
the best publicity matter
produced flowing toward the newspapers and their output of adver¬
tising matter was not only unrivaled in quality but was used, in thou¬
sands of newspapers from coast to coast.
They provided picture slides
with
advertising matter and got them into 15,000 moving picture
theaters.
They organized a speaking tour of the country and got Dr.
Newell Dwight Iliilis and Mr. Lawrence Chamberlain to make it.
To
me
it seemed to be not only the greatest demonstration of versatility
They
overnight.
kept
current of
steady
a
have ever given
but it was positively competent under any test that can be applied.
Upon analysis we will find that perhaps we should not be surprised at
what was done.
On this General Committee there was, and is, a great
and
capacity
working
the
First,
diversity of talent.
tion
tried in
work,
and
bankers
clear
tilings
bank
who
fortified
as
able to
Counsel,
show
a"
long experience;
by
capable
of
and
was
facing;
themselves
trust
a
who
The
of
Distribution
Reserve
the
District,
of J.
Anderson,
&
Forbes
To
representative
will
be
of
made
is
contact
of
hundred other
institutions
a
secretary
company
whom
to
of
sions
the
naturally
The
of
kind
now
could
of
a
this
We
loan.
not
The
Association
loan
new
has
two
been
or
point
a
Committee,
to
while
success
would
as
The loa.n must be
The eyes of the world are
last one.
of
enemies
The
country
our
than the failure or the partial failure
for
had
them
to
defeat
greater
no
cooperation,
of
owner
than
its
If they don't understand
^information.
and our position
it
understand
to
amounts of money
these
vast
This
obligation
guidance
in
the
is
such
in
it.
if necessary, just why
needed and why they must provide it.
are
lead
and
teach
to
banker
The
work,
more
The best way
absolutely necessary.
are
made
be
must
and
dollar must be found and put into execu¬
a
people must be given
they
Work
wishing.
the
They must be Informed and they must be taught,
banker.
added
Thus
Committee.
General
the
Spring.
last
administer
be
to
organization, and
war
Harris
of
been
success.
Is
of reaching every
tion.
Sweezy,
also
for great efforts.
the
as
were
can
members
the other reserve districts
Bankers
the
hope for no greater victory
Success
two
it.
to
success
they
as
overwhelming
the
bringing
coming loan is going to call
us
Federal
will give its attention to such divi¬
boundaries,
of
assigned
be
same
on
work
making
Committee
second
President Of the Corn
Case, Vice-President of
J. H.
and
insured
by
the
the
B.
has
Frew,
of,the Liberty Loan
everywhere
and
Committee—Mr, A. M.
E.
Mr.
Mr.
of
in
Committee
Similarly in
American
the
member
a
and
and
& Trust Co.
Loan
Farmers
the
The
retained
completion
to
member
General
Walter E.
York,
Bank of New
Exchange
all
System may be fully and
of the Treasury.
Committee
General
the
be
must
Committee
the
& Co.,
Morgan
P.
Co.
representatives of banks—Mr.
of
Secretary
brought
Loan
to
conduct
districts.
reserve
Executive Committee of the Liberty Loan
of the
,
the
Reserve
Committee a
adding
and
by
of ,tbe
been
has
Liberty
the
to
the work of a national
Association
support
General
the
of
again
elimination
the
demands
the many thousands of its members
Federal
the
of
in
cooperation
of
chairman
the
cn
Nationally, the whole organiza¬
of the Treasury.
It is
organized
is
a
Reserre
Secretary
Bankers
intact so that
enlisted
scheme
which
that
rest in
the Federal
Bankers Association
Efficiency
American
members
not
are
efficiently
exclusively
but
community
the
the
ou
usually turns
inform
he must
know,
he doesu't
If
matters.
all
restis
whom
to
one
himself.
There
for
the
it
If
apparently
some
are
prosecution of
exist
doesn't
something
be
billion
created
must
maintained.
be
would
not
fore,
bank deposits.
with
safety
its
Reserve
position
A
live
in
With
In
was
the
tabulating the material
contained In nearly 9,000
reports from banks; a clearing house and
national
bank section secretary,
to whom was assigned the work of
It
for the play of his
a publicity man
splendidly equipped for efficient service and an expert on printing and
purchasing completed the unusual list.
The gaps were filled by volun¬
met,
for
be
in
Federal
Reserve
and
free
and
of this
System
is
dead
a
of an acceptance it
or
is a
issue.
currency
here,
use
with
credit
open
an
the form
in
but
faced
for
medipm
of the use of trade
\
of
form
the
rediscount
acceptances
can
best
banker,
expansion
the
abroad,
as
confidence.
found
is
key
the
the possibilities.
to
possible.
the
assigned
other
qualities;
•and
F.
R.
Ayres,
B.
bonds,
reputation.
national
of
Prompted only by a desire to serve, these two men gave their days and
nights
concluded
not be
«It must
division
special
the
of
these
that
Any
work.
anything and do it about as well
of
Association
the
It
usual.
I
results.
attacks,
was
from
members
future
Committee
them
the
trials
the
of
the
to
The
for
organization
bonds
to
in
hastily
The
together but
places
correct
or
went
on
„
in
It
purposes
organized.
and
in
and
the
counter¬
9,000
the
banks.
responsibility.
diverse
it
was
It
is
a
human interest
the future.
value for
Committee
all
and
not
Association
first
but
campaign
was
left
to
hurriedly
feasible
or
situation
sale
of
The
possible.
help
of
who eared
in
Kansas
now
to
are
two
The
these
various
mit
to
different.
Experience
plans.
It
is
has
taught
settled,
that
of
much.
There
that
the
September 24,
J.,
Association
your
1917.
wap
held
Council
the 'Executive
convention,
held
of
of
the
the
September
E.
following
29,
1916,
by election
E.
G.
General
Thomas B.
provides
Convention
Council
the
adjournment
Executive
of
for
Briarcliff
General
the
Secretary.
Assistant Secretary.
Paton, General Secretary.
report
that
General
met
Treasurer.
Sixty-eight members answered the roll call.
a
that
the
shall sub¬
part
of
the
of
the
session then assembled.
Council
the following officers:
Fitzwilson,
in
(representing that body)
Executive
Farnsworth,
M. Wing,
held
1917.
Constitution
the
the
of
was
9,
Association has published full reports of
Council
sessions
acts
Y.f on May 7 to
our
however,
Executive
official
Executive Council
the
meetings;
the
Immediately
on
of
ending with the beginning of the annual
There was
therefore,
Loan
Mo., September 2o to 30, 1916.
following
annual
the
important
year
of
Fred.
time to
City, N.
Convention
General
Spring -Meeting
organization
and there was no
War
the
dedicated.
sessions, on September 29 and 30, respectively.
William
coordinate
City,
.Immediately
to
harmonize.
time
The
Gentlemen.
The Jocknal-Btjlletin of
tried
duty
are
gain
momentous
rests a
To tlie American Bankers Association.
Lodge, Briarcliff Manor, N.
together,
Association
liber¬
we
Report of Executive Council
Loan
the
anyone
this
discharging
Bankers
that
savings.
the
and
tliem
On
to
be encouraged,
production
surpluses
program.
in
them
today
the
for
volunteer affair.
a
drawn
always
aid
American
There
is the
necessary
the greatest
with
purpose
increased
the
large
a
are
We
been no necessity
There has
of the
forces,
springs
is
War
the
interest.
intact.
was
To
that
production and
which
Committees of the
for
extended
through
from
himself.
to
things
those
Such production must
single aim.
Before the bankers
of
reports
It
charged with
compelling
initiative
the
be
must
is
wealth
of
proportions
When .war
and
country
Reserve
the
is
enormous
wealth—production.
production
Atlantic
and
The history
told
The
the
the
to
such
It
as
has been done than with that which is before
changed.
is
of
nation,
a
of
operation
duties
source
of
war
credit
ality.
one
it.
behind
experience
loan
a
other
owes
only
business
success
and
makep
banker
really
great
of
years
the
produced
attacks
unprofitable.
Offices
pronounced overlapping of effort
a
Conditions
been
the
has
sought
was
it.
take
has
irritants,
the utmost
been kept
has
for
respects
was
everyone
The
is
that
Chairman
other
work
that
is
of
do
to
do.
changing it
in
things
Committees
General
matter
less concerned with what
us
System
existence and that there
providential that the system is in
three
of that Committee
successes
suggestions of
now
able
The ordinary work
usual
the
would be
Loan
and
seemed
them
cooperation
of
were
General
War
work
is
There
of
the
of
with
loaded
The
of
record
marvelous
and
taie
done outside
what
All
spirit
the chairman
difficulties.
the
but
to be
of
anybody else.
as
halted.
not
,
unselfish
proud
am
werd1
There
was
the
was
themselves to any
confined
men
one
almost
nearly
the
the work.
to
are
and
Bogart, an expert on
writer
advertising
an
secretary
two—G.
shall mention
whom I
of
teers
section
bank
state
a
abundant opportunity
found
but who
organization
compiling and
securing,
of
task
is
in
is
the
entirely correct
is
very
the development
aid to
it
us
offer the
acceptances
be made
facilities of
industry.
every
trade
Board
Reserve
increased.
It can
the rediscount
of
use
clearly the duty of every
is
obligation
available
before
now
from
loans.
made.'
be, must be
Federal
The
trade
it
until
asset
asset
freest
the
Banks.
and
it will
as
to give every
purchase
frozen
there¬
be drawn
be greatly
expanding bank
by
only
great
that
rediscounting,
acceptances
Is
the
pockets
and
loan must,
It will
are—they must
probably
they
increased
through
Association,
in
Bank reserves
If the bank deposits are too small to permit such heavy
expansion,
Federal
in
be
can
There
money
tills
in
This new
credit operation.
a
term
we
medium
of
form
withdrawals—and
This
circulatory
The
could be diverted.
the
assume
They
what
from its present uses.
far If it
go
operations.
credit
by
of
dollars
Money
out of nothing.
cannot be materialized
war
must
It
four
oyer
the
worth recounting.
things
obvious
country but it cannot be diverted
veteran in his knowledge of
a
attending to the very difficult problem the savings
as
found
difficulties
legal
secretary
Associa¬
trained in
Secretary,
General
the
psychology;
through
way
savings
a
General
the
Association
the
hundred struggles,
a
their
of
forces
into
machinery kept
its
the
It is rather difficult to dovetail
the
of
identity
for
they an¬
ticipated them.
They made social and business classifications of the
whole population, measured the bond-buying potentialities of each and
devised ways for reaching them.
They answered innumerable queries
from puzzled bankers.
They provided special plans for special cases.
much
did
They
organization
of
American
the
campaign.
waste of effort.
the
•
of the work of this General
The success of the whole
great undertaking was made easier by the hearty and earnest support
of the loyal men who gave tlieir services as members of the War
Loan Committees and of the banks, members of the Association and •>
non-members, who responded to every demand.
But. the General Committee made up the working force in the General
Offices showed an adaptability for this neW and strange work, a readi¬
ness
for the most exacting service and a genius for organization and
execution which should be the cause of pride to every man
in this
Convention.
Individually and collectively they took hold of the job
It
Committee
for
independent
an
direction
the
under
impracticable
with
District
Reserve
position of responsibility.
tlie
in
is
tion
Federal
recognizing no district
•
work
This
bank
that I go into the details of the
not necessary
is
It
of bonis shall
of selling the new issue
work
each
for
committee
done it with much dispatch.
and It seems to have
of the
direction
The American Bankers
exactly what those who promoted the plan, expected
the practicality of it is obvious.
tiling,
given
CONVENTION.
and
Convention,
completed
Its
BANKING
By unanimous consent, Mr. Beal reported
on
"
behalf of the Committee
on
Membership, with special reference to several institutions (at present
uotlioihg strictly
members)
and
Special Committee
a
mittee
Membership,
on
Membership and two others
on
ordered
was
banking business.
a
to
Discussion
in
followed
comprising the regular Com¬
this
problem
and
report
Committee
reported
follows,
as
nominees
the
Committee
Legislation,
County Bank,
three
Concordia,
Committee on Federal
President,'
Commercial
President,
National
on
Exchange
Bank,
Bank,
Mbmbebship, three
year
term—R. D. Sneath,
O.;
Md.
three
National
Exchange
S.
Calwell,
President,,
Corn
term—Nathan
year
Bank,
Dallas,
Committee,
First National Bank,
Detroit, Mich.; E. W. Sin¬
the
At
term—William F.
year
one
Savings,
State
Loan
&
York,
N.
Quincy,
111.
tion
Hirsch,
Joseph
Vice-President,
j
Corpus
National
Christi
Bank,
N.
B.
C.
Powell, Cashier, Merchants & Planters Bank,
:;v
■
N.
town,
•
:
recommended
items
various
The
at
lative
making
this
up
Hillsboro,
Bank,
National
in
Commerce
New
through
War
have
its
etc.,
presented
considered
was
B.
Col.
7
by
peculiarly
Vice-
A.
Alexander
desirable,
Chairman
is
New
of
the
inas¬
Finance
and
for
to
continue
its
work
to select
city left
of gathering
G.
Library in
Kent,
State Vice-Presi¬
sum
held
can
received,
it
and
is
apparent
be successfully placed,
that
this
and
succeeding
only through well organized and
continuous efforts ;, and
Walter
Col.
distribution
of
the
securities
offered,
that they
will pass
bought bonds before ; and
It is of vital
importance that the reserve of all
including the Federal Reserve Banks,
smallest
banks,
be kept in a highly liquid form,
that their business may go on and
the end
be interfered with to the
possible extent by |he financial operations of the Government;
and
:
■
Reserve: Banks are now organizing for an effective distribu¬
tion of these
bonds;
oflits official machinery
by offers to assist in
in the general offices, here¬
the patriotic work of selling and distributing the
Government; and be it further.
bond issues of the United States
Resolved, That we feel sure
we can
rely upon the active and hearty
co-operation of all of the members of the American Bankers Association
in this effort to
be it
promptly,meet the financial wants of the United States;
Resolved, That the President and the Administrative Committee are
authorized to appoint a committee or committees of such sizes
deem necessary from the members of the Association, to
they
object of the foregoing resolution;
authorized
That
the
Is
hereby
to
spend
the
funds required to further the objects of this resolution; be it
further
"Resolved,
*
That the
Trust
named
as
of
the
added
rendered
Gilbert
bond
and
to the
B.
New
Bogart,
volun¬
sales,
Committee.
valuable and
Every
untiring serv¬
Liberty Loan of 1917.
delegates to represent
United
States
Association
our
Chamber
Deusen,
of
Commerce,
Newark,
N.
J.
Wilcox,
Bank,
Vice-President,
Baltimore,
Committee
as
First National Bank, Philadelphia, Pa.
Cashier, National Newark Banking Com¬
on
of
Merchants-Mechanics
First
Md.
Nominations—Messrs.
Sinclair
Hoskins,
«
Mr.
for
recommend
adoption
by
Convention
the
the
Reso¬
Charles A. Hinsch, see page 22, official programme.
Approved and recommend to the convention for adoption the proposed
amendment
tries
to
in
constitution
to
relating to Vive-Presidents in
North, Central and South
Committee
Councils.
State
on
America.
Legislation
Also, amendment
to
as
and
Also,
State
it
is
the
the
request
of
sense
the
Secretary
Federal
coun¬
Legislative
the rearrangement of groups.
Approved and recommend to the convention the
That
foreign
amendment relating
and
American
War,
of
following resolution:
Bankers
Mr.
Association
Baker,
decision
and
we
reconsider
to
his
of
not
allowing
mend
establishment
the
following resolution:
the
to
coming convention
mittee be continued
adding
to
its
Presidents
of
this
by
the
President is hereby authorized to transmit the
of
banks
in such manner as he may deem wise; be it further
at
various
the
cantonments.
army
and
made
present
a
That the
that
the
membership
Association;
Council
Executive
Insurance
recom¬
Referendum
Com¬
convention committee and be increased
and,
the
outgoing
further,
vention that the Committee be authorized and
and
recommend
the
to
incoming
the
Con¬
directed to prepare such
plan of organization as it may find necessary and desirable for securing
the
most
near
and
ing
satisfactory
bank
cost as may be
(1918)
of
the
Executive Council
burglary,
Trade
fidelity and
surety
insurance
at
found compatible with safety and good service;
make report thereon
with its recommendations to the Spring Meet¬
Executive
Council,
to
be
first
approved
by
the
before submission to the next annual convention.
Acceptances
to
co-operate
committee of three
with
similar
on
extension of
committees
from
the
United States Chamber of Commerce and National Association of Credit
Men.
*
Respectfully submitted,
P.
action of this Association to the Honorable the Secretary of the Treas¬
Company,
Harrison of the Gen¬
aDd
publicity
the
of
Ayers
were
Approve of the appointment of a
further
President
Resolved,
necessary
Van
B.
Approved and
as
further
further the
House
General
a
following:
Thralls and
Swift.
.Passed
therefore, be it
Resolved,, That the. American Bankers Association, through its mem¬
bers, and by the use
as
,
Whereas, The Treasury Department, the Federal Reserve Board and
the Federal
Clearing
Pierson, Chairman of Board, Irving National Bank, New
II.
Appointed
and
hereby
'
•
the
Bankers
F.
and
success
also
M.
upon
beyond the banks into the hands of thousands of people who have never
''Whereas,
7
lution
Whereas, This success of the Government bond issue depends
wide
R.
advertising
Convention
pany,
1917
Legis¬
York.
of $5,000.
of
State
a
t
Messrs.
the
National
being
now
bond issues
Vice-President,
William A. Law, President,
subscriptions, to the Liberty Loan
of
of
Atlantic City the week preceding our convention the following:
follows:
The reported
in¬
Legislation.
By-Laws
Association
Alien, Mersbon,
in
for
War
in
Adopted unanimously resolutions relating to the Liberty Loan of 1917
Whereas,
the
their services and
President
the
to
class
class
$100.
organization
State
to
$50
Fitzwilson, 5 Nassau Street, New York, Assistant Secre¬
Thomas B. Paton, A. D. Welton, George Lewis and
Lewis E.
the
of
Offices.
ices
approval to purchase of the Del Mar Library collection for the
Association
the
on
amendment
member of the Committee
Administrative Committee.
to
Committee
to
the
Vice-Chairman.
experts
make all arrangements for
increased
$50;
effec¬
$30
Farnsworth, 5 Nassau Street, New York, Vice-Chairman
Secretary.
eral
Atlantic City recommended for due consideration but selection of next
convention
class
to
made
Pierson. Chairman of Board, Irving National Bank, New
Chairman.
Secretaries
the
Spring Meeting.
next
increased
and
Former
E.
Wm.
Your
dependencies; also, to
follows:
City,
I.
Fred.
National
The
the
Committee
tary;
depositories
$75
proposed
York,
*
111.,
as
class
Committee
as
submitted.
Fred.
La Crosse, Wis.; the Conti¬
York,
$40
the
Finance
dues
annual
recommendation for
York
convention.
dents for the various
ury,
A.
districts.
Vice-President
in
the
by
of
Loan
considered
were
.
Chicago,
Bank,
York,
Empowered the Administrative Committee
"
of
and
Committee
Insurance
the
next annual
as
"
to
authority of the Council, Chairman Goebel named
statistics, to report at Spring Meeting and submit printed report at the
hereby
deceased.
coins,
This
and
teered
Directed
"
$65,
as
Under
year.
and
$40;
Council
Section
1916, aggregating
total
'
Commercial
&
of
to
of $3,250.
Designated the Batavian National Bank,
.
to
amendment
an
the Association becoming a member of the Admin¬
Increases
to
Approved
Approved of amendments to By-Laws of the Trust Company and Sav¬
"
of
Association's
once
Approved
Camden, Ark.
appropriations,
ings Bank Sections.
"
prepare
South America
respective
the
as
The Executive Council subsequently granted ad¬
ditional appropriations
to
to
V'
Lewis E.
singly and approved.
a
Bacholz,
and
collection
Committee.
Y.
for the fiscal year commencing September 1,
$270,050.
Ida.
...,
Committee
Finance
The
such
McFadden,
C.
full
increased
Cashier, National Chautauqua County Bank, James¬
Fred. W. Hyde,
"
H.
Approved of recommendation of
Marshall, Mo.
.
Merchants National
President,
Sams,
Ohio.
■
Cashier, Farmers Savings Bank,
Gordon,
N.
Oliver
are
W.
discussion, directed that the Proceedings of the Associa¬
published in limited edition and directing that the Association
creased
Shepherd, Cashier, Empire National Bank, Lewlston,
C.
Will.
Gave
Committee
"
a
be
tive
Wheeler, Vice-President, Farmers & Merchants Union Bank,
R.
F.
as
their
the
much
Columbus, Wis.
the
In
istrative
Corpus Christi, Tex., Chairman.
Bank
111.;
Montgomery,
B.
111.; and George D. Bartlett, Wis.
Committee.
J.
nental
S.
or not they desire copy of said Annual Proceedings.
Approved motion that By-Laws and Constitution be amended to permit
follows:
report,
in
indicating whether
September 30,
on
the
be held
to
legalizing the Federal Legislative Council.
of Vice-President of
Meeting
convention
annual
from
expression
membership be circularized ; the members to fill out coupon and return
,
Y.
opening of the Executive Council
this
secure
President of the
the
the Insurance Referendum Committee: H. A. Moeh-
as
Graettinger,
banks of Central
Accepted
President,
Thayer,
to
the next
at
Administrative
Del Mar.
1916, the personnel of the Agricultural Commission was announced as
•'
allow
After
Company,
Trust
report
Chairman;
A.
Presidents
One year term
Two year term—S. B. Montgom¬
Concord, N. H.
authorized
be
Twenty-five vice W.
to
term—George E. Lewis, Assistant Cashier, Hanover National
New
Bank,
Gray,
J.
H.
appointed by
Directed Administrative Committee to prepare amendments to By-Laws
Hawes, resigned).
unexpired term of R. S.
Three year
to the
as
mutual company,
a
Appointed Mr. F. G. French of Omaha, Neb., to vacancy on Committee
Maddox, Vice President, American National Bank, Atlanta,
President,
by referendum
President Rankin of the State Secretaries Section sub¬
Wis.,
D. ;
Authorized
Cashier,
Adams,
William
Tex. ;
and
the Constitution
St. Louis, Mo., two year
clair, President, Exchange National Bank, Tulsa, Okla.
ery,
had
stock company or
a
Committee,
Insurance
expression from the members
an
be
the insurance risks of bankers,
on
Section
City.
lenpah,
N.
Vice-President, First & Old National Bank,
Librabt
Report of the
Association
members only; and
of
(to fill
Bankers
sequently named
term—James C. Berger, Cash¬
Third National Bank,
Committee,
—Robert F.
the
auxiliary committee to be
an
Atlantic
terra.
American
American
membership,
Newcomer,
Waldo
Exchange National Bank, Philadelphia, Pa., one year term; Richard S.
Finance
of
Association, to pro¬
that
Colo.
Committee—Charles
Hawes, Vice-President,
Ga.
the
Secretaries'
year
Tiffin,
Baltimore,
ier, Hamilton National Bank, Denver,
Administrative
discussion
tect its members
H.
Vice-
Rogers,
Ark.
Legislation, three
National
term—William
year
George W.
Kan.;
President, Bank of Commerce,. Little Rock,
Committee
full
a
controlled by the members of the American Bankers
State
on
Cloud
untiring support to the Government
they might find it necessary to call upon the
advisability of forming either
being duly elected:
Peck,
in which
avenue
After
of
Nominations
on
any
passed the following resolution: " That
Spring Meeting of the Council.
The
Resolved, That the Executive Council of the American Bankers As¬
bankers."
the
at
131
sociation pledge its unqualified and
(to be appointed by the Chair),
give consideration to
SECTION
Chairman
W.
Goerfl,
Executive
Council.
Detailed
Report of Proceedings
ATLANTIC CITY. N. J.. SEPT. 27-28, 1917
FORTY-THIRD ANNUAL CONVENTION. HELD AT
DAY'S
FIRST
Address of Welcome, by Harry Bacharaeh,
Atlantic City, N. J.
PROCEEDINGS.
MORNING
SESSION;
President, Gentlemen of the Convention, Ladles and Gentlemen:;
Mr
Thursday,
P.
W»
September
27,
1917.
K.
Fauamavobth,
General
Secretary.
Young's Pier, Atlantic City,
Pkesioext:
I
desire
Is
who
to
Before
to
present
compelled
to
calling
Walter
Governor
you
leave in
few
a
N.
J.,
Convention
the
E.
minutes,
say
New
of
V..
Address of Welcome, by
;■
/-.■A,
•"
Walter E. Edge, Governor of
Jersey
Mr,
President and Delegates to
I
am
very
I
hecaiise
believe
I
the
for
would
like
past
time
time
is
to
o'clock.
real
quite
am
that
sure
because
necessary,
to
I
if
tic
I'latious.
into
themselves
patriotic
a
body,
it
as
big problem
great
we
men
have
demonstrated
already
facing;
now
are
delegation of
and
I
ability-—their
their
who
and
said
last evening at
the American
in
back
to
We*
the
those
up
for
this
of
the
had
are
the purpose
about,
accretion
hope,
we
for
or
the duty
to the civilized world at
countries
that
It has been
upon.
to
of
countries
did
to
the
part.
less
and
only readiness,
It
has
splen¬
iii
that
the
last
most
necessary
of
part
present convention
your
demonstrated
that
organization
back
responsibility.
our
you
again
are
prepared
have
criticism
no
tremendous
a
make of
to
and finance
of
councils
In
is
II
war
a
are
every
to
State
our
problems,
the
the
things
business
simply
not
invite them into the closest
their
accept
patriotic
efforts
way.
if
and
we
impress
can
that
as
councils
have
the
these
toward
I
glad
hut of
part
a
time
and
ozonie
that
qualities
will
and
pared
to
The
are
(All
the
this
very
that
your
I
know
defend
in
of "the
return
in
men
and
abroad
Atlantic' City,
I
his
put
•
sea
to
The
air
your
over
Miles
the
you
honor
are
army
and
now
not
you
only
I
he
delightful
invokes
sea
and
attending
be'helped
over
to
American
in
the
all
blessings
Let
of
by
beach,
the.
your
one
more
own
the
and
-in¬
private
men.
pre¬
flag.
Convention
order.
at
environments:
of American business
the
the
will
Jersey,
affords
us
the
and
Amer¬
stand
God.
vise. i
The
Phkshirxt :
Ladies and gentlemen, it gives iue great
pleasure
introduce to you the Honorable Harry Bacharaeh, Mayor of Atlantic
City, wild will si>eak a word of welcome to you.
have
you
^
only
give
to
(Laughter.)
and
said:
I
" Sheriff Johnson
is
a
for me."
note
his
put
the
to
name
Sheriff,
and
as
mere
a
the back of it, and I
on
half
smiles.
all
hour,
an
'I
said:
Avill
"Well,
is
..
the
the
gentlemen
you
"Tie* Sheriff said to
He said,
Mayor
You go to. the
of
this "—and
that
a
the
after
v"^"
remarks
handed
of
matter
mere
and
years,
him
to
note.
the
me
•
Governor
of
Not
form.
true
a
Mayor and ask
he
Edge that after
that any praise by any city official
Bankers Association's members
should
me yon
have rawer been
friend for the last tiventy
your
hack
You
$100.
for
that $100.
you
stay in our city,
Avelcome to
only
would be to
American
the
are
Atlantic
City, but in
every
City and State of the country you are Avelcome because,by .your'loyalty
have
you
United
patriotic
1903
In
at
body of
in behalf of
it
Avas
time
You
the
not
have
We
years
of
not
see
promenade
will
is
it is cold,
We
especially'
are
this
you
streets,
our
bankers
not
who
ocean
had
proud
than
best
anyone
or
it;
and
morn¬
by
his
business
and
and
but
when
warm
so you
in
go
50
other
fact
and
hotel
the
humblest
miles
city
in
management,
and
of choice in the
purse,
get
his
matter
where you
disorderly,
a
unescorted,
woman,
by
could
anyone.
Pacific
I
am
is
it
we
that
one
Ave
this
an
the
have
91
time "over
surface
he
a
can
the
man
come
can
Avhen
life-guards
are
of!
pro¬
5,000,000
over
100,000;
and
yet
summer.
cleaner,
proud
come
here
rougher
and
to be proud
streets,
We
no
Avarm,
summer
country.
Avhere
and
have
we
is
there
ocean
life by droAvning this
of hard
perhaps have
that
City, Avhen it is calm-
rough
have
and
at
Coast
satisfied
it is really
ocean,
see,
bathing;
bathing,
our
Jersey has
six miles long
acting in
the
from
come
a
New
time;
one
morning until late, at night and knoAr
also of the
our
any
The ocean in Atlantic
cold:
and
Governor
promenade at
single loss of
a
of
any
Minister
the
magnificent boardAvalk,
wonderful,
City Avith
range
I
must
ten years to get
addressed
upon
successful
molested
or
liaA*e
like
proud
that
are
is
he
our
early
Avorld.
.very
people
in
most
intoxication,
when Ave have
are
have
the
of
from
most
the
it is
Ave
tecting
in
of
avIio
is
nothing
going, and
Cabinet
welcome
of
you
City.
who
man
newspapers
and
accosted
be
that
ocean
hotel
Atlantic
remember,
will
speech
in
young
proud of the fact that
walk
our
gentlemen
believe,
My
it has taken
where 250,000
case
are
not
ocean
We
one
We
manner.
Ave
gentlemen
yoit
as
of
one
proud
sire
will
But
Our slogan
shore—San
shore to
1904."
in
you.
things
many
feet wide,
there
from
well,
so
State,
our
We
101)
l>est
the
city, and the people have honored him by making him the
of
had.
You
favors
time,
addressing
he sold
ago
became
our
Governor
an
City
that
At
of
the fact that the
of
of
men
of
(Laughter.)
proud
arc
ever
more
no
Bankers
meet in Atlantic City in 1904.
Atlantic
1907.
impressed you
it.
over
American
the
is
there
city.
our great
to
you
1903,
in
pleasure
that
special privilege to be here today to
a
'-Distribute your
was:
in
came
had
than
men
it
country
privilege to accompany Judge White to California
my
endeavor to get
that
people of the
But I esteem
States.
welcome yon
and
the
to
proved
loyal and
were
of
rise
to
have been
convinced
am
she
New
to
that
communities
Annual
be
you
the sea,
hotels,
various
Forty-third
will
will
see
National Government,
welcome
we
deliberations
your
while
to the
to
■
something for your shrink¬
to
.V'.""' ;-:V :.V
efforts
to
form
little
(Laughter.)
oaa'ii
much
back."
you
world
flue!"
"on
name
25
simply
Mayor;
entitled
the
aUatt
in
I
lend
to
ing,
do
Mr.
pay
are
this $100,
loan you
to
were
.
this
him
ask
to
of his.
Avant
proud
helping
I
with you,
was
" Sheriff Johnson is one of the best friends I have:
" Yes,
of
not
will
opportunity
deliberations
city by
wonderful
that
American
to
back
unit
conference
will
note
take
ask
form
of
big
one
some
in your own responsibilities.
joining the great
Dr.
of
thing
same
directiug and
brief
they will,
the beautiful
Association
Itev.
you
health,
Pbkswext:
Bankers
while
have
hope
determined,
affairs, you
in
those
influence
I
quite sure
are
you
spired
ican
to
hospitality,
part
wonderful
time, of
the
them
take
to
to
you
had
com¬
Sheriff
Avith the .Sheriff.'*
Avas
syppose
easy.
you
anything in
and
help to
you
to* help solve these
I
And
the Government
of
real
of
in
war.
which
individual
we
the
here.
benefit,
welcome
would
but
indeed
weleonie
We
we
they
defense,
of
if
you,
States—all
real
problems,
assembled
great
If
tell
to
accomplished.
a'
as
winning this
am
men
already
government.
council
a
State government,
our
fofty-elglit
recognize them
solve
of
love today
we
be
1
blank
a
"You
Francisco
organization,
our
would
we
of
others
and
the
and I
American
a
of
class of
realize
citizenship, especially those in authority, as
trying to do in New Jersey—we have invited the strongest men
upon
of
and
less disorganized
or
will
willingness of America's captains of indus¬
their part, and will
do
to
government,
more
a
Government—it has been
problem—but I do hope that the Government
thoroughly the Interest and
try
National
the
he
of
I recall you
as
I
you,
back?"
me
will
he said,
do
came
frieud
but their eagerness—to
loan,
the forces of your
to put
that
in
of
nice;
very
friend,
"My
ashamed
he
trespassed
been
should loan yoit $100,
against you,-. I
was
piy
"That
He said,
„
in public life
men
then
And
qualities
and
everything right V "
to
organize for precisely the same purpose, and I hope the Government—
I
lie
lie-
ami
you."
from
give you the $100."
we
years,
or
us
everything American.
flotation
unselfishly
don't doubt
to
two
you
said:
your
the
in
ready
will
I
in
feel
we
"That's
Yes,"
he
the
ancestors
our
more
are
,
Government
the
I
world—and
bankers,
are
of
the
We are in
Iwcause
over
wonderful demonstration to
a
their eagerness—not
see
their
You
you
to
for
have been
rights
our
large,
embroiled
been
it
We
war.
peace.
#1.00
qualifications
fine
with you -about the good;', qualities of Sheriff John-
Sheriff
out
got
"
the readiness ami willingness of this country, made up of all the
see
do
have
the midst of
waging
but simply
conquest,
the
in
of
important
your
modesty."
matter
everlasting
an
is
what
but
friend, of yoursV"
prepared
men,
the
said:
i
sending abroad.
for
is by
won
business
our
we
owe
cause
is going to be
war
organization
war
men
in
not
to bring
not
the way
commercial
and
are
war
war
judgment
my
industrial
the
-political job and
a
I
organized the first army of the country—the army of the American
doflar-r-and while it may sound lightly, I don't mean it that way. be-,
cause
borrow
" When Sheriff Johnson was; will*
:
said:
He
in
Bankers
see me
particularly favorable to me."
replied
Avould
ing
dinner that
small
a
important .mission."
an
interesting,
very
to
again
" L agree
said:
me
firing line in the country's defense.
I
is
want
recite
when
1
any
opportunity—do' be
" I
to
not
how
who
and
can
on
but I--foe •••ho -• reason' why I
He
one
conceive of
cannot
representing any other profession
here
am
.."That
said:
Ave re
were—organized
to do their bit and to offer their cooperation to help solve the
body
Hie
I
sou,
Practically all of these conventions are doing the same thing
/■—resolving
to
Johnson.
for their delib-
spot
the bank
to
city had.
our
said:
menced
not
the conventions coming to Atlan¬
mufty of them select this delightful
City, and
I
Mayor,
of
said:
He
quite positive 1 can't accentuate any by words of mine.
am
We at the present moment judge all
constituents came
imme¬
'-already experienced the hospitality of Atlantic City and-New Jersey,
1
jm»s-
mission ? "
of
have
as
banking businesss come to
to the city ball; but the
on
come
Sheriff
I
have
note
a
you
Mayor
as
two positions as much
me
see
busy
not
ordinary common president of
an
business
city
on
lira
I
1
me
And
I
you.
those
to
little incident reminded
When
day.
endeavor to separate the
I
and
want
Jersey,
diately lie commenced to tell me of the very good qualities that
Johnson
Atlantic City
have !>een in
other
I
also
and
Edge Of New
:
"Mr.
simply
sorry
am
of welcome.
note
a
you
and I
Hardly
I
something
say
that
press
three days,
two or
this
at
10
at
to give you
program
through the public
welcome
the American Bankers Convention:
City
have
to
the
on
am
observed
Atlantic
leave
the
like most of you,
am,
day one of our colored
and said
that another engagement makes it absolutely impera¬
sorry
I
that
tive
ami
bank,
other
New
long,
too
have in your President.
Governor
by
having those who want to
sible,
the
I
city
bank,
a
welcome to you.
occurred
which
tills
of
talk
not
welcome
not
but What is more important to
much in. the same position as a
very
of
aen-ey,
words
few
a
feel
shall
I
of
address
the
presiding officer's table)
the
(on
that I have one,
the implicit confidence I
to you
After
formally.
order
to
M.
there
watch
that
gentlemen,
prove
A,
9:30
Edge of
to
placing ray
am
only to prove to you
you
Fukdkbick
The
I
GpKUKLy President, presiding.
Mayor,
even
to
if
of
we
our
Atlantic
he
is
a
pocket-book satisfied through the wide,
of -hotels.
BANKING
Anil
we
are
-5,000
we
housed
proud also tliat around
better
in
grow
We have many
lie
cannot
Nine
which
but
but
above
not
city,
nil
but
and
do
his
or
pay.
bit.
to
of
France,
but
what
know
who
the
are
making
week.
sisters-
of
And
of
Sir.
if
and
of
all
far
as
of
now
if
all
to
the
nothing
that
who
is
in
United
States
now,
of
and
custody
your
they run
short
of
people of these
the
you
any
much
away
you
I
hope
it
States:
V
■
willing
such
-information,
Response to Address of Welcome, by Prest. P. W. Goebel
.if
the
ladies,
seriously object,
not
President,
want to
assure
who
to-day.
you
want
to
is
in
behalf
of
the
American
old-fashioned
inspiring
and
levity
has
uplifting,
ladies
disappeared, from
thought is connected with
gentlemen,
and
enjoyed
friendliness
living here
has
the wonderful
proceedings,
our
task
before
freeing the world from autocracy.
We have
The
said
ing of
about
this
stay here, Mr.
our
of
City,
your
to me,
the
as
and
The
been
•
can
than
I
everyone
of
Association,
the
because,
said
judging
it before
use
to
us.
dorsed.
from
experience,
my
they leave.
won't have to
you
Annual Address of the
is
have
made
make
perhaps
to
and
to
by
eager
been
forthcoming.
So
to
of
until
we
bur
ships,
We
to
first
our
gotten
with
well,
shall
we
victory
greater
victory—over
and
people
This
the
us.
most
the
most
and
the
gradual
affected
uncertainties
as
eventful
eventful
most
in
have
with
of
has
move
of
our
the goal,
We
If
have
we
in
tiiat
the
hut
and
wastefulness,
pride
to
our
<ve
converging of the
united
firmly
and
lines
that
our
forever
in
mean
loyal
lines
the history of
of
touched
has
been
business
us
all.
subject
nations
endeavor.
Precedents
to
all
lias
The
have
tlie
also
been
influences
misgivings
Been
and
discarded,
and
-
their
to
Their
members.
ready
to
serve
the
secretaries have met
(lie
which
Association,
as
a
whole,
lias
conditions have been most
the
is
large
conference
Been
most
mutual, aid and
in the general
harmony and co¬
and the result lias made for
understanding.
The staff
working
force
.
in
about
in
complete
,
level
and
increased
the
service they
their
render.
under wise guidance,, continues, to be the one
bankers, may resort with confidence that the advice
be
The others
sound.
have
their individual prob¬
operations have given much satisfaction to the officers
with tlie detailed affairs of the Association.
of The American Bankers Association speaks, for itself.
I
thai
me
wish
in
members
the
reading,
quality.
to
to
the
are
all
familiar
with
its
express my unqualified approval of it.
last twelve months it lias shown even
new
and stronger appealsj to its
information and interesting articles
and
it
has
been
particularly apt in its treatment of the great
financial problems growing out of i the war.
It is more widely read
than
ever
lie fore
and certainly more widely quoted. Tub Jouhnai.
has made a
place for itself and I know .the members share with me
the pride I feel
in the publication.
The
Agricultural Commission has had an
unusual opportunity t<>
demonstrate
its
usefulness in
stimulating the production of field
and farm.
Under the pressure of an unprecedented demand for farm
improvement
It
products,
a
the
the
made
filled
with
have
been
formed
to
aid
in
the
existence
organized and experienced and under tlie direction
and able leader.
With half the world facing famine
Fortunately,
this
Association
had
in
it is obviously necessary that every possible forc» lie turned
of food and devote itself to increasing the products of
direction
farm.
think
that
well
enthusiastic
an
and
organizations
foods.
commission
in
been
many
conditions,
I
has
of
increase
of
history of the American Bankers Association,
service
under the stimulus of opportunity," have kept
monthly
and
further
final
can
.
sighted,
clow; touch
in
seems
readers.
seem
disappearance of the differences that
in
years
It
in
greed
Sections,
have
usual
will
their
but
keep
scope
victory—a
that
integral
Tub JouitNAr,
moving
learned
manner
world
and
we
lie
to
scent
broader
which
to
Through
new
principles.
Banking
to
confidence
steady
nation
a
precision.
enemy
indifference,
but
tlie
active.
other
and
who
railroads,
our
far
department,
receive
lems,
learning
are
policy,
the
to
up
court
credit.
our
continue
only
factories, '
our
novice stage.
the
events—the
democratic
to
and
common
our
is
of
well
as
adherence
that
inarch
the
divided
a
It
ourselves.
watch
the
over
mines,
we
of
an
legal
they
have.
we
results
departments,
work
The
with
lessons
new
war
production;
We are far from
steadiness
victory,
in
of
has
for
Which
those
of
pressure
wait
technical
„
.This
Conference,
the
ami
is
The
have
saturated
to
offices
new
nothing
yet,
been
need
to the people.
have to their credit the satis¬
work is naturally specialized and
operation.
is
possible
for
in
vision, giving tliem a better grasp of
which, numerically, is
and
in
brought
been
and
better
a
the
genius
governments
as
had
was
In
was
demand
a
and
wisely
it
Inventive
but,
world
use
our
beyond
been
anything
inventions.
than
has
matters
•oil
we
It
enroll¬
and
measure by the institution
held its first meeting last:
satisfactory.
It filings the
heads of all the departments into close relationship.
At the meetings,
which are held fortnightly, or oftener if necessary, each man reports to
the
conference,
the
tilings on
which - he is engaged.
He. may ask
tor advice and
have "tlie benefit of a
free discussion with his asso¬
ciates.
in
this manner, the judgment of the
whole force is secured
demands that
added
yet
and
Men
there
thrift,
yet.
not
kinds.
promise,
tlie
in
money
learn
to
has
the
and
to
soil,
our
men,
now
lesson
under
has
think
are
devising
I y
Office
an
winter,
nations.
of
I
in
Co-operation
doite
Tjiis
.
of
need
resources.
our
many—more
of
learned
of
use
rewards.
as' if
economy,
much
have
to
forward
is
history
haste.
when exigency
various
of
ingenuity
^use
our
have
me
to
of
the
made
discoveries
There
uses.
anything
It
have,
in
better
how
try
learning
are
adaptability,
have
war
human
offers
human
we
mighty
of
have -been
appliances
new
been
products
this
list
there
in
years
we
economical
most
practical
to
for
progress,
and
that
the
years
stimulated
ones
will
Sheriff to get your checks en¬
It is surely progress
wisest,
strange
adapt
been
l*»ys
President, Peter. W. Goebel
eventful
most
progress.
fifty
things,
the
not made
the
importance
past
of
one
havei
we
we
the
in point of
in
members represent the
all finding the Section
watchword. In a general way, the
assignment is far from the limit of the operations.
Every secretary and department head is well informed as to the
work of the Association and interested in its
progress and welfare.
And from what tin- Mayor has
the
to
go
all
Its
general- offices of the Association,
the
wot-k
(Laughter).
'J his
If
think
I
(Laughter).
satisfactory.'
and
active
and
they
Their
their
as
enterprises
satisfactory.
hand/
We certainly appreciate, the
representative
they
what the wishes of the
supply
engaged.
In
tell you.
deportment of
more
but
hanks,
state
were
presum¬
usual demands made upon them, but - they have been
indispensable contributors to the success of the unusual
and
difficult
and
the
well
as
system
were
Association
year.
active
been
the
only
constant
every
country,
striking example of what the, Mayor
a
beautiful City.
your
key
Mayor,
the magnificent
who visits here is
or
'
this
not
and
the closest
the
expression
best
have
Association
when
of
successful
a
its
finds
especially not only the key to the City but this key to the bank vaults,
to
of
sections
older
to
vital
and
this great class of hanks,
to
probably
and
greatest
officers
•
-
.
fall
that
faction
Association
sincerely thank you for your heaHy and patriotic words of
certainly
of
the
The
Bankers
during these times of stress every address teems with patriotism;
task
the duties
not
„
Mayor,
welcome.
It
do
tonight at least curfew will
that
you
with
are
ring.
Honorable
I
I
Mr.
the
as
speedy
was
alert
their
is broadening
organization
And
the
that
efforts
molded
Congress
of
usefulness.
its
democracy
banking
its
to
were
is also the largest
most
are
increase
to
ways
in
utmost
Sections
the
officers
its
and
.
applying
result
the
and
wishes
information
toward
purpose
The State Bank Section could and did
were.
of
youngest
ment.,
♦
the
to
the
unfounded. The
credit and there is
due
and
of
varying laws and
therefore, to
entering
banks
Board
common
was
its
Act
the
in
natural,
common
to
this
independence
under
a
Sec¬
that
Unlike
nothing
their
to
Reserve
state
authoritative
notvget
The
a
the
technically
many
existence.
perhaps
largely
was
Reserve
accede
to
It
of
way
right
lie
is
moves
because
State Bank
by
assumption
this
Federal
Federal
banks, really
will
for
Sections authorized
of
its
with
move
do.
to
diie
was
achievements
great
the
The
state
stay
•
in
It
not
to'the
could
ourselves, but
it
organiztion
the
ago,
organized
were
Happily,
it
for
to their
the
to
your
goal.
some
more
ably
co¬
more
inside the
that
equipped
held
apparently
had
rules.
could
they
amendments
removed.
our
of
reason
unit
functions
number
belief
interest
They
varying
has
obstacles
in
of
" key"
a
give
can
City,
key
the hearts of
tlie key to
there is
And
money.
United
hoys
of Atlantic
to
not only to yourselves and
one,
take
to
our
which
spirit
great
the
why
now
fact
the
best
justifying
in
members
Act.
to
defined
.Section
Tin-
members.
reasons
The
larger
year
a
the
a
was
difficulty
negative
of
Bank
that
well
a
as
the
its
those
co-opera¬
finer.
of
Every
from
to
completed
There
its
sort
a
assigned
Kansas. City
This
find
sections,
assume
are
will do that,
(he
bankers
present
to
would
subscribed
glorious.
the
want
send
home
at
Congress
will
we
more
for.the bankers,
as
stay
and
in
constitution,.
National
going
divided
that
the
of
or
The
its
bound
coming more and
are
of
been
spirit
ago
within.
and
has
roll
be. many.
discharge
Each
problems,
closer
year
men
impetus
and
tlie
to
been
a
unification
in
the
by
work of
the
own
each
has
believe
to
its
members.
may
business
in
It bespeaks the
it.
formed.
was
except
will
we
are
participated
increasing
old
organization
force
Convention
the
section
this play¬
pleasure,
but
those
the citizens are concerned, and
as
pleasant and profitable
a
I
after next Tuesday,
is
part
la-half
on
tion
by
dollar
one
increase
power
larger
be
can
the
be
prefer
lies
year
had
but
benefit.
common
find in
we
this year,
reason
should
I
tint
gains
the
perform
At
other
And if every community
the
ur
to
home
at
ones
member at
a
country's battles, and they
victory
citizens,
our
which
members
for
do
loved
these
it,
greater
work
and
,
wives and daughters at home
become
of ours,
knowing
their
citizens, and
our
vaults,
all
conscience dear
have
of
with
to, the front.
there
our
ones.
wait
to
wo
make
President,
behalf
all
have
And
happier,
city
conscience,
of their loved
not
steps.
where
talk
inspiring,
is
the
been
departments
much
as
and
affairs,
of
he made to contribute.
Never
continually
expanding and
Association
part
and
members
successful
Into
besides
do
to
which
of
for
when
has
in
others.
the
was
but,
do,
the
our¬
remarkable
shown
routine
do
have
ns
upon
Association
to
all
gratifying
is
recognize
the
by the
won
Banner
of tlie parents'and the wives and the
who have gone
world,
to
that
see
can
care
great playground
the
care
do
we
taking
else
to
a
also
its
to
effort can
every
the
in
there
new
this
operation
fight
Atlantic City we have organized Lib¬
in
citizen
1,000 boys to fight
clear
a
taking
to
Spangled
All
is
need
Apparently
world's
great
it will only lie
something
sisters and
and
every
are
boys
this
in
of.
care
we
the
have sent
front
either
to
in
found
thousand
caused
child must
ami
this
if
demand
the. sections
among
is
of
work
interested
proof
patriotic
most
woman
Star
Thee,"
of
sacrifice,
the
which
And
ground
with
in
is
there
'tis
the
tion
We
convention
*
that
won,
the
be
citizens,
our
work
new
Association
tin.
the
divisions
particular
lie
to
of
of
nature
these
own
practically
found
something to which
war
of
to
attended
adapting
surprising
on
gone
with
has
it
has
and
activities
universal
am
afield
have
we
Association
Our
only
and
circumstances
strange
section, department, commission and committee.
every
lias
citizens.
everybody
of
the
at
properly taken
are
erty clubs,
a
boys
duty
confident
carrying
the mothers and
that
the
feel
of
body
I
that
States.
it surely will be
believe
confidence in
loyal
crisis every man,
we
have
houses
should
United
is
it
Country,
City people,
America's greatest
States
as
we
so
'* My
and
think
we
the
great,
and
United
and
sing
what
other
any
had money,
bank in Atlantic City,
no
business
our
than
Not
aside
cast
and
readiness.
gone
These
$32,000,000,
over
city
our
Atlantic
to
patriotic
in
believe
be won,
the
and
also
this
believe
only
of
assets
has
been
new
adaptability.
least of these
the
not because a man
playground and
citizens
in
We
We
is
war
•boys
have
that
have
money
have
to
gratifying
it
upbuilding of
and
a
selves
fed and
is
person
sure
am
bankers have much
our
have
we
loyal
feel
loaned
America's
we
most
We
the
hotels
traditions
city of less than
a
every
institutions.
institutions
for
has
Our
only
and
the country.
stability: and there is
been built because
are
to
financial
more
it
when
dollar.
a
Easter, from
300,000,
They have loaned
his moral
on
all
the
done
men.
satisfied,
lost
to
other city in
any
financial
our
have
of
group
hours
in
tilings to lie proud of, but I
called
of
24
than
133
SECTION.
the
Much
that
lias been done
when
the
final
this year.
There is much more to do.
accounting takes
place it
will
Be found
Agricultural Commission of the American Bankers Association
BANKERS'
134
has
discharged its full duty and that hunger was made less a
because of its
The
work.
interest
of great
efforts of
the
feasibility
mark
it has.
pointed the
and
splendid
success
other insurance plan.
This
II)e
of
kind
the
which
to
work
denly
American
was
familiar
quickly.
of
of
the event
this
At
of
to mention
of
and
names,
various
the
every
as
by all
the year
during
me
the officers
Associations.
State
of
and
It
convention
The
resolution,
adopted
immediate
possible,
of
it
compulsory
The
its
exact
earnestness
Committee
is
to
not
Congress who
firing
but
victory.
no
mitting
"reasonable charges,
Federal
Ileserve
redeem
Bankers
will
mittee
abuses
of
Twenty-Five,
the
this
At
heal
in
the
obstacle
of the
doings
times,
has
the
what
of
The
bankers
not only as
what would
fifteen
have
to
of
credit
that
Under
and
which
Act
the
existing
expansion
possibilities in
remember that
of
plan
banking,
provided
not
confidence
be
The
opportunities
paper
of their
I
am
not yet
reserve
in
Soon
to
should
is
It
self-protection is
a
of patriotism.
be
used
the
banks
by one.
the
trying times.
One
of
war
loan bonds.
them is
to
fixed
and
we
not able
are
by
and
the
greater
business
into
the
is now,
assist
country
is
system.
receive
use
my
to
the
we
It
do
it.
of
of
it,
make
commercial,
so
are
funds
to
■
its vast
pay
our
own
ex¬
call
will
for
armies
our
must change our ways
we
it
is
set
for
the
all
use
milk.'
people
can
is
produce
It applies
It
funds
means
means
well
as
the
the
em¬
to
It demands the effective
in
as
of
and
We
men.
consumption.
consumption,
thrift
need
means
must
wt
of
use
Thrift
so
do.
money,
the
Thrift
deprivation.
mean
get
can
thrift.
by
to
us
save
.
is
Business
war.
incidental to it.
profitable
no
first
not
directly
is
It
one
may
untried
in
to
it
war,
is
con¬
unless its
methods
importance
neces-
time
no
appear,
of success
and
new
of
last
analysis,
it
in
that
had
eiiher
bankers
ready to meet extraor¬
full
a
is
of
of
the
the
war,
participation in all
only through
successfully placed.
The
banks
all
to
following
Association,
In
over
the
banks
have,
there¬
the others.
proclamation
was
siguature:
my
„
in
'and
In
will
because
other
the beneficiaries
is
to
its
the
is
to
the
sacrifice.
sought
of
Wisdom
by
liquid
is
it
public
of
must
on
and
sound
the
and
free,
to
his
those
on
them
upon
to
public
prevent
thinking
economy,
management,'
funds
his
than
as
leader¬
and
whole-
„
business
himself and
to
accommodation
be
It
duty
to
efficient
More
incumbent
much
well
as
business
confidence,
of
ways
pertains
and
the
country.
he
in
owes
He
must
customers.
prudence
banker
must
do
it
a
keep
without
Speculative
ven¬
discouraged
and
productive
enterprise must
be
always to consider the effect of each banking
well
is
the general
members of
the
condition.
American
many
tests.
No
previous
now
made.
On
proper
them
un¬
resources,'
demands
needed
in
thousands.
endeavor
to
is
share
\
that
bank
success.
the
any
cause.
faces
now
hankers
support
people
wise
stricter
The
that
in
success
common
country
community
lines
the
and
operation
,
truism
a
ready to contribute of their
are
thought,
and
nourished.
one
every
everything
tures
to
They
promise of
hold
enterprise
his
DRY
It
living.
some
new
POWDER
heritage.
country and
their
to
counsel
public
error
YOUR
common
their experience
and
the
diminution
support
must be
well
matter
great .emergency
Their
engaged
*.
opinion that state
chiefly
the state banks
The nation
has
Bankers
demand
Association
them
on
financing and
(he resources.
good
It
have been
measures
up
management
is necessary only
put
to
the.
depend
to
•
use
wisely and efficiently.
not generally contribute.
have
extraordinary duties
They have assumed
the government in
This duty naturally falls
ship.
per¬
sound,
the
courage.
it
powerful motive, quite powerful enough without the
As it
of
but
keep our banks
to
It is, therefore,
whose
stability to which they do
these
now
We make our banks stronger by adding to the
those
one
way,
We
than
to
can
have
Bankers, by spoken word and concrete act, have shown
than
more
de¬
is perfectly safe,
important
It is our job
system,
our
be.
particularly
element.
been
in the law.
If experience
sound judgment, the- reserve
willing to believe that
But
any
feel that the application
I
only
responsibility in addition
the
energy
requirements,
raise
to
the government
the
wasteless
need
the
be
devoted
are
dertaking.
guide
reserve
more
haven't
people
is
patriotism.
care.
every
to
in proportion to
which
forests
,
declaration
their
liabilities written
generally
banks
stronger it will
their
is
to
experiences
yet
of
as.
"KEEP
Patriotism
us.
Here again
foresight
inclined
human
in
only
munitions, for
to increase the chance
Journal
their
has
them
It is idle to give figures.
and
resources.
However
new
the
We
Some
that
which
at least,
can
which the tendency
requisite
and
all
with
remains
not
and
cream
country
In
this
the
the
bonds,
obligated not only to look after the commercial needs
isues
after
and
as
ordinary demands upon them.
loans.
to bear
The
loan
war
aiding
are
customers, but also to assist them-to
fore,
both
old system.
the
I view it,
as
that
me
are
credit
of
be„
as
are
bond
issues.
activities
The
watchmen. ' Under
in
placed
the change in
strength of the reserve system.
banks,
be
regulation
to
disastrous
under
have
this
inflation is frequently
We
by the
we
judgment
good
and
hankers
banker.
every
and
must
the
provision can be readjusted.
The
case
well
that
advan¬
collateral
as
of
banking.
government
the
it
in
have their institutions fully equipped and
as
bond
the funds advanced have been
way
as
well
as
must
banks
printed in
seems
necessary.
a
The situation,
danger
judgment
that
it
It no longer controls
centages "of reserves
in
dinary
decided
of
proved
have the machinery by
yet manifested itself.
sound
shows
for
system
system.
may
are
controlled,
exercise
we
the
There
a
should
the
urged
our
The
the
the
govern¬
things the Association
and
work
government
of mines,
enterprises.
or
ratify
give the
To supply these necessaries, production
from
processes
the
who
perfect organizations
to
cooperate
food
the
competent.
more
war
to
the
those
will
to
future
which
the wage-earner.
We
but
They
easy.
eligible
the need for it
or
is possible.
none
control
All
have
conditions,
such
now
we
be
can
automatic
vised ;
of
unusual
of the greatest convenience and is perhaps
been
currency
the
expansiont
aid
obligation
They have made liberal
rediscounting
borrowing against
of
attended expansion
must
find
the
have
undue credit expansion and a currency
an
measure
the
of
Board
soil,
productive
new
because
responsibilities,
great
share
the
change in reserve requirements has caused much discussion.
of
fear
and
with
their
made
Reserve
the
days has
expressed.
has
of
of
assistance
distributing
in
necessarily
of
use
better be postponed.
confi¬
The
the
by
of
finance such
It is obvious that
business
peace.
of
undertaken
The only
to
as
business
sider
ready
to
will
to perform
does not
a
As¬
either
one
Soon (the payment of the troops
supply
it
the
The Federal reserve banks,
So far,
source
immediate purpose is
system
reserve
looked, with
has
one
people.
become
> sary to
During the past
the
war,
the
have
skimming off
to
them
was
Convention
stands
and
its
paid for by others.
the
of such
cost
secure
the
aid.
for our members and
flotation
as
abroad.
wasteless
The
v
We
successfully
which
members
that
President of
effective
was
the
organization,
greatly increased.
is,
and
advance funds to our allies.
stop
the
pay
the
than
more
verdict
1k
war.
greater production
extensively used than the rediscount privilege.
The
of
of
that the
not
were
expenditure
undertake
selling
it
to
in
told
been
to
undoubtedly some
this country.
must
and
the
other
but
in
panic,
inevitably happened if
hanker
every
charged
members
The privilege
more
No
is
relieved
The
They
amendments
to
Bonrd
information and to study conditions.
secure
for
liaye
old banking system.
in
machinery,
a
position in the financial
a
any
ployer of labor
grim
into
system
are
wise and
of its
a
protection against
a
having
since the declaration
Reserve
Board
regulations.
tage.
banking
as
staff
them
Council
regard.
The Association
economy,
clear opportunity
a
demonstration of its ability to insure financial
not
are
exists.
Board
country's
the
think of
to
Federal
dence.
it
regarded only
be
can
day, has been the bulwark of the country in these eventful
new
a
issued regula¬
in
for
assigned
to
are
with
It
Association
incomprehensible.
not be
that
not
Its
reach
to
securities.
the
confident
this
There
There is only
un¬
kkkr.
and especially
given
To
forcing
or
agencies
expenditures
we
We
•
has
there, lies before
system,
reserve
shudder
I
year,
to
but
remove
had been at the mercy of the
we
.'.V'.:"
Board
Reserve
operating banking scheme,
an
as
penalties
v;-:.
if
made.
again
not
operations.
must be
correct the
.
Federal
The
and
expansion
whole.
unified
but
the
by aiming to
imposing
•will
application which
presented. by the Com¬
was
It
instant.
an
Executive
unanimous
purpose
thiuk
I
operations of the government
but
large
in
Bankers
than
are
pended
the
an
for check collections or given8 any indication
regard,
wounds
to
it
as
.
Federal
the
this
case
the
this
by selling
or
feel
assistance
the
military
bills,
Country
to
how
the
2,700
which
the
good education
I
purpose.
loan
They
for the Reserve Board
disagreeable
the
sud¬
matter.
a
in
timely and effective
gave
for
ever
was
should
things
The
which
it
possible.
carry on
,
now
knew
of
have
of
experience and ample time
better
these
-
regulated by
is what
and
question
particularly
is
without
V
'
!'
writing,
determined
interesting
had
way
effort
banks,
probably not be necessary.
this
for
do
the
$20,000.
Council
similar
have
here.;
the law
of
came
organized.
already
and
meeting
apparently
funds
Association
the
is
receipts
new
governmental
on
of
Association
its
American
will
it
has been succeeded by one per¬
forbid criticism
and
system
\
to charges
as
intentions
to
old
losses.
bearable
provision of
banks
Executive Council authorized
was
organization
There
that the
repetition
bonds
made
be
not
was
spring
Loan
The Council approved the suggestion
It
members.
of
The
with ammunition
no
liberal application,
the
with
symptliy
of
need's
The
par
be
to
The
which
situation
a
action
labored with
fully aware
It is obviously possible
do.
by giving the law a
show
tions
Board."
will
Reserve Board
if
collaborated.
supplied
well
struggle
provided the payment of checks at
the
not
are
unusual
Thralls,
Mr.
the strategy,
made
not
was
legislative
the
defeat
a
was
best
The fact that it has failed to
construed as proving lack of
be
line and
of
use
v.'.'
of
history
There
the
Variety.
every
The
to
involved
Committee's secretary,
The
the
on
was
secure,
of
ways
results
use
cost
ment
Committee
The members of the Committee
of
member
no
and
promote
achievement
the
experience in such
could
appropriation out of which
The
to
government and
of checks.
the
purpose
untiring energy.
of
of
capacity.
or
to
was
fell the burden of the detail work and
whom
was
which
body
of management and diplomacy.
achieve
The
The
Bankers.
the Country
no"
was
anticipating
of the Federal Reserve Act or interpretation
collection
undertaking
powers
" The
The authorization came in the form of a
applied, the annulment of the rule for the so-called
as
par
appointment of
the
The
campaign.
served by the appointment of this Committee
amendment
by
authorized
City
meeting held by
a
delegated
a
provisions
s
at
to he
purpose
have
to
was
Kansas
at
in
Liberty
of
sale
had any
the
right time.
Bankers
sociation
Twenty-Five."
exception, devoted their entire
any
aided
Association
the
Association.
There
were
willingly and intelligently.
Committee of
turn
The financial
floating the two billion dollar Liberty
organizations
reports received from
the
American
has done more than his full duty;
one
the
had
one
new
Bankers
with
bonds.
the
8,000
the courtesies extended
the
people
the
machinery of the Association be used to aid the government in floating
"
acknowledge
to
rendered to
Association
the
idle
desire
I
assistance
able
the
innovation.
any
point,
in
greatly
for
Fortunately,
at
•carne
guesswork
position for negotiation or acting, and little need be left to
that
him
To
So when the Secretary of the Treasury
that campaign.
No
us.
plain
andcoffipilation
collection
careful
the
upon
was
By
of
and
campaign
Com¬
This
long and earnest study.
first
The
for the saving of thousands of dollars.
community.
calls and patriotism dictates.
assist
to
task
the
the
information, the Committee has put the Association in an advantageous
in
hanks
opinion at this time as to
no
or any
his
of
issue, the banks, with scarcely
to
devoted
way
the
on
Loan
energies
from
departure
invetigation
liatient
called
by
the
by
results of great value to members of the Association
mittee has secured
and
insurance
mutual
adviser
the government
and progress of this idea will be made
I venture
here,
has
when
machinery is under his control.
have broadened the scope of the insurance problem
distinct
a
Committee
Insurance
of
given a new aspect
been
desirability of this
or
however,
proposals,
and
has
form
some
The position
by the discussion
plain
bankers,
financial
the
even
of
to
advocates
banks themselves.
the
is
menace
.■
question of fidelity, indemnity and burglary insurance, always a
matter
the
'
CONVENTION.
these
new
the sale and
to
the
to
tasks
banks.
ditribution
The
KEEP
perform
willingly.
of
banker
Every
last
YOUR
word
May.
of
The
HEADS
that
liberal
CLEAR AND
YOUR
statement
,
is
still
extension
of
credit
prises is absolutely essential.
good,
for
For the banker
to
POWDER
as
all
DRY
applicable
now
constructive
withhold
as
enter¬
credit, when
BANKING
the
credit
is
he used in
to
and comfort to
extension
The
credit
of
it is giving aid
is near treason;
production,
for
the
profit
of
sake
speculative pur¬
for
or
productive enterprise.
Feeding a speculative fever cannot fail to havd an after-war effect,
the trouble sure to follow might leave its tracks for a century.
I do
not wish to prophesy.
Just what may happen after the war no man
knows; but we do know that if we follow sane rules, if we keep our
banks elean and liquid now, the inevitable after-the-war effects will be
is
poses
Let
have
us
these
the
Federal
No
bank
used.
to
have
'
rediscount privilege.
the
to
recourse
They are there to be
banks.
reserve
.v1//,';'■;
\
More branch banks
that
the progress made brings the assurance
established and
trade will not be handicapped by
development of our foreign
lack
banking facilities.
In
High
to
that
to stabilize exchange
Commission
addition
In
Commerce.
I refer to the plan of the
in Pan-American
its comprehensive plans for the reform of
it is pertinent
connection,
this
International
commercial law for the
Americas, the Commission has proposed an international gold clear¬
ance
fund,
guaranteed by treaty and similar in policy to the gold
clearance fund of the reserve system.
The treaty-draft has been sub¬
mitted to the American governments.
It provides for a uniform ex¬
regulations
administrative
will
ments
and
adopt a
uniform
a
the hope that the contracting govern¬
based upon a unit weighing
standard and expresses
change
victory.
Such
phere.
which the
work
Commission
to its
as
that
and
Building in Washington
for the asking.
are
of
keenly interested in the conduct
particularly in the unusual variations from fixed
principles which the war 'has made necessary.
Astonishing things have
been
happening in Washington;
Conditions have made it imperative
that the government, both by law and executive authority,
assume an
active participation in business or undertake its control and regulation.
The fixing of prices as a means of stimulating production and prevent¬
ing extortion, the control of food supplies to insure economy and fair
distribution, the direction of transportation and the building and man¬
and
government,
strange ventures for this government;
justification in war conditions.
War is a hard master.
aging of ships are all new and
all
It
their
find
permits neither choice of means nor delay of
unusual encroachments of government on
We may resent
private rights, and in
action.
these
I,t gives the assurance that our
this resentment is protection.
it
the return to normal
temporary and
is
sion
these unusual
of
surrender
the
the
of
officers
government,
the
with
worked* constantly
them
between
contact
antagonistic,
often
business
the
From
on
ness,
are-
and
whom rests direct responsibility,
on
these
great
the
trials
to react for the enlightenment of both.
the. government has learned much about busi¬
bound
man,
From
the business men will get new ideas of
difficulties which
and
The
specialists in business.
relations between two groups of men,
the
the government,
of
officers
beset the chosen servants of the peo¬
The two should work together, as
hereafter.
they are now working together,
continuously
of
Out
this, new
—a
a
better
think
and
sympathy toward business
who
yet attained perfection in our commercial methods
more
understanding by business mien of the views of those
not
have
we
I feel that great benefits will come
tolerance and
of greater
feeling
and
understanding,
ideals.
wheat
were
the
themselves for
organize
first
the
of
all
the
service of
economic
great
to
readjusted their
They
war.
forces
profit and turned themselves to the great task of
maintaining transportation and insuring the distribution of commodities
forgot
schedules,
quantity was unprecedented.
patriotic, but it seems to me that the
whose
lailroads have been most
The
real
lesson
have
a
in the failure to
is found in the lack of railroad facilities,
reserve
which
would
permit
the
railroads
to
meet
the emer¬
Despite the great efforts of the masters of transportation, the
difficulty is found in moving. commodities.
The long campangn of repression is bearing bitter fruit.
The situation bespeaks the
need of justice for the railroads, of fair rates, of liberal treatment and
of the summary discontinuance of persecution.
The conduct of the people of the country has been exactly what we
would expect.
On them, on the home, falls the great burden.
It is in
the hearts of the people that we must look for the final assurance of
success
in every venture, and in their hearts now we find the confi¬
dence of victory.
The people must supply the soldiers, support the
gency.
greatest
maintain the
charities,
and
those
Red
Cross,
do the saving,
furnish the labor
The army and navy are filled with volunteers, the
accepted without trouble, the training camps for
ambitious to lead overflowed.
The first Liberty Loan was over¬
pay
draft
of
subscribed.
greatly
was
Lawns
increased.-
were
turned
in the printed address:
easily solved if at the end of
least possible amount of goods on our shelves to be
will be much
have the
more
other nations; if we have the least
our elevators and storehouses which
in
stores of
because of lack of
and India
Australia
dormant in
lying
now
competition With
into
come
of the
close
of those commodities
at the
possible,
at
the
door
time
The
I wish all those present
the next speaker,
call
to be as quiet
that some one will remain on duty
I hope especially
and
prevent noise there.
to
arrived
has
when
McAdoo
G.
Wm.
Hon.
the
It
Convention.
this
addressed
I
before
will be accomplished.
seats, and as this is a large hall I ask you
secure
as
products of other countries
the
the sooner the readjustment
war,
Gentlemen,
would
to have
was
to be with
impossible for him
was
us
place of the Sec¬
retary this morning, and the Secretary will take the Governor's place
today,
Governor Strong' kindly agreed to take the
so
In
positively be here.
He will
morning.
tomorrow
annual address, ladies and gentlemen, I spoke of the fine
my
spirit
patriotic sacrifice made by so many of our prominent business men;
of
all this is not
but after
of
that
doing
fifty
years
patriotic
of
the
Bankers have been in the habit
thing.
new
a
last
the
for
illustration
inauguration of
the
at
in
to
order
was
in
instrumental
shaping this
great
this country.
A
four years ago
when one of the
shown
System,
Reserve
private banking interests
Reserve Bank and thus be
of the Federal
become Governor
in
more
or
sacrifice
Federal
greatest bankers of this country gave up his
for the
system
the
benefit of all
to give up
private interests, but he did it cheerfully; and it certainly gives
a great deal of pleasure—yes, I consider it a'great honor, to present
you Governor Strong of the primary Federal Reserve Bank of the
It
people.
his
xne
to
Hon.
'
behalf
of
Y.).—I
behalf, but
what you have said, Mr. President, not in my
thank you for
on
(Governor Federal Reserve Bank, "N.
Strong, Jr.
Benj.
sacrifice for this gentleman
tremendous
a
was
States.
United
associates in the Federal Reserve Bank.
my
and the Federal Reserve
"War Finance
System,"
into gardens.
The boys are drilling.
Production
has been
The girls are knitting.
will
address
Strong's
[Mr.
fiund
be
pages
on
101
105 of this
to
publication.]
Strong
Benjamin
refer
moment
to
read
heard
or
this
to
the
question
of
economy
delivered
addresses
for pne
I would like to digress
(in continuing):
in
those
by
You have
interested in
savings.
who are
from
done in
promoting safety and economy."
I am going to take the liberty of mak¬
ing'a suggestion to you bankers 'as to what immediate contribution you
can
make to promote the kind of economy in the United States that
will be required if we are to succeed in handling our Government [loans,
of
the country's
You have heard
supply.
food
the
conservation
Mr,.
Blackett, 6f the British Treasury, what Great Britain has
would
I
about
of
made
newly
rich
I
fortunes were being
orders.
There
Government
foreign
In that city being made by
hundred and fifty
two
from
costing
thousand
have no doubt those men were
doing
at that time this country
in war, but some of those men are going to send their
Europe in our army.
They do not realize that the possibili¬
their boys coming borne safely will be materially reduced by
regard to what
without
that
men,
made me last Winter
was
great
where
West,
orders,
dollars apiece.
million
one
it
meant, and
not engaged
to
sons
of
ties
shortening the
in
and shortening this war is
war,
entire
energy
war
our
finish.
ascertain
bankers
You
preparations
at
possible if we put our
not at the
the start and
i
is that every bank officer in this country take the pains
what purpose his customers are borrowing money.
My suggestion
to
that
statement
Middle
the
Government
twenty-three new houses being built
were
to
in
city
by the
it
Illustrate
a
out
made
for
have
a
great
influence with
your
customers," particularly
word of suggestion that will arouse the
patriotism of your' customers is the right kind of spirit of coopera¬
tion.
I believe all that will be needed is that unnecessary loans should
be discouraged,
and those loans that are made by our banks should
when
be
they want loans, and one
increasingly- those that are needed in order to
things
of
tion
ladles
Your
will
get
promote the produc¬
that the Government needs.
President Goebkl:
are
through
Now, gentlemen, I hope you will
perfectly
comfortable;
in good season
remain seated.
them; we
don't worry about
lunch-time,' and I hope
for
every one
there Is anyone speaking. I am
going now to introduce the most popular American banker, G. M.
Reynolds of Chicago, who will speak to us on " Business in War
of
you
will stay and not leave while
Times."
"Business in War Times"
[Mr.
the bills.
men
connection I wish to add a
That is, that the
this
continuing) ;—In
shipping facilities; and so I say the least we have
.
railroads
The
adherence to the ideals
inevitably then come into competition with the enormous
will
to
Our
To the home we owe
We cannot fail.
problems
we
implant in
Each one must do the best
plain.
to ourselves
loyalty;
the country,
President,
war
was
ple.
for what
have
By Benjamin Strong, Jr.
which legislation and regulation exert such an influence.
the
we
truth and righteousness.
virtue,
competition with the goods of
in
submis¬
situation.
The
for those enslaved
unmolested where
go
what
whatever position he is placed.
amount of wheat and other grains
conditions will bring with
feel proud of the response that busi¬
ness
men
of large interest have
made.
None has been backward.
Partisanship has' had no place.
Impelled by a desire to serve the
nation, these men turned themselves over to the President for orders
and went to work.
So fine has been the conduct of those called that it
is almost uncomplimentary to say it is no more than every, man's duty
to relinquish his private affairs and give himself to the government, but
it
is
with pride and gratification,
nevertheless, that we survey the'
have
to
from. others and
knowledge
the desire for
men
word which does not appear
people of the country should
The
no
right
exchange
may
we
gain
to
powers.
of these new enterprises of the government
commandeering of men of training and experience.
the
of
after-war
management
Competent
necessitated
where
right
Republic.
of the
striking
work may be had
like other citizens,
Bankers,
they keep in
Treasury
the
in
offices
has
information
detailed
not the peace
to have, we need
conquests of land or
sedk only freedom
we
ourselves—the
for
the
to
devotion,
exactly one-fifth of a dollar and not
close touch with the
International High Commission lias set for itself.
The
bankers
the
to
commend
past,
the
us,
hearts
.
I
in
that is in him in
gold guarantee system
franc would be
a
We desire
blush of shame.
a
as
leads
the
France.
the franc of
this year or next,
but whether it comes
conscionces are clear and our duty is
go'-d
of
grams
They look with patience
ways and provide the
the victory we desire and are going
freedom
more
want;
nine-tenths fine.
This unit was approved at a
meeting of the Pan-American Financial Conference as a " Pan-Ameri¬
can franc,'an international money of account;
for use in this hemis¬
.33
Now,
men.
and
the
will be unworthy the name if it is
it
To
with
look
not
(The
extended the range
operations still farther into foreign lands.
been
of
devise
will
peace.
long way off,
a
hence,
years
,:
the bankers of the country have
the year,
their
the
of
It means
of paper eligible for rediscount at
both by member and by non-member banks.
placed on the
V
'
Within
have
hesitate
be
seems
or
we
liquidity now means.
what
to
as
something more than quick assets.
bank,
reserve
must
Peace
for
who
the return of
secure
,
it means
should
Reliance
to
leaders
the
to
hope
means
commerce
misunderstanding
no
days
refusal
its
as
possession of a good proportion
the
of
vicious
as
easily handled.
more
In
almost
Everything is as it should be with the people.
and
in war.
it is impairing the chance of success
the enemy;
135
SECTION.
Reynolds' address will tie found on pages
until
2
of
100 to 109.]
will now take an adjournment
o'clock this afternoon, at which time we will take up the bal¬
the program—the proposed amendments to the constitution.
President
ance
by George M. Reynolds
Goebel:
(Recess to 2 P.
M.)
Gentlemen,
we
CONVENTION.
BANKERS'
136
adoption
SESSION.
AFTERNOON
of
amendment
increasing
dues,
■
;
M.
2 P.
■
of
President
The
Goebel:
njatters left over from
the
to
be
will
Convention
the forenoon session
in
only
The
order.
was
approved
The
high
Real.
American
PROPOSED AMENDMENTS TO CONSTITUTION.
Thomas
I'.
Treman
is
not
mittee,
..
to
Bkal, Jb.,
which
the
that
then
approved
the
on
subject
held
condi¬
amendment made to the
no
have
ask
to
President
consent
is at
from
con¬
these, dues.
hearing no objection,
it is
The'next amendment
proposed
the
is
has
Ilinsch.
re¬
is
posed,
that
viding
for
Exeeutive. Council
President.
the
of
approval
Mb.
Mason
of the
Vice-President
Mr.
Fred
W,
The
the
that
Committee
All
favor
in
It,
and
of
the
t|ie
he
do
I second the motion.
will
motion
V
is adopted.
amendment
this
with
Mason
President
amendment regarding vice-presidents
am erica
The next
eign
In
dents
of
amendment
those
that
Mr.
South
and
that
so
B.
we
America.
appoint
may
This
is
Remarks
honorary
Ail
in
have
ayes
I
adoption
the
move
Ohio
of
the
the
and
second
it.
adopted
motion
will
amendment
committee
respecting
is
on
and' fedebal legislative
state
is
the
tion
and
eral
Counsel
in
amendment
State
Federal
ami
say
aye;
op¬
respect
legislation
state
"
councils,
Committee
to
Legislative Councils.
of the Association
Members
of
to
as
fourfold.
adjunct
an
^
I
Legisla¬
State
on
will ask
explain this proposition
tion,
It
the
New
of
First,
to
of
in
legitimate ways
has
a
in
state
been
adjunct
provided
that,
and
at
the
the Con¬
to
some
of
great necessity
a
representative
termine
of
measure
what
the
being
each
of
of ,one
making
state,
adds
ment
it
composed
the
to
the
It
has
The
Convention.
ami
First
Association
the
that
that
Association
States
lie
Council
as
an
adjunct
to
Federal
to
Association
representative
legislation
a
will
and
President
I.).
8.
enable
Goebel:
planation of Mr.
Mr.
the
in
shall
in
the
us
object
body
of
the
as
The
and
suffi¬
some
and
such
do
of
what is
more
now
on
state
Council,
state
your
Tyrone,
President
lKisetl,
no.
Hirsoh, of Texas
Goebel:
The
ayes
All
in
:
body,
a
new
In
amend¬
members,
state
legisla¬
to
handle
you
Legisla¬
legislation
This
effective
that
State
a
will
that
;
give
matters
of
the
state
work.
have
of
will
is
say
aye;
op¬
adopted.
Section.
I
move
the
adoption
ex¬
of
the
I second the motion.
of
the
motion
the amendment
is
will
say
Section.
with
reports
culminating at this
by
year
officers
various
made
was
and
The
clearly-
committees.
place have been most helpful and
the .Section
Blair,
perusal
will
which
full
a
be
Association.
Union
Trust
Company,
President
flatten,
Dinkins,
II.
of
De¬
V',
the
United
City.
New York
Lynn
in
The new
7;':;■/■' :!'V
W.
en¬
report
published
follows:
as
are
President
President
Inter¬
New Orleans, La.
New York City.
Mershon,
This
President and Gen¬
Section
progress
Convention
report Will be received and
The next
course.
Remarks
-
Joseph
of
Joseph
Mr.
the
of
by
r.
placed
file,
on
will be that of the Savings Bank
report
Noel
R.
Savings Bank
for
that
the Sections.
Section
the
As
a
It
is
the
work
of
persistently
Section.
should
the
States
for
of
insure
waste,
be
successful
interesting
of
$1,700,000,000
of
result
The
Committee
Kansas
City
publicity
some
railway
the
at
Convention.
purposes
of which
discussed
all
by
the
aye;
op-
by
been
the
as
banks
presented
committees
would
articles
is
for
Increased Savings,
tend
to
United
has
it
of
the
the
to
made
affects
a
over
country.
Newlands
being
utilized
economic
for
journals,
The problem of possible future
of
the
Section
has
disturb
the
Section, and
been
of work scheduled for the
Such subjects
as:
in
savings
advise the most desirable
properly
be plenty
The
the
and
resolution adopted at the
the material
of
that
the banks
the
of savings deposits from banks has been
various
during the coming year.
for
held
have
Section
situation,
pursuance, of a
and
vigor
hoped
to provide the sinews
This
war.
railroad
writing
emergency.
that
to
sincerely
Government of
However,
the
years
fruit.
added, production,
the
have already appeared.
the
for any
matters
in
six
invaluable.
the campaign among all
possible agency
of
to
Is
we
good
promoted -with
It
war.
are,
functions
inaugurated
savings,
securities
in
Section
of the
that
every
study was
Washington,
one
performed
borne much
lias
Members
increasingly
largely
Bank
campaign,
the
end
the
is
the campaign has been
further
prosecution
study
becoming
As
continuously
greater
the
to
firing to its aid
may
the
very
to
country
elimination
A.
B.
promoted,
period of
the
President and
■
is
Savings
the
measure,
General Association will
the
of
thrift
nationwide
which
throughout
Mr.
;
Association
the
The activities
preparedness for war
a
111,
Association,—It
work
importance to the A.
since then
and
ago
of
Bankers
field
the
believe, of vital
of
Noel, of Chicago,
American
evident
There Mill
adopted.
Mr.
Company
for your thoughtful
John
Gobbet.':
the usual
paring
the
Company
Trust
of
throughout the
Committee,
Leroy A.
heavy withdrawals
heard
pleasure?
Pa.:
favor
have it, and
motion
the proceedings of this
W.
Executive
endeavored
Joseph
you
its adoption.
move
the
Trust
7
President
energy
it.
amendment.
Mr.
the
What* will
group.
interesting sessions in its history.
Annual
officers
Frank
Secretary,
de¬
to
Council
third
six
hap¬
intro¬
regard
Executive
Blair
Trust & Banking Company,
state
all
in
is
moment
be
Legislation
committee
each
to
mem¬
special
place
amend¬
opposed,
there be
the
at
representative.
Legislative
Gentlemen,
Paton,
Kloss,
it
the
their
own
to
the
on
groups.
Section.
the
banks
object of these proposed amendments is to create
being similar
their
to
necessary
have
found;
best,he served by subdividing that committee and assigning to
tiie different brunches the different parts of the work.
The fourth and
tive
I
:
of
can
final
have raised
the amendment
Mortgage & Trust Company,
sanc¬
been
policy
or
Legislative Council
State
on
op¬
pro¬
that
different
the Trust Company
submitted
commend
Vice-President,
in
frequently
favored
representative of
Committee
It
affecting
consider
the
aye;
groups.
states
into
entitled
are
say
adopted.
representative
no
put
are
has become
and
Mich,
years-
second
shall
having been determined that the different branches of
tion
two
legislation
legislative
be either
thoroughly
it
For
One object of these
ballot
This amendment creates the Federal
it
state,
Legislative Council
this
to
it,
accomplished
and we
re-elected
troit,
Legislative Council
of federal
importance
in
body
policy
each
General
the
present
have
A.
favor
W.
the next issue of
in'
and
proposed
this
arising between sessions of the Executive
emergency
sessions
in
referendum
by
Federal
President
in
form the Federal Legislative Council
the Federal
we
.
in
the most
Twenty-second
our
full
Gen¬
council, though without official
respect
Washington which should
is
there
ciently
any
Mr.
view
Legislative Committee.
Federal
that
in
that
pens
duced
is
determine
can
Association
Council
the
to
for
in
a
effective.
very
ments, is to put in constitutional
an
create
member
one
each
City:
object
Legislative Committee.
in existence such
consists
work
York
The
Federal
the
to
there lias been
that
Paton,
Convention.
the
is
amendment
B.
that
gentlemen?
which have taken
discussions
Chairman
Thomas
will
is
state
three states
it
Report of
in the" report
apparent
The
adopted.
vention.
Mr.
At
of great activity and
of
two
work
President,
Next
use
namely, an amendment
Blair, of Detroit, Michigan:
;
of
and
we
it.
Frank
year
a
hi
Convention
lightening,
amendment
motion
the
they
or
Convention.—The
pleasure
constructive
I
:
much
the
of
tlemen
favor
it,
B.
they
and
have
the
of
W.
Frank
Vice-Presi¬
15V
Goebel:
is
sufficient,
for¬
simply
Mr.
Dismukbh, Of Jacksonville, Fla.:
The
no.
A.
Also
All
ayes
order
in
do
or
sufficient to pay some-
not
was
re-arranging
■
reason
second
Goebel:
The
no.
Next
several countries,
Rankin, of Coltmibus,
President
posed!,
south
central and
amendment.
8.
posed,
Central
North,
in
John T.
Mr.
north,
always
am
adopted.
proposed amendment is in regard to Vice-Presidents in
countries
proforma
a
in
I
expenses
Utah and Wyoming into one
I
if the increase
which
:
of
Dismukeh, of Florida
:
member¬
y
inquire
will be
it
groups.
two
group
that
amendment,
T.
John
Mr.
.
the
over,
For
Nevada,
Mr.
opposed,
aye;
say
of
States
adopted.
raised
are
total
a
of the resolution to in¬
to
the amendment
and
of
such.
as
and
100
to
representative.
providing for the addition
the Administrative
to
have
ayes
received
bership
amendment
IIyde, of Jamestown, N. Y.:
President:
The
no.
might say' that this amendment has
I
move
on
Council,
;
if
favor
amendment
the Southwestern
In
Executive Council.
the
I
:
in
than 100 members of
less
he is
the
All
have it,
re-arrangement
a
in
increased
.
ft
'
that
in¬
each—107
their dues
9>
that
mind
dol¬
an
number—are
this year's
for
deficit?
forty
for
I second the motion that has been made by Mr.
X' V".'''''V.';',''?■
of
to be
elected
explain
to
paying
fifty
produces,
Executive
the
in
ayes
adoption
This
information,
We hope
GoebEl:
The
wise that the Vice-President ought
seemed
it
because
the
Vice-
increase from $0,680
an
in
paying $110,
of last year.
had
fully conversant with all of the affairs of the Association when
troduced,
of
ask
provides
paying
find that there is one more amendment,
I
in¬
I
I
.
no.
0
Vice-President
the
proposition
a
the deficit
President
The chair
committee.
addition of
This
he
by
suggested
Mason:
It
I move the adoption
:
\ 0'"
rise for
ought to piake it so.
■'i..'I
v
i
administrative?
to
which
to
lie withdrawn.
may
ordered.
so
Committee.
Administrative
the
they
will
Committee,
Those
Those
Those
■
I
President Goebeli
unanimous
asked
it
to.
increased.
sixty-five—541
of sustaining—provides
tiling on
in respect of mem¬
Boston
amendments
the
added
vtce-1'hkhidknt
to
of
is objection
there
favor
;
May
unchanged.
are
$11,000.
to
part of it for last year's
me
Mr.
from
amount
Mason:
dues—as
to he withdrawn that his reso¬
gentleman
Treasury
I
dues.
that they will produce
paying
ship of 10,640, $17,000.
crease
authorized
the
the Finance
of
$17,080.
$35,000.
to
they
in
lias
in
the dues amount
dues
to
so
Those
$25,000
that
so
present.
The
withdrawal
the
to
'Unless
ferred.
it
as
Goebel :
he
and that the constitution
be also withdrawn,
bership remain
ami
$13,260
$8,350.
to
withdraws
Wexler,
Mr.
If this resolution is allowed
that
lution
with
talked
also
the
upon
and
discussion.
for that reason it has been deemed
and
remain
dollars
them—their
of
in
Amendment
aiBMBEitsHip
We
its effect
had
increase
an
IIinsch, of Cincinnati, Ohio: Mr. President and Oentlewho pay ten dollars, twenty dollars,
from
Mb.
V
to
Executive Council
h>; the
increase
the chairman
numlier—are ranged
It
'
K,■■■ -
A.
twenty-five
crease
meeting here
a
has
slight
a
regard
Briarciiff meeting after full
Association,
these increases in
lars—442
for the withdrawal of that resolution,
membership.
of
and
pro¬
for many reasons
We
that resolution.
to ask
deeming it wise that there should be
stitution
But
resolution.
that
all know and
we
as
the
in
printed
living
Ilinsch,
C.
the
at
In
meu.—The dues of those members
a
the
to
of
cost
what
Mr.
Com¬
had
We
introduce
to
been
has
that Mr
sorry
them
Bankers
President
Membership
relates.
wise
was
which
am
the
it
wise to withdraw
seemed
I
of
amendment
resolution
this week and determined
Mass.;
chairman
felt
we
have changed since
tions
the
proposed
first
Executive Council
The
gram.
has
Council
of Boston,
is
he
as
the
spring and
meeting last
Executive
here,
by
is
amendment
considered
been
recommend
to
just
Mb.
proposed
has
This
dues.
fiest
last
and
the propose;! amendment*
are
The chair recognizes Mr,
constitution.
next
The
thoroughly
we
close
banks,
course
of
are
touch
pre¬
with
and
has
action.
Savings Bank Section
The War and Great
Need
Studies in Connection with the Care of Securities
BANKING
held
Savings
by
Banks,
establishment
of
ganization of
new
mental
The
when
bers
and
1,380
in
the
tion.
The
Section
credit
requested
and
new
members
Savings
appropriation
an
the
in
Section
it
amounts
will
we
the
to
five
care
to
We have
Secretaries'
the State
of
report
indeed
to
the
give'
S.
Mr.
B.
49
are
it.
the
and
and
the
with
touch
closer
recent
In
willingness.
much
of
results
years
Next
and
operation
closer
this
Section,
Secretaries'
with
and
come;
been
parent
the
a
The
Associations
State
team
ciations,
We
this
fact
Association,
just
iu
One
short time,
"A
American
the
Bankers
communities generally.
headquarters, with a
secretary in charge at all- times.
They are the ones that direct—
not altogether, of course, but to a very creditable extent—their state
banking legislation, and through their labor and efforts many banking
have greatly benefited
that
As
statute books.
state
ciation
they
of the American Bankers Asso¬
they do add much to its strength and
and
can
banks and bankers have been put upon
Section
a
power..
Council a resolution was
Secretaries' Section to ap¬
point a committee to take a referendum of the memliers regarding the
organization by the A. B. A. of a company, either stock of mutual, to
carry fidelity bonds and burglary insurance for its memliers only.
The
appointees on that committee were:
II. A. Moehlenpah, of Milwaukee,
as
chairman; S, B. Montgomery, of Quincy, III. I and Secretaries McFadden, of South Dakota; Graettinger, of Illinois, and Bartlett, of
Wisconsin.
The committee worked hard to secure a full voice and
accurate sentiments
from the memliership, and their report at this
At
the
conclusion,
In
the
general
will
Remarks
page
interest.
financial statement of the .Sec¬
here containing
47 of the pamphlet that is
.
The
Goebei. :
of
George E. Allen
be
American
George
Mr,
director,
will
report
the report of the
have
educational
the
state that the
will
on
Executive
reports.
President
we
I
found
be
will
tion
of
found
be
will
Convention
the
President of
authorizing the
adopted
of
meeting
spring
E.
filed.
and
received
Next
Right here I
it
treat
as
spent
a
was
based
of
member
not on
Members of the American
Institute of Banking is
now
liberal amount
of your money.
the
blanket sum each year,
a
on
aud
Association,
the
A.
It.
which,
membership,
in
two
some
A.
years,
We were
of the others
if
not
""bulls" at that
in
were
" bears,"
one
year,
reach
must
20,000, will provide the funds that we need for our purposes.
The Institute now has 79 chapters and &2,043 - members.
We
graduates,
2,490
and
our
educational
standard
will
compare,
have
college
school in tjlie land. We realize that bank¬
'Those of you who have been in banking
the customs of to-day and
of- ten years ago, and 1 venture to say that ten years from now
is to-day considered knowledge wili be considered little short of
professors tell me, with any
ing
in
for
ten
those
what
America is changing.
years
ignorance.
is
<>f
our
men
know
the difference between
We realize thjt banking is becoming a profession, and it
and we are working to that end, to produce a body
will keep up with the procession of progress.
But there
ambition,
who
We cannot produce a body of
with more sterling character, greater insight and foresight and
founder patriotism than the long line of American giant bankers
have
met
every
emergency
that has confronted this country
financed every war in which the country has been engaged from
is
one
thing that
we
cannot do.
addressing us.
and
here
is now going
the world
in
educators
I present to you Dr.
President of Columbia University,
President:
who
"Nicholas
of New York.
desire
to
recognize
Mr,
George,
of
resolution at the
introduce a
to
consent
The chair hears none.
there any objections.
Are
time.
I
112 to 113.]
pages
appears on
Gentlemen,
unanimous
lias
Mr.
has the floor.
Praise
Frank
for
Mr.
George:
Mr.
VanderlIi'.
A.
President,
know
to
full
to do with
has
that
one
as
gentlemen of the Convention,*with
and
President I rise at this time to offer a resolution,
the consent of your
the acts of a
man
that it has been my pleasure
boy and as a youth; a man whom you
a
manhood,
have known in his
who lias in the last few days shown his patriotic
man
a
The resolution is as follows:
spirit and his love for his country.
RESOLUTION.
trial to our nation, which threatens
flag and uphold our institu¬
the machinery necessary I to
equip and maintain the mighty host which has rallied to the country's
call, is of primest importance; lie it
Resolved, That the action of Frank A. Vanderlip in leaving his most
Important position in civic life to give his time and all of his ability to
liis country in her need, is most commendable and we wish him God¬
speed in his generous and patriotic course.
,
Whereas, In this hour of supreme
its very life, the call for men to defend our
has met with a splendid response, and
ting
u
(Prolonged applause).
favor of
in
the adoption
of the resolution will
rise.
unanimously.
hall as we have much busi¬
afternoon, and I expect to clear up the budget be¬
will get through in ample time.
We have but two
transact this
to
adopted
do not leave the Convention
Gentlemen,
fore we
is
Resolution
President:
The
ness
All
President:
The
please
quit, but we
of this great Association—but it must
remain in your seats and take part in the
winding up of the business of the day.
The next on the program is the report of the National Bunk .Section,
which will be presented by Mr. Calfee.
Mr. Calfee:
Mr. President, and Gentlemen of the Convention.—I
days
the business
transact
to
transacted, so I ask you to
be
take
in submitting the
following report:
Bank Section
great pleasure
report will
[This
President:
Section will be received
Bank
tional
lie found on page 128.]
If* there is no objection,
will next have the.
We
men
pro-
who
and
the
.
the Report of the Na¬
and filed.
report of the .State Bank
Section, which will
presented by Mr. Puelicher.
be
Remarks
of
John H. Pueligiiek for
but on 75
and
the fact that the membership has increased 3,000 since that time, and
our
revenue
has increased accordingly, is no fault of ours.
We need all the money that we are getting.
We need more, but we
are still
bulls on the A. B. A. and we believe that your increase In
time
American
the
A Changing World.
The
Illinois,
want to let you into a secret, believing that you will all
confidential.
Several years ago the "appropriation
each
for
cents
American
has
of
coming
for
you
110 to 112.]
Bankers,
Lord
address in full on pages
distinguished
upon
strictly
Section
our
and
old
years
the U. S.
Report of National
York:
New
the
Changing World," by Dr. Nicholas Murray Butler
The
of
Allen,
E.
Association.—The
Bankers
seventeen
for
most
Allen.
•
George
Mr.
~
Institute of Banking, by the
American Institute of Banking.
for
including
is coining
Secretary
their #own
maintain
associations
state
Many
laws
thank
I
the
for the welfare of the states and of
approach
Allies,
high honor to present to you Lord
to be a member of a
requires membership in a
together, is bound to create in
links
these
proprietor of that great
the
of
needs
a
behalf
On
:
Butler's address
George
whole banking
the
Goebel
Butler,
present
force that will not only be
combined
a
man
a
its lethargy and
by Lord Northcliffe, Chairman British War
*
in
the
I deem it
Ixird Northcliffe's
to us
Murray
times—
present
invaluable to the
fraternity of our country, but a tremendous channel for
various industrial and civil improvements as well.
There is, I believe,
no
other association in existence to-day th'at has so many avenues of
a
of
the State Asso¬
group
a
is with us to-day;
1
Northcliffe,
year.
future
distant
membership
require
Putting
•
in about
respective State
and
State
Every
each
more
far
not
memltership
as
association.
state
the
will
Association
State
and
more
in
that
believe
condition
that
able to point out that it was sure
started,
knows
who
man
a
States, to-day.
to speak
work
Association
during
Association
National
overestimated.
be
cannot
realize
to
benefits—especially
the
between
cooperation
National
the
to
from
Times, but numberless other newspapers; and,
the London
all,
time pre¬
at any
the groups stand to their
as
mutual
The
Associations.
of
stand
relative position
away
that it Is to-day than any
convictions, and who was.
fighting machine
war
[Mr.
same
getting
are
who is not only-the editor and
man
President
viously.
the
we
association,
harmonious
the past year than
apparent during
more
us
opportunity to get acquainted with them.
an
magnificent
[We print
rep¬
.
have
begin
with
It lias been
love those people more.
we
Mission to
Within
other
each
to the1
we
Section.
experience lack nothing in energy
the State Secretaries have kept in
secretarial
lacking
perhaps
As
that are allied
the nations
up
of living Englishmen
before this
years
above
Mr. President and Gentle¬
the
in
listen
to
other more.
to arouse the British Empire from
Nortlicliffe,
the past year several of
and in their places are new men who
have retired
the older secretaries
while
secretaries
state
49 state associations.
resenting the
that
State Secretaries.
Rankin for
of Columbus,-Ohio:
Rankin,
men.-*—There
B.
S.
op
make
us
greatest
"How Long?"
Remarks
that
done more
newspaper,
for our needs during
will will be received and filed.
The report
:
and
of
United
Goebel
have
fortunate
us
make
to
The balance
$43.24.
to
people
love each
we
other man;■ a man who has the courage of his
expenditures
the coming year.
President
is
One
of this being for last
of proceedings.
Section
lias arrived
time
We will
afternoon.
struggle for democracy,
who has
of¬
general
the
The
the
the
as
time of
the
and that prominent men, missions, have come here to get acquainted
v
Association,
the
now,
to
*
and filed.
unfortunate that we have not lieen in closer touch with our allies, and
,
a
together with mis¬
$12,129.83.
$9,489.92
of
be
Associa¬
this
of
from
That,
large part
a
book
and
Bank
will
year
with
appropriations
amounting to
expenses
the
next
it so.
$11,869.31.
to
banks and
member
that
aggregate $12,080.61.
of
voting
liope
the credit of
to
credits
Convention
year's
the
placed
total
the year
the
We
three
aggregate
to 3,822.
in
to make
part
received
Die
items
makes
for
has
in
cellaneous
our
of the
down
associates.
thousand
report will be received
As we know each other better
This includes associate mem¬
2,442
This
speakers
know
have
banks.
seventeen
suspend further reports
to
banks.
his
and
Goebel:
'
to
have grown
we
Hamilton and Robert Morris
Alexander
Goebei
President
During the past year we have bad
enrollment
new
do
will
amounting
fice,
member
Peter
detri¬
increase.
.
continues
Section
1,773
was
cent.
We
members.
for
year
We
Bank
membership
123 per
Section of 232
the
voting
•"
Savings
days of
of forms, the
of the or¬
book
new
encouragement
watching legislation
interests.
our
non-voting
banner
a
the
and
savings
gain
net
of
banks,
increase of about
an
a
to
1910
compiling
savings
savings departments,
membership of
Since
the
school
137
SECTION.
Mr. Chairman and
Pukmciier :
H.
John
Mil
State Bank Section.
gentlemen of the Con¬
the two addresses you
difficult task, but the Presidents of
the Sections are required to make their reports to the Association.
The State Bank Section was organized at Kansas City one year ago.
Its membership today
is approximately 7,500 members.
The future
membership of this organization must come largely from the State
Bankers in this country, and that Section if well governed is bound
to wield a powerful influence in the financial affairs of the association.
The work which the officers of the section dedicated themselves to
was
the securing of amendments to the Federal Reserve Act' which
take
vention.—To
have
heard
just
you
now
back to business from
is a rather
Reserve System with a
Federal Reserve Act as
privileges from you as
state bankers, but gives you in addition to those rights»all the rights
and privileges of the Federal Reserve System.
The Federal Reserve
Act as amended is the greatest piece of financial legislation that has
enable. State Bankers to join the Federal
privileges as possible.
The
would
sacrifice of as few
amended
takes none of
been written
into
Constitution.
It
The
work
state
them
charter rights and
the laws of this
enables the
£ountry since the adoption
of its
unifying of the banking system of the
States.
United
to
your
in
before
this section for the
bankers generally
this direction.
coming year is to make known
the privileges which have
been secured for
BANKERS'
138
That
Federal
the
he
never
become
known
world,
complete
is
amended
as
which
activities
in
of
piece
great
a
legislation.
will
to
presented
be
his
thank
to
want
which will
the intention
with
Some
who
things
have
not
have
the
to be
me
to
who
the
is
has
made
heard
have
man
which
and
present,
you
Chairman
bearing upon
a
Federal
made
the
to
made
the
ernor
Harding yesterday afternoon
Reserve
Federal
gave
has
illuminating address
very
Mr.
this country
of
structure
splendid address
patriotic address
of Governor
of
President
Strong
Butler,
folowing resolution:.
Pierson
it
subject and
also the
council,
TO
federal
.
Resolved,
from
the
Membership
a
of
join
in
the
each
Federal
the system,
state
to
more
and
for
that the
..-.v
all
Reserve District
I
the
move
Mr.
O.
of the country may
Company
I
i
would
Section
is
a
fertile
field/
fertile
more
The Trust
today than
the
The
is
question
All
It is carried.
adoption of the
the
on
presented by Vice-President Hinsch.
favor
in
I
part
and
patriotic
!
the
resolution
President
in
be
resolution
the
S.
of
the policies
to
bring about
resolutions
appoint
successful
a
their
termination
judgment
action
Committee
a
of
the
War,
and
such
properly be presented to
may
consideration."
of
In
of
provides
that
report of the doings of the
the
following:
of
of
Chairman
the
of
recommendations
taken up
the
in
this
Hillsboro,
St.
separately.
liberty
loan
campaign
endorsed.
Merchants
National
that
I
Bank,
desire
to
makei in relation, to
namely that with reference
Mr. Chairman,
move,
administration
American
ratified.
I
of
think
it is
and praiseworthy
that
this
therefore,
I
Loan
be
use
campaign
most
heartily
the most timely
Association has done
move
that that action'
President, and his excellent and efficient work
therewith,
be most heartily approved.
Goebel:
the
Liberty
without question
act
a.nd
year;
the
Association
Bankers
that the action
dollars for the
Louis:
Second
that.
Gentlemen, you have heard the motion that the
Executive
Are
Council
in
making
the
appropriation
of
the
ready
you
for
the
to
American
make
question?
The
Ayes
have
it
and
•
connection,
gentlemen,
the
report
desire
I
of
the
Liberty
call
to
now
Loan
Chairman
upon
Committee
of
the
Bankers Association,
other
you
Report of Liberty Loan Committee
for
f
,
[This
(Motion seconded and. carried.)
The President
I
:
will appoint
that committee, Mr.
on
L.
'
,
Jos.
The next is the
;
E.
Pierson
time,
Report of Currency Commission
Commission
Is
not
here,
and
will
we
have
would
like
on
to
120 to 130.]
pages
here,
say
gentlemen,
as
who
one
with the general offices of the association for
in 1907-8-9,
and who lost touch with that organization
in
its. development, it
.'
was a
positive revelation to me to go in there and
genius and efficiency which exists at the general offices at this
find "the
chairman of. this
I
:
rather close touch
three years,
Jess.
report of the Currency Commission.
will be found in full
report
in
was
Wagar,
Mr. II. P. Mosely, Arthur Reynolds, Theodore Smith and Stoddard
The
by
you
funds, and of the President in issuing them, be ratified and
this
Pierson
the adoption.
move
con¬
and hearty support of the Government in their efforts
in
as
few
a
this
Loan Committee
Association
report
Hawes, Third National Bank, St.
confirmed.
Ftye, to prepare and submit to the Convention resolutions giving ex¬
pression to the patriotic sentiments of the delegates and of our approval
I
the
the
conduct of the
connection
It.
"aye," opposed
say
government
of
to
Executive
take
hope everyone of
submit
number
motion
one
during the period of the
in
resolution:
support
authorized
I
and
anual
the
a
the motion prevails.
that
move
Liberty
Bankers
an
is
I desire to
in
of
commendable
necessary
I
Aye.
say
before
come
Council appropriating twenty thousand
President
the
President
have another
the
that should be
President
I have
confirmed and
ever
•„
Vice-President Hinsch:
mo¬
ready
you
will
130.]
page
are
for
Liberty Loan,
.
President:
"no,"
the
and
known.
ever
O.:
Executive
on
Companies will be members of the greatest banking system this country
The
Are
will only
will
thing referred t,o there in your report,
to
the vast majority of the Trust
course
which
desird to
That
There
Convention
Sams,
Charlfes,
of
like to heartily second that motion.
very
before; and I believe that in due
has
N.
one
each
in
adoption of this resolution.
Mason
file.
banks
in its judgment will best serve the
as
of
American
on
Goebel:
appropriation
among
such
in view.
end
file?
on
is the report of the
that
Chairman,
that reason I
Council.
report of the
Federal
sub-Committees
and
That
on
shall be to
District
procure
resources
Committees
the
was
motion prevails. V
report
report
York,
the
the committee.
the substitute
after this report,
this report
President
Executive
five
than
the
as
Reserve
to
less
[We print
of
Federal
or
Banks
''v'v::
v
not
join
to
shall be the duty of such Committee of
and it
appoint such
■
function
whose
move
at
Report of Executive Council
banks
known
be
to
Federal
or
Reserve
the end
to
te effectually mobilized,
or
state
.
committee of
a
Campaign Committee,
campaign
non-members
five
system.
membership of the Association
Reserve
conduct
to
reserve
there be appointed
that
state
non-member
then,
the substitute
accept
you
program
of the council make
•.
solicit
and
fitting to offer the
seems
"
committee
provision.
simply to
'"V;'
the chairman
__
campa1gn
the
The Constitution of the
morning
this
it,
and
Fri¬
on
the substitution.
placed
the substitute
made—the
New
of
You heard this
on
so
be
will
who favor
interesting
most
will
file
will'stay.
by admission into the system of all
membership.
to
and
Immediately
vention
constitutional
a
plan would be
I accept
received and
those
the next on
the
remark?
a
committee
Mr. President, that is just what I
Gentlemen,
All
Ayes have it,
minutes,
is
the
matter of the continuation of
report, be
Gentlemen,
the subject, and pointed out clearly the need of strengthening the
upon
financial
It
make
to
of
regular program
our
on
committed\and
:
,%
■
the
president
appoints
a
committee
on
trade
acceptance.
pleasure of hearing from the Honorable J. B. Forgan, of Chicago, whom
we
have
The
•—In
can
missed
Hon.
J.
B.
the absence
be
made,
in
portance
there
under
whose
developing
tions
for
the
as
long
change, in
and
an
pated.
therefore behooves
into
the
thereby
and
cooperation
complished
with
strong
by
System
by mobilizing in
it
as
state
now
has
developed
The
vaults, where they will
more
us
the
all
Federal
the
It
Reserve
necessary
recommenda¬
that
banks
as
doing
their
reserves
be found
to
test
severe
to
enter
be
Reserve
they
are
little
was
the
most
Board
This
commercial
share in
of
far
so
their
Federal
than
into
possible.
a
the
put
have
recom¬
In
can
Reserve
antici¬
ever
hearty
the
use
best
business,
carrying
to
be
tainly is
a
you will
complete
can
In connection
I
fine one,
very
day's program
desire to
us about twenty
nicely and have a
Mr.
our
with
just favor
report,
Pierson's
announce
Acceptances, which is to work with similar
Credit
Association
this
on
Now,
ask
on
Ls
so
of
Illinois,
gentlemen,
the
him
of
National
the
Comfnittce—three
Woodruff
and
Mr.
Wayne
unanimous consent
this Committee.
ordered
Now,
and
gentlemen,
tive -.Council
and
ratified!
and
one,
a
Chambers of
which
committee
committees
experts—Messrs.
of
on
Commerce.
Freeman
cer¬
Trade
the National
I
of
appoint
New
York,
of Pennsylvania.
Wayne is
not
a
member of the Council,
of this Convention to authorize
Do I hear any objection?
me
and
to
I
name
There being none,
it
carried.
the next
the
thing in ord.er is the report of the Execu¬
recommendations
perhaps
-there
are
one
therein
or
two
contained.
more
than
You
have
need
your
attention.
them
president-authorized
to
ac¬
appoint
other
committees
to
fratebnijflt
with
organizations.
coming
in
or
their
to
the
country under the strain that is inevitably coming on our resources.
President Goebel:
We will next have the Report of the Insurance
Committee, Mr. Parker.
we
present.
and
making
developing its strength
now
President Goebel: Now, if
minutes longer,
quorum
Board
protecting the financial and
will
Federal
powerful
gold
and
war
produced,
and doing
the
during
commission.
currency
Federal Reserve Act
much
with
and
the
it.
made all
financing of the
System to
as
nothing of sufficient im¬
as
legislation
and Congress has acted promptly on
conditions
system
report
intelligent supervision the Federal System is
Industrial
patriotic
formal
the Federal Reserve currency system con¬
its purpose as well as it is now doing,
the original
earlier
Gentlemen.
and
no
serve
satisfactorily, have
been found necessary;
It
Commission
meeting of the
a
interference
no
The
the
I
Chairman
Mr.
;
of
currency
as
and to
faithful
so
mendations.
with
to necessitate
that
be
years.
(Chicago)
Chairman
in fact is any necessary,
develop,
should
past few
Forgan
of
nor
been felt
tinues to
the
connection
the past year
has
for
I
substitute
a
Chair
the
that this report be received and placed
Goebel:
the
interfere
way
and the continu¬
point of order on, or make a substitute motion.
substitute?
Council.
Gov¬
State Bankers.
to
a
us
which
Act
the
Newcomer, Baltimore
that
the
The
State Bank Section, a
Reserve
attractive
System
banks of all Classes eligible
the
tion
for
a
so
part
com¬
(Seconded.)
continuance
We have
Minnesota:
substitute motion,
a
Waldo
splendid report which
the
allow
the
to
Committees.
report of
Dow ling,
the
the
in any
or
I move you as
you
be confined
take up the
President
Gentlemen.—It seems
and
by the President of the
amendments
recent
is
responsible than any other banker in this country for
more
J.
M.
»
the
rising to make
Mr.
Will
Goebel:
time,
on
only
not
their report,
(Applause.)
adoption of the report.
proper
appropriate time to introduce the resolution 1 am about
an
committee.
to
The Chair hears no objection.
Hinsch:
Vice-President
to
now,
go
My Judgment would be that the better
I am going to recognize Vice-President Hinsch, who
consent
to
introduce a. resolution as this time.
granted?
committee
the adoption of
day the appointment of
We want to feel while we are State
work
justify
be a positive catastrophe to this body; and
Dowling, Minnesota:
receive
excellent
fully
of State bankers
the patriotism
about
that
move
must
to
seems
\.vf:
the system.
(Applause).
loyal.
unanimous
this consent
enter intelligently
may
we
to
it
Mr. President, this report is
such
shows
to justify all the expenditure they have made,
but
let
same
motion
the
i
patriotism and iu our devotion to our country there
our
more
none
said
been
The President :
asks
Is
if we enter,
J.
it
work, would
President
The
the Federal Re¬
the provisions of
of staying in
joined the system.
bankers, yet in
are
M,
to
wa
of the
ance
banks have assisted and will continue
study
to
System carefully, so that
serve
and
Bank Section who in
System, the advantages of that system.
Bankers want
their
and
that
existence,
think
I
with
pointing out to state bankers who are not members of the
in
Reserve
State
We
mittee's
therefore
President of the National
the
satisfactory
committee
the
and
-
this section.
report said that the national
assist
to
Federal
of
Resolution which was adopted yester¬
unanimously endorsed by a
day at the meeting of
I
The
later.
you
128,}
Newcomer, Baltimore, Md, *.
extremely
The findings of this Committee
later in this Session.
its report
Waldo
has further
Section
The
activities have been in the care of the Insurance Committee,
make
Report of the Insurance Committee
{This report appears on page
countries of the
the banking experience of the civilized
is
and
engaged
were
should
and
Evolution will change it ; as our needs
it will be further amended.
But as it stands today it
changed is not true.
the result of
is
Act
Reserve
CONVENTION.
President
Goebel:
You
will
notice
that
the
President
appointed
commitees during the year to attend conventions of similar bodies to
Association.
for
that
shall
that
reason
work
the
Our constitution does not provide for this
specifically,
in
it
might
be
wise
if this
convention
approves,
harmony with other similar bodies of the United
action
of the President in
that
our
and
we
States,
appointing these various committees
BANKING
be
approved, end tbat the incoming President also be requested to
point similar committees whenever in
ap¬
Report of Committee
[The report of this committee may be found on pages 123 to
S.
Hawes, St. Louis:
President
motion
is
Goebel:
that
I so
move
Gentlemen,
action
the
commitees-—which
of
almost
have
yo-j
President
the
invariably
heard
in
committees
from
time
to
time,
he
as
ready for the question?
you
be
been
of
of
The
in
Chair
morning.
the
desires
Executive
new
to-morrow
leave
to
the
Many
morning,
that
Marlborough-Bleinheim
the council will
lie present
Hotel.
to
I
of
council
the
meeting has'
the East Solarium
that
hope
was
program
the
reason
123.]
announcement.
an
according
the members
of
for
and
make
to
Council
changed to be held at 8 o'clock this evening in
the
his judgment.
in
held
desire
is carried.
It
Goebel:
meeting
ap¬
appoint these
to
deem wise
may
to
these various
expenses—be
own
The
The
motion.
the
appointing
their
pay
President
President.
Mr,
you,
proved, and that the incoming President be authorized
Are
Federal Legislation
on
deems it neces¬
his judgment he
sary.
It.
139
SECTION.
of
is
member
every
and be prepared to stay until all business
transacted.
The Chair also wants to
Here is
is
in
this
recommended to
regard to banks at the military
for
men,
some
decided not
taken
which
reason
have any
to
I do
It
cantonments.
Bankers
gentle¬
seems,
ting
is
It
not
to
at the
motion
tions.
their
would
It
has
ready for
savings,
be
this
and
moved
been
that
seconded
own
committee
the
to
this
that
be
Are
done.
have
He
four
referendum
ance
"
A
special
a
a
Our constitution says
business,
of
order
making this
and
entitled f * Committee
Convention
the
General
the
Committee
is
which
under
discharged,"
lie
this
take
shall
action
order
You
etc.
morning
R.
S.
in
in
Missouri.
in
for
Goebel
has
It
:
been
to
a
six
[We print
and
this
that
seconded
be
Membership.
Are
has
one
after all
for
ready
yoiu
Illinois
in
months
condition
speak
to
and
Carl
gives
it
question?
the
The
finish
Mr,
I
that
that
of
Members
great pleasure
very
to
Democracy"
distinguished
I
because
matchless
to 106.]
105
pages
on
the
the
banker,
Ilirsch.
Mr. President,
(Chairman of the Commission):
the'American
of in¬
the pleasure
splendid
that
mentioned
speaker
have
now
American,
commission—Joe
Joseph Hirsch,
the
Soldiers
" Civic
the
on
me
the people
Vrooman.
glad
am
Commission,
you
of
leader
wonder¬
of
food products are
by Hon. Carl Vrooman
Goebel:
to
has done a
attention
morning
this
us
He was
far as
as
sense
the average,
Westerner,
he
and
the
drawing
actual
is managed
only good
are
than
more
not a
something like
that
the few farms
of
which
produce no
Vrooman's address
Mr.
He gives his time
farm of
a
Soldiers in the War for
Agricultural
great
special order for Friday morning under the head of Committees
a
is
the
the Hon.
you
President
our
troducing
moved
solve
who is going to address
Agriculture.
who
man
Democracy ";
"Civic
order on Friday
people, and.
living by farming and lie is
a
a
which
to
will
He
War
the
introduce
move.
so
has
His farm is
States
desires to
recommended by the Council
as
part of the special
a
That
it comes to solving'
American
the
young man
a
principles,
last
the
in
Committee Membership.
I
Committee
and
this
make
Hawes, St. Louis:
President
made
consider it
and
up
order to
Committee and
on
appeal
times' during
several
to you that of course he is a
want to say
the session of
be taken, until
If the Convention
a
how you imuoy
the men who serve it.
Friday morning,
will find on
Committee-memberships.
matter
is
motion
and
before
Secretary of
and
•
Committees
stated
have
optimist when
an
up
which
acres,
concerned.
Committee
and
at
shall be placed on the annual program
Memberships '
come
scientific
to
of the United
committee of the con¬
committee of the Council.
committee,
vention, in place of
farmer.
work
ful
to the continuation of the insur¬
in
am
and you have
and I want to
insurance.
the resolution in regard
comes
I
as
always
this morning
us
principles,
also
.born
Now.
will
tbat
thousand
according
I
on
States,
am
the Assistant
theoretical
you
I
I
speaker.
a
iudulge in that pastime of conversation.
to
is peculiarly fortunate in
why
with
is
farming
referendum
by
especially the speakers;
tiie Government, but he makes
to
resolu¬
on
to
occupied
is
not indulge
please
balcony,
conversing with each other,
are
United
the
reason
problem
us.
Secretary
the
the
right.
We
is carried.
The motion
question?
the
refer
to
to their
funds home
it
soldiers
the
tbat
in
platform
audience and
Convention,
one
any
vicinity have
the
so
is
of War to
desire to consider this resolution,
Now, if you
order
in
in
there,
their
remit
or
banks
simply requests
resolution
decision.
his
the
bank in
a
to the delegates on the
make another appeal
guests
the
this morning not
you
America,
re¬
there and get¬
bank going in
one
Almost .invariably
this
and
reconsider
when
idea while you
any
to
The matter was
informally
Association
any
together and put
go
might deposit
people,
a
question of
a
monopoly.
a
offered
honored
our
the entire
the Secretary of War has
know,
not
not
quest of some two hundred banks in the neighborhood of these canton¬
ments.
to
great believer in one at a time when it comes to talking;
body by the Council, and it
banks at these cantonments.
by the American
up
floor,
•
v'
resolution
a
cantonments.
military
at
conversation
'..
'•
1
•
banks
.
.
Association.
Bankers
Ayes have it and the motion is carried.
j
Now,
business.
I
of
order
have only
we
want
two
to
business,
that
Secretary of the
the
will
before I
to you gentlemen,
say
that
and
reports,
more
up
Report of Agricultural Commission
call for the next
and the
Treasffry
Secretary of Agriculture will speak here tomorrow morning.
[The
Asst.
125
The Sec¬
audience that
of
also
I
to
want
do not stay up
we
gave
to
say
unless
you
sldep,
much
needing
are
time tomorrow morning.
on
say
to you.
You will now hear the
the
work
I
year,
of
Report of Committee
State Legislation
on
[This
report
Thos.
B,
leave
to
is printed
Payton":
few
a
E.
that Committee,
the Chairman of
of
and
ago,
requested
the
present
to
me
of
Hawes, St. Louis:
I
Will
placed
Shepherd, of
Idaho
Goebel
President
The motion
:
President Goebel:
Mr.
McKee
H.
H.
I
carried.
The
mission
members present,
Secretary
and I will call on
to that suggestion.
agree
is agreeable to
That
Goebel:
is
more
if he will
tomorrow,
McKee:
Chairman
want
some
announce¬
ment.
Farnswortii:
five o'clock
this
You pass down
there
is
where
the
There
in
the
the outside corridor
meeting
a
The General
afternoon
which
room
been
has
some
confusion
not wearing badges.
of
thousand
transient
Those visitors have
and
if
those
he
no
room
at
certain
*o
that
Also
side of the
nothing to do except wrilk
without
in
the
badges
adjourned
until
about
want
until
tc
have
call
to
to
.ought
•
.
tomorrow
Now,
please
wear
to put on
their
fine
morning.
I
am
not
It
would
pay
going to tell
Con¬
the
exhibit
the
on
i
you
we
to
will
stand
stay
here
will
why but it
you
tion.
Hence
commission
SESSION
Friday,
President Goebel called
the
Atlantic
Goebel:
Rev.
City,
President
oh
2Sth,
and
and
of
who
have
Grate-
who has been
Tobin,
Mr.
while
this com¬
Secretary
Farns¬
the Associa¬
for the help of every
banker who
sound,
a
work,
for
our
my
the
for
take
a
action
is
on
a
this
at
year.
balance
in
that
the
of the
for
to-day
has become
National
Defense
has al¬
so
im¬
that
you
*
This
commission
Convention
will come
to
up
and
the, Conven¬
of
continue
in
the
the
regular
Committees and Committeeships.
to move toward
the balance of
be
balcony
will
morning
this
the center.
morning's ses-
also
suspended,
session,
are
welcome
to
that
take
the floor.
McAdoo will begin his speech at.11:30.
matter
is
the full measure? of. your sup¬
to ask you gentlemen
announce
unoccupied seats on
is
Commission
ensuing
reservations
the
friends, which
Under the rules this report will be received
this afternoon,
going
work which
a
understanding be-
better
a
which
but
program
it,
in
engages
and
of yesterday
that
we
In the meantime
could not give
prominence
to,
Secretary's Report.
going to read you his report, but at the end of his tenth
year of service to the Association,
I want him to say a few words
to you at the present time, Colouel Farnsworth.
that
1917.
it
is
ought to
have,
and that was
the General
not
Goebel, President, In the chair.
President
while
September
will
it
for
am
the
bion,
and
the individual members of this organiza¬
relationship
the
Agricultural
desire to
guests
the
morning.
I
Now,
He
W.
in
order of business
also
1913,
in
chairman
as
tribute to
the other officers of
and
their customers;
Goebel:
The
Secretary
P.
friend.
my
President Goebel
.
there
SECOND DAY'S
to
give.it from patriotic reasons,
to
filed.
I
member
a
Arkansas,
faithful service,
such
ITinsch
every
economically
factor
a
President
*
,
We stand adjourned until tomorrow
and
public
this
pay
port,.
getting into
the
been
year.
been
of
Presi¬
as
trained experience in this world.
due to
are
closer
ways
portant
building, there
One more announcement and then
:
afternoon.
stay.
in
attention
the
Wheeler,
R.
arid
chairman of their Agri¬
as
I want to appeal once again
to
a
bankers and
down the board¬
and
in this
company
difficulty
no
your
room.
tomorrow
up
allowed
were
of
about
and to you,
tween
seasons
building for the members.
will
they
I
President'Goebel
pay you
benefit
bringing
those who attend
to
or¬
past
the work of your Agricultural Commission;1 a work which is of
material
is
That
Atlantic City has one hundred and
visitors
badges, and please tell the ladies of the
badges,
vention.
in
straight through
Hippodrome.
today in regard .to
the Convention
would
the
Nominating Committee meets this afternoon".
fifty
walk
tion,
side right
call
want
brought
conclusion
In
association,
the Hippodrome.
that
I
wheel-horse,
#tate
Meeting Room of
on
they
has
Committee meets
Nominating
.T.
rendered distinguished service
Idaho,
Vice-President
and
tion.
Secretary
your
veritable
wortii
the
organization
its
more
service'as 'chair¬
Powell,
C.
likewise served
have
ful acknowledgements
a
make
to
B.
of
your
who have been
men
has
but
ever, since
is
of
during
Committee,
Association,
Missouri;
of
given you the benefit of tried,
,
me.
wants
which
which
distinguished
Agricultural
want
of your Agricultural
committee
of success
measure
rendered
Bankers
committee.
_
the work
I
and as presidents of their state associations,
Committee,
Mr.
on
pages
on
more
there is no part
Agricultural Committee—Mr.
Commission
Sams, of Ohio,
Association
that it is because of the
Bankers
Gordgon,
the
that it be received and
move
printed
word
judgment,
permanent
a
any
only
not
Agricultural
cultural
file.
at
has
Wisconsin
the
this
Owen
is
just one
my
Bankers
made
had
the
Wisconsin
is
at large than
be
bave
with me on
the
Messrs.
I will ask leave to file it.
Report, and accordingly
It.
Clarabut,
moments
of
125.]
page
on
Mr.
American
should
If we
Wisconsin,
man
dent
had
the
It
want you to know
associated
There
:
There is no work in
of
ganization.
report of the Committee on State Legislation.
Commission
Agricultural
(continuing)
importance to the country
Commission.
too late tonight, because I am going to call the meeting
promptly to order
Hirsch
of
to the speakers today.
that
you
the
127.]
to
great Government, and I hope and trust that we will give him the same
kind
of
report
to
Joseph
retary of the Treasury is at the head of the Finance Department of this
'
Federal
the meeting to order shortly
The
Thomas
gives
the
Goebel:
J.
Cross,
will
be
Pastor,
In
after 9:30 A.
order.
Chelsea
We will
Baptist
M.
arise
Church,
Invocation.
We
Legislation by
Convention
will
its
now
Report of the General Secretary by Col. Fred E. Farnsworth
[Col.
The
have
chairman,
the
II.
report
II.
of the Committee
McKee.
Fellow
Farnsworth's report will he foynd on pages 118 to 121.]
Secretary,
continuing:
Mr. President, Ladies
General
Bankers.—I
am
in
the
habit of
obeying
posed yesterday that this order of business be
orders.
I
had
and
pro¬
indefinitely postponed;
,
BANKERS'
140
hut
President
the
told
me
to any something
jieeted
few
a
about
moments
to do
pleasure
there
was
in
the
in
in
the
he
bilities of this office cannot be effectively
ex-,
ten years.
past
administration
which
port,
great deal'of
very
for the great
claim credit
Association
change
a
of
work of the
took
place
in
citizens
of
formed;
but
have
given representation on our council.
while i
not too modest to acknowledge
am
Executive Officer of
with
the
and
Association,
the great
progress,
ten years,
I
Committees
Administrative
the
on
Association the greatest
succeeded
the
Constitution,
phlet
is
Secretary
is emliodied
report
expected
received
It has
council, was unwieldly and
I
so;
the
of
States
believe
Union,
is
period,
especially during
and
With
year.
good
a
regard
received
we
(Here
received 227 new members
we
the
amid .great
ing
the
for
past
the
year
for
the'
in
appears
since
memliers
Treasurer,
17,431."
has
the
of
Its
the
The
Will
all
officers
the
of
has been
time
with the
He had met
have -had
satisfactory.
held
in
discretion
the
gives
been
qualities
in
to
is
him
and
McAdoo:
O.
Association,
repeat
here
for the
I
what
Goobel,
said
in
I did there of my
as
this adopted
of
conduct and
and
I would
Mr.
sterling
his
the United
that
America,' have set
some
Goebel
who claim
men
with his
has
referred
an
of
fo
Loan.
should
1
like
testify
to
States.
A
man
example to
men
-whose
splendid
of native birth*
American
ciCzeys;
the confidence
which
the
American
Con¬
by unanimous vote has reposed in the Secretary of the Treasury.
tribute
to
who
the
man
in
1913,
I
the
Democrat,
it
is
American
Republican,
a
great
my
tribute
have held that office,
people,
ever
it
as
a
matter
no
because
vc
held that great
knowledge of history, that no Secretary of
United
the
take
States
to
weighted
the
as
has
been
office,
and
faithless
I
believe
his
to
no
trust.
man
it is with the most impressive
could
powers
to
the
of his mind
American
and of his
soul,
put upon him.
It
you
is
a
and
the
last year of
inee?
you
to express to you
sistance the American
in
now
\
final
A
when
Committee
three
speci¬
Association through
report
been with¬
has
the benefit of any
pleased to state that several
are
which
of
statement
a
Your
submitted
are
for
profit
reconcilement of
of
of
as
loss
and
for
account
the net worth
executive
the
by
part
tlie suggestion
,
or
sur¬
the
of
the
committee
ago,
preliminary report
made to
sections
of
the
exhaustive investi¬
an
the various lines of business*
used ,in
now
executive council
the
committee has conducted
your
which
principles
with
country,
as
conclusion
the
business;
that
obtain
the
third
lines.
is
for
In
the
individual ; the
or
corporation
compiling
business under consideration,
or
the questions as brief and
Committee
Your
numbers
has
show
to
as
of
terest
many
merit.
small
The
in
engaged
forms
these
has
it
others
have
caused
been
found
the
committee
merit.
committee
The
requirements vary
meet
be
t<>
the
of
the
to
in¬
the
suggestions
extraordinary
adopted*.
needs
greatly,
so
of
will
realize
that
This
ideas
of
others which
forms
the
of
contain
will
this country,, where local conditions
but it is their belief that the forms'
thousands
heeds
local
meet
fully
number
a
of
members
our
make
them
that
and
desirable
to
minor
practically,
bank in the association.
every
If
of
large
such
enlisted
had
some
eliminate
to
meet the need of every bank in
will
work
while
to reject* suggestions coming from
and
considerable
changes
the
and,
predominating idea coming from banks both large and
one
has
own,
that
in
suggestions
voluntary
conclusively
and at the same fiine to
possible.
as
for brevity and simplicity in the forms to be
was
demand
simple
received
-of your members,
impracticable,
were
not
practically
cover
intelligent insight into the financial and other conditions of
an
the individual
make
and
examined,
we
forms have been pre¬
the aim of the committee to elicit all the infonnation necessary to
been
.
arul
a
Cer--
engaged in the mercantile or manu¬
manufacturing
or
forms
the
sufficient to
are
is for the farmer
individual
or
in
embodied
were
basis, three different
these forms
first of
•secoiul is for the firm
mercantile
a
committee believes
your
The
cases.
,
result
the
of
work
our
is
adopted
this
by
Association
it
is
the
suggestion of the committee that samples of the forms be printed and
placed
furnished
Your
it
file
on
to
the
General
Secretary's office in
members Who desire them for "copy."
New
committee believing it has now accomplished the
formed
was
President
of
report
in
asks
to
Goebel:
be
to
lie
for which
discharged.
Gentlemen,
committee.
this
York,
end
What
you
is
have
your
heard
the
pleasure?
most
Unless
excellent
there
is
-Objection, the report will be received with approyal anil the committee
great pleasure to
in person,
all
.
to meet and discharge creditably
people and to himself great responsibilities they have
labors
its
special mention
recommended
was
in
with these ideas
respon¬
sibility, and failed to discharge that with all his patriotism and all the
to make
condensed
fundamental
From the days of the immortal Hamilton until
speak from
of
J
or'Otherwise
history of tlie United States who has
can
Treasury
Ami
personal tribute;
office created by the
great
lias dishonored it.
post,
the
the
incumbent,
forms
improved
year," and "
different
in
its
not
a
will
which they have adopted and included
received
been
and
" A
months
pared
Kansas
Missouri—Or in
when I had the pleasure
fo have been born
as
offered, and they
and,
»
I should like
splendid qualities of patriotism.
that, gentlemen,
Credit Forms
Committee):
-
which
facturing
I
take
We
universal standardization of forms is practically an impossibility.
Ameri¬
the
gress,
did
order,
that the Committee might have
tain
the generous introduction of
town,
own
in
be
op
the
Bulletin.
Journal
time
have
stated
and
-
pleasure to
a
admiration of the sturdy and virile patriotism
citizen of
lie infected
could
I
unswerving integrity of character, his independent courage
his love for
will
completed
gation into the different forms
States Treasury.
Gentlemen
Kansas- City,
the first Liberty
speaking there on
here
admire
cordiality of this reception.
City, Kansas, rather—Mr. Goebel's
(Chairman of
practically
the
this
items:
some
Ladies and Gentlemen.—It'would be difficult
for nte to express to you my gratitude for
President and
personally,
is certainly
United
of the
Mr,
of
past fiscal
As
preside at the
because,
to
come
And it
Secretary McAdoo
Wm.
1017.
Clearing House Section.
leaves entirely to,
morning to
speak,
have
.
submitted to the membership of the
were
amended
plus,"
people in this man you will
this
going to
than I can tell you.
you
Hon.
Bankers
with
touch
more
introduce
this man
the
the
free people to one of its citizens;
peculiar satisfaction
me
which
convention
The
Sharer
Forms
until
two
handling of these great sums of money.
it
*
M., September 28,
The committee desires
is possible.
by Democrats and Republicans, which
greatest tribute ever paid by a
of
talk
also some
Association to be attended to this
M.
P.
Goebel:
P.
suggestions
is history making, or
that
the confidence of the American
and
meeting in
to
P.
constructive criticism
•
than any man in the history of the world; and
and
your
until 2
medium
the
expend more money than any man in the history of the world;
voted for
W.
forms
men
line of human endeavor are so
things hitherto done in any
wisdom
The
Hillis will
There is
On."
Figlit
Must
this report.
is epochal,
that
The
can
We
Do not forget the
Dwight
Newell
Report of tlie Committee on Credit Forms.
Credit
on
lias taken into consideration
American spirit and
a
the
Mr;
Secretary of the Treasury in the past year has, and in this year
have
".Why
Dr.
Report of Committee
Association
this
Department
Treasury
to show
his
on
the first of September, that
on
was
only have to follow tlie legislation enacted by both houses of Congress,
and
this afternoon.
for
subject of
President
fortunate indeed in the last year In its contact
borrow more money
will
and
Please be seated gentlemen.
Goebkl;
speaker
the
$1*0.075.
know
you
as
than
far surpassed by the present that no comparison
he
Treasury appears
the
of the Secretary of
04 to 101.1
receive
Department, and I would say that at the head of
there is a man who is a broad minded. American, and
living in
are
"rather
them
use
"Mem¬
the general officers:
suggestion made by your officers.
We
I
However,
glasses.
to
resort
have to do it for
you
become artificial in the last
to
niemiiership, net
Treasury
broad minded
a
lust,,
25th
the
very
conference
every
speech
a
I am afraid to trust
aiid
here,
Yon may suffer but
to
full
in
Dur¬
short time longer.
a
received In the same period last year.
Ladies and gentlemen, the American Bapkers As¬
been
Department
in
us
to you
AFTERNOON SESSION.
That is over one hundred more than what
sent, out
are
President:
sociation
head
had
have
address
Adjourned
Report of the first of September, or 100 new
the first of September.
The receipts for dues from the
including
drafts
every
read
to say,
I hope you will forgive me for having
may impose upon your patience for
extremely important business of the
Annual
is about $20,000 more
that
full.
2
bership to-night,
with
regret
write for this occasion because there are
also that 1 had
find
.
The
I
must,
the next few moments,
Increased
has
Association
Just received this telegram from
have
Our
Red
your
introspection than I do for examination of my fellow men.
President
and
arrived
1,328.
1
for
great
ap¬
the. Secretary's address,
Treasury,
time
announced
the
was
('resident has asked me to continue
the
the
but
afternoon.
11 :,'{(>
there, are many who expect to come In during
as
Mercy,
money
and I hope I
it in
I
years—I
pages
on
of
my. appre¬
Secretary of the Treasury
China.
McAdoo
Secretary
to express
only
should express exactly
this speech,
[The
plause).
As
ever
/'The Second Liberty Loan," by William G. McAdoo,
application which we put through for a hank and trust
Shanghai,
in
company
she has
rep¬
This has been followed by a number of other
large increase in membership, and before I left New York
au
I
gentlemen,
country.
more
during the past year.
states with a
not
the in¬
to
1
through the activities of several
for instance,
the State of Iowa,
states,
the past
of the council,
the membePs
in
crease
having
as
respond to
pregnant for fight, for justice,
monumental Fund of
contributed your
great
You
things I
few
council.
state of our
that
sufficient to read
proud of, the increase in membership during this
We are particularly
will
America more than
advantage of, this occasion
Fund.
now,
read
your
our
the various
is maintained in
largeiy increased by
very
that
sources,
take
I have felt impelled to
some
to
will comprise 108
some
they
splendid work the American Bankers Association did in
myself to any flights of oratory.
the published pam¬
My experience has been that that
too large.
interest which
the
from each
resentation
from
that
know
be per¬
cannot
rendering another great and creditable service to your country.
which
pre¬
The new council which will be or¬
criticism
some
to
tests
American people,
services; and you had the opportunity there and you discharged it well
of
this
report of the
full
a
in
this evening, as hits been already announced,
not
during
I
to make
provide
War
Cross
great
throughout the universe.
to
the
helping "to
up
could have
man
one
accomplished
been
the Convention once a year,
to
which has l>een distributed.
members.
is
has
General
the
Association's activities. This
ganized
me
the
animating all of the
patriotism
these
past history of the world,
also
of
And
and submit
pare
what
backed
had
.
.
Under
which
wish
I
ciation
to make the American Bankers
organization on earth, no
in .accomplishing
period.
past
of
that
thein,
they intend
that
the
for democracy
and able men on the Coun¬
Treasurer,
as
these efforts during these past years,
in
in. the
of the Association
progress
Association, aud
in
been
to do
spirit
with
contact
of everyone,
cooperation
the
know from iny experience of the
I
in
come
call ;
the
that perhaps as the
have had something
may
but if we bad not had able men as Presidents, and Vice-Presi¬
dents of tlte
cil
the
sup¬
do the impossible; but without that
we can
States,
United
the
with
when
exalted
that
and
support,
At¬
nation
with the highest,
reorganization of the council, whereby the entire country was
a
Now,
American
the
humblest
Ten years ago,
discharged without your
without the supjwrt of every American citizen, regardless of
Because we face a time in the History
or
class, creed or conditions.
sex,
When 1 say that I mean in the officers of the Association
lantic City.
and
that I
not
so,
Bankers
would
the progress of the Association lu the
past ten years, and I cuu assure you it gives me a
American
I
that
ago
CONVENTION.
Bankers
stress and
in this Convention and
my
have given
trial and
deep appreciation
to
of
to
of
thank
tlie as¬
the Treasury Department
InTrd
work.
The
responsi¬
discharged,
it
is
senting
as
requested, with thanks.
The Chair, hearing no objection,
ordered.
so
Next In
order is
country
the
banks.
Report of the Committee of Twenty-five,
repre¬
BANKING
Mr.
Thomas
absence
of
this
read
not
to
that
that
a
I
of
this
by
may
say,
spirit
is
matter
I
small
the
to
has been
Is there
A
Mr.
Roland,
ceived
Goebel:
Mr.
but the
of Com¬
Convention
findings contained in it will
mittees
report,
have to come up under the order
The
the
adopt
may
Roland
Then
:
make
I
that
the
that
sir,
motion,
report
(The motion
is
All
of
favor
in
motion
the
will
op¬
aye;
say
Committee Mem¬
and
be Committees
will
business
of
insurance referendum
bership, and under this beading will come up the
F.
G.
of
The
:
the
re¬
pertaining to the referendum on insur¬
that the gentleman just on the floor
recommendation of the Executive Council in that mat¬
the Chair understands
that
the
agreed
Committee
Insurance
Regarding
kindly
somebody
Will
Lampert:
Adopted.
state
the* recommenda¬
what
mittee
be
creased
Council recommend
and If made
continued
factory
burglary,
compatible
Council
1918, and to be first approved by the Execu¬
before
the
understand
to members who may
might explain
Chair I
Committee
was
(Cries
to
Oliver
been
for
J.
that this matter be deferred
this
would
I
an
as
move,
until after consideration lias
and therefore rules that the amendment
pro¬
be out of order.
the sequence of this matter may be clearly
in order that
time,
brief statement, if I may,
I would dike to make a
Moelenrah:
this
the question of insurance rates has been a
Association for tbe last fifteen years.
We
protective department which spends annually $60,000.
Re-
mind, let me state that
sustain
a
of
cause
of
take
to
country,
Council
and
received
to
of
ballot.
of
referendum
a
its
of
Goebel:
have
The United
membership
upon
important
gill
the
this
that
submit
1
Eastern
part
is
representative "Convention,
a
and you gentlemen
of the country,
duty to perform in response to this
a
should
be
given
point
this
(At
by
tion
Executive Council
the
marks?
the
principle
(Cries
of
President,
seconded,
sent
to
I
understand
this Conven¬
there-any further re¬
Are
be adopted.
II.
-1
Goebel:
commits the Association
insurance bureau?
Bean :
Frank
C.
the
M.
Birmingham,
This
'is
take
a
any
careful
sections
addition
F. Holmes,
R.
I.;
Charles R.
of Boston, Mass.;
Blymi,
of Phila¬
J. Kirtland Jackson,
definite
of
tremendous
stand
consideration
of the country.
another
for
commissions of the
and
year
shall
who
serve
...
Mr
Representing the old insurance committee,
Mr.-
Mo.I second that motion with the pro¬
the same members he continued.
is on the motion
The question
Goebel:
President
amendment.
1 accept the
Parker :
insurance committee another year and
shall
committee
Committee of
It.
S.
recommendation
Goebel
President
the
Special Convention Committee be appointed by
(Seconded.)
The
:
of Twenty-Five,
Committee
shall
be
reported
duties
whose
shall he known as the Committee of
The motion is carried.
ready for the question?
Are' you
President, I move you, sir, that the Agricultural
Mr.
Hawes:
s.
Convention, and that in place of
by the
Committee of Twenty-Five it
Five.
It.
like to move you, sir, that the
Twenty-Five be indorsed by the
in its report recommended that the membership
Committee be reduced to Five.
The motion is that this recom¬
mendation.
the
of
familiar with
are
you
I would
Committee
President of Five.
the
motion will say
in favor of the
All
it.
have it, and the motion is carried.
Louis.:
the
of
and that a
Convention,
of
ayes
to continue the
that the same gentlemen now on
Twenty:Five Reduced to Committee of Five.
St.
Hawes,
on
serve
The
opposed, no.
aye;
(jjonmiission be continued, and that the members be appointed
by the
incoming President.
Mr.
Me.':
Portland,
Bean,
Seconded.
motion, that the
and its member¬
ship lie named by the 'incoming President!
Are you ready for this
question?
The motion is carried.
Any other*business?.
President Goebel:
Gentlemen, you have heard the
,
he continued another year,
Commission
Agricultural
Farnsworth:
.Secretary
of the invitations for
matter
Chicago To
James B.
that
think
1
is
The
ail.
is
next
the
the next Convention.
importance,
with respect to It,
BE the Place
Fokuan, Chicago,
Chairman
Next Convention.
for
me
to
Association
of
the
and,
if
we
are
the most
extend
to
hold
to
cordial
Convention
its
universe,
for next
unsurpassed
but
no
one
can
railroad" facilities
make
in Chicago.
Its geographical locatioji and
Chicago the most accessible
the country for the large majority of the
Association.
As the second-city in the country in
iu
membership of this
size, it has within
ample facilities for the accommodation of a lurge
its borders
convention
larger you make your Convention, the better we will like it.
experienced Chicago's hospitality on similar occasions before,
the
and
year
of being the
controvert the claim of Chicago
hub qf the United .States.
being the
invitation to the American
city lias entered a prior claim to the title
A rival Eastern
hub
111.,. President First National Bank:
Mr.
Associated Banks of Chicago have
Gentlemen.—The
and
authorized
und
in
going
it should be given tbe
all
by bankers of experience and wisdom in
it will again be fully
Providence of God, be brought
conclusion within the next year, we will make the occa¬
strenuous war conditions,
spite of these
demonstrated, and should the war, in the
to
a
victorious
of
one
and
jubilation
Windy City;
will have every reason
we
special care
we
rejoicing.
have
shorn
to trust that He
Atlantic City at this season of the year.
have had in
It, therefore, affords me great
to
Chicago has -the reputation of
but the Lord tempers the wind to the
lamb-like characteristics of bankers as a
class,
will have your needs under
and that the weather will be equal to the excellent quality
knowing the
and
Jamb
this
pleasure, and I assume it a great honor,
the Chicago Banks, of extending
representing
privilege,
invitation to hold your convention in the
Windy City by the Lakes, where I can assure you of a most hearty
to
you
and
the
from
most
cordial
hospitable welcome.
President
Ala.
matter
and Committee Membership,
committees and
several
Hawes, of St. Louis,
Mr.
viso that
Committee be
of five representative
of Providence,
Nichols,
Pa.;
delphia,
most
that the Referendum
bankers from various
of the country, namely, James J. Fagan, of San Francisco, Cal.;
by
enlarged
jarts
sir,
All in favor of
The ayes have it, and
President, I move it be continued another year.
being the
Question!)
Would it lie in order, Mr.
change in the composition of that committee?
The Chair does not rule in advance, sir, upon
would move,
will
to adopt the original recom¬
the motion
ayeopposed, no.
extended
be
the amendment
for the question on that?
say
the
Parker:
G.
II.
which
I
shall
of
The noes seem to have it-—the noes
adopted.
whether
them.
sion
matter.
Mr.
on
Are you ready
means
Mr.
'
Mr. President, I would like to in¬
Bean, of Portland, Me.:
to move any
favor
in
All
motion that lias been made
the Executive Council for
You have
this recommendation
Question!
Question!
President
any
to
the chair).
and
moved
recommendation
of establishing an
recurs
is
too,
is lost.
amendment
now
by
approved
Convention.
this
the
amendment
the
If
sir,
Question!)
is on the amendment to the
to
convention
city
Goebel:-Tbe Chair would hold that it would not.
Robert
Mr.
here to-day have
,
President
the
Y.:
proposition on the table,
the original
Question!
The next order of business Is Committees
upon
N.
Plains,
would,
it
think
I
lays
recommendation is
.its
•
quire if our adoption of
of
been
Wilcox, of'Baltimore, Md.:
Mr.
to
the
that
absence,
my
has
in
referendum, and I insist that it
Goebel resumed
President
held
although
it deserves.
attention
Goebel : ' It
President
during
tbe
the committee.
lay the amendment on
to
move
if
amendment,
the
*
recommendation
question
Bankers
non-committal.
were
that
States Chamber of
The result of the referendum ballot shows that over 5,060
asked for some such organization at once; 600 voted noi and
1,200
I
White
of
those opposed Avill say no.
and
it
it
Question!
submission
throughout the
that has ever been
response
questions.
banks
Would the amendment that has
the incoming President from
Association
the
the largest
referendum
such, a
of
members
the
the
Committee was appointed
Referendum
special
a
result was
the
takes
Commerce
Committee.
Protective
ballot
a
Insurance should have been reflected by
Now, at the spring meeting
tbe rates of
the
Executive
the
this is of paramount interest to every mem¬
that expenditure
because
work
this
in
question
burning
ber,
the
resolution?
table
the
say aye;
to
time,
particular
would
Mr.
Va.:
continue the present Insurance Committee.
The Chair understands that this is a special order
Chairman:
posed
Richmond,
of
Sands,
to the motion
given
The
in
Executive Council.
the
regularly.
amendment,
at
meeting of
spring
Mr.
and
Chair understands
The
Cromwell,
of
adopt
special
a
That committee re¬
ported to the Executive Council here on Monday last.
This matter
came up yesterday and was
referred as a special order for consideration
at 2
o'clock to-day, but apparently because of the small attendance
just at 2 o'clock the President took up other business.
It conies up
the
now
ap¬
hope
Would not the
the table of this amendment also carry with it the tabling of
the
on
this report gets here.
The
committee appointed
by wbich
the method
It,
Referendum
Insurance
at
I
now.
>
David
original
the
submitted to the next annual convention.
being
consent of the
the
to
be desirable for securing the most
may
as
the Executive Committee in
With
committee be authorized
the
that
satis¬
fidelity and surety insurance at such cost as may be
with its recommendation to the spring meeting of
plan
such a
Cohunittee and be in¬
Presi¬
the outgoing and the incoming
recommends
further
and
Convention
a
by adding to its number
prepare
not
filed; and
that the Insurance Referendum Com¬
That the report be received and
Farnsworth:
Executive
tive
Md.:
of Minnesota:
Darling,
Mb.
which
Secretary
found
and
here
substituting the five gentlemen who have lieen named
Goebel:
that recommendation will
was?
dents,
with no ulterior motive
work should he either
its
and
Convention
outgoing
the
table.
the
the
appointed
committee
would simply add five additional members to
adopted,
The
to.
Recommendation
Mr.
upon
to in¬
I want
amendment?
mendation.
tion
special
a
the Association,
of
this
by
remove
The question
is
Convention
the
before
question
Executive Council
the
and
be
ter
was
Newcomer, or Baltimore,
offered
the
this point took the chair in the temporary
Goebel).
President
of
Chairman
moved
which
word more.
just a
say
prevail.
not
this committee by
laid
seconded).
was
(Vice-President Hinsch at
ance,
will
amendment
Mr.
to
the Executive Council, has done its work with
the good
disapproval
President
and its recommendations adopted.
(This motion
absence
Coun¬
the report of the Executive
move that
I
IIowland :
cil be accepted
port
gentlemen,
ready for tbe question,
you
desire
of any member of it,
part
laying on
matter.
The
I
:
committee,
single to
or
Mr.
carried.
order
next
Mr.
the
President
seconded).
was
Goebel:
It
no.
The
be
Are
...
President
posed,
eye
on
in
adopted,
discussion until
to
open
it.
second
special purpose by
been
Committee Membership.
and
this
that
a
proval
findings therein contained adopted.
its
and
President
I
Goebel:
Moklenpaii
an
report be re¬
the
that
I move
Pa.:
not
is
amendment?
for
123.]
committee appears on pages 122 to
Lackawanna,
of
amendment
second to tbe amendment?
a
Delegate:
sist
[The report of this
The
seconded.
Presidet
Mr.
Report of the Committee of Twenty-Five
Goebel;
President
it
this
be most helpful.
solution of the question will
proper
with a full realiza¬
scattered institutions
but
of selfishness,
vital
so
to
report is
that this
of preface,
way
requested
been
have
regrettable
the
In
Va.:
committee,
the
any
in
you
Richmond.
McAdaxis,
chairman
report.
given
tion
D.
the
141
SECTION.
Goebel :
The
Secretary
will read
some
communications
other cities.
Secretary
tion—I
did
emphasized
Farnsworth:
not
hear
all
I simply want to present to the
that Mr.
Forgan said—that
Conven¬
his invitation is
by all of the commercial bodies of Chicago.
The Chicago
BANKERS'
142
1
Association
and
I
of
parts
hut
of
have
the
these
if
country
the Association
take
Now,
to
have here,
suggestion and
in various
we
can
cities
their
in
meet
the
entire
I
and
of
Invitations,
Mr.
would
you
It.
do,
Hawes, St. Louis:
which
affords
has often
been
great pleasure
me
expression
an
to the
Mr.
President coining from St.
accused
jealous of the
as
Windy City,
Council
it
that
would
wise
it
deem
Convention
to
President
those in
Mb.
Goebel
favor
The next
:
the
heard
have
you
The Ayes have it.
motion.
the
Joseph
Your
business.
H.
All
Carried.
.(Laughter.)
Hibsch:
Greek
Merchants-Mechanics
ask
Gentlemen,
Aye.
say
unanimous
On
First
behalf
of
National
consent
to
D.
of
Adopted
Favor
in
ment
Considerate
of
Legislative
increase
their
facilities
to
tbe
meet
made upon
Merchants-Mechanics
Union
Trust
Co.,
Are. there
resolutions?
The
President Goebel:
occurs
is
Mr.
I
Mb.
of
local
George,
the
Bankers
Any remarks?
that
of
minute
Mr.
Convention
committee
a
It
of
consent
of
adopted
the
by
various
will
and
we
President
resolution
our
was
time,
your
The report which
S.
R.
of
consolidation
Associations begs
of
of
ask
The
Convention
upon
It
is
Association,
I
of
is
of
matter
It
To
and
the
the
Illinois
the
the
the
appointment
of
a
other
officers
Association
Bankers
of
the
Associations.
cordial
the
which could
We
State
conferences
with
associations,
your
numerous
various
the
and
state
effort.
in
Your
committee
believes
that
in
the
various
associations
the
and
spending
are
American
Bankers
for
money
the
Associa¬
service,
to members.
It
resources,
ways
by
which
joint
our
efficiency
decreased.
The
Illinois Bankers Association instruct
American
Bankers Association
expenses
of
state
its
mutual
interest to
Gentlemen,
think
I
he
the
committee
that
that
you
thrift
this
action
as
member
out
add
desire
local
the
of
Association
to
of
the
in
attendance
the
at
American
from
one
that it is thrift year,
the
and
begin with bankers associations,
the
Illinois
Bankers
each
Bankers
Association
State,
upon
and
this
we
but
Associa¬
that
a
inter-com-
ntission be appointed!
Mr.
on
Joseph
the
resolution
ciation
Philadelphia:
Goebel:
the
There
Ilinois
also
motion
to
to
lay
lay
on
is
a
Bankers
the committee
motion
I
the
move
this
motion
on
made
the
therein
table,
be
which
the table is not debatable.
The
vote,
Chair is in
has
for
vote
are
in
I
am
the
motion
favor of
do so,
to
table
been
will
do
I
so,
is
seconded.
all those
once
and the
grateful
banks and
con¬
acknowledgment
commer¬
is
made.
Governor Edge and
by
Mayor
Nothing has been neglected
the work
particular appreciation of the
the
in
correspondents,
newspaper
Press
have
handled
the
the
manner
and
news,
which
Associated
for
the
Press,
generous
bankers
to
do,
I
will
considers
patriotic
The bankers
as
with Convention
Wayne, Philadelphia:
had
and
Gentlemen, all those in favor will please rise to
:
Motion carried
Resolutions
have
know
the
talks
what
no
Convention
this
keynote
here.
We
on
of
Its
as
Will
in anybody's
Pledges
rising.
be
whole
the
been
fired
Convention.
with
to just what
in
up
ringing
terms
mind.
Support
to
oh Resolutions asks
Committee
to the
they are going to
such
President
II13
and
Adminis¬
tration.
Your
We
enthusiasm.
think it is
we
adopted
the Committee
what
to
come
have
record
resolution
doubt
We now
they have to do, and
put themselves
think
leave
"
•
unailimous
approval of
lowing:
\
the
fol¬
,
First.
The
American
Bankers
Association,
through
its
Executive
Council, offered its assistance to the Secretary of tbe Treasury in
distributing the war loan bonds of the Government.
This offer was
accepted last May and the machinery of the organization was success¬
fully used iu aid of the Treasury Department and tbe Federal Reserve
Banks.
Second.
of
the
The Bankers
Government
of
for
the
country responded generously to the call
Regardless of their membership in
assistance.
the
Association, they worked faithfully to promote the sale and dis¬
tribution of Liberty Loan Bonds.
Thousands of them served on Liberty
Loan
Committees
Third.
The
and
the
Bankers'
at
the
War
Loan
practical
hands
of
Committees of
demonstration
this
of
Convention.
the
Association.
loyalty
The
requires
no
bankers
of the
failed in the full discharge of their duty to
did not fail last Spring.
They will not fail
this Fall,
They gave their services,
facilities, and earnest support
then.
They will give it again and again.
They realize that success in
war
depends on the people and on no unit of the population is there
country have never yet
the Government.
They
t
greater
or
less responsibility than on any other; but the bankers are
charged with the duty of making" the financial operations of
government successful.
They owe this duty to themselves,
Fourth.
The Second Liberty Loan is impending.
Others will follow.
Success in raising the vast sums of money needed
requires something
more
than good
Intentions.
To assure success we must have action,
specially
a
A
that
and
some
for
more
leadership
can
a
the
here
and
the
decide.
now
Aye.
I
declares
and
his
Reserve
Bankers
Association
all
financial
the
ability
the
bankers
■
be
may
Administration.
Banks.
every
in
with
It
one
It
the
bespeaks
of every
bank
and
Secretary of the Treasury and
pledges
to
Administration
the
the
of the 17,307 members of the American
the
great task of winning the war.
To that
end and purpose the American Bankers Association is hereby dedicated.
President
Goebel:
Those
The
Convention
will
rise
if
they
approve
this
(Motion carried, Convention rising.)
that
see
of
absolutely assured, this Convention
the support of every bank and every banker to
success
banker active cooperation
Federal
resolution.
say
that
unqualified support of
those who want
can
application
•
end
President
every
the
the
and
muster.
To
hope that those who
and
and perhaps the Chair
tabling this resolution will
There
(some for,
going to ask
because it takes time to count.
vote against it will
who
the
to
the
Therefore,
doubt.
want
that
this Asso¬
by
appointed.
against).
to
laid
adopted
the table will indicate
voce
be
seconded
and
Association be
mentioned
favor the motion to lay on
viva
resolution
(Seconded.)
of
and
vote' its
have
the
Wayne,
table.
President
rising
who
Convention memorable.
Annual
City,
by
those
by
pleasure and profit of the visitors and
express
United
commendation
of
would
we
Resolutions that
on
express
made
welcome expressed
to the
press,
Joseph
on
and
that
banks.
should
should
efforts
Atlantic
resolution that
Committee
the newspapers of the country have given to the deliberations and
space
plan
a
recommendation
recommended,
enlarged,
reefmmends
members
won't argue the question
therefore
move
tion
I
work
to
be
their best efforts to have an
consisting of one member from
of cooperation in matters
to use
appointed,
commission
association,
should
committee
,
inter-association
each
same
same
that
our
operating
the
delegates.
the
cooperation
on
Association
same
means
\
that
Appreciation.
Bankers Association,
words of
their feet.
,
and
the
proceedings of the Convention.
•
State
with
Bankers'
American
[bonding companies
all,of
now,
cantonments.
and seconded
and
your
Forty-Third
New Jersey
com¬
this honorable
particular job,—all at the duplicate cost
some plan might be developed
by which a consolidation
in a central control, might add very greatly to
efficiency, and at greatly reduced cost.
Your committee would suggest that the association
urge the American
Bankers Association to have a commission
appointed to undertake
of
cantonments;
follows:
as
of
successful
the
organizations
co¬
take
of
cooperation
would seem
the
different
The second
is
opinion
Bankers
of
make
to
Thanks
of
consideration
unanimous
The
fidelity insurance- alone, it is apparent that great savings
accomplished to the bankers of this country by well-organized
cooperation.
Your committee also believes that iu the apprehension of
tion
of
resolution in regard to
this
the
moved
been
Philadelphia:
of
criminals,
pantonraents for
I move its adoption.
has
be
and
in
is carried.
Wayne,
American
and
won't
by
system
fol¬
great cities and
the
facilities that obtain in
and
boundaries
the
have heard
St. Louis:
Goebel:
It
the
tributed
a
often
can
the
form
services
Bacharach found reflection in concrete form.
the opinion that at the present time the work being
the state associations, and the American Bankers Association,
duplicated; that the cost to the various member banks is much
greater than
it should be,
and efficiency lessened.
Your committee
believes that at the present
time, while the associations are doing a
good work,
there is much that could lie accomplished by a proper
is
You
Resolution
Joseph
of the
adopted
was
that
the
leave to report that after
the secretaries and
done
the
banking facillitles in
Hav\*es,
President
be adopted.
appreciation
Gentlemen—At
and
associations.
.
Cooperation
for
Committee
and
committee
gathered
cantonments
of all
witbin
Goebel:
President
establishment
-
President Goebel
Resolution
Your
of
so that banking facilities within the cantonment boundaries
be provided for the soldiers; and be it
Resolved, That the members of the American Bankers Association,
whose banks are near such cantonments,
united in providing banking
service for the troops. to the end that their funds may be safely held
and transmitted and that habits of saving may be encouraged.
is carried and
the
directed to submit to
were
follows:
as
Fellow-Members:
adoption
may
the
unanimous
Illinois:
but
body is
have been
men
These
banks
cial
consolidation
a
and
the
his decision
consideration
the
have heard the resolution.
you
adoption of it.
operation and
mittee.
to
none.
the resolution be adopted.
move
communication from the Illinois Bankers Association.
William
Illinois
report
President
recommends
of
,
be It
First
adopted.
George of Illinois asks
to present a
the
objections
any
Chair hears
Gentlemen,
the
on
resolution
the
Establishment
Cantonments.
at
Mr.
Mr. Wayne?
Permit
to
Resolved, That the Secretary of War be earnestly requested to ameud
-
Goebel:
Sullivan, Cleveland:
motion
War
of
Resolutions
have need
present for your
President
these
say
transmit
therefore
Detroit,
Mich.
Mb.
will
facilities.
Offered by II. B. Wilcox. Vice-President
National Bank, Baltimore, Md.
Seconded by Frank W. Blair, President
of
to
tenance of
them
figures; therefore be it
;
■
Resolved, That the American Bankers Association, in realization of
the gravity and far-reaching effect of the problems involved, offers the
suggestion to its member's that they cooperate with the most effective
means now existing for collective action for
impressing upon legislative
and regulatory bodies the necessity of
taking under serious consideration
the questions surrounding the railroads of the
country, to the end that
railroad credit may be strengthened and railroad expansion
encouraged
so that the
growing business of the country and the Government, in the
prosecution of the war, shall be provided with adequate transportation
and
resolution
the
pay, have in their possession funds,
money in the ordinary way and otherwise have need
banking facilities for deposit and saving, and
Whereas, In these times when economy and thirft are essential to
success in war and are as applicable in principle and iu practice to the
men
in the army as to those in private life, and
Whereas, The Secretary of War has forbidden the opening and main¬
Whereas, Railroad securities, owned in great volume by financial and
other Institutions which are members of this
Association, are more or
less affected by the general railroad situation now
existing, and the cost
of new capital for railroad
purposes is now reaching almost prohibitive
services
of
of
heavy demands
and
;
the states are
as
and
these soldiers receive
eases,
desire
Whereas, The business Interests of the country are severely suffering
great lack of adequate transportation facilities; and
Wiiebkas, The railroads under present conditions are utterly unable
to
them
Whereas,
Treat¬
from
by the business needs of the country
and
The Ayes have it.
Philadelphia:
on
soldiers.
as
in
men
Railroads.
of
for
diem
per
:
training
resolution.
this
Wayne.
favor
in
Facilities
Whereas, Thousands of
would like to
I
Baltimore,
Bank,
consideration
the
such
Resolution
Secretary
Banking
Committee
lowing
Vice-President
Wilcox,
those
against).
Chicago, 111., and I so move you, sir.
the program is unfinished
on
The Ameri¬
its receipts
the
pay
Commission.
this
on
will
Resolutions ready to report,
on
Asks
*
,
hold the next Convention in
All
some
the committee
Is
it
sir, that the convention convey
to move you,
Executive
association
think that it is only fair,
I
Goebel:
Aye (some for and
Louis as
George's understanding.
already over-appropriated
each
the benefit that this brings, without expense to the Ameri¬
reap
President
8.
has
suppose
Bankers Association.
can
tions.
I
I
George, Illinois:
going to
Conven¬
our
if that is Mr.
see
Association
and
year,
traveling expense of its member
I think in the letters I have
bunch
to now accommodate the size of
Bankers
next
city,
generally from commercial bodies,
are
single one—in fact,
a
city,
every
invitation| here.
invitations of several
inviting
to
were
take
an
the
communications
you
have to
has
hands,
my
think I hold
do not
here,
Commerce
in
CONVENTION.
Noes have it.
Gentlemen,
the
from Illinois,
ciation
be
association
that
question
the
adopted here,
be
Vote
now
is
upon
resolution adopted
appointed.
and
that
The
a
the
motion
committee
Chair
of
the
wants
of
one
from
simply to
of
Thanks
to
Speakers.
gentleman
Joseph
by the Illinois Bankers Asso¬
every
throw
state
out
the
dum
to
Wayne, Philadelphia:
which
the
men
the
who
Committee
have
come
Mr.
Chairman, there is
evidently overlooked.
here
to
address
the
It
is
one
to
memoran¬
give
Association.
thanks
We
have
listened
to
:
stirring speeches from
Secretary McAdoo, Lord
President
will
notice
Page 22 of your program there
on
Five
of
Co or eh ate
to
American
With
Financial
gives
Peril
the
of
first
presented
"Why We Must Fight On," by Rev. Dr.
0.
Hillis' address is printed on pages 113
[Dr.
Nominations
John
II.
Hon.
The
report is as follows:
REPORT
'
•
.
*
L.
Dr.
Rowe,
say
aye.
Mr.
Hinsch
Are
resolution.
motion
The
there
Are
Taxation in Hands of
all know that the
and
in
hands
the
.
Exempt U. S. Bonds
Banks Laid on Table.
Mr.
I
I
I
cover
exemption on all Governments
an
(Seconded).
It .is proposed
Goebel:
President
I
resolution.
I doubt whether any
United
the
Bonds,
States
and
Gentlemen of the
of, the wisdom of passing this
and seconded.
have very serious doubts
Convention,
Congress Would ever consent to
thus
make bank
exempt
stock practically free
such a storm of protest that the
that has been done at this Convention
might be clouded.
I regret more than I can tell you to have to speak
against anything proposed by our worthy Vice-President, but I would
of
taxation,
might arouse
it
and
magnificent effect of everything
doing
be
not
duty
my
i
yjR
move
laid on the table (sec¬
with
lean
planation.
.
with
coming year,
let
it
is
in
those
so
McAdoo and he received the sug¬
bold for circulation.
The question is upon
power
ordered.
the motion
been
handed to me.
me.
cooperate
1
.
I
Mr.
President and Members of the Asso¬
honor you have
that I greatly appreciate the
assure
you
that I shall do everything
in my
the president and the other officers of the
best interests of the bankers of America and
love so well.
with
we
Silver
Set for Ex-President
Goebel.
Gentlemen of the Convention.
—-I am asked to perform a very agreeable duty indeed.
I come before
you to speak of a gentleman who has shown himself well qualified for
the discharge of the important and onerous duties imposed upon him
during the past year.
Kentucky greets Kansas.
Mr. Goebel, I assure
John
'
.
upon
Maddox:
only say
country that
of the
favor say " aye " ; opposed,
announcement has
-to
can
association to promote the
The Federal Legislative
Committee is requested to meet in the Marlborough Hotel, south wing,
first floor,
immediately upon adjournment of this Convention, so that
the work of the coming year may be discussed.
The President :
Ladies and gentlemen, when the American Bankers
pursuant to the action of its representatives, the Executive Council,
started in help the Government to place the first Liberty Loan Bonds,
we called upon
all classes of people to assist us.
Many gentlemen of¬
fered their services.
Among those who offered his services was one of
the most prominent Divines of the country.
He not only offered his
services at the office, and in giving suggestions as to sermons, but he
offered to make a tour of the United States, and did make a tour of
the United States, which was one of the greatest helps toward making
the campaign for the Liberty Loan a success.
.This
gentleman has recently been in France and Belgium, right
where he could observe everything that was going on within the battle
One
-
pleasant duty to present to you the new
needs no
really
Vice-President
to lay this on
"no." The Chair is in
favor of tabling the resolution of Mr. Hinsch will rjse.
opposed rise.
The motion to lay on the table prevails,
all in
All
doubt.
and
we
strengthening
bringing in. to the Federal
•
conferred
talked with Mr.
the
the
He
ciation.—I
*
.
President:
table;
Now
.
have
Bankers As¬
that shall have
depend in the coming year.
favor, and I think there is no doubt that during the
they would exempt Liberty) Bonds from taxation, and pos¬
bonds
the
The
friendly ear
a
I
Cox:
Mr.
gestion
the
and after a talk
seemed, without committing himself,
to these suggestions. I offer that in'ex¬
with Secretary McAdoo, he
to-day
sibly
I might say that I have presented
Of Mr. Fox, or substantially it is a
President, of the National Bank Section,
request of the
to
request
to undertake a campaign
viceintroduction to this audience.
Most
of us have heard Mr. Maddox in the addresses that he has made all
over
the country.
We know that he is sound financially; we know
that his ideas are broad and liberal on many subjects, and I feel great
satisfaction in knowing that I am to have a lieutenant on whom I can
.
the
at
resolution
and
It now becomes my very
Hinsch, Cincinnati:
Charles A.
this
purpose
president.
the resolution be
year
ment.
if I did not.
onded),
the coming
eligible non-member bank, to the
I thank you.
Bonds.
in
of the financial structure of this
Reserve System of every
end that we may be prepared for any
emergency and the gold reserves of this country mobilized to take care
of any condition that may arise.
You have heard what Secretary Mc¬
Adoo
said upon
this subject today, and many of you heard what
Governor Harding said in the meeting of the State Bank Section a
couple of days ago.
It seems to me that the duties of the committee
which you authorized yesterday pursuant to a resolution that I intro¬
duced are not only to endeavor to bring in to the system non-member
banks, but also to try and secure additional amendments, if they shall
become necessary,
to the Federal Reserve Act so as to remove any
objections that now exist on the part of any non-member banks.
I
feel that it is our duty to back up the boys that have gone to the front,
and we can only do it by insuring the financial stability of our govern¬
its
country
introduction of an amendment
properly
to their standards; but
support and that of the general secre¬
the members of his staff.
concede it to be the paramount duty of the American
for
Chairman, that this Convention authorize the
to the laws as they now exist, which will
therefore, Mr.
move,
problems that are presenting
of the
confidently rely upon your loyal
sociation
this time that some amendment
actually paid by the bank.
but
ers,
committee and as
accepting this office
tary and
of this country
be taken by the
to the existing law be passed which will exempt said bonds from taxation, either
in the hands of the bank or in the hands of the shareholders, where a
tax is
laid upon the banks and supposed to be paid by the shareholit seems proper at
of the finance
in
misgivings that I shall be able to measure up
expended to underwrite such
public,
continues dead.
I am not
themselves for solution
to us, nor a A I unmindful of the great task that I have assumed.
When I realize the splendid administration of President Goebel and
the men who have preceded him in this office, I confess that I have
Now, inasmuch as the banks
bonds as may not
to taxation.
subject
not
the unanimous
Mr. Hinsch, it gives me more than
legislative committee and as chairman
United States Bonds, iu the
will be
The king is dead—he
Goebel:
Long live the king.
vice-president has been in the past.
President Hinsch :
Gentlemen,
Chairman and Gentlemen.—
hands of individuals
of everybody, excepting our incorporated banks, are
Cincinnati:
Hinsch,
A.
Charles
You
I announce that I have cast
(Laugh¬
pleasure,
it gives me immense satisfaction, to present you to this audience as
the new president of the American Bankers Association.
I know the
magnificent services of the bankers to the people of the United States
of America, and I hope and believe that your administration as Presi¬
dent of it is going to be as successful as your work as chairman of the
President
any
in-Favor of Asking Congress to
from
Are you
of the convention as directed.
unmindful
Resolution
the gentlemen named.
directed.
ter.)
and the resolution has been adopted.
consent of the Convention to present
objections?
prevails,
the unanimous
asks
resolution.
anothed
sir, that the
cast the ballot of
I move you,
secretary Instructed to
Secretary Farnsworth :
ballot
motion to adopt
Those in favor will
for the question?
ready
you
O.:
Cleveland,
of
it? If so, all in favor will say aye; op¬
The motion is carried, and the secretary will cast the ballot
posed, no.
as
Gentlemen, you have heard the
Goebel:
President
Sullivan,
ready for the question upon
Commission.
this
Atlanta
with this report?
motion was seconded from all parts of the hall.)
Gentlemen, you have heard the motion.
(The
Wigmore,
S.
Fifth-Third
President
President Goebel:
Constantine E.
Dr.
President
Maddox,
Gentlemen, what will you do
suspended and the
convention for
the
•
Hinsch,
Foster
nominees,
convention
Atlanta, Ga.
Goebel:
J.
J.
be
rules
Esq.
■
Secretary.
McGuire. Assistant Secretary.
It has been suggested by Dr. C. E. McGuire, Assistant Secretary of
the
United
States
section,
that a standing committee
from .The
American Bankers Association be appointed, for the purpose of advising
and cooperating with the members of the United States section.
Now,
Therefore, Be It Besolved, That we, the members of The
American
Bankers Association in Convention assembled,
hereby give
our
hearty and unqualified approval of the work of said Commission,
and do
hereby authorize the appointment of a standing committee of
five "to cooperate with the American section of said International High
II.
John
Bank,
Arthur
O.
Robert
Bank, Cincinnati,
Vice-President:
Mr.
"
"
Charles
Mr.
President:
For
National
*
Warburg.
M.
Paul
NOMINATING COMMITTEE
OF
Your
Nominating Committee beg to report the following
unanimously chosen by the committee, to be submitted to the
as officers
for the ensuing year:
National
•
'
Frank¬
of Ohio, Mr. Mills, of Minnesota,
result of their deliberations.
Sharer,
Mr.
Dakota,
of
Mr.
Goebel, Esq.
J. Peters.
Untermeyer, Esq.
Andrew
Samuel
South
Your committee on
sub-committee, consisting of Mr.
a
myself to present to you the unanimous
Fahey, Esq.
U. Fletcher.
Hon.
Elected.
lin,
President
W.
Nominating Committee is
the
and
Bassett
Peter
of
Richmond, Va.:
McAdams, of
D.
has appointed
Nominations
Duncan
G.
Hillis
to 117.]
order.
Officers
Chairman.
McAdoo, Secretary of the Treasury,
Moore, Vice Chairman.
W.
John
Report
The
Goebel: "
Thomas
Mb.
For
Hon.
Hon.
in
now
Financial Conference,
follows:
Hon.
the
upou
Elections.
and
Conference.
Charles A.
by
American
Pan
address you
1917."
England during July and August,
and
will
You
Hinsch, Cincinnati, Ohio..
held in Washington in
May, 1915, recommended the creation of the International High Com¬
mission,
composed of nine members from each
American Republic
represented at said conference, the United States section of which was
established by Act of Congress February 7, 1916.
The purpose of the
Commission is« to bring about closer financial and commercial relations
between the American Republics and the adoption of uniform laws and
rules covering commercial transactions.
The first meeting was held in Buenos Aires, April, 1916.
The result
of the deliberations gives great promise for the future.
Copies of the Pomerene bill, printed in Spanish, unifying the law
pertaining to bills of lading, were presented to the Conference, with
the
recommendation
that similar
laws be enacted by the several
countries represented at the Conference.
Tb
personnel of the American section of said Commission is as
Resolution
who
Hillis,
Dr.
you
Section of Pan
American
satisfaction to be able this after¬
great deal, of
a
to
in View of German Atrocities and
Inconclusive Peace; with Some Observations in France
an
President
The
me
present
" Why We Must Fight On,
subject,
is a notice of a resolu¬
Charles A. Hinscb, of Cincinnati,
tion to be presented by
Committee
It is carried.
will signify.
favor
in
All
Goebel:
to
noon
Nicholas Murray Butler, Dr. N. D.
Strong, Dr.
It
lines.
Northcliffe,
Hillis, Asst.
Secretary of Agriculture Mr. Yroornan, George M. Reynolds.
I therfore suggest,
Mr. Chairman, that a vote of thanks be given
to these gentlemen for coming here and addressing the Convention.
Governor
143
SECTION
BANKING
D.
Powers,
of Louisville,' Ky.:
appreciation not only of the people of the
know what
hankers are
bankers and
other men.
Ten years ago in this very hall I was elected to the dis¬
charge of the duties of President of this Association, but they were
then as nothing compared with what they are now and particularly with
what they have been at this session.
My friends, Mr. Goebel has made
himself felt, and he has made himself loved by every one who has
come
in contact with him.
For fairness in decision, for courage, he
has been preeminent.
He is now to be presented with a loving testi¬
monial, selected by one of the sweet women of this land, the wife of
our worthy secretary, and in presenting this set of silver to him I want
to say that it is only silver, while yesterday he presented to us words
which were truly words of gold, and words which came from the heart.
you
that you have the high
South,
but
the East and the West, who
and what the reciprocal relations are between
of
the
North,
144
Mr.
BANKERS'
Goebel,
selected
I present to
it,
I
at
you,
this magnificent
admiration—and
your
instance of
the
of silver.
set
aiu
sure
I
will
Madam
your
the
Committee
who
our
will
it
know
CONVENTION.
lack
Clearing House Association of Kansas
it
pin
ever
never
that
see
is
well cared for.
kind.
I
do my
Colonel
can
Powers
hardly tell
duty as I
ciation.
I
what
Dear Friends.—You have !>een
my
how
I
much
have
I
appreciate this gift.
done.
I
have
only tried
it from time to time in the activities in this
saw
have
aud
you
have overestimated
you
tried
to
convince
the
people
of
the
United
I
to
asso¬
States
of
After
all,
Ladies
and
Gentlemen,
there
is
only
'
and
is
that
the
of
need
be,
in
Our
order
his
Banker,
and
should
that
victorious
to secure
be
is
issue before
one
only
The
effort
one
sacrifice
to
peace.
The banker, the man or the woman,
her
or
there
and
us,
the
on
everything,
time
if
for
eulogizing
Stripes is past; the time for patriotism, for self sacrifice,
the Stars and
is here.
Country,
American
who is not willing to show
patriotism by sacrifice is not worthy the
of American
name
"
Please
IIinsch
with
the
assured
I
I
assure
to
that
you
the
arouse
in
activities of
any
people to
their
the
duty,
I
association,
shall
be
ever
in
at
any
your
command.
Ma.
William
A.
Law
tiring officers of this
ever
been
performed in
(The motion
Pbesident
saying
is
:
desire
I
association
to
for
move
was
without
thanks
to
services
any
the
re¬
during the
doubt, than have
single year of the association's history.
any
J.
A
telegram
has
also
President of the South
Hinbch
in favor of
All
:
are
Mb.
of
this
motion will
any—by saying
manifest it
by
The motion
no.
Association
bers of the
Association
pinning upon
assure
much
you
aud
as
the
the breast of
an
At the close of his work
expression of appreciation
very
and
the retiring
deliberations
of
Goebel
right.
is all
this
honor
as
convention.
He is
a
of
President
the
mem¬
pleasant duty has been given to me of
all that Mr. Goebel will
distinction
as
President of this badge,
wear
lie
In
has
it
as
long
shown
Kansas
in
City
as
presiding
we
and
lie lives with
think
over
that
I
as
the
Peter
citizen of Kansas City, Kansas; but it
was
Tregoe,
wishes
important
my
all in spirit,
H.
for
in
work
attendance.
if not iu
a
most
connection
However,
be
person.
secretary of
the
National
Asso¬
follows:
am
active
sure
in
Bank
Means
and
we
for
sane
and
our
all
Mb.
of
this
banking,
(The motion
was
J.
Hill,
and
President of
member
a
was
of
the
always very
of the old guard,
who always worked
sound currency
express
that
and
he
has
for
the
been
gold
taken
respect for his memory I suggest that
for
stood
a
can
a
moment.
with
bowed heads.)
there
is
some
other
business
to
come
motion to adjourn is in order.
a
move
that the convention
do
now
■
adjourn.
seconded.)
It
adjourn.
adjourned sine die.
Adjourned.
I
our
has
All
by saying aye; those opposed,
tion is
one
Unless
Hinbch:
now
Connecticut,
Woodward,
follows:
Congress."
and for
stand
and
convention,
Pbesident
do
rose
I
George L.
as
association.
than
more
Hinbch:
Taggabt:
of
was
midst, and to show
the
vention
Norwalk,
Hill
the convention rise and
before
Mr.
regret the passing of Mr. Hill, who
regret
(The audience
from
Savings Bank,
to-day of the death of E.
of
Mr.
safe
I
received
Committee
the affairs
Mb. Goebel:
been
Norwalk
received
was
National
Ways
Pbesident
Pebiiy, of Kansas City:
this
Word
the
from
unanimously carried.
I
Lynch,
sincere greetings of the National
to the American
Bankers
standard.
variously seconded.
All opposed—if there
aye.
of
vote
a
their splendid
Their tasks have Iseen greater,
Goebel,
K.
follows:
as
good
my
James
unusual
I
past year.
Mr.
Association of Credit Men are
Association, and we feel that the
questions of these days are going to lie met
squarely and the
banking powers of the nation devoted unselfishly to the
winning of the
war.
Our best wishes for a successful and
happy convention."
extended
"
Sir,
reading
that
prevented
you
citizen.
endeavor
President of the
Missouri.
telegram from Mr.
last year,
has
as
a
regards
my
with
Men,
City,
convention
from
am
Credit
have
the
Loan
telegram
of
The
I
to
pleasure to elect him
our
badge.
:
meeting and
that
as
Association
Liberty
a
ciation
"
the
convey
successful
well
as
lapel this
your
President of
Also
America of the loyalty and disinterestedness of American Bankers.
part
upon
Pbbhident
Goebel:
Mb.
too
fear
good fortune
been
in
no.
moved
favor
of
and
the
seconded
motion
The ayes have it,
that
the
con¬
will
manifest
and
the
it
conven¬
Clearing
c'
'
=
'
'
'
House
'•
'
i
■'
'
'
•
1'
"
'
•
'
'
,
'
' •'
Section
.
•'
,
.
'
'
American Bankers' Association
'
.'
■
Eleventh Annual
'
.
'
•
■
•
■■
.
.•
Meeting, Held in Atlantic City, N. J., Sept. 25, 1917
INDEX
TO
CLEARING
PROCEEDINGS
HOUSE
Clearing House Examinations
Page 145
Standardized Financial Statements
Analysis of Accounts
Page 148
Valuation of Securities
Page 150
National Association of
Page 153
Committee and Officers' Reports
Country Clearing Houses
#
-
-
Credit Interchange Bureau
-
-
Page 154
-
"
-
Page 156
Clearing Houses
Clearing House Examinations for Groups,
Page 157
Page 157
-
Cities,
Towns,
and Districts
By James 'B. Forgan, Chairman of the Board, First
It
in 1900 that the
was
ciation took
the
Chicago Clearing House Asso¬
the initiative and
established
privilege
to
Since that time it has been my
the
occupy
for
of its member and af¬
supervision by examination
filiated member banks.
bureau
a
of
position
Chairman
of
the
National Bank, Chicago
cent, of the deposits were found to have been loaned to
invested in
or
condition
on
I
I
Examiners.
as¬
postulation
that
been
have
signed
it
because
is
to, address
asked
this
Of
the
on
you
subject
Towns
will
for
so
December 16,
by, relating
our
experience
of
that
as
that of the many other city
full
unless
will
then
have established
offer you
similar bureaus.
such suggestions as occur to me in
is
of
matter
a
history that
the
Clearing
Chicago
House Association established its bureau of examination
after
soon
the experience it
had with the failures of a
national bank, a savings bank and a trust company oper¬
ating under the management
control of
and
The Associated banks undertook to
institutions
by
taking over
their
to
banks
as
well
of
as
one
man.
liquidate these three
and
assets
responsibility for fheir deposit liabilities, under
guarantee of their directors.
ciated
assuming
a
limited
The ignorance of the Asso¬
the business
the true conditions of these banks
community as
was
demonstrated
by the fact that the market quotations for their stocks
just preceding their
per
the
failure
share and there
time
of
substantial
tional
bank
their
failure
dividends
to
were
$3SO,
$350 and .$240
sales at these prices.
were
each
their
paid 12 per cent,
extra and the other two
respectively.
of
these
regular and
to
paid
The
3
per
Na¬
cent,
paid 10 per cent, and 8 per cent,
The combined capital aud surplus of the
$27,000,000, one-third of
funds, showing the political
ment.
Up to
banks
shareholders.
three banks amounted to $3,500,000 and their
deposits
taken, however, beyond ex¬
was
correspondence,
until
matters
beU
closed
were
Saturday night,
on
The Associated banks were informed
provision
made for
were
the payment" in
depositors the banks would not be allowed
placed in liquidation under a receivership.
Needless to
The entire
pull
which
aggregate
was
public
held by the manage¬
capital and surplus along with 44 per
say,
the Clearing House banks that took over their assets
and
districts.
It
de¬
for business on Monday morning, but would be
open
I
regard to the extension of examination bureaus to groups
and
the
of
clear¬
to
houses which
ing
Comptroller's
the
by examiners representing those officials
it
during the eleven years of its existence, which is doubt¬
less much the same
The
1905, by joint order of the then Comptroller
.
by explaining to you our
commence
and
president.
developed through
bad that they could not be allowed to proceed
that afternoon
method
action
No
through
and State Auditor.
therefore
Chicago
during which
further, and the banks
Groups, Cities,
Districts.
and
of the
had
through the semi-annual reports of the National Bank
came
me,
Clearing House Examination
I
experience that
bank
partment had been kept fully advised of what was going
Clearing House Committee, having this bureau in charge.
assume
National
of years,
period
a
ventures
various
the
in
assumed their
the operation.
of
This
liabilities met with
Experience
a
heavy loss by
suggested the desirability
Clearing House Examinations in the interest of the
Associated banks and the general public.
Clearing Houses as.a rule are voluntary associations
established primarily for the
bers
in
convenience of their mem¬
effecting their daily exchanges.
In this process,
however, the members have to trust each other for large
amounts in the shape of
and all in each.
integrity of all,
view
of
daily balances payable in cash.
member, therefore, becomes interested in the
Each bank
the
awful
calamities
But beyond this, in
caused by
and of the fact that the failure of one
bank affects the
become
bank
failures
clearing house
confidence of the community in all, they
vitally interested in the maintenance among them¬
selves of conservative
methods.
management and proper business
Hence, only such banks as can stand a satis¬
factory preliminary examination are
admitted to mem¬
bership and only those whose condition continues to be
to a
satisfactory
duly
appointed committee can enjoy
clearing house privileges.
ber
banks
clearing
render to this
make to the
Members and affiliated mem¬
through
members
are
required to
committee copies of the statements they
Comptroller
or
to the State authority.'
CONVENTION.
BANKERS'
These
these
disclosures
three
banks
that statements
cago
had been
all
and
upon,
connection
in
the
showed
with
the
associated
failures
banks
divided
of
Chi-
of
rendered, which up to that time
so
published,
as
form
the
basis
the
of
implicitely relied upon.
resolved
there
*
be
Chicago
therefore
nection
The
with the
We
Association.
bureau
of
whatever
lutely
by
the voluntary
that
dividual
sion in
fact
action
benefit
external
conservative
for
on
But
the
individual
do
in
plan of appointing a
nation
way
individual
in
bank
We
initiative
banks
in-
committee
a
made
with
thorough
if the
them.
to
notified
sonally
of
least
at
once
The
the
their
of
examiner's
the receipt of his notice.
nation,
the examiner
assets or other
valuation
If, in the
finds
for,
the assets do not offset
per-
examiner
the
of his exami-
course
bad debts,
any
losses unprovided
to
depreciated
that at a fair
so
the liabilities,
includ-
recognize
if
one
been paid six
months
wait until
before
if
even
regarded as
a
bank's
such
is
call
can
it
time.
to
A
bank's
The
Committee does, not
port
rendered
as
satisfactory
detail.
it
If,
is
to
the examiner's complete re-
see
the
All, that
directors.
reported
so
Committee
are
so
the Committee has
found
is
the
to
however, conditions
necessary,
copy
he
without
the right
to call
for a
tinue to enjoy clearing house privileges,
As to the ability of
examiner to pick out and re-
an
depreciated' assets, he
port on
bad debts
quires
sufficient knowledge of local conditions to enable
a
him to do
to
and
with
so
reasonable accuracy.
the commercial
obligor or
to
as
the
longer lie is 011 the job the
the
had
considerable
examiners,
He subscribes
to the standing of
as
value
of
security.
any
carious.
ness
Thus,
to
comes
of it have
no
its
condition
pre-
nothing but bad and undesirable busi-
as
the
Committee's
attention,
members
the
advantage through their position
in
com-
petition with the other banks for desirable business.
Neither the examiner
with
restrictive
rules
the
nor
and
sim/ply examines and reports,
bank as be finds
would
do
it, the same
if employed
Committee
regulations.
classify
rendered
under
Clearing House and
as any
We
have
other expert examiner
to
the
of,a -bank's
Government
This
simply
is
the whole
established
pficable to all banks connected with
Association,
is
that
veal
our
the
and
even
statements
true
statement
and
the
to
published is reported to the Clear-
ing House Committee.
nutshell.
examiner
by the directors for the purpose.
oath
as
hampered
upon the condition of each
Anything affecting the integrity
as
is
these
as
conditions
are
made
of
our
our
matter
two
rules
a
ap-
Clearing House
unwritten.
and
in
The
first
published must re-
banks
on
the
basis
of
their
assets at
tlieir
liabilities, including capital, surplus and undivided
profits.
a
fair valuation
being sufficient to offset
In other words, their capital,
surplus and un-
a
bank
with
observation
is
having
myself, I have
that
auditors
and
of
anyone
or-
bank training and with ade-
bank's assets with reasonable accuracy,
a
in
tions
Chicago
I
existence
their
friction
the
eleven
the
that
has
it
with
praise of them.
the
pcrience
Clearing
I
show
are
has
their
in
every
There has been
that
every
unstinted in
informed
on
they readily cooperate
Committee
the
directors
Bank
are
greatly assisted by the
anything open to
been
of
themselves
keeping
House
of
mously adopted
tee.
They
in
of their banks and
elimination
and
benefits derived
reports
years
proved
unpleasantness.
nor
great
examiner's
been
say
most satisfactory and successful.
realize
or
during
only
can
the condition
The
Besides
he becomes.
experience
my
The
information he acquires
more
As to the practical working of Clearing House examina-
way
render
ac-
quate sources of information at his command can very
soon
neither
to
and
dinary intelligence with
so
as
proficient
more
soon
agencies and has the entire banking
fraternity with which to consult
any
gently with the case, but this is only when bad business
permeates the bank
be found
reasonbly accurate by the Committee or it cannot com
bad as to make
of the complete report so that it may deal intelli-
statement
of the examiner's report,
with
management,
not legally
bank is actually insolvent in a legal sense
a
they
in
or
condition
And they do not have to
misdemeanor.
a
of
been for several years a bank inspector
bookeeping
it.
benefit and
their mutual
making
the
must, on the basis
,
of
and
the
bad
a
saw
morally wrong, and therefore not permissible among
sheet, or if he discovers any irregularities
such findings to the Clearing House Committee.
they
They regard the making and pub-
statements
erroneous
in the .balance
connection
in-
rea-
in advance instead
ing the capital, surplus and undivided profits, as shown
reports
or
a
on
bad debt an obligation on which
as a
banks associated together for
In
own
could
consider it.
can so
protection,
complete
asked
are
to acknowledge to
and
it
peruse
and
as
year
a
they
has
fishing of
made of each
is
directors
existence
its
they
exarni-
an
while
interest
suf-
a
report of each bank is sent to its president, the directors
all
all
treat
of having to wait until it is six months past due before
of
up
We therefore devised
thorough an examination
report
investigate and
They might regard
saw
employed an outside expert to examine their
and
with legal definitions
or even
We
Our Committee might find difficulty in defining
debt,
supervi-
further
competent examiner
would.be made
as
of
success
his findings in full detail to its directors.
as
to
reasonably
Under the National Bank Act no obligation due a bank
entire business of the
possible of each bank
as
rendered
are
sonable business basis.
fosters and encourages
ficient force of assistants to make as
are
terpretations.
protection.
and intelligent
each.
to
competitors in -the business.
and report
year
a
correct from the standpoint of those two unwritten rules,
that it
supervision
banking
have the
to
disclosed
banks
the statements
times
As already stated, we are not hampered with technical
of the asso-
and
ultimate
judicious
management
would not
five
and not then if it is secured or in process of collection,
and safe
the mutual interest of all
that it
banks
a
them,
is considered bad until interest is past due six months
relied
banks.
whether
to
as
the
once
guide
was
in
Honorable and intelligent initiative management
be
by
elected
to
it may be exercised does not abso-
authority
alone
this
the
man-
under
aware
guarantee sound
cases.
judges
them
duly
the examiner's reports
rules or regulations,
in
ap-
assets
con-
There
examination
lies
for their individual
fully
the
conditions
Committee,
House
with
are*
year,
Clearing House.
evolved
tanks
were
can
House
a
The Clearing
under which
such
by the
their
and their records and reports reliable,
bank connected with
any
strength of this bureau
elated
that
assurance
Clearing
organized
thus
was
some
again develop in
never
of
estimated,
agement of our banks must be honorable and straight
It was therefore unanimously
adopt a system of supervision
would
could
the
to
reasonably
The second is that from an ethical standpoint the
standing and credit of banks with the public, could not
be
value,
in excess of the amount of their liabilities to the public,
the Clearing House Committee had to rely
which,
profits must always be represented
proximate
banks
in
tlie
correction
criticism.
have
Our ex-
almost unani-
suggestion made by the Commit-
cannot, of course, discuss such details as would
its
efficacy.
most
I
can
only
that the results have
say
satisfactory to all concerned and
good has been accomplished for
that much
the Chicago
banks in-
dividually and collectively.
The
organization
somewhat
of
the
under which each
ness
under
method
the
lies
same
dered to
,
entirely
of
a
voluntary
gentleman's
partakes
agreement,
bank binds itself to conduct its busi-
proper
in
being
nature
the
methods.
fact
The
that they
effectiveness
are
all
of
the
measured by
standard, viz.: That their statements
as
ren-
the Clearing House Association must be satis-
factory to the Committee, in view of the examiner's re-
ports
them, otherwise they cannot continue to en¬
upon
In
no
however, does the Committee assume re¬
sense,
sponsibility for the individual management of the banks
for the
or
of each
rectors
All
based
bank.
undertakes
examiner's
the
on
.-
»
Committee
the
officers and di¬
the
rest on
is
to
.
judgment,
pass
report, on the reasonable in¬
tegrity of each bank's assets and the general reliability
of
Committee
fairs
that the
fact
human
vision
under
of
examined
once
the
banks
under
Committee
The
year.
responsibility laid upon it.
heavy
of the
control
its
super¬
circumstances they are only
ordinary
a
omnipotent, it is only
It has no
agency.
management
and
af¬
efficacy of Clearing House super¬
But the Committee is not
initiative
the
of
members
posted on local credits and financial
are
ordinary
the
the
lies the superior
vision.
an
In
statement.
its
realizes
fully
It has no
easy
problem to decide as to when or what action should be
with the condition of a badly
in connection
taken
Conditions
bank.
aged
become
must
man¬
indeed
bad
and
expostulation must have been exhausted before any su¬
authority,
pervisory
of
will
assume
In
regard to
examination
Federal
in
tance
bank
the
something of minor impor¬
would
and
considered
was
blamed
be
such
unsatisfactory
be accused of causing
authority would
close
were
simply because
not
solvent bank
a
only
its
by
stock¬
Reserve
insisting
published
the
that
prevent the Committee from
under their supervision must
true
condition
ing
House
if
they
are
privileges,
of
statements
the
banks
approximately reveal their
continue to enjoy
to
and
this
proves
Clear¬
sufficient
a
the development of very bad con¬
ditions.
We have had no difficulty in securing the
such
banks,
our
condition
bureau
tion
with
nected
while
and
ever
can
now
to
us
again
Clearing
the
on
it
caused
as
can
our
examination
tee.
be
relied
on
that no
organize our examina¬
develop
House.
in
bank
any
con¬
Bank supervision re¬
House commit¬
Clearing
part of a
cooperation
probably the best and most effective external
supervision possible, has its limitations which should be
recognized by
held
to
intelligent public, and should
an
responsibility
of
degree
a
which
it
not be
does
then
is
the method
adopted in Chicago and our
Some difficulties arise when it is pro¬
In the first place
posed to extend our system to groups.
any action taken
kind
They would have to form
of voluntary organization
among
to
undergo
satisfactory
a
themselves,-
their continued
membership in which would depend on
examination and ex¬
pulsion from which would be the penalty of their pub¬
lishing statements that did not reveal their true condi¬
tion.
So
far as
numbers
are
concerned,
of the banks in Chicago are connected
House
which
of
Association.
is
the
by
used
We
the
recently
members
a
This, it
to me,
seems
would
Reserve sys¬
striving for.
It would necessitate some
changes in the present laws.
A law would be necessary
to
do
the
with the present dual
away
ferring
the
to
Federal
department
too large
become
for
one
vision
of
them
while the
authority by trans¬
Board
Comptroller.
the
duties
and
country
has
the
The
and the National banks too numerous
in
man
of
Reserve
Washington
through
State banks
the
undertake
to
of
reports
the
super¬
his examiners;
they join the Federal Reserve
as
system come directly under the jurisdiction of the Fed¬
eral
Reserve
Board,
bureau
of the Federal
would
action,
of
up
twelve
into
beyond
remain
Reserve
Reserve
authority
supreme
but
splitting
Federal
twelve
the
The
bureaus
agents,
in
service rules
greatly
the right of final decision
simplify
trained
the
in
the
and
work
and
examination
stance to
by
Federal
Reserve
and
increase
civil
under
Banks
and
would
fixed salaries.
on
reports could be made in
the
first in¬
the Federal Reserve agent of the district and
forwarded to the Federal
him
of
Examiners
developed
become members of their official staffs
All
charge
Board, in whom would be vested
and
gradually
the
representatives
as
efficiency of Governmental supervision.
be
of
that
Comptroller's
the
time certified
Reserve Board.
At
the
same
presidents of the banks examined for the use of the
less than half
action.
an
insignia
and affiliated members
could
individually
be
see
its
in
opinion, .with
accuracy,
the system
erroneous
any/
or
affiliated membership in
Those of the public who appreciate the
supervision
are
thus in a
favor of the banks that en¬
The formation of such a voluntary organization
group
district might
might be difficulty in
not be practical
receive and act upon the examiner's
and
there
getting a satisfactory committee
reports.
In re¬
approxi¬
and to expel from
mately disclose their true condition,
bank that persisted in/publishing grossly
statements after the attention of their directors
had been drawn to the facts.
State
The
in
banking departments
the
011
reports of
might be induced to
Reserve examiners
Federal
regard to State banks that have joined the Federal
by the Federal Reserve agents.
Before such
be
necessary
Federal
the
a
system could be made effective it would
that
there
should
Reserve system
of
commercial banking business.
made
been
reports could
Certified copies of such
Reserve system.
be sent them
a
the
along
this
line,
be a
large influx* into
State institutions doing
A fair start has already
which
will
increase
in
momentum as the State banks feel their necessity for it
and
realize
more
fully
the benefits
to
be derived from
belonging to the system.
merely throw out these suggestions as possible fu-
I
ture
development^ of the Federal Reserve system.
cannot be
us
yet
Reserve system
realize
as
the
in
this
the
mainstay of the
country
case
our
importance
of
the
realized.
Federal
the reserve strength of the enormous
banking system yet to
is
the
be developed under it.
That it
future development of banking
there can
be 110 doubt, and this being
attitude towards
it
should
be
one
of co¬
operation, so that its development will be along sound
lines for the benefit of its member banks as well as that
of the
public at large.
-
They
accomplished all at once, but I see 110 reason
of
membership
that
the public should be bona
reasonable
Few
regular
of
that all statements of member banks
rendered to it and published to
fide
notified
Legal authority could be given the Federal Re¬
Board to
serve
with the Clearing
adopted
who
directors,
copies of them could be sent to
their windows or at their counters, to in¬
position to discriminate in
joy it.
Clearing House examina¬
they should not be aimed at and finally
the association.
to
large cities.
well worth
tem
Federal
not only for the districts, but
why
advantages of Clearing House
in
the
of
each
their
in
Clearing House on their stationery, checks, or by
cards hung in
dicate
districts,
for
beneficial development of the Federal
must be entirely voluntary on the part
of the banks to be examined.
ability
Reserve
satisfactory
such
established
for
a
rely
experience of it.
some
be
of
system
hope that as the
also
not
assume.
Such
organiza¬
the
determent to prevent
of all
mutual
not
develops
may
will make
as
the
be
could
however,
system
bureaus
Banks,
may
bureaus unnecessary,
the
not,
effective
tion
would be taken.
does
we
Federal
twelve
holders, but by its depositors in whose behalf the action
This
of
districts,
Reserve
examination
the
the extension
to
examination
taken
the necessary
secure
an
tion.
otherwise and such action
If it
bank's doors.
a
them to form
among
Comptroller.
were
to
constituted,
however
cooperation
responsibility of action that might lead to the closing
the
few banks in them it would,
a
fear, be practicaly impossible to
This
quality of all the loans current in them.
responsibility must always
gard to towns with only
I
joy Clearing House privileges.
147
SECTION.
HOUSE
CLEARING
-
BANKERS'
148
Analyses of
CONVENTION.
Service Charges, Minimum Balances,
Accounts,
WAffAfafid Interest Paid
■'J.V-yj vBy George
Mr.
President and Gentlemen:
jeet of
ana lyes
less
or
more
particular
realize that the sub-
I
uninteresting, but it seems to
of
analyses,
that
the
is,
of
analysis
bankers, and is very
We
of
understand
all
termed
in
vital
and
business
our
that
connection
of
this
an
say,
those who prepare
of them.
ten
time, and
at a
then
and to make it more
mind
less plain,
or
might be well for me to gossip along with
progress
In
sheets, that I have had printed as
Smith," down in
man
to
will
you
He drew that
cover
the ten
upon
the fallowings presumptions:
nual
years
increase
Ile
figured out
years,
he
should
what
had
he
in
done
easily gain $200,000
be
.
Old
about
in
the
behind
figured
was
He
figured that
average
based
his
as
the
real
It
Well,
he
to
compare
have
one
year
what ought
now,
be
to
them
with another.
be. the
to
earned
on
tion
cent
per
to
and
some
would
make
profits.
on
.
his
bankers
a
little less than
total
would
considerably
a
deposits,
In
was
other
particularly careful
per
There
cent,
net
be conserva-
words, he wanted his chart to be abso-
showing which he didn't have
ing.
he
a
good chance of attain-
He had in mind that should he beat his record,
hoped to do, that after three
revise
this ten
year
or
as
four years he might
estimate and make
a
has
He
increased
would
this is
liis
the
make
market
an
imaginary estimate,
Now
chart
let
us
turn
salary
the page to
simplified.
will all recognize are right there.
the month of June,
is
a
sheet
this
like
and,
perhaps,
1917.
chart " B."
The
main
new
ten year
June,
in
This
items
you
We will say this is for
Of course, each month there
made up.
of the sheet they have the
which,
in
own
more.
over
considerably
is
own
he may have owned in his
as
bank, he has acquired
cent,
lutely possible of working out; he did not want to make
a
bank
First of all,
the top
at
total deposits of the
average
He arrived at these figures by
per
to
capital,
$70,000, and perhaps at that
were
$1,421,000.
quarter of one
1
his
10 per cent., and
were
1'per cent.
than
$33,000,
dividend of
a
his
of
success
profits
net
by the chart
figure higher, because they
more
Then in
cent.
were
In picking out these different figures you will
notice that he
tive.
was
per
overdrafts
That left him as the amount of net profits
earned
be
again
,
his
he paid
addition to such stock
so
experience had shown him that his deprecia-
losses
that he felt
total
depreciation, losses, etc., %
see
so
bank,
that he devoted to
You will
the
stock to 10
of
amount
per
because his
be
Next lie
deposits?
figured that at 1%
cent.
new
He
net
total
and
the
dividend until along in 1925,
per cent,
Of course, gentlemen,
figures,
harmonize
on
but that is the way he figured it.
was
He figures all of these charts* at
order
operating profits
these
were
value of the stock in the local market $250.
He took 5 per
with
and
time the
going to base his estimates
received
will notice,
his surplus and profits
he
possibly
might
his
50 per cent, divi-
a
So he increased
prosperous.
as you
$3,300,000,
were
little better average
little less.
a
that
more
He paid 10
$200,000,
that period,
over
course,
are
on
1920, at the end of the year, we find that his deposits
will find that he actually coordinates
cent.
per
in
"that he may
said,
perhaps
that
amount
cent,
per
Of
experience.
own
on we
figuring at 5
5
him,
earn
cent.
per
the figure that lie was
Later
upon.
5
other banks would get a
than that, and some
cent,
should
money
rate' of
upon
some
that
thing
little
dend at that time amounted to 331-3
at all
what would be the average rate for money.
an
that
next
cent, dividends
per
that he could declare another dividend, and which divi-
Of
The
share.
a
deposits
average
when his surplus and profits had increased
not
schedule.
his
1921, when his
He is still paying 8
a
percent.
an-
gained that amount, why, lie would know that he was
falling
$2,300,000.
dividend rate,
$200,000.
good
until
goes
getting
past five or
any
year
cent., and
per
ing the value of his stock at $200. After that things
in 1917, to
deposits.
a
net
$200,000
ran up
dend, reduces his surplus and profit to $55,000, still keep-
that
he found that he had
during any year
$1,700,000;
were
his deposits
old stock, and in that year he declares
years
one
that
the
was
deposits
year
He paid the same dividend of 8
So it
up
First,
average
The next
making progress, made his stock go to $200
He based his estimate
and figured that if he
if
course,
to 1927.
business should
his
in
six
up
his
and
this first chart, the
marked "A."
see
lie
was
Smithville, decided that he ought
So he drew up
now.
way
the folks down at Smithville, seeing that his bank
figure out about how he was going to stand ten
from
That is the
about the
you
sort of chart.
a
year was
selling in the market down
was
his surplus and undivided profits reached $77,000,
consisting of four
a paper,
1918
imore.
of an imaginary bank that I have termed " The
hands
will
we
dividend of 8 per
a
I thought it
First National Bank of Smithville, Illinois."
You all have in your
this time,
at
paying
His surplus at the beginning of this
His bank stock
profits, $17,000.
by the months; and, in order to work out what I have
Jin
stock
was
started out.
result
the
measure
lie
at Smithville at about $175 a share.
intelligently for the work alidad
Hence, it seems to me that the average banker
years
He
So that after paying that dividend he had $7,000
over.
$50,000.
might do well to sort of make a contract with himself
for
capital
IPs
$100,000.
was
cent.
left
have realized more and more that the men who succeed
are
$15,000.
were
progress.
of what might be
age
1917
year
figured that the net profits, based upon his supposition,
So it has come about that we
superefficieney.
.
and found that his average deposits were $1,500,000.
with the con-
individual
our
conditions as he should find them
upon
Now, based upon those figures, he took the
the progress of a bank, is to a certain extent new among
duct
Bank of Joliet, 111.
at that time.
that this
me
based
Estimate
is preeminently dry, and to many people
phase
Balances
on
Woodruff, President of the First National
were
$500.
$1,500,000.
The
The
average
total
average
loans
having
his bookkeeper simply average the items across the gen-
eral
ledger
reserve
for
each
with, the
day
of
Federal
the
month.
Reserve
His
average
was
Bank
$95,000.
Ills average cash in the vault at the end Of the month
was
$70,000.
IBs average "Due from Other Banks"—
because he had to keep some money
amounted
nient
they
$30,000.
deposits
average
or
to
His
amounted
average
to
in
other
$1,000,000.
Of
commercial department overdrafts
were
$500.
banks—
commercial
depart-
course,
were
his
small;
He figured that the average percentage
the percentage of commercial department deposits to
his total deposits was GG 2-3 per cent.
time deposits $500,000.
deposits
partment
overdrafts;
so
He had
the
no
That left for his
savings department
percentage
of savings
deposits to total deposits was 331-3
per
de-
cent.
CLEARING
His
were
You
will
capital,
his
comprised
profits,
Department"
" Overhead
average
really
which
deposits,
undivided,
and
surplus,
HOUSE
$150,000.
the purpose of
for
this analysis: A commercial department,
savings department, and what he termed an overhead
a
department.
Of
commercial
the
course,
department
handled
the
checking accounts; the savings department
handled
the
savings accounts, and in the overhead de-/
partment
the
officers,
funds
of
not he
bank,
charged to
such
and
loaning
the
in
incurred
expenses
the
the executive
salaries of
embraced the
were
other
expenses
the
of
could
as
the other of the-other two de-
one or
Now
he wants to find
June out of
and how much
ment.
the average department deposits,
wanted
he
of
course, the reserve with the
deposits, he actually
due from other
ferent;
this
Smithville.
there
see
subtracted
He
the
on
those
chart—and
there
down
items
is
it
that
in
will
you
for me
unnecessary
all to you
read them
the time to
take
bank
country
a
a
reserve
would be dif-
cities the percentage
was
keep
to
the central
in
in detail, but
will find that the sum total of the items equals the
you
'
total loans for the month.
average
computed at 5
lie takes an interest table and
cent.
per
computes the interest for the number of days at 5 per
and
cent.,
„
that is
finds
he
$1,842.40
department,
$3,518.50 in the commercial
the
in
and
department,
savings
Then there
are
to
that—$10.02
in
the other
some
little odds and ends to be added
the commercial
in
nothing
department,
departments, and also the interest collected
bank balances—two-thirds of that to
the commercial
department and a third to the savings department.
that
So
department income was $3,561.40 for the
the gross
commercial department, $1,858,90 for the savings depart-
then,
Now,
he
tenaiice
of
these
expenses, and
making
loss
those
shown
is
much
how
has
various
been
expenses
departments,
in
advertising,
Now,
aiient
it
to be
department
profit or
depart-
$2,349.50 for the commercial
there is a nice thing about
I11 case
a
month,
it
to
analyze,
is
well
a
to
of
"Out
an
out of town de-
us
put
large number of accounts that
we
all
understand analysis, each
of
Town
one
always
the
preceding year's
net
For instance, if in June, .1917, you
how easy it is for Mr. Smith to compare the profits,
see
from the result of his bank's business, with the month
of
June,
First
1015.
Just
lie has
the
Let
partment.
us
commercial
net
look
the
at
income
total
look at June.
department
commercial
items
of
this
011
the
chart,
commercial
It is $3,561.40.
$1,211.00.
expense,
•department
de-
Then
And
operating
profit,
$2,340.50.
'Underneath that
will
you
find
the next year.
It is
interesting to study these items.
This
sheet
is
gotten
Brother Smith can
in
up
convenient
very
a
way.
the figures of each month
compare
with the same month in the preceding
The aggre-
year.
gate profits of all the departments are added together.
That is about all there is to this—except there is just
little chart
one more
the hack.
011
That is in order to
make it perfectly plain to Mr. Smith,
as
he is really keep-
ing this before him, that lie is actually maintaining his
He gets this all down
how much has been earned
would be necessary for him to
total deposits
per
year/
number of months in the
having to
$1.04
earn
per
to
now
the basis of
each $1,000 deposits.
011
P/4
earn
It
per cent. 011 the
But that divided by
12,
the
would result in his bank
year,
month
each
on
$1,000 of de-
keep
He
way
wants
to
lias
he
he figures that is
way
department.
and the
schedule that
the
to
up
Now the
set
first in
the
know
for
himself,
the overhead
of
amount
loss,
die gets at that is to take the total losses
in dollars and cents and divide it by the total number
That amounted to twenty-
of thousand dollars' deposits.
four cents.
per
Then lie takes the amount of net operating
$1,000 commercial department
deposits,
less
Then lie takes the same thing in the savings de¬
partment, and
sheet
shows
so
on..
".59S,"
Then
which
perfectly satisfied and
at
down
the bottom the
surplus;
means
is good natured,
and he is
and feels easy
about the progress during the month,
The advantage of all this to Mr. Smith is this: That
long as he lias shown any surplus in any month he
so
is satisfied, but when they begin to run down, why, he
can
refer to these figures and
find out why they ran
it out.
It is very nice, indeed, of you to listen to me so at*
tentively on a subject so extraordinarily dry.
seem
It does
to me, though, in these days of charts and well-
laid plans, that .the course of the banker's career should
Accounts,"
because
liead
of
you
made, under the department analyses
at
tlie
take the amount of profits that
tllat
we
have
talking about, and that should amount to the sum
profits shown by the individual analyses.
have
It would
for five years, so
up
not remained uncharted and his destination, in life nn-
the
the month you
digest
one
accounts in
end
of the
It is gotten up for two years.
good idea to get it
a
would
you
of a
It is called " Monthly Operating
department under
of those
department and then analyze that
been
that
kind
Ho
desk
down, just' what item the deficit occurred in, and trace
bank lias an out of town depart-
in which it has
wishes
probably he
After
whatever else there may be to pay.
operating the overhead department of $354.24.
partment.
Profit Report."
is'a
This
his
upon
ment.
$445.95 for the *aviqgs department, and a loss in
ment,
at the end of the month.
of the results obtained.
little plainer.
a
placed
depart-
separate
paid out for the main-
deductions, the net
"C"
marked
the cost per $1,000 of operating the overhead depart-
So that at the end of the month
general ledger.
knows
advertising
his
and
expenses
his
on
sheet
for the
out of this lie takes his expenses
montli, and lie does that by merely keeping bis
ment
the
'profit
the overhead department.
and $478.76 for
merit,
lias
So
his
011
posits for each month in order to make the profit and
$478.76 in the overhead department.
on
he
schedule.
the income 011 loans for the 111011th,
Then lie figured out
June those
of these figures.
over every month all
go
desk that would tell him the story
the
required
was
the department
011
actually prove the result,
he wanted to get something that could be placed
the
how
notice, under the com-
Of course,
reserve
but
he
that
reserve.
and in
cities
you
Smith arrived at this point here in
always to
much
out
Federal Reserve Bank;
You will
banks.
department,
cent
per
to
loaned.
percentage of cash in the vault, and the percentage
mereial
only have another check
interesting figures to him, but he did not have time
were
He had to take,
find
to
those
7
follow-
From that he subtracted the
$1,500,000.
of
the
lie made
first mentioned,
to run the overhead depart-
him
it cost
items—because
ing
much money
how
out
these departments
he took
First,
gross,
149
sheet in front of you.
partments.
during
way you not
analyses, but
After
that he had really three departments
see
SECTION.
In this
known,
and
I
believe
that
this
system—or
a
system
somewhat similar—would make it possible to chart his
force understanding^,
and
thus enable him
to
steer
toward the goal of success surely and intelligently.
thank you for your kind attention.
I
150
BANKERS'
CONVENTION.
Operation of Country Clearing Houses
By Charles W. Watson,. Ex-Manager Kansas City Clearing House Association, Kansas City, Mo.
'
The
Country Clearing House,
ment of
like
institution in connection with banking
any other
ing real merit, requires
that
the
lack
of
be, how-
educational
general
any
It may
serve.
com-
propa-
ganda in connection with Country Clearing Houses
tially
incorrect
the
excuses
published
statement,
par-
in
officer of
the
Federal Reserve Bank, to the effect that, until
a
establishment of the Federal
Reserve
Bank,
no
di-
In
view
of
the
Hou§e,
realize that it is not popular to criticise any
in the
practically
on
which they show a profit of $103.00
Kansas
City
The actual cost per item
Clearing
during
House
the
same
The
per
item charges in the
from lc. to 2c.
vary
banks show
per
item.
Federal
Reserve
Banks
On this basis the twelve
deficit of $12,156.00, for the first six months
a
of 1917.
.
The average actual cost in the eleven Country Clearing
per
item.
The highest cost in any
of these Associations is less than the lowest
Federal
The
in jmy
cost
Reserve Bank.
'
,
given in the statement referred to for the
reason
alleged conditions
existing before the establishment
and others that I consider equally as reckless, that appear
the
to be
securing the co-operation of any number of banks."
reflection
a
on
the efficiency of the Country Clearing
the
period is 8 mills.
feature of
Nevertheless, in view of the above statement
handling
for the first six months of 1917.
Houses is less than lc.
protection afforded members and the
recognized possibilities of the Federal Reserve Banks, I
the system.
Clearing
The Kansas City Federal Reserve Bank per item charge
reet, economical and scientific method had been put into
operation for the collection of country checks.
the
is l%c. per item
a
financial journal and purporting to have been made by an
of
ment
-same number of items, is less than 8 mills per item,
possess-
publicity department to
no
mend it to those it is intended to
ever,
other depart-
any
Clearing House Associations, or, for that matter,
Federal
Reserve Bank
was:
" the
of
impossibility of
Our
Houses, I consider it proper at this time to make some
experience does not confirm this statement.
comparison between the work of the Country
establishment of the Federal Reserve System, the Kansas
Clearing
Houses and the efforts of the Federal Reserve Banks in
City
the same direction.
over
Country Clearing Houses, operating in territories from
which business naturally flows to the cities in which
located, are handling items as direct as the mail serv-
are
ice of the Government will permit.
If there was
ment of the
used
by
Reserve
the
Banks
several
United States.
the
scientific method prior to the establish-
no
Country
city of Boston
the
eral Reserve Bank of that
I understand the
Country
city.
requirements
to
as
Department of
This
situation, by
the
Department
of
the
followed, that
the
taken over by the Fed-
was
the two institutions covered
Boston
Houses
Clearing
Country
Clearing House Association
as
simply copied the methods
So closely was our system
of the fact that
territory and the
same
met
made possible,
was
reason
Federal
the
This
exchange, charges.
Reserve
territory
being Boston's natural trade territory, small in area, with
excellent mail facilities, and the Boston
ing brot their system
Federal
Reserve
to a high
Bank
tion in cost
Association hav-
state' of efficiency,
the|
has, I understand, been able to
operate it satisfactorily.
But there has been no reduc-.
the directness of the presentation of checks
or
in that district.
There
are
twelve
Clearing
Section
these
Reserve
Federal
Houses
reporting
Banks
operating
There are eleven Counto
Clearing
the
of the American Bankers Association.
located in' Federal
House
Four of
cities:
New York,
In New York the Federal Reserve Bank per
item charge
are
Reserve
-St. Louis, Richmond and Kansas City.
is
cent
one
and
months of 1917
to
the
of
a
New
The
the
cated
In
York
show
a
$18,265.00.
deficit
for
the
first
six
The actual cost per item
Country Clearing Hou*e is
51/100ths
the
are
Clearing House accepts items from its
territory
it
covers
in
the
same
form
deposited with the Federal Reserve Bank
handling cost for the first six months of this
year was
city
of
Louis
on
that items
and
they
N
St.
8 mills
per
item, while the handling cost indi-
by the report of the Federal Reserve Bank of that
was
12 mills
Richmond
per
the
We collected checks
nearly 6,000 banks.
in that territory, except
of
on
bank
every
few whose business methods
a
were such as to indicate dangerous
conditions,
whose
or
pro-
hibitive.
Since the establishment of the Federal Reserve
Bank
have had to add to the above class only thir-
we
teen National Banks.
Our Clearing House Association has
gone
the limit in
supporting, encouraging, co-operation with and " Boost-
ing" the Federal Reserve System.
We went
far
so
as
to adopt this rule: " All items which the Federal Reserve
Bank of Kansas City will receive from its member
without exchange charge,
Kansas City
Banks."
be accepted at
may
As
result,
a
our
banks
par
by the
member
banks
accept items and absorb the service charge of the Fed-
eral Reserve Bank.
We naturally
k
suppose
to remit voluntarily to
that any banker would be willing
any
Clearing House Association
basis equally favorable with the terms required by
on a
law and rules of the Federal Reserve Bank,
We have also added
list.
a
few State Banks, to the above
These banks charged
us
excess
actual
cost
Federal
to
par
in the past.
to the Federal Reserve Bank is beyond
standing—and
their part.
doubt due to
no
Why
The number!
Reserve
a very
the
a
under-
any
misunderstanding
on
•'
•
not
most gratifying to
co-operating is*inconsequential.
have the co-operation
of that
It is
large
tages of continuing voluntarily this most important fune-
tion of the banking system of the country,
Let
us
make
a
little comparison of the ability of the
Country Clearing House to
secure the co-operation of
the banks,, with that of the Federal Reserve
System. The
Federal Reserve Bulletin for August shows "the number
of banks
.
are
on
which) the twelve Federal Reserve Banks
prepared to collect items.
members
of
the
Federal
choice in the matter.
Bank
per
item
small margin of profit.,
Country Collection Depart-
This list
Reserve
System
includes
that
7.666
had
no
This list includes 249 State Banks
in the Boston District, previously secured by the Clearing
House Association- of that city.
item.
charge is l%c., which shows
while the
co-operation
number of bankers who show appreciation of the advan-
cent.
members
the
they charge the Country Clearing House and remit at
Country Collection Departments.
try
Clearing House had
3,000 banks in its trade territory, giving it access to
greed in connection with charges made co-operation
V
Federal Reserve System, there is none now.
The Federal
in
they
Country
Prior to the
other State Banks,
an
To this is added 8,556
unknown, number of which
were
coerced by the use of the Express Companies—a medium
far
more
expensive than
the
former
charges
of
these
CLEARING
►State Banks—and
the
Government,
medium of
threat to
a
the
Post
that powerful
use
Office
of
arm
Department,
transportation of funds at
HOUSE
another
greater expense
a
small
grand total of 16,471 banks.
a
Country
Clearing
Bankers
Association,
Houses
Again this, the eleven
reporting
prepared
are
American
the
to
items
collect
to
on
18,146 banks, without compulsion and purely voluntarily
the part of the
on
We
I
are
the
make
course,
it
that the Federal
Country Clearing Houses.
suggested
by
Reserve
Banks
This could
official—by
one
While there is
efficient system
can
an
through the Federal Reserve Banks, that
been
be handled at
developed to a
as
small
where,
degree
cost as they are now
a
handled through the
Country Clearing Houses and until
the Federal Reserve
Banks reach that point there is
to assume that the
reason
no
Country Clearing Houses are
supplanted by the Federal Reserve Banks.
to be
The Country
coun¬
try checks has been known to the banking fraternity for
of
A movement for the establishment
Clearing Houses
Country
in this country
all
ment,
On
items
through
(1)
except:
>
collected
to year, other cities found it
expedient to adopt this method.
As
cost.
with
items which
a
result,
do not get full
we
made.
It
often
several
terms
with
same
town.
members
the
This
have
bank
same
or
increases
arranged
the
laws
thority
not
-arbitrary actions
or
or
it feasible
will
two in course of
now
believe, effect
checks
some
au¬
better method,
will continue to expand,
city handling a sufficient number of checks
every
make
to
the possible invention of
yet suggested, this system
until
of those in
the part
on
this method.
adopt
organization.
There
are
This system could, I
further saving by arranging to exchange
a
between
Clearing
Houses.
This
idea
was
sug¬
gested by Mr. Ruggles of Boston in a very able paper on
the
subject of Clearing Houses,
1909.-
Two
three
or
years
ago,
published
Collection
Their
proposed that the Clearing Houses of that city and Kan¬
City arrang to exchange checks in this
sas
have delayed
In
on
deposit account.
We have
being obtained in this
instances in
I shall
refer
principally to the
naturally
I
am
a
very
tuted
that
Not
reason
that I
there.
you
will realize that
effective system when I tell
by
in Kansas City.
but for the
widely
known
you
we
have
that it was insti¬
organizing
genius,
Jerome Thralls, now secretary of the National
Mr.
Bank Sec¬
which
it
the
are
In
fact, as far as principle, is concerned, they are all
We may
same.
differ
as
to the method
of sorting
checks, handling transit, making settlements, figuring ex-l
change
all
are
and
minor
matters,
but
as
to
essentials
experience that the territory to be covered by
Country Collection Department should as nearly
as
possible include only the natural trade territory of the
city
in
which
the
Clearing House is located.
To
go
beyond that is to invite trouble in the form of excessive
charges, unavailable
receiving returns.
exchange
and vexatious delays in
I believe it is better to start with
a
t:o
the
to
secure
deposit
a
do know of several
we.
caused
of
dissatisfaction, result¬
when
to
up
the point
they send through the Country Col¬
when
as
sent
to
their
own
corre¬
It is just at this point that the saving begins.
spondence.
Instead' of each bank that may have items on a given
to the
a
letter, envelope and labor necessary to en¬
etc., they
Country Collection Department where
envelope and
one
member
bank
find that
on
an
relieved
of
handling the returns.
average, items from
four banks
through the Kansas City Clearing House
stationery
is
alone
letter,
transaction is used for all, and the
one
is
taken
are
one
resented for each two cents in postage used.
approximately
This does not include labor.
We
are
rep¬
The saving
stamps and
on
$35,000.00
year.
per
By far the largest item of
saving, however, has been in the exchange account.
Any banker, if his policy is to remit for all items at
actual
to
cost
to
him, say 5 cents
the extra labor by
save
endorsed
letter, would prefer
per
writing
one
by ten banks contained in
draft for items
letter
one
than
to
write ten drafts for items endorsed by ten banks enclosed
many
letters.
those
who
as
with
their
able
terms
have
a
for
The
seek
customers'
bers to handle
is true, in
same
make
to
checks.
a
This
has
customers
On
the
question
that
there
than
our
mem¬
on more
favor¬
otherwise
The
of exchange we
is
cost
a
to
be
have always
absorbed
principle of
recog¬
somewhere
in transferring
.
,
the
would
■1
along the line because of the necessity
mit
lesser degree,
enabled
large volume of business
their
a
profit in remitting for
been possible.
nized
our
rule has always been that
remitting bank to fixe the rate.
we per¬
We designate
the points on which we can collect items as Discretionary
points and Common Charge Points.
can
practically the same.
It is our
the
other
the
cost
expense
known
never
and
way
has
same
in
ready for the letter of transmittal
Department
funds.
tion and Clearing House Section of the A. B. A.
the
the
bank
theory is, that by estab¬
handling cost to member banks
lection
,
familiar with the operations
more
however, that
sure,
one
arrange
ing in the loss of favorable terms to the Association.
in
this subject.
discussing the operation of Country Clearing Houses,
that we claim any superiority
am
We
manner.
action pending the outcome of the present
general agitation
for
other
Department and at increased
members that send direct.
in the year
Mr. White' of St. Louis
no
through the Country
close, address, trace in case of loss,
discriminating
by
we
proportionate
try
Unhampered
after
some
those members who continue to send
a
be
'
credit for exchange
happens,
point using
Houses.
such
can
exchange charge.
large cities and a number of small ones operating Coun¬
Clearing
corre¬
with
accounts
(2)
Depart¬
regular
bank to remit for items without
exchange charges,
a
find
we
There are now eleven
„
to
exception results in the Clearing House get¬
same
the
As the country developed and the volume of
checks increased from year
Collection
direct
ting. all the high cost items and not all the low and
is
put into operation in
was
without
or
required to col-
are
Country
sent
towns.
own
otherwise
the items
city,
as
carrying deposit
their
on
the
items
(banks
The
of that
territory
they
where
Bank
whether
to
differ¬
some
our
not
in 1877.
1899.
which there is
on
Association, part of
through the Country Clearing House.
items
present system, now operated by the Federal Re¬
serve
year
first
was
considered by the bankers in the city of Boston
Their
one
our
principal territory the members
,lect
items the members
lishing this direct connection they may ultimately
Clearing House system of collecting
nearly sixty years.
In
optional with the members
reductions
possibility for the development of
has not yet
system
items
Country Clearing Houses.
a
opinion.
This last
admission of the superior efficiency and more economi¬
cal methods of the
is
other department.
some
of
ence
members)
This, however, would be merely shifting the burden and
an
lection Department is
item
the per
be made for the
required to collect through the Country Col¬
spondents
charge from the Country Collection Department and ab¬
sorbing the cost in
be
be done—as
eliminating
conditions war¬
as
can
The question of just what class of
should
our
impracticable for the banks to continue
satisfactory arrangements
handling of the items.
collect
r.
adding to that number daily.
realize,.of
could
remitting banks.
151
territory and gradually expand
rant and
than the average exchange charge made by banks—mak¬
ing
SECTION.
arrange
exchange
cost
without
charge
a
without
of postage,
all members
and
with
are
All points where
deductions,
are
listed
as
other
charge.
such points
as
to
cover
the
on
such points
On points where the banks
for remitting, we obtain the
list
than
Discretionary points, and
allowed to accept items
exchange
we
bank to remit promptly in acceptable
best possible rate,
Common Charge,' at the quoted
rate, be that 10 cents, 15 cents or 25 cents per hundred,
BANKERS'
152
and
members
our
are
advised to charge a like rate when
By this you will
accepting items on such points.
are
sel
line until it reaches the drawer of the check.
some
It is then
question between the maker and the bank on
drawn,'as it should be.
that
do.
We have
loss to our members of about
that
$20
was
month.
per
bank
heard from him.
We
have another
the
bank
but
for
Then we
are
mild to what this fellow
We-placed.that bank on the Common Charge List.
In a
on us
with the United States
Attorney and have us prosecuted.
We told him we could
90c.
of
They
re¬
We wrote
do
easy to
of
$10
and yet
less,
to have 110
as
as one
legitimate.
as
not required to charge
are
or
exchange on
sometimes sustain
we
lpe. or 15e. 011 such checks.
few
so
the other and just
as
a
While these cases
appreciable effect when taken
business, they are the cause of a
banking
sys¬
We believe an effort should be made to
tem as a whole.
support of all fair-minded bankers in putting a
enlist the
stop to the practice.
We
.
recently adopted the following form to be used on
checks drawn
011
banks that persist in making prohibitive
charges:
and among other things
threatened to take the matter up
item
an
great deal of criticism being directed at the
time had been charging the Collection De¬
some
partment at a rate that netted him about $30 per month.
them
neighboring town for 75c.
a
into the total volume of
in Kansas City,
no account
on
letter and told them we did not understand why
charge of
pending, where we found that
case
question carried
in
We sent
draft
Our members
items
/VT:C\":V'V -'.V "-T:." ft--'1''
'■
ciation.
When we
do to the Kansas City Clearing House Asso¬
proposes to
should be taken to eliminate this
did not keep the 75c. and send us the 15c,,
was as
What Andrew Jackson did to the sec¬
Bank of the United States is
ond
a
a
they
a
revised guide, at the close of the month, this
included in the Common Charge List.
was
Missouri.
them
on our
causing
we
are so
One of the worst cases I have in mind was a small bank
We immedi¬
ately wrote the cashier but received no reply.
our
concerted action
turned
attention was called to a bank
Just recently my
which
I11 the interest of good banking, however, I believe
ves.
in
few
a
on
practice.
'
Discretionary List, charging at a rate
issued
which
It would seem that, no banker
y
consistently object to this plan.
could
banks
are
In fact, this class
few that we have seldom taken any action to protect our-
endorsers, who can, if they desire, pass it 011 down the
a
Usually these
highest rate.
only receive an occasional item.
If
charge is made, our members charge it back to their
a
few, however, that refuse to confine themselves to
a
our
see we
the rate fixed by the remitting bank.
simply apply
CONVENTION.
the cashier called
few days
We
refuse
items
collect
to
the Government could
how
consistently make us
not
see
pay
him exchange that we did not receive. His position is.
is
office- will
This
absorb
that
members should he able to make sufficient
our
the
promptly
accommodate
bank
any
handling,
of
cost
account of
on
charges.
letter amounting..,
our
......
absorb.
to
care
we
including
clearing its checks and
postage, providing it remits
by
without discount.
profit
Clearing
Cm*
Kansas
House
Assn.
the accounts to which the checks -on his bank are cred¬
on
Where
ited,
He is not
to discount these checks.
allow .biin
to
particular whether the members pay a less rate of inter¬
est
to
that happens to be so unfortunate
the customer
come
into
we
do not want to go to the extent of refusing to
handle tlie items but
attention to
possession of cheeks on his bank.
All he
merely want to call our endorsers'
charge, we use the following form:
a
rate for money
deposit, or charge a higher
the
011
loaned
as
bank
.from
than
more
this
on
They deducted
which
The.
"regular charge," as he
wants is to continue to make his
termed
basis
have us accept his checks 011
it, and
as
we
do
checks
banks that do
011
the same
charge ex¬
not
.Bank
from
Your
the fellow has convinced himself that lie is
of
,.,
of
letter
our
proportion of this is.
Please
this amount
charge
rule
Our
ductions
is
absorb
to
made .by
bank
to endorsers
all
cost
on
which
The strange part of this case is, I really believe
change.
Bank:
v
The.
deducted
of
items.
of
handling and
items
Kansas
are
only
charge
back de¬
House
Assn.
drawn.
Clearing
Cm-
right.
believe
We
One banker wrote us that if we did not remove
these banks
that
that
make
unreasonable
his bank
detriment to the banking system as a whole.
List, he would hold up our let¬
ters, and wanted to know what we could do
about it. Our
reply was that we did not believe that he wbuld be
of such a dishonest
practice.
If
so. we
guilty
would simply re¬
are a
Just
from the.Common Charge
charges
bank failures cause a general feeling of distrust,
as
these
exorbitant
There
returning
fuse to handle checks 011 his bank,
maker with the information that he
We have
sions
our
case
a
the
same to
withheld remittances.
change
five to ten
outstanding from
territory
and
days. The deductions 011 these letters were $10.
entitled
were
the extra time
to interest on the funds for
Up to date I have re¬
outstanding.
items had been
the
We wrote
any.deductions, that we
the bank that instead of making
new
We have made this, a Common Charge
reply.
explanation
point, and if we do not receive a satisfactory
and
a
refund
of
this charge,
'.
items
on
.
-'
We find that
are
some
where one of
bank
with
and have sort of
■
0
f
a
before getting
a
monopoly of the
We have had cases
in the same group
o
draft 011
and that bank in turn
bank in the same
still another
mail three or four letters
final returns 011 items drawn 011 banks
of
most
bankers that refuse to be
itations.
In making
than two or three
of
with are those few
governed by any reasonable lim¬
rates it is impracticable to
quoted rates.
have more
It would seem that rates
10c., 15c. and 25c. per hundred
sufficient latitude to satisfy any
capital
in
dollars should afford
reasonable person. There
oil
new
fields developed
Banks are a great con¬
At first deposits are
largely
could not make a reasonable
invested
out
of
loanable .funds.
risk in connection with the
these communities
than
in old established
If tlieir charges are less
than express or
post-office rates, instead of it being a tax 011 the'commerce
of the
country, they reduce the cost of exchange and are
great assistance in the development of
of
tlieir respective
sections.
The competent
banker knows better than any outsider
when his busienss lias reached the
'4-
advantage to reduce or eliminate
point where it is to his
exchange charges and
depend 011 the greater volume of business which can
be
created thereby.
Where banks make
annoying eases to deal
rather heavy ex¬
-
spring up over night.
the
011
business
where
.
section of the country new mining
There is also a much greater
this character.
The
feeling of resentment
agricultural lands being opened for settlement.
communities.
-
a
points
legitimate.
temporary, and these banks
thfese banks would remit with a draft on
We occasionally have to
group.
•
of the most unreasonable cases to
banking business in a certain section.
remit
.
those where one man or group of men con¬
several banks
another
•
are
venience in these new towns.
that point.
deal with
trol
will refuse to handle
we
.
of course,
being discovered,
is
New towns
return
ceived 110
are,.
charges
In the great Western
pending, in which on two different occa¬
letters had been
charges cause
against the hanking system generally.
reasonable charges, remit promptly
in
acceptable exchange, and*these rates are
as
in the case of those banks on our
—it is
a
fair, open, business proposition.
different from those cases
rive the advantages
at
published—
Common Charge List
It is entirely
where the bankers seek to de¬
of being 011 a Discretionary List
the same time discount
their own checks.
and
CLEARING
I
can
where
see
it
Government to fix
rate to
mum
lie
theory,
same
might be
charged for the
they
be
of
thrifty but reasonable.
On the
money.
maximum
rate
be
to
The large majority of bankers doing
It would seem
vast agricultural territory of which
if that is done, to also limit the amount of profit to
derived from the business of buying and
The
eign Exchange.
amply able to take
Far
of himself.
care
more so
than
-
Government supervision of any
I
believe
change
to
the
in
ments
have
that
charge
we
and
learning
are
the
with
relations
in
banks
time
ican
Credit
factor
a
I
elation.
I
cordial
Credit Men's Asso-
the Boston
greetings from
always ready and willing to assist you
are
the credit system of this country for the protec-
necessitates the exchange of information among
of credit grantors
Credit Interchange Bureau'has natestablished
them, and the establishment of the
A large number of these Bureaus have been
urally followed.
,
to members
possible way.
every
The development of
tion
accrue
and of the influences they exert
feel that credit men in all lines of business are
sure you
am
benefits .which
use,
that it gives me much pleasure to accept your
extend
by affiliated branches of the National Association of Credit Men throughthe United States.
These Bureaus also endeavor, through uniform
out
action,
to
to
credit.
If
credit
evils
correct
certain
a
and
reforms
to
are
safer for all
instituted
be
credit transactions
which exist in
abuses
thereby making it
extent,
progress
or
to do business on
is to be made in
granting, bow better can it be done than through united action?
do collectively
The
underlying
principle of progress
that
which it
impossible to do individually.
good
for all should prevail over the immediate advantage for one.
As
reason
a
is
condition,
that
financial
aceepted
as
of
true
their
with
worth
a
a
In business the common
large
tell
of
should
You
business,
that
a
the
is
past
ten
condition,
I
have,examined
which
days
manner
were
had
increase as
exceedingly dishonest.
also
have
having but
can
you
of
in
mind
blank'
a
them
are
the
large
Tbe Bureau
the
buys,
how he
accounts
value
the
their
to
Is there
Credit Bureau?
of merchants
doing
limited capital rating, which means
largely a moral risk.
In what better
or
check them on this basis than through the use of the
which comes to the knowledge of credit men
of
information has a direct influ-
credit.
is also of the greatest assistance
buys,
and
the
or
the
in passing upon credits,
furnishes, one can quickly learn where a party
it
references
From
new
ignorance
The information
in the granting of
ence
number
state-
though
manifestly false,
imagined an
looked
which
co-operate in the exchange of credit
who
or
which
financial
two
Either the debtors were in
they
or
shrewdness
majority
Bureau?
profit
true conception of the purpose for
made.
basis for credit.
1
own
by their crude
these,
better way to check up these statements than by the
any
their
determine
can
number
whether they have made a
what expenses have been incurred in conducting busi-
statement
within
inventory,
an
a
cannot
and many arc without a
ness,
ments
can
men
authority that only a small percentage of the
taking
and
of accounting,
not, or even tell
a
in
merchants,
financial
methods
is that
in the exchange of credit information, it
for co-operation
has been stated upon good
smaller
if credit has
l>eon
refused.
In the opening of
investigation of slow or unsatisfactory accounts,
is unquestioned, for by its methods of oi>er-
Bureau
'
a
the standing of a
tion
customer can be determined
possible through any other source.
not
The plan
Association
code
with an exactness
'
.
of the Credit Interchange Bureau of the Boston Credit Men's
provides
This card
office.
for
a
reference
card
system
in
the
Association
the
gives only the name and address of customer and
number of the Bureau
members selling same.
joining, the member furnishes the Bureau with a list of the names
In
and addresses of his customers,
Bureau
which
files under the number which
are
checked
upon
the cards in the
has been assigned to him, and
original list is then returned to the member.
These files are in' the custody of the Secretary and his assistant,
are
/
the
and
inacessible to all other persons, including the officers of the Associu-
tion.
The
that
the
Country
and
scientific
handling
of
country
Bureau "
operation of the Bureau is simple.
a
either by messenger,
members selling such party.
and same are entered in regular form, thereby kepelng the Bureau files
up-to-date.
If this is not done they lose an important part of the
Bureau's service. Members cannot be informed of an unusual number
of calls for references on a customer, apparently overbuying or getting
slow, if their number is not listed on customer's card in the Bureau
files,
The Bureau furnishes references under the following conditions: when
inquiring member has an open account; a bona fide first order; or a
direct application for credit.
"
There are numbers of cases where parties build up their credit by
keeping accounts good with a few houses, simply using them as refereuces in order to secure goods from other houses.
From the Bureau
you get all the references on file, which serve as an added check upon
the buyer.
.
Some other advantages of the Bureau service are:
Direct inquiry upon those interested, meaning a great saving in time,
and fostering the spirit of friendly competition; all information the latest obtainable; knowledge of the source of your information; interchange in many lines of trade not necessarily confined to competitors;
interchange with affiliated associations in all parts of the country; no
information given without receiving its equivalent; elimination of the
undesirable buyer to a great extent; aids in keeping tabs on special
accounts; saves the time of the credit man, which is an important
factor; tells you whether your customer is paying the new creditor
promptly and allowing you to wait; tells you whether a customer is
overbuying, or is buying in other than his legitimate territory; invalliable in passing mail orders, doubtful orders and store sales for irnmediate delivery; saves you from loss that comes when a well-rated customer
tries to open an account with you after having been refused further
credit by your competitor because of slow pay.
Such situations are
occurring every day.
Many business houses have thousands of dollars extended to old custoiners. These accounts are carried and figured as tangible assets. The
credit information files should be kept up-to-date and new information
requested at regular intervals, and for this purpose the use of the
Credit Interchange Bureau will be found most beneficial,
One of the functions of the credit man is to secure a proper and effident investigation of the character, capacity and capital of the customer.
Is there any good excuse for the credit man not to know of
these three " C's " in business, when lie has the Bureau at his* disposai?
It is, therefore, the duty of every business lioqse to surround its credit
department with every safeguard for the proper checking up of a custurner's eredit standing;
It is also the duty of the credit man to take
advantage of every method at his command to further the welfare and
prosperity of his house, for its success depends largely upon his sound
judgment.
Successful credit granting is neither measured by the small number
of bad accounts, nor by the large number of orders turned down.
It is
easy to pass orders on parties whose credit standing is unquestioned,
but modern business demands that reasonable chances be taken, dependiug upon the credit man's collection ability to collect the accounts,
The efficiency of a Credit Interchange Bureau depends to ii great
extent upon the cooperation of its members.
It is really a part of their
own
business, and practically all the members realize this and give it
riose attention, the same- as they would any other detail of their busi-
I
us
certain party he communicates with the Bureau .office,
mail of telephone, and receives the names of the
The member then refers directly to these
members, who are interested, thus obtaining reliable and up-to-date information, when such information is most desired,
Members report to the Bureau all new accounts as soon as opened,
mution on
'
life.
commercial
our
to
and
friends and that they
your
in
in
assure you
can
invitation
The
Interchange
»•
and
convinced
checks.
Clearing House Section of the Amcr~
of the
their establishment
has
Clearing House is the best medium yet devised for the
direct, economical
Convention to speak upon the subject of
your
Bureaus,
Interchange
through
as
invited to
reduced cost to the Associated Banks.
territory are very
Association:
Bankers
been
a
experience
Whiting, Secretary of the Association of Credit ,Men, Boston, Mass.
President and Members of the
have
Our
improve-
making
Credit
By H. A.
I
Iq spite
of business handled in the year 1017 lias been lian-
died at
with, in the main,
our
:f <
Mr.
This is double
three times the amount handled in the year 1015.
to year, and while we
troublesome cases to deal
some
bur
1017 the eleven Country Clearing Houses reporting
the number handled for the same period in 1010 and over
ex-
better notice than the published
even
methods from year
our
typical of the territories
their checks, is worthy of considera-of the increased cost in labor and supplies, this vast vol-
on
This would be
believe
is
700,000,000 of so-called country checks.
that
guides of the Clearing House Associations.
I
section
to the American Bankers' Association collected over $1,-'
checks drawn by their customers be required
on
print the rate
tion.
year
kind.
that banks
suggestion
our
I am proud to note that for the first six months of the
a
great number of which are not subject to
a
take it that
I
represented by you gentlemen.
large number of people who do business with Foreign Fx-
change houses,
business in that
Kansas City is the
business center, want only a square deal,
selling For-
American bank customer is
average
Our correspondents are, with few exceptions,
pleasant.
fair and honorable in their dealings; shrewd but honest;
charged for the transportation of money.
proper,
153
SECTION.
They fix the maxi-
use
the
fix
could
function of the
proper
a
maximum rate.
a
HOUSE
When a member desires in for-
ness.
BANKERS'
154
If
is not often taken into
the Bureau that
feature of
another
Is
There
consideration, and that is the fact that when
CONVENTION.
member, if an
you are a
customers, the receipt of £he inter¬
without your initiation,
first order, or feels that the
condition of the account from their standpoint requires looking up.
This reminder comes to you automatically and is most valuable.
Again, it is found that retailers have a habit of spreading out too
much in their purchases.
You can hardly blame them when they are
so persistently solicited
for business.
Such a course eventually means
disaster in many cases, and it is found that when the end is reached
inquiry is made upon one of your
to
had
debtors
some
member
other
some
from
received a
has
if
fortify
you
the Credit Interchange
credit department with
your
more
Of course there; are exceptions,
creditors-than their busienss warranted. :.
but
hundred per cent,
to three
hundred
two
To
launch
would
also
In
business, there is the ever-present necessity of adding to the
losses from bad debts at
of doing
the
such
though limited for the time being.
even
would
heartiest co-operation and
require the
large representation of banks to make it effective.
a
not try to do too
that
at first.
to
the rule,
It is
endeavor
much
organizations
rather
much
too
cover
at
not
They
adopt
to
too
enforce
participate
in
development
Loyalty and enthusiasm of the members are
developed.
are
necessary.
other
the first thing
Interchange Bureau,
policy that would be co-operative and at the
rather than beginning in a modest way and progressing as its
requirements
Do
Credit
a
a
plan
a
require
exception,
the start,
rules;
(hern.
factors.
most important
is
it
thing to make
one
and an¬
rules
in
procedure
complicated
Requiring
order
to
detrimental
to its
thereby inviting lack of co-operation.
This
facilities of
the
and
the two
are
many
progress,
the
will
Bureau
be
lessened efficiency and service to all members.
The
competition, and constant increase in the cost
days of keen
these
than
also
organize
to outline
They should
means
Bureau, yon will have less use for the Adjustment Bureau;
bankers
time produce results,
same
change information blank is a reminder to you,
that
the
be done is
information
secured
should
held
by banks
beld
be
confidential nature and when
confidence.
This form of credit
is of
strictest
in
volume of business done as well as keeping the
Information cannot be built up without
the smallest
a
fidence.
possible percentage.
A member should
personal
a
detail;
in
full, otherwise it is of
inquiries. "Write
He should not evade answering proper
information in
brief, practice the golden rule by answering the Inquiries of
if
letter
members
other
heartily by answering all inquiries
always co-operate
him promptly, giving information in
made upon
doubtful value.
as
special
forth
setting
necessary,
Such a course
would have them answer yours.
you
is
question
no
less
and
Many believe in the beneficial results of the Credit Interchange Bureau
their support
decline
but
do
and
cess
the
but
get out of it,
fair consideration of the advantages of work¬
tending for a
rather
wholly what do
not be
line of business to belong
he
Credit Interchange Bureau, it certainly
to a
Without doubt, this same
equally advantageous to another.
principle of community of interest applies to
chants.
v.,A;:;A:
A;:;
the
matter of declining membership in
that
the
principal reason
and
petitors,
that
whom they
or
frequently have
up
described
its
how such
A
so
too strongly condemned.
the Bureau, as there is
to deal
Is
tem
ions,
sive
maintain.
to
value
as
and
with
proposition, and
checks which pass
of depositors
and is less expen¬
understand
offered in
the commercial
that
all
from
the open
banks
many
of business
names
through their banks;
object to such
would
a
bank could, if it
any
houses, taken from the
really the filing of the names
so
as
result
basis.
large banks maintain extensive credit departments, and while they
All
and
would
Bureau
in
subject of
discussed
miliar
with
these
threadbare,
Francis Coates,
" Standardized
fully
in
the
is
for rediscussion,
consideration
by
The
those
is
of
of
convention
ized
in
forms
its
forms
by
of
its
as
a
future
the
of
will
Bankers
and
it.
and
the
be established
bers
with
When
from
that others
it is believed
banks,
may
distinct
have
been
special
the
its
have since
and
;'
become
established
was
much
proposed
they have,
As
was
interested
committee
the
no
are
you
on
forms
the Convention,
find
in
to
of
action
on
had
in
a
frankest
ent
of
set
this
at tbos
financial
and
bank
every
the
use
us
end
never
and
Kansas
So
while
with
know what it can do in the future to solve
we
if
the
Convention
development
and I
completed,
in
the
we
here let
are
August'4,
1915,
taken
was
and
of
the
work
gratified
published,
to
though our efforts and struggles
in
which
the
435
Clearing House
to
Association
standardized
in
forms
statements,
a
feel
resolution
were
recom¬
for
A.
been
A.
A.
before
represented;
the
of
also
and
been
have
of
reason
worked
out
this
which
the
Gulf
,
fostered
either
bankers,
of
of
or
ex¬
or
direct
inquiry
Federal
result
that
by
use
our
National
forms
this belief and
our
problems
the forms
understand
are
as
to
contain
the man¬
Cleveland,
in
printed in
be
the
submitted
Convention.
captions of
the accounts appearing in
liabilities
and
I
to some
the
approved by the
believe
to
us
from
been
not
the
is
have
to discuss before you
the
questionnaire is
has
in many
have sup¬
we
forms
coasts.
widely recommended for
leads
Journal;
assets
sections
forms
and it is by
forms
largely
been
houses
of the
extending
association
but
men,
have
the
has
show that
to the Pacific
State
or
the
banks
all
by
use.
use
copies
States,
distribution
that
warranted
approval
tions,
adopted
their
records
my
million
twenty
wide
examiners,
Realizing that
the
this
1915,
enjoying
community
our
standard, in other Clearing Houses and
today
throughout
and
bank
schedules .-of
various
as
commercial
or
which
I
August,
uutil
points of merit,
August
in
were
and also in banks and business
National
any
Bank
State
that
you.
cities,
that
by
this
hanks
forms
and from the Atlantic
men,
in
the
The
since
interim
Investigation;
Reserve
ner
of
aggregating one-half
fact
tended
and
all
by their adoption,
Canada,
The
*
privileges.
institutions
that
of
the
difficult
are
(Applause.)
House Association.
of
use
House
orders
of
in advance of
of all
the human race
through co-operation
exception, and have since been in constant
smaller
learn
B. a. Journal, where
of standardized financial
by
the
de¬
I
long as
so
endeavor to progress
us
even
Clearing House cities,
and
year,
end
never
to the end that success may be achieved.
the
to
without
credit
the Cleveland Clearing House Association
adoption
having been
mended
Clearing
the
last
But problems will
would all practice it.
we
Improvement will
fellow men,
our
many
City
.-'A'AA-A'-:.>
.
inhabits the earth.
of
institution
credit information
bouses exchanging
■
and
credit
the
to
commercial
and
in the August number of the a.
perhaps aware,
A"''.their place to-day you will
co-operation has done in the past in the successful
problems confronting
in "the
adoption
and
operation they have accom¬
one-sided affair, and that they are in a sense depend-
a
know what
extended
at
opposition
was
but many of these
for they realize that this kind of co¬
possible manner,
each other.
upon
We all
under
being the standard¬
as
their
extend
forms,
been
there
..most active members.
our
great extent disappeared, and in
a
operation is not
plied
practically
financial
the
credit
A.
■
Boston
of the Credit Interchange Bureau is co-operation,
the> most successful busienss
the
importance
just
some
Through their efforts the old-time methods of secrecy and unfairness
have
and credit organizations.
doubt, been brought to the attention
pioneer
formal
passed
at
,'*/ .'v.sj
.
in
apathetic attitude from others,
in the short term of years they have been in
During
credits—bankers,
from
nevertheless
and in the end there
will co-operate,
success.
an
The foundation
fre¬
at
constantly
I
fa¬
worn
■
appointment
opposition
strong Credit Interchange Bureau serving its mem¬
a
Bureau
our
some,
of
adoption,
the country.
Since
been
recurring
with
Association,
Association,
every
that
one
I believe,
have
almost
contact
Is
are,
to
This action will be far reaching
methods
undoubtedly
practically
you
special committee will present,
approval
members
them
partments
in
in
iuterest
recommended by
on
States,
of
enough
and being kept
come
American
for
to be
effect
United
the.
forms
statement
old
comparatively ' new,
particular
time, and in this meeting,
be
would
opportunity is there, and If the initiative is taken by a few of the
the
Jr., Examiner, Cleveland Clearing
Statements"
most
credit men in various lines,
men,
subject
who
and
While
still
quent periods
commercial
Financial
past,
discussions.
the subject
Clearing House.
quarters against a Clearing House taking up such work, but
Departments of Credit
By
The
establishment of a Credit Interchange
what'there
but
doubt
no
the
with
connection
is
adjuncts, they could be saved
be necessary
continue to
lot of unnecessary work by the
a
but a
being that inquiries were not conducted on a retail,
wholesale
are
the <?ame name as there were banks in the city,
inquiries on
many.
the
to surmount,
would be of little moment.
that every name
and
considerable amount of in¬
a
quiry, and instances have been known where a single bank has sent out
Standardized Financial Statements and
have
sold by brokers finds its way
paper
United States,
the
over
market is subjected to
solution of problems,
.'^."a'-A-
#and addresses of depositors would be of little
names
record of the
a
slight modificat¬
some
proceeding and be unwilling to file same, although
desired, keep
must be operated
the card reference sys¬
jA'::"A;;;\,
credit
a
to be effective,
requirements of the banker,
.
is
would be of benefit to the bankers.
This plan of operation,
listing of the
Bureau
be. considered
thing to
the credit of borrowers,
with
to meet the
Interchange
Credit
the
the next
Interchange Bureau,
suggested.
seems
The
of
merchant?,
Bureau, if established,
Credit
reports and made them a
Bureau which Issued
a
plished much to safeguard credit granting.
operation
the
by the
use
a
bank
as
This angling
this'situation.
rule covering
Having
that of the house
prospective customer with a view to sell¬
a
satisfactory, cannot be
are
known
account, to see if they actually are
an
Such procedure is eliminated by membership in
through
It is
com¬
number of bouses
a
This not only wastes their own time but
ing him if reports
a
it would seem
Bureau,
to co-operate with
they call, in' searching for credit experience.
whom
credit Information upon
for
the
confidential character that could not be collected
a
of record.
There
clerk call
a
think might be selling
not.
are
upon
well as mer¬
as
the credit game alone.
to play
the desire
houses
some
bankers
unwillingness
an
I
the personal element
situation and brings
the
enters
This oftentimes results in the exchange of
co-operation.
through
compiled
matter
A
.
In
is
we
conferring together
men
closer
credit information of
If it is advantageous for one
ing together for the best interests of all.
must
suc¬
well as financially
work must be morally as
practical
The Idea should
supported.
These Bureaus to be a
by riiembership.
credit
a
who have had former experiences with the party
or
is very important, for it is here that
upon,
into your banks
than by any other method.
expensively
the
about
their accounts in a better man¬
credit information credit men can gxiard
ner
the exchange of
through
co-operation
by
that
inquired
of
discretion, co-operation and con¬
furnishing to inquiring members of the names of other banks at
present interested,
and
promotes co-operation and friendly feeling.
There
The
country,
fact
that
subject
are
and
the
to
the
brevity
to
local
various
or
the
the
formal
conditions
lines
of
in
business
exhaustiveness
of
dependent largely upon local or personal considera¬
that both may
be amended
or
corrected to suit the special
.
conditions, I offer
will
take
comments on these points, feeling sure that they
no
of
care
the
banker
the subject.
the
nature
themselves
the1 general
in
The scope of the questionnaire is
prsonal
in
the
banker
between
equation
in
as
other
no
who
my
opinion
downright
are
would, no doubt,
poration,
which
be largely
account
other
if
not
made to
being
are
to say
and
omissions occur in
Partnership
and
Cor¬
man,
or
for
of
the
account
of
V '1
of
statement
and
profit
provision
that
show
will
The
the following
House
mode for
for
Sales
Gross
Net
yeai*
the
:
profit
"
•
to
carried
Amount
Amount added
-''V;
them,
and
additional
I
will
to
ask
to net worth.
accountant or credit
and further analysis.
you
to
mean
accountant
the
form
follows:
as
'
CONDENSED PROFIT AND LOSS
.
;
index
say
much time in my
of the greatest
reference, and this index is
Department.
rapidly
As
as
" duplication"
a
more than one bank,
" duplications " in borrowers
from
original
the
and I
approximately
contains
now
an
borrowing in
is,
transferred
are
whether
determine
to
system of indexing,
the
All names are
individual is " dupli¬
By an elaborate
"duplicated borrowers,"
term
file
when
inquiries
disclosed,
is
index
to a
file
might say incidentally
thousand names.
six
are
Imme¬
niade
ou
...19......
INCOME
■
■
MERCHANDISE CON¬
NET SALES
CONDUCTING BUSINESS
Insurance, Etc.
FROM
INVESTMENTS
ON
DISCOUNTS
FROM
PUR¬
CHASES
OFFICERS"
-
FROM OTHER SOURCES—Itemize
MONEY AND BONDS
INTEREST ON BORROWED
so
shall cite my own records
going into the details of
a
system of reports from
Without
that by
STATEMENT FOR FISCAL YEAR ENDING
Including Rent, Taxes,
SALARIES PAID TO
the
with Clearing
to do
consider
I
operation of our Credit
names
I
SUMED
ACTUAL EXPENSE OF
which
for instant
arranged
in-what banks.
the
diately
■
has
me
necessity I
Cleveland.
borrowings—that
his
this
to
shall have to deal with the latter subject
that I
community.
our
this
to
what
that
EXPENSE
COST OF MATERIAL OR
in
real
of
of which you have copies before you.
You
second page of each that they are drawn up In proper
resolution from this body recom¬
supplied with the name of every borrower in
the
so
to
to ...the
will
are
if
it would seem
recommendation
I
bank
occur,
by the Cleveland
refer to the three forms Issued
tenable,
is
names
and
very
a
office
my
of
cating "
little without
very
Clearing House Association,
will note on
bank,
referred
in which I have mentioned
man
is
the meeting of the Clearing
for
have consumed
I
items,
matter of
a
in
basis
an
data
As
these
•'
other
lines, it
by
operandi,
modus
every
'•
■
reserve
the forms In the order
in
appear
to
in this is
subject assigned
foregoing
the
briefly.
each
partners
standard
as
incorporation of these two vital features in
finally approved by the Convention.
the
organization
our
distributed
Depreciation charged off
These
of
and
Other income
Amount
of
very
a,^
national
a
valid arguments or con¬
and incorporation in the
any
tomorrow',
form of a
the
in
possible importance,
.
profit
session
its
Departments of Credit.
discussion
•
is
they are
as
balance
A reference to the
loss.
is
in
proper,
statements
.
adoption
its
against their use
position
if my
and
mending strongly the
net
the adoption of
in
I do not believe that
be advanced
can
Convention
and
in
result
individuals
many
Section
House
as
Association
Bankers
American
the
other points;
on
forthcoming
arguments
and
comments
many
desirable to have the matter laid before
me
reconcilement
a
by
matter.
siderations
condensed sttement of the profit and loss
fiscal year,
past
forms
to me
statenients,
provision
open,
eyes
undesirable from
or
commercial and financial
that the consideration of these two vital points
by
important
merchant,
collateral with
unproductive
the
these and
undoubtedly
and
seems
the forms issued by the
credit
or
will
bodies
without which, the real value
and
banker,
keen
the
for
forms
use
Very
industrials?
affecting a large percentage of the banks in the country,
wide prominence given to it by its adoption by the Asso¬
the
as
ciation
two very important considerations which
suggested
forms
of
be
will
there
quarters on
proposition,
'
the
set
a
the
best serve
lost.
First—Condensed
proposed
accounts:
for which they ask,
cull
to
collateral
of the
few in
of this form in Cleveland has
as
knowledge
competent
this form of
accept
instances
many
doubt
the
to
in
while the
to
a
local
of
files.
his
No
of Credit Men,
surplus.
or
and
from
provision for a
for
Second—No
worth
B. A. com¬
have
stocks
to time
time
offered from
are
which it
various and
in
loaning value of stocks
bankers
held
bankers
our
quickest Insight of
and
is the information
to the banker,
and
which
many
closely
community,
average
enabled
but in
impertinent,
These are—
First—No
the
This is il¬
impudent," and
surprise to him to know how, by diplomatic
same
Association
statements
the
will
being embodied
How
the
and clearest
keenest
the worth
to
corporations
of
his
risk.
his
importance also,
loans.
value
'
in
omitted
and
to
of
as
sundry
a
necessary
statements analyzed some
" of
the information
however,
to me,
are,
been
National
of
be a
needs.
There
be
educative agency!
great
a
" impetrinences"
these
handling,
have
tangible
so
not
creditor
or
equal
conveys
information and data which could be se¬
is
saying that
as
exhaustive in
not only
bankers'
It
way.
quoted
is
are
it
not
by the comment of one of the members of the A.
luminated
mittee,
is
would
although we know by experience that its
latter,
in
borrower
and
communities,
smaller
the
in the statement brings forth
cured
Of
largely dependent on local conditions.
questionnaire used in the larger communities, where the
The exhaustive
consideration
discussion of
155
SECTION.
HOUSE
CLEARING
OFF
BAD DEBTS CHARGED
DEPRECIATION CHARGED OFF
.
■'
■
*
'
.
NET PROFITS
«
TOTAL
TOTAL
f
"
RECONCILEMENT OF SURPLUS
UNDIVIDED SURPLUS AT CLOSE OF
LESS CHARGES NOT APPLICABLE
ADD
PREVIOUS FISCAL YEAR... $.
TO CURRENT YEAR......... S.
•
LESS DIVIDENDS
i
*
constitute
forms
.'
a
proof
of
the
balance
of
the
item
of
net
and liabilities on page
1.
Incorporated in our statements are the items of salaries paid to
officers or to partners, interest on borrowed money and bonds, income
from discounts on purchases, and income from investments, all of Which
are very pertinent in making a competent analysis of the actual state¬
of assets
and
liabilities.
account of surplus or net worth.
This Is
of the greatest importance to the credit man and accountant.
Second—Reconcilement of
a
feature
be too strongly emphasized, but
overlooked in compiling financial state¬
ment forms.
It constitutes a proof of the preceding profit and loss
statement for the fiscal year; constitutes a connecting proof, or link,
The
necessity
unfortunately
of
requiring it cannot
it
is
usually
constitutes a proof of the
statement of actual assets and liabilities scheduled.
The manner in
which it is compiled is a strong Indication of the borrower's methods.
Its omission from the statement, or refusal to include it in the state¬
ment, raises an important question
(suspicion?) in the mind of the
banker, whereas its submission in proper form by the borrower gives
between
the
present and the preceding year;
=$•■
$....'
(PERCENT).:....
....
profits As it appears in the statement, of assets
ment
'
$
(PERCENT)
COMMON
UNDIVIDED SURPLUS.
Those
$...'
,
PREFERRED....
\
=$
.
NET PROFITS AS ABOVE...
special
the
,of
"
forms
as
result
a
the
also
lines
the
of
of these
under
and,
have
I
nature
a
it.
nature;
" secured "
.
borrower's account, and
record of his total liability to our-banks, and
Periodically, or as occasion makes it necessary,
data
This
how?
cured,"
their
and
whether
and
to me the amount
that is, whether "direct" or
or
" unsecured," and if " se¬
hanks interested,' who report
the
to
borrowings
indirect "
is
posted
to
the
" duplicated borrowers "
conditions,
proper
are
are
brought down to date,
made available to the
hanks inter¬
ested.
which step is not the least
important in the operation. Our reports from the hanks show, natu¬
rally, that many borrowers pay out, and their lines are closed from
We
time
carry
to
another.
the bank
the
account
When
in
tion
is
carried
borrower. '
either
step
further,
been
any
and
they are transferred
condition occurs,
the line has closed,
which
has
satisfactory in
one
many-instances
In
time.
to
to
work
the
a
satisfactory one,
I
make
from one hank
one
or
in
my
inquiry
whether it has been
respect, and If the latter is the case,
incorporated
final
to determine whether or not
files
covering
un¬
the informa¬
that particular
BANKERS'
156
The
individual's
Used
in
relative to their
to
ray
examinations
value,
to
keeping
the
definite
secure
and
by
find
we
I
the
field
bis
contract
indicating
and
year,
borrowers
a
of operations.
This is,
believe,
I
as
and
the
This
tions.
In
tile
with
of
them,
form
or
for
the
in
House,
or
the
in
will,
I
of
I
and
year,"
knowledge
all
find
each,
Committee
its
who
of
the
are
result
the
of
if
necessary,
value of its securities, either
readily
Cleveland.
be
installed
of banks,
group
or
a
possibly
liofore
Further,
the examiner's
assurance
was
made
available
from
the bank
during
received
were
imini-
members of
certain
cash
sizable
very
withdrawal
possible
any
inquiries
that
was
sufficient
bank,
off
found
that,..upon
result
the
pay
occurred.
run
large
our
banks
downtown
perfectly
solvent
that
by
day
and
of
several
forth,
sent
would
aud
the
day
larger
our
in
balance
only
in
is
at
Also,
As
the
and
result
a
the
run
was
withdrawn
amount
inquiries
many
which
whether such
was
which
than one In
I
receive.
condition
a
could
I
need
prevail
Clearing House examiner
a
would be a fair premium for
what
bank to
any
insurance,
such
any
where upon proper identifiea-
once.
begun,
banker,
any
city other
any
for
or
the
to
answer
you,
employed.
if any of you
paid
had
if
negligible.
my
ask
would be
before it
almost
that the
and
one,
these
to
response
every
to advise bim to simply present
alarmed,
or
pay
book to any bank in the city,
his
accordingly
an
Clearing
any
were
matter was
trouble
i
and
serious
tiou,
It is extremely
in
and
the
was
This
satisfactory in
may
community of banks,-
inquiries
time,
danger. ".The
informally
laid
the
of
to
following,
stopjs-d
insight into the system,
an
a
short
in
his bank
to
loans.
give you
"run" was preciplwhose clientele is made up
very
a
attention,
was
deposit of was dissatisfied
the
as
In
deposits were
my
with
hours
two
of
bank
com-
is
one
home city, Cleveland,
my
inquiries, a statement that there was no occasion for alarm,
without
its sources of income,
of which
pretty
briefly
banks was made by the examiner, with the result that practically every
one
"state-
as
both
very
are
them
upon
employ foreign labor, as to the seriousness of conditions, find bringthat their various operatives were becoming restless
threatening to withdraw their savings,
A second canvass of the
and
"reconcilement
importance,
in
lug out the fact
of
or
from
banks from the heads of various manufacturing and industrial concerns
I
to-
additional
such
to
solvency
the
to
within
inactive
of
on
company's
a
and
incalculable
trust,
very
operation,
its
examination,
list
a
These
touch
circumstances.
foreigners.
condition
The
Association,
our
as
each
file
credit
valuation
Executive
or
fiscal
for
security
as
each
hank,
g
possible,
when
Finance
definite
no
On
the
for
its'volume of business,
working out
is
simple
uent.
this to I>e returned to me over tlie signa-
the
paid, etc.,
brief outline
which
security,
special
a
inquiries
.';v
of
had .developed-. .and: that
" rim "
examfna-
my
same
separate
a
In this connection
surplus "
of
of
request
definite estimate of the
investment
of
collateral, and
or as
pledging
accordingly.
a
rate,
of
loss
and
dividends
any
The
securities,
officer
with
dividend
have
can
borrowers
of
shall
I
large outlying bunks,
our
of
called
immediately
the
of
investment
an
the
complied
executive
is obtainable;
profit
1
of
course
class
what, benefits'-,
to
many
since.
and whether
conditions
a
system)
(card
copies of the
being received by various of the other banks as to the seriousness of
con-
establish
which
pany's operations;
rate
record
a
and
name
of
careful
to
of
wholly
two
members
the
required
necessary
Association.
House
closing
peculiar chain
a
one
on
or
account
the
tated
on
the
information as
of
iiuknowm,
Is
the Hoard of Directors.
ment
retained
unlisted
on
is
chief
the
of
heretofore
Through
is found desirable, and all data in the way of informa-
as
gather with
tures
the
name
unlistedsecurities,
and
it
unlisted, -found in the
or
the
valuation
and
has
;
have
I
shows
addition,
maintained,
tiou
found
have
found, whether held as
collateral,
ease.
banks,
that
,
loans,
record
banks where
as
the
item
r
of
case
security, listed
every
to
few months
some
\
In
and
bringing out one Incident that occurred
almost
another
which. I
on
bureau;
credit
information
Is
cities as
have also received
I
Clearing
the
subjects,
broad
in
overestimated.
securities
sideratlon,
In
of
source
a
be
Unlisted
with
selves
vital factor
a
show you
t»»
detail.
Individual bankers as to what benefits accrue through associating them-
expand
to
House examiner.
Clearing
reports
periodical
tendency
workings Ttt
the
to Clearing House members through the employment of
accrue
the
find
explain
and
frequently receive inquiries from other
1
avenues
information.
-reports,
touch,
in
several
1» seldom that
it
unable
used
forms
the examiner in determining the condition of the bank itself, and its,,
value
1
and
are
with
connection
of
cannot
if
have
we
affairs,
we
I shall be very glad
interested further,
are
Knowing the source of each
continuing record, with the fluctuations in borrowings at various
a
seasons
or
whom
on
of inestimable
record
and
borrowings,
company's
or
borrower
SUatemeiits has materially broad-
of our Credit Department.
of information
a
Financial
of»Standardized
une
the seojie
eued
CONVENTION.
was
pay
-
'
v"
Valuation of
By William
The fact
some
fixed
a
securities
some
while
others
listed
are
and
others
seldom dealt
are
Inactive and Unlisted Securities
IIakdt, Examiner, Philadelphia Clearing
and unimpeachable separation
in,
and
not,
are
does
not
or,
sells,
the
or
conservative
investor
who
occasionally
buys
it
misons;
not
securities
■concerned or if
only,
good—hence
from
securities,
and
that
and
lias
state, .either one or the.other,
In
active and
cess
and
eraHy
sold,
unlisted
then
only
reasonable
are
the
the
securities
for
obligation,
a
as
which
There
This brings
can
an
they
be but
one
to
of
interests
un-
whom
al-
The
accepted
a
cause.
by
Such
the
discarded,
where
market,
should
be
collateral.
person
as
or
far
have
the
value,
weight and
no
worth of
net
the
analysis of credit
and
standing
of
expansion
or
to
regularity
or
as
assets
liabilities
and
cover-
supplemented by the opin-
in addition,
institutions" from
Ef-
trade,
in
business
statements of
state-
information.
and ' collateral
character
business,
in
of valuing inactive and
way
ascertain
judgment of officials,
are
examiner
fecting
whom
they
received
have
or
to
accommodations,
who have made
be taken
may
predicated upon
loans
with
a
un¬
fair degree of con-
and
be
must
alert
of every
should
this
union
?
or
is
are
too many
adviser,
in
so
far as
to
An
define
alt
published information
particularly
carefully
such as are
records,
prepared
important element
or
describe,
but
of
af-
inactive or
sales
and
is intuitive judgment,
which
to
me
means
the
crystallization of individual judgment and former experiences,
Examiners
ask
difficult
notice
to
kind,
keep
data -pertaining'thereto.*
and
the security and,
accepted
concerned, are likely to defend their own judgment,
securities
unlisted,
se-
concerned, for they represent a liability of the borrower, and,
if In the form of stock, not as good as the claims of general creditors,
value is
to
they have made the loan,
An
accepted
collateral
of
basis
examination
independent
they have applied for
their acts
sue-
corporation
as
by
by
listed and inactive securities,
seldom
When
should
fidence, but it is not wise to be influenced entirely by their judgment,
and gen-
are
than
comparison of
financial
of
ions
for
local
the
on
ing a considerable period, and,
lie of the most desirable chaf-
satisfactory
issued
should be
is
intermediate
egg—no
value but being desirable
being
us
collateral
satisfactory
more
or
made
lie
retrogression
bad.
tnay
special
are
alone
tlie same standard
recognised, always command
limits,
pledged
or
•
by
of
should
fort
it should
quality
be of doubtful
the preference may
the
considered
supplemented
ments,
bad
too
or
inactive,
be
better
no
permanance,
sold.
said
securities
price far above par
a
and
curl ties
are
good
securities
communities
stability
at
within
giving
all
In
acter.
been
of two
standpoint ■ of convertibility
they should be judged
good—as
sellers;
is
marketable
the
ready referred to, vis. : Good and bad.
grade,
few
one
by bonds,
character,
should
There is
j
if
valued
viewed
are
of
account
on
security
only.
reason
easily
are
they
Because ft
they are daily being bought and
as
listed
too
either
for this
condemned
Active
.
be inactive
few buyers.
therefore,
be
be
may
may
of this
loan
the
unlisted
though listed,
security,
and,
cases
House Association.
maker of the obligation.
and
seldom sells?
A
if represented
In
also
arbitrarily
between the sheep and the
If so, who shall he the arbiter—the simulator who often buys
goats.
and
that
active
are
create
M.
prone
to
questions.
I would
say:
talk
too
Not
as
much,
an
but they can
oracle,
but
inquire, investigate, impress.
as
a
.
scarcely ever
cola borer
and
CLEARING
"
1 he Establishment
of
HOUSE
157
SECTION.
National Association of Clearing
a
Houses "
Kelsey, Manager, Cleveland Clearing
By George A.
Ma.
CTiaiii:
toward
and
tliis
in
three
I
want
to
them
therefore,
for
the
in
which,
by
working
it
of
reason
unit
Association,
and
to
Iiest
its
yon
the
bringing
Von
the
of
of
group
would
meet
it
forming
thus
and
method
and
them,
mean
all
tre-
it
this
a
over
this
meeting
of
the
representing
by
various
which
subject,
a
simultaneously by the
thought out, a
thoroughly
it,
same
the
The
statistics
in
otherwise they are
erroneous con-elusions.
in
if
for
it
measure
all
are
of
it
than
of
and
and
you
11»07
non-
Examination Department.
At the present
is coming into its own, but the
the
back
settled
the
from
an
exchange of
rut.
to
get
in
great
a
many
nature
very
checks and
together and
cases
of
things
money.
compare
It
to purely rou-
it
is
has
never
time to get
notes, and be
living,
a
is doing;
and,
.
made
speech
a
at
of
one
couple of
the conventions a
all
were
know
can
come
only
from
centralized direction." you have a
force back of you in this National Association, that- is going to do
something.
.
'
I said at the opening of my remarks that you might call a National
Association of Clearing Houses, a working unit of the Clearing House
The annual report of
with this paragraph:
" We believe that next to the American bunkers Association the
Clearing Houses of the country wield the greatest influence for. good *
among the banks, and every possible effort should be extended in
Bankers Association.
of the American
Section
that section read at Kansas City last year closes
their development."
that the
the soundness of my argument that an
I am strongly of the opinion, gentlemen,
This being true,
quotation just given proves
organization such as has been described,
properly managed and di-
rected and with an enthusiastic determination to get there, will bring
about before many years results surpassing the most sanguine expecthe most ardent advocate of the theory which T have
tations of even
the
endeavored to place before you.
c
■
i
Committee and Officers';
the pres-
If to meet
you
case,
and team work can come only from
minimized.
^
power."
centralized
substitute for " power " the word " direction," and
make the sentence readEfficiency can come only from team work,
bank for itself.
each
'
'
•
1 SDH
to; its
ent
and we have the banks of to-
to-day,
does
panics
them
House work, whether
part of Clearing
work
the difference, in location and what we may call
in practically the same manner.
The time
is not already here, when the Clearing House
the
through
and
and
run
more
results
but to increase service, which
for usefulness.
banks,
and
it
indeed
is
not for the
city,
every
and working for
ami indeed to all
for it
the evolution of banking, of
practically
was
car
Department
Perhaps
reading
In
bigger results,
Houses
freight
want to do
misleading,
data,
organizations of Clearing Houses
systems were evolved,
even
mean
dangerous
lookiug
Clearing
to
a
and allowing for
temperament.
come
group
name
inemlier
is an essential
has
What we
weeks ago, I came across the following sentence, which is very much
to the point.
"Efficiency can come only from team work, and team
of
National Association of Clearing
a
its
to
the small country
fifty-ton
big
a
Clearing House to full capacity,
every
than
the
of
laid out, and
larger city bank,
like
are
sifted
be
the
kind
same
community,
the
as
passed
and
will
A planning for increased usefulness.
committee representing ail Clearlug
draft and submit a system which
use.
more
fellow
a
then
would
wheat
And in no way can this be done better than
State banking Associations have their group
organizations; why not Clearing Houses?
There is a latent power
inherent in every Clearing House which must lie brought out.
With other advantages, there are three positive advantages in a
National Association of Clearing Houses; briefly summarized they are:
A helpful supervision of Clearing House work;
A closer co-operation, and a keeping in touch, with what the other
the country,
as
the
onward, pushing force.
by organization.
Our
determined to get and to give the l>est that is
are
applying
passed on,
•
place,
work.
out
working together will lie of incalculable value,
a
when
time
.
first
where
two-thirds capacity.
to
Examination
the
been
representative of that group
other delegates representing other
establishing of
men
who
such
simply
"
the
lie
tine
Clearing
these
compared,
Houses
another
only
useful
Clearance end
Look
morning.
benefit
same
the Clearance or
time
subjects dis-
various
is
all
be
and problems,
passed up to the
and
entire banking
the
to
only
member hanks,
know the benefit to our member hanks,
And I
:
general
representative
a
men
them,
will
the
the
being
and
central
be worked out;
can
banks
will
with
can
methods
discussed
been
with
encourage
the
formed by
be
'day,
deal
usefulness.
is
all
plan
Time
To
be
discussed
organization,
Clearing
develop
or
will
solved,
are
be
will
be more of an
These experiences
now.
they
to
who will
manager,
particular purpose of decreasing expense,
after
to
valuable,
are
load
is
he
there
the
many
loaded
is
that
body of men working for improved
for standardization; and it all goes back to the beginning—
service, bigger things, advanced thought, ami the key note
improved
the
that
to
given
great
between member banks
decisions recommended or approved, plans
receiving
A
House
which
central
the
results
bank
"general"
a
Sessions
men
In
after
would
and
securing
words
means
systems;
is
could
of
invite
few
Houses,
in
of
now."
have
a
body
that
comparisons
would
ran
the
or
what it would mean for these
and thoughtfully discussed by each
body
delegate,
a
associations
it
of,
to
general subject:
word
is
men
House
at
up
devised,
In*
than
in
manner
of the respective Clearing
the members
of
Minor differences
Clearing
organization,
bankers'
possible to discuss it
House Associations throughout
just
could
could
as
Houses,
A
organization,
first aid
very
It
looking over
intelligently
organizations;
plan
groups,
of
it *a
their total,
in
Examiners'
a
the
from the clmff.
andv think
by
the
again
me
Clear-
complement
a
only
it.
of
body
brought
lie
to
subject
others,
a
and
_
down
live
various
In
to
of
the-American
that
yet
which
by
and
by
executive perhaps,
at
Take .the question of reporting total hank transactions,
workable
same
Association
Ik*
of
it is
and
Clearing
our
this
see
first
sifted
very
.vmir
assigned
centralized
a
would
subject
and
in
of Clearing
group
among-
all
as
said about
general
a
to-morrow, "
be
to
a
then
a
because
co-operation
Country.
our
settled
be
say
Ik* done
to
ours.
subjects
groups.
is
of
Managers'
Section
subjects
and
to
am
the
of
Mouses
to
way.
alike,
readily
the
at
House
it
please, .call
you
lie
can
improvement
will
over
I
words,
is
the subject
Section
House
the
general
a
together
country
great
one
in
affecting all
uiendous
cussed
these
National
a
define
if
may,
everything that
things
attention
co-ojieration,
nature of
very
time
this
a
largely by
:
From
means
words
that
all
is
co-operation—0
group
to
Section.
at
by
Ik? said,
to
your
Clearing
the
of
is
Establishing of
seems
the few
in
thought
of
and
week.
bringing
" The
Houses,"
that
trend
organization,
thoughts expressed
all
this
the
business
minds
your
three
here
discussion,
lag
into
included
are
meetings
our
present-day
centralization,
weave
f tor noon,
a
In
things,
House Association.
.
•
•
■
'
•'
i
"
•
'
•
Reports—Clearing House
Section
Annual Address of President
W.
operation and
D. Vincent
principal object is
its
the
fostering of sound and con¬
servative methods of banking.
The
House Section of the American
Clearing
fortunate indeed in
of
initiative,
Bankers Association is
having as its Secretary Jerome Thralls, a man full
bubbling
over
with enthusiasm, of undoubted ability and
integrity, whose work is always effective; a man who
typifies the spirit of Clearing House work and management, the spirit
unquestioned
of
cooperation,
make
that
our
us
the
better
willingness
bankers
to
work
and enable
for tlioqg things
us
to render
In
hanking
better service to
report of the
will give
Secretary
acitivities of the Clearing House
you
full information us to the
Section, and it is not the intention of
your
President to occupy your time with a repetition of things that
been
done or
New
to
mention
thoughts are
what 'should have
developing dally
in
been
have
done.
the economic
world,
and the
States have a better oppor¬
service
development of the financial thought of the
tunity now than ever before in the history of the country to be of
in
furthering
have
the
proper
The new methods
developed
problems
discount/issue and collection
banker1 must consider and every
of reserve,
that
every
necessity of siu-li consideration in
a
cooperative way.
The word cooperation is often overdone by its
improper use.
The fundamental principle of a Clearing House is co¬
Clearing House should understand the
principles it
the
of
banker is a member of some secret order and
ideal
of
that thought as a
izing
a
of
If
and
it.
justifies
business
played
as
if
banker in the United States must be more
Everybody jockeys for
here is a leader in his own
duty to serve your
serve
than a one-horse power
finance.
Every man
the
community.
and growth of banking.
brother banker just as much as it is your duty to
brother banker see the light, the light that
If you are not pulling
town, get together, they use your power to bring
nearby towns together.
We have been working
in every banking community.
together in your own
bankers
of
Yon are inter¬
It is your Individual
One of the;, best things that can be done for the good
public.
banking is to help your
cooperation sheds
the
it were a horse-race.
financial position,
ested in the development
of
life?
we
public position, social position, any kind
position in the community, just so it is ahead of the other fellow.
the United States is to continue to be the world power in finance,
local
in
Let us he brother bankers.
shall have no difficulty in organ¬
In the country where the volume
The small town trouble is that banking is a
beginning,
Clearing House in every town
position,
of
is familiar
teaches.
We all know that cooperation is the
the brotherly love the orders inculcate.
Why
apply our lodge life to our hank
With
every
Clearing House Associations of the United
country.
basis
not
every
the
with
game
country.
The
Nearly
your
CONVENTION.
BANKERS'
158
from the
three,
two,
Northwest
of
stronger,
States.
Such
results
bring good
will
conference
a
When
The
to
held.
were
time has
with
such distinction
no
laws
the
and
when
come
these
that
laws
The
the
the
in
that
To
community
at
meet
I
problems
larger
United
that
the
by
as
logic.
inflation,
using
that should be
in
banker
is
It
said
and
of
is
States
enough to
the
that
say
Our
name.
things.
that
time
some
evolution"
of
the real.
there shall
Things
still
are
some
be
may
advertising is
The
cents.
assistance
to
It
penetrate
the
into
we
quirement
to
flat."
the
seeing
of
we
each
and
in
delicate
most
facts
the result
of
positon
a
information
dollars
to be of
enable
which
is
be
can
made
in
saved
this
up
the
if
country
of
the
advertising
attend
the
appointed
the
to
in
advertising
that
news¬
has
among
led
banks
amount
spent
to
secure
bank
advertising
in
results.
Let
will
large reduction in the
a
read
me
the
you
objects
the
"
publicity committee of the Spokane Clearing House Association:
The
close
objects
and
cooperation
functions
between
good publicity.
Tovstudy and
of
the
this.
Committee
of
banks
Spokane
to promote a
the interest of
are
in
investigate
for
benefit
mutual
the
various
the
"
am
sure
your
The
towns
larger
of
way
led
bankers
clues
to
have
forget
did
In
charge
their
of
the
cost
those things that
of
business.
doing
busi¬
There
are
the
to
to
method
great
a
used
a
or
not it
banker knows
handle every item
collect
methods
many
find whether
a
the
public
in
in
used
is
It
a
few
softened
into
ened
into
with
banks
years
" competitor,"
collect
the
business
and
not
be cooperation of that
only
to
increase
must
of
the
Section
savings
great
which
through
to
be encour¬
must
the efficiency of the dollar
and
machinery
its
merged
effective
very
all
probability
Mr.
work
the
in
must
the
with
other
to
the
the
It
meeting
by-laws
provides
for
Loan.
from
the
any
one
from
than
these gentlemen
Committee
Executive
committee
American
the
of
large,
at
which
Bankers
be
to
in
submitted
Section,
Clearing House
tbe
Council
a
derived
was
Chamberlain
Section made arrangements through
the
of
Executive
"Liberty
first
publicity
more
Lawrence
made
an
was
Asso¬
of
up
a
representative for each State,
to be known as " State Representatives."
These
appointed
representatives will
Executive
A
plan
clearing
reports
be
at the annual meetings
Committee.
was
houses
to
securing
immediately
written
a
preceding
activities
the
cover
by
the
■
for
evolved
•
from
report
annual
each
the
of
various
the
convention;
respective clearing
these
houses,
sug¬
gesting improvements, changes In rules, etc., and to be confined strictly
to
clearing
the
house
annual
information
The
great
roll-call
These
but
the
The
that
printed
and
through
this
feature of
important
Very
a
briefed
be
tbat
means
acquired.
has
grown
proportions
such
to
an¬
our
as
to
plan
impracticable
tbe
time
save
time and will—no doubt—be
more
plan will
new
believed
be
been
section
will
reports
is
will
lias
continuance of
tjhe
consumed.
It
value
cities
of
program,
make
affairs.
proceedings.
of
because
of
effective.
The
of
midwinter
a
of
Committee
Executive
this
efficient
of
the
committee
and
The
in
conference
proved
like conference at
a
result
a
the
improvements
changes and
arranged for
House
holding
the
As
managers.
Clearing
every
make
to
City for
Kansas
at
examiners
practically
enabled
been
handling of its business.
that
cess
conference
conference
has
States
arranged
United
for
such
more
suc¬
a
the time
of
this Convention.
Houses
in
The
for
been suggested that annual
different sections of
the
Reserve
District—might
Executive
Committee
the year now closing
meetings of groups of Clearing
the United
prove
agreed
States—possibly in each
of great advantage.
that
activities
the
should be centered
upon
of
the
Section
the following:
Exteusion of the Clearing House Examination
Country Clearing Houses.
Couuty Clearing Houses.
(d)
New Clearing House Associations,
To get all Clearing Houses into the Section.
charge for
a
depositor's
Feature.
»
,
(f)
Total Bank Transactions,
Universal Numerical
general way how much it costs
(h)
No Protest Symbol Plan.
(i)
Symbol
a
Regardless
If he does not
now
little cooperation with the
a
banker
havfe
would
Is
of
gloat,over
gradually
cooperation
the
the
" Enemy " has been
doing business,
earnings
kind,
eliminated,
(g)
" competitor "
We
cost
stimulated,
be
this
meet
to
avenue
(c)
analyzing
the bank across the street.
" cooperator."
to
that
the
(a)
profitable one.
do so by
ago
marshaled
is
(b)
i
only
was
payment
but the best judgment
and
cities
competitor.
failure of his enemy,
must
of
a
a
the
must
that financial aid to
so
nothing and do
smaller
for
service-and
that goes through his bank.
the handling cost he can
partial
a
bonds
bankers' mission should be
for
everything
those things that are a private service.
account,
on
sold
quite
to meet
upon
The
(e)
business;
are
doing
" doing
the
doing everything
stop
committee
a
is
bankers'
be
war.
to the
The
be
The Clearing House
by
ciation.
Federal
cost
tbe
eliminated
conducting
cooperation
by
can
of
free
has
of such
effort.
an
will teach bankers how to collect
Cooperation
nothing"
the organization
Clearing House is well worth
Competition
ness.
will agree that
you
own
the
It
every
maximum.
House
Hillis and
It has also
I
in
must
House
Briarcliff
approved
methods
and
mediums
of
advertising,
with
a
view
to
ascertaining
their
respective costs and merits.
"To discourage by concerted action the use of mediums of proved
unprofitable or
questionable value,
and
to
eliminate all
wasteful
advertising expenditures.
To stamp out the practice of giving patronage to any source seeking
funds for purely social, fraternal, civic or charitable purposes under
the guise of advertising;
"
"
And finally to join in an educational campaign of bank publicity,
devoid of all self-interest, having for its object solely the acquainting
of the public in every phase of
banking; service and investment, and
thereby stimulate greater confidence in banks as a whole."
The
contrary,
for the big meetings which welcomed
that they visited in sixteen States.
cities
nual
"
to
in
of the traditions of
called
be
be
to
stake.
tbe
members
in
of
Our coun¬
Government
many
be mobilized,
must
Clearing
its
to
and
Dr.
of
At
books.
cook
their committee on advertising
business and
more
these
into
men
through
produce better advertising,
him¬
Committee.
responsibilities
at
on
will
need
fraternity
Clearing
way
of
expense
committee is
a
who
men
Experience has taught bank advertising men
Competition
ing.
Cooperation
its
the
re¬
and financial journals are the best mediums for bank advertise-
papers
increased
single factor.
,■
another
later
suffer the least possible disturbance.
will
and men
must be
amendment
dollars
of each bank.
it.
ciation,
by
only
Thralls,
who
proven
clearing houses.
to the individual investor,
on
banking
waste
tour
them
cost
The
and
has
its history.
the
are
will,
banks.
the
by
industry
money
Campaign."
and
practical
reducing its
advertising.
effort,
united
by
secretary,
Mr.
Sections, Departments and Committees of the American Bankers Asso¬
Sciences."
the
that will
of advertising,
producing
is
all
aid
that
it
banks
will
them
Production
The
but Clearing House cooperation
easily demonstrated
of
financed
The
be
village
" the
Kipling in that keen study of human
quality
House banks of
Association
the
The
aware
are
to
activities incident
emergency.
becoming
May.
rounded
increasing rapidly.
are
for
order of things;
new
increased
the bonds
only
usual,
as
a
broken.
Many
homes
our
be
in
marshal
ideal
banking business
a
the
is
non-business
obtain
be
be
to
Not
for the super¬
banker
every
the
last
our
the Executive
has brought added
war
and
not
are
our
sold;
plan,
to pass
Is it not possible
of saying cooperation.
million
of
very
Clearing Houses
The
secures.
daily
are
members desiring
of
We
dream, an ideal, but in the rapid
a
delicate science,
of the
kind
will
be
the
attend
He has performed the duties
the year is tbe greatest in
into
liberty
our
needs
method of obtaining, collecting
government commission
a
doing
men
was
a
one
any
the
elimination
Clearing
in
1917.
and
Section.
Section
the
of
to
me
Briarcliff
secretary,
as
of
satisfaction
usefulness
duty of
banking will
are
and
25,
meeting
Bank Section,
National
opened new avenues of activity
unusual.
systematize and analyze
should
own
Clearing House Section is in
to
regulate
Five
them
possible to the end that the war shall be successfully, prosecuted.
is
aged,
" Advertisiu'
says
Cooperation
and
business
every
number Of checkings
dream about get to be facts before
the earth
voted
nature
to
new
to that time.
up
by ithe
Wolfe
Howard
the entire
to
patriotic
way
•
There
the
be
financial,
we
office
growth during
the
accomplished
0.
for
at
that
Jerome Thralls,
Mr.
active, energetic and capable.
try's entrance
prevention
work
of
accomplished
be given
cannot
Mr.
activities
banks
studying the
certain
a
checking
Possibly this is
things
Its
not agree
The ounce of
standardize these methods.
of It.
that
to solve
September
Committee
chairman
as
Secretary of the
commerce und
should
vision of credits?
bis
will face the fact of
we
the
to be
The
that he could
me
scrutinize,
we
Each bank has its
country
self
of
credit
succeeded
supervision of credits.
classifying the credit information it
the
in
to
prevention.
of
ounce
United
each
on
heart of
the
danger that must be anticipated by
a
the
the statement of our borrowers and
made
throughout
prescribed immediately and taken in daily doses by
the
not
the
Probably my statement was
Whether it is logical or not,
and it is
and
causes
good
as
responded
not
was
City,
possible
not
was
Executive
the
served
successful
the
who
Eastern bank, and expressed the opinion that
the banker
as
solve
to
it
that
regret
Vincent
much
became
Last spring I was talking
coming problems is inflation.
clearly made,
prepared
body
a
of banking
not by being.
doing,
for
in a cooperative spirit
business
the
affect
with the president of an
with my
that
Section:
the work which had been
Too
the problems of every
individual organizations study
as
.present tendencies were toward Inflation.
not
Insignificant
are
Bankers
the banker, and in the days to come
House
meeting of
President
r
solve them
meetings
We grow
States.
One of
deeply
Spring
the enact¬
bring about
to
one.
equally
are
localities,
annual
our
used
every
We should
own
our
to
Clearing
the
up
apply
community.
problems in
and
made
been
yet
they
to his credit and to the glory of the country.
way
accordance
The spirit of cooperation should
pale.
would "be
efforts
would
that
problems of each
bank
work.
willingly and in a self-sacrificing
gladly,
duty
never
but
citizenship.
Atlantic
The
alike.
all
govern
banking business not operating In
any
combined
laws
of
partici¬
its
Report of Chairman of Executive Committee, Stoddard Jess
The same economic laws, the
national
Same
is outside
laws
their
ment
has
manifold,
will come and the banker will be prepared
problems
a
permeate the bankers of any State that permits unregulated banking
so
their
are
problems of
Increased
do
promptly and effectively by
country banker and city banker when
as
the brotherhood of banking.
to
State
same
banking
of
the
to
must
The call
way.
benefits of
receiving the
as
shareholder
Association,
will be more easily solved.
problems
citizens
well
as
Banker^
American
r
There is
comes
work,
States should be a
the United
of the
Clearing Houses are members, then the problems which daily
compared
The
conference of Clearing House Examiners and Managers demonstrated
its value to the banking world.
A conference of the Clearing Houses
located in each of the geographical banking districts of the country
would prove of unquestionable worth and bring about a closer working
understanding among bankers in any district in which such a conference
It
all
confront us
city that is willing to cooperate with its neighboring city.
every
its
in
pating
the banks of that part
brought beneficial results to all of
United
the
be
this effective section
In
will work to better purpose and will
accomplish more far-reaching results.
A conference of the Clearing Houses of the four cities of the Pacific
will
Clearing House in
Every
Associations, then the Croup, State and National
Let us organize County
Associations
more about the bank
than the dividend date.
fire bank towns into Clearing House towns.
four and
shareholders should know
with your shareholders;
Let us organize
from the bottom up.
top down,/ let us work
the
in
prevent
business.
but there should
being
soft¬
banks
and
loss in
There
the
must
be cooperation
(j)
other
be
the
war
of
in connection. with
be
great
great demands
supplies,
new
called
will
use
wiring non-payment,
Clearing of " Go-Backs."
With
ber
for
System.
upon
tendency
to the banks
The
to
managed
that
there will
Industries.
In
shoulder
by
men
must
be
spring
up
met
in
financing these
tremendous
for
food,
industries
the
responsibility.
who are not experienced.
to undue expansion.
The
munitions
this country a great
banks
Many
of
and
num¬
will
them
There
will
be
attending dangers
and
risks
a
will be very great.
Clearing House examination
system
has
proven
to
be
a
great
safeguard.
Through this system
ing fraternity
be
can
all
on
the part of the patrons of
lines
of business
A
careful
more
seeking credit,
be kept
can
not only
unsafe tendencies,
and
the bank,
of the hank¬
scrutiny
but upon the banks themselves,
be checked.
can
To
mind
my
the
Clearing
is
Houses
not
of
sufficient
which
number
would
Wilson,
Association,
t^n
years
of
any
be
a
makes
bank
of
of
ments
independent
some
One
the
year;
clearing
country
operation
over
agencies
country
new
during
or
the
effect
dollar
two
house
$1,700,000,000,
last
year,
year
previous.
and
clearing
more
which
of
House
The Clearing House Section
to
handle
Where
the
departments,
three
times
volume
Banks
where
gold itself is used in
the
loss
by
handling
would
it.
all
gold
abrasion
dollars,
and
cash items.
was
organized
and
have
eleven
been
in
months a volume
the same period
handled during
wire
What
House
the
need
we
Section
to
new
clearing
held
funds
of
the
settlement of
the
and
save
attendant
risk
and
expense
gold,
it would
balances,
as
certificates
gold
it would tend
Federal
to
to
Reserve
should
be
and
official
report of all changes in
will
sent
and
Section
than
Clearing
the Clearing
secretary
rela¬
information
disseminated.
be
the
the
by
the activities of all
which
from
should
to
of
usefulness
the
with
place in which
recorded
on
issuance
less
further concentrate the gold of
the
advance
methods
amounts
Bank.
cooperation
closer
in
Re¬
Federal
of
holdings
The Section is a
ideas
house
of
or
most
is
clearing houses
tive
into
their
increase
the
well
as
covered
if
and
of
the
If
every
section
a
rules, systems and methods in their respective
be made of much value.
If
clearing houses desiring information will communicate" with the
Secretary of the Section, he will furnish it, if it is in his office;
and if not he will get it in some way.
Through co-operation great
organizations,
good*can
be
the
information
acquired
can
accomplished.
Respectfully
submitted,
Stoddakd
the
Chairman
,
by
Federal
by checks
either
balances
Should the treasury department discontinue the
in
the
materially
certificates
hundred
there
into the
the country
of
transfers
by
or
released
serve
of
supply
Clearing House
Banks
be
would
country
efficient
town
which
the volume for
the
issued
the
depart¬
country
operation,
handled for the first six
being double
Reserve
to securing
should give further attention
gold
them, all the gold now impounded by clearing houses against cer¬
tificates
one
for
this
the
settling
By
Federal
upon
of
past
Could
most
of
out
in
Bank.
Reserve
House members,
department
be
soon
concentration
failure
the
the
plan.
be
to
collection
will
collection
than
during
than
argument
houses.
proven
house
others
during the year,
that
because
of
W.
John
development in the Federal Reserve Clear¬
have
through
clearing
Mr.
Clearing
Angeles
single
stronger
a
Is located
examination
and
men.
more
Los
a
there still remains the need for the develop¬
country
they
operated
are
or
placing
of
community wherein
supervision
the
to
a
that
House examiner supervision.
commendation
While there has been
economical
than
before
importance
greater
the Clearing House Examination
ing and Collection System,
ment
or
oue
of
lost
has
under Clearing
greater
adoption
of
statement
a
depositor
no
the
time
examiner
of
States
city
every
banks,
the
efficient
United
the
of
require
the
subject
any
159
SECTION.
the
by
there
Clearing House examiner in
of
the composite judgment
obtained.
on
a
HOUSE
CLEARING
'I
Executive
Jess,
Committee,
NATIONAL
American
Second Annual
SECTION
BANK
Association
Bankers'
Meeting, Held at Atlantic City, September 26, 1917
Financing Foreign Governments
Page 160
Address of President
Trust Powers of National Banks
Page 165
Report of Committee
Relating to Financing Foreign Governments
By II.
When I
asked
was
It. Brand,
by the American Bankers' Associa¬
Governments,"" I
was
glad to accept their
very
invitation, mainly, perhaps, because it afforded me
an op¬
portunity of giving some account of what Great Britain
able
been
has
Allies
the
since
do
to
close relations
direction
the
in
beginning of the
of
financing her
In view of the
war.
existing between the two great
now
tions of the English-speaking world, nothing in
is more
my
to
the burden of financing the Allies lias
Great
Britain,
England's
Our
to
going oil doing
but,
so,
far
as
burden has
as
as
of the allied cause to lend
Allies, and
there is 110
winning the
war
been
now
I
shall
financial
cause
I
huge
more
sums
I
be in
of course,
possess any
a
discuss
either the
the United
presume
States, be¬
to
Englishman,
me
nor do
be
may
some
happened in England financially and
You
war.
as
I say, that the problems
we
have
had to face may be of some value to you.
Although
British
I am in
this country
Government, I
munitions and not here
You
must
therefore
am
on
in
are
concerned with the supply of
behalf of the British
consider
remarks
my
as
with
the
Canada,
large
have
British
munitions both
supply of
and
financial
with the
behalf of the
from
come
questions
measures
taken
much
into
arising
England
therefrom,
with
and
and
the
also
to control
industry.
I
am
not
you
a
mass
we
our
national debt is
$3,105,000.-
pre-war
1
Allies, lias been at the rate of about
Our irrevocable expenditure lias aver¬
Our increase in
revenue,
shall
These
between
get
to
this
I
Before
This
year.
would
have
$3,400,000,000.
been
thought three
have been wholly impossible.
figures will
011
$3,150,000,000 and
extent
serve to show you
nation
a
only half
the extent of the
populous
as
the United
as
If population is taken as a basis, our
expenditure is equal to
about
a
have budgeted for $3,100,000,000. and probably
we
$70,000,000
$5,000,000,000 of
population,
in
last
our
war
loan
which, again
new money,
raised
we
the basis of
011
be equivalent to your raising here in
$10,000,000,000.
operation
these figures mean?
necessary?
gross
day.
a
would
financial
daily
expenditure in this country of
an
mention that
may
Allies?
essary
What
What efforts
had
measures
Now,
011 our
to
we
what
do
part have been
of figures, or by discussing
To
he able
to get
some
to
to find
11s
take
and
what
the money we re¬
these questions, it
answer
picture of the effect of the
is nec¬
war
011
England's general economic life.
Perhaps the greatest surprise of the
ple,
even
to
has
been
the
nation
011
can
fighting
not have
studied
going to deal with the subject of this address
simply by giving
deduct this figure
If
quired ourselves, and also to lend these huge sums to our
this sub¬
Government
by the Government
much.
unofficial;
some years
contact
so
national debt,
raised roughly $1,000,000,000
we
years ago to
finance, and that for the last two years I have been inti¬
011
figure of
our
problems to solve to enable
the profession of international banking and
mately connected
the
so
the increase to
expenditure since April 1st last, in¬
our
day.
a
an
Treasury.
you 011
that in ordinary life I have been for
engaged in
we
one
the service of the
My personal qualifications for addressing
ject
war,
Taxation
can
only deal in the very broadest out¬
can
$18,003,000,000 by
to
as
aged about $22,000,000 a day.
the
1014.
We have lent out Allies,
debt.
owing to increased taxation, has been very great.
States.
economically since the beginning of the
lines, but it
$35,000,000
to talk
large question under consideration by giving
understand that I
from August 4.
of $1G,40Q,000,000.
actual daily
burden
a
by
total
a
cluding loans to
meeting of American bankers.
account of what has
and as
national
our
be reduced
do is to discuss certain aspects of the
What I propose to
very
be,
respects
some
knowledge which would enable
subject to
may
as
be put approximately at $25,080,
may
to revenue,
000, makes
year
that is not the province of an
about such
It
' '
economic situation in
or
to all the different
valuable support towards
experience may
''
not.
in the general interest
upon
that could possibly be given.
useful to you.
Nevertheless,
few figures about
a
;
$18,993,000,000, the increase in
Our
being called
our
:
expenditure
$13,295,000,000, which, added to the
passed into your hands.
therefore, that
expenditure
national
$18,903,000,000 given
must
So far
down deep
go
This expenditure lias been provided as to $0,087,as
increase in
from
we are
are now
war
total
August 4, 4017.
we
Great Britain.
on
the Tinted States is concerned, the
You
life, but
preliminary, it may he well to give
finance them by granting them credit in
large extent rested
continue to
nation's
a
$5,008,000,0(K) and this is recoverable,
opinion, to seize it.
a
of
side
for the prob¬
financing one's Allies not only touch
erly understood except in relation to it.
a
000,000
For three years,
can
financial
000,000.
opportunity to assist in this work, it is their duty, in
an
the
should each understand
we
financial side of the question,
purely
into its economic and industrial life, aud cannot be prop¬
sec¬
view
my
th*
lems connected with
doing, and has done, and, if anyone lias
Important than that
what the other Is
Mission
M.C.G., Vice-Chairman British War
to give an address 011 the " Problems of Financing
Foreign
Page 167
Reserves
y y
"Problems
tion
Page 167
-
on
those
who
had
studied
war
to most
political
expenditure of money
enormous
which
incur, and the length of time which it
without
been
post
in
complete exhaustion.
reality
history,
"money" itself has
a
for
never
surprise to
all
This
anyone
experience
prevented
a
can
a
go
should
who had
shows
nation from
tinuing to fight, if it were determined to fight.
peo¬
economy,
that
con¬
The finan-
NATIONAL
cial condition of Revolutionary
France at the commence¬
The
161
SECTION
BANK
nation
consumed
during
that
personal
in
year
7,050,000,000
consumption
ment of
Napoleon's
yet France went
that.
It spent
can
hardly be said ever to have
used
great financial resources, and yet they fought, one
after the other, two severe wars,
third still
Africa
found
for
pire
more severe
The
sources.
another for
practically
with
Mexicans
no
managed
recently
Em-*
financial re¬
fight one
to
Lastly,
good many years in the same way.
a
Civil War, fought for
States in your own
the Southern
years
years
fighting the British
in
desperate and losing fight, and were ultimately
a
beaten to the gorund, not so
much by a lack of money as
probably
It
by
live on and fight with.
of things to
lack
actual
an
exists,
its absolutely minimum
only it possesses or can obtain
requirements of food, clothing and munitions
a
of war.
printing press, I will find you the money."
in
seriously affect its economic life,
dients which may very
and
that
life and warfare, the
absolutely necessary for
are
Government will get hold
of those things somehow.
them in any other way,
cannot get
it
to produce, the things
produce or be induced
can
fighting
if a nation wants to continue
but in my opinion
If
ultimately it Will
ingly important, the vital thing both
its
available everything
stress
required for war, both for itself and
This may seem an
for them.
elementary fact, but I lay
actions of a Government at war.
the key to the
countries in
some
will
annual
other, no method of financing
The all important thing is, therefore,
avail at all.
the
or
way
production of the people for
nation
of the
itself
the development of the
assist in
ductive
capacity of the nation,
ductive
capacity
should direct that pro¬
suitable
channels
into
possible,
as
maximum pro¬
for war," and
entirely the consumption of luxuries, and,
should restrict
far
In other
its Allies.
or
important thing is that the" Government
words, the all
as
and the
which is available for the
fying civic consumption and
should
war,
production which is left over after satis¬
amount of that
needs
It the
be obtained from other
goods are not there or cannot
war
mind fundamental and
because it is to my
it
on
for a country itself
of everything else required by the
ordinary civil population.
It
was
We
usual."
but
we
soon
England before we saw how to
time in
some
results.
these
achieve
We
started
with
"business as
thought we could go on as in peace time,
found that was absolutely impossible.
To
What happens, then,
footing so that the nation should
and as much of it as
produce what is required for war
possible required drastic measures on
Government.
the part of our
kinds
all
guns,
for
of
trucks,
but for
national
times
and
way
of
explaining
show
how
and
consumption
it has been
figures of national production
date,
in
normal
affected by the war.
sion
on
they are the
searching investigation by a Royal Commis¬
the Census of Production some years ago.
The
No doubt by the
increased and have
since, but they will serve as an illus¬
figures I give are for
year
and consumption are
though somewhat out
happen to be fairly reliable, as
result of a
the year 1907.
1914 they had been very much
changed still more
In
argument:
1907, the British
duced
up
our
are
and in fact
produced in the year 1907 was
we
consumption by the people.
increased
because they
directions,
in other
the form
in
consumed again
immediately
of
personal
It is cledr we must either
production of goods or reduced onr
consumption, or lastly, bought more goods from foreign
countries by selling
consider
us
consumption.
them our liquid capital assets.
first
how
we
can
have
reduced
our
It must have been in one or all, no doubt
all, of the following ways:
1. By cutting off
altogether our normal peace loans to
foreign countries, i. e.,* in 1914, $1,000,000,000.
additions to our national
2. By cutting down all normal
by building no more houses,
plant, i.e.,
expenditure in 1901 amounted to about
3.
factories, rail¬
roads, etc., except for purely war purposes.
ways,
This
$950,000,000.
By cutting down and ceasing as far as possible to
spend money on the maintenance of our national plant,
except the minimum required to keep it, running.
$900,000,000.
expenditure in 1907 amounted to
This
We have
undoubtedly let our roads, railways, houses and so forth,
to
extent deteriorate.
some
4. And most important
personal expenditure.
of all, by cutting down our civil
This is so far the largest item of
consumption, that it is here where the most
savings can be made.
important
.
By these means it is obvious that at the expense
of
becoming poorer and allowing our national plant, our
our
railways,
houses, factories,
etc., to deteriorate, and by
personal economies we have been able to turn a
strict
large volume of production in the
direction of war ma¬
terial, in other words, to devote the
used
for
the above
But
purely to war
,
how about
production? ' Has it decreased or
The greatest
creased?
labor and material
purposes
purposes.
in¬
productive capacity in a nation is
goods to
people are estimated to have pro¬
the total amount of, roughly..
found, of course, amoqg the men
ing age.
males"
from
amount
1911, 7,200,000.
the United Kingdom
to over
five are now soldiers or
the productive capacity
These men are lost from
of the nation.
It is obvious that
remained the same, or
the
result
of extraordinary efforts on
small percentage
the part
if our production has
has increased, it must have.been
the part of the
of occupied males of fighting age left,
of all the other males,
occupied, and on the part
occupied or formerly
of all females.
Notwithstanding the great difficulties,
$10,000,000,000
The number of
in our army and navy
5,000,000; therefore, out of every seven
of| these men, on the average
sailors.
who are of fight¬
England, the total number of " occupied
between the ages of 18 and 44> i.e., roughly, the
In
conscription age, was in
on
tration of my
used
all
seven-tenths of what
have
from the
production or consumption, or there would be
normally
why such
required is to try and give some idea of
production
unreliable, but the English figures,
of
It is obvious
that there must be great changes
materials at all for war purposes,
men
Most
equipment, and not only for ourselves
figures given above,
no
of
food or motor
or
the hundred and one
of
any
materials of
the form
v
simplest
the
were
measures
our
clothing,
demand met?
that
was
either in
or
either in
Allies.
our
How
military
aeroplanes
items of military
First of all there
time?
war
consumption,
war
shells or
or
to be
Perhaps
$500,000,000 to $1,000,000,000.
in
and growing demand of
enormous
an
it
loans to foreign countries seems to
have increased from about
formerly
put industry on a war
325,000,000
foreign
to
loans
500,000,000
had over to export as
produce and so, have
that it should
Allies, is
finance is exceed¬
of
form
the
about
By 1914, probably its income had increased to at
Let
Therefore, though the mechanism of
on
$12,500,000,000, and the surplus of goods which
least
take them.
and
of
desperate financial expe¬
is driven to all sorts of
nation
No doubt
exhausting war, a
finding the money required for an
material
of
stocks
making up in all the $10,000,000,000 that it actually pro¬
duced.
It
" If you will give me
Bismarck, I think, who said:
was
fight"
provided
will never stop a nation's fighting,
money
in
goods
countries
history proves, and this war proves to us oyer
again, that if what the Germans call " the will to
its
increasing
plant....
(in keeping up and
Y
exported
was
In fact all
maintenance of its national
goods to the value of
hand)
prolonged. The Boers in South
difficulty
no
three
and
and are now fighting a
betterment of
On
up
950,000,000
900,000,000
plant
its national
On
(b)
It
capital purposes at home
on
(a)
fighting for nearly twenty years after
on
The Balkan States
had
wretched in the extreme,
career was
I think it is prob-
that
able
production
our
Measured
in money,
is quite as
In the bead office of the Ministry of
This is due to the fact
On the other side, partly as result of the goods required
actually not being produced, and partly as result of restric-
before
are
of land
or
worked
Millions of women who
tions, either compulsory or voluntary, of consumption, we
is
have cut down enormously our ordinary consumption of
working
No
now.
one
garden that am be used is
luxuries, and are now cutting down on necessities. Both for
Methods of production have been speeded
financial reasons, and owing to the pressure on tonnage
labor-saving machinery in industry and agriculture
caused by the submarine, the Government has for long
idle.
Every
acre
being used.
up,
.
task.
an enormous
Munitions alone, there are more than 10,000 people,
it
population, practically speaking, has been
working, and working intensely.
not
before.
great as
and owing to the rise of prices,
would probably be much greater.
that the whole
have
CONVENTION.
BANKERS'
162
instituted an extremely drastic restriction of imports.
In every direction the wheels have been turn-
multiplied.
But, perhaps,
earlier, and here is something in our experience which
the character of
important still,
more
production has entirely changed—almost our entire
our
are
longer considered.
no
surprise at the begininng of the war, that war apparently
mental expenditures and the loans and taxation which
they caused resulted in an enormous redistribution of
The Gov-
energies are directed to war production.
our
The huge Govern-
meant prosperity and not poverty.
We have, of .course, to
produce what is essential for life, but beyond that, all
ernment has of
We discovered to our
be useful to the United States,
may
Ordinary civil
industry is producing for war purposes.
deeds
Wages advanced, and millions found that they
wealth.
necessity compelled the whole of British
industry to produce for war and to produce what it is
told to produce,
was
The result
had more money than they ever had before.
armies and
because in
have
Allies
our
other way could our own
on
been
for
capital, with
lation
because the goods for the civil popu-
isn't
what
produced,
longer
110
were
cannot
you
of gramaphones,
Instead
there.
and
buy
in war time,
the Grama-
maker makes shells.
countries
our own
for
army
same
purpose,
humanly can.
to provide
normal production,
and not
while economy
increased
When I left England some months ago no private owner
•
in
my
requirements.
as
I
say,
Our increased
We liavO ha<jl to turn over our whole inWe have both volun-
tarily and
compulsorily cut off the production of goods
whieh
unnecessary
are
for
Many trades
purposes.
war
have been actually shut down and the labor taken from
and
them
has been
handed
over
to
industries.
war
Labor
wholly impossible before the
war.
Labor may not leave
its employment without Government .leave';
wages
may
proval.
itself
subjected to restrictions which would have been
increased
be
not
without
salaries and
Government
ap-
Measures for the control of industry which were
unheard of, and, in fact,
war, have been
have beeii
placed
Government
absolutely impossible before the
Fixed prices
imposed upon all industry.
011
the most important materials.
lias the absolute control
now
of
the
The
use
of
American consumption per head in 1916 was
would on that item alone make
*
000,000
been devoted entirely to war
dustry from a peace to a war basis.
Our ration of sugar is 25 lbs. per head per nu-
If. you reduced your consumption to
75 lbs.
to war material
opinion, is still more important.
motor car could get more than 10 gallons of gasoline
a
month.
num now;
in consumption is exceedingly important,
productivity lias,
of
a
I put production first, because
productive capacity devoted
I will give two examples.
thing else, has been cut down.
the extent to which we have been able to reduce our civil
consumption of all kinds.
Personal
expenditure on servants, motor cars, clothes and every-
111
but in war production, and also 011
foodstuffs, and also of other materials.
many
and navy with all they want and have any
extraordinary efforts in production,
our
.
There has been an enormous decreased consumption of
surplus over for our Allies, has indeed depended entirely
011
But,
possible, we are, I believe, doing all that we
own resources
.
power
our
spendthrift
So far as our own efforts and sacrifices
long over.
now
and apart from borrowing from foreign
the
a
nation cannot afford that he shall be.
make the export to our Allies of war materials from our
Apart from selling our liquid capital assets in return
for foreign goods;
a
of course, nearly all our extravagance in this respect is
clothes, the woolen factory makes khaki; instead of
motor cars, the motor car
individual may be able to afford to be
an
phone Company, makes fuses; instead of cloth for ordinary
time before our Government real-,
long before the whole of the people realized that though
increased, and civil consumption, too, enor-
mously decreased,
was some
ized the disastrous nature of this tendency, and it was
By this means, production for war purposes has
to do.
enormously
diverted to meeting these new de-
war purposes were
rnands.V It
He has to do what he is told
ships or with his steel.
that consumption actually tended to go up among
the porer classes, and labor and materials vitally required
No man is
supplied.
free to do what he likes with his labor and
his
I
regret myself that these restrictions were not introduced
ing faster.
a
ours,
you
saving of about $400,-
per annum.
Perhaps I can bring the situation clearly before you by
the following comparison: Before the war,
we
imported
for the needs of our civil population about 55,000,000 tons
of materials of all kinds each year.
ing about 30,000,000 tons.
We are now toport-
Of that 30,000,000, at
10,000,000 represent munitions of war of
another for
our
Allies
as
well
as
one
ourselves.
of 20,000,000,tons is in the main foodstuffs.
against 55,000,000 tons before,
000, nearly all of foodstuffs.
mense
we are now
least
kind and
The balance
Therefore, as
getting 20,000,-
But let me show you how to¬
is the burden of increased prices to
an
importing
country like England and what increased wealth is pouring into an exporting country like the United States.
our
For
imports in 1913, approximately 55,000,000 tons, we
paid $3,209,000,000; for our 20,000,000 tons
at the
rate of .between
we are
paying
$3,900,000,000 and $4,350,000,000.
steel, copper, lead, wool, leather and other materials for
That is the effect of wheat at $2.20 instead of SO cents and
which the
cotton at 20 cents instead of 10 cents.
war
demand is insatiable, and also of all ma-
terials manufactured therefrom.
of
most
without
of any
of
these
kind
may
of Munitions.
may
materials
certificate being
a
for
any
informed
a
purpose
I may
mention
you
help.
be made
whatever,
No buildings
a
personal experience that
perhaps the position.
A short
sister of mine, who lives in the country, ran
that
material
broke down.
it
I
could
used
was
mend
110
be
She
certificate from the Minister of Munitions.
heard of the matter because she wrote to
my
may
first obtained,
short of water because her pump
without
use
be erected without leave of the Ministry
bring home to
time ago a
No
to
me
to
invoke
This may show you the extent of the control
now
exercised.
now
to be
The whole of the industry may
directed to the Government.
be said
Its regulation
is
And that $3,900,-
000,000 is paid for by the export of real wealth from us
or
0
by the raising of debts
You may think that all
production and increased
we
must repay,
my
insistence
economy
011 our
increased
in consumption lias not
much bearing on the problem of financing our Allies.
But
in reality it has the most direct and vital bearing, and
your
experience in this respect will be the same as ours,
We have never once, I believe, refused an Ally the necessary
own
credit if
have been able consistently with our
we
demands to supply them with the goods which they
wanted from
our
own
home products.
We continue
now
to grant them the necessary credit, when we can make the
goods ourselves in
Great Britain.
But the problem has
been to find the labor and material to produce what
thty
NATIONAL
wanted
as
of fact
supplied them with
well
enormous
as
what
quantities.
we
We
have
steel in very large
lent
trucks, rails,
materials quoted
commencement of the war, too.
above, which
ing foreign purchases.
ions of socks
sand tons of
and
countries,
leather; also cloth, foodstuffs of every kind,
Consider England's position in 1913 as regards her bal-
We have been able to do this and to continue doing it
war
tive energy;
Without these efforts
usually been estimated that England was owed about $1,.
prepared to give our Allies the same amount of credit, but
that
would
been
have
useless,
the
because
goods
610,000,000 annually by foreign countries for interest on
capital lent, for shipping, freights, and for banking, insur-
might have been
we
But it has
$3,210,000,000, her exports at $2,560,000,000.
whole industry is now devoted to
and thirdly, because of our economy in civil
consumption.
In that year her imports were valued at
of trade.
ance
secondly, because of our intensified produc-
purposes;
It is necessary now to consider very briefly how we
try.-
have found the means to lend them our credit in foreign
portable houses, hospital equipment and so forth.
our
I have discussed the
methods we adopted to lend them our credit in our coun-
bankets, and in addition several thou-
first of all because
As I have already stated, we have
at home and abroad, to our Allies.
with 9,000,000 pairs of boots,
100,000,000 sand bags, 40,000,000 yards of jute, mill-
over
From the
have had to
in these three years lent not less than six billion dollars,
of course the most im-
are
we
assist our Allies and also our Dominions as well, in mak-
locomotives and so on.
supplied them in addition to the
war purposes,
All these nations have re-
commencement of the war, therefore,
other kind of munitions, motor
every
railway materials,
had to borrow in order to balance
Serbia was, of course, in the same
quired assistance in making purchases abroad.
rifles, ammuni-
guns,
war
position, and Belgium has been in that position since the
continuously
We have supplied them with coal,
In the year 1916 alone we
portant for
them
before the
even
their foreign account.
the most valuable com-
quantities, with
tion, explosives and
and
matter
as a
variety of materials in
every
hundreds of ships at cost price,
modity in the world.
We have
wanted.
163
SECTION
BANK
ance
and other commissions, etc.
If this sum is added to
her exports, then the total amount owed to her was
they
$4,-
170,000,000, as against $3,210,000,000 which she owed for
wanted would not have been there.
We have had, however, to assist our
her imports.
Allies, not only by
In other words, she had a favorable balance
have had to supplement our resources
She was,
The war, however, has altered that position greatly to her disadvantage,
It is true, as I have already pointed out, that the tonnage of our ordinary commercial imports has been enor-
by the means I have already mentioned, namely, the sale
mously reduced, and has constantly been falling off since
supplying them with what
we
but by enabling them to purchase
a
of every
on.
we
liquid asset
-
We are, as you
And
the commencement of the war.
Government could lay its hands-
our
-
"
"
.
our
all
duce
mands
that
of
or
our
have required.
Allies
absolutely
are
able
neither been
were
we
war
figure.
The de-
required, nor have we had enough of what we could
Copper, for instance,
produce ourselves.
from you,
we
nage nearer
Atlantic.
At home our supply to our Allies of all articles
from you.
has been limited only by our
economy,
been limited
by
our means
ports.
freights, interest and commissions have been
Abroad it has
of payment and by the credit
the war,
tiling like the above extremely large
have been able to secure.
I
need hardly
tell
assembly of bankers how funda-
an
earnings from
affected by
but unquestionably they have not covered any-
It is impossible to say to what extent our
productive capacity and our
and not by any lack of credit.
But the excess of commercial imports over ex-
ports is now about $1,950,000,000 a year instead of $630,000,000, altogether apart from our huge Government im-
Ipeen our own and our
demands, that there also we had to buy largely
Allies'
ton-
home, all our ships have been taken by the
Government off these routes, and brought to the North
had to buy
and where, as in the case of steel we produced
largely ourselves, so unlimited have
South
America and the Far East, and in order to provide
produce the kinds of things wdiich
to
Our export trade must in fact have been enor-
mously reduced in tonnage, because it is mostly to
and we have
insatiable,
But so has the tonnage of
exports, although the huge increase in prices has act-
ually enormously increased the value of our imports and
maintained that of our exports at nearly their pre-war
know, by no means a self-contained na-
With all our efforts we have not been able to pro-
tion.
we
character differ-
a
that is likely to face the United States.
it is here that
therefore, in a very comfortable position.
This has been
abroad.
problem of extreme difficulty, and of
ent from any
of about $960,000,000, which was lent abroad.
could produce internally,
consequence we
debit balance.
In
have been obliged for very many months
maintain our exchange
chief purchases are
mentally different are the problems of lending one's Allies
to take exceptional measures to
credit at home and
with this country, from whom our
lending them one's credit in foreign
countries.
I started my address by
some
or
made.
pointing out that in
has
raised and will always raise credit enough to get
hold of
the goods
Government at
other a
war
that its people produce in war-time.
Look to-
for instance, at such comparatively poor countries
day,
financially
as
Russia,
Austria-Hungary
and
Turkey.
These Governments have been able to find credit and ereate
currency
to* continue the fight.
sufficient
But
the
problems before a Government of procuring the goods produced by other
countries is a wholly different one, and
depends entirely on whether that Government has anything of intrinsic value to the foreign nation to give in
return, or, if it has not, whether it can induce that
nation to sell goods on credit.
Now
far the
.
foreign
'
England, at the commencement of the war, was in
strongest position of any of the Allies to purchase
munitions
both
.
for
and
other
herself
and
materials
her
Allies.
foreign
from
She
greatest creditor nation in the world.
was
in
countries
fact the
France, too, was a
powerful creditor nation, but not so powerful as England,
and at the commencement of the war her export commerce
received,
than
unfortunately,
England.
a
much more
staggering blow
While, therefore, France has made every
-
of the war began
to tell very soon on our external position.
Not with standing our drawing in, in the first months of the war, money
which we had lying all over the world, which I believe
amounted to a very large sum, and notwithstanding our
great exports of gold, there was, by June, 1915, a collapse
'in our American exchange, and it was clear that much
more drastic measures to maintain it were required.,
These measures could only be the mobilization of all our
liquid assets salable abroad, and since that date it may be
said that we have carried through completely this mobilization and placed those assets at the disposal of our
Allies so fat as they were not needed to pay our debts.
In the first place, you have received in gold over $1,000,000,000 since August, 1914, of which the major portion
must have been from the British Empire,
In the second place, we have taken the most drastic
In fact, these unfavorable influences
always
way
.
measures to
insure that every holder of American secur-
ities, or indeed any other securities which we could sell or
borrow against here, should either sell or lend such securities to the Government.
We have, in
fact, I thing
drained our country dry of them.
possible effort financially, the greater burden fell to us.
I should not like to hazard a guess as to
the value of
Russia and Italy were debtor nations,
American securities exported here both by
the Govern-
On the other hand.
CONVENTION.
BANKERS'
164
ment
and private
tween
'$2,000,000,000
have in
persons, but they
fact taken every possible step to sell you every¬
:■''■■■■.
thing you will buy.
countries
are
ures
exchanges are bound to collapse, and trade for a while
Allies and also of the United
meanwhile
uninterrupted trade.
is
it
great extent permanently
speedily
more
be landed in
can
interested in
are
The
dislocated.
States, and in fact of every
nation, except our enemies, because all
to a standstill and be to a
come
of Great Britain, but of our
not only
great American Army
a
France, the nearer will peace be.
the
that
vital
armies
"
In
time the exchanges find their
peace
nation
a
is
naturally
tend
Naturally, if the exchanges
disadvantage, but it would be
vantage if it were not that other and
ences
restricting ordinary
are
more
Great
granted
to
;
Of course,
Allies in
Europe
and
now
balances
are now
those
as
suffering.
from
United
the
steady by borrowing immense sums here.
itself is not permanent, and
the
which
of any Ally;
have
we
boots
Russia;
to
must
we
war
all
That Involves
utilized to
•
the full extent.
which
them.
be any question
never
in
Since
and
dered
had had
war,
own
country, I believe she will surprise the world when the
her
foreign obligations.
capital
enough
to
form
valuable
not,
unfortunately,
for
security
raising
Undoubtedly she will have to live
ieally, but that ought to have become
if the
war
in the
case
much longer.
goes on
an
I
ment
has
of
undoubted
already in the case both of England and the
United States reached
is this difference.
we
of
Against what
have to set the
debts
we
our
enormous
savings is small.
But
have lent
we
Allies
have sold and the
What
you
our
we
have lent out
have nothing to set
debtor
one.
a
gigantic creditor nation
Every nation has had to
allied
the
an
completed
very
my
Her liquid assets, namely, her gold and her salable
excess
of her
productive capacity over her con¬
whether the products she
beep becoming poorer, the United States have
It matters not
could lend direct to her
rials
,
own
obtained
from
had in excess were such as she
Allies,
abroad
or
whether she lent mate¬
either
in
services,
Her
e.
g.,
interest and freight.
liquid assets she has in the past three
exhausted.
She
for her Allies
can
in fact
no
except by borrowing.
continue to extend credit in
vide the
years
nearly
longer create credit abroad
She is limited, there¬
fore, to her own productive capacity.
to
exchange for her
products exported or in return for past or present
She
and does
can
England when she
can pro¬
goods, but she must leave it for the United States
grant credit in America.
Lastly, I come to the question whether our experience
has any
ain have
mariner in
Let me summarize it :
,
tention to discuss what your country
while France, Russia, Italy and Great Brit¬
needed to
broad sketch of Eng¬
at
three years
If England
in financing her Allies and the
buy vast quantities of materials from the United States
enormously enhanced prices, and hitherto in the last
All these
exchanges.
immense influence.
sumption on her own war and civil needs.
But there
They have been done out of your
savings and you have become
instead of being a
we
capital assets
have incurred abroad.
against your loans.
proportions.
now
efforts
2. The
ingrained habit
capital invest-
ex¬
only herself to finance since the beginning of the
have
1.
The nation which
That
value.
that
foreign securities.
econom-,
lends its credit is therefore building up a capital invest¬
abroad
on
England had two kinds of resources only—
loans
of any great European power the repudiation
ment
of
exert
which she accomplished the task.
liquid
Indeed, I consider that
of foreign obligations is inconceivable.
to fall
trade tends
maintenance of this sterling ex¬
our
it is quite possible she would not have
land's
abroad, but which will continue to return her large sums
in interest.
But so
by the other Allies. £
and indeed even if she had only herself to finance
now,
Her productive capacity is unim¬
investments,
in New
borrow at all abroad.
she will repay
paired, and indeed increased; she will possess enormous
foreign
themselves in dollars.'
The maintenance of the sterling exchange
factors together
another,
is over with the rapidity with which
Allies'
maintenance
there is every reason why if we can extend credit to
war
by
possible.
the
is
one
my
our
It is
cur,
Speaking of
recoup
to be inevitable, and the burden of financing both
own
absolutely good for any external debts they may in¬
so.
to
change that this continuance of our Allies' trade is ren¬
but that all the Allies in Europe
should do
unfortunately
England
by
money
long as we maintain the sterling exchange .this ap¬
are
we
Lastly, it is well known that neu¬
owed
are
in order
change.
opinion there can
my
who
also do neutrals who are owed money
our
all
it involves, too, those Allies which have
need
Third¬
part may ultimately come back on the sterling ex¬
pears
goods lending them on credit to those which have not
and
We send
extend large credits in England to our Allies, some
So
the
wish to win
Since we all
them
and
the best possible co-operation between
the Allies, and
the
wish
make them.
examples might be multiplied many times.
we
York
of all the nations fighting the Central Pow¬
indeed almost unlimited.
We send a great
find it convenient to utilize the sterling exchange
consider this question is this: Taken together,
needs
have
part of which they may use anywhere in the world, and
It seems to me that the
war
I
as
ly,
questiorij is whether the
should be, adequate for all
We
These
States
But the war
trals
or
those
simple,
have to import the leather needed.
we
strength and win a final victory.
are,
are
We make rifles for Russia;
import the steel to
to
this
ers
than
greater
reasons
the second place,
in
place it by steel from here.
the
change in New York.
resources
;,v;V
the credits
England to our Allies; we have to re¬
all the enemies of the Central Powers to exert their full
the
been
necessarily involves large imports.
present state of affairs can be continued long enough to
true way to
that
The
have
Ally.
other
deal of steel from
They can only do so
with
their exchanges
keep
Britain
any
noticed
/
States, the largest industrial arsenal among the Allies;
that
nation could permanently tolerate such
no
trade
/■'
have
this
from
above, we are, with the exception of the United
shown
figures of the
expect such as are absolutely necessary.
unfavorable
no
be
efficiency,
have, in the first place, the largest war and munition pro¬
imports are now being made,
no
should
and
supplies
large
and
though they are not, I think, generally understood.
into
tonnage of imports into Great Britain, which sufficiently
that practically
all
doubt
granted
imports
have
must
strength
But
France
fighting,
the
maximum
of
^
That is of
gramme
have already quoted tbe very striking
prove
will
they
doing
now
■
of a disad¬
European belligerent countries.
I
V;'
You
stronger influ¬
even
commercial
this
•
are
their
at
artificially
are
maintained, that tendency ceases to operate.
a
for
and
country.
imports tend to be restricted and exports to be
encouraged.
course
maintained
correct its extravagance,
to
which
Britain,
If
living too extravagantly, the fall in its ex¬
change will
because
level.
own
Unless credit is
extended, either the materials cannot be used or the
so
above meas¬
been maintained practically at gold point to the very
great advantage,
of all the countries fighting Germany can be made
sources
available in the most effective manner.
depreciated, the exchange between
New York and Loudon has by means of the
by so doing, as I said above, that the joint re¬
It is only
While tlie exchange between the Allies and nearly all
neutral
by lending to all the Allies vast sums.
generous manner
v
vv
Your Government in return is
coming to the assistance of the Allies in the most
now
We
or even more.
enormously richer.
become
amount to be¬
may
$2,50b,(MX),000,
or
to do.
man
to
bearing
on your own
That would be
do
a
situation.
It is not my in¬
ought
or
delicate matter for
in any case, and,
moreover,
I
am
ought not
an
English¬
not compe-
NATIONAL
tent to discuss your
difficulties.
I
can
th&
too,
see,
be
to
raised for
difiiculties
sums
of
ness
task
which have
yourselves and for the Allies,
war;
are
is
One
superfluous "for
me
observation, however,
make.
It
is
root of the
extends
the
else
to
of private cars which possibly might be laid by for the
period of the war, as now in England?
is
used entirely,
being
or
That
is
the
from
the
come
more
the
which
actually
are
now
Italian
these
Just
like
us,
Russian
we
Htal
„
are
By
Chairman
and
Thomas
Members:
of what was required for peace.
papers
more
things are short.
It seems, then, that these
problems which faced us face you. It may be that
the measures we had to take may be the right ones in
same
finding that you
edifice looks
We are told by the
that food is short, steel is short, oil is short, and
many other
We hardly
at
your case
also.
of National Banks
P. Paton, General Counsel
This
population, the regulation of industry, so that it produced
what was required for war before there was any thought
during the next
produce and spend both for peace and for war
The measures
had to take were the restriction of all unnecessary
imports, the cutting down of consumption by the civil
armies
required by the Allies?
you
Similar examples can, of
be found in every sphere of life,
land are following fast in her footsteps.
It will be-
Trust Powers
Me.
course,
anything else in the papers but of the scarcity of
articles.
cannot
civil population in war-time.
short of essentials to efficiency.,
the chief materials
will have an example of the economies
Germany has shown above every nation hitherto what
and
fighting shall
you
that are. possible by the abstinence and sacrifices of the
miracles enforced economy can perform. France and Eng-
it already faces you.
British,
French,
the
requirements.
Food, steel, oil, copper, steel plates and so on.
read of
garafes, and
insistent because your own demands
more
the gasoline used in running them,
labor absorbed in the drivers and the keepers of the
If I may judge
and navy and your civil
problem which faced us.
and
year not go
What
of these cars;
available over and above the supply
newspapers,
are
You
behind the purely
huge, and yet if we are not all to fail, it is
will be
that
the rubber, etc., used in the production and in the repair
Indeed, in
is the problem whether the materials which
the Allies require are
Consider the
labor and material, the steel, the copper, the aluminum,
almost
There is nowhere
reservoir of supplies.
of your own army
No doubt
The credit which the United States
the fundamental problem lying
financial one,
told, 4,000,000 automobiles in this coun-
commercial purposes, but are there not a large number
In your case, therefore, even more than in
go.
am
the great majority of these are used for industrial and
entirely, in purchases in this country itself.
ours,
There are, I
try, as against 800,000 in the rest of the world.
at all,
account of our experiences
Allies
the last great
Let me, perhaps,
give one example;
the Allies,
the main the materials must come from this country.
are
Circumstances, I fear, will compel
to reduce by all means in your power the unnecessary
and which in my opinion goes to the
up to,
problem.
to
to a war basis, and they
will perhaps allow me to
you
which my
one
naturally leads
a peace
consumption of labor and materials.
obliged to pay for your
to discuss this problem
a
must see that every war demand has a prior claim to
You may, too, think very properly,:that when
the United States is lending such huge sums to
it
of
if they have elected for war, they
turn their industry from
and the
every peace demand.
the other hand you
every
must order their economic lives accordingly; they must
you
on
Busi-
nation at war to choose be¬
export on credit of such masses of material to the Allies,
while
usual" is impossible.
compel
war
gards the export of gold, which may be involved by the
imports.
as
The ravenous demands
tween peace and
before your
regards your neutral exchanges, and as re-
as
" Business
be as usual.
cannot
modern
do not
money
enormous
Treasury in raising the huge
we
165
SECTION
the same time.
problems or fully to understand your
%I know quite well that you have many diffi-
culties quite other than financial ones, which
have.
BANK
for the American Bankers Association.
like a pulpit
*
trust powers unless there was au express provision of the
either first directly or second, by necessary implication,
State law
prohibiting
-by being placed first on the program, whereas the Secretary in writNational Banks from exercising trust powers; but fortunately the
ing me asked me if I would give a little informal talk of five or six
Supreme Court of the United States in its extended opinion has cleared
minutes
this subject, and I have come with some scattered data,
• up this question, so that there would seem to be very little doubt to
not Intending to make any formal address.
The subject for discussion
remain. The Supreme Court has in plain language announced what
Is the provision of the Federal Reserve Act, Section
11 (k), which
was the legislative policy underlying the enactment of this section,
empowers the Federal
Reserve Board to grant by special permit to 1
and has said plainly the particular functions enumerated in the Statute
National Banks applying therefor, when not in contravention of State
" were conferred upon National Banks because of the fact that they were
local law, the right to act as trustee, executor, administrator, or
enjoyed as the result of such legislation by State corporations, rivals in
registrar of stocks and bonds, under such rules and regulations as the
a greater or less degree, of National Banks. In other words, the plain
said board may prescribe.
purpose of enacting this provision was to enable National Banks in
Between the time that the act was passed in 1913 and June 11th of
any State not to be at a disadvantage with State institutions exercising
the present year, when the Supreme Court of the United States upheld
trust powers where those state institutions also exercised banking
the constitutionality of this provision, It was a subject of wide differpowers, and it put the National Banks on a par with state Institutions
ence of opinion whether this section was constitutional.
The question
in this respect. That was the underlying purpose. Defining the meantested in the Supreme Courts of two of the States.
In both those
ing, the particular meaning of the phrase " when not in contravention
three main questions were involved.
First, did Congress have
ot State or local law," tbe United States Supreme Court has said that
power to delegate legislative functions to the Federal Reserve Board,
it means first where the right to perform trust functions is expressly
and
this a delegation of legislative power?
Secondly, if it was
given by the State law, that is,.by State statute; and secondly, or
not, did Congress have power to confer trust powers on National Banks?
what is equivalent, where the right is deducible from State law beand thirdly, Irrespective of the constitutionality, was such conferring of
cause State law has given the functions to state banks or corporations
power in contravention of the State law of any State.
I might say
whose business is a greater or less degree livals that of. National
that uniformly all courts held that this provisiop was not an unwarBanks, thus engendering from the State law itself an implication in
ranted or unauthorized delegation of legislation power by Congress to
Congress to do as to National Banks that which the State law has
the Federal Reserve Board, that it was mere conferring or ministerial
done as to other corporations. In other words the Supreme court of
administrative power, and was not unconstitutional for that reason.
the United States plainly says that wherever in any State banking
There will not be time to go into the underlying reasons or arguments
functions are conferred by a legislature upon trust corporations, that
contentions for or against the constitutionality of this provision.
conference of banking functions is in itself an Implied recognition of
Tbe result is sufficient to announce that on June 11th of this year
the authority of Congress to authorize National Banks to perform the
the Supreme Court of the United States declared this section constitusame functions. In most of the States, I may say that in over forty
tional.
Therefore the main question arising under this section is no
of the States at tbe present time, National Banks have been granted
longer open for discussion.
It is a settled proposition.
But there reby tbe Federal Reserve Board full authority to exercise the function
mains the further question which is the subject of more or less discusof trustee, executor, administrator and registrar of stock and bonds,
gion, and more or less doubt at the present time, whether the grantee
but in a few States a question of doubt still remains. One «f those
of trust powers in any given case is in contravention of State or local
States is the State of Illinois.
laws.
What does that mean?
The Federal Reserve Board, prior to
The Supreme Court of Illinois, in the case which came before that
the decision
of the Supreme Court announced the policy some two
tribunal to test the constitutionality of the act granting trust powers,
years ago to authorize National Banks otherwise qualified to exercise
held two things: First, that the act was unconstitutional, and secthan
I
have
ever
before had the honor of standing in.
I was dignified
on
or
■
t
was
cases
was
or
or
^
/
BANKERS'
166
only,
visiting and
the
rather
or
bad
against
that
effect
the
Illinois,would
this
the
opinion
be
while here,
opinion.
opinion
General
replied,
"The
the
to
States,
that
and
quoting
the
the
Court
opinion
the
in discussing
of
the
as
business
just referred
control,
State
this is
the
the matter of regulation
subject of
general
is
to
has
to
State
by
cation
Court
prohibitory
a
condition
actual
or
and
the
at
condition
sum
.
administrative
by
legislation
be
reasonable
they
In
such
the
result
to
seen
in
them
functions
greater
be
plain
of
when
the
of
do
to
other
the
(b)
corporations;
of
administrative
which
rules
adopt
the
State
business
confers
the
the
right
the
of
exert
the
to
that
to
functions
of coordinating the functions when
Nationnl Banks with
the reasonable and.
non-discriminating provisions of State law regulating their exercise
State
to
corporations—the
concordant
"
exercise
So from
the
do
under
Accounts
trust
a
State
whole
has
doing
ity exercised by the Auditor of
concordant
exercise
work in
may
Law
and
the
and
might result.'
the
State
the
authority
given
Section
in
regulations
and
of the above act.
effect
Federal
the operation
to
authorities
have
formulated
the
which
Illinois,
be
would
not
State,
be
Banks
be
of
that
or
of
National
Banks
(k)
informed
the
Reserve Board.
to
exercise
harmonious
Bank
State
rules
Union
trust functions
might
which
to
apparently
alone
they
in
reads
that
contrary
legislation
seem,
the
to
tional
could
obligations
not
situation
trust
fees.
confer,
or
duites
those
State
exercise
so
to
say,
upon
provisions
the
every
eligible
far
a
on.
so
as
far
the
as
National
are
^har¬
which
Banks
Colorado.
to
ex¬
Indiana,
the
the
of
and
other
Federal
exercise
The
and
of
lines
committees
topics
of
In other
of
during
the
of
member
allow
topic
we
change.
Ma.
which
subject
minutes,
of
angles in
(Here
insert
but
the
de¬
amenable
that provides
minimum
cap¬
Legislature
at
Bank
I
including exam¬
and
is
the
to
these
I
the
he
Reports
of
to
the
of
the
will
advise
be
that
Francisco.
be
twenty minutes.
paper.)
me
and
it
is
of
however,
for
the
will
before
be
each
only able
chairman. ' The first
Relations
and
Ex¬
Dollar
California.
proper
be able
atten- '
and
accomplished
brought
we
to
These
Act.
printed
work
gentlemen, I do not think
to
study
committees,
the
re¬
Executive
discussion
a
to
be
will
the
America,
free
will
so
Bank
special
thought
in
report of each
International
San
report
year
give
as
understand,
Association,
perhaps
Clausen's
deal
permit
committees
to
the
to
yet.
as
regulation
banking.
Federal. Reserve
great
a
not
assigned
may
the
exercise
the
of
banking talent
regret
will
part
of
payment
legislation
left
compaueis
objection,
by
I
the
Clausen.
about
Mr.
Na¬
trust
itself
the
express
no
committees
will
like.
of
been
of
matter
Ladies and
has
fifteen
the
of
take up
:
em¬
the
certificate with the Htate
examiner,
trust
no
the best
minutes
by John
Clausen
this
words,
by
fixed
matter
early
elaborate,
section.
ten
the
up
time
would
session
the
will
led
is
the
the
members
about
the
hut
number
that
very
the
and
requires
Reserve Board would
Washington
there is
wherever
a
given
we
them
benefit
to
as
a
privileges
legislation
State
powers
the'trust business,
to
l»y
States
there
During
regret
to
Ohio
in
act
given
acknowledge
is
powers
banking opened
have
extend
not
to
Board, with the right of the National
If
appointed
qualifica¬
the powers
examination of this
Court,
the State of
States,
Reserve
filed.
and
does
were,
the
trust
to
descend
relating
functions
trust
Pkesident;
been
New .Hampshire,
in
year;
exercise
business
trust
the
have
conform to all the regulations and restrictions of
and
company
of
any
some
Banks
the
there
States
ten
empowered
corporations
Banks
present
to
Aside from these "ten
in
the
by
are
and
that is
to
Examiner agreeing to
of
so
to conclude,
are
there
only,
be
not
$50,000, and the banlk must first file
these
of Na¬
National
Banks
respective States,
registrar
could
the jurisdiction of the Probate
the
contraven¬
addi¬
Board
by
National
the
National
by legislation what in all probability the Federal
of
opinion
in
seem
In Ohio, for example,
commissioners and
the bank
great
report and
the
National
file
and they represent
to
the
by
partment
first
to
with
such
That
throughout
and then only where the capital, is $100,000.
the
Banks
tion,
or
cover
Bank
ceived
control
Now
are
compa¬
prohibitory
Reserve
of
records,
my
trust
regulations
functions
to
which
Congress.
it would
Those States
National
enacted
National
Committee
therefore, that in nearly
day
be in contravention,
impose
no
and
unless
against
was
powering
the
Court
of
Federal
authorizing
legislation.
Banks
those laws
to
discriminatory
the
examination
over
National
Presumably
Banks
the
is
the
trustee
executor and administrator,
for
Supreme
other¬
words,
universal
special
the
to
where
the
those States
three of
In
with
as
National Banks
of
account
provided
present
from
there
act
to
that
National
regulatory
regulations
to
the
by
the
authorities
It.would
the
State laws may seem
they
Illinois
States
requiring them
by
to
the
of
of
because
and
connected
given
of
supra.
regulations
functions
law,
vlsltatory
United
Federal
of
trust
State
reasonable
subject
State
the
decision
the
of
of
General
the
such
exercised
that
exercise
subject to
Court
and
tional
can
therefore*
the
contravention
the Attorney
Suureme
tion,
with
in
legislation
in the Slate.
powers
Washington.
tions
new
Notwithstanding,
in
and
ination
a
which
other
legislation
Act
requirements.
according
date,
these
above purpose."
would
to
italization
and
Banks
Iowa, Ohio, South Dakota, Vermont, Virginia, Delaware, New Hampshire
the
am
particular State
to
harmony,
Iu
that
particular
harmonize
ejideavoring
and
and
the
down
trust
in
11
I
rules
with
expressly enacted
to adopt in giving force
you are
to
In
"It is left to ygu and the Federal authorities to determine the nature
and extent of the rules and
Board
been
to
harmony under the authority given by the State Banking
under
Reserve
provide by regulation.
corporations
is
injury
almost
issued, by
require
have
long as the author¬
so
Accounts
National
(k), National Banks
tlie
only
save
regulations
would
of
has jurisdiction over
foreign
the present day,
general
to
legislation
by
of
the
State
be
to
the
to meet such created
State
any
against
seem
State
have
ercise
impli¬
an
thirdly,
which would bring about
agency."
any
or
that of
applicable
not
business
avoid
in
and
because
would
Auditor
the
Banks
Illinois,
Public
end* that
tlie
to
harmony
that
me
that'he
and
business in
trust
that
power
National
over
business
trust
a
to
occurs
the, same extont
to
a
end
State
and
as
Supreme Court of the United States iu
it
jurisdiction
business,
banks
the
to
National
discussion,
permitted to do
are
the
the language of the
opinion
Public
of
a
to
as
to
Banks
giving besides
exercise
in
Congress
the
Federal
Bank
right
at
each
engender¬
done
has
National
on
Board,
regulating
law
country
functions
trust
hold
not
this
to
Is.
to
national
banking functions,
will
so,
that
has given
in
being
tion
what
thus
that
of
the
the
banks
itself
And
may
meaning into Section 11
a
exercise
exercise
This
the rights
or
law
Banks,
subjects
statute
it
means
permitted tq be discharged by
that
whose
National
of the Reserve
authority
to
power
conferred, thus affording the
law,
eligible to
nies
by
exer¬
State
this decision of the Supreme Court of the United States,
up,
amplifies and reads
were
National Banks
where
State
because
clearly
that the statute
that is,
the
so
when
question.
implication of authority
the
that
functions
particular
Board
itself an
in
(a)
corimralions
or
that
rivals
law
law
National Banks that which
to
as
banks
State
degree
State
the
by
State
the
statute
law,
given
un¬
by Congress" to
functions by
particular
^rust
so
or
Congress
by
them
considerations
the
State
business,
necessarily Would
chartered
it is observed
the
expressly
are
to
less
or
ing from
that they
it enacted
equivalent is deducible from
the
such
of
discriminatory
not
these
And
powers.
contravention
perform
if
banks
upon
mind when
the exertion
when not
to
controlling
peculiar
was
conduct
justify the conclusion
be
legislative
authorizes
the
banks,
virtue of authority conferred upon
in
came
exert
to
as
would
operate,
for
national
by
appropriate
suffered
"
regulations
business
company
the
that
to
State
to
law
of Congress
power
Secondly,
particularly
is
State
Ivith
deny the
they
National Banks that which
to
particular business
a
competition
time
same
would
to
as
potential
"The
that
the right
corporations.
this
State
corporations,
degree" rivals
State
this
Court of
deducible from
less
the
as
such
fact
Banks.
is
the functions
from
and
legislation:
State
that
says
greater or
other
to
the
by
Bank
the
of
these trust func¬
of
National
of
engendering
says,
that
the
by
study
Supreme
the
because
States
in Congress to do
as
States
that
legislation
law has given
done
har-
a
States,
two
prohibits
careful
a
United
Banks
a
make
or
expressly
after
by a~National
further
create
authority
of
thus
has
State
under
character
the
law
Supreme
wise
the State
Banks,
of authority
State
the
will
corporations created
first,
State
of the United
functions
because the State
in
At¬
say:
regulating
peculiarly within
of
regula¬
tjiat the rules
one
particular functions,
less degree
greater or
trust
National
United
the
result
a
the
of
are
law
by
clear
consider
corporations whose business in
States:
opinion
of
Court
Court
National
to
as
State
seem
Just
there
than
says-that the
given
a
such
law,
quoting
and
hold.
Supreme Court
he
The
United
the
in
Supreme
Stales
of that
he says with
what
of
Illinois
of
the
Act.
the .act,
of
the
cise
Attorney
business
trust
a
Reserve
Supreme Court
Supreme
the
is,
course,
doing
language
the
Supreme
were
in
would
not
States
enjoyed
were
rivals
him
what jurisdiction
to
as
or
the Supreme Court, and
Supreme Court of the United
"'Of
to
tions,
I
of
the
upon
of
It
the
laws
by
says,
so
contravention.
up,
the
other
Board,
State
the
no
comes
where
functions
Reserve
and
will be
question
State.
of
United
the
an
from
the
Board
there
example,
trust
the Supreme Court
so
the Federal
Reserve
for
would
laws
in
contrary.
Accounts
received
called
question
desiring
contrary
rendered
the
to a portion
attention
your
the
to
recently
to
Banks
of
by
further
of
decision
opinion
all
National
Public
(k) .of the Federal
opinion-of
of
opinion
discussion,
the
upon
11
given
of
harmonized,
whole and
York
Jaw
believe
But
of
New
be
adopted
one
exercise
have been
1
very
Accounts
I
and
directly
Auditor
Public
Banks,
the opinion of
reference
the
of
under Section
torney
from
Auditor
an
National
over
Illinois
thd
Court
have
law.
has
Accounts
that
Chicago,
of that opinion which I
copy
a
in
exist
be
Federal
Now
con-
will
or
to
the
mouizied
be
not
to
as
to
tions
of
contrary"to the
was
Supreme
powers
State
Illinois
and I would like to call
The
for
General
of
still seemed
Chicago,
trust
could
decision
monized
of
also
and
powers,
which
the
Banks
the
in
of
of Public
Russell,
for
of
attorneys
the
to
General
Mr.
National
Bank
contrary
State of Illinois,
had
Federal
trust
provisions
course,
the decision
by
prominent
the auditor
to
but
the exercise
Attorney
to
Indebted
am
the
that
exercising
Of
decision
the
several
of
counsel
the
to
those
regulatory
functions
Since
Illinois.
the State officials the duty
upon
Hanks.
reversed,
the exercise of trust
informed
in
various
National
sltutionality was
of
Imposed
of examining
law
State
enforced
law
law, because the .State
that it was in contravention of the Htate
conferred
law
CONVENTION.
to
I
a
give
can
attention
throw
In
light
ten
on
the
or
some
Report of Proceedings
Address of President
Annual
In
the
interval
bankers of
that
has
United
the
difficult problems that men
It
with.
has
and out of
been
come
This
is
is worth
a
to
the country has stood it well
financial preparedness to meet the
have
American
the
intervened
struggle has become
The European
loan.
everything that
the integrity of
preserve
bank
a
been asked to grapple
ahead.
are
war
a
to solve the most
upon
ever
last and during the weeks
wonders
real thing to us all since April 7th
very
that
literally
while behind
the
City
Kansas
have accomplished
people
preparedness work.
One of the most
marvelous achievements has been the mobilization of American industry
in
making
for
up
time on
lost
through the cooperation of the world's best business men in daily con¬
ference
ing
at
must
days
some
in
men
the
shall
their
hampered
in
way
the
world
erations
campaign
reduced to
been
a
which in other wars
The businesslike
the auspices of
National
in
"
(
clearly
almost
duty
the
burdens.
unbearable
therefore,
computation
beyond
are
win
burdens
financial
The
this
achieved.
to
bankers
American
of
appreciate
now
just
and
what
represented
felt
some
it
that
was
of
due
was
seeing
world-war
it
to
around
deserve
tion
financial
credit
financial
which
a
cause
of
the
tact.
I
feel
where
we
paved
well,
go
their
way
56 per cent.,
or
cent,
per
indeed,
for
loan
instance
will
for
will
this most
dollars of sub¬
for
made by or
were
total, resources,
National Banks.
laborious,
less
but
atmosphere
in
will
of
issue
to
ernment
loans
whatever
in
are
necessary
of
this
great
support
for
which
It
war.
we
cleared
investors as soon as
Gov¬
of the highest
that we should pass these bonds on to individual
it is possible to do so.
It is of all things necessary
times especially
war
kept liquid and l>e ready to
is
It
with
strength
Federal
war
meet
we
it
the
has
that
we
immense
of
been
vicissitudes
country
have
a
satisfaction
may
into use
the greatest
of
avail
the
war
that
ourselves
Act and to
remarkable
Reserve System came
and
this
war.
the
be
finance the progress of American industry.
Reserve
in
have
ceptances is being
in
of
Federal
the
by
time
this
in
Bankers,
offered
banks of the country should
the
profound
of
sense
a
that
know
as
the
of
what
had
benefits which
!>efore.
must
but
States
The
in
system
it
is
result from
not
difficult
to
year
that
by the- membership of all eligible State
As the matter now stands, the responsi¬
much
banking
business of the
of all the banks of the United
would be the
stronger
if
mobilized
were
the reserves
the Federal Reserve Banks!
in
past year has been one of marvelous growth
The
and business has been almost
for National Banks
uniformly successful.
The total resources
statement of June 20,
1917, reached the enormous sum of $16,154,000,000.
Compared with
.the statement of June 30, 1916, it shows a gain in deposits of $1,913,000,000, and a gain in total resources of $2,224,000,000.
7,004 National Banks, as shown by official
of the
for the banking business in the
The outlook
United States was never
We are losing our provincialism, and even
banker is gradually becoming a world-banker in a very real
brighter than it is to-day.
the interior
sense.
the
In
played no small
past wars of the United States bankers have
All honor to those patriots who in
dark days of the Republic provided funds to successfully conduct
wars!
Bankers of to-day are no less loyal and patriotic than their
part in bringing victory to our flag.
theour
forefathers and may be depended upon
for in times of stress it is of
threatens,
keep liquid and to safeguard
to
have every
all things necessary for banks
themselves against possible emergencies.
done and that we shall
to believe that this will be
with flying colors and well prepared to
to
dent
reason
the
the
brakes where inflation
to do their share in winning
It will be necessary to put on the
present war.
restoration
of
solve the problems inci¬
peace.
Report of Committee on Reserves
To
the
of
of
helping
trade
us
forecast
the development of the
new
Members
of
the National Bank
American Bankers Association.
Section
of the
,
Gentlemen:
Committee on Reserves beg to
Your
submit for your consideration the
following:
The
classes
passed,
1917,
...
following
of
tables
member
will show the
by
banks
the
reserves
Federal
required of the several
Act as originally
Reserve
o°f the transition period November 15,
required by the Act as amended—
applicable at the end
and the reserves
banks—
Country
12% on
'
*
Demand deposits,
5% on Time.
Classified
as
follows—
4% compulsory
3% optional
As
in Cash with Federal Reserve Bank.
in Cash, or with
Federal Reserve Bank.
amended—
deposits with Federal Reserve Bank.
3% of time deposits with Federal Reserve Bank.
7% of demand
ac¬
the
and
President
of this law.
The
during the fourth month of the
period.
present
appear
How
System.
protected
be
country
provisions
possible assistance
the
would
Companies.
Reserve
facilities
bulwark
a
it
position of this country and how much better could the
National
we
gradually developed and by degrees we are creating
well fortified discount market.
This is something
never
Federal
by
American
is
security which did not exist prior
law.
during
Act,
Trust
the
I think
be
the
for
by
bility of protecting the country in an emergency rests to a large extent
with the National Banks and the 77 State Institutions members of the
emerge
importance, however,
during
•
in¬
getting this huge operation out of the way as soon as possible.
It has
been well said
that the bankers of the country must act as virtual
underwriters
this
profits
down
cut
further strengthened
and
Banks
for subscriptions.
enterprise
has
wonderful
develop
canvass
of
adoption
Reserve
be
may
I
case
important
an
of amendments to the
practically all objections
by State Banks and Trust Companies against joining the system
had been removed, but up to the present time only 77 State institutions
have joined.
We indulge the hope that in the near future the system
the
With
lie-
is clearly a
it
must
and
great
no
be
worked
has
raised
to
which has been kept
well,
go
granted
financial
the
put
similar effort in support of the second
because
that
however,
said
safe
the two billion
of
the
it
people were heartily interested ever has failed.
feel,
large
been
has
think
million
3,035
10.59
this
nothing
It
I
the
selling organization
that the
take
is
a
in
Spring.
in making another house to house
American
rally
loan could not have been
however,
the
showing,
forth
magnificent
sure
will
loan
all
This
task
The
can
team-work
The
last
the time of placing
at
1,700 million,
to put
Loan.
Of
,
in
sent
creditable
very
shall have
We
Liberty
of
all
by
law
new
of satisfaction and
sense
Federal
The members of this Associa¬
country
operation.
Banks.
National
is
admitted
be
painstaking effort and
point,
that
the
of
were
Liberty Loan,
which
will
It
of
campaign
arguing
bankers
the
their
for
the
in
scriptions
through
think
without your efforts the
Without
successful
dollar
I
dated
really
operation
it
banker
enactment
the
to
in
Our
huge success.
a
tremendously inspiring in making us
was
to that moment did.
up
great
outlays
that
say
prove
that "gigantic
of
meeting
repeatedly that
through.
should
us
idea of
new
a
responsibility
own
Liberty Loan flag—in other words, the Stars and Stripes—
the
nothing else
as
loan
meeting.
Briarcliff
the
that that
you
and
great
his
of
meant
support
in
gained
Every banker present
really
the
that
effort
missionary
from
by those who addressed
largely to the enthusiasm aroused
the
what
made in the American market
The
meeting.
this
the business of city banks by the transfer of reserves;
country
giving a
Those of you who
the
hope to have a
we
banking have
of
lines
abolishing exchange
charges.
But after recognizing the enlarged powers of National Banks
—rediscount privileges, acceptance laws, branch banking abroad, real
estate loans,
Trust Company powers, reduction in reserves—I believe
that as a whole the banking business has been immensely benefited,
the
con¬
that the
business along modern
been made
number of these important questions
interesting
and
new
at
discussed
change in
meeting.
the greatest loan offering ever
Many
possible and
work
be easily handled by
have
lines.
interest in the com¬
Many of us come
arouse
before us at this time
ourselves to changed conditions and to take advantage of
offered by the new law.
We must recognize the changes
been made and to successfully handle our business we must
adapt
facilities
which
with the magnitude of the operation
task which could
a
that notable occasion.
on
to
memorable
to general business.
adapt ourselves to these changes and develop our
Briarcliff last Spring must
It is not too much to say, therefore,
great banks of the East.
success
done
was
that
at
little impressed
the conference
to
the
restored.
piece of
finer
a
Liberty Loan.
Executive Council meeting at
the
munities
did.
never
the putting through of the great
than
attended
to
Association
Bankers
American
The
business has been made
the banking
change in
great
slightest disturbance
the
problem that we as National Bankers have
The
is
this
that
such
without
war,
a
as
tingent liability to continue many years after peace has been
the changes
Federal Reserve law have been
completed and that the law is now in full force and effect.
With the
organization of the Federal Reserve Banks now fully completed, we will
be in a better position to form an opinion of the law than in the past.
Conditions in the United States during the past three years have been
contemplated by the enactment of the
war,
great
a
reckoned
must, be
and
of
passing through an evolution—with the amend¬
during the present year, it may be said that
ments passed
for
without their
cooperation victory can never be
This is
because war-making as conducted to-day is the most costly enterprise
that men can engage in.
Besides involving a frightful waste, the dislodgment of productive business is so great and the social readjust¬
ments are so far-reaching as to force upon the banking community
is
It
Since November 15, 1913, the business of
restoring peace is taken up.
National Banks has been
grati¬
spirit of admiration and profound
a
im¬
The
their worth during the period
of sore trial in the early stages of the war and in connection with the
flotation of the Liberty Loan and the revival of prosperity incident to
the wonderful Increase in our foreign trade.
It is easy to see how the
facilities of this great system will work out to the advantage of Amer¬
ican business men after the war is over and when the serious work of
safeguards offered by this system proved
rest
future gen¬
the American flag is something which
about
read
the
make
working to
been
has
Defense
banking system at
for there is no doubt that the system to-day represents-an
advance over anything that this country has had before.
hand,
mense
civilization.
preserve
has
eliminated.
completely
""
tude.
to
work
strong army of business men under
respect
will
the
million yards of red tape,
have been
us,
of
Council
in
preparedness
the
the
have been among
business "
" big
country's
soldiers
many
which the
the
the
efforts
that
so
When the history of these
I believe that it will be found that
written,
of
unselfish
most
science,
has
be
immensely in the battle
trouble¬
will count
service and
for civilization.
won
command
Through
of
be
render¬
These unpaid captains of industry are
Washington.
truly patriotic
a
that
country is to be congratulated in having such a
The
but
test,
sort of
a
perplexing difficulties that
in
met
we
stant recourse to the
City, Sept. 26, 1917.
called
been
living have
now
terrific
a
it all has
since
elapsed
States have
Under the provisions of the present law, the banks have in¬
rediscount facilities of the Federal Reserve Banks.
system.
Joseph S. Calfee
Atlantic
Reserve
City
Banks'
requirements were—
15% of demand deposits.
5% of time.
BANKERS'
168
Classified
CONVENTION.
follows—
as
of
0% compulsory (in Cash).
6% compulsory (Foderal
4% optional In Cash,
Reserve
Bank).
The
with Federal Reserve Bank.
or
with
Federal
Reserve
Bank.
3% of time deposits with Federal Reserve Bank.
the
Reserve City
been
Central
Banks'
requirements
were—
18% of demand deposits.
gold
'
of this
reserves
non-member institutions
7% compulsory
Federal
that
Reserve Bank.
with Federal Reserve Bank.
or
is
The
recent
all
placed
the
although
banking
It should
banks
this
district,
currency
his
Where
to,
requiring reserves
Reserve
far
so
not
are
required
to
carry
stated
any
needs.
" till
"
money
an
or
'
would
in
banks
suggest
additional
Europe,
that
branch
to
banks
not
are
the
render
should
lie
system
receive
or
or
branch
a
from the
currency
thereof,
Federal
created
night,
over
Reserve
in
in
Bank
for
time
the
this
is
not
possible
banks
in
will
find
it
to
necessary
of what is usually
excess
carry
considered till
It
present
5
reliably
are
time,
of
cent,
per
Owing
find
to
district.
quired
This
tions,
money
but
and the
fact,
2776,
which
dollar
bills,
and
U.
tion
than
five
to
that
so
for
of
their
of
a
the
re-
cannot'
this
ever
In
Federal Legislative Committee
has
prepared
amendment
an
to
increase in
the
Banks,
higher
a
for
presented
are
of
one
denomina-
of
cost
issuing
should
This
to
same
be
the
enable
paid
Federal
by
the
Reserve
request from
a
bank
member
is
It
obvious
Federal
will
it
that
Reserve
Banks,
cooperate fully if we are
in
reserves
bility of the
concerned,
these
Reserve Act
system,
so
that
It will
the
in
Banks,
of
and
all of
they
the
of
time,
the greatest
banks
act.
"
the member banks
as
members
efforts
render
member
and
be established,
benefit fo the reduction
the
far
so
time to
upon
of
banks
member
that may
to do
us
the
the
difficult
measure
system,
in
to
of
fact
of
Reserve
problems
everything
making
are
Governors
Federal
have
are
in
our
perfect
the
assistance
to
the
and
entire
country.
The
and
them
to
on
till
the part of member banks to re-establish their
money
respond
to
through
all
the
the
medium
legitimate
of
rediscounts
commercial
demands
their.
in
may
some
develop
to
danger
abuse
in
this
power
this .privilege.
of
expansion,
Any
and
disposition
a
on
due in four months, which would
note carrying same for thirty days,
with the Federal Reserve
to increase the liquidity of member banks,
of
the
done
with
to
paper
tendency
the
part
acceptances,
plan
attractive
of this class.
The
and the sale of the
the quality
of the
goods,
hoping
reduction,
a
Board
Reserve
and
the
Federal
Reserve
Banks
have
of trade and bank
attractive rate on this class of paper when
by
the
eliminated
set
this
a
period of great prosperity largely
war.
.
less mercurial, and could be
shrinkage.
Merchants should
reserves^ so that they will be prepared to
if, and when it occurs.
Abnormal profits should not
which
by
a
are
more or
corresponding
inventory
up
loss
dissipated
European
in the market price of raw materials has resulted
large book profits,
therefore
"
*
enjoying
and have been
The rapid advance
easily
an
rediscount.
for
about
brought
or
the
render
this condition exists it Is easy
When
fault with
find
to
secure
Federal
We are,
the
on
everything in their power to encourage the use
presented
be
sold.
commodity
the
acceptances and grant
in
to
in this manner,
tendency to eliminate any disputes that may arise
the account, resulting from a drop in the market
have a
customer
thereby
and
of discount
outstanding accounts
connection
price
for
patrons
accounts,
rate
lower
financial structure,
to secure trade
our
their
encourage
a
rediscount
for
strengthen
outstanding
will
paper,
tend
would
grant
closing of
in
eligible
be
greatly
of
lieu
should
This is a time for
retire outstanding bonds,
floating indebtedness, and to set aside liberal depreand generally
to place business oh such a high
in the payment of large dividends.
thoughtful merchant and manufacturer to
to
liquidate a
ciation
reserves,
stand a long period of depression.
If the
the better.
If this policy is pursued
prepared for any emergency,
The banker's advice is sought in times like these and a word of
caution may prevent many a merchant and manufacturer from
overplane that It will be able to
depression
does
not
come,
all
throughout the country we will be
himself.
C.
A,
Hinsch,
Chairman.
Gborgb
COMMITTEE
•
ON
*
*
is
suggested
the Commercial Note Brokers to
urge
issue notes
to
patrons
should
Banks
patrons.
There
can
the open market,
enable
of
maturity,
to
and it has been
maturity,
ninety-day
a
reserves
will
if not carried
character,
of commercial note brokers, to issue notes paydate.
This paper is not eligible for rediscount
reached
This
reaching
ability
their
this
of
buying banks should
would
absorb
force, places the entire responsi-
Reserve
several
from
the
in
them
to
assurance
framers
now
is Incumbent
assist
to
power
it
and
solve,
the
and
without doubt
will
the
as
Federal
the
upon
institutions,
Board,
the
the branches
of the country,
reserves
for
necessary,
to attain the full
by
contemplated
Federal
The
be
and
to
be
institutions
after
would
it
Banks.
and
of bills of all denominations,
to a
respond
will
hope or expectation of a renewal.
This will
to increase or decrease their loans
any
medium
has
it
The
hand
which
obligations,
percentage
bank acceptliquidated at
a
paper,
the open market, or re-discounted with the
Banks, at a rate which will usually provide a fair
months
six
when
redemption.
for the issue of one dollar bills by the
ample supply on
promptly
of
issue
the
S. Treasury notes
invest
should
only necessitate the purchaser of a
denomina-
difficult than
outstanding
same
Government.
can
in
farming
banks
small
of
money
thereto.
to be
the
part
as
resources,
more
material
now
further provides
keep an
they
urge
prior
in
the shipment of currency composed of bills of desired denominations.
the
to
a
when
dollars,
States
Banks
paper
for bills of smaller denominations.
Association
Certificates
Reserve
United
of
by issuing one dollar bills in lieu of U.
The said bill
Federal
that
pending in Congress, known as the Hayes Bill, H. R.
provide for
will
stocks
acute that the
Bankers
Silver
S.
during the
located
counted
system
it has been
to the demand
now
formerly
large
that
banks
especially,
profit for the risk incurred.
for concerns selling'their paper in
of
the
through
able
money
patrons.
Business
borrowing, during
customary
of not less than
for*banks
customary
of the
the new
these
so
the
at
until
been
carried
so
result is,
American
the
cities
larger
certain denominations of
has
under
the situation Is
bill that is
a
the
cash on hand
to carry
the needs
to
accumulate
to respond
year
in
deposits.
net
it
banks
large stocks of bills of small denominations,
reserve,
to
of
their
respond
afford
that
necessary
period,
to accumulate
to
it
scarcity of
the
moving
crop
position
informed
part
either in
Reserve
is
to their
capital,
high-grade commercial
in
short-time
paper
sold,
percentage
success
that
their own capital is insufficient to enable
covering purchases of merchandise,
cities,
funds
banking
as
be
Federal
money.
We
will,
at
the
and especially
banks for seasonal
upon
bills
their
larger
other
the
Act,
■
in
in effect
are
depend
without
maturity,
enable
of
Reserve
Federal
the
only
the
and
ances
it
the entire burden of
provided by tbem through the
the nation.
materially assist in assuring
reserves,
loanable
their
banks to bear
stability
very
can
which
in
patriotic duty of all
A great many will argue
the cost
discount
to
in exchange for gold.
all classes of banks
the non-
periods of the year as
readily
considerably
It
should
Banks
the
keeping their institutions in a liquid
is not the province of a commercial bank to extend long-
credits,
them
has
and it is the duty of
to
pertainft
houses
of
the
on
to pay their share of
financial
the
condition.
great
so
Reserve
reserves
Banks,
working of
the
time
of
join the system and
to
banks
Member
Avhich
8ucb
however, that the distances that separate
smaller
which
termed
-
the
insuring
of
Federal
the
"Granted that this is true,
by joining.
Federal Reserve
hanks
Banks,
member
the
as
of
of
the
ability to attract gold
is
it
and
which has been
insurance,
medium
business.
hand
on
the
by
concentration
be perfect until
fold,
the member
to expect
fair
financial
member
that if possible, each member bank in the district could
so
District,
day's
cash
from
country,
ship
next
Bank.
Bank.
Federal
the
country,
ordinarily
current
satisfactory,
generally
is
what
for
be borne in mlnd;
each
of
Reserve Act
with
tbis
institutions
vaults
own
sufficient
the central
in
carried
of
Reserve
Reserve
basis similar to that of the European banks,
a
on
Federal
Federal
Federal
the
be
with
with
but carry balances with the large central banks, only retaining
their
amount
as
to
to
business
European
reserve,
in
banks
concerned,
are
deposits
amendment
menibfcr
banks
time
bjr
to the Federal Reserve Act,
become members.
to
will lose money
they
not
this
13% of demand deposits
of
the
into
(in Cash).
3% of
The
This
country.
of course
not
brought
6% compulsory
As amended—
checked
stabilizing influence
most
a
country.
the recent amendment
will
system
been
have
.v.-
.
5% optional in Cash,
but have
this
of
be
doubt
Banks.
submitted
statement
cannot
augmented by
The
follows—
as
Reserve
enabling the Reserve Banks to issue their notes
5% of time.
Classified
financial
transactions
without
will
so
Federal
Federal Reserve Banks has enabled these institutions to mobilize
the
in
do
to
the
week,
each
financial
deposits
of
strong
Banks
As amended—
10% of demand
banks
member
management
'
RESERVES
'
George
M.
Reynolds,
Woodruff,
J.
D.
Ayres,
F.
CL
Watts.
-
State
Bane
Section
American
Bankers'
Association
First Annual Meeting, Held in Atlantic City,
INDEX
State Banks in Reserve System
State
Bank
The
double
debits
of
G.
W. P.
Page 169 | Address of President
-
in
grouped on one side and liabilities on the other.
are
considering the merits of
observe
this
balance brought down,
system./
it
falls
"■
which
upon
'
will
culated
In
it
of the
The Federal Reserve Act is the fourth
important bank¬
ing law of wide application which has been enacted by
At the outset bank' charters were granted by
Congress.
the states and not by the general government.
ized
control
and was
institutions.
tended
charter to
to be dangerous
for
a
strong bank
with
our
ex¬
of note issue and of discount, was felt
that
a
recognized
was
being contrary to the spirit of
as
the need
Yet
powers
keenly,
so
credits
of
regarded
Central¬
early
as
1791,
as
dominant banking
Congress granted
a
institution owned in part
by the government, known in history as the first Bank
of
the United
This bank appears to have been
States.
wisely managed and it undoubtedly served a useful func¬
tion.
There is
evidence of any
no
flagrant abuse of its
but it was unable to secure an extension of its
powers,
charter and
obliged to
was
go
into liquidatiqn at the end
of twenty years.
demand
The
large bank of discount and issue,
a
continued
however,
find
to
expression, and
five
years
later the second Bank of the United States was chartered
afforded through its note issues,
a
history; and
arbitrary
of
control
credits
and
its
participation
in
politics created so strong a prejudice against it in the
public mind that upon the expiration of its charter it
too
was
unable to secure an extension, and after a few
additional
years
of existence as a
finally forced into liquidation.
state bank
it was
In the ledger of public
opinion the balance was found to be on the wrong side
—the evils
1863
National
connected with the bank
exceeded the good.
the prejudices which it aroused that no
bank modeled upon
similar lines has since been allowed
exist in this country and probably none
For more than
second
in
this
Most
country
had
were
be.
the
States the state institutions
financial
the subject of banking,
was
the result.
ing,"
absolute
power—the
national
"A
One of the
the diffusion of
each
bank
with localized
bank¬
autonomy
currency,
of
The law
the theory of the system's sponsors.
was
a
and the
subjected the banks to wholesome restrictions and regu¬
lations, and required that their-operations be
by
supervised
bureau chief of the Treasury Department, known as
a
the
The national banks
Comptroller of the Currency.
authorized,
were
the
upon
security
of
the
objections
principal
to
state
bank
adequate provision was made for their
were
receivable at par in all parts
value
their
and
the
was
free from
in that
the insolvency of
A dual system of reserves was estab¬
issuing bank.
the law providing that part be
for. these banks,
kept in lawful money
in the vaults of the banks and
be kept with other banks
that part
notes,
redemption, they
of the United States,
affected by
not
States
United
bonds, to issue circulating notes, which were
approved as reserve
agents.
Experience has shown that the national
tem
defective in. Three vital
was
The
(1)
currency
provided by the banks while sound and stable,
its volume did not depend upon the needs
inelastic;
absolutely
was
banking sys¬
particulars:
trade, but was regulated rather by the price of the government
bonds'against which the national bank notes were issued.
(2)
The pyramiding of reserves was another source of weakness.
Banks in the larger cities acting as reserve agents for the country
banks would have a plethora of funds
at
certain seasons of the
of
while
year,
their
rediscount
no
nor
of
was
there
currency
lack
of
when crops were moving,'
would be called upon to
correspondents. There was
market in this. country available to the larger banlcs,
any way of making adequate additions to the volume
would
heavily
for
especially
times,
other
at
deposits
rediscount
decrease and" they
their country bank
in times of stress.
,
A third defect in the national banking
coordination and cooperation. There were
pelling banks
to
resources;
aggravated
reserves
by
the desire of frightened banks to
regard
for
commercial needs,
without
were
no
means
of com¬
stand together for the common welfare, to mobilize
and in all of our financial crises the trouble was
thought for the general
companies
lay in the
system
affected
build up their own
and
without
any
banking situation. The state banks and trust
in the same way as the national banks.
field to themselves.
permitted to issue circulating notes
under the laws of their
ever
twenty-five years after the fall of the
Bank of the United
of them
will
on
way
Banking system
banking
their
to
legislated for the third time in
Congress
chartered.
(3)
So strong were
contended that the.
ever
underlying principles of this Act was
satisfactory
circulating medium, and was useful in many respects, its
authority has
satisfactory.
In
The stormy" career of this institu¬
by Act of Congress.
tion is familiar to all students of financial
while it
all
»
lished
for
degree coresrponding to the distance,
a
experience of this country with state bank notes was at
comprehensive
•' '
>'■ " ■"..
'
•
.
the merits
in
financial
no
State
local in its character, and when cir¬
from its place of issue the discount upon
away
increased
and
and its amount and the side
determine
System
Reserve
the protection of the note holder.
bank currency was
tages and the draw-backs must all be taken into account
—a
Page 172
-
uniform, and in most cases were entirely in¬
adequate for
The advan¬
principle of debit and credit.
not
were
banking system we must
any
-
Harding, Governor of the Federal Reserve Board.
all balance sheets resources
on
A
-
-
Federal
the
There must be an alignment of
credits, and
PROCEEDINGS
BANK
principle is the foundation of the
entry
accounting.
and
-
Membership
By
science
-
-
STATE
TO
N. J., September 25, J 917
respective states but these laws
These
defects
in
the
banking system
evident during the severe
were
painfully
financial panics of 1873, 1893,
BANKERS'
170
while perhaps not entirely responsible for
and 1907; and
weakness
the
impossible
of
credit
our
confidence,
restore
to
requirement of business,
drastic
too
they rendered it
provide
to
for
the
to minimize the effects of
or
non-member
from such
banks as
desire to
may
panic of 1907, serious considera-
given to the subject of banking and currency
carry
balances with them for exchange, or collection purposes,
and no interest is paid
by Federal Reserve banks
on
A glance at the statements which have been
deposits.
issued by national banks during the past two
liquidation.
After the memorable
tion was
structure,
CONVENTION.
years-
which show generally enormous gains in deposits—will
demonstrate
absurdity
the
fears formerly
of the
ex-
reform, and the law which was approved on December
pressed so often that the Federal Reserve banks would
23, 1913, known as the Federal Reserve Act, the result
reduce the deposits of their member banks,
of
aroused
an
personalities,
public sentiment sensed by
Instead of one central
the outcome.
was
There is
few strong
a
occasion here for an extended review of
no
the powers of the Federal Reserve banks,
for
or
dis-
a
bank, provision wras made for the division of the country
cussion in detail of rediscounts, open market, operations,
into twelve districts and the establishment of a Federal
and note issues.
Reserve bank
certain
each.
in
operation has shown to be desirable; and, with-
attempting to discuss
the act
reasons for the changes
the
which have been made, let us
consider some features of
state
Each
which
banks
member
equal to six
is
bank
of
Federal
stockholding banks
entitled to receive an annual divi-
are
paid-in capital stock, which
been fully met all the net earnings must
States
United
of
the
until
net
earnings must be paid into
fund
that
to
amounts
forty
one-half
surplus fund
a
of
centum
per
have
be paid to the
franchise tax, except that
a
as
claims
dividend
After
cumulative.
is
paid in, the other
After all necessary expenses
dend of six per cent, on the
dividend
One-
bank have been provided for, the
Reserve
paid-in capital stock of the Federal Reserve bank.
in
Federal
a
the
of
retirement
or
the
Stock
bank is not transferable, but upon
reserve
liquidation
its
bank,
member
a
to the Federal Reserve bank
stock must be surrendered
for cancellation, and payment
stock
of
plus one-half of one
surrendered,
per
centum,per month from the period of the,last dividend,
provided the payment does
the book value
not exceed
of the stock.
While
Reserve banks,
will before
their current earnings
Although carrying reserves of about 80 per
cent, against all deposit and note
net
earnings
months
12.1
for
the
the
the
per
month
of
17.3
The objection,
frequently
operation of the
at the rate of
Federal
during
the
Reserve
valid
a
Each
one.
Federal
therefore,
first
banks,
stock would prove to be a dead investment,
autonomous
earnings
The average net
cent.
per
eight
of the present year were at
August
raised
was
average
the'first
for
have been
year
annum.
of
liabilities, the
banks
twelve
present
cent,
rate
'which
of'the
the
of
per
such that they
are
great while be able to pay all accumulated
a
dividends.
minor consideration with the Federal
a
Reserve
a..1
the
is
year
of
that the
Even though
irig the gold
against the Federal
Reserve notes
law is 40
per
can engage are clearly
the Board of Directors
Discount
of
each
Federal
and
applications
for rediscounts
One Federal
authority.
appoint one
bank
Federal
the
Reserve
of five members.
credit but
a
Board
In this
alternative to
being
given
make removals
The Federal
tition
for
compose
power
to
approve
deposits
with
the commercial
They
are
excep-
Reserve
to
into cornpe-
banks
not
which
allowed
to
receive deposits from individuals, firms, corporations, or
municipalities.
deposts, they
They
receive
While they
are
given
deposits
no
from
may
receive United
States
monopoly of such deposits.
their
member
rediscount
affirmative
have
vote
diffusion of
a
by the law
be¬
to
charters.
their
The
of
years
the
an
original
as
mem-
operation
The
Act did not state in sufficient detail the terms and
con-
dition for state hank membership, but left much to
reg-
illation by the Federal Reserve Board
Board's interpretation of the. section
bank membership
was
satisfactory
banks
and
and
;
while the
relating to
state
officials of
to
most
of the state banks which contemplated becoming
mem-
bers, it
was
safer
ground
if
felt that the banks would be
the
terms
stated
were
definitely in the„Act itself.
law, and
is
that
one
relating
to
particulars
the
the
admission
"Any bank
system-
as
So
of
be entitled
fully
a
to
this
does
and
Federal
Re-
of
state
becoming
shall
all
member
a
retain
state bank
its
or
all
privileges
clause
banks
and
amended and reenacted,
the
powers
created, and
member
the
of
charter
trust company,
was
of
protect
full
corporate
granted it by the state in which it
shall
a
of the most important amendments
Section 9,
continue
may
on
clearly
more
The Act approved June 21,
1917, amended in several
serve
banks."
charter
powers
state bank that the Attorney General of the United
States has recently ruled that it exempts
from the restrictions of
which
their membership.
are
any other
resources,
bers, but during the first two
that
salaries and
come
paper
Act provided for the admission of state banks
Reserve
for cause.
Reserve banks do not
the
we
required
were
surrender
Federal
assistants,
With this
chosen by their own directors, the Federal
Board
by
bank,
come members and only a very few of them chose as
provides
an
tion, all officers and employes of Federal Reserve banks
are
eligible
bank may
upon
way
concentration of
All national banks
trust companies.
He is author-
more
or
of
Reserve
exercise
to
Reserve
no
paper for another, either voluntarily, or by direction of
a
law
fixed
are
passed upon at each bank without reference to
as
the
rates
subject to the approval of the Federal Reserve Board,
to
under
required by
defined by law, and there is
centralization of credits.
and
subject to the approval of the Board.
outstanding is
reserve
The operations in which the banks
cent.
and statutory rights
ized
no
The gold reserve
now
81^ per cent., although the normal
longer
One of these three is chairman
Reserve agent.
as
be
may
be effected by increas-
may
by the stockholding banks, and three appointed by the
Federal
there
held against them.
reserve
Federal Reserve Board.
and
available
paper
reduction in the amount of Federal Reserve notes out-
is
no
institution, with nine directors, six elected
of the board
against the
reserves
eligible
of the system few chose to exercise this privilege.
,
profit is
outstanding
standing, actual contraction
will be made to the retir-
ing bank equal to its cash paid-in subscriptions on the
shares
capable of responding to
of great commercial and industrial activity, and by
or
security for the notes.
required to subscribe an amount
being subject to call..
a
one
contracting in periods of dullness, the limitations being
membership.
their
constitute
half of the amount subscribed must be
half
nish an elastic currency,
the needs of the country by expanding in times of stress
notes
Reserve bank of its district.
stock of the Federal
admitted by all, except a few
now
the national
cent, of its own capital and surplus to
per
It is
irreconcilables, that the Federal Reserve banks do fur-
the amount of gold obtainable for
it stands today.
as
The Federal Reserve banks are owned by
and
in
the experience of
important particulars which
actual
out
been amended
This law has
relates
of Section 9
to
interlocking directors.
be subject
to
Reserve bank by examiners selected
Federal
made
by
Reserve
reserve
state
state bank
Other
clauses
examinations made by di-
rection of the Federal Reserve Board
of Federal
a
the Clayton Act,
amended provide that while state bank
as
members shall
Section 8 of
Board,
in
cases
or
or
of the Federal
approved by the
where
the
directors
banks shall approve the examinations
authorities,
such
examinations
and
re-
BANK
STATE
ports
by
be
may
examiners
serve
Board.
banks
are
accepted
selected
no
from
the
removes
provision for
Federal
for
amended
examinations
of
that
objection
the retirement of
Reserve
violation of
provides
that "
it
regulation.
state bank
any
eral Reserve bank may do so,
or
with
have
upon
holdings of capital stock
the life of the Aldrich-Vreeland
of
absorbed
in the Federal Reserve bank:
few
a
months
issue of
an
country has ever known.
stringency,
Board, cancel within the same calendar year more than
twenty-five per centum of its capital stock for, the purpose
in
of
loans, no forced
effecting voluntary withdrawals during that year."
the
the
But
law.
members
in
order
undue
an
full
avoid
to
advantage
giving
National
over
bank
State
banks,
it
provided that "no Federal Reserve bank shall be per¬
mitted to discount for any State bank or
trust company
notes, drafts or bills of exchange of any one borrower
who is liable for borrowed money to
of
the
capital and surplus of such bank or trust com¬
but the discount of bills of-exchange drawn against
pany,
existing value and the discount of commercial
actually
or
such State bank or
amount greater than ten per centum
trust company in an
business paper
actually owned by the person negotiat¬
ing the same shall not be considered as borrowed money
bank,
for such State bank or trust company,
require a certificate or guaranty to the effect that
such bank in
the borrower is not liable to
of the
excess
provided by this section, and will not be permitted
liable
become
to
drafts
notes,
with the
in
excess
of
bills
or
Reserve
Federal
have
member
of
this
amount
exchange
are
Therefore,
bank."
in
its
while
such
discount
under
should a
large
loans
which would be excessive for a National bank, but
which
bank
State
are
portfolio
permitted under the laws of its State, no objection
can
raised
be
from
the
standpoint of
by the
amount,
Federal Reserve bank against such a loan; but in
offer¬
ing rediscounts to a Federal Reserve bank, the member
bank should
offer paper which comes within the 10 per
Our country
most
frightful and costly
war
of all history.
Totally un¬
prepared six months ago for a serious conflict, it has now
in
training a vast army, and within the span of a few
months
will
have
completed
land and sea, beneath the sea,
preparations
narily would have required years.
on
financing our un¬
United
aggregate $1S,OCX),000,000 for the first year—$1,500,000,000
a
month, or $50,000,000 a day.
since last
years
It
could
which
three
April have far. exceeded the total for the four
of the Civil War.
banking
Our actual expenditures
system
would
In such circumstances our old
have proved
totally
inadequate.
not, in point of fact, have withstood the
we
felt in
great
1014 when the war broke out
European
powers
on
one
shock
between
side and two on
The twelve
a
was
by
means
matter of
Reserve
Federal
States expects to father up
banks
Through the
of the organiza¬
the funds necessary
in the present crisis, and by reason of their
knowledge of the ability of the Federal Reserve banks to
rediscount
for
the
them,
banks
member
without fear to the impending
look
Reserve system—members perforce at
most of them
the United States, of which per¬
membership,
haps eight or nine thousand are eligible for
National
standing shoulder to shoulder with the
are
many
in
banks
sustaining
these
Federal
banks, which all agree are our financial
included
are
of
many
larger
the
and
portant State banks and trust companies.
of
$61,000,000;
their
and
new
but
their
total
surplus
resources
has
system
not
that their membership
$62,000,000,
$1,200,000,000,
are
State banks
to
localities,
has extended to all Federal
The banking laws of
for the admbission of a bank, but they
Capital
5
.
20,485,000
8
Atlanta
0
24
Chicago
.6
Louis
7
....
....
Francisco
7
10
Dallas
..
1
84
Total
'
Resources
Surplus
5,000,000
4,700,000
1,740,700
2,405,000
•
3
Richmond
BANKS
18,(517 000
10,750,000
14 500,000
1,825,000
543,500
$
$10,275,000
8,240,165
4,700,000
412,900
2,309,750
$10,300,000
7
York
MEMBER
/
Banks
.-.
Cleveland
Totals
confined
been
recently been amended in this, respect:
Districts
City
re¬
the stock ownership
STATE
Kansas
being
banks as well as large.
prohibited
Number
Minneapolis
of
than
except the third.
formerly
which is necessary
have very
Sau
- more
than
than
membership
day, from small
Pennsylvania
St
more
more
im¬
more
members
to
following table shows the movement of
the
in the
The capital
company
amounts
to
to
for
applications
every
Reserve districts
New
trust
system
Reserve
Federal
and
and
bank
State
the
the
Reserve
bulwarks
Just eighty-four; but in this num¬
present emergency?
ber
first, but
by choice, and of the 20,000 State banks
now
and trust companies in
how
forward
demands upon them.
7,GOO National banks are members of the
than
Boston
dertakings and for taking care of our commitments will
should remember that before the
they have effected, the Government of the
It is advancing enor¬
The amounts necessary for
war.
war
we
agents of the Government.
for its support
to other nations with which it is associated in
mous sums
this
for
and in the air, which ordi¬
The crops of the country will be moving at
recurrence.
which
tions
into
It is engaged
The amount of the
Liberty bonds.
facilities afforded by them and
in the
existence.
The country is now
campaign for the sale of the second
a
time, and
the fiscal
are
The
its
collateral
time
and the money situation
during the crop moving period
gency
annual
is now passing through one of the most
periods of
short
banks
establishment of the Federal Reserve banks money strin¬
ceived
cent, limit.
critical
the same
More
bills of exchange
amount
than the first.
Federal
of this section.
crucial time during
a
offering will be, at the very lowest, 50 per cent, greater
condition of the discount of notes, drafts and
as a
shall
•
The Federal Reserve
within the meaning
in
issue of United States
rights
statutory
is determined entirely by
question of excess loans
State
is
retain
shall
members'
of
about to engage
which becomes a member of the Federal
system
At
kept completely under control.
was
The Act now provides that a State bank or
enjoys under the laws of its own State, so that
liquidation.
and bankers' acceptances
notes
would
Reserve
Yet there has been no financial
there has been no general calling of
rates;
$GG3,196,000
membership have been deterred from making application
which it
have
cent. Gov¬
per
the month of June the Federal Reserve banks discounted
Many State banks otherwise favorably inclined toward
imposed.
subscribers
violent fluctuations in call money rates nor
no
discount
million
four
the most gigantic financial operation this
ernment bonds,
Reserve
depositors—a
the individual
$2,000,000,000 of 3y2
Provided, however, That no Federal Reserve bank shall,
be
element in this coun¬
.
Within
except under express authority of the Federal
trust company
banks.
Reserve
Federal
the
and
lacking.
Reserve
because of the limitations upon their loans which
Revival of con¬
practicable.
of security which otherwise would l*ive been totally
sense
the surrender and cancellation of all of its
Federal
the
was
return to normal conditions were coincident
a
the merchants
turers,
Fed¬
a
before the
even
organized,
safely through that crisis, for the
us
establishment
the
Act,
fully
try—the National banks, the State banks, the manufac¬
trust com¬
shall
the
Reserve
were
Their operation has given to every
after six months' written
with
carrying
fidence and
be
should
notice
filed
banks
notes and made their issue
The Act as
Board,
been
Federal
The
Reserve
of
means
state
state bank
a
unless
system
some
other.
Federal
Re¬
Act extended for one year
desiring to withdraw from membership in
pany
the
made
objection frequently urged was that the law
the
expelled
lieu
approved by the Federal
subject to double examinations.
Another
made
This
in
or
171
SECTION
*
232,528,220
109,490,595
112,078,100
8.572,391
33 219 162
393,981.9(54
2,310,000
149.087 320
13 919,808
03 975,595
835,000
50,000
1 53 (550
100,000
9 117.321
1 493,790
$01,545,700
$02.199 905
$1,217,404,272
2,855,000
BANKERS'
172
I
confident that in
am
of
State
the
member
amount to more than
few weeks
a
banks
and
the
more
in
resources
companies
will
trust companies of America
will give earnest consideration to the contingencies
self-interest,
well
as
system,
patriotic desire
as a
co-operate will determine them to apply for member¬
ship, and that in time the number of State bank members
be
will
In
in grouping
system,
serve
balance sheet
your
up
the assets
of
and liabilities
the
to
task
state
eral Reserve banks worth while?
their
abolished?
If
they
worth
are
sustaining, should
should
or
all
in
unite
upbuilding
them?
their
Will
strength be augmented,, and the financial welfare of the
Ask
country further safeguarded, by your membership?
State
those
their
charter
already
are
have
powers
of
hampered
been
whether
members
most
curtailed
or
methods of doing business;
banks
serve
them if
eral
have
been
with their business
whether the Federal Re¬
arbitrary in their dealings; ask
they have had difficulty in getting from the Fed¬
banks
Reserve
accommodations to which they
any
entitled, or if they have had no occasion to ask for
were
accommodation, what the knowledge is worth that the ac¬
commodation
these
when wanted.
be bad
can
The
answer
to
questions I have no doubt must be placed on the
year,
the
most
financial
the
affairs
humble
wage-
epitomization
an
their
Federal
of
the
rights
consists
in
acquainting
retain
benefits
the
urged.
being
their
by
of
more
the
own
laws
of
by membership in the Federal
of
part
a
the
members
the privilege
National
objections
those
bank
State
lost.
what is
privileges of the national bank,
without
legis¬
new
gained and nothing
retain supervision
they
;
they
privileges,
Banking
which
of the
hear
we
Federal
Reserve
the jurisdiction of the Comptroller of Currency.
State
between
uniform
Bank
Banks
Reserve
statement
work attractive,
duties
of
Examiners
and
Governors
of
adoption
of
resulted
in
the
similar
has
to
those
blanks,
used
now
The plan is to make that portion
rather than repelling,
office
the
with
to
of
which
of
members
officials
the
the
number
a
by making the statement
their
the fullest,
to
duty
the
to
My
serve.
imagine
cannot
point,
anything that
see
could
do
the
to
Reserve
that
banking
a
be
which
them
they
thus
far
business
as
whole,
a
his
to
than
de¬
been
has
begun
relation.
selfish view¬
institution
own
join
to
be
may
has
it
as
am
to do
were
satisfactory
more
as
I
Reserve Banks
beneficial
more
well
and I,
state banker, from the most
a
would
of
into
me
as
Banks.
you
if it continues
and
establishment
the
as
country,
with
experience
own
entirely pleasant and satisfactory,
cannot
the
Board,
Reserve
that.the federal
so
brought
me
Reserve
Federal
simply wish,
men
greatest service to the banks of
signed
elected
you
Federal
of
thoroughly convinced that these
and
it,
been
simple rather than complex.
with
I
beneficially
is
see
has
they add to this,
Federal
and
I
as
much
prestige of
the
conference
association
I
This
State Banking Departments.
our
our
of
of
and make possible
country's
our
from
banks
the
country with the advantage of this
all the
the
the
of
The
Board have interfered
Reserve
states; and
recent
forms
eral
States,
banks
System are not under
by their membership; whether the regulations of the Fed¬
or
piece
Constitution
join
to
they retain their former charters and,
frequently
some
by
of
affect
corning
state
System,
rediscount,
of
the
leave these
should
departments;
System,—all
A
stabilizing
capitalist.
their charter
simplified
which
banks
the
the
banking
own
Reserve
they be supported almost entirely by one class of banks,
greater
no
them
United
of the
before,
important,
them
enable
which
wealthiest
for
For
stated
membership, ask yourselves these questions: Are the Fed¬
Would you care to have
unifying and
state bankers of our
lation.
As
been
year's work.
first
the
the Federal Re¬
on
privileges,
achievement
citizen
every
Our
eighty-four hundred than .eighty-four.
nearer
making
has
the adoption of
they affect state banks
as
desired
an
earner
since
System and enjoy its rights and privileges,
much
the
There
enacted
rights and
statutory
Reserve
ahead
country.
States.
amendments
The
full
this
of
legislation
of the United
of
to
affairs
the
constructive
trust
$2,000,000,000, and I cannot but feel
that if the State banks and
of us, motives of
CONVENTION.
the
Federal*
that
system
System,
*
On
asset side.
the
liability side of
I
balance sheet
your
also
want
to
Ross
entry:
carried—and there
of
interest
another
is
balances
reserve
on
which may appear
entry
both sides of the sheet—-the effect of the Federal
on
Re¬
collection system, for some of the banks will object
serve
to the loss of
at par to
earnings occasioned by remitting for checks
Others, and
the Federal Reserve bank.
number,
growing
stantly
will
bank offers for the collection
And make this extension
items.
of
the
on
the Federal Re¬
their
outside
own
the asset side: Every
on
magnitude that
been
citizen
has
Every
will
I
than
adds to their power
the
the
which
no
Reserve
world has
made upon
for
them, and to help
liberty and
the
figures,
country win" Its fight
our
safe and lasting peace.
a
strike
balance,
a
a<nd
Then add up
application
your
for
I
fear
best
that
the
have
men
loyal
every
the best assist¬
has
There
principles to which this land
President
our
the greatest
abundance.
aiding in the financial affairs of the
will
of
be
no
effective
of
System.
Vice-President
influence
of
banks
our
of
cerns
heavy
but
which,
nevertheless,
in which bankers could
way
the
back
to bring about that
way
country's
Make
Put
it
of
the
financial
serve
system.
united
a
if need be,
stabilization
financial
greatest
President
our
they have,
Ilinsch
as are
Join
the
system
that
28,000 banks,
our
that
advises
that
me
who
men
go
he
intends
to
all
use
of
the
American
the
Bankers
Association toward
unifying the
Vice-President Hinsch's undertaking most con¬
our
banks, the banks of our Section, that are
country.
because
us
know
of
know
more
seen.
being invited
membership will follow!
the
to
is of
take us.
may
few
as
front.
the
to
such
should hold at the disposal of
I
ready to serve with all
ing conditions, to respond to any demands which may be
entitled
to defend
tasks
unification
the
by
Federal
task
a
war
with greater effect than by the stabilizing of its finances,
of
know
The
takes the musket and offers bis life.
be met.
to
their country
and
has
those talents, of which he has in
tasks
have
is
men
man
bankers fall
the
in
war.
give, the best thought, the best effort,
dedicated.
To
States
He
young man
those means,
membership
.mind is able to conceive where it
with.
mobilization of
a,
dollar of reserves carried with the Federal Reserve banks
to maintain sound and healthy bank¬
to
The
ance.
about
you
This nation is at present at
no
of the United
confronted
been
is
angle,
President
country,
asset side because of the facility which
serve
a con¬
this entry
make
another
such
The
with
speak
from
this
make
it
is
join
to
after
the
giving
Federal
Reserve
System,
and,
gentlemen,
this subject careful consideration,
will
you
I
all
wish to do your part.
Annual Address of President
The
State
of
old, and has
20,027,
States.
instrument
being
for
the
.Bankers
September of 1916.
that
this Section,
That
J. H. Puelicher
American
the
membership of 8,451, out of
a
there
of
City in
at Kansas
organized
year
Section
Bank
number
of
The
Section
was
is
one
possible membership
a
state
if wisely governed,
In
Association
banks
in
United
the
be made
can
powerful
a
good of the banking profession is evident
from
the
Immediately after the organization of the Section at Kansas City its
officers
and
for
gram
of Directors
Board
coming
the
met
It
year.
for
of
system
this
new
Uiiited
the
Section
States,
assist
must
and
in
every
concluded
a
pro¬
the
that
the unification of the banking
was
that
of outlining
purpose
unanimously
was
great question which needed solution
the
those
way
handling
the
affairs
bring about this unifica¬
to
second
the
meeting
that
known
would
that
vitally
the
Bank
officers
which
officers
to
members of
held
in
ITederal
the
Executive
the
Chicago.
By
Act
Reserve
that
was
unification, of the country's financial
the
state
affect
Section
and
was
amendments
tending toward
and
banking
in
close
institutions,
the
of
members
remain
this
in
view,
several
ferences
with
members
resulted
in
joint
and
Delano,
Mr.
and
cers
Bank
a
touch
the
it
and
Executive
with
it
duty,
not
have
and,
Section
this
and
Council.
because
first
and
.meeting
system
and
experience and
of organizing
While
newly
organized
of
State
the
in
the
thus
largely
appreciation.
in
that
George E.
the
Allen,
Institute of
Section.
of
At
After
or
nature
feel
and
to
as
not its
the
your
officers
Federal
had
Reserve
Briareliff
at
as
Executive
a
number
Board
between
Council,
each
were
paragraph
of
which
Governor
conj
finally
was
agreed
at Briareliff
upon
made
by
your
were
officers
enacted
were
without expense
to the
the
State
to
the
taken
to
amended
an
into
law.
unofficial
Association,
Act
of
Reserve
as
will
far-reaching
with
and
have
make
could
them
of
the
the
of
work
about
cast
sufficient
group
would
to
For
me.
them
me
given
in
him
myself,
I
have
of
Unusual
salary
ability
in
to
the
agreed
to
a
year
me
as
and
in
the
be
have
difficult
director
of the
so
so
at
be
inadequate
an
sys¬
of
kept
to
its
with
one
expenses
to
a
paid
salary.
Ameri¬
many
young
position, temporarily if
These unusual
the
nothing could
be found whereby
of
I thank
ago,
were
At
financial
our
would
accept this
difference
no
have been
best
would
Council
some
the
have
necessity
salary if necessary.
no
made
lived up
they
positions which they are abie to fill with credit
the affairs
as
a
mat:
a
conscientiously
undertake
that
energy
make
any
unselfish
may
way
of
members
Secretary.
for
of banks
reminded
was
the
this
a
as
the
Executive
that
to
close
precedent,
this
for the
you
to
of my
may
Section
in
a
way
his services profitable
honor that
now
both honor and
I
feel
be numbered
opportunity,
that
I
which
Mr.
the
sincerely hope
servant
of
man
be
as
may
profit¬
to the Section.
has
been
who
men
among
and
I
that will
the requirements of the office
ability.
conditions of
with
difference In
undertaking.
continue
of
want
any
able
members
the
whose splendid work has put
his duties,
pursued
of
the
at
I
the long time educational
Banking,
of
intelligence which be would give to
to
be
be,
Allen
provisions met with the approval of those present.
Federal
must
it
of
Chairman
whole-heartedly, and appreciatively
Secretary's
themselves,
to
the offi¬
amendments
vote
profit
employment
read and thoroughly
a
and
Harding
and
representing
meeting the then proposed
affecting state banks,
reading of
Washington
made
that
your
this
the
The amendments
visits
the
meeting
Federal Reserve Act,
whether
of
of
that
customary
established
Council
largest
Section
and
Mr.
of
Chairman
and
Hulbert,
support.
of
tactfulness
the
minimum,
can
their
in
engaged
a
I
members
Executive
your
made
are
mention
tem.
concluded
was
Council
proposed changes
B.
complimentary remarks
unless
the
loyal
problem
which
E.
and
bedome
these
that
They
the
comes
now
Huxford
of Mr.
conformity with
officers
whole-hearted
And
know
in
omitted.
the
bqs
make
appreciation of the loyal
my
therefore, quite perfunctorily.
to
simply
been
It
to
had
being offered
representing the Federal Reserve Board,
members
discussed.
I
of
ter
express
Vice-President
Legislative ' Committee,
this kind
American bankers into
With
The
Federal
Executive
of
Hazlewood,
was
Council
time
Act.
see
support
ability,
December
In
a
the
the
reportrof
of
tion.
intelligent
the, Executive Council
of
foregoing facts and figures.
closing this report I wish to
and
my
am
conferred
as
I
were
friends.
grateful.
upon
understood
strangers
You
have
Trust Company Section
American Bankers' Association
Twenty-second Annual Meeting, Held at Atlantic City, N. J., Sept. 25 and 26, 1917
INDEX
Should
Report of Committee on Federal Reserve Act
Breckinridge Jones
Jay
-
-
-
Report of Committee
Page 178
Page 179
Frank
the
consid¬
points of view before a determination
The discussion of the subject may
reached.
is
best be had
First:
The
from
Second:
selves
The
may
if
advantages,
such
which
any,
may
accrue
to
Govern¬
the
advantages,
if
which the Trust Companies them¬
any,
derive from a connection with the ITederai Reserve System;
disadvantages, if any, which may result to the Trust
themselves
Companies
In
case
they
become
first
not
should become
a
part of it, they
respond, even if such action is detrimental to their
will
unpatriotic, to consider whether the benefit, if any,
which the Government may derive from
such action by
is sufficiently great to justify the
sacrifices of the private
or
nies
incur serious risk as a result of the Trust Compa¬
becoming
a
infreqtiently happens that an appeal to patriotism
It not
benefit to the coun¬
try, but, on the other hand, in harm to the people
them¬
selves, who are led astray by their own excessive zeal and
The nation is best served by those who
overenthusiasm.
reasonable and steady
the only
substantial benefit which the Federal
Banking System will derive from the Trust Companies
coming members is that such action will aid in the
teation of the gold reserve of the
of
the
be¬
mobil-
is
themselves.
of
At
Section,
a
resolution was adopted
urging the Trust Companies to keep
will in¬
therefore, that
compelling reason for the Trust Companies
no
•
,
Second.
Let
us
consider, then, the relative advantages and dis¬
advantages which may result from so important a change
in the conditions under which the Trust
administer
their
which side of the
affairs,
Companies must
possible,
if
and
decide
upon
proposition the most benefit lies.
Taking up the advantages which the new system may
afford:
The only ones of
particular importance are the
privilege, the ability to receive Government
rediscount
deposits, and the benefit of the collection system.
So
may
are
far
rediscount
the
as
privilege is concerned, this
be of some advantage to those Trust Companies who
in fact not Trust Companies, but banks, or
the Trust business;
where the
and they
but as a rule Trust Companies have
which would be available for rediscounting,
little paper
invariably have such business connections and
affiliations
as
to make the privilege of rediscounting of
comparatively small importance.
The other
ber banks,
benefit (if It be a benefit)
system, are already enjoyed by non-mem¬
under the recent amendments to the Federal
Reserve Act, and
reason
•
advantages, that of being qualified to receive
Government deposits, and the
therefore need not be considered as a
for joining the system.
Third.
The disadvantages which are
another
of the Trust Companies
the May meeting of the Executive Com¬
the Trust
It would seem,
action.
same
Reserve Act.
by the voluntary action
mittee
the
country, which is one
principal purposes of the Federal
This, however, has already been provided for in
way,
volve
of the collection
guided by judgment rather than impulse.
About
gold
with the Federal Reserve Bank certainly will not
voluntarily go further and join the system, which
consideration to the great
problems which are constantly arising, and whose actions
are
will be as effective
Companies actually joined the system.
the Trust
banking end of the business dominates and overshadows
part of the system.
leads to extremes, which result in no
give
if
Any Trust Company which is unwilling to keep its
interests represented by the Trust
Companies, provided that such interests are liable to suf¬
fer,
recommendation is complied with, it
It is certainly reasonable, however, and
the Trust Companies
It is evident that if this
made to secure such authority.
paramount, and must always
the upholding of the Federal System
that the Trust Companies
private interests.
respective, dis¬
joining the system in order to give It support,
consideration, particularly in time of war.
If it is necessary to
of their
patriotic devotion to their country.
The welfare of the nation is
be the
Mich.
Companies to do this, that every effort should be
Trust
hardly necessary to say that the Trust Companies
will yield to no one in
Page 183
-
tricts; and if State authority is required to enable the
there
members.
First.
It is
Page 182
-
-
-
Reserve Bank
with the Federal
reserve
action;
The
Third:
Detailed Proceedings
as
under three heads:
ment
on
W. Blair, President of the Union Trust Co., Detroit,
ceedingly important one, and should be carefully
all
Page 181
Report of Secretary and Treasurer
question whether Trust Companies throughout
from
Page 181
Publicity
Page 175
country should join the Federal Reserve System is an ex¬
ered
Page 181
Companies Join the Federal Reserve System?
Should Trust
By
-
-•
-
-
-
Report of Executive Committee
-
Page 180
Report of Committee on Legislation
Report of Committee on Protective Laws
Page 173
-
-
-
Standpoint of
Considered from
System
Views of Pierre
-
-
-
State Institutions, By
The
COMPANY PROCEEDINGS
TRUST
Companies Join Reserve System,
Trust
By F.W.Blair
Reserve
TO
their gold reserves
a
Trust Company
becoming
a
likely to result in case of
member of the system are
principally those which affect the transaction of their
Trust business
strictly, so-called, rather than such bank¬
ing business as may be
carried on by the company.
In
BANKERS'
174
order
the distinction between
fully understand this,
to
CONVENTION.
other hand, there is no general trust law to which corpo-
banking and the doing of a trust business should be kept
If
of the power of the Federal Reserve Board to make regu-
lations is not entirely clear, but it is certain if general
becomes the property of the bank, to be invested
loss is
a
If
depositor.
a
rules of uniform application are made, they must inev-
itably
profit is made it is the bank's profit.
and in either event the
depositor has a right to the return
its cestui que trust
"
technical title to the money or property is in
In
the trustee,
beneficiary.
States it is small and in others large.
same
may
holders and of officers; examinations by State authori-
a
not
the investment of
the trustee.
ties;
beneficiary, and
loss occurs, it falls upon the
0f the State authorities.
authorities
Many
banking and trust laws contain provisions
separate corporations; and where a single corporation is
limitations
rigid restrictions are
upon
provided as to the segregation of the two classes of busiThis distinction is recognized by
the Federal Re-
law
because of the conviction
that the trust .business could be administered best by sep- •
arate corporations that the recent effort to
a
obtain such
construction of section 11 K of the Federal Reserve Act
was
made
Having this distinction in mind, it is obvious that the
provisions of
designed for the conduct of a
system
a
hanking business alone may not fit the transacting of a
'
trust business.
Trusts
are
involved
purely private and individual.
The laws
respecting their administration, particularly those governing the administration and descent
property of de-
of
ceased persons are far from uniform throughout the coun-
try, varying according to the different and changing rerequirements of the community subject to them.
Rigid
.
restrictions
which
involving expert service and much expense,
not
are
only appropriate 'but imperative in metro-
politan communities, may be altogether out of place and
unnecessary in country
districts
regions, where conditions
At the present
aye
or more
sparsely settled
entirely different.
time there is
general Federal law
no
regulating trusts, and it is extremely doubtful whether
it
would
which
be
desirable,
if
even
general rules
the subject,
upon
parts of the country.
In
a
of
amendments
exercise
a
(about
the
the
applicable alike to all
*
considering the effect of
member
constitutional
is much doubt), to undertake to prescribe
there
Federal
distinction
a
trust company becoming
between
under
the
recent
banking and
of trust powers cannot be lost
sight of.
the
When
trust company exercises its banking powers, they are
exercised
under
recognized laws, which are practically
uniform, and little is left to arbitrary regulation; and
so
far
as
the Federal
Reserve Board has the power to
make regulations respecting
such regulations
requirements
is not
as
lg
of the Federal Reserve
unrestricted
the
member^
If
very
a
and
of
subject
the
only
Board
conflict arises,
may
which
Board,
to
is
such
impose
almost
difficult and undesirable situation is
or
whether
the
State
which
cornoration
has
been
notwithstanding the regulations.
.
-
.
-"V'-1,:,.
-
■
■
thls ,IS ^ Question fraught with doubt and unceralf* fe" 111 " of Government officials is illusnltt'd
conflicting opinions which have been rem
dera? « he «"fer of »e application of the Clayton law
,
.
Under the amendment of June 21, 1917, a State bank
Joining the' system is subject only to the provisions of
"ie Federal Reserve Act, which relate specifically to
retain its full charter and statutory rights as a State
hank or trust company, and may continue to exercise
a11 corporate powers granted, it by the State in which it
is created." The right to select a director, who is also
a director in some other bank or trust company, would
seem clearly to be one of the rights and privileges of a
State bank, when not prohibited by State law. Counsel
tor the Federal Reserve Board has given an opinion that
the Clayton, law prevents such State banks from electing directors who are also directors in other banks or
trust-companies. More recently an opinio^ has been
handed down from the office of the Attorney General to
the effect that the Clayton law does not in this case
aPPty-
/
The objection to
a
.
double control which
unseemly conflict, is a serious
one,
may
result in
and is intensified when
applied to trust powers, because of the character of the
control which would be exercised by the Federal author-
.
System,
corporations
member banks, and in all other respects" the bank shall
The interests
peculiarly local in character.
are
such
to State banks joining the system.
;
•
over
retain its charter privileges, may continue to enjoy them,
and securities of the bank, and that separate books of acwas
rights, and
i^ th^
strictly kept separate and distinct from the general funds
It
System, the corpora-
presented whether the regulations prevail over the State
cifically provide that trust funds and securities shall be
kept.
permitting State corporations
The control which the Federal
exercise
themselves.
These regulations spe-
granted trust powers.
count shall also be
action
inevitable, the
Board in their regulations of national banks, which
have heen
may
in the disCTeUon
soleIy
whose
power,
State
regulated by anjr Federal law upon the subject, but rests
requiring banking and trust powers to be exercised by
vested with both classes of
other
many
reciprocally must be subject in all respects to the control
The necessity for such segregation of trust
of the recent
and
^on js SUppoSed to retain all of its charter
plied with, and the importance of which is not always ap-
recognized.
liquidation;
do become members of the Federal
requirement which unfortunately is not always'com-
funds is coming to be quite generally
of
Under the amendments
be kept separate
ahd distinct from all other funds belonging to the trustee
predated.
methods
requirements.
This being so, the first requisite
funds should invariably
that trust
ness.
The
be said as to the amount of security to be
deposited with State authorities; the liability of share-
the funds
serve
A unf¬
the subject not only would conflict with
upon
if
after exercising reasonable judgment in
a
trust com-
a
trust business,
a
some of these provisions, but would be undesirable.
The trus-
tage or to mingle the trust.funds with its own; and
upon
before it can transact
right to use the trust funds for its own advan-
tee has no
is
some
For ex-
great difference in various parts of the
country as to the amount of capital which
form rule
While the
the beneficial ownership is in the
a
pany must have
The relation between the trustee and
is precisely the opposite.
State regulations to
with some of the
ample, there is
by the bank, because of the contract rela-
tions between them.
conflict
vthich State corporations are already subject.
incurred, it is the bank which suffers the loss;
of his money
The laws
The extent
The title to the money
disposed of as the bank may see fit, without accounting
to the
far from uniform.
are
with the bank passes, and the
creditor.
and
is that of debtor
wliich the depositor leaves
or
of the several States
The relation between a bank and its customer
in mind.
money
rations exercising trust powers must conform.
ities.
As already pointed out, it would not be
a
control
by Federal laws adopted in the usual and orderly method
of legislative procedure, as there
are
regulating the administration of trusts.
administrative control by executives,
no
Federal laws
It would be
an
who declare the
rules which they themselves enforce, rules made without
hearings of parties to be affected, and discriminatory, if
they choose to make them so; rules which have the force
the business of State banks,
of laws, though adopted in a manner at variance with the
naturally must conform to the uniform
long established principle that the administrative depart-
imposed
upon
National
banks.
On
the
ment of our Government should be distinct from the leg-
islative, that the people should make the laws
usurping
understood that this criticism
be distinctly
should
respects able, public-spirited and
in all
great principle which is involved.
a
are
It is
fair-minded.
Consideration of the
is
situation
a
substantial trust business, and
a
banking business in the name of a trust
a
I am convinced that under present conditions
the best interests of the trust
We are being gov¬
increasing number of commissions and bu¬
by an
merely
company,
Our Government is
rapidly drifting toward autocracy.
erned
in fact transacting
not
to be
Board, most of whom have shown themselves
The
and cannot be ignored.
therefore, for those trust companies which
Speaking,
Re¬
against the members of the Federal
is not directed
serve
one,
prerogatives.
legislative
menacing
administration should enforce them.
It
which, under the guise of regulations, are rapidly
reaus
and the
175
SECTION.
COMPANY
TRUST
moted by entering
companies will not be pro¬
the system.
Federal Reserve System from the
Standpoint of the Trust Company or State Bank
la
May
other
We
System.
Reserve
with which I am connected
received dozens of inquiries
institutions—Trust Companies
State
the
of
substance
the
Then
came
System,"
Reserve
kaleidoscope.
the
an
recur
to
defects
is
as
it
this
would
be
a
waste of time to
treat as a de¬
or to
of our old currency system,
value of the Federal Reserve Act.
that the new system is a masterful
question now the fundamental
batable
It
such
audience
the
Before
everywhere
conceded
now
to the old. In the
last
anywhere, even as
much as suggested a repeal of the Federal Reserve Act.
It has come
to stay, and is justly popular with the general public.
It has already
aided in a great public service.
It is everywhere admitted to be a
comprehensive, compact, strong, efficient banking system,' even though
not perfect.
Universally, bankers admit its prime value in prevent¬
ing panics, stabilizing .commerce, protecting the banker, facilitating
his customers, and above all, in aiding the Government to finance the
war.
Every financial institution in the
United States, whether a
member or not, hs^ been, and is, a beneficiary of its operations.
But
Mr.
Warburg,
the very able Vice-Governor of the Federal Reserve
Board, will discuss before the General Convention the merits of the
Act and what it has accomplished.
I refer to it only to voice the
thought that as the efficiency of the Act will be the more accentuated
as
the number of members is greater, as "the gold reserve is larger,
and as the collection system is
more comprehensive, there is a dis¬
tinct patriotic duty on the part of every eligible Trust Company and
State Bank to join the System.
That is the conclusion when viewing
the subject from a national standpoint.
While ' I will leave for Mr.
Warburg's facile pen the,discussion of the national viewpoint of the
System, I can not refrain from attaching as an addendum to this
paper an illuminating letter of recent date from onr old friend in the
Trust Company Section, the Chairman, of the Federal Reserve Bank In
New York, Mr. Pierre Jay, as it is too valuable not to be read and
the old.
No one would return
campaign not one candidate for public office,
improvement over
in the record.
put
But,
that
come
operation—benefits which every
a
member or not—but of the benefits which, when looked
at from a
selfish standpoint, would influence a State Bank to join the System.
(The term " State Bank " as herein used will be understood to in¬
clude Trust Companies.)
What are the express provisions of the law
relating to a State Bank that becomes a member, and what are the
practical considerations incident thereto?
Practical".advantages and Disadvantages of State Bank
Legal and
Trust
Company
of
the
«
and
provides among other
"
rights
Reserve
a
as
all
exercise
was
pursuant thereto,
made
Federal
amended June 21, 1917,
things :
Subject to the provisions
Board
as
System shall
of the Act and the regulations of the
any bank becoming a member of the
retain its full charter and statutory
and may continue to
the State in which it
all privileges of member
.State Bank or Trust Company,
corporate powers granted it by
and
created,
shall
be
entitled
to
banks."
Under
this provision it becomes
that
a
State
statutory
and
Second:
tions of
First:
the
are
rights?
What are
the Board to
the
provisions of the Act and the
which such right will be
What are the privileges
Third:
will
material to inquire:
results of this new enactment providing
Bank entering tbe System shall retain all its charter
What
regula¬
subject?
of a member bank to
which it
be entitled?
As
to
Retaining All
of Its Charter and
Statutory Powers.
The
Federal
Reserve
an
Board at first claimed
for itself the right to
of the charter powers of a State
institution should exercise if it became a
prescribe what part
the State Bank or Trust Company,
is given the power
to the right of a
State Bank to be¬
and regulations as
rules
make
come
and in acting
member,
a
Bank or Trust
member of the
exercised are
the purposes of the Act.
with
consistent
whether or not the corporate powers
and
management,
the application, shall consider the
the general character of Its
on
applying bank,
of the
condition
financial
^
whether the Bank's condition,
management or corporate powers are not consistent with the purpose
of the Act, that question will be settled before the Bank becomes a
member, and there will be no chance afterwards for embarrassment
orf that accoqnt.
The conditions under which the. Bank enters can be
covered by the terms of its application,
which, when granted, may
there is any question as to
if
Thus,
amount to a contract.
trust* powers.
Loans in Excess of Ten
(a)
lending not over ten per-cent.
to
Act),
Bank
National
5200
tion
Per Cent, of Capital and
Act, the restrictions
the original
Under
as
Company will preserve Intact
important result Is that a Trust
An
all its
Surplus.
applicable to National Banks
of their capital and surplus (Sec¬
made to apply to State Banks
were
System.
Under the amendment that application was re¬
State Bank retains all its chapter and statutory rights
amount it may lend to any one borrower.
joining
the
pealed,
and a
to
as
the
This
ten
the
on
cent,
per
of great objection
Whether their objection was well
limit on loans was a subject
of many State Banks.
part
not now
is
taken
important.
(b)
Usury.
that applied to National
becoming members. Many
State Banks preferred to operate uuder their State Laws, under which
they had built up their business, and with which they were familiar.
The amendment repeals the application of that Section so that now a
Banks
of its
law
Bank
serve
State,
own
located,
is
System
to State Banks
of usury, will be
unless the statutes of the
Bank, in the matter
Member
State
the
tbe Usury Laws
made to apply
were
the
Act,
original
the
Under
in terms make a
subject to the
Clayton
subject only to
State In which
Bank joining the Federal Re¬
Federal usury laws.
Act—Interlocking Directors—Private
Banks.
unexpected, result
of the amendment.
The Clayton Act (Sec. 8)
prohibits interlocking
directors and also prohibits a private banker,
under certain limita¬
tions, from being " a director, or other officer or employee In any
bank'or banking association organized or1 operating under the laws of
There is an
the United
.Under
State
I am sure, an
interesting, and to many,
States."
original Act the
the
Bank becoming a
States,"
that a
operating under the laws of the
Federal Reserve Board construed
member was "
but on the 10th
of this month the acting
Attorney-
States, in an opinion to the Secretary of the
Treasury in construing this amendment, said:
"Section 9 as amended goes further, and by positive provision
declares that State member banks shall retain their ' full charter
and statutory rights '
as State banks, ' subject to the provisions
of
this Act and to the regulations of the Board made pursuant
thereto.'
Since the rights existing under State laws as to selec¬
tion of directors seem clearly among the ' charter and statutory
General
of
rights '
be
held
the United
thus retained in full by
free in that regard from
tion 8 of
Ompany
of the Board,
the opinion
in
amendment the Federal Reserve Board
the
Under
to
United
First:
fundamentally objection¬
and, upon a thorough
gressional amendment.
Membership.
Federal Reserve Act,
as,
liquid condition of
(c)
9
Section
such
were
the
'
benefits
efficient
institution will receive, whether it is
was
Companies,
Trust
and
would interfere
there
facilities in re-discounting.
But State Banks, and especially Trust Companies, feared that
after
they had come in the Board might change those regulations
(having the same right to change as to make), and so interfere with
the Bank's powers, especially those that were not enjoyed by national
banks.'
That objection has been removed entirely by the recent Con¬
Company
.
,
I speak now not of the general
from the fact that tbe System is in successful and
what are the benefits?
Banks
might be a limitation put on the State Bank's
I con¬
speak here.
I could use the
That, position
System.
State
presentation of the matter to the Federal Reserve Board', thq Board,
by regulation, practically abandoned that position and left the matter
with a declaration that if the charter powers of a State Bank or Trust
I had printed
"Why One
and sent it
meat of that pamphlet, but before I
knew it—being on iny vacation-—the pamphlet was reprinted in the
Federal Reserve Bulletin and Trust Companies Magazine, so I must
shift
the
to
with
President's request for me to
your
thinking
sented,
Reserve
able
from
others.
and some
correspondents
our
Federal
the
Joined
Institution
State
Federal
joined
and Banks—asking the rea¬
To save duplication of work,
answer in
a pamphlet entitled:
why we had joined.
sons
to
the Trust Company
last
Federal
the
of St. Louis.
President of Mississippi Valley Trust Company
By Breckinridge Jones,
This
the Clayton
opinion, which,
Reserve
Board,
State member banks, they must
the restrictions Imposed by Sec¬
Act."
without doubt, will be followed
the main objection that a
removes
by the Federal
number of the
176
BANKERS'
large State
Banks
and
Trust
Many of their directors
Companies,
Companies
directors
are
had
of
to
other
entering
State
the
Banks
System.
and
Trust
" private bankers," and these last words have
are
or
CONVENTION.
prac¬
tically been construed to Include not those who deal entirely on com¬
mission, but every broker or bond dealer who makes a business of
buying and selling securities for his
become
had
all
these
loss,
member
banks
interlocking
in many
and
they
instances
account.
own
would
directors
and
have
from
their
very
of the system.
institutions
did
not
object
to
this
them, and not divided with
Note
also
that
does not apply
National
while. the
because
was
competitor.
a
Clayton Act
in
fixed
particulars mentioned
to State Banks and Trust Companies, it does apply to
because they are distinctly *■ organized and operating
United
What
the
are
the Board
Provisions
to
Which
of
Such
the
Act
the
and
The
laws of
Banks,
for
must
Regulations
of
the
that
shall apply;
Right Will Be Subject?
the
all others
amendment
of
rules
and
member
a
these
be
may
subject
to
provisions
J.
of
the
Bank
will
subject
£he
A
Bank
State
must
applied
(a)
comply
of
law as enacted by Con¬
banks
country
other
than
the
those
and
reserve
Banks.
here
State
the
now
ties,
capital
This
re¬
believe
I
there
is
is
no
now
deposits
and
aid
3% of time de¬
of time
deposits.
reserves
allowed
thereon,
member
banks
interest.
rency as
Reserve
Bank,
ber banks
of
merly,
and
from
terest
In
now
this
large
part
balances
down
is
with
the
to
our
from
such
if not
continue
to
be
to
nearer
its
has
the
greater
funds
loss
this
of
reason
pays
of
part
leges, it
of
its
the
offsets
run
the
more
the
the
it
Should
a
State
much
conditions,
either
have
be
getting
than
Bank
join
the
excess
cash
when
or
alone,
to
and
than
at
when
it
in
the
usual
would
could
If,
the
on
loss, but
its
in
other
not
of
.and
This
excess
of
been
must
have
reasonable, and certainly there
State
Re¬
are
con¬
to
like
Bank
to
will
Federal
a
hold
member
provisions
from
Currency
the
would
to
ex¬
a
high
or
banks
not,
yardstick everywhere.
members
entirely
Federal
exempt
examinations
under
In
Reserve
by,
or
provisions
the
otherwise.
or
examinations
to
Bank
of
of
the
its
the
local
district,
and
of
other
Act,
of
them
other
reports
of
And
note
district.
district
bank
conditions,
The two-thirds
words,
Member
a
accessible
chosen
are
third
being
chosen
condition
only
further,
that
residents
are
by
the
personal
to
of
ac¬
stockholding
the
selected
by
the
Federal
the stockholding banks can
by
except the Federal Reserve Agent and his deputy;
the regulations
the
of
provisions
the
Federal
said
of
of
Section
Reserve
subjects State Bank Members
forfeiture
to
Board,
9
of
made
surrender
the
pur¬
of stock
privileges of membership.
penalty
and
otherwise
that
sures
to any
privi¬
as
to
by quo
Comptroller,
be
no
it
spasmodic,
Act, and that
a
is
to say
meet
supercritical,
that this in¬
unreasonable
or
Bank will have its attention drawn
reform
or
*
to
the Federal Reserve Act is concerned,
as
this provision
giving to the Federal Reserve Board about the
controlling
to Itself
1
the
will
alleged violation and will have ample time to explain
Thus, Insofar
to
money
under
there
its conduct.
membership
all
to
as
in
the
System
corporations—namely:
warranto
proceedings
where
that
right
same
State
the right to forfeit
corporation
a
each
violates
reserves
a
the
charter
law.
could,
7*
by applying
than
Federal
Member
tend
of
these
the
State
will
same
Statutes,
to
Department
thorough that
so
Ibis
that
of
two-thirds
enforcement of the
by
compelled
reserves
higher return
a
as
Federal
can be imposed, not by the Comptroller, as before the
but only by the Federal Reserve Board, and only after a
the Board may restore membership upon proof of com¬
pliance with the Act.
Without meaning to imply that it would, have
it has been
It
Comptroller,
the
Directors of the
Every
whether
Company
Revised
with
thereto,
hearing,
them,
hand,
banks.
or
amendment,
large" transactions,
other
by
to
Board,
to
portion
anticipating stringent
with
Banking
the
use
Non-compliance with
or
amounts
be
of
subject
are
general control the management of the District Board.
the
Under
State
in¬
the
Bank's
a
capital
are
of
the
same
be
can
size
least
at
equal
original
Act there
was
no
express
getting out of the System, if it
twelve
place.
objection
no
to it
on
»
may
Reserve
were
provision
once
for
a
in.
Banks
must
conform
to
the
legal provisions imposed
on
made
notice;
but
voluntarily withdraw
a
be
serve
objection—frequently
Board
months'
however,
required.
that
to
answer
Federal
to
shall
2.
an
their
when
Reserve
Federal
if the
down.
here
directors
and
the
suant
is
profit.
a
financing
yield
excess
re-discount
likely
note
Reserve
in
can
6.
would
with
law
amended
instead
required.
is subject
and
then this difference
it would
when
the
which
the part of the banks that
National
statements
State Bank is not in any way subject to the Comp¬
and so far as the Federal Reserve Act is
or
the officers
In
is
expense
making this
Currency*;
elect all
reserves
large
a
continued
and
that required for a National Bank in the
This
There
additional
Bank
no
state¬
statement.
a
its city depositaries.
State Bank Members
(b)
for
make
the
But
State
amendment
familiar
of
be
S.
and
quaintance,
the
required
double the two per cent,
no
it
officers
we
and
of interest
practice,
be
currency
participates
channels
be
considerably
this
therefore, employ to greater' advantage its
terest received from
National
the
before
the case)
the loss
been
the
Federal
the
banks
interest, and
no
reserve,
fact, however, its
small.
reserves
of
district,
two per cent., to the Federal'
System,
providing
or
bank
and
continue
getting, and there would likely be
maintain
of
the
of
Bank,
No
Trust
recent
concerned,
the
in¬
of
Company
troller
Reserve
maintained constantly at
pay
depositaries
more
Act,
the examinations made by the State authori¬
Comptroller
U,
the
Act,
such
and
the
Trust
cur¬
interest
loss
Bank
since
Federal
Federal
secure
less balances than heretofore,
on
out at
Bank
slight
some
to
under
examinations,
to
Reserve, Board.
for
required
matter of
a
yeat
would
for
be
of the clearing houses require
heard
prefer
turned
will
material
5240,
many-mem¬
that
(which is seldom
interest,
As
the
interest
facility
can
been
no
and
have
State examinations
not
examiners
is
Section
get
Reserve
approve
State
non-1-
of
Bank.
feel
System
Should
with
now
could be loaned
them
delay from
entirely,
our
and
depositaries, which
which
legal minimum.
these
and
can
re-discounts,
balance
is improbable)
the
of considerable moment.
the
Bank
vaults, where it had earned
(which
entering
upon
from
Reserve, Bank,
for
the
:
transfer
of
balances
amount
an
Reserve
protected
State Bank reserve
a
minimum,
be
these
Member
a
joined.
If
of
without
or
required
our
much
better
of
nearly,
of
taken from
are
As
right and
difference
most
lend
banks.
from
balance
time
a
legal
loaning it,
I
if
is
as
provision: the tendency of it is to make the State Ex¬
will
all
to,
keep practically only till money in their offices.
As
they do run on much lower cash reserves than for¬
the
was
we
same
of
case,
on
our
Bank
to
fact,
earned
now
smaller
either
need
matter
a
the
matter
a
State,
State 'will
require at least two state¬
called
are
by direction
examinations
reports
kept with city correspondents at, say, two per cent,
is
the one
objection that ds the most often urged,
This
by
labor
Banks
careful.
more
is
interest
no-
are
especially
Banks
Members
made
making the
State
kept in the Reserve Banks and
whereas
regulations,
the
the
The Board may also order special examinations, and
State Banks must pay the expense of such examinations.
This
its
It
3%
•
must be
on
worthy.
in
as
"These
Bank
examinations.
Bank
standard
10% of demand deposits and 3% of time
city banks 13% of demand' deposits and
Bank
wholesome
a
have
are:
deposits.
Reserve
added
State
Federal
amination
Central
dividends
approval is usually given where the State examinations
sidered
posits.
For
to
such examinations may be acepted in lieu of the
serve
aminers
of demand
For Reserve city banks
made
the
of
National
the
many
required by the original Act.,
'v-a-"
with
National
to
7%
Most
Reserve Bank
this.
The reserve requirements
For
Under
the call
as.
States
under
Moreover,
requirement, but
examinations
the
if made,
the same as
little
some
this
5.
recog¬
to
^
particular disadvantage in
for all
competitors make them.
the
to
applied
quirements of the Act.
being
Comp¬
and now
members—including the State institutions—to make
objection.
rules
to make the State Banks
power
law
be
va'"-v'.1. ■■'•v'
■
that
accepted
but, again under the
orderly carrying out of
specific
provisions
the
under
regulations
and will not give the Board the
set out:
special
State
Reserve Board,
construction,
administration
gress,
eleven
enforce¬
the
excluded.
are
makes
regulations of the Federal
nized
specifies
and, by specifying these eleven,
of construction,
True,
amendment
the
of
while
whenever the National
ments
Board.
day
same
most
make five.
their
under
Note
always been,
of the statement
copy
a
Reserve
the
State
ments
of
of
as
the" case,
sufficient.
Federal
the
made
States."
all
Second:
has
The
under
never
by the Federal Reserve Board.
by
is
call
usually
Banks,
the laws of ,the
Banks
objection.
was
original Act provided for these reports to the Comptroller; but
requires them only to the Federal Reserve Bank on
fixed
Banks
under
above
section
amendment
the
dates
the
the
National
the
and
this
At least three reports of condition and of
payment of
be made each year on call of the Federal Reserve
dates
The
restriction
under
out
they rather liked the idea of having directors whose only affection
for
4.
must
•
State
Many
wholesome
are
penalties
but for
troller,
serious
controlling factor in keeping them
a
the
members is, in the courts.
boards
lost
provisions
of
Heretofore, if they
bankers—a
private
These
ment
not
and forcefully urged—the
regulation providing for withdrawal on
a
under
now,
upon
six
the"amendment,
months'
written
limitation that the aggregate withdrawals in
more
than
one-quarter
of the
State
notice.
capital of
any
the
Banks
There
one
is,
year
Federal
Re¬
Bank.
Banks:
.
8.
(a)
own
(b)
(c)
These
in
the
Prohibiting such banks from loaning
stock;
or
purchasing their
or
impairment of capital;.
most
of
The
the
State Bank Members
Act
good
hanking and
States.
original
Act
There
put
is
are
no
each
of
(See
found
In
substance
disadvantage in
these
Comptroller, whereas this amendment puts them,
matters
which
Bank
troller,
Relating to the payment of unearned dividends.
provisions make for
laws of
the
State
Relating to the withdrafal
forming to them.
the
on,
v
as
relate
Members
are
made
specifically
are
not
subject to all the provisions of
to
member banks,
except that
subject to examination by the Comp¬
above mentioned.
1st
and
Section 21
of
2nd
the
paragraphs
Act
as
of
amended
Section
5240,
as
by
con¬
under
to State Mem¬
In this
bers, entirely under the Federal Reserve Bank.
connection,
Section 22 of the Federal Reserve Act should be
mentioned,
as
nection
as
amended
June 21st.)
affording grounds for objection to entering the
as
it is the only section that need be discussed in this
con¬
System.
It
limited by the Act in
the
will be hereafter discussed.
3.
State
penalties
lates
to
entries,
Bank
of
the
Members
U.
S.
embezzlement,
and
issuing
are
Revised
obligations
subject
Statutes,
abstraction,
authority from the Directors.
made
or
to
the
Section
misapplication
disposing
of
provisions
5209,
of
and
which
funds,
assets
re¬
false
without
9.
While State Bank
amount
discount
of
of
loans
to
paper
capital and surplus,
Members
any
by
one
any
with
are
not
borrower,
one
borrower
they
can
beyond
the usual exception
not
ten
procure
per
cent,
re¬
of
that discount of bills
COMPANY
TRUST
drawn
against
actually
by
the
of
the
reasonably made with due regard
paper
the claims and demands of other
to
banks."
same,
"
The Federal Reserve Bank's rate of
will
furnished.
be
must
business
all
and
shall not be
In connection with re-discounts a
money.
non-excess
value,
negotiating
person
borrowed
as
certificate
existing
actually
owned
considered
177
SECTION.
usually
be
from
to
%
re-discounting this class of paper
1% under the
the particular
A State
which
rate
paper
There
would
There is
10.
officer
clerk
or
further prohibition
a
of
State
a
be
it
has
Federal
the similar
to
analogous
will
unless
against over-certification by an
Member
Bank
yields to the Member Bank offering it for re-discount.
Bank
nothing objectionable in this provision.
seem
its
provisions of the National Bank Act.
before
the penalty
the
.
be imposed,
to
not
the Comptroller,
by
as
There is
State
A
objection
no
One-half
call
to
last
been
restrictions
present
charter and
of its capital and
cent,
imposed by
are
As
whole,
a
this
from
and
the required
subscribing bank,
assets
it
required
No bank could be
this.
considered
be
times
The
the
of subscription
requirement
Reserve
Banks,
Federal
Reserve
do
In
System.
If
inated,
reduced
or
dividends,
to
would
Banks
serve
from
tend
would
this
and
to
in
money
„
.
to
order
and
*4
estimated at between
one
solely
measured
be
to
it
if
prestige
of the
not
only its present prestige,
times
firm
of
Act,
acceptances
but
shipments;
in
Act
cept
but materially increase it.
trading in acceptances and
their
under
(/)
which
or
against domestic,
as
well
as
attached
of
being
have
documents
Act
the
statutory
or
no
rights.
and
acceptance,
it
says
at
any
or. securing
are secured at
which
or
limitations
the
which
finance bills
plain
accept
And
limitations
have
transaction,
for
person,
one
any
in
etc., to an
and surplus,
? he
reference to ordinary
cepted by a State Bank under its
There
is
also
the
right "to
Section
of the Act
Let
13
me
repeat,
character of
the
line,
as
accept drafts drawn
up
additional
there is no limit, so far as
acceptances
a
State Bank
and especially when they know
to discount
addition
Commercial
to
the
the Act is concerned, on
make, nor as to the
can
that the large
business along
that they have a fixed right
privilege
in
the handling of ac¬
State Bank going into the System will have the privilege
re-discounting with the Federal Reserve Bank eligible commercial
ceptances, a
of
paper
and bills of exchange
Reserve
Par
Banks.
Facili¬
required to use these facilities, but has the privilege.
banks
remark
consider
banks
that
a
number
of clearing
permitting
amendment
the benefits such as
without interest.
keeping balances there
Moreover,
the
keeping balances there for that purpose.
are
doing business
convenience in
this,
non-
Note, that
to Justify them
*
the Federal Reserve Bank is a great
with
Hereafter, In
buying and selling New York Exchange.
I think it will soon be almost impossible to do this
economically without being a member.
The collection system develop¬
the
„
to
under
and
Bank,
non-member
these
well
be
may
settling their clearing house balances by check on the Fed¬
are
member
in
It
Reserve
large cities,
Board can not be equalled by any other
ing under the Federal Reserve
checks
drawn
on
the
In
Bank.
course
of
time,
through the
great advantage here from
Each of
when
except
them,
business
collection
but
banks
Under the amendment,
method.
the last three
can
charge for the collection of
presented
will
this
Federal Reserve
by a
develop a
monopoly of the
Federal Reserve Bank.
There will be
being a member.
(p),
time will not permit ;
(h) and
„
(i), deserves extended attention,,
each is worthy of consideration in a separate
and the more each of them is considered, the more distinctly
paper,
will
the advantages a member has over a non-member.
appear
Section
(See
Paper and Bills Purchased.
re-discounting
Federal
all
for the purpose of
50 per cent.
with the Federal Reserve Bank.
(b)
In
are
exchange just above
drafts that may be ac¬
quantity except as above mentioned.
My prediction is
Trust Companies will find a very large increase in their
this
that
passing,
statutory rights.
to an
amended.)
exchange
dollar
bank's
To Participate in the Check Clearing and Collection
ties of the Federal Reserve System.
eral
may
bills to an amount
bank shall accept such
no
no
furnishing
in troublous times this may be
and
the money may at once come back by the
To Make Its Drafts on the Federal Reserve Bank Available
for Immediate Credit at Any Federal
Reserve Bank,
houses
that are given in
the amount of drafts or bills of
upon
and
mentioned
shall be
Thus, where a Member Bank loses
To Have Checks and Drafts Drawn Upon it Received at
In
are
the time
drafts and domestic drafts together, provided
drafts shall not exceed 50% of such- aggregate)
domestic
Other Govern¬
and
.
Savings Depositary.
A member is not
title
alone, or on foreign
such
Savings,
Postal
the
Savings
Funds.
(1)
document conveying or
than 10 per centum of its capital
that
time in
Postal
of
(ft)
A State Bank,
aggregate to more than fifty per cent, of
Its capital and surplus, with the privilege, upon approval of the Federal
Reserve Board, of increasing to one hundred per cent, on foreign drafts
equal
You
to ac¬
that no Member Bank shall accept, whether
equal to more
when
to
powers,
domestic
or
is relieved from
aggregate.
the
conveying
documents
attached.
(when it says
foreign
a
amount
member
that new or additional postal savings
now
by
refer to or
charter
to
Postal
a
(g)
covering readily marketable staples; and does not any¬
affect a State Bank's right, if it has it under State
securing title,
where
in
or
warehouse receipt or other
a
law requires
deposits
transactions involving the domestic shipment of
time of
the
at
acceptance by
a
ability of its city correspondent.
always has the goods, and always finds it con¬
Deposits
quite worth noting,
foreign,
the power
which they now have
borrower
one
shipping
provided
goods,
again,
Here
Bank.
Reserve
deposited with member banks only.
by the Federal Reserve
not limited
are
drafts
for
out of
grow
and other currency as needed from
Reserve notes
Federal
into greater
amendment of the
By
charters and statutory
State
accept
can
Notes and Other Currency.
Federal Reserve
Receive
To
The
deprived of
But such
limitations relate entirely to drafts or bills of exchange which grow
out of transactions involving the importation or exportation of goods
it
that
exchange or bankers' acceptances as
but would be eligible for pur¬
bills of
ment
limited by the Act in certain respects as to the quantity
is
however,
against sudden or unexpected
business
fact that they have no
of their acceptances,
broadening.
is
made
Banks
character of
the
reserve
it.
to month acceptances are coming
be
can
State
secured
venient to deliver them.
which is limited and precarious
market,
market
discount
the
and
period not
rates.
money
From month
liberal.
use
protect its
know the Reserve Bank
regulations of the Federal Reserve Board defining eligible paper
The
are
Banks.
of
dependence on the convenience or
of which they can dispose
discount
the opep
in
in
derived therefrom by reason of the
channel by means
fixed
except
in
limited
arb
to
favorable rates than other banks who
System.
A member should be able to maintain
not members
Non-members
Reserve
the member's own promissory note,
more
are
fair profits
acceptance
As
business.
present
by
offer
can
Federal
from
eligible for re-discount,
be
Federal
the
bank is likely to have more business and more
general, a
more
grows
naturally
would
there
non-member, banks.
the Federal Reserve Banks for a
on
drafts,
such
not
obtain
To
It appears that banks
this
concede
Loans
from
days
bank
a
is,
might
additional credit to a member bank.
This is
demonstrated by the daily quotations as to acceptances of the higher
class of members and non-members.
The advantages, however, are not
generally
increase
such
deposits, or calls for funds.
It gives an op¬
portunity to use as collateral for the time specified, bonds or notes of
the United States, and paper that might not be eligible for discount,
sold on the open market
per cent, lower than
of
^
similar'obligations of a non-member bank.
the
with
and
of deposits from
withdrawals
large
chase by
member bank can be
acceptances of a
rate
a
city wishes to have
important privilege and can be used on a moment's notice
(e)
The
central reserve
or
Acceptances and Discounts.
(a)
at
be
money
an
enable
to
pay
Be Entitled?
„
reserve
a
Collateral
This is
Bank to Which It Will
Privileges of a Member
the
are
.
large number of Trust
a
commercial paper or government bonds or notes.
that
What
Third:
The
city depositaries.
member correspondents it should join the System.'
able to materially increase the amount of deposits
Banks,
increase
an
borrow
To
by
Federal Reserve Banks
member banks.
keep the
to
their
with
against joining the System,
exceeding fifteen
market and out of competition with the
out of the open
then
Member
(d)
earn
Member State Bank, hav¬
a
be wise to eliminate
words,
obliged
be
this
than
more
Bank in
State
a
should
It
elim¬
small amount, the various Federal Re¬
very
a
not
or
would be subject to the same restrictions.
follow
and if the stock were entirely
require any capital stock,
not
.
Depositaries.
with
having removed nearly all the fair objections a State
large, deposits from
serves
other
have
to
could raise
Bank
fore,
the capital stock, of the Federal
no particular function in
the
the Federal Reserve Banks
to
Btock
this
as
Law—its full
State
the System
Those in
that it would
made
been
has
suggestion
State
Reserve Act on a
the
Companies and State Banks are now prepared to join, and they, there¬
the earnings on all its
much hurt by putting
insurance.
for
wish
making any complaint along this line.
not
are
paid
premium
as
under
present time a National Bank,
the
recent amendment
Reserve Bank, this loss may
balances carried with the Federal
on
the
statutory rights in this particular remain intact.
Banks
At
3% of its capital and surplus in such a 6% investment.
But even if
there should be some little loss here and some little loss on the in¬
terest
by
capital and surplus With a non-member bank and many banks at various
5% on their
they will each
evident that
seems
to those banks where
except
business
afforded
ing excess reserves, can not deposit an amount greater than 10% of its
to
If they do thisf there is no loss to the
cent.
per
in excess of
are
is
Bank
this
yet has
instance as
Reserve
they have earned over
however,
time on
six
the Federal
loans
make
to
powers
-
the balance is subject
and
In no
Federal
The
are
as
Accounts from Member Banks and Accounts Carried bt State
(c)
[cumulative] dividends of six per cent on the amount
the Federal Reserve Banks have not yet made such
Some of
earnings.
Board.
Reserve
called.
earned,
paid in.
earn
payable Immediately,
the Federal
pay, when
stock,
is
this
of
of
one-half
such
It must have facilities as good as those of
System.
surplus to the capital stock of the Federal Reserve Bank.
•
facilities,
its commercial
of
expansion
this.
to
hiust subscribe six per
Bank
large
a
re-discounting
Reserve
Bank's
amendment, but only by the Federal Reserve Board after a
hearing.
11.
is
in
competitor.
No
However,
limited
in such an amount " as may be safely and
Since
tion
11
the
11
(k)—Trust
Supreme Court of the
Powers to National Banks.
United States has decided that Sec¬
tional, it is likely that in due course many
Trust
is constitu¬
of these banks will develop
(fc), giving National Banks certain Trust powers,
departments, and if they do, then they will advertise their Trust
supervision, and, therefore, entitled to
public.
They now do this In their Savings de¬
partments.
There will then be the same reasons of prestige to come
up
for consideration with the Trust Companies.
These Trust Com¬
panies that are members will likely be advertising that they can give
to their patrons the additional protection of Federal supervision, and in
departments as
under Federal
greater favor from the
addition
support,
will
make
because
to the public
they
stand
a
before
plea for more patronage,
the
public
with
every
or
more
possible
178
of
element
under the
tional
in
BANKERS'
-
supervision
public
for Trust Companies
reason
that
is
to come into the System,
aggressive,
are
does
to join
business
commercial
no
'We
sufficient,
to a
Company
the system.
Federal
the
serious
most
objection
Federal
the
practically
prohibited
all
has
Board
had
or
of
meant
section
mending
.
allowed
loans
of
main objections
the
that
was
credits.
the
the authorities at
notice from
Company,
or
Trust
22
referred to its attorney for
This
gives
Membership
Tho
prohibitions
its
and
reasonable
many
further amendment,
needs
section
the standards,
ing
State
a
Bank
Company
in the Federal
general public has confidence
It
circumstances.
growth
is
Reserve System, and
correspondent,
city
that
which
say
popular
strong—and
Is
with
been
have
that correspondent.
by
treated
liberally
cial
in
funds
the
at
time
same
for the city bank
times,
money
that
hungry
you,
the
with
or
Federal
non-member,
a
Bank
Reserve
who has
no
and
needed
get
right,
such
money
one
with
or
least.
at
It
Before
times
arrive
would
It
up
is
of
who
conclusion,
same
been
the
the
that
that
of
character
'it
that
The
would
its
The same
The
send
of
membership
Will
blood, and
our
boys
our
hearts.
the
to
are
'billions
those
boys,
war—and
The
the
of
on
the System,
it will not
it is because
from
is such
to absorb
best
to
way
country
so
more
the financial
make
present
part?
paltry
united
be required
any
for
more
war
Buckman,
Dear
before
able
as
Mr.
to
the
Reserve
senting
side
ured
to
answer
and
out
too
N.
M.,
through
September
of
It gives me pleasure to
illness,
the credits
by
each
on
the other,
the
but instead of pre¬
membership on one
I should rather leave this to be fig¬
suggest to you cer¬
System both to business and to banks, which may
individual
intangible
18, 1917.
I
membership in the Federal
answer,
sort of ledger account with the debits to
tain benefits from
seem
your
that,
or
Trust
remote
Company,
to enter
in
a
and
balance sheet,
yet which
for
the wheel of credit
As
for
month
later
maintain
had
recourse,
discounts
two
were
hundred and
its credit was
discounts
and
loans
to contract
besides
caused
its
temporary nature of
showing the
Furthermore,
dis¬
which
to
during the two
which
Its
to
To
increase of two
an
the extent to
prac¬
as
York
its loans and
sum
and
loans
its.
or
the
treasury
fast
New
to
extent
about this
the.
York,
be withdrawn
to
banks
the
in
known
in New
back
York
been
last June.
quickly
as
this
supplying
vast
by the withdrawal of funds,
millions
of
dollars
every
of
shipment
the
a
week
back
of
dollar
forth
and
cuifrency
or
dollar of cost to the banks making the
of the country are not so striking but two
dollars is an amount of credit far'ex¬
rest
,
million
well
York banks.
Bank
had
not
be
have happened if the
this sudden and
What would
been
there
to
of course,
credit no one,
would
provide
can
but I
say,
impracticable to carry
utterly
on
am
System.
Reserve
of
the
banking
the
But
resources
Federal
Re-serve
System,
of the country behind it,
might
supply the credit required by all of the banks of
unable to
prove
country, should the strain become too severe.
It, therefore, seems to me that the Trust Companies and other
in
con¬
the Govern¬
financing on the large scale necessary without the existence,
Federal
is
so
it
favorable
suffer
membership, but
be
the
whether
One
best
their
of strength
element
of
of
to
produced,
a
had
its
the
test,
State
severity
of
owing to the steadiness of
that the .laws have been amended
and now
the
to
way
institutions,
State
show an
should
consider
the
the basis of .whether
immediate profit
from
an
immediate loss
on
the far broader basis of public policy and of what
themselves
for
reserves
the
will
or
and
be used
their customers
in
such a way
as
financial business of the country,
in
the long run ;
to be an element
or
whether as an
weakness.
the
things
Federal
Reserve
cism
a
Is
has
system
of entrance to the System, not solely on
will
tbey
the
perhaps not generally appreciated,
question
will
that
now
the conditions
have been un¬
letter of August 27th asking for my views
regret
advantages and disadvantages
System.
a
I
Jones;
it
institutions,
York
its
credit
had
and
before
June 1st,
On
at
vacuum
all
System
tested
bonds.
of the Reserve Bank
the
without
twelve
one-lialf
which
Chairman Federal Reserve Bank in New
fill
to
action
volume to pay
funds
New
the
millions,
credit.
Its
Reserve
was
never
representing
A
with
foreign governments.
19th
re¬
and
way
thems the
York began
these
days in
banks.
local
Reserve
the
the
Jay
manu¬
banking
new
system
financing,
New
stood
,Tune
the ability
by the New
year
with
*
Views of Pierre
had
into
liberty Loan
period
the
the
give
and
in enormous
millions,
to
felt most acutely
Reserve Bank.
for the
and
that
of
•
ADDENDUM
this
seventy-three
country
ment's
Will you do your
:
of
from
York, the Federal Reserve System supplied the machinery to
vinced
credit is to corral
•.
can
The Federal
reserves
carry
old
to
come
war
various
the
On
pressing demand for
and have the banks
eo-operating force.
one
amount
the Federal Reserve System,
velocity
a
was
and
nineteen
In
the
figures
Federal
to protect
shock during the war—to win the
a rapid convalescence.
Reserve Banks
which
to
re¬
cent,
per
ceeding the largest amount of clearing bouse certificates ever Issued in
Our country needs credit, and
credit will
with
presumably without -p
hundred
if it be one, as
sacrifice,
a
fifteen
were
of
efficient and smooth working
on
had
seventy-four millions,
and
the
The
to
shape for
in Federal
a
nation, we are
a
country
transfer.
this gigantic struggle.
them good-bye with valiant
kiss
foundation
tlie
As
to
hundreds, of
coin and
un¬
coun¬
generally assigned being that they
deposit in
They
use.
to
New
of
the
instead
additional
to joining the
of
transferred
during
of credit
transfer
across
treasure,
the
Half
way.
into action
came
country
there
expanded
amount
cer¬
cause a
loss
of
so
bring
large reservoir of unused
a
inability
system
revolve
to
sixty-two
by
fallen
it
as
distinct,
balances.
after the war to be in
gold of the country
tlie
at
our
required,
are
our
front—we
falter
then
we
losing a little interest
more
had
large
their
to
as
transactions
months.
the demand
join.
to
the
until
Funds on
in
and
required
tills;
to
as
the
reserves,
themselves
new,
most
reason
the, system
millions
if an eligible
the condition of its business,
or
permitted
Reserve Bank does not allow interest on balances.
as
and
System;
the
does not join
Company
hundred
to
bouse
moment without causing finan¬
new
this
the decision
other, the
the Federal
was
twelve
the
its
Treasury
were
credit
Board Is made
approachable and
may be said of the
The public knows
to
and
reserves
counts
and
un¬
do
the way they have
of
institution
like
any
cling
parts of the
to
is
their ability suddenly to
have adjusted
As usual the strain
the
freely,
important, and cumula¬
disadvantage that is most often asserted is that the Federal
giving liberally
We
System,
upon at
half
enormous
preceding
joining
from
business,
1m?
not
advantages
tive.
bank
a
Trust
or
their
not
Reserve
long before there will begin to be an opinion that
State! Bank
the
to
accrue
could
the public understands the benefits
the System;
In
caused
that
existing credits.
with
make advances
reasonable,
Reserve Banks.
Federal
the several
will
be very
the
joined
we
Federal
prudent,
competent,
are
public believes
I
way.
the
came
to
as
clearing
normally
are
other
center.
ticable
the long run our customers
so
patriotic, and who do not play politics.
Boards of
that
felt
their
This
able
extent
an
by
bank
any
hand,
They
certificates of indebtedness
glad that we did.
admitted
generally
men
certainly
we
We thought that in
the
at
have
since
ever
members,
the argument.
large.
reserves,
the
began
other
to
Reserve System, Indirectly,
especially those whose
of drought, has the right to go direct to the reservoir.
became
we
answer
other
inelasticity,
Well,
money
customers,
of
saying
and employees
is not an
suddenly,
eighty per cent.;
country
wait
to
for
produce
them.
often
reserves
commercial
themselves
or
the
suddenly
large lines of credit, should do business with, a bank
business requires
which, In
that
reasonable
seems
the
they need unless it falls back
country.
business, but because those large institutions realize
that they need the protection of the Federal
and
tested.
with National Banks,
This Is not alone for the rea¬
State Banks who are members.
of reciprocal
sons
such
to
typified
employers
reserve
the
to
bank
the
reason
Under
keeps- the majority of Its reserve accounts
end
not
A commercial bank carrying from
on
factory;
wished
who may have to
and
car¬
banks
suffered,
of
care
which has
because
keeping
They have postponed
for
depend on the courtesy of one of Its correspondents or depositaries' who
is a member?
I believe It true that practically every large Trust Compauy
the
could
have
we
position
industry
came
disturbing
affiliated
facilities
rely In times of stress—the member that you know has the right to re¬
discount
the
re¬
new
said, we are midway in the transition from the old way of
our
of
rigidity
for
the
panics.
is very
or
have
credit
would you prefer to have to
On which of two correspondents
money.
is
strain
have
to be famishing for
correspondent
country
its
of
near
they
good
payment
manufacture
cent,
per
sources
to its country bank customers, and that the tendency is.
general tight
which
taken
own
of
cent,
per
Banks,
keeping
or
no
in¬
.
customers,
past
to
credit
As I
National, under the old law, could not get currency and when it could
not lend money
those
habitually
practice,
from
credit which may be drawn
that there
whether State
the
the banking
It Is already using its credit nearly to the limit.
facture
whether
this,
well known
Is
It
the city correspondent,
times when
many
the
reserves.
look
seventy
the
that It has always been
correspondent Is a member or not-—and
In
or
up
institutions
Reserve
that the size and
are
to
by
furnish
to
readjustment of their other credits
a
trouble
twenty-five
safely
they
knows
it
bank
to
people, and that a State Bank can always expect to get assistance from
its
in
credit.
that
show
to
through
and are subject
this
to
answer
no
Institutions
State
of
than
larger
were
have
their
slowing
or
serve
position to take care of themselves and their customers under any and
all
carried
expected
were
credit.
suspension
whole
safely, and are in a stronger
Federal supervision, are being managed
required
the city correspondents were
by such
or
kept
prestige.
added
that have the benefits of membership,
that banks
feels
to
they
panics
but
weakening
millions
The
•
Trust
or
cities which
which
power.
new
various
either
gotten
will not unduly interfere with very
transactions.
proper
told
all lower¬
the
its own reserves, which inevitably
on
try banks which have expressed such satisfaction at
that without at
so
and
for it had
fabric.
little
correspondents
paralysis
report.
a
of
true,
tificates,
time, jret It would be wise for any
before it enters the System, to have
Bank
by
only
receiving special
not
are
the
city
about
this
Section No.
State
their
a
Section, apparently
this
of
prohibitions
accomplished by
freshened,
credit
new
It
moving at its
was
Many country banks have referred to the ease with which they
doubtedly
The Federal Reserve Board
general resolution.
While
majority of the Board of Directors.
has ruled that this can be
Theoretically,
amount
through
the express written authority
directors and attorneys on
to
suddenly
reserves
weather.
expected suddenly to manufacture the larger additional
were
manufacturing
required
amendment to the Act, providing that interest might be
balances of directors, officers, employees, and attorneys, and
on
bad
in
commercial banks operated for profit and
were
relatively
reserves
they
.
the
reserve
and
country,
rying
credit
industrial
needed,
which
than
an
made
a
rendering
leaving behind
we are
work
not
winds
by drawing
the various
the
credit when
the Board's recom¬
by
met
were
the
manufacturing
whole
our
of
serves
right, by regulation, to modify or define the express Act of Congress,but upon the whole subject being fully presented to the Board, the
result
is
withdrawing credit already extended in other directions, thereby
The banks in
transacting any
this
over
when
but
suddenly
chilling
em¬
The Board did not feel that it had any
other section of the Act.
any
trouble
more
The system
would
the winds were light and credit
right when
velocity,
it
system;
creased velocity except
The penalties in this
is thought that the
general effects only are in contemplation.
Section No. 22 are fine and imprisonment.
It
Reserve
the
This may be stating the matter too broadly,
bank.
but the
Federal
officer
an
Bank from
of a Member
attorney,
or
the
with
business
Act
Reserve
director
ploye,
standpoint of
the
System
velocity of .credit movements increased, it failed to work,
Companies, was that they, found that Section 22
State Banks and Trtist
of
from
the
the (transition from a system of scattered
weather
fair
a
was
Reserve Act.
Act,
the
to
services which
important
system of concentrated reserves.
way
The
really
midway In
are
was
normal
22 of
Section
the
the country.
and may,
be
along with the other general considerations, to induce a Trust
that
constitute
afforded
I think this may be an addi¬
competitors
where
communities
some
protection
public
and
either State or Federal.
law,
CONVENTION.
for
banks have criticized the
collection system.
The criti¬
recognize the broader
provision of the Act.
In 1863 the volume of
which
the
country
System has been the par
perfectly
natural one,
aspects of this mandatory
but
it falls to
'
TRUST
bank
notes
hank
notes
sixty
was
the national banks.
note currency.
Just-as it
a
took
half century
revert
to
willing
deposit
some
ago,
exchanges
completely overshadows bank
now
method
system
hence we would no more
years
of dealing
prevailed
the
to
with
collections
than
notes
bank
and
for
Federal
change
Reserve
trangactions
System
that
element
of
cost
shipment of currency to make exchange,
shipping
able,
assumed
and
this
whenever
currency
negligible
the
in
is
from
we
There
still
is
culation
supposed
At
interest,
fund,
through the medium of its gold settlement
fers
and
and
the districts they
settlements
lities may
and
thus
they should be able,
a
do
men
understand
Section will
of the
gold
the country by
of
reserve
System, yet this Is one of its functions which,
serve
cised,
when
should,
benefit
in
exchanges
the
steadying
is
become
normal,
of
gold
bank
in
vaults
but
to
and
elsewhere,
the world,
If
I
have
in
would
System
to deal effectively with international gold
successfully ,the
assume
the
yet
responsibility
which
must
our
maintaining the gold standard of this country.
written
they
about
you
the
are
country was in ft
has entered
intangible,
the
mood
count
to consider
with
war
somewhat
seems
sacrifices
tions
of
rather
most.
I
than
have
tangible,
and
consider
to
and even
advan¬
For this purpose,
the
in
which
preparing to make colossal
are
to
ask
the
Reserve
Federal
institu¬
State
in
System
immediate profit may be figured
no
the
since it
gain for itself, hut to
or
Is it too much
money.
that
this
therefrom,
though it may possibly entail some sacrifice, in order that our
be made safe for
may
world's, commerce
to
we
us,
membership
though
even
banking system
upon
from
also
felt
intangible things just now,
thought of profit
no
remote
men
spirit,
same
of immense
During the
that
ones
" make the world safe for Democracy."
help
Bank¬
Committee and Officers'
of
entrance
and would be put in tlie strong¬
and
finance
assume?
.
which
larger participation in the
that
we
being
are
irresistibly
called
"
•
Very truly yours,
.
..
(Signed)
$500,000,000 of gold
past three years the System has accumulated over
the
$2,000,000,000 gold, there would still be left about $1,000,-
of
possible position not only
run,
if properly exer¬
prove
through
tages of the Federal Reserve System, because I believe that, in the long
been
Federal Re¬
credit conditions of our-country.
the
and
which
Government
the country is
the
means,
of
portion
Reserve Banks.
the
from
its significance.
to grasp
this
through
into the Federal
inevitably fall to its lot of constituting the first line of defence of
but members of the
of funds,
slow
considerable
a
way
fund
000,000
for members to figure any direct profits from the
be difficult
administration
be
not
pro¬
ex¬
to make trans¬
that
money,
have the largest gold fund in
part of the country.
any
generally
gold
a
Any member choosing to use Its faci¬
basis for the remittance
par
Company
It would
not
the
to
total gold holdings now
'
considerable number of State institutions to the System, to accumulate
between all twelve Federal Reserve Banks
par
represent.
make settlements at par in
business
on
Trust
at
till
gradually find its
est
hag
system
addition
$500,000,000 of gold and gold certificates in cir¬
and
to
which
cost
a
the
in
a
by itself absorbing the cost of
necessary.
public
arise
to
over
pocket
as
also
be
domestic
our
Exchange notes,
$1,398,737,000.
prior
prevailing
eliminating
is.
Federal
by the deposits of its member banks, its
movements,
The
179
would
1914,
to
up
of
check
1863.
ers
exchange
vided
being about
passed to standard¬
was
the Federal Reserve Act
take some time to standardize bank
now
in
SECTION.
should
that a few
say
which
back
go
Now
deposits.
to effect the standax-dization of bank notes
it will
so
hank
cent, of the deposits of
per
currency.
years
the unscientific
to
seven
One of the objects of
checks, but I venture to
domestic
volume of
the
In 1863 the National Bank Act
standardize
to
was
of
Deposit currency
bank note currency.
ize
cent,
per
equal only six per cent..or
COMPANY
Jay.
Pierre
Reports—Trust Company
Section
this
with
W. Platten
Chairman
the
best
Six
year
in
stated:
Committee
Section's
the
to the General
"Through the
1915-1916
September,
Executive
and
affairs
from
meetings
of
the
and
meeting
meeting
second
Considerable
1910.
held
was
in
New York City,
business
routine
the Section
close of
the
held
was
at
on
transacted,
was
Convention,
December 5,
matters
many
each year a permanent badge, properly inscribed.
order to further stimulate the activities of the Section,
operations,
to
of
1916,
2.
the
of
all
do
Trust
assist
to
you
can
the
with a view
now
Companies
not
now
members
of
as
created,
with
the
the
to
appointed
your
replies to
this
to
Act.
Wade, of St.
As
Louis.
members
of
this-
for
H.
Mason,
amendments
of
New York,
and
Following this meeting
Ralph W.
and again,
creating still greater Interest on the
bers
of
the
Association,
respect was set forth in
the
purpose
mittees
At the
and
the
a
action
Cutler, of Hartford.
with the view of stimulating and
the
Committee
the
above
circular letter dated December 28th, stating
of the Committee in the appointment of the
inviting their cooperation and suggestions.
third
in
meeting of the Committee, which was
special com¬
held on February
annual banquet, the Chairman
reported that the circular letter had resulted In bringing to the newly
created committees a number of excellent ideas and practical sugges¬
tions bearing npon their activities.
At this meeting the question was
introduced of aiding the Government in the mobilization of the coun¬
try's gold supply,
through Trust Companies depositing their gold
reserves' with their National Bank
correspondents, in order that the
metal
could find
its way into the vaults
of the various Federal
27,
1917, the day following the sevenf
was
attitude
the
Federal
of
fiduciary
powers.
held
on
April
10,
1917.
Reserve
well
Act,
in
discussed
as
pertained
to
Trust
Company
action by the Trust Companies relative
efforts to mobilize the gold reserves
the previous meeting of the committee.
its
at
of
they
as
as to secure
Government
this
matter,
the
following
preamble
and
adopted:
Bankers
United
the
every
in
way
addition
their
power,
and
It is recognized by this committee that one
Committee
May
each
Trust
in
secured
as
meeting,
held
at Briarcliff
the
result
of
the
Manor,
N.
Y.,
on
and in addition,
Section in the various States where such organ¬
had also been advised, and their
the purpose of
reported
was
publicity
taken
the President and Secretary of
Company
carrying out
It
fifth
Its
existed,
izations
general
that all members had been advised of the action
Committee,
the
by
»
at
1917,
7,
the
to
Committee's) action in this respect, It was reported to the
Executive
part of the Trust Company mem¬
of
committee
the
statement
provision
Executive
Whereas,
In
practicability of a
Pratt,
Banks
,
Chairman
of
national publicity -campaign, or several local cam¬
paigns to promote fiduciary and other Trust Company services, and in
connection with which your Chairman appointed Messrs.
James M.
lucid
that
to
"
Reserve Act,
entering
the
National
and
Presi¬
of New Jersey."
of the most
cooperate in the mobiliza¬
States, therefore be it
Resolved, That this committee urgently recommend to the Trust
Companies of the United States that immediate steps be-taken to secure
amendments, where necessary, to the State laws, in order to permit
the Trust Companies to carry-their gold reserves on deposit with the
Federal Reserve Banks in their several districts, and that as soon as
such action can be legally taken, the Trust Companies offer to deposit
these reserves with the Federal Reserve Banks."
letter were received,
definite
regard
were
of
In
"
two sub-committees were
Committee
singularly
a
to
Canada,
Toronto,
Commerce,
ex-Governor
important duties of the Trust Companies is to
tion of the financial resources of the United
Philadelphia, and Frank W.
afterward
addl'g the
name of Mr. Festus J.
Another committee was created to investigate the
John
Detroit,
recommendations
make
The
try
Association?
Companies are
the
study of the Federal
and
"
ascertaining objections by Trust Companies to
Messrs.
of
Blair,
to
and
system,
desired
valuable
to make an analytical
one
view
a
and
result of the recommendations made,
a
presided
McCarter
Committee of the Trust Company Section of the
Association,
representing Trust Companies in all
States, being called in special session Tuesday,
April 10, 1917, by its Chairman, John W. Platten, to consider the
general conditions facing the country at the present time and with a
full recognition
of its patriotic duty and privilege, has unanimously
adopted the following resolutions:
Whereas, The Nation Is in a state of war and it is the earnest
desire of the Trust Companies of the United States to serve the coun¬
represented in the membership.
interesting
Many
and
"
a> whole?
to securing the enroll¬
Approximately 25 per cent of the total number _of Trust
riot
of
forwarding
of
in
gives
consideration
American
in your opinion, will best
Companies as
do ou suggest
nation
full
sections
in
offer which,
interests of Trust
What methods
ment
of the Executive
follows:
as
Companies'
Trust
Company and Bank Officers
President
in
the
resolution
the upbuildiiig of its various activities?
in
or
What suggestions
3.
letter,
a
Section
the
can
Company's interests,
promote
work
to
Chairman reported having sent to all members at the
your
October,
What
1.
with the
touch
into closer
members
bring all
Committee,
the
After
and
Bank
Stokes,
meeting of the
as
aiding
of
president
In
Annual
also by Sir Edmund Walker, C.V.O.,
him,
presented
which
Federal'
the
to
consideration.
The custom of presenting to
a souvenir was voted to be discon¬
however, decided to continue to present to the retiring
It was,
tinued.
.
This., meeting was called for the consideration of proposed amendments
president each year
retiring
end
Act
fourth
The
having been given special
the
Seventh
720 Trust
Companies
Trust
the
C.
Edward
McCarter
dent
Reserve
first
the
of
cojxntry.
Canadian
the
of
the
delivered by
were
Honorable
the
year.
The
of
made
attendance
of
parts
President
held during the
of your Executive Commitee have been
all
confidently
is
record
a
addresses
determined
be
however', In connection
taken,
was
■
al&o
was
with
new
our
action
Banquet, which proved to be as notable an event as preceding banquets,
and
Whether that expectation has been fully realized,
after appraising the work to be reported.
expected this year."
can
the
last
the
of
activity
increased
Secretary,
City
Kansas
at
of
during
Section
Company
Convention
efforts
of the activities of the
in concluding his report
McCarter,
definite
matter.
Report
President
Trust
No
banks.
Reserve
Report of Chairman of Executive Committee, by John
cooperation solicited
the resolution.
twenty-seven States Trust Companies were
that in
to comply with the purpose of the resolution, in fourteen
the companies could not comply, while in the remaining States
permitted
States
it
In
doutful.
was
tion
was
not
through the
several
permitted,
an
preparation and passage of bills designed to permit Trust
of the resolution.
In those States
not permit deposit of gold reserves
with the Federal
Companies to carry out the purpose
where the laws did
Reserve
Banks,
it,
several
power.
by the
Executive Committee,
was
That the matter of drafting a uniform law for all States,
passage of which Trust Companies
may be enabled to
reserves with the Federal Reserve Banks of their
districts, be referred to the Committee on Legislation with
Resolved,
through
carry
the resolu¬
taken in this matter,
States where compliance with
active interest was
the
their
gold
BANKERS*
180
As
result of your Committee's work along this Hue, material assist¬
a
ance
CONVENTION.
by
extended
was
in
Government
its
Trust
the
efforts
Companies
mobilize
to
tbe
of
tbe
nation's
country
support
upon
them
No
of
counted
the
to
gold reserve.
the
Reserve
Federal
tbe
of
of
the
deposits
of
reported
Bank
New
York
Companies
and
by
of
reason
The
Committee,
the
to
this
assistance
valuable
connection
adopted
rendered
the
action
it well to
by
the
following
General
and
time
Resolved, That this Committee does hereby avail of this opportunity
place on record the expression of its cordial appreciation of the
hearty cooperation and helpful assistance extended by Colonel Fred
E. Farusworth, General fceceretary of tbe American Bankers Assoeia-,
tion, to the officers of the Trust Company Section in the furtherance
of its activities, and be it further
Resolved, That the President be and he is hereby instructed to
transmit to Colonel Farnsworth a copy of these resolutions.
to
the
1917"
adoption
'
time, the question of the
same
of
of
the
special
given
was
following
two billion
preamble
"Liberty
dollar
consideration,
resulting
.
William
able
thereto
"
y
■
G.
:y
Secretary
McAdoo,
of
the
Treasury,
who
work
that
of
measure
ahead of us."
lies
co-operation
your
in
the
.
is
a
activities
consideration
further
letters
the
of
Is
now
The
'/
submitted
addition
In
States
in
and
'
advisable
national
1917,
banks
1917,
for
of
views
Reference
national
to
has
already
given
in
Loan
1917
and
of
United
the
Greater
States
the
to
by
Mr.
Goebel,
the
not
meeting
be
accorded
yesterday,
Farnsworth,
Secretary
In
which
warmly
he
to
You
the extra
the
It
will
of
and
its officers.
Secretary
American
the
the
than
Bankers
of
acceptance
Secretary,
commends
the
Colonel Fred
efforts
of
the
and
amount
this
Companies
totals
loan
from
of several
these being
advertising
tions,
as
bands
of
however,
hope,
well
the
was
as
with
detail
the
individual
common
therefore,
nection
fully
62
to
all
is expressed
placing
the bonds
those
were
classes
for
subsequent
a
of
New
in
City.
to
centers
England,
New York
The
Trust
where Trust
incurred
any
by
them
in
the
This experience,
Institutions.
of this problem in
In
the
soliciting subscrip¬
placing
financial
solution
the
conspicuous In
rather heavy.
loans.
covering the entire country, such as is
statistics,
event,
the
statistics,
Comptroller of
case of
Executive
Currency in the
in
therefore
and
behalf
of
the
pleasure at this point to submit for your
in order that you may gain some idea of the growth of
some advance figures which have just been com¬
the annual publication,
edition of
the 1917
of the United States;"
the
of
resources
1917,
of
2,006
reporting
Companies
Trust
National
during
Banks
the
ended
period
same
of interest to indicate
further
he
may
3912,
increases shown since
tbe
Trust Company total resources were then
five years ago.
Bank
resources
mind
''
of
the
have
as
y'
.
numerically
proportion
of
the
refer
the
to
world
strength
In
the
coming
to
servation
may
are
titles
corporate
into
the
made
of
a
in
Utmost,
continue
result of
hands as
our
that
order
Report of Special Committee
.
Special
the
Committee
of
purpose
making
to the
analytical study
an
Section
appointment of
Committee
Executive
your
requesting
that
this
one
though
it
letter
was
was
addressed
of
of
letter
a
the
with
Act,
view
a
System,
Act.
to
their views
*
the Chairman of
all
of
members
upon
were
at
1916, for
to entering the
Committee
communications
the subject
As
received
a
in
the
in
result
which
expressed.
were
received
clearly
be
con¬
appointed
was
December 5,
on
the
to
this
they express
number
a
different views
many
Not
appeal
of
record
writing to the Chairman of the newly created Committee.
of
the
should
trust,
Platten, Chairman.
Act
Reserve
recommending amendments desired
Subsequent
that
word,
and
Federal Reserve Act
on
Federal
on
W.
to ascertaining objections by Trust Companies
and
The
companies,
enviable
the
meeting of the Executive Committee held
a
before.
unimpaired.
John
Your
conditions
Tests of individual and
several
our
to one,
three
v1; y..
::
•.
present economic dis¬
never
as
Com¬
Trust
Unprecedented
war.
being
now
borne in
is
the
than
more
'
to
me
of
it
when
exceed
producing grave responsibilities.
arisen,
Trust "
the
impressive
more
■
permit
result
a
the
banks
in
country
conclusion,
corporate
against
as
1
becomes
National
right. here,
In
location
"
the
that
panies
and
$10,861,000,000
were
June 3, 1917, an increase of 47 per cent, for the five-year
on
comparison
This
1912, the
$16,000,-
during the past five-year period, while in June,
per cent,
unqualifyingly commending the Act,
apparent
that
willingness
existed
al¬
consider
to
membership in the System, providing certain changes were made in the
law.
Following the receipt of these letters
ing
in
New
York
City
January
on
your
11,
phases of the Subject were fully discussed.
in
communication
which
with
correspondence
Without presenting in
it
may
be
stated
the
authorities
views
of
this
Washington,
Committee
and
meet¬
all
through
expressed.
were
some
very
important. amendments
The Clayton Act,
Sec. 8, which
deterring factors considered by your Committee has taken
looked for turn concerning the
interlocking directorates.
have
was one
The
not
a
meeting
Later your Chairman was
at
the
At
detail the subject matter of this correspondence,
that
been enacted into law.
the
Committee held
1917.
con¬
loyal
of
as
being an increase of
billions,
reported as sixteen
were
•period.
first
conspicuous
The expenses
and in
work incident
the
service
past year.
000,000
.
while $300,000,000
however,
established.
buyers,
in
Companies
bonds
New York
principally in
are
Trust
In
in
the most
located
of
States were,
other
Company operations
Companies
having
Trust
companies
flotation "of
the
those
were
States.
showing
statement
a
In
nearly $320,009,900
to
was
recorded,
companies
Western
certain
State subscribed
of
the
supporting
In
Eastern
The
1917,
of
briefly
Companies
interest
broad and generous
a
It is therefore fitting that the
$5,490,000,000 as against $9,000,000,000 at present, or an increase of
the
except that here it
work
record
to
Trust
by
given
Loan
Liberty
part
interesting
be
co-operate in
Executive
the
and deep
response
,
resources
30,
June,
of
,
cooperation
hearty
1917, amounted to approximately nine billions of dollars
30,
business
of
aware
most
a
to
when it has been thought
and members of
$2,073,000,000, or 14 per cent, gain over 1916.
hearty
placed upon Secretary Mersbou
in completing the propaganda of the General War Loan Committee of
the American Bankers Association.
Mr. Mershon undertook the task
of compiling report No. 4, received from a large number of banks of
the country.
He did most excellent work, was faithful to the trust,
indefatigable in his services, and conscientious in his desire to make
the report as complete as possible.
He is entitled to great credit.
"
That you may know something of this work I am enclosing herewith
a
copy of his report to the General Committee.
At its session on
July 9th the General Committee requested of Mr. Mershon that he
continue and complete the final statistics and such reports as may
This will probably take him Into the middle of
come in this week.
next week, but this work has been done well and reflects credit on the
Trust Company Section, Inasmuch as we now have a
Secretary who
is ready and willing to do his share of the work in these offices; and
also that we have officials of the Trust Company Section who are in
sympathy with the Association and are willing that the Secretary of
the Section shall carry his burden of the exacting duties which fell on
our
organization during the Liberty Loan campaign."
are
Your Chair¬
and the work of his office.
Companies,
protected
"
been
connection with
Total
of
Liberty
the
a
entailing much labor, in order to lay a
the office of the
total
June
It
follows:
as
service of
render
to
It may be stated that there was
(to
be exact, $8,983,430,413.02) which is an increase of one billion and a
quarter of dollars compared with June 30, 1916, or 16 per cent, dur¬
was
Companies
and
the
to
General
the
from
has
Trust Companies
ing
the
to
Trust
the
Committee
President
the
Trust
June
Reserve poard
of
notation
by
Secretary's work in this connection,
official communication
an
"
Section.
President
the
successful
Executive
the
could
by
developing the work of the
efford
constant
Chairman to these gentlemen be recorded herewith.
Bank
piled in
the
the granting
to
by
of course, well aware that there exists no real clearing house
information,
the
this
at
when
consideration
respect
rendered
his
Committee it affords me much
the
be inappropriate to advise you of the receipt by the Chairman
may not
E.
by
at
Association
results of the
of
and
commendation
voiced
that
the
it
readiness
Company
by
National
made
been
the assistance
rendered
gratification that my recommendation
together the officers
there
Trust
afforded
banks.
furthering
support
in
be
the balance, $1,165.83, having been returned
made
call
Their
You are,
for
favorable
A. M.,
transacted,
Committee
Executive
the
fiduciary powers
will
Section
the
bespeaks the continued hearty co-operation of all offi¬
thanks of your
with
regard
held
was
9: 30
at
presentation
business
routine
for
worthy of the highest commendation.
is
V
Committee
the
given to the question of communicating to the Federal
the
In
was
active
The
At the same time the associate
a year ago.
Secretary's office,
to
Committee
great
by
the
and
56, making a grand total of 1,625 members.
of great personal
has
He
shown.
the various sub-conjmittoes and Secretary
approved
the
to
of
24th,
of
statement
On the several occasions throughout the year
received
rendered
Trust
are
Section
gratifying.
most
are
and members in behalf of the Secretary
cers
and in recog¬
-•
meeting
September
members
the
foundation not only for carrying out what was proposed to be
The
decision
Ample
Of the
Company activities for the year, viz.: $9,809.80, only
therefore,
man,
v
connection
expenses,
June 11,
on
28
system,
of
accomplished during the year, but for the future as well.
this Committee and counsel
the
to
powers
reports of the executive and
were
that
y'''yy
last
and
Monday,
on
by
membership
the
this choice has resulted in greatly
of the
tion
adopted.
were
fact
fiduciary
of
sixth
hotel
well-known
a
granting
thereto..
particularly
performed
Court of the United
Supreme
the
service
appropriate resolutions
thereof,
It
meeting,
Legislation
on
defraying the Committee's
in
valued
the
this
at
the
.
Committee
Special
vital and far-reaching.
are
favorably acted upon by the Executive Committee at Kansas City,
proper
by that Committee to members of the Section, seeking
sent
their cooperation
nition
the
of
the
are
21, 1917.
June
on
It is worthy of note, however, that of the total amount
source
National
The
Reserve
great deal of work necessary to effect an almost complete reorganiza¬
a
generous and patriotic support they have pledged to the Govern¬
ment in the great financial operations incident to the war for liberty
and democracy in which we are engaged.
Such assurances of support
make the success of the Liberty Loan certain.
I shall not hesitate to
the fullest
adopted
entered
constructive character to all members.
tbe
myself to
financial
for Trust
Section.
Instant has just been brought to my atten¬
you kindly convey to the members of Trust Company Sec¬
tbe
American Bankers Association
my
deep appreciation of
avail
Act,
the General Association Treasury,
was
telegram seventh
of
by
have increased
detailed
and that
Will
tion
have
in
growth
110 compared with that
replied
i'y^Cv
discussion of
a
to the Federal
respecting the selection of Mr# L. A. Mershon for the office of Secretary
:.yy-;
yy
,
fully
made by
membership of the Section at this time is 1,408, being an increase of
members
It
telegraphed by your Chairman to the Honor¬
follows:
as
Your
tion.
;':y:;yy•
were
Reserve
which
interest shown
deeper
to
Whkeeas,
the $2,000,000,000 Liberty
Loan of
1937 has
been
for public subscription by the Secretary of the Treasury,
and
"
Whereas, A prompt and liberal response thereto is not only de¬
sirable, but urgently necessary, therefore be It
Resolved, That the Executive Committee of the Trust Company
Section of the American Bankers Association, assembled in its annual
spring meeting,
does hereby
pledge to the Honorable William
G.
McAdoo, Secretary of the Treasury, the assurance of the fullest co¬
operation on the part of the Trust Companies of the United States to
make this loan a complete success, and be it further
Reftolved, That the Trust Company Section urges upon its members
throughout the United States that they not only liberally subscribe
thereto themselves,
but request their depositors and clients to do
resolutions
continued
The
offered
These
be
may
effort
every
yesterday for a diseussion of this subject.
$8,643.97 was expended,
"
■likewise."
States
in
Companies and represent aggregate resources of $650,000,000.
voted
resolutions:
and
United
the
the past,
Companies in regard
Federal
institutions
the Secretary.
the
in
the
to
afforded
was
State
A
At
of
in
as
to democratize the nations of the world.
of State institutions into the system
in
resolution:
76
Loan
future,
The importance and bearing of these amendments upon the future entry
give expression
Secretary
the
Of major interest, therefore, to all Trust Companies
System.
is
amendments
this meeting, deemed
at
similar
Companies
Trust
in
program
the attitude of the Trust
the
from other districts.
several
Trust
of
the
Throughout the year much time has been devoted to
inconsiderable amount of tbe metal has already found its way into the
vaults
in
a
since
of the
most
un-
The Act does
apply to Directorates of Trust Companies, and the Federal Reserve
Dakota,
further specific amendments
Therefore your Committee has in mind no
to
of
by
each
business
said
by affiliation with the
offered
posits,
A
passed an
Island
the
of
Trust
and
re¬
de¬
by additional legislation.
act
adequate cash reserve.
to maintain an
demand,
property in trust
hold
to
preservation of certain burial grounds.
of
number
Wyoming
were
Dakota,
empowered Trust Companies
and
care
Washington
North
Florida,
in Arkansas,
Companies
requiring Companies receiving commercial
South
safeguarded
payable on
Rhode
for
submitted.
All of which is respectfully
and
Indiana
its charter rights, character
operates,
privileges
the
laws of the
the
depending upon
company,
company
for
need
and
Systeui.
new
separate
under which
Oregon,
stricted
the entire question is one to be
but believes
this time,
at
suggest
decided
State
administration
The
iu accordance with the Attorney General's
Board will shortly issue rules
decision.
181
SECTION.
COMPANY
TRUST
States
it
made
lawful
to
banks
national
for
act
as
"
H.
John
Chairman.
others
and
tions
H.
Report of Special Committee on Legislation, by Uzal
McCarter, Chairman
The
the
of
test
Reserve
the
of
in
powers
Committee
decision
well-known
The
completed.
been
of
branches
in
agencies,
tribute
to enable
it
several
companies
their
into
to
service
resolution
To
the
and
surplus,
institutions
of
A
notices
Committee
the
institutions declined
294
statement
financial
A
submitted herewith
is
fully,
for
the
matter of the
■
were
received and
they contained sug¬
1
opinion -is that powers and functions of Trust Companies
differ
that a national cam¬
It might be possible to form a plan
publicity with respect to fiduciary services, but our judgment
this
"Other
is that
accomplished just as well by local campaign."
be
can
services
Company
Trust
are'of
varied
so
a
character
and
impracticable under the
national campaign to cover them."
largely hanking in their nature, it would seem
believe
We
and
laws
Htate
various
organize
to
the
a
effective
most
method
promote fiduciary
to
service
Profitable business of this
character is found among
few in each company, and
can
be covered by personal work rathe.r than general publicity."
Do not believe a campaign of this kind can be conducted by co¬
is
1,324 failed to respond at all.
sent,
of Communications
would not be practicable.
paign
number of notices
Out of the total
to do.
so
arid requesting them
expressing
committee,
the
widely under the laws of the different States
4!or
re¬
checks
forwarded
institutions
of
Chairman
»
number
"Our
in behalf
check for such amount be
the Committee,
2,200
which
to
5S2
which
of the appointment of this committee,
the
Executive Com¬
28, 1916, the Chairman of the
communication to all members of the Section, advis¬
a
gestions someAvhat; as follows :
"
of
replies,
several local
or
guidannce of the committee, their views upon the subject
Chairman of
notified,
thus
were
876
ceived
follows:
as
campaign,
publicity
national
a
resolution.
one-hundredth of one per cent, upon their
the
to
seconded and carried,
at the meeting of
December 5, 1916.
,
addressed
address
to
assessment had been
an
of
Under date of December
mittee
companies of the
the trust
that
made that a
request
institution
eacb
by
practicability
so
the effect
to
on
operation.
suitable
a
being duly made,
York City
campaigns, to promote fiduciary and other Trust Company- services, and
that said committee shall in its recommendations include a plan of
of the Executive
the passage of
held in New
conjunction with the officers of the Section be created to investigate
the
of
Campbell
M,
Henry
action
the
in
litigation
the
of
expenses
levied by the Committee of one
sent
Honorable
7th
appreciation
high
Publicity was created
Committee on
Resolved, That a special committee consisting of two members to work
in
of the country.
circularized
were
motion
The
companies by the untiring
trust
pleasure
May
011
Special
the Executive Committee
in connection
country,
its
record
the
the
with
meeting
its
of the
recognition of his untiring zeal and energy and
in
meet
capital
Smith,
Dinkins,
Report of Special Committee on Publicity'
The
ing them
to
to
of
acknowledges
at
trust companies
country
desires
ability
great
It
Committee
the
H.
Chairman.
it greatly deplores his death and the loss
rendered
service
and
Detroit,
of
Lynn
<
great ability.
further
Committee
efforts
Orb,
Theodore G.
.
companies
trust
of his clients,
other
valuable
the
the
to
country of his
our
The
Kemper,
Isaac H.
before the Supreme Court of the
argued
was
,
with all
T.
W.
care.
case
valuable
will con¬
<
E. D. Hulbbut,
United States
by the Honorable John G. Johnson of Philadelphia, and the Honorable
Henry M. Campbell of Detroit.
Every effort has been made by the
Special Committee on Legislation to have the case properly presented,
and, regardelss of the result, your Committee feels that it has done
its best and left nothing undone to advance the interest for which it
was acting.
■ ;>"*■'
The Committee begs to express its great sorrow that within two or
three days after arguing this case before the Supreme Court of the
United
States,
that
greatest of American lawyers,
the Honorable
John G. Johnson, died in Philadelphia,
and while the Committee is
most grateful that his life was spared to permit him to render such
The
these foreign
these organizations
Respectfully submitted,
Federal Reserve Board will exact
which have been strong factors' in enabling our
to properly protect and conserve the trusts coming
requirements
of
to be for
prestige of the United States.
ating under Federal charter that the
those
seemB
the placing of
cooperate in
to
confidently believed
is
the extension of the trade and
to
Trust Com¬
the establishment
The present tendency
to financial institutions oper¬
granting these powers
them to join the
that our
suggested
was
consideration to
some
institutions
and
it
countries.
foreign
number of
a
ownership of stock in corpora¬
order
'
officials should give
pany
this in
meeting,
City
United States was rendered on June
the
of
in
that
of its organization,
purpose
Kansas
11th,
which that portion of the Act was sustained, granting
to National Banks. It is the hope, however, of your
Court
this year,
the
that
has
Act
Supreme
fiduciary
in
activity
permitting the
acts
Companies,
Reserve System.
the
At
has. been one of
past year
passed
by Trust
Federal
namely,
constitutionality of Section XI, paragraph k of the Fed¬
considerable
eral
during the
Committee
the
of
work
etc., when authorized by laws of the United States,
executor, trustee,
Mason,
:.
special
through
individual
work.
comparatively
and
"
Receipts
Amount
subscriptions;
Amount
;
of
of
interest
Total
207.75
$32,500.00
310.40
21.84
stationery
and
and .incidentals
Telegrams
Additional clerical
fees
and
to
undertaken
In'bank
mately
$387.02
which
19.36
is
at. this
rate
A
In addition
referred
to,
their
to
New
was
largely
entirely
figures
This
company.
will
be
a
after
astonishingly
effort
Hampshire
fiduciary
the special
As
by
an
activities
conducting the test above
right
the
the
States
to
the
transact
developed
idea
of
finally, after much labor,
of
the
State.
for which this
task
Committee
was
approval of this
In
banks
is now at
created
report,
in order
that
terminate.
may
Respectfully submitted
Uzal
II.
individuality
Trust
"
During
of
the
almost
have
that
past
in
activity
meetings
speaking,
were
there
as
The
State
and
intendent
Ohio
Federal
of
trust
we
are
State Legislatures
which is
have had almost
members
in
our
now
as
in armed conflict.
many
State Legisla¬
national union.
Broadly
the proposed enactments affecting Trust Companies
however,
rather more
banks
of our various
conservatively phrased than in the recent past.
Iowa
established
a
separate
department
to
control
companies, placing them under the control of
a
its
super¬
Farm
it
legal
Loan
for
Bornlft.
tion
in
Trust
Companies
to
invest
their
funds
in
that the conditions leading up to and following
inopportune any attempt to suggest for
render
In
of peace.
time
satisfactory
solution.
the questions
Among
national publicity to be given fidu¬
be con¬
of solu¬
time of war they are almost impossible of
Trust Company services.
The problems to
publicity campaign, national in scope, are difficult
other
fronted in a
to be answered
are
those of apportionment of
raised; writing and selection of copy *, selection of
mediums; circulation and clientele of mediums selected; preparation
of Trust Compuaniee qualified and equipped to execute trusts, to take
expenses
and
how
advantage of the new
these
men,
of banking.
made
list composed of people
comprehensive plan for
a
and
ciary
operation of the War Department
the
portion of the civilized world
Counting special sessions,
tive
efforts
the
year,
equaled
Protective Laws
would
events
execution
on
,
comfortable incomes and appeal directly to them,
in effort.
The apparent difference of opinion is, however, more apparent than
real, for the members are unanimous in voicing their desires for greater
activity in securing the nomination of Trust "Companies to act in trust
capacities.
A carefully prepared plan of national local publicity would,
therefore, no doubt receive,the approval of a large proportion of the
membership, if introduced during normal times.
.
Shortly after the appointment of this committee diplomatic relations
were severed and Avar vras declared with German^.
It therefore became
and
increasingly apparent
McCarter.
-services.
Trust Companies,
should make up a mailing
Company
property
these
Report of the Committee
in
thereby avoiding a large waste
busi¬
defeated.
was
practicability of
co-operaticve local campaign to promote fidu¬
other Trust Company
or
with
fortunately,
determined effort was made to grant national
which
a
removing
fiduciary
a
which,
companies
trust
Washington
of
the Legislature
Washington
conceived
fight
the Committee begs an
end,
in
of
who
the
bitter
won
was
a
powers,
State
lawyers
of
companies
trust
notably
the
In
composed
from
great
New
difficulties,
of fiduciary services of these
Tliey believe that there -is a
and that they would not,
for instance, care to join in the issuance of ail advertisement in their
own city which
would include their competitors on equal terms.
They
also believe .that they are1 better qualified for trust service than their
competitors, and that the number of people with accumulated property,
comfortable incomes, or those able to carry substantial life insurance,
are limited in number and
may be easily ascertained.
They feel that
rebate
at
South
the
national campaign or a
distinct
$8,000,
done
in
member
ciary
the
companies,
round
Committee assisted trust companies in several States
Hampshire.
An
ness.
its
in
leave
the work of the Committee in
your
legislative
and
an
will
subscriptions, thus enabling
subscribing
each
subscribing
several
This
of total
cent,
per
to
the
to
described.
a
approxi¬
date.
early
in
return
to
balance
of
excess
bank it is estimated that it will cost
in
the matter as one to be
They believe a national campaign would
great deal of good and be of value to the
'
said that they doubted the
*
$41,523.70
the balance now
Of
Companies a
companies.
8,387.02
.................
Section-.
ignorant of the advantages
public,-now
304.50
balance
by the
Trust
the
do
book¬
typewriters' and
the
publicity for Trust Companies, and look- upon
help in forwarding circu¬
keepers
they trust that the find¬
committee may he worked up in some concrete form so
that' a pamphlet may be prepared for distribution to all members.
Another member from Massachusetts wrote that they are in favor of
of
ings
fees
Printing
of advertising their company, and
the subject
—$41,523.70
...;
Expenditures
Counsel
Present
operation with other Trust Companies."
/
A member from California stated that they devour any literature on
$41,310.01
....
deposit.-..........
on
receipts
•
lars
received
Out
only
few
points
are
In addition to
familiar to all publicity
sentiment created in their favor.
those detailed items so
uninteresting for recital here.
of 2,000 wills becoming operative in Ncav York Ciunty in 1915,
but
about
40 estates
represented were placed In the hands of Trust
182
BANKERS'
Companies.
reflect
In
necessity
centers,
condition.
a
for
Trust
large
This
and
small,
is sufficient
Companies,
in
even
would
to
reason
largest
our
to become more active in spreading the knowledge of Trust Com¬
the
taken
belief,
upheaval,
the
at
at
for
material
to
be
cost
in
use
The Section
to suggest
advantage
should
social
and
economic
to your consideration and
members
the
conduct
furthering such
tested
and
of
advertisements,
member
local
a
order
The
of
plans.
companies
^
will
tbey
that
in
cooperate
^
:\V
to
Jambs
v
M.
mitted
In
detailed recital of all work done by
a
Secretary's
the
It
the
presentation
thereof.
of
which
would
Upon
returning to
regular
and special
prising
during
New
work
the
a
small
very
space
the
Kansas
the
Section
office
City
Convention
entered
was
upon,
the
com¬
following:
the
the
meetings
of
Executive
the
Committee
Preparation, editing and approval of
Preparation
A
of
deposit
tion
correspondence.
on
number
a
such
to
are
tion
be
of
China
occasions
of
Secretary's
office
to
institutions.
several
the
to
discuss
hearty
and
of
China,
of
Much
work
information
has
Your
bank
and
At
trust
of
the
Loan
June
to
entire
pertaining
has
office
Involved
series
of
sembling
questions bearing
data
received
wag
Liberty
The
now
nearly
upon
Over
in
siKJcial
order
8,000
to
reach
fying responses
"
the
Book
the
use
of
of
incident
thering
the
next
were
the
conclusions
Forms
the
to
the
signal
and
and
war/ have,
work
Liberty
the
until
Loan.
as
a
after
part did
my
words
just
fail
I
closed
him.
such
be
sub¬
has
It
given
has
character
a
here
to
a
more
of
place
a
personal
fitting
a
record
on
sense
an
ex¬
It was he who placed
year
most
of
about which it
my
shall
permanently
my
and throughout the
ago,
generously
been
as
of
indebtedness to the Chairman of the
my
large number of subjects,
a
consult
of
coopera¬
Inappropriate.
indicating the lack
as
It
is
also
thanks
to
to
the
nection
with
President
general
his
with
the
Seventh
of
the
him
also
at
bear
that
constant
his
time
was
to
to
commend
and
privi¬
my
endeavor
acknowledgment
McCarter
work
valued
program
consult
pleasure
of
the
for
Trust
render
his
you
about
which
testimony
to
the
helpful
it
Without
all
which
I
exception
sub-committees
had the opportunity of
member
every
has
shown
of
the
the
of
rela¬
in
con¬
tbe preparation
was
necessary
to
■
■
.
assistance and
ating courtesy accorded by Vice-President Blair in
matters about
in
details incident
and
.
made
courtesy
especially
more
frequent intervals.
willing
hereby
unvarying
but
Companies banquet,
this Convention,
for
his
Section,
is
guidance concerning the many
Annual
with
all
matters
connection
undevi-
with
all
conferring with him.
Executive
greatest
Committee
consideration
in
pertaining to the work of the Section.
tary and Secretaries of the various Sections.
harmony of action have been
An
earnest
realization
lenges at; all times
stant
the
of
my
the
best
aim
and
connec¬
purpose may be summarized, by
Acknowl¬
Co-ordination of effort aud
throughout the year.
possibilities of the
endeavors
of your
Section
work
Secretary,
chal¬
whose
con¬
the ideal co-operation and service.
Respectfully submitted,
Leroy A.
Mkbshon,
Secretary.
Treasurer's Report—Financial Statement
Sept.
1,
1016,
to August 31,
1917,
inclusive.
Credits.
company
filled
for
Sept.
well
of
Con¬
as
Goebel,
the
30,
1916, appropriation by Executive Council.....
$8,500.00
May 9, 1917, appropriation by Executive Council........
1,250.00
Received from sale Book of Forms.
49.00
on
this
from
of
A\*as
a
and
this
may
convention
Disbursements,
,,
effort
well
as
of
as
as¬
Salaries
Executive
be
Book
fifty-
.v....
.
Committee
Itent
of
.
,....
$4,600.05
meetings...............
Proceedings,
1916.
1,030.70
983.04
,.
605.04
.
typewritten
Postage,
and
Convention
stationery and
printing.............
585.72
'
therein.
financial
bonds.
these
passed
Ove.r
2,000
institutions
Many grati¬
letters.
Secretary
new
a
thereof.
the
and
The
activities
possibility
possibly
for
of
until
fur¬
expenses
320.79
v......................
Extra office help...............,.,........
155.70
Gold
125.00
token
Telephone
Books
outlined
subsequently adopted
Sections
the
of
pages
to
precluded
$9,809.80
10
with the duty
examined
embodied
your
4.00
latter
May
trust companies
exhibition,
1,500
6.80
Received for 8c postage
General
upon
Campaign,
of
in selling the
several
this
on
result
Journal
however,
on
few
a
will not consider
construed
Committee, Mr, John W. Flatten,
upon
and
meetings
as
meetings
Loan
addressed
Service "• which
Association
the
were
success
received
issue "of
March
trust
and
charged
personally
were
letters of commendation
whose reports revealed
In
covering
reports
addressed
will
various
the
President
served
results
five
matter.
inject
to
me
trust you
recognition of
months
and
their
of
thereafter throughout nearly
the
therefrom.
compilations
by
30,000 banks and
upon
herewith
has
several
on
in¬
done.
Membership
,
daily
witnessed in the Liberty Loan chart
separate
of
be
the year,
has
and
Secretary
over
Chairman
your
stimulated
communications
appended
be
Received from sale Trust Company Laws...........
Association.
Your
preparing and forwarding to
could
reading of this report.
be
the
is
and
their
members
all
conferences
attendance at almost
months.
to
inaugurated
section
the
statement
the
educate
to
of
systematically
remains
throughout
15, and at frequent intervals
summer
the
Associations.
the
of
service
thereto.
phases
and
year
yet
conference,
represented
Committee
availed
and
to
replies
frequent
officials
Bankers
sent
were
various
the
however,
attended
Committee
with
to
during
company
periodic
Committee
connection
Much,
State
also
has
War
in
gathered
Secretary
ventions
he
been
reference.
reatjp
prepara¬
from
furthering the expansion
sub-committees, "several communications
prepared
the
to
pdan
a
companies
received
was
visited
governments,
view to eliciting
a
Executive
the
by
was
special
before your Executive Committee
steady increase is noted in this form of service.
activities
compilations
of
with
prior
extended
was
trust
Members
outlines
In
office
where
investiga¬
and
foreign
Just
China.
the
cooperation
A
of
for membership
employees,
special
Secretary's
along modern lines.
interest
and
the
Shanghai,
Association.
effective systems
of
edgment is also made of the helpful assistance given by the Officers and
Department Heads of the Association, as well as the General Secre¬
much
interviews
through
Japan
the
Section
tion
representatives
application
Company,
the
by
Norway,
report
Trust
telligent
connection
established
this
stimulate
Due
of
those
as
this
of
This
by
the
despatch.
reported
as
increase.
year
amount
and
of
required
answered
In
sub-committees.
work
unfolded and followed
most
phases of trust company and safe
which
were
its
Journal
the
all
upon
of
many
research
for
month
inquiries
operations,
and
each
copy
great number of
and
for the Annual Proceedings.
copy
the
the
judgment in my selection.
I
Various Secretarial duties in connection with the notices and minutes
of
I
to
•-
from
York
of
year
but
consume
-.'■V-.'
■
■
of
to
my
report,
a
greatest
accuracy
Section
the
permit
which
Executive
tion
Secretary to prepare
your
the
appreciation
time, it has been
of
financial
might well
pression
oflice during the past year would exact an unwarranted claim upon your
the endeavor
the
of
the
with
gratifying
throughout
after
service
Report of the Secretary
Relieving that
that
members
conclusion
advice
Pratt.
in
all
very
The
twelve
'
closed
install
to
non-members, setting forth the benefits of membership and
lege
,
a
occasions
name
Respectfully submitted,
to
membership
shown
of
hand, and has
on
just
methods
tested
publicity campaign.
months
and
nature,
desired,
as
twelve
the constant aim
let¬
form
companies.
communities,
quantity of such matter
number
a
using
compre¬
use,
the
developed and its possibilities carefully
It has been
be
extending their lines of
for their individual
contributed, by
to
has already a
from
assurances
in
political,
of
cost, to all members,
booklets
Furnish
been
up.
tion.
advertising campaigns,
and
members
days
following:
Furnish
hensive
possible
every
its
these
committee desires
your
adoption
that
assist
to
during
even
Throughout
has
rendered
therefore,
the Section
by
usefulnes,
2,
other
and
startling
equipment and service.
pany
ters
records
as
the
upon
cities,
1.
Court
reveal
doubt
no
CONVENTION.
and
retiring president..................
and
telegrams
63.20
......
binding.................I........
Traveling expenses
49.30
67.98
;..
Cards, plates and frames for addresseograpb...
Gavel
35.48
15.50
............................,..........
Express
charges....
.
5.87
8,643.97
after
Credit 'balance.-...,... .....V......
...,
$1,165.83
Detailed
Report of Proceedings
Twenty-second Annual Meeting TRUST COMPANY SECTION, Held
FIRST
native
SESSION
state,
friends,
Tuesday,
President,
Company,
p.
Trust
H.
Uzal
Newark,
McCarter,
J.,
N.
and
the
to
properly
,
called
President
of
meeting
tbe
Fidelity
tbe
after
shortly
order
to
Trust
such
as
shores
speaking,
in
equally
I,
of
claim
too,
New
The
of
Section
:
tbe
annual
twenty-second
American
tbe
will
Association
Bankers
of
now
meeting
hearty
a
order.
welcome;
it
D.D.,
Pastor,
pronounced by
William
tbe Reverend
First Presbyterian
McCarter:
President
Mr.
be
We
will listen
now
the address
to
The
my great
J.
welcome
of
Chambers.
the
ladies,
by William Chambers, President
New
to
say
New
hearty
and
Gentlemen,
consider it
I
of welcome to you
Jersey Bankers Association,
greetings,
to
and
We
harm
think
great
a
this
welcome
warm
feel
We
and
On behalf of
may
will
the
your
tbe
of
State
New
of
of
I
glad
are
have ever
This is
This
This is
is
the crisis of the human race;
these
world's
the
to
consider
to
this
that
and
stupendous
will,
afternoon.
It
with
teaming
army,
shows
which
have-
you
wisdom
the
important.
.
pending before us,
are
and
the
A
reply
a
have
to
the
he
given
to
and
Jersey
the
by
and
You
hit
have
sacrifices,
these
stronger
during
here
has
this
back
go
called
while you
the
and
long
which
tbe
In
talked
individual
has
hundreds
and
branch,
who can
gentlemen,
section
each
done
been
by
all,
you,
homes
and
and
during
you
who
can
that
as
will
you
world
invite
we
of
not
you
there
and
possibly
year,
for how
say,
ours,
made
consider
difficulties
coming
many
serious time, while it happens
a
deeply
have
you
feel encouraged
the
meet
the
been
doubt
no
trust
that
have
forces
You
sincerely
years.
been
feature.
Intersperse
be this
feature
Atlantic City
to overlook.
in reality-it
and
the
offer you;
can
the
of
and
that,
and
day,
as
strengthened
as
and
serious
things
body
the
sincerely trust that
to
to
and
with
and I
retire
you
return
you
in
great
of
allay
and
lull you
may
homes,
your
hotels
your
you
«»
may
to
go
mind,
of President Uzal H. McCarter
Association,
having
charge of
of
convention
tbe
Mr.
:
Chambers,
Council
that
affords,
or
as
entertainment.
of
1917
the
the
to
before
was
which
ability.on
of
people
Mr.
report,
reputation
who
Chambers,
which
which
this
placed
upon* it
It
duty
is
a
to
would
your
that
matter
of
preside
at
the
members
especial
the
invitation
which
of
the
to
met
I
and
the
hotel
who
are
held
highly
of
the
part
beautiful
the
great
of
city
management
time,
demands
the
holding
to
express
Committee
bring
and
of our
other ladies. of
We welcome you with
it
and
us,
won't
so
,
.
do
you
banker
holiday,
tlie year
Much
the
of
most
by
the
test
by
which
with
num¬
before
it
year,
for
this
the
to
he
my
in
my
any
through
which may
emergency
anxiety
hour
have
the
on
largely
well
in
usual
States
in
of
part
the
Reserve
Federal
fiduciary
powers
by
Act
member
upon
committee
a
The
country.-
rendered
with
connection
tbe
conducted
tbe
during the year,
the decision
which
conservative and
conviction
and
During
,
the
minds
everywhere
be impressed
in
injury
the
in
could
be
companies,
Loan,
Liberty
States
country
done
it
in
by
deemed
was
and definitely
having
bns
dliar-priU'C^,
of
to
make
public
its
that
and" honor
other
all
of
office
boy
various
only
without
expense
to
Liberty
Loan
Statistics
one
the
of
tbe
and
the
of
the
been
played
a
the governmental
possible extent,
unselfish
and
of the
the offering
this country
Companies
was
results
loan
at
was
of
the
of
one
highest
and
efforts
were
ac¬
the American
and
war
country,
throughout
organizations
impulse—to
have
which,
cooperation
been
With
the
make
though
very
reimbursed
however,
that
well
as
patriotism.
as
The
relatively
the
the
country
recently the
for
the
speaking
financial
were
successful
loan
and
several
actual
dis¬
were
very
institutions
of
tbe
tbat
tbe
other media of advertising.
unquestioned
people
to
tbe
veracity
war
prevalent throughout the middle
success
of the country
fullest
remarkable
such
Government,
Committees
of
has
made the business of the hour and from president
was
the
feat
first instalment rof the
patriotic
their
that
institutions,
with
animated
financial
the
of
the
to
that
Trust
the
of
companies.
stake.
at
were
of
attitude
equally
bulk
great
cooperation on the part of the financial
time of
realized
fully
the
and co-operated with
and
successful
the
at
as
not
selling of bonds
to
country
loan
the
had
life
The
the
Reserve
an
the laws of the older
where
unparalleled
charge
in
will be of
pervades
East,
trust companies
the
loan
only by reason of such
was
the
successful flotation
which
the
trust
institutions
sister
business
Banks will act,
trust
conspicuous and important part,
agency
with
corporate
to
their
to.
of
class
of
entirely
an
the
except
thereby,
having been thus finally settled all opposi¬
trust
performed
year
accomplished
the
being raised by reason of the doubt which
best
stringent character as
is
of
is and must he accepted by us all as the
the National
conservative
business
trust
repre¬
contention
under
more
a
summer
Board,
and
of
part
caused
hand.
has transpired
undoubtedly
convey
sensitive
most
to
am
exists
created
newly
they trust and hope that the regulations of the Federal
due
I
still
and
the
contained,
divided vote sustained tlie constitutionali¬
a
great
a
of
part
press
happens
might
be obtained by member
can
of
be
to
was
of
it
The question
the
to
customers
been
of
has
year
though
apathy
that
this
by
the
of
public
been
the
that
to
The contest
some
slight,
have
anxious
has
one
United
weight
such
as
far-famed
the
to
of
was
of
tefct
carried
entertainments
which
able
current
largely tended
ably argued before the Court by eminent Counsel,
was
incurred,
be
the
has
therein
meet
been
seems
the
sought
the Court
management.
on
they
the conditions
the act of prudence to have that doubt finally
determined
tion
daily
entire abandonment of bis
Companies
and
in
lie only
to
to
companies
of
which
land.
arisen
in their
speaking
of
operations
Court, whom it was hoped would
law of the
standard
and
which
the
provisions
has
an
trust
Court
trust
the re'sult that
had
to
arguments
the
them
the
with
lias thus far passed by without' any untoward financial
Banks,
trust companies
im¬
to
and tbe endeavor has been
naturally
them
constitutionality
the
whose
in
uncertainties
Congress
National
senting
the
compass
possible manner
hankers
our
far-reaching of which
the
in
duly
country
or
generally
crisis
the
added to
the situation
interest
Supreme
of
assist
increase of credit
if Indeed not
happenings and
have
trustworthy
any
to
policy,
the
the
tbe year
the
and
curtailment,
to
permit
chart
a
maelstrom
arisen
.
.
While, therefore,
the
have
themselves.
public
to
as
world-wide
country,
that
best
during
and
or
result
the
which
almost unlimited
an
in
experienced,
tbe
the
without
rely
may
the
present
Act
the
which
of
institutions
comfort
bursements
to
here.
pleasure to me,
Convention
on
far-famed
the
the
the
Council
pleased
present
and
ali
am
for
this
the entertainment of
have,
have
place
Executive
no
part
here,
up
hotels
place affords,
by
be
the
was
the
amply provide for the needs—yes,
ber
to
into
life
mouth "
of money
of
institutions,
the local committee
and
the
attractions
many
present
bring from the New Jersey
When
Association, there
to
as
del gates
the
you
the bankers of the State,
our
Bankers
American
to
PRESIDENT
States
they
to
to meet
day
Reserve
complished,
McCarter
appreciate the words of greeting which
Bankers
President's
tbe
hanking fraternity of the
with
apprehensions
confidence
Federal
it
'
President
to be
otherwise
institutions
R<^>ly arid Annual Address
OF
themselves
which
incalculable
any
have
find
"hand
a
ease
performing
to
another
is
places of abode, that the ceaseless rhythm of this surf
refreshing sleep,
give
which
to
desire
Executive
the
assistance
physical
the
upon
upon
ty of the act
playground of the world,
deliberations
^freshed
their
billions,
our
considering these matters, do not neglect the social part,
are
will
attend all the meetings
possible,
as
uncertainties
their several
each
may
The
their
when
ago
congratulate you,
which
your
whole
which
playground
the
to
each
I
face
pleasures which Atlantic City
vfter
want
afternoon,
to
will
this
in
convention
been
They
talking in
conscription.
the successive year,
this
I
and
Gentlemen, while this is
to
would
from
billions for de¬
but
was
institutions whose
by
you;
which
stupendous hour
millions,
That
are
work
from
and
matters
to
compensation
commerce
Liberty Loan.
of
important
made
how much effort will have to be put
and
magnificent
first
problems
and
association,
many
and
remark.
this work;
come
the
tribute."
be,
that
out
commodore
a
"
today to the challenge which
" Not
that
made
'
but not one cent for tribute," and
for
millions
enlistments
by
told
is
billions it will
the
including
cent
man,
and
the bankers
we
the
on
when
but
whole
the
thereof,
for
Jersey
ships
our
civilization
to
and
in
us
pirates,
answer
commodore
how many
forth
certain
a
release
to
not one
thousands
tell
Barbary
thrown
been
fence,
of
important
ah
•
" Millions for defence,
believe that
has
years- ago,
many
depredations,
I
play
'
great
of
I
that,
not now here.
are
United
the
management,
adopted
arise.
.
the Bankers Association must
part.
to guide
continues
aud
the
as
the bankers
business
As I have said this is an important time, and In these matters which
,
kindly
your
we
program
our
reading
with
of
far
of
be
consequent
themselves
precedent
or
the
,
subjects
the
upon
Bankers
well
that
end
hour.
good guidance of your able president in selecting these topics which are
so
the
will
you
as
who
will
of
the
as
pressed
have
meeting, and
American
the
financial
great
a
gentlemen,
you,
again,
you
progresses.
,
congratulate
determined
see
here,
that this
and I feel
topics.
important
I
likened
be
can
to
are
convention, the first
war
a
meetings of these great Sections of
Association,
hearty,
a
attended, which is probably true with
here.
those
that you
the convention
as
to
of
welcome,
you
We are glad
presence.
you
regard
all
of
you
(laughter).
and
war
which
and continue
grow
that
most
be
wish
large, that
you
you
entrance
financial
behalf
heart.
meeting in serious times.
are
convention
war
with
honored
this feeling
We
the
from
The
of
On
especially desirous to bid
am
sincerely trust that
we
that
to
be in¬
honor tQ
afternoon.
I wish to extend to you tbe most
felicitations.
and
City, I
part
for
you
you
assure
proceeding
express
that
and
us.
Jersey I wish to welcome you to our borders, and on behalf of the people
of Atlantic
thank
we
to
the
welcome
then used ure
extend
Jersey Bankers Association
word
a
to
do
Jersey
my
more
or
Chambers.
Mr.
order
ADDRESS
President
Mr,
vited
New
important
before
the convention with you,
(N. J.) Trust Co., and President
beg
privilege
my
tbe words that I
and
Chambers,
you,-
in
and
members at
any
Vineland
the
was
today,
ago
years
appreciation of tbe rather large sprinkling in tbe attendance of
section,
Address of Welcome
business
Ten
from
we
we
the
to
thank
Address
tbe
of
Mr.
aud
We
next
Annual
N.
Atlantic City,
Church,
and
consideration
Merle
Henry
Dr.
and
welcome,"
of
refer.
you
"
will
invocation
Mellen,
serious
today,
right to welcome you,
the
Jersey.
yesterday,
applicable
expression
McCarter
Company
Tbe
by
in,
in.
President
be
2 o'clock p.
1917,
American bankers at Atlantic City,
Tbe
2
September 25,
Atlantic City, Sept- 25 and 26, 1917
at
loan
was
and
West,
manifested.
and
Its
Indicate
accuracy
necessities
was
particularly
where the least
interest
The
cooperation
efforts
and
in
the
on
BANKERS'
184
tbe
part
not
less
of
the
sidetracked
Full
to
loan
the
make
successful
of the country and all other
Federal
for
Banks
of the Retails of the
by
the
undoubtedly
the
popularize
other
cordially
only
Reserve
displayed
will
country
not
was
more
could
The
Trust ^Company
Reserve
with
Banks
while
in
The
which
others
Section,
Section,
possibly
its
or
have
and
It
been
the
to
receive
district
done
by
in
obtained
members
have
possible.
as,
by
be
generally
with
notes
through
Institutions
have
under
already
begs
several
important
probability
the
well
as
Section
the
to express
them,
offers
hope
business, and to those who finally enter the system
themselves
to
it
with
however,
to
ence
service
in
the
the
fix
to
upon
effect
terrent
and
Institution
the solving of
for
On
the
the
the
in
for
prepare
It
war.
does
time
same
to
banker
meet
now
jo
the
put
bave
a
de¬
to
manage
ruthlessly
and
to
advance
foreign
in
his
acting
so
needed
and
complete
the
for
should
be
it
where
shutting
befall
withdraw all
the
credit
is
down
country
and
cause
become
due
of
business
of
the
to
nation
a
cautiously, and above all things
invasion
existing
thrift
after
close
conditions,
war
and
the
saving,
and
that
no
more
important duty devolves upon the banker at the present time than that
he
should
preach the gospel of
generally,
thrift
through
only
as
the jpeople,
by
thrift to his customers,
widespread
a
to a' degree
adoption
and the public
practice
and
hitherto unknown
can
by
of
American
the
to
the Government meet the vast financial necessities,
people,
war.
the
though
bis
continuance
therefore,
firm
President
port
will
would
the
of
the
If
usual
selves
ate very
far
heard
changed,
will
we
the
the
of
distribute
to
as
employ
its
of
business,
and
institutions under
the bankers will
received
kindly
be pre¬
the
President's
Re¬
filed.
and
the
Will
forward,
come
While
blanks,
for
the
which
seats
our¬
being
are
ask
we
the
as
it.is almost impossible to make
room.
at¬
your
tention.
In
the
preparation
made
ideas
for
this
the
'minds
that
of
thus
make
have
the
This
mind
such
speeches,
for
of
of
trust
every
ship of these companies,
Reserve
cussion
System.
papers
sible tbe
is
We
the
value
to
company
have
Secretary
leave
to
the
we
the
of
about
members.
in
the
iu
the
on
of
our
not so much
business,
our
With
that
Is
in
to
and
view,
uppermost
country—the
a
Federal
discussion
a
arranged
as
a
leading
element
in
the
the papers that
however,
membership
have
been
as
to
distributed
the
in
papers
your
that
are
seventh
inning
sit down and
now
delighted
am
to
having
speech,
a
but
But
you.
I
in
for
fine
the
last year,
the
spirit
employes have shown that to
will
I
can
friend Mr.
my
few
a
of
me
I
and
honestly
say
grateful to have been able
am
address of
I
It
Jones.
here
not
am
words about the Trust
Company Section—the rejuvenated Trust Company Section.
progress
we
arrived,
Bankers Association,
believe the proper thing to
I
I do want to say
remarkable
this
Association:
Bankers
that.
the "able
to
of
hit the bull.
him
see
with
be
than
more
listen
178
to
It has made
certainly und'er
am
cooperation,
for
their
many
and
officers
President of the American Bankers
as
Association.
Their
this
in
work
was
for
the
placing
fifteen
last
particular
who
got
the
effectual
more
years
to
judgmeut
to
continue
to
be
Loan
was
other
any
making
to
making
what
to
as
Liberty
than
section,
probably the
were
attention
their customers
their
first
perhaps
in
to
of
they
banks
that
for
the
people,
who
relied
take.
finances,
because
and
investments,
investment
supreme
class
only
investments
and
magnificent,
If
the
is
ability,
in
financial
and
and
upon
country
the
world, we need to become savers and investors, and the trust com¬
panies have laid the foundation for the teaching of the people to make
sound
I
investments.
am
quested
trials
„
especially
him
and
to
grateful
make
to
chart,
a
tribulations
that
efficient
your
showing at
out
and
working
which
of
questionnaire
got
we
hard
a
is
the
Sunday
every
I
think
bankers
immediately
work,
I
think,
of
one
in
working
the
placing
in
progress
year,
next
loan
that
is
received
in
entitled
are
presentation
the
section
of
day,
I
of the
it
is
I
and
of
of
on
a
to be
the
Section
[Mr.
the
at
launch
read.
Executive
case.'
I
I
Asso¬
letter
a
to
would
last
the great ques¬
that
like
the
Bankers
to
good
so
in
•
this is
as
would
of
this
West
the
and
I
like
I
had
think
read
you
that,
to
as
state
a
to
McCakter:
entitle
him
claim
that
Company
pened
to
I
he
was
him
President
to
sure
we
meeting.
chairman
he
There
had
McCauter
to
a
been
the
take
.
:
sick-bed
:
.
address,
on
page
indebted
much
very
consideration,
the
- no
to
Executive
telling
but
he
Committee
what
would
won't
of
the
have
hap¬
»
will
have
now
Frank
been!
the
great
pleasure
W.
Blair, the President of
Michigan, and whose company
Detroit,
contest
all
He ought to have
We
much
President,
which
has
pleasure,
Ladies
been
referred
therefore,
in
to
to
of
the
was.
throughout
presenting
Gentlemen:
and
regarding
I
that what
vidual views and
part
know
President
his
the
Mr.
you
'
Committee,
paper
Jones'
formerly
was
even
from
that.
Mr.
Company,
in
I
:
by
paper
impression
tive
Mr.
and
of
is
position I opcupy in this Section,
false
think
Pierre Jay has many qualifica¬
Blair.
Mb.
I
comes
'
are
Mr.
commendation
ever
Section.
If
Trust
active
very
letter
the end of
am
Bbeckenridgb Jones
listening
know,
you
publication.]
Trust
Mr.
as
and
somewhere.
this
Jones for his very able paper.
to
Jay,
time,
one
in
Mr.
Committee,
Jays' letter is given at
President
any
American
remarks
experience
compiled.
If you make as
-
in. my
by
and
chart,
a
think ought
this
Mr.
the
made
'
and
it
have
you
Chairman,
Jay,
side
my
of
that
people asking their views, and received many interesting let¬
but this one from Mr. Jay, which I received only yester¬
Chairman
178
Mr.
hear
to
in
in reply,
ters
out
as
campaign
Mershon,
been
ever
in
midnight,
answers
has
had
Association
that
A[r.
until
re¬
and
great deal of assistance and suggestions of points
have read, because I wrote a great many letters to
I
paper
different
of
Pierre
banks
of
and
compendiums
that
years
referred
I
us,
Mr.
that I received
you
Jones:
before
from
gentlemen
final
the
.
Breckinridge
tion
close
times
I
troubles
Bankers
with your good work.
on
five
ciation."
Mr.
the
up
greatest
be the premier
will
you
the
made
any
only want to say to you, " Go
much
at
responses,
many
because
the
hundred
The, American
eighty-five hundred
some
diligent
glance
a
eighty-five
some
helping to plpce the Liberty Loan,
sent
Secretary,
of
In its
the
want
Is
the
to
no
I
and
feel
it
I
of
of
is
before
a
no
of
I
of
start
reflection
of
only
twro
ought
to
make
or
this
read
indi¬
own
has
three members
that
a
Execu¬
the
to
my
get
may
the Executive Committee
that
official
the
person
member
any
plain
therein,
member
preparation,
subject.
position
make
contained
that
Because
and in order that
had
even
announcement
in
justice to the members.
relation¬
the
system.
to what we hope will end in a
The
175
pages
on
in
the trust companies at large, to the Federal
disadvantages of trust companies entering the
by
the
doubt
no
today that which
man
communicated
to
here,
are
something
program
fundamentals
very
their
preponderance for
desirability
belief that
learn
Instructive
the
effort
an
membership
companies
as
I
The Relation
of
keeping will permit
Companies to the Federal Reserve
System, by Frank W. Blair
That
full, free
read;
Trust
dis¬
showing the advantages, and another one showing If pos¬
merely a prelude,
discussion
to
discussion
or
the
meeting,
the
and
and
trust
gentlemen,
my
the
of
character
as
to
as
section
the
from
Association,
a
affects,
it has been
adopted
the day's
attractive
an
relationship
management
and
great
the
of
of
was
the
make
for
obtain
to
With that end in view,
the
of
subject.
business,
hear
would
members
Act
tbe program
of
management
meeting.
al!
discussion
Reserye
we
the
what
to
as
with
full
by
that
here and
make
to
Union
was
i
;
certainly is worth coming to Atlantic City to hear It.
tions
objection,
be
room
the
few
a
seem
handling
owu
several
our
no
and
and
rear
would
part.
is
there
course,
here,
bad
in
in
what may
come
delegates sitting in the back of the
acoustics
it
ample opportunity
keep
do their
to
McCarter:
take
bave
Government
to
us
the end that
to
therefore,
war,
those which arise in his
well as
as
fully equipped
and
the
assisting
behooves all
control,
pared
in
of
banker
American
talents
problems,
many
it,
the
best
caused
V.
Ladles and Gentlemen:
truthfully much
be
found
be
Goebel, President American
Chairman,
is
to
a
the
During
We will
and
and
so
established precedent.
no
is
mean
McCarter:
say
critical
changing conditions,
but
credit
not
essential,
should
nation
while
which in turn
tends
day
W.
Mr.
lie should endeavor, however, to keep their
great
is
able
where
should
hand
a
refer¬
for
the
whatever
at
conservative,
and
suspension of business.
business well
during
contrary no greater evil could
banker
the
particular
tbe
and
but
present
and
credit
Conservatism
that
good,
help
him
Introduce
President of the Missis¬
and greet the president of the American
going
Congress,
the
taxation,
necessary
before said, there is
as
prudent
business.
its
the
ready
furnish
and
deserved.
than
be
which,
be
should
continue
with
increase
every
lie of service.
by
the incentive to production,
cannot
behooves
to
as
they may
their
the banking business of the country.
upon
therefore,
It,
trust
we
nevertheless when carried to the extent
not
business
is
to
the discus¬
and I have much
have to
do not
the
grateful
Companies to the Federal Reserve
.
Goebel.
gave
pledge
and
alarm,
and
legislation
such
present,
business
brakes
future
to the
act.
consideration
even
prices
proposed it tends to destroy
affects
which
in
under
now
hesitancy and
some
some
like
the
Government,
manner
any
attempt
undoubtedly
periods
the
of
view the legislation
They
will justify
one
future, the trust companies of the country reconsecrate
the
to assist
effort
thereby
stand
P.
the result
that
satisfactory
fully
prove
these
to
as
their
obtained
ones
of early en¬
of
will
feel deeply
we
We
know,
you
who will speak in favor of tbe trust com¬
will
obligations
joined,
consideration,
conclusions
results
as
that
impulse.
patriotic
as
the
several
the
and
members
their
As regards the
the
Bank
held
be
to
its
to
Mr.
company
address
Jones'
President
all
that
Resreve
trust
[Mr.
broadly
permitted
law
Federal
Reserve
with
discussion.
as
his company having done so.
the system,
publication.]
in
or
System
the
each
system and
advisement,
and
Breckinridge Jones,
The Relation of Trust
each
Several Trust Companies through¬
the
entered
is,
last moment to lead
presenting to you—I
all know Mr.
sippi Valley Trust Company,
com¬
transacted
the
section,
company
this
in
be
sick child and kept his obligation,
a
again
panies entering
for
taken
trust
decision,
by
Federal
constantly
whether
further recommended
It
under
matter
has
where the
held
today,
instead of declining at the
in
pleasure
participate
and
Jones
Mr.
trust
sion, he has left
successful
was
individual
to
who has left the serious sick-bed of a member
here
come
institution
any
of
that
the
that,
such
certain
of
spirit
that,
now
therefor
its best wishes and
all,
to
never
System.
not presently legal that the necessary legislation
was
system
tiie
having
question
a
reserve
gold.
quickly
matter
such
not
its
to
gold
of
country
the
To
of
any
being
business
of
cooperative
a
exchange
as
tering the
to
to
him
each
fer
you,
System, by Breckinridge Jones
to
as
matter
a
immediately deposit with
where such action
the
has
to obtain
particulars it
some
was
character
shown
the
lieu
in
reserve
beneficial
determination
It was
that
has
be
Executive Committee,
system
the
the
should
they
of
a
the
institutions,
Executive Committee,
would
and In
final
the
recommended
has
have
system,
join
upon
company,
settled.
on
so
of
to
welcome
particularly
founder
that
arguments
home with
begs to express its great appreciation to Its founder,
failed.
it
through its
should
depending
believed
it
that
position
panies
k
the
throughout
non-member
definite position in reference to the Federal Reserve
any
desiring to join the
He
in
family
the
them
take
may
particular companies as you may care to make thereof.
Breckinridge Jones,
his
to you—you
♦amendments
and
to
means.
taken
out
spirit
cooperative
Through one of its sub-committees it has endeavored
be
expressed
This spirit of cooperation
loan.
than
system,
their
Federal
do
thankfully
but
of
choose,
you
that you
in order
The Association
during that period.
if
memorandum,
a
in your own
Mr.
management
act,
take
advance,
of
generously
it
duties
to
use
justice would not be meted out if the great appreciation of tbe
several
the
were
agencies and tbe business of selling the
Companies
Trust
the
Government
became the business
Liberty Loan
were
Companies
Trust
tbe
than
CONVENTION.
and
you
[Mr. Blair's
paper appears on
President McCarter:
your
contribution
to
Mr.
pages
Blair,
this discussion.
173 to 175,]
we are
In
greatly indebted to
order
that
the
you
members
for
might
TRUST
receive
the
have
we
Bank
of
who
New
will
Federal
sion
the
will
wishes
J.
view
Bank's
freely
Mr.
I
the
Reserve
Federal
of
have
the
the
York
DISCUSSION.
Reserve
Second
and
indeed.
District
questions
pleasure in
that
any
I
information of
will
presenting Mr.
talk
time,
counsel of
Curtis,
CURTIS.
F.
F.
Curtis,
Chairman
privilege to
of
here
come
Federal
the
Gentlemen
and
Reserve
the
of
be allowed to address
and
Federal Reserve Bank of New York.
the
had
in
mind,
remarks
marks
in
Reserve Board
Federal
would
like
Jones,
and
appealed
Section
22
loans
to
of
was
be made
provided they
if
comment,
of
I
Blair.
Mr.
was
might,
point
one
briefly
Naturally,
Mr.
which
on
re¬
left
officers and attorneys by general
to
J.
Curtis
F.
Mr.
Jones
I
:
beg your
that
thought
to
would
to
that
cover
They
of
make
loans
is
Curtis:
F.
officers
In
the
You
too.
to
that
did not quite bring out
relation
some
With
if
business
Clearing
Bank
Reserve
Collection
and
would
Amendment,
effective
as
hand
so-called
if they
as
.
to obtain
paper,
or
tions,
the
and
therefore
still
in
whole
it
word.
other
non-member
ment
like
member
in
company
a
strong spot in
a
were
is
-That
that
suggested
entitled
Government
an
statement.
accurate
deposits
those
on
to" receive Government deposits of the general funds.
of
the
the
of
views
attempting
issue
to
that
companies
Board
uniform
rules
to
have
They
your
of
operation
of
trust
rules on
that subject.
President
when
It
that
The Board has already
question.
the
that
Board
will
and
but I have
those
I
points
be governed
will
at
do
think
not
you
gentlemen
Reserve
When
this
will
we
all
need
the Treasury and do not
do
I
that has
the
Bank
be
can
used
note
and
I
it
and
expanded
for
one of
would
the
you,
that we can get.
used to ex¬
it is a patriotic duty,
and every
trust company
in the vaults of a trust company
the vaults of the Federal Reserve
two
and a
of
safety
the
half times
nation.
over
You
to make
not
equal
hesitated
the
work
send
all
could
of you
do
by
our
boys
to
We
France.
called
We have not hesitated to subscribe to
there Is not one of us who does
Liberty Loan Bonds, although I suppose
not know that he can make a
in fifty places, but we took the Bonds.
You gentlemen ought not
to take a loss if necessary, if you become convinced that
goes,
to
hesitate
the
entrance
America.
and
that
of your
There
institution Is going to help the United
is Just one question left as Mr.
States of
Wilson has said to us,
Is the conduct of the war.
We
war basis, and I say gentlemen
question is this, and I believe we should all ponder on it—will
war
powers of the United States of America be strengthened or
mast
the
better investment so far as Interest return
your
own
president has said—it
change from
weakened
if
I
join
a
peace
basis to a
the Federal Reserve?
'
not
correct me if I
corrected, now,
that if
is
trust
a
company
of Mr. Blair's
If I am
this
defined a trust company.
number one hundred in
am
wrong.
Mr.
that mem¬
I am a modest com¬
we
as
than
I think that this definition,
which I have come to, and it is my own con¬
take bank deposits—whether we call
should maintain proper liquid
not—we
or
ourselves
reserves
natural following of that is we should belong to
System.
I want to contribute that analysis as
trust company.
Secondly, and then I am through.
against them, and the
the
Reserve
Federal
to the definition of
companies in Chicago
It has
into
one
that,
Interviewing
1913.
under
to my
at the time
system
under
of the
that
the
they
old
lot to
the Federal Reserve Act was passed in December,
their officers within the last thirty days, I am
found
the
others
definition
are
no
Since
law.
four or five of our
21st,
of some of you that several
have joined the System.
investigate the reasons that have led them
and I will give you that, and then I am through.
We have
company that I will call trust company A,
that joined the
fallen
trust
advised
and
a
have come to the attention
may
trust
objection in the system whatever,
since the amendments of
that time,
even
June
largest trust companies, who are also banks
we have developed, have joned the System,
All of them have analyzed these
which
making application.
questions of expense.
C08t—one
.
would
them,
and the conclusion
clusion,
•
It
I believe that is true.
System.
to
that
entirely agree with the expression
that does strictly a trust business, taking no deposits other
I remember that all of us who have studied this question
time;
gentlemen
took off your coats and worked for the
are
for that sacrifice.
them
upen
not
have
every
what we are talking about as a trust
trust.
—I want to be
commercial business, to join the Federal Re¬
joining the Federal Reserve
We
for
minds
will
whatever
our
final conclusion must be,
should be in the record—1 believe that
most of us who have followed the progress of this legislation through
a
number of years, will agree \Yith. Mr. Blair's point of view when it
is defined in that way; but I was very proud to hear at our Executive
Committee meeting yesterday,
that the assets of the trust companies,
in
the United States are in
the neighborhood of nine billion dollars.
I cannot for the life of me believe that a very large percentage of that
is other than bank deposits as defined in banking circles at the present
attempt to speak
going to do it next week over again and harder,
the remark that all the work that all of you did, good
You
eventure
was,
it,
That gold in
issues
every
Liberty Loan.
but
any
None.
nation?
Spring,
to- say
Of what avail is gold
System.
serve
last
hesitate
not
state bank
credit
the expansion
and all
resources
defined
Will you
bership.
take the Secretary of the Treasury to figure—
The other half cannot be, and I say that
pand.
and
the
our
Secretary, we have "about fifteen hundred members in
I will venture to say that the trust companies, defined as
has
pany
in
about half of the resources, where they can be
We have got
as
Blair
require one thousand million dollars a month to run this war, and
will
to
of
Secretary
him—but it does not
for
in
the way in which he has
Section.
that the Government will require—I have not
stop to think
the
hesitation.
the point of view of the nation.
System from
we
from
need have any
clearly
Mr.
correct,
the question of joining the Federal
But what I wanted to talk about was
Chicago Savings Bank & Trust Co.—I think
Section, in the first place, we ought to have
in
paper
that on
so
Tbter, Chicago:
the benefit of our
Now, I think I would
Attorney-General,
due season;
'
time.
rather
it
further discussion, gentlemen ?
should receive attention
question
company.
letter from them to this effect—
a
the case of the
by
this
any
important
this
that
there
Is
McCartbr :
seem
Lucius
that for
stated—I do not know
regulations accordingly ki
their
alter
would
With respect to the
system.
good
join'this
11-K which provides for the is¬
I
companies of
trust
Here we will meet your
that we can convert our assets to meet our
believe there will he no doubt but that all the
Pennsylvania, and probably the United States will
liabilities,
demand
to their trust
Act to State members—that of the counsel
Reserve Board or that of the Attorney-General—I can
Federal
the
answer
down
demafd," and when
to me "You can place that
say
system is so amended
the
cover
application of the Clayton
that it has been published,
System would
Reserve
week or next month.
which opinion should, govern.
He also suggested
as
Federal
laws of the State of their incorporation.
incompatible with state
though, secured as they are, should also
mortgages,
next
aware,
that exercise fiduciary functions,
of rules to national banks
my
and think I know
am
issued any
not
rules under Section
They have issued
suance
no-t
this subject,
and I can
they never have contemplated
I
as
members of the system with respect
are
functions.
company
on
far
so
that I could go Into this
Reserve System. Here I can place
rely that I will have currency to meet
of the liabilities upon'me.
What do I mean by that?
1
kind of big insurance feature,
and look to the Federal
be
secured; it Is safe, and
liquidates itself In less
years, and I would consider that class of security just as gllt^
the most fine commercial paper in the world, providing the
than ten
edge
banks;
member
a
I would
figure In my resources.
would see the forming of the Federal Reserve
the same basis as commerciad paper.
It is
community is liquidated.
Every mortgage
my
That is limited
Now, as to the question of uniformity of rules for operating the truBt
functions
as
that
mean
op
banks.
member
the
to
large
have very little amount of paper that we can
to get cash.
In one week's time we
that it cuts no
good assets
my
the demand
by
other bond issues; but they are ridt entitled
the Liberty Loan issues, or
still
up
They
raised
funds
that a
campaign
a
the time when I
for
System
amend¬
new
Government deposits,
receive
to
quite
not
the
under
its
its banking,
hope lies
of emergency,
case
have
quantity,
negligible
look
the
movement,
Banks
receive
to
the System;
position, where it is
than
rather
the
a large body
whereby you propose to reduce the de¬
to hand over to the Liberty Loan.
Have you thought what a reduction in those meant?
Have you thought
Of the possibilities arising out of the reduction and what provision is
there for the conversion of our assets, that we might meet the demand
of the liabilities?
The amount of paper is so restricted, and is of euchto
-
Blair
Mr.
banks.
entitled
are
trust
weak spot,
a
Government obliga¬
States
if they joined
to
situation.
national
One
the
leaves
United
on
be entitled
would
judgment
my
based
loans
they
way
trust company we do not do
a
rather more on
that
posits of banks and trust companies,
Of course it brings the
and not entitled to re-discount its commercial
outside the system,
in
which do come to the members of the Bank.
our resources may be tied up in mort¬
We may
in
over
going
are
but it still leaves the trust com¬
gold into the Federal Reserve System,
pany
be
I cannot agree with that.
joined the system.
the
amendment,
new
as
but
ie
of regret that
matter
a
loans.
gage
the gold reserve deposited with
the
under
is
it
of state banks, all through the
large amount of paper eligible for re-discount, and
will have a
get the advantages
It
»
mind:
power,
and
trust companies,
country
while not very important, which
trust
its
privileges,
of a greater share of the profit,
chance
a
public good; but that
give* the individual, and
promoting the
in
good sometimes
public
the public good.
on
After all, corporations are
Is incidental, hut in this matter there
of patriotism that comes to every Individual and
thought in my
one
would make some
patriotism
the
from
is
body of
topic.
He said that
might.
I
Federal
have
I was
the very
because from
that It might become a member
recognize in that not bo much the
so
I
corporation,
the
commercial
Blair's remarks, I would like to offer one or two
respect to Mr.
comments,
the
the
to
the word
used
clearly, that the six per cent, dividend Is cumu¬
lative, and that fact is perhaps one,
has
I
me.
every
comes
There
company
corporation,
promotes
sometimes
One other point in Mr. Jones' remarks he
place.
wrong
Excuse
sir.
correct,
are
Jones,
but the duty of profit.
kind
certain
a
officers.
our
J.
might see the audience and
Mr.
of
System.
Reserve
for profit,
organized
officers.
to
trust
my
Federal
the
duty of patriotism,
resolution,
but they can make loans only to directors and
cannot
the talk
the national body at Washington
time when
some
provision " for
later meeting.
a
pardon,—not
Mahanoy
organization of the Federal Reserve Act, I was inclined to look forward
'
They can allow interest on balances to officers, directors,
:
employes and attorneys,
attorneys.
I
of
To me it is a vitally Important subject.
in
interested
which
Jones:
Breckinridge
Co.,
Banking Trust
that I
of coming forward
comes
Mr.
Will you he good
1
Merchants
the
of
you
loans to officers and attorneys,
subsequently reported and ratified at
are
be
with reference to the
Mr. Chairman.—It is very kind of you to give me the
five minute talk.
intensely
the Board would authorize under
Reserve Act,
Guinan,
Guinan:
privilege
my
I
the
upon
Jones'
and we must finish
Does any gentleman in the
ask any question
heard or
be
to
afternoon.
this
of the program
desire
F.
F.
D.
They have done that so that now under Section
resolution.
may
Before making the remarks
bring out
to five minutes'
City, Pa.
great
a
most
ask each, member who
I will
confine himself strictly
to
behalf of the
in
you
District:
it
esteem
speak for that bank and not for
to whether
as
Federal
the
to
I
way.
any
There
me.
that
and
by general
22
I
Mr.
of
doubt,
in
Second
Bank,
Section.—I
discussion of this
I hope that a large number of dele¬
enough to announce your name?
D.
J.
Mr,
Mr.
much obliged to you
very
a
which have been read on the general subject?
papers
OF. J.
are
the afternoon is progressing very rapidly,
part
audience
REMARKS
we
ready for
are
illuminating character.
an
this situation,
on
as
this
Curtis,
we
In the discussion, or ask questions which will
gates will join
and
they will take great pleasure in
Mr.
gentlemen,
fundamental question.
important
Second District.
Bank,
Now,
member
the members,
to
open
any
McCartbr:
Presidbnt
and
to you,
present
now
185
"
.
question,
Federal
situation, after which the discus¬
thrown
in
I
of
sides
of
New
the
someone,
or
much
who
of
the
will be
indulged
Curtis,
answering.
Curtis,
F.
both
on
counsel
the
us
statement
whole subject
be
ask
to
Mr.
short
a
with
have
York,
make
information
possible
and
Reserve
of
hope
fullest
invited
SECTION.
COMPANY
company
I
Some of them have found that it apparently will
think with thirty millions of deposits, figured
180
BANKERS'
they would lose about seventeen thousand dollars
I
come.
have been
told
limited
are
respect
trust
is not anything of the sort,
benefits.
companies
their
to
tain, proper
trust
liquid
thus doing,
These
trust
with respect
funds
they
for
reserves
companies
to
handling
kept
are
their
MoC-arter
subject, but I think that the members assembled here do not know it.
Is
:
there
but
deposits
the
mention
feel
John
I
to
position
that
say that
in
this
I do not
it
mrry
opinion,
my
I
go
not
those
doing
and
but
we
on
go
So
far
not
I
as
talk
or
that
should
stop where
way
trade
the past.
not
commercial
go on,
is by those of us who
think
bank
the
and
if we
here and
do have to set aside
there; and I
Mr.
knows
System.
would
Festus
His
be
not
business.
who
us
the
in
are
We
that
market,
had
and
this
of
one
it,
first
the
he
and
to
assures
a
commercial
trust business and
a
is
commercial
bank
banking business,
the
the better
for ourselves.
Let
us
,
those
of
us
who
In—and
come
company
will
think
will go in, but
we
not
in.,
come
I
I
I
feel
I
might
here
stand
it.
regret
in
Philadelphia we
sooner
have not quite reached
get there, after
away
very
am
little bit behind
a
my
do
-
H..C.
of
This
is
inasmuch
tered
and. say
We
I
represent
Federal
to
into
gone
the Act
of
and
we
but
after
fully
actuated
were
ondly,
We
must
here
by
all
war
this
gold
back to
pass
terest
the
that
rates
We had
thought
customers in
the
fold
than
whether
it
could
will
and
general
words
funds
win
the
the
the
we
they
President
how
he
when
better
Mr.
Jones
will
so
old
we
seen
sec¬
it."
best
the
gave
pur¬
the
will
did
be able
we
about
much
care
devised
be
could
do
more
the
were
the inside
on
than
of
our
business
can
It is
how by cooperation
should
is
pay,
McCarter:
Jersey Trust Company,
Jackson,
be
In
the
every
the
arms,
we
war
trust
company
the
System.
nor
the
I
individual
Now,
nor
may
equipment
the army
that
as
a
Mr.
am
Jackson,
much
on
currency
the
not
re¬
will
the tendency
System
he
use
can
to
if
..
of
it
safe
these wise
of
if he
that
system
we
the East,
there
no
cur¬
made.
safely
and
thirty-
guarded
learn
learn
from
forward
come
further
that
the pale
of
may
and
any
is
for
business
today
that
Mgh
an
fact
needs the money.
were
entirely outside
Is
to
on
the
basis
that
of
men
banking.
said
based
currency
unsafe
banking
illuminated
is
for
have
to
But
far.
basis
an
the
a
loans
that
them
in
apparently
are
the
I
as
So
have
discussion
Act
I
the
an
same
a
sometimes
incorporated
drive
paper.
That
home—it
assets,
but
was
was
an
or
the
Mr.
trust
asking
yon
.Jones
the
and
only
the
to
Reserve
company
or
force
conversion
currency
of
of
an
issue
issue
the
of
be
conversion
of
assets
converted
class
remark
not
which
and
this
decided advantage
certain
the
the
an
mean
Act—where the
might
a
assets,
upon
a
the
of
emergency,
formation
where
Issue
an
provisions
an
as
would be
receivable
the
for
that" during
panic and provided for
emergencies
about
emergency
was
relation
in
feature,
bills
that
It did not exactly
the Federal
in
than
a
remind
it
perpetuation,
point
insurance
otherwise
1913-14,
prevented
as
of
whatever
simply
mortgages.
or
are
remarks—
will
in
that
assets,
inclined to believe
my
intention
no
war.
bonds
am
I.
am
mortgages.
this
I
of
tenor
banking institution
mercial
upon
have
make
to
been
have
Pennsylvania:
there
acts
were
any
would
collateral
the
In
like
to go
a
been
hope,, however,
from
raising
was
I
bankers
The
on
Act—that
this
better
had
would
his
belonged
of
currency
assets
of
I
Vreeland-Aldrich
the
on
lie
or
three objections
or
supposed
on
stages
currency,
Vice-President
going to talk
This condition
I
mortgages—sell
two
McCarter:
of
I
the
rudiments
of
to
not
would
subject?
the
but
Reserve
that
currency
of
makes
have
Guinan:
early
them
whole,
State
a
If he does not come in,
Reserve
wanted
I
Guinan.
or
blooming soul."
Act—if
Reserve
currency,
njake
has
Act
has his
misunderstood
Mr.
a
Philadelphia.
I
this
use
makes
in
Federal
the sentiment of this body.
the
on
:
and
the
of currency
more
doing
reeeivershp
this
does
jurisdiction,
code' system
our
condition suited to the character
a
further and
go
interest.
President
country
for
in
should
McCarter
and
learn
Mn.
put across the Red
progresses
the close cooperation
every
Philadelphia:
that
the
not
but
the
not
think
I
as
a
that
If be.has any,
advocate
one
Reserve
If he
public's
has
I feel far one that in a measure we
method of going on alone.
You
will be called upon
a
of
all
statute
general
the
say
I
condition,
ascertain
he
should
old-fashioned
on
the
Wisest
on
matter of
a
of
under
the Federal
ardent
No
to .answer
years
and
System,
the
he
experience,
unwise and
were
consideration to the need
particular.
and
Federal
civilization.
of
of
care
whether
or
Board
Reserve
felt that if they
we
take
to
tl*e
and
We will be much safer within
not
that
business
bank
as
Federal
a
liquid
is
to
that
the
five
we
savings
how
discussion
currency.
want
with the high in¬
able to compete
in
and
and
trust
not liquid.
it
most
of
President
there.
could
we
we
I
undoubtedly
rehabilitation
'of
committing
and
like,
the
equity
of
and
get his assets
their
suggestion
and
Much
over.
the
law,
more
then
the
rency ;
is
will
my
the
administration
the
this withdrawal of deposits?
are
would like
why
war
a
courts
of
meet
In
does
of
what
that
and
We
one
I
days
reason
the
matter
about
to
that
he
bow
into- this country
that
is
it
State
talked
deposits,
Now,
we
can
all
State,
to be administered under the
of equity,
the
of
the
going
face
one
more¬
and
reserve
Guardian,
and
and
anything to do with that.'
keep
his
law,
continue
No
I
my
do
to
advantage.
Now,
customers;
for
or
incompetent
holds
nothing
■■■.
that;
deposits which
when
of
were
we
trust
company
liquid enough to meet the withdrawal of his deposits, so he had
ceive
be
is
the
Curator;
that
mortgages for the basis of currency.
to
" Where
us,
Kipling—" It
day.
and
not
his
has
or
says
provide
State
Administrator,
an
code
under
Guinan
Mr.
tell
money panics?
everlasting teamwork of
Mr.
facing and
poured
the conutry
and
banking
of
that
Act lias
general
under
and
cestui
that, I think,
Act
statutes of
the
an
administration
all
ease
indefinite,
admitted.
to our
encountered.
may not be
of
cooperation,
more
duty
our
jurisdiction
have
we
original
the
were
the
en¬
from the old American
over
Cross issue
into
yon
rise
to
Mr.
be some things where you are trustee, and you would
may
a
put
the
Reserve
expressly puts those matters
there
that
The trust
member.
or
*
have to face during its continuance*
are
we
promulgated, and
away
noticed all
we
prevail.over
services in this
have got
of
person,
under
issue
commercial
case
too
which
country from .whence it came, for
not, be remedied,
our
and
Congress,
will have to face when
we
outside; and lastly,
for
first,
regulations of the Federal
been
had
enacted
before
has been
without
was
rulings and
in
application and
what
or
brought to
was
our
that
that
general
a
has
duty
my
be
is not
the amendments
were
our
never
and this country
poses;
t
that
and
pass,
will last,
tell what
one can
recently
is
Nation.
admit
long this
no
it
arbitrary
introduced
motives;
our
conditions
too
were
was
today
two
financial
of
every
hands
Law.
court
action, with the rest of the trust companies,
bill
to
was
duty to
our
feel that
but
perfectly satisfied and glad that
company
longer, filed
no
companies that
I
it.
debtor
of
suggestion
any
a
expressly
and
powers,
neary
cases
puts
and
the floor;
remember.
thht
was
Guardian,
or
Reserve- Act
statutory
insane
been
Executor,
as
not
,
Inaugurated, to the effect that the provisions for the
recent
it
convention,
to
position that other trust companies did
until final
the
explained
hesitated
national
few
a
that of trustee and
was
Federal
the
the
in
an
Now,
but we will
-
the
trust
a
that
the
System,
are
we
took
waited
assured
of
one
the
at
which
say
has nothing to do with its relations to these
of
State
I am for the Federal
about getting on
System.
first
was
timidity
Reserve
that
yon
the
naturally
admission
attendance
have some
as
the
first
my
I
to
recognize
to
The burden of his. argument on
Federal
and
which
becomd
would
because
relations
these
We
Robinson, Vice-President Guardian Savings & Trust Co., Cleve¬
:
consequently
will
you
ready
which
customer,
nowhere
has
member
a
as
the
fund
Reserve System.
land
the discussion,
perfectly
am
trustee,
trustee
a
but
^noet of the others have gone In.
like to have the privilege,
opens
five-minute roll,
I
its
of
that
ground,
statutes
not
times.
and
There
as
my
over,
to say
sorry
the
to the Federal Reserve System,
up
that
I
and
in
the
with
quite sure that those who do go in will
am
are
knowing
However,
outstrip the companies that do not go In, and I
that
Coming
to
quite sure that
am
further discussion?
any
would
I
who
A
Jones:
bank
a
trust.
charter
those frozen credits, and I
there
Is
one
McCarter:
trust funds at all.
and
•
get away from
of
que
get into the Federal Reserve System the better for this country and
we
to
closing.
company
bank
a
in
creditor,
he
act,
sir.
accorded
usually
tions
the
that
of
part
privileges,
Blair's argument was all on the question of the difference of the rela¬
room
In
go
me
Yes,
McCarter:
Breckinridge
country
our
doing a
that were
the re-discounting
of
quote Mr. Curtis correctly.
I
President
I
Curtis took the stand
Mr.
yes.
outside
being
that
'
far,
so
who were doing
companies
but
Breckinridge Jones :
words
would not that help
still outside of one of the main advantages of the system.
President
is
the
on
patriotic enough
were
other Notes,
any
or
Just
McCarter:
Curtis:
Mr.
Federal
the
that nearly everybody In this
in
think
cannot
thought of,
or
something to
owe
and he does
that
remember
ns
world.
leave
'
trust
were
Mr.
It is the broadest and greatest
ever
was
been
I
if the trust companies
Now,
Reserve Notes,
work,
they
the
will
gold over to the Federal Reserve Bank and receive from
.
the
their
factor
great
a
1
New York spoke about the duty of
that they could increase their earning capacity two
arid
gold,
their
President
the "advantages
which
each
companies, and that it was patriotic to join. the System now.
•
that
little feeling about certain control
sure
who
has
anywhere else,
Let
those of
Wade,
I
feeling as I do about the
are
we
some
quite
am
J.
institution
into
must go
be
reprint
a
number of copies of those?
a
of
dozen
a
gentleman from
A
:
Federal
out?
small
Have you
have
I
half times.
a
turn
to
must
narrow,
and also
principal reason he gave was that it would give them enough gold,
and
I feel confident that the only
discounts
open
country has
ought to bear in mind lhat
we
even
this
system
We
will
financial
and
Frees
more
or
are
must be in¬
we
local,
to hold
be able
We must go on, and
acceptances,
be
acceptances
and
Reserve System is the best place for us.
national
not
System,
''
the trust
The
just as
war,
McCabtee:
Curtis :
Mr.
Reserve
by itself, and
the
I
experiences written by those who have joined, including Mr.
President
them
after
that
say
If any members present would care to see them I have them
that
institution
to
original paper, and also a copy of the Attorney-General's recent
XlR.
paper.
every
simply
It is
word?
one
companies joining the
trust
and
state
have
table.
.•
trust business,
a
the
'
to
spend our energies
must be found
must
in
been
The
the
Federal
and
think
are.
we
can
we
trade
in
ought
Federal
with
here,
national
a
you
companies
going to find that
are
we
have
we
market.
or
the
further
opinion.
and I rather fancy
the
had better
basis, but
cannot and
We
as
patriotic
a
will drop behind
we
we
on
bankers.
discount
it,
patriotism
standing here,
am
from
business
I
the
Jones'
question about it.
any
before
continue
please
you
copies of the Board's regulations on the subject of
here
me
of various
say
this about
say
business,
are some,
we
concerned,
Its
to
ba'nking nations
in
is
York
here
ternational
bank
There
to
getting what I call frozen credits that
year
itself.
to
of these trust
many
banking
a
like
State institution
a
advantage
no
do
Blair
simple commercial bank act
liquid field of commercial
more
action
would
I hold official
Mr.
as
with
I
May
Curtis:
F.
have
know, because I do not
There is not
kDow
get
us
by
New
as
decide its
open
of
year
going into the
sure
would
most
I
commercial
liquid and never paid off; and
never
am
"are
you
the
banking business.
a
companies
System,
may
pure and
a
Philadelphia:
individual.
an
cautious
all
hand; but
far—I do not
so
as
as
you
the Federal Reserve System.
will
are
in
are
as
It is
whether
and
you
just
am
my
Reserve Act:
institution/ if
be in
and
the Section,
the palm of
in
the Federal
in
I am just speaking
section,
bind
to
committee of this
discussion, gentlemen?
J.
II.,Mason, Vice-President Commercial Trust Co.,
want
Will
McCabtee:
President
ject, gentlemen?
\
appeared
that
of
one
by reason of amend¬
had by a
was
leadership,
able
your
that perhaps
the trust companies
System
Board.
Reserve
the sub¬
Federal Reserve
the
regulations of the Board,
under
section
that
System.
of
going into
and
ments
main¬
they
wedges that made it possible for
opening
consider
with
and
and
further discussion
any
I
trusts,
Reserve
Hence, it might be wise to say, if I may say it,
that they are
that
separate,
banking
they should belong to the Federal
President
in interest in¬
year
by their officers after sixty days of operation,
that they are finding that it
already finding other
a
CONVENTION.
of
I
currency
into
com¬
wanted
based
the mortgages
or
the
of
assets
could
meet
to
I
such
of
issue
the
McCarter
like
to
balance of
tbe
use
positions
thirty
my
there
further discussion
any
taking
this sub¬
on
to
the
of
your
Broadway Savings & Trust Co.,
great
a
their
to build
We
country.
of the smaller institutions,
many
working people
like
would
homes.
join
to
They
ten
We
have
months,
live
that
then
you
workingraen
the
same
time
President
I
me.
of
should
have
forget
you
McCarter:
think
he
is
there
in
us
The
which
but at
He said his name was Slack.
Ohair
The
recognize
will
are
Mr.
Kemper,
Kemper:
whether
Mr.
the
they
I
Curtis:
to
I
commiting
Mr.
afraid,
has
Chairman,
because
question,
Board
and
gentlemen
somebody
I
ask
the
and
floor,
I
and
that
the
against
be
to
seems
McCarter:
A
prudent
to
*
it
is one
not
what
is
this
Gentlemen,
would
I
like
to offer
'•
tion
' '
Resolved that
I
want
I
glad
very
am
tbe
which
Chair
delegates
shall
tee
mittee
select
of
the
the
but
not
did
in
ample
time
Chair
The
is
in
order
that
always
did
will
William
do
of
will
of
morrow's
this
have
to
in
adjustments
be
ready
the
after
the
at
to¬
"War Time
Re¬
together
make
to
following
Forces"
Clerical
him
of
II.
.
the
report
a
READJUSTMENTS
be necessary,
may
I
but
they
We
as
our
than
and that
into,
went
while, generally wrote
Newark,
think
I
anywhere
or
tellers
seven
them,
and
laid down
we
21st
the
floor;
is that
they
which Is
are
not
be good-looking,
must
our
have
important
very
a
tellers
in
we
now
must
and
considerably
up
the
on
only
have
therefore,
(applause).
I want to ask tbe gentleman one question.
would
like
The
:
We
how
know
to
tellers
girl
the men.
as
is
topic:
the
order.
in
now
J|ackson:
A.
II would
matter
Is
THE
IN
FORCES.
CLERICAL
salary
have had them
he
long
a
them
treats
on
the
in
our
receive
company
exactly
:
to the draft,
due
of
employes
enlisted
from
if it
with
I
report that
would
the
institution,
clerks,
or
is
their
government
companies,
pay
or
on
the
and
what
considered,
and
take cure of
receive the dif¬
had been
they
pay
basis
and
but bow the
to
into the army—whether they
they
are
re-"
operating
lie brought out, as to local conditions/
can
In
McCarter:
own
my
we
company,
that question
If an Individual
liability behind him at
the front without any
has gone to
treat
rule whatsoever.
individual, establishing no
man
young
substitutes
women
gone
their
between
it might be of interest,
think
net one individual
in different parts of the country
have
who
President, I
from
to
being done
men
upon,
Mr.
to know
like
of
ference
^McCarteic: To show you to what extent the readjustment
forces
of
more
and at the same time,
pay
things
the
of
the woman question.
on
Mason
pay
President
of
most
salary?
ceiving
President
for
assembly
organization
that
anything
had
we
five
there
tbe
on
treatment
what
the
TIME
WAR
of
gone
bank.
same
A.
his' Committee
get
and
on
having
City.
Kansas
McNeil.
session,
now
Baltimore.
MoLnons,
L.
discussion
general
have
tbe
in
John
the
Baltimore.
of
are
Chairman,
with
agree
question
committee consideration.
new
of
and
the work
and our bookkeeping
that
away
They receive and
and one
Mr.
there,
-In. having them
bookkeepers
deposits
time
meeting.
brief
A
Grape,
Chambers
Mr.
ask
of the
I
this
an
women.
young
Philadelphia,
in
took
war
\ F. T. Harlan, Maryland:
little
tomorrow,
Committee may
The
successful
the
and
Judge John Stiles, Louisville.
S.
John
I
It is a
until
over
Nominating
Chambers,
II.
lion.
W.
that
the following gentlemen:
appoint
M.
leave
Jackson
we -are
found
not
behalf
on
that
larger bookkeeping force,
consisted
department
so
are
girl tellers.
our
the resolution.
heard
the
give the question
to
adjournment
have
You
:
We ordinarily
We
ability,
.
Mr.
been,
has
formerly by men.
burden
have
and all that sort of tiling,
hand,
ground floor,
hack
report
to
rapidly
besides
Mr.
say
Company form
we
they
and
men
I
May
our
but
but always had a
bookkeeping
rule.
Com¬
Executive
the
Committee
action."
its
McCarter
said
in
imminent
an
say
as
to
that
statement work
(laughter),
young
rather unusual.
Nominating. Commit¬
the
members j>i
1920,
five
the
writing from
in
names
names
as
ending
ordinary.
reason
said
from
persons
term
Convention for
President
out
fiye
the
for
tbe
to
and
receive
shall
committee
present,
to
been
experience has
and
Philadelphia:
We
force
institution,
Nominating Committee of Five be appointed by
a
doing
are
only
for
getting
are
we
by twenty-six young women only, and I think is better than any
run
else.
'
,.
.
"
who
the effect
being better done than it was
did
were
Gentlemen,
last
poor
other
resolu¬
following
the
full-
lines
develop very
what
after having old men like myself in it after a
is
Kemper:
Mr.
a
member
other,
and
en-.
I repre¬
the
you
not
will
which
some
doing,
hope of
employ,
our
along
gentlemen,
knowing
in
the
established
in
service
Now,
because
are
all
in
a
Committee Appointed
Nominating
,1
business.
our
in
and
advice,
women
Will
they
our
Mason,
bookkeeping
'
■
if
that that
that the company
it
■
as
dare say,
illuminating.
announce
valuable
other
lines and
they ought to do,
of the'government.
representative
(I ji ughter.)
fifty
and
country,
stated,
is
more?
President
employes
tbe rules here.
President
H.
minute
a
has
by women
John
phase of
to -that
that
here
bookkeeping
done
like
this situation,
Pittsburgh:
Edwards,
along
the
whether
in
help
chief
(laughter).
the
of the
President
not in a posi¬
am
know
not
are
so,
that we
fill
I
arose.
do
to
they can
they are combating and meeting the situation?
ladles
undertook the answer that I might
something,
to
that
do
consideration
given
ever
afraid if I
am
the
on
We
degree.
continuing
extremely
Jackson's
some
progresses:
the
considered it from that viewpoint?
have ever
am
Reserve
question,
those
of
one
that
answer
Federal
be
Put
great
a
that
occasion
our
be
would
on
Mr.
describe, what
how
I
:
question,, but
war
Mr.
Mr,
tion
the
and
speak.
them
any
would let us bear from some of our mem¬
efficient
to
one
to
desires
who
in
clerical
and
disturbance in the beginning of the
a
might
inspected
are
parts
Jackson
in¬
real
some
up
until this
you
It
discission
most
pressing
as
getting
We
if
followed
helpful
different
and
„
discussion?
are
we
places
are
become
must
McCarter
some
they
very
sound like home to
remarks
February
women
tellers,
for going from gravity for the moment,
she
also
rendering
are
efforts.
your
thousand
in
and
there
for,
harem—having
fledged
loaning to
by
them
experiences,
has
sent
and
prevent us,
of
now
couraglng
the country working
over
only you
and
their
President
or
lie liquidates in
assets—why,
gentleman's
Improperly named.
further
any
here.
terest
liquid
six
for
pay?
teu years,
to join,
more
(Laughter.)
Is
in
that time in
at
two
receiving
solution
women,
that
think, Mr. Chairman,
bers
col¬
as
business and liquid assets to you,
produce
we
workingman
the
liquidating
thousands of hanks all
are
we
the
where
system
a
forthwith
will forgive me
fort,
but we would like
up
not
the
be
of
We find
think
by
and
history of the world—we have always turned to you thereafter for com¬
this System where we
those funds
put
and
and we would like
Act,
say
funds,
instead
and
-there
years;
under
of emergency, some provision in
case
immediate
lateral.
number
a
men
go.
paying
lovely creature who created such
ani
I
System.
to
seems
you
money
the backbone
are
sympathy with the remarks of these gentlemen,
have,
in
who loan
the Reserve
to
use
on
clerks
those
supplanted
kinds.
that
did
think
I
Cleveland:
in
could
think
and
been
positions,
our
Slack,
represent
of all
I
clerks,
bad
war
official
Guinan.
Is
thousand
the
position,
would
:
four
some
duriug
liability.
Jones:
for
otherwise, by which you
or
gentlemen?
Peter J.
I
held
be
currency
emergency
apologize to Mr.
President
ject,
was
demand
your
I tit eck inridge
seconds
might
institution
any
credit", whether it
187
SECTION.
COMPANY
TRUST
'
is
there
its
trust
one
office
to
that
hoy,
has
Federal
places of our
if
in
so,
A.
A.
at
us
Ga.,
the
which
I
In the
body
far,
affected
are
I
fected.
nected
into
the
course
us
to
under
business
who
of
the
If
you
in
all
lot,
in
of
time
as
go,
do
of
to
few
I
appreciated?
do
the
beginning,
might
take men
conscience,
say.
over
if
trying to hold
meeting
if
in
these
the
tlie
and
It
has
places.
not
are
of
They
those
If
who
how
I
we
very
they
comes
rememlier
Sir
it
Edmund
merce,
the
was
question
told
Walker,
they
those
the
of
have
us
who
president
of
before
went
the
them
to
the
in
for
hard
men
with
The
man
valuable
have
Canada.
Bank
to
be
of
salary, that is our way
to hear from any other members.
helpful,
gentlemen,
because
they
are
&
Trust
Savings
Bank,
Evansvllle,
banks in the city are
girls, even liefore the
Chicago Savings Bank & Trust Co.:
Teteb,
the time an officer of
but being at
bank,
Ind,:
war.
With
We put
regard to
the Chamlier of Com¬
I participated In a good deal of the discussion on the
of Chicago,
which I think, Mr. Chairman,
question of pay,
is a tremendously im¬
give on that
portant one.
It seems to me the best contribution I can
matter
is that it is very much better not to establish a definite
to-day
it
and
to
seems
the plan outlined by our ..Chairman, because each
in our observation, Should be considered on its
getting
is
lie
Mr.
Blank:
Mb.
Teter:
our
us,
For instance,
'merits.
is
system
a
Does
we
and
had
one
he give
one
that excess to the company In your case?
thing we do;
when
you
in
have u pension system
in
We pay botli
pension fund, while the men are in the service; our pension
The employes contribute tbe same
does. Immediately a man comes into
joint contributing one.
a
service,
we
we
figure on
assume
making
both sides of the pension
up
the difference,
fund and In
but I do believe that
mistake, as I fear my friend from Evansville is
make a definite program, and of course, it goes
saying, that we do not promise how long it will last, but we
would
doing
without
we
thing that is uniform.
have one
we
percentage that the trust company
main
chap who is a captain in the service,
larger salary than be did with us.
There is
institution
sides of the
the
Com¬
attempting to
thought, I not only had to Study the question with reference to
last
merce
I
As
said to us that he had in his different branches all over Canada
Lucius
Government
convention,
Canadian
ouly
the same salary basis as the men.
case
trained, but men who are more advanced are of course slower.
Then
largest national
standard," but follow
they are young enough
age,
the
of
could ill afford to lose.
draft
am
half-pay, and two of
doing the same thing.
We
in
we
men
the
into your company.
I
boys who have gone to the front on
put our
but
young
most
lost
came
familiar
gone.
is the
inquire
right.
be gl/id
very
American
.Sontag,
33%
call,
take
have
are
We
the
con¬
am
have
about
first
been
and I would
discussions
Mr.
our
af-"
position of
problems that we are meeting every day.
go
are
draft
the
you
all
the amount of his preseqt
the Government and
they
to
care
although
were
the draft age,
near
that
sufficiently
is
on
drafted.
a
If a man has dependents upon him, we make
almost half of our employes
sections
now
the
guarantee of
the
between the Governmental amount he receives from
good the difference
handling it,
to
mean
That
discussion.
up your
These
not
have
let
are
think
bave
under
on.
their
they
we
gone
moves
I
did
McCarter:
President
except
us,
return.
I
them
you
before
his
upon
Jackson:
them
country,
company
and
war,
our
rank
A.
.open
from
gets' nothing
he
A.
to let every¬
have
here,
your
on
to
They
not.
or
the
work
are
with all of
of
and who volunteered,
they
course
of
have
fill
to
of
parts
men,
and
it
where we
them
of
confronted
found
patriotic enough
calculation,
course
I
companies
trust
our
very
to
the
we
being substituted;
condition
since
matter
a
lie
various
beginning
age,
methods
went
hold
mental
a
the
8%
what
draft
to
Philadelphia,
in
say,
in
will
others
less
or
the situation
to
the
made
of whom'
know
the
the
volunteering of our men,
represent, and,
desire
from
how
and
about
effect,
the
best
this
suppose
the
situation
sort of experience
know
would
with—1
draft,
a
us
volunteering
by
more
our
wish
we
to be
let
to
the
that I
have to meet
we
This ought
so
against
I
by
.war,
about
company
whether
go,
of
fill
to
all,
equal
of
President:
Mr.
it became
together,
Now,
go.
be
work
members
doing
we
Jackson:
thinking
dare say,
people
are
Are woman
their
can
close
to
should think that
I
the
even
What
had
has
from president down
Now,
satisfy
York.
the war?
to
go
beginning of the
been
program.
us.
A.
(laughter).
would
New
departments
Jackdon:
have
of
who
men
A.
which
Board
what
recognize
drafted
been
patriotism
was
Second
I
Atlanta,
in
company
doors, because every single member of its staff,
make
trying
a
to
188
do
BANKERS'
expect
to
Instance,
tbe
get
substitute
except
that
taking
over
it.
They
the work of
they
We
if
will
you
will
you
keep the
find
York
Trust
matter
McCabthb
Pkhsident
Companies tell
individually is,
Companies
with
reference
the
to
who
Mr.
to the
tbe
not,
since
draft
riot
dependent
know,
may
to
far as
as
time,
having
this
Do
what
not
Do you
completed.
that each
or
we
I
treating
are
and probably
Do
with
agree
whether
to
as
alike.
all
I
think
Is
Bankers
Some
ment,
we
has
them
know
of
do
not
not,
give them
we will
take
receive payment from
the
Trust
Companies.
Govern¬
the
After
the
in
If
next one.
TRUST
any
AND
LIBERTY
LOAN.
to describe some of the
can
Skobetaby
twelve
Mehshon:
questions
will
not.
replies
more
that
take
Gentlemen,
you
from
out
read
in,
we
have
the
totals
came
already
are
the
those, but
It does not show
cating).
Secretary just
briefly
as
as
he
most
went
time to
that
the
important features represented by this
He prepared the same.
compilation of tbe work.
we
will ask
I
:
office
this
in
of
familiar with
the
interesting chart
very
but
respect,
any
(indi¬
for the pur¬
Voice:
receive
Mb.
John
H.
Pehsident
have
President
information
number of
re¬
•
described
McCabteh
to
or
the
Do
:
bring
of
any
out
compilation which lias been
character
it
to
tbe
proceed.
"
,
chart
members
further
any
brought to
the
at
desire
discussion
in
length.
If not,
to
this
we
will
the
Secretary full
information
of the various corporations, and the
up
and
value
the
to
what shall
of
members
do trust
or
questions which,
to ohtuin
be of any interest
records in
I will
to
direction,
or
have
prepared
we
would
like to
ask the
series
a
read
to
of
you,
they would interest you,
see whether
in having
plan or that
a
by
to
as
82 per
and
Would
of
reception
full
the
office of
there
such
knowledge
tbe
John
Secretary
a
that
of
the
H.
We
is
Lave
Do
:
and
session of
to
reduce
If
will
we
that
there
is
no
will
have
section
the
amount
be
the
of
that
would
by
worked
incoming
when
desired,
litigation
the
stop
not
will
only
full
a
promptly
objection,
difficulties.
be
Mr.
I
held
10
at
like
would
generally
known
o'clock
to
the
as
tomorrow
hope every lady who has been
herself
come
10
is
-
attendance,
at
trying to be of service
are
we
own
which
and
will
but
bring
it is every
others,
important
we
o'clock.
Mason's
motion
is
in
now
order,
that
'
adjourn.
5:20 P.
to
the
companies
members,
to
prior
State it is
will
officers
we
wills
there is
see
trust
plan
a
the
course,
our
session
Institution
tbe
afternoon
that
begin
and
by
tbe
possible,
readily
read
some
which
one
docket
to
to
however,
have
New York
the
can
wills,
think
you
Well, of
and
morning
tbis
In
on
We
oldest
What would become of the eminent counsel?
that
business
that,
also
and
if
test
brought
morning in the Park Avenue Hall and I
here
feature
You
is
or
of
We
business—" Subjecting
is alive."
that
the
overcome.
Mason
82%?
simile
scientific
wills.
on
of
going to attempt
fac
a
interesting.
our
unscientific
be
will
you
order?
in
translation
a
desirable
a
that
Is
not
am
very
to
trouble
McCabter:
the
page,
I
furnishing information
can
short time
a
have only 5 minutes longer.
we
2548.
most
contests
and
the' Secretary's office
in
adjourn.
we
last
the
a
customers
our
report
we
Secretary to read them, please.
to
and
for
this
President
to
move
Not yet;
executive, committee
how
ttjen
cent- of all the litigation
drawn
the
wills—tbe
over
I
:
possession
our
bother,, labor
(At
(Explanation by
questionnaire
a
V-
which
relating
improperly
present them, and keeping the
us
up
members.-
the
to
with
the
.
mota attention to in
of
discussion
the make¬
how do you meet
We
late,
them, to
to you,
office.
our
too
not
upon
that
or
Ac.?
plan,
if it is
views
your
regard
of it is to be of service
purpose
companies have this kind of
plan—pension
a
in
constantly writing into tbe office—
who are
do In this direction
we
this condition,
kind
or
gentlemen, is to provide if possible In the
detailed
get
tbe 2200
objection
no
cannot.
original,
that
Mr.
of
if
time
.
is
on
administration,
The purpose of this matter,
labor to
a
in
of them, while the testator
use
of
•
.
Mason:
Into
come
out
'
EXHIBIT, EXPLANATION AND DISCUSSION OF QUESTIONNAIRE.
office
this
the questionnaires
to
as
will prepare such, and
B. C.
the
in
stated
further
any
regard
attention?
your
quite
not.)
there
year
because I
you,
here
the
of
If
executed
here
then
American
State
of anybody
information
geneiernen,
Will,
pay
Mershon
is
part
the
McCartek
here,
known
should
Mr.
the
greatly appreciated at
particularly
confidential
,
that
plies received.
be
get it out to
the
on
not;
it.
charts
are—the
of
particular.
It
to
giving
-
will
in
one
Certainly
think
laneous, and bring out the
items
It
McCabter:
absolutely
of making comparisons and deductions, it is exceedingly valuable;
for instance we gather under each State and subdivide the
National,
State Banks, Trust Companies, Savings Banks, Private
Banks, miscel¬
These
Convention
the
at
their views,
express
and
be
You
go
pose
total.
banking
your
;
-
City
Mebshon:
during tbe current
the
Association,
the result of the 8,000 and
as
in
customers
Association?
(A
McCabteh
President
to
-
*
:
.
objection
document
COMPANIES
•
company?
or
periodically
represented
character and
will
A.
•.
connection
represented at the Convention of your State Bankers
general and this
it
.
in
employes
your
box?"
department
statements
Company
Pbesidbnt
be
periodical?
the military or naval service?
of Company
this
course?
;
Secretary
of
or
Association?
Name
war
their Jobs.
in
assist
plans?
" suggestion
safe deposit
members will
Any further discussion along this subject?
the
up
they
from
back
McCabteh:
President
reached.
where
receive any
to
propose
I
been
such
other
or
branch offices do you maintain?
mail
your
Banking
examination?
suggestions or
any
a
a
many
you
Organ"
Association?
subject has been discussed in New York by most of the Trust Com¬
panies and a great many banks, and I have yet to learn that any
conclusion
of
dining-room?
a
Is your Company
the
definite
to¬
employes?
your
from
graduated
men
department?
on
whether he has any¬
them
cot»«
bettermeut
problems,
1
many
Have you
continuing
How
quite
for
system of medical
a
have
you
getting from
are
employes
your
daily
study?
Summer vacation
their
How
is concerned,
are
should be handled
case
to the front,
gone
make
you
Do
set rule yet,
no
have
Do
particularly
company
plan
"House
a
Have you any men
our
whereby
of
library?
a
maintain
what arrangements
matter,
publish
you
Do you
he
of
course
of your
any
you
with
less what they
been
all do,
you
him—we
upon
Have
New
the
feature
discussion
educational
any
similar
other
the
develops,
of
for
etc.?
you
Have
though we have not yet made any distinction
merits,
It
other
or
Are any of your employes taking the American Institute of
believe
and I
as
Have
on
they
but what is the practice of the
have established
we
and
if
Club
a
Do you maintain a pension fund or other welfare work?
follow.
representatives
they
as
to,
case
methods,
-
employe who has enlisted
body
each
to
the
reference
present
Tcter, and 1 think
its
an
far
as
President,
Mr.
:
up
the Government
shall
treat
Job
but I think
operators,
enlisted, and those who have been called,
them
pay
behind,
patriotic
you
periodically
gether
we
much,
very
staying
the
>
Flatten
Ma.
those
to
Have
for
and
They are doubling
gone.
plan
of
care
in
need
are
continuance of the salary or
they make.
to
and
one
us
York .Trust
front
great deal of Interest,
a
practical
if be does not
New
department,
tbe
to
not
who
machine
open
Will
:
do
we
have
as
of
one
is the most
It
fact,
bond
our
gone
doing part of
women
question of the salary is
In
Lave
fellows
those who
only
are
using
are
In
splendid
are
Now,
members
well.
very
tbey
feel
that.
do
back.,
men
half of our
over
cannot
CONVENTION.
A
M., adjourned until tomorrow,
10 A.
M.)
Secretary).
SECOND SESSION.
A
compilation of interest
and
value
all
to
members
aiming towards eloser cooperation between them
was
outlined
Bankers
4
The
briefly In the
of
this
the
and
Section,
Section
March issue of the Journal of the American
(The President
called
Association.
work
declaration
announced
was
of war,
to
begin
at
but
once,
on
account
of
the
arid the subsequent flotation of tbe Liberty Loan, It
The
I
Pbesident: :
have
Jersey, whom
Immediately following the Convention it
in
of
questions,
that
order
lines
the
indicated,
will
be
of
The questions
of
"
Secretary
as
value
shown herewith,
as
well
to
are
may
as
to all
begin
members
intensive
an
of
the
to
address
of the
it
is
tbe
believed
Section.
will
The
be
held
in
far
as
confidence,
Individual
as
companies
is
concerned
only total figures for the entire country and
sub-divisions thereof published,
certain
Ladies
entertained
great
1917.)
to order at
pleasure,
Lamont
I
have
cause
Gentlemen.—I
and
said
principal
your
by celebrated speakers,
Of
desire
no
time.
meeting,
with
stockholders
How
many
directors?
How
many
officers?
How
many
employes?
How
many
customers?
How
many
of your employes
are
stockholders?
Please
Do
name
your
What
is
tbe
What
is
the
Please
and
Section
and
discuss
to
I met
shall
it
Are
trust
departments of
trust
a
the
and
lo,
it
crisis
the
was
with
the
you
there
is
a
was
section
of
and
those
to
in
to
corporate trusts?
your
whose
Company
attention
specializing
should
be
in
directed
along these lines.
any
of your
company
officers
employes
prepared
to
speak
or
write
on
periodical meetings of
your
Bible
that
have
they can speak or write.
officers and department heads?
went
to
It in
(Laughter.)
fast
be
do
so
not
and
seen
the vernacular,
Besides
to
the
the Trust
it
Savings
Company
is
meeting
to
be
done; but.
even so it does
The thing to do
•
yon
.
fast—I did not
at the hotel, probably being overlooked by the
room
may
at the
way,
a
doubt
no
story to the effect that when
you
crisis, be¬
war
in
*
Association—and
when
be
entertain
morning.
job
go
cannot
do
that
I
as
known
upstairs to
face and go out on the boardwalk and
would
do
like
with
quote
the
of
exactness—but
hypocrites
men
your
that
room
do,
you
and
make
the work you have got
to
bring this Idea
a
fast; but,
wash
your
to do.
before
the
I
meet, and that is, that the principal thing you have to do now
the particular job.
But, remember it is not a lasting job, and
not solve all our problems; the big problems that face the bankers
is to do
does
subjects?
Please give names and subjects upon which
Do you have
put
men
or
Bible in my
long face, that it
individual trusts?
your
a
American
a
not -to
not
«
I
went
I
Mr.
President
was
tremendous
and
I
and
this
great big
J.):
in the State Bank Section's
duty;
there;
there also;
ahead and do the job.
says
here
therefore
make too much fuss about it, in my opinion.
reminded of
am
find
Company.
it
total of your
names
matters,
your
to go
I
business?
approximate
trust
is
N.
your
(Laughter.)
doing its full
was
us.
that
business
and I
that crisis yesterday
National Bank
the
course
not dp to
Company?
your
approximate total of
furnish
individual
items
the various
transact
hab
M.)
gentlemen,
Banks,
remember
"
many
and
great as it is it is being rather overworked,
as
present
Bank
How
10:15 A.
ladies
(Commissioner I of
for any great length of time.
section
QUESTIONNAIRE.
L.
afternoon
yesterday
designed to be.answered without reference to books
information
Geobge
President,
you
record, and several of them may be answered with simply "Yes " or
No."
Hon.
a
Section,
service along
which
compilations
prepare
member
every
the purpose
is
26th,
I have asked to say a word to
.
series
Sept.
the meeting
in
presenting Mr. George L. Lamont, Commissioner of Banks of the State
of New
postponed.
was
(Forenoon,
office,
and
we
trust
play
a
companies
game
are
of Chess,
those
we
to
come
when
this
war
is
over.
play it to checkmate the King,
When
and when
TRUST
that
w
accomplished
understanding
inated
the
"
from
great
we
the
tiie
world,
problems
and
then
way,
and
labor
made
has
to
over
work
entirely unproductive
to
us
be
to
problems
the
at
for
is
clear,
and
how
other
I
eliminated.
be
we
I
will
let
now
the
be altered
must
is
it
time
for some
of
the chess¬
do when
can
and not come to the task
'
return
The
next
the
to
duty
prosaic
more
/
•.
business
is
the
Executive
the
Committee, which will be presented by Mr. John W. Platten, Chairman
of
the
and
Committee,
Trust
and
President
also
of the
United
States
Mortgage
Company of New York.
entrusted
have
who
to
our
189
keepiug their
or
care
the institution
through
income from
the
upon
The
represent
we
greatest aggregation of capital
the
chief part.
They
public.
dollars
billion
seventeen
of which
of any
of
exchange
world.
The
They
of
supplies,
Company
Trust
time
speaking
section,
Country,
of
the
Trust
Companies
of
when
the
Trust
Companies
have not
motives
to
And let me say right here, Mr. President
of
the
this
there
of
never
was
a
wholesouled
foreward
come
patriotic
frank to say,
Trust Companies in
promote the general interest of this country and I am
President, that when an appeal is made to our
Mr.
Liberty
a
Red Cross
ijt the
Loan,
certificates
indebtedness,
of
movement,
will
you
find
the
in the placing of these
Trust Companies will
respond to the appeal in a manner second to none of the
of
stitutions
And
this
closer to
ability
to
report
the
to
amount
of
$8,600,
that
than was expended by the Section
more
1912, and today we have a large increase in the number of members,
in
and
activities
our
the
handled
the
for
to furnish
spared
The President:
mill
through the
To
meet
those
the
situation
war
This
the
attention
and
Platten
here that the Secretary's office is there
say
me
all the members, and no efforts will be
the activities which comprise the work of
one year.
Only those of us who have been
any
understand the great amount of
who
and
has
entirely reorganized,
been
Gentlemen,
receiving and recommending,
for
Platten
Mr.
the
I wish to point out.
onded.
should also give a vote of thanks to
work which he and his Committee
motion,
such,a
(Motion sec¬
President.
Mr.
I
is
have
carried; and,
unanimously
Mason's motion,
Mr.
heard
All in favor say
seconded.
duly
which
has
" aye "; opposed, " no."
The
Platten, you are thanked by
Mr.
There
seems
to. be so many things to come before the Convention this year
that the difficulty has been the selection of matters of interest from
a varied and extended assortment,
rather than in the manufacture of a
is
learn of
will
these
world
from
a
as
kind
I .therefore take
S.
of
to lead
Moses
us
out
of the
making me
the Moses.
have
set my
let
me
thank
the
chairman
for
I do not know that I will live up to what he
I have been given 10 minutes, and to expedite mat¬
remarks down and will read them.
President National
Association of Owners of Railroad Securities
Chairman and
our
preparations
war
if
we
could
turn
back the
hands of time
months, how grateful we would be.
It may not have been
possible to foresee what is now happening around us; every human
force at work preparing for our actual participation in the world's con¬
flict.
Yet had we then been as far ahead as now, German despotism
might be at
few
war
Is
end.
an
of
us
personal
have
realized
what preparedness has really meant.
every relation of life, social as
working great changes in
well as business.
in
We shall not go back to an era of great extravagance
living or in the indulgence of pleasures on
the lavish level
Business will be conducted on a broader
piane—the human plan of live and let live, of cooperation.
The best
that is In us comes now to the front to guide our actions and when the
war stops the result
will be felt In every walk of life.
We have now
been
taught preparedness not only for the war but as it affects our
of
expenditures of the past.
peaceful and personal pursuits.
—we
were
among
the
first
to
the other, throw¬
Bringing into one1 cooperating
and in turn cooperating with our
to the end that the war shall b«
executives can
differ very materially with many of them
of their desires and
here
am
last,
to-day,
banker,
a
Association which was organized in Baltimore on May
an
to
which
Discussion of these matters has no place here.
one of your body if you please, repre¬
for the future.
purposes
senting
23rd
the way to collectively take up and act on questions
arisen and others which will arise, affecting the owners of
prepare
have
railroads—the real owners bf the respective prop¬
the securities of the
voice in the management of the
which they have invested their money, I
At that meeting there were over five
representatives of owners of railroad securities.
the majority of whom have no
properties in the securities of
especially mean the bondholders.
hundred
owners,
or
dollars of
pilroad securities, bonds and stocks, were
The National Association of Owners
As President, and in behalf of that
Association, I have come here to ask you to cooperate with us by Join¬
ing this Association as individual members, and by having your Banks
and Trust Companies do likewise.
We are receiving support generally
throughout the country, especially from the great Life Insurance Com¬
Over three billion
represented, an unusual gathering.
of Railroad Securities was
panies.
-
million people,
Fifty
organized.
' "■
...
......,'y.■
nearly one-half of our population, are directly
' This ownership is divided
of railroad securities.
indirectly owners
or
follows:
numbering over 1,000,000, owning
By individuals outright,
$10,000,-
000,000.
By Life Insurance
Companies with 46,000,000 of
policies in force, held
representing a total of $1,550,000,000;
with 10,000,000 depositors, representing
by 33,000,000 persons,
Banks
Savings
000,000.
$847,-
,
Companies, Casualty aud Surety Com¬
$649,000,000.
associations, colleges, schools, charitable institutions,
representing a total of
panies,
By benevolent
$350,000,000.
etc.,
Let
In
held
Balance
State and National Banks, $865,000,000.
not enumerated, mostly abroad;
channels
read from
me
the last circular
of which was mailed to
"
The
of this Association is,
its membership, to do
vestments made in
Is
It
them.
powers
our
should
also
have
■
an
eye
And as we turn to help—to do our part
to
the
protection
hand, shall we undertake to answer for
times to exercise such rights and
at all
intention
ownership of railroad
belong to the
as
through its officers, its commit¬
whatever it properly can to protect in¬
We propose no controversy with
railroad securities.
railroads, nor, on the other
the
Companies of the country:
OUR PURPOSE.
purpose
tees and
Issued by the Association, a copy
the Banks and Trust
,
securities."
GENERAL SCOPE,
"
of those who may
include measures to be taken,
for the protection of those it repre¬
These can hardly be enumerated here because of the largeness
field to be covered.
Should it become necessary to take up
may
the
of
activities of the Association will
The
which
be deemed
necessary
the carriers questions which
managements to do so."
with
directly
closely concern them,
it
remains for the
the activities of the Association as follows:
By an educational campaign, to show the thirty-three million holders
of
life
insurance
policies that approximate twenty-five per cent, or
one-fourth, of the policies on their lives is secured by the securities
might, therefore, divide
I
of the carriers ; also to show that millions of other
in savings banks holders of stocks of finan¬
other institutions owning railroad securities are indirectly
in the value and stability of much securities; and to let the
(bonds aud stocks)
citizens
Gentlemen of the Convention:
eighteen
How
much
policy and in what I know to be some
matters of
in
sents.
First
Remarks of S. Davies Warfield,
The
depends
How
wilderness,
" S " which is doubtless " Sam¬
great pleasure in presenting Mr. S. Davies War-
Wabfield :
Davies
expects me to do.
In
peace.
war.
defend acts which in the past lmve disFurthermore, I have differed with many
in plans they have proposed .and acted
world.
railroad
in times past and I still
upon
though his name starts with an
field, of Baltimore.
Mr.
at
brief for railroad managements of the past
a
do I
nor
without
Warfield
ters I
holding
and who seem to be the only people out in the cold
protection.
(Laughter.)
We therefore look to
securities,
wide
Mb.
when
times of
the
the railroad executive officers
I thank you very much for the commendation.
Mr. Warfield.
We are most fortunate
in having Mr. Warfield this morning, and I have taken the liberty of
suspending the printed program for a few moments in order that we
may hear a few Words frpm Mr. Warfield on this subject which means
so much to
Savings Banks and Trust Companies who hold so many of
we
uel."
the
graced
of
learned and are familiar with the Association
recently formed, known as The National Association of Owners of Rail¬
road Securities, and the activities of Mr. S. Davles Warfield, of Balti¬
Mr.
here
present,
We have all
program.
even
the
By trust companies,
Platten:
more,
not
am
of
or
the Section.
Mb.
them,
Upon their ability
By Fire and Marine Insurance
You
President:
motion
upon
in
business.
accomplish it.
By
)
The
been
make
I
Mason:
we
year.
for labor
other
any
prosecuted to the limit lu so far as the ability of their
as
excellent
very
done during the past
Mb.
the interest shown by those
and
have heard the report of the Chairman of the Execu¬
It seems to me in addition to the formal motion of
you
Committee.
have
rendered by Mr.
I think it may be said that at no time
condition than now.
The
the Section been in better
present at this meeting indicates what
tive
work in¬
satisfactory work,
the office which have been
details of
to
during the past year.
have the affairs of
office
have
employed,
are
the hands of the
dependent
railroads
President and the Government
erties,
fully realize and appreciate the amount of work,
can
we
Chairmanship of the Executive Committee of this section
in the
volved
understand
all information obtainable.
Gentlemen, it is exceedingly difficult to put in cold
for
Association
this
can
you
before you
and place
type
let
of assisting
purpose
so
section ably.
of the
work
And in conclusion,
and
greater,
are
than
people
service in
this
becomes
important
and
the greatest business circulating
the
serve
Nation.
the
of
wealth
added
I
the
in
$8,600 is but $200
amount of
financial in¬
country.
referred
I
when
dollars
lines—their service—to expand their facilities,
extend their
the
more
value
single business enterprise
greater will be the prosperity of those so dependent.
great
(continuing) :
Platten
gentlemen
which
country, of which the railroads
those commodities and
for
money
come
their
greater
their
upon
outstanding in
are
system all the railroads of the country
[The report of the Executive Committee is printed on page 179.)
livelihood
the greatest users of money and of labor, the largest
are
purchasers of materials aud
medium
depend
Upwards of twenty billion
ing aside plans of competitive operation.
Mb.
of
respond—in formulating plans to cooperate one with
Report of the Executive Committee
and
meaus
them.
is invested in the common carriers of the
form
to
of
report
before you.
SECTION.
has been invested by us, as bankers, In securities which belong to others
the
»
opportunity to say these few words to you,
an
you
President:
and
other,
or
(Laughter.)
The
or
and those factories now
So
we
best do it,
can
■
glad to have had
am
then
democracy,
purpose
purpose,
unexpectedly.
and
for
way
some
particular
a
some
must
in
adjusted
begin to look ahead and plan what
board
present
our
solved;
be
may
safe
world
to
that it may be elim¬
so
war
having been solved, when that is out of the
making things
now
the
according
but
won,
then
making
of
America for Americans "
factories
is
game
trying to checkmate
are
COMPANY
cial
such as depositors
and
interested
public know from time to
time the good and bad of the
situation sur¬
rounding the carriers. -
supervision over such legislation as may
carriers, that the public and those owning their
By a
full knowledge
of the effect of such
be proposed for the
securities may have
legislation.
correcting any abuse or abuses which may arise in
attempted exploitation of carriers.
Our efforts cannot be successful unless we have the hearty cooperation
of those who own or represent the owners of railroad securities, and I
By assisting in
world or in any
the railroad
might
add
that
in
win
the
those who are interested
times of war we are
these
war,
for it has now
in securities generally. I know
cooperating in every direction to
become our fight.
President|Wilson has well said "Commercial activities should go on
usual so far as possible.
Indeed, I think they should be stimulated
as
in
every
legitimate way,"
/
i
•'
So we must look both ways.
It is for you
is
not
stockholders
would
insure your
Federal
the
be
protection
glad
Administrator
take
in
their
before
Hoover
and
has more
is
than
And
willingness
Hoover.
call
now
in
attention,
That
be it railroad
Association
our
ahead
and
"Not
only
cerned,
but
the
are
took
same
we
should
therefore,
issued
will
you
men
make
as
read the
the
Bankers'
Bankers'
ministrative
and
bodies
for
the
business
and
100
the
of
not
pursuits,
Chambers
dollars
in
the
of
the
Mr.
let
A lie
be
can
thirty-three
men
other
this
opinion,
and
of
Blank
I
:
next
which
will
and
in
of
Boards
and
now
their
will
largely
favor
pre¬
of
of
in
of
the
at
for
the
of
progress
in
has
the
them.
in
events
on
Mb.
will
me
thank
to
Warfield
limit—but
great
the
The
its
has
as
can
render
try
that
high
believe
the
companies
Equitable
paid
in
It will
Tub
President
his
vital
think
it
has
the
for
it
in
to
out
the
there
you.
individual
1
make
committee
you,
The
You
the
for
a
I
I
" Let
And
to
been
The
I will
at
this
of
On
this
that
behalf
is
a
your
the
Association,
;
by
not
Committee
the
Mr.
wish
to
me
to read
" Your
on
on
Legislation,
(Motion
made,
both
filed.
that
I
the
desire
the Executive Committee
to
recom¬
service
to
of
I
as
working out of the details of this
be
second
it,
banking.
the
I
am
members
tbe
cor¬
trust
a
interested
much
very
knows
mail
about
The
Trust
about.
almost—that is,
are
the
of
individual
Motion seconded.
have been
I
larger cities
them
get
of
the
the
iu
to
cooperate.
benefit
the public
It seems to
that
me
of
all, and the advertising will
companies.
The public as a rule
trust
that
uses
be
can
made of
supporting these resolutions.
have labored with
in
getting him
be
continued
McCarter:
ten
of
and
bhn,
In.
in
Office
the
work
and
of
I
now
labor
and
records,
or
active
take
in
you
only
that
one
he
nothing
has
to
service;
great
have
state
a
When
moment.
I
thust
com¬
•
and I
it
am
glad
our
Tbe result of the
If
power.
is
there
is
efforts
resolution
ho
objection
'
received.
so
that
of
V
;
year,
Association
I
have
satisfactory
that
Mr.
to
for
now
never
control
Mershon
has
appreciate
will
you
performed
our
182. ]
page
the
service
such
realize
the
to
Association
the
is
it
as
been
is
with
amouut
membership,
indeed
a
the
seen
bring the office which
itself
commend
and
on
served
and'during
years,
most
of
had
into
a
fortunate,
pleasure In bearing tribute ,to the effectiveness of Mr,
Mershon's
.
creased
favor
work during the past year,
and I promise, for him an. In*
activity and value to tbe membership the next year.
Those 'in
of
accepting
indicate.
Report.
Mr.
It
is
Mershon's
curried.
report
\Ve
and
will
ordering
now
read
filed
it
the
will
Treasurer's
■
making
those
reports
in
Committee
activities
President
McCarter:
Treasurer, gentlemen?
has
nothing
the
its
Report, by Leroy A. Mershon, Treasurer
[The Treasurer's financial
per¬
them.
Legislation, the report of which will include
that
Treasurer's
of
the
seconded
seconded
and
matter
that will be the order
practically
Legisla¬
by
20tb,
and
committee
at
McCarter, the Chairman of those
were
taken
over
carried.
We will
now
statement
What
It
shall
is
be
printed
doDe
is moved that it be
hear from
the
on
with
182.)
page
the
report
of
received and filed.
Nominating Committee
and
the
It
submitted,
Your
nominating
committee
•
II.
McCarter,
begs
leave
to
submit
the
following
and
NOMINATIONS
Chairman.
1917."
carried, that the report be received and
Is
that is
McLueas, Kansas City.
report:
Uzal
September
benefit
successful
Secretary's
Mr.
re¬
Respectfully
"Dated,
and
received
of
done for
be
years
us
far
so
to
except
that,
period
we
about-
1
!'.v
A"
"
••
publicity department.
anything about the
President
owner
" no."
the Committee
report of
prevents
(reading)
on
of
in
Report of the Secretary, by Leroy A. Mershon
remarks?
any
desires
Opposed,
moved
lie
[The Secretary's report will be found
the
Committee.
filed.)
to
State
there
Are
anyone
so
the Asso¬
the resolution you just passed.
next
Modesty
time
the
no
introduced
•' "i' i''t.
banking everybody
take pleasure
been
that
we
that
in
In
coun¬
to
the
and
very
were
Those
them,
When I gbt into the fcrust company in
suggestion to the other three trust companies there.
plug together and advertise and it will do us all
a
could
the
many
have
(Seconded.)
resolution
" aye."
say
the Special
ask the Secretary
Special Committee
of
of
bias,
Section
our
which
to
I
please
for
The
:
Secretary
him
The
"Warfield
due
been
which
law1.
President McCarter : The association desires to
egress its great
appreciation to Mr. MeDougaii, that during the last three
years he has
seen
the light and come within the fold.
(laughter).
I have known
will
thanked.
Committees.
so
protection
political
seconded.
which will be presented by Mr. Uzal H.
two
is
have
tbe
Publicity, by James M.
on
been
may
a
outside
us
I
can
know
,
Mr.
and
receive
efficient
very
little about
made
work
do not
great
dues
been
amendments
into
Special
should
181.]
has
Buffalo:
powers
very
said,
good
this association.
the
information
Warfield:
report
son,
of
niation.
heard
has
the
from
join
may
have
It
gentlemen,
President
and
the
conditions
enacted
the
of
Act
have
advertising
run
Commercial
years.
policy-holders,
to
'
^
ordering it to be tiled
heard
as
furnishing
McDouoall,
good."
the
the services
them
in
of
to
".'-S
ordered.
page
It
this report on commercial
knows
the
from
Reserve
the
of
been
of this report,
those, who
Buffalo,
ten-minute
The
grateful
very
for
history of the
affairs.
own
members
such
those in favor will
are
S. .-Davies
thank
association
additional
If not,
field,
Mr.
work
the
to
Company's
own
coming in.
value
the
matter
interest
our
absolutely free
of Atlanta.
any
motion?
and
in
ordered.
y.
.
Chairman
the
■_
just
thoughts
some
and
Mil
opportunity
the
year.
they
so
printed
feel
we
practicable they
President:
Woodruff,
this
of
Woodruff:
Tub
port
the result
in
three
subject bears to every one of our institutions.
order if we should pass a resolution
approving
securities,
be
may
the
so
(to the convention that this committee be retained In power,
in
greatest
you
one
is
or
is
with
have
report,
his
be
formation
recommend
tion,
existing
some
so
on
:
have
you
Association
prepare
the
support
Every
in
come
the first time
sent
remarks,
which
will
railroad
War
us
the
exceeded
not
of
The committee
have
is
is given
McCarter
as
panies.
extraordinary
$7,000;
as
be
have
$5,000,
Gentlemen,
interesting
relation
MR.
:
for
received
.
Federal
report and
It
porations
the
of
those who
thanking
in
country.
York
dues,
have'ever
I
most
the
of
New
eases
some
them.
they
members
and
circulars, which did not relate to their
Is
let
with
.
be
It
they
of appearing here.
getting
are
insurance
run
Chairman
me
given me—I
we
in
as
So
it
mend
issues-of
holders
part in protecting
our
report
the
to
about
signify.
which
that
say
Association will
the
that
plans.
(continuing):) Gentlemen,
insurance companies
of
order
future
this
that
filed.
180.]
■:
redound
time you have
of
duty of
placed on file.
it be
Federal Reserve Act, by John H.
page
which
adopting this
President
the value of the
on
heard the report of the
v
on
V;'!
•
report
to come plans
are
181.]
page
pleasure with it?
moved
that
.
Permit
1
also
all' business enterprises,
of
greatest
the
to
Pratt, Vice-President, Guaranty Trust Co., New York
advantage1 of those
bearing on
working out of such
which you have afforded
for
take
to
and
important
aggregation of securities and do
day,
him
1
and
been
and
harmonize
to
and
[This report
change, which I believe will be for the better, that is to
the
over
An
and
night
Protective Laws
have
you
'Report of Special Committee
will
on
is your
and
personal
and the business of railroads
cars
carriers
the
Mr.
Legislation, by
181.]
page
moment.
bringing
desired
ciation
\.
represent may be protected, and, through this Association,
we
take' part
come
found
important
an
of
I
and
work
v
on
on
be—
reference
efforts
potential
business
securities
the
methods. in
So, in the times which
have
1
thanks,
great
us
commend
p-
be received
It
McCarter:
in
attention
more
development of the railroads, far-reaching in
the
them.
by
be
for handling
will
the
watch
securities
now
will
way
securities
made
securities
to
for
which
outstanding
can
a
have proved efficient.
be considered
effect
be
but
employed
now
I
and
printed
What
the Association
report
President
In¬
the
representatives
in
it
move
McCarter:
of
Committee
The methods of today, both for the handling of railroad cars
by law,
the
served
Mason, Vice-President
reloading and in the movement of commodities urgently required at
any given point for any given purpose, as mdved today, are likely to
produce, perhaps not a return to the old plan of pooling as was per¬
niethods
with
realize
night,
than
more
1
forth.
railroads
the
and
Association
owners
on
for
mitted
at
are
subscriber.
accepted
He has
Gentlemen,
:
[This report appears
to
my
work
Special Committee
of
so,
people
committee Is
men
not return
the past.
be
few
thing.
Laws Committee.
thauks
The
:
far making
so
trade
investments
ante-bellum
to
this
of
McCarter
President
■
methods of competitive operation or to methods of regulation
former
Protective
this Association.
Commerce
of
and
report
including the five Vice-
for the purposes set
back
go
report
very
this
good
there
a
committees
by
Associations,
work;
organizing
of
to
[We publish this report
We have
V
Association
directed
men,
Companies'
collective
country
that
'A.'''
President
property rights.
of the
Committee,
Associations
of
billions
of
shall
we
Trust
the
move
But
here, and everyone is
con¬
vitally
are
will find every sphere of business activity
have
we-
purpose
the
railroads
A«
securities
Association, organized for mutual protection and ad¬
work;
opportunity
of
owners
and
Manufacturers'
the
the
sents
the
Advisory
you
the
the Asso¬
cent return.
per
Report of the Committee
by men of recognized ability in their several callings.
have.
Trade
(The
viz.:
duty to perform.
Committee, and the fifty
General Committee,
vestment
of
names
composing
will get out of
the
the committees of
up
Com¬
that
say
Uzal H. McCarter
the
whole
a
as
purposes
considered
when
composing the Executive
represented
of
by
collective action the most effective work
especially
composed of such
Presidents,
Hoover
.
through
accomplished,
would like to
yon
Report of Special Committee
drifting towards the point beyond which
than a personal
more
I
non-subscribers.
room
say
very
Special
#
that,
and
evidenced
is
month ago,
a
the people
asking attention to tbe aims and
that
Mr.
as
prepare
■■
■
to
given
does
Association.
the
non-subcribers ?
to
to it that
see
investors in railroad
fifty million
fast
will
we
possible to obtain due consideration for
public duty."
say
view
the,
circular
our
situation
a
be
not
We have,
We
he
I
:
to
has
of
report
actions.
our
investors generally and
concerned in
up the
like
read
we
twenty
a
Not
the
iu
Mai^on
MeCarter
Government
our
industrial, and
or
which
for
following extract from
If
Mb.
would
Hoover,
and
Not
:
the
of the few dividends
one
President:
high authority to correct existing evils in dealing with busi¬
dangers
will
will ask
later
and
Mason
commer¬
our
read
now
|
You will get
members
500
the
can prove
we
We say to Mr.
is
report
The
will
Before
President:
Mr.
For
I
:
Legislation.
on
ciation.
sacrifice of prop¬
a
public service of
for
with Mr.
agree
honesty of purpose shall control
me
other
of
patriotic and generous response ever been given a government
enterprise,
lu
Convention
coming from every class of business and professional endeavor?
we
those
ness
I
The
destruction.
and
We will surely drift to that rocky coast unless
soundness
You
is its drift toward socialism.
war
gigantic sacrifice of life the world is demanding
erty.
mittee
interest.
War
the
your
which
held in Atlantic City about ten days ago, said:
men,
cial institutions."
a
" preparedness,"
you
have
to
looming shadow of this
economic
it
and
buildings and vaults against eonfiagration
Food
American business
One
of
measure
a
Secretary
The
determine, whether membership for your institutions in this Associa¬
to
tion
"
CONVENTION.
BANKERS'
190
For
President,
Vice-President,
x.
Y.
Frank
John
W.
W.
Blair,
Pres.
Flatten,
Pres.
r
Union
U.
S.
Trust
Mortg.
Co.,
&
Detroit.
Trust
Co
TRUST
COMPANY
SECTION.
191
Members Executive Council—3 year term: John S. Drum, Pres. Sav¬
ings Union Bk. & Trust Co., San Francisco; Solomon A. Smith, Pres.
Secretary be carried
the
suggestion made by
Northern Trust Co., Chicago; W. L. Hemingway, Pres. Mercantile Trust
yet
means
Co., Chicago; Henry M. Campbell, Chrnl Bd. of Directors, Union Trust
Co., Detroit; Myron S. Hall, Pres. Buffalo Trust Co., Buffalo, N. Y.
have got to come to the council for
Respectfully submitted,
McLncas, Climn., Pres. Commerce Trust Co., Kansas City, Mo.
Judge John S. Stiles, Pres. Louisville Trust Co., Louisville, Ky.
W.
S.
John
M.
L.
H.
E.
McNeil, Pres.
Durango Trust Co.,
the
of
report
the
Gentlemen what is your
Nominating Committee?
received and carried out and that the
these gentlemen.
I
declare
call
the
ing,
roll
of
I
which
the
old
vice-presidents,
state
take
not
retiring officers
intimately
acquainted,
convention
as
that
who will
after
place
and
by
Well,
the
the
cepting
Secretary
dicate.
I
title
quish
the
should
who
office,
Mr.
been
the
of
to
with
such
members
I
think
had
have
quite
so
am
a
little fearful of the title of
All
those
committee,
of
I
the
and inasmuch
has
Mr.
ask
Blair
supply
than
of
for
Frank
W.
I
during
Blair took
feet
the
that
fair
a
next
011
and
you
there
has
been
proceeding I
I .will
to pin
want
I
luck.
me
upon
a
I
and
going
am
ou
it
pin
to
be
have
we
able
lot
a
of
business
do one-half as
can
satisfied
entirely
our
speech, because it
a
with
well
myself.
self-confessed belli¬
and
the pltonanent badge of his office-r-I do
gerent the retiring President,
think
guide
Blair,
wish you
conferred
because
on
I
get
cannot
feel
if I
pliment
have
I
connected,
presented
report to
received
ever
that
in
me
do not
yesterday
them thus
to
tion
President
Mr.
you
it
much, Mr.
very
of
out
from
body
a
and"
the
the Executive
most graceful com¬
which
with
I
have
been
friends,
personal
as
they
from
and I
ever seen
effect
known
badge of your office.
me
Platten
feel that to
I
please step
of studs
set
you
upon
should
we
the
coat
your
credit
give
for
a
W.
New
Flatten,
kind. expression,
very
I
York:
want
to
Mr.
President,
that
say
this
Section
gratulated upon the appointment or the election of
Blair.
Mr.
dent,
office,
the
than
to
I
In
the
deem it
a
you
Before
Vice-Presidents,
may
con¬
time
the
to
work
I
and
pledge my
Thank
say
more
We
offer
calling the
to
be of Interest to the members present.
the
Federal
which,
were
bers who
here
or
order
Reserve
Bank
distributed
tbe charts
other trust
interesting,
the
ou
Rernson, and I
quested,
Also we have received from
York,
they
supply
goodly
a
also available.
are
of blanks
Any mem¬
will they kindly leave their names either
company
Jones:
but cau
borne, unless we
be
men may
In
of
little
to
those
use
can" get facsimiles of them.
move
charts
to- us
here,
furnish them to every member that
They were prepared by Mr,
so
that this Section
Section
in
my
I would like to have a fac simile
I move that the officers of the
office; and
requested to make some arrangements so that
be authorized or
member can get them at some reasonable compensation
John
we
W.
Platten :
spent
a
good
and
asks for them fac similies, not only
but of this old will.
of each one of them
they
after we return
that it Is tbe sense of this Section that it be re¬
if possible, to arrange with Mr. Remson,
of those charts,
in
recognize you.
referring
very
will be in possession at some reasonable cost, of a sufficient number,
that
of
rol!
the section office, and you are urged to wear your buttons
Breckinridge
Mr.
yesterday,
have not registered;
at
that
New
of
I
would
deal
like to
of money
say,
(seconded).
before the motion is put,
last year.
if
is
it
banded
are
no
it is just this:
why tbe
reason
Those
are
Section should
than of those books.
I
Put
it
the
to
officers, Mr. President.
willing.
the amendment.
Seconded.
:
with
this
If there is
2908
Now those in favor of the
morning and
I
in
read
bill
a
telegram).
of
receipt
will
hag introduced
(reading
mut¬
a
discussion
no
It is carried.
aye.
Committee is
Calder
Senator
Bill
say
Executive
York
amendment, that it is
power.
It is carried.
aye.
The
am
This
in¬
some
the telegram,
in
the
bill
Senate,
is
banking and currency section of the Senate.
in
now
Will you
as
suggestion
a
this
that
preamble
and
resolution
be
con¬
WOULD HAVE RESERVE BANKS MAKE LOANS UPON SECURITIES
AS
•
COLLATERAL.
The
Trust
Company
Section
of
American
the
Association
Bankers'
having learned with great interest of the bill introduced in the United
Senate
Federal
serve
to
by Senator Calder,
Reserve
Board
under which it is proposed that the
be authorized
may
permit the Federal
to
Re¬
Banks, when they deem the emergency warrants it, to make loans
member
banks
upon
certain
classes
securities as
of
collateral,
de¬
sires to record its entire approval of such propossed action and trusts
that such
authority may be granted to the Federal Reserve Banks.
Resolved,
That
in
addition
approval
expressing its
to
the
above
as
Company Section recommends to the General Convention of the
American Bankers' Association that
policy
the
prove
contained in
McCarter
Ex-President
Mr.
:
Breckinridge
the
I
Jones:
Section
that.
it, the general convention, also ap¬
legislation
proposed
the
and
its
urges
by the National'Congress.
passage
fensive
to
22
most
of
violating
recommend
also
that
it
second
I
Act
I
amendment
an
mind that
my
think
if
and
offer
to
thing in
a
day,
every
the
like
would
is
motion.
the
institutions.
the
of
practically
is
every
member
could
we
add
to
of¬
most
bank
there
is
"and
provisions of Section. 22 of the Federal
Re¬
Act be liberalized."
Ex-President McCarter:
exactly so,
than
to
If the duties of fhe
Mr.
one
of
the
things that
us
who
the
meets with
entire approval
Bankers Association and
you
say
is
appeal
not
arc
to
companies
trust
doing
a
commercial
I trust it
the resolution that has been
of the President of the Ameri¬
will pass as it has been offered
Platten.
Jones:
Mil
Guinan:
States
trust
withdraw
I
depend
their
that what
other effort that has been introduced at the present
any
The suggestion has been made and
by Mr.
thiuk
I
other feature of the Federal Reserve Act, and will do
any
harmonize it with those of
business, than
can
Jones,
but. I think it would be unfortunate to inject that at the
Here ' is
moment.
more
the
amendment.
(Cries of Question.)
Probably 90% of the trust companies of
more
upon
in
powers;
their banking privileges
groups,
conventions,
in
in
than
the United
they do
State,
and
upon
other¬
wise, I have, endeavored to ascertain the proportion of trust companies
.that
rely simply upon
the
banking,
of
than
upon
authorized
trust
the
the fiduciary power; and in our Immediate neighbor¬
for
not
the fiduciaryTpowers,
bank, and banking, and the
a
our
and those that rely 011
with the exception of cities of
Pennsylvania, in cities of 30,000 and 40,000,
of
hood
are
their fiduciary powers,
find out that
and I
that trust companies do depend upon their banking functions,
first class,
rather
be studied and examined carefully by all the" members pres¬
will
any
I
very much.
you
with
attention
cannot
best efforts while
very
proceed
we
would call
I
Also there Is a number of books on trust company subjects which
ent.
are
be
exhibit at the first session yesterday afternoon.
which were on
wall,
They
and
honor to occupy the position.
State
to
the incoming Presi¬
of his
privilege,
great
very
Secretary, Mebshon:
the
great deal
a
Is
your
acceptance of this badge and also the honor of
earnestly thank
the
have
He has given
Section.
the
accepting
in
that,
we
buy something and everybody can pay for it.
move
say
that
Mb.
great amount of the work done during the past year.
John
do
sidered.
offered
forward?
pin
to
to
what
it and have the Convention pass resolutions.
on
more
desire to express my apprecia¬
pleasure
great
Chairman,
see
umended will
Senate
as
busy
get
time.
Will Mr.
it gives
Mr.
the officers
New
committee of the
have
at luncheon with a-most beautiful
ought
that is
Blair, and
publicly.
Blair:
Flatten,
gentlemen
you
individuals
as
buttons that I have
and
thank
would not be doing my duty to my associates on
I
Committee
of
the
to
serve
I
:•
so
to
as
box.
Past-President ' McCarter
Section
the
You have heard the
Platten:
formation
Trust
lunclieou-time,
President,
retiring
your
Mr.
man
the chair.
I only want, to say that if I
to do.
to-morrow
I
able to
term—will
year,
intended
Jones
expense.
the whole Section with it.
McCarter
In favor will
W.
J.
Any words that I could give expression to would not tell
along toward
getting
take
will
more
that Mr.
,
information,
but I
not
President.
your
Platten,
Section.
inter¬
I am delighted tbat'a
and
what my feelings are, I am not going to make
the
lias
is
however
fitted,
more
You
many
so
who
he
Jones
think
perfectly
I
to be referred
ter
had
have
We
and we have to
money
misunderstood.
Refer it
:
am
:
President Blair:
States
in this election of
associatiou
Blaib:
great honor.
not
I
man
a
Mr.
and
you,
pin the official badge of the office
President
I
to
remain,
I
" stand-patism "—if that Is
the
of
Here President
Before
that
come
table.)
the
that.
the affairs of this Association,
desire to
as
kindly
The Trust Company
and
during these critical times
man
no
destinies
you
president
new
at
president—though
While
belligerency
department of
his well-known
of
the
friend;
outgoing
the
(Laughter.)
the
the other
manage
is
personal
warm
I
:
Flatten
those
to
I
vex
Platten
Jones
W.
Ex-President
in¬
hate to relin¬
Mr.
copy of those any more
a
original motion
the
that
come
will
I
J.
the
I
as
more
perfectly will¬
ing to pay for it, either way, but I only mentioned it in that way.
ac¬
their election.
He
valuable
is
with
me
requesting
and
little
a
the Individual
:
the basis that you can
on
of
ballot and reports
time
and
congratulate you, gentlemen,
know
favor
in
hope it will last during the length of my natural term of life,
will
I
care
furnish
a
favor of their election will please
cast
the
for
call
the duties of President to. you, who for
my
ability
belligerent.
ested, I
and
the
It
We do not need to
that the favored
see
(Here the president-elect arrived
over
been
of
At
Flatten:
all.
it,
to the
Breckinridge Jones:
Mr.
Mr.
Blair, it is the pleasantest part of the duties
greater
more
W,
at
take
likely to be copyrighted,
voice in the matter at all.
no
nominated.
in
duties
these
Section, to turn
new
become
roll
the
in the service of the American Bankers Association,
much
John
roll.
interrupt
nominating
ballot
(applause).
years
meet¬
the
glad
the
to
therefore unquestioned;
is
and
be
that in my zeal to
me
Secretary lias
assume
forward
have
report
The
officers
new
will
call
now
desire
that you gentlemen
to cast the
Their
of the
force,
admirable,
most
together for.
their names
as
such as may be here, as well as
hands
that has its advantages, but I
gentlemen
(respond
is
apply, should pay for the charts.
Mebshon
adjournment
the
yet,
I
Blaib;,
Secretary will
think
I
forwarding the interests of the Section?
No expense
Secretars"
John W.
will
I
suggested to
elected
were
the
members,
shaking
McCabtee:
It is
moment.
few
Jones:
President
The
which
Mr. President, Mr. Ex-President.
money.
Blaie:
be
be present.
may
Secretary Mebshon:
President
Me.
done
members of the Executive Committee,
the
it
that
more
ballot in favor of
a
call of the States.
the roll
to
want
will
little
President
elected.
business is
called.
are
is moved
Are you not
to ask that those who
The Secretary informs me he has cast the ballot and
them
The next
It
Jones,
money,
contemplates gathering together for the benefit of the Section will cost
pleasure with regard
Secretary cast
that.
Mr.
more
have trouble in getting our appropriations at the present time.
I think
it is a good thing to do, and the additional information the
Secretary
a
Grape, Vice-Pres. Union Trust Co., Baltimore, Md.
Johnson, Pres. Leavitt & Johnson Trust Co., Waterloo, Iowa.
L.
President McCabtee:
to
Colo.
Durango,
get
little
a
the lines be has mapped out and put Into
ou
trust companies
functions
rather for the
problpm I think should come up among
companies, here as to our banking functions, and as to those
conditions, that we think alteration should be made to meet, that might
the
make
Federal Reserve System more attractive to us.
There is no
is harder
desk" from day. to day.
problem in" the amendments to the Federal Reserve Law that
the
than
problem
that
comes
to you
at
your
is. needed in each of us is that spirit of
What
confidence in our own
opinions as to what we think is right and proper, to make a Federal
Reserve Law one that Is attractive to us.
I have heard the report of
Committee
the
have
Law" has
serve
cent,
on
Federal Reserve
Law and
of the trust companies of
currency,
this system can
the
la
sures
I
or
to
viewpoint is the convertibility of
to credit, depending upon some mode by which
virtually guarantee the deposits of every member bank
the number
convertibility of assets, which in¬
the deposit of every depositor in that System.
the spirit of the resolution in
the line
of assets that might be converted.
stands, it is a Federal Reserve Law.
class of
they
the United States are not really trust
system, and will improvise a
and guarantees
heartily agree with
ding
have heard that
to add.
companies, but really banks and my
assets into
I
Probably that committee on Federal Re¬
failed to recognize that ninety-two or ninety-four per
nothing more
It limits us simply to
paper—bills receivable, re-discount.
of ad¬
As the
a
law
certain
thing from the viewpoiut of national bank, state banker,
The essential
trust
a
even
or
of less
Blair;
there
Is
to
national banks, and trust com-
into
emergency
discussion?
hot
If
those
think that
I
appropriate preamble and resolution addressed to the Secretary of the
In
Treasury,
of
respect
this
support that
the
Section
and
trust
the
,
companies of the country will render in reference to the next loan, such
as
Iteeerve
Bankers
Association,
that
only
was
to
ptoper
cooperation
the
of
I withdraw the suggestion.
Blair
President
American
It was only an act on
the
that
Executive
the
of
members
and I ask
this adjournment
after
assuming the regular order of business,
of them
none
Pratt
Ma.
of
the
it. is
If
:
lateness
of
President Blair:
election
and
Secretary
may I
that
the
make
We have
State
of
reports
that
he
handed
Those in
to
the
in
pointed
Illinois,
Kansas,
since
changed
or
Arizona,
Idaho,
will
say
Vice-Presidents.
Iowa,
this
Indiana,
States
those
shown
as
on
pages.
McGabtkb
Ex-President
from
these
dent may
various
printed.
was
The blanks
Nebraska;
New
Mexico,
Nominations for
that
move
there
being
any
nominations
no
he followed
(Seconded.)
appoint.
the Presi-
as
I might
that the
say
member present.
any
Does
want to present any new business?
take up
to
want
late,
very
taken
Gregory,
LAWS
REGARDING
up;
American
in Virginia—we had
Secretary of the company
President and
years
Trust
that
seem
Qo.,
there is
either by the appointment of
Tliere
that.
to
Uniform
Union,
is la existence
State
appointed
annually
with
sociation
has
Laws,
Richmond,
American
committee
Laws, and together they
the
Bar
special
a
of
,
Va.—-I do
pay
from
The
Committee
the
as
are being operated
State
American
on
You
Jersey,
all
know
that
if he owns
If
a
land
in
of
that
Bar
Uniform
the
that
New York also
will.
if
he
If it is not,
ia
will
New Jersey
a
will,
a
to
or
in
case
qualify
had
to
Alabama,
in
go
Viee-
a
twelve
person
As-
wills,
and make it easier for them to
John
the
executes
a
State
New
of
will
in
York
wishes
the
land
the land will
in
pass
those
a
Committed
the
or
States
except
formulate
to
the laws,
W.
for
State
Massachusetts,
to pass under
by descent and not by will.
referred to
be
the
incoming
before
State Legislature,
any
the interests of any special
in
or
the thing was put through
that
when
only one
there was
member, I think, of the Trust Company Section present at the meeting
in
nobody
much
the
given
was
the
time.
first
the
vote
think
I
that
It
it.
on
of
election
the
to
to
the
as
However,
matter
we
do
can
for
today
was
some
Committee
Legislative
State
through
put
was
officers
good by
of the
Association.
Bankers
Gregory;
C.
chance
a
manner
same
I
add
is
May
Association
to
just
word?
oue
The
it is to have a
work
the
way
committee to
report back to the committee at the next session and recommend certain
laws that should be passed, If in the wisdom of this body it should
passed,
be
that
referred
are
to
the
State
it
but
committees,
is
a
You may
have sub-committees,( and it is to guide the whole country, with a
to the committee as to the uniform laws.
recommendation
clearing
house
what
to
as
should
laws
be
for
enacted
the
whole
country.
President
supported
Mr.
by
Blaib: Gentlemen, you have heard
Mr.
Mason :
I
Platten.
would
President Blaib:
It
like
Just
statement.
a
the
Mr.
Mason's
motion,,
carried,
minute,
adjourn.
we
the
Secretary
to
wants
make one
,
,
back
Welcomed
is
to move
Secretary Mershon: The
in
New
probate after.
the matter
move
Committee.
legislation,
the laws
of
I
Mason:
John W. Flatten ; I thiqk the suggestions are excellent and, ©a
the motion of Mr. Mason, I very heartily second it.
President Blaib; Is there any discussion?
I might say that if my
memory
serves me right the General
Convention of the American
Bankers Association thought in its wisdom a year or two ago that it
would not do for any section to appear before, or have a committee
for many years successfully.
resided at the time of his death.
man
the legislative
States to pass uniform laws, to the end that it
to get the several
or
State
his will will have to be executed according to the law of Massachusetts
and
a
that it does seem to be. specially investigated by
that committee have nothing to do
let
meet
gotten nine out of the States,
years
em-
the Commission
States,
instance, to pass laws recognizing wills executed according to
man
be
or
is
be
special attention
as
each
Governors of the
not
It
as
should
committee,
known
men
Association.
known
They have during the last few
of the State where the
a
I appreciate the fact that
sub-committee.
George
that
matter
one
commission
a
composed
annually by
the
a
State
If
There are a great many matters with reference to the attesting clan
of wills and probate,
WILLS.
phasized and asked that the Legislative Committee
on
the
even
after the. man died, to re-prove the will in the State of Virginia,
bringing
but a few moments of the time of the Section
but it does
that
to prove
case
American. Bankers
C.
require
to have to go to California
recent
a
American
Georob
they
estate.
an
on
and
"
Those in favor will say aye.
UNIFORM
and
It is not convenient for the President and Secretary of
corporation
appear
I
:
the usual procedure
States
President Blaib:
member
ap-
Alabama,
are
Nevada,
Wisconsin, Wyoming,
President will be glad to receive names froim
any
These have been
in order.
are
State
according to the laws of New Jersey, that they
executed and attested
Executive
and New York.
Kentucky,
Oklyahoma, West Virginia,
of
the
which the will was originally probated, did not require notice.
the nomina-
9, 10 and 11 in the printed program I will read the States, showing the
blanks
in
will encourage people to go before the trust companies and make their
favor
other order of business,
one
account
on
(Seconded).
With regard to the blanks
Meksiion:
wills
probated
any
that come before them, this should be submitted to a sub-committee, and
motion
a
further
there any remarks.
Are
It is carried.
Aye.
order,
hour
be published in the proceedings'.
Secretary and
tion
in
the
requiring
is fully competent to handle the matter, but If with the varied matters
|eave.
We will next take up. the complete calling of the roll.
"
laws
the will,
probated
originally
I
Committee
in this Worn immediately
that there will be a meeting held
the fact
the last meeting "of the Bar Association Committee, they
resolution recommending to the Legislature of the various
in
that they pass
Now, that is exceedingly inconvenient.
call the attention of
want to
•#-
other
were probated in the State of New Jersey according to the law, and was
In
the powers to be that we trust companies
Before
;
the
that they go through the same procedure of notic©
and approval of wills that they have to go through, where they hart
to
suggest
the
ready to do our part.
were
Now,
States,
such, is not asked at this time.
as
part to demonstrate to
our
to
and
Banks
Plattbn:
W.
it
that the entire new Liberty Loan will be launched by the
Platten
Federal
J.
felt
I
McCakteb:
Ex-President
Mr.
the Governors,
should receive full faith and credit throughout the United States.
prior to the loan-of 1917,
did
we
by
where the land is,
for the section to recognize and consider and pass
the time is opportune
the commission appointed
committee, would redound to the benefit of this session,
the
should
currency,
It does seem that a committee on uniform laws of this Association,
operating with
passed a
further
any
May I be pardoned for rising again?
Platten :
W.
is
thousand,
The motion is carried.
will say Aye.
favor
than thirty
arise in their locality,
President
J.
their assets
convert
can
emergency
in
cities
in
company
that field so that state banks,
enlarge
panics
CONVENTION.
BANKERS'
192
of
here
the
book,
briefly
by
as
new
Vice-Presidents whose
well
the
as
the
Executive
old
Officers
when
appear
names
Vice-Presidents,
the
will
reading
be
Is
over.
President Blair:
will
stand
If
no
one
else has
anything to
adjourned.
(Meeting adjourned
offer,
the
meeting
Y
12: 45,
Sept.
26,
1917)
Savings Bank Section
American Bankers' Association
Sixteenth Annual Meeting,
INDEX
TO
Economics of War
Saving, E. E» Agger
-
Land Banks and Savings
War
Address
An
Savings Bank Bonds in War Time, L. Chamberlain
Page 205
"America First" Campaign for Savings,H.H.Wheaton Page 208
Committee Reports
- *
Page 209
-
Page 203
Address of President Edwards
-
Robinson
Banks,.L.
by
.
asking
me
Bankers'
to address them on the expe¬
Great Britain in
rience of
I
in
regard to War Savings, and
particularly glad to have this opportunity of ad¬
am
have
I
had
its
it
exceptional importance not only for
the war,
when it is the comfort and hope
of mankind that a new and better
hallowed
the
world can be built up,
the sacrifice of life and well-being which
by
has
war
involve
will
brought
upon
Such
us.
a
reconstruction
plentiful supply of capital, and there is
a
in which capital can be made available except
way
to divide my address into two main portions,
In the first I shall
the
In
second,
I
try to Show the importance of saving.
hope
results
and
methods
obtained
funds
to
tell
you
War
of the
something
of
the
Savings movement in
on
to
its
meet
to be used as
or
is
is
money
essential
an
subscriptions to war loans.
true that
perfectly
part of
the
with
machinery
Money is, after all, only a
generally recognized by civilized people as repre¬
senting in the hands of its owner the power to
and services
goods
orchard and pick
can
go
If I am hungry and happen to
orchard with ripe apples in it, I can go into
don't possess
cally,
command
from others—power to make other
people work for him.
the
for the
satisfactorily
question, we must get away from our habit of
our
thinking in terms of money.
token
Now
circulation of
the continuous
financing of the war, but if we are to deal
and
some
apples and eat them.
If I
the orchard but have a dollar in my pocket,
into a . store and buy some apples.
in point
put them
on
Chronologi¬
have planted the
of time, other people
apples, shipped them,
sale in the store before I spent my
dollar, but logically, by spending my
1
the
pockets of the people becomes available there to pay
the
I
and
expenditures,
apple tree, tended it, picked the
Great Britain.
Government work, and
is said, begins by borrow¬
flowing back into the deposits of the banks and
possess an
through saving.
I propose
the
it
be of
engaged
The Government, it
ing money temporarily in some form or other, then uses
The subject is very near my heart, and I
to
after
world
forth.
so
taxes
winning of the war but also for the welfare of the
the
no
closely associated
privilege of being
for the manufacturers
Savings movement in Great Britain since
inception.
believe
thd
Page 211
-
engaged in producing food and munitions, profits
women
money
dressing, influential bankers on the subject.
with the War
O
-
.
Treasury.
British
Basil P. Blackett, C.B., of the
by the Savings Bank Section of the American
Association
-V '
Savings in Great Britain
greatly appreciate the honor which has been done me
I
PROCEEDINGS
BANK
Page 193
Page 198
Page 201
-
-
Banker and Farmer, Myron T« Herrick
SAVINGS
-
Savings in Great Britian, B* P. Blackett
War
Held in Atlantic City, N. J., Sept. 25, 1917
dollar I make other
needed to produce apples
store within easy reach of me.
people do for me all the work
How
volve
a
is
the
war
paid for?
A full answer would in¬
treatise rather than a short address.
I ask your
indulgence if what I say strikes any of you as unduly
Spending
it
is
for?
It is not enough to say that
paid for either out of taxation or out of the pro¬
ceeds of Government loan issues.
immediately
:
For the question arises
How does the nation at war
manage
to
provide the sums required from it by the Government in
the
form
answer
the
of
taxes or
loans?
The banker will perhaps
money,
in fact,
means
making other people
work for me.
The
dogmatic, as may well result from my attempt at brevity.
How is the war paid
them on sale at a
and put
British
$30,000,000
a
Government
take for purposes
United
Kingdom
with the
the
is
spending' something over
day on the war at the present
on
the war,
as
figures, but what I say is
I
(I
am
more
familiar
equally applicable to
expenditure of the United States.)
the British
time.
of illustration the expenditure of the
In other words,
Government is making people work for it to
which,
measured in
that the Government's own expenditures provide
an
extent
of money which it
an
money,
is equivalent to
expenditure of $30,000,000.
funds, owing to the large sums
expends on war requirements of all sorts, such as pay for
the sailors and
soldiers, separation allowances for their
dependents, wages for the countless numbers of men and
is
getting
The British Government
the labor and services and materials, or, in the
short/phrase which has become a familiar one in Eng¬
land, is getting " goods and services " valued at the fig-
*
BANKERS'
194
of
ure
$30,000,000
Incidentally,
(lay.
a
has been that the amount of
war
tainable for
ing the
would have secured before August, 1914, but this is
another matter, and is not
it would be in
that
directly in point now, though
point if the question
asking
we were
pourids sterling
ments
are
are
secured, the
ment
cannot
undertake
cannot obtain
or
If the Govern-
Government cannot pay for it, or cannot afford it.
is
the essential
If the
war
services for the purposes
and
Government
Government
United States has been
the
goods and
services
United Kingdom,
-from
needed
the
from
and
goods
from
over
If goods and
activities
the
should show
surplus
a
using up in satisfying their
has
the
effect
of
that there is such
scribe to
a
private needs.
compelling
to
encourage
further surplus.
When
various
their
comforts and luxuries,
to
not compete,
go
but hand
for
needs,
war
A
subscriptions to
the
second
war
effect of such
tween
sales?
Here
securities
another
in war
own
by
to another,
goods and
command
ment in
of
for
a
be-
services,
these
goods and
exchange for
a
his
me
and I,
command
oyer
of
the
Government
of
creased, but the
me
man
fighting the
that
the
' I have
Government has obtained command
subscribe
for
ing, shall
we
shares
in
a
to buid
say,
made
over
a
company
cinematograph theatre, and
promoters of the company find it so difficult to obtain
command
of goods
proposition.
subscription to
buyer is
a
a
and services that perhaps they drop
Selling securities for
the
purpose
of
loan has its uses, therefore, but if the
fellow-countryman the quantity of goods and
services available for the
war
is not increased.
of
been
and the sale abroad of
built
words,
for
past
the
war
is
It
can
and
but
war
the
battlefields
on
its nationals to
.
the
out
of
new
the proceeds
inhabitants
of
the
credit
a
third
a
•
from
source
that
true
and
part
services
future date
France
of
is
of
the
ultimately be met out of
goods
some
in the United
now
the
to
years
Govern-
namely, the anticipation
quite
must
Government issues
money
of
there
that
be paid for,
can
savings,
the
either
?
the
British
out of
or
savings
in
up
the
'
savings.
case
or
war
which
Belgium.
loan
of
are
at
are
no
use
When
home
the
bor-
or
States,
it
of
expected capacity of
the
obtains
produce future savings.
Anglo-French loan,
goods and
When,
belligerent
as
in the
governments
obtained money in the United States on the strength
of
tlipr promise to pay, without collateral, the borrowing
governments
were
their nationals
the United
sure
that is intend-
has
the surplus of produc-
are
surpluses
pay
be argued
future
services
and
buyer of the securities cannot
new
to
war
rows
in-
them.
had
transfer
British
who has bought the securities from
A further result is that the
the
not
the
on
certain
has given up the potential command over goods
services available in the country, and
the
is
has
future
The amount
war
aggregate
Government
sense,
other
going to be provided at
services over to the Govern-
in
In
of
goods and services available in Great Britain for the
use
similar
war.
cost of the
in turn, hand my power to
Government I. O. U.
the
It may
fellow
my
the
private consumption at home of goods
over
which the
fellow citizen of my
Britain, all that happens is that
These two-sources
other countries.
If I sell securities in order to invest
loan, and the purchaser is
in Great
ment
What is
citizen
British
the
savings effected by its nationals
and the sale of
a
increase in
the-goods and services it has needed for
previous
before
them
must distinguish
goods and services in Eng-
actual
no
which
secure
war.
from
purchasers at home, that
citizen of Great Britain to
a
country.
countryman transfers to
of
we
is
useful exchange enabling
a
use
and services in the widest
and
money
Unless
assets which have represented the fixed capital resulting
of Great Britain, the sale of securities by
case
citizen of Great Britain
one
of providing
way
there
tion at home
them-
uses
loans is to sell securities.
the sale of securities to
is, in the
the
and instead of using
goods and services to the Government, which
the population.
the private imports, there is
There may be
from
sources
the power to clommand these
over
but
able to
out of the market for them
marine)
Strictly speaking, therefore, there have been only two
them to provide
command goods and services for
selves they should
mercantile
increase in the .goods and services available for the
land,
to the Government, they pro-
money
United
amount of goods and services available,
see
The best ,way is that they should deny
ways.
money
to
needed to pay for their subscription in
money
themselves
Taxation
people
British
the
the British Government to
•
?
people lend
vide -the
are
of
for the private gratification of
Inviting the people to sub-
surplus.
a
loans tends
war
own
practically
those which they
the
export of services is obtainable
an
the private exports exceed
war
command for their pri-
over
any
the import into Great Britain of goods or services
no
use
outside
(the
Government.
vate
A similar command
places
over
needs, it is necessary that the goods and services which
cap
in
surplus that may exist
the people
in the Kingdom
corn-
large that this operation of
so
services
simplest illustration of
of
people of the
to be available for the Government-for
are
its
the export from Great Britain of goods or services
but it has also obtained some of them
people in other parts of the world.
services
any
have obtained supplies in America.
and services?
The British Government has obtained the greater
part
war.
use
essential feature of the process by which the Allies
an
ser-
Where does
these goods
get
to
In
Kingdom results from
British
of the
compelled
not
was
the
ceeds of taxes, or loans
the
Gov-
selling securities to citizens of the United States has been
securing of these
purposes.
has
practice, however, the expenditure of the Allies in
over
war
thing
part of the world.
goods and services that the Government devotes the profor
first
securities
the United States was neutral, this
as
mand! goods and services in
What
thing is that the necessary goods and
the
could get that power exchanged into a power to
is to be fought and won,
vices should be secured, and it is to the
of
of the exchanges machinery was available by which it
really meant is that the goods and services required
cannot be secured.
Clearly, the
buyer
the
in the United States because through the medium
power
that is not done because the
or
So long
goods
over
particular munitions which it requires,
it is often said that this
that
British War Loan passes on that command
a
The British
particular military enterprise
a
is
meant a definite increase for the Allies of their command
If the goods and services
is being paid for.
war
What happens?
war.
ernment.
It is the securing of the goods and ser-
vice which is the real problem.
in the
say
goods and services in America to the British
over
or
spending, but the goods and services which
they command.
we
This process has been very evident dur-
happens
subscribe to
francs which the belligerent govern-
or
buyer of the securities
ica to the seller, and the seller by using the money to
were :
important thing is not the number of dollars
that the
suppose
transferred a command over goods and services in Amer-
What is the ultimate cost of the war?
The
us
United States?
expendi-
an
Now let
lives outside the United Kingdom—shall
day is con-
a
siderably less than the amount which such
ture
i
result of the
one
goods and services ob-
expenditure of $30,000,000
an
CONVENTION.
.
States.
ment borrows
at least
new
the
as
for
on
a
exchanging
the
future
the
When, hpwever, the British Govern-
true to say
that what it is exchanging for the
of
the people
States
of Great
is
not
Britain
but
their past savings represented by the collateral.
there
are
various
of
loan secured by collateral it would be
savings of the people of the United
future' savings
savings
present savings of the people of
banking
devices
for
creating
Again,
credit
which have somewhat similar results, that is, they serve
to
secure
the
future savings.
use
of
present
savings
on
the
credit
of
Ultimately, the borrowing governments
will have to take from their nationals
by taxation
a
part
their
of
the
to
surplus of goods and services produced
future
live outside the boundaries of the borrow¬
This is a matter of domestic arrange¬
ing governments.
whether at home or abroad, will of course
lenders now,
their
spent
money
But in providing for the needs of
instead of lending it.
during the war the only things which count are
Britain
be
can
Britain and such
of
savings
present
as
have
who
those
than
off
better
The
and their nationals.
the governments
ment between
the
nationals or
lenders, whether they be their own
whether they
be
these over
goods and services consumed, and hand
over
past savings
for the present savings of others
exchanged
out of
and
season
the National
season,
long
the United States
as
"governments
still
America,
States
States
States
United
the
come
a
is1
services from one belligerent to
itself
other
In
for
of
out
of
citizens
rities
Britain
finance
and
its
do
machinery of
for those who
The problem
war.
the
bear all
bring to
set free and
by
juggling with
any
firing cost half as much
is
be
These resources
shell which
twice as much as it
or
What matters is that he should
would have cost in 1013.
If the number of shells available is in¬
have the, shell.
creased, he is better able to do his part, and the lives of
the
infantry
be
The only
saved.
the number of men and guns and shells
way to increase
and
trenches will
in the
supplies available at the front to win the war is to
reduce
the
competition
individuals
private
of
the
for
goods and services which the belligerent governments re¬
This can only be done by increasing
quire for war needs.
production "of the things which are necessary,
and re¬
one
It
was
really
refreshing
the
the
tackled
to
see
eighteen
months.
the
has
war
this
eighteen
matter
British
It
weeks
already
nation
had
is
most
the
of- war
advanced
reached
to
after
The entry of the United States into
practically eliminated
Everything
the United
hand in
I
States,
producing
rather
in
now
am
new
story of the
Committee
are
in
in
problem.
such value as
past
possessed for providing goods and services for
savings
the war.
The
that
the
that
point
1916, that the British nation
depends on new savings, and
sure,
is not going to be behind
work of the National War Savings
England and Wales
is one of
which
we
proud, subject always to our confession that
can
that
see
work
the trenches.
done
time the Na¬
that,
looking
inevitable,
if only
started,
was
success
was
On the
explaining the facts
in
hand, the workers of the coun¬
one
Wages had increased
Many more members of the
prices.
family than in* peace time were earning money, so that
the
family as
and
,
that
of conditions
to secure permanent inn
by putting
wealth against a rainy
extra
of the workers were
few
but
using the chance of their life
provement
booming,
jewelry trade was
cheap
The
obvious
was
by
of their
some
The state was thus
day.
being called upon at one and the same time to
services
and
goods
masses
of
of
the
people
over
and
they had demanded in peace time.
There was an obvious shortage
of labor and materials
shortage
shortage of ships and men to build ships—a
—a
provide
for the war and to provide extra
for
luxuries
and
food
above what
un¬
of useless and wasteful
terrible amount
a
extravagance.
it
children," but there was
the
for
clothes
better
fortunately
and
Some of the
unit was much better off.
a
earnings were being wisely invested in better food
extra
equipment at the docks and of labor at the docks—a
shortage of railway wagons and of the men to
engines—a shortage of farm labor and
—a
of
workers
have
and
up
gone
National
the
drive the
coal and miners
materials required from abroad.
shortage of many
The
Savings
War
Committee
the country pointing to this
down
shortage and explaining its causes.
They have enforced
patriotic abstention
from self-indulgence
the
of
lesson
employs labor and material when
which
terial are short for war needs.
and child, whether his or her
that every man, woman
were
small
uphill
was
or
large, could by increased produc¬
consumption help the national cause.
and reduced
It
work at first.
England has always re¬
garded saving as a mean sort of
Perhaps
Scotland.
one
of
his
Scot who
may
habit, proper only to
venture to illustrate this by
stories bearing upon this
was
Scot spent the
They arrived early,
time examining the prayer book.
Suddenly, he nudged his friend excitedUr.
mori," he said.
"Come awa'.
It's awfu'.
book—see what it says—on one page
'Collect,'
tered
the
on
'Collect.'"
" Come awa\
Look at this
after anither, 'Col¬
The war
has,
I
hope, al¬
English sense of values in this respect!
The cry of
and
Scottish
visiting London was taken by
Episcopal church.
friend to an
and the
I
the countless
A
virtue.
labor and ma¬
They have afforded facil¬
co-operative saving and organized local effort
for
ities
lect,'
savings.
they can be useful, and
Committee
Savings
creased faster than
tion
savings
war
has
States
United
II.
;
not until January,
their energies to that little
had never been so well off.
income
■
organizing on a
now
generally, and for the time being, at least, they had in¬
so
ducing the consumption of everything else.
War
necessary
try
It
finance.
matter to the gunner whether the
not
does
their resources that can possibly
them to win the war.
use
increased
be
cannot
in the world is to
public right
upholding of
are
facts had become so obvious by the
everywhere.
The
fighting the battle for freedom and self-government
and
the
securities from
in making the
majority
but the vast
waste,
women
Savings 'Com¬
avoiding waste and self-indulgence for the sake of
back
neu¬
they are not providing new goods
work,
and
men
Lloyd
I do not say that there
the people.
wicked
much
of Mr.
in bringing the doctrine
the sailor on the sea and the Tommy in
but in doing so, while they
France,
for the
services
are
he
and
assisting greatly
be
may
and they can buy
other,
each
to
Great
an
basis—are devoting all
are
sell secu¬
States of America can
words
of he¬
astonishing claim, but I do
bit of the war machine in which
has be¬
alone.
and new savings
savings,
new
still
English
war
time, has come when the war must be paid
the United
be
blood—the blood
costs
succeeded
actually
has
not
of
It is
anjr
sound
may
home to the bulk of
goods and
that there are scarcely
words, nowr
trals left, the
It
mittee
fighting the war.
Allies, including the United States, in
must
war
Extravagance and waste
the
In
time.
war
" Extravagance
roes."
It does not in
another.
the
that
show
to
seriously contend that the National War
and services available for the
the goods
increase
above
in
treason
are
tional
the command over
of
the economic argu¬
to the people
bring home
available for winning the war.
The
belligerent, this process
a
transfer
mere
gospel
It has adopted all sorts of expe¬
private
expenditure which is not really necessary for health and
efficiency involves a diminution of the goods and services
But now that
the Allies.
and others of
Britain
Great
statement
paid for out of new savings; that every cent of
making large and liberal loans to
of course,
is,
outlined
the United
Kingdom, and the Government of
the United
to
ments
work.
National War
preached by all means in its power the
goods and services.
held in
previously
securities
buy
to
necessary
the whole campaign of the
dients
sell and for
United Kingdom to
for the
possible
United
the
of
of the 'belligerent
in America.
loans
by
or
in starting on this
slow
very
sense,
Savings Committee can be summed up in the
definitely increased by the sales of
were
to
securities
one
that it has
not a belligerent,
was
goods and services at the disposal
the
In
is
savings.
of
out
So
The wTar can be paid for
eighteen months.
for the last
Savings
War
throughout Great Britain
Committee has been preaching
only
which,
gospel of goods and services is the gospel
The
in
were
we
George:
outside Britain.
195
SECTION.
BANK
SAVINGS
all
" Business as usual" had taken a firm hold,
sides
one
heard the argument that the one
196
BANKERS'
thing to do was to keep money in circulation, and
good'to
trade.
Moreover,
Committee adopted
to
understand the
example
our
the
where
the
for
fellows.
results
We hit
have
been
the plan,
on
has
do
He
the
set
right
benefit
his
in
man
in
stimulated
war."
discussion
This
pened.
first annual
our
is
of
mild
a
We had at
the
report, "provoked and
economic
disposal
our
problems
to hira
sents
poster space given free by the Government Departments
a
and
savings
by
patriotic
citizens,
such posters as the
covered
we
them
with
Form
in
only
we
in wartime is
"
,■''
and how
ride
motor-car
a
for
the result of which
otic
the
on
the
of
V
the
country
h:J'''
opposition
aroused,
was
serious-minded
our
of
but,
tradesmen
what
friends
was
worse,
many
us
com¬
the cold shoulder.
They sympathized keenly, they said, with the necessity
for
encouraging savings, but they
connection
with
an
could not have
organization
which
undignified and " American " methods.
adopted
But the
prevailed, thanks to three things in the main:
patriotism of the country, the devotion of
untary workers,, and the
I
will deal
with the
dilating
sold for 15
on its merits.
The
shillings and 6
The holder
notice \yhenever he likes.
of
the
back
date
and
which
on
nothing
after the
$3.87^.
at
a
he
he
anniversary of the date
he.gets 15 shillings and 9
cashes
on
it
10
month, and
so
he
extra penny,
gets
an
was
for each extra
on
or
for
say
$4.18, and after it has been
a
two years,
pound,
or
certificate
compound.
tax,
an
for
the
There is
no
a
tax.
was
So
great
necessary
to fix
cates which
were
an
for the extra
After
currency
has
it
been
very
gets
further 10 to
per
this. attraction
of
to hold up
of
a
millionaires
for
it
super
became
We
or
negotiable,
the
that
we
allowed
or
her
each
income,
to 500 certificates.
can
firms
so
as
that if
certificate.
only be. held by individuals. ' Cor¬
man
This
wants
form
were,
poster, which
effective:
very
They
are
not
the money
he must
of government
security
with
compound
interest."
boy at the front.
By buying
one and
at the
its
a
for which to pay for making car¬
nest egg for herself against the day
down
bride and bridegroom.
as
demonstration of the gospel
merits.
in
the day,
of goods
We
the
on
set
to
savings certifi¬
war
work
to
organize the
savings commit¬
war
of Great Britain.
area
There is
but has followed the English methods with
great success.
local
War
Is,
At the present time there
Savings Committees in
about 1,500
are
England and Wales,
committee for every 24,000 of the population.
one
do not know the exact number of committees in
land, but there, too, the whole
These committees
own
area
not
autonomous bodies, paying their
are
in direct correspondence with the National
expenses,
subservient
mittees
are
Scot¬
is covered.
Committee at headquarters and relying on its
to
it.'
The
members
of
advice, but
local
the
com¬
representative of all phases of the local life.
The unpaid local magistrates
a
a
same
boy with cartridges, provide the Gov¬
money
covering the whole
and officials who
such
are
feature of English life have played a great
part.
committees
are
usually under
urban district council, as the case may be.
treasurer
is
trade
or
the-
of the
The borough
frequently the treasurer of the committee.
secretary
local
The
the chairmanship of
the chairman of the county council
mayor or
is
volunteer
a
workers
The
of
the
chosen
area
from
covered
among
by
the
the Com¬
membership includes representatives of the
unions, friendly societies, political clubs, women'.s
organizations, churches, schools, local residents, etc.
The
functions of the
committees
twofold.
are
Their*
first duty is by propaganda of all
sorts, public meetings,
meetings held in works in the employer's
ing-room
meetings, meetings
in
by the distribution of literature
unteer
favor
own
schools,
on
of
mittees
cieties.
establish
economy.
to
be
They
mere
the part of vol¬
have
goods and
strong local public opinion in
a
But
etc.,
usually from
helpers to bring home the gospel of
and
time, draw¬
churches,
obtained
headquarters, and by personal effort
services,
such cannot invest.
a
was
certificates
one
15/6.
did not rely solely
we
mittee.
that
family^ irrespective of bis
The certificates
porations
in
mentioned,
separate organization in Scotland which started later
super
or
might be held by any one individual.
children
savings
country, and have established local
active
cent,
back
money
clear
a
and
The
limit of 500 to the number of certifi¬
a
But
cate
5*4%
important for people
15
the
services.
interest, if the
about
with
was
is
years,
liability for income tax
was
and
money
kind, however, to the suffragettes and to the wives
member
cash
year
paying 5 shillings in the pound, that is, 25% for
income tax, and
and
a
with
its
This
I
If he cashes
of
rate'of
five
war
addition to
have already
We had
for
when he and she settled
that
out for five years he
The
full
attraction which
who are
month
your
tridges, and put by
days'
it is worth 1G shillings and 9
pence,
$5, for it.
say
runs
more
2 cents.
out
In
to
brought home to the girl in the munition factory
ernment
other
issued, he gets 15 shillings
that is, with 2 cents
pence,
be
which he bought it,
addition of G cents to the purchase
price.
and
can
immediately
for it, that is,
pence
repre¬
of the provincial cities with
war
Cartridges
time provide her
a
few
a
bought it, he gets his
If
it thirteen months after it
It
If he cashes it within
more.
what
brought
means.
savings certificate she could at
war
tees
great many
get cash for it at
can
host of vol¬
savings certificate is
pence, say
and
This
gospel
the real
will perhaps excuse
you
war
obtained at any post-office and
places.
such
savings certificate first.
probably all know what it is, but
my
a
any
savings certificate.
war
war
I
some
how she could help her
throughout
thought themselves
pelled by their consciences to give
working
pleasure."
high-road from the indignant and patri-;
proletariat.
Naturally,
which
posters
they could be got.
to make the timid motorist fear
was
The
safe in which to
no
widely
public by various
"124
attacks
rainy day comes,
a
interest.
The attractions of the
been
copied in America, which
you
Don't
have
posters explaining
form."
The holder
capital, cannot be stolen from him by
covered London and
again,
or,
to
capital
savings certificate, while it
,
unpatriotic—it is
bad
the
deal
sole
bearer bond because he does
a
Dress
Dress extravagantly
not
for
keep it and has
certificates
of
great
it, and that he will get his
addition
war
his
"crime"
the
Bad
wants
friend or burglar or wife.
notice
following:
"
To
and
His
or
is growing and accumulating for
England dislikes
deposit it.
immense amount of
an
substantial
not know where to
of the
of putting what really hap¬
way
he
a
whose
man
savings certificates.
war
money
when
the
to
use
capital back after the war or when
a
of
investor
for infinitesimal
coupons
Government
the
no
few
a
his
that
cost
of
are
consists of
feels
example,
with
words
which
and
ing campaign, of placarding London with posters which,
the
small
(and the Government is not both¬
preparation of half-yearly
issue
lesson from the recruit¬
a
bothered
not
amounts,
amazing.
drawing
is
the
good
a
Our experience has been
have
the
ered) with the issue of half-yearly interest warrants
unfortunate
an
was
to
lute security for his capital without market fluctuations.
striking way
saving, and set
There
attractive
altogether
not
some
proved immensely
(whom I purposely leave undefined). -It offers him abso¬
directed entirely against th&
was
well-to-do
so
Savings
the well-to-do, so that they
on
need
campaign
War
were
try in
the poor resented it.
poor, and
that
their
to
idea that
to
was
bring pressure to bear
might
National
methods which
Our first action
liked.
the
CONVENTION.
we
have not allowed
talking institutions
more
to
do
than
or
the
com¬
debating
mere
so¬
preaching.
They have definite functions, namely, to set up
war sav-
BANK
SAVINGS
SECTION.
ings associations and to supervise them when they are
he has cashed it
set up,
number of
197
seeing that their accounts are audited, and that
they keep alive.
The
chain
which
.
,
reaches from
1917,
National War Savings Committee to the investing public.
which
These are
ary
voluntary associations of people who club to-
gether to invest in
savings certificates.
war
that
means
has
treasurer
hand
in
take to the
ficate.
privilege, denied to
any one
tion
increases
the
There is
he
is
treasurer
a
allotted
to
subscription
individual
the
to
35,000, that is,
one
there are 5,000
or
the
gets the certificate possibly
the 15 shillings
>
31 weeks older than it
week, and taken
The. Government, of course, has the
the war savings associations is
the great advantage of
that
This introduces
Associations
a
little excitement, and the pleas-
number of members may
less,
or
be
may
formed
in
of
all
Street
a group
war
10,000.
as
business
They
have been
offices,
trade
unions, "
In one case of which I am
friendly societies, etc., etc.
thinking,
The
churches/ clubs, munition factories,
sorts,
of domestic servants formed the Blank
free supply of account books,- members' cards,
etc., and the privilege of holding certificates in blank.
This
is
affiliation
which
done
undertakes
a
through
the
local
no
way
The Govern-
responsible for the cash collected by
association until it has been invested in
an
committees,
general responsibility for the suit-
the officers of the association.
ability of
ment is in
sold.
are
war
war sav-
purpose of
Experience has taught
us
that
People will take a certificate if it is offered
them on the spot, but 15/6 is apt to dwindle
away
accompanies a man for a walk of even a quarter of
a
if it
mile
to a post-office.
From the elaborate machinery which I have described,
associations.
As a matter of fact, at the present time,
about one in four of the certificates bought is bought
through an association, but there are still
shy of co-operating in so
are
war
savings
a great many
mean a
vice
saving, and prefer to do it without.the knowledge of
as
their fellows by going to the post-office or other agent
for the sale of the certificate direct. The value of the
work done by the war savings committees and associations is therefore even more important in regard to the
encouragement
of
the
general- habit
of
saving
and
lending money to the Government than it is in regard
of facilities of investment by instal-
ment.
I should like also to emphasize
obtain the privilege of
Savings Committee in order to
a.
of the
there cannot be too many places at which certificates
to the provision
savings association.
Associations have to be affiliated to the National War
having
instalments, many
ings committees act as postmasters for the
selling whole certificates.
people who
.
be as few as 15 or 20, or even
large
as
schools,
factories
certifi-
formed in any group .of people.
are
exceeds
.
scriptions for war savings certificates come from the
little flutter.
a
I do not know
certainly
weekly or monthly drawings
those members who have completed a 15/6 con-
ant sensation of
it
it might be inferred that the greater part of the sub-
tribution as to which shall get the earliest-dated
cate.
but
many asso-
A good
propensities.
ciations adopt a system of
among
total,
savings associations and nearly all of the local
people in co-operating and competing react favorably
each other's saving
on
But
from the moment when they are contributed.
6,000 more in Scotland.
membership
In addition to providing war savings certificates for
advantage of having the use of each of the separate sixpenees
was
for every 1,000 of the population; and
those Who subscribe by
member.
and 6 pence, when finally accumulated,
the Post Office.
to
exact
5,000,000.
15
certain amount of advantage to him in that
would have been had he set aside 6d. a
taking up 5
The number of war savings associations in existence
shillings and 6 pence, one of the certificates in the hands
of
purpose of
As may be imagined, the War Sav-
at the end of June, 1917, in England and Wales,
else, of holding war sav-
individual
total
his
were cashed were cashed by people during Janu-
today to speak of that,
As each member of an associa-
of an individual.
only
ings Organization did invaluable work throughout the
ings certificates in blank for subsequent transfer to the
name
these
of
country in the War Loan campaign, but I have ho time
savings association has
war
a
and
than 500,000 of those
more
the
week
post-office and invest in a war savings certi-
The treasurer of
110,000,000,
week, that
a
each
of 15 shillings and 6 pence which he can immediately
sum
the
the
matter of fact, the total
and February, 1917, for the
per cent, war loan.
If thirty-one
people get together and contribute 6 pence
over
was
1,500,000 had been cashed, and
Government through the
the
a
teen months from the date they started to the end, of
June,
is the. final end of the
savings association
war
As
or not.
savings certificates issued during the six-
war
a
further point..! The
National War Savings Committee in their organization
have refused to regard themselves as being wholly, or
even
mainly,
a
bond-selling institution.
They have re-
garded as their first function the task of encouraging
saving.
They have, of course, encouraged people to lend
their savings to the nation, but provided the savings are
effected they do not much care how the savings are kept
certificates, but the decentralization of the work, and the
safe, provided that they are not simply hoarded.
provision for monthly returns and audit through the local
remarkable fact that in spite of the special attractions
committee, and the interest which one member takes in
member's
another
sufficient
been
secretaries
A
great
or
to
doings
in
prevent
a
any
small
with
nearly $500,000,000—invested in them, the savings cam-
defaulting
paign has given an impetus to every one of the older illstitutions for encouraging savings.
treasurers.
of
many
the associations
and firms' offices, where
active work of
the
are
pay clerk does
ings Bank, the other savings banks, the building societies
most of the
and other co-operative societies, all show record increases
collecting the subscriptions, and the
em-
by promising them the first sixpence or the first shilling,
the last sixpence or the last
or
certificate.
We
have
shilling towards
been
careful,
a
war
however,
throughout to secure that the war savings associations
shall
be
run
by
the employees or
the workmen them-
selves, and not by the employer, as we have found that
too
interest by
much
workman
suspicious.
the employer
that
he
is
overpaid.
tends to make the
He sometimes thinks that if he is
known to have saved a
good deal the employer will think
The
safeguard
against this
sus-
picion is the fact that once the war savings certificate
is
in
the name of the workman no
one
The Post Office Sav-
works
inside
'ployer frequently encourages the efforts of his employees
saving
of the war savings certificate, and of the large sums—
have
community,
trouble
It is a
knows whether
in their deposits, and those responsible for them have,
in
consequence,
nearly all
been hearty and valuable
workers for the War Savings Movement,, though at first
their fear of competition threatened to cause much dis¬
ficulty.
This last point is one which should appeal specially to
an
audience of bankers.
The War Savings
jMovement
has in the first place increased savings banks deposits
during the war.
Still more important, it is educating a
vast new army of future
after the war.
clients for savings institutions
Finally, it cannot fail to be of enormous
significance in the future state of England that one in
every
four of the population, at the very least, is a direct
securities.
holder of Government
.
CONVENTION.
BANKERS'
198
Economics
The
By Eugene E.
Our
Government
is
the necessity
How does it work?
of
but there
are
per year,
There
and there are many who believe that we shall
be
warfare
like
is
going
is
Be that as it
are
may,
the other
statement
we
food,
ing,
which
etc.,
that
is
hammer
know that the sums de¬
beyond human comprehension.
now
Crusoes.
There
few who could make for themselves the shoes, cloth¬
are
There are
need.
they
some
so
inept with tools that the only nail they can hit with a
gigantic spree—useless as well, as
costly.
market.
a
mighty few people of this day and generation
are
would make satisfactory Robinson
who
,
To the pronounced pacifist^
Costly.
a
on
manded
a
billions
lucky if we get off with from fifteen to twenty billions.
Modern
it
few who put the cost as low as ten
Well, directly or indirectly, every¬
producing for what we call
is
today
body
At present the estimates vary,
raising stupendous sums.
University
Agger, Professor of Economics, Columbia
with
confronted
of JVar Saving
their
on
Instead
thumbs.
making
of
In like manner we
things for ourselves we buy them.
I saw
get the money with which we buy from the sale of our
day that nine billions of dollars
goods
The amount of our
services in the market.
represent nine dollars a minute for every minute since
own
Christ
purchases is obviously limited by our income, or in other
Bankers
born.
was
supposed to be handy with
are
or
figures, so I leave you to test the validity of this calcu¬
words, what
lation.
can
At
rate we know that the sums are large
any
But
matter
examining the
on
behind
the money lies
wants is
which
velopment of black magic, namely, modern warfare.
is simply
like
So
accustomed
whole
economic
Yet in
As
there
is only
great.
to
the
interpret this
they
forced to
are
carry
But
we
all
like
to
of adding to our incomes,
make
for its
of
on
in
money
the " money
important aspects of
in
measured
terms
costs
money
and
This
Costs
money.
receipts.
money
success and
harvest, but he is
Money
outlook.
business
enable
to
one
This
trolled
wheat he
Practically
The
particular
a
goods
meaiis
our
economic
of
us
No
are
bankers,
and so on.
some
con-
note
in
specialization.
some
manu¬
business activity to get as large a
Yet, by and large, the
as
individual
he
can
Competitive
an
force
If we try to make
depend upon.
simply left with
hands.
ecomonic system based
What effect has war?
production.
upon
Fighting
exchange
men are
They must be cared for.
corresponding re-ordering of the system of
Similarly there is
production is necessary.
.
for
ordnance
and
munitions,
a
new
trucks
motor
de¬
and
field equipment, medicine and hospital supplies, and hun¬
dreds
other
of
specialties.
How
can
Government
the
get these produced?
Two ways
'
present themselves.
The Government could
conceivably commandeer all existing stocks, and perhaps
through
income
to
does not want,, we are
our
from
A
Wanted.
tional
money
is reached where further in¬
event, but there is a tremendous change from the
1;
his
But with advancing price production
come
on
is, then,
Every individual is
is trying in
Control is exercised
If demand for a given thing is great,
point of view of the kind wanted and the place at which
any
What authority has decreed all
authority is responsible.
can.
We
merchants,
presumably looking out for A No.
honorably
in any
mand
development.
those who in one form or other
the process.
Food, clothing and shelter would, of course, be necessary
make money.
whole
products
withdrawn
can
They
pursuit of money income by everybody has
facturers,
this?
in
have
we
Ours
every
end.
in
output does not seem worth while.
in the-market.
has the
produced
to. an
the economic world about us a marvelous
Some
and
The farmer
matter what his special line,
ai*e simply
today
of
profits
among
hand
a
what the world
our
are
interested in the money return
going to get for his wheat.
business man, no
same
more
receipts
failure.
is interested in the number of bushels
that he is
which
weighed and
are
and
money
buying and selling is thus the great disciplinary
as
simply that all^the
means
economic life
our
of
losses determine
money
goods
had
crease or
economy."
of
terms
humanity needs or thinks it needs
is stimulated until a point
command.
in
welfar^; and at the same time there is a division
its price goes up.
we
usually spoken of
in the market where ends are
is measured
success
through prices.
because the greater our
Our present economic system is
and
money
Back of the strain
really being carried on the process of producing
these
have
the
incomes the more of the real goods of life
money
exchange of goods.
all the real goods that
make money in the sense
industry under very trying and discouraging cir¬
cumstances.
sense
there is
of buying and selling for
process
of competition
calculated
few people not in the employ
and
the
haul
and
mo¬
one
Not be¬
Caruso and the demand for tenors is
one
there is, then, the
us
Why?
equal sum.
an
Day laborers are more plentiful.
Behind
indispensable than in that
Of course, we have to
manufacturing it,
can
the
obscured
observe the economic life about
properly, because only a
of
A day la¬
our
is oftentimes
of the Government attempt to
their
gets $3,000 per night.
working on an army cantonment may have to
field is clearer insight into the funda¬
our
of
«
money.
Caruso
himself.
Caruso's labor is more intense, but simply because
inwardness
which, apparently, obsesses everybody, is the desire
make
big supply on hand can get a big return
a
four years to earn
real
finance.
we
tive
With the price of his product high
borer not
with money in all
deal
the
mental economic process more
war
high price.
a
A large demand relatively to supply
work
to
we
that
process
no
terms of
supply.
the fellow with
for
What causes
cause
are
discussion
vision.
to
means
The
itself as in what money will buy.
economic
of
demand and
everybody else, is really interested not so much in
money
That is why the farmer is so
We explain values or prices in
value?
high
The Government,
to an end.
means
a
higher the value that the
greatly interested in the price of his wheat.
essential to that highest de¬
are
But the
them.
,
rarely as high as we should
places on our goods or services the greater, as a
rule, our incomes will be.
but what it really
and munitions, and a host of other specialized
of wealth
have
to
market
In first in¬
ships, supplies and equipment for the army and
navy, guns
money
like
little closer we see
a
something else.
stance the Government wants money,
forms
afford to buy depends upon what we
Our incomes are, of course,
enough.
that
we can
get in selling our own products or services.
even
compulsion,
supplies
that
of
force the production
needed.
our
No government
friends,
the
enemy,
enough to "put over" such a program.
of the addi¬
on
is
earth,
today
not
strong
Hence reliance
get the largest return for himself only by serving the
must
rest.
taking the system as you find it. and offering prices high
be
placed mainly
on
the second method, namely,
enough to induce the necessary production.
the
create
Of course,
lines,
and
at present in shipbuilding, the need may be so
as
sembling forced production
of
pecuniary control is relied
A
serious drawback to the
and
accepted as
are
that has
one
system
bearing on the question of
savings, is that individuals pursuing their own ends com¬
This competition in purchas¬
pete with the Government.
ing is not
materials
it is for the
for finished goods as
much
so
Iron and steel,
entering into their production.
coal, lumber, leather and cotton are commodities funda¬
mentally important to the Government for war purposes,
they are needed in the fabrication
and at the same time
But
multitudes in the markets.
vidual
wants
Government
cannot eat our cake
we
and
supplied
all
the
at
it
that
for
fundamental economic aspect of war
war
purposes.
That is the
Saving by
savings.
Government of the
the individual and the transfer to the
cutting down of the individual's
saved means a
amount
the
time let
same
needs
consumption must be cut down.
Individual
indi¬
We cannot expect to have all our
have
purchase, a withdrawal of his competition with the Gov¬
Curtailment
ernment.
consumption
of
materials,
raw
more
means
individuals
by
It is sometimes said that we can meet war's demands
Without deprecating in the least
the lihes concerned
efficiency in
can
possibly
promise.
Some lines must positively be curtailed in order
that
needed
the
much
hear
we
lines
may
" business
about
as
men
cannot pay taxes and the
usual."
argu¬
is superficial and
The Government does not want money.
dangerous.
wants materials and
Business
supplies.
It
If these are to be used up
usual," where does the Government come
in " business as
in?
The
usual, busi¬
Government will lose
This sounds plausible, but it
revenue.
Then
developed.
fully
be
ment here is that unless business goes#on as
ness
usual must yield to the unusual
as
demands
Assuming this to be true, how is the Government going
the necessary
raise
two
that
means
funds?
Taxes and loans are the
Both
themselves.
present
taxing and
borrowing serve to place in the hands of the Government
a
of
fund
purchasing power.
The question of taxation
beyond our immediate province.
fund
of
method
of
a
important, lies
borrowing, while interesting and
versus
purchasing
rely
power
on
the
purchasing
of
the
real
production
the
inducing
Both means of raising
goods
From the point of view of conducting the War
wanted.
successfully the question of prime importance is which
the two
of
methods
production.
mum
of raising
Our
funds will
rowing.
be forced
seems an easy
voluntary.
or
way
But it is
another.
shows to
the
sold
expedient at
one
time
expedient' which all experience
by
the
are
raised through bond sales.
Government
The absorption
avoided.
may
The
be disposed of to
The
of the bonds by the banks is to
banks
can
normally
take
the
bonds
only by extending their credit further than would other¬
wise
be
fixed
other
incomes
response to
comes
are
Salaries, wages and
ordinarily do not advance in rapid
rising prices, and the recipients of these in¬
therefore made to suffer.
Credit extended by
curtailed
be
to
banks to private individuals might
exactly
the
degree
resent
no
inflation.
net
the
But
/
it
that
made
was
This would appear to rep¬
available to the Government.
result of such
an
of the businesses
be disastrous, and not unlikely, to some
which the Government was expecting to depend.
on
normal
confidence
of
unsettlement
like
throwing
The
be so great that
would
the
be disturbed.
It
working of production would
would be
box..
ar¬
curtailment of credit to private business would
bitrary
monkey wrench into the gear
a
•
.
Absorption of the bonds by the general public through
the only safe reliance in war bor¬
The first effect of this is to cut down the pri¬
rowing.
purchasers' competition with the Government.
vate
a
of
tax
my
In¬
the
<pase.
In
other
words,
the
banks simply
If I save $100 out of
equivalent amount.
an
income to pay a tax or to buy a bond the fact remains
have
I
that
$100 les^ to spend on myself.
that I own
power
one
buying the bond is that I'll grumble at the
and do the otherjwith not a little
while the
the
satisfaction.
Hence,
absorption of the Government's bonds by the
themselves tends to
banks
to
the
The only difference between paying
amount of involved.
the tax and
Purchasing
control is simply transferred
or
My competition is diminished by
Government.
the
available
result in
addition to
a, mere
by means of which
purchasing medium,
competition with private
the Government is thrown into
buyers, the purchase of the bonds by the public out
results
savings
in
diminution
sponding
of
of
the diversion of purchasing
tbe Government, and
from individuals to
power
individual
a corre¬
Moreover,
buying.
prices and real incomes are less seriously disturbed.
Of
course,
it
may
be
for
necessary
individuals
the
subscribing to Government bonds to borrow from their
order to pay their
banks in
subscriptions, but it is one
thing for a bank to make an advance
from two to six
months in order to
to a customer for
enable him to buy
twenty year bond, and it is an altogether
for
the
bank
buy that bond
to
the bank has tied
the other
case
an
tion
case
up
Itself.
by
In the one case
its resources for a few months; in
for twenty years.
Moreover, in the one
the amount involved,
whereas where the bank
particular individual is responsible for
consumption
curtailing his own demands, and individual
is "not cut down
until the Government uses the purchas¬
ing power obtained to
Paying
too
for
seriously
in
the
outbid private purchasers.
bonds out
of current savings has other
If the war can be financed without
upsetting prices and the relation between
prices and incomes,
ested
war
the public is likely to be more inter¬
and
there
against unavoidable war costs.
of the first
The
two
a
different thing
individual has obligated to curtail his consump¬
marked advantages.
general public, or they may have to be taken by the
banks.
be
an
The issue of paper
be stupid, unjust and costly.
Voluntary loans
bonds
Furthermore, changes in
prices do not affect all things alike.
buys the bond no
of raising a forced loan, and
most nations have resorted to this
or
what
•
Loans may
money
permit maxi¬
Government has* adopted
to be a sane combination of taxation and bor¬
appears
relatively high prices because of the undiminished com¬
petition of private purchasers.
current
of the war.
to
things concerned,
Government is forced to pay
savings, the effect in this direction is just the same as
the face of the present demand for
ships, munitions, etc., there is required much more than
increased
but for the time being the
deed, in this respect, if .the money comes from current
yet in
important,
This
In the long run advancing prices
reflection, that while increased efficiency is
moment's
a
from the banks
and there, in competition with
apparent, on
for increased efficiency it must be
the call
All that the Gov¬
tend to stimulate the production of the
voluntary saving is
Government.
by increasing efficiency.
of anything
more
or
need.
do with the credit obtained
can
tends to boost prices.
supplies, etc., for the
more
wool,
or
Government may
is to go into the market,
fashioned to meet the wTants of the
of the host of things
and have it too.
,
lumber
more
private buyers, bid for the supplies that it needs.
upon.
simple purchasing method,
distinct
a
ernment
matter of
a
But in the main, even in war times, the
coal,
else that the
palpably urgent that commandeering and something re¬
course.
But the creation of additional
purchasing medium does not of itself imply more iron
Then in some
Everybody wants to do his bit.
purchasing medium which is put at the dis¬
more
posal of the Government.
pecuniary motive is usually reinforced by patriotic
emotion.
199
SECTION.
BANK
SAVINGS
will
be
less
resentment
Similarly the possession
bond is a strong stimulus to continued thrift.
immedate
problem
presents
itself
therefore
in
aspects: First: IIow can the people be induced to
BANKERS'
200
save?
And, second: How
their
savings for the
of
People can be induced to
stand
the
they be persuaded to offer
the most resistant.
the
can
use
their
government?
necessity for it, and when at the
bonds
fidence
in
only when their interest and their
the
and
government
its
cation.
The
savings
represented
public must
by
All
is
what
made
be
wanted
and
those
in
is
It
the
made
really helpful.
machinery
now.
the
future
In this education
should
be utilized
They
have also
an
reflection
savings
that
is
Our
clientele,
and
not
to
one
buy
tries
some
to
war
that
say
our
farmers
patriotic, but it is
are
the basis of which American intervention
on
of
no
the broad humanitarian
justifiable
them
seems to
telling tales out of school
classes
sav¬
as
This will have
when
he ought
They
to
participation in this
little vague.
a
to
that
say
It
larger
a
our
than is to be found in other
war
the population.
This is bound to affect the
cordiality of the reception which the bond salesman is
understand the prob¬
enormous
indirect,
that
be taken
to
proportion of our farmers is unsympathetic toward
going to
are
them
in the war is
present savings
our
farmer
on
philosophy
funds
addition
currently
the utmost.
to
ings banks have the experts who
lem/
past
by
though
even
individualists.
that
or
ordinarily
Then, too, the conditions under which American
intense
no net
farmers keep books, and hence
have
farming has developed has tended to make
edu¬
see
owned
already deposited in the banks represent
bonds.
con¬
great
means
this
be educated to
securities
is
purposes
influence,
an
persuade the
They will buy gov¬
enough to determine their choice.
to
time
same
Few
•
declarations
own
final in making income tax assessments.
only when they under¬
save
they think the object worth while.
ernment
CONVENTION.
likely to receive at the farmer's hands.
Again, while the
American
they
been
'
in
are
strategic position to make it easy for savings
a
to continue after the war.
But the thrift
telligence.
Every possible
but also
on
he
should
pends
also
in
An
of
can
a
with
Ford
understand,
can
A young man
certificates.
selling
he
him
salesman
auto¬
or
would
thought that there
Packard.
a
not,
was
any
the
possibility
chances
of
that
are
talk to
we
buying
he
only the ceatificate.
will
of
care
we
sav¬
certificate,
the
bond and
successful
a
War
his
the
to
Where does the money lie for my article?
ask
In
ourselves
this
mind/
the
same
connection
agricultural.
Not
selling
question
in
selling
bonds.
war
the United
States
are
the
farmers
predominantly
only that, but prices of agricultural
allowing for
is
our
heve
benefited
correspondingly.
system
unnecessarily costly to farmer arid to
the
farmers'
incomes
have
outbreak of the Great
money
bond
the
special
are
farmers.
All
sale
We
it
may
of
in
Behind Tnoney
3.
The
4.
War
/ '
I
(■
"
.
*'
'
"
'
.
' '
-
'
•
.
•'
'
/
has
been
I
us
land
a
he
The
a
speculator
In any
uncommonly
subscrip¬
meagre
Liberty
has
at
that the
tiller of the soil.
a
first
fact.
Bond issue is
Consequently while
going to
business.
be
especially
an
sum
our
an
farm¬
hard job
to
categorically what
up
we
tell
of
goods
goods and supplies.
and
supplies
is
regulated
through
requires highly specialized production
quantities.
the
both
to kinds and
as
5.
Our
The government is raising the necessary funds partly through
7.
In
government
is relying
the purchasing
on
rather
scription method of getting its supplies.
but
more
its
8.
The
largely through loans.
purchasing
government
but
the
the
can
sell
encounters
competition
its
have
bonds
to
than the
con¬
I
taxes
<
government
which
banks would
should
the
to
inflate
competition
be
public
their
cut
or
from
down.
to
the
banks
credit.
Popular subscription is the sounder method economically because
*
A.
Private
B.
Prices
and
Thrift
is
Popular
competition
real
subscription
A.
Education
Proper facilities
C.
11.
Good
Banks,
with
incomes
permanently
B.
.
as
i
6.
us
are
•
.
costs lie actual
production
to
campaigning
•
•
or
selling
operation of market prices.
alike,
that in the matter of taxation agricultural incomes
'■
is costly
C.
taxation
the
in conclusion
War
handsomely since the
difficulties
farm,
Extremists have told
calculations.
this
is
2.
Since the farmers have the
students
his
have been trying to present:
they ought to be good bond prospects.
there
improving
farmer
farmer's
but
the farmer has either needed all:
on.
farmers to
of
govern¬
since the
ever
bring the fruit in.
10.
Yet
among
National
our
every
ing class offers the most fruitful prospect for the next
9.
risen
.War.
which
consumer
bond.
told
are
security purchasing has entered but
illustration
years,
Even
of marketing,
we
country have tended
for
private purchasers
wasteful
France
much as he has been
as
event
In
cam¬
We have to
products have soared enormously in the last few
and
security
a
lodgment in the national banks,
American
average
just
important fact is to be borne in
an
Incomes in
never
buy more land in .the hope of
higher price later
take
good sales manager asks himself the question:
a
find
to
capital
spare
wanted
the
side-step
be
Civil
1.
paign
has
government
a
this
in
apart from that fact,
by
that
This would be stupid salesmanship.
planning what is to
bonds
into
savings
a
ment
tion
job
population.
holds
peasant
we
The
prospective bond buyer
a
agricultural
We must talk bonds
When the bond issue is taken
If
de¬
Selling bonds has
selling shoes, furniture
if
Pro¬
Much
after the smaller customers and offer them
go
In
such
hand now is to sell bonds.
on
ings certificates.
of
for
ambitious automobile
the limit.
to
made
on good salesmanship.
man
chance
have
be
common
mobiles.
a
|
in¬
of savers must be ap¬
group
basis that he
buy several ten-dollar savings certificates.
can
offer
with
on
week may not be able to buy a bond, but
a
vision
much
a
basis that will interest him.
a
earning $15
on
generally
purchasing public, this has been particularly true of
campaign must be carried
pealed to not only
public
is
must
government
less
is
cut
down.
seriously interfered with.
stimulated.
requires
necessary
the
are
current
to
be
teach
saving.
people
the
need.
provided.
salesmanship is essential.
particularly savings-banks,
have
special
responsibility.
SAVINGS
Banker and Farmer:
'Tr..
By
Several
years
T. Hebbick,
the Plymouth
ago
ment
and
employed
a
young
President Society for Savings,
Mr. Ware
Com-
County Trust
was
Cleveland, Ohio.
more
who followed his example have exceeded that figure, and
from
an
made Bridgeton
1,073 farmers within the company's ;
famous.
loan in its locality to
a
work, and for pig, cattle and milk shows.
to
Among the direct results were the distribution of 569
of fertilizer,
car
one
co-operative
the
and
seed, and 10
was
sold
to
wholesale
at
much
a
they had formerly been paying..
the business
the
to
was
tention here.
cheaper price than
The
farmers.
uate of
grateful
so
for
her helpful
and domestic science that
demonstrations
About
the
the
opened
milk
land
12
in which
a
farmers,
whose
to
15
agricultural
miles
development
Bank of
wide and 50
miles
long,
habits of industry
and thrift have
employed as its field agent
our
ganist of the Polish church
energetic and
educated.
at Holyoke.
He
devoted
shortage.
financial
facts and
Pole, the
them about the
their
be
duplicated
solving
of
the financial and
a
great extent
He is
his
first
young,
year
ratings.
He
to
to
But
in
the
there
now
is
in the increase of produc-
there is the necessity of feeding
and its Allies in
time of universal food
a
Financial service to agriculture has become
war.
city; that
and
For such has been the effect
on
agriculture
es-
was
a
shortage of food had become inevitable
only hastened and accentuated by
war.
With these considerations in view, the " Society
Savings in the City of Cleveland "-—a mutual
bank chartered in 1849 of which I
told
also
of efficient agriculture*
not
pecially in this country, the drift of workers from farm
.
affairs, and in finding out the
credit
an
Bankers have
of increasing population throughout the world, and,
or-
figures about themselves and their properties,
determine
to
as
so
needs and
itself to the aid of
patriotic duty, the importance of which will long out-
a
en-
getting acquainted with all the Polish farmers and with
their
country
last the
a
at-
through which al-
should
unsystematic business.
tion from the farms;
"
great many of the farms are owned by Polish
bank
means
more than prospective profit
department.
abled them to crowd out the native stock.
The
activities
Farming in this country is still to
Within the bank's territory is a stretch of tobacco, onion,
and
way
recognized the vast possibilities that lie latent
Holyoke National
ail
a
press;
your
of the other problems of the farmer,
unorganized,
•
time
same
Mass.,
Holyoke,
many
are
they have paid all her expenses
except salary.
These
4
the demonstrated
are
cooking
of
through the
profitable business to the banks but also because they
grad-
The farmers' wives
National
throughout the country not only because they will bring
Plymouth County Trust Company
agricultural college.
an
For they point
side the largest cities, may adapt
agriculture.
has since added to its department a young woman
Holyoke
most any commercial or industrial or savings bank, ouf-
In no instance did the
profitable to the company as
as
the
and I take pleasure in bringing them again to
charge than paid by its best city customers.
But
of
companies have had wide publicity
exact of the farmers for its services a higher
company
of certain prescribed
to use the money according
Bank and the Plymouth County and Cumberland trust
of
of hay and alfalfa, all of which
at
any person
agree
The agricultural activities
two cars of lime, 11 cars of grain
cars
farmers
the
buying
The Cumberland Trust Com-
its directions,
high-grade pigs and 163 pure-bred cattle, the building of
and
acre.
has done the financing, and it stands ready to grant
pany
qualifications who will
silos,
made
He has
Other farmers
graduated
The first report showed
and orchard
■
successful.
over
territory reached for demonstrations of cooking, canning
six
than
$700 net annual profits to the
agricultural depart-
an
man
agricultural college to run it.
30 meetings held and
201
and Beef
Mybon
of Brockton, Mass., opened
pany
SECTION.
Producers and Dealers in Bread
v.:
,
BANK
am
for
savings
president—has
un-
dertaken to do in its district
a
particular about the advantages of dealing with the Hoi-
the banks I have mentioned.
Its officers have long stud-
yoke National Bank.
ied with sympathetic interest the problem of financing
principles and objects of banking, and in
The greatest
money,
want of these Polish farmers
the farmer and the ways in which the city bank
ready
their crops
harvest, in
for good prices.
case
can be
of service to the farmers of the surrounding country dis-
with which to get cash discounts for fertilizer
and to live from harvest to
to hold
was
work similar to -that of
tricts whose
they wished
interests are one with
those of
the
city
The bank supplied
dwellers.
to
the
after
lish such relations of mutual helpfulness between the
they had paid the fair interest rate,
was
satisfactory
Society for Savings and the farmers -of the counties in-
the
money.
that they began
under the
their
work more
farmers,
so
bank's
easy
wise
advice,
and their homes
more
automobiles and modern devices of all
the farmer has a credit value separate and distinct from
that of his land, and in setting up special facilities for
motors,
department;
for its rule is that
no
loan
shall
appraising and utilizing that credit value.
be
more
of the bank's officers
or
thought of the banker to whom a farmer
Bridgeton, N. J., the land is sandy and quickly
dried out.
Its chief requirements for successful cultiva-
tion are fertilizer
pensive.
This
and irrigation,
retarded
both of which
agricultural
are
development,
spite an excellent situation in respect to markets.
Mr.
ago
Company of that city, bought
heavily and put
this at
de-
A few
Ware, the treasurer of the Cumberland
years
Trust
He did
ex-
his
bilities and to set
an
own
an
a
small tract, fertil-
overhead irrigation plant
expense,
example.
on
it.
in order to test possi-
We all
are
familiar with the real estate mortgage; it is the first
agents.
Around
ized it
and
Holyoke, sprung, it seems to me, from recognizing that
attractive,
granted unless the borrower be personally known to two
or
-
' The agricultural successes, especially at Brockton
for things to make
The bank has been obliged to enlarge its agricul-
as
kinds.
tural
gain
to borrow, not only for necessities, buteluded in its loaning area.
also,
such
financial
The
The new experiment is an attempt to estab-
money.
*
rather
But the mortgaging of land is
than
a
banking function;
it
is
may
an
come
for
investment
altogether
too
long an operation for circulatory funds,
So banks,
without investment funds,
upon
taking
a
mortgage always keep in view the possible necessity of
selling it, and must exact security considerably in
eess
ex-
of the loan in order to make it readily marketable,
And the former, when once he has given a mortgage
on
his farm, rarely returhs to the bank for help, unless it
be for a renewal or another mortgage loan.
Thus mort-
CONVENTION.
BANKERS'
202
might be called the American plan—one that is easily
The stupendous exist-
gaging interferes with banking.
exhausted
has
have
credit
farmers'
the
done
much
dislike of the
trust and
mutual
But
experienced
is
and among tenant farmers with
of their own,
where the banks could do the most good.
Such
no
farmer might have a fine crop, but no money
a
Or he might want money for carrying himself over a
winter
severe
or
season,
equipment and supplies,
his
farm
the
next
without
crop
quires
for
his control
that,
this
along
and marketing.
more effective
ment officials
into
the material
supplies
and
he
\
the
as
motive that is far
the altruism of idealists and profes-
various forms of usury.
stock-raising or stock-fattening,
If the territory be suitable for
the bank,
through
its
department, imports high-grade or pure-bred cattle and
spite of all this, the mortgaged farmer, the tenant
even
established,
than the perfunctory service of Governor
sional philanthropists.
farmer, and
ac-
It urges each
All this, of course, helps the banks as well
deeper poverty and too often succumbs under some of the
In
It
and
It explains to the farmers the simple
this relationship has been
when
farmer,
The very exi-
struggles
he
himself,
the farmers,
better his condition by a wise use of his credit.
may
of his affairs makes him look like an undesirable
Realizing
spe-
intimate knowledge of their financial affairs
an
of finance, cultivation,
it, while his other
of
mortgaging for the full amount needed.
risk.
an
farmer to become a regular depositor, and shows him
for preparing and planting
personal property is perhaps too inferior in quality for
gency
in
by
'principles of banking, and of using improved methods
bod
He could not. mortgage his
spring.
losing
consists
managed
The department
expert.
acquainted with
and necessities.
for replenishing his stock,
or
or
agricultural
gets personally
for holding it during a drop In prices.
or
department, preferably
them and about the possibilities for improvement.
land
gaged fgrms,
morketing it
plan
The
out.
carry
It gathers up all available information about
territory.
the vast army of farmers of mort>
among
to
cializes on the staple agricultural products of the bank's
misunderstandings.
it
spirit
establishing a
for the other, and give rise
one
public
and
to
keep the farmer and the banker apart, and to breed dis-
to
requires intelligence, persistence,
described, but which
ing mortgage indebtedness and the general belief that it
The great Bank of France did this
pigs.
the insolvent farmer as a rule has self-
thing
same
respect, a love of family, and a regard for the good opin-
for ten years through one of its branches, and, without
ion of his
losing
neighbors, and desires to get out of debt and
for character and
good standing; and this, if vouched for
by acquaintances,
But how
you
was
devised
become
to
known
as
ever
" Scotch
credit."
banks send agents to wherever the
homes, meetings and fairs;
This may
individuals
For their capital
who expect
pie to
to
practical
are
as
well
good
as a
for
the
community.
Scotch method, they improved
innovations
ited
nature.
selves
and
of
by
of
a
marked
This'they
modern
bringing
are
govern-
making
benevolent" use of the dollar, and
thrift and does the
where it stimulates
putting it
most
were
public institutions, because they
or
And
upon
in
disinterested
have
developments
associational
adopting
the
it and added certain
done
and
by
public-spir-
availing
of agricultural
action
and
them-
late it will
agricultural
of
With this general object in view, the bank
co-operative
buying
their
associations
Associational organization,
means
.
for
and
co-operative
finances
and
formed
for
co-operation,
or
only
alternative
to
mar-
helps
to
purposes.
is
can
without depriving the
adequate return for his products.
The
such
through which the cost, of living
the consumer,
and
the
only
be reduced
farmer of
an
v
co-operative
organization
is
public agencies aided and managed by governmental offcials.
But when once
such
established, it becomes
a
socialism still
on
further
a
governmental
agency
and
in
011
other
directions.
Has not Government aid and intervention already
far enough?
is
precedent for extending state
gone
In my' opinion, the point of saturation has
almost been reached
;•
and I believe a wholesome reaction
would set in if the banks would render all the service
co-operation
they are able to agriculture, and thereby show the advan-
brief, there has evolved from these activities what
improvement
any
agricultural
or
science,
into play among farmers,
In
from
keting among the farmers,
private
and must be allowed dividends.
far greater degree than if they
a
mental
benefit
manage
ail belongs
more
encourages
also be the motive of the banks at Brockton
Ilolyoke.
mort-.
conditions.
In this
Nevertheless, the two banks are benefactors of the peo-
a
derive
they extend credit to them
they greatly increase their own business, while doing
and
and
one 01*
In addition the bank takes the lead in all
invaluable service to agriculture.
an
pledge
taking for security
affairs in its territory, knowing that soon
farmers are—to their
deposit bis savings with them.
to
discarding
time,
on
run
411 this it sells
the farmer's notes indorsed, if possible, by
Scotland the
In
farmers
If the
out and
worn
of his friends.-
as
the indorsement of friends, and, in return, require
upon
the borrower
way
success
in the territory be
gage wherever it is safe to do so, and
century ago,
since with such
the
to
This simple method
by banks in Scotland over a
and farms
down, the bank buys fertilizer and seed.
get the farmer to come to the bank?
can
cannot; you must go to him.
and has been used there
1
land
becomes a basis for bankable credit.
You
cent, employed thousands of dollars in improv-
a
ing beef cattle in one of the districts of France.
That is to say, he lias all that makes
in the world.
up
tages
of private
forms of
enterprises
governmental
and
co-operation
institutions.
over
all
SAVINGS
Land Banks and
Leonard G. Robinson,
After
Farm
The
class
Federal
reasonable
most
suggestions
were
received
legislation
Federal
to
credits
largely
was
based on
the subject
on
of
it
is
ever
class
an
lation
it
because
considered
own
the
that
our
of
investment
total
Fault
agricultural. industry
the
railroads
make
of the farms
per
Com¬
who claimed
banks
to
was
in
difference
of this,
Even
other industries..
a
far better
able
to
man, or
farmers than to railroads
too,
large
industries
have
been
the devel¬
need
for it,
but that it was the
only way that the need could have been met.
This is
precisely what the Federal Farm Loan Act has done.
our
other
pean
It
system of investment banking for our
industry
that
has proved
satisfactory
for
industries, and sanctioned by the best Euro¬
experience in agricultural finance.
which in many respects is de¬
,
for every
This criticism,
distinguish between two
Financing the solvent farmer, that is,
the farmer who can offer two
dollars' worth of security
dollar he borrows, is a financial problem pure
to
All the solvent farmer needs is the machin¬
simple.
ery
in a position to compete
place him
with other
solvent industries for the world's surplus funds.
readily
growth of investment banking in this country and
agricultural
types of credit, and
the insolvent farmer in general.
distinct problems.
savings banks, which are
popularity of corporation securities attest not only
a
the height
Europe, which has made consider¬
arises from the failure to
The
has established
credit from funds
provision for financing the tenant farmer, the landless
our
other
was
To
.
tenant farmer, the
there
little
very
banking.
the two forms of credit in one
up
Still another criticism,
designed
They can no more extend
obtain the required financing through
the fact that
tie
commercial
in agricultural finance, has drawn a clear
opment of a new system of banking—investment banking.
the
ordinary
from
practically no instance are the two covered by one
and
and
It differs
operating capital.
legislative act or handled by one and the same financial
position, to make mortgage loans than or¬
railroads
involves
institution.
adequately.
Our
capital.
Short term seasonal credit, on the other
security.
principle
in
between
dinary banks,' fall far short of being able to supply this
need
fixed
serving of sympathy, is the fact that the act makes no
mortgage credit to
in
due
Land credit,
Their working capital is de¬
country.
or
The
it is
is that
involves
credit,
it does not
credit.
rapidly growing
largely from deposits.
long-term
that
seasonal
line of demarcation between the two
banking and commercial banking.
primarily to answer the needs of the
rived
in
act
the
term
of this criticism
mortgage
term
of financial heresy.
capital and operating capital, that is, between in¬
Our National and State banking systems were
with
short
raised by the sale of bonds would have been
Apparently neither the friends nor opponents of the
the
for
problem of investment finance and can be met
able progress
appreciate
found
act and to have extended short term
capable of
perfectly plain that they did not—be ac¬
to
also
have attempted to
cused of wilful discrimination.
seemed
a
fixed
understandable
be perfectly
long
is
hand,
supplying the farmer with all the credit he needed should
commerce
a
only through the issuing of long term bonds, based upon
$40,000,000,000, while the
it is quite
is
provision
ignorance of the principles involved.
an
It
is
them has been estimated at $6,000,-
this contrast in mind
vestment
Act,
on
The weakness in
that it benefits the farmer.
charitable view
or
$17,000,-
000,000, that is, only 15 per'cent, of their valuation.
fixed
Loan
foundation, is class legislation for the
to
cent.' The physical valuation
in the country is
total indebtedness on
measure
Farm
basic industry
our
most
in this
bonded indebtedness of these railroads
$12,000,000,000, or 65
it
industries.
benefited is not
limited experience.
fact
of the
Commission for 1915, is, in round figures',
—when
these
logic is too patent for argument.
The
the
Federal
the
to place
reason
country, according to the report of the Interstate
that
But
designed
this
underfinanced, a few comparative figures will
been
With
of
benefit
sole
proof
000,000;
the
it in
the scale of one's
merce
for
attempt to measure this great country of ours
by the yardstick of sectional interest, and to weigh
suffice.
is
material.
financial
has
tendency to look at this act
a
The fact that those engaged in them are
sound
In
equally
legislation.
conditions, and judged wholly by individual experiences.
an
can
child throughout the coun¬
class legis¬
was
was
Congress or State Legis¬
No legislation
Legislation affecting other industries is not
Placing the most
expressed only a, point of view based solely upon
be¬
entirely different angle than other
which
It
of
out
came
legislation.
There seems to be
local
it
Act is class legislation
directly designed for farmers, then all leg¬
was
try.
interpretation on this claim, it is evident that
charitable
in
half times as much.
a
from
the claim that our
all that it was entitled to.
must
$750,000 for each bank,
was
Federal Farm Loan
the
latures
industry with all the credit that it needed; or,
least,
nearly five and
islation that
with
existing banking facilities adequately supplied our agri-'
cultural
Federal
the
it
affect every man, woman and
Opposition
at
in
of the Land Banks
case
cause
suspicion.
rural
provision,
same
included
If
legislation, but
portunity of shaping the course of the
their
the only dif¬
or
hostility not only deprived them of the op¬
open
Reserve Act,
played a specially statesmanlike role.
the banks have not
Their
of the Land
The
while in the case of the Reserve Banks it was $4,000,000,
it all
Through
recrimination.
with
met
was
called
States
also
has
remembered,
the
On the other hand, ob¬
by its enemies.
criticism
been
that the United
Act
be
was
extravagant claims by its friends were matched by un¬
struction
Loan
ference being that the possible maximum subscription
On the one hand,
from opposition.
Farm
for the reason
Government subscribed to the capital stock
the
by
The rural credits movement has suffered as much from
as
Federal
legislation
Banks.
land,
the
signature, on July 17, 1916.
over-enthusiasm
Springfield, Mass.
President Federal Land Bank,
the
and
law. of
the
became
Act
Congress
by
passed
was
Loan
President's
just
Savings Banks
agitation of five years, the Hollis-Moss rural
an
bill
credits
203
SECTION.
BANK
be
man, or
But the
the man who has no
marketable security to offer for a loan, cannot
financed
on
farmer does not
is
landless
rather
a
the same
present
a
basis.
In
fact,
the
insolvent
financial problem at all,
social and political
problem.
ITis
That there is
great need for a system of financing this type of farmer
has been brought
national life.
I
to
home to us by the present crisis in our
That the problem will eventually be solved
have not the
remotest doubt.
But what I
am
trying
impress uf>on you is that this problem is entirely sep-
BANKERS'
204
distinct from the problem which
arate and
CONVENTION.
the Federal
I
glad
am
that looked
cles that
I
inform
to
be interested to
will
that
sure
you
difficult have been solved, and the obsta¬
so
to convey to you
mean
is, that in
practice the act has proved fundamentally sound
on
the whole fairly workable.
investment
their
Evidence is
accumu¬
for
made
were
schedules
the
somewhat.
But
we
savings banks, like the Sabbath,
people and not the people
How the savings banks
savings banks.
for
the
to meet the
are
situation is not easy to say at the present moment.
One
overcome.
by this that the act is perfect—no legis¬
lation is—but what X
and
am
know, that many of the problems
appeared insurmountable have been
do not mean
actual
I
and
you,
revise
must bear in mind that
Farm Loan Act has been designed to solve.
what
of
the
extent
tization
questions
discussion
under
is
today
savings banks will be able to make
At
loans.
the
outset
I
want
to say
that there
has been altogether too much loose talk about the
tized loan.
to
amor¬
amor¬
Efforts have been made to prove mathemati¬
lating that the best opinion—among bankers and farmers
cally that by the grace of the amortized loan, the bor¬
alike—-lias
rower
eral
crystallized into the conviction that the Fed¬
Loan
Farm
measures
Act
is
has been amended
will
continue to be amended
may
demand.
go
experience find practice
Had it not been for the fact
same process.
in
measures
war
as
aside of all other
Congress necessitated
meantime, the Land Banks
by this time.
a
year
In the
making fairly good prog¬
are
None of the twelve Land Banks
ress.
shunting
a
legislation, the Farm Loan Act would
have been subjected to amendment
half
of times, and
The Federal Farm Loan Act will have to
through the
that
life insurance agents
This
number
a
nothing except an act of Congress to begin with.
They
-
obliged not only to perfect their own organization
were
but
to
organize—what
National
banks—the
their figures
might
called
be
their
member
Farm Loan Associations.
for the month of August
And yet,
illuminating.
are
of
is
his
on
been
one-sided.
in
the
has by
system
Bankers and
underwriting bond houses sold
eral
Loan Bonds for
Farm
bond
alike
investors
erly shown their faith in the system.
means
no
have eag¬
The syndicate of
July delivery before
issued—and this does not include the
single
a
policy not only
endowment
policy,
as
know,
we
is
the basis of the number of dollars, if
on
$1,000 in twenty
say,
There is
years.
in the endowment policy.
The amortized loan is based
It is
is
endowment
an
that in
special virtue
no
The virtue lies in the
that is allowed to accumulate at
the identical principle.
on
policy reversed.
the endowment
reserve
compound interest.
The only difference
policy the insured allows his
premium to accumulate at compound interest, and gets
the
face
at the
the
on
receives
is
That
;V;U:;V
end of
certain
a
with
interest;
about
in
The amortized Joan
interest.
hjs
pays
is
the
to
In
-
other
the
there
all
the
he
pays
amortized
:V;'■
'■■■
-
period,
basis, until his payments
same
borrowed
amount
he
interest.
try.
at the
loan, the borrower gets the face
beginning of the period, and
figured
the
case
loan.
policy
the amortized
of his loan
one
his
of
while in
$15,000,000 of Fed¬
over
in favor of the endowment policy.
placed at compound interest, that is required to make up,
equal
confidence
An
money.
loans
This
piece with the argument often made by
a
simply figured
During that month they had received applications for
aggregating $23,988,659, and had approved $19,671,;-
no
nothing for his life insurance, but gets full interest
pays
annuities,
923.
that he had
or
repay, or what not.
It is claimed that the insured under such
in existence
were
Unlike the Reserve Banks they had
ago.
saving in interest,
a
principal to
The Federal
for improvement.
room
effected
constructive
most
passed by Congress.
ever
No doubt there is
Reserve Act
the
of
one
'
is by no means new to this
It has been employed in
form
one
coun¬
another by
or
subscrip¬
building and loan associations and by other lending insti¬
While all that I have said is, without a doubt, of gen¬
trary to savings banks principles to prevent their making
was
tions received
eral
interest
public
what
are
you
tutions
directly by the Land Banks.
well
as
interest
to
bankers,
amortized loans.
is
how
They cannot make these~ loans for
of
the
Federal Farm Loan System will affect the future of the
:
how tremendous
you
force the
a
But there is
deposits payable
how
•
.
It is needless to tell
There is nothing, to my
years.
interested in
as
probably most
savings banks.
for
demand,
on
one
long period.
a
I
so,
or
otherwise, for
a
longer period than five
years,
how great their influence has been on the economic life of
requires
this country.
through the medium of the long term bond.
excellent system of savings institutions.
on
an
have
them
made
truly banks of the people.
In
assem¬
bling the nickel, the dime, and the dollar of the small
and
saver,
making them available for the railroad, the
farm, the municipality, the state, the nation, they have
accelerated
the
growth,
and
progress
welfare
of
country, and have contributed to the well-being of
man,
The
in
savings banks
born
of
a
need,
have grown
lic.
is
amortized
raised
as
obvious, therefore, that savings banks
It
can
never
prove
serious competitor of
a
established
institutions,
There is
banks have
their
no
in
contributed
the
way
or
cannot/ stand
in
the
way
agricultural progress.
designed for that purpose.
They
They
simple purpose of helping
were
were
This
simply not
designed for the
the provident and
money
Investments
far
as
the
nevertheless
budgets of
in
the encouragement
is merely
farm
an
constitute
some.
a
as
very
These will
Their
thrift.
The
farm
mortgage
retire from
Perhaps
of
savings
loans,
they
that investment
the most
will
in
time
These
a
though negligible in
whole
are
important
doubtless be
concerned,
item
in
the
compelled to
making
obliged
to
field.
favorable
field
banks funds wall be the
Bonds.
be
bonds are
for
the
investment
Federal
new
Farm
unequaled by any secur¬
ity in the market for safety and attractiveness.
Under
circumstances, I gravely, doubt whether the savings
rate,
but this is
be
than
compensated by certain and absolute
more
no
great calamity.
cent,
per
interest
They will
secur¬
ity of their investments.
Some twenty of the. states have already
legalized the
Federal
Farm
Loan
Bonds
as
investments
banks and for public and trust funds.
rapidly falling into line.
tance
to
the
ment open
I think it
savings
savings banks to have this field
no
are
they are located.
The time will come,
savings banks wall
look
upon
I
savings
vital
am
of
made
are
impor¬
invest¬
time in
see¬
legal
in
We look to the
banks as our best future customers
Bonds.
the very
of
to them, and they should lose
states^ in which
Loan
for
Other states
is
ing to it that the Farm Loan Bonds
the
effect.
mortgages,
savings banks
of
fore¬
the
handed to lay by and accumulate for the future.
lending of
of
practically nothing—considering
our
of criticism.
primary function is
mini¬
savings banks, like other
denying the fact that the savings
huge deposits—to
not
the
no
the Federal
now
banks will be able to maintain their present 4
But
rule
in
are
the
influence.
loan
a
'
service, and prospered in the confidence of the pub¬
progress.
so
This
money.
Farm Loan System, and like others who are
Loan
were
term
long term
Nothing must be permitted to injure them
a
mize their
is
and child.
woman
long
The
position to enter the field of long term amortized loans.
the
every
thereabouts.
or
It is
The $5,000,000,000
deposit in these banks with the 11,000,000 depositors
With
cannot see
savings banks could safely make loans, payable by
amortization
savings institutions in the United States have been and
No country in the world has had such
con¬
thing they cannot do.
nearly
or
mind,*
sure,
for
Farm
when the
the Farm Loan Bonds
as
best and most dependable of their investments.
SAVINGS
BANK
SECTION.
205
Savings Bank Bonds in Wartime
La whence
By
A
Chamberlain,
of
Hemphill, White
brief title, or topical index, seldom can be
properly
definitive.
What
you
interested
are
in,
trustees
as
of
funds invested and to be invested in savings bank
bonds,
—what I
to
the
economic
war-created,
Second,
to
the
possible
cessation
the
of
distributing
Third,
the
due
to
of
cer¬
porate American borrowers in their duty of passing in¬
and
terest
investment
due
Exchanges
built
by
up
investment
rates
the
and
due
the
and
the
the
to
bond
impairment
prospective
in interest
of
the
of
have
These things interest us,
to
or
the
ratio of
investment
analogies.
But they
welfare of
the
to
us
quick—as
the
to
savings bank bonds held in America from
till, say,
on
touch
year
a
qualified to discuss the subject
this
of
I know of
no
who is.
one
earning
trial
for
$100,000
pay
intelligent understanding of the forces at work
an
creating the conditions which have affected savings bank
bonds since,, and many of you gentlemen
represent insti¬
tutions that could well have afforded to pay substantial
be
But
if
the
reasonable
tively
investment
of
is
stake
as
discussion
any
funds
this',
great as
catches
our
seemingly
for,
words
not
this
in
take
position.
a
He
of
flatulent
situation.
Gross
earnings
through price fixing,
but such
samples
ready have had of this kind of dictatorship
ing.
The
Government
live
must
of
out
as
are
Whether
assumes
(b)
in
proportion
—particularly
(c)
What
keep
practically
generation
a
resurrected
a
What
shall
lie
once
Net
profits to be
sure
may
be
working
money
business
be
profit-taxes,
His
.
interest
and
concern
amortized
any
of the bond
instalment
principal are paid before the tax collector gets
What is true
to the
as
corporations—so
conditions—is
for
fixed
periods
channels
through
which
this
far
true
of
a
the
the
affected
are
bonds
of
The
reasons.
by
economic
municipal
corpora¬
prosperity of the
on
these matters
At least until
will
or
it has
above described.
ficulty
then
the
to
the safety of bonds
impairment
that
In
of the
terest
And
in
problems—is
Savings Banks in danger
war-created
economic
us
several
or may
be
e.,
forms
a very
of
safety.
Safety of the.
separate thing from safety
the rental for the
use
of the prin¬
then
more
important than
there is
that
safety
of
the
equal
purchasing
to
the
principal.
safety of the principal involved
re-acquiring at the expiration of the loan
sum
originally lent
and
a
sum
of
equal
And there is also that safety
of principal sum lent involved in
being able to cancel
liquidate the loan at any time prior to maturity or
amount
equal
purchasing
Security
in
to
the
power.
To comment
or more
This
on
is
Safety
But
this
as
the possible
in
Liquidation
latter
involves
or
our
affected by interest
impairment of safety
these differentiations is to overlook
parts of the problem.
or
an
originally lent and of equal
particularly—price
without thought of
one
sum
Liquidation.
third problem
of
(this is called Security in Redemption
power
Safety in Redemption).
rates.
up¬
remember
the
should be expected during the
for
some
time afterward
even more an academic matter than
increased cost of
in
obtaining
ratio
of
war.
munic¬
work
new
capital
new
municipal debt
to
municipal living,
and
the greater dif¬
should
tend
municipal
to
lessen
assets.
Aiid
be it remembered that, although the same assets support
and
its
acquit the total of
a
country's corporation debts and
municipal debts, the tax collector of the municipality
(like the treasurer of the corporation)
porate assets
municipal
Federal
or
gross
debts,
Income
charges
as
or
earnings the
Profit
prior
Taxes.
But let us not misunderstand.
In moderately long term bonds safety of the in¬
is
money
or
three
relative term, like virtue, and that in¬
a
interest, i.
cipal.
of
the
of
owned by
because
have
principal is
first
considering this question let
safety is
vestments
none
then and
been this past decade of riotous
for the
Turning
There
in the growth of the nation's wealth
expressed in assessed and true realty and personalty
valuations, and
should depend on his solution of the three uncertainties
of
let up
ipal solvency will be
position he will take
heaval?
no
of
share.
safety of the bonds of private
they
as
money
shall flow.
And
has been
as
life.
loaned
•
loan
the
in
shall
money
long periods.
shall
his
al¬
reassur¬
pretty much to the tax
go
collector, but that is not the direct
the treasure chest of the Middle Ages
importance
his
of
of
all
some¬
we
therefore profits must be cultivated in order to be
taxed.
tions, though for other
—about
change
be curtailed
may
factory and the store is the prosperity of the town.
(a)
indus¬
III.
our entrance into the war will
must
decide:
decreased—
safety.
because
Problem
unlikely that
posi¬
directing the employment
one
must
any
attention,
has
bondholder—for that
more
sum.
negatively,
or
other
discussed
It is
owner.
multiples of that
the
conditions, but only because of monetary conditions
what
country last May for England and the battle fields
of
but because of decreased security buying
power,
When I ieit
France, I could well have afforded to
the
to
difficult the refunding of
maturing debts—not directly because of any decreased
just out¬
as
income
net
to
interest
has made
war
power—in
lined, particularly the latter part of Subject III: Future
Prices changes.
charges
the main
But the
to
not
am
fixed
is
ratio represents his margin of
war.
I
income
of
now
two after the end of the present
or
net
ratio
credit.
France in the present war, except as we find any safe
or
to gross income may
expenses
thereby may have decreased, but nevertheless the
with respect to England
or
operating
gross
them.
gross
not with respect to the Civil
Spanish War,
high prices have increased the
increased, and the ratio of the
which
War
If
operation, high prices have increased the
income from which td pay
of
houses.
of
decay
collapse
their debts.
on
of
The
convertibility
the
on
structure
actual
change
safety of the
entrance into
our
cor¬
upheaval.
loss
demand
the
to the time of
up
York.
it,
cost
possible impairment of
war
Chamberlain, New
tainly had not created internal conditions hindering
interested in, as a dealer in savings bank
am
bonds,—are three things:
First,
This
and
at work for many
culls
taxes
to
from
cor¬
that pay the
the
collection
of
-
There have been forced
years—for eleven years to be exact—
forces at first economic, then social, then political—tend¬
ing to impair the safety of American bonds.
found natural expression in bond prices.
Commerce
terstate
I
endeavored
Commission
to make clear
in the
the
The effect
Before the In¬
winter of 1914-15
universality of this im¬
pairment but the particularity of legislative injustice to
such
at that
men
stake
And
bonds.
railroad
that
measure
time
were
in
the
guess
it is
as
now
the
an
open
railroads
secret
obtained
due to the fact that the savings hank
was
able
I
of justice
to
show
railroads
the
of
Administration
the
country
the
how
big
people
a
had
through their deposits in the savings banks.
Municipal and private corporations of
have
obligations
legal
for
savings
bank
a
character to
investment
in
BANKERS' CONVENTION,
■'.-■■v;•;r
206
restrictions
investment
where
those
states
thing,
and types of bonds that
three years more of this war
deplete them so as to impair the
In
Not
with
so
Marketability.
Second;
the
distribution,
bond
the
lose
houses,
dient for
rail
listed
is at the trader's desk
storekeeper
the
whenever
says,
houses
bond
the
whether
the bond business
rity distributors, and these must be
in
during the
sustaining markets.
here, by
V--/-'44:..,4:44 .4;:
-
file
in
men
the best men in the coun¬
the bond business does not get
try.
;•
But
to
resume,
continue
be
to
4V;
;■!
'
:
4
:.4-
if the savings banks are not going to
this old line with the general
public, then the present sources of a ready market are
Two remedies occur to mind.
gone.
the bond
England, of course, has no such sys¬
back.
men
retail merchandizing as ours
of security
tem
The first is to get
No. other country in the world has.
ada's.
and Can¬
But there is,
nevertheless, in England a class of men who are. coming
intermediaries
as
between
issuing corporations and the
counselors to estates, and these men
derstand,
on
the
which
an
not
paramount
embarrassing
the
afford
kinds
to saying
taxes
and then contribute to the
fourth
and
one-fifth
of
they
have
business
and
The
of
everybody else
has to pay
If
we
have
may
to
1902
go
in
of
doesn't prevent it from
we
do
it ungrudgingly.
But
being all wrong, and from
or
consider
now
but have
plied
now.
me
to
if
postponed
or
right thing to do.
swings we "have in financial
that
we
at or
are
back twenty-one years to
near
the
or
This
causes
was
1S96 to find the
built the great ad¬
culminating in the two peaks of
prices
1906.
conditions
have
when,
in the long ebb and flow of credit, then we
bond
and
advance
interests
us
only
if the
which brought it about can be ap¬
A careful analysis and comparative examina¬
many
in
possible factofs, made several years ago
the
light of subsequent experience, leads
the belief that this great advance in bond
prices,
decline/in long interest rates, was due to the fact that
this country,
at least, was the beneficiary of an annual
increase in the ratio of its gold stock
chasable—commonly
and
to its things pur¬
less accurately
called commo¬
dities.
The
significant thing is not that the gold stock in the
United States
every
on
the
increased—it still increases almost
In this way was produced a stimulus not
stimulus
of a
But
exhilaration;
as
For if you slightly in¬
drug.
the amount of the drug
increased
sion.
reserve
year—but that the rate by which it increased kept
increasing.
That is what the Government
the services and
issue
the
previous low year from which
vance
resources
loans
short
those of interest rate, or the prices of credits.
are
lowest point
crease
time,
the best
selling
they would have sold long loans;
longest trenches
history
unlike
that
kinds
at capacity, pay all
because
by
met
not
less liquid assets leaves the
avoided it—which may of course be the
the
asks
our
there many
run
Government, for between one-
the
product of all of its men?
that their going solved
Are
problem.
of
take their men back—
to
which could afford to
various
such a plan would not
conditions the bond houses
weaker
much
prices had permitted
or
Under present
East could
business
their vocation at home than
present conditions
under
is
sacrificed—first
tested
among
as
;;
work with us.
of
so
been
or
;V
.A 4';
advantage.
more
bank
and
the front.
But
The sale of these
those who could
called back,
have short loans and mortgages that can
be liquidated to better
of
were
problem in the case
no
that they are not obliged to
If their withdrawals realize ex¬
bonds.
is because they
tion
their country better in
serve
(who largely volun¬
their long
early days of the war), I am given to un¬
teered in the
which find
pectations and they do not liquidate their long loans, it
buy the old line of bonds, and if there will
few bond men to place
a
Otherwise
business in the country.
other
any
therefore
and
loss
no
those banks
sell
making greater sacrifices in this
are
giving more generously of themselves than the
and
war
business
this
4-4
full and earnest
conviction, that he believes the men—the rank and
.—in
"
is
that
One cannot assume that
anticipate price changes.
there
of
member of that fraternity to say
of parenthesis, but with
way
will
will be of less than usual service
It is pardonable for a
the impairment of the
relates to
The problem is to initiate action
ing of credits.
Therefore between
service, the bond houses,
Government
other
'':444444;-:;/,44
nearly normal.
more
problem
investment due to change in interest rates and the clear¬
Army and
remainder of the war,
third
The
of their
stock, and
for
buying
of
uncertainties
the
obliged to take up the collateral on the resump¬
tion of conditions
giving and be obliged
Liberty Loans.
time to the
business
44
eounting should be the rapidity with which the savings
banks be
nation's secu¬
give, while the war lasts, nearly a quarter
to
/-'■
v.
.
proportion to the unsoundness of this redis-
in
But
The country's call there¬
only a small remnant of the
fore has left
remedy is there?
been growing so fast they are
for the most part.
in wartime and prob¬
ably this should be one of them, for if not, what other
for stock
gets the best men of the country, and
investment .business has
young men
But many rules are off
and bonds.
Without question
at hand.
the end of the war is
until
took a private stand at
privilege as applied to paper secured by stocks
discount
they deem
to buy
afford
can
closely,
of its own interests in opposition to the re¬
the expense
It is to be doubted
prices and the prospect of resale fair.
be
composition, the Investment Bankers'
in process of
was
semi-unmarketable paper,
self-liquidating, should
When the Federal Reserve Act
rediscount.
to
or
presently
following its progress
they are heavy buyers for
merely traders and brokers,
not
Association, which like your own good Association was
in listed
But the bond houses are not
bonds is off the Exchange.
as
>
hypothecation during the
the Reserve Banks.
dangerous precedent, for the principle is
a
is
also
subject
the New
market on
house, and the bulk of transactions
in the bond
"stock"
real
The close market
Board.
York
their
have
bonds
which
few even of the high grade
In proof, very
bond market.
perhaps better plan would be to re¬
No unmarketable
unsound.
American
system of bond houses gives to the
American
It would be
realize the stimulus and support that the
Few people
Banks already
bonds than they did a year ago.
with
period of the war
There will really be no market.
anybody to sell.
reinforce them¬
The National
Banks.
Act to permit direct
the
banks to have
the savings
for
banks in turn might
21 per cent more
vise
through
shifting the load through rediscount upon the
But the simpler and
to make it inexpe¬
to mean such a price as
situation
Reserve
Federal
There are only
through sale and
such terms to the commercial banks, except
on
selves by
own
by making the bonds con¬
in some other way.
the commercial
if
•
further
worth, and what1 they will bring
than for what they are
come
any
wfiat they will bring rather
will begin to sell for
may
If the public
of the savings bank
degree of investment demand, bonds
class
recourse
whatever causes, and the private media
a
But it certainly does not relieve the gen¬
financial
eral
setting up a straw man to knock down.
markets, from
for
of convertibility:
kinds
two
they
4444 V' 4444
■!
growing unmarketability is to
the necessity for sale
vertible into cash
safety of the invest¬
to a
conditions
other
under
.
The other remedy
remove
could not
bond boys
return of our
which
in
might be needed. 4
i:'V.
>'■■
have been
of
of
4,''■>■}■/.■ 444 4,.4 '■ V;-:44'
hypothecation.
discussing this first problem, to a certain extent
ments.
we
service
the
impossible
field
that the financial reversals pos¬
sets and earning power
two or
making
any¬
of such equity in as¬
legal, have a moderate assurance
sible in
mean
these restrictions make
you
each day you will get no
may
get-
a
gradual depres¬
long as you increase the rate of increase
SAVINGS
in
the amount of the
drug,
The
decline
prices)
in
since
bond
been
decline in
a
the
in
(and
continued
action for the past ten years.
has
~
.
prices
1906 has
world: "
should get greater stim-
you
ulus until something snaps.
a
slight
some
sink to
re-
increase in
of
the
But
gold
The
Bond
Buyers'
index
for
municipal
bonds,
based
which
25-year 4
a
cline
cent in 1906 to
per
4.16
in
bond .this would represent
per cent
price of considerably more than
a
10 points,
bond
largely
bond prices,
(for there is
including
and
bonds about 6
the
in
but
such
any
savings
-
would
after
United
the
and
the
States
who
Thompsons
For if we ever rise
thinking.
has
8%
and
out,
municipal
suppose
we
will do with
our
on
and
ever we
back
of
have this
the
firing
allies what England and France
as a
a
body politic.
higher humanity—
You may be
sure
the inevitable German thinker has figured this thing out.
I say that if the logic of this situation is being brought
been
home to the Germans, they
may
decide, rather unexpec-
tedly to us, to throw off the Hohenzollerns and the entire .Prussian yoke and seek
for
subsidized influence, and during
the high
ignorance, terms they
If they do
relatively
to be
bonds
coming—if
really want to do in the interest of
than they
cent lower
per
of this year, which marked
men
10,000,000
obliterate Germany
would ob-
resurgence
are
line,
point of municipal bonds for the war.
V One
our
equivalent,
find the long term municipal
we
now
January
Buchanans
month additional still
points lower than they were the year before
broke
war
were
than
now
the Hun family and the La Follettes,
up
the
that unconditional
of " super-man"
race
wiser
Zealand, who has sent the mother country 10 per cent
conflict of price ten-
no
the different classes of bonds)
stocks,
to
is
or
tain their share of this security price uplift that fell so *
ephemeral,-
the
through suffering like that of ^France, to resolution like
tremendously increased our
war
be that
prices
dencies among
brighter side to
that of England, and thence to sacrifice like that of New
gold stock—by about $1,250,000,000, and the natural sup-
bank
be a
may
of the total population within her borders, and 25,000 a
Our entrance into the
would
So there is much
de-
about 10 per cent.
position
this
Gronnas,
the
there
have strangely mixed
the
cent,
per
to
has really sized
States, most of
for the year preceding the outbreak of the war.
average
On
3.53
The bonds can only
assessed.
are
The German logicians may come forward and
surrender
"legal municipals," shows a rise in interest
are
from
rates
seriously,
prove
the average net income returned on sale price of the
bonds of the largest cities of the United
unless they
zero
picture.
supply.
on
There is a limit to the possibilities
to be thankful for.
During this period there
rate
quite to Heaven "—there is
no tree ever grows
limit to all things.
of descent in savings bond prices.
other
numerous
with
207
SECTION.
BANK
we
never
themselves
our
with
our
state of provincial
could obtain later.
shall see, in all probability, a recovery
by their freedom from various forms of tax-
sustained
in the market value of. savings bank bonds that will
The de-
delight no official more than every bond man/and since
this has not greatly availed them.
ation, but
cline in the average price of
this recovery will follow
corporation bonds has been
a
decline
without
statistical
points from the high of the year, but their
warrant, in fact will follow a decline that by all the rules
present low .figure is only one and one-half points below
of the Medes and Persians should have been an advance,
the low
the recovery should- be sustained and
nine
about
the
opening of. the Stock Exchange.
If
of
figures of the winter of 1914-15, subsequent to
have nursed a pet
we
of
hope that ought not to be realized until the millions
ought at least to furnish a
of young men of the French and English speaking peoples
excuse.
bond
willing to
of
continuance
Interest rates (and there-
your,
lend
is at
existence
common ideals
arise
borrowed
of
Now
money.
incentive
your
is
'
winter
to
is in
and
sight
for
the
next
few
weeks bonds,
particularly of the
"
A/; ./;/,
or
three years hence, the most optimistic estimate
The savings banks and the bond dealers are not the
the end of the war.
The credit of all corporations must suf-
only sufferers;
is thought to be in sight, but at the present
or
brutality.
of the bond requirements of the government of the United States should exceed one billion.dollarsva month.
'
This condition should obtain until
Out of that fellowship can
international police to put a period to intcr-
But, meanwhile, and until, the end, whether this mid-
spend your dollars—not lend them—to scramble for commodities.
an
national
return of money to you.
support of low bond prices in peace is the high rental
value
which only this first and last world war
could have brought about.
problematical,
all
to know each other through that finest possible
fusion of common suffering and common endurance for
if the
But
their moneys.
the charm is gone out the future
The
come
represent the price which people are
to borrow money, and the rental at which
pay
are
we
It is this;
prices)
willing to
people
conditions,
war
plausible
fore
of the human race, and of centuries, doubtless it is a
to the main cause
as
far.
price movement which breaks down under the
bond
tests
theory
go
But all this is only a hope, and in terms of the welfare
.
.
fer in the complications.
There must be no let up in
savings bank class, may be temporarily over-depressed
industry, and therefore no let up in private corporation
in
borrowing.
adjustment to the necessity of paying for
the next
Liberty Loan.
Nevertheless
should
which
us.
the
of savings
trend
continue to downward
as
bank
long
as
the full force of the competi-
Government bonds.issued
increasing rates
at
of interest and in amounts approaching a
A
month.
bank
man
wTho
eventualities of governmental
a
prices
the conditions
negative an otherwise normal uplift remain with
We have yet to feel
tion from
a
bond
thousand
million dollars
a
does
not
who
are
fighting this
billion
dollars
Liberty
next three
with the possi-
assisted
quotation of two
in
a
five
to
ten
point subsidence in the price level that a three billion
dollar loan would drop
that level seven to fifteen points
further, or a four billion dollar loan, ten to twenty points
further.
German
mans
If it is permissible these days to quote an old
adage—an
adage which, by the way,
the Ger-
themselves forgot when they set out to conquer the
legal
be
bonds will be helped, and the savings banks will
helped
by the withdrawal of the long legals
.
other-
wise pressing for sale, and by the opportunity to invest
in high-interest bearing paper protected as to market by,
early
war.
Loan
ket value of the "legal" collateral, and if for the period
of the war, at least/savings banks be permitted to pur-
for the
But it does not follow that because a
titive rates securing those notes by bonds now legal for
savings banks, with ample equity in present true mar-
chase such notes, the corporations will be helped, the long
bilities of this war and with the character of the English
issue
short notes on the almost prohibitive terms of compe-
the
for
pfepare
years1—well, he simply hasn't reckoned
If, however, they can
the bonds you now own.
billion dollars
borrowing at the rate of
month
If these corporations issue their long bonds
at record low prices, it hurts the market and prices of
"
;
maturity,
and
as
to
safety by the nature and
amount of the collateral,
In conclusion, then:
First;
It rests with the government whether there
the safety of the savings
shall be any impairment of
bank
bonds,
due
to
war-created
economic
upheaval,
Based on our experience in the railroad 5 per cent rate
case
and on recent price fixing by the Government, we
have little to fear in this respect.
conditions
led
are
we
both listed and unlisted
to
expect
thecation
the
investing public
Federal
hypo¬
Reserve
Corporate credit in general and savings bank
in
particular, would be improved
with ample
secured
form
which
collateral
the
already
are
legal
invest¬
ments.
'
"America
be made for
with
security by the bonds of these obligors, when the bonds
believes that peace
is at hand.
An
securities
by legalizing the notes of obligors,
in market prices is likely to
investment as represented
until
these
investment conditions
Third: The present impairment of savings bank bond
continue
of
Fifth:
distributing bond
,y.V-
/v
convertibility and price would be sub¬
Banks.
which
of
Both
stantially benefited. if arrangements
for
subsidence of
a
neither
demand,
be stimulated by the efforts of the
houses.
weakening
a
securities, due to
mercantile
and
investment,
can
Fourth:
With the continuance of the war, under pres¬
Second:
ent
CONVENTION.
BANKERS'
208
CampaignFirst"
for American Savings
Institutions
'
.
By H. II. WIIeaton, Specialist in Immigrant Education, Department of the Interior, Washington, I). C.
The
Government
needs
and
the
wants
help
of
American Bankers Association during the war.
eral
plan is
under way
acquaint
to
every
the
person
foreign birth with American banking institutions.
successful
of
execution
this
plan
will
depend
that
Federal
$275,000,000
over
The Cleveland
$209,190.
report
a
Private
states that one banker alone carried $100,000
of
Corn-
of
Chamber
" Irresponsible
on
Banks"
deposit,
on
In New York 22 banks carried approximately $2,000,000.
The
When five of the reputedly sound bankers in New York
largely
City went into bankruptcy shortly after the war began,
of various
Investigations
show
in
merce
this Association.
upon
deposit
on
A Fed-
and
State
annually
oflicials
we
were
involved
transmitted
is
astounded to learn that several millions
well
as
abroad by aliens, largely through the hands of immigrant
these
bankers, while there are
as
50,000 depositors.
The
were
for
reason
the private bank.
total
amount
deposit
on
To
bankers.
keep
the
during the war and
savings in
grant
object of this
paign
for
first
of determining
keeping
safe
in
sum
with
America
the
and scarcely any owes
use
Banking institutions is
This
phase of the " America First" Cam-
"
immigrant
born
American
does
understand
not
bank " and its part in the life of
resident
in
this
country.
institution.
is
It
Yet the typical immi-
the immigrant
Let
us
Let
banker
is
that he
agree
which the
immigrant
bank
best interests
recitation of
as
very
begin
the
to
by
variety
a
of
immigrant and of the country.
a
The immigrant bank
a
once
steamship agency,
a
post-office,
a
an
agency,
obligation
tal
to,
importing
a
saloon,
shop,
boarding
real
estate
business.
The
make out and even
employs
if he cannot
his
him
to
act
read, he
as
frequently
execute
calls
in
upon
the
legal documents;
interpreter
comes to
store,
insurance
or
in
the
with
rendered,
any
Americans.
no
particular
business man
can
position to be exp.^ted in
could
were
be
honestly
found,
but
perceive that the actual
an
unscrupulous
$100.00.
When
the
accumulation
manner.
depositor is
exceeds
amount, the whole is ordinarily transmitted abroad.
one
group
of 31 banks
this
In
investigated, 3,000 laborers had
are
of
can
the
authori-
country
must
be done is the object
laboring.
against
population;
and
and
these
insti-
our
1910
In
no
amazing
over
annum,
the
of
years
edly to learn English
this rate per
At
figures
were
and
how
age
only
were
less
1,650,361
time,
and
35,614
about
long before
whilst
over,
twenty-one
attending school,
study
our
fifteen
twenty-one
were
same
of
cent
per
2,896,612
2,565,606
over;
over.
ten
of age and
years
English—22.8
speak
not
illiterates
The average amount left on deposit by a
about
could
over,
foreign-born-white
were
services
bankers
That is one
educational
than 2,953,011 foreign-born whites, 10 years of age and
age
rendering of these services places the ignorant person in
a
grants in this country
age
objection
readily
»
of
If. these
government,
the pathetic disabilities under which immi-
are
of
making claims for damages, and in transacting busi-
ness
clear—teach
equally
Inability to speak English and ignorance of
tutions
years
buying real estate, in bringing suits at law,
The answer
The banker speaks the
To suggest how this
years
his
the
American
the
courts;
he takes
money
knowledge of American banking insti-
a
him to read letters from
family or friends in the old country;
advice
in
immigrant
store,
to
property or busi-
of the coming remarks.
employment
an
house, grocery
office,
banker to
he
and
common
the immigrant?
upon
The remedy is
which
and
assume.
and may be run in connection with, or inciden-
legal bureau,
a
a
other
some
extremely
tutions and of the facilities they provide.
infor-
bureau,
private banker
every
deposits in
is
to
speculations,
estate
for this hold which the immigrant
reason
institutions.
ties,
mation
It
has
opportunity
an
banker holding title to
train into him
A
transmitter
a
banking...
depositor,
a
business
the immigrant the language of the American bank and
the
private bank-
bank,
Nearly
invest his
do
he cannot readily obtain in other ways through American
extraordinary conditions.
is at
a
fixed capital,
any
immigrant's language and provides him facilities which
description of the character of their
some
with
is simply and. clearly defined.
secure
to
than
What is the
services,
inimical
of the exploitations by
business will disclose
money,
is
banker
does
banker has obtained
that
But in spite of these facts, the
institution
to
power
of
nature
which he has purchased with another man's
ness
process
admitting
and
the
—the savings of hard-working immigrant laborers,
convenient for the, alien.
renders
an
of the
some
coupled with
of
us
un-Americknized immigrant could not
readily in other ways.
ers
hindrance
actual
an
Americanization.
tempted
find such
grant bank while peculiar to America, is an un-American
of
private
the
business
the
foreign-
a
in
defined obligation to
a
mining stocks, bonds, etc.
is
average
inherent
invest in unreliable securities, real
of Education.
The
is
unlimited
practically
provided
the
being conducted by the United States Bureau
now
other failures
Of several thousand banks, few have
such
for
facilitate the placing of immi-
to
American
new
means
no
and
suppos-
America.
America
At
would
become American?
To remedy the situation, the government through the
United
States
embarker
This
upon
program
zation
of
legislative,
Bureau
a
of
Education
three
years
ago
nation-wide Americanization program,
comprehends
educational
new
facilities,
administrative,
legislation,
the
the organi-
establishment
and instructional
of
standards,
SAVINGS
and the
in
marshaling of all the forces of Americanization
cooperation
other
on
things,
paign,
BANK
scale.
organized
an
having
national
a
for
its
among
First"
promotion
purpose
of
Third—Appoint
cam¬
alle¬
the
giance of every foreign-born citizen to the United States,
nationalizing
the
tutions.
The
of
use
tiie
part of
a
English
language,
and
knowledge of American insti¬
which
program
association is
the
common
a
I
submit
now
United
to
transmit
special
The
feature of
is
"American
the
as
follows
resolution
endorsing
program
First"
Campaign.
a
lesson8
in
First "
Campaign
and
announcing the intent of the Association to participate in
the
lines
zation
Committee through
a
which
the
Bureau
banks
along
furthering the program;
in
and
by
and
past
march
of
been
ers
to
Bonds,
the Federal
have permitted the
Tbe
has
effective
The
wisdom
of
drive
greater
the
banks
reserve
office
committees
bare
the
them
the
on
of
part
Campaign,
in
made
the present
in
of
of vital
proved
tbe
world
The
war.
1916
in
consequence
the people
apparent
to maintain
people,
reached
peak
this
of
first
first
for
the
to secure
us
is to
efforts
members
of
the
to
year
inception
our
has
new
During the past
information
with
advise
as
There
have
to
will
Our
under
partment of
only
will
sell
one
bank,
a
forms
those
the
of
tbe
reported
methods
May,
the
of
loose
for
gether
first
in
the
real
of action,
justice
man.
sense
first in
in
righting
'
'
the officers and
he
the
has
members of the
progress
the
in
have
we
Executive Committee
The advice of
year.
manifested
President Edwards,
Section,
have been
of great
made.
M.
-
W.
Hakiuson,
Secretary.
From
September 1,
1916, to August 31,
1917,
inclusive
all
its
to
of
the
and
Michigan
the
aDd
Savings
as
three
a
received
The
banks,
1917,
by
July
9,
1917,
by appropriation.
Refund,
Sale
" 100
Postage
the
hun¬
since
the
built
up
from
the
Your
Secretary
Banking
35.93
.
returned
25.59
$12,129.85
We have
meeting, of
with
$ 5,562.83
;.
1,898.29
and
printing
(including
Thrift)
Executive
.;...,
1,209.17
1,057.35
expenses..
Committee
meetings
847.21
.
Rent
"
604.92
100
Years of Savings Banking " (1,000 copies)
Extra
369.31
help
Traveling
182.08
114.35
expenses
Express
.................
Charts
and
and
Folders
67.59
.
telegraph
59.82
-39.05
maps.....,...,...,...-.,..,....,,
and
guides
36.04
badges
20.00
18.60
.......
.
Credit
$12,086.61
balanceV.............
43.24
$
.
Report of Committee on Savings Legislation
Book of Forms,
for
We
de¬
every
may
purchase
undoubtedly
within
Atlantic
the
Your
other
the
next
the
of
conventions
New
committee
legislative
and
the
than
Association,
from
issues
outcome
the
effort
We
not as
refer
particularly
in
Kansas
City
tbe
The expenditures for tbe
local
Public
to
General
being for
last year's
balance
$43.24
and
in
to
the
accordance
departments of
Faruswortb,
the
has made it
activities
and
appreciates
utilized
Savings
and
Bank
a
with
Section
believe,
we
much
that
mean
accomplishing
1917.
touch
value,
by this'we
of
pre¬
our
full
state
expectation,
for active service.
preparation
the
for
to
,25,
constant
the
hope
our
of
presentation
passed at the General Convention
from
The
in
expended
problem
of
indicate;
to
September
in
is of greater
work
would
been
yet
City,
keep
interests
year's
been
contrary
railroad
the
Office
of this
the
to
statement
a
bearing
Newlands
tbe
to
Con¬
gressional Committee; this statement was predicated upon the resolution
Association,
the
of
that,
but
the
affecting
have
lulx>r
have
upon
endeavored
has
tangible results
and
paredness
the-
Jersey
with miscel¬
deeply
stationery
to
That together
its
....,,............;
...
......
of
join
bank
Section Iu
Sections
....
1916
one
the
amounts
extend
79.02
120.00
Years of Savings
connec¬
amounted
forms
a
Proceedings.
the
369.31
propaganda.......
money
Postage,
pos¬
effectively
the
is
alto¬
help
he
last
present
Service
Commerce
interstate
September,
harassing and
of the American
asking Congress
conflicting
Commissions and
Commissiou—to
to
Bankers Association
to
free
the
regulations of
vest
reloads
tho
various
exclusive control
substitute
one
master
in
for
the
forty-
nine masters.
This
Section
materially
2,500.00
Salaries
a
remaining
Association,
$12,129.85.
Section
$ 9,000.00
Books '
in
hand.
which
Forms
of
Bankers
part
appropriation,..,
Forms...............,...
of
Proceedings,
Gold
Convention
on
At
appropriations
of
by
appropriation.........
Thrift
account
Book
the
for
twelve
relationship existing in tbe Genera] Office
9,
per¬
departments.
work
business.
Book
well as Gene,raj,.Secretary
satisfactory.
1916,
May
Fund of the Association
that
so
addressed
large
Book
Bank
to
September 30,
Convention
the
statement.
Section
members.
of
many
balance
a
necessary
own
Bankers
West Virginia
:;
C'ukwts.
v.
forces
$12,086.01,
co-operation
Association,
the
savings
more
have
it was decided to
leaf style
copies
received
expenses
tbe
days
The requests for
we
Account,
placed to the credit of the
the attached
serve
in
first in unity
law,
FINANCIAL STATEMENT.
Telephone
the preparation of a new
attended
has
has
aggregate
few
a
Section
office.
the General
191J,
makes total credits, amounting to
The
to
flag,
under
been
systems
Kansas City
amounting In the aggregate to $11,869.31..
Convention
has
'
Association,
Items
and
Secretary.
our
the
Forms
to
pertain
associations:
Section
life
cent, of
are
and
of
However,
have
contain
cover
in
which
Secretary
following
to
per
Approximately
present
at
and
of
Book
'
Bankers
sible
material
membership
dlsnmtskxlknth-
savings
open
rolls
the
to
constantly.
the year
remaining
year.
with
to
confidence
Much work has been done in
been sent from
Sections of the Association iu
credit
distributing
Respectfully submitted,
great
any
The
matter which facilitates the
was
Committee iu
Executive
year
in
Sale
to
result
There
past.
desire
the
as
by resolution of the Administrative Committee.
laneous
common
a
during the past
Interest
assistance
We hope that next year a campaigu
hanks
$1,884.09, has been transferred
The
iu
material
of
of funds
sources
plenty
are
of Forms
Your
facilities
approved
other
liberty
service
from
Section
the
tre¬
precluded
are
up
now
fifty-five during
which
Immi¬
sufficiently
and
sold
copies.
the
economic
our
hundred and thirty-five copies of the Book
eighty
prepar¬
Americani¬
we
6,049 letters have been received and oVer 38,650
year
There
We
is about 22
departments.
added
handling this
it.
been
Section
the
tliat
savings
been
increasing
are
of
the
opportunity lies,
pieces of mail matter
tion
in
in
to
efforts
promotion
in
This
In
the incumbency of
of
for
made
Association,
have
members
the
members,
3,822
are
members.
as
properly
of
organization
system
and
machinery.
enrolled
Association.
have
"we
this direction
dred
in
and
War
large extent responsible for
a
social
reached 3,850.
membership of
past
Bureau
teachers
Federal
■
efficient and
an
equilibrium.
conducted in this direction will bear much fruit
In
the
of
use
the
Liberty
Hence, the savings banks
stabilizing
our
membership
There
year.
the number had
sistent
of
need
service
the
available
source
financial
running of
smooth
high
banks
of
real
and
in
cataclysm.
only
by the people in our banks
reposed
total
Association's
had
the
results achieved.
The thrift movement manifestly
preparing a great number of people for tbe sacrifices
prosecution
aiding
The
sale
upon
relying upon past savings and future savings
tbe
ago
the
render
to
degree is the present savings of the nation.
the
in
have detailed
Thrift
Section
the
saving
in
of
Nation-Wide
tbe
effect of
demanded
iu
which
market,
with
the
for
part
a
the part of the savings bank¬
place our service to members
which
money
recognized
for
the
as
basis.
mendous
from
during
the
Bureau
allegiance to
received
and
1917.
work
to
Civics
and
'
the security
on
Secretary's
reports of the
have made in order to
history
Section opportunities
In
and the decision
co-operate with
September 25.
nation's
the
Changes
before.
increased savings,
members.
in
events
the Savings Bank
presented
for
had
Atlantic City, ,N. J.,
important
has given
year
not
y'V'V'
Institu¬
Reports—Savings- Bank
of the
The
In,
money
banking
associations;
in
Section
/
English
tbe
cooperation,
Officers'
Report of the Secretary of the Savings Bank Section
the
immigrant In
American
Finally—Preach the doctrine of M America First "
wrongs,
1
;
,
Committee
work
can
reliable
Plan;
—first
Second—Designate
iu
it
suggested;
reaching every
of getting him to deposit his
through
evening schools,
Seventh—Utilize
" America
aimed at
purpose
money
Sixth-?—Designate collaborators
ing
:
the
of
the execution
Fifth—Publish advertisements and articles relating to savings banks,
thrift, and allied subjects in foreign languages, in leaflets, posters, and
foreign language newspapers;
prepared
First—Pass
the
bis
responsible for
nation-wide propaganda through membership banks,
a
associations,
for
be
to
the plan;
tions;
the
entire Federal program and
local
States
grants
a
some executive
Fourth—Initiate
state and
and
furtherance of
209
the Association's part in
It includes,
"America
SECTION.
statement
at
siderable
the
upon
now
labor
New lands
railroad
doubtful
mittee
to
was
reviewed
May
meeting on
its
was
bestowed
Committee
upon
have
affairs, owing to
whether
express
any
by
8,
the
1917,
Executive
at
it afterwards,
been
unable
Committee
Briarcliff Lodge,
to
but
of
and
tbe members
resume
their
will
be
afforded
its views upon this important question.
to
of
hearings
the press of war legislation, and
opportunity
our
con¬
your
it
Is
com¬
210
BANKERS'
Meanwhile
plexing,
tional
it is
unstinted
which
common
most
for
win
been
and
unable
effect;
to
fair
play will not
let
Na¬
much
investment restrictions generally.
upon
office
our
for
information
about
the
legality of certain
consideration
the
general
any
all
is
in
exists,
that
In
band
longer
to
subject
issues of bonds;
from
if
will
order
to give to
arranged
the
consider
to
the
means
the
its
of
course
the
fruits
of
labors,
Edwabu L.
.'■'v.,
''
,
'
of
public will learn
the
railroad
Chairman.
has
E.
Knox,
R. O.
Stephenson,
J.
Sabtobi,
ahd
problem,
for
reasons
our
Robinson,
/
material gathered
financial press much of the
study
in
undertake
Respectfully submitted.
a
this
committee
your
and
interest
cheerfully
W.
Its
come
Laws
by its constituents.
Important arm of national service.
In
Banking
widespread
any
Committee
your
Requests often
State
various
reasonable investigation desired
know
hand
to
recog¬
believe tben
us
working
withheld
be
"to
Laws and
per¬
the
their
friendly
a
more
with
problems and
them
railroads
our
and
wore
intimate co-operation
proverb of wide application;
a
cause,
will
have
lawmakers
bur
borrowing
art*
their
solving transportation
patriotism
forgive all," is
with
in
policies
past
problems
hoped that
Government
nized
in
railroad
the
but
CONVENTION.
N.
through
this
F.
F.
Hawlby.
desiring exclusive national
regulation of our public carriers; articles will appear from time to time '
the
over
signature
argument,
our
friendly,
Another
of
matter
Secretary presenting the
our
these articles ought
and
at least
or
of
pressing moment
Committee has addressed
your
ings Banks to
bers of
to
far
go
its
all
to
Savings
energies is
burg, Vice-Governor of the Federal Reserve Board,
class
under
Board
the
feasibility of
the
Federal
already had
recommendation
the
Act;
eral
Reserve
Act;
the matter
would
later
be
on
Board
suitable
Congress
membership,
September
1st,
Total
membership,
September
1st,
1917
our
Gain
Lost
since
3,5:5.",
which
of
the
also
to
Net
1st,
liquidation
191(5....
and
gain since September
the
Fed¬
National
Sav¬
Trust
proved* to be not at all attractive to such banks because
almost
prohibitive
crimination
in
favor
of
rejected in Committee
instance
end
but didn't
" get
ning,
289
merger.
37
191«....,
1st,
Banks....w.«. .>
Companies,
in
relief
securities
was
had
as
attitude
The
Board
been
etc.,
i
„•,.
.......
Mutual
tem
of
there
an
in
member
which
Bank
the
was
886-
399
,.
Board
direct
no
to
establish
could
Total
iross
tude of
the task imposed
possible
our
extend
Net
to
such
upon
Associate
the
facing; of
the
Federal
the
on
Liberty
Loan.
the
be
it
the
privilege
for
cent,
per
act
under
tbe
The
lateral
from
liberal
with
the
It
Is
rediseount-
law
they
moral
and
service
to
cart
effect
of
in
here that
participation
any
sale
of
by
Facilities for
ean
be
be
led
the
readily
can
from
their
for
a
course
present
Tbe
work
has
past
Equipment Trusts;
be
vaults
1912
acceptable
the
of
The
of
our
Savings
their
it
is
banks may
the
if
this is
hoped
their
banks
Savings
who
from
own
have
in
de¬
reason¬
the partial'payment plan
Bank, and many subscribers
would
income
otherwise
is
rather
duty.
The
immediate
full
in
pay
evident
It
credit
is
granted,
be
to
while
for
save
hoped
that
that
by
unless
the
upon
banks
subscribers
the
the
all
depositor who
in
pays
full
lacks
the
future.
of
We
has been
health
and
is
Committee
It
been
has
has
stated
increased
to
investments
to
has
down
step
the
narrows
in
bars
to
the
high grade public utilities; this
the
in
right direction and
other
investments
Your
of
the
Committee
Savings
States.
A
vanishing point
securities and it often
those
in
reporting that tbe area of legal
recently been widened In several New England States
Include certain
delayed
interested
creates
which
are
invitee
Bank
an
the
rigid
should
.an
of
artificial and
expression
with
be
of
respect
judgment
favored
views
by
barrier
from
their
a
long
letting
frequently
in
unwarranted
the
to
believe is
followed
investment
exercise
included within
Section
we
selecting
market
for
local
members
Investment
in
the
American
Since
be financed is through
may
If
have
of
the
people
to
the
do
not
save
its currency..
to
recourse
It
inflate
substantially
its
Great Britain has
extravagance of
the people.
In
August 10th, in referring to the in¬
the
State,
indulged
has
Tbe harvest of
in
extravagances,
in¬
great
a
financial tolerance
our
it is asserted, in the extraordinary level
so
(his
realize
do
we
jewelry trade in
in
and
of
the
that through
mains to be
There
seen.
which
.work
saving.
the efforts of the Havings Bank Section
national influences that have been
Whether
of the people
response
have
we
England,
degree' since the beginning of the
unprecedented
the support of great
money
Birmingham,
do not know what will happen in this country, but
we
have enlisted
we
the
at work for several years in educating
in
evidence,
this
this
call of the
to the
is much
done
the people to the desirability of
the effect of
respect
will
nation
however,
be
marked
funds
for
re¬
that the intensive
has already had
-splendid
a
effect.
School
has
savings banks have been established in
not
There
only
is
banks
the
In
to
encourage,
of
way
a
any
City
to
but
also
the
secure
.
of
school
promote safety
This
family.
resultful
more
number
ahd
the
011
than
savings
in the
the Board of Education, in February last,
Section,
our
great, numbers.
family
the
to
York
order
appointed
thrift in the schools,
for the supplies,
care
create
In
these banks,
efforts
a
Supervisor
to install
new
of
school
School
savings
audit the accounts, obtain reports and in
to promote the habit of thrift..
We have undertaken
ment
New
child,
the
upon
approach
204.
the
general
of
avenue
child.
management of
Banks
effect
reached
has
through
Its
had
no
through
of
to extend thrift
New
York
and
operation of their
matter
clerical
of
liability,
work
by
settlement
for
the
material
the
as
agencies through the social settle¬
vicinity
is
providing
savings
them
funds.
Section
office
bought
by
and
the
with
This
does
is
not
settlements
through
the M.
expense
of carrying the supplies in stock and receive payment for them
direct from
At
the
tion
the
at
B.
Brown
Printing & Binding Company,
who bear the
the settlement.
meeting of the Executive Committee of the Savings Bank Sec¬
Briarcliff
Section
Loan
zone.
the
of
that
an
Of.course,
war.
merely
is
the
prices from which the entire nation is suffering."
tbe
army
Section
of
proportion of income much too large for his
a
being reaped,
now
for
vast
Bank
mind
by his selfish and thoughtless action has compelled
material
a
war
country
a
London,
that
performing
Your
3.822
English taxpayer it states:
left
and
City
mustering into service
the
to
saving.
must
for
result
the
the
the
duty and in
.
Inculcating the habit of thrift In
the present
increased
dated
of
®
Savings
tbe
bringing
told that the currency inflation in
as
article,
lie
own
which
and
are
Savings Banks will courageously.
recognize their opportunity and privilege to assist in
distributing future
issues; their rewards will consist in the consciousness of
patriotic
.......
that its teaching has become nation-wide.
so
undesirable
income of
banks,
our
Government
a
forcibly
Government
the
a
of thrift recruits.
.
City, N. J., September 25, 1917.
of
propaganda
in
in
way
tremendous
creased
than
effect
.
.
production
recent
a
a
busi¬
that
on
accumulations; it
current
whether
only
money,
been
gen¬
be deterred
upon
our
1,380
♦> .......
....
Section has been persistently
currency.
Loan
their
of
be
not
effect
removed
Banks
counter;
to
2,442
-,>
flation of currency or credit.
Liberty
character
the
and
local
the
over
.,/
thrift
of
manifestly
benefit promt,ly
may
financial
our
same
incentive to
1,285
Total
resulted
our
their
col¬
pay in full or
buy on the
partial payment plan, but the advantage to the bank in the latter case
apparent in that its initial outlay will be repaid within the
period
same
3,727
.........
(including chapters and state secretaries)..
the mind of the public,
con¬
is
of
.....
public the need for money saving to meet the exigencies of war.
thrift
any
past
patriotic
the
of
grade
past savings,
machinery is inevitable; subscribers
to mortgage their future income in order to per¬
dislocation of
be encouraged
form
of
of
Liberty Bonds
by
out
should
our
to.be
method
this
serious
is
degree
if needed.
Sale of
use
paid
are
would
Bonds—high
they
with
bonds
reason
fear
ought
provided
to
withdrawals
through
fear
of help
assurance
bonds
reasonable
a
would
that
some
cooperated
the
flotations of Liberty Bonds
such
banks.
circumstances
States
which
qualified to render,
posits;
of
United
Banks—so
Savings Banks,
peculiarly
etc..,
Gentlemen:
"
mention
June
without chapters,
Report of the Committee on Propaganda
privileges of their member correspondents.
hearty
able
maintaining
in
investments
patriotically
last
which
are
future
the
Savings Banks to have in their
our
of
Reserve
rediscount
Committees
ness,
line
Federal
proper
erously
in
acceptances and short date municipals and
a
37
(banks).......
them
business
all
upon
agents in
as
which
Banks
of
investments
should be the aim of
stantly
Savings
desirability
through
etc.,....................3,764
Atlantic
regional banks requesting
is
to
95
1,380
......................................
Members......
Grand
help to which they are entitled from their correspondent
liquidity
46
....
.........
Board
greater
seem
.......
through their
prompt response to your Committee's appeal was highly stimulat¬
ing, and it is believed that with such encouragement from the Federal
Reserve Board
Savings Banks may confidently reckon upon all the
bankers*
..,.V.
.
49
,.....
Members......................
membership
members
Voting
Reserve Sys¬
" in view oi the magni¬
all banks of the country, including Sav¬
upon
banks—a
lesson
.
.
the
course
of
part
by special permission of the Board.
obvious
B.......
Non-voting members
this
An
I.
Associate
............
facility for meeting unusual
Conference the Federal Reserve
permitting member banks to
■lng for non-member
exercise only
'
v
.
membership without chapters,
Delinquent
growing out of Liberty Loan transactions and
ings Banks,"
1.285
litera¬
measure
keenly alive to the
give the Savings Banks,
the twelve
to
to
access
special discount rate of 3*4
a
begin¬
was
currency
was
were
disposition
following'
letter
a
Board
toward
Savings Banks
every
the day
on
addressed
A.
thrift
,
Secretaries,...
Chapters,
receive
to
second
a
desirable
,a
meinliers
hearing before the
a
advancing
depositors
evident
an
correspondents,
withdrawals;
of
way
waive all technicalities and to
to
had
the
emergency
the
State
t
Chairman
sympathetic attention and
Savings Bank has
but
thus in
Washington and sought to learn what
Savings
us
possible dilemma
uneconomic;
associate
as
ture, etc.:
dis¬
finally
was
enrolled
252
,t.,.........
..........»
.........
acceptable under the Aldrleh-Vreeland Act; thiH
felt It necessary to take In view of the uncer¬
we
of
gave
and
the first Liberty Loan campaign
as
event
Banks
precaution
a
tain
the
Savings
Banks
Also
was
liberal
anywhere."
1917, just
Reserve Board in
Mutual
amendment
working industriously toward
was
President Edwards and your
Federal
Savings
inexpedient and
as
the
Banks because of the
Mutual
the
Committee
your
On May 21,
of
requirements;
reserve
objectionable to the Commercial
; 3.*22
......
ings Banks were to be admitted to associate membership under certain
terms
1917.
specific
Mutual
whereby
September
by failure,
thai
amendments
by
September 25.
191(5.. I.....
War¬
learn
that
shortly afterward suggested
in
mem¬
banks of
to
City, N. J„,
Total
at Washington, and
advisement and
for
Sav¬
Paul M.
pleased
were
made
introduced
and
we
under
was
Reserve
Report of the Membership Committee
a
Atlantic
recognition being given
some
amendment
an
of
which
to
the relation pt the
Last Oecemlxer two
the Federal Reserve System.
the
phases
creating
Banks
Committee called by appointment upon Mr.
your
discussed
various
towards
just, attitude toward the railroads.
a
offer
Lodge
its
Propaganda.
last
May,
services to
The
the
Section did
this
Committee
Association
In
recommended
the conduct
its share of effective
work
of
for
that
War
the
general Association.
A
Bibliography of Thrift
was
published by the Section, and about 400
SAVINGS
of them
have already been distributed to libraries and to bankers
questing copies.
of the
BANK
One hundred copies
sold to
were
Young Women's Christian Association
at
the National
re¬
Board
James B.
ington,
to $35.
Chas.
S.
Calwell, Chairman of Group 1 of the
ferson,
out the
city of Philadelphia.
During the past year the requests for Thrift material have been un¬
Fortunately, a considerable amount has been on hand, thus
us to
The
and
Thrift movement,
the
Law,"
official
the
Through the efforts of
plan
a
special trip
made by
was
the
87
copies remain
A definite responsibility
try
to
help
the
among
producing
of
stem
the
luxuries
apparently rests
of
on
thrift
The
wide scale.
any
Activity In
'sure
to
loans
in
efforts
United
imperative.
seems
of
the
is
In permitting
of
needs
demand
the
behalf of the
States
cultivation
continued
be
This committee recommends
and
the
of
thrift
extended.
inducing savings is to have the
It
is
to
Therefore,
ment of more
solving
that
year.
U; y
important
campaign
a
conduct of propaganda
problem.
/. '.■'
,
/■ /
greater
has
year
resulted
confidence
mittee
of
recommends
added
that
the Association
to
the
Section
to
Improve
endeavor
we
fiscal
next
■/';y
^;
■
rendering io members during
prestige
in
members
our
rendering such service.
in
recommends
during the
':.y. •
■■
The services which the Section has been
past
savings
open
for the establish¬
committee also
This
be instituted some time
;/;;'"////;/;
;
method
receiving those savings.
for
agency
Its
savings departments would unquestionably prove valuable
an
such
the
that
effective
most
office.
and
This
com¬
for
facilities
the
Respectfully submitted,
A.
W.
S.
Lkksnek,
H.
Rupert Jef¬
J.
Mitchell,
W.
Institute,
Chairman.
F.
B.
Addresses
respective
the
announced after
were
ag¬
meeting
a
Oliver J,
Sands,
■■
/
v.
-
was most gratifying and I
Southern white people have for
habit
the
among
colored
people
They have sold them homesteads
the time for settlement, when the
in
long¬
on
pressure
of home expenses became too
great.
They have also encouraged the edu¬
cation
progressive
that
of
no
much
the
the
us
"
to a
colored
thing,
one
in
the
even
of the colored
people is
in
wells "
is
the
problem.
be
" There'll be
realizing
man
so
vice versa.
the Southland.
How to make
Work
" Every day'll
large proportion of
a
be
Sun¬
people.
our
there,' is being changed to, " There'll
no sorrow
working there."
no
communities,-
steadies.a colored
The song,
day by and by," Is too popular among
The song,
tie,
family
thrifty citizen—how to reach the thousands of thriftless
more
ne'er do
children
not
saving habit.
Tbe wealth
him
should
give us a zest for recreation and
The
greatest handicap to this movement among our people
been the lack of funds to promote the plans as outlined by the
promoters of the movement.
has
To
this
and
sell
end, I have deemed
for.
Campaign
the
to
nominal
a
button"
sum,
it
say
badge,
or
the
wise
five
to
the
secure
ten
or
cents,
authority
issue
to
authorized
an
therefrom
proceeds
be
to
thrift
turned
over
Savings Bank Section through its Secretary ami used in paying
of promoting the movement among the colored
expenses
this
By
method,
inasmuch
and
to
clerk
hire,
made by' the Section under the present
corps
of
the
during
nation
ticular.
doubt
no
be
would
expense
be appreciated
growth
could
confined
self-
■
the habjt of saving than
wealth
made
campaign
the
by those who, like myself,
the
past
ten
twelve
or
of the financiers of the country
part
peo¬
be
the
as
postage.",
can
progressive
the
Report of Special Thrift Committee fpr Work Among
Colored People
Savings
Richmond subscriptions
in
delivered by Hon.
were
saving
localities.
time payments and extended
of officers
tVbight.
of Christmas
medium
the meeting.
over
encouraged
years
their
The remarkable progress
Washburn,
Moohhead
the
rally held
/ '/,/ /;•.'/
literature
James D. Garrett.
.
through
National Bank of Richmond, and Col. Wil¬
Dabney, Business Manager of the Richmond Chamber of Com¬
supporting,
Webb,
and
hours.
glad to preside
many
ple.
Y.
;
Mass.;
Boston,
Charles
L,
William
Mich.;
being saved through the savings departments of
are
the Liberty Loan
the actual
.
.
In
T.
was
throughout the
habit
The
highly desirable that all banks and trust companies
departments.
Prof.
Va.;
Detroit,
The interest shown by the colored people
v
the business
production
dollars
merce. ;.
come
Hence, the need for ah intensive educational
of
the
is
saving of money on the part of each Individual for investment
war
in
which
the
to
danger
Warren,
President of the American
tbe year
campaign, to induce greater production of necessary commodities
and the
in
diverted
J.
gregating twenty-five thousand dollars
the banks of the coun¬
upon
extravagance,
the country.
be
must
they shall be supplied.
exist
during
But if the people demand luxuries, it is an economic law that
war.
W.
institutions,
«f about two
Secretary for the purpose.
sold
of
Clubs.
liam
tide^ of
wage-earners
E.
Attorney General,
Parkersburg,
banking
hand.
on
Ohio;
Joseph
C.;
D.
Washington,
Charles H.
millions
.
written for rendering
was
Thirty copies of the book of forms" have been
and
University,
McDonald, Fort Worth, Texas/ Charles Banks, Mound Bayou, Miss. ;
L. Price, Palestine, Texas.
.Meetings have been held and an interest awakened, to the end that
having been exhibited in
banking service to soldiers by banks in cities adjacent to contonments;
a
Wash¬
Graham, D.D., Philadelphia, Pa.; Kelly Miller,
Howard
Ex-Assistant
Terrell,
Judge Robert H.
Stewart, Chicago, 111.; Dr. Ernest Lyon, Baltimore;
Md.; B. G. Fitzgerald, Atlantic City, N. J.; Thomas M. Crump, Mrs.
Maggie L. Walker, E. R. Jefferson, M.D., of Richmond, Va.; William
Nation-Wide
the
according to records, received.
Section
our
of
film
has had wide distribution,
1,000 motion picture houses,
of
Bbweu, Atlanta, Ga.; President
E.
N. C.;
IT.
comply with such requests.
Dollar
ewis,
Va.;
ceasing.
enabling
G.
Cincinnati,
Pennsylvania Bankers Association, which is located in the Philadelphia
over
W.
•Tone's,
district, Secretary Harrison prepared a text book on Thrift which was
printed by the Group and distributed to 50,000 school children through¬
"
C.;
Dean
f
Dr. J, W.
Dudley, Greensboro,
D.
A.M.,
At the request of Mr.
211
Los Angeles, California;
which amounted
cost,
SECTION.
have noted the
No
years.
has done
to
more
act
on
stimulate
has this movement for the conservation of the
in
general and -that of the colored people in
par¬
;»
*
Atlantic City, N. J., September 25, 1017.
;
According to the U. S. Census Reports for 1910, there Were
763)
nine
hundred
ber,
million,
and
eight
and
seven
and
hundred
sixty-three colored
(7,915,332)
hundred
I
twenty-seven
this country.
people in
(9,827,-
thousand,
Of
seven
this num¬
million, nine hundred and fifteen thousand, three
thirty-two reside hi the State of Virginia, North Carolina,
South
Carolina,
Texas,
Tennessee,
Georgia,
Alabama,"
Florida,
Missouri,
Oklahoma,
Mississippi,
Louisiana,
Kentucky and West
Arkansas,
their
the
This
sand,
leaves
four
(1,912.431)
hundred and
hundred
it is.
nine
hundred
twelve
and
it is safe to
thousand.
The
industrially and
are
commercially
in
the difference will not exceed
that
say
bulk
Far-seeing southerners
five
of
the
population will
remain
the. Southland, both
to
as
They have been
to
in
cause
colored
that section
cessation
a
people in
million dollars.
will
it
calling into consultation
be
of
of the country
the
this country has
with
of
the
cash
actual
time is
black
been estimated
the
to
be
much
than
more
that.
to
ever
faithful
and
by adding the
in
the
in
are
of
the
colored
and
people's
fifty
years'
property
usually placed at zero.
start
the
at
of
the
and
people of this country.
never
will be
North,
"No man
Is
close
the
of
In his annual
report
be
valued
of Public
and
of
the
three
po¬
value
War
of
and
was
to His
Lee Moore,
the
is
Excel¬
Auditor
Accounts/showed the value of colored people's property real
to lie ($41,081,460) forty-one million and eighty-one
four hundred and sixty dollars,
million,
two hundred
an
increase of
with
him;
The
colored
population
of
is
Virginia
seventy-one thousand and ninety-Six.
($3,232,487»
hundred and
(671,096)
six
eighty acres of laud, an increase in one year of (50,157)
sand one hundred and fifty-seven acres.
wealth of the colored people of Virginia
dollars and
deposit
on
If
it
the
seventy cents,
in
fifty-six thou¬
The per capital value of tin*
as shown is ($59.70) fifty-nine
This does not include the amount of money
the banks of
the
then that
the
the wisdom of your officers,
In extending the blessing of
colored people is apparent.
As
a
especially
your
very
It
able
Secretary
'if
TiiKkcge**
Institute
—hovuH.-
John Mitchell, Jr., Chainmin.
r
Pnmdcnl Mechanic*
Address of
paving $ Brink, Richmond, Va.
President of the Savings
George E. Edwards,
Bank Section
The
foundation
service
the
time
■
again.,
bureau
the
Robert
J.
Owens,
is. efficient
sixteen
and adequate
in pavings banks
Progress
its
During
years
life,
of
is not
the' value
in stimulating progress has been
Section
proved
association of its members affording oppbr-'
ideas, in tbe maintenance of a central
collection, analysis and dissemination of information
lu
the
exchange
the
for
depositors.
rule.
V-/'//'V;
banking,
of
concerning methods, investment of funds, etc., it; has more than Justified
its
existence
in
its
the
and
its
active
expectations and
The
government.
affairs
after birth,
ship
and;
in.
contribute*!
men
were
hopes
who
of those who luive been
brought
H
Into
and
banking
being
in,en of influence in the
full measure the responsibilities of trustee-.',
:world.- who appreciated in
large
a
degree/- not
opiy
to
savings
bank
but to the progress of om' economic life.
The excellent results evidenced from tiie work of the past year find
progress,
their cause in
Six
hanks
rency
the
in
and
in
as
a
of and teachers In schools of thrift.
The work
promoting thrift is deserving of the highest praise.
Section
in
Savings Bank System started a nation-wide thrift
public and social institutions adopting the
definite part of tbelr activities; thousands of
distributed thrift literature and their officers have become
thrift
have
liquidity
healthy and profitable growth of the previous years.
the
resulting
organizers
Section
the
ago
years
campaign
roads
;
aiul
Savings Bank
for
in all
progress,
this
from
and
tunity
directly
this thrift movement
of
customers
to
excepted
of
preliminary movement I named
Alabama
it
bands of foil."
.
The
following persons to co-operate with me in this great effort: Major
R.
Melon, President of Tuskegee Institute, Alabama; Emmett J.
Scott.
be
not only
for those who will:
■
teaching of
country.
present acreage owned by the colored people were divided up.
Secretary,
to the
and
(1,730,-
would give each man, woman and child two and one-half acres.
seems
R.
liuinlnsl
These colored people own
million, seven hundred and thirty thousand, nine hundred and
ouei
worth,
there is always 'work
the horny
are
■.
guided
and/tkirty*-two thousand, four
eighty-seven dollars over tbe year of 1915.
980)
Government,
true
the East, but by the West.
farm
personal,
thousand,
(lie
his
at
not only .by
the
his friends;
toward
militant
toward
And blessed
hundred
seven
for 1916
lency, H. C. Stuart, Governor of Virginia, Hon. C.
,
„
property" of the
The
Civil
forty-
into tbe world whose work
is born
born
not
six hundred million
latter.
the
South, he may la* able to ascertain
traitorous,
never
by tiie South, but by the
colored
one
hundred
of
colored- people,
by
And tools to work withal,
of the southern stales which segregates' the value of
property of its white ami colored citizens;
The former had about,
two
secure
be permitted to
those of
to
same
dollars per annum.
the
to
Secretary
the
may
conducted
country
the colored
friendly
Republican,
or
and
products; such as corn, wheat, bats/ rye, rice, hay, potatoes, sweet
(Virginia is
induced
to
same
where
wages
ablest
The value
tatoes, cotton, tobacco, cotton seed/ etc., will total
and
holdings
Add to it the deposits in the banks of tbe country and
found
be
may
the
rapidly approaching, if not actually at hand, when
Colossus,
always
.Democratic
„
the
forward
and
institutions
practically all of which
view of finding a remedy
a
value of
The
unrest.
some
localities
information
the
banking
already diplomatically making changes
living conditions, in order to check this immigration.
leaders
thou¬
Granting that the exodus northward and westward assumed
huge proportions,
one
million,
one
thirty-one residing In the northern and west¬
banking institutions
relative to the amount of the savings of the colored people in
Savings Bank Section, where the undersigned
The
states.
that southern
respective
obtain
Virginia.'
ern
hope
statistics
has
their
made
a
careful study of
securities.
It has opened
the desirability of securing cur¬
through direct or indirect, relationship to
of savings bank assets and
times of emergency
Federal
Reserve
System,
up
of tbe
affecting rail¬
the questions of greater
legislation
212
BANKERS'
i
The
effect
Federal
the
business of
loan
Farm
Loan
The
all
In
matters
of
strength
factor
in
In
General
the
the
Sections
of
Aluch
is
still
funds
is
fill
they
important
Is
depositor
The
the
recent
a
State,
savings
certain
banks
be
through
be
It
and
is
great
opportunity
commercial
banker
business
lending
of
closed
agency
to
the
profit
The
for
upon
laws,
largely
upon
ihe
rules,
of
and
promotion
methods
or
its
While
and
of
confines
1
to
faithful
they
should
activities
possible
to
fail
not
seize
to
but;
up
depositors,
hill
the
Albany,
of
N.
Y.,
success!
and
banks
equals
the
school
where
they
rests
the
teacher,
finance
a
the
learn
of
There
are
To
and
every
in
thrift
the
of
need
the
a
proper,
consideration
therefore,
to
the
that we should
education
and
aid
In
the
the
he
savings
bank
finance,
nlutual
in
people
seven
savings
personal
Every
from this
of
is
which
on
savings
a
bank
patient
beginners
are
should
be
a
able
in
to
the
time
on
depositors.
give great
War
will
of
in
in
Vice Pres. and
the' savings
billion
eight
This
taught
on
of
lesson
but
to
is
It
float
wide
a
thrift;
live
not
be
to
miserliness.
to
They
described
money
tlie
to conduct
a
I
of the
The
ment.
propose,
banks
more
the
be
that
for
and
.
.General Counsel
Treasurer
Secretary
Ass't Bec'y-Trefts.
will
HENRY
JOHN
THOMAS
DOREMUft
FREDERICK W. EGNER
JOHN C.
EISELE
LOUIS HOOD
L.
UZAL H.
EDWARD
P.
N.
WILLIAM
A.
respond
and
in
have learned
Ass't.
Sec'y-Treas.
Comptroller
........
...
.
.Title Officer
Ass't Title Officer
.Solicitor
.
..Ass't. Trust Officer
..
Ass't Trust Officer
....
.Hup't of Vaults
JEROME TAYLOR
WILLIAM J. WILSON
THEODORE M. WOODLAND
ARCHIBALD M. WOODRUFF
PRUDEN
C.
ROSS
P. S. YOUNG
SCHEERER
Is
EDWIN
YOUNG
to
more
necessary
was
BtackeH
morning,
in
the
The
past
to
for encouraging
banks
offer
services
co-operation
war..
curbing
speedy and
a
its
the
stint,
the
forcefully
Section
Company
EDWARD E. FELSBERO...
McCARTER
9ANFORD
nor
seem
Its
the
will
be
home,
learn
of
with
to
order
successful
to
in
the
bring
necessity of saving in
this
in
they will
HERBERT R. JACOBUS
McCARTER
the
of
to
accumu¬
suddenly turn
value
of thrift.
THEODORE HAMPSON
M. KEA3BEY
KUSER
I
FRANK T. ALLEN
going
condition
through
bring it to
undoubtedly
SIMON P. NORTHRUP....
FRANCIS
LAFFERTY.........
of
be
saving
in
skimp
mannerv this
DIRECTORS
HENRY M.
is
period
The
which
the
that
campaign
..
cent,
may
cash
should
England.
qualified,
people
CHARLES G. TITSWORTH
United
per
money
not
the
inestimable
CLARENCE G. A PPL ETON
Publicity Mgr.
it
factory,
improved and the people will
because
has
production
past
people
people
in
campaign,
war
the
It
the
20
the
less,
on
things,
Bankers Association
thrift
will
be
comfortable,
lesson
the
luxuries
of
therefore,
American
nation-wide
great
of
Expenditure
the
in
interesting
American
of
four-sevenths of the
must
therefore,
obtained
been
another
the
the exigencies of
meet
conclusion.
only
constituted.
eminently
is
is
namely,
production
year
almost
through campaigns It has directed
It
of
at
place
American
so
an
has
to
there
campaign, the details of which Mr.
sudi
Section
country;
attention
vention
in
us
saving.
eounhy
to
to
thrift
returned
first
With Increased wages, luxuries
condition
a
intensive
Bank
entire
not
are
England
government
Approximately
people
becoming
smallest
the
that'the
the
annum,
drawing
school,
eliminate
reverse.
Such
an
in
save
feared
likely to be the
comforts.
to
dollar
necessary
in. the
sensibly and
banks.
in
were
the
savings.
without
conceivable
every
Bankers
but with the cost, of living mounting,
the
loans
scale;
in
of
per
greater
much
of
power
war
is .manifestly
church,
the
in
to
It
a
an
and copies
purchase bonds.
must
ability
additional
the
for
is
by greater
dollars
wage
is estimated
Consequently,
secure
markets.
increased
of
dollars
EDWARD W. CAMPBELL
PAUL C. DOWNING
AARON ADAMS
of
\
smallest
the
Vice President
Vice Pres. and Trust Off.
JAMES H. SHACKLETON
HENRY SCHNEIDER.
loan
preparing
reserve
securities
OFFICERS
EDWARD A. PRUDEN
the
this country," however,
Iu
billions
purchasing
the
American
American
people,
own
raise
Vice President
JEROME TAYLOR.
in
Investors
UZAL II. McCARTER, President
EGNER.....
FRANK T. ALLEN
LOUIS HOOD
Com¬
consideration
the main,
Federal
Capital, Surplus and Undivided Profits, $6,000,000
W.
when
15,
a
securities "through
Newark, N. J.
FREDERICK
the
to
Executive
to for money to carry on the war,
go
our
income.
to
difficult
lations.
'
!
I
This
the American
of
parallel.
no
process.
and
Trust
,
the
the
meeting
our
attention
assisted
LARGEST IN THE STATE
:
in
of
even
moment.
the
of
which,
of several
them
to
that
entire
Savings
t housand
loan,
lias
by eliminating luxuries,
the
advice which
and
part
given over in their entirety
consisted
American
sold
to
with
people
citizens.
Every savings bank officer should l>e
training
and
of
worth
us
person
communities will
is
now,
and
since June
President Goebel
lessened
beginner
depositors
success.
than eight
give.
It
,
successful
Albanians
rudiments
the
The
his
happiness
vital
of
Secretary
The
country
turn
is
funds.
for helping the
hundred
one
number'of
business
school.
capitalists
realizing that substantially all his depositors
and
in
promote their education
the banks have
population.
building
should, be such
embryonic
opportunity
of
time
were
and
increased earnings.
is. about
needed
this
nation
their
due
excellent
an
oppor¬
confine
not
should
the
law.
.
million
half
Impair
every
should
The mutual savings banks of the country have more
What
but
officials
letter of the
They
investments,
proper
afd theft* depositors and
way
finance.
and
securing
bank
bonds.
savings of
estimated
States
part;
doing business,
hey should keep within the
rules,
give
future
meeting
largely
the governors
for
been
the
to
ojxhi
unintentionally
may
Spring
have
through such
the
of
far from the strife
Savings
tunity " for relieving the pain of the world."
their
of
officers.
through ultra-conservative management
bank's business.
do
to
well discussed at
was
considerable
campaign,
holdings
in
source
the
of
range
renders to its community does not depend
charters
character
loan
dollars'
war,
subordi¬
are
one
If
be
entirely
before.
as
therefore, gird ourselves
we
the
matter
a
for it
the
campaign.
in
which
billion
resulting in
day *
opportunity we enjoy is the chance to lie useful and
The service a savings bank
since
war
to
their
the current
the
wide
thrift
country
hut
out
lu our trust."
the
three
this
progressive.
' seize
to
We must keep
us,
devoted
they
for
(pay
finance
sources,
and
other¬
or
and content ourselves by playing a humbler
conquest,
and
succeeding loans, and how best we might act to curb the
furnished
War
characterized
ago
to
liquidated
David ITarum is forbidden
profit
has
closed,
and
intensive
the
at
times,
the
crowd
hand.
a
Is
at length,
for the flotation of the next
were
should be heeded
not
Considerations of
of
avenues
are
years
does
nature
for material gain enjoyed by
legitimate
many
great
privilege
and
Association offered the plan to the Secretary of the Treasury,
col¬
on
member.
company
of
Push
our
pain of the world.
the
to
of
finance
war
Liberty
were
plan
acceptances
conservatively
number
a
Gospel
the
the
bankers'
government
be
first
the
banks
York
the " Department of Mercy " and said:
as
the
by
of
particularly
the next
line of
the
loans
Include
to
trust
or
should
address
an
banks
Helpfulness,
of
bank
relieving
of
in
eligible for rediscount
paper
service
nated
us;
suggestions
books,
pass
on
determine
The activities of the Section's office
to
That the list of investments, '
:
education
and
to
same
prepared
should
if
come
care
economic
Our
tendency of savings depositors to make heavy withdrawals from savings-
enlarged,
bank
a
such
savings bank
a
savings
our
the
Confidence,
confidence.
upon
aid
help
the
be
must
We
to
years
sympathetic
give.
be
not
each
For
the
to
us
mittee.
by
is
will
war
and
for the
will
upon
Section
subject,
the
him
to
for
morning.
books
" Leave well enough alone,"
savings
in
life of
the
problem
dwell
not
The
deserved.
significant
commercial
with
mutual
Robinson
the service of
Gospel
in
rendered
prime essential
the
things,
this
Equally
Savings Banks Association of New
should
advice,
supplied
The
L.
service
the
suffering.
require all
possible
change
greater effort,
The
the
degret?,
bank.
The public demands service In keeping with
longer.
wise,
of
Bank
The oft quoted
will
play
of
based
bank Is
securities, and
classes
Reserve
high
to a
after
will
will
stock,
capital
no
is
l>eople of our country.
It
are
receiving the service.
meeting of the
lateral, short-term
Federal
they have
hold,
field.
bank
savings
it
and
will
bringing order out of disorder.
for
the other
savings bank
mutual
should
character
the
savings
a
world
in
co-operation
and
situation
whole
vital
a
families
assistance
smallest
savings
bank
the savings
and
splendid
mutual
a
Some of the suggestions were
for
legal
"In
the
continues,
war
privation
homes
many
social
become
Section
mutual
of
to
practical
The proper Investment of the depositors*
committee made several
a
progress.
E.
the
should be cultivated and
therefore,
it
in
public demand and
person
of
success
the
Association
serve
has
the
Bank
rendering service effectively,
of
mortgage
gratifying.
the business of
the part
Iu
confidence
no
done
It
and
Savings
most
potentialities
a
In
individual
and
the
depositors.
important
bank.
.
bring
banking.
savings
to
increasing.
Association
is
be
to
the
confidence of their
At
is
between
Association
that
nevertheless,
the
on
effectively
to
Unlike other banking Institutions,
great.
the
the
of
Office
is
work
recognized
pertaining
Section
the
affairs
the
have
savings bank has been and is being closely observed.
a
Our office Is well equipped and prepared
members
will
Act
CONVENTION.
•
the
Con¬
conducting
the
the'final
Govern¬
analysis,
be happier and made
and
will
appreciate
'
;
.•
.
.
•
_
■
'
'
_
'
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is one of the leading financial centers in the East, and
T>
niiau eipllia
one
of the best equipped Banks in that city
The Girard National Bank
WITH
RESOURCES
OF
OVER
Charles m. Ashton, Cashier
Joseph Wayne, Jr., Pres.
A. W.
$83,000,000
Evan Randolph, Vice-Pres.
You Need
to
a
plckford, Asst. Cashier
Alfred
Barratt, Asst. Cashier
Philadelphia Account
Properly Handle Your Business
THE CORN EXCHANGE BANK
WILLIAM AND BEAVER STREETS, NEW YORK
Organized 1853
Inaugurated Branch Banking 1899
THIRTY-EIGHT
The Branch
the
and
other
our
Resources
protection and assistance of
V: WILLIAM A. NASH
GREATER
IN
Banking system pledges
$10,577,526.48
,
BRANCHES
every
WALTER
E.
NEW YORK
Capital and Surplus of
of
$142,199,158.97
depositor in
every
FREW
to
branch.
FREDERICK T. MARTIN
*
President
Chairman of the Board
Vice-President
ORGANIZED in 1900,
Franklin National
The
Bank
.
of
Philadelphia
has
capital of one million dollars,
surplus and
profits of
three
three
and
over
quarter
million dollars, and total re¬
sources
of
over
sixty million
dollars—a record of growth,
substantial
and
unequalled.
j.
r. McAllister
j. a.
-
Vice-President
harris, Jr.
e.
wm. hardt
Vice-President
p. passmore
j.
e. e.
213
shields
President
-
-
-
-
-
-
Cashier
Assistant Cashier
FINANCE
BUY
public utility developments.
AND
SELL securities.
DESIGN steam power stations, hydro-electric
develop¬
ments, transmission lines, city
gas plants,
ways,
industrial plants and buildings.
CONSTRUCT either from
•
our own
•
signs of other engineers
REPORT
•
'
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•
'
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i
'
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'
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on
•
'
sions
MANAGE
NEW YORK
'
•
or
<■
designs
from de-
or
"I
•.
•
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architects.
or
public utility properties, proposed exten-
' '
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.
and interurban rail¬
new
"
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*"
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"
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"
-
projects,
railway, light,
power
and gas companies.
BOSTON
214
CHICAGO
THE
J.G
Financiers
Engineers
Contractors
Managers
Finance
enterprises in the public
utility and industrial fields. Also
assist in the reorganization or con¬
solidation of existing properties, or
in the
financing of extensions and
improvements.
Purchase and offer for sale general
investment securities with estab¬
lished record of
after
earnings, selected
thorough examination as to
safety.
Perform
designing, engineering or
work.
Engineering
construction
reports
Manage
and valuations made.
for clients public utility
properties. "
and industrial
43
Exchange Place
.
.
New York
Chicago
215
GRACE
R.
W.
& CO.
MERCHANTS
FRANCISCO
SAN
NEW
La
Lima, Peri;
W'AIA.AOj
Chile
Santiago,
Paz, Bolivia
conception, Chile
Valparaiso, Chili:
Peru
ORLEANS
NEW
YORK
V.u im iA,
arkocipa, Perp
Chile
Agents in all of the Principal Cities of Central and South America
STEAMSHIP
AGENTS:
ATLANTIC
CO.
STEAMSHIP
PACIFIC
&
GRACE LINE
Direct
Sailings
New
from
Arenas,
York
twice
Guayaquil,
Coquimbo, Coronel, Eten,
Salaverry, Talcahuano,
for
month
a
Valparaiso
Antofagasta,
■
Mollendo," Pacasmayo,
Iquique,
and
other ports
GRACE BROTHERS &
London Agents
Callao,
Arica,
Payta, Punta
inducements
as
offer.
CO., LTD.
.»
GRACE & CO.
Rio
l»e
Santos
Janeiro
Brazil
W.
R.
New
Credit
of
EXCEPTIONAL
York
Bills
Cable Transfers
■
FACILITIES
FOR
COLLECTING
Members
and
New
Chicago
IN
CENTRAL
AND
of
SOUTH
Exchange
AMERICA
SECURITIES
INVESTMENT
I
-
GRACE & CO.'S RANK
'
Letters
• ■
•
York,
Boston/
Stock Exchanges
Direct Private Wires
to
-
All Principal
Markets
BOSTON
NEW YORK
CHICAGO
PROVIDENCE
PORTLAND
DETROIT
ESTABLISHED im
216
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