The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
tttannal
SECTION.
CONTAINING REPORT OF THE
CONVENTION OF AMERICAN BANKERS' ASSOCIATION
Held
at
WASHINGTON, OCT.
JO,
tt,
12
and
13,
1905
INDEX TO THIS SECTION:
Page.
EDITORIAL ARTICLES-
CONVENTION AND CURRENCY
THE CONVENTION'S WORK
THE TRUST COMPANY SECTION
THE SAVINGS BANK SECTION
BANKING SECTIONTRADE EXPANSION— SHAW
BANK EXAMINATION— RIDGELY
SCOTCH BANKING—BLYTH
OUR COMMERCE— GOULDER
THE SITUATION— VANDERLIP
MEMBERSHIP BENEFITS— HILL
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
to
-
-
-
-
-
For Index
-
-
DETAILED PROCEEDINGS
ADDRESSES OF WELCOME
PREST. SWINNEY'S ADDRESS
REPORT OF SECRETARY
REPORT OF TREASURER
-
-
-
-
73
74
76
77
81
84
87
90
94
97
99
99
101
103
104
Page.
BANKING SECTIONPROTECTIVE COMMITTEE
COMMITTEE ON UNIFORM LAWS
REPORT EXECUTIVE COUNCIL
COMMITTEE ON EDUCATION - REPORT CURRENCY COMMITTEE
REPORT ON CIPHER CODE
AUDITING COMMITTEE REPORT TRUST COMPANY SECTIONTRUST COMPANY GROWTH
BANKING PUBLICITY
REAL ESTATE DEPARTMENT
DETAILED PROCEEDINGS
SAVINGS BANK SECTION-
-
-
-
-
-
-
-
-
-
-
-
-
OHIO BANK LEGISLATION
ACCOUNTS IN TWO NAMES
DETAILED PROCEEDINGS
-
-
-
-
-
-
-
-
-
-
104
105
106
112
116
117
123
127
129
130
133
142
145
148
Advertisements, see pages 79 and 80
Octolber 21
7
ISO©.
CSEMESa
WILLIAM
B.
DANA COMPANY, PUBLISHERS.
PINE STREET, corner PEARL STREET,
Entered according to Act of Congress
in
year
1905,
by William
B.
Dana Company,
NEW
YORK.
in office of Librarian of Congress,
Washington, D. C.
Chartered 1836
GIRARD TRUST COMPANY
PHILADELPHIA, PA.
SURPLUS, $7,500,000
CAPITAL, $2,500,000
Acts as Trustee of Corporation Mortgages,
Registrar and Transfer Agent.
Assumes Entire Charge
Acts as Executor, Administrator, Trustee,
Assignee and Receiver.
Depositary under Plans of Reorganization.
Real Estate.
of
Interest Allowed on Individual
and Corpo-
Financial Agent for Individuals or
ration Accounts.
Corporations.
Safes to Rent in Burglar-Proof Vaults.
OFFICERS.
EFFINGHAM
WM. NEWBOLD ELY, First
CHARLES JAMES RHOADS,
GEORGE
MINTURN
Vice-President.
Third Vice-Prest.
Asst. Treas.
H.
STUART
3D,
T.
WRIGHT,
Real Estate
B,
MORRIS,
President.
ALBERT ATLEE JACKSON,
and
Treas.
Officer.
Second
Vice- President.
EDW. SYDENHAM PAGE, Secretary.
SAMUEL W. MORRIS, Asst. Secy.
J. SNOWDON RHOADS, Trust Officer.
GEORGE TUCKER BISPHAM,
Solicitor.
MANAGERS.
EFFINGHAM B. MORRIS,
JOHN A. BROWN, Jr.,
BENJAMIN W. RICHARDS,
JOHN B. GARRETT,
WILLIAM
WILLIAM H. GAW,
FRANCIS I. GOWEN,
GEO. H. McFADDEN,
HENRY TATNALL.
ISAAC H. CLOTHIER.
H. JENKS,
THOS. DeWITT CUYLER,
C.
HARTMAN KUHN,
JAMES SPEYER,
AUGUSTUS D. JUILLIARD,
EDWARD J. BERWIND,
RANDAL MORGAN,
EDWARD T. STOTESBURY,
RICHARD A. McCURDY,
GEORGE G. HAVEN,
CHARLES
B
F.
E.
INGERSOLL,
CLYDE.
The American Trust
and Savings Bank
Chicag°
Established 1889
STATEMENT OF CONDITION, AUGUST
RESOURCES.
Loans and Discounts
Bonds
Cash and Exchange
26, 1903
LIABILITIES.
$17,438,307.43
4,599,662.91
12,062,526.13
Capital Stock
Surplus and Profits
Deposits
$3, 000, 000. 00
2,044,354.86
29,056,141.61
$34,100,496.47
EDWIN
A.
POTTER,
President.
PHILLIPS, Vice-President.
T. P.
JAMES R. CHAPMAN, Vice-President.
JOHN JAY ABBOTT, Vice-President.
OFFICERSi
CHARLES S. CASTLE, Cashier.
$34,100,496.47
FRANK H. JONES,
Secretary.
SCHEIDENHELM, Assistant Cashier. WILLIAM P. KOPF, Assistant Secretary.
OLIVER C. DECKER, Assistant Cashier.
IRVING J. SHU ART, Assistant Secretary.
EDWIN L. WAGNER, Assistant Cashier.
WILSON W. LAMPERT, Auditor.
GEORGE B. CALDWELL, Mgr. Bond Dept.
F. J.
DIRECTORS
JOY MORTON, Joy Morton A Co.
E. H. OAKY, Chairman D. S. Steel
E. P.
Corporation.
President Atchison, T. & Santa Fe Ry.
P. SHONTS, Chairman Isthmian Canal Commission
RIPLEY,
THKODORE
NORMAN B. RKAM. Capitalist.
JOHN
F. HARRIS, Harris, Scotten Co.
T. P. PHILLIPS, formerly Pres. 1 ederal Trust and 8avlngs Bank.
W. H. McDOEL, Prest. Cnero., Indpls. * Louisville R.K.
H. THORNE, Montgomery Ward & Co.
CHARLES
E. J. BUFFINGTON, President Illinois Steel Company.
WILLIAM KENT, Kent & Burke.
V. A. WATKIN8, Capitalist.
GlI.BERl B. SHAW, 1 umber.
BENJAMIN THOMAS, President Chgo. & Western Ind R B
CHAS. H. DEERE, Deere & Co., Mollne, 111.
JAMES R. CHAPMAN, Vice-President.
EDWIN A. POTTER, President.
General Banking, Trust, Bond and Savfngs Departments.
Wm.
A. Read
&
Co.
Bankers
Members
of
New York
the
and Boston Stock Exchanges
Investment Securities
Deposits
received
and
Interest
allowed on Balances,
subject to draft at sight.
Commission orders executed
25
43
State Street
Nassau
205 La
BOSTON
in all the principal markets.
Street,
New
York
Maryland Telephone Building
Salle Street
BALTIMORE
CHICAGO
Kean, Van Cortlandt
30 Pine Street,
New
&
Co.,
York.
BANKERS.
TRANSACT A GENERAL FOREIGN and DOMESTIC
BANKING BUSINESS.
DEALERS
IN
INVESTMENT SECURITIES.
BROWN BROTHERS
New
Philadelphia, 4th
York,
and Chestnut
59
&
CO.,
Wall Street
Boston, 60 State
Streets.
Street.
AND
BROWN &
ALEX.
SONS,
ALL CONNECTED BY PRIVATE WIRE
Baltimore and Calvert Streets, Baltimore.
MEMBERS OF THE NEW YORK, PHILADELPHIA, BOSTON AND BALTIMORE STOCK EXCHANGES.
Execute Orders on Commission for Purchase and Sale of
Stocks, Bonds, and all Investment Securities.
BILLS OF
EXCHANGE BOUGHT AND
SOLD.
Arrangements made with Banks and Bankers in the
United States enabling them to Issue their own Drafts on
Foreign Countries.
Commercial Letters of Credit and Travelers Letters of Credit
issued, available in all parts of the world.
Also Lnternational Cheques.
Collections
made on all points ; Telegraphic Transfers of Money
made between this Country and Europe.
Deposit Accounts of American Banks, Bankers, Firms
Individuals received upon favorable terms.
Certificates
and
of Deposit issued payable on demand or at a
stated period.
BROWN, SHIPLEY &
FOUNDER'S COURT, LOTHBURY,
AND FOR THE CONVENIENCE OF TRAVELERS,
LONDON.
2
123
CO.,
E. C,
PALL MALL,
S.
W.,
LEE, HIGGINSON
&
CO.,
Boston, Mass*
INVESTMENT
SECURITIES.
LETTERS OF CREDIT,
COMMERCIAL AND TRAVELLERS',
AVAILABLE IN ALL PARTS OF THE WORLD.
FOREIGN EXCHANGE
DRAWN ON
Messrs. N. M.
ROTHSCHILD & SONS,
AND
Messrs.
COUTTS & COMPANY,
LONDON;
Messrs.
MORGAN, HARJES & COMPANY,
PARIS;
Messrs. M. M.
WARBURG & COMPANY,
HAMBURG;
Messrs.
GEBRUDER SCHICKLER,
BERLIN.
Members
New
York, Boston, Philadelphia and Chicago Stock Exchanges,
HARVEY
FISK
& SONS
NEW YORK
BOSTON
62 Cedar St.
35 Congress Street.
MEMBERS OF THE NEW YORK AND BOSTON STOCK EXCHANGES
UNITED STATES BONDS,
RAILROAD, MUNICIPAL
AND OTHER
INVESTMENT SECURITIES
Representatives in
PHILADELPHIA
JAMES
H.
CHAPMAN,
421 Chestnut St.
OUR
LIST OF
HARTFORD, CONN.
WILKINSON,
Conn. Mutual Life Bldg.
H. L.
CHICAGO
DRAKE,
Continental Natl Bk. BIdg.
D. K.
INVESTMENT SECURITIES SENT ON APPLICATION
The New York
26
Trust
Company
BROAD STREET
CAPITAL
$ 3,000,000
SURPLUS and PROFITS
DEPOSITS (October I, 1905),
Allows interest on deposits subject
9,900,000
51,383,205
to cheque.
Manages
estates.
Acts as executor,
trustee, etc.
Trustees
Charles S. Fairchild, Chairman
Otto T. Bannard
S.
Reading Bertron
James A. Blair
Robert
W.
de Forest
John B. Dennis
Marshall Field
Elbert H. Gary
W. Harkness
Charles
James
J.
Hill
N. Hoffstot
F.
Arthur Curtiss James
Frederic B. Jennings
Walter Jennings
Willard V. King
Woodbury Langdon
John A. McCall
Gordon Macdonald
John
J.
Mitchell
James Parmelee
John
S.
George
Phipps
W.
Perkins
E. Parmalee Prentice
Edmund D. Randolph
Norman B. Ream
B. Aymar Sands
John W. Sterling
James Stillman
Myles Tierney
P. A. Valentine
OFFICERS]
OTTO
T.
BANNARD,
WILLARD V. KING, Vice-President
HENRY E. AHERN, Secretary
FREDERICK
J.
HORNE,
Asst. Secretary
President
ALEXANDER S. WEBB, Jr., V ice = President
MORTIMER N. BUCKNER, Treasurer
HERBERT W. MORSE, 2nd Asst. Secretary;
Incorporated 18 8 9
& Robinson
Fisr
BANKERS
Members New York Stock Exchange
35 Cedar Street
28 State Street
B O S T O N
NEW YORK
INVESTMENT DEPARTMENT
UNITED STATES BONDS, Guaranteed
and other investment
securities
current offerings suitable
Funds sent on
Exchange and
ties
for
application.
in
bought and
sold.
Stocks
List of
Savings Banks or Trust
Orders on
New York
sound and marketable unlisted
Stock
securi-
executed on commission for cash.
BANKING DEPARTMENT
DEPOSIT ACCOUNTS
and Individuals received subject
cates of deposit issued payable
date.
Interest allowed
of Corporations, Firms,
to sight draft.
on demand or
Certifi-
at a stated
on daily balances and on money
deposited pending investment.
FISCAL AGENCY
ACCOUNTS
dividends,
securities
etc.,
and
received
corporations.
for
the
payment
of bonds, coupons,
for the transfer
and
from municipal,
railroad,
registration of
and other
Gilbert
M. Plympton
Thomas A.
William L. McKenna
Gardiner
Plympton, Gardiner &Co.
BANKERS
27 William
Street,
Corner Exchange Place
New York
Chicago Office
232^La Salle Street
Boston
Office
50 Congress Street
Members New YorK and Chicago StocK Exchanges
Dealers in Government, Municipal
and Railroad Bonds*
Stocks and
Investment
other
Securities
Guaranteed
Conservative
suitable
for
National, State and Savings
Banks,
Estates
Lists sent
and
Individuals*
on request.
Correspondence solicited with those desiring to increase
or
reduce
their holdings of securities.
cA ecu rat
We
invite Deposit
e
Quotations F urn is hea.
Accounts subject to cheque and allow interest
on Daily Balances.
Commission orders for the purchase
or sale of Bonds and StocKs executed
in all marhets,
Dividends and Coupons collected and remitted without charge*
Negotiate Loans and issue Mortgage Bonds of
Railroads and Public Service Corporations.
MclNTYRE
T. A.
Members of
New York
&
CO.
Stock Exchange.
Broadway,
71
New
York.
Long Distance
Cable Address, "Tyrewell."
Telephone,
uy.
BONDS,
INVESTMENT
SECURITIES,
STOCKS.
ORDERS EXECUTED ON COMMISSION FOR PURCHASE
AND SALE OF SECURITIES ON ALL EXCHANGES.
Lists of Selected
Bonds and
the highest class
of Investment Securities on request
We
invite the correspondence
of
banks and
other financial institutions and of trustees, the
investment of whose funds
Deposits Received and
Interest allowed on Balances
Subject to Draft at Sight.
is
restricted.
.
.
.
Travelers' Letters of Credit
available in
of the
all
parts
World.
Full information co7iceming Stocks and Bonds of Railroads, Public
Service and Industrial Enterprises furnished on application.
UNLISTED
and
INACTIVE SECURITIES BOUGHT
Descriptive
Bond
and
SOLD
Lists Issued Monthly.
BRANCH OFFICES:
15
Congress Street, Boston.
10 South Street, Baltimore.
The Rookery, Chicago.
Kilmer Building, Binghamton, N. Y.
White Memorial Building, Syracuse, N. Y.
Ellvranger
&
Barry Building, Rochester, N. Y., and, Virginia Hot Springs.
^
'
Hew York
and trust Company
Eife insurance
CHARTERED
IN 1830
WALL STREET, NEW YORK
52
Grants annuities.
Accepts Trusts created by Will or otherwise. Manages property
as Agent for the owners.
Allows interest on deposites payable after ten days'
notice.
Legal Depository for Executors, Trustees and Money in Suit.
Accepts only Privaie trusts ana decline
HENRY
PARISH,
WALTER KERR,
Vice-President
GEORGE M. CORNING, Secretary
W.
Z.
ROE,
L.
President
HENRY
1st
IRVING
Corporation or other Public Crusts.
all
PARISH,
Jr.,
ZELM,
van
2d Vice-President
Asst.
Secretary
Asst. Secretary
TRUSTEES
Charles G.
Henry
TRUSTEES
Thompson
Joseph H. Choate
Parish
Frederic
W.
Samuel
Stevens
Stuyvesant Fish
\Ihis
John L. Cadwalader
done the /'//'/Jay ofjirrjc /T). i/9/~Prefent Directors ol' 'aid Bank
I
Edmund
Cornelius
L. Baylies
—
George
S.
Bowdoin
^.i
gjyffobej-t
Lenox
1
1
1
EftfF
iMatthe-wr-CTarKson
Ifaac
Henry Lewis Morris]
Ei'q!"
Governeur
Low Elq r John Murray
Nicholas
JEfqr
Efafia
George G. DeWitt
Efq.!
Cornelius Vanderbilt
Gidian Ludlow Elcj.'
yjGerard Baneker liiqllGabriel W.m Ludlo\vEI'q f|
* jonalliaii
Burrall Efqf Cafhierifim
Henry A. C. Taylor
yU
ll\orii'i>
Juilliard
!
.William Henderfon El'qrjoh'ri Atkinfon
S
Augustus D.
Ray Esq President
SsAViUiani Lau^ht EfqT
Henry C. Hulbert
Thome
Biit'liaiuni L1q!
r
C.
O'D.
Iselin
W. Emlen
//h-jc
mcwrt'd
f/ttt'i
*
wre
( 0/11 t//:/>7t>//rrs
.
/<?/•
c/errc///tf/lYJgm
of
jiti.it
(yt'tltci.
l|
\^;
H. Van Rensselaer
*
Kennedy
I.
Philip Schuyler
Roosevelt
'culiofl
Henry
John McL. Nash
John
1
l»lll«Mt«III»ll!*l!l*tllolltwlH©!!i»l|[oi
Barbey
I
John Jacob Astor
|
Cleveland H. Dodge
THE ABOVE CORNER-STONE WAS
REMOVED FROM THE FOUNDATION
UNDER THE SOUTH-EAST CORNER OF^
BUILDING N952 WALL STREETdUNE
JJ,
Claflin
F. Augustus
Schermerhorn
188ej^
^—
.--^
Corner Stone of the old United States Branch Bank,
Boom of the New York Life Insurance and Trust Company,
Placed in the Directors'
in 1888.
STATEMENT
AtThe close
of business
on June 30, 1905
ASSE.TS
Real Estate
Bonds and Mortgages
Loans on Collaterals
Bills Receivable
Cash in Company's Vaults
LIABILITIES
Capital
#1,751,1500.00
3,006,656 75
-
#1,000,000.00
Surplus Fund and Undivided Profits
(MARKET value)
7,721,743-93
14,168,288.10
1,425,000.00
Cash in Bank
2,093,176.38
Accrued Interest, Rents, Suspense Acc't,&c. 589,063.75
Bonds and Stocks,
Market Value
11,739,039.70
4-342,594-9 6
DEPOSITES IN TRUST
33,912,888.39
Annuity Fund
2,181,137.59
Life
Insurance
Interest
Due
Fund
Depositors, Taxes,
390,792.97
&c.
727,054.70
$42,554,468.61
9
DONALD MACKAY
Member
New York and
Boston
Comprising the Majority of the
Stock Exchanges
LATHAM A. FISH
GEO. D. MACKAY
Partners
i
Member New York Stock Exchange
G.
F.
the Late
of
Firm
VERMILYE $
TROWBRIDGE HOLLISTER
of
CO.
W. KENDRICK
MACKAY $ CO
BANKERS
United
Bonds
States
and
Securities bought
ties
suitable
and other Investment
sold.
Lists
Savings Banks,
for
Securi-
of
National
Banks, Trust Funds or Private Investors sent
Orders
on application*
for the
sale of Securities executed
Boston and
on the
Philadelphia
Deposit Accounts
of
purchase or
New
York,
Stock Exchanges.
Corporations, Firms
or
Individuals received subject to Draft at Sight.
Interest
allowed on Daily Balances.
Connected
by private wire with correspondents, Messrs.
Verner
Co., Philadelphia, Messrs. Thos.
Branch
&
&
Co.,
Co., Hartford,
New
Richmond, Messrs. Richter
The
Haven.
Edwin
Stanley,
Nassau and Pine
Charles
W.
&
Scranton Co.,
Chicago representative,
W.
The Rookery.
13 Congress Street
Streets
NEW YORK
BOSTON
10
The Hanover National Bank
of
the City of
New York
Cor. Nassau and Pine Streets
CAPITAL
$3,000,000
SURPLUS
and PROFITS
$7,000,000
Established 1851
OFFICERS
WOODWARD,
JAS. T.
President
JAS. M.
DONALD,
Vice-President
WM. HALLS,
Jr.,
Vice-President
WILLIAM WOODWARD,
Vice-President
ELMER
E.
WHITTAKER,
Cashier
WM.
I.
LIGHTHIPE,
Ass't Cashier
HENRY
R.
CARSE,
Ass't Cashier
ALEXANDER
D.
CAMBELL,
Ass't Cashier
CHARLES
H.
HAMPTON,
Ass't Cashier
The Hanover Safe Deposit Co
Hanover Bank Building,
VERNON H. BROWN, President
HENRY R. CARSE, Treasurer
New York
WILLIAM WOODWARD, Vice-President
WILLIAM W. HILL, Sec'y and General Manager
11
Guaranty Trust Company
OF NEW YORK
MUTUAL
NASSAU STREET
LIFE BUILDING, 28
London
Lombard
Office, 33
St., E. C.
Depositary of the Government of the Philippine Islands.
SURPLUS, $5,500,000
CAPITAL, $2,000,000
Interest
cheque accounts and on Certificates
paid on
Accounts
of Deposit.
Bankers and Trust Companies solicited.
List of carefully selected securities for investment mailed upon application.
of Banks,
Acts as registrar and transfer agent for Corporations, and as trustee
under corporate mortgages.
OFFICERS.
JOHN W. CASTLES,
President.
ALEXANDER J. HEMPHILL,
OSCAR L. GUBELMAN, Vice-President.
MAX MAY, Manager Foreign Dept.
E. C. HEBBARD, Secretary.
R. C.
NEWTON,
Trust
WM.
C.
F. C.
HARREVLAN,
Vice-Presidemt.
Treasurer.
Assistant Treasurer.
EDWARDS,
Officer.
DIRECTORS.
Walter
George F. Baker.
George S. Bowdoin.
John w. Castles.
E. H. Harriman.
Haven.
G.
Frederic Cromwell.
Walter R. Gillette.
Frederick
Charles R. Henderson.
Adrian Iselin, Jr.
G
G. Oakman, Chairman.
James N. Jarvie.
Augustus
Edwin Hawley.
W.
Norman
D. Juilliard.
B.
Ream.
Daniel G. Reid.
Henry H. Rogers.
James Spe
Speyer.
H. McK. Twombly.
Richard A. McCurdy.
Levi P. Morton.
Oscar G. Murray.
Harry Payne Whitney.
Vanderbilt.
Morristown Trust Company
MORRISTOWN,
Capital $600,000
Surplus and Profits $1,590,000
3°/o
Interest
on Daily Balances
Accounts may be opened
(or closed) at
of
$100
any time
satisfactory references,
and interest
as long as the balance
$100 or over.
is
Assets $10,000,000
Depositors 4600
Deposits $7,500,000
Pay
N. J.
will
or over.
in person or
by
Subject to check
on stating- usual
be paid from time opened until closed
letter
Loans made on Real Estate, Mortgages and Marketable Collateral Security.
Issues Foreign Drafts and Letters of Credit payable throughout the world.
Receives on deposit, without charge, all Wills in which it is named as Executor, GuardExecutes trusts of every description and takes charge of real
ian or Trustee.
and personal estates in absence of owner.
SAMUEL FREEMAN,
AURELIUS
B.
HULL, VicePres.
WILLARD
W.
President.
CUTLER, 2nd V-Pres.
JNO.
H. B.
CORIELL, Scc.&Treas.
DIRECTORS
Frederic Cromwell
Charles F. Cutler
Willard W. Cutler
Samuel Freeman
Aurelius B. Hull
Gustav E. Kissel
Luther Kountze
Richard A. McCurdy
G. G. Frelinghuysen
George G. Haven
D. Willis James
O. H. Kahn
Walter G. Oakman
H. McK. Twombly
James A. Webb
12
Henry
F.
Taylor
Thomas W. Cauldwell
Louis A. Thebaud
John W. Castles
National Union
Bank
Maryland
of
MARYLAND
BALTIMORE,
3 and 5 E. Fayette Street.
$1,000,000
Capital,
Surplus
and Undivided
390,000
Profits,
Accounts and correspondence
Send us your business.
remitted
for
solicited.
Collections
promptly and on reason-
able terms.
WILLIAM WINCHESTER,
fSAAC H. DIXON,
ROBERT
MILTON
B.
Vice-President
I
A. DIGGS,"
i
President
f
t
Cashier
6
WILLIAMS,
Asst. Cashier
DIRECTORS
Isaac H. Dixon,
Robt. K. Waring,
Daniel E. Conklin,
Wm.
H. Crawford Black,
Andrew D. Jones,
Clarence W. Watson,
A. Marburg,
R. Brent Keyser,
Edwin G. Baetjer
Tunstall Smith,
William Winchester
Safe Deposit and Trust
Company
OF BALTIMORE
9,
ii,
13
SOUTH STREET.
Capital and Surplus, $1,800,000
Chartered 1864.
Acts as Trustee of Corporation Mortgages, Fiscal Agent for Corporations and
Individuals, Transfer Agent and Registrar. Depository under plans of reorganization.
Acts as 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.
well
Safes for rent in its large fire and burglar proof vaults, with spacious and
lighted coupon rooms for use of patrons*
Silver and other valuables taken on storage.
DIRECTORS
H.
WALTERS
B. RAMSAY
JOHN
E. H.
PERKINS
MICHAEL JENKINS
BLANCHARD RANDALL
JOHN W. MARSHALL
13
WALDO NEWCOMER
NORMAN JAMES
SAMUEL M. SHOEMAKER
THE RIGGS
NATIONAL
BANK
OF "WASHINGTON,
D. C.
RIGGS
&
Jtxly
1,
Successors to
Organized
CO.
1896
OFFICERS
CHARLES
C.
DIRECTORS
GLOVER.
CHARLES C. GLOVER
THOMAS HYDE
JAMES M. JOHNSTON
President
THOMAS HYDE
ARTHUR T. BRICE
WM. J. FLATHER
Vice-President
AILES
M. E.
Vice-President
ARTHUR
T.
WALSH
HENRY HURT
BRICE
THOS.
Cashier
WM.
J.
FLATHER
JOHN
Assistant Cashier
H. H.
ROSS PERRY
R.
FLATHER
Assistant Cashier
|
CAPITAL, $1,000,000
F.
McLEAN
JAMES STILLMAN
F. A. VANDERLIP
MILTON E. AILES
R.
SURPLUS, $1,200,000
Foreign Exchange Bought and Sold. Collections Made Throughout the World.
Cable Transfers. Letters of Credit. Orders for Stocks, Bonds and Investments.
&
Middendorf, Williams
BANKERS
Co.
BROKERS
and
MEMBERS BALTIMORE STOCK EXCHANGE
Direct
Wire
to
New
York.
BALTIMORE, MD.
Maryland Casualty Bldg.,
Stocks and Bonds Bought and Sold on Commission.
Special attention given to
Municipal and other Investment Securities.
Buyers of Foreign Exchange.
The National Metropolitan
Citizens
C4
™™
s
$1,528,000
Bank
DEPOSITS,
Washington, D. C.
Solicits
Trust
E. S.
S.
the business of Banks, Bankers and
Companies
OFFICERS
PARKER, President
W. WOODWARD,
Vice-Pres.
GALES MOORE, Cashier.
W. W. W. PARKER, Ass't Cashier
J.
11
$4,183,578
throughout
country.
the
DIRECTORS
Woodbury
Ulalr
John
H.
Moore
E.
Frauds
Geo. H, Barries
W. H. Moses
Chas. .lacobsen
Allison Nallor, Jr.
.Joiin P.
Myron M. Parker
•las. H.
Tims. K. Jones
Win. S. Knox
John
I*.
Lamer
David Moore
jackeon
11.
ltainton
Hugh HeMy
Cuno II. itudolph
lilggs
Seo, Triirsdell
Wilkins
W liner
Win. A. Wimsatt
B,
\Y.
Woodward
E. S. Parker
J.
William A. Mearns
William Henry
Lewis Johnson
Members
New
tChas. P. Williams
& Co.
York Stock Exchange
BANKERS
1
F
3 9
1
Street,
Washington, D. C.
-
Eflablished 1858
Investment Securities
Foreign Exchange
Cable Transfers
Letters of Credit
MERCHANTS
NATIONAL BANK
FARMERS
and
BALTIMORE, MD.
CORNER SOUTH AND LOMBARD STS.
EARNED SURPLUS, $325,000
$650,000
N.W.
CAPITAL,
CHAS. T.CRANE,
President.
WM.
P.
OFFICERS
CARTER
HARVEY,
G. OSBURN,
Cashier.
Vice-President.
CORRESPONDENCE
J.E.MARSHALL,
Asst. Cashier.
INVITED.
Stein Brothers
INVESTMENT SECURITIES.
DEPOSITS SOLICITED.
Members Baltimore Stock Exchange.
BALTIMORE.
603-607 Fidelity Bldg.,
Permanent Location
after January
15
i,
217 E. Baltimore St.
NATIONAL BANK OF VIRGINIA
RICHMOND, VA.
W. M. HABLISTON,
W. M. ADDISON,
President
Capital,
Profits,
Assets, (over)
made
S.
MORTON,
Asst. Cashier
$ 500,000
Surplus and
Accounts
O.
Cashier
180,000
4,000,000
-
Bankers, Merchants and others received on most favorable terms.
and promptly remitted for. Commercial and travelers' credits for use in
Safety deposit vault (nothing superior in the State).
of the world.
Boxes three dollars and upward.
of
Collections
all
parts
PLEASE READ THIS ADVERTISEMENT.
THE NATIONAL MECHANICS BANK
Oxc
BALTIMORE, MARYLAND.
CAPITAL,
SURPLUS,
JO HA
B.
RAMSAY,
$1,000,000.00
1,200,000.00
JAMES SCOTT,
President.
CHAS. HANN,
Cashier.
Ass' t Cashier.
DIRECTORS.
Alexander Brown,
D. D. Mallory,
Lawrason Riggs,
John A. Whitridge,
George C. Jenkins,
John B. Ramsay,
John Pleasants,
Seymour Mandelbaum,
Jesse Hilles,
Miles White,
Geo. K.
Jr.
McGaw,
E. B. Hunting.
WRITE US ABOUT \OUR ACCOUNT,
FREDERIC
\VM.
WE WAN!
IT.
GEORGE
SCOTT
J.
SEAY
SCOTT & STRINGFELLOW
BANKERS AND BROKERS
Members
New York
Stock Exchange
RICHMOND, VA.
We own and
offer for
SeJe
Mortgage 4 Per Cent. Bonds.
:
$200,000 Colorado <& Southern Railway First
Price on application.
ON REQUEST WE WILL SEND COPIES OF OUR CIRCULARS
No. 44
No. 47
No. 48
Atlantic Coast Line (with Map)
Louisville and St. Paul
No. 51
No. 53
No. 54
Canada Southern
No. 55
Louisville and Northwest
1G
&
Southern
Central of Georgia
American Car & FoundryColorado
•
The National Bank of Commerce
OF NORFOLK, VIRGINIA
$500,000
Surplus, $300,000
Capital,
DIRECTORS
E. G.
DIRECTORS
FOSBURGH
DONOVAN
JNO. L. ROPER
H. L. SCHMELZ
J. W. HUNTER
A. C. HUMPHREYS
TAZEWELL TAYLOR
D. F.
W.
T.
GREENWOOD
T.
H.
F. E.
H.M.
KERR
B.
is
W. LEIGH
T. S
N.
THIS BANK
fully
equipped
and corporations.
interview with those
It
to care for the
WILLCOX
MARTIN
WILCOX
A. H.
SIMCOE
firms
F.
SOUTHGATE
BEA.MAN
accounts of banks, individuals,
respectfully invites correspondence or a personal
who contemplate making changes
or opening
new accounts
OFFICERS
NATHANIEL BEAMAN,
M. C.
TAZEWELL TAYLOR,
President.
FEREBEE,
Assistant Cashier.
HUGH
M.
Vice-President.
PORTER, Assistant Cashier.
KERR,
Cashier.
F. A.
The
Citizens
The Norfolk
National Bank
Bank
NORFOLK, VA.
Capital
=
Surplus
-
CALDWELL HARDY,
C.
W. GRANDY,
OF NORFOLK, VA.
$400,000
475,000
President,
Capital
Vice-Prest.
SCHWARZKOPF, Cashier.
W. A. GODWIN, Asst. Cashier.
A. B.
Surplus
With; Well Established ConnecBank has Unsurpassed
Facilities in
Every Branch of
$300,000
265,000
tions, this
Legitimate Banking.
J.
W. W. MOSS, President.
W. PERRY, Vice-President.
L. WRENN, Vice-President.
TENCH F. TILGHMAN, Cashier.
GEORGE J. TWOHY, Trust Officer.
NORMAN BELL, Jr., Asst. Cashier.
McD.
Accounts of Banks and Bankers
received on most Favorable Terms
All
17
Profitable
Business
Solicited
LATHAM, ALEXANDER & CO.
Bankers
AND
Cotton Commission Merchants.
NOS.
1
6
AND
1
WALL
8
NEW
STREET,
YORK.
Conduct a General Banking Business.
Members
Accounts
of
of the
New York
Stock and Cotton Exchanges.
Banks, Bankers, Merchants and Individuals received on favorable
terms, and Interest allowed on Daily Balances, subject to check at sight.
CONTRACTS FOR COTTON FOR FUTURE DELIVERY BOUGHT AND SOLD ON COMMISSION.
The
LIBERTY
NATIONAL BANK
of
New
139 Broadway
18
York.
:
Bank
National
IN
INCORPORATED
North America
NEW YORK
of
1851
Surplus, $2,000,000
Capital, $2,000,000
Deposits, $20,000,000
UNITED STATES, STATE AND
CITY DEPOSITARY
ALFRED
H. CURTIS, President
EDWARD
CHARLES W. MORSE,
WIRE,
B.
Vice-President
HENRY CHAPIN,
Cashier
JR.,
FREDERICK SWEASY,
J.
Vice-President
Assistant Cashier
DIRECTORS
WARNER
HENRY H. COOK
WARNER VAN NORDEN
JOHN H. FLAGLER
WILLIAM F. HAVEMEYER
MAHLON D. THATCHER
M. VAN NORDEN
OAKLEIGH THORNE
HENRY CHAPIN, JR.
CHARLES T. BARNEY
HUGH J. CHISHOLM
AMBROSE MONELL
CHARLES W. MORSE
ROBERT M. THOMPSON
ALFRED
H.
CURTIS
Letters of Credit
Issues Travelers'
ESTABLISHED
1853
Organized 1803.
ERGHANTS'
NATIONAL
BANK
The
Bank
Oriental
OF
NEW YORK
OF THE CITY OF NEW YORK
42
Wall Street
182=184
Capital, $2,000,000 Surplus, $1,400,000
OFFICERS
President.
Vice-President
Cashier.
Asst. Cashier.
Samuel S Campbell,
S.
Branch, Bowery and Grand St.
:
Robert M. Gallaway,
Elbert A. BrinckerhofT,
Albert
Broadway
Cox,
CAPITAL,
=
=
$750,000.00
=
DIRECTORS
John A. Stewart,
Ch'man Board
Elbert A. BrinckerhofT,
Chas. Stewart Smith,
Capitalist.
Gustav H. Schwab,
Donald Mackay,
Robert M. Gallaway
& Co.
Co.
President.
Brown Bros. & Co.
Vice-Pres.Central Trust Co.
Pres. Gorham M'f g Co.
Eldredge, Lewis & Co.
Harriman & Co.
Charles D. Dickey,
George Sherman.
Edward Holbrook.
Orris K. Eldredge.
Joseph W. Harriman,
IT. S.
SURPLUS AND PROFITS,
Tr. Co.
$1,100,000.00
Merchant.
Oelrlchs
Mackay &
R.
W. JONES,
Jr.,
President
NELSON G. AYRES,
LUDWIG NISSEN,
Promptness, courtesy and careful at=
tention to the wants of our customers
ist
Vice-President
)
ERSKINE HEWITT,
^Vice-Presidents
CHARLES
)
J.
DAY,
GEO. W. ADAMS,
R. B.
Cashier
ESTERBROOK,
Asst. Cashier
are some of the features of our busi=
ness policy.
Accounts Invited.
Specially
Equipped
for
Handling
the Accounts of Banks and Bankers
19
j^^^^^/^^^.^.^.^.^.^.^.^.^.^.^^
Th.
IRVING
Chambers
National Bank,
NEW
I
Capital and
CHARLES H. FANCHER, President
CHARLES F. MATTLAGE, Vice-Pres't
SAMUEL S. CONOVER, Vice-Pres't^"
BENJAMIN F WERNER, Cashier
Surplus,
$2,000,000
I
!
West Broadway
YORK.
Street and
EUGENE VAN ZANDT,
Asst. Cashier
I
««
A
Clearing House
BanK
proved stability and unquestioned standing."
of
^^•fe^t^^^^t^^'fe^
* TRUST CO. £ *
358
66 Broadway,
100 W. 125th St.
CHARLES
B. L.
3d
Fifth Avenue,
Av. & 48th St.
1
T. BARNEY, President.
FRED'K L. ELDRIDGE, 1st Vice-Pres.
JOSEPH T. BROWN, 2d Vice-Pres.
JULIAN M. GERARD, 3d
Vice-Pres.
ALLEN, 4th Vice-Pres.
FRED'K GORE KING, Sec'y and Treas.
J. M'LEAN WALTON, Ass't Sec'y.
HARRIS A. DUNN,
Trust Department, WILLIAM B. RANDALL, Trust
H. M. De
Ass't Treas.
Officer.
Ass't Trust Officer.
Branch, W. F. LEWIS, Manager.
LANOIE,
Harlem
Bronx Branch, JOHN BAMBEY, Manager.
BOARD OF DIRECTORS.
S. AUERBACH
HARRY B. HOLLINS
CHARLES T. BARNEY
JOSEPH
A. FOSTER HIGQINS
JAHES H. BRESLIN
I. TOWNSEND BURDEN
HENRY F. DIMOCK
CHARLES F. WATSON
FREDERICK G. BOURNE
C.
T.
ALFRED G. EVANS
JAMES B. HAGGIN
JAMES W. GERARD
HOSHER B. PARSONS
CLARENCE nOROAN
ALFRED B. MACLAY
WD. SLOANE
HOSES TAYLOR
JOSEPH
PAYNE WHITNEY
COOK
T.
BROWN
HENRY R. HOYT
GEORGE C. CLARK, Jr.
WILLIAM A.TUCKER
CHAS. F. HOFFMAN
EDGAR J. LEVEY
G. LOUIS BOISSEVAIN
A. H. BARNEY
LAWRENCE PERKINS
CHARLES
JOHN MAQEE
HENRY C. BERLIN
CHARLES W. GOULD
FRED'K L. ELDRIDGE
HENRY W.d-FOREST
Seaboard National Bank
NEW
Capital,
YORK,
$500,000
Surplus (earned), $1,478,000
S.
G.
BAYNE, President.
NELSON, Vice-President.
W. K. CLEVERLEY, Assistant Cashier.
8.
WE MAKE
N. Y.
C.
G.
J.
C.
H.
THOMPSON,
Cashier.
DAVI8, Assistant Cashier.
ESPECIAL EFFORTS TO PLEASE OUT-OF-TOWN CORRESPONDENTS
ACCOUNTS SOLICITED.
20
Q L°NML Trust OriPdNT
222
BROADWAY, NEW YORK
CAPITAL, SURPLUS and UNDIVIDED PROFITS, $2,600,000
Transacts a
General
Trust
Business
Takes entire charge of Real Estate.
Acts as Trustee
for Railroad and other Mortgages.
Transacts a General
Banking Business and allows interest on daily balances.
OFFICERS
JOHN
RICHARD DELAFIELD,
CORD MEYER,
JAMES W. TAPPIN,
PHILIP S. BABCOCK,
E.
BORNE,
President
ARPAD S. GROSSMANN, Treasurer
EDMUND
Vice-Presidents
JOSEPH
JUDSON, Secretary
BABCOCK, Trust Officer
L.
N.
TRUSTEES
HENRY
O.
HAVEMEYER
THEO. W. MYERS
GEO. WARREN SMITH
PERRY BELMONT
ANSON R. FLOWER
WM. T. WARDWELL
LOWELL M. PALMER
JOHN E. BORNE
PERCIVAL KUHNE
CORD MEYER
DANIEL O'DAY
SETH M. MILLIKEN
RICHARD DELAFD3LD
JAMES W. TAPPIN
GEO. W. QUINTARD
FRANK CURTISS
L. C.
DESSAR
HENRY N. WHITNEY
YERNON H. BROWN
GEO.
EDWARD
IDE
STEPHEN PEABODY
The Washington Trust
Co.
OF THE CITY OF NEW YORK
Stewart Building, 280 Broadway
Capital, Surplus and Undivided Profits,
FRANCIS H. PAGE, 2d Vice-President
M. S. LOTT, Secretary
DAVID M. MORRISON, President
GEORGE AUSTIN MORRISON, [ Vice
P. C.
Presidents
LOUNSBURY,
$1,500,000
H. F. PRICE, Asst. Secretary
TRUSTEES
Charles H. Russell
George H. Prentiss
Phineas C. Lounsbury
David M. Morrison
Seth E. Thomas
Lucius K. Wilmerding
|Geo. Austin Morrison
Joseph C. Baldwin!
Clarence W. Seamans'
Charles F. Cutler
Carl Schefer
William Whiting
E. C.
H.
Converse
John Harsen Rhoades
J. S. Hall:
Francis
William
Charles
Francis
H. Leggett
A. Putnam
M. Clark
H.
Page
INTEREST ALLOWED ON DEPOSITS
by the Supreme Court of the State of New
York a legal depository for Court and Trust Funds, and is authorized to do any and all other
business usually done by Trust Companies of responsibility and standing.
This
Company
is
especially designated
21
United j^Mw Jttcrtpjp mtd
feat (fmttpttj,
CEDAR STREET, NEW YORK
WEST END OFFICE: 73d STREET AND BROADWAY
55
CAPITAL, $2,000,000.00
The Company
New
is
SURPLUS, $4,000,000.00
a designated legal depositary for the State of
York, the City
of
New
York, and for Trust and Court funds.
Pays Interest on Deposits
Allows Special Rates on
subject to Check.
Time
Deposits.
Issues Foreign Drafts and Letters of Credit payable throughout the World.
Also issues Domestic Letters of Credit available in all parts
of the United States, Canada, Mexico and the West Indies.
OFFICERS
GEORGE
LUTHER KOUNTZE,
M.
CUMMING,
President.
CARL G. RASMUS, Treasurer.
WILLIAM C. IVISON, Asst. Treasurer.
Vice-President.
EBEN B. THOMAS, Vice-President.
JOHN W. PLATTEN, Vice-President.
CALVERT BREWER, Secretary.
ALEX. PHILLIPS, Mgr. Foreign Dept.
H. L. SERV0SS, Mgr. West End Office.
DIRECTORS
GEORGE W. YOUNG,
C.
LEDYARD
B.
COFFIN.
GEORGE A. COX.
WILLIAM P. DIXON.
ROBERT A. GRANNISS.
GEORGE G. HAVEN, JR.
GEORGE
CHAS. M. HAYS.
C. A.
M.
R. HENDERSON.
GUSTAV E. KISSEL.
LUTHER KOUNTZE.
WILLIAM B. LEEDS.
RICHARD A. McCURDY.
CLARENCE H. MACKAY.
ROBERT OLYPHANT.
C. C.
BOULTON.
DUMONT CLARKE.
WILLIAM
CUMMING.
Chairman
MORTIMER
CHAS.
CUYLER.
CHARLES D. DICKEY.
BLAIR.
L.
SCHIFF.
VALENTINE P. SNYDER.
LOUIS A. THEBAUD.
EBEN B. THOMAS.
JAMES TIMPSON.
ARTHUR TURNBULL.
CORNELIUS VANDERBILT
Commercial Trust Company
of New Jersey
15
EXCHANGE
PLACE, JERSEY CITY, N.
J.
SURPLUS AND PROFITS, $2,100,000.00
CAPITAL, $1,000,000.00
Modern Construction Located at Terminus
Railroad Ferries from New YorK and Brooklyn
Safe Deposit Vaults of Best
of
Pennsylvania
Boxes $5.00 to $500.00 per annum.
Acts as Administrator, Executor, Guardian and Trustee for
Pays Interest on regular Check Accounts and on Certificates
Individuals.
of Deposit.
Special attention given
Loans money on Bond and Mortgage and approved securities.
Acts as Trustee under Corporate Mortgages and as Registrar
and
facilities
offered to Corporations
organized under the Laws of the State of
Prompt returns made
and Transfer Agent for Corporations.
for Collections
New
on
Jersey.
all
points
in
the
United States.
OFFICERS
JOHN W. HARDENBERGH, President
GEORGE W. YOUNG, Vice-President
ROBERT S. ROSS, Vice-President
WILLIAM
JAY
J.
S.
J.
FIELD,
PERKINS,
Secretary and Treasurer
Assistant Treasurer
RICHARD TENNANT,
Assistant Secretary
DIRECTORS
Walter W.
Ammon
C. Ledyard Blair
Frederick G. Bourne
William Brinkerhoff
John D. Carscallen
Frederic Cromwell
C. C. Cuyler
Jacob J. Detwiller
Charles D. Dickey
Oscar L. Gubelman
John W. Hardenbergh
George G. Haven
James N. Jarvie
William B. Jenkins
C. H. Kelsey
Gustav E. Kissel
Eben
Richard A. McCurdy
Robert H. McCurdy
Allan L. McDermott
James G. Morgan
Moses Taylor Pyne
Myles Tierney
James Timpson
Robert S. Ross
Edwin A. Stevens
22
Thomas
James A. Macdonald
B.
Cornelius Vanderbilt
John J. Voorhees
George W. Young
Augustus Zabriskie
.
Long Island Loan
&
Trust Company
Brooklyn -New York City
Surplus
Capital, $1,000,000
&
Profits,
$1,600,000
DEPARTMENTS
Banking, Trust, Safe Deposit, Letters of Credit, Foreign Exchange
EDWARD
DAVID
0.
OFFICERS
CLINTON L. R0SS1TER, First Vice-President
FREDERICK T. ALDRIDGE, Secretary
HERRITT, President
LEGOET, Second Vice-President
WILLARD
Market
and
P.
SCHENCK,
Assistant Secretary
Fulton
172 MONTAGUE STREET
Bedford Branch, cor. Bedford Ave. & Halsey Street
National Bank
BROOKLYN,
NEW YORK
Capital and Surplus, $2,700,000.00
Of
New
York.
Capital,
-
Surplus,
Undivided
-
$1,000,000
-
1,000,000
Profits,
350,000
ALEXANDER GILBERT, President.
ROBERT A. PARKER, Vice-President.
THOMAS STEVENS, Cashier.
J.
JOHN
H.
CARR,
Ass't Cashier.
Accounts Received on the Most Liberal Terms
OFFICERS
EDWARD J OHSSOS, President
Consistent with Sound Banking.
J. G. DETTMER,
ViceCHARLES L. SCHENCK, I. „_,„,„„,
HORACE J. MOUSE, Presidents HENRY M. HEATH, rofSSSSL.
CHARLES A. BOODY, Secretary WILLIAM A. FISCHER, secretaries
)
S
)
Damtlton Zxust Co.
191
Montague
St.,
New York
Brooklyn,
Statement of Condition at the Close of Business,
(Resources
Oct.
(market value)....
Bonds and Mortgages
Loans on Collateral..
.
Real Estate
Interest due
Company
$500,000.00
$107,000.00
Surplus and Undivided
1,127.087.68
2,031,922 50
655,675.00
4,065,130 49
516,69^.90
741,062.87
604,^29.27
26,407.46
64,947.66
Interest
due
Deposi55,997.86
4,000.00
7,126,498.61
Dividends Unpaid
$8,813,669 15
SILAS
B.
WILLIAM BERRI, 1st Vice-Pres.
GEORGE HADDEN, 3rd Vice-1'res.
23
2, 1905.
liabilities
New York
City Bonds,
(market value)
Stocks and Bunds,
City.
85 00
$8,813,669.15
DUTCHES,
President
and Sec'y
C. HUMSTONE. 2nd Vice-Pres.
ROBERT S. GIRLING, Asst. Sec'y
WALTER
CLEMENT & SMITH
BANKERS AND BROKERS
NO.
1
NASSAU STREET (CORNER NASSAU AND WALL)
NEW YORK
MEMBERS NEW YORK STOCK EXCHANGE
Chas. D. Barney (& Co.
BANKERS AND BROKERS
Nos. 122
and 124 South
Koiartli
=
St.,
Philadelphia
-
BRANCH OFFICE, NORTH AMERICAN BUILDING.
No. 2 5 Broad Street,
Dealers in
New YorK
Stocks and Bonds Bought and
Commission and Carried on favorable Terms.
Investment Securities.
Sold on
MEMBERS NEW YORK AND PHILADELPHIA STOCK EXCHANGES
W.
EUGENE KIMBALL
R.
ESTABLISHED
J.
LEEDS JOHNSON
1865.
KIMBALL &
CO.
Stocks-Bonds
Investment Securities
Members New York Stock Exchange.
7
NASSAU
ST.,
NEW
YORK.
KNAUTH, NACHOD & KUHNE,
15
WILLIAM STREET,
-
NEW YORK.
BANKERS,
INVESTMENT SECURITIES.
Members New York Stock Exchange.
GOVERNMENT BONDS; GERMAN GOVERNMENT AND MUNICIPAL BONDS.
LETTERS OF CREDIT AND INTERNATIONAL
TRAVELERS' CHECKS AVAILABLE EVERYWHERE
CORRESPONDENTS THROUGHOUT THE WORLD
FOREIGN EXCHANGE.
BRITISH
24
The, Lincoln National
NEW YORK
OF THE CITY OF
FortySecond
St.,
Designated Depositary of the United States, State of
opp. Grand Central Station
Bank
New York and City of New York
OCTOBER. 2nd. 1905.
300,000.00
S
CAPITAL,
SURPLUS AND UNDIVIDED PROFITS,
1,444,981.83
DEPOSITS,
16,500,000.00
OFFICE Its
President,
Cashier,
Vice-Presidents, E. V. W. Roasiter, J. D. Layng, William A. Simenson
Thomas t,. James
David C. Grant
Assistant Cashiers, Talcott C. Van Sunt voonl,
Charles Elliot Warren
DIRECTORS
E. V. W. Rossiter, William Kockefeller, Eben E. Olcett
Layng, James Stillman, William K. Vanderbilt, Jr., Joseph P. Grace
Thomas I.. James, Matthew C.
Charles C. Clarke,
J. D.
D. Borden,
Accounts of Banks, Bankers, Merchants and Individuals invited. Foreign and Domestic Exchange bought and sold.
Telegraphic transfers of money on all points. Letters of Credit issued available in all parts of the world. Correspondence solicited. Burglar proof vaults. Fire proof storage. Safes $5.00 per year and upwards.
PAUL SCHWARZ,
H. M.
President.
HUMPHREY,
Vice-Prest.
The Mutual
W.
&
F.
H.
KOELSCH,
MOTT,
G. S.
WEBB FLOYD,
Ass't Secretary.
Treasurer.
Secy.
Ass't Secretary.
Company
Alliance Trust
OF NEW YORK
66
BEAVER STREET
Capital, Surplus and
and 323
GRAND STREET
Undivided Profits, $1,026,596
Receives deposits subject to check and allows interest on daily balances.
Certificates of Deposits (time and demand) issued. Exceptional facilities for the collection of out-oftown items.
Authorized by law to act as Executor, Administrator, Trustee, Guardian, etc., and is a legal depository for Court and Trust Funds.
Every
facility offered
merchants
for the transaction of their
bingank business.
EDWARD SWEET
& CO.
BANKERS,
1
7 Nassau Street,
-
NEW YORK.
-
Members
New York Stock Exchange.
Established
1
854.
N.
W. HALSEY
&,
CO.
BANKERS
TRANSACT A GENERAL BANKING BUSINESS. ALLOW INTEREST ON
DEPOSIT ACCOUNTS SUBJECT TO CHEQUE. ACT AS FISCAL AGENTS
FOR INDIVIDUALS AND INSTITUTIONS. DEAL IN CAREFULLY SELECTED
BONDS FOR CONSERVATIVE INVESTMENT
OF INSTITUTIONAL AND PRIVATE FUNDS
CORRESPONDENCE INVITED
NEW YORK
CHICAGO
SAN FRANCISCO
BOSTON CORRESPONDENT
PHILADELPHIA
-
25
MERRILL, OLDHAM & CO.
JAS. H.
20
BROAD
OLIPHANT &
BANKERS
ST.
CO.
NEW YORK
INVESTMENT SECURITIES
Our
Department
is well equipped with official reports and original data, and is preobtainable information concerning Railroad and Industrial Corporations.
We give particular attention to individual investors, and will furnish upon application a list of
desirable investments.
Dividends and interest collected and remitted.
Statistical
pared to furnish
all
Members New York Stock Exchange.
Correspondence Invited.
HODENPYL, WALBRIDGE & CO.
BANKERS
7
WALL
NEW YORK
STREET,
INVESTMENT
T.
BONDS
&
W. STEPHENS
CO.
BANKERS
2
Wall
Street,
New York
Corporation and Municipal Bonds
For Investment
HIGH GRADE RAILROAD BONDS
Suitable for Banks and Bankers
GUARANTEED
R. R.
STOCKS
(EXEMPT FROM TAX)
Suitable for Executors, Trustees, &c.
Descriptive List of Offerings on Application
;'i8
c/v>JDl>.fC5<w <k> Co.
WALL
Members
STREET,
of the
New York
NEW YORK
Stock Exchange
The Market
Bank
Street National
Philadelphia, Penna.
Surplus and Net Profits, $750,000
Capital, $1,000,000
GEORGE
JAMES
F.
George H. Earle,
Jr.
EARLE, Jr., President
SULLIVAN, Vice-President
GEORGE
H.
WILLIAM
Deposits, $7,500,000
McCREARY,
D.
P.
SINNETT,
2d Vice-President
Cashier
DIRECTORS
Isaac
Blum
Richard Y. Cook
We
invite the
James
F. Sullivan
Stuart
Wood
Accounts
of
George D. McCreary
John G. Croxton,
William F. Harrity
'
August B. Loeb
Theodore Voorhees
Banks, Corporations, Firms and Individuals and will be pleased to
who
meet or correspond with those
contemplate making changes or opening
W. Clark
E.
Thomas F. Jones
W. Atlee Burpee
Samuel Y. Heebner
A. Maxwell Sheppard
John J. Henry
new
accounts.
Co.
(EX
BANKERS
J
39 South Fourth Street, Philadelphia
ESTABLISHED
Street Railway
1837.
Bonds and Stocks a Specialty
Members of the Philadelphia and Netu York Stock Exchanges.
New
K
York Correspondents
{
WALTER
L.
FIRST NAT?ONA^ BANK.
INTEREST ALLOWED ON DEPOSITS.
REED
ROSS
Morgan &
Ross,
A.
MORGAN
Co.
BANKERS AND BROKERS
INVESTMENT SECURITIES
112
SOUTH FOURTH
Members
The Real
PHILADELPHIA
ST.
of the
New York
and Philadelphia Stock Exchanges.
Estate Tru£t
OF PHILADELPHIA
Company
SOUTH-EAST CORNER CHESTNUT AND BROAD STREETS
Surplus and
Capital, full paid, $1,500,000
FRANK
K.
$1,450,000
WILLIAM F. NORTH,
SAMUEL F. HOUSTON, Vice-President
President
THOMAS B. PROSSER, Real Estate Officer
WILLIAM R. PHILLER, Secretary
ROBERT D. GHRISKEY, Cashier M. S. COLLINGWOOD, Ass't Treasurer
ROLAND L. TAYLOR, Ass't Secretary
DIRECTORS
HIPPLE,
Frank K. Hippie
John'.F. Betz
profits,
R. Dale Benson
Joseph DeF. Junkin
William W. Porter
John H. Converse
Edward P. Borden
William A. Patton
27
Treasurer
S.Weir Mitchell, M.D. Bayard Henry
Frank C. Robert
Samuel F. Houston
The
Fourth Street National Bank
of Philadelphia
CAPITAL,
-
$3,000,000
SURPLUS AND PROFITS,
$5,100,000
-
Accounts of Banks and Bankers
Solicited.
Exceptional Collection Facilities.
Foreign Exchange Bought and Sold.
R. H.
RUSHTON,
President.
POTTS, Vice-President.
F. TYLER, Vice-President.
M. FAIRES, Vice-President.
SHANBACKER,
F. L.
E. F.
S.
McLEAR, Assistant Cashier.
FRANK G. ROGERS, Manager
B.
W.
Cashier.
Z.
Foreign Exchange Dept.
ORGANIZED
TheF armers'
1807
and JVlechanics' JNational
Dank
Philadelphia
CAPITAL
$2,000 000
SURPLUS AND PROFITS
1,080,000
DIVIDENDS PAID
HOWAFD
HENRY
B.
12,307,000
W. LEWIS,
BARTOW, Cashier.
OSCAR E. WEISS,
President.
JOHN MASON,
Transfer Officer.
Assistant Cashier.
Accounts of Banks and Bankers, Corporations and Mercantile Firms Invited.
Graham
&,
Co.
BANKERS,
435
chestnut
s..
Philadelphia.
INVESTMENT SECURITIES
LETTERS OF CREDIT.
28
THE PHILADELPHIA NATIONAL BANK
PHILADELPHIA, PA.
ORGANIZED,
NATIONAL BANK,
1803.
CONDITION AT THE CLOSE OF BUSINESS SEPTEMBER.
1864.
1905.
30,
RESOURCES.
...
Loans and Discounts,
Due from Banks,
Exchanges for Clearing House,
Cash and Reserve,
-
-
$25,834,928 28
4,513,285 15
$2,709,875 80
9,134,716 53
-
11,844,592 33
$42,192,805 76
liabilities.
$1,500,000 00
2,605,555 68
Capital Stock,
Surplus and Net Profits,
Circulation,
i Individual,
Deposits
(
1,037,300 00
m
$22,007,55944
Bank,
15,042,390 64
37>Q49.95Q 08
officers.
PARKER SHORTRIDGE,
N.
$42,192,805 76
President.
LINCOLN GODFREY,
LEVI
Vice-President.
HORACE FORTESCUE,
Cashier.
George
RUE,
Vice-President.
HARRY J. KESER,
N. Parker Shortridge
Richard Ashhurst
Lincoln Godfrey
John H. Converse
L.
DIRECTORS.
Wood
A.
Alfred C. Harrison
Levi L. Rue
George H. Frazier
J.
Assistant Cashier.
James F. Hope
Cassatt
Percival Roberis, Jr.
Effingham B. Morris
George H. McFadden
Edward T. Stotesbury
Randal Morgan
R. Dale Benson
Accounts of Banks and Bankers Respectfully Invited.
ORGANIZED 1S64
Capital
$750,000
Surplus and
The
Central
National Bank
THEO. KITCHEN,
President
WILLIAM POST,
Cashier
Profits
$2,500,000
WILLIAM Y.CONRAD,
Asst. Cashier
Philadelphia
Accounts of Banks, Bankers, Individuals, Firms, Corporations, Trustees and
Estates invited on the most Liberal terms consistent with safe banking.
James Carothers
William
E.
von Bonnhorst
JAMES CAROTHERS & CO.
STOCK AND BOND BROKERS.
MEMBERS PITTSBURGH STOCK EXCHANGE.
PITTSBURGH.
305 Fourth Avenue,
INVESTMENT SECURITIES LOCAL TO PITTSBURGH A SPECIALTY.
29
Mellon National Bank
OF PITTSBURGH
Capital and Surplus,
A
$5,100,000
complete banking organization,
equipped
along
customers
its
conservative
all
modern
serve
to
of
lines
finance.
Special
given
attention
accounts
Banks
of
to
and
the
Trust
Companies.
A.
R. B.
MELLON,
W. LEWIS,
President
Vice-President
W.
B.
W. MELLON,
S.
MITCHELL,
Asst. Cashier
H.
S.
A.
A.
W.
ZIMMERMAN,
C
KNOX,
Vice-President
Cashier
McELDOWNEY,
Asst. Cashier
Asst. Cashier
DIRECTORS
Andrew W. Mellon
H. C. McEldowney
Henry C. Frick
Jas. H. Lockhart
B. F. Jones,
Richard B. Mellon
Jr.
William G. Park
Henry C. Fownes
George I. Whitney
Robert Pitcairn
William B. Schiller
A. C.
514 SmitKfield
P. C.
M. Schoonmaker
Henry Phipps
David E. Park
William N. Frew
J.
Knox
George E. Shaw
J.
Marshall Lockhart
409
St.
30
Knox
John B. Finley
Walter S. Mitchell
FiftK
Avenue
Oldest Bank West of the Alleghany Mountains
ORGANIZED
The Bank
1810
of Pittsburgh
NATIONAL ASSOCIATION
THE BANK THAT HAS GROWN UP WITH PITTSBURGH
SURPLUS. $2,600,000.00
CAPITAL, $2,400,000.00
OFFICERS
WILSON
JOSEPH
W.
F.
A.
SHAW,
President
PAULL, Vice-President
BICKEL, Cashier
W.
R.
GEORGE
Business
M. RUSSELL,
J.
J.
F.
WRIGHT,
L.
D.
AYRES,
Assistant Cashier
Assistant Cashier
Auditor
Relations With Conservatively
31
JACK,
First Assistant Cashier
Managed Banks Desired
I
J.
L.
HALL,
President.
HENRY
M.
T.
BARTLETT,
P.
LeGRAND,
The Merchants
R. E.
&
SEIEELS,
B.
FARLEY,
Cashier*
Assistant Cashier.
Bank
Planters-Farley National
MONTGOMERY,
CAPITAL
LOUIS
Vice-President.
Assistant Cashier.
ALA.
SURPLUS
$500,000.00
$150,000.00
UNDIVIDED PROFITS $U 2,500.00
Adequate Resources, Conservative Management by Experienced Officers, a Modern Equipment in all Departments,,
and Direct Banking Connections, enable us to guarantee QUICK AND SAFE RETURNS to all banks sending us
Alabama and other Southern Collections at the very LOWEST RATES.
This Bank has the LARGEST CAPITAL, SURPLUS, UNDIVIDED PROFITS AND DEPOSITS of any
BANK in
this city.
'DROP US
'
See our Card advertisement
A LINE.
in
ANY
'
'
Bankers'
Directory.
The
Organized 1 8 J
Surplus and Profits
Capital
$225,000
$100,000
American
National Bank
The
fl^
of
Louisville,
^
Ky.
$800,000
Capital,
200,000
Surplus and Earnings, over
Montgomery, Ala.
5,000,000
Deposits,
A. M.
'BALDWIN,
A. S.
President.
WOOLFOLK, Cashier.
J. C. STRATFORD, Ass't
Correspondence Invited.
Cashiei
LOGAN
DEPOSITORY FOR THE CITY AND
COUNTY OF MONTGOMERY.
C.
BOCKEE,
R. F. WARFIELD,
CHAS. C. CARTER,
J. S.
j.
w. WHITING,
B.
DAVIS,
President.
Vice-President.
L.
President
Vice-President
-
FORREST
J.
MURRAY,
-
MOSELEY
J.
Cashier
-
W. LITTLE,
W. PADGETT,
Ass't Cashier
Ass't Cashier
Cashier.
Ass't Cashier.
PEOPLES
BANK
MOBILE,
-
B.
-
J±L-lJ±.
$150,000.00
525,000.00
Capital,
Surplus,
Deposits,
We
collect all
items especially.
2,100,000.00
Alabama, Florida and Mississippi items at actual cost. We solicit your Alabama
We rank 29th out of 342 State Banks on the Roll of Honor of the United States.
32
BIRMINGHAM TRUST & SAVINGS CO,
BIRMINGHAM, ALA.
$500,000.00
200,000.00
Capital,
Surplus,
STEADY ADHERENCE TO CONSERVATIVE BANKING IS COUPLED WITH PROMPT
ATTENTION TO ALL BUSINESS.
COLLECTION ACCOUNTS SOLICITED.
THE
FIRST BIRMINGHAM,
NATIONAL
OF
RESOURCES.
Loans and Discounts
Overdrafts
U. S. Bonds and Premiums
Other Stocks and Bonds
Real Estate Old Bank Building
-
—
Cash and Exchange
BANK
ALA.
CONDITION, AUGUST 25th, 1905.
#3,990,277
S°5
564,500
23,700
56,000
2,320,564
LIABILITIES.
76
64
00
Capital Stock
Surplus and Profits
Circulation
00
00
00
Deposits
$
500,000
354,514
500,000
5,601,032
00
46
00
94
£6,955,547 40
6,955.547 40
OFFICERS.
J.
H.
A. R.
We
W.
WOODWARD,
P. G.
HARDING,
President.
Vice-President
Asst. Cashier.
J.
H.
BARR, Vice-President and Cashier.
F. S. FOSTER, Asst. Cashier.
THOS. BOWRON, Asst. Cashier.
Send us your Alabama Items for direct distribution
make a Specialty of Collections.
THE CAPITAL STOCK OF THIS BANK WILL BE INCREASED TO $1,000,000 ON NOV. 1ST.
FORSYTH,
ESTABLISHED 1868
ISIDORE
NEWMAN & SONS
BANKERS AND BROKERS
NEW ORLEANS
212 Carondelet Street
NEW YORK
iS
BROAD STREET.
PETER HELLWEGE
& CO
Brokers,
New
New
COTTON, STOCKS AND BONDS,
NEW ORLEANSMEMBERS
Orleans Cotton Exchange
Orleans Stock Exchange.
Ne-w Orleans Board, of Trade.
Peter Hellwege.
Peter E. Hellwege.
Roi
Ne-w York Cotton Exchange.
Liverpool Cotton Brokers Assn
33
:
The
HOLSTON NATIONAL BANK
OF KNOXVILLE, TENN.
5J4
GAY STREET
$200,000.00
50,000.00
930,000.00
Capital,
Surplus
and
Profit s,
Deposits,
DIRECTORS
OFFICERS
Joseph P. Gaut, President
H.
D. A. Rosenthal, Vice-President
Jno.
J.
A. Armstrong,
Asst. Cashier
W. H. GASS, President
J.W. HOPE, Vice-Prest.
J.
S.
Mizner
M.
J.
Allen
H. Cowan
H. Baker
Cecil
Hu
B. Jones
.
D. A. Rosenthal
L.
Jos.
McClung
P. Gaut
T. R. Price
UNITED STATES DEPOSITORY
JOHNSTON, Cashier
W.O.WHITTLE, Asst. Cashier
H. M.
The
ESTABLISHED
The
1888
City National Bank
Knoxville
OF
Company
Banking
Tenn.
Knoxville,
Organized 1888
Knoxville, Tenn.
17
years
Capital,
•
-
-
.
$ 300,000.00
Surplus,
-
-
-
-
227,500.00
Deposits,
-
•
-
.
2,300,000.00
successful
of
WM. S.
experience enables
us to
SHIELDS,
EDWARD HENEGAR,
render prompt and satis-
factory
servi'ce
in
President
Vice-President
WM. T. MARFIELD, Cashier
R. E. MOONEY, Asst. Cashier
our
Collection Department.
Send us your Tennessee Business.
THE
FIFTH NATIONAL BANK
of CINCINNATI
Depositary United States
and State
of
Ohio
OFFICERS
CHARLES
JA8. M.
Capital
$600,000.00
Surplus and Profits, 500,000.00
HINSCH, President
GLENN, Vice-President
A.
EDWARD SEITER, Cashier
MONTE J. GOBLE, Asst.
CHAS. H. 8HIELDS,
\CC*f\t 1\ITC
1 I O
Mv^V»V/UI
-
-
-
I
i
*i 100
*
'
000 00
'
Cashier
Asst. Cashier
$6,200,000.00
Deposits,
of Banks Corporations, Firms, and Individuals
Solicited and Received upon the Most Favorable Terms.
,
ZFOEEIGIT
Df^\jr\C
IDEIF'.A.ZRTIMIIEIN-T.
34
High-Grade Investment Bonds
Bought and Sold.
:
BANK
FIRST NATIONAL
NASHVILLE, TENN.
UNITED STATES DEPOSITORY.
CAPITAL,
-
F.
O.
D.
S.
DEPOSITS,
$400,000
$3,000,000
RANDAL CURELL, Cashier.
WATTS, President.
WILLIAMS, Vice-President.
Tennessee
-
R. E.
DONNELL, Asst. Cashier.
Collections.
We reach 83 per cent, of the banking population of the State direct through our reciprocal bank correspondents
and therefore oner the safest and quickest way for handling your collections. Your business is respectfully solicited.
The Fourth National Bank
OF ATLANTA, GEORGIA,
magnificently equipped, and with exceptional facilities for Handling Southern business, offers its services to the banKing public.
CAPITAL STOCK,
SURPLUS and UNDIVIDED PROFITS,
-
DEPOSITS
'WALKER
3,306,424*00
OFFICERS:
JAMES W. ENGLISH,
JOHN
President.
P. INM AN, Vice President.
$400,000.00
298,400.00
K.
CHAS.
I.
OTTLEY, Cashier.
RYAN, Ass't Cashier.
CORRESPONDENCE INVITED.
Bank
of
Commerce
CAPITAL AND
&
Trust Company,
MEMPHIS, TENNESSEE.
SURPLUS,
.
.
.
$2,000,000.00.
The Memphis Trust Company with a capital and surplus of $1,300,000, and the National Bank of
Commerce with a capital and surplus of $750,000, have recently consolidated under the name BANK OF
COMMERCE AND TRUST COMPANY, and will move into their new modern Banking room the latter
part of October.
The merged Company
will be one of the largest and strongest financial institutions in the South.
years of experience in both the Trust and Banking business, the Company offers the public
vices in the following departments
With
its
ser-
COMMERCIAL AND GENERAL BANKING; Collection facilities unexcelled.
TRUST DEPARTMENT; Accepts trusts of every description.
REAL ESTATE DEPARTMENT Buys, sells, on commission, rents and appraises real property.
TITLE GUARANTY DEPARTMENT Guarantees
to real estate.
BOND DEPARTMENT; Buys and sells investment bonds and stocks.
INSURANCE DEPARTMENT Writes Fire Insurance and Surety Bonds as Agent.
SAFE DEPOSIT DEPARTMENT Rents boxes $5.00 per year and upwards.
CORRESPONDENCE INVITED.
;
titles
;
;
;
35
Mississippi Valley Trust Co.
NORTHWEST CORNER FOURTH AND
PINE STREETS, ST. LOUIS
Capital, Surplus and Profits, $8,400,000
The Business of this Company is conducted in ffbe departments, as follows :
(i)
FINANCIAL OR MONEV DEPOSIT— Receives deposits on time, savings and checking
accounts and pays interest thereon; loans money on St. Louis city real estate and listed
high grade securities; buys and sells domestic and foreign exchange; issues its own
letters of credit available
everywhere
TRUST OR FIDUCIARY— Executes
all manner of trusts; acts, under authority of the
law, as executor, administrator, trustee, guardian, curator, register and transfer agent of
bonds and stocks, receiver and financial agent for non-residents and others becomes
sole surety on bond^ required by law to be given
(2)
;
BOND OR INVESTMENT— Buys
and sells selected high grade investment
bonds for sale mailed on application. Commission orders, at usual
ecuted with promptness
(3)
List of
REAL ESTATE — Manages,
(4)
securities.
rates, ex-
buys, sells, rents and appraises St. Louis city real estate.
Pays taxes, places insurance, collects rents
SAFE DEPOSIT OR SIORAQE VAULTS— Rents
(5)
safe deposit boxes in fire, burglar
stores, at special rates, trunks and
and mob proof vault at £5 and up vards per annum
boxes cont lining silverware and otter bulky valuables
;
CORRESPONDENCE INVITED
ALL BUSINESS STRICTLY CONFIDENTIAL
OFFICERS
JULIUS
WALSH,
HbvbyC. Ibb >tson, Assistant Secretary
Frederick Vierling, Trust Officer
Henry Semple Ames, Assistant Trust Officer
William G. L u key. Bond Officer
President
Breckinridge Jones, Vice-President and Counsel
John D. Davis, Vice-President
Samuel E, H>ffm\\, Vice President
James E. Brook. Secretary
hcoh H. Lyle, A'8'8 am Secretary
S.
-
Tom W. Bennett,
Real Estate Officer
Wji. McC. Martin, Safe Deposit Officer
DIRECTORS
Union Electric Light & Power Co.
Beggs, Presidents Laclede Gas Light Co.
(
Joim
I.
'
United Hallways Co. of
St.
Wm.
Orthwein, President Wm. D. Orthwclu Grain Co
H. Clay Pierce, Chairman Board Waters- fierce Oil Co.
Joseph Ramsey, Jr., President Wabash R. K. Co.
Robert II. Stockton, President Majestic Mfg. Co.
Julius S. Walsh, President
Roll v Wells, Mayor of City of St. Louis
Wm.
Investment Co.
Bro.
ware Co.
J. O'Reilly, M. D.
Robert
>
Com-
mission Co.
August Gehner,
II. (loDDARD
Hoffman, Vice-President
II. lIuriiG, President Tnlrd National Bank
Breckinridge Jones, Vice-President and Counsel
F. Nolker, Treasurer St. Louis Brewing Ass'n
Saunders Norvell, President Norvell-Shaplelgh Hard-
Wilbur F. Boyle, Boyle & Priest
James K. Brock, Secretary
Murray C vklki'on. President Carleton Dry G.iods Co.
C:iAitLES Clark
Ho rati N. Dwis, President Smith & Davis Mfg. Co.
John l> Davis, Vice-President
HabrISON I. i>eumm >ni>, President Urummond Kealty and
Augu^te B. Ewinq
David R. FbavotS, President D.R.Francis &
Geo.
8. E.
(has.
Lout-
President German- American Bank
36
L).
Mercantile
Trust
Company
Saint Louis
Member
St.
Louis Clearing House Association
Capital and Surplus, $9,500,000
Deposits,
$17,500,000
-
-
OFFICERS:
FESTUS
CORWIN H. SPENCER,
LORENZO E. ANDERSON,
-
-
GEO. W. WILSON,
C.
H.
-
J.
WADE,
Vice-President
Vice-President
Vice President and Treasurer
L McMILLAN,
-
Secretary
President
WILLIAM MAFFITT,
JOHN H. KRUSE,
Ass't Treasurer
EDWARD BUDER,
Ass't Treasurer
-
J. B.
MOBERLY,
-
-
-
Ass't Treasurer
Ass't Secretary
Handling the accounts of Trust
Companies, BanKs and BanKers.
Pays interest on daily balances. Foreign exchange bought
Unsurpassed
facilities for
sold. Letters of Credit issued available anywhere
in the civilized 'world. Deals in high-grade invest-
and
ment bonds.
Correspondence Incited
n
BOOKS OF FIRMS AND CORPORATIONS AUDITED SPECIALLY OR PERIODICALLY.
THE EQUITABLE INTEREST OF PARTNERS OR STOCKHOLDERS DETERMINED UNDER EVERY VARIETY OF
COMPLICATION.
LAWRENCE
E.
BROWN &
CO.,
Certified Public Accountants,
1522
& 1523
Philadelphia
Real Estate Trust Building
Deranged and Disputed Accounts Investigated and Adjusted.
Accounts of Executors, Administrators, and Trustees Prepared for the Orphans' Court.
Legal Investigations Aided.
Investigations made for Prospective Purchasers or Vendors.
J.
E.
STERRETT
Certified Public Accountant
(PENNSYLVANIA)
60 WALL STREET
705
PENN MUTUAL BUILDING
NEW YORK
PHILADELPHIA
"BANKS AND BANKING"
Case
Law and Index
Edition compiled in one complete volume upon
the Plan and Method of
THIS
HOWARD
ELLIS
New York
of the
ALL FEDERAL, STATE
Bar.
CANADIAN
valuable book contains condensed reports of
Banking Deciand
from the foundation of the government. Any banker or attorney for a bank can quickly and easily find all the
decisions in every State or any question concerning banks, notes, checks, drafts, etc.
Quick reference to it when in
doubt on any point may save bankers thousands of dollars.
sions
CASE LAW PUBLISHING COMPANY,
220
Broadway,
New York
City.
LYBRAND, ROSS BROS. & MONTGOMERY
CERTIFIED PUBLIC
ACCOUNTANTS
WALL STREET EXCHANGE BUILDING
NEW YORK
38
STEPHEN GIRARD BUILDING
PHILADELPHIA
America's Best Product
WHITING PAPERS
Only First Prize
Ever Awarded
^H
I
J\
WT R
^»
V traSeNiL
received the
ys
]
Grand Prize
m/marwj
\^^^N^/y
American Paper
Paris Exposition
For Fine Correspondence
or for Business
Use them once, and you
them always
will use
WHITING PAPER
NEW YORK
CHICAGO
CO.
HOLYOKE
PHILADELPHIA
WESTERN
Bank Note and Engraving Company
ENGRAVERS — LITHOGRAPHERS — PRINTERS
Bank Notes
— Bonds — Stock
Certificates
and
other
documents
requiring
protection against reproduction.
Drafts,
Checks,
Bills
of
Exchange,
Letters
Credit, etc., of
improved
styles.
Bank, Corporation and Municipal work a specialty.
Modernly constructed
fire-proof buildings, containing securities vaults
equalled equipment, occupied exclusively by this
Company.
CHICAGO
BRANCH OFFICES
Equitable Building
Times Building
Baltimore
Pittsburg
39
Security Building
St. Louis
and un-
THE PUBLIC ESTIMATION OF A BANK IS LARGELY SHOWN IN THE RECORD OF NEW BUSINESS ACQUIRED FROM
YEAR TO YEAR. AS AN EVIDENCE OF CONSISTENT GROWTH
The Cleveland Trust Company Submits the Following
COMMENCED
BUSINESS SEPTEMBER
DATE
1895
10th,
AMOUNT
NUMBER
OF DEPOSITS
OF DEPOSITORS
TIME
862,087.67
September
10,
1896
1
September
10,
1897
2 years
1,772
2,483,129.44
September
10,
1898
3 years
2,835
3,329,880.18
September
10,
1899
4 years
3,840
3,940,784.99
September
10,
1900
5 years
5,068
5,236,514.37
September
10, 1901
6 years
8,180
7,846,741.26
September
10,
1902
7 years
9,177
8,773,839.56
September
10,
1903
18,061
14,683,748.69
September
10,
39,462
19,956,600.73
September
10,
1904
1905
8 years
9 years
10 years
51,110
24,534,900.59
CAPITAL,
year
$
1,111
SURPLUS,
$1,750,000
$1,100,000
DEPOSITORY FOR STATE OF OHIO, COUNTY OF CUYAHOGA, CITY OF CLEVELAND
Deposits from Banks, Firms, Corporations arid Individuals Solicited.
No.
I
EUCLID AVENUE,
-
-
4 per cent
-
-
interest
-
paid on savings deposits.
CLEVELAND, OHIO
Municipal and Railway Bonds
(1
I
Public Service Corporation Bonds
Lists will be mailed to Investors
W.
Chamber
of
J.
Commerce
CLEVELAND,
O.
HAYES
upon
request
& SONS
State and Devonshire Sts.
BOSTON, MASS.
»©«
grail
CAPITAL, $2,000,000
SURPLUS, $1,900,000
DEPOSITS, $27,000,000
OFFICERS
C. H.
W.
B.
HUTTIG, President
WELLS, Vice-President
W. GALBREATH,
G.
Cashier
J.
R.
D'A.
COOKE, Asst. Cashier
P. COOKE, Asst. Cashier
L
E. F.
SWINNEY,
H. T.
President.
J
.
Chas. H.MOORE, Asst.Cashier
W. S. WOODS, President
F. H. HEAD, Asst. Cashier"
H.WINANTS,Vice-Pres.
W.
W. H. GLASKIN, Asst.Cashier
W. A. RULE, Cashier
Asst. Cashier
COVINGTON,
PAULF.
ABEENATHY,
Cashier.
C G HUTCHESON,
F RICHARDS,
.
.
.
V. President.
Asst. Cashier.
THE
FIRST
NATIONAL
BANK
1905
1865
national Bail
40
KANSAS
Years Old
CITY, MO.
WE HAVE
Employes
Kansas City, Mo.
Depositors
240
-
J5,000
-
Capital, Surplus, Profits,
Stockholders' Liability, $ 3,700,000
Capital,
$250,000
Deposits,
-
$33,000,000
-
Surplus and Profits, $1,000,000
Deposits,
$17,599,751
DIRECTORS
DIRECTORS
J. F.
Richards
B. Corrigan
P. E.
Havens
J. S.
Loose
J. J.
C. Ward,
H. C. Arnold,
G. M. Cole,
J. H. Arnold,
Hugh
E. D. Fisher
F. F. Harvey
E. F. Swinney
L. M. Miller
Swofford,
H.T. Abernathy
J. A. Prescott
C. G. Hutcheson
J.
W.
J.
D.
C. Egelhoff,
T.
W.H.Winants,
W.
J. Heim,
A. R.Meyer,
Jos.
t
Dean,
W. S.Woods,
Kemper
T. Holmes,
Mechanics-American National Bank
J.
A. Rule,
Chas. H. Moore-
H
st. lquis
Successor to
MECHANICS NATIONAL
and
AMERICAN EXCHANGE NATIONAL BANKS
REPORT OF CONDITION, AUGUST
RESOURCES
U. 8. Bonds and Premium and Redemption FuQd
Other Stocks and Bonds
Cash.
In Vault
With Banks
Demand Loans
$5,266,288.85
4,379,835.44
4,364,082.66
$2,000,000.00
2,697,760.75
1,800,000.00
Capital Stock
$12,412,987.90
20,329.05
1,907,187.50
403,021.95
Bills Discounted (time)
Overdrafts
25, 1905
LIABILITIES
Surplus and Profits
Circulation
Deposits.
Individual.
$10,003,158.90
.12,312,813.70
Banks.
22,315,972.60
14,010,206.95
$28,813,733.35
$28,813,733.35
Facilities
Unsurpassed
Officers
WALKER HILL,
President
H. P. HILLIARD, Vice-President
W. J. KINSELLA. Vice-President
EPHRON CATLIN,
L. A.
"J. S.
J.
A.
Vice-President
BATTAILE, Cashier
CALFEE. Ass't Cashier
BERNINGHAUS,
41
Ass't Cashier
G. M.
C. L.
F. M.
TRUMBO, Ass't Cashier
ALLEN. Ass't Cashier
GARDNER,
Ass't Cashier
CAPITAL,
-
BANKING, [SAVINGS,
FOREIGN and TRUST
$1,500,000.00
-
$1,000,000.00
SURPLUS,
UNDIVIDED PROFITS, $702,468.78
-
DEPARTMENTS.
BANK BUILDING OF
THE NORTHERN TRUST COMPANY
CHICAGO
NOW UNDER CONSTRUCTION
NORTHWEST CORNER LA SALLE & MONROE STREETS
190
FEET FRONT ON LA SALLE 8TREET
;
73
FEET ON MONROE STREET
WILL BE READY FOR OCCUPANCY,
1906
DIRECTORS
OFFICERS
BYRON L.SMITH,
F. L. HANKEY,
A. C. BARTLETT
CHARLES L. HUTCHINSON
of Hlbbard,Spencer,Bartlett&Co. Vice-Pres. Corn Exchange Nat. Bank
J.
HARLEY BRADLEY
of David Bradley Mfg.
WILLIAM
A.
Company
FULLER
Retired Manufacturer
MARVIN HUGHITT
President Chicago & N.-W.
SOLOMON A.SMITH,
MARTIN A. RYERSON
ALBERT A. SPRAQUE
of Sprague, Warner & Co.
SOLOMON A. SMITH
THOMAS
ROBERT McLEOD,
2d VIce-Pres.The Northern Trust Co.
President
ARTHUR HEURTLEY,
Secretary
HOWARD O. EDMONDS,
Assistant Secretary
HAROLD
G.J.MILLER,
The Northern Trust Co.
Assistant Cashier
42
H.
ROCKWELL,
Assistant Secretary
Assistant Cashier
BYRON L.SMITH
Ry.Co.
2dV-President
C. KING,
Cashier
President
Vice-President
EDWARD
C.JARVIt,
Auditor
The Merchants' Loan and Trust Company
OF CHICAGO
Capital and Surplus, $6,000,000
Established 185 7
General Banking.
Trusts.
Foreign Exchange.
Bonds.
Safe Deposit Vaults.
OFFICERS.
ORSON SMITH, President.
E. D. HULBERT, Vice-President
J. G. ORCHARD, Cashier.
Savings.
DIRECTORS.
MARSHALL FIELD.
ALBERT KEEP.
WILDER, Assistant Cashier.
NELSON, Assistant Cashier.
PETERSON, Assistant Cashier,
Mgr. Foreign Exchange Dept.
LEON L. LOEHR, Sec'y Trust Dept.
JOHN E. BLUNT, JR., Manager Bond
CYRUS
H.
McCORMICK.
LAMBERT TREE.
MOSES J. WENTWORTH.
ERSKINE M. PHELPS.
ENOS M. BARTON.
THIES J. LEFENS.
CLARENCE A. BURLEY.
E. H. GARY.
CHAUNCEY KEEP.
E. D. HULBERT.
ORSON SMITH.
F. N.
F. G.
P. C.
Department.
REPORT OF THE CONDITION
At the Commencement of Business, August 26, 1905.
RESOURCES
Loans and Discounts,
»
.
.
Bonds and Stocks,
•
Due from Banks and Bankers, $ 2,229, 37.64
Cash and Checks for Clearing
House
•
.
7,727,134.55
-
1
LIABILITIES
$27,755,644.76
9,440,824.80
1
19,956,272.19
Capital Stock
Surplus Fund,
Undivided Profits,
Reserved for Accrued Interest,
$3,000,000.00
3,000,000.00
651,761.51
11,508.20
50,489,472.04
Deposits,
$57,152,741.75
$57,152,741.75
SECOND RESERVE
Many Banks throughout
the
country have
adopted the policy of investing a portion of their
funds in high grade, readily convertible Railroad
Bonds
as a second reserve for the further protec-
tion of depositors
We
ment
and customers.
offer our facilities for conservative invest-
to Banks,
Trustees and Individuals
who
be-
lieve that safety of principal is the first consider-
ation
and
are
content
with a reasonable net
return.
Lists and information furnished on request.
Chicago Bank stocks bought and sold.
Fversz & Company
BANKERS
220 LA SALLE
BROADWAY
NEW YORK
111
ST.
CHICAGO
43
S>6e
Commercial National BanK
of
IE
CAPITAL,
CHICAGO
s t a. TdI ± s'Jn. e a.
1
S64
$ 2,000,000.00
-
....
SURPLUS AND UNDIVIDED PROFITS,
$ 1,700,000.00
DEPOSITS,
$36,000,000.00
NEW HOME OF THE
COMMERCIAL NATIONAL BANK OF CHICAGO
TO BE BUILT AND OWNED BY
Commercial National Safe Deposit
DIRECTORS
OFFICERS
JAMES H. ECKELS,
JOSEPH T. TALBEKT.
RALPH VAN VRCHTEN
DAVID VERNON,
NATHANIKL B, LOSCH,
GEORGE
HARVEY
B.
C,
SMITH.
VKBNON,
ERSKINE SMITH.
WM. T. BRUCKNER.
H.
We
ing
Co.
Bident
Vice-President
Second Vice President
Third Vice-President
Cashier
Assistant Cashier
Assistant Cashier
and Auditor
Assistant Cashier
PAUL MORTON
DARIUS MILLER
CHARLES F. SPALDING
J< >SEPH T. TALBERT
FRANKLIN MAC VEAGB
WILLIAM J. CHA]
ROBERT T. LINCOLN
E. H.
GARY
JAMES
U.
ECKELS
FOREIGN DEPARTMENT
L.
SCHUETZ,
want one good bank as a correspondent in every city and banktown in the West, North, Northwest, South and Southwest.
44
Assistant
Manager
WM.
H.
BRINTNALL,
EDWARD
TILDEN,
WM.
A. TILDEN, Cashier
GEO. M. BENEDICT, Asst.
President
Vice-President
Cashier
Drovers Deposit National Bank
CHICAGO
CAPITAL AND SURPLUS,
Accounts
of
$850,000
Banks, Corporations, Firms and Individuals
Solicited.
Chicago
Bank West ern Trust
Savings
& Savings Bank
Capital, $500,000.00
CHICAGO
Capital
One
Million Dollars
Transacts a General Banking and Trust
Company
Business
OFFICERS
JOSEPH E.OTIS
WALTER H.WILSON
LAWRENCE NELSON
Chicago Savings Bank Building,
State and Madison Streets,
Chicago.
WILLIAM
DIRECTORS
George H. Webster
Daniel B. Scully
Chas. H. ReQua
Wm.
E. O'Neill
Joseph E. Otis
C.
Vice-President
Vice-President
COOK
Cashier
WOLLENBERGER
W. G. WALLING
H.
Henry J. Evans
Rudolph Matz
Wm.
Walter H. Wilson
President
Assistant to the President
Secretary
G. Hibbard, Jr.
John E. Jenkins
Ralph C. Otis
Lucius Teter
R.
FLYNN,
President
G. A.
G. F.
EMERY,
RYTHER,
Cashier
Ass't Cashier
The
National
LIVE STOCK Bank
OF CHICAGO,
Capital, Surplus
and
Profits,
ILL.
$2,300,000
~J
45
R.
H.
GOODELL
CO
&,
Transact a banking and commission business.
Buy and
Deal in commercial paper.
sell
high
grade investment securities.
Issue letters of
London and Paris.
Execute commis-
credit on
sion orders in all
markets
Companies, Insurance
Banks, Trust
for
Companies and Estates.
National Bank Building,
Continental
218 La Salle Street,
CHICAGO.
BRANCH:
NEW YORK
15 Broad Street,
&
Jackson Trust
Nos.
and
15, 17
19
Ground
Savings Bank
Floor, Railway
Exchange
CHICAGO
OFFICERS
WM.
H. EAGAN,
DEMUTH,
WM.
M.
President
-
DAVID DECKER,
B. F.
DIRECTORS
Vice-Pres't
-
LAWTON,
Vice-Pres't
-
Cashier
DeMuth
Joy Morton
Benj. F.
D. H. Burnham
W.
L. T. Dickason
David Decker
Edward Decker
Wm.
M. Lawton
Chas. O. Austin
Wm.
H. Eagan
CENTRAL TRUST COMPANY OF
R. Morrison
ILLINOIS
CHICAGO
CHARLES G.lDAWES,
W. IRVING OSBORNE,
A.
UHRLAUB,
WILLIAM.R. DAWES,
Capital,
President
Vice-President
Vice-President
Cashier
L. D.
H. E.
SKINNER,
D. H.
ROOD,
malcolm Mcdowell,
....
....
Surplus and Undivided Profits,
Deposits,
Special
attention to accounts of Banks and Bankers.
business in the
HALLENBECK,
MIDDLE WEST.
46
-
Asst. Cashier
Asst. Cashier
Asst. Cashier
Asst. Secretary
$ 2,000,000
900,000
$
$10,000,000
Unexcelled facilities for handling
Correspondence invited.
Bank
Continental National
of Chicag
CAPITAL
AND SURPLUS
$4,250,000
Cor.
Adams and La
DEPOSITS
$55,000,000
Salle
Streets
Collections
Accounts
Carefully
of
Made
Merchants,
and
Promptly
Accounted
For
Banks
and
Bankers
Solicited
CONTINENTAL NATIONAL BANK BUILDING
A
General Foreign Exchange Business Transacted
Travelers' Circular Letters of Credit issued, available in
JOHN C. BLACK
GEORGE M. REYNOLDS
N. E.
IRA
BARKER
BOWEN
P.
....
-
-
-
-
-
President
Vice-President
Vice-President
Assistant Cashier
BENJ.
S.
parts of the
MA.YER
-
SCHROEDER
HERMAN WALDECK
JOHN MCCARTHY WM.
all
G.
-
-
-
-
World
Assistant
Assistant
Assistant
Assistant
Cashier
Cashier
Cashier
Cashier
BOARD OF DIRECTORS
JOHN 0. BLACK
HENRY BOTSFORD
WILLIAM C. SEIPP
ALBERT J. EARLING,
R. R.
P.A.VALENTINE
President
Packer
Capitalist
Pres't Chicago, Milwaukee
&
St.
Paul
Vice-President Armour & Co.
WEYERHAEUSER, Lumberman and Pine Land Owner, St.
Paul.
A. W. THOMPSON
- President Republic Iron & Steel Co.
F.
EDWARD HINES J. OGDEN ARMOUR
Edward Hines Lumber Co.
President of Armour & Co.
of Hibbard, Spencer, Bartlett & Co.,
President
-
-
FRANK HIBBARD,
Wholesale Hardware.
Capitalist
BERTHOLD LOEWENTHAL
Vice-President
GEORGE M. REYNOLDS
Vice-President
N. E. BARKER,
President Eckhart & Swan Milling Co.
B. A. ECKHART
of N. W. Harris & Co.
ALBERT W. HARRIS
....
-
-
-
47
&
Mason, Lewis
Co.
Bankers
CHICAGO
PHILADELPHIA
BOSTON
Monadnock Bldg.
505 Chestnut St.
60 Devonshire St.
Investment Securities
Municipal, Railroad, Street Railway, Gas, Electric
Light and Power Company Bonds.
LIST ON APPLICATION.
BECKER
&CO.
American
A. G.
National Bank Record
No.
No. 1 for organizing Bank ab initio,
Conversion of State to National Bank.
2 for
Inter-State
(INCORPORATED.)
Corporation Record
For Organizing State Bank and other Corporations.
Both books contain proper organizadon proceedings, including Subscription List, By-Laws, Minutes First Meetings Stock Holders and Directors, Blank Minutes, Stock
Register, Transfers, Dividends, Stock Holders' Ledger.
V^
COMMERCIAL
XV
V^><
1T1 1T1
PAPER
m.
j
>_J A.
J. X.
A
/
STOCK CERTIFICATES
::
::
::
::
U.
BONDS
S. LOCK SEAL
BANK REGISTERS
ACCOUNT BOOKS
SOUTHWEST CORNER LA SALLE
AND MONROE STREETS,
J.
W. MIDDLETON
&
CO.
Publishers and Stationers,
CHICAGO,
167 Dearborn
ILL.
48
St.,
-
Chicago.
©F C1HCAG©
Began Business April
21,
1903
Comparative Statem ent of Deposits LSince the Ope ning Day
$4-13,401.29
April 21, 1903
861,676.85
June 9, 1903 - 1,332,358.98
September 9, 1903
1,4-10,740.56
November 17, 1903 1,506,285.54
January 22, 904 -1,565,972.23
March 28, 1904- - 1,700,597.90
June 9, 1904- 1,739,305.39
September 6, 1904- 2,163,286.48
November lO, 1904
2,203,610.48
January 11, 1905 - - 2,516,808.78
March 14-, 1905 - 3,015,304.40
May 29, 1905 - - - 3,285,040.22
August 25, 1905
1
DIRECT OLR S
Wallace Heckman, Business Manager University of Chicago.
Watash Railroad Co.
Louis E. Laflin, Manager Estate of Matthew[Lanin.
F. A. Delano, 1st V. P.,
L. Bartlett, President Orargeine Chemical Co.
A. A. Sprague, 2nd, of Sprague, Warner & Co.
T. A. Shaw, Jr., of T. A. Shaw & Co.
Henry Meyer, Cashier.
J. H. Cameron, Vice President.
Frank Cuneo. of Garibaldi & Cuneo.
C. J. Eldredge, of Merrill & Eldredge.
Charles
Charles
B. Pike, President.
CHARLES HATHAWAY
DEALERS
®.
CO
IN
COMMERCIAL PAPER,
NEW
A. G.
YORK, BOSTON & CHICAGO.
EDWARDS & SONS BROKERAGE
CO., Agents, ST. LOUIS
BONDS'
E. H.
Rollins
238 La Salle
BOSTON
St.,
DENVER
49
&
Sons.
Chicago
SAN FRANCISCO
The
First National
Capital and
Bank
$13,000,000
Surplus,
96,000,000
Deposits,
J.
B.
FORGAN,
of Chicago
FORGAN,
D. R.
F.
Vice-Pres.
President.
BANKS
Extends
to
facilities
afforded
by ample
superior banking
Cashier.
BANKERS
and
the unexcelled
capital, large resources,
connections
WETMORE,
O.
at
and
home and abroad.
Directors
:
SAMUEL W. ALLERTON
GEORGE F. BAKER
JOHN H. BARKER
A. C. BARTLETT
GEO. D. BOULTON
WILLIAM L. BROWN
A. A.
D.
CARPENTER,
Jr.
MARK CUMMINGS
CHARLES DEERING
DAVID R. FORGAN
JAMES B. FORGAN
HITCHCOCK
JAMES H. HYDE
HAROLD F. McCORMICK
NELSON MORRIS
EUGENE S. PIKE
HENRY H. PORTER, Jr.
NORMAN B. REAM
JOHN A. SPOOR
H. H.
WM. J. WATSON
OTTO YOUNG
The
J.
B.
and Savings Bank
First Trust
FORGAN,
D. R.
FORGAN,
E. K.
Special attention to
Choice investment
special accounts
all
matters of a fiduciary nature.
securities.
Interest
and savings deposits.
50
BOISOT,
Vice-Pres. and Mgr.
Vice-Pres.
Pres.
allowed
on
Capital,
Surplus,
$500,000.00
-
Undivided
Profits,
$500,000.00
•
$76,332.47
-
ESTABLISHED
AMERICAN
1892
GUARANTY
COMPANY
OF CHICAGO
Assumes four classes of corporate obligations:
1st — THE PAYMENT OF THE PRINCIPAL OF BONDS.
2d— THE PAYMENT OF INTEREST ON BONDS.
3d— THE REDEMPTION OF CORPORATE STOCK.
4th— THE PAYMENT OF DIVIDENDS ON REDEEMABLE AND
PREFERRED STOCK.
It
also performs
the following services for
its clients,
assuming the expense thereof:
a reputable
—Secures the
the bonds.
the genuineness
holders and
SECOND— Prepares the necessary deed
FIRST
services of
company
trust
to act as trustee for the
bond-
of
to certify to
of trust in conformity
with the requirements
of the trustee.
THIRD — Has
the bonds and coupons engraved or lithographed, laying same before
the officers of the corporation ready for execution.
FOURTH — Attends
to
all
the details of an issue of bonds, relieving the officers of the
annoyance incidental thereto.
FIFTH — Furnishes
dorsement
of
engraved or lithographed
certificates
of stock
bearing proper en-
guaranty and ready for issuance.
SIXTH — Prepares
and submits the form
of
necessary motions and resolutions to be
passed by the stockholders and directors, and otherwise supervises
all
work
in
any manner
affecting the legality of the issuance of the securities.
Also Assumes Payment of Insurance Premiums
Issues Endowment Contracts without Insurance
CHARLES L. FUREY, Vice-President
JAMES L. BIGELOW, Treasurer
FREDERICK M. STEELE, President
LEWIS W. PITCHER, Secretary
Directors
Fred'k M. Steele, President Standard Forgings Co.
jMfrs.Nat'lBank.Rockford,
•.,
tit ™ t,
t»_
W. F. Barnes,
Charles
.
President,
"j
w.
F.
& Jno.
L. Fubey, Vice-President of
Frank. M. Hegqie,
Lepman &
Duncan A. Holaday,
HI.
Barnes Mfg. Co.
Company
J. S.
Brown
& Bro.,
Denver, Colo.
^
k
_ Pitcher, Secretary of Company
Lewis W. „
T
B.
M. Fellows,
Heggie, Chicago
Tr as
?.
\
(
-
g£ g$*g *
Pres. Old Second National Bank,
William George, {
Jakes L. Biqelow, Treasurer of Company
(
GENERAL OFFICES
171
51
^
rore
Aurora,
"
Illinois
LA SALLE
111.
Bankers Association.
ST.,
CHICAGO.
&
Russell
B.
J.
Co.
BANKERS
46 Wall
...
Street,
New York
DEALERS IN
High
Bonds
Grade
AND
Investment Securities
SAFETY DEPOSIT VAULTS FOR USE OF CUSTOMERS.
Members
New York
Stock Exchange.
Chicago Stock Exchange.
j
(
Financial Representatives of
ot the Illinois Tunnel
1 unnel Company
"
« Automatic Electric Co/
OFFICES
NEW YORK
WILKES-BARRE,
SCRANTON, PA.
CARBONDALE,
j
of
j
Chlca S°-
:
CHICAGO
READING, PA.
DAYTON, OHIO
BINGHAMTON, N.
PA.
PA.
Y.
The Northwestern National Bank
MINNEAPOLIS, MINN.
Capital,
Surplus and
Deposits,
M.
KOON,
B.
Profits,
-
WM.
-
H.
E.
An Average
HOLTON,
of
10,000,000
-
DUNWOODY,
Vice-President
775,000
-
President
EDWARD
JOSEPH CHAPMAN,
FRANK
$1 ,000,000
-
-
-
Jr
,
W. DECKER,
Vice-President
Cashier
CHAS. W. FARWELL,
Ass't Cashier
Ass't Cashier
over 8 per cent. Annual Dividends paid to stockholders since
organization in 1872.
Dividends paid since organization, $2,350,000.
If
you contemplate making a change
in
your banking connections, or think of
opening a new account, we would be pleased
letter.
L2
to confer
with you in person or by
THE
FIRST NA TIONAL BANK
DENVER, COLO,
THE OLDEST NATIONAL BANK IN COLORADO
$21,746,97 2.85
1 ,000,000.00
1,000,000.00
Deposits,
Capital,
Surplus,
A GENERAL BANKING BUSINESS TRANSACTED
ACCOUNTS OF BANKS AND BANKERS INVITED
Special Attention Given to Western Collections at Favorable Rates.
OFFICERS
MOFFAT, President.
W. S. CHEESMAN, Vice-President.
THOS. KEELY, Vice-President.
D. H.
F. G.
W.
C.
C. S.
MOFFAT, Cashier.
THOMAS, Asst. Cashier.
HAUGHWOUT,
Asst. Cashier.
DIRECTORS
D.
H.
W.
S.
MOFFAT
CHEESMAN
GEO.
F.
W.C.THOMAS
HAUGHWOUT
THOMAS KEELY
F.G.MOFFAT
H. EICHOLTZ
J. A. McCLURG
L.
BAKER, New York City
C.
C. S.
M. MctcNEILL, Colorado Springs
York Correspondents First National Bank, Fourth National Bank, National Bank of Commerce in New
York, National Park Bank, and Mechanics Nat'l Bank.
Chicago Correspondents: Chicago National Bank, Merchants Loan
Trust Co., and Commercial National Bank.
New
:
&
J
The International Trust Company
DENVER, COLORADO
SURPLUS, $250,000
CAPITAL, $250,000
The
oldest Trust
Company
west of the Missouri River
Banking,
Investments,
Estates,
and
General Trust Business.
MOFFAT, President.
G. GILL, Secretary.
D. H.
F. B.
S.
R. F.
GIBSON,
Viee-Pres.
Ass't Secy.
WATKINS,
CANADIAN BONDS
Securities
for
Insurance
Company Deposit with
the
Canadian Government.
Trustee Investments.
Municipal Government and Public Service Corporation Bonds
WE ESPECIALLY
INVITE
CORRESPONDENCE
WOOD, GUNDY &
CO'Y.
CORNER KING AND YQNGE STREETS, TORONTO, CANADA
53
I
I
Bank of Montreal
Establfsbeo 1817
HEAD OFFICE,
MONTREAL, CANADA
CAPITAL PAID UP,
-
REST,
UNDIVIDED PROFITS,
Board
of
Directors.
LORD STRATHCONA AND MOUNT ROYAL,
A. DRUMMOND, K. C. M. G.,
PATERSON, Esq.
RT. HON.
HON. 6«R GEORGE
A. T.
$14,400,000
10,000,000
127,156
GREENSHIELDS. Esq.
SIR WILLIAM C. MACDONALD,
HON. ROBT. MACKAY.
E. B.
E. S.
The Bank
CLOUSTON,
G. C. M. Q., President
Vice-President
ANGUS, Esq.
JAMES ROSS, Esq.
R. B.
R. G.
REID, Esq.
General Manager
Montreal has Branches in the principal Cities and
Towns of Canada, from the Atlantic to the Pacific; in St. John's and
Birchy Cove, Newfoundland; in New York, Chicago and Spokane, and in
London, England.
of
IT ISSUES COMMERCIAL AND TRAVELLERS' CREDITS AVAILABLE
WITH ITS CORRESPONDENTS IN ALL PARTS OF THE WORLD, MAKES
COLLECTIONS AT ALL POINTS, AND BUYS AND SELLS STERLING
AND CONTINENTAL EXCHANGE AND CABLE TRANSFERS.
NEW YORK
OFFICE,
R. Y.
LONDON
Nos. 59 and 61
HEBDEN, Agent
WALL STREET
No. 22 ABCHURCH LANE
ALEXANDER LANG, Manager
OFFICE.
54
The C anadian Bank
C ommerce
of
Head Office-TORONTO
Paid-up Capital,
$8,700,000
Reserve Fund,
$3,500,000
HON. GEO.
B. E.
WALKER.
COX,
A.
President
ALEX. LAIRD, AssL
General Manager
NEW YORK AGENCY:
TO. GRAY
and H. B.
Gen. Manager
16 Exchange Place
WALKER,
Agents
BRANCHES OF 7 HE BANK TN CANADA
AND YUKON
BRITISH COLUHBIA
Femie
Greenwood
Kamloops
Atlin
Cranbrook
Dawson
Brandon
Elkhorn
Calgary
Gilbert Plains
Carman
Grandview
High River
Claresholm
Ladysmith
Nelson
Vancouver
Nanaimo
Penticton
Princeton
Victoria
New
Westminster
NORTH-WEST PROVINCES
Lloydminster
Neepawa
Macleod
North Battleford
Medicine Hat
Pincher Creek
White Horse
Regina
Saskatoon
Swan River
Treherne
Ponoka
Melfort
Dauphin
Edmonton
Innisfail
Elgin
Lethbridge
Ayr
Collingwood
Moose Jaw
Portage la Prairie
Moosomin
Prince Albert
Nanton
Red Deer
ONTARIO AND QUEBEC
London
Port Perry
Barrie
Dresden
Montreal
Rainy River
Belleville
Dundas
Orangeville
Berlin
Dunnville
Fort Frances
Gait
Ottawa
St. Catharines
Sarnia
Paris
Parkhill
Sault Ste. Marie
Seaforth
Waterloo
Wiarton
Parry Sound
Peterboro'
Port Arthur
Simcoe
Strattord
Strathroy
Windsor
Woodstock
Cobalt
Goderich
Guelph
Hamilton
Amherst
Canning
MARITIME PROVINCES
New Glasgow
St.
Antigonish
Barrington
Bridgewater
Halifax
Kinistino
Blenheim
Brantford
Cayuga
Chatham
Parrsboro'
Sackville
Lunenburg
Middleton
NEW YORK
(3 offices)
Vegreville
Winnipeg
Toronto (8 offices)
Toronto Junction
Walkerton
Walkerville
Shelburne
Sydney
Truro
Springhill
Windsor
John
(5 offices)
IN THE UNITED STATES
SEATTLE, WASH.
SAN FRANCISCO.
PORTLAND, ORE.
SKAOWAY, ALASKA
IN GREAT BRITAIN
LONDON, ENGLAND, 60 Lombard
The
large
the disposal of
number
its
of branches of this
correspondents unexcelled
Bank
St., E. C.
in all parts of
facilities for
Canada enables
it
to" place at
every kind of banking business with
Canada, and especially for collections.
The New York Agency and other offices of the Bank issue DRAFTS on Canada and all
the principal foreign correspondents of the Bank, and grant
OR^fTRAVELERS' LETTERS OF CREDIT for use in all parts of the world.
STERLING and other FOREIGN
bought and sold. Bills^collected payable at any place where there is a bank or banker.
COMMERCIAL
EXCHANGE
A GENERAL BANKING BUSINESS TRANSACTED
BANKERS AND CHIEF CORRESPONDENTS ABROAD
GREAT BRITAIN—The Bank of England
SOUTH AMERICA—The British Bank of iSouth America, Limited
The Bank of Scotland
Lloyds Bank Limited
INDIA, CHINA, JAPAN and the PHILIPPINE ISLANDS—
The Union of London and Smiths Bank, Limited
Chartered Bank of India, Australia and China
Hongkong and Shanghai Banking Corporation
SOUTH AFRICA— The Standard Bank of South Africa, Limited
The Bank of Africa, Limited
FRANCE—Credit Lyonnais, Paris
Messrs. Lazard Freres & Cie, Paris
GERMANY— Deutsche Bank
HOLLAND— Disconto Maatschappij, Rotterdam
BELGIUM— Messrs. J. Matthieu & Fils, Brussels
AUSTRALIA and NEW ZEALAND—
Banque d'Anvers, Antwerp
The Union Bank of Australia, Limited
The Bank of Australasia
The National Bank of Australasia, Limited
HONOLULU- -First National Bank of Hawaii
MEXICO— Banco de Londres y Mexico
WEST INDIES— Bank of Nova Scotia, Kingston, Jamaica
Colonial Bank and Branches
National Bank of Cuba and Branches
Limited, Hamilton
BERMUDA—Bank of Bermuda,
Bishop
55
&
Co.
the Sovereign Bank of Canada
Head
Office,
-
Toronto
-
Chief Executive Office,
TOTAL
ASSETS,
Montreal
-
$13,368,859
30th September, 1905,
STEWART
D. M.
2nd Vice-Pres. and General Manager
GRAHAM BROWNE
W.
Manager
of Montreal Office
NEW YORK CORRESPONDENTS
WITH FIFTY BRANCHES
National Bank
throughout Canada we have
every facility for handling
your Canadian business
J.
P.
National
Standard Trust
The Bank
£ ,000,000
EN
1840.
HEAD OFFICE, 5 ORACECHIIRCH ST., LONDON,
COURT OF DIRECTORS.
JOHN
J. J.
H. BRODIE,
CATER, Esq.
HENRY
FARRER,
R.
A. G.
M. G. C.
RICHARD
Esq.
WALLIS,
Gen. Mgr., H.
GEO.
W.
Secretary.
Head
Office in
CANADA,
S.
DUNBAR WHATMAN,
GOLDBY,
Esq.
Manager.
JAMES STREET, MONTREAL.
ST.
STIKEMAN.
E. C.
HENRY J. B. KENDALL, Esq.
FREDERIC LUBBOCK, Esq.
OLYN, Esq.
H. GLYN, Esq.
EDW. ARTHUR HOARE, Esq.
Esq.
Company
Reserve Fund, £420,000 Sterling.
Sterling.
1
Commerce
North America
of British
ESTABLISHED IN 1836.
INCORPORATED BY ROYAL CHARTER
Paid-up Capital,
of
& Company
Shoe & Leather Bank
Morgan
Supt. of Branches,
JAMES ELMSLY.
Inspector, J. ANDERSON.
AGENCIES IN THE UNITED STATES
New
52
York.
San Francisco.
Wall Street.
W. Lawson and J.
C.
Sansome Street.
McMichael and A. S. Ireland, Agts.
120
Welsh, Agents.
H. M.
J.
HRANCIIES IX CANADA.
Province
of
Ontario.
"
"
Quebec,
Oak River.
Northwest Territories.
St.
!»coti:v.
Halifax.
Province
oi
New
S5runsv> ick.
"
Fenelon Falls,
St. (Sub. Br.)
Fredkricton.
Yukon
Ottawa.
Union
District.
Dawson.
Drafts on Soutb Africa may be obtained at the Hank's Hi-anelics.
Commercial Credits issued for use in Europe, China, Japan, East and West
Circular Notes issued in pounds Sterling, available in all parts of the world.
Agents in Canada for the Colonial Bank. London and the West Indies.
56
Battleford,
Calgary,
Duck Lake,
ESTEVAN,
Rosthern,
Yorkton.
Province of B ritish Columbia.
St. John,
Campbellford,
Kingston,
Catherine
Province of Nova
(Sub. Br.)
Midland.
Bobcaygeon,
Longueitil (Sub. Br.)
St.
Brandon,
Reston.
Winnipeg,
Belmont,
Levis (Sub. Br.)
Toronto Junction,
Toronto Stock Yards.
Weston
Province of Manitoba.
Province of Quebec.
Montreal,
London,
London, Market (Sub. Br.)
Brantpord.
Hamilton,
Hamilton, Barton St. (Sub. Br.)
" Victoria Ave.
Toronto,
Victoria,
Trail (Sub.
Vancouver,
Greenwood,
Rossland,
Ashcroft,
Kaslo,
Hedley.
Indies, Brazil, River Plate, Australia, etc.
Br.).
BRANCHES
Elmvale,
Allandale,
Barrie,
Gananoque,
Gait,
Out.
Ont.
«.(.
Cobourg,
Coldwater,
Collingwood,
Copper
Petrolia,
London,
ti
London, E.
Maisonneuve Que.
Brockville,
Cardinal,
Millbrook,
Oakville,
Oil Springs,
Cliff,
Creemore,
Omemee,
Dorchester,
Parry Sound,
BANK of
TORONTO
Ont.
Point St. Charles, Que
Port Hope,
Ont.
"
Preston,
Rossland,
B. C.
St. Catharines, Ont.
Ont.
U
U
Que.
Gaspe,
Keene,
Brantford,
CANADA
IN
Toronto (5 Offices).
Montreal (3 Offices).
"
"
Sarnia,
Stayner,
Sudbury,
Thornbury,
Wallaceburg,
Winnipeg,
Welland,
Ont.
u
it
it
"
Man.
TORONTO, CANADA.
Ont.
Peterboro,
CAPITAL,
Agents in United States
NEW YORK,
CHICAGO,
BUFFALO,
National Bank of Commerce.
First National Bank.
Manufacturers & Traders National Bank.
Current Accounts opened
for business
$3,400,000
3,700,000
30,000,000
RESERVE,
ASSETS,
INCORPORATED
W. H.
W. G.
men on
favorable terms.
Collection of commercial paper and securities given careful attention.
-
1355.
President
Vice-President
BEATTY,
GOODERHAM,
D.
COULSON,
J.
HENDERSON,
-
General Manager
Asst. Gen.
Manager
THE DOMINION BANK
HEAD OFFICE,
TORONTO, CANADA
-
CAPITAL AUTHORIZED, $4,000,000.
CAPITAL PAID UP,
RESERVE FUND and UNDIVIDED PROFITS, $3,722,000.
EDMUND B. OSLER, M.P., President.
T. G.
BROUGH,
Branches
WILMOT
General Manager.
D.
MATTHEWS,
$3,000,000,
Vice-President.
Agencies throughout Canada and United States.
SPECIAL FACILITIES FOR HANDLING COLLECTIONS.
REMITTANCE MADE ON DAY OF PAYMENT.
and
London, England, National Bank of Scotland, Ltd.
Drafts and Letters of Credit issued upon all parts of the World.
Agents
in
THE BANK OF OTTAWA
CAPITAL,
REST,
HEAD
CAPITAL,
(Authorized) $3,000,000
-
-
$2,500,000
OTTAWA, ONTARIO.
OFFICE,
GEORGE BURN,
D. M. FINNIE, Assistant General Manager.
General Manager.
Branches throughout Canada*
Unexcelled
(Paid up) $2,500,000
Correspondence Invited*
facilities for
the handling of collections.
by Act of Parliament) $2,000,000
Capital (authorized
•
Capital Paid-up
THE STANDARD
Reserve Fund
1,000,000
1,000,000
DIRECTORS
W.
BANK OF CANADA
TORONTO, ONT.
F.
Cowan,
-
President
Fred. Wyld, Vice-President
A. J. Somerville
F.W, Cowan
R. Johnston
W. Francis
W.F.Allen
W.
HEAD OFFICE,
•
•
Geo.
P.
Scholfield, General Manager
BRANCHES THROUGHOUT CANADA
BANKERS: New YoBK-Importers and Traders National
Bank.
Montreal— Molsons Bank, and Imperial Bank.
London, England— National Bank of Scotland.
ALL BANKING BUSINESS PROMPTLY ATTENDED TO.
..*.«•»•«.
^nnnronn.mr.mr SOLICITED.
CORRESPONDENCE
->
57
The
German -American Bank
of Rochester,
Capital,
-
-
Surplus and Profits,
N. Y.
$500,000
810,000
Largest Capital and Surplus of any Bank
in Rochester
YOUR ACCOUNT SOLICITED
EUGENE SATTERLEE,
EDWARD BAUSCH,
President
Vice-Prest.
ALBRECHT VOQT, Vice-President
WILLIAM B. FARNHAM, Asst. Cashier
Utica Trust and Deposit Co.
UTICA, N. Y.
Capital,
-
-
$200,000.00
Surplus,
-
-
200,000.00
Profits,
-
-
140,000.00
Deposits, $4,500,000.00
James
S.
Sherman, President.
HAROLD W.STEVENS,
President.
J.
Established in 1792.
Francis Day, Secretary.
FRANK
P.
FURLONG,
Cashier.
HARTFORD NATIONAL BANK
HARTFORD, CONN.
Capital,
$1,200,000
Accumulated Profits, $800,000
By virtue of its Capital, its Accumulated Profits, and the Liability
of its Stockholders, this Bank affords greater Security to its Depositors than any other National Bank in New England, outside Boston.
W.
S.
BRIDGMAN,
W.
2d Vice-President.
58
S.
ANDREWS, Assistant
Cashier.
,
Bank
National Commercial
OF ALBANY,
N. Y.
<iii
t
OFFICERS
Robert C. Pruyn
Capital
President
$500,000
Grange Sard
Vice-President
Surplus
Charles H. Sabin
Vice-President
$1,000,000
Edward
'
J.
Huisey
Cashier
Deposits
Hugh
$14,000,000
N.
Kirkland
Ass't Cashier
Walter W. Batchelder
Auditor
•»W^#<5^KS«w*w«oi^ isajss w^}<m^^pt^w^^'SX%&&e&mx&izxSi
Oar large
list of
correspondents in New York and adjoining States gives us unexcelled facilities for handling new business from
banks and bankers.
National Exchange Bank
OF ALBANY,
N. Y.
CAPITAL,
C. E.
ARGERSINGER,
President.
$300,000
SURPLUS AND PROFITS,
$140,000
JOHN
J.
GALLOGLY,
Vice-President.
CHAS.
Collections Receive Prompt
C. BULLOCK,
Cashier.
Jr.,
and Careful Attention.
THE UNION TRUST COMPANY
OF ALBANY,
Capital,
N.
Y.
Surplus and
$250,000
Profits,
$351*000
Transacts a General Trust and Banking Business
Interest
Allowed on Deposits
GRANGE SARD,
W.
B.
VAN RENSSELAER,
JOSEPH
R.
SWAN,
Treasurer
ARTHUR
The Equipment
in
L.
President
T. I. VAN ANTWERP, Vice-Prest.
MAC NAUGHTON MILLER, Secretary
Vice-President
ANDREWS,
Every Department
59
is
General Counsel
Thorough, Modern and Efficient.
:
The Merchants
Bank
CANADA
OF
ESTABLISHED
Reserve Fund and
Undivided Profits
ass $6,000,000
HEAD
NEW YORK
63 Wall
OFFICE,
President,
OFFICE,
T. E.
C. J.
<P
2 A
MERRETT
CROOKALL
Vice-Pres,,
The Bank has
100
HEBDEN,
j-
Agen ts
JONATHAN HODGSON,
JAMES P. DAWES, Esq., THOS. LONG,
CHAS. R. HOSMER, Esq., C. F. SMITH, Esq.
HUGH A. ALLAN, Esq., C. M. HAYS, Esq.
ALEX. BARNET, Esq.
Directors,
E. F.
"2
of Directors
MONTAGU ALLAN.
SIR H.
H C\C\(~\
«pJn/J,UUU
MONTREAL.
St.
Board
1864
Esq.
Esq.
Acting General Manager
BRANCHES or AGENCIES, distributed through
Ontario, Quebec, Manitoba and
other North-West Provinces.
Branches
Montreal
in
205 ST. JAMES STREET
2200 ST. CATHERINE STREET
TOWN OF
A
799 ST.
1086 ST.
ST.
CATHERINE STREET
LAWRENCE STREET
LOUIS
General Banking Business Transacted
annum allowed on Savings Bank Deposits
of $1.00 and upwards.
Interest added to Principal Half-yearly
Commercial Letters of Credit issued, available in China, Japan, and other Foreign Countries
Letters of Credit issued to Travellers, payable in all Parts of the World
Drafts sold available in any city or banking town in the United Kingdom or United States
Interest at 3 per cent, per
AMERICAN NATIONAL BANK
PROVIDENCE,
F.
W. CARPENTER,
President
R.
I.
Capital $1,000,000.
EDWIN MILNER,
Vice President
HORATIO
A.
HUNT,
Cashier
WALTER
G.
BROWN,
Assistant Cashier
AND
CORRESPONDENCE
RECEIVE CAREFUL AND PROMPT
COLLECTIONS
ATTENTION.
THE
MERCHANTS NATIONAL BANK
PROVIDENCE, R.
Establislied 1818
CAPITAL, $1,000,000.
SURPLUS EARNINGS,
I.
ROYAL C. TAFT, President.
SAMUEL R. DORRANCE, Vice-President.
Over $500,000
MOSES J. BARBER, Cashier.
FRANK A. GREENE, Assistant
Cashier.
SEND YOUR PROVIDENCE COLLECTIONS TO THIS BANK. THEY WILL RECEIVE
CAREFUL ATTENTION AND BE REMITTED FOR PROMPTLY AT A LOW RATE.
UNITED STATES DEPOSITARY.
60
Old Colony Trust Company
AMES BUILDING
BOSTOK
Branch
Office,
52 Temple Place
STATEMENT, APRIL
29, 1905
RESOURCES
Loans
....
$22,347,942.66
Massachusetts Bonds at par
British Consols
LIABILITIES
1,000,000.00
768,240.00
.
.
Railroad and Other Securities
5,466,444.37
Real Estate
1,375,000.00
.
.
.
Capital Stock
Surplus
Fund
.
.
$1,500,000.00
.
.
5,000,000.00
Earnings Undivided
.
348,400.39
Deposits
.
34,144,775.57
.
.
Cash
In Office,
$1,719,632.85
In Banks,
8,315,916.08
10,035,548.93
$4o,993.i75-96
$40,993,175.96
OFFICERS
GORDON ABBOTT,
FRANCIS
HART,
R.
PIERRE
President.
JAMES
Vice-President.
A.
PARKER,
Vice-President.
JAY, Vice-President.
BANKING DEPARTMENT
F. G.
POUSLAND,
F.
E. A.
Treasurer.
LAMSON,
M.
In charge of
PHIPPEN,
Cashier.
Assistant Cashier.
Temple Place
Office.
BOND AND REORGANIZATION DEPARTMENT
ELMER FOYE,
E.
Secretary.
TRUST AND TRANSFER DEPARTMENT
JULIUS
R.
WAKEFIELD,
Trust Officer.
SAFE DEPOSIT VAULTS
JOSEPH
G.
STEARNS,
Assistant Secretary.
BOARD OF DIRECTORS
T.
GORDON ABBOTT
OLIVER AMES
C.
W.
AMORY
CHARLES F. AYER
SAMUEL CARR
B. P. CHENEY
T. JEFFERSON COOLIDGE
CHARLES E. COTTING
JEFFERSON COOLIDGE,
Jr.,
Chairman.
PHILIP DEXTER
EBEN S. DRAPER
GEORGE F. FABYAN
FREDERICK P. FISH
REGINALD FOSTER
GEORGE P. GARDNER
HENRY S. HOWE
WALTER HUNNEWELL
61
THOMAS L. LIVERMORE
GEORGE V. L. MEYER
LAURENCE MINOT
RICHARD OLNEY
NATHANIEL THAYER
LUCIUS TUTTLE
STEPHEN
M.
WELD
ESTABROOK
&
CO.,
BANKERS
'
-< : i
;1
Investment Securities
members;new YORK and boston stock
^*
-
..^*'
EXCHANGES.
15 State Street, Boston.
24 Broad
Webster
&
Street,
New York.
Atlas National
Bank
Of Boston.
Capital,
$1,000,000.
Surplus and
JOHN
P.
JOSEPH
LYMAN,
L.
DIRECTORS.
WILLIAM J. LADD,
THOMAS MOTLEY,
ALFRED BOWDITCH,
CHARLES B. BARNES,
WALTER HUNNEWELL,
RODMAN WELD,
S.
WILLIAM
JOSEPH S. BIGELOW, Vice-President
ROBERT E. HILL, Assistant Cashier.
President.
Cashier.
FOSTER,
B.
JOSEPH
700,000.
Profits,
BIGELOW,
ALLEN,
L.
JOHN
P.
LYMAN,
JOHN W. FARWELL,
JOHN REED,
FRANCIS
ANDREW
Jr.,
GEORGE
E.
A.
G.
PETERS,
WEBSTER,
BULLARD.
Tucker, Anthony
& Co.
BANKERS AND BROKERS
53
State Street,
Boston, Mass.
MEMBERS BOSTON AND NEW YORK
STOCK EXCHANGES.
62
American Loan ajsTrust Company
BOSTON, MASS.
Surplus Earnings
Capital
$1,600,000
$1 ,000,000
OFFICERS
N.W.JORDAN,
DIRECTORS
C. F.
ADAMS,
2d
LOTHROP AMES
HOBART AMES
EDWIN F. ATKINS
CHARLES S. BIRD
GEORGE W. BROWN
SAMUEL CARR
GORDON DEXTER
EUGENE N. FOSS
ELMER P. HOWE
F.
TRANSACTS
A
DIRECTORS
President
E. A.
COFFIN, Treasurer
C. H.
BOWEN,
KIMBALL
N. W. JORDAN
JOHN LAWRENCE
S. E. PEABODY
FRANCIS PEABODY, Jr.
ALBERT A. POPE
DAVID
Secretary
G.W. AURYANSEN, Asst. Sec.
Acts as Trustee,
Registrar and
Transfer Agent.
N.
P.
W. RICE
ROYAL ROBBINS
PHILIP L.SALTONSTALL
CHARLES W. WHITTIER
GENERAL BANKING AND TRUST COMPANY BUSINESS.
E H. Gay & Co.
BANKERS
INVESTMENT
Municipal, Railroad, Street
Railway, Water Power, Gas
SECURITIES
and Electric Light Bonds
Bought and Sold.
We
solicit offerings of
H.
Bonds on Railroads which
are
guaranteed
known
by
well-
W. POOR
33 Wall
St.,
&
GO.
New York
lines.
52 Devonshire
St.,
Boston
LISTS UPON APPLICATION
25 Congress Street
i
Nassau Street
Boston
New York
42 J Chestnut Street
Philadelphia
J57 St. James Street
Montreal
63
Boston Safe Deposit
87 Milk
-
-
SURPLUS,
-
-
Co.
BOSTON
Street,
CAPITAL,
& Trust
$1,000,000
$2,000,000
and Banking Business
Transacts a General Trust
OFFIC ERS
CHARLES
ROGERSON,
JAMES LONGLEY,
WILLIAM C. WILLIAMS,
GEORGE E. GOODSPEED,
E.
-
-
WM.
President
-
HENRY
Vice-President
„
WHITNEY.
A.
FENN,
.
Vice-President
-
L.
-
Secretary and Mgr. Safe
Deposit Department
H D HEATHFIELD,
Treasurer
F.
J.
BURRAGE,
Ass't Treasurer
-
-
Ass't Secretary
-
Ass't Secretary
Safe Deposit Vaults with Safes for rent at from $10 to $150 per year
Baker, Ayling
50
&
Company
CONGRESS STREET, BOSTON
STEAM RAILROAD] DAMne
STREET RAILWAY] DV/roUO
CIRCULARS ON APPLICATION
Second
International
Edition, mm
Exchange
TERMS, PARTS, OPERATIONS AND SCOPE A PRACTICAL
ITS
The Foreign Banking Department
WORK ON
AdministrationbyAraericaH Bankers
Also of Especial Interest to Brokers, Merchants, Exporters, Importers,
Accountants, Teachers, Educational Institutions, etc., etc.
RvAMTHflW
it] rill 1 UU.1
I
W
YY
.
Manager Foreign Exchange Department American Express Co., Chicago; Formerly
f tQi F 0re ign D-jpartmjnt of the Nat'l Bank of the Republic of Chicago.
>toag
MAPffiSAGR M
ITlAIYUlV^rr,
.,.
,,
ZThisbook is a practical treatise on International financial and commercial transactions, /laving- a ditect and important bearing on all business interests in this country and is instructive and interesting to every Banker and Merchant,
whether, or not. actually engaged in foreign business relations.
Heal OflS es of the Bank of Nova Scotia, Hank of Montreal, and Dominion Bank, have recently furnished their
EXCHANGE." No better endorsement as to
Hranch Agencies with copies of " MARGRAFF'S
INTERNATIONAL
tlie
merits and practical worth of the book could be secured.
B
?S{SW : pj:S«r
fl
on receipt
of
$5.00.
Address
INTERNATIONAL EXCHANGE, Room 124 JSSSSS!VSr
64
Bui,d,ntr
'
The
National Discount
Company,
LIMITED.
35 Cornhill,
London, England
Cable Address, "
NATDIS, LONDON."
Subscribed Capital, $21,166,625
PAID-UP CAPITAL,
-
-
-
RESERVE FUND,
-
-
-
In 169,333 Shares of #125 each, of which #25 have been paid up.
LAWRENCE EDLMANN CHALMERS
:
Number of
Proprietors, 3,306.
DIRECTORS
EDMUND THEODORE DOXAT, Chairman
FRIEDRICH C. K. FLEISCHMANN
FREDERICK WILLIAM GREEN,
W. MURRAY GUTHRIE, M. P.,
Sub-Mgr.
$4,233,325
2,000,000
WATKIN W.WILLIAMS
FREDERICK LEVERTON HARRIS,
Auditors
Bankers
Dr.
subscribed capital
#21,166,625
viz., 169,333 shares of
#125 each.
" Capital paid up, viz., #25
per share
" Reserve fund
" Deposits and
sundry
balances
Rebate
"
Amount
Co.)
:
THE UNION OF LONDON AND SMITHS BANK, LIMITED
BALANGBlSHEET, 30th JUNE, 1905.
$5=£1 Starling.
By Cash
To
"
"
Bills re-discounted
at credit of
profit and loss account
"
at Bankers
Securities
British
—
Gr.
#697,049
and
Indian Govern't, and other
Trustee Securities, including City of London
Corporation Bonds
#10,328,404
Other Securities
1,207,021
#4,233.3 2 5
2,000,000
",535.425
52,973.471
15.271,45°
Loans
at call, short
and
236,050
fixed dates
Bills discounted, etc
269,040
Sundry balances and Interest due on investments
and loans
10,066,399
52,018,383
113,080
553,°°°
Freehold premises
#74,983.33 6
#74,983.336
Profit
Dr.
To
Current expenses,
ing
salaries,
and Loss Account for the Half-Year Ending 30th June, 1905.
S6=S1 Sterling*
includBy Balance brought forward from 31st
December, 1904
stationery,
Income Tax and other
"
charges
"
Directors'
"
Rebate of
Gross
profits
during the half year
.
Gr
#55,744
512,818
#50,222
and
auditors'
remuneration
interest
13,250
on
bills
not due, carried to new
account
" Six months' dividend at the
rate of ten per cent, per
annum, free of Income
Tax
"
P.,
:
JOSEPH GURNEY FOWLER, F. C. A. (Price, Waterhouse & Co.)
FRANCIS WILLIAM PIXLEY, F. C. A. (Jackson, Pixley, Browning, Husey &
BANK OF ENGLAND.
M.
SIGISMUND FERDINAND MENDL,
JOHN FRANCIS OGILVY.
CHARLES. DAVID SELIGMAN,
Manager: PHILIP HAROLD WADE.
Secy.: CHARLES WOOLLEY.
Ass't Sub-Mgr.: FRANCIS GOLDSCHMIDT.
236,050
#211 ,666
Balance carried forward
to next account
57,374
269,040
#568,562
#568,562
In accordance with the provisions of the Companies Act, 1900, we certify that all our requirements as Auditors have been
complied with.
We have examined the Securities representing investments of the Company, those held against Loans at call, short and fixed
dates, and all Bills discounted in hand.
We have also proved the Cash Balances, and verified the Securities and Bills in the hands
of depositors. The foregoing Accounts agree with the books, and we are of opinion that the balance sheet is properly drawn up so
as to exhibit a true and correct view of the state of the Company's affairs as shown by the books of the Company, except that it does
not state the amount of Investments and Bills placed as security against Deposits.
J. GURNEY FOWLER, F. C. A„
)
(Price,
35
Cornhill, 5th July,
& Co.)
F. C. A.,
Waterhouse
FRANCIS W. PIXLEY,
(Jackson, Pixley, Browning,
1905.
Approved Bank and Mercantile
(
Husey
&
(
Auditors
v(* ltors
*
Co.) )
Bills Discounted.
Loans granted upon approved Negotiable Securities.
received on Deposit, at rates advertised from time to time, and for fixed periods upon specially
agreed terms.
Money
65
1
The Union Discount Company
OF LONDON, LIMITED.
Capital
Cable Address,
Cornhill, London, E.C.
39,
Subscribed,
"UDISCO, LONDON."
$7,500,000, in 150,000 Shares of $50 Each,
on Tfrhich $25 have been paid.
Number of Shareholders,
Reserve Fund, $2,100,000.
Paid Up, #3,750,000.
2,721.
DIRECTORS.
ROBERT BALFOUR.
WILLIAM THOMAS BRAND.
Sir WILLIAM DUNN, Bart., M.P.
ARTHUR JOHN FRASER
Sir THOMAS JACKSON, Bart.
ROBERT PETER LAURIE, C.B.
HENRY OPPENHEIM.
Maxasbr— CHRISTOPHER
R.
NUGENT.
Assistants to
Manager— E.
C.
STEVENSON and F. NEVILL JACKSON.
Secretary— E. MARCH.
DR.
To
Balance
Amount
30th
Sheet,
paid, #25
^3,750,000.00
2,100,000.00
Reserve Fund
Provident Reserve
Fund
178,294.12
Loans and Deposits, in-
cluding provision for
contingencies
" Bills Re-discounted
1905.
CR.
Bankers
" Consols, Exchequer Bonds, Indian
Government and other Securities..
" Loans on Sundry Securities at call
and short dates
" Bills Discounted
" Sundry Debit Balances
" Freehold and Leasehold Premises,
Fittings and Furniture
#7,500,000.00
per share
"
June,
By Cash
Capital Account, 150,000 Shares of #50...
74,796,517.15
16,647,491.23
at
#2,501,084.94
14,436,669.27
iOpi53i6S7-94
70,880,182.79
35.4I3-I9
538,610.43
91,444,008.38
" Rebate on Bills
Dis-
counted
Balance at Credit of
Profit and Loss for
Appropriation
576,91 1.50
496,404.56
i>Q73»3i6.o6
$98,545,618.56
DR.
To
Profit
and Loss Account
for
#98,545,618.56
the Six Months ending 30th June, 1905.
By Balance brought forward from
Current Expenses, including Salaries, Rent
"
charges
"
Rebate of
£97,399-3i
interest
31st
December, 1904
and Taxes, Directors'
Fees, and all
other
CR.
#251,225.19
Gross Profits for the half-year, after
making provision for bad and
on
doubtful debts
919,490.18
discounted not
due, carried forward to
Bills
New
Account
576,911.50
"Provident Reserve Fund
" Dividend for the halfyear at the rate of 1
per cent, per annum,
#25,000.00
free of IncomeTax
" Balance
carried
forward to next Account
206,250.00
265,154.56
496,404.56
#1,170,71537
E.
MARCH,
Secretary.
WILLIAM DUNN,
THOMAS JACKSON,
\
#1,170,715.37
Diredors
uirectors
-
Balance brought down.
.
#265,154.56
\
In accordance with the provisions of the Companies' Act, 1900, we certify that all our requirements, as Auditors, have been compiled with.
We have examined the Securities representing Investments of the Company, those held against Loans made by the Company at call, short
and fixed dates, and all bills discounted In hand. We have also verified the Cash Balances, and vouched the Securities and Bills given as collateral Becuiity for Loans, and we have now to report to the Shareholders that the foregoing Accounts agree with the Books, and In our opinion
the Balance Sheet Is properly drawn up so as to exhibit a true and correct view of the state of the Company's affairs as shown by the books of the
Company, evcept that, whilst It shows the amount of the Bills discounted whlcn have been re-discounted, it does not show the amount of the
Bills and other Securities given out against Loans shown on the debit side of the Balance Sheet.
YOUNG
(Turquand, Youngs &
THOMAS A. WELTON
A.
Co.),
)
(
*
j;^,,,.
Auditors.
E. C,
\
(Welton, Jones & Co.),
iothjuly, 1905.
)
The Company discounts approved bank and mercantile acceptances, receives money on deposit at rates
advertised from time to time, and grants loans on approved negotiable securities.
London,
$5
=
66
£1.
SPEYER &
CO.
BANKERS
NEW YORK
24-26 Pine Street
AGENTS FOR
Messrs.
SPEYER BROTHERS
London
Mr.
LAZARD SPEYER-ELLISSEN
Frankfort
Messrs.
f main
GEBR. TEIXEIRA
Amsterdam
67
de
MATTOS
MAGOUN
BARING,
&,
CO.
CORNER
WALL AND BROAD STREETS
NEW YORK
FOREIGN EXCHANGE
TRAVELLERS AND COMMERCIAL LETTERS OF CREDIT
INVESTMENT SECURITIES
AGENTS AND ATTORNEYS
FOR
BARING BROTHERS &
CO., Ltd.
LONDON
Millett,
Roe
&
Hagen,
BANKERS.
Dealers
in
HIGH-GRADE BONDS.
Members
New York
Stock Exchange.
NEW
3 Broad Street,
68
YORK.
Independent Supervision
THE WATCHWORD OF TODAY.
IS
The value
recognized by depositors,
We
efficient
and
directors
and trust company examinations
bank
independent
of
officials.
make such examinations
are organized to
is
in the
most thorough and
manner.
Write
to
the
oldest and
foremost corporation engaged in accounting
for particulars.
Address,
DEPARTMENT OF BANK EXAMINING,
The Audit Company of NewYork
43 Cedar Street.
Chicago Office,
New
York
Philadelphia Office,
Arcade Building
Life Building
INCORPORATED
United States
Company
Trust
45 and 47
CAPITAL,
1853.
WALL STREET.
-
$2,000,000.00
-
SURPLUS AND UNDIVIDED PROFITS,
LYMAN
D.
WILLIS JAMES,
HENRY
L.
J.
GAGE,
Vice-President.
THORNELL, Secretary.
JOHN A. STEWART,
New York
of
Chairman
ESTABLISHED
$12,723,363.31
President.
JAMES
S.
CLARK,
LOUIS
G.
HAMPTON,
of the
Board
Second Vice-President.
Assistant Secretary.
of Trustees.
1829
Merchants Exchange National Bank
1
.
Of the City
257
PHINEAS C. LOUNSBURY, President.
ALLEN S APGAR, Vice-President and
of
York
BROADWAY
EDWARD
EDWARD
.
.
New
Cashier.
V.
K.
GAMBIER, Assistant Cashier.
CHERRILL, Assistant Cashier.
Accounts of Banks, Bankers, Merchants and Manufacturers Solicited.
6;>
Company
Fidelity Trust
NEWARK,
Capital, Surplus
ALLOWS INTEREST
N.
and Undivided
Profits, over
of Real and Personal
Estates.
RENTS SAFES
and stores valuables in well-guarded
Burglar and Fireproof Vaults.
general banking business.
tee,
$9,000,000
TAKES ENTIRE CHARGE
on daily balances of $ 1,000
or over, subject to check at sight, and transacts a
AUTHORIZED BY LAW
J.
to act as Executor, Trus-
GUARANTEES TITLES
Administrator, Guardian, Assignee, Receiver,
of Real Estate through-
New Jersey.
ACTS AS TRUSTEE under mortgage,
out
and in all fiduciary capacities, both under court
and personal appointment.
Registrar and
Transfer Agent of Stocks and Bonds of Corporation*.
OFFICERS.
UZAL H. McCARTER, President
JOHN F. DRYDEN, Vi< e-President
FREDERICK W. EGNER, Secretary
JAMES
H.
SHACKLETON,
Ass't Secretary
and Ass't Treasurer
SAMUEL W. BELDON, General Counsel
JEROME TAYLOR, Trust Officer
and Treasurer
THEODORE HAMPSON,
Ass't Trust Officer
Maitland, Coppell & Co.
52
William
Street,
New
York.
ORDERS EXECUTED FOR ALL INVESTMENT SECURITIES. ACT AS AGENTS OF CORPORATIONS AND
NEGOTIATE AND 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
Bank
ITS
BRANCHES.
of Australasia, the British
Guiana Bank, Demerara,
etc., etc.
TRAVELERS' LETTERS OF CREDIT
AVAILABLE THROUGHOUT THE UNITED STATES.
70
,
BANKERS TRUST COMPANY
WALL STREET, NEW YORK.
7
Capital
Surplus $500,000
$ ,000,000
1
Opened
March
for Business
Undivided Profits Sept.
Pres.
Bank of the Manhattan
Co.,
York.
SAMUEL
G.
JAMES
THOMAS
New York.
C.
CONVERSE,
P.
DAVISON,
New York.
Vlce-Pres. First Nat. Bank,
JAMES
H.
Pres. Chemical Nat. Bank,
ECKELS,
DANIEL
Pres. Commercial Nat. Bank, Chicago
WALTER
E.
Vlce-Pres. Corn
JOHN
Liberty Nat.
Vlce-Pres.
FRANCIS
Exchange Bank, New
York.
H.
ALBERT
Park Bank,
New
H.
WIGGIN,
Vice-Pres. Chase Nat. Bank, New York.
ROBERT WINSOR,
Kidder, Peabody & Co., Bankers, Boston.
SAMUEL WOOLVERTON,
New
Pres. Gallatin Nat. Bank,
EDWARD
SKELDING,
President First Nat. Bank, Pittsburgh.
Acts as Executor, Administrator
THORNE,
York.
York.
FREW,
G.
Vice-Pres. National
New York.
Bank,
THOMPSON,
F.
GILBERT
New York.
REID,
G.
SWINNEY,
Vice-President.
EDGAR L. MARSTON,
Blair & Co., Bankers, New York.
GEORGE W. PERKINS,
J. P. Morgan & Co., Bankers, New York.
WILLIAM H. PORTER,
President.
HENRY
W. LAMONT,
Pres. Mechanics' Nat. Bank,
F.
Pres. First Nat. Bank, Kansas City.
GATES W. M'GARRAH,
Vlce-Pres. Fourth Nat. Bank, New York.
EDMUND
EDWARD
New York.
2nd Vice-President,
CANNON,
G.
Chase Nat. Bank,
Pres.
BAYNE,
Pres. Seaboard Nat. Bank,
25,400,000.
-
DIRECTORS.
BARTON HEPBURN,
A.
New
J 903.
275,978.
$
5, J905,
Deposits September 5, 1905,
STEPHEN BAKER,
30,
F. C.
New York.
YOUNG,
Pres. First Nat. Bank, Jersey City.
and Guardian ; Assignee and Receiver ; Registrar, Transfer and
and as Trustee for individuals and corporations.
Agent
Fiscal
ALLOWS INTEREST UPON DEPOSITS.
E. C.
CONVERSE,
J. F.
President.
B.
THOMPSON,
T.
W. LAMONT,
STRONG,
W. DONOVAN,
H.
JR.,
D. E.
POMEROY,
2nd Vice-President.
Vice-President.
Secretary.
Treasurer.
F. N. B.
CLOSE,
Asst. Trust Officer
Asst. Treasurer.
Chartered 1866.
Brooklyn Trust Company
Main
Office:
J
77- J 79
Montague
Branch : Bedford Avenue and Fulton
Capital,
b.x.
Profits, 2, 1 27,8
U .90
Theo. F. Miller, President
Samuel W. Boocock, Vice-President
Francis L. Hine,
Chairman
St.
$1,000,000,00
-
Undivided
St.
F, C. Col ton, Vice-President
^ Rusted, Secretary
s<
F. J. W. Diller, Asst. Secretary-
w
Com.
Franklin
Trust Company
NEW YORK
CITY
:
140 Broadway, Manhattan
164-166
Montague
St.,
Brooklyn
Deposits Received, Checks Honored and
Any Business Transacted at Either Office
Capital, Surplus and Undivided Profits, over
$2,800,000
OFFICERS
GEO. H. SOUTHARD,
WM. H. WALLACE,
GATES D. FAHNESTOCK,
CLINTON W. LUDLUM,
GEO. H. SOUTHARD, Jr.,
FREDERICK W. RICHT,
President
Vice-President
2d Vice-President
WILLIAM
I.
FROTHINGHAM,
71
Trust Officer
SecretaryAssistant Secretary
Assistant Secretary
The
Farmers' Loan
CHARTERED
NOS.
16,
18,
1822.
AND
20
22
NKW
CAPITAL,
& Trust Co.
WILLIAM STREET,
YORK.
$1,000,000 oo
-
-
UNDIVIDED PROFITS,
7,400,226 02
The Company is a legal depositary for moneys paid into Court, and is authorized to act as Executor
Administrator, Trustee, Guardian, Receiver, and in all other Fiduciary capacities.
Acts as Trustee under Mortgages made by Railroad and other Corporations, and as Transfer Agent and
Registrar of Stocks and Bonds.
Receives deposits upon Certificates of Deposit, or subject to check, and allows interest on daily balances.
Manages Real Estate and lends money on bond and mortgage.
Acts as Agent for the transaction of any approved financial business.
EDWIN
MARSTON,
S.
THOMAS
President.
BARNETT,
J.
2d Vice-President.
SAMUEL SLOAN, Jr., Secretary.
AUGUSTUS V. HEELY, Asst. Secy.
WILLIAM B. CARDOZO,
CORNELIUS
R.
Asst, Secy.
AGNEW,
Asst.
Secy
BOARD OR DIRECTORS:
SAMUEL SLOAN,
WILLIAM WALDORF ASTOR,
D. O.
MILLS,
D. H.
ROBERT F. BALLANTINE,
FRANKLIN D. LOCKE,
GEORGE F. BAKER,
A. G. AGNEW,
CHARLES A. PEABODY,
HUGH
D.
STEPHEN S. PALMER,
CLEVELAND H. DODGE,
JOHN L. RIKER,
ROBERT C. BOYD,
JAMES STILLMAN,
HENRY A. C. TAYLOR,
KING,
Jr.,
HOLDEN,
WILLIAM ROWLAND,
EDWARD R. BACON,
HENRY H. ROGERS,
EDWIN S. MARSTON,
MOSES TAYLOR PYNE,
E. R.
AUCHINCLOSS,
HENRY HENTZ,
VAN RENSSELAER KENNEDY
H.
ARCHIBALD D. RUSSELL,
P. A. VALENTINE
STATEMENT.
Quarterly report at the close of business on the
fifth
day
of
September, 1905.
RESOUECES.
United States Bonds,
Bonds
of the City of
at
market value,
New
York,
at
...
-
market value,
Railroad Bonds and other Bonds and Stocks, at market value,
$3,922,457.50
-
2,375,015 00
-
-
-
17,847,080.02
-
Real Estate,
1,450,000.00
Bonds and Mortgages,
1,468,700.00
Loans,
62,992,113.82
Cash on hand, and
Accrued
in
Bank
...
-
interest, Rents, etc.,
10,921,264.53
413,730.74
$101,390,367.61
LIABILITIES.
Capital Stock,
Undivided
$1,000,000.00
7,400,226.02
Profits,
Deposits,
Interest accrued.
Taxes, and other Liabilities,
.....
92,268,767.36
721,374.23
$101,390,367.61
72
BANKERS' andTRUST
SECTION
OF THE
Entered according to Act of Congress
VOL.
in
the year 1905 by William B.
NEW
81.
F inancial Q hronicle.
&
C ommercial
Daka Company,
YORK, OCTOBER
ie tly
ZH
Cbronick,
it is
The Commercial and Financial Chronicle
a weekly
newspaper of 72 to 88 pages, published in time for the earliest mail every Saturday morning, with the latest news by telegraph and cable from its own correspondents relating to the
various matters within its scope.
The Chronicle comprises a number of added Sections, issued
periodically, and which form exceedingly valuable adjuncts of
the weekly issues.
The Railway and Industrial
furnished
without
charge
extra
is
Section, issued quarterly,
to
every
subscriber
of
is
the
Chronicle.
The State and City Section, issued semi-annually, is also
furnished without extra charge to every subscriber of the
Chronicle.
The Quotation Section, issued monthly, is likewise furnished without extra charge to every subscriber of the Chronicle.
The Street Railway
Section, issued three times a year,
also furnished without extra charge to every annual
scriber of the Commercial and Financial Chronicle.
is
sub-
Besides these Sections, others are published from time to
time like the present Bankers' and Trust Section.
Terms for the Chronicle, including all the Sections, are Ten
Dollars within the United States and Thirteen Dollars (which
includes postage) in Europe.
WILLIAM
B.
Pine
DANA COMPANY,
corner
St.,
Pearl
St.,
New
York.
complete index to the advertisements ap-
pearing in the present issue of the Bankers' and
Trust Section will be found on pages 79 and
80.
»»
THE CONVENTION AND THE CURRENCY.
The Bankers' Conventions have
in the past
served a highly useful purpose in keeping constantly before the public
mind questions
of re-
form in our currency methods, which, except for
such periodical reminders, might be forgotten in
the absorption of public interest in our present
prosperous trade.
It is a
maxim
21,
Washington, D. C.
NO. 2104.
1905.
effected in the time of reaction
rather apt never to be done at
all,
;
consequently
save under the
pressure of some overwhelming disaster.
It
would
be needless to go into particulars on this point perhaps it will be enough to point out the ease with
which a reform requiring accumulation of addition;
reserves of gold could be adopted at a time like
as compared with the difficulties which
this
al
would beset the same undertaking
in
a period
such as 1894.
Mr. Pugsley, Acting Chairman of the Currency Committee of the American Bankers'
Association, spoke on this matter to the Con" It
vention last week.
"
the part of
when
wisdom
the country
is
would seem," he
said,
to retire the legal tenders
prosperous rather than in
the throes of a panic, when the danger of such a
currency and the necessity for its retirement are,
Following out this
possibly, more apparent."
argument, Mr. Pugsley indicated concisely
and forcibly the reforms which the American
bankers ought to urge more vigorously than ever
now at a time when there is danger that the people at large may become indifferent to the whole
line of
PUBLISHERS,
INDEX TO ADVERTISEMENTS.
A
in the office of the Librarian of Congress,
of financial his-
Mr. Pugsley proposed four distinct
recommendations, in all of which we heartily conThe first has to do, as was shown by the
cur.
citation from his speech which we have just
made, with retirement of the legal tenders. His
argument consisted in bringing back the true
question.
conception as to the nature of this currency as a
demand obligation of the Government. No popular error is more persistent or more insidious than
something
different from a promise to pay, on which payment may be demanded at an inconvenient moment. All the bitter experience of 1893 and 1894,
Government note
the belief that the
is
was
rapidly
tory that reforms which are pressed upon the
when
people and the Government in times of depresinfluence of defects in such
drained through redemption of legal tender notes
in gold which was needed for export purposes
most grievously felt, will often be
overlooked and postponed at prosperous times.
The unfortunate result of such a policy is that
the reform which might have been easily carried out
and which could be obtained from no other quarter, has done comparatively little to dislodge
from the popular mind this misconception of the
nature of a Government floating debt. Mr. Pugs-
sion,
when
a system
in the
the evil
is
more prosperous days cannot be so conven-
ley
the Treasury's gold reserve
recommends
that the legal tenders
still
out-
BANKERS' CONVENTION.
74
standing should be redeemed at the earliest possible moment through issue of the long-time
bond, bearing a low rate of interest, which could
be used either for bank circulation or as security
for public deposits
and the issue of which, there-
though involving the extinction of the legal
would in no respect involve the contrac-
fore,
tenders,
tion of the currency.
The second recommendation
is
that the silver
shall be made distinctly
Reluctance to agree on such
certificates
and dollars
redeemable
in gold.
a provision
is
ver heresy
in this
the last sign that
country, but
is left
it
is
sil-
sufficiently
obstructive to open the possibility of
consequences at some future time of
of the
awkward
stress.
If
the silver currency were to be
made thus redeemMr. Pugsley holds that the gold reserve for
redemption purposes should be increased from its
able,
present
minimum
of $150,000,000.
many
years for increase in bank note circulation,
that circulation actually increased $39,000,000 in
twelve months.
was, in fact, impossible for
the larger banks to reduce their outstanding notes
in any reasonable ratio to the curtailment of
It
Mr. Pugsley proposes that the limit of
monthly contraction should be expanded to six
or nine million per month.
The final suggestion embodied in the Committee's report is that of an emergency currency,
unsecured by United States bonds, but heavily
trade.
taxed to insure
tions
its
retirement
made
which
when
necessary
it
the condi-
have
passed
more cautious consideration.
is the practice followed by the Imperial
Bank of Germany, and in that market it has undoubtedly worked well. Whether it would work
away.
This
This
calls for
equally well in this country, especially
when
immediate need at a panic
lawful re-
money
crisis is for
the
rather than increased hand to hand
Taking up the question of deposit of Government funds in banks, he recommends, in behalf of
serve
the Committee, that such deposits should be secured
either by United States bonds, as at present, or
however, altogether a salutary sign of
the times that the responsible committee of
our associated bankers have not allowed the
fact of great prosperity in spite of our present
defective currency system to blind them to the
need for reform.
The note of warning in this
regard was sounded by almost every speaker at
last week's convention and in a way, we think,
which will impress on the public the necessity
of action. The trouble in the past has been that
by other securities approved by the Secretary
of the Treasury, and he holds that no reserve is
necessary against such deposits. In this he follows the somewhat arbitrary action of Secretary
Shaw
September, 1902, of which action we
have frequently remarked that it was open to
criticism, not on its merits as an economic move,
but because it was done outside the existing provisions of the law.
Mr. Pugsley's suggestion
may be amplified by reference to the report of
the
in
New York Chamber
of
Commerce on
the
same question during 1902, in which specific recommendations as to the machinery of such a
change were made. The report to the bankers
follows the recommendations of the Chamber as
regards allowance of interest on such deposits to
the Government by the banks.
The recommendation in this regard, however, is cautiously
made, the report merely proposing such allowance " if practicable."
It will be remembered
that
the
Chamber
and the Aldrich
of
Commerce's proposition,
which undertook to embody
its suggestion in law, encountered bitter
opposition from interior banks who believed that the
allowance of interest would not make main-
discussion.
Repeal of the present limitation of $3,000,000
per month on retirement of the bank note circulation is again proposed, as it was in the
Aldrich
and has repeatedly been done on other occasions.
We have pointed out on many previous
bill,
occasions the absurdity into which the existing
statute leads our currency.
Last year, for instance, at a time
all
the
currency, and
sider
too
question.
when slackening
of trade
had
channels of circulation with idle
when
the
New York
bank reserve
had reached an almost unprecedented height,
and when, therefore, there was less need than in
We
con-
it,
many
plans competed for endorsement when-
ever need of legislation became really urgent.
Here
is
where
lies
the real value of a concrete,
well-matured plan whose discussion by practical
experts, even in advance of legislative committee
hearings, will clear the air of popular discussion.
»
FEATURES OF THE CONVENTION'S WORK.
Like everything else in this vast country, the
American Bankers' Association in membership
and the capital represented by the same is assuming dimensions which but a few years ago could
hardly have been deemed within the bounds of
bill,
tenance of such deposits feasible.
This is undoubtedly a question which will call for wider
filled
may be an open
circulation,
early probability.
It
is
true that
some
of the
more recent growth has followed from the extension of the field of membership through the admission of
new
classes of institutions
—
first
the
Trust Companies, and more lately the Savings
Banks but the fact remains that the Association
to-day is of larger proportions than ever before
in its history.
We may go further and say that
in magnitude it is really of imposing dimensions.
To state that there is no other bankers' guild
like it in the world savors of the commonplace.
Figures descriptive of its size will convey a bet-
—
ter idea of its
unique position in that regard. In
we have become accustomed to
and aggregates dealing even with
the United States
large totals,
hundreds of millions no longer excite much comment. But according to the Secretary the membership of the Association comprises an aggregate capital, surplus and deposits of $11,460,875,-
BANKERS' CONVENTION.
527, the
number
of
members being
7677.
any other organized body that can lay
given freely to the Government valuable assistance in carrying out every financial measure
which the Government has undertaken.
Among the addresses delivered before the
Is there
title
to
such an immense combination of resources or of
the products of human industry?
With
its
growth
in size
Convention those by Secretary Shaw and Comptroller Ridgely easily take leading place by reason of the attention they commanded at the Convention and the interest and discussion they have
aroused outside.
Mr. Ridgely devoted himself
to the subject of National Bank Examinations,
but Mr. Shaw in speaking with reference to
Trade Expansion dealt entirely with the question of the decline of our merchant marine and
argued in favor of building it up through Government aid.
Obviously the subject is one in
which every thoughtful citizen is interested, and
yet it is not a distinctively banking or financial
the influence of the
Association on the course of affairs is, of course,
extending.
And there is cause for congratulation that those prominent in its councils are not
governed by narrow or provincial views. Certain remarks made by the retiring President, Mr.
E. F. Swinney, have particularly impressed us in
that regard.
Mr. Swinney said that time was
when banks and bankers were merely thermometers registering the local financial atmosphere
of the country, but to-day in the large sphere of
business undertakings they largely create that
atmosphere. No better illustration of this could
be given, he thought, than the attitude of the
bankers during the period of the silver craze. To
the
American bankers more than
business
men
to
any
topic, but
tion,
due the fact that the country did
not go irredeemably astray on the question of
the monetary standard.
Mr. Swinney stated
that he was particularly desirous to disparage the
are practical and of widespread
benefit.
Mr. Walker Hill also gave expression to some
suggestive words along the same lines. Mr. Hill
combats the notion that the value of membership in the
American Bankers' Association consists solely or chiefly in the work of the Protective Committee.
That the work of this Committee may be, and often is, of very great pecuniary value to individual members, he thought,
was a feature of membership in the Association
that
all
appreciate
;
but he did not hesitate to say
that in the opinion of
most of the members if this
Committee were abolished and the work that it
does altogether abandoned there would still remain important work for the Association to do,
and a material advantage in its membership. The
lawyers do not maintain Bar Associations to protect themselves against
wrongdoers, but to elevate the standards of their profession and com-
members
pel its
clients
and
members
to observe their obligations to
their duties to the courts. And so the
American Bankers' Association
must not consider the sole advantage of memberof the
ship in
it to lie in such protection as it may afford
against the criminal classes. The standing committees on " Uniform Laws," " Currency Legisla-
tion," " Bankers'
Money
Orders," and' " Education," as well as the " Protective Committee," all
do work of pecuniary value to the members of
the Association. Mr. Hill also did well to recall
the origin and purposes of the Association, pointing out that at the very beginning of its career
the Association set before itself a wise and patriotic purpose, and from that day to this it, as
a body,
and
its
members, as individuals, have
for this reason its introduction
and
dis-
mark somewhat
For the same reason the pro-
of a departure.
is
They
benefit.
and
rather a controverted political ques-
cussion at this bankers' meeting
class of
too prevalent notion that the meetings and conventions are merely the assemblages of good
fellows for a good time and are not of practical
75
priety of the action has been questioned in certain quarters.
Nothing would be gained by en-
tering into a debate on this point.
the matter
is
The
fact of
that the question of ship subsidies
was brought up before the assemblage and that
the Convention declared emphatically in favor
only subject of
large importance concerning which the Association took a decided stand.
Secretary Shaw did
of the same.
It
was,
in fact, the
not express a preference for any particular meth-
od of extending Government aid to the shipping
or ship building industry, but urged the adoption
of "
some
policy that will restore our flag to her
deserved place on the seas and give to American
enterprise its share of the carrying trade of the
world."
In truth
two elaborate addresses on
this sub-
were delivered before the Convention. Besides the one by Secretary Shaw there was another by H. D. Goulder, of Cleveland, the President of the Merchant Marine League, whose
theme was " Our Commerce." On the program
both these addresses were set down for the
third day of the Convention, Mr. Shaw's following that of Mr. Goulder. There is, however,
a remarkable similarity of thought underlying
these two addresses and also a close similarity
in the argument employed, as may be seen by
reference to the same on subsequent pages, and
had the program been adhered to in the sequence given Secretary Shaw must have been
highly embarrassed, his speech coming after the
other.
By having Secretary Shaw's address
ject
transferred to the
first
day, as
was done,
this
was avoided, and the deliverance attracted the
attention which it merited, more so perhaps than
had been left over to the third day and
there had been no other dissertation on the same
if
it
subject.
As
already stated, the Convention took positive
action in favor of ship subsidies.
It has been
sought to create the impression that the resolution was rushed through in great haste and be-
BANKERS' CONVENTION.
76
most
fore
of the
—
delegates
knew what
it
was
about that hence the action represents a sort of
snap judgment. Perusal of our stenographic report of the proceedings on the floor of the ConThere
vention will serve to dispel this notion.
was apparently a lively debate on the subject,
which excited wide interest, and there were remarks in opposition as well as in favor of the
resolution so the delegates must have voted for
;
adoption with full understanding.
Indeed,
candor compels the statement that sentiment
Comptroller and advising the office that steps
will be taken to correct the matters complained
of.
This is a commendable practice and much
good has already resulted from it.
»»»
TRUST COMPANY SECTION.
The Trust Company
Section in its work is proceeding along the lines mapped out for it in preceding years and which have been found so suc-
its
seemed overwhelmingly
in
favor of ship
sub-
sidies.
Comptroller Ridgely's address concerning National Bank Examinations was a clear exposition of the limitations as well as the advantages
of such
examinations.
The
benefits
conferred
by the examinations are undoubted.
And yet
while the Comptroller's office can and does render important services, its work must necessarily
always consist largely in discovering and laying
bare irregularities and violations rather than in
making them impossible. The Comptroller can
detect and correct, but he cannot wholly prevent.
In most cases the mischief has been done before
the examiner appears.
In order to obtain the
best results, therefore, there must be co-operation
between the officials of the bank and the Govern-
ment.
Very
cessful.
during the past four years he is firmly convinced that no system of bank examination or
supervision from the outside of the bank can absolutely prevent fraudulent bank failures.
The
more thorough and efficient the supervision the
tion
more surely and quickly frauds will be discovered and the mere fear of detection will tend to
view of the recent
disclosures in the financial world, there
was more
comment upon the comparative absence
wrongdoing and irregularities among this class
of financial institutions.
As Mr. Stellwagen
(President of the Union Trust Company, of
Washington, D. C.) in his address of welcome
said, the trust companies in a comparatively few
or less
of
years have entrenched themselves firmly in the
confidence of the public.
Moreover, they have
rapidly broadened the scope of their operations,
each year entering upon new fields of enterprise and endeavor, and adding new departments
for the simpler and safer administration of the
men. It is also true, as Mr. Stellwagen
urged, that notwithstanding the rapid advance
affairs of
in heretofore untried fields of corporate develop-
ment and the absence
in
many
cases of protec-
tive provisions, the record of trust
companies for
and integrity in management has on the whole been good and clean
and their immunity from disaster and scandal is
rightfully a matter for pride and satisfaction.
As showing, moreover, the principles and spirit
stability,
Mr. Ridgely says that after a careful study of
the cases which have come under his observa-
naturally, in
conservatism
controlling those in charge of the affairs of these
we may refer to the
made by Mr. Edwin A. Potter,
institutions,
terse declaration
of the
American
&
prevent them, but they cannot be surely and in
every case prevented by any practical means out-
Savings Bank of Chicago, to the effect
that there is no theory about administering affairs of trust companies other than that which
namely, adminisapplies in every business
side of the bank.
tering
He
equally convinced, however, that with
careful and efficient work on the part of the examiner, aided by intelligent and thorough letters
of criticism based on the examiner's reports, any
is
board of bank directors of fair intelligence, with
an honest desire to obey the law, can, by cooperating with the examiner and the Comptroller,
make
the failure of their bank practically,
if
not absolutely, impossible.
Even if the whole
board, or a majority of it, are not doing their
duty in this respect, a respectable minority, or
even one or two determined and honest men, can,
if they will, secure for their shareholders
and
creditors this protection to which they are entitled.
With the view to rendering it certain
that the Directors of a bank are not left in ignorance of faults of management when discovered,
a
new practice
troller's
has been inaugurated in the Compdepartment, as our readers know. Un-
der the
new system
every letter which contains
any serious criticisms at all closes with a paragraph requesting the Directors to join in a letter
saying they have received the letter from the
Trust
—
them upon the broad, deep
conversatism, honor and
The papers
principles of
integrity.
read before the Trust
Company
Section dealt entirely with matters in which trust
Mr. Edcompanies are especially interested.
ward T. Perine, of the Audit Company of New
York, presented a mass of statistics with reference to the growth and present status of trust
companies in the United States statistics at
once useful and interesting, and which served
to reveal in a graphic way the wonderful growth
and development this class of institutions has enjoyed in recent years.
Mr. Phillips, Secretary
of the Lincoln Trust Company of this city, set
out the purposes and scope of the recently-organized Banking Publicity Association of the United
States.
Mr. Phillips possesses much skill as a
writer, and his paper reveals that fact.
He points out that a bank or a trust company
needs depositors, customers, clients, patrons, or
whatever they may be termed, in the same degree as any other business, and of all means of
procuring business the most effective is pub-
—
licity.
He
uses the
word
in
the
modern
sense,
BANKERS' CONVENTION.
that of
making public the merits
77
of an article with
E. Anderson, the Vice-President of the Mercan-
view to creating for it a market. The purpose
of the proposed Association is to promote Banking and Trust Company publicity to the end that
the institutions included may promote their business.
While something has been done in the
way of publicity for publicity is accomplished
in divers ways, as by a handsome edifice, reputation for courtesy, a favorable report in the community he thought that few banking concerns
have fully availed themselves of the supreme
methods of publicity printers' ink, both in the
form of the newspaper advertisement and advertising literature.
The most successful publicity
of this kind, he urged, is based upon education.
The public is being daily educated to buy this
and that brand of breakfast food, shoes, soaps,
tooth powder; it is being educated to travel and
Trust Company of St. Louis, showed the advantages that accrue from having a real estate
department. In the management of estates for
widows and orphans it frequently happens that
the largest portion of such estates consists of real
a
—
—
—
care for
health by recreative sports
its
;
it
is
be-
ing instructed commercially, morally, politically
by advertising
publicity.
Why
shall
it
not, there-
be liberally educated to the discriminating
purchase of the commodities offered by financial
fore,
institutions
—to
the use of the facilities of the
banks and the services of the trust companies?
Hence, the primary object of the Association is
the systematic education of the public to the
discriminating use of these institutions, and to
inform
it
It is
of the particular
advantages of each.
hoped to accomplish these ends
in part
by the interchange
of ideas, information and
methods of publicity. It is proposed further to
have local or district headquarters in each of the
large cities, with a manager whose duty it shall
be to keep in touch by correspondence with members throughout his district; to procure from
them such
tile
ment with
its
it
is
that the real estate depart-
experienced corps of appraisers,
salesmen and rent collectors becomes an exceedingly useful adjunct, obviating the necessity of
seeking outside assistance in the management of
the real property belonging to such an estate.
Through the real estate department, also, it is
possible for the trust department in most cases
to secure the
gues,
management
also benefitted in
is
—
outlet for a surplus of idle cash
depositors.
It is interesting to
»»
THE SAVINGS BANK SECTION.
This newest department of the Bankers' Asso-
is
In his paper "
Department
to a
The
Benefit of a Real Estate
Trust Company," Mr. Lorenzo
note that in the
—
may
vidual.
And
Mr. Anderson's own company the real
estate department is operated as a separate and
distinct branch
that is, it pays for all its own
advertising, pays the salaries of the officers of
the trust company who have charge of the department, as well as of all the employees connected with the department, and defrays all the
other expenses incurred in the conduct of the
department. It also makes a monthly statement
to the company, at the same time turning over
to it the net results of the month's business.
by those instrumental
Those favoring this Association must, of course,
be of the mind that this interchange will not be
the giving of something for nothing, but a quid
pro quo, and that what in this instance, is to the
benefit of all must be to the benefit of the indi-
on hand.
case of
let-
;
the real
through the medium of the real estate department the financial department often secures new
ters as may be obtainable, together with such
statement, comment, remark or information as
prove useful for the guidance of members of
the Association; each manager to be required to
send to the Secretary one or more copies of all
such literature, letters, etc., received by him requests for information or specimens of such literature, etc., from member institutions to be
addressed to the Secretary, and to be answered
and, if possible, granted by that officer.
It is pointed out that there has been some
misapprehension of the exact purport of the
plan.
It is not asked that members shall give
up any trade secrets or private matters pertaining to the conduct of their business, but merely
that they shall look at the plan in a broad way,
and part with such of their printed matter, etc.,
as they believe will be useful for the purpose.
many ways by
ar-
department for instance, in furnishing
estate loans on a conservative basis as an
estate
real
The
of such estate.
department of a trust company, he
financial
literature, business forms, advertising
matter, samples of soliciting and advertising
Then
estate.
ciation
is
justifying
all
the claims
in calling
it
made
for
into being.
it
It
a natural auxiliary of the parent body, com-
prising a class of institutions which while pos-
sessing none of the characteristics of mercantile
banks yet form a related part of our general
banking system, made up of banks of loans and
discount, of trust companies (which latter are
assuming many of the functions of mercantile
banks) and of savings institutions.
The propriety of joining these three classes of institutions
together in a
common
organization will
appear when it is recalled that though here in
the East the savings banks exist as separate institutions, in other parts of the country it is not
unusual to see the field which they occupy covered by the ordinary commercial banks through
the organization of savings departments, the
banking and savings functions being thus combined.
the
Though owning to only three years of life,
Savings Bank Section has attained a degree
and strength that reflects great credit
on those in immediate charge of it.c affairs, and
particularly upon the Secretary, Mr. Hanhart,
who has been tireless in his efforts on behalf of
of vigor
BANKERS' CONVENTION.
78
new department. As was well said by Colonel
Sprague, the retiring Chairman of the Savings
Bank Section, in his speech before the general
Convention, urging representation on the Exthis
American Bankers' Assothe Savings Bank Section, the work of
ecutive Council of the
ciation for
that Section has been as aggressive as that of
any other portion of the Bankers' Association.
During the year the Section added 118 to the
membership of the general Association through
the additions to its own membership, which was
reported at the Convention as 734, against 616
Since the date of the annual meet-
a year ago.
ing,
we
learn, 12
more savings
institutions
Bank Section to 746.
Colonel Sprague also made a telling point
when he said that except for the work of the
Savings Bank Section in securing new members
the Association would actually have had a shrinkage in its membership. The statement is entirely
correct, for the net addition to the number of
members in the Bankers' Association during the
year was 114, against a contribution of new members from the Savings Bank Section of 118. Had
of the Savings
Colonel Sprague decided to push his request for
representation on the Executive Council for the
Savings Bank Section, the Convention would
doubtless have sustained him.
either practicable or desirable.
But he merely
The matter was
discussed quite at length on the floor, taking up
a large part of the time of the Convention, but
only to emphasize that there was great diver-
gence of views as to the best course to pursue. A
new committee was finally appointed to take in
hand the matter of joint and trust accounts.
This committee will endeavor to gather information as to the methods in force in the different
States, and perhaps in this way arrive at
solution of the perplexing question.
The
have
joined the Association, raising the total of the
membership
they do not consider that general legislation regulating joint accounts in Savings Bank would be
some
subject of securing periodic reports of
deposits and withdrawals from the savings institutions throughout the country was also debated
The
each member
at length at the meeting.
cussion
was
that
result of the dis-
of the Section
on the 31st of December next a report of the total savings deposits
and withdrawals
1904 and 1905, also
the rate of interest paid and the total amount due
depositors and perhaps further information as
for
1903,
may
be decided upon by the Executive CommitIn reply to a question Secretary Hanhart
stated that the Savings Bank Section represents
about $2,250,000,000 of deposits out of the $3,000,tee.
000,000 which the Comptroller of the Currency
reported as the total of savings deposits in the
desired to bring the matter to the attention of
whole United
the assembled delegates and having accomplished
teresting or valuable, and not too expensive,
his
purpose
of the
in that respect
he withdrew the
nominee suggested on behalf
name
of the Sav-
Bank Section.
The Savings Bank Section, of course, in
discussions and work confines itself entirely
matters coming directly within the province
ings
savings institutions.
One
of the important
mittee reports the present year
was
its
is
to forward, as a beginning,
States.
If
these reports prove init
probable that later on returns as to deposits
and withdrawals will be called for semi-annually
or quarterly, or perhaps, as was first suggested,
is
monthly.
It
is
thought that such returns will
and
to
afford an indication of the course of business
of
the welfare of the population, reflecting periods
com-
that dealing
with two-name accounts. Joint accounts in Savings Banks are very common, and to the layman
it would seem that the position of the bank with
reference to such accounts must be perfectly secure. Yet there have been diverse legal decisions
in the different States with reference to certain
questions arising in connection with such accounts.
Accordingly, not a little anxiety has
grown up regarding the matter among Savings
Bank officials, and hence the occasion for the
present report. The committee making the report was appointed in pursuance to a resolution
adopted at last year's meeting of the Savings
Bank Section, and its function was to consider
the question of a form of uniform law regulating
the accounts of depositors opened in two names.
It is noteworthy that the committee, after
due consideration and deliberation, advised that
of prosperity
or periods of depression, as the
may be.
An interesting
case
feature of the
work
of the Sav-
ings Bank Section, as disclosed at the meeting in
Washington, was the display of Printed Forms
which had been collected during preceding
months.
They were on exhibition from Monday morning until Friday night and attracted a
great deal of attention and called forth much
There was also exhibited
favorable comment.
a copy of the first savings bank account opened
This was received from
in the United States.
the Philadelphia Saving Fund Society, the oldThe acest Savings Bank in the United States.
count shows a deposit of $5, December 2, 1816,
and another deposit of $5, April 21, 1817, with a
credit of 40 cents interest January 1, 1818; 48
cents January I, 1819, and 12 cents March 31,
1819, when the whole account, now amounting
to $11,
was drawn
out.
....
...
index to advertisements.
Page.
albany,
n. y.
Central Trust Co. of Illinois
National Commercial Bank ....
59
National Exchange Bank
59
Union Trust Company
59
Bank Inside Back
Chicago Savings Bank
Commercial National Bank
Chicago Nat.
Devitt, Tremble
Fourth National Bank
35
Cover
ihd.
& Merchants'
tional Bank
Farmers'
47
..
& Co
Middendorf, Williams
& Co ...
National Mechanics' Bank....
land
& Co
43
Bank
14
& Savings Bank.
Goodell (R. H.) & Co
Hamilton National Bank
Hathaway (Chas.) & Co
National Union Bank of Mart13
45
168
First National
16
50
First Trust
Jackson Trust & Savings Bank
46
MacDonald, McCoy & Co
Bank
BOSTON, MASS.
American Loan & Trust Co.
.
63
.
Baker, Ayling & Co
64
Boston Safe Deposit & Trust
Co.
estabrook & co
Gay
& Co
63
Kidder, Peabody & Co
132
Lee, Higginson & Co
3
Mackay & Co
10
Mason, Lewis & Co
48
Old Colony Trust Company
61
Poor (H. W.) & Co
63
Read (Wm. A.) & Co
1
Rollins (E. H.) & Sons
49
Tucker, Anthony & Co
62
Webster & Atlas National
(E. H.)
62
brooklyn,
71
Hamilton Trust Company
23
Long Island Loan & Trust Co.
23
42
& Sons
Russell (J. B.) & Co
Western Bank Note & Engrav-
49
ing Co
Western Trust & Savings Bank
34
40
& Sons
40
Bank
53
53
& Sons
49
Bank
165
Union Trust Co
chicago, ill.
165
grand rapids, mich.
American Guaranty Company.
.
Grand Rapids National Bank.
Inside Front Cover
Audit Company of Illinois
Audit Company of
Becker
(A. G.)
New
& Co
York.
167
.
Bank
of Commerce
69
48
.
Co.
.
35
National Bank of Commerce... 147
Northwestern National Bank.
Security
Bank
of Minnesota
.
.
.
52
.
141
Bank
People's
32
MONTGOMERY, ALA.
Bank
&
Bank
Mee.
Old National Bank
166
hartford, conn.
58
Nat.
32
montreal, canada.
Bank of British North America
Bank of Montreal
Gay (E. H.) & Co
Merchants' Bank of Canada ....
Sovereign Bank of Canada
.
56
54
63
60
56
N. J.
Morristown Trust Co
12
nashville, tenn.
Bank
NEWARK,
166
166
32
Planters —Farley
First National
Michigan Trust Co
Hartford National Bank
& Trust
MINNEAPOLIS, MINN.
51
American Trust & Savings Bank
32
memphis, tenn.
MORRISTOWN,
detroit, mich.
State Savings
American National Bank-
45
cleveland, ohio.
J.)
louisville, ky.
First National
Cleveland Trust Co
56
mobile, ala.
cincinnati, ohio.
Bank
.
52
39
Rollins (E. H.)
23
Bank cf British North America
66
Northern Trust Co
International Trust Co
Company
LONDON, ENG.
Back Cover
Rollins (E. H.)
34
Union Discount Co
45
First National
Franklin Trust Company
City National
65
denver, col.
71
knoxville, tenn.
National Discount Co
National LrvE Stock Bank
Hayes (W.
41
48
& Co
8
McKeand (W. B.) & Co
167
Merchants' Loan & Trust Co.
43
Middleton (J. W.) & Co
48
National Bank of the Republic
Fifth National
41
64
n. y.
Brooklyn Trust Company
People's Trust
W
Inside
Bank
National Bank of Commerce. ...
(T. A.)
64
62
Bank
167
Mason, Lewis & Co
33
First National
CITY, MO.
34
15
First National
KANSAS
22
Knoxville Banking Co
Stein Bros
McIntyre
Commercial Trust Co
49
64
33
N. J.
34
International Exchange "...
Co
CITY,
166
Bank
Holston National Bank
49
"
Birmingham Trust & Savings
JERSEY
Bank
46
13
Margraff, Anthony
Capital National
50
.
Safe Deposit & Trust Co
birmingham, ala.
indianapolis, ind.
167
15
39
44
Equitable Trust Co
Eversz
Na-
Whiting Paper Co
45
Drovers' Deposit National Bank
baltimore,
holyoke, mass.
46
.
Continental National Bank.
atlanta, ga.
Page.
Page.
35
N. J.
Fidelity Trust Co
new
70
orleans, la.
Hellwege (Peter) & Co
33
Newman
33
(Isidore)
& Sons
.
..
.
..
INDEX TO ADVERTISEMENTS.— Continued.
80
Page.
Page.
new york
Audit Co. of
New York
G9
Bankers' Trust Co
71
Bank of British North America
Bank of Montreal
Baring, Magoun & Co
Barney (Charles D.) & Co
Brown
.
& Co
Canadian Bank of Commerce. ...
Case
Bros.
Law
54
& Trust Co
Fisk (Harvey) & Sons
Fisk & Robinson
Fourth National Bank
6
126
71
Franklin Trust Co
Gallatin National Bank
163
& Co
63
Guaranty Trust Co
*
12
Halsey (N. W.) & Co
25
Hanover National Bank
Hathaway (Chas.) & Co
11
49
Hodenpyl, Walbridge & Co
26
9
New York Trust Co
Oliphant
(
J.
Bank
Oriental
Plymptom, Gardiner & Co
A.)
(
Co
Knickerbocker Trust Co
20
Norfolk National Bank
Latham, Alexander & Co
18
Bank
Lincoln National Bank
Lybrand. Ross Bros. & Montgom-
18
& Co
Maitland, CoprELL & Co
Market & Fulton National
(T. A.)
Bank
Mechanics' National
Bank
Citizens'
of Commerce.
.
of Pittsburgh
31
29
Hill (George B.) & Co
165
Mellon National Bank
30
Whitney, Stephenson & Co
providence,
r.
165
i.
American National Bank
60
Merchants' National Bank
60
richmond, va.
Scott
& Stringfellow
16
rochester,
n. y.
German-American Bank
58
st. louis, mo.
Mechanics'- American National
Bank
41
Mercantile Trust Co
37
Mississippi Valley Trust Co..
.
36
17
National Bank of Commerce.
.
168
17
Third National
Bank
41
san francisco, cal.
17
Canadian Bank of Commerce.
.
Rollins (E. H.) & Sons
Bank
of
Ottawa
57
Audit Company of
10
Barney (Charles
New
York.
.
(E.
23
Farmers'
98
tional
D.)
W.) & Co
69
24
38
29
27
Merchants' Bank of Canada
Gay
(E. II.)
& Co
Girard National
Bank
57
Canadian Bank of Commerce.
Bank of Canada
Standard Bank of Canada
Wood, Gundy & Co
56
Sovereign
Utica Trust & Deposit Co
G3
Johnson (Lewis) & Co
Girard Trust Co.. .Inside Front Cover
19
Graham & Co
28
National
zens'
53
Bank
58
d. c.
Metropolitan
Riggs National
57
N. Y.
washington,
69
55
57
28
1G3
.
Dominion Bank
UTICA,
28
49
of Toronto
and Mechanics' Na-
Bank
55
toronto, canada.
Bank
& Co
Brown (Lawrence E.) & Co
Central National Bank
Clark
Merchants' Exchange National
38
25
ottawa, ont.
38
60
E
16
philadelphia, pa.
70
89
pittsburgh, pa.
25
8
J.
& Co
B.)
National Bank of Virginia
norfolk, va.
Fourth Street National Bank.
Merchants' National Bank
Sterrett,
27
38
162
Mercantile National Bank.... 144
Bank
Morgan & Co
26
39
Winslow, Lanier & Co
27
67
Whiting Paper Co
24
McIntyre
89
21
Bank
National Bank
Mackay & Co
20
Washington Trust Co
24
ery
Ross,
52
69
& Co
Knauth, Naciiod & Kuhne
Liberty National
1
.
Real Estate Trust Co
Carothers (James) & Co
United States Trust Co
20
(R. J.)
29
Bank
22
Kidder (A. M.) & Co
Kimball
Philadelphia National Bank.
19
63
& Co
Russell J. B.) & Co
Seaboard National Bank
Smith (Edward B.) & Co
Speyer & Co
Stephens (T. W.) & Co
Sterrett, J. E
Sweet (Edward) & Co
United States Mortgage & Trust
Read (Wm.
27
26
7
Poor (H. W.) & Co
38
Market Street National Bank.
5
& Co
H.)
Ross Bros. & Mont-
Smith (Edward
Insurance &
Life
20
1
25
163
Bank
Kean, Van Cortlandt & Co
Irving National
gomery
19
Trust Co
4
back cover
ica
2
72
Lybrand,
National Bank of North Amer-
New Tork
55
68
Mutual Alliance Trust Co....
24
21
Farmers' Loan
& Co.Outside
(J.P.)
National Park Bank
24
Colonial Trust Co
Morgan
68
163
Clement & Smith
(E. H.)
5(3
38
Publishing Co
Chase National Bank
Gay
& Hagan
Millett, Roe
city.
Page.
15
Citi-
14
Bank
14
BANKING SECTION
American Bankers' Association.
Annual Convention, Held
31st
at
U,
Washington, October JO,
J
2, 13,
J
Pages 103
to
905
INDEX TO CONVENTION PROCEEDINGS.
Trade Expansion, by Leslie M. Shaw
Bank Examination, by Wm. B. Ridgely
Scotch Bank System, by Robert Blyth
Our Commerce, by R. D. Goulder
The Situation, by F. A. Vanderlip
Benefits of Association, by Walker Hill,
Detailed Report of Proceedings
Addresses of
Welcome
-
-
-
-
-
President E. F. Swinney's Address
Pages 81 to 84
Pages 84 to 86
Pages 87 to 89
Pages 90 to 93
Pages 94 to 96
Pages 97 to 98
Pages 99 to 126
Pages 99 to 101
Pages 101 to 103
Annual Report of the Secretary
Annual Report of the TreasurerReport
of Executive Council Report of Protective Committee
Report of Committee on Uniform
-
Laws
Report of Committee on Education Report of Currency Committee Report of Committee on Cipher Code
Report
of
104
Page
104
Pages
Pages
Pages
Pages
Pages
106 to 112
104 to 105
105 to 106
112 to 116
116 to 117
Page 117
Page 123
Auditing Committee
Trade Expansion
By Leslie M. Shaw,
The nations
of
earth
sell
to
Secretary of the United States Treasury.
each other $10,000,-
000,000 worth of merchandise per annum, one-eighth of
which originates in the United States, and one-ninth of
this grand aggregate finds our ports for ultimate con-
Within the last half century the United
States has not only assumed importance among commercial countries, but in the last decade she has become the greatest commercial nation of the world. Not
only do her exports exceed those of any other country,
but her domestic commerce is two and one-half times as
sumption.
large as the aggregate international
round earth. While the eighty and
commerce of the
more commercial
countries are selling, the one to the other, merchandise
worth $10,000,000,000, the American people sell to each
other merchandise worth practically $25,000,000,000.
These stupendous and incomprehensible figures make
some of us proud, some arrogant. They should make us
and prevent any of us from becoming
all thoughtful
recklessly critical.
We
and
point with pride to our export trade of a billion
and with our thumbs in the armholes of our
a half,
and
and
waistcoats
we contemplate our
our ability
doned if I
very large
bankers or
Will I be paras international merchants.
suggest that this export trade is due in no
skill
foresight
degree to our skill either as international
as international merchants?
We grow three-fourths of the cotton of the world,
and there being no other limitless supply the world
comes
its
to us for
own
it.
It
comes willingly and
it
comes
in
ships.
The world never has
six months' food in store.
If
harvests should cease to follow seedtime for six months
Again, the United States is
the world would starve.
yield largely in excess
annually
for
farms
fortunate,
her
of
what eighty million people can consume, and, as
in
the days of Joseph, a starving world goes to Egypt, or
to the United States, or wherever there is an excess of
corn or other food, and now, as then, it provides its own
conveyances.
It requires no international merchant to
sell raw cotton to countries which grow none, or food
products to people who produce less than they consume.
We produce 400,000 tons of copper per annum more
—
than half of the world's aggregate. Of this we consume
somewhat over 200,000 tons and export nearly as much.
This being the source of greatest supply, the world
again comes for our surplus, and comes in its own ships.
It requires no international merchant to sell copper.
We produce 73 per cent, of the world's supply of refined petroleum.
It would seem to require neither an
international merchant nor a merchant marine to market our surplus petroleum. The Standard Oil Company,
however, in its international business has found it convenient to provide ships.
Of our aggregate exports about $1,000,000,000 consists of raw cotton, food products, petroleum products,
crude copper, lumber and other raw materials and
crude articles, of which we produce a surplus, which the
world not only needs but must have.
The time is coming, gentlemen with our increasing
population more largely urfcan than ever, with factories
multiplying more rapidly than farms, with limitless manufacturing resources and matchless aptitude for production when the United States will need new and important markets.
The world may come to us in its
own ships for the products of our farms and the raw
products of our mines, but it will not come in its own
ships for the finished products of our factories.
The
time is coming when we will need international bankers
and international merchants and an international merchant marine.
I am well aware that this is not supposed to be a
popular theme, but I did not accept your courteous invitation for the purpose of discussing subjects on which
all good men agree.
I accepted for the purpose of bringing to your consideration questions which public speakers
usually avoid, to the end that you may think them over,
talk them over by your firesides and in your places of
business, in the hope that we may some *ime, and as
soon as possible, agree upon some course, some policy,
that will restore our flag to her deserved place on the
seas and give to American enterprise its share of the
carrying trade of the world.
I am well aware that there are some, and they are
not confined to any one party or to any one locality—
—
—
BANKERS' CONVENTION.
82
they are prominent in both parties and are found on the
shores of New England and on the prairies west of the
Mississippi who urge that we need do nothing more than
gracefully surrender a portion of our $25,000,000,000 of
domestic commerce and then, by a logic which I do not
understand, we will get so much larger share of the
—
world's $10,000,000,000 export trade as to fully compensate ourselves, and that in addition we will make the
world happy. I quite agree with them that it would
make our competitors happy. But I will not discuss
I desire to confine my remarks to the
that question.
importance of a merchant marine.
Over one hundred years ago Congress passed an act
giving to the American shipbuilder and the American
Since
shipowner a monopoly of our coastwise trade.
then political parties have passed into forgetfulness
and others have come and gone. Administrations have
changed again and again, but that old law remains inIt has been often assailed, but no party has dared
tact.
It therefore has the stamp of nonpartisan
it.
repeal
to
approval. As a result we have the largest and cheapest
coastwise trade in the world. The Detroit River floats
more tons of American freight than all the foreign com-
merce that enters London, Liverpool and New York
City combined, and under every ton is a ship built of
American materials, by American workmen, owned by
American capital, operated by American enterprise, and
This
over every pound floats the Stars and Stripes.
statesmanmeasure
of
some
possessed
certainly
country
ship in the days of James Madison, and wisdom did not
die with the fathers or the law ere this would have
been repealed.
Practically a half century ago the present minority
and the present majority party
party inaugurated,
adopted, a policy of liberality to the promoter. It gave
subsidies of money, or subsidies of land, or both money
land, to encourage the construction of trans-State and
transcontinental railways. The Union Pacific, the Southern Pacific, and the Northern Pacific railroads each re-
and
ceived Government aid. These roads opened an empire
of matchless resources, and here our ever-increasing
population found ample room and abundant opportunity.
mines and builded
They improved
States yielding a commerce which has made these roads
in turn self-supporting, so that no country, State or the
General Government longer grants aid to new roads.
We not only have the largest and best railroad system
developed
farms,
world but the cheapest rates in the world.
Not only has the General Government subsidized
domestic commerce by direct appropriations from the
public treasury in aid of railroads, but it annually subsidizes commerce, both domestic and foreign, by large
appropriations for the improvement of rivers and harNo difficulty is ever experienced in passing a
bors.
river and harbor bill if its benefits are sufficiently disin the
tributed.
The Government
is
now
but also the amount of
enlarging not only the scope
bounty.
It has paid fifty
its
millions for the right to dig a ditch in aid of internacommerce, and proposes to pay two hundred mil-
tional
lions more, or five
in the
hundreds millions more,
construction
of that
millions in its maintenance,
necessary, in
defense.
its
if
international
and no end of
Then
necessary.
ditch,
other
millions, if
after all this outlay
we
are under contract to grant its use, for all time, to all
the world, on the same terms as to the people of the
United States.
At
first
blush one might expect partisan
But so
opposition instead of nonpartisan co-operation.
enterprise,
so
abundantly
the
able is
wise
is
manifestly
the Government to bear the expense, and so many are
the advantages to be derived therefrom, that throughout
the length and breadth of the nation no voice is heard
against
it.
necessary to glance at the map before
you appreciate that it is about the same distance from
the principal ports of Europe to San Francisco via Cape
You may
find
it
Horn
as from
New York
to the
same
port.
It is also
about the same distance from the principal ports of
Europe to San Francisco via the Suez Canal as from
New York to the same destination via the Straits of
Magellan. Cut the Isthmian Canal and it will be about
same distance from New York to Hongkong via
as from Liverpool to Hongkong via Suez. The
completion of the canal will move the line of equal distance from the eastern to the western shore of the Pacific.
Have no fear, brethren, we will get the worth of
the
Panama
our money, provided
we
place ourselves in position to
get our share of the use of the canal.
The markets of South America, South Africa and the
adjacent islands are just being developed. The eyes of
the world are upon them.
The merchant nations of
Europe know where they are located and they are establishing banks and warehouses within them, and they
have already established regular and fast lines of steamers to them.
The United States has neither banks, nor
commission houses, nor warehouses in these ports, nor
has it means of communication with them, except
through old, worn-out, dilapidated ships, sailing under
making eight or ten knots an hour.
The United States imports a million dollars' worth
foreign flags and
per day of tropical and semitropical products. It sends to
Europe, in excess of everything we receive from Europe,
a million dollars a day in raw materials and food products such as I have described and Europe in turn sends
a million a day to the ports of South America, South
Africa and the islands adjacent. I do not need to tell
you of the great number of ships that sail the triangle.
They start from home with a cargo of finished products
which they leave in those Southern ports, then load with
;
hemp, sisal, mahogany, dye woods and
United States then take a load of our raw
materials, cotton, copper, petroleum and food products,
back to Europe.
I have been many times taken to task for remarks
like these.
I have received letters, for instance, from
certain commercial associations, the principal officers of
which are interested in foreign steamship lines, calling
coffee,
rubber,
fruits for the
;
my attention to the fact that means are at hand for
carrying to these Southern ports all the merchandise that
America sends thither. Gentlemen, I have never taken
the position that what goods we ship to South America
do not ultimately reach those ports. I have sometimes
cm lied attention, however, to the fact that the quickest
way to go to South America, or to send mail to South
America, or to ship freight to South America, and the
most usual way, is to send first to Europe and thence to
the ports of destination.
A large share of our paltry
commerce with those countries does actually go by way
of Europe rather than in these old scows owned by the
men who take the position that because there are ways
in which goods can be sent thence, therefore no occasion
exists for improving the means of communication.
Iowa was dotted with settlements long before railroads tapped the Territory. In those days some grain
was grown, and the little that was grown was hauled
in wagons, frequently a hundred miles and sometimes
more. A few cattle were fattened, and they were driven
sometimes four hundred miles to market. There were
Some hogs were
trails even then, and sometimes roads.
fattened. These were killed, their carcasses frozen and
hauled to market a process which consumed sometimes
weeks and frequently entailed an expense exceeding' the
But in those days Iowa
value of the freight carried.
did not contribute very much either to interstate or to
international commerce.
Not until railroads, encouraged by Government aid, were built did her commerce
—
and not until these became of the best did she
take rank and contribute abundantly.
I am also aware, for my attention has been called
thereto repeatedly by letter, and more frequently still
by editorial comment, that a representative of the Department of Commerce and Labor, sent to South America
multiply,
:
:
:
:
BANKING SECTION.
83
who oppose
for the purpose of investigating this subject, has reported
of those
means of communication between the
United States and South America. I have read his reports, and I beg my critic's pardon, for the distinguished
college professor does not take the position assumed by
the steamship companies, that existing means of com-
merchant marine.
that there are
munication are satisfactory or that they should not be
improved. Permit a few extracts from Professor Hutchinson's report
Suffice it to say that the service from Europe is carried
on by large and fast steamers, thoroughly equipped in every way
for freight, passenger and mail business, running on accurate
schedule time, and giving regular communication between Brazil
and Europe, in each direction, at least six times per month,
while the steamers from the United States are small and slow,
have only inferior accommodation for passengers, and, with the
exception of a single sailing each month, are more or less irregular as to time of departure and arrival.
It is thus often possible
to get much quicker delivery of an order from England or Europe
than from the United States.
After expressing the opinion that this inferiority of
American service does not seriously affect large wholesale dealers in standard grades and sizes of goods, because the cables run independently of the mails, he adds
With smaller dealers and smaller orders, as well as in all
larger orders, where full and specific instructions leave to be
given as to sizes, shapes, weights and grades of goods, the mails
must be used, and I have met with many complaints as to the
inadequacy of the service. I have heard of instances in which
it took twice as long to get such orders from the United States
every means for the creation of a
says
He
As I came south I found conditions much more encouraging,
and here in Rio de Janeiro and in the neighboring State of Sao
Paulo 1 have been deeply impressed with the possibilities which
It is pleasant to note an undercurare awaiting development.
rent of friendliness toward the United States and a seeming
willingness to meet any advances our people may make at least
There is a great field awaiting development if our
half way.
exporters can be made to believe that it is wortih while to em
ploy the right methods.
Does any one doubt that an American line of steamships making regular trips to Rio de Janeiro, the Government paying the loss until the trade is established,
would knock at the door of every factory in the United
States, submit samples of the goods consumed by the
people and beg their production and the privilege of carrying them? In the same report Professor Hutchinson
says:
New lines established
a very considerable time.
now would have
Of
to run at
this there can be
a loss for
no doubt.
In the same trade report in which Professor Hutchan article by A. T.
Wills, who was sent abroad by the New York " Commercial " to inquire into trade conditions, from which I
quote
inson's oft-quoted article appears is
as from Europe.
The Germans are especially aggressive, and many of the
German houses are doing the business we ought to be doing.
If they see that American goods are in demand they get samples
of them, send them home and invite the manufacturers to imi-
In speaking of the flag as a means of advertising, he
says:
they are inferior, and thereby get the
for there is no representative of the
American interests on the spot to defend our goods.
At present our flag is never seen here except on an. occasional
warship, or private yacht, or an out-of-date sailing vessel. The
mass of the people scarcely know that such a country as the
United States exists, and those who do know it, most of them,
have but the dimmest notion of the vast economic activities of
our people. This is a market peculiarly sensitive to notions of
fashion and prestige.
Most of the population, all except the
very few who have traveled in the United States, have exalted
ideas as to the greatness of England, France and Germany, and
the " fashionableness " of using commodities produced in those
There is not the slightest question that these imcountries.
pressions are deepened by visible illustration of the superiority
of European merchant marine in Brazilian ports.
These instances are from the one expert quoted by
the owners of foreign ships and by the press as having
reported that the means of communication with South
America are ample for the amount of commerce that
now
exists.
But suppose that were true, gentlemen. There are
no such agents of commerce as the representatives of
tate the articles, even
trade.
This
is
not
if
difficult,
Does any one doubt that an American line of steamdependent upon the traffic, would see that
our goods were defended? He further says:
ships, in part
Spain has the East India and Egyptian cotton market to draw
upon as well as ours, has good shipping facilities, and, more
important than all this, turns out goods which the Spanishspeaking people all over the world want. It gets the trade, because its manufacturers turn out goods to meet the requirements,
rather than, as we do, try to educate their customers to take
what they produce.
The
reports
are literally full of specific instances
where our manufacturers have refused to change their
patterns to meet the conditions of South American trade,
or where they have abandoned a trade partly established
whenever there has been a local demand sufficient to
keep their factory employed. Does any one doubt that
the representatives of American transportation companies would do much toward correcting these defects?
Possibly some one will say
"Who cares particularly
for the American manufacturer?
It is his business,
not ours." Yes, but it is my business also. I own some
farms in Iowa and I want my tenants to feed the men
who manufacture for these markets. I am selfish. In
fact I am so selfish that I desire every industry under
our flag to prosper, and I hope I am wise enough to know
that no one class of American people ever did prosper
except when all our people prospered. I hope I am wise
enough to know that the prosperity of any one class
means the prosperity of all.
The United States is the owner of the Philippine
Islands, and these possessions, plus the Panama Canal,
plus a merchant marine, would insure to the American
people somewhat more than their present 10 per cent, of
the one thousand millions of trade washed by the shores
:
companies.
Senator
once told
me that his company had a large Australian trade in
marble, but he said it was through no skill or foresight
of the company. A line of steamships had begged that
instead of going back empty after having brought Southern products to the United States, or of going to Europe
for a cargo, they might be permitted to carry some marble to Australia. Thus, through the skill and enterprise
of a foreign transportation company, so large a trade in
marble was established that the company is now compelled to have representatives down there. I have never
heard of any manufactures of cotton goods or of household utensils or of anything else produced in competition with Europe to whom the owners of European
steamship lines have offered any special advice or encouragement.
One great difficulty in getting a foothold in these
markets is to get our producers interested in the subject.
For this purpose the Government goes to great expense
in getting consular reports on conditions in these foreign ports.
These reports are regularly published in
pamphlet form for general distribution. Quantities of
them go to Europe, however, and are furnished, not as
we furnish them, to whomever asks them, but they are
sent direct to the concerns engaged in the trade at
the ports whence the report is made. These reports are
full of statements to this effect.
I quote again from
Professor Hutchinson, he being the principal authority
transportation
Proctor
of the Pacific.
We occupy the best position on the map. We have
the safest and the most convenient form of money in
the world. We speak the language of commerce. Our
farms produce more than the farms of any other counOur mines yield gold literally by the carload, silver by the trainload, and there is unloaded on the
try.
snores of a single Commonwealth more iron ore than any
other country produces. Our forests yield one hundred
million feet of lumber for every day of the calendar
Our factories turn out more finished products
year.
than all the factories of Great Britain and Germany
combined by more than three thousand millions every
BANKERS' CONVENTION.
84
We
twelve months.
transport this matchless product
and mine, from the interior
to the sea at one-third what similar services cost anywhere else beneath the skies. We carry it from point
to point along the coast in better vessels, on quicker time,
and at cheaper rates than others. But at our coast line
we are brought to an abrupt halt. Here we are no longer
independent.
Our foreign commerce is four times as
large as forty years ago, but we carry in our own ships
only one-third as many gross tons as forty years ago.
farm and
of
We
factory, forest
our merchant marine, and every protected interest has
flourished.
We have every facility for international
commerce except international merchants, international
bankers and an international merchant marine. Shall
we not have these? I am not urging ship subsidies. I
am speaking of results, not of methods. If we will but
take advantage of our opportunities we will send these
products of farm and factory under every sky and into
every port, and make our financial centers the clearing
houses of at least a fraction of the world's trade.
have protected and encouraged every interest but
Bank Rxamination and
By William Barret
Ridgely, United States Comptroller of Currency.
After a careful study of the cases which have come
under my observation during the past four years, I am
firmly convinced that no system of bank examination or
supervision from the outside of the bank can absolutely
prevent fraudulent bank failures.
The more thorough
and efficient the supervision, the more surely and quickly
frauds will be discovered and the mere fear of detection
will tend to prevent them, but they cannot be surely and
in every case prevented by any practical means outside
of the bank.
I am also equally convinced by the same experience
that with careful and efficient work on the part of the
examiner, aided by intelligent and thorough letters of
criticism based on the examiner's reports, any board of
bank directors of fair intelligence, with an honest desire
to obey the law, can, by co-operating with the examiner
and the Comptroller, make the failure of their bank practically, if not absolutely, impossible.
Even if the whole
board, or a majority of it, are not doing their duty in
this respect, a respectable minority, or even one or two
determined and honest men can, if they will, secure for
their shareholders and creditors this protection to which
they are entitled.
I am sure that in this direction the co-operation between the directors of a bank and the supervising authority lies the best hope of decided and permanent improvement in the supervision of banks and the reduction of
bank failures
No
management
it
is
The
best
it
can do
is
some extent prevent illegal
discovery and punishment. If bank
fear of their
to
can
examiner and Comptroller's
from some
do, unless they get honest assistance
officer or director inside
the bank.
An examiner always works under one great and unavoidable disadvantage. He can do little or nothing until
after the
the
law has been violated and much,
harm
is
done.
If
the
trouble
is
if
a
not
all,
bad,
of
ex-
or fraudulent loan, it has been made behe can act.
If there is a
shortage in the
cash, through a defalcation or robbery, the money
is
gone before he can know it, and often with
little or no chance for its recovery.
A good examiner
does his whole duty in the discovery of such a case.
It is not reasonable to ask him to prevent it.
Only so
cessive
fore
far as the fear of discovery deters bank officers from
fraudulent acts can any supervision, short of frequent
and complete auditing, prevent their occurrence.
A bank does not often fail suddenly. The condition
which leads to it is apt to be of comparatively slow
growth.
Far the most frequent cause of failure is a
large line of loans to some concern or group of concerns
in which the officers are interested, or to the officers
themselves.
When
the loans are
new they
look all right,
and frequently are good.
But if things go wrong and
venture loses money, the loans begin to
increase, and soon good money begins to go after bad
with the inevitable result. It is surprising to see in how
this
outside
officers
to hide
to discover
acts of dishonesty or bad errors of judgment, after they
have occurred, and
office
acts by
of a bank, or take the place of either
lacking.
in spite of everything the
few cases men who may have been heretofore honest
and square, have the honesty and moral courage to face
the failure of their bank when due to bad judgment or
incompetency, without resorting to frauds of some kind.
It is extremely rare to find a bank has failed without
some of the officers committing fraudulent or illegal acts
minimum.
outside supervision can supply honesty or brains
for the
when
to a
Supervision,
are honestly and in good faith doing their best, though
with bad judgment and without ability, the advice of an
examiner may often be of great assistance in judging of
credits and preventing the increase of loans on weak
lines, and the restrictions of any good banking law are
of incalculable value to well-moaning though weak or incompetent management. In most banks there is an honest desire to comply with the law and conduct the business safely, and legal restrictions have saved many such
banks from trouble, if not failure. When, however, the
officers of a bank are reckless, incompetent or dishonest,
and sometimes they are all of these, the bank is in great
danger of failure, in spite of any supervision which can
be given it from the outside. In some such cases, an appeal to the directors may result in a change of officers
and policy in time to save a bank, and I have known one
good strong man to conduct a campaign almost alone
among the stockholders, convince them he was right, and
save a bank which had been brought very near to failure.
It is generally the case, however, when one bad man,
or a bad crowd, get possession of a bank, and have large
ownership of its stock, it sooner or later comes to grief
it.
Every examiner, however, has many cases to report
which are taken up and corrected, sometimes after they
have become very bad. There are a great many such
cases where a bank gets into more or less serious trouble
and yet is saved, where one goes on to failure. I believe
there is seldom a day in the Comptroller's office when we
do not have pending a case of a bank which is found, not
necessarily from frauds or always violations of law, but
from bad banking, in a condition which, if allowed to go
on, would lead to serious trouble, but which we are able
to have corrected on the examiner's report and advice.
We always have a list of those we are watching, and
a very large percentage come out all right. They almost
invariably do when the management is honest, and tell
us the truth. It is very hard to tell when the bank is beyond hope and really is insolvent. The hard cases are
where the officers are dishonest and untruthful and per-
kinds of frauds to conceal the condition. A
common device is to put forged notes into the bank,
ostensibly signed by people of good credit.
Another is
petrate
all
and deliver to customers notes which
have been paid, and to keep them in the bills receivable.
to fail to cancel
BANKING SECTION.
One can
readily see
cover sucb frauds,
bow bard it is for an examiner to diswben tbey are perpetrated by shrewd
scoundrels wbo bave every advantage of being in tbe
bank all the time, while the examiner comes only twice
a year.
After a bank fails and disclosures of dishonesty are
made, it is wondered why such things could go on undiscovered so long. The examiner is blamed and abused,
In some cases he
with or without reason.
to blame, but in those which I have
is
very
much
had occasion
to
found to
be true. It must be remembered that these frauds and
deceptions are, in most instances, being carried on by
men of unusual ability men who stand very high among
investigate, this has not very frequently been
—
their neighbors, not only in business, but also in social,
religious
and
political matters.
Almost invariably they
deceive the whole community, their business associates,
their friends, and even their families. It is frequently an
astounding revelation to all of these, that the banker who
has failed, defaulted and perhaps absconded, or killed
himself, is not a man of wealth as well as the ideal of
honor and business integrity. It is only men who establish such reputations that have the opportuuity to betray
large trusts, and of these, only those with skill and
shrewdness, and the peculiar courage it takes to face
unflinchingly such situations, can carry them on for any
length of time without discovery.
However his suspi-
may
be aroused, the examiner is, as I have said,
under the great disadvantage of only being able to act
He can discover them,
after the crime is committed.
cions
but he cannot surely prevent such frauds.
Our system of National Bank examination is much the
most extensive which has ever been undertaken by any
country or government, and the experience accumulated
during the forty-two years of its operation covers almost
every conceivable trouble or complication into which
the affairs of a bank may be brought, either by disbonesty, incompetency or neglect. The methods of examination, reports and criticisms based on them have, of
course, been a gradual growth.
In spite of certain defects
and weak
points,
some of them serious and now
needing improvement, it has worked very well. In the
main the examiners have been faithful, competent men,
doing conscientious and good work. The record of the
National Banks in regard to failures is better than any
banks we have ever had in the United States, or those
of any other country, under at all similar conditions.
Of the seven thousand nine hundred and thirty National Banks which have been organized four hundred
and thirty-eight have failed, or five and one-half per
cent, of the whole number as against about seventeen
and one-half per cent, of banks other than National in
the same period. The National Banks which have failed
have paid their creditors over seventy-eight per cent, of
the amount due them, while the other banks have paid
only about forty-five per cent. Of the billions and billions of dollars they have had on deposit, the National
Banks have lost for their creditors in the whole period
of their existence only about thirty million dollars.
These records
favor of the National Banks are
mainly, if not entirely, due to the wise provisions and
restrictions of the National Bank Act and examination
and supervision by the national authority. The examination provided in the Bank Act from the first, and in
this it has never been changed, contemplated the examination of a bank by a single man and, except in the
large cities, only provided such pay for it as would
cover one or two days' fair pay, including expenses.
This is not sufficient examination, no matter how efficient
and careful the examiner, to infallibly detect, much less
prevent fraud and dishonesty. It does detect much of it,
perhaps most of
it
often surprised at
in
—but not by any means
what
is
all.
I
am more
detected by shrewd examiners
and upon what slight clews than at what escapes them.
The weakest feature of the present system of examinations
is
that the examiners are paid by fees instead of
85
I believe every Comptroller of tbe Currency
has advised a change in this system certainly all those
of recent years have done so. The examiners as a whole
are a fine body of men faithful, industrious and attentive to their duty. But unfortunately this is not true of
each individual, and tbe circumstances of their work
being away from the observation of the office makes it
difficult to check them up and see that all the work is
well done. Tbe temptation to slight it is sometimes too
great, and this should be removed as far as possible by
It is not
changing the basis of their remuneration.
reasonable to expect a complete audit of the books of a
bank and the checking up of every department in it for
If one were
a fee of sometimes only twenty dollars.
to employ a professional accountant to do such work, it
would cost many times this amount. This, in a large
bank, is the work of many days or weeks. Perhaps it
is not practicable nor advisable to have such complete
service as this by officers of the government. It is more a
matter for the directors of a bank. It is now being done
salaries.
;
—
very thoroughly by an increasing number of the best
banks, and it is a matter that every Board of Directors
No bank
should give the most careful consideration.
should be without a good system of this kind.
The government can, however, and should by all
means, improve the service by paying the examiners
salaries and greatly increasing their number, so that a
man would have time, and take time, to go into matters
necessary to get at the real condito be paid good salaries
large enough to attract and hold good men. It is one
of the difficulties of the present service that it is hard
as thoroughly as
is
tion of the bank.
The men ought
—
to
Just as an examiner gets to know
and becomes really efficient, he is apt
be hired by some bank looking for an officer. I see no
keep a good man.
his district well,
to
way
to altogether prevent this, but the salaries should be
enough to keep men fit for the service in it. It is easy
enough to get ambitious young men who are thoroughly
competent to go into the service for the experience and
acquaintance it gives them. It is more difficult and more
important to keep them after they have been trained to
the work.
As
I
said in beginning, the direction in which
we can
look for the greatest improvement in bank supervision
in co-operation between the directors of the banks
the supervising authority.
is
and
The government supervision
can and should be improved, both by change in system
and better administration and it can do a great deal to
help the directors to realize their responsibilities and
do their duty. For some months past there has been
a most determined effort on the part of the Comptroller's
office to fix the responsibility of bank management on
the directors of the National Banks, and especially to
see that the directors are properly informed of what the
bank examiners find in the condition of the banks which
calls for criticism and needs correction.
All letters of
criticism from the office are addressed to the president
of the bank, and are generally answered by the president or cashier. Until recently nothing was done to call
these letters to the attention of the directors, except
when there was very serious criticism and a bank was
As a result of the former system,
banks were often found in a very bad condition, without
any effort having been made to advise the Board of Diin a critical condition.
rectors of the facts of the case, and it was a common
complaint from directors that they had never been notified of things going on in the bank about which the
officers had been written repeatedly.
Under the new
system, every letter which contains any serious criticisms at all closes with a paragraph requesting the directors to join in a letter saying they have received the
letter from the Comptroller, and advising the office what
steps will be taken to correct the matters complained of.
During the short time this plan has been tried its good
results are very apparent.
It has resulted in many
Boards of Directors making inquiries into the business
of their institutions and bringing to light transactions
CONVENTION.
BANKERS'
86
of which they would otherwise never have known, although it was not only their right, but their duty, to
know all about them. It has led to some complaint, and
officers of some banks who felt
some measure a reflection not only upon
their management, but upon their character as well.
has been resented by the
that
it
was
in
Careful consideration, however, of the proper relations
which should exist between the directors of a bank and
its executive officers, and especially their legal and moral
responsibility to their shareholders and creditors, should
convince any bank officer who desires to conduct the
business of his bank as he should that this is a measure
looking only to more careful and better administration.
No bank officer who is running his bank properly
should have any fear of his directors, and they have a
right to know in what respects he is subjecting their
business to the criticism of the Comptroller, and, above
I feel that
all, if he has been found violating the law.
this is a most important improvement in the administration of the Comptroller's
office,
and have perfect
confi-
dence that when understood it will meet the approval of
every bank officer who wants to run his bank as it should
be, and every director who accepts the duties and responsibilities which his oath and the Law wisely and properly place
upon him.
am Comptroller, I
evasion, my responsibility
As long as
I
propose to assume, without
and to see, as far as I have power to do so, that the
directors of the National Banks and their officers accept
theirs.
The bank examiner and the Comptroller's
certain duties which they must perform and
have
for which
they are responsible, and it is no excuse for them to put
blame for their failure to do so in any way upon the
directors of the bank.
On
office
the other hand, the directors
have independent duties which they must bear and
which they cannot shift to the examiners. It is no answer to a charge of neglect of these duties to criticise or
complain of the bank examiner. The Bank Act provides
also
the "the affairs of each Association shall be managed
by not less than five directors," and that "each director,
when appointed
will,
or elected, shall take an -oath that he
so far as the duty devolves
upon him, diligently
and honestly administer the affairs of such Association,
and will not knowingly violate, or willingly permit to
be violated, any of the provisions of this title." No man
is fulfilling the obligations assumed in this oath who
accepts an election as director of a bank and then allows
manage all its affairs without really lethim know what is going on in the bank at all, as is
the officers to
ting
too often the case.
The duty
of a bank director, if he would fulfill the obimposed by his oath and protect the interests of
the shareholders for whom he is a trustee, and the creditors, to whom he is under even greater moral obligations, requires that he should know positively that the
affairs of the bank are being properly managed.
Meetings of the directors should be held regularly and frequently, and be well attended by all the members of the
Board. At these meetings the officers should be required
to make full, complete and intelligent reports in such
form and detail as to be easily understood by the directors.
All loans and important transactions should be
reported and passed upon, and especially all notes and
ligation
securities should be submitted for the personal inspection
of the
members
Board who are not active officers.
and directors should be more closely
examined than any others, and the
of the
All loans to officers
scrutinized
amount of
addition
and
their total liabilities clearly understood.
to such exhibitions
as are
made
at
In
regular
meetings, the directors should have frequent thorough
examinations made by committees of the Board, or experts employed for the purpose. These should be made
independently of the active officers of the bank.
Every clerk and every officer of the bank should be
examined and checked up as thoroughly as possible, and
required to show the Examining Committee or auditor
just how the matters in his charge stand. No man who
such an
is in a position of trust has any right to resent
of
appreciation
proper
a
has
who
one
examination, and
reposed trust and
confidence in him will welcome such an opportunity to
show that he has been faithful and efficient. If all the
boards of bank directors would do their full duty in the
the relation he bears to those
who have
bank failures would almost come to
an end. Banks would, of course, make losses, and occathe
sionally one might fail, but it would be rare, and
incapable
result of very unusually bad judgment and
sudden
such
have
seldom
very
would
management. We
inside
the
from
looted
banks,
and sensational failures of
and
communities,
by men who have stood high in their
trustworthieven thought to be models of honesty and
way here
outlined,
ness.
The point I wish to emphasize is that the responsiupon the
bility for bank management is by law placed
a bank
on
place
Board of Directors. By accepting a
board and taking the oath of office, a man accepts this
responsibility and swears he will diligently and honestly
administer the affairs of the Association.
He
is
under
every moral and legal obligation to perform this duty
asking too much
fully and completely. It is certainly not
their
of men who accepts such trusts that they simply do
sworn duty and obey the laws.
This would seem to be a particularly opportune time
plain
directors of the
for a vigorous self-searching among the
in
banks of the country, as well as all other men who are
places of financial trust and responsibility.
Recent disclosures of the most disgraceful betrayal
the use of
of trusts by men in the highest positions and
of
expense
these very positions for private gain at the
have put
those whom it was their sacred duty to protect,
and
country
the
before
trial
American financier on
the
interested in
the world. Not only those who usually are
k"
such matters, but all the people of the country &re aJ
H "If
"If these men are not to be trusted, who is?"
ing
there not be?"
this much is true, how much more must
contest for
the
in
only a natural inquiry whether
:
It is
has
wealth and power the American financial conscience
truth
become deadened and the old ideals of honor and
code.
have given way to a newer
misfortune, that
It is a shame, a disgrace, a national
they
such things could have happened when and where
quarrel
a
did, but it is a great good fortune that through
Unover the spoils the knavery has been discovered.
greatest
the
are
things
such
known, or only suspected,
possidanger, but their discovery and exposure makes it
exposure
the
The more complete
ble to reform them.
of any
the more certain the reform. A director or officer
the same
bank, no matter how small or obscure, holds
which
theirs,
to
held
relation to his trust that these men
here,
man
There is probably not a
differ only in size.
Associacertainly no member of the American Bankers'
in
reposed
trust
some
of
guardian
who is not the
tion,
him by those who thus depend on his honor and fidelity.
We are all responsible in some degree. It is not enough
who have
that we cry out for the punishment of those
faithful
been caught in the act. Our duty lies in the
upThe
us.
upon
resting
discharge of the obligations
banking
the
of
holding of the reputation and character
depends
institutions of the country is in our care and
on each man doing his
full duty.
—
;
BANKING SECTION.
The Scotch System of Banking!'
"
By Robert Blyth, General Manager Union Bank
For the proper understanding of the characteristic
features of the Scotch system of banking a short historical record is almost essential.
It will, in this paper,
be condensed within the narrowest limits.
In the beginning of the eighteenth century, when
Scotchmen had been provided with their first bank, and
had no experience to guide them in its management, the
country was not only poor the population was also small.
It probably did not exceed 1,000,000. The city of Glasgow
had a population of 12,500. Now it is three-fourths of a
;
The trade of the country was insignificant.
Money was scarce it is thought that there was not half
million.
;
a million of coin in the whole country. For the first half
of the eighteenth century poverty and lack of enterprise
on the part of Scotchmen left some of the chief trade in
the hands of foreigners. It was not until after the middle
of the century that Scotch industries were developed and
the national revenue increased.
Merchants who traded in many kinds of goods sometimes traded also in money they took it on deposit in limited amounts and for fixed periods at agreed upon rates
of interest, and they had customers to whom they lent it
at higher rates. This was all that Scotch traders had in
the way of bankers up to the close of the seventeenth century. It was in the year 1695 that the Scotch Parliament
granted to the Bank of Scotland, which was founded in
that year, power to borrow and lend money at interest. Its
business was to be restricted solely to dealing in money
it was prohibited from trading in goods. Its right to issue
notes was implied rather than expressed.
Its charter
gave it a monopoly for twenty-one years. Its paid-up
capital was only £10,000. The Royal Bank of Scotland,
the next bank founded, was incorporated in 1727. During the eighteenth century there was only one other bank
incorporated by charter, the British Linen Company;
this was in the year 1746. These three banks have made
various attempts to establish branches in the provinces,
but it was after the middle of the century before they
succeeded. There are now ten banks in Scotland. About
nine-tenths of the business, however, is done by the seven
large banks whose head offices are in Edinburgh and
Glasgow.
;
The
chief characteristic feature of the Scotch system of
banking
fore the
is
the right of issue of the one pound note.
Be-
Bank of Scotland was founded there was no
paper currency.
began to issue notes forthwith for
£10 and £5. Nine years afterwards it
issued one pound notes for the first time, but prior to the
union of England and Scotland under one Parliament in
1707, the amount of these notes in circulation was not
great.
The privilege of the right of issue has always
been recognized.
One of the outcomes of the great panic of the year
1825 was the abolition in England, in 1826, of the one
pound note. But the old note of Scotland was so dear to
the people, and their demand for it was so clamant, the
Government abandoned its resolution to extend the abolition to Scotland.
Sir Walter Scott fiercely attacked the
proposal to steal from us our right to our paper currency.
To him probably more than to any one, we are indebted
for our small note.
The committee of both Houses of Parliament in 1826
appointed to inquire into the matter of the bank failures,
of which there had been a long and dreadful catalogue,
and which were attributed to the issue of one pound
notes by the country bankers in England, reported in
favor of the abolition in England, and against the aboli£100, £50,
It
£20,
tion in Scotland.
"
With respect to Scotland," said the
it is to be remarked that during
report of the Lords, "
87
of Scotland, Ltd., Glasgow.
the period from 1766 to 1797, when no small notes were
by law issuable in England, the portion of the currency
of Scotland in which payments under five pounds were
made continued to consist almost entirely of notes of £1 or
£1 Is., and that no inconvenience is known to have resulted from this difference in the currency of the two coun-
have for more than
which the
committee believe to have been unexampled i/n the history of banking;
they supported themselves from
1797 to 1812 without any protection from the restriction by which the Bank of England and that of Ireland
were relieved from cash payments; there was little demand for gold during the late embarrassments, and the
whole period of their establishment there are not more
As
than two or three instances of bankruptcy.
during the whole of this period a long portion of
their issues consisted almost entirely of notes not extries.
.
.
.
The banks
in Scotland
a quarter of a century exhibited a stability
.
.
.
ceeding £1 or £1 Is., there is the strongest reason for
concluding that, as far as respects the banks of Scotland,
the issue of paper of that description has been compatible with the highest degree of solidity
and that there
is not, therefore, while they are conducted upon their present system, sufficient ground for proposing any alteration, with the view of adding to the solidity which has
been so long sufficiently established." The report of the
;
Commons was also adverse to any legislative interference with Scotch banking.
Prior to 1826 the difference between the English and
Scotch systems arose mainly out of the comparative
wealth and poverty of the two countries, and in the adoption in the poorer country of the cash credit substitute
for the want of capital.
But after 1826 there is a new
element of difference. At first sight it is inconceivable
that the systems of banking should be as greatly affected
as they have been by the abolition of the use of one pound
notes in England.
It is, nevertheless, a fact that since
1826 the main currency of England has been metallic;
in Scotland it has been a paper currency with little gold
in circulation.
Our present system
of banking, so far as the right of
issue is concerned, dates back sixty years.
The act of
1845 continued to Scotland the one pound note, and it
provided that the amount of paper note money not represented by com or bullion should be fixed, and that
every note issued above the limit assigned to the existing banks should be represented by coin or bullion. In
England legislation had taken a different course; the
note issues of the country banks were rigid'y fixed
there was to be no further issue no matter how much
coin or bullion was held. This, then, was the difference.
The issue of notes by the Scotch banks was to be without limit, so long as the excess of the authorized limit
was represented by bullion, the authorized limit in England was not to be exceeded in any circumstances whatever.
The authorized circulation granted by the act of
1845 to the banks then existing was based on the average
circulation for the year ending May 1, 1845. After that
no other bank might issue notes. As a check on the true
amount in circulation a certified account had to be sent
to the Government Commissioners of Stamps and Taxes
weekly, distinguishing notes of five pounds and upwards
from notes of one pound. The certified account had to
include a note of gold and silver coin held. Every four
weeks a note must be sent of the average circulation, and
average coin held. The silver coin must not exceed onefourth of the gold coin. By this act not^s for less than
20s. are not negotiable. Our system of note issue has not
been altered since 1845. The aggregate circulation de-
88
BANKERS' CONVENTION.
depends upon the public demand for this form of paper
currency. There is an elasticity in our circurlation which
the National Banks of America must envy. We have no
and, we venture to think, quite
unnecessary limits, as to the gross circulation, the proportion of small notes and large, or the withdrawal of
circulation.
During the last thirty years it has fluctuated between five and eight millions sterling. The note
issue is not secured by the purchase of Government
bonds, or in any other way. Nor are we compelled, as
the Bank of England is, to keep our issue department
separate from our banking department. In the event of
the bankruptcy of a bank the holders of notes have no
priority over ordinary depositors.
artificial, objectionable,
have in this matter been wiser than the English, and
wiser than our neighbors on the Continent of Europe.
The deposits collected in country places and in the ourskirts of cities have quite warranted the existence of the
bank's branches.
I
have perhaps enlarged over much on the value of the
it is to be kept in mind that down to
1826 the issue of notes was regarded as the essential
characteristic of banking business in Scotland.
The
amount of notes issued is now only 7% per cent, of the
right of issue, but
amount
of deposits.
Another chief characteristic feature of the Scotch system of banking is what is known as cash credit accounts.
They date back to early in the eighteenth century they
were peculiarly suitable to a poor country, where capital
was not available in its ordinary form, such as coin, or
tangible and readily convertible securities. The idea at
;
The
thirty-four private
and
joint stock banks in Eng-
land have authorized fixed issues of 1,755,952. The ten
joint stock banks in Scotland have authorized issue of
2,670,350. But now comes the striking difference between
the two countries. The English banks do not appreciate
the value of the right of issue and provincial issues are
likely to
become extinct; the Scotch banks
In Eng-
do.
land the average circulation of notes, exclusive, of course,
of Bank of England notes, is only about 590,000 in Scotland it is about 7,500,000. The average circulation in
;
1904 was 7,643,000, of which about seventy per cent,
were one pound notes and thirty per cent, were large
notes.
In England the average circulation is not one-half
of the authorized issue in the case of private banks not
one-third.
In Scotland, on the other hand, the average
;
more than three times the amount of the
Now, wherein do Scotch banks find the
value of the one pound note? Many people say that the
mere cost of the paper and the printing of the notes is so
small an item in the expenses of the management the
circulation is
fixed
issues.
banks make a considerable profit from the interest
earned on the amount of notes in circulation. But this
is
a mistake.
In the
place the cost of the note issued
supposed.
It is merely a matter of
first
greater than is
paper and printing, there
is
the Government duty, and
there is also the Government license required to be paid
in respect of every " place " where bank notes are issued,
and there are other charges affecting the circulation. It
is in another quarter altogether that the Scotch banks
find the value of the one pound note.
It is the unissued
notes in the tills of the branch offices, forming the till
money
at
real value
is
more than one thousand branches, wherein the
lies.
Without them the banks would require
to keep eight or ten millions of gold coin, not as a reserve,
but as till money. It is these one pound notes which
have enabled branch offices to be planted in every part of
the country. There is no such network of branch banks
in any other country in the world.
It is at these offices
that we have collected the savings of the country from
hundreds of thousands of small depositors. With a metallic
currency and Bank of England £5 notes, branches could
not have been profitably established in country districts.
The cost would have been prohibitive. It is the onepound note which has enabled the banks to go right down
among the masses, and made banking possible to the
greatest number.
It is the one pound note which has
brought the officers to their doors, and tempted them to
go in with their savings and deposit them securely and at
interest.
The aggregate deposits placed with the ten
Banks in Scotland now amount to more than £100,000,000
($500,000,000). It is not the poor country it was; it has
grown rich by saving and the system of planting branches
has fostered the saving.
In Scotland, at an early period, the discovery was
made that a great number of small accounts formed the
basis of a much more valuable business than a small number of large accounts.
Branches of banks were opened
in small towns and villages, with a view, primarily, to
collecting the savings of the people over a wide area, and,
secondarily, to assisting small traders and fostering small
struggling industries in districts which wealthier England would not have thought important enough for a
bank's consideration.
The Scotch, I venture to think,
the basis of a cash credit account
a trader or a
is this;
manufacturer has insufficient capital for the profitable
conduct of his business he has friends willing to help
;
him temporarily they are not required to give this help
in the form of coin, or a check, nor are they asked to pay
with their securities they give him the use of their
names they become responsible along with him to the
bank for an agreed upon amount they sign along with
him a cash credit bond. As soon as the bond is executed
and returned to the bank, the trader or manufacturer or
other person who is to have the benefit of the cash credit
is entitled to cash checks on the account up to, but not
exceeding, the amount stated in the bond.
He gets the
money from the bank just as he needs it; he is not
obliged to take the full amount as a loan and to pay interest on the full amount. It is not a loan, it is an operative account, bearing interest from day to day on the
amount drawn from the bank. It is simply an ordinary
deposit account reversed the bank has become the cred;
;
;
;
;
itor,
not the debtor.
The customer instead
of receiving
on
And, inasmuch as it i3
not what is called an overdrawn account, but a secured
account, the borrower gets the benefit of a reduced rate
of interest. This system of lending money to the manufacturing and trading communities was found to work so
Their balance
well it was adopted by all the banks.
sheets showed that their loans upon cash credit bonds
formed a large part of their business. No one will deny
that the industries of the country would develop by these
cash credit arrangements. It needed capital to sink its
interest on the daily balance at his credit, pays interest
the daily balance at his debit.
coal pits, to build its factories
and
its
furnaces, to finance
imports and its exports, to build ships in a word, to
create and develop industries which are now the source
of the country's wealth. " Cash credits are applicable to
its
;
a class of transactions totally different from those which
give rise to bills of exchange; one difference being that
bills of exchange arise out of the transfer of commodities and are payable in one sum at a fixed date, while
cash credits are not issued on the transfer of commodities, or on any previous transactions, and are not repayable in one sum at a fixed date, but are a continuous
working acccount."
no doubt that in Scotland the old cash credit
two or more good names, is not
so extensively used now as formerly. It has been to some
And this
extent superseded by other forms of credit.
characteristic feature of our system of banking has also
been adopted, in modified forms, by English bankers. I
am not aware that it has been adopted, pure and simple,
by any English bank. The result of my inquiry rather
tends to show that in England there are stipulations and
conditions and annual charges attached to personally
guaranteed accounts, which are wholly unknown in Scot-
There
is
account, guaranteed by
land.
The
chief characteristic features of Scotch banking
branch system,
and (3) its mode
of making advances on what is known as the Cash Credit
Owing to there being only ten banks in Scotaccount.
then, are (1)
made
its
right of issue,
possible by the one
pound
(2)
note,
its
BANKING SECTION.
have another distinctive and very important
feature; they have a fixed tariff of charges for interest,
discount and commission. They agree among themselves
to charge uniform rates, which vary with the Bank of
England official rate. This the English banks (or American National Banks) from their very number could never
There are many minor differences between English
do.
and Scotch banking.
There are 1136 branch banks in Scotland, for a population of 4% millions that is, a bank office established
In England it is a
for every 4000 of the population.
bank for every 7300 of the population. A quarter of a
century ago the difference was much greater. The Scotch
banks and their many branches are all managed from
ten head offices. This has made it possible for them to
act together and conduct their general business on simiThe knowllar lines throughout the whole of Scotland.
edge circulated among the banks by mutual co-operation
has been> of great value, in checking undue speculation
and the discount of fictitious bills.
In Scotch banking there is no special feature, so far
land, they
—
as the discounting of bills
is
concerned, or the granting
of advances against security, or the giving of unsecured
overdrafts.
It
may
be well to explain
how we provide
against a
sudden and unexpected withdrawal of deposits, or extraordinary presentation in time of panic of our note
issue; in short, a run on the bank.
First of all, there
are the gold sovereigns in the bank's own safes, which
may amount
to $5,000,000, held against the notes in quesbut not legally hypothecated. Secondly, the Scotch
banks all keep large balances at the Bank of England,
and with other London bankers. Thirdly, they lend large
amounts to London bill brokers, at call, or at three or
four days' notice, and in security of these loans they hold
batches of bank bills duly indorsed, or a mixture of bank
and trade bills, the latter being approved; or, in other
tion,
Edward
B.
89
Fourthly, the banks
lend large sums also to London stock brokers from account to account— that is, for periods of fourteen days—
and in security there are held stocks and shares duly
transferred to the banks, and greater in value than the
words, the best paper of
amount of the
loans.
and immediately realizable securities, realizable
on the London market on a day's notice. It may probgilt-edged
ably be taken as approximately correct to say that the
Scotch banks have about 50 per cent, of their whole liabilities covered by the five lines of defense just mentioned. The other half of their deposits, capital and reserve funds, is lent out on bills discounted, cash credits,
overdrafts with or without security and loans to custom-
Exchange or other securities.
have seen that the Scotch banks have done much
for the development of the industries of the country.
They have also done well for their shareholders. Their
ers on Stock
We
paid-up capital in 1904 was $9,302,000; their surplus reserve funds $8,021,000—that is, 86 per cent, of their capAfter deduction of 4 per cent, interest on capital
ital.
and reserves, the banks earned a further profit of fully
10 per cent, on their capital, or about 18s. 7d. per cent, on
their deposits. In the matter of market values, too, the
shares stand relatively high; those of the Scotch banks
last year stood, overhead, at 234 per cent., as against
English joint stock banks 222 per cent, and Irish banks
196 per cent.
During the last half century there were two bank failures, the Western Bank of Scotland in 1857 and the City
of Glasgow Bank in 1878, both owing to reckless departures from the recognized rules of banking. The shareholders suffered very seriously, but the depositors and
holders of notes were paid in
Smith
&
Go,
INVESTMENT SECURITIES
Members New York and Philadelphia Stock Exchanges
NEW YORK
kind.
In addition to these four lines of defense, all the banks
have large holdings of British Government and other
BANKERS
Wall Street
its
51
1
Chestnut Street
PHILADELPHIA
full.
BANKERS' CONVENTION.
90
Our Commerce.
By Harvey D. Goulder,
of Goulder, Holding
Transportation, its availability on equal terms to
every one, its extension by every legitimate means, is
one of tbe great questions. It would be idle to raise
wheat or corn or cotton or to mine iron ore and copper,
raise cattle or bring forth any of the products of the
forest, the farm or the factory, without that exchange
which depends primarily, almost absolutely, on transBroadly speaking, commerce is transportaportation.
tion. Within our own country we are solving, and there
are signs that as a people we are going on to solve
honestly, courageously and for abiding good, those problems of transportation which grow more difficult, require more earnest attention, demand greater courage, as
we advance from crude, elemental conditions. We in the
Great Lakes region boast cheapest transportation in
ships, which bear comparison with any in the world,
with credit of being the finest working fleet afloat, and
this beyond fair argument has come through direct Government support of the coasting laws and money to so
improve our channels that a modern freighter carries
in a trip what her prototype carries in an eight months'
season of navigation. But this is not all. Our ship is
aided by terminal facilities to load her ten or twelve
thousand tons in a couple of hours and unload it within
five hours, or, speaking of ordinary practice, to load in
a few hours and discharge within a day. So has come
an output of thirty-five million tons of iron ore, eighty
to eighty-five per cent, in the production of the pig iron
of the country this year, which will exceed that of England, France and Germany combined but with this has
gone the opening of the great harvest fields, which in
thirty-five years, with advantage of freight rates, increased their lake shipment from twelve and one-half to
over three hundred million bushels, with corresponding
movement of coal and other products. But transportation, commerce, intercommunication, collocation of business have made it so that there can be no partial, local
;
thrift.
;
;
;
through the land.
Our
interests so intermingle that even
the question of tariff may hardly in any sense now be
local in effect everything bearing on the commercial life
of this people is so coming to be of general consequence
that a man may no longer expect to be heard with
patience on the merits, wants or demands of any section
;
without
and
full
regard to
who cannot
its
general
effect.
look out over our
Tie is
common
narrow
heritage
realize that there could be no such prosperity,
of the good things doing in
of a
any
none
part, except the people
common
country, following out their particular opportunities, are doing well.
to
Masten, Cleveland.
materials in manufacture thirty-five per cent, of our
population is urban, and it is an open prediction that in
a few years the United States will not produce food stuffs
beyond the needs of our own people; while steadily our
;
more distinctly world-competitive manufactures are increasing in the export list.
We have pacified Cuba Secretary Taft believes that
the Philippines must be a charge for a generation; we
are starting to build a world canal at the Isthmus our
President, with general acclaim, has been drawn into the
settlement of one of the great wars of history and
;
;
Great results are seen on other internal waterways
which attention of the people will be directed until
equal, or even greater, benefit
may
be shown.
Our
rail-
roads, hauling freight at less than half the cost of any
other country, are improving their service by reducing
grades
and, so far as possible, taking out the crookedness of the tracks, and the American people are going
forward in determined spirit with President Roosevelt
and the Congress to remove, so far as possible, any other
crookedness.
We have a home market in which figures go almost
beyond understanding, but it is no longer possible to
stop at the confines of our own country. While in the
beginning we imported manufactured goods and sent out
rudimental products, more and more we are using raw
We
therein reflected honor and glory upon the nation.
have a great and growing navy, for which the nation can
afford to furnish money almost without stint, but are embarrassed in finding officers and men, because while ships
can be built to order as money is available, sailors require time in their training. We have come to be a
truly great nation, ready, able and, withal, willing, to take
first place in the world markets, but deserving and re-
from a purely economic standpoint, an efficient
system of delivering our goods abroad and yet we remain dependent on rivals in trade to carry our worldcompetitive goods abroad for introduction and sale, while
the overwhelming testimony of business men all over
the United States is that this is poor trade policy that
our trade is seriously handicapped, and many producers
have abandoned the foreign field because of unreliable
and unsatisfactory service and discouragement of Amerquiring,
;
;
ican goods.
That satisfactory service will or can come without
some form of Government aid cannot longer be claimed
with any show of fairness.
According to official
figures, the carrying capacity of ships in the world between 1890 and 1904 increased from under forty-four million to seventy-six and one-half million tons.
In this
interim England increased from twenty-four to thirtyeight and a half millions Germany from three and a third
to nearly seven and two-thirds millions France from two
and a quarter to three millions: Norway from two to
three and a third millions Japan from one hundred and
fifty thousand to eight hundred and thirty thousand tons.
Statistics before me give tonnage in Custom House measurement for the United States, which may be a little
more than doubled to get actual carrying capacity. These
show that we had (Custom House measurement), in
1861, two and a half millions in foreign trade, which had
run down in 1890 to a million tons, and in 1904 to eight
Despite any
hundred and eighty-eight thousand tons.
argument to the contrary, the other countries, aside from
the facts of cheaper construction and operation through
cheaper labor, have given definite aid in their foreign
shipping, and it is incorrect to say that this has been
confined to mere mail carriage.
On the other hand, our coasting enrolled tonnage,
which has had the support of the coasting laws, has increased from three and a third millions in 1890 to five
and a third millions in 1904. To this may be added that
of the Great Lakes, where increase of size and draft has
been made possible by Government improvement of channels, and the tonnage (Custom House measurement) increased from one million tons in 1890 to two million tons
in 1894, and there are now building and under contract for
this trade more and better ships than ever before in the
United States for any trade. And there is not, and for
months has not been a single ship of any size or description building in the United States for foreign trade,
Avhere the American people pay nearly two hundred million dollars annual freights against a quarter of that
sum on the Great Lakes.
;
;
While we do these things on the Lakes, the South produces and manufactures from cotton
timber grows
throughout the country
wheat in the Northwest is
matched by corn in the Southwest manufactures extend
indeed
&
;
:
:
—
:
91
BANKING SECTION.
We
are so abjectly dependent on foreign rivals in
trade that our flag has almost disappeared and is disapOnly through apathy of our
pearing from the ocean.
people, unmatched and not rivaled in world history, nourished and lulled into soft acquiescence by specious argument of our opponents in the shipping interest, can it
be that, when the United States shall have spent a possible five hundred millions for a commercial canal across
the Isthmus, our flag shall go through that canal only on
an occasional man-of-war or millionaire's yacht.
Our League opposes this condition and any argument,
thoughtless or intentional, tending to such consummation.
In wars between maritime powers an important duty
of the navy has been to convoy merchant ships. If we
let things go on as they are we certainly will not have
enough merchant ships to go around for this purpose.
The fact is that our foreign marine has been strangled
nearly out of existence. There are those who in apparent
sincerity say that the carrying of a nation's goods and
the building up of its merchant marine are matters of
price simply, and that it is better to get the work done
at the cheapest rate, taking our chances in time of need
upon our
ability to
pay any price exacted.
And
these
advocates point also to the fact that already American
capital has been invested and the avenue of investment
is open in foreign ships to be operated under a foreign
flag with foreign officers and men.
This may redound
advantage of some who have the money to invest,
but it is destructive of the entire theory that our Government exists for the whole people. While opponents of
an American merchant marine are saying this we see
each year that we pay over to foreigners about $180,000,000 in freights, of which a good share should be circulated
in this country, as are the freights paid in the internal
land and marine commerce of the United States. Passing through the builder, the operator, the repairer, the
to the
furnisher of ships and all the allied branches of industry
and their employes, it should go into the commercial
strength of the nation, and the ultimate argument of
our opponents is that this cannot or should not be done
because that involves conditions and wages of American
which are better than those abroad. Even in
and reasonable hope that with
American wages and conditions of living, shown in internal transportation on land and water, we have the
cheapest transportation in the world, and may with fair
encouragement and a proper start do this again on the
seas and so lay forever the ghost of " subsidy."
Humiliating as it is to our national pride, opposing
all commercial history, costly as the experience has
proven of dependence on the foreign rival for transportation and introduction of our products abroad, there might
still remain some shred of argument based on cheapness
citizens,
this they ignore the fact
at expense of progress in trade if the question could with
semblance of propriety be permitted to revolve round
and turn upon this simple minor element in a complex
problem.
This country has not only to admit that, following
consistently a system of protection in trade, it has neglected the shipping industry, which should have prospered with the rest of our interests and has been prevented by discrimination, however induced, but that this
has been done against the example of free trade nations,
who uniformly have selected the shipping interests, for
reasons of far-reaching national importance, as the one
single interest to be maintained and encouraged at any
proper cost by that country which can have a merchant
marine and would keep its place on the seas.
Adam Smith
in his " Wealth of Nations," said
There seems to be, however, two cases in which it
will generally be advantageous to lay some burden upon
foreign, for the encouragement of domestic, industry. The
first is when some particular industry is necessary for the
defense of the country. The defense of Great Britain,
for example, depends very much upon the number of
its sailors and shipping.
The act of navigation therefore
"
very properly endeavors to give the sailors and shipping
their own
of Great Britain the monopoly of the trade of
and in
country, in some cases by absolute prohibitions,
foreign
others by heavy burdens upon the shipping of
countries."
on
John Stuart Mill, another world renowned writer
free trade and economics, says
" The Navigation Laws were grounded in theory and
of
profession on the necessity of keeping up a nursery
'
seamen' for the navy. On this last subject I at once
admit that the object is worth the sacrifice, and that a
country exposed to invasion by sea if it cannot otherwise
have sufficient ships and sailors of its own to secure the
means of manning on an emergency an adequate fleet, is
quite right in obtaining those means, even at an economical sacrifice in point of
the
cheapness of transport. When
the Dutch,
English Navigation Laws were enacted
from their maritime skill and their low rate of profit at
home, were able to carry for other nations, England included, at cheaper rates than those nations could carry
for themselves, which placed all other countries at a
great comparative disadvantage in obtaining experienced
seamen for their ships of war. The Navigation Laws by
which this deficiency was remedied, and at the same time
a blow struck against the maritime power of a nation
with which England was then frequently engaged in hostilities, were probably, though economically disadvan-
tageous, politically expedient."
In 1890 there was what the North
American Review
Gladstone and Mr.
as a duel between Mr.
On
Blaine, one for free trade, the other for protection.
magazine
Mr.
that
of
number
January
the
49
of
page
described
Blaine uses this language, and I may be pardoned for
quoting at some length
" Mr. Gladstone, however, commits himself to the prinIf this has
all protection is morally bad.'
ciple that
been his belief ever since he became an advocate of free
trade his conscience must have received many and severe
wounds, as session after session while Chancellor of the
Exchequer he carried through Parliament a bounty
'
—
may I not say a direct protection? of one hundred and
eighty thousand pounds sterling to a line of steamers
running between England and the United States, a protection that began six years before free trade was proclaimed in England manufactures and continued nearly
twenty years after. In the whole period of twenty-five
years an aggregate of many millions of dollars was paid
out to protect the English line against all competition.
" It may be argued that this sum was paid for carrying the Anglo-American mails, but that argument will not
avail a free trader, because steamers of other nationalities stood ready to carry the mails at a far cheaper
rate.
Nay, a few years ago, possibly when Mr. Gladstone was Premier of England, public bids were asked to
carry the Anglo-Indian mails. A French line offered a
lower amount than any English line, but the English
Government disregarded the French bid and gave the
contract to the Peninsular & Oriental Line, owned by a
well-known English company.
Still later, the German
Lloyd Company contracted to carry the Anglo-American
mails cheaper than any English line offered and the
Germany company actually began to perform the duty,
but Englishmen did not want that kind of free trade
and they broke the contract with the German Line, and
again gave protection to the English ships. Does not this
justify the opinion that the English policy of free trade
is urged where England can hold the fields against rivals,
and that when competition leaves her behind she repudiates free trade and substitutes the most pronounced
form of protection?"
I have it from the management of the " North American Review " that Mr. Gladstone never in any manner
answered the challenge, but the English nation has responded in the contract provisions for the new Cunard
steamers. When metal ship building came in vogue and
the United Kingdom could produce more cheaply than
otherwhere the free ship policy was adopted in that
country. Germany has been going forward in ship build-
:
92
BANKERS'
ng and operation in a
wonderfnl degree, and it has come
,n
W "h the balance somewhat favoring
Ge
T
t0 build the so ' c
" ™
ocean S
d 1D
rl T T
^^
7^7^'
GermaDy 0r
n Vernment
therefore,
?°
Z7tL
ZT«
in
into
^ land
two
-
tered
E
^
When
-
years
the
ago enLine to
a
contract with the Cunard
thirteen millions of
dollars to
build two
gh' e a SUbSldy ° f
Ver
a
milli0 ^
°
do Mr, a year
dollais
for
their
operation,
the
British
for tbe first time in fifty
years sti P ulate<*
that those ships should
,
be built in the
urmsh
thaTZr';
-
-
United Kingdom
An English writer, a member of
Parliament, Mr J
Henmker Heaton, speaking of the
British practice, saidFor many years the American
mails
(as well
as
to Europe almost exclusively
British vessels. Early in the
century the Britr
en aaoi)tea the sagacious
poli <* of sub "
the shipping companies
8 dizing
which ran vessels to
the colonies and the foreign
American goods) were carried
m
TailT
Zl
countries.
Infant
settlements like those at Port
Jackson and Sydney or he
Cape could not, of course, supply
IT ^
u nerative and
'
trade enough' to make
that such settlements
now
nave shot up into
f
have
rich and powerful colonies
the sub° n a m ° re laviSh SCale
on two conditions
"SZ^rTV
First,
that the subsidized
vessels be constructed so as to be easily
converted into cruisers in case
of war; second, that
they shall carry the mails
Th s
POhcy of state aid was so
brilliantly successful in
deve,
oping trade and maintaining
the supremacy of the BritmariDe tLat
ado
in
anZTT
"
STV?*
^
the
recently
recenofTt
of the United States.
not subsidized their vessel,
»nfl other
Cunard and
companies,
St
WM
^
^
turn by
exception until
As American ships were
„^* com .
DOt
P et e with the
the art of shipbuilding
Si " gle
'
mnM
^ ^"^m ^^
™
SSSo
no
nTf "
les S th
canti le
'
**
°—
•
$3,000,000,000 for freights, while
their
mer
marine dwindled into insignificance.
The fact
that the country bore this
heavy drain upon its earnings
so long without feeling
it-as if it had been a flea-bite^
affords the highest possible
proof of its amazing vitality
thG Same time ° ne iS
PUZzIed to und
stand wh'
why i*
the proverbial shrewdness
^
of the American.
unfailingly exhibited in his
private affairs, was missing
'
-
for more than a generation
in this important section
of
national business."
Captain Wiknot, of the Royal
Navy, writing in 1892,
"
When we
manning the
Presidents and publicists, may I not reproduce the language of an official report of Thomas Jefferson over one
hundred years ago, which has lost none of its force
" Our navigation involves
As a branch of industry it is
passed from the old irregular
method of
and adopted the continuous service
fleet
system (under which seamen
enter for ten vears, with
the option of continuing
at its expiration for a
further
similar period, followed by
a pension), coupled with the
entry and training of boys,
a complete revolution was
effected in this portion of
the naval service. The delays
of manning in peace time
disappeared, and all uncertainty in the matter, when
hostilities are apprehended, is
removed.
For a reserve in time of war we
rely on
20,000 merchant seamen (now
30,000), who, though they
have never served on board a man
of war, are annually
drilled to guns and small arms
at various depots round
the coast. How far the comparatively
small number of
highly trained seamen we maintain
together
with this
somewhat uncertain reserve would supply the
requirements of a protracted maritime war it is
difficult to say.
The waste, from many causes, would be very
great if
the struggle were severe, but seeing the number
of men
this country possesses who are, or have
been, connected in
some way with the sea, and who would be of great assistance when acting with trained seamen, I do not think
that in this respect our resources will prove inadequate."
Without stopping to give the expression of American
still
higher considerations.
valuable, but as a resource
of defense essential.
" Its value as a branch of industry
is enhanced by the
attendance of so many other branches on it. In times of
general peace it multiplies competitors for employment
in transportation, and so keeps that at its proper level;
war— that is to say, when those nations
be our principal carriers shall be at war with
each other if we have not within ourselves the means
of transportation, our produce must be exported in beland
in times of
who may
—
ligerent vessels, at the increased expense of
war
freight
and insurance, and the articles which will not bear that
must perish on our hands.
" But it is as a resource of defense that
our navigation
will admit neither neglect nor forbearance. The position
and circumstances of the United States leave them
nothing to fear on their land board, and nothing to desire
beyond their present rights. But on their seaboard they
are open to injury, and they have there, too, a commerce
which must be protected. This can only be done by possessing a respectable body of citizen seamen, and of artisans and establishment in readiness for shipbuilding."
A recent consular report gives account of changes in
British and German tonnage in the past twenty years,
and this succinctly is the record of British companies;
One increased from 174,000 to 440,000 gross registered
tonnage; another from 58,000 to 388,000; another from
175,000 to 32G,000; another increased seven-fold to 312,000 tons; another from 96,000 to 298,000; another from
53,000 to 261,000 another from 51,000 to 254,000 another
from 68,000 to 203,000. For the Germans, one line increased from 60,000 to 719,000, and another from 103,000
;
trade
tranl
1891 only 13 per cent of
States was carried in Ameri
can ships, which at one
time had engrossed 90 per
cent
As a consequence of refusing
five millions a year in
sub
6 8 t0 nath e
or , IK tf United States
J
000 000 the
had to pay in the same period
"f
ferred to foreign
f
bottoms,
he exports from the United
CONVENTION.
;
to 573,000.
From the general experience it may be taken that a
foreign merchant marine is an essential element in the
rounding out of the affairs of a nation which has a seacoast and the possibilities of foreign trade. We have a
greater navigable seacoast than any other country in the
world, and the greatest foreign trade of any country, and
a growing necessity for introducing our world-competitive
products. We have the humiliating spectacle that while
bottoms we import more products from South
sell elsewhere, we have no adequate
means of shipping to them the things which we have to
sell and should sell in exchange.
To the best customer in
South America we have to send by way of Europe, and
when any of us visit South America convenience requires
that we go to Europe and from there to our near neighbor.
Let us leave those gentlemen who are either content with this condition of things or think they will remedy themselves in some undefined way.
Now, as to the remedy. It must be understood that
in our League there is absolutely no interest in favor
of any particular remedy that our purpose is the finding
of a remedy and the best one.
So, therefore, we are
ready and willing and desire to approach this question
of remedy without predilection in favor of particular
means, without fear of words or definitions. Many people in this great country shiver and would have the nation hesitate and stutter over the word subsidy. We have
gone through a lot of definitions since the Constitution
was adopted, and it must, out of the reason of the thing,
come to be a mere weakness for any man to say or write
that he is opposed to subsidy per se. Among the remedies
that have been suggested, and perhaps including all, are
Free materials for shipbuilding, Free ships, Discriminatin foreign
America than they
;
ing duties and Direct aid.
There are afloat in the country to-day those who say
that our problem would be solved if the materials for
building ships for foreign trade were admitted free and
point to ship plate being sold for delivery abroad cheaper
than at home, and who invoke the aid of tariff reform
without appreciating that for some fifteen years all inn-
;
BANKING SECTION.
terial for building, furnishing and repairing any ship for
the trade has been entirely free of any duty. This plan
has been thoroughly tried and is exploded. Free ships,
the right of going abroad and purchasing a ship wherever
might be built cheapest, does not seem to promise anyUntil foreign countries shall raise their wages
thing.
it
and conditions of
or we shall, by some general
must be that wages and cost of
living
process, reduce ours
it
operation of American ships, regardless of the percentage
of Americans to be employed, shall be greater. If we can
purchase ships abroad cheaper than in this country it is
only so far as the labor in their construction costs less
abroad. Here let it be said that by reason of the stifling of
coast shipbuilding in this country shipyards are not able
to standardize and so put into vogue those practices
which in other lines of work have enabled us in this
country to pay higher wages with better conditions and
yet produce more cheaply, as our railroads under our
conditions carry freight more cheaply than abroad. There
seems no warrant in experience, analogy or acceptable
argument for asserting that free ships would solve the
problem.
But by reason of the assertion the Congressional Commission made special inquiry upon this subject, and the universal testimony of men interested
directly in shipping and the operation of ships was
against, and overwhelmingly against, the proposition that
Discriminating duties in the bethis could afford relief.
ginning of this country doubtless aided very much at a
time when we were an importing nation, exporting only
food stuffs and raw materials which other countries required to have. Now we have gotten into a position and
condition where practically half of all that comes into
this country is on the free list. There is no export duty.
And when we come to consider South and Central America, our nearest neighbors, barely ten per cent, of what
comes to us now in foreign ships pays any duty. To you,
who in dealing with general questions of business appreciate the absolute necessity of correct detail, I put the"
question: How would the plan of discriminating duties
work out? In the first place, consider that anything
shipped out of this country does not have any duty
about it and the plan could not be applied there. In the
next place, consider that two ships might load at a
foreign port, one largely with dutiable goods, the other
largely with goods free of duty how would it be worked
out in such a case? Not to detain you too far with detail, take the further case that in respect of goods which
are dutiable one ship hauls 15,000 miles and another ship
1,500 miles how is this to be worked out? I lay aside the
political question of disturbing thirty-two working commercial treaties and ask you gentlemen when you go
;
;
up the question of discriminating duties as
a purely business problem, and see if with no duties on exports, with 90 per cent, of our goods coming in free from
South and Central America, half our goods from all over
the world coming in free, with the duties laid precisely
the same regardless of the distance traveled by the ship,
how a system of discriminating duties could be devised
which would be workable.
Our League has been in existence nearly a year. It was
not formed to support the action of the Congressional
Commission. In its first statement, made in advance of
home
any
to take
report,
we
expressly reserved the right to criticise
93
anything which might be put forward by that Commission.
But we find ourselves really in the condition of
mind of the majority of the Commission, with perhaps
a little more freedom of expression. That Commission
went all about the United States, invited expression from
every one willing to come before them, sifted it all and
reached the conclusion unanimously that we need a
merchant marine possibly less for the purpose of introducing trade abroad, important as that is, than for general safety of the country in having a fleet of our own
to carry our goods independent of foreign complications,
reliable for the continuance of our trade under suitable
naval protection in case we might be involved in war and
furnishing those adjuncts of the navy which every nation
in the history of the world has found to justify all the
other expense of a navy, that is to say, auxiliary ships
and a sufficient resource for seamen when the test should
come.
Time does not permit my going
into the details of
proposed by the Commission. Your Congressman
can furnish you with a copy or you can obtain it otherwise readily. Suffice it to say that the Commission, apparently regardful of the hobgoblin of subsidy, have provided for only a few lines and these only to South
America and to the Orient. But they have heeded the
cry which went over this country when other projects
were before Congress, that what we most need is the delivery wagon style of ship, and provided a general subsidy, and I use the word " subsidy " because it is the
familiar term and we should not fear definition but hold
the
bill
to substance.
The question
of expense
is
of greatest importance, but
most important as related to probable results. This counnow paying for rural free delivery thirteen millions
a year, and for city free delivery twenty-one millions a
year. This is for convenience of the people. A fraction
of that sum would solve the problem of our foreign
marine and supply a conceded necessity. Putting it another way, the price of a single battleship for the navy
would more than meet the expense of a thorough experiment in rehabilitating our foreign merchant marine. Compared with the expenses which we are approving in connection with the Philippines, for our navy and army
establishments and in the building of the world canal,
the cost of a thorough test might be described as a " drop
try is
in the bucket."
I wish I might detain you with a discussion of the bill
and of every feature of the bill. I would be glad if some
one could present a better bill, but the sole point has been
to lay this matter before this National body in the hope
that you will go home thinking of the subject, believing
that it is one of the most important subjects before the
American people, and that you, through your large influence upon affairs in your homes, will be willing to aid in
bringing the subject forward to help speed that day when
our American trade shall go abroad under our Flag,
peaceful emblem of excellence, of honesty, of fan dealing
in trade and of manful, considerate power when needed,
-
and
all in
the spirit of the toast,
The union of lakes, rivers and lands.
The union of States none can sever
The union of hearts, the union of hands,
And
the Flag of our Union forever.
CONVENTION.
BANKERS'
94
Elements of Strength and of Weakness in the Situation.
By Frank
A. Vanderlip, Vice-President National City Bank,
With almost unmixed satisfaction the members of the
American Bankers' Association may contemplate the
progress of financial events during the year which has
elapsed since their last meeting.
Little short of bewildering is the array of statistics which could be presented
to demonstrate the rapid growth, sound development and
Satisfactory progress made in the commercial, financial
and industrial fields. It is safe to assert that never
before was our population so fully employed. Never before was the general level of wages so high, never before
has the aggregate volume of industry been as great as
it is to-day, never was the future of industrial activity
so fully assured by advance orders.
Never was the
measure of commercial activity so large, and never before did such
bountiful harvests meet such eager
markets.
The total value of the agricultural crop of the United
States will this year exceed by $500,000,000 the average
value of that crop during the last ten years. The money
value on the farms of this season's crop will reach the
staggering total of $3,000,000,000. You of the West and
South are close to tbe true meaning of these figures.
To Eastern bankers such
Their aggregate
is
statistics are
so vast that
merely
figures.
to
compre-
it is difficult
hend their true import. You who are closer to the fields,
the granaries and the cotton presses, you who with your
own
eyes see the direct results of this flood of wealth,
are more competent to comprehend its significance.
Under tbe influence of harvests
this,
less
bountiful than
following one another with providential regularity,
you have seen whole communities change in character.
People whose only acquaintance with finance was their knowledge of mortgage
payments made to absent creditors have been converted
into commonwealths with surplus capital and investment
in the last half dozen years,
capacity.
at
The whole great Mississippi Valley gives promise that
some day, distant perhaps, it will be another New
England for investments. There is a developing bond
market there which is of constant astonishment to Eastern dealers.
You have seen the fanner in these half
dozen years discover the uses of a bank account, deposit
his income, pay off his mortgage, accumulate a surplus
and actually become an investor in corporate securities.
You have seen that sort of thing multiplied and repeated until the aggregate wealth of the Western and
Southern States has become astounding, even to you
who have taken an active part in its growth.
Now on top of these succeeding years of good harvests, good prices, intelligent liquidation of debts and
thrifty accumulation of surplus
comes the unprecedented figures of the value of this season's crop yield.
Surely America is a country blessed.
The feature of agricultural life in these recent years
has been great income, diminishing liabilities and the
provision of ample working capital, with all the economies and advantages which ample working capital provides.
These conditions have worked marvels in the
way of prosperity for the agricultural communities. But
not confined to the farms. These same influences, large income, diminishing liabilities, and the
provision of ample working capital, have been factors in
prosperity
is
the industrial field as well
;
we can
find as great pros-
The days when
commonly reached a point of destructive severity are largely past. The days when narrowness of outlook and lack of co-ordination led to the
wasteful duplication of plants and a vast unproductive
expenditure of capital have given way to more intelliperity under shop roofs as in the fields.
industrial competition
New York
City.'
gent management.
That destructive competition, that
duplication of unproductive expenditure, led with unerring economic force to the industrial combinations
which marked the last years of the century recently
closed.
The
forces which led to tnese combinations
were
some industries were swept together
under hastily considered plans.
Combinations were
made that were properly open to criticism. Heterogeneous elements were united in ways that meant inevitable friction.
Diverse interests were brought together
but could not in a day be harmonized. For a time there
was doubt as to whether or not true wisdom had been
shown by the men who formed these great industrial
so irresistible that
combinations.
Evidence has now accumulated, I believe, to warrant an answer to that question. We anticipated econo-
mies when these combinations were made, but we are
only just beginning to understand something of the full
advantage which may result from the national organization of certain industries.
It took a little time to
get these organizations running smoothly.
It was not
easy to find men with the broad economic insight which
the management of such great enterprises required.
•
When a nation meets a crisis men seem to be raised up
ready for the tasks. When this country faced war we
produced great military generals.
To-day, when the
crisis in the management of vast industrial combinations
is upon us, we are producing great captains of industry.
These managers are not all great administrators any
more than the war officers were all great administrators,
but I believe the world has never seen the parallel of
the business genius which is coming into the work of organizing some of these great industrial combinations.
Economies are being brought about that were not conceived of when these organizations were formed. The
co-ordination of a whole field of industry, the organizaand distribution of plants so that the industry is
working under the least possible disadvantage in respect to transportation charges, the combination into
tion
such aggregates that expenditures may be made to effect
small savings, or in introducing mechanical aids which
would be impossible in small plants, but which on a
large scale effect remarkable economies all these developments are answering the question as to the wisdom
of these combinations.
The results are beginning to
—
appear in the income accounts and balance sheets. The
improvement there foreshadowed is, I believe, but an
indication of what may yet come.
With the aid of a wealth of raw material and a
genius for mechanical manipulation we developed a few
years ago a capacity for industrial competition which
startled the world. England, whose supremacy had been
of such long standing that she rested in serene assurof some of the international comShe was crowded to second place by
America and then to third place by Germany. Our exports of manufactures doubled and doubled again and
we had to be reckoned with in every international
ance,
was crowded out
petitive markets.
market.
Europe awoke to the situation.
She bought samples of our tools and duplicated them.
She sent an army of investigators to study our methods.
She arrested us in our commercial conquest. That halt
Again we are
is proving to have been only temporary.
Showing unexampled totals in our exports of manufac-
Then came a
tures.
halt.
The present
figures are substantially exceeding
the totals which we made at the time Europe coined the
The reason for this
phrase, "a commercial invasion."
BANKING SECTION.
late
lost,
improvement, this regaining of ground temporarily
this
making of new
records, lies in the perfection
of industrial organization which has been
made
possible
by the great combinations. I believe we are just started
on a new "commercial invasion." We have the cheapest
raw material, the most efficient labor, a pre-eminent
ability in the adoption of mechanical aids, and all that
is combined with what I believe to be transcendent
genius for economic organization. The combination of
these forces will, I conceive, be well nigh irresistible.
The logic of this combination spells for us an unexampled development of foreign trade. All we need is intelligently to foster the possibilities.
to imagination.
tics
The
I
cold figures of
show the beginning
of this
new
am
not giving rein
Government
statis-
industrial conquest.
Comparisons of manufacturers' cost sheets reveal the
Our own homogeneous
possibilities of future successes.
domestic market, as great as that of half of Europe,
contrasts strikingly with the tariff-hampered field of
European manufacturers. Our foreign competitors meet
at every turn the obstacles of customs restrictions, of
racial differences and national jealousies.
This great
homogeneous market of ours makes a solid foundation
upon which our industries can stand while they reach
out successfully into competitive fields.
The conquest of foreign markets will not be an easy
one, however.
We are likely to meet with defeat and
failure at some points, caused by our failure to give proper attention to the business and there are many examples of that in the past or caused by a combination
of obstacles which we cannot overcome.
Perhaps we
may see an example of the latter situation in the Far
East. It is by no means certain that Japan is to stand
courteously at the open door of Oriental trade and permit us to enter. We have seen in China what a racial
boycott can do in interfering with trade totals. Oriental
trade is not something won, but something to be striven
for and there will be difficulty, defeat, disappointment
and discouragement. Nor is the trade of Europe to be
ours for the asking. The obstacles of tariff walls grow
higher with every meeting of Continental Parliaments.
The ability to compete with us increases as our methods
are better comprehended.
Germany has gone so far
ahead of us in the proper education of the industrial
classes that we may lose at times from that cause alone.
I do not mean that advantage is to come to us
through disaster to others. We have perhaps more than
our just measure of prosperity, but there seems, at the
moment, to be good measure throughout the world. The
world has withstood the financial strain of a war which
cost the combatant nations two billion dollars.
It has
withstood that strain so easily that one is led to inquire
how it has been possible that such a disaster should have
I believe the
produced no more unfortunate results.
answer to that should be looked for in a quarter to which
our academic friends have been giving some attention,
but which has not as yet come to excite very great interIt is not alone to the
est among practical financiers.
raisers of grain that nature has been bountiful of late.
The mines of the world have been yielding treasure as
In every day of this year,
lavishly as have our fields.
—
—
nineteen hundred and five, work days and feast days,
holidays and Sundays, there will be drawn from the
ground a million dollars of new gold. And then when
the total
number of odd
spare above that average. The mines of the
produce this year $375,000,000 of gold. The
is finally
millions to
world will
cast
up there
will be a
production of gold in 1904 have rethey footed $347,000,000. We may
reasonably look forward in the near future to an annual
average output of $400,000,000 of new gold for at least
When we remember
a considerable number of years.
that in 1885 the production of gold was but $115,000,000
we begin to get a comprehensive view of the significance
When we remember further that the
of this increase.
final figures for the
cently been
entire
made and
monetary stock of gold in the world
$5,700,000,000
we can
is
about
calculate that the output from the
95
mines in the next fourteen years promises to equal a
total as great as the present monetary stock of gold.
These figures are startling. They perhaps suggest the
possibility of a disturbance of values.
It
does not
fol-
low, of course, that with the production of $400,000,000
of gold per
annum
draw
the monetary stocks will be increased
The uses
by that amount.
of gold in the domestic arts
off at least $75,000,000
a year, but that will leave
over $300,000,000 a year to add to the gold reserves.
So eminent an economist as Le Roy Beaulieu has estimated that the monetary stocks of the world will be
doubled in twenty-five years.
In the light of recent
output of production I have no doubt
that he would modify that estimate and incline to the
statistics of the
view that the monetary stocks will be doubled in twenty
years.
What is this to mean to
What is to be its influence upon
the
business
What
prices?
situation?
effect will
have upon money rates?
These are no longer academic
which need
to be taken into account by business men.
The great
increase in gold production which has been in progress
since the close of the Boer War has, in my opinion, been
a factor in the rapid recovery from the depression of
three years ago. At that time, through financial excesses
and indiscretions, we had been led into a dangerous
position.
In Europe also the chilling effect of the great
destruction of capital occasioned by that war was everywhere manifest. This new gold production pouring itself
into the bank reserves of the world has been an influence in bringing about the quick recovery from depression and in withstanding the shock of the further destruction of capital which the Russo-Japanese War
it
questions.
They are
practical considerations
entailed.
The
classical economists, Ricardo,
Adam Smith and
Mill, evolved the
quantity theory of money. They held
that the prices of things would vary with the quantity
money
If the money stock were doubled,
would be doubled if the money stock were halved,
prices would be cut in two. That theory has been proved
to be inadequate.
There are many other interfering
circumstances and modifying conditions.
Nevertheless
there is economic truth and force in it. It is within the
intimate knowledge of all of us that if our bank reserves
of
in existence.
prices
;
are increased we are moved to increase our loans.
A
pressure to increase loans tends to reduce interest rates.
Lower interest rates enhance the price of incoming paying securities. I think every one will accept, subject to
important modifying conditions, the statement that an
increase in the monetary supply has a tendency to advance prices. There may be other influences that will
counteract in the final result. There can be no doubt,
however, that with every million dollars of gold added
to the bank reserves of the world there is a disposition
to increase credit lines.
That increase in credit lines in
influence on the side of advancing prices.
a practical matter, however, I do not believe we are
turn has
As
its
facing any economic revolution as a result of this influx
of gold.
We must remember that the growth of business may keep pace or even run ahead of the substantial
growth in the gold reserve, so that in spite of actual
increase the relative percentage of gold reserves to credit
demand would
The subject
leave prices unchanged.
is
a fascinating one, but at the outset
it
must be admitted that it is not one for accurate calculation and definite conclusion. There are a few considerations, however, and some popular misapprehensions in
regard to it concerning which it would be well to have
clear thinking. For example, it is rather commonly said
a great increase in the gold supply will bring us to a
basis.
That is a misconception.
It is true that the first effect of gold additions to
a bank reserve will be to lower the interest rate. That
effect, however, is temporary.
When the money supply
has reached a permanent level, no matter how great the
increase in it has been, the interest rate, other things
remaining unchanged, will find its regular level. Inter-
permanently lower interest
BANKERS' CONVENTION.
96
payment in kind. If the value of money
the value of interest payment depreciates
as well. We need look for no permanently lower interest
basis as a result of an increase in the money stock, but
while that increase is in progress the reserves are being
constantly augmented and the tendency would be toward
est is but a
depreciates
lower rates.
another consideration which we should have
clearly in mind. Disregarding for the moment all other
There
is
we may
influences,
lay
crease in the supply of
down the principle that an inmoney will tend to advance the
price of real property, but the price of
an obligation
That is to
repayable in money
say that real estate and all forms of property, including
shares of corporate stock, which represent an ownership
in real property, would advance, but bonds, which represent only the right to demand a payment in money,
would not advance. All persons having a fixed income
would find the purchasing power of that income reduced.
The return from mortgages and bonds would have a reduced purchasing power. Persons receiving fixed salaries and wage earners generally would be at a disadvantage, for their incomes would not tend to increase as
rapidly as the purchasing power of their wages decreased. Under such a set of circumstances there would
be constant pressure from wage earners in order to increase their incomes so as to keep pace with the advanced cost of living. Is not that exactly what we have
been seeing and are we not likely to see more of that
will not tend to advance.
same pressure
to
advance wages as the cost of living
advances?
These are tendencies which would become sharply
manifest if there were not counteracting influences opposing them. That there are sure to be such counteracting influences goes without saying. I recall a conversation which I once had with the great German financier,
von Siemens, the creator of the Deutsche Bank. The
balances of trade in our favor had been climbing up from
$400,000,000 to $500,000,000 and then had gone well beyond $600,000,000, and it looked as if we might drain
Europe of her whole monetary stock if that sort of
I asked Herr von Siemens what
thing was to go on.
was to be the outcome for Europe. He replied with a
well known German phrase, "A tree never quite grows
Events soon proved that this tree of favorto heaven."
able trade balances could not quite
grow
to heaven, al-
though for the moment it did look as though it were
likely to. And so with this increased production of gold
which gives promise of doubling the monetary stock of
the world in the next score of years. We might expect,
if the theories of the classical economists held good, that
with a doubling of the gold stock would come a doubling
of prices.
We can, however, be very certain that the
theory will not entirely hold good. There will be counteracting influences.
While there will undoubtedly be
a tendency to advance prices as a result of this influx of
gold into the bank reserves of the world, I do not believe
the gold production is likely to become a serious menace.
I do not believe that it will so disturb those business
relations that are based upon the terms of money as to
cause any vital derangement of affairs.
What I do believe is that there is likely to follow
just what followed in the two former periods of the
world's history when there was an extraordinary produc-
tion of gold
monetary
One of these
when the
Mexico and Peru were exploited. The other
added
to the
periods followed the discovery of
treasures of
was
stocks.
America,
in the years following the discovery of gold in Cal-
ifornia
and Australia.
was given
In each case a mighty impulse
to the exploitation of virgin fields of develop-
ment.
seems to me not improbable that the next few
years will witness the expansion of the field of commercial enterprise into new places. Countries that are
commercially and industrially backward will yield to
this new influence. It seems to me that one of the direct
and important effects of this great production of gold
will be to give an Impulse to the development and indusIt
exploitation of South America, Africa, Asia and
Eastern Europe. At our own hand is South America on
one side and China and Japan on the other. We are
rapidly awakening to the commercial possibilities within
these countries.
If we are to have an influx of gold
more than ample to sustain the credit operations for our
domestic affairs, that fact will tend to lead our interests
into these new fields of exploitation.
Then, in turn, a
wider use of credit which these new fields will develop
and the increased reserves which that wider use of credit
will make necessary will probably absorb the increasing
gold stock in beneficent uses, preventing it from ever betrial
coming a serious menace
to business organization.
What can hurt us?
dangers are ahead?
With bountiful harvests,
with lavish mineral production, with increasing financial strength, with wonderfully improved industrial organization, with a sound banking position, and with an
impulse already given to every form of commercial activity, what is there to fear in the future?
Is it clear
sailing?
Can we make commitments without fear of
The outlook
is
surely bright.
What
whole outlook into a cloudless finanoptimist might be forgiven for thinking that it ought to be. We have a good many elements
of a firm foundation under our feet, but again we might
quote the German phrase, "A tree never quite grows to
heaven." Sure as we are of many of the substantial
foundation stones upon which to rear a structure of
the future?
Is the
cial horizon?
prosperity,
An
we may
be quite as sure that there are danSome may be avoided,
Some it is possible to foresee, others
gers lurking in the situation.
others will not.
we will fail to recognize until we see their evil
Among those which we know exist there comes
effects.
first to
mind our illogical and unscientific currency system. We
know that this system may at any time breed us trouble.
We know that there is not a European financier of
broad intelligence who, looking dispassionately from
without at this currency system of ours, does not feel
that it has in it dynamic possibilities for trouble even
Indeed it is when all
if other conditions are favorable.
other conditions are most favorable that the danger is
Now, in the very fullness of the prospjrity that we have, there might be a pitfall for us in
that quarter. A strain is on our currency system. With
the greatest.
we may avoid disaster, but it
when we ought clearly
our usual good luck
sort of time, nevertheless,
is
the
to see
we have a system which might endanger our banking position and retard most seriously our commercial
development. We know that we are threatened by great
that
social disorders; that the edict of a labor leader
might
We
change a cloudless outlook into an uncertain one.
know there is a disregard of law in labor unions and in
corporation officers alike which is threatening to our
We
welfare.
can,
at
moment,
the
clearly
see
may
appear
however
tbat
should
check
this prosperity might receive a severe
Should a stock
a speculative fever begin to rage.
market speculation start from the present high
prosperous
level
of
prices
in
the
conditions
face
of
the extraordinary
de-
mand for capital and money which crops and business
alike are making the result might easily be temporary
disaster.
I
have been emphasizing some of the bright sides of
the picture, but there are shadows. In a gathering like
this Jeremiad songs are not pleasant, but there are
some that might be sung which would not be out of har-
mony with
Never was there a better
true conditions.
time to preach conservatism never perhaps was it easier
to be carried away by some of the obvious features of
prosperity and to forget some of the dangers which in
the end will be quite as potent in shaping the ultimate
result.
"A tree never quite grows to heaven." Although
;
may be many favorable features to the outlook, it
no time for prudence to be cast to the wind no time
for speculative commitments which would yield disaster
if temporary reverses came; no time for laxness in any
of the forms of business prudence and conservatism.
there
is
;
—
BANKING SECTION.
The Benefits of Membership
in
9?
the
American Bankers
Association.
By Walker Hill, President Mechanics- American National Bank,
St.
Louis.
In considering the benefits of membership in the
American Bankers' Association it is proper to inquire into
the origin and purposes of the Association, its daily
work and the character of its membership and there is
no more appropriate place to consider the origin and
purposes of the American Bankers' Association than the
great pecuniary value to individual members is a feature
of membership in the Association that all appreciate, but
I believe that most of the members feel that if this com-
city of
Washington, the Federal Capital of the country,
had in view in organizing the Association in 1875 was to aid the Federal Government in resuming specie payments, and it is not claiming too much to say that the Association gave most
valu-
vantage in
for one of the principal purposes
Bar Asbut
wrongdoers,
sociations to protect themselves against
to elevate the standards of their profession and compel
able aid to the
a gold basis.
their duties to the courts.
;
Government
in putting its currency
on
Thus
at the very beginning of its career this Association set before itself a wise and patriotic
purpose, and
from that day to this it as a body and its members
as
individuals have given freely to the Government
valuable
assistance in carrying out every financial measure
which
the Government has undertaken. Indeed,
the aid which
the members of this Association has given
to the authorities officially charged with the
financial interests of the
country has been not only frequent and
valuable, but in
many instances that assistance has been practically
indispensable, for had not the Government's
proposals met
with the approval of the American Bankers'
Association
and most of its members those proposals would
have been
so discredited, both in this
country and abroad, that
they would have been incapable
of execution.
This Association, therefore,
has not only an honorable origin, but
has ever since taken a creditable part
in the financial
problems of this country. Indeed, there
it
are few, if any,
other similar Associations that
have rendered more continuous and valuable services to the
Government.
for a
moment how much simpler and more
Think
successfully
met would have been the problems of that
greatest of
Treasury Secretaries, Salmon P. Chase, if
he could have
called to his assistance an organization
such as is the
American Bankers' Association of to-day.
The daily
work of
this Association
members, though it
value in dollars and
is
of practical benefit to its
may
be impossible to measure that
But that the services of the
Association in detecting and capturing
criminals who prey
on banks, and thus deterring crimes
against banks, is
of substantial pecuniary benefit to the
members of this
Association must be admitted. Those members
who are
the victims of some crime and find the cost
of running
down and prosecuting the criminal borne by this Association have a keen appreciation, which
can be measured
in dollars
and
cents.
cents, of the value of the
membership
in
this Association.
But that those members who are not thus made
to
membership are nevertheless
their membership there can
be no question. The report of the "
Protective Committee " leaves no doubt of the fact that
membership in the
American Bankers' Association protects to some
extent
realize the value of their
directly benefited through
against the criminal classes.
There may be some members who find in the
work of
the " Protective Committee " the principal
value of their
membership But not all are of this opinion.
That the
work of this committee may be, and often is,
of very
;
mittee were abolished and the work that it does altogether abandoned by the Association there would still
remain important work for it to do and a material ad-
Our
its
its
membership.
friends, the lawyers, do not maintain
members
to observe their
obligations to clients
And
so the
and
members of the
American Bankers' Association must not consider the
sole advantage of membership in it to lie in such protection as
it
may
afford against the criminal classes.
The
Standing Committees on " Uniform Laws," " Currency
Legislation," " Bankers' Money Orders " and " Education," as well as the " Protective Committee," do work
of pecuniary value to the members of the Association.
If the American Bankers' Association had not originated in a patriotic purpose and had no proud past and
its day to day work were of no value membership in it
would yet be a distinct and positive advantage, for it
must be worth a great deal to any man engaged in important work requiring intelligence and broad views to be
associated with his successful fellow-workers, for in work
and banking is of that kind
of the kind referred to
there is much of importance that can only be learned by
association with those of character and ability who are
engaged in the same work. And I venture to say thai
there is no Association in this country of the same general character as the American Bankers' Association
whose members stand higher in point of character and
ability, and have a better knowledge of their business
and the conditions which affect it favorably or unfavorably, or who are actuated by a more patriotic
spirit when their work affects the public than the members of the American Bankers' Association. I am equally
—
mere membership in any body
composed of such men must be a distinct, if not a measurable, benefit to each member, and each member of such
an Association should realize that he is benefited and
should cultivate a feeling of pride in his membership.
The work of the American banker is extending farther
and farther every day, and becoming more and more of
positive in declaring that
public importance as the railroads bring all parts of the
country closer and closer together and our flag rises here
and there in far-away countries, and each day the need
of the American banker for a better knowledge of distant
peoples and more accurate information as to their ways
and commercial needs and the routes of commerce and
its laws increases; and membership in the American
Bankers' Association will afford a means by which many
of these needs can be easily acquired, for its members
many who know most about these things and are
doing successfully the banking business of this country.
And to whom else could one turn with more likelihood
of receiving valuable aid in these matters?
But although you may not feel the need of that proinclude
tection which the American Bankers' Association undoubtedly arfords its members, nor attain through it a
broader and a better view of the commerce of the coun-
BANKERS' CONVENTION.
98
should give you a proper pride of caste, for when
you consider the origin of the Association, the honorable
part in the history of our country which bankers have
played and the number and character of the members
who now compose this Association you may properly
feel that banking as conducted in the United States is a
creditable calling and worthily represented by the American Bankers' Association, and feeling this, who can
try, it
deny you the pride which such reflections justly bring?
For these reasons and because the honorable and
important business of banking in the United States
should continue to be fittingly represented among the
commercial bodies of the world let us maintain the character and importance of the American Bankers' Association, as evidenced by its origin, its history and the character and number of its members.
CHARTERED
1810.
MECHANICS NATIONAL BANK
WALL STREET
33
CAPITAL,
$3,000,000
3,000,000
SURPLUS,
GATES W. McGARRAH, President
NICHOLAS F. PALMER, 2d V.-Pres.
1st V -Pres.
ANDREW A. KNOWLES, 3d V.-Pres. FRANK O. ROE, Cashier
ROBERT U. GRAFF, Assistant Cashier
ALEXANDER E. ORR,
DIRECTORS
William B. Boulton
Andrew A. Knowles
Charles M. Pratt
Thomas
Lowell Lincoln
Gates W. McUarrah
V. Everit Macy
Edgar L. Marston
Alexander E. Orr
Nicholas F. Palmer
George
Qulntard
Anton A. Raven
P. Fowler
Horace E. Garth
Henry Hentz
Thomas H. Hubbard
Clarence H. Kelse
lsey
William M. Klngsland
Henry Talmadge
John
W
William Uockefeller
John Sinclair
Henry B. Stokes
William C. sturges
T. Wlllets
Detailed
THIRTY-FIRST
Report
ANNUAL CONVENTION, HELD
FIRST DAY'S PROCEEDINGS.
Wednesday, October u, 1905.
New
called to order by the President,
E. F. Swinney, at 10 o'clock a.m.
Prayer by the Rev. Randolph H. McKim.
Almighty God, we Invoke Thy presence and benediction
in the
exercises of this hour and upon the deliberations of this convention.
It is meet and right, O Lord, that we should thank Thee for Thy
abund-
ant kindness and Thy gracious providence over us, Thy servants, and
over all this people that we represent.
Thou hast given us, O Lord,
a land which is the glory of all lands, a land of abundance and of
plenty, a land
out of whose hills
we have taken coal and iron and
a land whose plains and valleys have poured into our
laps the abundance of prosperity.
Thou hast given us, O Lord, a
great place among the nations of the earth.
Thou hast given us
liberty and justice and freedom and opportunity In this great land, and
Thou hast set us on high among the peoples of the world to execute
Thy trust and to do Thy will. Thou hast given us a ruler wise and
brave and strong; through hia instrumentality this nation has become
the peacemaker among the nations of the world, saying to those who
silver
and
gold,
war one with another, " Sheath the sword and let there be peace
and harmony." For all these Thy blessings, Almighty God, we praise
and thank Thy holy name. May we never forget that all that we hath
has been given us by Thee, and may we use Thy blessings and all
these opportunities for the honor and glory of Thy name; and to our
thanksgiving, Almighty God, we add the confession of our sin.
Many
of our people have set at nought Thy laws, they have broken Thy
Sabbaths, they have despised Thy Word; righteousness has been In
many places set aside, we have seen corruption in municipal life,
corruption in commercial life, corruption in political life, corruption
in business life; we have seen the rights of the widow and the
orphan set aside, cet at nought, trampled under foot. For these, our
sins, Almighty God, we make our humble confession before Thee, and
we supplicate Thy forgiving mercy and grace.
And now we ask for Thy blessing upon this people; may it be a
wise and understanding people, recognizing its position and its part
and its duty, and fulfilling the trust which Thou has committed unto
it.
May this great nation seek to understand Thy will and to remember that all its blessings come from Thy hand and all its mercies
flow from Thy loving providence.
And may It seek not only to be
great and strong, but to be wise and humane and generous and gentle
are at
of the world.
We pray, Almighty God, that there
be high aims and noble endeavors among our people in all classes,
in all ranks and all conditions of men.
We pray that these people may
be bound together not only by a common interest, but by a common
noble aim which may lead them like a pillar of cloud by day, a pillar
among the people
may
of fire by night,
of endeavor to another, ever setting before it the noblest, the highest
May
and the purest aims.
of the weak, of the
it
seek to be the protector of the poor and
of the orphan.
May its great power
widow and
be exercised always for righteousness, for uprightness, for Integrity
and for the common weal. May its temples of business be also temples
wherein righteousness and justice and kindness reign and rule supreme.
we beseech Thee, Almighty God, live according to Thy
whether we eat or drink, whether we buy or sell, may we do all
to the glory of God.
May we serve God not only on Sunday, but on
all the days of the week.
May we recognize that the spirit of
religion must be over all we do, in commercial life, In business life,
as well as In our religious life.
And so may this great body here
assembled be a great power for righteousness, for good and for truth
in this land.
Grant these things we beseech Thee, Almighty God, and
pour out upon us the spirit and wisdom and understanding that all
things may be ordered and settled in this land upon the best and
purest foundations, so that peace and happiness, truth and justice,
religion and piety, may be established among us for all generations.
These things we ask in His name Who has taught us to pray and
say, Our Father Who art in Heaven, hallowed be Thy name.
Thy
kingdom come Thy will be done on earth as it is in Heaven. Give
us this day our daily bread, and forgive us our trespasses as we forall of us,
will;
who trespass against us. And lead us not into temptation,
but deliver us from evil, for Thine is the kingdom and the power and
the glory forever and forever.
Amen.
give those
The President The bankers
of Washington City have
been saying to us that they were glad to see us. They
will now tell us how glad they are to see us through
Mr. John Joy Edson, President of the Bankers' Association of the District of Columbia.
:
nth, J2th and
13th.
Address of Welcome by John Joy Edson, President
Bankers' Association of the District of Columbia.
Mr. President and Members of the American Bankers'
Association:
The American Bankers' Association has held
thirty
annual Conventions since its organization, and this is
the first time the City of Washington has been selected
as a place of meeting.
You have generally selected
financial, commercial and manufacturing centers, which,
no doubt, have proven attractive and instructive as well
as pleasurable.
We
year
of
Washington are extremely
we have
members
the
gratified that this
the pleasure of receiving and entertaining
of the Association at the National Capital.
While you are the special guests of the Bankers'
Association of the District of Columbia, the citizens of
Washington all unite with us in extending to you an
earnest and cordial welcome.
Although commerce and manufacturing will not appeal to you here, there are other features, not existing
in other cities, that will attract
your attention.
Washingon has become a center of art, literature,
schools and universities, including all the departments
of science, and above all it is the seat of the Government
of the greatest republic in the world.
various
educational
institutions
are
Students in the
furnished unsur-
passed opportunities to study the science of government
Their
legislative, executive, judicial and diplomatic.
instructors are largely those holding high positions in all
branches of the Government, which fact is a distinctive
practical advantage.
Moreover, students generally have
an excellent opportunity of observing the organization
and operation of the Government.
Washington also has become pre-eminently attracYou will find much that
tive as an ideal residential city.
is unique and instructive and in which you as citizens
of this country have taken a personal interest and pride,
not only in what already exists, but in what is further
to be promoted, on national lines, as the best and most
appropriate for the beauty and dignity of the Nation's
—
Capital.
through the ages.
And now, O Lord, in particular we Invoke Thy blessing upon this
convention here assembled. Grant, we pray Thee, Almighty God, that
it may recognize its responsibility,
that It may realize its power,
that it may see its opportunity, that it may be led on from one height
May
WASHINGTON, OCTOBER
IN
National Theatre.
The Convention was
Proceedings*
of
The Bankers' Association of the District of Columwas organized June, 1901, and has a membership con-
bia
sisting of twelve National Banks, four Trust Companies,
—
Banks and five private banking firms in
numbering twenty-five. We have found the organ-
four Savings
all
ization productive of great good, not only in banking
methods and procedure but in individual association,
and in the establishment of cordial intercourse between
While we are fair, straightforward rivals,
its members.
are all friends. By reason of this Association we
entertain for each other a higher respect we sympathize
with each other in mishaps and glory in each other's
we
;
progress and prosperity. We know that the success of
each institution insures for all the highest confidence
and the best attainable service for the community.
In 1861 the population of the District of Columbia
was
year
75,000.
is
By
the police census
taken in April of this
total popu-
shown an increase of 248,000 and a
lation of 323,000.
The National Currency Act was passed
1866, immediately after the war, there
in 1863.
were in
In
this city
National Banks, with a capital of $1,350,000, deposits of $1,448,000 and surplus and undivided profits
of $259,000, with resources and liabilities of $7,131,000.
In September, 1905, this year, in the last reports called
for by the Comptroller of the Currency, it is shown that we
have twelve National Banks and four Trust Companies,
with a total capital of $11,027,000, individual deposits
of $40,000,000, surplus and undivided profits of $6,500,000,
five
BANKERS' CONVENTION.
100
with resources and liabilities amounting to $70,000,000.
These figures do not include Savings and private Banks,
which do not report to the Comptroller of the Currency,
and which if taken into account would add to the sum
of deposits several millions of dollars.
The first Trust Companies were organized in 1889.
There are four now doing business in the District of
Columbia. They are the only Trust Companies in the
United States organized under the laws of Congress and
which are placed under the supervision of the ComptrolReports are called for not less than
ler of the Currency.
five times a year, and two annual examinations are made
by Bank Examiners, the same as required for National
Banks.
This relation to the National Government is of great
advantage to the companies and to the public.
We believe that while a considerable portion of the
increase in the volume of deposits is attributable to an
increase of population, as shown by the last census, and
growth of all branches of business, it is certain,
from an analysis of the figures given, that it is due also
to a large increase in the percentage of population which
has acquired a knowledge of and confidence in banking
3ufQcient at least to open accounts and do a checking
The results attained by the American Bankbusiness.
ers' Association have long since proved the wisdom of
its foundation.
The deliberation and adoption of measures that tend to the best banking methods and involve
the highest principles of banking, and lessons learned
from addresses and papers by members of the Association and others eminent in finance, have increased public
confidence and accuracy in transacting business.
This year some of the subjects on the programme for
discussion are " Practical Banking Questions," " The
Examination of Banks," " Our Commerce," " The Currency Question," " The Scotch System of Banking," " Accounts Opened by Two Persons," " The Growth and
Status of Trust Companies in the United States," " Reand
lations Between Banks and Trust Companies "
" Trust Company Loans and Investments."
These subjects illustrate the scope and character of the instructions given to the general public and particularly to
to the
those interested in the
management
of financial institu-
tions.
The
meeting of the members and the acquaintance-
ship formed at these annual conferences have been also
a great factor in establishing
and increasing confidence
and good banking.
The
sver
last report
made by
the Comptroller shows that
one-sixth of the total individual deposits
in
Na-
Banks in the United States, including Hawaii and
Porto Rico, were held by banks in New York City, and
that over one-fifth of total deposits and amounts due
to banks and Trust Companies combined were also held
tional
in that city.
This statement, among other things which might be
mentioned, clearly demonstrates that New York City is
the financial center of the country.
Its weekly statements of the condition of National Banks in New York
is the financial barometer that is regularly looked for
and carefully examined throughout the country.
It is a
good indicator of the general financial situation and a
reliable guide.
deem it also fair to say that there are no abler bankmore patriotic citizens than the presidents of
National Banks in New York.
While of late, unfortunately, wrongdoing has been
discovered to some extent in Federal and to a startling
degree in municipal affairs, and in corporations in some
I
ers
or
hanking there has never been a period
our history, so far as I am aware, when fewer errors
and less misconduct have been committed or more universal confidence prevailed. Of course this statement is
made taking into full consideration the vast increase in
the volume of banking business and in the greater number of men engaged as officers and employes in positions
lines of business, in
in
9f absolute tTU8t.
As a logical outcome of this favorable banking condiand of the good work of the American Bankers'
Assciation, and the high estimate we place upon the integrity, ability and cautious action of our leading bankers, what twenty-five or forty years ago would inevitably impair confidence and cause a panic would to-day
tion
only create a ripple on the financial surface, with no
serious consequences.
Let us hope that no act of any
man or set of men will be done to impair in the least
degree this most desirable situation in the banking world.
In closing I wish to assure you, one and all, of the
happiness it affords us to welcome you here and to con-
way in our power to your entertainment,
comfort and pleasure. We hope that every moment may
be enjoyable and that you may at the end of your visit
have a safe return to your respective homes and share
with us in future the pleasant memories of your brief
sojourn as our guests in Washington.
The President We will next have an address of welcome on behalf of the Board of Commissioners of the
District of Columbia by its president, Hon. Henry D.
McFarland.
tribute in every
:
Address of Welcome by Hon. Henry B. F. MacFarland, President of the Board of Commissioners
of the District of Columbia.
The National Capital most heartily greets you. You
are welcome personally and as the representatives of our
in material progress.
Your indispensable and
honorable service to our country, through its financial
leaders
and commercial
of
interests, entitles
you
to the hospitality
its political center.
Here at the home of the National Government, in
sight of the Treasury Department, the heart of its financial system,
you can
survey the splendid record
Here it has been recorded
in deeds as well as in words, which again and again have
sustained the national life in struggles and crises. Here
too, has been enacted the financial legislation under
which you have done your work, and here is the headquarters of that supervision over the National Banks
which has been of inestimable value to them as well as
to the public.
Here the great waves of financial heresy
have broken against the rock of public credit which has
been maintained, ever since it was set up by George
Washington and Alexander Hamilton, by the best of our
statesmen, and always with your support.
What if it
was self-interest which first prompted that support?
Happy are those whose self-ihterest coincides with the
interests of the Republic and whose self-service becomes
patriotism. As yet no monument has been raised in the
parks of Washington to the men who have saved the
country by saving its honor, and the credit without which
it could not have lived.
Among the soldiers and sailors
whose statues abound even near the Treasury Department Alexander Hamilton should stand in enduring
bronze, and Robert Morris and John Sherman and others
like them of either century should have such honors
here.
But meanwhile their results speak for them and
the intelligence of the nation delights to honor them.
As you go about our beautiful Capital, yours as much
as ours, with all its memories of great men and great
acts, you will see frequent evidences of what financiers
have done for their country, just as you will see here as
elsewhere how financiers have contributed with public
spirit and philanthropy to the highest interests of the
community in which they live. Our Rock Creek Park
and our Corcoran Gallery of Art are but two of the visifittingly
of the bankers in our history.
ble proofs of the civic service of
You
Washington bankers.
our counNational Capital should be made in every
respect the most beautiful in the world.
When the Pilgrims set foot on Plymouth Rock modern
banking was just beginning. The seed of freedom in
three centuries has reached no greater growth than the
seed of finance. Those who planted both seeds were men
of faith who taught by example that men should walk
by faith rather than by sight. They were practical men
who know that sentiment rules the world. The marwill all share our desire, the desire of
try, that the
"
BANKING SECTION.
101
velous commercial organization which is the characteristic feature of our civilization absolutely depends for life
Annual Address of E. F. Swlnney, Presiden
American Bankers' Association.
upon the sentiment of credit. Its gigantic achievements,
undreamed of in the older time, are possible only because
of the network of banks, which is the nervous system of
commerce and which has knit all peoples together with
invisible bonds stronger than any that can be seen. You
have taken even invention that quickens communication
as well as every form of human ability as your servant
in the task of making money, which, consciously or unconsciously, is the task of making the world move forward to greater things. By conservative innovation you
have brought the nations to mutual efficiency, mutual acquaintance, and that far toward mutual good will. Wars
cannot be made without you and you are recognized as
of this Association have been held
the East, West, North and South, but
prior to this never before in the Nation's Capital. We
have been entertained by the princely hospitality of the
world's greatest metropolis and the Golden Gate has
swung wide to bid us welcome, but to-day for the first
the great peacemakers.
International justice is to be
established as the substitute for war by you quite as
much as by statesmen and jurists. You control an un-
equaled force in the affairs of men. It is your highest
honor that, making all due allowance for exceptional
cases and individuals, it can be truthfully said that your
mighty power is in general used for the advancement and
enrichment of mankind.
Your power and your character and your record naturally suggest that you should have a leading part in
that moral renovation in the business world, especially
with reference to fiduciary relations, which recent revelations make imperatively necessary. Once more, but in a
new way, you must restore impaired confidence to the
people, this time by convincing business men of other
minds not only that honesty is the best policy, but that integrity is more precious than money, and vital to the Republic.
The old-fashioned commercial honor, finer than
that of any chivalry, must be re-enthroned and you are
the men to do it. In such an effort, as in your patriotic
endeavors of every kind and in your zeal by international
peace through international justice, for international welfare, you will have the inspiring leadership of the foremost American, the chief pride of the National Capital,
Theodore Roosevelt, President of the United States.
Reply of President Swlnney to Addresses of
Welcome.
On
behalf of the American Bankers' Association I
beg to make grateful acknowledgment of your cordial
welcome
While it is your personal
large hospitalities are peculiarly in the
keeping of yourself and other residents of the district in
to this Capital City.
home and
its
the broader sense of our national life, we feel at home
Washington City. To the politician it is the temple
of fame that shines afar in his imagination and ambiin
It is the Mecca toward which he ever looks with
longing eyes.
Some of us so-called " men of affairs
doubtless have felt the yearning that our constituents
might have the appreciative sense of merit to send us
here at the public expense or that the President might
have the wisdom to invite some of us to come hither to
tion.
take charge of the reserve fund in the Treasury. Despairing of that, we have taken advantage of reduced rates
and come at our own expense to tell Congress, Secretary
Shaw and the Comptroller of the Currency how to run
the Treasury and take care of the finances of the nation.
If at the conclusion of this Convention the Republic is
not safe we will return to our respective homes with the
firm conviction that our suggestions have not been heeded.
Of one thing we are glad, and that is that Congress is
not in session, as thereby we attract more personal attention
pitality
and more largely share the unappropriated hosof the city and have freer access to its accu-
mulated " refreshments."
We do not crave the freedom of the city or care to
have its keys delivered over to us. Where there is too
much
liberty indulgence
may
take the place of healthful
and if anything should be missed while we are
might be attributed to the men who carried the
restraint,
here
key.
it
We
prefer to trust ourselves as guests to the safer
guardianship of your well-known discretion in dealing
with untamed Congressmen and untrained statesmen.
The Conventions
in the cities of
time we meet at the fountain head of this great Government. The heart of every true American swells with
justifiable pride when he reflects on the history of this
city.
A little more than a century ago it was but a barren place; less than a hundred years ago it was sacked
and burned in war. To-day no capital in the world is
a more potent force for peace and none more feared in
war none more beautiful in its arrangements and archiIt is the city of our fathers, of
tectural adornment.
ourselves and of our children. Here no narrow sectional
no borders of
lines divide us into parties or factions
States make us New Yorkers, Kentuckians or Oregonians,
but we are all Americans. We realize, as never before,
that this Government of ours is indeed a National Government and not the weakly governmental force of separated and jealous States. We have a common pride in
the names of Jefferson and Jackson, of Lincoln and
Grant and Lee, and of that splendid galaxy of other
distinguished statesmen, soldiers and patriots who have
builded these United States on such everlasting founda;
;
tions.
To bankers
is
Washington of especial
whole financial history of the country
interest.
The
is closely inter-
woven with it. Here the country's financial laws are
enacted and from here enforced. It was the seat of the
first great bank of the United States and is to-day the
headquarters of the largest banking institution in the
country the Treasury of the United States. The National Banks of the country look to Washington for their
The man
legislation and largely for their government.
of all men who comes nearest being the arbiter of their
destinies, the Comptroller of the Currency, issues his
orders from here. It is, therefore, more than an ordinary honor and one which any man should be proud of
to be called upon to preside over the Thirty-first Convention of the American Bankers' Association in the
great City of Washington.
The purposes and objects of our gathering are too
well known for me to dwell upon. In the technical sense
of the term our Association is not one " organized for
pecuniary profit," and yet in a broad sense it leads to
that end. By the interchange of ideas, by listening to
the speeches and papers, by the meeting of the brightest
and best bankers and learning their manner and methods
of banking, each of us returns to his place of duty better qualified to conduct his business for the benefit of
stockholder and depositor. The day has passed when a
successful banker can be a man who rests content to be
merely acquainted with the highest interest rates obtainable in his given locality and the financial responsi-
—
bility
of
his
neighbors.
Time was when banks and
bankers were merely thermometers registering the local
financial atmosphere of the country, but to-day in the
larger sphere of business undertakings they largely create that atmosphere. No better illustration of this can
be given than the attitude of the bankers during the
disastrous silver craze. To the American bankers more
than to any class of business men is due the fact that
the country did not go irredeemably astray on the question of the monetary standard.
Largely by reason of
National and State associations the bankers were better
acquainted with the question than any other class of
men and acted more nearly as a unit in its correct solution.
And in the bringing about of such a happy result
these meetings have been of tremendous aid. I cannot
too much disparage the too prevalent notion that our
meetings and conventions are merely the assemblages of
good fellows for a good time and are not of practical
benefit.
They are practical and of wide-spread benefit.
The business of the Association during my term of
;
BANKERS'
102
be given you in detail through the reports of
the Secretary, Treasurer and the various committees.
When elected President a little more than one year
ago I asked and expected the loyal support of every member and officer of the Association. The success or failure
of the year's work depended on this. It is a great pleasoffice will
ure at the year's end to state that such support has been
and loyally given. I would bespeak my thanks
and those of the other members of the Association to the
Secretary and Executive Council for their work so faithfully and conscientiously done, work that will be more
fully appreciated when the detailed statements of such
work are laid before you.
faithfully
Since our last Convention death has been
among us
and there have gone to the great beyond two often honored and now highly revered by this Association General Charles Parsons, of St. Louis, and Mr. Joseph C.
Hendrix, of New York. Mr. Parsons was born in New
York State, but hardly before attaining his manhood saw
the advantages of the then Far West for a young man
with no capital but an honest determination to build
—
for himself a name.
sixties
and
He
settled in St. Louis in the early
for almost forty years
had been at the head
of one of the most solid institutions in that place. He
was one of the original number of bankers who met at
Saratoga and organized the American Bankers' Associabeing chosen President of the Association a few
years later.
He died only a few weeks ago, leaving a
tion,
name
that will be honored so long as history tells of the
aided in building and maintaining the high
standard of men in that great Western city.
Since my boyhood I had known Joseph C. Hendrix.
man who
CONVENTION.
brought upon the high office of President of the American
Bankers' Association, the banking profession in general
and good citizenship everywhere by the felony of one who
was so honored by us, held in such esteem and now justly
occupying a prison cell. By his own voluntary act he
stabbed in the back the financial institution of which he
was the head and exchanged an honored career for a
criminal record.
men to whom I have referred serve
moral or adorn a tale " the former as a
model and an incentive; the latter as a warning and an
The
lives of the
—
to " point a
admonition.
We
have cause to congratulate ourselves upon the
abundant evidence that the past year has been in the
main marked by prosperity in all lines of business, and
comparatively few bank failures have occurred. All such
periods have, however, produced a feeling of overconfidence and led to the floating of unsound industrial enterprises. The few bank failures of the past year are most-
made to such enterprises or
The present statutory provisions of the
ly traceable to excess loans
their promoters.
National Banking Act limiting loans to any one individper cent, of the capital stock
of the lending bank seem to be inadequate. I would recommend a change in the banking laws permitting banks
to loan one-tenth of their combined capital and surplus
to one individual, firm or corporation, and provide suitable penalties for any bank violating the law. At the
same time I would recommend that any funds passed to
surplus be reported to the Comptroller of the Currency
and be not thereafter allowed to be in any way impaired
ual, firm or corporation to 10
He left his newspaper career to
become Secretary of the Brooklyn Bridge Company, then
to be Postmaster of the city of Brooklyn.
His sphere
of usefulness widening, be was elected a member of
Congress, where in Washington, as in Brooklyn,
he measured up to the full standard of a statesman. Some
of
under the same penalties and conditions as now prescribed for impairment of capital stock. These amendments would tend to remove the incentive to excess loans
and also provide a larger loaning power to the banks.
Similar provisions in State laws could and doubtless
would be enacted. A much more serious abuse lies in
the not infrequent acts of managing officers of banks making large discounts to themselves out of the banks' funds.
It is an observable fact that in a great number of bank
failures there have been found among their assets the
worthless notes of high officers of the bank for large
loans, frequently without any security at all or with
" straw " security which proved to be absolutely worthless.
This is a most flagrant and reprehensible violation
It Is the esof law, to say nothing of business ethics.
the leading financiers of New York saw and
appreciated
his sound financial ideas and business methods
and he
sence of personal dishonesty. It is a wanton disregard of
the fundamental conceptions that such officers are the
He
fame and reaped his honors in the East,
but we of the West are proud of him as a Western
product, for it was in the West that he was born and
spent his early days. When scarcely more than a boy
he left his native State of Missouri and sougbt fortune
in the activities of New York.
His first work there
was as a reporter on one of the leading dailies and it
was done so well that he was gradually advanced to the
attained his
position of night editor.
was called upon to become the head of the second largest
banking institution in America. He was long a member
of the Association and its Executive Council
and served
one term as its President. Without disparagement
of
any man it can be said that no man ever contributed
more
materially to the success of our Association
than our
deceased ex-President. In business he was
regarded as
a man of cold, calculating facts, but no one
could ever
have any dealings with him without
appreciating his
high business ability and his utter contempt
at all times
for any of the little things so often
found, unfortunately,
in men holding the highest positions.
We all recall with
pleasure his ready wit, appropriate
anecdotes and forceful talks
made
at our annual Conventions and at
Counlife and career will spur
many a young
man on to success and forever give the lie to that
false
notion so many have that in this age
merit
cil
dinners.
His
is
not fully
rewarded and no great success can be attained
without
"influence," for Joseph C. Hendrix attained
for and
by himself a name and fame that will not
soon perish
his own individual efforts and abilities
were the only influences he possessed.
I wish I could say such words of
praise of another one
recently honored with the Presidency of
the American
Bankers' Association, or could refrain from speaking
of
him at all. I cannot in justice to the truth do the
former and I cannot without a sense of cowardice do the
latter.
I think I ought to voice the deep sense
of chagrin
and shame that every member here
feels at the disgrace
chosen guardians of a trust fund. It opens wide the door
to peculation and fraud and it is a travesty upon legitimate banking. We should urge Congress to deal rigorously with these abuses by pronouncing them as felonies
with extreme pains and penalties; and we should urge
tbis Association and the State Bankers' Associations to
take this matter before their respective State Legislatures so as to compel protection where there is wanting official integrity and a proper sense of propriety.
On the ever present question of the country's currency system this Association spoke at San Francisco two
years ago.
The commendations of the Currency Committee are as applicable to-day as when approved, and this
Association should see that these recommendations are
carried to speedy success. We all agree that " quality "
and not " quantity " comes first. Largely through the influence of our Association, as I have already pointed out,
"quality" has been forever assured. No currency in the
world rests on a more firm and solid foundation to-day
than does ours. "On the question of " quantity " your
voice will be no less potent and eventually decisive.
Financiers differ as to the proper methods of assuring at
all times a currency ample but not redundant, elastic
" Asset curbut not capable of ulterior manipulation.
rency " and " emergency currency " are terms not yet
capable of exact definition. It has been said that " fools
often rush in where angels fear to tread." In considering this question let us not emulate the former nor arrogate to ourselves the wisdom of the latter, but as conser-
:
:
BANKING SECTION.
vative, patriotic business
aright,
men may we
solve the question
and having once made up our minds have the cour-
age to enforce our convictions.
In conclusion, gentlemen of the Association, I wish as
the most appropriate of words to voice the sentiment
which all of you must feel of good will and wishes for
the President of the United States, who, in the high office
which he fills with distinguished abilities, brings to bear
upon questions of public moment a profound sense of
patriotism and sincere desire for the nation's and the
individual's good. I am sure I utter your thought in hoping for him continued health and strength and unmeasured success in his high endeavors.
We congratulate him upon the happy and successful
outcome of his long, wise and patient labors to bring
peace to our unhappy and warring neighbors, and we express the hope that our country and our country's power
and greatness may ever find its highest field of usefulness
in promoting the arts and splendors of unbroken peace.
The President
I believe for the first time in the
existence of the American Bankers' Association we have
with us the representative of a foreign nation, engaged
in the banking business.
I would ask Mr. Blythe, manager of the Union Bank of Scotland, to come upon the
stage.
(Applause.)
:
The President: The next
:
is
the report of the Secre-
tary.
Report of the Secretary, Mr. James R. Branch.
September
1,
—
;
now awaiting
William
Rudolph, who, with George Collins, robbed the Bank of
Union, Union, Mo., and later on killed Detective Schumacher, was executed May 8, 1905, at Union, Mo. The
protective work of the Association last year cost $26,031.61, while for the year ending August 31, 1904, it cost
$34,282.44, a decrease of $8,250.83, although the membership is larger now than ever before. The expenses of the
teen of those arrested are
trial.
Protective Committee and the results of their work for
the last five years are as follows
Paid
members.
member.
5,392
6,204
6,043
7,563
7,677
$5.56
5.28
5.93
4.53
3.39
1901
1902
1903
1904
1905
Cost per
Total
expenses.
Arrests.
$29,973.20
54
32,781.11
56
41,145.61
50
34,282.44
75
62
26,031.61
The committee adopted this year a plan of issuing
monthly reports to members and the press of the country,
thus calling the attention of criminals to the fact
that the committee is relentless in its pursuit of depre-
who
operate against members. The Protective
Committee is a secret one, and a large part of the growth,
prestige and importance of the Association is due to its
dators
labors.
Sincere thanks are due its members for their earnest,
painstaking and important work their names being unknown, the only reward they can receive for difficult and
regular labors is the knowledge that their duties are well
performed and appreciated by other members of the Asso;
ciation.
EDUCATION.
The Committee on Education has organized
Resolved, That the American Bankers' Association, assembled in its thirty-first annual Convention, extends its thanks
to the President of the United States for his untiring efforts
and eminent services in the interest of humanity and civilization, which were so abundantly crowned with success in the
honorable treaty of peace at Portsmouth, and that this Association expresses its appreciation of the President's unselfish
action and courage in taking the initiative to restore to Russia
and Japan those peaceful relations that must of necessity make
for a greater and higher development of civilization and for
the betterment of mankind.
Mr. Jennings, of Florida
Mr. President, coming
from the far South, I want to reiterate and emphasize
the feeling that has been presented in the resolution we
have just heard read. Coming as I do from the Southland,
:
we
all love peace, and we love the President of the
United States. (Applause.) I would not feel satisfied
to remain silent here and hear the words of patriotism
that thrill all Americans without rising to second the
(Applause.)
The President: You have heard the resolution, and
think in a matter of this kind we should take a rising
1905.
To the American Bankers' Association.
Gentlemen: For two years the work of the Protective Committee has been conducted through the Secretary's office with a reduction of expenses.
During the
past fiscal year, ending August 31, 1905, the Pinkerton
National Detective Agency has obtained splendid results
toward suppressing crime for the Association. They
have captured sixty-two professional bank criminals,
thirty-five of whom have been convicted.
The total
amount of their sentences aggregates eighty-four years.
This does not include nine indeterminate terms and nine-
PRAISE FOR PRESIDENT ROOSEVELT'S SERVICES
IN BRINGING ABOUT PEACE IN THE EAST.
Mr. Pugsley
Mr. President, an event of transcendant importance, not only to humanity, but to the financial and commercial interests of the world, has recently
transpired in the little town of Portsmouth. Through
the initiative of the President of the United States,
through his wisdom, counsel, and splendid efforts, an
honorable peace has been secured to Russia and Japan,
a peace which means to this nation and to all civilized
countries, I believe, a new era of prosperity and commercial advantage and a new incentive for the nations
to submit their grievances to arbitration.
I believe, Mr.
President, that when a man has wrought a great deed
in a great way he is deserving of great credit, and I believe it is eminently fitting that this Convention should
pause in its deliberations to express its appreciation
of the magnificent work of President Roosevelt in the
interests of peace.
(Applause.)
I move you, therefore, Mr. President, the adoption
of the resolution that I am about to read
103
thirty-
seven chapters, an addition of twelve during the last
year.
The efforts of this committee have been toward
elevating the standard of educational work to even a
higher plane than it has occupied. The total membership
of the chapters is 5,350, being an increase of over one
thousand in twelve months. Fifty-one students have already passed preliminary examination in practical banking, eight in commercial law and thirty-six on political
economy.
There are 299 applications for preliminary
examination in practical banking, 178 in commercial law
and 199 in political economy. The promotion in the
banks in which they are employed of many clerks who
have taken an active interest in the work of these chapters shows that they are not only improving themselves,
but that the work of the Committee on Education is being recognized by the banks of the country.
UNIFORM LAWS.
resolution.
I
vote.
The
was unanimously adopted by a
resolution
rising
The Committee on Uniform Law has helped toward
the adoption of the Negotiable Instruments Law by States
which have not already taken it up. Kansas, Michigan,
Missouri and Nebraska have adopted it during the past
making a total of twenty-nine States now having
year,
vote.
The President
We
now
be favored with an address by Secretary of the Treasury, Honorable Leslie
:
will
M. Shaw.
"Trade Expansion," by Hon.
Leslie M. Shaw,
Secretary of the United States Treasury.
[Secretary Shaw's address in full will be found on
pages 81 to 84 of this publication.]
this
law on their
statutes.
BANK MONEY ORDERS.
Over six hundred members of the American Bankers'
Association are now using the form of ordei adopted a
year ago by the Association. One member, The American Bank, Manila, P. I., failed while sixteen money
orders,
amounting
to $1,175.
were
in transit.
These
or-
:
:
;
:
:
BANKERS' CONVENTION.
104
ders were promptly paid upon presentation by the
American Surety Company, which guaranteed them for
the profit obtained by selling orders at the rate of $5 per
This company is now selling orders to members
$1,000.
of the Association which can be filled in up to an excess
amount of $100 each, where formerly the limit was $25.
During the past year twenty-one State Bankers' Associations have indorsed the order and recommended its use
to their members.
THE CIPHEB
CODE.
The Cipher Code Committee appointed at the last Convention are entitled to the thanks of the Association for
their laborious and excellent work in compiling the best
secret code yet devised for the use of banks and bankers.
The need of the code was recognized by the chairman,
Mr. F. F. Blossom he compiled it and presented the
result of his labor to the Association.
Under the direction of the committee numbered codes have been issued
to every member of the American Bankers' Association
;
numerous
letters received
long-felt want,
and
is
show that the code
is filling
a
daily growing in importance.
THE SECTIONS.
The Trust Company Section is still advancing, and
membership has increased from 566
its
to 632.
The Savings Bank Section during the same period has
increased from 616 to 735 members.
EOUTINE WORK.
During the
special
letters
fiscal
year ending August
31,
DISBURSEMENTS.
$26,031.61
8,085.93
1,082.50
271.17
2,144.15
54.00
3,189.97
4,240.34
2,853.66
May 3, 1905.
19,528.32
Salaries
1,163.10
Expenses of Convention, 1904
6,103.89
Proceedings, 1904
1,794.67
Distributing Proceedings, 1904
3,099.99
Rent
1,421.00
Postage
709.24
Printing, stationery, etc
414.06
Sundry expenses
253.13
New York Telephone Co
225.60
20,000 programmes Convention, 1904
Frames and inserts for 1905 and 1906 and pulp
2,369.52
board
72.50
Typewriter in exchange
252.25
Traveling expenses of Secretary
56.25
Premium on officers' bonds
30.00
Dues returned to two members
Dues paid to 1906 returned to trustee of M. L.
10.00
Stewart & Co., Owosso, Mich
100.00
Petty cash
Amount transferred to Northern Trust Co., Chicago,
45,000.00
111
12,795.00
926 drafts charged back account dues 1904-1905
100.00
4 drafts charged back account dues 1905-1906
142,674.00
Balance, August 31, 1905
Standing Protective Committee
Committee on Education
Committee on Fidelity Insurance
Committee on Bank Money Orders
Committee on Cipher Code
Committee on Uniform Laws
Savings Bank Section
Trust Company Section
Executive Council meeting, New York,
$286,125.85
1905, 7,900
The President
and 111,000 circulars and reports have
been issued from the Secretary's
office.
The membership and resources
of
the
Association
have increased as follows
Annual
September 1, 1875
1.600
September 1, 1885
1,395
September 1, 1895
1,570
August 31, 1905
7,677
Interest on $10,000 Government bonds of 1925.
dues.
$11,606
10.940
12.975
127,750
400
I will also
ask Mr.
Van Vechten
to
read
:
it I
am
requested to submit the report of that committee as
fol-
is
Paid
membership.
:
the report of the Protective Committee.
Mr. Van Vechten The Standing Protective Committee
a secret committee,
lows
and not being a member of
:
Report of Protective Committee.
The Standing Protective Committee
of the
American
Bankers' Association respectfully submits the following
report
Making the
total
income
$128,150
During the past year 1,038 members were lost through
failure, liquidation, consolidation and withdrawal from
the Association. This reduced the membership September 1, 1904, to 6,525. One thousand one hundred and fiftytwo members have joined since that date. More members
joined the Association last year than ever before in the
history of the organization.
Their aggregated capital,
surplus and deposits now amount to $11,460,875,527.
my tenth consecutive terms as your Secrewish to thank most sincerely the officers, active
committees, members and the clerical force in my office
for their earnest and cheerful co-operation
without
which such progress would have been an impossibility.
In closing
The
detailed financial statement of the committee for
the year ending September
1,
1905, is as follows
DETAILED FINANCIAL STATEMENT OF STANDING PROTECTIVE
COMMITTEE.
RECEIPTS.
September 1, 1904, by balance
$3,761.64
September 16, 1904, appropriation of Executive Council
20,000.00
at New York
May 3, 1905, appropriation of Executive Council at
New York
20,000.00
$43,761.64
tary, I
,
Respectfully submitted,
James
It.
Branch.
DISBURSEMENTS.
September
tective
1,
1904, Pinkerton National De-
Agency
20.000 rules of Protective Committee
7,500 pamphlets
Second National Bank, Brownsville, Pa.,
refund case, forger A. E. Smith
$25,871.03
10.00
64.00
86.58
Secretary.
The President
:
We
Treasurer, Mr. Ralph
will now listen
Van Vechten
to the report of the
26,031.61
August
Paid
Report of the Treasurer, Mr. Ralph Van Vechten.
New York, September 1, 1905.
RECEIPTS.
Last balance, September 1, 1904
$102,397.74
Interest on $10,000 4 per cent Government bonds of
1925
400.00
Proceeds sale of four copies of Trust Company forms
48.00
Proceeds sale of Trust Company Section Proceedings,
1896-1903
663.75
Amount paid account Dr. Geo. Marsland
58.20
Rebate account bill of Stumpf & Steurer, and stenographer and typewriter
591.77
Amount transferred from Northern Trust Co., Chicago, 111., to National Bank of Commerce in
New York
45,000.00
Dues from 1152 members, 1904-1905
15,851.39
Dues from 1582 old members paid in advance to
September 1, 1906
27,440.00
5764 bills for membership dues for the ensuing
year, deposited with Commercial National Bank,
Chicago 111. (subject to deduction of unpaid bills)
93,675.00
.
$286,125.85
1901
1902
1903
1904
1905
$17,730.03
31, 1905, balance..
members
member.
Total
expenses.
5,392
6,204
6,943
7,563
7,677
$5.56
5.28
5.93
4.53
3.39
$29,973.20
32,781.11
41,145.61
34,282.44
26,031.61
Cost pet
Arrests.
54
56
50
75
62
The meetings of the committee have been regularly
attended by each of its members, and over seven thousand
reports and communications have been considered during
the past year.
It has been the purpose to conduct its operations at
the least possible cost to the Association consistent with
accomplishing satisfactory results.
The committee asks the co-operation of the members
an endeavor to secure an amendment to the Penal Codes of each State providing for the
more severe punishment of the " Yegg " burglar, as this
class of criminal is the severest menace to the members of
of the Association in
the Association distant from the centers of population.
The committee recommends the adoption
of the
amend-
:
;
—
a
:
BANKING SECTION.
ment
to the constitution prohibiting the
compromising of a
On motion
105
Mr.
of
Mulvane the resolutions were
crime either by the committee or a member of the Asso-
agreed
ciation.
The reading of the balance of the
report of the Executive Council will be postponed until
to.
The President:
Realizing the advantage to the Association of an adequate knowledge on the part of criminal classes of the
probability of prosecution for attack on member banks,
your committee has endeavored to give the largest possi-
We
ble publicity to the successful results of its operations.
take this occasion to thank the press of the country for its
in carryaid, and we ask the co-operation of the members
ing out this policy.
The committee takes this occasion publicly to acknowledge the conscientious and laborious work of the Secrein
tary in the faithful performance of his arduous duties
connection with the protective work of the Association.
The committee desires to express its appreciation of
Pinkerton
the untiring efforts and effective work of the
Associathe
of
interest
the
in
Agency
National Detective
the
during
operations
of
tion. Their report of the details
past year is submitted in printed form.
Very respectfully,
Standing Protective Committee.
On motion of Mr. Mulvane the above reports were
referred to the Auditing Committee.
The President: The report
of the Executive Council
by Mr. G. S. Whitson.
Mr. Whitson read the portion of the report relating
to proposed changes in the constitution.
Report of Executive Council, by Mr. G. S. Whitson.
[The report of the Executive Council will be found
given in the Second Day's Proceedings, on page 106.]
will be read
ADOPTED.
CONSTITUTIONAL AMENDMENTS
The President You have heard the report of the Executive Council regarding the proposed changes in the
It takes a two-thirds vote to change the
constitution.
:
to-morrow. We will now have an address by Mr. Frank
A. Vanderlip, Vice-president of the National City Bank
of New York.
Mr. Vanderlip delivered the following address.
Problems Connected with Increasing Gold Supply,
by Frank A. Vanderlip.
[Mr. Vanderlip's address
94 to 96 of this publication.]
will
be
found on
pages
SESSIONS TO BE HELD AT COLUMBIA THEATER.
The President announced that the National Theater
would not be available for the subsequent sessions of
the Convention, and stated that two places might be
secured one, the large hall on the tenth floor of the
Willard Hotel, and the other the Columbia Theater.
On motion the Columbia Theater was chosen for the
further sessions of the Convention.
The President
Some of you may not be personally
acquainted with the next speaker. National bankers,
however, are pretty well acquainted with his signature,
attached to communications calling their attention to
large overdrafts, past due paper, and section 5200 of the
Revised Statutes of the United States. I beg to introduce to you Mr. W. B. Ridgley, Comptroller of the Currency, who will address you upon the subject of examina:
:
tion of banks.
(Applause.)
,'The Examination of Banks," by Hon.
Ridgely, United States Comptroller
Wm.
of
B.
the
Currency.
[Mr. Ridgely's address in full will be found on pages
84 to 86 of this publication.]
The President
Before adjournment we will have
time to listen to the report of the Committee on Uniform
:
What
constitution.
shall be
done with the recommenda-
tion?
Laws.
On motion
the proposed changes were agreed
to.
MEMORIAL RESOLUTIONS ON DEATH OF MEMBERS.
A committee, of which Mr. Robert J.
The President
Lowry is Chairman, was appointed to draft memorial
:
resolutions on the death of one of our members. I will
ask Colonel Lowry, Chairman of the committee, to read
that memorial.
Mr. Lowry I will ask the Secretary to read it.
The Secretary read the following
[These resolutions will be found in the report of the
Executive Council under the Second Day's Proceedings, on
page 106.]
On motion the resolutions were agreed to.
The President The committee of which Mr. Walker
Hill is Chairman was appointed to draft resolutions on
the death of Mr. Charles Parsons. I will ask Mr. Hill to
:
:
read those resolutions.
Mr. Hill read as follows:
Whereas, The American Bankers' Association has heard with
profound regret of the death, September 15, 1905, of Charles
Parsons. President of the State National Bank in St. Louis
therefore, be
it
Resolved, That the following tribute to his memory be spread
upon the minutes of this Convention, and a copy be engrossed
and forwarded to his family
Charles Parsons was one of the founders of this AssociaHe served as President in 1890-1891,
tion at Saratoga in 18Y5.
and at the time of his death was ex-officio member of the Executive Council.
After an honorable military career during the Civil War
Mr. Parsons entered the banking business in St. Louis, where
for nearly forty years his name has stood for all that is wisest
and best in his chosen field of labor, and his influence and character will be missed by those who held the privilege of his
friendship, for it is well known that his record and attainments
bad achieved for him a national repute, and had he so desired
he might have been honored high in the service of his country.
To those who knew him his life will ever be a sacred lesson,
as that of one who by his learning, his wisdom, his integrity
and his purity has achieved the highest ideal in a vocation
which will ever demand the best in heart and brain.
:
Walker
Hill,
Jas.
Fohgan,
B.
Dumont Clarke,
R. H.
F.
P.
Rushton,
Neal.
Committee.
The Secretary read the following
Report of the Committee on Uniform Laws, by
Frank E. Tracy.
The Committee on Uniform Laws begs leave to report that during the past year four States have been
added to the Roll of Honor of States with the Negotiable
Instruments Law on their statute books namely, Kansas, Michigan, Missouri and Nebraska.
In each of these
States the history of success is practically the same
—
—
united effort on the part of the State Bankers' Associa-
with the strong undivided efforts of a few
In other States just as strong efforts
were made, and in some the seed has been planted which
will unquestionably bear fruit at the next session of the
Legislature.
In some almost unsurmountable difficulties
were encountered, and it will take hard and painstaking
work to wear these away. It is sincerely hoped by this
committee that the different State Associations will keep
hammering away, educating the people and legislatures
until the merits of this law will become so clear that in
the length and breadth of our beautiful land there can
be but one construction of a piece of negotiable paper.
In the different States whose legislatures met during the
past year, a brief notice of the reports may be of interest.
In New Hampshire it appears the State Association has been disrupted through differences over local
matters, and as this committee can only act through State
Associations, nothing was done there.
In Indiana a strong effort was made to pass the bill,
both by the Bankers' Association and by the Bar Association, but they could not get any intelligent considera-
tion, together
leading bankers.
tion of
it.
In Illinois about the same opposition was encountered.
The Chairman of this committee was one of a committee
which laid the matter before the Governor and Speaker
of
the
House,
but in each
instance
—
the
opposition
more negative than positive was such that jo effort was
made to pass it. The feeling of the State Association is
such, however, that
law
is
we know
considered on
they will not quit until the
its merits.
:
:
BANKERS' CONVENTION.
106
In Georgia the State Association carried matters
along nicely, and the bill would have unquestionably
passed had it been reached on the calendar there seems
no doubt of its passage at the next session.
In Arkansas the State Association made a thorough
canvass of the Legislature and found such strong opposition that it was decided best to drop the matter for
;
this session.
In California, South Dakota and Minnesota no efforts
whatever have been made.
It is urged by this committee that each State Association should take hold of this matter long in advance
of the session of the Legislature, in order that each
mem-
may
be properly approached.
States are now acting under the Negotiable Instrument Law
ber
The following
Maryland,
Virginia,
Rhode
Jersey,
Idaho,
Kentucky,
Kansas,
Michigan,
Nebraska,
Louisiana,
Missouri.
;
and
I
thank
The Association has added largely to its roll, and our
expenses have increased in consequence thereof, but the
net result on the credit side of the ledger is about $40,000
—the
largest, I believe, in the history of the Association.
Inasmuch as the Constitution will not permit the
names of the Protective Committee being made public, I
think
but just that attention should be called to the
it has
accomplished, and notwithstanding
the increase in membership and labor in consequence
thereof, the amount expended is some $8000 less than the
preceding year. A committee appointed by the Chairman
it
work that
with the resolution passed September 16,
and report at the next
Article 2,
Section
1.
any regular meeting," and
Omit the words
" those
present at
insert In their place " the Executive
Council."
Arizona,
Ohio,
Pennsylvania,
Montana,
instances
it.
:
Washington,
North Dakota,
Island,
for
many
meeting of the Council recommends the following changes,
which are respectfully submitted
Oregon,
Iowa,
their laborious nature in
them
1904, to revise the Constitution
District of Columbia,
Wisconsin,
Tennessee,
Utah,
past year has been a most successful one. Each and every
committee has not only cheerfully assumed but faithfully
carried out the duties imposed upon it, notwithstanding
in accordance
Colorado,
New York,
Massachusetts,
North Carolina,
Connecticut,
Florida,
New
:
:
As the Constitution stands at present there is no way
member or erase his name from the rolls
to discipline a
of the Association except by a two-thirds vote of the Convention.
The above change would
delegate this authority
to the Council.
Frank
Homer
J.
E.
Tkacy. Chairman,
A. Miller,
D. Power,
Committee.
ADJOURNMENT.
Thereupon the Convention adjourned until Thursday,
October 12, at 10 o'clock a.m., at the Columbia Theater.
reads: " Said committee (Protective Committee) is prohibited from compromising or compounding with the parties charged with crime, or with
their agents or attorneys."
Article
4,
Section
The committee recommends that same be changed to
read as follows
Thursday, October
The Convention was
parties charged with crime, or with their agents or attorneys, a
case once committed to the Association which results in the apprehension of the criminal.
12, 1905.
called to order at 10 o'clock
member of the American Bankers' Assofrom compromising or compounding with
Said committee, or a
ciation, is prohibited
SECOND DAY'S PROCEEDINGS.
3,
a.
m.
by the President, Mr. E. F. Swinney.
PRAYER BY THE REV. T. S. HAMLIN.
Almighty God, we thank Thee for the beauty and glory of the
morning, for the rain that Thou didst send to refresh the thirsting
ground, and for the sunshine that this morning gladdened our eyes.
We thank Thee for the rest of the night, for health, and all the
blessings with which the morning is crowned, and we entreat Thy
blessing upon these men who have gathered for the business of this
day.
Grant that all their councils may be overruled by Thee and
that they may so deliberate and plan and execute as to promote
the interests of those for whom they stand as representatives.
We
recognize as from Thee that great and permanent measure of Integrity
and honor that has marked the financial institutions of our country,
and while we deplore all lapses from this high standard, we entreat
Thee that Thou shalt so instruct and so strengthen the will that
men may be able to execute trusts committed to them with perfect
fidelity, that those who trust the institutions of the country in which
they place their earnings may receive the due return for that which
they deposit, and that there may be throughout all our banks and
nothing in the Constitution to prevent members
making compromises of the above
nature, and such action on the part of members on several
occasions has seriously interfered with the work of the
committee.
Would it not be a good thing to insert a
clause in the Constitution not only prohibiting the Pro-
There
is
of the Association from
tective Committee from compromising or compounding
with parties charged with crime, but also members of the
Association after once having turned a case over to the
Protective Committee for
its
investigation?
MEMORIAL TO JOSEPH
C.
HENDRIX.
A committee composed of Messrs. Robert J. Lowry,
Chairman, and Myron T. Herrick, M. M. White and Logan
C. Murray was appointed to draft memorial resolutions
relative to the death of the Honorable Joseph C. Hendrix,
Colonel Lowry,
a former president of this Association.
companies and institutions of every sort where the financial
of the nation are placed that complete Integrity and high
honor which shall safeguard all interests.
Be with the families of
Chairman of the committee,
those who are gathered together here as our city's guests, those who
are absent from those whom they love, and grant that upon all this
gathering in its remaining here and its departures, and in the homes,
In cities and towns of our land and other lands that are represented
here there may abide the blessings of our Heavenly Father.
Forgive
our sins, and receive us into the covenant of His love and mercy
in His name who has taught us to pray, Our Father who art in
Heaven, hallowed be Thy name. Thy kingdom come, Thy will be done,
on earth as it Is in Heaven.
Give us this day our daily bread, and
forgive us our trespasses as we forgive them who trespass against
us.
And lead us not Into temptation, but deliver us from evil; for
Thine is the kingdom and the power and the glory for ever and
In Memoriam.
Gentlemen of the American Bankers' Association
We are annually reminded that one or more of our worthy
members have passed away and that we will see their faces,
shake their hands and listen to their voices and their wise
counsel no more.
It is the sad duty devolving on your committee to announce
that since our last annual meeting the Grim Reaper has
claimed our esteemed friend and co-worker, Honorable Joseph
Clifford Hendrix, of New York, of whose death no doubt you
have all heard. Your committee, in making this announcement, deem it proper to make mention of some of the principal features of the life of our late distinguished friend, and
that proper resolutions of regret be passed by your body.
Honorable Joseph Clifford Hendrix was born In Fayette,
Missouri, May 25, 1853, being the third son of Adam Hendrix
of that place.
He was only In his fifty-third year when he
died, but into his active life he had crowded many Important
things, and aside from being a prominent banker, he had dis-
trust
will read the memorial.
Interests
ever.
Amen.
_
The President
We
with the report of the
Executive Council, Mr. Whitson, Chairman.
:
will proceed
Report of the Executive Council, by the Chairman
Mr. C. S. Whitson.
Mr. President and members of the American Bankers'
Association
cessors to
meeting,
Mr. Hill read as follows
:
it has been the custom of my predethe report to the Association at its annual
not my intention to burden you with the
While
make
it
is
work which have been or will be covered by
the full reports submitted by the various committees. The
details of the
tinguished himself In many ways.
At Fayette, Missouri, where he was born, he attended the
Central College and finished his education at Cornell University, Ithaca, New York, his father being quite an advocate
of liberal education.
As an aluumnus of Cornell, Mr. Hendrix
afterward became a life trustee of that famous university, and
:
::
;
BANKING SECTION.
as such was ever enthusiastic for its welfare and watched
good work with deep interest and modest pride.
Its
Mr. llendrix developed early in his career a strong desire
to enter the field of journalism.
In 1873, when he was but
twenty years of age, he' left the West and went to New York,
where he entered journalism.
lyn as a representative of the
forth Brooklyn was his home.
He was soon
assigned to Brookthere, and hence-
New York Sun
His remains now
Greenwood Cemetery, in that city, which
home for thirty-one years, and with so many of
tions he was permanently identified.
In 1881, Mr. Hendrix became a member of
Board of Education and five or six years later
ful
president.
in beauti-
lie
had been his
whose institu-
was made
its
His interest in educational matters never lagged,
the time.
Among the important offices he held during his life were
Secretary of the Brooklyn Bridge Company, Postmaster of the
city of Brooklyn, as well as Congressman from a Brooklyn
district.
He was also a director of the Fifth Avenue Trust
Company and President of the Kings County Trust Company,
which latter company he organized.
While the Honorable Mr. Hendrix was a member of Congress, he was offered and accepted the presidency of the National Union Bank of New York.
This bank was later consolidated with the National Bank of Commerce, Mr. Hendrix
remaining President of the consolidated bank until its consolidation with the Western National Bank of New York, about a
year before his death.
In 1895 Mr. Hendrix was elected Chairman of the Executive
Council of this Association.
In 1896 he was elected VicePresident, and in 1897 he was elevated to the Presidency of
the American Bankers' Association, and all of these positions,
being the most responsible within the gift of this body,
were filled with the ease, grace and dignity as well as the
efficiency which characterized his conduct in every office he filled
during his life. Not only was he efficient as an officer of this
Association, but as a member of the Association he was ever
ready to do whatever was assigned to him as duty, and would
lend his wise counsel and suggestions at any and all times for
the good of the Association and its work.
His devotion to the
Association was unselfish, his acceptance of its honors was with
becoming modesty, and his efforts in its behalf were characterized by an interest scarce surpassed.
Socially it was difficult to find a more genial and courtly
gentleman.
He was generous to a fault, kindly, courteous, patient and tolerant.
He was always attentive, cheerful, bright
and interesting. He was a member of quite a number of prominent social organizations both in New York and out at Bath
Beach, where he frequently went to take a few days' rest from
his strenuous duties, and the noise and trafilc of the busy city.
The influence and example of such a man are of inestimable
value.
Every member of this association who has come in
contact with him will bear witness to his unfailing courtesy
and watchful kindness. He was perfectly sincere, and his
straightforward integrity impressed all who had relations with
him, and his high toned truthfulness inspired entire confidence
therefore be it
Resolved, by the American Bankers' Association
1. That
the death of Honorable Joseph Clifford Hendrix has brought to
this Association and its members deep sorrow and regret.
2. That our Association has lost one of its most useful and
honorable members, and each of us a devoted, loyal and faithful
:
friend.
3. That the purity and excellence of the character of the
deceased are an example to the young men of the banking profession worthy of emulation.
4. That the several institutions with which he was connected at the time of his death have suffered great loss in being
deprived of his wise counsel and zealous advocacy.
5. That a page of our minutes be set apart for a permanent
record of these resolutions as a token of the esteem in which
he was held by the members of this Association and that a
copy of the preamble and these resolutions be furnished to the
family of our deceased member and friend.
Your committee respectfully recommend the adoption of the
Respectfully,
Robert
J.
Myron
T.
Whereas, the American Bankers' Association has heard with
profound regret of the death, September 15, 1905, of Charles
Parsons, President of the State National Bank in St. Louis.
Therefore be It
Resolved: That the following tribute to his memory be
spread upon the minutes of this Convention and a copy be
engrossed and forwarded to his family.
Charles Parsons was one of the founders of this Association
He served as President in 1890-91 and
at Saratoga in 1875.
at the time of his death was an ex-officio member of the Executive Council.
the Brooklyn
and from the day he entered Cornell University to the day of
his death he was the champion of education, first last, and all
above.
107
Lowry, Chairman.
Herrick,
M. M. White,
Logan C. Murray,
Committee.
Aiter an honorable military career during the Civil War
Mr. Parsons entered the banking business in St. Louis, where
for nearly forty years his name has stood for all that is wisest
and best in his chosen field of labor, and his influence and character will be missed by those who held the privilege of his
friendship, for it is well known that his record and attainments had achieved for him a national repute, and. had he so
desired, he might have been honored highly in the service of
his country.
To those who knew him his life will ever be a sacred lesson, as that of one who by his learning, his wisdom, his integrity, and his purity, has achieved the highest ideal in a
vocation which will ever demand the best in heart and brain.
Walker
James
:
morial.
Mr. Hill read as follows
Foroan,
Dumont Clarke,
R. H. Rushton,
F. P. Neal,
Committee.
AUTHORITY TO MAKE REAL ESTATE LOANS.
The Council refers the following communication from
Mr. Allen Ozburn, cashier of the First National Bank of
Pinkneyville, Illinois, to the Convention, with the recommendation that it be referred to the new Executive Council.
The Secretary read
as follows
Pinkneyville, III., October
The American Bankers' Association, New York.
5,
1905.
—We
have a law in the United States Revised
National Banks loaning on real estate
There may have been a time, no doubt was, when such
security.
legislation was deemed necessary, in order to protect depositors
But that time
to that extent who dealt with National Banks.
has passed. There is no better security than real estate, neither
indeed can there be, and National Banks that are restricted in
such a manner are put to a great disadvantage in that their
competitors, State and private banks, are not subject to the
Gentlemen:
Statutes
prohibiting
The fact is that ninety-five per cent, (estimated) of the
law.
National Banks either evade or violate the law, to the knowledge of the department, which proves the imbecility of the
law.
We believe all National Banks outside of the reserve
cities would hail with delight the repeal of this law, and we
feel sure would co-operate to secure this -result if your good
offices could be secured to champion their cause.
We believe you as an Association are interested in securing
legislation favorable to your members and are no doubt just
This
as desirous of having unfavorable legislation repealed.
could be done, we believe, with no injustice to the banks not
affected, and we would consider its accomplishment the greatest single service you could render at this time to that class
of your members who are under the ban.
We would thank you for your views on the subject, stating
the conditions under which you would undertake the task,
promising our assistance in arranging any preliminary.
Very truly yours,
Allen Ozburn,
Cashier First National Bank.
The President
:
If there is
no objection the communi-
cation will be referred to the incoming Council.
PROTECTION FOR
BANK
DEPOSITORS.
The Council refers the folMr. Whitson (continuing)
lowing communication from Mr. Myron Campbell, Cashier
of the South Bend National Bank, South Bend, Indiana,
to the Convention, with the recommendation that it be
referred to the new Executive Council.
The Secretary read as follows
:
South Bend National Bank,
South Bend, Ind., October, 3, 1905.
MEMORIAL TO CHARLES PARSONS.
Mr. Whitson (continuing)
A committee composed of
Mr. Walker Hill, James B. Forgan, Dumont Clarke, R. H.
Rushton and F. P. Neal was appointed to draft memorial
resolutions relative to the death of the Honorable Charles
Parsons, former President of this Association. Mr. Walker Hill, as Chairman of the committee, will read the me-
Hill, Chairman.
B.
R. Branch, Secretary, New York.
Dear Sir Referring to my communication of August 29, I
feel so certain that the third item, protection for bank depositors, will not meet with general favor that I think it better
not to ask the Executive Committee to consider it at this time.
I therefore inclose substitute resolution, with this item omitted,
which you may, if you please, offer for consideration in place
of the original.
Yours very truly,
J.
:
Myron Campbell.
—
:
:
Resolved, That Congress be asked to pass in substance the
following amendments to the National Bank Act
1st. Whoever, with intent to defraud, shall by false or incomplete statement of the resources and liabilities, direct and
indirect or contingent, of any firm, company or corporation,
body politic or individual person or persons, or by color or any
false token or writing or any false pretense, obtain from any
National Bank Association, either directly or through any commercial agency or broker or dealer in commercial paper, any
money or credit, or the transfer of any bond, bill, receipt, promissory note, draft or check, or anything of value, Whereby such
National Banking Association shall suffer any loss, shall be
deemed guilty of a misdemeanor, and on conviction thereof shall
be imprisoned for not less than five years nor more than ten
years.
2d. It shall be unlawful for any insolvent National Banking
Association to receive deposits, and every president or cashier
who, knowing such association to be insolvent or who having
good cause to know or believe it insolvent, shall with intent
to defraud receive a deposit or permit to be received a deposit
from any person or persons, firm, company or corporation, or from
any agent thereof, not indebted to such association, any money,
check, draft, bill of exchange, stocks, bonds or other valuable
thing which is transferable by delivery, whereby the deposit
so made or any pa.rt thereof is lost to the depositor, shall be
deemed guilty of a misdemeanor, and on conviction thereof shall
be imprisoned not less than five nor more than ten years.
The failure, suspension or involuntary liquidation of any
such association within 15 days from and after the time of
receiving such deposits shall be prima facie evidence of an
attempt to defraud on the pari of such president or cashier.
3d. So amend Section 5137 that National Banking Associations may accept as security on original loans mortgages or
unincumbered
necessity to now adopt as being especially
class of country banks now being organized.
applicable
to
the
OF LOANS ON REAL ESTATE.
and bonds secured by mortgage on
dominated " personal " property, but by
courts have construed mortgages held by
In all other cases notes
real estate are legally
implication alone;
National Banks as real estate.
Section 5137 of the U. S. Revised Statutes the National
Bank Act says " A National Banking Association may purchase, hold and convey real estate for the following purposes
" such as shall be mortgaged
and for no others, etc.
to it in good faith by way of security for debts previously contracted,
but no such association shall hold the possession of any real estate under mortgage, or the title and possession of any real estate purchased to secure any debts due It
for a period longer than five years."
The holding of a mortgage
on real estate does not constitute possession of the real estate
until purchased.
It is difficult to understand the difference between the bond of a railway company secured by mortgage on
real estate (which banks are permitted to take) and the land
mortgage given by an individual to secure Ws note or bond
however, such has been the ruling, intended no doubt to guard
against too permanent investments in other than strictly commercial paper.
This may be well for the large banks In the
so-called commercial centers
the redemption points -but for
the country bank the law is prejudicial both to the borrower
and the lender. There is no better asset for a country bank to
hold in a limited proportion than loans secured by real estate
mortgage.
Country banks, at least, should therefore be privileged to accept mortgage security, say, not to exceed twenty
per cent, of their loans, especially so since the only collateral
a country borrower can well give Is a mortgage.
—
—
:
;
.
.
.
.
.
.
—
—
OF EXCESSIVE LOANS.
real estate.
Mr. Burns of West Virginia
:
I
move that we
refer the
resolution to the Executive Council.
The motion was seconded and the motion being
was agreed to.
taken,
RESTRICTIONS REGARDING LOANS.
:
Mr. President and Gentlemen of the Convention
Attention is also called to the provisions of Section 5200,
U. S. Revised Statutes, so often quoted as limiting a certain
class of loans to one-tenth of a bank's capital stock, an unreasonable restriction in many instances and so frequently disregarded that it needs amendment. Were the limitation one-tenth
of the actual unimpaired capital employed the law would be
respected now it is not.
As the law stands, and with the disposition of banks to increase their surplus rather than their capitalization, the limit
becomes more and more disproportionate to the bonorfldc capital,
between which and its nominal capital stock there often exists
such wide difference.
Other corporations are justly measured by their actual capital invested, regardless of their capitalization
why not banks
;
The Council refers to the
Mr. Whitson (continuing)
Convention without recommendation a communication
from N. B. Van Slyke, President of the First National
Bank of Madison, Wisconsin. As Mr. Van Slyke is attending the Convention we will be pleased to have him read
his paper or explain his resolution.
Mr. Van Slyke, President of the First National Banu
of Madison, Wisconsin, read as follows
:
The purpose
of presenting this paper is to secure an expression of the Association in reference to the need of amending an act which since
Its passage t lie banking interest has in some respects outgrown.
and in order to bring out a free discussion of any objection
that appears the following is respectfully offered for consideration
This thirtieth year of our Association as a National body of
bankers has clearly demonstrated the wisdom of organization, of
concerted action to secure the success we have in our undertakings, and while very much good has already resulted to the
commercial and financial interests of the country through such
combined efforts there still remains opportunity for further improvement, both in our methods and laws governing the same.
I beg, therefore, to as briefly as possible ask your consideration
as to what may be deemed advantageous to adopt.
Whether National, State, Savings or private institutions,
banks in the estimation of the general public are classified as
one, and whenever a failure occurs, from whatever cause or whatever class, great or small, the cry is raised, " It's another bank
failure!" which for a time more or less affects the character
of all and touches that important element of banking capital
public confidence
creating distrust, and is harmful to every
class.
Hence all banks are interested in the passage of restraining laws to protect their own stockholders no less than
the security of their patrons laws admittedly just and reasonable, such as will be enforced when enacted.
We have too many
laws and too little enforcement, and the popular tendency prevails to restrict, if not prohibit, many lines of perfectly legitimate trade, sometimes in the interest.
Laws unreasonable in their requirements tend to disrespect
and consequent disregard this we too often see in the daily nonobservance of municipal, State and Federal acts.
When considered of minor importance we are apt to overstep the line
between a questionable compliance and open violation, begetting
a certain spirit of lawlessness of greater or less consequence.
There should be no occasion for disobedience.
Owing to the lack of uniformity in State banking laws only
the National Bank Act will here be referred to as subject to
amendment, though the States are conforming their respective
laws more and more to the National Act and are alike interested
:
—
;
;
Improvement.
Conditions have materially changed In the past forty years,
vid what may have been prohibited has become a banking
In
;
BANKERS' CONVENTION.
108
it
:
:
;
in
like
manner?
therefore offer the following
Resolved, That this Association earnestly requests Congress to amend Section 5137, U. S. Revised Statutes, so as to
enable or permit banks located outside of the so-called redemption cities to accept of real estate mortgage security not to exceed 20 per cent, of its loanable funds.
2.
Resolved, That to encourage the accumulation of surplus
and undivided profits of banks it is the opinion of this American
Bankers' Associat'on that Section 5200 of the U. S. Revised
Statutes, restricting loans to individuals, firms, and so forth, to
one-tenth of the capital stock, should be so amended as to allow
such loans to the extent of one-tenth of their actual unimpaired
capital employed, irrespective of the nominal capitalization.
I
1.
Mr. Hamilton
I move that this excellent paper be
published and that the resolution be referred to the Committee on Financial Legislation when organized. I think
:
is a great deal of good in that paper, and I
that there are other questions of equal importance coming before the Association along the same line
that there
know
which should embodied with that.
The motion was seconded and the question beiug taken
it
was agreed
to.
Mr. Whitson (continuing)
cation
was
:
The following communi-
received from the Association of American
Railway Accounting
Officers,
and the Council refers
it
to
the Convention for discussion.
UNIFORM STANDARDS FOR DRAFTS.
The Secretary read
as follows
Association of American Railway Accounting Officers,
Chicago, September 19, 1905.
Dear Sir Under another
Mr. James It. Branch, Secretary
cover I am mailing you this day a copy of the twentieth report
of this association, and beg respectfully to .refer you to page
19G thereof, whereon are set forth two resolutions (No. 1 and
:
—
No. 2) adopted by this association at its last annual meeting
regard to form of drafts.
1'nder the terms of .resolution 2 you will notice that I am
directed to call the attention of the Bankers' Association to
the action of this association, and to invite the co-operation of
the Bankers' Association In the establishment of uniform stanin
dards for drafts.
The previous action taken by this association, and which
:
BANKING SECTION.
was affirmed by resolution 1, is set forth in memorandum attached to this letter.
I shall esteem it a kindness if you will take such action in
this matter as will meet the desire of this association as outlined in resolution 2 above referred to."
This is signed by C. G. Phillips, Secretary.
Memorandum. The form of draft recommended as standard
by the association embodies the following characteristics
1. The number shall be in or near the upper right hand
:
corner.
2. The amount in figures shall be at or near the extreme
right center, followed on the next line by the amount in words.
3. The name of the bank or individual on whom the draft
is drawn shall be in or near the lower left hand corner.
The
4.
and a half
size of the draft shall be eight
inches.
and a half by three
5. This does not preclude the addition of a statement of
accounts within the size named.
The President: If there are no objections the communication will be filed.
There were no objections and the communication was
accordingly
filed.
Mr. Whitson (continuing)
The Council refers to the
Convention a communication received from Mr. ^G. W.
Garrels, President of the Franklin Bank of St. Louis,
Missouri, and as Mr. Garrels is attending the Convention
we will be pleased to have him read his paper.
Mr. Garrels read his paper as follows
:
Currency Reform.
Reform of currency
is an intricate and delicate question, as curthe life blood of commerce, the arteries of which are so spread
and interwoven with all phases of life in the modern system of exchanges of goods and services that a well regulated currency is one
of the causes of general contentment and welfare.
History teaches
us that erroneous currency laws have caused innocent sufferers untold
hardships, unbearable wrongs, and general misery.
In opening a discussion of currency reform, it would be desirable
that bankers, professors of political economy, and statesmen should
rency
is
first
come to a full understanding
following cardinal points:
1.
The
nature
of
money,
its
and
agreement
functions,
and
concerning
scientific
the
classifi-
cation;
2.
The duties of the Government in regard to money, and the
limitations of the powers of the Government by natural, moral, and
commercial laws;
3.
WT hat can be considered a modern, practical, and elastic currency system, suitable for an advanced nation opposed to privileged
monopoly, without regard to the system now in existence?
After an agreement has been reached on these points, it will be
comparatively easy to find ways and means of gradually approaching
this desirable currency system.
Our present currency system is an Inheritance of the Civil War,
and consists of a patchwork of political compromises.
For sixteen
years during and after the Civil War this system caused the nation to
suffer under the curse of Irredeemable paper money.
The Legal Tender Act was only justified before the Supreme Court of the United
States as a desperate war measure, occasioned by a war of such vast
proportions and intense energy as to cost for five consecutive years,
annually, a ten years' income.
The incorrect principle of endowing due bills of the Government
with the function of money showed itself in what followed the excessive issue of such bills.
In accordance with the Gresham law, the
good money
Gold and even fractional silver coins
and disappeared from circulation. The circulation soon consisted entirely of enormous issues of paper money,
based on the credit of the Government. All values fluctuated with the
fortunes of war. Defeats of the Union armies influenced public opinion
became
left
articles
the country.
of trade,
to such a degree that the consideration of the possibility of final repudiation at one time placed a paper dollar at a discount of sixty per
cent, as compared with gold. These bills had to be and were redeemed
Thus this incorrect policy more than doubled the cost of the
at par.
war.
Had the war been conducted on a gold basis, as was the
essence of the advice given by New York bankers, and as was lately
done by the Japanese, these enormous losses could have been avoided.
The power of coining money is forbidden by the Constitution of
the United States to the States, and is granted to the United States.
The power over tender is forbidden to the States, and not granted
to the United States.
The power of Congress to make treasury notes legal tenders has
been sustained by the United States Supreme Court on such slim
grounds, as that the said power Is incidental to the following powers:
1.
To declare war;
2.
To raise and support armies;
3.
To provide and maintain a navy.
When the first legal tender law was enacted Congress promised its
abolishment at the close of the war. Forty years have since passed,
but this pledge remains unredeemed.
We have in our currency about $500,000,000 of overvalued silver
dollars.
This is merely token money. As this is largely in excess of
the demand for such coins, representatives of this token money are
forced into circulation in the shape of silver certificates calling for
The subtle trick
forty-five cents value and for fifty-five cents trust.
is ridiculous and degrades the dignity of one of the foremost nations
of the globe by covering up an indebtedness of nearly $300,000,000 of
the Government. This amount, representing fifty-five per cent, trust,
does not appear as debt in the financial statement of the Secretary of
109
In fact, when the silver was coined, sums aggregating
the Treasury.
about $130,000,000 were accounted for as extraordinary income, on the
false assumption of seigniorage. The balance of about $170,000,00t
represents the loss in the market value of the silver since It was
bought by the Government.
We all know that the National Bank note is a delusion. It is no
bank note at all. It does not circulate on the credit of the bank of
issue.
It does not appear when the trade needs it, and it does not
It Is
disappear when it has done its duty and Is no longer needed.
simply an artificial way for the General Government to borrow money
cheaply.
It is forced into circulation, after the Government has been
in the market to sell bonds, without regard to a reserve of gold, of
which every good paper money is a representative, and in which it
must be easily redeemable to remain good. The National Bank note
is issued without regard to the needs of trade, for the benefit of whicb
It does not go out of circulation until it
-bank notes were invented.
has done all possible harm by congesting the money market and
Abnormally low interest rates in turn
demoralizing interest rates.
promote non-dividend paying enterprises, inflate prices of securities,
cause relaxation of the rules for doing a safe banking business, induce
merchants and manufacturers to spread out beyond the safety limit,
cause them to allow their assets to become slow and fixed, and promote gambling on the exchanges of the country.
Interest rates are indications of healthy or unhealthy business
conditions.
Too high rates and too low rates indicate sickness in the
commercial, industrial, financial, or political world. Countries with
an elastic currency watch with anxiety their stock of gold on which
their bank notes are based and protect the same by raising the rate of
interest, which in turn is a signal of warning to every intelligent business man to contract his enterprises. The people of the United States
have no such tocsin, which is due to their faulty currency system.
The Government will need $200,000,000 or more for the Panama Canal
and will issue $200,000,000 or more in bonds. This will form the basis
for $200,000,000 in bank notes.
Forced into circulation, this addition
of bank notes will first demoralize the interest rate and then drive
If we
out $200,000,000 in gold in accordance with the Gresham law.
had a scientific currency law the result would be opposite. The large
demand on the loan market would have the tendency to raise the
interest rate, which in turn would encourage the importation of gold.
An enterprise like the Panama Canal calls for loanable capital or
in other words for the savings and accumulated wealth of the nation
Only a small portion of this loadable capital will consist of the idle
money seeking investment. The greater portion will be furnished
by the products of our farms and of our mines, by the contents of our
elevators, and of our warehouses, and the products of our factories
and other forms of our wealth. The money used for this transformation as medium of exchange will be only needed temporarily and under
a good currency law would disappear after it has done its service.
Under our present currency law it may happen that our circulation
is increased by the full amount of the Panama Canal bonds to be
issued.
You are aware that Trust Companies and State Banks use
National Bank notes without discrimination as reserve for deposits.
You are also aware that large deposit accounts are created by loans
made to customers.
The increase of National Bank notes of say
$200,000,000 may, when digested by the banking mechanism, thus furnish loanable funds to an amount of nearly a billion dollars, am.
this without any regard to the loanable capital in existence.
Will not this be inflation against which our honorable Secretary ot
the Treasury has so earnestly cautioned?
All of our currency, excepting gold and gold certificates, is based
on the credit of the Government.
Hence, when money rates have
hardened, in consequence of over speculation, of over trading, and over
production, the Government is looked to for help.
It is expected te
keep the money market easy in order to prevent disasters. It is ofter
blamed for a depression of business, which is only the natural reaction,
and often the proper correction, of over trading. In fact, the Governent is expected to put every business which is out of joint is goot!
running order by distributing deposits of money amongst the banks.
The Government should be relieved of this burden. It should be takeis
out of the banking business, and the currency out of politics. As lon-r
as the Government is a competitor in the banking business there can
be no good financial legislation and no good banking.
Other enlightened nations have separated the credit of their Government entirely from their currency, and the time seems favorable
for a similar separation of the credit of our Government from our
currency system, and the building up of a new elastic currency system
comprising gold and representative money readily and automatically
redeemable in gold.
1
MONEY.
Barter has preceded trade.
Purchases and sales came into existence only where commnnitiet
had singled out a general commodity which served as a common
denominator, and as a medium of exchange, by comparison with
which the values of other goods, or services, were measured. Cattle,
shells, beaver skins, tobacco, iron, copper, tin, silver, gold, etc., have
served at different times as such general commodities.
Gold, as the survival of the fittest, is now the standard of valut
of the civilized nations, and the medium of exchange in which the
balances of international commerce are settled.
Gold money, whicli
as such a general commodity, completes an exchange fully, and gives
value for value, is therefore the only real money, and is the basis of
all substitute, representative, or token money.
THE DUTIES OF THE GOVERNMENT.
The Government
is properly entrusted with the charge of assayin*
the gold, of weighing it, and of placing its stamp upon it as a certificate of correctness of the fineness and weight, but it should not
make its coinage a source of profit.
There has been hardly a government in existence which has not
abused this trust.
History shows us how in ancient times, in the
middle ages, and in modern times, governments ha\ j committed knowingly, and unknowingly, crimes by reducing the weight of coins, or
BANKERS' CONVENTION.
110
(lebasiug the alloy. The weight of the Roman a9, which was originally
twelve ounces, was repeatedly reduced until it was finally equal to
five twenty-fourths of an ounce.
You all know how little is left of
the pound sterling silver and the pennyweight silver in the English
pound and the penny of to-day, respectively.
Levying a seigniorage in excess of the actual cost of coinage Is
immoral, and ought to be below the dignity of the Government. The
sovereign prerogative of levying a disguised tax under the designation
of seigniorage, which was formerly claimed by the rulers of the different countries, is mere stealing, and the holder who uses the coin
The coinage laws of almost
in international settlements is the loser.
have now recognized this principle.
of its own paper money with a legal
all civilized nations
The
Government
issue by the
tender quality violates the theory that money is a commodity or its
representative.
The United States notes are not representative of
money, but certificates of indebtedness. A limited amount does circuLack
late at par as long as such notes are redeemed in real money.
of redemption and excessive Issues soon bring losses to the holders.
These notes will then pass at a fraction of their face value only, proportioned to the probability of their final redemption. History teaches
us that United States notes declined to forty cents on the dollar during the Civil War, and notes issued by the Continental Congress during the Revolutionary War declined to nothing, although the latter
were finally redeemed at 1 per cent, for one hundred cents face value.
Successive bad crops, an extended civil or foreign war, extravagance in appropriations by Congress, may again cause an excessive
issue of paper money by the United States, unless our currency system
from the credit
is put on a scientific basis, and is separated entirely
Government.
The foremost European nations have left the issue of paper money
entirely to banks, because they have found that credit is extremely
of the
and that in bad times, when redemption of paper money, for
which the Government is responsible, Is in doubt, the money itself
may become the explosive which may eventually shatter the foundations of the Government.
politics?
Is it not wise to divorce the money question entirely from
European governments, in chartering National Banks of issue, have
That such institutions could permacreated privileged monopolies.
nently exist in the democratic atmosphere of the United States Is
History shows us that the two United States banks were
doubtful.
the whirlpool of party politics and had to go out of existinto
dragged
ence, probably at the time to the detriment of commerce and of the
sensitive,
people of the United States.
Co-operation of corporations created under general laws will give
strength without monopoly, and this seems to be the proper solution
of this question for the United States.
All paper money ought to be under strict control of the Government, but the burden of its redemption, with the exception of gold
United States
the
from
removed
certificates, should be entirely
Treasury.
As gold money is subject to wear in circulation, it should be the
duty of the Government to facilitate and enforce the withdrawal of
light weight gold pieces.
or token
It is the duty of the Government to provide subsidiary
money, coined of less valuable metals, like silver, copper, or nickel,
with a limited legal tender quality, for circulation in the home counThis should be coined in quantities sufficient to satisfy the
try only.
but not in larger quantities. The Government ought to
fully,
demand
provide for a ready distribution and redemption of subsidiary coins.
A SIMPLE ELASTIC CURRENCY SYSTEM, PROVIDING FOR BANK
NOTES REDEEMABLE IN GOLD.
GOLD:
Gold, by its inherent qualities, has become, with all civilized nameasure of value, the medium of exchange, and the general
commodity in which the balances of all commercial nations are setEven in silver-using countries the value of goods which are
tled.
exportable, and of all merchandise which is imported, is measured by
But these prices go up
gold, though prices are expressed In silver.
tions, the
and down
gained
in
this
sympathy with the price of
position
survival of the
in
accordance
with
silver
the
in
Gold has
law of "the
gold.
natural
fittest."
tion,
and an unsafe extension of business, often leading to a financial
crash.
HOW BANK
Bank
By a
By a
notes are secured:
first lien on the assets of the bank of issue;
district safety fund and a general guarantee fund, created
by taxes on the circulation;
Jointly and severally by the combined capital of all of the associated National Banks of issue of the United States;
By a qualified guarantee of the United States of America, inasmuch as the Treasurer shall receive at par all such bank notes in
payment to the Government, and that he shall not pay them to its
creditors except with their consent
By a reserve of gold, or gold certificates, to be held by each bank
of issue equal to 30 per cent, of its outstanding bank notes, fourfifths of which is to be held with its redemption agent, the said
reserve being held exclusively for the redemption of bank notes;
By a prohibition against including bank notes as any part of the
legal reserve to be kept by a bank;
By an amount equal to the amount of circulation outstanding of
easily convertible bonds, or well secured short notes not running in
excess of thirty days.
THE REDEMPTION OF BANK NOTES.
is made a redemption city, and a certain adjoining district is attached to it and forms one banking district.
If one
such district is too extended, It is subdivided and an addition redemption city is created.
An office of Deputy Comptroller is established in every redemption
city.
The Deputy Comptroller issues bank notes to the different
banks entitled to them in his district upon application; keeps the
books for his district; and supervises the redemption of bank notes,
Every reserve city
and bank examinations of his district.
Every bank of issue in the district designates one bank in Its redemption city as its redemption agent.
Whenever any bank note
reaches the counter of any bank in a redemption city, it ceases to be
money. It has to be redeemed.
If the bank note to be withdrawn from circulation originated in
the redemption city, it is paid by the bank of issue, canceled and
delivered to the Deputy Comptroller for credit on his books.
If
the bank note to be withdrawn from circulation did not originate
in the redemption city, but in the same district, it is redeemed
by the redemption agent in gold or through the clearing house.
It
is charged to the bank of issue by the redemption agent and delivered
to the Deputy Comptroller against his receipts.
The redemption agent advises the bank of issue of the denominations and numbers of the notes redeemed. The Deputy Comptroller
cancels the notes, credits the bank of issue, and also advises the latter of the denominations and numbers of the notes redeemed.
If the bank note to be redeemed originated in another district, the
said bank note is delivered by the receiving bank to the Deputy Comptroller against his draft on the redemption agent of the bank of
issue in the redemption city of the district in which the note originated.
A schedule of the denominations and numbers of the notes
redeemed is delivered in duplicate with the bank notes to the Deputy
Comptroller.
A third copy of such schedule is attached to the draft,
to be finally forwarded by the redemption agent to the bank of issue.
An exchange charge is established for the drafts of the Deputy
Comptroller, graduated according to the distance between the place of
payment and the redemption city. This is allowed to the receiving
bank, and is payable by the bank, the bank notes of which have been
redeemed.
The Deputy Comptroller cancels the bank notes and forwards them, with a copy of the schedule, to the Deputy Comptroller
of the district in which the bank notes originated.
The Deputy Comptroller has charge of a sufficient supply of blank
bank notes for each bank in his district, and delivers the same upon
If the Deputy
the application of any bank of issue entitled to them.
Comptroller has on hand an application for additional circulation by a
bank of issue at the time when clean, serviceable notes come In for
redemption, he may reissue such bank notes Instead of new ones.
GENERAL GUARANTEE FUND.
Every one of the associated National Banks Is entitled to Issue
bank notes equal to one hundred or one hundred and fifty per cent, of
its paid up capital.
Each bank pays taxes on its outstanding bank
GOLD CERTIFICATES:
The object of gold certificates is:
To make the payment, handling, and carrying of large amounts
more convenient;
To save in the expense of shipping and to reduce the shipping
risk.
SUBSIDIARY COIN:
Subsidiary coin is made of sundry metals other than gold, and Is
limited legal tender quality, Intended only for home circulation,
It
and therefore has less intrinsic value than Its face calls for.
should not be coined in excess of the home demand for its circulation.
notes at the rate of one-half per cent, on the first forty per cent.,
one per cent, on the next ten per cent., two per cent, on the next
The
ten per cent., and so on, the rate of tax gradually Increasing.
taxes received on circulation are set aside by the Government as a
" General Guarantee Fund " until the amount received is equal to
Whenever the
five per cent, of the maximum previous circulation.
Income from this 3ource Is in excess of five per cent, of any previous maximum circulation, the excess is to go to the Government.
of
BANK NOTES:
The loss which gold coins suffer by circulation, the Inconvenience
which the transfer of large amounts occasions, the ease of increasing
the circulation whenever the trade demands it, by the use of paper
all civilized
money in the shape
The essential qualities
tive
of
nations to use substitute or representa-
bank
notes.
of good bank
notes are:
1.
Absolute safety under all circumstances;
Ready redeemabillty In gold;
3.
Elasticity.
1.
increase in the amount of
whenever commerce demands such an increase, but also automatic disappearance from circulation when the
The want of a prorepresentative money has served Its purpose.
vision for a contraction of the volume of bank notes after the necessity for their use has ceased brings about a congestion of the money
market, which encourages an inflation of values, unreasonable specula-
By
elasticity
bank notes
in
An assessment
I
do not mean merely
circulation
DISTRICT SAFETY FUND.
one-half per cent, per annum
of
is
collected
In
on outstanding circulation to form a District Safety
Fund until the same reaches two per cent, of the maximum previous
outstanding circulation of the district. In case of impairment of said
fund, or Increase of the outstanding circulation, pro rata assessments
are made to maintain the fund in the same proportion.
In case of a bank failure, the outstanding bank notes of the bank
that failed are at once redeemable out of the General Guarantee Fund,
which is later reimbursed as a first preferred creditor out of the
assets of the bank that fall"d up to the full amount of the outstanding
bank notes. In case the assets of the bank that failed are not sufficient to cover its circulation, one-quarter of the loss is made good by
the District Safety Fund, and three-quarters by the General Guarantee
Fund.
The object of the District Safety Fund Is simply to promote watchfulness, which can be exercised more easily near by than at a distance.
The Clearing House of the redemption city appoints a committee,
which assists the Deputy Comptroller In the supervision of the banks
of the district, and has power to examine any member of the aisoeach
money, has caused
NOTES ARE SECURED.
BANK NOTES:
district
:: :
:
:
;
Ill
BANKING SECTION.
elated banks of Issue of the district. If an examination shows a bank
to be in a failing condition, it cun be closed at once with the assistance of the Deputy Comptroller.
The average circulation under the Suffolk redemption system
amounted to about forty per cent, of the maximum circulation allowed,
and under the proposed system would probably not exceed this rate.
The graduated tax would make a high Issue unprofitable, and onehalf of the amount of circulation allowed would probably seldom
be exceeded, except In times of stringency, when money commands
sufficiently high rates of interest to enable the bank of issue to pay
the higher rates of taxation.
In the foregoing I have outlined a scheme for a permanently sound
and elastic currency system, in which prompt redemption prevents by
itself any Inflation and which Is liberal enough to provide for any
emergency.
The emergency circulation suggested by our Honorable Secretary
of the Treasury has some good features, but it is only an addition
The want of pubto a currency system built up on wrong principles.
licity taints the whole class of this money to the whole extent of the
permissible Issue and deprives bankers of an indication on which to
base their judgment.
I do not ask you to indorse this scheme, but I do ask you to support
me
recognized and taken advantage of by banks and bankers all
over this country
Whereas, The Honorable Secretary of the Treasury, under
date of June 21, 1905, advised a member of this Association
" that there is no authority of law for the Issue of duplicates
In lieu of lost gold certificates," be It therefore
Resolved, That the attention of Congress be called to this
state of facts, and that it be asked to pass such laws as will
enable the Secretary of the Treasury, in the event of a gold
Is
:
of deposit becoming lost or destroyed, to issue a
duplicate therefor, under the usual restrictions governing the
issue of a duplicate for a lost or destroyed United States Regiscertificate
it therefore further
Resolved, That recognizing the Importance of such an act
to all banking institutions of this country, the Secretary of
this Association is hereby instructed to send copies of the above
preamble and resolution to all Congressmen, recommending the
passage of a law that will relieve this condition of affairs.
tered Bond, and be
The President
am
I
sure the members of this Asso-
ciation will concur in this resolution.
in the following assertions:
Our present currency system is faulty;
2.
The present time is opportune for considering its improvement;
In considering this matter of a sound and elastic currency
3.
system, the aim should be to create a scientific currency system which
:
On motion
the resolution
was agreed
to.
1.
will be free from the faults of the present system, will stand the test
of panics, wars and political changes, will stand comparison with the
best system in existence, and will be worthy of one of the foremost
commercial nations of the world.
RESOLUTION IN FAVOR OF SHIP SUBSIDIES.
The following preamble
Mr. Whitson (continuing)
and resolution offered by Mr. Robert J. Lowry is presented to the Convention without recommendation from
:
the Council.
The Secretary read
RESOLUTION.
Resolved, To appoint a committee to wait upon Congress, or the
proper committees, and to ask that a commission be selected of
members of Congress, professors of political economy, and practical
bankers whose duty it shall be to consider, determine, and report upon:
1.
The nature of money, Its functions, and scientific classification;
2.
The duties of the Government In regard to money, and the
limitations of the powers of the Government by natural, moral and
commercial laws;
3.
What can be considered a modern, practical, and elastic currency system, which will stand the test of panics, wars, and political
changes, and Is suitable for an advanced commercial nation opposed
to privileged monopoly, without regard to the system now In existence.
4.
To recommend such laws as will be necessary to change graduually from our present currency system to the one agreed upon by
the commission.
STANDING LAW COMMITTEE.
Mr. Whitson (continuing)
The following resolution
offered by Mr. Lewis E. Pierson of the New York National
:
Exchange Bank is offered for the consideration of the
Convention, with the recommendation from the Executive
Council that it be adopted.
The Secretary read
as follows
Resolved, That the President appoint a standing Law Committee of five members, to whose attention shall be brought all
decisions and laws on banking matters, which are or shall hereafter be at variance in different States.
This committee shall be instructed to provide ways and
means to bring about uniformity in all matters of this character, and be authorized to employ necessary counsel to properly
prepare and carry through its plans.
Its expense shall be limited to such appropriation as may
be made by the Executive Committee, to whom all reports of
expense and progress shall be .rendered.
On motion
of Mr. George the resolution
NEW
was adopted.
BILL OF LADING.
Mr. Whitson (continuing)
The following communication from Mr. Pierson is referred to the Convention
without recommendation from the Council.
The Secretary read as follows
:
Resolved, that the President appoint a committee of five to
confer with the joint committee of shippers and carriers now
considering the adoption of a new uniform bill of lading.
A Member
move the adoption
The motion was seconded, and
taken, it was agreed to.
:
I
of that resolution.
the question being
DUPLICATES FOR LOST GOLD CERTIFICATES.
Mr. Whitson (continuing)
:
The following communi-
cation from Mr. P. E. Kuhl, Cashier of the Lincoln Na-
Bank of Lincoln, 111., is referred to the Convention
without recommendation from the Council that it be
tional
adopted.
The Secretary read
as follows
Whereas, Under the Act of Congress of March 14, 1900,
the Treasurer and Assistant Treasurers of the United States
are authorized to issue " gold certificates of deposit," payable
to order of any bank or banker making deposit of gold, and
Whereas, The convenience of this method of storing gold
as follows
Whereas, The export trade of the people of the United States
annually on the increase, and in the years to come will
necessarily increase in a greater ratio than it has in the past
is
and
Whereas, The percentage of foreign freight carried in our
ships has decreased until, compared with the
and
gross amount of our exports, it is ridiculously small
Whereas, This is to the great disadvantage of the people of
the United States from the viewpoint of proper economy in the
conduct of business, besides greatly detracting from our National prestige and pride
and
Whereas, The opening of the Panama Canal will be of the
greatest importance to the commerce of this country, and will
render even more necessary than at present the building of
more ships to carry our freight to the Oriental and other markets of the world and
Whereas, The passage of a ship subsidy measure on the part
of this Government would be a substantial encouragement to
shipbuilding and be a long stride toward the upbuilding of
a strong American merchant marine to carry our freight and
mail direct from all our ports to foreign ports and
Whereas, It is necessary for the maintenance of our National prestige among the civilized nations of the world that
we do not allow our flag on merchantmen to become well-nigh
extinct upon the seas and
Whereas, The building of ships, thus encouraged by Government subsidy would mean employment to skilled labor as well
as common labor, and would give a healthy impetus to internal
trade in the purchase of all supplies necessary for the building
own American
;
;
;
;
;
therefore be it
Resolved, By the American Bankers' Association, in Convention assembled
1. That the members of this Association are deeply Interested in any measure which will promote the interests of the
whole country, industrially and commercially, and especially
with reference to our foreign commerce.
2. That we favor and most respectfully urge the passage by
Congress of some measure to foster and encourage the upbuilding of our merchant marine and give us back the prestige upon
the high seas which we once enjoyed.
3. That we favor the ship subsidy measure, which has received consideration at the hands of our Congress, which we
think would tend to restore our flag upon the seas and build
up our merchant marine to the extent that the necessities of
our trade, now and in the future, may demand.
4.
That we recommend that our Senators and Congressmen
favor some just and equitable measure that will bring about
the results and afford the relief above suggested.
5. That through our Legislative Committee we memorialize
the Senate and the House of Representatives of the United
States with a copy of these resolutions.
of these ships
;
Mr. Low, of Maine: As a member of the Association
from Bath, Maine, where these ships will be built, I wish
(Laughter and applause.)
to second the motion.
Mr. PresiMr. Robert J. Lowry, of Atlanta, Ga.
dent, I know of no proposition ever coming before the
Association of greater importance than the one just read.
Commodore Maury, 'way back in olden times, made a
chart, and in his day every ship that plied the ocean
sailed by his chart He was an able officer and we are
proud of him. I have been thinking that if those routes
:
BANKERS' CONVENTION.
112
traversed by ships in those days could be filled up by
dtbris, or something of the kind, for want of use,
they would have been filled up long ago if the keeping of
them open depended upon the ships from the United
put a steamer on the ocean and save twenty to thirty
thousand dollars in salaries to officers alone, and when
it comes to seamen there is still greater difference.
So,
I say, we are handicapped in that respect.
Foreign nations' ships are carrying the commerce that ought to be carried by our own ships. When
I presented this to the Executive Committee, and they
referred it to your body, I expected it to come up yesterday, when the Secretary of the Treasury said so many
good things and appropriate things upon the same subject.
I do not believe it is worth my while to say an-
Cries of " Question, question "
Mr. Fletcher, of Little Rock, Ark.: Mr. President
I had no idea of saying a word here.
I fully indorse everything that Colonel Lowry has said, except
one thing, and that is the matter of a subsidy. I am opposed to subsidy for anything. Talk to me about handicap! This great American Republic of ours has more
States.
other
word
in behalf of this proposition.
I
would
like
our flag on a thousand merchantmen carrying our
products to every part of the globe, and the only way to
do it is to let people understand that if they will build
ships we will give them some encouragement. We built
railroads across the continent by aid from the Government, and we can take our stuff to the ports now, but we
have no ships to carry it from the seaports.
I do believe, gentlemen, that it is our duty to have
some act of this kind passed. There are no people anywhere more interested in it than the bankers of America.
The commerce of the country is what we make our
money out of, and if the country does not prosper we do
not prosper, and we should do everything in the world
we can on this line, giving prosperity to the whole country, and in that way we reap benefit ourselves.
It is not from a selfish standpoint at all, because I
always have held, and I hold now, that the patriotism
among bankers is as great as is to be found in any other
to see
vocation in the world.
I hardly think it is worth while for me to say anything further, but I do sincerely hope that you will pass
this resolution, give it your approval, or give your ap-
(Applause.)
Mr. President, I am
glad that Colonel Lowry has had the courage and practical good sense to introduce this resolution in the ConI rise to support the resolution, and wish to
vention.
proval to some other proposition.
Mr. Parker, of Quincy, 111.
:
few things in that connection. It was Commodore Perry who opened up the ports of the world under
In this day our ships have almost
the American flag.
disappeared from the seas. Within a few days I have
seen in Japan on an inland sea fifteen or twenty ships
state a
what her commerce is and
the diversion and waste of commerce.
lying at anchor, illustrating
!
free men, free labor and better wages than any other
place on the face of the earth, and I think we are able
compete with the world in everything. I do not admit that any man has more veneration for the flag of
this country than I have. And yet I am opposed to subsidies for anything.
I come from the Southwest, west
of the Mississippi River, where men with strong arms
and brave hearts have hewed down the forests and built
up a gigantic country. Why should we pay a few shipbuilders to build our ships? We are building a navy
to compete with the world we are building a navy that
will whip any country on the face of the earth if necessary.
(Applause.)
I occupy a peculiar position probably in this Convention. Probably there are not half a
dozen other men in this convention that served in the
Confederate Army. I did. I do not deny it. But no
man has any greater veneration for the Stars and Stripes
and the honor and standing of this country than I have.
(Applause.)
I surrendered with General Johnston in
North Carolina. I was met by the Federal Army. They
" I am going back
said, " What are you going to do? "
to
;
home where
my
friend Lowry, but
War and the use of steamships which were purchased
or leased in order to act as scouts), that although we
agreed
lated possessions.
flag.
We
It is said that
must make
it
do
so,
commerce follows the
and Congress can begin by
extending by moderate and safe subsidy ads relating to
We are handitrade with South America and Asia.
a ship in
manufacture
cannot
We
cap] ied in this way.
Japan
for
or
Germany
competition with Great Britain,
the reason that we have a high protective tariff and we
have to pay so much for our labor. We pay forty or
any per cent. more. Japan or England or Germany can
my
I
sleeves
shipbuilding or something else that will pay.
(Laughter and applause.)
I say all this with due respect to
war costs in
Some of you are anxious that our navy should be enSome object to the expense. I wish to make a
larged.
point here. Some of the best naval oflicers in the navy
have said to me (and this, mind you, after the Spanish
might have subsidy laws passed by Congress, yet the
expense of those appropriations would be very considerably held down if we would follow England and Germany and Japan in granting modern subsidies, but at
the same time controlling the construction of these fast
cruisers. Think for a moment of that great act of Great
Britain in transporting to the Cape in a few weeks under
such regulations of construction of her mercantile maWe have purrine hundreds of thousands of men.
chased Alaska, but she is isolated. We have annexed the
Hawaiian Islands. We have taken possession of the Midway Islands. By war we have acquired the Philippines.
Whether or not you think we ought to be a world power,
we are a world power, and we cannot help it. Now, in
ease of war in this country we need those vessels as
much as Great Britain and Germany to protect our iso-
live."
I
coat and rolled up
the resolution.
>vhat
And
went home and pulled off
and went to work, as
all of us did, to build up our Southern country.
There
is no man who fought on the Union side who will do
more to build up this country than I will. (Applause.)
But I say to you, gentlemen, let us not grant any subsidies.
Our men are energetic and able to compete in any
line of business, and when capital gets so surfeited in
these big markets that they cannot loot any insurance
companies any further then they will probably go to
my
I
hope that you will rote against
Mr. Babcock, sitting in the gallery, said a few words
in favor of the resolution of Mr. Lowry.
(Cries of " Question, question
The question was taken
!
")
and
the
resolution
was
to.
COMMITTEE ON UNIFORM LAWS.
is the report on uniform
This report has been printed. The Chairman was
not here and he forwarded it, and it was printed in the
proceedings of yesterday.
I move that there be a committee apMr. Finley
pointed by the Chair on Uniform Laws.
Mr. George I second the motion.
The question was taken and the motion was agreed to.
I move that discussions on the floor be
Mr. Evans
The President: The next
laws.
:
:
:
limited to two minutes.
The motion was seconded, and the question being
it was agreed to.
The President: The next is the report of the Committee on Bureau of Education, by Mr. Finley.
Report of the Committee on Education.
To the American Bankers' Association
The efforts of your Committee on Education during the
taken
:
connection with the American Institute of
directed toward the elevation of
the standard of educational work and the consequent assurance of its permanence rather than to the increase of
the number of individual students and Chapter members.
The study courses, consisting of standard text-hooks
past year
in
Bank Clerks have been
and collateral exercises and examinations covering the
:
BANKING SECTION.
subjects of Practical Banking, Commercial
Law and
Po-
Economy, have appealed alike to practical educaand employing bankers as well as to ambitious and
industrious students in both city and country.
litical
tor*
The
association of students in Chapters in the
affords opportunity to
cities
larger
add lectures and classroom
methods to individual study of text-books. In several
places where university schools of finance and commerce exist Chapters have organized classes under the
direction of experienced professors in which superior educational results are accomplished.
It is the purpose of
the Institute to extend such university alliances as far as
possible.
To show the character of the preparatory work in connection with the study courses in Practical Banking, Commercial Law and Political Economy the preliminary exercises
and examination questions are submitted herewith
PRACTICAL BANKING.
The student who takes up the study of banking must have a
purpose: (1) To acquire familiarity with banking
threefold
methods, forms and accounts as
understanding of the principles
now
practiced; (2) to get an
involved in various banking
transactions
(3) to get some knowledge of the development
of banking institutions in this and other countries.
There is
no single text-book from which all this knowledge can be obtained.
On account of the broad scope of banking interests, a
student who would understand the business must know much
more than the routine of a banking office. Knowledge of routine
is the beginning and not the end of banking education.
The course of study here outlined is intended to give the
student a clear idea of the work actually done by a bank, of the
risks to be avoided and of the relation of banking to industry
in general.
The text-books are F. A. Cleveland's " Funds and
Their Uses," Horace White's " Money and Banking," C. F.
Dunbar's " Theory and History of Banking," either A. R.
iiarrett's " Modern Banking Methods " or A.
K. Fiske's " The
Modern Bank." Students should also read with care the articles on banking subjects published in The Bulletin.
Answers to all questions in the following preliminary exercise should be worked out by the student, but written answers
to only twenty-five of the questions are required to be submitted
for purposes of examination.
Each candidate should tell briefly
what experience he has had in a bank and what books he has
lead relating to banking and finance. Number answers to correspond with questions.
;
1.
What
are the distinctive functions of a bank, a trust
company
and a savings institution?
2.
What
are the preliminary steps in the organization of a National
Bank?
3.
What are the relative advantages and disadvantages of National
and State charters?
4.
Name and describe the principal provisions of the National Bank
Act.
5.
What are the reserve requirements under the National Bank
Act and under the laws of your State?
6.
Describe the different classes of loans made by National Banks
and tell why they are restricted from loaning upon real estate.
7.
In the calculation of a National Bank's reserve, how are the net
deposit liabilities computed? In this computation what is done with
the following items: Due from other banks, due to other banks, notes
of other banks,
certified checks,
National Bank notes outstanding,
re-
demption fund, exchanges for clearing house?
8.
Make a working plan of any bank with which you are familiar
and describe the duties and responsibilities of directors and various
officers and employes.
What information is essential in accepting the deposit account
9.
of an individual, corporation, trustee, executor, administrator or agent?
How may
10.
an account be analyzed so as to show whether
profitable or unprofitable to a
it
is
bank?
11.
Name and describe the different books used in any bank with
which you are familiar, and suggest improvements.
12.
What, in your judgment, is proper identification of persons
presenting checks for payment?
In connection wilh negotiable instruments, define drawer, drawee,
13.
payer, payee, iudorser, indorsee, pledger, pledgee, consignor and consignee.
What
14.
course
15.
1(5.
is
restrictive
indorsement and Indorsement without
Illustrate
fixes the limit to which a bank may expand Its credit?
with concrete case.
Describe the utility or advantages of bank notes, and show
24.
(Do not limit
in what respect they are superior to Government notes.
your answer to National Bank notes).
Explain clearly the following: Exchanges for clearing house,
25.
accommodation paper, acceptance, bill of lading, letter of credit, law-
What
money, certificate of deposit, check, certified check, draft, promissory note, collateral note, bill of exchange, power of attorney, warehouse receipt, cashier's check.
How large a surplus must
26. What is the " surplus " of a bank?
Why should
a National Bunk accumulate? To whom does it belong?
ful
a bank be required to have a surplus?
27.
Explain how settlements are effected
essential in bank examination to show actual condition?
a typical report of condition and explain the principal
is
17.
Describe effective and legitimate methods of building up the
business of a bank.
18.
What is the effect of certification?
19.
Show that a bank deals in credit rather than in money.
20.
Exactly what is the meaning of " money " in the saying that
money is tight?
21. A bank receives interest on the notes it issues, whereas a private individual pays interest on his promissory note. How is the exac-
tion of interest by the
bank
justified?
deposits of a bank may Increase as the result
of two entirely different transactions.
23.
What is meant by the phrase "expansion of bank credits?"
Show that the
a
clearing
house.
pooling of bank reserves.
distinguish clearly
30. With respect to the issue of bank notes
between the " Currency Principle " and the " Banking Principle."
31.
What is meant by "elasticity of the currency?" What are Its
alleged advantages? Why do not checks supply sufficient elasticity?
32. Upon whose recommendation was the first bank of the United
What privileges was it granted? Show why it
States established?
was called the Regulator of the Currency. When did its charter ex
pire. and why was it not renewed?
On what grounds did Jackson attack the Second Bank of the
33.
United States? How did he cripple it?
Show that the Suffolk
34. Describe the Suffolk banking system.
was organized solely for the purpose of profit and yet that it performed
an excellent service for business interests in New England. Before the
Bank was organized why were the Boston banks unable
own notes in circulation within the city?
Suffolk
their
Describe the so-called safety-fund system of banking.
35.
was
keep
to
In
what
introduced.
36. When and by what State was the so-called free banking system
first adopted?
Why did this system fail in the first year of its trial?
37.
During the panics of 1837 and 1857 in what city did banks
longest maintain specie payments?
Why did specie flow toward that
State
it
first
away from other cities?
What is meant by wildcat bank notes? Show why the notes
many banks were at a discount before the Civil War.
39. Describe the organization and operations of the State Bank of
city
38.
of
Indiana and discuss White's statement that
it
illustrates sound rules
of banking.
40.
was
Tell the story of George Smith's "
money " and show why
it
elastic.
Show that the National banking system was adopted
41.
in order
provide a market for Government bonds.
What legislation wap
necessary with regard to the issue of notes by State Banks in order
to stimulate the organization of National Banks?
42. What part of the capital of National Banks must be invested
in Government bonds?
Under what conditions may a National Bank
issue bank notes?
Why did the notes of National Banks increase between 1867 and 1880 and decrease between 1880 and 1890?
43. What are the duties of the Comptroller of the Currency?
44. In a five per cent, market what profit does a National Bank
make on its circulation if it succeeds in keeping all its notes outstanding' (Assume that its notes are secured by deposit of Government 2's.)
45. Why should a National Bunk not desire to take out more notes
than it can keep in circulation?
46.
What changes with regard to the issue of notes by National
Banks were made by the law of March 14, 1900?
47. With respect to their reserves, into what three classes are
National Banks divided?
48. Are the notes of National Banks elastic?
Give reasons for
your answer.
49. When and why was the Independent Treasury established in
the United States? To what extent may it aid or injure the operations
to
of banks?
50.
51.
Describe the Bank of Amsterdam and outline its history.
What are the principal features and functions of the Bank of
Fiance ?
52.
Describe
the
Bank
Government.
Explain the position
53.
of
England
and
its
relationship
to
the
Bank of England as a reserve agent
seek to attract gold to England or prevent its exportation? Why is its policy often effective?
54. What are the characteristics of the Imperial Bank of German.v
and its points of resemblance to the Bank of England?
55. Discuss the Canadian banking system with respect to (a) step*
necessary to get a charter, (b) paid up capital, (c) reserve requirements,
(d) the issue and the redemption of notes, (e) safety fund.
for other banks.
How
does
of the
it
COMMERCIAL LAW.
Commercial Law is advised to begin with
White's " Business Law." At this stage the purpose is simply
to get a general view of the nature of law and to add to this
general view some knowledge of the more elementary doctrines
as to contracts, sales, bills and notes, common carriers, agency,
partnership and corporations.
After the student has gained an elementary knowledge of
business law he should make a special study of the law of commercial paper.
For this purpose he is advised to study carefully either Bigelow on " Bills, Notes and Checques " or Norton
on " Bills and Notes." The Banking Law articles in The Bulle-
The student
What
Make
at
are balances paid at the New York Clearing House?
28. Discuss the present need for reform of banking laws In the
United States.
29.
What is a clearing house loan certificate? What use has been
made of it in the past? Show that its use in a panic is equivalent to a
How
re-
?
items.
22.
113
of
tin should be carefully followed.
Finally, after the student has studied carefully one of the
suggested treatises on commercial paper, he must familiarize
himself, by thorough and repeated study, with the statute en-
BANKERS' CONVENTION.
114
Instruments Law, which has been adopted
can be found near the end of the latest
and
States
many
in
edition of either of the books named in the preceding paragraph.
The following preliminary exercise gives the student, to
some extent, the option of pursuing elementary topics, ad-
topics discussed.
BUSI-
NESS LAW.)
What
What
1.
2.
4.
5.
G.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
18.
19.
Describe an
official
a
right of
Do you know what
24.
25.
26.
27.
88.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
his
What
What
What
What
What
What
What
What
What
action for breach of contract
be
dis-
are the times fixed by the Statute of Limi-
40.
stoppage in transitu?
negotiable instrument?
a promissory note?
a
a bill of exchange?
is
an acceptance?
an indorsement?
is
a protest?
is
is
is
41.
What
To what extent Is a partner liable for the firm's debts?
To what extent can a partner bind the "firm?
44.
How
45.
What
a
is
partnership?
a partnership dissolved?
a corporation?
46.
In your State what are the steps that must
order to form a corporation for business purposes?
37.
39.
What
When
What
40.
Must
41.
What
What
43.
Is
be
taken
In
To what extent is a stockholder liable for corporate debts?
Do you know what is a stockholder's liability in your State?
49.
Do you know what is the liability of a stockholder in a
National Bank?
What is the liability of a corporation from ultra vires acts?
50.
(SECOND PART:
PRACTICAL PROBLEMS ON ELEMENTARY
BUSINESS LAW).
Parsons
to Bishop:
"I offer you 10,000 bushels of
you to pay as much cash down as you choose and
the remainder in thirty days, with interest at six per cent."
Bishop
writes:
"I accept."
Are the parties bound?
2.
I send you an offer by mail, and you send me an acceptance
by telegraph, but the acceptance is lost by the messenger.
Are we
bound ?
send you an offer, saying that It will remain open a week.
3.
I
The next day I tell you that I find the property offered has already
been sold by one of my agents. The next day you find that I was mistaken, and you accept the offer.
Am I bound?
4.
Your father promises to pay you $100 if you will write this
exercise successfully and if you receive a promotion In one year.
Both events happen. Must your father pay?
writes
for $7,500,
instruments
payable
in
foreign
is
the result of executing a
is
grace?
bill or
note without a date?
is
the liability of a drawer?
presentment for acceptance necessary?
is
are the essential features of presentment for acceptance?
notice of non-acceptance be always given to the drawer?
are the formal requisites of indorsement?
are the liabilities of an Indorser who Is In the chain of
title?
is
48.
1.
of
is the effect of inserting or omitting " value received?"
can accept a bill of exchange?
27.
Must an acceptance be unconditional?
28.
Can an acceptance be revoked?
29. Must an acceptor receive consideration?
30. May an acceptance be written upon another paper?
31.
May an acceptance be oral?
32.
What time is allowed a drawee for acceptance?
33.
What is an acceptor's liability?
Discuss acceptance for honor.
34.
35.
Compare acceptance and certification.
36.
Compare the drawer of a bill and the maker of a note.
42.
47.
wheat
Who
38.
an agent's torts?
liable for an agent's crimes?
liable for
is
42.
43.
26.
24.
acceptance supra protest?
accommodation paper?
How does a check differ from a bill of exchange?
What is the responsibility of a common carrier of goods.
Who is liable upon a contract made by an agent in behalf of
Who
Who
25.
What
What
What
23.
Hen?
is
negotiability
principal?
a
is
the
Discuss the negotiability of instruments containing a power
judgment.
1!>.
What is a Joint note?
20.
What is a Joint and several note?
21.
What power has the representative of an estate to execute
negotiable paper In the name of the estate?
22.
As to negotiable paper, what Is the liability of an undisclosed
is
is
Discuss
confess
warranty?
principal?
39.
17.
a
is
Who
Who
money.
is
is
What
What
IS.
Distinguish between sale and bailment?
does title pass in case of sale?
When
What
What
COMMERCIAL
is the law merchant?
are some of the peculiarities of the law merchant as
distinguished from the common law?
3.
What is negotiability?
4.
What is the difference between negotiability and assignability?
5.
What are the features necessary in order to render paper
1.
2.
to
tations in your State?
23.
ON
funds.
of Frauds?
Statute of
charged?
22.
QUESTIONS
PAPER).
14.
Discuss the negotiability of instruments payable with current
exchange.
15.
What is legal tender money?
16.
Discuss the negotiability of instruments payable in current
State?
bond.
What is the Statute of Frauds?
What contracts come within the English Statute
Do you know what contracts come within the
How may
GENERAL
PART:
(THIRD
are the parties to a promissory note?
are the parties to a bill of exchange?
8.
Discuss delivery.
At what time can suit be brought on negotiable paper?
9.
10.
What are the essential features of a bill or note, whether
negotiable or not negotiable?
11.
Discuss the result of designating a payee by a fictitious name.
12.
Discuss the negotiability of instruments payable in installments.
Discuss the negotiability of instruments payable on or before
IS.
a certain date.
Frauds of your State?
Distinguish between penalty and liquidated damages.
20.
21.
10.
Parsons has a claim against Bishop for $1,000. Parsons calls
Bishop's partner, Dane, by telephone, and offers to give Bishop sixty
days' longer time if Dane will promise to pay in case Bishop does
Dane telephones his assent. Is Dane bound?
not.
7.
decisions.
What is a crime?
What is a tort?
What is a court of equity?
What is a contract?
What are the essential elements of a contract?
Do you know when infancy ceases in your State?
What is the effect of an infant's contract?
What is the effect of a lunatic's contract?
What is meant by a contract under seal?
Do you know the effect of sealing a contract in your
What is delivery in escrow?
17.
and does not communicate with me until six months after the work
Must I pay?
is finished.
6.
are statutes?
Explain how law has grown through
What is substantive law?
3.
6.
Bishop owes Parsons $1,000. Bishop, being insolvent, asks
Parsons
Parsons whether he will not accept $000 in full payment.
assents, receives the $600, and afterward brings action against Bishop
Who will succeed?
for the other $400.
7.
Is it of consequence that the debt in the preceding problem
was not yet due when the payment was made?
In the same problem is it of consequence that, although the
8.
debt was due, the agreement for part payment was part of an arrangement whereby three separate creditors of Bishop made the same
agreement with him and with one another?
9.
I send to a painter an offer of $100 if he will paint a certain
house.
He paints the house, but does not tell me that he will do so,
negotiable?
municipal law?
is
consequence that the promise described
was signed and that after the signature was
placed a wafer?
the
GENERAL QUESTIONS ON ELEMENTARY
is it of
in the preceding problem
vanced topics, or both. The first part is composed of general
questions on elementary business law, divided into groups of
The second part is composed of practical problems on
five.
elementary business law. The third part is composed of genNegotiable
eral questions on commercial paper, including the
Instruments Law and is divided into groups of five questions
each.
The fourth part is composed of practical problems on
master
the topics covered by the third part. The student should
submitting written anall the questions and problems, but in
pracswers for examination twenty general questions and five
For this purtical problems should be chosen, and no more.
that
pose all the four parts are available, with the restrictions
selected
not more than two of the twenty general questions
not more
should be taken from the same group of five, and
be clear,
should
answers
The
part.
third
the
from
ten
than
reasons
as
and
distinctions
history,
accurate and full, giving
other
In
definitions.
of
and
rules
of
statements
mere
well as
prepared for
words, the answers should resemble explanations
with the
acquainted
not
yet
persons
intelligent
of
instruction
(FIRST PART:
In your State
5.
titled the Negotiable
What
are
the liabilities of an
indorser
who
is
not
in
the
chain of title?
44.
What
is
the effect of transferring without indorsement paper
payable to order?
45.
What power has the representative of an estate to indorse
commercial paper owned by the estate?
46.
What is a special Indorsement ?
47.
What is an indorsement in blank?
48.
What Is a restrictive indorsement?
49.
What is a qualified Indorsement?
50. What Is a conditional indorsement?
51.
Distinguish between presentment and demand.
At what place must paper be presented for payment?
52.
53.
At what time must paper be presented for payment?
54.
In jour State what is the law as to grace?
55.
How is presentment affected by the loss or destruction of
the paper?
58.
In what instances is notice of dishonor necessary?
At what time must the notice of hishonor be sent?
By whom must the notice of dishonor be sent?
59.
To whom should
56.
57.
60.
61.
62.
63.
the notice of dishonor be sent?
Should notices of dishonor be sent by mall?
What kind of paper must be protested?
By whom may protest be made?
What facts excuse presentment, protest or i.otlce?
BANKING SECTION.
What
What
the liability of an indorser without recourse?
the liability of an accommodation party?
State some absolute (or real) defenses.
State some personal defenses (or equities).
How are absolute (or real) defenses affected by estoppel?
What is the effect of alteration?
64.
65.
66.
67.
68.
69.
Is a
To
72.
notice
The "Report of the Monetary Commission" contains a full treatPages 77-489 should be
of the subjects of Money and Credit.
studied.
The text of the money and banking laws (pages 493-543) and
is
is
whom do personal defenses (or equities) prevail?
holder for a past consideration a holder for value?
what extent does negligence serve as the equivalent
ent
Against
70.
71.
of
?
73.
74.
How
How
a negotiable instrument discharged?
is
a
is
questions.
in your
State?
PART:
PRACTICAL
PROBLEMS ON COMMERCIAL
PAPER).
" 500.
1.
Albany, N. Y., August 10, 1905.
Thirty days after
date please pay to Henry Wheaton five hundred dollars out of any
money in your hands belonging to me. To Messrs. Peters & Co., New
York, N. Y.
Joseph Story."
Give all arguments tending to show
that the above paper is or is not negotiable.
2.
"Philadelphia, Pa., Sept, 1, 1905.
I.
O. U. fifty dollars.
Joseph Story."
Suppose that on Sept. 1, 1905, the above paper is
handed to Henry Peters by Joseph Story and is indorsed by Henry
Peters to William J. Wallace for a consideration of fifty dollars.
If
the above paper was written without consideration, are there any
circumstances in which Wallace can sue Story upon the paper? Give
all
the statistics on pages 547-582 should be worked over in connection
with each appropriate chapter. Valuable articles on economic subjects
will also be found in The Bulletin.
Answers to all questions in the following preliminary exercise
should be worked out by the student and be submitted for examination.
Answer the questions concisely but fully. Follow the order of quesNumber the answers to correspond with the
tions as given below.
person secondarily liable upon a negotiable instru-
ment discharged?
75.
When was the Negotiable Instruments' Law adopted
(FOURTH
115
(ADAMS' COMMERCIAL GEOGRAPHY).
1.
What has determined the position of large cities? Illustrate
by reference to the leading cities of America and Europe.
2.
Describe the predominant surface forms of the United States.
3.
The history of the distribution of the manufacturing industries
of the United States.
4.
5.
6.
7.
The agricultural resources of Italy.
The leading industries of Australia.
The climate, products and commerce of Hawaii.
(a) The various methods of gold production; (b) the leading
gold-producing countries in the order of their importance.
8.
(a) The centers of the pig iron industry of the United States;
(b) of the iron ore industry (giving their relative importance).
(b)
(a) Where and under what conditions is hemp produced?
9.
where and for what purpose is it consumed?
10.
(a) The different kinds of sugar; where are they produced?
(b) their methods of production; (c) the relative importance of sugar
consumption among various nations.
reasons.
" Baltimore, Md., Sept. 1, 1905.
Three years after date I
promise to pay to Williams & Co. one thousand bushels of A No. 1
hard wheat. C. H. Johnson." If Williams & Co. obtained the above
note from Johnson by fraudulent representations, and if it reached the
hands of an innocent purchaser before due, .what reasons can be urged
to show that Johnson will or will not have to pay it?
Wheaton wrote a note to the order of Peters and locked It in
4.
3.
own desk. Wheaton bribed a clerk to let him have access to the
desk and took out the note, and before it was due indorsed it
for
value to Howard, who knew nothing of the facts. Would Howard
be
able to hold Wheaton?
his
(GIDE'S POLITICAL ECONOMY).
Distinguish between (a) the laws of a nation, (b) the laws of
physics, and (c) the laws of political economy.
12.
What forms of wealth are capital?
13.
The origin of the right of property.
14.
Enumerate the various theories of value.
15.
Define and illustrate the law of diminishing returns.
16.
Discuss Ricardo's theory of rent.
11. Distinguish between (a) the laws of a nation, (b) the laws of
11.
profits.
Wheaton wrote a note payable to bearer and gave It to a
play with. The boy dropped it in the street. It was picked
up
18.
Could Peters recover on it? If Peters sold it before maturity to Howard, who knew nothing of the facts, could
Howard recover from Wheaton? How would the answer be modified if Howard
took the paper after maturity?
" Chicago, May 1, 1905.
6.
One year after date I promise to
pay to the order of Henry Peters one thousand dollars, and if suit be
brought hereon I promise to pay a reasonable amount as attorney's
20.
5.
boy to
by Peters.
fees.
Henry Wheaton."
in blank
will
If the above note be stolen while indorsed
an innocent purchaser for value before maturity get a
good claim against Wheaton?
"Chicago, May 1, 1905.
7.
Ten years after date we promise to
pay to bea'er one thousand dollars at Bankers' Trust Co., New York
City.
At the bearer's
Wheaton Construction
payment will be made in London. The
by Henry Wheaton, President."
If there
were no consideration would a purchaser without notice from a holder
of the above paper get a good claim against the makers?
8.
"Chicago, May 25, 1905.
Due William Peters or order forty
dollars.
Henry Wheaton." If Peters immediately indorses the above
paper to Howard for value, does Howard take a right of action against
Wheaton and is it free from all personal defenses?
9.
A signs and delivers to B a note to B's order and for B's accommodation. Can B recover from A on the note? If B indorses it
for value and before maturity to C, who knows it to be accommodation
paper, can C recover from A ?
option,
Co.,
A makes
a note in favor of B or order. The note is obtained
by fraudulent representation. B indorses to C, who pays no consideration and has notice of the fraud.
C indorses to D, who pays no
10.
consideration and has no notice. D indorses to E, who pays consideration and has notice.
E indorses to F, who pays consideration and has
no notice. F indorses to G, who pays no consideration and has notice.
G Indorses to H, who pays no consideration and has no notice.
Indorses to K, who pays consideration and has notice.
Indorses to
H
K
L, who pays consideration and has not notice.
L indorses back to B,
who pays consideration. Suppose that all the indorsements were made
before maturity, which of the foregoing parties, if he happened to have
been the final holder, would have been able to recover from A, and
which unable?
POLITICAL ECONOMY.
The student of Political Economy should first carefully read C. C.
Adams' "Commercial Geography." He should lay the foundation of
his study of Political Economy by acquiring a knowledge of the general facts of commerce and industry, the climate and geographical factors affecting production, and of the agricultural, manufacturing and
transportation industries of the United States and of other countries.
On the basis of these facts and of whatever business experience the
student
may have
ciples of Political
acquired
The
It deals
difficulty of political
economy
lies
with business methods and problems,
It calls for a knowledge of practical business, but, much more fundamentally, it calls for capacity to generalize, with a view of constructing the general principles under which orderly human society organizes
Like every other science, Political
Itself to satisfy Its physical needs.
Economy has its peculiar terms and distinctions. These must be mas-
tered.
A. T. Hadley's "Economics" Is sugshould be read with extreme care, with a view to acquiring
proper point of view from which to approach modern economic problems and also to becoming familiar with some of the leading contro-
For more advanced work
gested.
Tersies.
It
The
The
The
origin of money.
difficulties
of co-operative
production.
history of protectionism.
(HADLEY'S ECONOMICS).
Illus
Distinguish between public wealth and private wealth.
trate by reference to modern times.
22.
The economic advantages of the emancipation of slaves.
23.
Describe in detail the operation of competition in establishing
prices, and illustrate to show various forces that drive prices up or
21.
down.
What
distinguishes gambling from speculation?
Describe the overproduction of machinery and its results.
26.
Describe the elasticity of bank deposits and its connection
with the currency of the country.
27.
Distinguish between commercial rent and economic rent, with
24.
25.
illustrations.
What
28.
is
the so-called
"wage fund theory?"
Show that
it
is
not tenable.
29. Various methods of co-operation between labor and capital,
and what are the difficulties of profit sharing?
What is a favorable and what is an unfavorable balance of
30.
trade
?
(REPORT OF THE MONETARY COMMISSION).
31.
origin,
Describe in detail all the coins of the United States, their
size, legal tender and quality, and the means of redeeming
them.
32.
Distinguish
money as a measure of value and as a medium
What
qualities are essential to each?
Illusdoes token money differ from standard money?
trate by reference to existing conditions in the United States.
34.
Summarize the experience the United States had with its
silver currency from 1878 to 1895.
35.
The origin of the National Banking system and Secretary
Chase's part in solving it.
Describe precisely what is meant by "bank asset currency,"
36.
the advantages claimed for it, and the arguments of those opposed
to such currency.
Enumerate the banking systems of the world that have branch
37.
banks.
What inferences can be drawn from their experience?
38.
When was the Resumption Act passed, and what were its
provisions, and how and by whom was it carried out?
Summarize the effect of paper money issues on the cost of the
39.
of exchange.
33.
Civil
40.
How
War.
Summarize the
of various commodities
effect of paper money issues upon the prices
and upon wages.
RESULTS AND PROSPECTS.
he should then study Charles Gide's "Prin-
Economy."
in its apparent simplicity.
19.
There are now thirty-seven Chapters of the Institute,
with a total membership of 5,350, being an increase of over
a thousand during the past year. The number of students
outside of Chapters cannot be accurately given, for the
reason that there is no way to ascertain who they are
until they apply for examination papers.
There are at
present 299 applications for preliminary examination in
Practical Banking, 178 in Commercial Law and 199 in Political Economy.
Judging from text-books ordered through
the Institute or direct from publishers it is estimated that
:
BANKERS' CONVENTION.
116
there are between 2000 and 3000 students at
work on the
study courses.
Fifty-one students have already passed the preliminary
examinations in Practical Banking, eight in Commercial
Law and thirty-six in Political Economy. A record of
75 per cent, is required in passing any preliminary examination. Twenty-six students have attained a percentage
of over 90.
Considering the high standard maintained, these results are more than satisfactory, and the first final examinations for certificates arranged to be issued by the
American Bankers' Association jointly with the Institute
Such final examiwill be held during the coming winter.
supervision
of local
the
under
nations will be conducted
examined
moderators, who must certify that students
bave written their answers to questions within the specitime and without assistance of any kind. It is expected that a select few will meet requirements.
The only criticism of the educational standard established by the study courses and examinations is that it
seems too high, but in view of the fact that the demands
of the banking business are for more thoroughly equipped
men at the top, rather than more superficially equipped
fied
men
upon such critidisparagement.
Any
cism as indirect indorsement and not
lower standard would certainly not be in keeping with the
character of the American Bankers' Association.
The contract heretofore existing under which a portion of the work of the Institute was conducted by outside
parties has been terminated, and the direct management
of every department is now in the hands of the Trustees.
Tour committee appreciates the cordial support thus
far given to its work by the members of the American
Bankers' Association, collectively and individually, and
at the bottom, your committee looks
will endeavor,
by a judicious combination of enterprise
to merit a continuance of your invalu-
and conservatism,
able approbation.
Respectfully submitted,
J.
B. Finley, Chairman.
The next is the report of the Committee on Currency. Mr. James M. Donald, the ChairThe President
man,
:
not here, and Mr. Pugsley will submit the
is
re-
port.
providing that all obligations, as far as practicable,,
should be, not on demand, but on time. It would seem,
the part of wisdom to retire the legal tenders when thecountry is prosperous, rather than in the throes of panic,
when the danger of such a currency and the necessity for
its retirement are, possibly, more apparent. It may be that
heroic treatment will be needed, and that a long time
bond, payable at the pleasure of the Government, bearing
an exceptionally low rate of interest, to be used specifically for bank circulation and public deposits, shall be issued
to provide for their retirement.
to
resume."
the
even probable that any future Secretary of
the Treasury will depart from the policy of his worthy
who have so ably maintained the parity of
forms of money coined or issued by the Government,
although no express statute existed or now exists for the
predecessors,
all
to
the absence in
Europe of the chairman of the committee, Mr. James M.
Donald, of New York.
Public sentiment, however, as
expressed by individuals and through the banking journals of the country, seems to
demand
that the question
of currency reform should be presented at this great convention, especially as
it
if
the silver certificates, silver
dollars or silver coin are to be kept interchangeable with
gold under all conditions that may arise, a reserve fund
of at least $150,000,000 should be set aside to provide for
the redemption in gold of about $000,000,000 of silver out-
standing.
If the silver certificates are not issued in larger
denominations than five dollars, it would seem that a reserve fund of $150,000,000 in gold should be sufficient to
protect the Treasury. Provision should be made so that
no one could question at any time the value of any dollar
issued or coined by the Government of the United States.
SURPLUS FUNDS IN THE UNITED STATES TREASURY.
The Secretary of the Treasury should have discretionary power to deposit in the national banks such portion of the surplus funds in excess of $50,000,000, whether
derived from customs receipts or internal revenue,
he may deem proper, to prevent absorption of money
the Treasury.
Such deposits should be guaranteed
United States bonds, or other securities acceptable
the Secretary of the Treasury.
as
by
by
to
No
reserve should be required against Government deposits in our banks, as they
are secured by the pledge of United States or other bonds.
interest should be allowed the
Government
CONTRACTION AND EXPANSION OF THE CURRENCY.
1
owing
But
interchangeability.
We
American Bankers' Association:
of presenting a report,
to resume, is
upon these deposits.
The Currency Committee has questioned the advisability
The way
INTERCHANGEABILITY OF SILVER AND GOLD.
Report of the Currency Committer.
To
"
to retire, is to retire.
It is not
If practical,
Mr. Pugsley submitted the following report
The way
convenes in the capital
city,
the
seat of all Federal legislation.
complain about the rigidness of our currency system, and yet we have a cast iron rule or law that will
not allow national bank circulation to contract or expand, except within the most prescribed limits.
There
should be an early amendment or repeal of the present
of $3,000,000 per month upon the withdrawal of circulation, and either no limitation should be
placed upon the withdrawal or the limit should be increased to $6,000,000 or $10,000,000 per month, so that
expansion and contraction might, in a measure, be autolimitation
matic.
THE QUESTION OF REFORM.
SUPPLEMENTARY CURRENCY.
an exceedingly intricate problem and yet one
upon which the bankers of the country should be willing
to give an expression of opinion. Experience as a member
of the Banking and Currency Committee of the House of
It
is
Representatives has led to the belief that
if
the bankers
of the country could agree upon some definite, sound,
practical, sane plan of currency reform,
and unitedly and
it upon the members of Congress, favorable and desirable legislation might be secured.
strenuously urge
RETIREMENT OF UNITED STATES NOTES, OR LEGAL TENDERS.
United
tired.
States notes, or " legal tenders,"
should be
re-
Borrowing on demand, either by the individual
or by the Government, unless there are resources imme-
fraught with danger to both Government and individual. It cannot be justified in any
country, except in such emergencies as led, possibly, to
the original issue of the legal tenders, or "greenbacks."
It is obvious that they are debts of the Government payable on demand.
A strong, prudent Government should
avoid the danger arising from pressure and panic by
diately available,
is
An
additional or supplementary currency, other than
that secured by United
States bonds, might be issued
times of great financial stress along the lines suggested
by Secretary Shaw, so as to appear identical with the
present national bank note, but heavily taxed to in-
in
sure
its
retirement
when
the conditions which brought
it
had passed.
As the Honorable Secretary
has said, we should not inject into our circulating medium
any new form of money that might become an element of
into existence
we advertise its existence nor our
Such a currency, in consideration of the
heavy tax laid upon it, should be guaranteed by the Government, and the usual 5 per cent, fund should be maintained, as provided in the present law.
If banks holding 50 per cent, of their capital in Government bonds
were allowed to issue a limited amount of supplementary
currency it might prove a desirable remedy in time of
panic.
Its redemption could be accomplished by the individual bank depositing in any sub-treasury an equal
amount of lawful money.
alarm, neither should
extremity.
:
:
BANKING SECTION.
may
be questioned whether the time has come in
this country for any departure from our present system
of national bank circulation, although a supplementary
currency might be made perfectly secure and a valuable
addition to our system, as suggested by Secretary Shaw.
The enormous output of gold, amounting throughout
the world to about $1,000,000 per day, the major part of
which the United States undoubtedly receives from its
It
own mines and
trade relations, provides for an increase
in the circulating medium, which, while it may not eliminate the necessity for a supplementary currency, may in
a measure lessen the demand.
In any discussion of currency reform it should be
remembered that the banks are the servants of the people, not the masters, and that reform should not be in
the interests of the banks alone, but in the interests of
We should desire and expect the American
all the people.
dollar to be the world's standard of value, and our cur-
rency system to equal or surpass that of any other nation
on the face of the globe, but only by the most conservative
legislation can this be accomplished. Public opinion in this
country should be so strongly and so thoroughly grounded in the great foundation truths of finance and currency
that we should not only be right but stay right. These
problems are well worthy the consideration of this convention, representing so largely the banking, financial
and commercial interests of the country. A sound, stable
and responsive currency is one of the greatest bulwarks
of national greatness, glory
and power, and one which
will prove of inestimable value to
its
business interests.
Cornelius A. Pugsley.
The President
:
The next
is
the report of the
Com-
mittee on Cipher Code.
Mr. Blosson submitted the following report:
Report of Committee on Cipher Code.
Upon
the recommendation of the Executive Council
New York in 1904 instructed the
President of the American Bankers' Association to appoint a committee with power to act on a resolution
the Convention held in
with the Executive Council for presentation to said
Convention, having for its object the establishment of a
cipher telegraphic code for the exclusive use of the members of this Association.
Acting under the authority
filed
thus delegated to him the President chosen to office in
appointed as the members of said committee
Mr. James G. Cannon, of New York Mr. W. T. Fenton,
of Chicago, and Mr. Frederick F. Blossom, of Peoria.
New York
;
Immediately upon its appointment the committee began
and after a very careful consideration of the
subject arrived unanimously at the conclusion that the
creation of a cipher code for the purposes and in tb>>
its labors,
manner set forth in the resolution of record was feasible
and desirable and would be beneficial to the American
Bankers' Association and to its membership.
The committee then proceeded to construct a code
sufficiently broad and comprehensive for the general and
,
probable uses of the Association, omitting such material
as was deemed unnecessary for a code of the character
and scope contemplated. Having finished the task set
for it the committee on February 28, 1905, filed the
following statement with the Secretary of the American
Bankers' Association, to wit
to
117
certain resolution relative to the preparation of a cipher telegraphic code presented to the Executive Council of the American
Bankers' Association at its session in the city of New York Tuesday, September 13, 1904, and we further hereby request and
authorize (he said Secretary to make certain changes of the fcej
words at such intervals as his judgment may direct, according
to the manner specified in certain of the instructions aforesaid
accompanying said code which have already been made a part
thereof, as above stated.
are aware, the
code has been published and distributed by the Secretary
In
in accordance with the directions of the committee.
concluding its report the committee takes the liberty of
emphasizing the following propositions relative to the
As the delegates
code
to the Convention
—namely
furnished to members by the Association simply as an instrument of economy and convenience
and without responsibility on the part of the Association.
2.
The code is designed particularly for use between
members having no established code connections together,
and is not intended in any way to supplant private codes
The code
1.
in use
3.
between banks and their correspondents.
Inasmuch as the code is standard as between memno
having
bers
is
is to be employed in
be particularly designated by the sender of the dispatch in such manner as
circumstances may at the moment seem to render most
the American Bankers' Association
translation in such instance
may
desirable.
In order that confusion may be avoided and that no
unnecessary delay may ensue in translation it is hereby
suggested in all cases in which members of this Asso-
communicate
any other cipher telegraphic code,
except that of this Association, with others members,
with whom they have no regularly established code con-
ciation
nections,
in
senders
that
specifically
designate
the
code
Western Union, State Association, &c.) used
by the employment of some "indicator" (either word
(Lieber,
or phrase) at the beginning of the message. By means
of this " indicator " the receiver of said message can
readily determine what code
purpose of translation.
Members
is
to
be employed for the
American Bankers' Association in
communicating with one another by means of the official
code may likewise employ an " indicator " of their own
choosing, if they deem such action desirable.
As already stated, however, the official code of the
American Bankers' Association is to be regarded as
standard at all times as between members having no regularly established connections together, and on that account, after careful consideration of the matter, it has
been decided that it is unnecessary, and further, that it
would be unwise to create an " indicator " to be employed
of
the
messages written in terms of the
code of the American Bankers' Association.
Respectfully submitted,
in connection with
offi-
cial
Frederick F. Blossom,
Vi. T. Fenton,
We, the undersigned members of the committee, with power
appointed by the President of the American Bankers'
;
is
it
be translated in terms of the Association code. Should
members, however, occasionally desire to communicate
by means of the code with other members of the American Bankers' Association with which they additionally
have private code connections the fact that the code of
James
act,
Association under authority of the annual convention of said
Association held in the city of New York September 14 to 18.
1904, do hereby submit the annexed cipher telegraphic code and
recommend its distribution to the membership of said Association for the purpose of such use thereof solely as an instrument
of convenience and economy, and without responsibility on the
part of the said American Bankers' Association, as each member
may for itself determine to make under the rules, regulations
and restrictions therein contained and hereby made a part
thereof and we further hereby direct and authorize the Secretary of said Association to have ten thousand (10,000) copies
of said code printed and bound in suitable form, and also further direct and authorize the said Secretary to furnish a copy
of said code as thus printed and bound to each member of the
American Bankers' Association in the manner specified in a
together,
relations
established
to be assumed by members receiving cipher messages
from other members of this Association with which they
have no regular connections that said messages are to
G.
Cannon,
Committee.
The President:
It affords
me
sent to you Mr. Robert Blyth,
Bank
of Scotland.
great pleasure to preof the Union
Manager
(Applause.)
The Scotch System of Banking, by Robert
Manager of Union Bank of Scotland.
Blyth,
[Mr. Blyth's paper in full will be found on pages 87
to 89 of this publication.]
Mr. Oliver
move that
S.
Bond
of Toledo, Ohio
: Ir.
:
President, I
the thanks of this Association be extended to
Mr. Blyth for his most excellent address.
::
BANKERS' CONVENTION.
118
The motion was numerously seconded, and the
it was unanimously agreed to.
ques-
tion being taken
Practical Benefits of Membership in the American
Bankers' Association, by Mr. Walker Hill, President Mechanics' American National Bank, St.
Louis, Missouri.
[Mr.
paper in
Hill's
full will
be found on pages 97
to 98 of this publication.]
CALL OF SECTIONS, NORTH, SOUTH, EAST AND
country, because it is our country.
friend from Boston get up. Let me
The President
I
Mr. Fletcher:
can say or add
had
no idea of saying a word here to-day, but when the South
is called I want it distinctly understood that your humble
servant is present and always has a good word to say for that
:
Mr. President,
I
is
glad to see
my
out of order.
—
you (laughter) anything
the comfort and pleasure of this Con(Laughter.)
I do not believe in be-
to
tell
tion
The President
Mr. Fletcher
Little Rock, Ark.
me
Let
am
you
vention I will do it.
longing to a crowd that says " Aye " to everything.
I did
not agree with the gentleman from Georgia in his resolu-
WEST.
Mr. Fletcher, of
—The gentleman
I
tell
The gentleman's time has
:
:
I
am
done.
I
expired.
thank you for your kind
attention.
The President: The gentleman from Boston
is
recog-
nized.
I hate a man who does not love his
(Applause.)
native soil I hate a man that does not admire his own
I had not a moment's notice
people.
I hail from the South.
that I was going to be called on, and if any one else from
the South had responded before me I would have had nothing
Mr. Bennett I am very glad to listen to the gentleman
from Arkansas, and, like most of the speakers here, at some
time during the course of his remarks he gets around to
Plymouth Rock, or the Pilgrims, or Boston. I am a Director in an institution in Boston, and I had not taken very
to say.
much
section.
own
;
land of cotton. We live in a land where
God Almighty has given us sunshine and rain, and I can say
also reasonable prosperity.
We live in peace down there.
As you all know, we have had a terrible time there in the
We
last fifty years, but we are now coming to the front.
are progressing now. When people imagine that the negroes
of the South are idle and the whites are in turmoil they are
mistaken.
We live down there in peace with our former
slaves
former masters and slaves now work side by side
for the upbuilding of that country and the advance and
prosperity of this great republic of ours.
(Applause.)
Last year we raised over 14,000,000 bales of cotton. In
the days of slavery we never raised over 4,000,000 bales.
That 14,000,See what free labor is doing for that country
000 bales of cotton was worth over $700,000,000 in gold.
The seed from that cotton was worth more than $70,000,000.
So you see the seed that comes out of the cotton is worth
more than the gold that is dug from any State in this Union.
As a matter of fact, cotton does more for the human family
in the way of giving employment than any other commodity
on the face of the earth. From the time that the plow starts
in the spring employment is given through the summer, during its cultivation and during picking time, until it is finally
ginned and shipped to all the world. It not only gives employment to the workers in the field, but it gives employment
to workers on the steamboats and the railroads, and then,
later, when the cotton arrives in England, or wherever it is
manufactured, it gives employment to the mill workers there.
But we are manufacturing cotton goods in the South now.
Just think, over 2,000,000 bales of that cotton is now spun
in the South, as against 2,000,000 bales of it spun in
the North.
So in our entire country we spin over 4,000,000 bales of cotton. Sixty-one per cent, of that cotton is
shipped abroad. That means $300,000,000 of money. That
attends to our balance of trade and the exchanges between
Great Britain and the United States.
We
live in the
;
!
The President
The gentleman's time has
:
expired.
Gentlemen, my time is up,
Mr. Fletcher (continuing)
have been called down. I did not tell you all I wanted to
about the South, but the cotton question is a great ques:
1
tion in this country.
The President
The gentleman's time has
:
expired.
:
interest in it, but since hearing the address of the
Comptroller of the Currency yesterday I have concluded to
take an interest in it. In fact, my case is very much like
that of one of two drummers who met upon the street and
one said to the other " Tom, how is business? " Tom said
" Pretty good, I have an interest in the business now."
" I
congratulate you," said the other, "when did it happen?"
" Yesterday the boss called me into the office and he said
Tom, if you don't take more interest in the business I will
discharge you !' " (Laughter.)
Now, when I took some stock in the bank to please a
friend I supposed I was purely ornamental, but I find the
rugged and wholesome utterances of the Comptroller of the
Currency and the bank examiners have put a different interpretation upon it, and I propose to take an interest in it.
Boston does not always get the credit that it deserves.
When I first began to know about business matters, about
25 or 30 years ago, there were 52 National Banks in Boston.
Now there are but 30 National Banks. But you
notice when Mr. Vanderlip was talking yesterday and wished
to place the highest encomium upon the Middle States he
said that some time or other the Middle States would be as
important an investment center as Boston.
In Government reports and printed books the population of Boston is 500,000 or 600,000.
As a matter of fact,
it is a million and a half.
I went to Chicago with some gentlemen once and somebody assured us that our welcome was
120 miles long and 10 miles wide. Boston has not taken in
suburbs to that extent. There have been differences of opinion as to the ringing of the curfew bell and as to the issu:
:
;
'
ing of liquor licenses and so on, and so the individuality of
the little municipalities around about has been maintained
but in 10 miles around Boston there are a million and half
and there is more wealth per capita there than
any other city in the United States.
I am aware that the bank deposits accumulate in New
York City, and one of the most amazing things that was
told us yesterday by the Secretary of the Treasury was that
the commerce passing by Detroit is greater than the commerce of New York, London and Liverpool combined. Another thing which I notice particularly about that is that
And so with
it does not stop there.
the commerce passes by
the deposits in New York City as compared with the wealth
of people,
than
in
—
of Boston.
Mr. President, I wish to tell you that Boston is still
on the map, and the things which we are particularly proud
of are not that it is near Plymouth Rock and Bunker Hill
alone, not that it has Harvard College, to which my friend
refers with pride as the place where his son is, not that it
is the greatest investment center in the United States, but
that it is in the same country which contains New York,
Chicago, Detroit, Little Rock, Arkansas; the same country
which is becoming the greatest nation on the face of the
So,
I simply want to add that
Mr. Fletcher (continuing)
the South is in the Union, and she is there to stay. When
you
this country is invaded, remember what I say to-day
will see the men of the South rallying around the flag as
they did in Mexico and at New Orleans.
:
;
The President
Mr. Fletcher
:
The gentleman's time has
:
I
beg your pardon
coming from the South
Let me
tell
you
I felt it
for
incumbent
expired.
but
one word.
trespassing,
to say
earth.
.
Mr. Bennett of Boston
The President: Mr. Bennett
:
is
shows you the
:
recognized.
diffidence
I
feeling
we have
in the South.
I hope the members will understand
are glad to hear from all of them. We are glad
to hear from any member present as to the business conditions in their respective sections of the United States.
Mr. Campbell, of Illinois: Mr. President, I come from a
State which I feel proud of, a State which gave the nation
Lincoln and I live a little south of where Grant lived. John
A. Logan also came from our State and many other distinguished men whom you all know of. We are proud of them.
They are now dead and gone, but we have about 5,000,000
Perhaps the great majority of them are good and sturdy
left.
that
in speaking, behave some
here
as
a Director in
coming
delegate
cause I am simply a
Some of the
live.
which
I
in
city
in
the
bank
a small sized
gentlemen here are not accustomed to think, even, in less
than millions of dollars, but I felt I must get up and assure
you that Boston is still on the map.
I have
(Laughter.)
Mr. Fletcher: Just one minute.
but it
boasting,
njt
a boy at Harvard College to-day. I am
Mr. Bennett
(Applause.)
The President
Mr. President
We
love this
we
:
110
BANKING SECTION.
While we do not raise cotton, we do raise corn
and hay and stock, and we are being heard commercially in
that way. I am glad to say that our crops this year are very
flourishing and our State generally is in a most flourishI simply want to give you this report from
ing condition.
farmers.
(Applause.)
Illinois.
Mr. Havill, President Merchants' National Bank, St.
Cloud, Minn. Mr. President, from the rolling prairies of her
Southern boundaries to the evergreen forests of her Northern
:
line, the
hum
of the wheels of her
manufacturing plant, and
the lowing of kine ascend to Heaven, a powerful
anthem
indicative of the happiness, prosperity and gratitude of the
people living in Minnesota, the bread and butter State.
We are a State of diversified industries, a State of no
We will ship products from our State this
total failures.
year ranging from catnip leaves to 21,000,000 tons of iron
ore.
Cattle bred within our State in competition with the
The Father of Waters
world's captures the first prizes.
rises within our State, and it and other streams turn the
wheels of manufacture, furnishing cheap power and creating
innumerable industries which, in turn, dispense immense
residence of any
summer
dollar banquet or million dollar
presidents of insurance companies.
(Applause.)
Mr. Burgwyn of North Carolina: Mr. President, twenty
years ago it was my fortune to attend a meeting of the
Bankers' Association in North Carolina. It was then in order for the call of sections to be made, as now, and I sat there
representing a bank in North Carolina and listened, among
other speeches, to a speech from a gentleman from Massachusetts, and heard him say of that State that it really
comprised more wealth than was embraced in eight or ten
of the Southern States,
me on
and
it was proper for
Twenty years from
that
I felt, sir,
that occasion to remain silent.
that time, to-day, I feel differently about it. I can say to the
delegates present here to-day that our Southern land in the
last four years has increased its taxable property $225,000,-
•
sums
most
Our farmers
to their employes.
and market
raise
al-
the products of an American farm. We are a State
an empire within ourselves, not dependent on any State
or country for our maintenance we can furnish the necessities and most of the luxuries of life, and also confer culture and intellectual development if necessary for a comA child born
plete existence, from the cradle to the grave.
in the State of Minnesota may be nourished upon the purest
milk in the world, coming from the product of 2,000,000 dairy
cows. As he grows older that child's life will be sustained
on edibles produced in the State of Minnesota, from breakfast foods to moose meat he will be clothed in clothing manufactured from the fleece of Minnesota sheep he will be educated from our sixteen million dollar public school fund he
may be enrolled in our College of Agriculture and associated
there with peoples who come from all over the United States,
from Maine to California, and from foreign countries. He
may become one of the princes of humanity and care-free, a
Minnesota farmer. At our university he may imbibe of any
profession which he may choose, op he can enter many successful manufacturing industries now established in the
State, which build anything from a fish hook to a whaleback vessel. We can furnish him a helpmeet from among
the fairest women of the Union he can spend his days in a
land fanned by the health giving breezes which filter through
our pine forests, and when he has passed away we will erect
upon his grave a monument of time enduring granite. (Ap-
that
all
is
;
;
;
;
;
progress that we are proud of, but we
acter of our population, of our people
down
there, sir,
tentatiously
and our material
are proud of the char-
It is not only our locality
000 a year.
and
men who work
way
there.
hard, live quietly
We
have
and unos-
sir, although they do not
of money they leave valuable
of character, and that is better than the
But,
die poor.
leave legacies large in the
legacies in the
down
way
accumulation of money.
As our friend from Arkansas has said, we of the
South are devoted to the Union no longer is there any North
and South, East and West in spirit we are one people. But
1 differ from our friend from Arkansas in one thing he
said.
I am a Democrat, and always have been, but if the
question were to come before me I would vote for a subsidy
from beginning to end. We have to protect our foreign
possessions, and how can we do it without ships and sailors?
In case of a foreign war how would you get the men on the
Philippine Islands or on Hawaii or our other foreign possessions unless we had the ships? I am in favor of subsidiz;
;
ing
them and making us a great country.
A
Union of hearts, a Union of hands,
Union of States no one may sever,
Union of thought, a Union of men,
The American Union forever.
A
A
(Applause.)
Mr. Livingston, of Michigan
tlemen of the Convention,
am
I
:
Mr. President and gennot going to occupy your
time at this late hour with a lengthy speech about the wonders of Michigan.
You will probably remember what has
been said about Michigan, " if you want to see a beautiful
peninsula look around you." I will not occupy your time in
you about our wonderful copper mines which exceed
others in richness and value. What I want to do is to extend an invitation to the American Bankers' Association
here assembled to meet in the city of Detroit in 1907.
I had hoped to come here and extend an invitation to you
to meet with us next year, but, unfortunately, on account
of some complications which have arisen in our hotel facilities, a number being under construction, and it not being certain exactly when they will be completed, we have thought
telling
all
plause.)
The President
:
The gentleman's time has
expired.
Mr. Havill (continuing)
In conclusion, I want to say
that the demand for mechanics and laborers was never so
great or wages so high as now in Minnesota, that a large
percentage of the workingmen own their own homes. These
being facts, it necessarily follows that the banking business
is pleasant and profitable.
The North Star State sends her
sister States a greeting.
She hopes you are all enjoying the
same prosperity. (Applause.)
Mr. Moses, of Kansas Mr. President, the West is naturally modest, being composed of the children of the East
and South and North sent West to open up that once uninhabited terrritory, to carve out an empire greater than any
in the world.
What she has done is a matter of history.
Over 24 States and Territories now exist in that section,
and in agriculture and minerals and cattle the West is now
:
:
equalling or exceeding the East.
In my own State, a small part of the " Great American
Desert " we have to-day 489 State Banks, 18 Private Banks
and 171 National Banks, with a capital of over $20,000,000.
We have deposits over $118,000,000, with loans over $89,000,000, an increase in loans of over $8,000,000 compared
with last year, and with over $47,000,000 in cash over 39
per cent, of the deposits. Kansas is now in a normal condition, her pulse beats regularly and her people are happy.
For the past seven years she has made more progress than
in any fourteen years previously.
Kansas has always been
loyal, it has always been a foremost State in the progress of
civilization and the rights of all mankind.
She stands today as the beacon light and the tower from which springs
all of the good, and I might say all of the evil, which in the
end is sifted out and is for the betterment of mankind. She
—
advisable, in order to be absolutely sure to be able to take
care of you all, to invite you to meet with us in 1907 rather
than next year. I want to extend this invitation as a caveat,
to forestall any others that may come in for that particular
year.
it
you that the bankers of the State of Michigan
who live there and who
think it is the most beautiful city in the United States, will
do their best to entertain you and make your stay there
pleasant if you honor us with the Convention. We certainly
have a hospitable people, and my friend Russel, sitting back
here on the platform, at one time said that we have the
most beautiful women in the United States. Each and all
of us extend to you a most hearty invitation and assure you
that all the hospitality for which Michigan is noted will be
extended to you in 1907 if you will kindly consider our request to hold your Convention in Detroit at that time.
I thank you very much for your attention.
(Applause.)
I assure
and the
A
city of Detroit, those of us
Delegate: Mr. President,
may
I
make a
response
of one minute in behalf of a gentleman from Spokane,
Washington?
The President We will be glad to hear you.
The Delegate (reading) Response by D. W. Twohy,
President of the Old National Bank of Spokane.
:
:
We
contributes liberally to everything for the advancement of
the East, not only in insurance, but is willing at all times
to give to all of these institutions enough for them to live
Washington is the richest State in the Union.
have
the most productive soil which will grow sixty bushels of
wheat to the acre finer fruit than New xork, and all agricultural products in abundance. Our fisheries supply a large
upon
portion of the country.
well,
but she
is
opposed to any one hundred thousand
—
—
We
have more timber than Michi-
—
;
BANKERS' CONVENTION.
120
gan, Wisconsin or Minnesota ever had, and are only just beginning to manufacture it. We have more coal than Pennsylvania, more iron than Minnesota, 40 per cent, of the lead
produced in the country comes from the Cceur d'Alene district of Idaho, 100 miles from Spokane.
In the production
of precious metals we will soon outstrip Colorado.
We are
doubling our population every five years, and hope to do
We may
better.
used to call the State of Allegheny.
We make the iron
mines of our friends from Michigan, that is we make the
machinery to develop them, and we develop the gold mines of
Colorado. We make electrical equipments used all over the
United States, and we build bridges across the rivers of the
world we build the electric roads that run in London. So
if you want to find the hub, that is the real center of all these
industries that have been mentioned here, come to Pittsburgh.
If you come after night you will likely feel very much like
the Irishman did who had just come over from the old country.
Two Irishmen came to this country, and in the morning one got up a little ahead of the other. There was a fire
and the fire engines were going past, and the Irishman says
to his friend " Mike, Mike, get up, they are moving hell, and
two loads have already gone by." So that is the way Pittsburgh looks after night. If you want to get to the middle of
things, as it were, come down to Allegheny.
(Applause.)
Mr. Thatcher, of Denver, Col. Mr. President, Colorado
is far away from these old States.
We have been hearing
about their advantages, and I would be glad to make a few
remarks in behalf of Colorado. We have had some trouble in
our State in the last year or two. We have been cursed with
labor troubles and damned by politics, but we are all right
now. Our Supreme Court has taken jurisdiction of things
in fact, has taken jurisdiction of everything from a dog fight
to an election, and has settled affairs so that we now have
peace and prosperity. I want to say a word about our products and resources, something that all bankers want to hear
You may talk about your cotton and your corn and
about.
everything else, but you have to find a market for all of
these things, and you overproduce them at times.
But you
do not overproduce gold, and that is our main product. This
year, 1905, will be a banner year with us.
We are produc:
ing now in three-quarters of the year passed at the rate of
over $30,000,000 of gold per year, to say nothing of other
minerals, such as copper and zinc and lead.
You observe
that I have not mentioned silver, because I do not want to
cause a panic in the Convention (laughter), although we
produce a little silver, too.
Outside of that, gentlemen, I wish to call your attention
particularly to the fact that we are not exclusively a mining country we are now engaged largely in the production
Less than five years ago there was not a
of sugar beets.
sugar beet planted in the State of Colorado, to-day there are
50,000 acres of beets planted, and our products from sugar
beets range from $12,000,000 to $14,000,000 this year. From
that you can see that we are not entirely a mineral State.
I wish to state to you bankers who occasionally take a
vacation when you cannot find anything better to do, that
we will be glad to see you in Colorado, we will be glad to
have you follow the example of our worthy and honored
President and come out and hunt for bears or any other kind
of game, and you will find that it is less dangerous than going
not be able to offer you such hotels and modern
improvements as you have here. But we hope to see you
there some time.
(Applause.)
Mr. Bailey Mr. President, I wish to extend my sympathy to my friend here who was not born in Massachusetts or New York or Connecticut, and therefore needs
to be born again.
I come from that region which Lincoln
:
;
:
The President: The Convention
until
to-morrow morning at 10
will stand
adjourned
o'clock.
Accordingly, at 1.30 o'clock p. m. the Convention adjourned until to-morrow, Friday, October 13, 1905, at 10
o'clock
a.
m.
THIRD DAY'S PROCEEDINGS.
;
to
Wall
Street.
Mr. Cooke, of Hawaii: Mr. President, I want to speak
for the Western West, one of the United States' insular possessions, although we did not come into the Union through
blood, but by annexation.
We have a country that is only a little larger than the
State of Connecticut, about G0O0 square miles. We are 2000
We have four banks there
miles from the Western coast.
that are all members of the American Bankers' Association
thai many in Honolulu iand also three banks on other islands.
I cannot boast of minerals for Hawaii, I cannot boast of
great capital there, but I can boast about one thing, and
Our production of sugar amounts to althat is our sugar.
it has doubled since annexation
took
400,000
tons;
most
place.
Before annexation was a reality our people were
loyal.
I was not born in Boston or Massachusetts or Connecticut, but my mother came from Massachusetts and my
father came from Connecticut.
I was born in the islands.
My father and mother went out there as missionaries.
The hospitality which Washington has given to us is
more probably than I can offer in the Hawaiian Islands,
although we would like to have you come out there.
I have been glad that so much has been said about American shipping. I would like to invite the American Bankers'
Association to meet in Hawaii, but we will have to postpone
that meeting there until you build more ships, because the
laws of the United States will not allow you to travel on
half a dozen foreign ships, and you could not leave the
We
islands without taking passage on an American ship.
have had some dozen ships carry our sugar and corn, beWe were
eau e the Panama Canal is not yet completed.
obliged to make a contract for American ships to carry our
sugar to the ports in Mexico and then cross by railroads, and
then on to New York in vessels, the agreement being to
We have been
deliver it in thirty-five days from the islands.
and it is
in
that
way,
overland
ship
past
to
obliged in the
the
tic
over
rate of
land
al
sugar
our
send
expensive to
American
Bankers'
that
the
very
much
hope
ton.
I
$11.50 a
\
.ciat ion will at some time in the future, however, meet
We can offer you a climate, if we cannot offer
in Honolulu.
von anything else.
We can also offer you beautiful scenery.
—
Fkiday, October
13, 1905.
COLUMBIA THEATRE.
The Convention was called to order at 10
by the President, Mr. E. F. Swinney.
m.
o'clock a.
PRAYER BY THE REV. DR. D. J. STAFFORD.
Almighty and Everlasting God, we lift our hearts in gratitude to Thee. We thank Thee for that great national prosperity
and for all the graces and favors which Thou hast showered
down upon us. Protect us in the hour of our triumph as Thou
didst in the hour of our danger.
Save us from the dangers of
riches.
Give us the grace to use our great resources and our
great wealth for works of humanity, charity and philanthropy,
that in all things we may glorify Thee, through Jesus Christ,
our Lord. Amen.
INSURING BANK DEPOSITS.
The President:
We
will
now
be glad to hear from any
delegates present on practical banking questions.
Mr.
C. F. Allis:
Mr. President and Gentlemen of the Convention I
appreciate most thoroughly the honor of addressing the
National Convention of the American Bankers' Association, an Association that has done so much, directly and
indirectly, to establish the present high credit of our
National Government.
:
The subject upon which I wish to say a word is the
Insurance or Guaranty of National Bank Deposits.
The suggestion of Insurance when applied to bank deposits has a taint, a suggestion, a presumption, that is
not pleasant to any of us.
"Our Banks" are solvent,
" our Deposits " are as safe as those in the Sub-Treasury,
but. on the other hand, we must all recognize the widespread, almost universal, distrust that, whether expressed
or not, lies deep down in the hearts of the average
depositor.
A stranger coming to your town with $1,000
in his pocket will carry it several days, if not weeks, all
the time inquiring which is the safest bank, the strongest
This distrust should not exist.
and best managed.
National Banks, as their name implies, should be as
strong as the nation, their solvency should not he questioned.
Our Government has protected the hill holder abwhy should she not protect the depositor?
The present generation know nothing of an unsecured
currency, it is to them ancient history but we older
bankers recall the time when every five hundred dollars
of miscellaneous currency had one or more counterfeit
solutely,
—
-
or raised notes in it, or others below par or worthless because the bank had failed.
:
BANKING SECTION.
The National Currency
act changed this over forty
years ago and not a dollar has been
lost since.
Now, I would have the Government go a step farther
and make the deposits in all National Banks absolutely
secure from loss, and it can be done without any new
machinery and at a very small cost. This is no dream,
no sentimental theory that would be fine if it were
It is as simple as the insurance on your house
feasible.
or your life. As officers and directors we are all under
a great responsibility and I think that we should " reason
together " and ask ourselves what legislation can be en-
acted that will confer the greatest good upon the greatest
number.
This is not a new subject to me. In 1897, eight years
ago, I addressed our Group Convention upon this question, and believe that this Convention can do ho greater
service to the country at large than to secure the insurance of National Bank deposits.
From a selfish point of view it would pay. The
National Banks would attract deposits that would much
more than repay the small tax upon them. The National
system would stand out as the only system of banking
in the world (as far as I know) where the bill holder and
the depositor were protected from
Many bankers
loss.
object to insurance of deposits,, they
don't believe in the principle, they say that the strong
banks would be called upon to protect the weaker ones.
My answer is that some of our strongest banks have been
the victims of senseless runs which have taxed their resources for days, even when assisted by directors and
friendly competitors. There would be no " runs " if deposits were guaranteed by a fund in the hands of the
United States Treasurer.
Others say it would encourage reckless banking. This
could not be, for the receiver must collect the assets, and
assess the stockholders one hundred per cent, if necessary.
The banker loses his bank and his reputation besides, but the deficit comes out of this guarantee fund.
Without further preliminaries let us get down to
business. How much money will be required, and what
will it cost the banks?
In the last report of the Comptroller we learn that the
aggregate of claims proven during the last forty years has
been in round numbers $105,000,000. Upon these claims
the receivers themselves have paid 78.11 per cent. The
loss therefore to depositors was an average of 21.89 per
cent., or about $575,000 annually.
This we all think ha.s
been a great loss, an awful loss, and so it is, but let us analyze these forty years
Forty years ago we had just emerged from a civil war
that for four years had taxed the resources of the North,
until our National debt exceeded 2000 millions. Business
in every line was demoralized by fictitious profits, inflated currency and fabulous prices.
The National Banking system was established that our
Government might find a market for her bonds. To-day
we pay 103% for a 2 per cent, bond and get par in currency. Then we paid par or less for a G per cent, bond
and received 90 per cent, in currency. But the 6 per cent,
interest was payable in gold, and the gold we sold for a
premium of from 2 or 3 per cent, to nearly 3.00 for one,
or 12 to 15 per cent, on the cost of the bond.
I speak of this only to show how attractive the system
was, and many an inexperienced group of men organized
a National Bank. Under such conditions the losses would
of necessity be large and the risks unwarranted.
Then during these forty years we have had four years
of heavy losses on account of special depression 1867,
If we deduct the losses of these
1873, 1892 and 1893.
four years and make an average for thirty-six years we
have an average loss of $440,000 instead of $575,000.
Now, let us take the last five years. During the years
—
1900, 1901, 1902, 1903
and 1904 the receivers have
in
some
cases paid the depositors in full and the stockholders a
small percentage on their stock, but they have paid the
other depositors 97.69 per cent.
positors have lost
money.
an average of
In other words, the de2.31 per cent, of their
Upon
121
this basis (the losses of the last five years) the
average loss of forty years would have been only about
$52,000 per annum.
Let us look at the last five years from another point of
view. In 1900, while there were only three banks placed
in the hands of a receiver the claims proven were over
$4,800,000, but the depositors were all paid by the receiver
100 per cent and a small dividend to stockholders.
In 1901 four banks failed, but the loss was only 11.41
In 1902 three banks failed, but the
or $03,404.
In 1903 and
loss was only 13-100 of 1 per cent., $518.98.
1904, one each year, the receiver paid depositors in full
100 cents. A total loss to depositors in five years of only
$03,922.98.
I
have given you an idea in a general way as to the
money required. Now, what will it cost?
Mr. James C. Hallock of Brooklyn in a recent article
amount
of
suggests that the tax
now paid upon
circulating notes
shall be used by the United States Treasurer (after pay-
ing the expenses of the Comptroller's department) to create a fund which shall be held by the Treasurer as a guar-
anty of deposits.
This had never occurred to me because I thought it
impracticable to ask that the Government do more than
act as custodian of the fund, subject to the drafts of the
Comptroller after the receiver of a failed bank had exhausted the assets and the stockholders' liability.
Let us see for a moment what $100 contributed by each
bank annually during the last five years would have done
way of protecting depositors.
In 1900 there were 3,606 banks in active operation. One
hundred dollars contributed by each would have amounted
to $360,600, but there was no loss to depositors, the rein the
them in full. In 1901 there were 3,981.
One hundred dollars each would have brought in $398,The losses this year were $63,404. In 1902 there
100.
were 4,337 banks, and $100 from each would have brought
ceivers paid
were only 13-100 of 1 per cent.,
In 1903 there were 4,756 banks $100 from each
would have brought $475,600; but there were no losses.
In 1904 there were 5,184 banks; $100 from each would
have brought $518,400, and there were no losses.
At $100 from each bank an aggregate of $2,186,400
would have been contributed, against which we have a
loss of $63,922.98 in the five years, a net gain of $2,122,477.
An annual assessment of $250 upon each bank during
the last 40 years would have more than paid the average
annual loss to depositors.
I believe I have proven to your satisfaction that it is
not a difficult matter, this insurance of National Bank
deposits, nor would it be an expensive luxury.
I have given this subject quite a little study, and my
suggestion is that the National Banks ask of Congress
the enactment of a law instructing the Comptroller to
assess and collect from every National Bank in January, 1906, the sum of $100, and every six months thereafter the sum of $50, the money so collected to be placed
in the hands of the United States Treasurer and subject
to the drafts of the Comptroller of the Currency.
In case of failure a receiver will be appointed and
will realize for the depositors all that is possible out of
the assets and from the stockholders, the same as now,
but the deficit, if there should be any, would be paid
from this fund by the Comptroller.
There would be some delay in payment, but a receiver's certificate would not be much below par, and could
$433,700, but the losses
$518.98.
be
;
sold.
pay
would have further authority given the
Comptroller to assess and collect a tax of 1-100 of 1
If these assessments should not be sufficient to
the
losses
I
per cent, on the deposits (the average of the preceding
six months), not more than two assessments to be
made during any calendar year. The aggregate of all
deposits in National Banks individual, due to banks,
—
United States Government, etc.—exceeds $5,000,000,000,
and this small tax, 1-100 of 1 per cent., would yield over
$500,000 each assessment. A bank having a deposit of
$1,000,000 would pay $100.
:
BANKERS' CONVENTION.
122
The assessment of $150 upon each bank in 1906 would
bring $863,550, and $100 in 1907 and thereafter would
bring not less than $575,000.
It
would seem therefore that the
first assessment sugeach bank, after 1906
would be more than enough. At least the experience of
the past five years would lead us to think that in a few
years there would be from three to five millions in this
fund and I would have the Comptroller invest practically
all of it in Government bonds, with power to sell as
gested,
or $100 per
annum
for
needed.
be noticed at once that all banks, large and
$100 each, after 1906.
Some may object to this, but the insurance is richly
worth $100 to the smallest bank, and the smaller the
bank the more valuable this protection is to them.
Statistics show that the smaller banks when placed in
the hands of a receiver pay a less percentage of their
deposits than the larger banks.
It will
small,
pay the same amount
—
There is one restriction that to my mind must become
a part of the proposed amendment and that is, there
should be a limit to the rate of interest which National
Banks should be allowed to pay on deposits.
Some will consider this an unnecessary interference,
a reflection upon our ability to manage our respective
institutions, but from my point of view it is a very important provision.
Inexperienced bankers would be inclined to bid higher
for deposits than their more conservative neighbors
would think profitable or even safe, and we all know
what follows the continued payment of too high a rate of
interest on deposits.
I would advise that the limit, the maximum rate,
should be 3 per cent.
In conclusion I would emphasize the following advantages of the amendment.
1. It would pay a profit above the tax under present conditions, and when fully understood by the people
millions of hoarded money would be released and be
available for business. Don't forget this.
2. The
National Banking system would lead the
world in protecting absolutely from loss both the bill
holder and the depositor.
3. If the past five years are any guide, the cost distributed among 5,700 banks would not be worth mentioning.
I
thank you
all for
your courteous attention.
Mr. Supplee, of Baltimore, Maryland: Mr. President,
I ask to be permitted to add a word to what the gentleman
has so well said, showing to the Convention the necessity
of action in this matter.
There is now great difficulty in the National Banks and
Trust Companies obtaining what is called depository bonds.
This was shown after the defalcation in the First National
Bank of Milwaukee. Immediately, with due prudence and
foresight, the Northwestern Mutual Life Insurance Company desired depository bonds on about $8,000,000 of its
deposits.
It was necessary to place a bond of $1,200,000
in the First National Bank of Milwaukee. That bond was
placed with the company I have the honor to represent
after some re-insurance, but it was not an easy task, and
it has not been an easy task in several other cases that I
might mention.
There are insurance orders that have
$3,000,000 of depository bonds, and I might go over the
list until
your patience would be exhausted.
It is
found
in the surety business that with
$25,000,000 sureties the
company is now unequal to the task of taking care of the
public bonds, and the gentleman's point is exceedingly well
taken.
He
fails to state to
you that
in the excellent report
of Comptroller Ridgely, which he has quoted, the failures of
State banks, Trust Companies, &c, are not figured; but I
figured
them the other day and
I
found they only pay 50
per cent in liquidation.
you ask what is the remedy, I will say that the
remedy has been suggested by the gentleman, except I
differ with him as to an arbitrary and fixed sum for a bank.
It was Macbeth who said "I will make assurance doubly
If
Our advice is, do not take
a bond of fate, but take a surety company bond if you can
(Applause.)
get it.
sure and take a bond of fate."
Mr. C. N. Evans, Southern National Bank, Wilmington,
North Carolina:
Mr. President, I say let us keep the
American Bankers' Association out of the insurance business.
The gentleman from Erie made some excellent suggestions. At the same time it seems to me this is an individual question.
If the bank wishes to absolutely assure
to the community that its deposits are safe and sound and
Let
available, let that bank pay for its own insurance.
"Gentlemen,
have
them go to this company and say,
we
a
line of deposits at five million dollars.
sum of
premium on that." And
protecting our deposits to the
pay the
will
We
desire a policy
$5,000,000, and
Bankers' Association out of that business.
It seems to me that the point we want to reach
We
do not want
we
so let us keep the
is
this
to go into this business of insuring, and
we
do not want to trouble the Government in regard to
guaranteeing our deposits further than to supervise us, as
they are doing now very carefully; but let us go to the
We have in our section of
South some excellent industrial corporations. But despite our vigilance, occasionally we hear
We see an assignment has been made way
of a big crash.
up in the millions of dollars by a concern that stands well,
or has stood well, officered by men of high character and
reputation we have their statements, and they look good,
but we wake up in the morning and find that there was
nothing in that statement but a lot of falsehood. That
bank has gone. A few big slumps will materially affect
small banks, of course. Let us do this: Let us create a
bureau of audit and have this bureau of audit employ the
men who
cause these failures.
the country
—
—
in the
—
accountants that can be gotten. Have it understood that any member of this Association can request
from this bureau of audit a financial report upon any corfinest expert
poration, firm or individual in which this bank
is
inter-
and placed with the bureau
it then becomes the duty of the bureau to notify this firm,
corporation or individual that some one of its members
(of course, that would be private) desires a special report
Now, it is up to
or special examination of its affairs.
you, gentlemen, to give this report or not. If you give it,
well and good. If you do not give it, the members of the
American Bankers' Association will be advised. Now, you
It costs hundreds of dollars,
say that is a big expense.
perhaps a thousand dollars in some cases, to have a corporation examined maybe more and who is going to pay
Let the banks themselves pay it. Let the bank which
it?
applies for this report pay its part of it. If they call for
another report on this same concern I mean if some other
bank or creditor desires a report let them pay their proportion of it. It may be that a large corporation borrowing $500,000 or $600,000— large to us in our section of the
country may be the subject for an examination, maybe
there are ten or a dozen banks interested in that large concern.
Then those banks can pay for their proportion of
that report. That, it seems to me, is a more practical plan
for us to pursue. Go to these industrial corporations and
say, "Gentlemen, we do not question you at all, not in the
slightest; we think you are honest, but we want the reports you make to us certified as the National Bank reports
ested.
If
such a request
is filed
—
—
—
—
—
(Applause.)
are certified."
Mr. Campbell, South Bend, Indiana: Mr. President, I
presume that there are as many schemes for bank protection as there are States in the Union.
I
do not care to
any scheme, but I wish to offer two reasons why I
think the gentleman has not suggested a practical scheme.
In the first place, I think that Congress has no power to
It has the power to
levy a tax for individual protection.
offer
levy a tnx for
purposes, but
Government protection and
I
do not think
it
for Government
could levy a tax on bank
and enforce the collection of it
without an amendment to the Banking Act to which the
bank would subscribe. I think to undertake to make an
amendment which would apply to banks already in existence
would result in not being able to enforce it.
The next objection would be to an unlimited security.
capital or
bank deposits
—
:
BANKING SECTION.
I
don't think
practical to say that
it
we
My
impression
is,
if
there cquld be an agreement on a
plan by which an assessment would be made, and insure
to each depositor, say $2,000 or $3,000, in case the bank's
reserve had been exhausted, that that would go a long way
toward eliminating the danger of panics and runs on banks.
If we could say to depositors we will guarantee your deposits up to $3,000, that would take 95 per cent of the depositors in the rural sections of the country
—95
per cent
numerically, at least.
I
think those are two objections which ought to be conwhat has been suggested here.
sidered in connection with
(Applause.)
Mr. Robinson, President First National Bank, Winfield,
Kansas Mr. President, it seems to me there is no practical
way of insuring deposits of our banks, and it occurs to me
that we are fooling away our time in discussing a question
:
that so
little
appeals to us.
It occurs to
me now
that the
deposits of the national banks of the United States are to-
There has been but a small loss since
the organization of the National Banks, and it occurs to me
that if we follow the recommendation of our present Comptroller of the Currency and the recommendations that have
heretofore been made to increase the number of bank examiners and let every National Bank I speak of National
Banks because I am more familiar with them as far as
possible adhere to the National banking law, and avoid excess loans, that we will do as much as we can expect to do
along this line. I understand that excess loans is the cause
of the bulk of our failures. Let us avoid as far as possible
excess loans. Let us do our business from this time on as
prudently, if not more so, than we have in the past. Let
every bank stand upon its own foundation and upon its
own reputation. It seems to me that that is all the security that our depositors need and all that they demand.
day practically
safe.
—
—
(Applause.)
Mr.
Maine: Mr. President, our last speakyou cannot insure your deposits. I wish
that our bank insures its deposits by putting
Hill, of Bath,
er has said that
to
say
Members Not to Compound Crime.
will undertake
That will enable a $25,000 or
to protect deposits in full.
$50,000 bank to go to a $100,000 or $200,000 depositor and
"Our bank is as safe for you to deposit in as the
say:
$500,000 or the $1,000,000 bank."
a reserve of $4,000 a year. We can to-day with cash
on hand and bonds at 50 cents on the dollar pay every depositor and have our loans intact.
The President:
Mr. H. D. Goulder, president of the
Merchant Marine League, will address us now, his subject
being "Our Commerce."
away
123
Mr. Logan C. Murray: Mr. President and Gentlemen
There have been constantly in the last twenty years publications made throughout the country in different newspapers
who are not familiar, possibly, with this Association, to the
effect that the American Bankers' Association pays noted
some cases, salaries not to commit forgeries. I
have here a newspaper extract to the effect that Karl
Becker, "the forger most feared by the bankers of America,"
is said to receive a salary from a number of leading banks
on condition that he will commit no more forgeries. For
many years we have had trouble with this sort of thing. I
desire now to introduce a resolution, that the American
bankers of the country will not under any circumstances
forgers, in
and that the newspapers hereafter
It is a libel upon this
will not print such stuff as that.
Association to suggest that any member would make any
such compact with a forger. I therefore hope that this
Association will vote unanimously now, and strongly say
that it will be hereafter understood by every newspaper in
the country that this Association under no circumstances,
and no honorable member of it, will for one moment have
any such compact with any such men. I move that this
compound such a
thing,
Association distinctly say this now, so that
it
may
be heard
by every newspaper.
The motion was seconded, and the question being taken,
was unanimously agreed to.
The President: The incoming Council will meet immediately after adjournment on the tenth floor of the
New
Willard Hotel. The next in order is the report of the Auditing Committee, from Mr. Mitchell.
Report of Auditing Committee.
The Auditing Committee submitted their report as
fol-
lows:
Mr. President The Committee appointed to audit the
accounts of the Association beg leave to report that they
have verified the expense vouchers with the statements
submitted.
The rapid growth of the American Bankers' Association in the past few years has made it practically impossible within the time allotted for the Auditing Committee
to make as intelligent and thorough an audit of the affairs of the Association as the volume of business warrants, and we therefore suggest that future audits of
the accounts of the Association should be made by a firm
of chartered accountants, or an audit company, and their
reports submitted to the Executive Council.
Respectfully submitted,
:
J.
R. Mitchell, Chairman.
.
Our Commerce, by H. D. Goulder, President
Merchant Marine League.
[Mr. Goulder's address in full will be found on pages
90 to 93 of this publication.]
The President:
The next
is
unfinished business, and
the Chair recognizes Mr. J. D. Powers, of Louisville, Kentucky.
Thanks
to
Washington Bankers for Their Hospitality.
Luther Drake,
C. B. Mills.
Upon motion
the report was received and
filed.
NOMINATIONS AND ELECTIONS.
The Nominating Committee submitted their report as
follows
Washington, D. C, October 13, 1905.
Gentlemen of the Convention The American Bankers' Association tenders you the name of Mr. John L. Hamilton, vicepresident Hamilton & Cunningham, Hoopeston, 111., for President.
For First Vice-President. Mr. G. S. Whitson, vice-president
National City Bank, New York City.
For members of the Executive Council for a term of three
:
years
:
Mr. President and gentlemen of the Con-
George M. Reynolds, vice-president Continental National Bank,
vention, I desire to offer a resolution simple in character
Chicago, 111.
Milton B. Ailes. vice-president Riggs National Bank, Wash-
but important in giving expression to our personal feelings,
ington, D. C.
Mr. Powers:
as I hope.
all commercialism and without taint of selfmembers of the Bankers' Association of the
District of Columbia have, without stint, provided for the
comfort and pleasure of the American Bankers' Association, its officers and members and visitors, the most delicate, agreeable and delightful reception and entertainment,
filling full the measure of expectation and realization dur-
Free from
ishness, the
ing our stay in Washington, our country's great capital
city, for which the Association tenders profound and grateful thanks.
I
move
the adoption of the
suggestion
as
embraced
therein.
The motion was seconded, and the question being taken,
was unanimously adopted.
The President:
The Chair recognizes Mr. Logan C.
Murray.
the resolution
J. L. Edwards, president Merchants' National Bank, Burlington, Iowa.
H. B. Wilcox, cashier First National Bank, Baltimore, Md.
J. J. Sullivan, president Central National Bank, Cleveland,
Ohio.
For Vice-Presidents of the
States
—
Buck, president City Bank and Trust Company, Mobile.
Alaska—
A.
president First National Bank,
Fairbanks.
Greer, cashier First National Bank.
Arizona —
Faulkner, cashier First National Bank,
Arkansas —
Helena.
California —
E. Bowles, president American National Bank,
San Francisco.
—
Irving
Howbert, vice-president First National
Colorado
Bank, Colorado Springs.
Connecticut — Hon. A. Chamberlain, president Home National
Bank, Meriden.
president National Bank
Delaware — John Richardson,
Delaware, Wilmington.
District of Columbia — John Joy Edson, president Washington
Loan and Trust Company, Washington.
Florida —
W. Lane, Atlantic National Bank, Jacksonville.
Georgia — W.
McCauley, vice-president Savannah Bank and
Trust Company, Savannah.
Idaho — M.
cashier First National Bank, Wallace.
— A.Flohr,
Goddard, president Fort Dearborn National
Bank, Chicago.
Alabama
different
:
E. J.
Bonnifleld,
S.
Clifton.
P. P.
S.
S.
P.
Jr.,
E.
F.
J.
Illinois
L.
of
BANKING SECTION.
124
—
Indiana W. E. Springer,
Baiik, Elizabethtown.
—
Indian Territory G. W. Barnes, president
tioonal Bank, Muskogee.
Iowa D. L. Heinsheimer, president Mills
Commercial Na-
—
County National
—
cashier
First NaB. Stevens, vice-president and
Bank, Parsons.
Kentucky — Owen Tyler, president Third National Bank,
Louisiana —
H. Youree, vice-president Commercial National
Shreveport.
Maine—
Parcher, York National Bank, Saco.
cashier First National Bank,
Maryland— Nathan H.
New Windsor.
Massachusetts— H. M. Batchelder, president Merchants' NaBank, Salem.
Michigan,
Michigan — Daniel McCoy, president State Bank
Grand Rapids.
president Merchants' National
Minnesota —
H.
Bank,
Cloud.
president First National Bank,
Mississippi —
W.
Vicksburg.
Bank, Glenwood.
Kansas
E.
tional
Louisville.
II.
Bai.k,
S. C.
Baile,
tional
of
Havill,
O.
St.
Griffith,
B.
Candidate to Represent Savings Bank Section.
cashier Farmers' and Merchants'
Missouri— F. W. Hixson, assistant
cashier,
Hannibal National
Bank, Hannibal.
— B. Clements, cashier iEtna Banking and Trust
president Grand Island Banking
Nebraska — George B.
Company, Grand Island.
Nixon, president First National Bank, WinneNevada— G.
mucca.
New Hampshire— Arthur M Heard, president Amoskeag National Bank, Manchester.
New Jersey — William Scheerer, president Union National
Bank, Newark.
Montana A.
Company, Butte.
Bell,
Mr. Sprague: Those nominations before you are doubtworthy and estimable candidates, but I feel it my
duty, not merely as a delegate, but as a representative of
734 of the members of this Association, to place in nominaless of
tion for election as a
—Joshua Raynolds. president
National
Bank, Albuquerque.
New York — Ledyard Cogswell, vice-president New York State
National Bank, Albany.
Brenizer, cashier Commercial National
North Carolina—
Bank, Charlotte.
National
North Dakota—
Batcheller, vice-president
Bank,
Ohio —
Sharp, president State Savings Bank and Trust
Company, Columbus.
Oklahoma — M.
Turner, president Western National Bank,
Oklahoma
First
S.
A. G.
First
L. A.
Fingal.
E. R.
L.
City.
Oregon— Benjamin
I.
Cohen, president Portland Trust Com-
pany, Portland.
— G. Hobson, treasurer Norristown Trust
—
Metcalf, president Old National
Bank, Providence.
South Carolina— W.
Montgomery, president Farmers' and
Merchants' Bank, Marlon.
South Dakota —
M. Brooder, cashier Black Hills Trust and
Savings Bank, Deadwood.
Tennessee— Joseph H. Smith, cashier People's Savings Bank,
Nashville.
Texas—
W. Spencer president Farmers' and Mechanics'
National Bank, Fort Worth.
Utah — W.
Salt
McCornick, president McCornick &
Lake.
Vermont— Edward Wells, president Burlington Trust Company, Burlington.
Virginia — W. M. Habilston, president National Bank
VirRichmond.
Washington — Levi Ankeny, president First National Bank,
Walla Walla.
West Virginia— Walton
cashier Bank of Fairmont,
Fairmont.
Wisconsin — George W. Strohmeyer, president Milwaukee National Bank, Milwaukee.
Wyoming —
Clay,
president Stockgrowers' National
Bank, Cheyenne.
Cuba —
G. Vaughan, president Banco National de Cuba,
Havana.
Hawaii — Charles M. Cooke, president Bank of Hawaii, LimitHonolulu.
E.
Buck. Chairman.
Pennsylvania
F.
Company, Norristown.
Rhode Island Edward
P.
J.
F.
J.
Co.,
S.
of
ginia.
Miller,
J.
Jr.,
E.
ed,
J.
During the reading of the foregoing report, the following occurred:
Mr. Evans, of North Carolina: I move that the Secretary be directed to cast the vote of the Association for Mr.
John J. Hamilton as President.
The motion was seconded by several delegates.
The President: It is moved that the Secretary be directed to cast the vote of the Association for Mr. John L.
Hamilton for President. Is there objection?
There was no objection, and the Secretary accordingly
was directed to cast the ballot of the Convention for Mr.
Hamilton for President.
The Secretary: I take pleasure in casting the ballot of
the Convention for Mr. Hamilton for President.
Mr. Mulvane, of Kansas: Mr. President, I move that
the Secretary be directed to cast the vote of the Associa-
Whitson for First Vice-President.
The motion was numerously seconded.
The President: Is there objection? (After a pause.)
The Chair hears none, and the Secretary is directed to cast
the vote of the Association for Mr. Whitson for First Vicetion for Mr.
President.
The Secretary:
The Secretary takes pleasure
in casting
the vote of the Association for First Vice-President.
Mr. Sprague (at the conclusion of the reading of the
nominations for members of the Executive Council for a term
of three years)
Mr. President, I believe that while not very
usual, nominations other than those of the Nominating Committee are in order under our rules. Am I right?
:
The President:
Yes,
sir.
.
of the Executive Council a
Edward
E.
Duff, of Pittsburg, Vice-President of the People's Savings
Bank, a gentleman eminently qualified by ability, by character and by attainments to fill the position, and a gentleman whose qualifications have been attested by our electing him day before yesterday as Chairman of the Savings
Bank Section. And I will state the reasons, Mr. Chairman, which have compelled me, reluctantly, to violate the
usual ease and harmony with which our elections have been
conducted by introducing a nomination out of the regular
order of things.
The Savings Bank
S.
New Mexico
member
distinguished representative of our Section, Mr.
tant Section.
I
Section, as
you know, is an imporits work has been as
venture to say that
aggressive as that of any other portion of the Bankers'
During the
Association.
last year it has
added 118 mem-
bers to this Association through its direct work.
you
By
that
work of the Savings Bank
securing new members we would
will see that except for the
Section in the
way
of
almost have had a shrinkage in our membership. We feel,
therefore, that the committee, unintentionally probably,
has committed a grievous oversight in neglecting to give
The Savings
Banks, we feel, are pre-eminently entitled to a representative on the Council.
We pay our dues exactly like any
other members. But, gentlemen, so far as we are Savings
Bank men we are not bankers we are, on the other hand,
us a direct representative on this Council.
—
among your largest customers; we are not your rivals. But
here we find ourselves subjected to, at least, neglect; some
of our
members go
so far as to call it slight.
may be, the fact remains that we
one representative, although we were
we would be allowed one. For some
have not been favored. We have not
that
However
have not been given
led to believe that
reason or other we
in the past,
and we
do not in the future, intend to obtain representation on
this Council by means of lobbying, by soliciting votes or by
We
as that.
We shall not use any such means
manly dignity present our claim,
(Applause.)
canvassing.
shall with
and that is the reason I am presenting the name of this
gentleman to-day because I feel that the membership of
this Association at large will support us, and that the
Executive Council the two classes now remaining in power
will also support us, that all right minded men, whether
they are bankers, Savings Bank men or Trust Company
men, will support us, that they will see that our cause is
just, and, to say the least, we have not been treated with
that respect which an organized section of this Association
—
—
should be treated.
These are the reasons, gentlemen,
why I feel it incumbent
upon me as a duty, a disagreeable duty, to make a counter
nomination, instead of acquiescing in the usual perfunctory
ballot.
Gentlemen,
one, but it
is
unpleasant, for more reasons than
it is
necessary, for us to select one of the
names
on the ticket presented to be displaced by our representative; the task is an unwelcome one.
Far be it from us to
desire that any one there should be displaced, but that is
the only effective way to withdraw one of those names.
We can do it, we have the votes in this house so that if I
name the person who is to be excluded in favor of our man,
—
we can carry
the election.
I do not wish to do anything of
merely wish to bring before you our rights and
our wrongs, lest it be said that we submitted tamely to
neglect and oversight and sat still and allowed people to
walk upon us without making a move.
Gentlemen, having accomplished the purpose of this
nomination, I now withdraw it.
(Applause.)
The President: I believe Mr. Sprague's speech is for the
good of the Association. While it may be out of place for
me to say so, it seems to me that we are getting to have
the sort.
too
much
I
politics in the affairs of the Convention.
(Ap-
plause.)
What
shall be
done with the nominations for members
of the Executive Council
?
)
125
BANKING SECTION.
Mr. Mulvane, of Kansas:
move that the Secretary be
I
get an expression from you, so that they
directed to cast the ballot of the Convention in favor of the
formulate a report in
gentlemen whose names we have heard
members
read.
Mr. Sprague: I second the motion.
There was no objection, and the Secretary was accordingly directed to cast the ballot of the Association for the
gentlemen whose names were read, as members of the
Executive Council.
The Secretary:
I
take pleasure in casting the ballot of
the Association for Mr. George M. Reynolds, Mr. Milton E.
Ailes,
Mr.
J. L.
Edwards, Mr. H. B. Wilcox and Mr.
J. J.
Sullivan for members of the Executive Council for three
years.
(The reading of the report of the Nominating Committee was then concluded, as hereinbefore set forth in full).
On motion of Mr. Mulvane the Secretary was directed
to cast the ballot of the Association for the gentlemen
may
be able to
accordance with the wish of the
of this Association.
It shall be
my
fulfilling the duties of this
endeavor in
position to put forth
my
best efforts in your behalf.
Gen-
(Applause.)
tlemen, I thank you for this great honor.
Whitson presMr.
Is
Hamilton)
:
The President (Mr.
forward.
come
please
ent? If so, I will ask him to
Mr. Whitson came forward.
The President: Mr. Whitson, you have been selected
for the distinguished oilice of Vice-President of the American
Bankers' Association. It is an honorable position that is
extended to you on account of your work and merit, and in
appreciation of the work you have done for the Association.
Gentlemen, your
I now present you with your badge.
(Applause.)
Vice-President, Mr. Whitson.
Nominating Committee:
Mr. Whitson: Mr. President and members of the
American Bankers' Association We are told that brevity is
the soul of wit. I am certain that you are weary of speechmaking. Consequently I believe that I will carry out your
views in making my remarks brief. I appreciate the honor
which you have conferred upon me, an ask your assistance
Washington, D. C, October 12, 1905.
To the Chairman and Members, American Bankers' Association
The Nominating Committee, composed of delegates from the
several State Associations, desires to present the names of the
following gentlemen for membership In the Executive Council of
the American Bankers' Association
Lewis E. Pierson, President, New York National Exchange
Bank, New York, N. Y.
A. G. Lupton, Cashier, Blackford County
Joseph Chapman, Jr., Cashier, NorthBank, Hartford City, Ind.
J. G. Brown, Presiwestern National Bank, Minneapolis, Minn.
and co-operation in carrying out the duties pertaining to
(Applause.)
the office to which you have elected me.
The Secretary: There is a telegram which has been
received from the Sturdivant Bank, which I will read:
The Secretary read as follows:
Cape Girardeau, Mo., October 11, 1905.
E. F. Swinney, President American Bankers' Association,
named by
the Nominating Committee as Vice-Presidents.
:
The Secretary cast the ballot for the gentlemen named
with his instructions.
accordance
in
The Secretary: Here is an additional report from the
i
:
:
;
;
;
H. P. Hilliard,
Bank, Raleigh, N. C.
Vice-President, Mechanics' National Bank, St. Louis. Mo.
George F. Orde, Secretary.
dent, Citizens' National
:
Mr. Evans: I move that the Secretary be instructed
to cast the ballot of the Association for the gentlemen
named.
There was no objection, and the Secretary accordingly
cast the vote of the Convention for the gentlemen named
as members of the Executive Council of the American
Bankers' Association.
The Chair recognizes in the rear of this
The President
room a bashful young man, and he would like to have him
come forward. I call for Mr. John L. Hamilton, of Hoopes:
(Applause.)
Mr. Hamilton came forward.
The President: Mr. Hamilton, the American Bankers'
Association has been very fortunate in selecting you as
their President.
It has been to a certain extent an idea
among the members of this Association that no one could
be elected to this place unless he lived in a large city and
represented a large bank. You do not come from a large
city and do not represent a large bank, comparatively
speaking; but you do represent a large majority of the
members of this Association, and now they cannot say that
this office must go to a large city.
I congratulate you and
wish you great success in your administration of the office
ton, Illinois.
of President.
(Applause.)
Mr. Hamilton:
(Taking the chair.)
Ladies and gentlemen of the Convention, I think I voice the sentiment of
this Convention when I say that it is unfortunate that our
worthy President cannot be continued another year under
the constitution. I realize that this is the greatest honor
that can be given to any man at your hands. I realize that
the American Bankers' Association is the strongest financial
institution in the world.
It has a grand mission to perform, and I think it is the duty of this Association to labor
for the promotion of the welfare of this great country regardless of any individual interests. This Association has
several important standing committees that are doing excellent work.
They have one or two committees that are
dead. I am opposed to any man accepting a position on any
committee in connection with this Association who is not
willing to
work
for the interest of this Association.
(Ap-
plause.)
We
have long since passed the stage in our work where
I think that there are many important features that can be pushed forward by your aid, and
we need ornaments.
when the
individual
member
receives
what appears to be a
really an individual
circular letter, remember that it is
communication from the committee sending
it,
hoping to
Washington, D. C.
Colonel Robert Sturdivant, the pioneer banker of Southern Missouri, died at Tallapoosa, Ga., yesterday morning,
aged 88 years.
The President: I understand that Mr. Hill, of St.
Louis, has something to present to the Convention.
Punch Bowl to Retiring President.
and placing a large silver
Mr. Hill
( Coming forward
bowl on the President's table.)
Mr. President and gentlemen of the Convention: I have been selected to present to
Mr. Swinney, the retiring President, a little pig in the bag.
(Laughter.)
Why I have been selected for this pleasant
duty I do not know, unless it is that Mr. Swinney and your
humble servant were both born in that State which feeds
on peanuts and past recollections recollections that can
only be appreciated by men who have left the grana old
Commonwealth of Virginia. We have both gone to that
State which has the reputation that before any one can get
into their hearts there, and into their pockets, he has to
Mr. Swinney went to that
"show them." (Laughter.)
State, and by perseverance and pluck won his way, and he,
as President of the American Bankers' Association, has
shown you the greatest year in the history of the Association.
(Applause.)
If you come West you will find on
the western border of Missouri a bank which has been built
up by him and him alone, as far as we know, and that has
no superior for strength and conservatism in this country.
(Applause.)
He will show to any one who comes there
who does not know him and to those who know him it is
not necessary that he is a man and a gentleman, and when
you say a gentleman that is all you can say of any one.
I wish to say in the name of the Association, "Well done,
good and faithful servant." Instead of taking the cake,
:
—
—
—
take the bowl.
(Applause.)
Mr. Swinney:
my
I
wish
I
had words capable
appreciation of this token of regard.
of expressing
I will
take this
to my Western home and ever keep it and
with the greatest pride as a token of having
been honored by the greatest financial association in the
world.
Applause.
In closing my official career with you I want to again
thank this Convention for the many acts of kindness
shown me, and will close by saying that "In future years,
should thou perchance to other scenes cast a glance, think
kindly of me, as I ever shall of thee.
(Applause.)
Committee on Bank Legislation Created.
bowl with
point to
me
it
(
—
The President:
Is
there any further business
to be
brought before the Convention?
Mr. Reynolds: In pursuance of the resolutions heretofore adopted, I move that a committee of five be appointed
BANKERS' CONVENTION.
126
by the Chair, of which the President shall be one, to act
as a Committee on Bank Legislation.
The question was taken and the action was agreed to.
Presentation of Punch Bowl to Secretary.
Mr. Russel, of Detroit: Mr. Chairman, ladies and gentlemen, a self constituted committee has placed upon me
the very pleasing duty of making another well deserved
This self constituted committee really conOld Guard, and I might sum it down to almost
one member of the Guard, in the message that was conveyed to me. Walker Hill has just told you that he was
presentation.
sists of the
make the other presentation speech.
Now, gentlemen, I want to give you a little inside information. Mr. Hill came to me last night and said: "Russel, if you will select me to make a presentation to the
President I will select you to make a presentation to the
selected to
(Laughter.)
Gentlemen, this token of our regard for our most efficient Secretary is made upon the anniversary of his ten
It happens to be an anniversary to me also.
years' service.
Ten years ago I first joined your Association at Atlanta,
and I had there one of the pleasantest times of my life. At
that first meeting I had the distinguished honor of being
elected to the Council, and have served continuously ever
Secretary."
since.
In the 11 conventions that have been held, beginning with that one, and ending witft this most delightful
Convention, I have been present nine times; I was prevented from being present the one time I was absent on
account of my health.
A
me
little
table in a
room
we had
ten years ago.
And we must
is largely due to our
Applause.
He has worked indef atigably, and
in the last two years there has been more accomplished than
ever.
So that in his services, experience and education, we
have a Secretary who is more than ever fit to perform these
allow that this increase in membership
Secretary.
(
)
duties for another decade.
entirely without
—
I will
Jim
is
a good fellow, but not
not say without enemies, but people
who think they could fill his place better. There are always such men in the world. But we do not want to make
any more experiments in that line. A little story occurs
me which has been told to me since I reached this stage,
of a gentleman presiding over a very large church, a
minister.
There was a little growing disaffection among
some of the congregation, and one of them hinted it to the
sexton. " Yes. I know that is what some of you think, but
then," he says, " remember the past experience of this church.
Reverend So and So has been with us now for ten years,
and the church work depends largely upon its revenue. Are
not the pews full? Has not our membership increased satisfactorily, and are not things running smoothly?"
I think
to
that speaks for itself."
give to our Secretary a bowl.
What uses it may be
We
put to I cannot tell.
(Laughter.)
We have not made it
large enough for him to get into (laughter), but it is of
capacious size, and I am sure that in his big, generous heart
he will ask you in other meetings of this Convention to take
from it, not forgetting himself. Gentlemen, I am sure that
I speak for the whole Convention in conveying to Colonel
Branch this token of your esteem and appreciation. (Applause.)
Mr. Branch Mr. Russel, and members of the Associaone of the proudest moments of my life. I have
served for ten years as your Secretary, and, through the
assistance and hearty support that I have always received
from every one upon whom I have called, the Association has
grown to its present size. No one man on earth could have
accomplished any such growth. It has been the result of
active committee work.
It has been the support of numerThe Secretary has
ous officers who have come and gone.
been able to call the attention of bankers all over the country to the good work being done by the Association, and they
have come in by tens and hundreds and to-day we have an
organization representing more wealth than any other organization on earth.
I fear in the opinions
I have given you my best efforts.
of a good many that my best has not been as good as it
might have been. I can only say to you, gentlemen, that I
have done my best, and any errors made have been from
I thank you sincerely,
the head and not from the heart.
for your continued confidence, as shown by re-election nine
times, and I trust if in the future I serve as your Secretary
I can, when I step out of office, feel as I do now, that I have
never intentionally neglected any duties imposed on me.
:
growth of the Association in
these ten years seems to be in place.
We then had a membership of barely fifteen hundred, and Colonel Branch was
chosen Secretary. Another curious fact in connection with
that Convention, which I now recall, is the fact that at a
reviewal from
times the number
of the
off
the reception
room at Atlanta,
our old friend Bob Lowry gathered promiscuously from an
attendance of several hundred six gentlemen to dine with
him. Of course, he had the most beautiful ladies of the
State of Georgia there also. You would expect that, naturally.
As it so happens, five of those six gentlemen that
sat at that table successively became President of your
Association:
Mr. Pullen, of sainted memory, I might say,
because he was a grand old man Bob Lowry, whom we will
always have with us; Hendrix, than whose record none is
brighter; the less said about Russel the better; and Hill,
the ubiquitous and always talking. Now, this looks like
a put up job, but, gentlemen, politics then had not crepi
into the Association, I assure you.
We could have planned
for five years ahead, while under a better constitution we
can only set up the job for three years. But I am getting
off the subject.
I am dwelling on my own recollections and
not doing my duty here.
It is my pleasant duty to present to Mr. Branch from the
Association a little token of regard and esteem and appreciation of his services during the past year.
Presidents
have come and gone, but Jim runs on forever. Our membership of fifteen hundred, which is what it was ten years
ago, has been increased to seventy-seven hundred, over five
—
;
tion, this is
(Applause.)
Thanks
to
Washington Newspapers.
the thanks of the Convention were extended
to the newspapers of Washington.
The President Mr. Whitson has requested me to announce that the Executive Council will meet immediately
after the adjournment on the tenth floor of the New Willard
Hotel.
[Joshua D. Powers, President of the United States Trust
Company, of Louisville, was chosen Chairman of the Executive Council.]
I now declare the thirty-first annual convention of the
American Bankers' Association adjourned.
Upon motion
:
THE FOURTH NATIONAL
BANK OF THE CITY OF
NEW YORK OFFERS TO
DE-
POSITORS EVERY FACILITY
WHICH THEIR
BALANCES,
BUSINESS AND RESPONSIBILITY
WARRANT.
:
Trust Company Section
American Bankers' Association,
Ninth Annual Meeting, Held
in
Washington, D.
C,
October 10,
1
905
INDEX TO TRUST COMPANY PROCEEDINGS.
Growth of Trust Companies
Banking Publicity-
...
Pages
Pages
Pages
Pages
Benefit of Real Estate Department
Detailed Proceedings
J27 to 129
129 to 130
130 to 132
133 to 141
By Edward
T. Perine, General Manager,
Comprehensive statistics regarding Trust Companies
throughout any number of States do not appear to have
been assembled earlier than December, 1875, when, in
the Annual Report of the Comptroller of the Currency
of the United States, a tabulation was presented with
reference to 35 companies. These were located in four
entire States, and reports from Philadelphia companies
were also included.
These Trust Companies of thirty years ago comprised
Total
Resources.
No. of
Companies.
12
New York
69 millions.
Massachusetts
5
9
Rhode Island
1
7
6
5
31
35
122
10
Connecticut
Philadelphia
total for the.
The
stock aggregated 21 millions, sur-
plus funds and undivided profits 7 millions, and deposits
The New York State companies, having, as has been
shown, 69 millions out of 122 millions of dollars of total
resources, led, then as now, the other States in respect
Philadelphia's 7 companies,
of Trust Company wealth.
however, with their 31 millions of resources, are worthy
particularly
when
it
is
seen
that the two
groups taken together at this early date comprised over
100 millions of aggregate resources.
An interesting note accompanied this tabulation of the
containing
the
unofficial
fact
that
the
Chicago Tribune " had reported as of June 30, 1875, 5
Trust Companies in the city of Chicago having capital
$2,500,000; surplus, $725,000, and deposits of between 5
"
and 6
millions.
not to be understood that the Comptroller's
tabulations in this or in later years could have been
It
made
At
should be remembered that it
was but sixteen years ago, the total resources were less
than one-eighth of the present volume of Trust Company resources, and the number of companies only about
one-tenth of the total number of our present companies.
Before considering current figures, however, it will
be of interest to look at some details of the Comptroller's
tabulation for 1889. In
lions.
this time,
Connecticut
New York
Illinois
Pennsylvania
Iowa
Minnesota
is
Trust Companies everywhere, but a
steady growth is apparent year by year from about
1879. In that year reports were tabulated from 32 companies, with 111 millions of resources, and during the
next few years, while there was no great increase in the
number of companies, their resources were largely added
to cover
Kansas
Nebraska
Dakota
The
and
it
6 companies, with about
2mlllions of resources.
"
"
3
"
"
"
"
"
"
"
"
"
8
"
"
"
25
6
17
"
"
" 236
" 17
4
13
2
7
5
6
11
Missouri
85 millions.
Comptroller,
to 136
In 1884 the tabulation showed 35 companies, with
239 millions of resources. Of these 13 New York State
companies had 155 millions.
By 1889 the number of companies reporting had increased to 120, and their total resources were 441 mil-
Rhode Island
and discounts, 39 millions of securities,
3 millions of real estate, and 9 millions of cash. Among
of notice,
to 135
to.
Massachusetts
principal items of resources were 65 millions of
liabilities, capital
134
Pages 134
Pages 135
The Audit Company, New York.
Maine there were
New Hampshire
dollars of loans
the
Page
to 134
of the Growth and Present Status of Trust
Companies in the United States.
Statement
A
Pages 133
Address of Welcome and Reply
Report of Secretary
Report of Executive Committee Committee on Protective Laws
6
4
63
12
"
"
"
"
69
"
"
"
9
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
5
"
"
"
"
"
"
4
10
4
5
1
from the smaller States wer^ given as
being unofficial, but would appear to have been gathered with considerable care, and the noticeable facts at
figures
this point
—sixteen
tinued growth of
sum
—
years ago, as stated are the concompanies' resources to the
New York
of 236 millions, the substantial
amount reported
for
Pennsylvania companies, over 69 millions, and the closely
equivalent showing of Massachusetts, with its 63 millions.
After these, no one State, not even Illinois, Rhode
Island or Missouri, had as much as 20 millions of total
resources, while the other States reporting in no one
much as 10 millions of resources.
In the early nineties began the real growth in numbers of Trust Companies, the Comptroller's report for
1894 showing 224 companies, with 705 millions of total
resources, while according to another summary, made
by the author of this present paper, upon the basis of
total resources one year later, or in 1895
gathering the
figures from certain State reports, ana in other cases
from details contained in the " American Bank Reporter "
case had as
—
BANKERS'
128
of November, 1895
—
CONVENTION.
appears that the Trust Companies
numbered 569, or about onehalf the present number.
For some of these no figures
were available, but as to 533 companies, located in 42
it
of tea years ago this fall
different States
and Territories and
in the District of
Columbia, the total resources were approximately 962
millions of dollars.
At this time there were 16 companies in California, 12 in Connecticut, 18 in Georgia,
26 in Illinois, 29 in Iowa, 16 in Kansas, 16 in Kentucky,
20 in Maine, 35 in Massachusetts, 15 in Missouri, 15 in
Nebraska, 23 in New Jersey, 38 in New York, 14 in Ohio,
83 in Pennsylvania, 19 in Tennessee, 18 in Vermont, 16
in Virginia, and 15 in the State of Washington, while in
each of the other States and in the District of Columbia
there were less than 10 companies.
Closely succeeding years saw a phenomenal growth
among Trust Companies, both in number and in wealth.
The fact of this growth during the closing years of the
nineteenth century is well recognized, but becomes more
apparent when it is stated that during the five years
from 1899 to 1903 inclusive the popularity of Trust Companies was marked by the organization of practically
five hundred new companies, or as many as had been
formed during the entire preceding three-quarters of a
of June 30,
1903, recognizing the
need of more
adequate statistics than had been previously available,
the company with which the speaker then had the honor
of being identified, namely, the United States Mortgage
and Trust Company, of New York City, prepared a list
of Trust Companies everywhere in the United States
and sent out requests for their statements of condition,
which, when received were arranged alphabetically by
States to the number of 912 companies.
These statements, comprising a more comprehensive collection of
Trust Company facts than had ever been previously
gathered in a single volume, were issued in 1903, and
were collected again last year and this. These collections have been valuable as books of constant reference
for those interested in Trust Company matters, and have
also afforded
a basis for certain tabulations of Trust
resources and liabilities throughout the entire
country, the nature of which, as relating to current con-
Company
ditions,
;
15 mil-
certified checks,
due to banks and bankers, 107 millions re-discounts, two and one-half millions
the present total of
liabilities and corresponding resources
amounting to
the remarkable sum of 3 billions 802 millions of dollars.
Even in this total are not included the figures of some
344 companies not reporting on June 30 last, which with
lions
;
;
;
new
number
88
incorporations since that date bring the entire
of American Trust Companies up to 1,547.
With
however,
the 1,115 statements
appears that in each of
eight States there are upwards of 100 millions of rereference,
which have been tabulated,
to
it
sources, these eight being:
Rhode Island
9 companies,
Missouri
New Jersey
Ohio
Massachusetts
Illinois
Pennsylvania
New York
This last aggregate
27
"
60
47
42
49
237
78
"
"
"
"
"
"
113 millions.
141
162
173
220
353
621
1 billion 510
may be best interpreted by
New York State for the first
the
six
growth in
months of this year has been over 100 millions of dollars and that in ten years it has been approximately 1
fact that the
billion of dollars.
century.
As
847 millions
posits, 2 billions
and
in
now
years, are
particular to the growth of the past three
briefly presented.
The 912 companies whose statements were published
under date of June 30, 1903, had total resources and liabilities of 2 billions 910 millions of dollars; their loans
aggregated 1 billion 463 millions; their stocks and bonds
627 millions; their cash on hand and in bank 435 millions; their mortgages 173 millions; the aggregate value
of their
and banking houses, 74 millions.
Offsetting these, their capital stock amounted to 317 millions; the surplus funds and undivided profits, 362 millions; their deposits, including amounts due banks and
real
estate
hankers, 2 billions 183 millions.
By June 30, 1904, 82 other companies had been added
the previous total, and the resources and liabilities
of the 994 companies reporting reached an aggregate of
to
3 billions
140 millions.
liabilities of these
their capital stock
A
tabulation of the principal
companies of one year ago shows that
amounted
plus and undivided profits to
general and in trust, to the
to
330 millions; their sur-
37!)
millions; their deposits.
sum
of 2 billions 315 mil10 millions; their
lions; their outstanding certifications.
balances due banks and bankers. 55 millions. An interesting fact because of the smallness of the item is that
re-discounts as reported by the entire 994 companies
amounted to less than 2 millions of dollars.
The Trust Companies having thus passed the three
mark in 1904, a remarkable result was next
secured by tabulating the number of companies reporting, and their liabilities, as of June 30, 1905.
The totals
billion dollar
are, 1,115 companies,
having capital stock 349 millions;
surplus funds and undivided profits, 425 millions; de-
Much might
be said regarding the strength of com-
panies in other States as well as New York, particularly with reference to the amounts and proportions of
aggregate capital stock as compared with aggregate surplus and undivided profits.
In New York State 62 millions of capital stock accounts show 160 millions of paid in and earned surplus
and undivided profits.
In Pennsylvania 92 millions of capital stock accounts
show 110 millions of surplus and profits.
In New Jersey 12 millions of capital show 20 millions of surplus
and
profits.
In Missouri 21 millions of capital
and profits.
Rhode Island 6
show 25 millions
of surplus
In
show 9 milbeing a fact that in each
in several others, the book value of
shares is in excess of 200 per cent, of
and
of these States, and
lions of surplus
millions of capital
profits, it
Trust Company
liar, while the average for the entire country is an approximate book value of 221 per cent.
Referring again to New York State's 1 billion 510
millions
of
total
resources,
it
may
be of interest to
present the fact that as late as October in the year 1870
the total resources of 1,615 National
Banks throughout
he entire United States did not exceed this sum.
As
compared with the present Trust Company aggregate
t
for the entire United States, 3 billions 802 millions, it
appears that not until the year 1897 did the country's
",607 National Banks hold the equivalent in total resources of the amount of total resources now held by our
1.115 Trust Companies.
It should be remembered that to-day there are 5,757
National Banks, with no less than 7 billions 472 millions of dollars of total resources; but it is also interesting to calculate that this sum is only about twice the
amount of the 1,115 Trust Companies' present 3 billions 802 millions of resources; also that the averages
obtained by dividing the number of National Banks and
the number of Trust Companies into these respectiveaggegates, show that the average resources of each National Bank are a shade under 1 million 300 thousand
average per Trust Company is slightly
400 thousand dollars.
What the true meaning is of such a sum as these 3
billions 802 millions of Trust Company resources may be
best appreciated by a contrast or two, based upon some
large aggregates found in other recent statistics.
The total assets of active life insurance companies in
the United States at the beginning of the present year
were less than two and one-half billions of dollars, or 1
billion 300 millions less than the resources of American
dollars, while the
in excess of 3 millions
:
;
TRUST COMPANY SECTION.
Trust companies.
States on July 1,
tically
1
billion
The
last,
total
was
currency in the United
2 billions 885 millions, prac-
amount
dollars less than the
resources of the Trust Companies.
world— that is, bank liabilities,
ances due other banks consisted of
of the
—
excepting bal-
of total
The estimate
of the
Comptroller of the Currency for last year, regarding Savings Banks, was that 1,157 of these institutions had 3
billions 175 millions of total resources, or practically 600
millions less than those of the Trust Companies. According to Census Bulletin Number 21, which has just been
issued, the commercial value of steam railways in the
United States is given as eleven and one-quarter billions
of dollars, a sum only about three times the total resources of our Trust Companies it being a fact that in
point of steam railway wealth the four leading States,
Pennsylvania, New York, Illinois and Ohio, appear as
having 3 billions 814 millions of commercial value, an
amount almost exactly equivalent to the aggregate assets
of our 1,115 Trust Companies.
A single illustration more. The Comptroller of the
Currency estimated last year that the banking power
;
Banking
By Frederick
129
Banking power of the United States and
Island possessions
of foreign countries
A
total
estimate
throughout
the
world of
"
33
007
Will you, in conclusion and with thanks for your
kind attention to all of these remarks upon the growth
and status of American Trust Companies, permit, as a
thought regarding these 33 billions of banking
power, that our Trust Companies, with their present liabilities of over three and three-quarters of billions of
final
—comparatively
dollars
little
moneys due other banks
of
of which
—offer
is
of the nature
as their contribution
banking power a volume of credits
which may be fairly said to constitute one-tenth, and even
upwards of one-tenth, of the aggregate banking power
of this and other countries, the world over.
to the vast total of
Publicity.
Phillips, Secretary Lincoln
The economic,
13 billions 826 millions.
"
19
781
Hanking power
Trust Company,
New
York.
political and social development of our
country has been necessarily accompanied by many
changes in the forms of business and in the methods of
conducting business.
So rapid, however, has been the
development during the past twelve or fifteen years and
so radical have been the changes in that time that a
comparison of old with new methods would seem to show
a revolution. Question the merchant, the manufacturer,
the lawyer, the doctor along these lines if you require
testimony, although none realize these changed and still
changing conditions in every field of business, in every
edifice,
walk of professional life, more thoroughly than the
moneyed institutions. We are, then, at the present time
working under conditions in business not only not known
to the fathers of the younger generation, but unfamiliar
to any of us a few years back.
I venture to suggest
that the chief factor in these changes has been modern
by advertising publicity.
Why shall it not, therefore, be liberally educated
to the discriminating purchase of our commodities to
the use of the facilities of our banks, and the services of
our Trust Companies?
But let us go farther, mark you, for while making
public our own excellence, let us seek to teach the public
to eschew all practices opposed to conservative banking
to avoid all financial traps, pitfalls and schemes and to
However that may
scientific competition.
be,
it
is
be-
yond question that these new economic conditions have
created an imperative demand for new facilities in
banking, for the fiduciary services of Trust Companies,
for the privileges afforded by the Savings Banks, for the
insurance- issued by surety and casualty companies, for
the investments offered by banking firms.
Now
these facilities and services are as truly merchandise commodities as are corn, coal or dry goods.
The banks sell credits; the Trust Companies sell services.
We are on the same plane with the merchant in
his warehouse.
Conceding, then,
moneyed
if
institutions
you
is
will,
that the business of the
in every sense, al-
commerce
though along highly developed lines, conceding that we
all have our stock in trade as any business has, you
must also concede that we can successfully avail ourselves of honorable and appropriate commercial methods
of procuring business.
In other words, a bank or a Trust
Company needs depositors, customers, clients, patrons,
whatever you please to term them, in the same degree as
any other business, and of all means of procuring business the most effective is publicity. I use the word in
its most modern sense, that of making public the merits
of an article with a view to creating for it a market.
The purpose of this proposed Association, then, is to
promote Banking and Trust Company publicity to the
end that we may promote our business and while we
are all doing something in the way of publicity for publicity is accomplished in divers ways, as by a handsome
;
—
a reputation for courtesy, a favorable report in the
—
community but few of us have fully availed ourselves
of the supreme methods of publicity printers' ink, both
in the form of the newspaper advertisement and adver-
—
tising literature.
The most
this
successful
kind of publicity
publicity
of
this
kind,
and
the most successful, is based
public is being daily educated to
is
upon education. The
buy this and that brand of breakfast food, shoes, soaps,
tooth powder
it is being educated to travel and care
;
for its health by recreative sports
commercially,
morally,
;
it is
being instructed
politically
—
;
divest itself of all the risks
and
responsibilities attach-
ing to personal and individual administration of fiduciary offices, the care of estates and the investment of
funds.
that
it
Our public is already a highly educated one,
knows a little something of everything, but
in
if
which it possesses less
and valuable knowledge than of anything
else, it is of the business of banking, and the services of
the Trust Company and the benefits and advantages of
the various classes of moneyed institutions.
there are any things of
real,
serviceable
It
was many years
before the public learned to use
the savings banks, and even to-day the savings banks
are not understood as they should be for the welfare of
the vast wage-earning class. On the other hand, our savings banks, I refer particularly to the mutual savings
banks, carry many millions of money, such against their
will, if I understand the matter rightly, money which
they would prefer elsewhere than in their own institutions.
So with the Trust Companies. How little are
these admirably organized and thoroughly equipped institutions understood, although it is gratifying to note
that day by day the public is more fully employing their
powers. In short it is a fact that what the National,
State and Savings Banks and Trust Companies en do today for the public, and how they do it, is far beyond
the public's knowledge.
As
stated, then, the
primary object of
this Association
:
:
BANKERS' CONVENTION.
130
the systematic education of the public to the discriminating use of these institutions, and to inform it of the
particular advantages of each.
is
pany, Cleveland Herbert P. Wenig, Auditor Windsor Trust Company, New York C. E. Woodside, Manager Bond Department,
Los Angeles Trust Company, Los Angeles, Cal. Charles Moore,
Secretary Union Trust Company, Detroit C. J. Craft, Secretary
Central Trust and Savings Company, Philadelphia C. G. Ellsworth, First National Bank, Chicago Stephen Appleby, Assistant
Cashier Pacific National Bank, Tacoma Robert J. Lowry, President Lowry National Bank, Atlanta George W. White, Cashier
Commercial National Bank, Washington, D. C. Treasurer, Edward F. Feickert, Assistant Treasurer Plainfield Trust Company,
Plainfield, N. J.
Secretary, Frederick Phillips, Secretary Lincoln Trust Company, New York.
;
;
;
;
It is hoped to accomplish these ends in part by the
interchange of ideas, information and methods of publicity.
It is proposed further to have local or district
headquarters in each of the large cities, with a manager
whose duty it shall be to keep in touch by correspondence
with members throughout his district; to procure from
them such literature, business forms, advertising matter,
samples of soliciting and advertising letters, as may be
obtainable, together with such statement, comment, remark or information as may prove useful for the guidance of members of the Association each manager to be
required to send to the Secretary one or more copies of
all such literature, letters, etc., received by him
requests for information or specimens of such literature,
etc., from member institutions to be addressed to the
Secretary and to be answered and, if possible, granted
by that officer.
There has been some misapprehension of the exact
purport of this paragraph. It is not asked that members
shall give up any trade secrets or private matters pertaining to the conduct of their business, but merely that
they shall look at the plan in a broad way, and part
with such of their printed matter, etc., as they believe
will be useful for the purpose.
Those favoring this
Association must of course be of the mind that this interchange will not be the giving of something for nothing, but a quid pro quo, and that what in this instance
is to the benefit of all must be to the benefit of the in;
;
dividual.
must be that the coming together from time
time
of
the
members of this Association must be proto
ductive of good. At all events, such an Association as
this, once organized and prepared for activity, will prove
a useful instrument in proper hands and a power for
good to the community in general and the banking world
in particular in ways and along lines that may not yet
have occurred even to us.
Finally
it
At a meeting held in Washington on October 10 in conjunction with the American Bankers' Association, the
Banking Publicity Association of the United States was
formally organized, by-laws adopted and the following
officers duly elected
President, Harold A. Davidson, Secretary Home Trust Company of New York, Brooklyn
First Vice-President, D. C.
Wills, cashier Diamond National Bank, Pittsburgh.
Vice-Presidents, Pierre Jay, Vice-President Old Colony Trust Company,
Boston James B. Brock, Secretary Mississippi Valley Trust Company, St. Louis E. G. Tlllotson, Treasurer Cleveland Trust Com;
;
;
;
;
;
;
;
;
The following institutions have expressed their approval of the purpose of the Association
Lincoln Trust Co., New York.
Van Norden Trust Co., New York.
Windsor Trust Co., New York.
Redmond & Co., New York.
Guardian Trust Co., New York.
Home Trust Co., of New. York,
Brooklyn.
Plainfield Trust Co., Plainfield.
Old Colony Trust Co., Boston.
National Bank of the Republic,
Chicago.
Northern Trust Co., Chicago.
The West Side Trust and Savings
Bank, Chicago.
Mississippi Valley Trust Co., St.
Louis.
Cleveland Trust Co., Cleveland.
Los Angeles Trust Co., Los Angeles.
Union Trust Co., Detroit.
First National Bank, Oswego.
Diamond National Bank, Pittsburgh.
Central Trust and Savings Co.,
Philadelphia.
First National Bank. Chicago.
State Bank of Chicago, Chicago.
American Security & Trust Co.,
Washington.
Union Trust Co., Philadelphia.
Mercantile Trust Co., St. Louis.
Citizens Bank, Henderson, N. C.
National Underwriting & Bond
Co., San Francisco.
State Savings Bank, Detroit.
The People's Savings Bank, De-
The Trust Company,
account of
its liberal
many
charter,
is
States of the Union, on
authorized not only to
do a general banking business, but also to do everything
or anything else where bonds, stocks, mortgages or real
estate enter into or are part of the transaction, and from
my observation rery few transactions of any magnitude
are negotiated without real estate being one of its important factors. Take one of the most important departments of a Trust Company namely, the trust department. I say " most important " because it Is the department where trust in its truest sense should be exemplified, as it has the management of estates for widows and
orphans, and it frequently happens that the largest por-
—
tion of such estates consists of real estate.
the real estate department
cer,
Is
Then
it is
that
of inestimable value to the
Trust Company, as every well equipped real estate department should have experienced appraisers, salesmen
la.
The Peoples Bank, Humboldt,
F. G. Farrell & Co.,
Jacksonville, Fla.
State
ton.
National
la.
Bankers,
Blooming-
Bank,
111.
Security Storage & Trust Co.,
Baltimore.
Third National Bank, St. Louis.
Easton National Bank, Easton,
Pa.
Trust
Guarantee
Atlantic
Co.,
City.
& Dominick, New York.
Equitable Trust Co., Chicago.
Real Estate Trust Co.. Phila-
Dominick
delphia.
Co., Chicago.
The Royal Trust
Bank,
National
Commercial
Washington, D. C.
Commonwealth
Trust
St.
Co.,
Louis.
Iron City Trust Co., Pittsburgh.
Union Savings & Trust Co., Clncinnatl.
Interstate Trust
New Orleans.
&
Banking
&
Co.,
Trust Co.,
Brooklyn.
American Trust Co., South Bend,
County Savings & Trust
Wellsboro, Pa.
The Security Trust Co., St. Paul.
Chemung Canal Trust Co., Elmira, N. Y.
Spokane & Eastern Trust Co.,
Spokane, Wash.
Pacific National Bank, Tacoma,
Ind.
Security Trust Co., Wheeling. W.
Va.
Portland,
Portland Trust Co.,
Tioga
Co.,
Ore.
Guarantee
Barre,
Francisco.
to
&
Barre Savings Bank
Wash.
Merchants National Bank, Nashvllle. Tenn.
Humboldt Savings Bank, San
Title
Trust
Co.,
Pittsburgh.
Granite
&
Trust Co.,
Vt.
Savings
Barre, Vt.
Guarantee
Title
Atlanta.
&
&
Trust
Trust
Co.,
Co.,
a Trust Company.
Anderson, Vice-President of the Mercantile Trust Company of
E.
in
Co., Maiden, Mass.
Traders National Bank, LoweU,
Mass.
The First National Bank, Birminghani, Ala.
York Trust Co., York, Pa.
Bank, SpenCitizens National
Trust Co.,
The Benefit of a Real Estate Department
By Lorenzo
Maiden Trust
Long Island Loan
trolt.
New Castle Savings &
New Castle, Pa.
Citizens Bank, Greenville, Miss.
Trust Co. of Dallas, Texas.
St. Louis.
and rent collectors, of whose integrity and ability there ia
no question and the company thus avoids the necessity of
seeking outside assistance in the management of the real
property belonging to such an estate.
And it is through the real estate department, in a
majority of cases, that it is possible for the trust de-
partment to secure the management of such estates, because when a person makes his will, and Is possessed of
considerable means, his first consideration Is to name as
executor of his estate some individual or corporation in
whom he has the greatest confidence, and the fact that
the Trust Company has managed his real estate affairs
satisfactorily and successfully during his lifetime, and
is thoroughly familiar with all the details of his property, influences him to a great extent in selecting such
company to handle his estate
The financial department
after his death.
of the Trust
Company
is
TRUST COMPANY SECTION.
benefited in
many ways by
tbe real estate department.
For instance, wben money is easy and the financial department has a surplus of idle cash on hand, the real
estate department can be called on to procure for it inyestments in the form of real estate loans, and as these
loans are made only on a conservative basis, after the
property has been inspected by men experienced in that
line and approved by the officer in charge of the real
estate department, they can again be disposed of through
that department without any difficulty in case it becomes
necessary or desirable to do so.
The real estate department is also the medium through
which the financial department secures a number of depositors. Take the case of an individual whose property
He comes into
is sold through the real estate department
the office to close up the transaction and the consideration
is paid to him in cash, or part cash, and the remainder
by deed of trust and notes. It is frequently only necessary to make the suggestion to him that he open an account with the company with the proceeds of the transaction, and it is very seldom that one will leave the office
without doing so. It is not an uncommon occurrence in
the real estate department for a buyer to make the cash
payment on a real estate deal by a check drawn on the
company and for the seller to open an account with the
company by depositing the same check, the company
thereby making a commission on the sale of the real estate and securing a new depositor on the same transaction.
however, the person desires to convert the proceeds
of a real estate sale into an investment other than real
estate he is referred to the bond department, where he
will undoubtedly invest the money in securities which that
department offers. Thus the bond department is provided with a new client, who, if it were not for his dealings with the real estate department, might never have
transacted business of any character with the company.
The deposits of a successful real estate department are
in themselves a considerable item, if it has a large rent
If,
roll.
In 90 per cent, of all real estate transactions only a
part of the consideration is actually paid in cash, the balance being secured by deed of trust and notes on the
property sold. The seller, therefore, after the sale has
been consummated, has on hand a number of valuable
papers, which he will desire to place in a safe repository,
and as the safe deposit department of the company Is
so convenient, he is certain to rent a safe deposit box
from that department. As the notes become due they are
placed with the collection department and the proceeds
deposited to his 'account. In this manner the customer
is enabled to transact all the details of a real estate deal
with one company, making it convenient for him and profitable for the company.
Then again a large number of people have occasion to
visit the real estate department.
Some of them come in
to rent a house, others to pay rent or purchase property
and some to inquire about real estate. Many of them
may not transact any business at the time, but there Is a
possibility of each person becoming a customer at a later
date, by reason of their remembering the former visit.
Again, if one takes into consideration its value from an
advertising standpoint, he can readily see how beneficial
it is to an institution to have a great many people constantly entering
and leaving
its
building.
Trust Company from an advertising
name of the company before the public, through the medium of the newspapers, sign boards and rent bills which are scattered
throughout the city. In the case of the Mercantile Trust
Company (I mention this company because of my knowledge of its affairs), one cannot visit any portion of the
city of St. Louis without seeing its name on some sign
announcing property for sale or lease, and every day in
the year its name will be found in the newspaper for a
like purpose. It is needless for me to comment on the adIt also benefits the
standpoint, by continually keeping the
131
vantages of such extensive publicity, as it brings the company in touch with every man, woman and child in the
community who may some time have occasion to transact business with a Trust Company.
It may not be out of place here to say that the real
estate department, besides being advantageous to the
company
of
which
it is
a part, contributes in a
which
manner
to
located, by pro-
the prosperity of the city in
moting syndicates for the conducting of large real estate
enterprises. The real estate department of the company
it is
with which I am connected has organized corporations
and promoted deals aggregating millions of dollars. For
these corporations it simply acted as agent, not being interested in any of them as a stockholder. In other
words, in the promotion of the syndicates the real esall of
tate department, or the Trust Company, had no direct
interest whatever in the corporations, apart from acting
owned by them for colon same, or performing the duties of manager of construction of office buildings or commercial structures being erected by the syndicate, for which services it
receives commissions and fees. In addition to this it has
as agent for the sale of property
lecting rents
the placing of insurance, letting of repairs and
payment
of taxes on all such buildings, making it necessary to
handle large sums of money and transact business with a
great many people, and as a result of these dealings a
large portion of these individuals subsequently become
regular patrons of the institution.
In the affairs of a community, the real estate agent
ranks next in business importance to the banker. Real
immemorial has been the foundation of
all values and has furnished more business for different
lines of trade than any other commodity. The iron foundries, brick manufacturers, lumber merchants, certain professions and all mechanics are prosperous when the real
estate from time
The real estate agent is the herald of progress, the maker of villages, towns and cities,
and his efforts mark the advancement and progress of
municipalities, and any Trust Company is indeed fortunate to have among its departments a well equipped
estate business is good.
and properly conducted
real estate
department
In order to be valuable, a real estate department must
be progressive, must be competent to cope with and carry
to successful issue enterprises and deals of any magni-
To do
tude.
this
it
must necessarily
attract capitalists
.-and capital seeking this avenue of investment, and it is a
well-known fact that many of the most prosperous citizens of large cities invest only in real estate. Real estate is the investment which is sought by many who have
made their money in other channels and who, desiring to
convert their funds into an investment which they know
to be safe and which will net them a good return, naturally turn their thoughts to real estate. The Trust Company, by reason of its prominence and reliability, having attracted their attention, it is through it that they
make investments of this character, if the company has a
real estate department and it thus secures a class of investors it would not otherwise have obtained.
In summing up the advantages accruing to the Trust
Company from a real estate department I would say
that
it
not only benefits
all
other departments, but
is in it-
As an individual department the real
self profitable.
estate department of the Mercantile Trust Company is
operated as a separate and distinct branch that is, it
—
pays for
all its
own
advertising, pays the salaries of the
the Trust Company who have charge of the
department, as well as of all the employes connected with
officers of
the department, and defrays all the other expenses incurred in the conduct of the department. It also makes a
monthly statement to the company, at the same time turning over to
it
the net results of the month's business,
which, in the case of the institution with which I am
associated, has always been of such a satisfactory nature
that I am inclined to believe that the real estate department is one of its most valuable assets, as it is not only
unnecessary for the company to invest any of its capital
BANKERS'
132
any of the transactions of that department, but that
self sustaining and profitable.
In my opinion no
Trust Company is complete without a real estate department, because the object of a Trust Company should be
to take care of everything that comes its way. In other
ill
it
is
words,
it
should
let
nothing escape that
may
result in a
CONVENTION.
commission or a fee, and it is my firm belief that a company is not in a position to do this unless it has a real
estate department as one of its departments. Therefore, I
unhesitatingly say that every Trust Company should have
a real estate department if for no other reason than that
it
will pay, if properly conducted.
KIDDER, PEABODY & CO.
BOSTON
Investment Securities
Foreign Exchange
Letters of Credit
Detailed Report of Proceedings*
TRUST COMPANY SECTION,
Ninth Annual Meeting
October
New
Willard Hotel.
by the President, Mr.
E. A. Potter, President of the American Trust & Savings
Bank, Chicago, at 10:30 o'clock a. m.
Prayer by Reverend Robert M. Moore.
The meeting was
The President:
called to order
I
take great pleasure in introducing
Mr. Stellwagen, of Washington.
Address of Welcome by Edward J. Stellwagen,
President of the Union Trust Company, Washington, D. C,
Mr. Chairman and Gentlemen:
Hospitality,
it
1905,
10,
endeavor earnestly to make it impossible for
born of carelessness, fraud or corruption to overtake Trust Companies.
Banking Act
) ,
disaster
had intended calling attention to some of the provisions of the Trust Company Act under which the corporations of the District of Columbia operate which seem
to us of peculiar force and value, but I have already, I fear,
trespassed too long upon your time and patience and will
I
leave the further discussion of the important subjects to
my more
experienced asso-
ciates.
seems to me, should impress
itself
by
come needs no formal phrasing.
Again, gentlemen,
city of
of
you
Assuredly "it goes without saying" that an association
of men brought together to consider questions affecting the
advancement, direction and security of the great financial
Reply
institutions of the country
held
welcome, thrice welcome, to
the Nation's Capital.
your right to be here, and it is, it seems to me,
our right to have you. Because the Capital is here and
because here at the Capital is, and must always remain,
the inspiration, direction and control of our great National
System of Finance, Washington should, in my opinion, be
the permanent place for the annual meetings of the American Bankers' Association; but however this may be, the
fact that you are with us for this ninth annual meeting
of the Trust Section is a source of exceeding pleasure and
It is
gratification, not only to those of us who are connected
with local financial institutions, but to all of our people, in
whose name it is my privilege to bid you welcome.
May I detain you long enough to express the hope that
among the useful subjects to be considered by our Trust
Company Section the question of protective laws and
measures may receive positive and particular considera-
and by protective laws and measures I mean those
which are at once protective to the companies and to their
clients and depositors.
The growth and successful development of Trust Comtion,
panies in this country
is almost marvelous.
comparatively few years they have intrenched
themselves firmly in the confidence of the public and its
favor.
They have rapidly broadened the scope of their
operations, each year entering upon new fields of enterprise
and endeavor, and adding new departments for the simpler
and safer administration of the affairs of men.
With this rapid growth and development in number, in
In
Washington, D. G,
at
be considered by our Section to
deeds rather than by words, and a true and heartfelt wel-
is
Held
a
scope, in favor, in influence and in wealth has come a corresponding increase in responsibilities, in temptations and
in dangers, which are so unfortunately emphasized in recent
disclosures of corrupt and corrupting practices connected
with some corporate institutions and their management.
Notwithstanding the rapid advancement in heretofore
untried fields of corporate development, the ease with which
charters may in some localities be obtained, the 'small
capital required and the some time absence of protective
provisions, the record of Trust Companies for stability,
conservatism and integrity in management is good and
and their immunity from disaster and scandal is
and congratulation.
But,
gentlemen, we must not rest content with that record, excellent though it be; our increasing success and development creates new conditions, which bring with them new
dangers, and these require better methods, stronger safeguards and stricter scrutiny and care.
Let us, then, by raising our standards, safeguarding our
investments, favoring charter requirements and restrictions
clean,
rightfully a matter for pride
(perhaps along the lines of the provisions of the National
Washington
I
bid you welcome to our beautiful
city, which is your city, for none
—our
shall be as strangers within our gates.
Address of Welcome, by Edwin A.Potter.
For many years the American Bankers' Association has
its
to
conventions in one of the great industrial cities of
the country, where commercial strife, enterprise and business activity have been the predominating influences and
spirit of
And
the locality.
which Washington holds
in
while appreciating the place
the business world, it is a
special pleasure to us to assemble
on this occasion in
this,
the beautiful Capital of the Nation, a centre of art, literature and politics. Every citizen of the United States feels
a certain sense of proprietorship and pride in Washington,
which is admitted to be the most beautiful city in America,
and will be still further beautified when the plans which
the District Commissioners have in hand are fully developed and carried out.
Washington is rich in historical interest; her galleries
and public buildings contain the portraits and her parks
the statues of illustrious statesmen, soldiers and sailors
who have been such important
factors in shaping our past
history; and, while justly proud of those great
of their achievements,
we have reason
men and
to congratulate the
country, and, in view of more recent events, the whole world,
our present Administration, whose
executive head is a man endowed not alone with remarkable
physical force and courage, but that higher attribute, great
moral courage a man of a mentality so virile, distinctive
and illuminating that its influence is felt not only in this
country, but throughout the world; a man of strong convictions, with the courage of his convictions, quick to see
the right and prompt to act without fear or favor, making
new precedents whenever occasion demands, enjoying to an
eminent degree the confidence of the whole people irrespective of party, with the result that, as a nation, ve are
harmonious and prosperous at home and respected abroad.
The material development of this country is the wonder
of the age.
Her fields, her factories and her natural resources are putting forth their products in such quantities
as to excite the admiration of the world. Along with this
development must, and has naturally, come a more extensive development of our financial necessities and institutions, and in no direction has this been more marked than
in the Trust Companies, whose rapid growth has brought
them prominently into public notice. Much has been said
and written of late about placing the Trust Companies
under Federal supervision. The Honorable Secretary of the
Treasury, in his last report to Congress, recommended legislation that would enable Trust Companies to incorporate
under Federal laws. While 1 do not at this time care to
express an opinion on this subject, I do want to go on
record as advocating frequent and rigid official examinations, whether State or Federal.
There should be no theory about administering affairs
of Trust Companies other than that which applies to every
upon the personnel
of
—
•
:
BANKERS' CONVENTION.
134
—
namely, administering them upon the broad,
deep principles of conservatism, honor and integrity.
The citizens of Washington have demonstrated their
'faith and confidence in Trust Companies to a greater degree
business
than have those of any other city in the entire country, for,
according to the report of the Comptroller of the Currency,
Trust Companies ot Washington exceed
National Banks by about 70 per cent.
Surely the members of the Trust Company Section of the
American bankers' Association have fallen among friends,
and on their behalf I thank you and those you represent
for your most cordial, hospitable and gracious welcome.
Upon motion the report of the Secretary was received
.the deposits of the
those
and
of.
her
filed.
Report of Secretary.
New
To the Members
By
By
By
By
By
By
York, September
Company
RECEIPTS.
of the Trust
1,
1905.
Section:
balance, September 1, 1904
$812.05
appropriation of Executive Council, September 16. 1,000.00
appropriation of Executive Council, May 3, 1905.. 1,500.00
sale of four Trust Company Forms at $12
48.00
sale of
Trust Company Section Proceedings,
1896-1903
663.75
debit balance
216.54
$4,240.34
DISBURSEMENTS.
Proceedings, 1904
Proceedings, 1896-1903
$574.75
1,273.51
New
Expenses Executive Committee meeting,
May
2,
York,
1905
884.30
837.50
580.08
90.00
Salary
Stationery, printing and postage
Expenses of Convention in New York
$4,240.34
pamphlet form and sent to every Trust Company in the
country.
In accordance with the further action of the Section, the
Executive Committee referred to a sub-committee the general subject of the protection of Trust
Companies acting
in
these capacities, with the suggestion that proper forms for
the use of Trust Companies in the registration and transfer
and as trustee under corporate mortgages be
submitted to the Section at its coming meeting. This sub-
of securities
committee was also charged with the duty of ascertaining
the average fees for the performance of these services.
report of this sub-committee
is
given in
The
full.
The undersigned, as a sub-committee appointed by the
Executive Committee of the Trust Company Section of the
American Bankers' Association to consider the recommendations contained in a paper upon transfer agent and registrar read at the last meeting of the Trust Company Secand to make report thereon to the Executive Commit-
tion,
do hereby respectfully report:
tee,
That while the Trust Companies do not admit that
assume any
such measure of responsibility as that suggested by articles
read before the Convention at various times, it would be
desirable to eliminate absolutely the opportunity for any
1.
in acting as transfer agent or registrar they
claim that the Trust Company serving in either capacity is
liable save as an ordinary agent.
Obviously, there are but
two ways in which liability can be defined in advance: either
by agreement between the principal and agent or by legisThe latter was recommended in the article under
lation.
consideration, since a statute would as clearly affect the
company issuing the stocks transThe form proposed for New York
investing public as the
ferred or
registered.
was as follows:
To
debit balance, September
1,
1905
216.54
At the close of the fiscal year, August 31, 1904, 566 members had paid their dues, but, owing to withdrawals and
liquidations, sixty-eight were
dropped from membership,
leaving 498.
One hundred and forty having been added to
the rolls since September 1, 1904, the present membership is
638, the largest in the history of
the Section.
Respectfully submitted,
JAS.
R.
BRANCH,
Secretary-
"Section
of
any such
156.
Powers of Corporation.
certificate of authorization of
Upon
the filing
a trust company,
named therein and their successors shall thereupon and thereby become a corporation which, in addition
to the powers conferred by the General and Stock Corporation Laws, shall have power,
"1.
To transfer, register and countersign certificates of
stocks, bonds and other evidences of indebtedness of corporations, with liability to such corporations and to the owners
or holders of such certificates of stock, bonds or other evithe persons
Report of the Executive Committee. Report by the
Chairman, Festus J. Wade,
The Executive Committee of the Trust Company Section
dences of indebtedness solely for the negligence or willful
misconduct of its officers in reference to such certificates of
stock, bonds or other evidences of indebtedness, or in the
appointment, or employment of its agents, clerks or em-
American Bankers' Association respectfully submits
the following report
The membership in the Section during the past year as
reported by the Secretary shows a gratifying increase.
The continued organization of new Trust Companies in
the different States justifies the belief that our membership
ployes dealing therewith.
of the
may
be largely added to, and the influences of the
Section strengthened, particularly through the work of our
Vice-Presidents, by bringing to the attention of these newly
still
organized companies the advantages of membership in the
Section.
To
this end each Vice-President will be given a list of
the Trust Companies in hie State not
ciation,
and during the coming year
members
it
may
hoped that by
the membership
is
direct effort on the part of these officers
in the Section
of the Asso-
be largely increased.
The regular meeting of your Executive Committee was
held in New York on May 2, at which there were thirteen
members in attendance. At this meeting the Committee
on Protective Laws made its report, a synopsis of which it
was requested to present at this meeting of the Section.
The Committee on "The Classification of Legal Decisions
Relating to Safe Deposit Companies; Duty and Liability to
Box-Holders, and a Compilation of the Hules and Forms of
Typical Companies " also made its report, and, by vote of
the committee, was requested to submit the same, together
with the report of last year, in printed form at this meeting ot the Section.
Pursuant
to the action taken at the last
meeting of the
Section, the address delivered at that meeting by Mr. Jordan .j. Rollins on "The Protection of Trust Companies Acting as Transfer Agents and Registrars " was printed in
"2.
To act as the fiscal or transfer agent of any State,
municipality or body politic."
It
was suggested,
also, that there
should be some statu-
tory provision making the limitation of liability apply to
Trust Companies existing at the time of the adoption of
the statute, whether incorporated under general laws or
special acts.
Thereby Trust Companies would be precluded
from undertaking on any terms a form of contingent liability, which is more properly an insurance risk.
2.
If in any State it shall not be possible or convenient to obtain legislation of the character indicated, then
may
such protection as
propriate indorsements
be afforded by the adoption of apis
recommended.
As regards the transfer
may
agent,
form
the
employed
be:
"Countersigned:
Trust Company, as Trustee.
By
Secretary."
"Registered this
day
of
Trust Company.
As Registry Agent."
"Registered this
day
of
Trust Company,
As Registration Agent."
now commonly employed the signature of
Company is followed simply by the word "Reg-
In the form
the Trust
form does not as clearly show that the
an agent as do the other forms suggested.
As regards bonds, the committee recommends the
istrar," but this
registrar
3.
is
adoption of the following indorsements:
"It is hereby certified that this bond
is
one of the series
:
TRUST COMPANY SECTION.
of bonds mentioned and described in the
of trust within referred to.
mortgage or deed
Trust Company, as Trustee.
By
,
Secretary.
There also may be inserted in the mortgage some such
protective provision as the following:
135
shall be no part of the
this indenture, mortgage,
duty of the Trustee to file or record
deed of trust, assignment or other
instrument whatsoever that may be delivered to it under
the terms of this instrument as a mortgage, deed of trust
or conveyance of real estate, or as a chattel mortgage or
conveyance of personal property, or to renew such deed of
trust or mortgage, real or personal, or to procure any further, other or additional instrument of further assurance,
or to do any other act which may be suitable and proper
to be done for the continuance of the lien or charge hereof,
or for giving notice of the existence of such lien or charge,
or for extending or supplementing the same; nor shall it be
any part of its duty to effect insurance against fire or other
damage on any portion of the premises or property hereby
mortgaged, or to renew any policies of insurance, or to keep
itself informed as to the payment of any taxes or assessments, or to require such payment to be made; but the Trustee may do any or all of these things.
it
"The Trustee shall not be compelled to take any action
as Trustee under this mortgage unless first properly indemnified to its full satisfaction, nor shall it be chargeable with
notice of any default on the part of the Company except
upon delivery to it of a distinct specification in writing of
such default by some person or persons interested in the
trust, whose interest, if the Trustee shall reauire, must be
proved to the reasonable satisfaction of the Trustee.
"In case at any time it shall be necessary and proper for
the Trustee to make any investigation respecting any fact
or facts preparatory to taking or refraining from taking
any action, or doing or not doing anything, as such Trustee,
the certificate of the Company under its corporate seal, attested by the signature of its President or Secretary, or the
affidavit of one or more directors, shall be conclusive evidence of such facts to protect the Trustee in any action or
position that it may take or assume by reason of the supposed existence of such facts.
"It is further covenanted and agreed that the Trustee
under this deed of trust is, and shall be, entitled to reasonable compensation for all services rendered hereinunder,
or in connection with the trust, which compensation, together
with any and all necessary and reasonable expenses, charges,
counsel fees and other disbursements incurred by the Trustee
in the discharge of his duties as such, shall be paid by the
Company or out of the trust estate upon which they are
hereby made a lien and charge superior and prior to those
of the bonds secured hereby.
"The Trustee shall be protected in acting upon any resolution, nctice, request, consent, certificate, affidavit, voucher,
bond or other paper or document believed by it to be genuine
to have been passed or signed by the proper party.
"Every Trustee hereunder may at any time resign from
the trust by mailing, at least sixty days before such resignation shall take effect, a duly addressed notice in writing to
that effect to the Company, and to all bondholders who may
be known to the Trustee to be such, and whose addresses
and
shall likewise
be known to
it."
The committee, however, does not intend to suggest that
the inclusion of such a protective provision as that quoted
above would do away with the necessity for the employment
of counsel by a Trust Company in accepting a corporate
mortgage trusteeship.
As
to fees, the
Chairman
services,
in carrying out the wishes of the last Convention, addressed
a
letter to
many Trust Companies
in various parts of the
country, and the replies thereto point to a practical unan-
imity on this subject. Charges for acting as Trustee under
corporate mortgages are based on so much per bond, usually
$1.00 each for small issues, the term " small " being relative, conditions, localities and legal and other services to
be taken into consideration and charged accordingly. The
larger companies, in paying coupons, make no charge when
the
money
is
deposited with
them at
least ten to thirty
y8
depending upon the capitalization and
charges
and
registered, as well
as various other considerations which will occur to every
Your committee can only point out that the charge
one.
made for such services should not by any means cover the
rendering these
various services. Establishing friendly relations with a
corporation as its trustee, transfer agent or registrar,
entire
the Trust
to
profits
Company
in
should lead to closer relations in the various lines of Trust
Company activities, and the profits resulting therefrom
must be kept in mind in considering the initial charge.
The committee desires to express its appreciation of the
valuable assistance of Mr. Jordan J. Rollins in connection
with the legal questions involved in its work.
Respectfully submitted,
C. Babcock,
Festus J. Wade,
Clark Williams,
Philip
Committee.
and fiduciary
by the improper use of other descriptive terms in corporate titles beside the word "Trust,"
such as "Bank," "Saving," "Security," etc., the Executive
Committee by resolution has instructed the representatives
of the Trust Company Section to lay the matter of the en-
As the dangers
to the legitimate financial
institutions are involved
actment of General Protective Laws before the Executive
Council of the American Bankers' Association, with the
suggestion that the proper legal committee co-operate with
the Section in the future.
The committee
calls attention to the fact that the proCompany Section from its inception,
ceedings of the Trust
including 1903, have been published in one volume, and it
is believed that the addresses, papers and discussions contained therein will be of great value to the Trust Companies
throughout the country. This book is on sale in the regis-
room at a price to cover the cost of its publication
by the Section, and may be had on application to the Sec-
tration
retary of the Association.
The members are also reminded that a number of typical
Trust Companies in different parts of the country have furnished, blank forms of all characters used in their different
departments, which are lodged with the Secretary at No.
11
Pine Street,
New York
City, for the use of
members
of the Section.
Your committee
is
of the opinion that the largest bene-
from the discussion of practical subjects and the interchange of views upon matters
of vital importance to Trust Companies of the country.
fit
of these meetings is derived
The members are therefore particularly invited
to partici-
pate in such discussions.
Respectfully submitted,
Executive Committee.
Festus J. Wade, Chairman.
On motion the report of the Executive Committee was
received and filed.
The next order of business is the report
The President
of the Committee on Protective Laws.
:
Report of the Committee on Protective Laws.
To the Members of tlie Trust Company Section of the American Bankers' Association:
Your Committee on Protective Laws
respectfully reports
as follows:
As
of your Executive Committee,
or
per cent is proper, except as to the general principle that a
transfer agent should be paid twice as much as a registry
It is difficult to formulate any definite rate for these
agent.
activity of the stock to be transferred
"As a condition precedent to the acceptance of the said
trust by the Trustee it is further stipulated and agreed by
and between the parties hereto and all present, or future
holders of bonds secured by these presents, that the Trustee
shall not be answerable for any act, default, neglect or misconduct of any of its agents, representatives or employes,
by it appointed or employed in connection with the execution of any of the said trusts, nor in any other manner answerable or accountable under any circumstances whatsoever, except for gross negligence or bad faith; that the recitals contained herein, or in the bonds as to priority of lien,
due authorization or any other matter whatsover, are made
by and on the part of the Company, and the Trustee assumes
no responsibility for the correctness of the same; also, that
%
days in advance of payment, otherwise a charge of
the result of the action taken at the last meeting of
the Section a standing committee of three was appointed,
known as "The Committee on Protective Laws," and
to be
was charged with the duty
of accomplishing
two
specific
objects
1st.
To determine the present condition
in the different
Com pan
-'
?s by the
where
and
to
endeavor
to
secure
necproper State
essary the enactment of laws providing for such State
States as to the supervision of Trust
officials,
supervision.
2d.
To endeavor
to secure in the different States the
(
:
BANKERS' CONVENTION.
130
enactment of laws prohibiting the use of the word "TRUST"
in corporate title of any corporation not a moneyed corporation and chartered to do a Trust Company business.
As the work possible of accomplishment in one year was
necessarily limited, it seemed wise to your committee to
direct its attention to the States having the larger number
of Trust Companies.
On the basis of the last accurate list
of the Trust Companies of the country as of July 1, 1904,
there were twenty-five States having more than ten Trust
Companies. Of these States the following have laws providing for supervision which, with but few exceptions, is
thorough and satisfactory:
State.
State.
Alabama,
Massachusetts,
California,
Missouri,
Jersey,
Connecticut,
Georgia,
New
New
Illinois,
North Carolina,
Indiana,
Rhode
Kentucky,
West
Maine,
Maryland,
Island,
Banking Publicity, by Frederick Phillips, Secretary
Lincoln Trust Company, New York.
[Mr. Phillips' paper in full will be found on pages 129
to 130 of this publication.]
Discussions.
Virginia.
the basis of the last accurate
of Trust
list
Com-
panies above referred to, in the twenty-one States having
laws providing for State supervision, there were 751 Trust
Companies, and of these 452 are members of the Section.
In the four States having no supervision there are 112
Trust Companies, and 67 members of the Section. Seventysix per cent of the Trust Companies of the country
were
under State supervision.
to the restriction of the use of the
the following States
word "TRUST,"
now have laws providing
State.
State.
Indiana,
Maine,
Massachusetts,
Rhode
Jersey,
Island,
Texas,
York,
West
California,
In the case of the
five
Virginia.
States last mentioned this law
was passed at the recent meetings
of their respective legis-
latures.
There were 316 Trust Companies in these 9 States, of
which 207 are members of the Section.
The laws enacted, in almost every instance, have been
along the lines suggested, and in several cases
the exact
wording of the bill recommended by your Committee
has
been used.
The co-operation of the Vice-Presidents
of the Section
in the different States has been of the
greatest
advantage in
accomplishing definite results.
In many States in which
there were no meetings of the legislative body
during the
past year, the interest of the Vice-Presidents
may be relied
upon in securing the enactment of the desired laws
during
the coming meetings of the several legislatures.
The Committee
is of the opinion that only by
continued
from year to year can the ends desired
by the Section be accomplished, and its members
bespeak for their
effort
successors in the
work the hearty co-operation
of all con-
Respectfully submitted,
E. A. Potter,
Festus J. Wade,
Clark Williams.
On motion the report was received and placed on
file.
The President: The next is the report of the
Committee
on Classification of Legal Decisions Relating
to Safe Deposit
Companies, Audit and Liability to Box-Holders,
and a Compilation of the Rules and Forms of Typical
Companies.
We have not received this report.
The next is an address, "Benefit of a Real
Estate Department to a Trust Company," by L. E. Anderson,
VicePresident of the Mercantile Trust Company
of St. Louis.
Benefit of a Real Estate Department to a Trust
Company, by
RELATIONS BETWEEN BANKS AND TRUST COMPANIES.
The President
L. E. Anderson.
[Mr. Anderson's paper in full will be found on pages
130 to 132 of this publication.]
(after a pause)
relations ought to be of the
:
It is
certain those
most friendly character, and
perhaps there is nothing more to be said on the subject,
in New York City they are certainly very close. If there is
nothing to be said on the suoject we will pass to the second
topic.
VALUE OF A BOND DEPARTMENT TO THE TRUST
COMPANY.
for such re-
striction:
cerned.
a statement of the "Purposes and Scope of
Tennessee,
Ohio.
New
New
is
State.
Arkansas,
As
pany Section should become a homogeneous body and work
I won't say the same as the Nato a uniform system.
tional Bank system, but certainly a uniform system, with
by Frederick Phillips, Secretary of the Lincoln Trust Company of New York.
Virginia,
In the following States there is no supervision of Trust
Companies, although in several cases periodical reports
must be made to the State
On
in
[Mr. Perine's paper in full will be found on pages 127
to 129 of this publication.]
The President: I think the excellent paper which we
have just heard ought to impress upon us the importance
of the business we have in hand, and that the Trust Com-
The next
Texas.
State.
of Trust Companies
the United States, by Edward T. Perine.
Growth and Present Status
the Banking Publicity Association of the United States,"
Vermont,
Louisiana,
:
protective laws in every State.
York,
Pennsylvania,
Iowa,
The President
The next is a statement of the "Growth
and Present Status of Trust Companies in the United
States," by Mr. Edward T. Perine, General Manager of The
Audit Company of New York.
Mr. Caldwell, of the American Trust and Savings Bank
Mr. President, I do think this subject ought
of Chicago:
not to go by without the Section hearing from some representatives present who are conducting bond departments in
connection with Trust Companies. 1 know I came into the
Section this morning hoping to hear something on the subject.
As I came in I asked the President if I might have
a seat with the other delegates, and he said "Yes." I said,
"I am interested in the value of a bond department in
connection with the Trust Company." He said: "I can
answer that the value is in the profit you are able to turn
That answer is not inconsistent with the man or with
in."
the spirit of the Trust Company business. As I take it,
that is not the whole value of a bond department to any
well organized Trust Company, however. It is now common
in the West and Central West for nearly all the Trust Companies, at least in the larger States, to have an organized
bond department. I presume most of them have been organized to supply a demand that has grown up with the
growth of those companies by reason of the fact that people come to the officers of those companies with annoying
questions in regard to investments that they desire in the
form of bonds.
you undertake to become
the custodian of the money of widows and orphans, and also
to become the custodian of diverse and sundry bonds without
the knowledge, the technical knowledge necessary to possess
in the investment of money in bonds, you are liable to make
a serious mistake. Therefore, a well regulated bond department is of material value to the Trust Department.
To the financial department of the Trust Company there
is no more profitable way of investing your surplus money
than through the medium of a bond department. Again,
in the financial department there is no better way to replenish your cash, your reserve, if you please, than through
the medium of a well regulated bond department, by selling
the bonds at a time when money is most active, to be loaned
out to your customers. Every private individual invests
bis
I believe
that
if
surplus either in real estate or in stocks or bonds.
Every well regulated Bank invests in bonds, every Trust
Company is bound to do the same thing; and where the
Trust Company can afford it, whether it be small or large,
they should have a bond department equipped with all the
TRUST COMPANY SECTION.
knowledge that
is
to be acquired, so that
when they become
executor or administrator of an estate they are capable of
handling that business without going outside the door.
There are so many things that I will think of to-morrow
that I would like to tell you about the bond department,
and which I cannot now recall; but I would like to hear
the question discussed generously here. Many of us are a
thousand miles or two thousand miles from home, and if
these propositions are suggested and not discussed there is
(Applause.)
hardly any use of our coming here.
Mr. H. C. Harvey, Cashier American Bank & Trust
Company, Huntington, West Virginia: Mr. President, in
our section of the country, and I suppose all over the counTrust Company is to register
and certify bond issues, thereby putting a safeguard around
them that will prevent forgeries. The best article I have
read upon this subject appeared in the American Bankers'
Magazine from the pen of that able writer, Clark Williams,
of the United States Mortgage and Trust Company, New
try, one of the functions of a
York, on March 25th, of this year. I would like to see this
Association appoint a committee of not less than three to
compile literature, as the gentleman from Oregon has just
said, literature which is to the point, and to educate the
people, especially in the municipalities and in our counties,
upon the necessity
of having
bond issues registered and
cer-
by a reputable Trust Company before they are offered
That literature ought also to be disseminated through the banks of this country.
tified
to the public.
I find,
gentlemen, that National Bankers are not posted
on the bond question as they ought to be. A bank in my
neighborhood took a county bond as collateral security that
certified by a Trust Company; they
took that as collateral security, and it was renewed time
after time, and they carried it for three years on renewals.
At the end of three years they found that it was a forged
was not registered and
bond and not worth the paper it was written on. The
by Mr. Clark Williams will show you how
those forged bonds have reached your own city of New
York. One bank there was caught for $145,000, money
loaned on an issue of $155,000 of forged bonds.
Every safeguard ought to be placed around these bonds
if possible to prevent forgeries.
If a bond is registered and
certified by a Trust Company, we placing our certificate
upon the back of the bond, under the seal of our corporation, and cutting the end of that bond with the protectograph the size of the bond to prevent it from being raised,
we throw a safeguard around it that helps to prevent it
being forged. Not only that, but the income from registering and certifying bonds is quite, an income to the Trust
article written
Company.
would like to see this Association take the
hand to try to educate the people up, the
municipalities, and so forth, to having their bonds registered and certified by a Trust Company.
matter
I
in
In one of the municipalities in our locality not long ago
one of these so-called bankers came out and called upon
Mayor and clerk, and told them that it was not necessary to have them register and certify the bonds and pay
the
the
little
fee required for that
work, but stated that he
would take those bonds without being registered and certified and would give them as much as anybody else would
give.
Who knows but what they may have ten times the
amount necessary printed upon that plate, and with the
signatures of the Mayor and clerk? And so I would like
to see you take some steps to throw a safeguard around the
bond issues.
(Applause.)
EDUCATIONAL WORK TO DEMONSTRATE THE
PERIORITY OF THE TRUST COMPANY IN
SU-
FIDUCIARY CAPACITIES.
Mr. Benjamin I. Cohen, President of the Portland Trust
Company of Oregon
This subject, gentlemen, is one which
is very dear to my heart, and I will have to allude to my
own institution in order to show the work we have done.
Up to this time in this direction we are a small concern,
with total assets of about a million and a quarter. We
have no laws authorizing us to act as executors or administrators, and so our trusts are private agreements; in
:
137
make us testamentary
cases where people wish to
trustees,
one of our officers ap-
which is allowable, we usually have
pointed temporarily to act in any capacity necessary, doing
Trust
all the work, however, through the machinery of the
Company. Now, I recognized in the first instance that in
we had
order to educate the public
to attract the personal
I therefore, being
attention of the individual.
somewhat
fond of literary work, wrote two little books, one about
our Book of Illustrations,
and the other very recently, entitled "What Is a Trust
Company?" They are small and can be read in ten minutes.
They are neatly printed and nicely put together. The
Book of Illustrations we desire to attract money, the idea
we
three years ago, which
call
being by attracting money we would be in a position to
conduct trusts, and, as some speaker has said, if a man
puts his money in with you he generally wishes you to con-
duct other business for him. The Book of Illustrations,
therefore, was written in what I call the telegraphic style;
it is short and pithy, and each illustration is to the point.
We advertised in the paper three times a week, making our
advertisement short and direct, usually with some catchy
heading, and always ending by saying "Please call or send
Then when it is sent for
for our Book of Illustrations."
it
accompanied with a pleasant
is
little note,
and we are
going to read every word of it. If he
calls at the bank he is received courteously by one of the
officials, and if his business seems to be of sufficient importance he is shown into my room, and if he comes into my
pretty sure he
is
doom is sealed my rule is not to let him get away
with any more money than is necessary to pay his carfare
room
his
;
The particular branch of our business
(Laughter.)
home.
which this book illustrates has grown enormously in three
years.
Less than three years ago we had deposited in the
department to which that book refers about $85,000 to-day
we have about $550,000. We have gotten no end of business for every department of our company besides that and
in connection with that, and the little booklet has paid for
;
a thousand times over.
In doing this work, in directing the attention of the
public, we were frequently approached with the question,
"What is a Trust Company?" A friend of mine once re-
itself
marked to me, "There are millions of people who never
heard of Pears' soap," and there are untold millions of people who have never heard of a Trust Company.
So I looked
around for a book that told what a Trust Company was.
The best kind of a little book of that kind I found was one
Union Trust Company of Detroit, but the
was that it was too elaborate; their book
was one for a student rather than for a business man. The
next best to that I found was a book by Mr. Harris, of the
Mercantile Trust Company of St. Louis, used by the students of the Missouri University, I think, which is admirissued by the
trouble with that
able but it lacked facts in reference to the State of Oregon,
and so I wrote this little book, "What Is a Trust Company?"
;
I do not think
out broadcast as we would
a leaflet or anything like that, but it is meant to answer
the ordinary questions which the average man wants to
know. For instance, we state exactly that the Trust Company has nothing to do with trusts like the Standard Oil
and such. We also state something like this: I say, in
regard to just plain, everyday honesty, no glittering array
of assets, no high sounding names, will avail unless the
public has learned by long years of attention that the Trust
Company can be trusted and, like Caesar's wife, not only be
above reproach, but the Trust Company must be above suspicion.
It is my idea to adopt the same course with this
second booklet that we did with the first, to try to induce
It is
it
not intended for general distribution.
would do any good to send
it
man
on the street to ask for a copy and
adopt what the old Romans called the argumentum ad
the individual
hominem.
Never mind whether he does not give you
ness to-day or to-morrow
next year;
this second
attempt at
it
will
little
fine
;
it
will come,
come eventually.
I
if
busi-
not this year, then
have tried to make
first, with no
booklet different from the
writing in
it,
but conversational in tone, a
plain talk, a heart to heart talk, and it is astonishing the
good that it is doing. It has only been out a couple of
months, and we are getting returns already.
)
)
BANKERS' CONVENTION.
138
Therefore I suggest that this plan can be adopted with
by Trust Companies generally; if they would have
their booklet describing their departments of work, and
then use newspaper advertising to induce people to apply
profit
money expended would show
money expended in almost any way for
f«r those booklets, I think the
better results than
The public can be reached in this way better
any other way I know of. That is my experience,
advertising.
tkan in
lasting over eighteen years
in this work.
thank you,
I
Applause.
Mr.
Hobson, Norristown, Pennsylvania:
President, the question we are discussing is educational
work to demonstrate the superiority of the Trust Company
gentlemen.
Mr.
F.
(
G.
That
in fiduciary capacities.
is,
especially in relation to
trusts, as executor, guardian, administrator, etc.
it
that the best
way
to educate the public in this
I
way
take
is
to
compel the public themselves to be your bankers.
One or two homely
illustrations
may
explain what I
In several accounts that our Trust
mean.
Company has
recently filed in our Orphans' Court as guardian of minor
amount
sufficient
of interest
we
reinvested that as a
new
principal.
So that the Orphans' Court of our county and
our Judge in the adjudication of those accounts has commended the work of our company. (Applause.) Now, we
see that those opinions are printed throughout the county,
and the judge of our Orphans' Court is our best advertiser, because he has said that our Trust Company is doing
the very best for the ward under our care.
No one ever heard of an account being filed by an individual in which compound interest was allowed to the ward.
The Trust Companies do that work and we want to let the
public
know
it.
Another illustration A short time ago our company
was appointed the executor of a man who was conducting
:
a mercantile business for a long time in our
who was extremely honest but very
city,
a
man
careless in collecting
and there came into the hands of the executors
and notes, many of which were outlawed, according to the statute. One of the wealthy men of our
town was appointed as the appraiser of that estate, and,
after going over the list of claims and notes very carefully,
he presented to the court the list of the claims that were
supposed to be good, certain sums. He came in and said
to me, "I have often heard of Trust Companies, and I want
to see whether they can settle an estate as well as an individual; I have put down here what ought to be collected,
what I consider good, and I want to see whether you will
fall below that.
If you do I do not think you are doing
your full duty, and I will believe you cannot do as well as
an individual. If you collect more than that I will have
his bills,
many
bills
great faith in Trust Companies."
I am very anxious when that good man cashes in his
checks that he will also make the Norristown Trust Com-
pany
and he has put us on our mettle to do our
have already passed the mark as to what he considered were good claims. Therefore I say the best way we
can give publicity to the fact that fiduciary relations can be
We
better conducted by Trust
Companies than individuals is to
prove in individual cases that the Trust Company can do
better than the individual, that it does better than the individual, that it is a saving in money over the individual
trusteeship, and that in all ways we can do better work and
more cheaply and to the better advantage of the estate,
and then
public
let
know
us see that
we are not too modest
of such individual cases.
to let the
(Applause.)
:
As there seems
this
topic, the
to
next
is
INSTITUTIONS
AND PRACTICES WITHIN THE TRUST
COMPANIES IN THE INTERESTS OF EMPLOYES.
I will
ask Mr. Tillotson, of the Cleveland Trust Company,
of Ohio, that he tell us something of interest on the subject.
Mr. Tillotson:
139
em-
provisions yet
have had several on back pay, men who
;
We
were retired for illness (in one case for old age), and after
death we have continued half pay to their widows.
We
have a
monthly publication, a paper that
little
is
edited by 139 editors; in other words, every one of the em-
supposed to be one of the editors. The publication would be of no interest to any one except the employees
of the Union Trust Company, because, as you would readily
understand, it contains principally personal allusions. But
the real editors, our advertising manager and our assistployes
is
ant secretary, are endeavoring to elevate the tone of the
publication a little, and have asked various men among our
directors,
and outsiders, to write serious
articles in order
may
that the paper
be of actual benefit to the employes.
We have had one very interesting article from one of the
Directors who spent the summer in Europe, who gave us
an
on the Branch Bank system, as he had seen
article
it
over there.
We
have dinners once a month, where the President and
other officers meet with them, and
we
discuss informally
the progress of the company and put the different departments on a competitive basis. We also offer prizes based
on increase of business, percentage of increase of business.
This year our prizes will aggregate about $3,500, and it is
quite possible for some of the employees to win about
$500 in prizes.
There are other companies represented here that have
done so much more for their employes that I feel somewhat embarrassed to be called on for this discussion. But
we have found by experience that this prize money and all
we do for our employes is money well expended. It creates
a loyalty and enthusiasm, and to emphasize this I will tell
you that for three periods of six months past one of the
prize winners has been a porter in our employ, earning $60
a month, and has won prizes for bringing in new business.
Of course his acquaintances are among workingmen, but in
his enthusiasm he has been able to win one of the prizes
for three periods of six months each.
We have had another
fellow, an employe who gets higher wages, who has confined his work almost exclusively among the Germans (he
speaks German
and the interest, the ratio of profit figured
out at one and a quarter per cent., of the accounts that
man has brought in in the last two years has more than
paid his salary and the prize money.
)
So you
see
than a great
all,
it
,
it
is
actually
many forms
money
them an opportunity to participate
you please, and to show them that their
gives
profits, if
well invested, better
of advertising, and, better than
are appreciated;
it
in
the
efforts
has also called to the attention of the
men who have merit in them, men who
ought to be promoted, and who may bo officers some day.
And it looks to me that they are going to make, a good
many of them, better officers than some we have now.
Board
I
of Directors
all of you can be of great help to your comyou adopt some plan that will make your em-
think
panies
if
much a part of the company as the officers themselves. You will be surprised to
find how some of the most lowly employes, so to speak,
can bring you a great deal of business if they are properly
ployes feel that they are just as
encouraged.
(
Applause.
Mr. Edmund D. Fisher, Flatbush Trust Company, of
Brooklyn:
Mr. President, there is a very simple device
which I found to be of great value, which I want to refer to
under the head of "Practices Within the Trust Companies in
the Interests of Employes." We have a small company,
but it is growing rapidly, and there have been recently
TRUST COMPANY LOANS AND INVESTMENTS.
The President (after a pause)
be no one who desires to speak on
have on our pay-roll
men and women we have made no
for pensions.
his executor,
best.
topic
ployes,
we have demonstrated
that not only did the wards
receive interest on their money, but every time there was
children
We
yet along this line.
Our company has not done very much
number of young clerks put on, with the result that
found a short time ago a greater number of errors than
was desirable, and I instituted a little schedule, which I
put in charge of what I called the officer of the day (the
company being small, a chief cierk was hardly practical,
but the officer of the day, one of our five most experienced
men, followed the next day by the second, and so on to the
fifth, making one man, practically, a week, responsible, and
not burdening him too much
and this man would take this
quite a
I
) ,
—
—
)
139
TRUST COMPANY SECTION.
have jotted it down in memorandum form, because I thought it might be of benefit in the managing deFor
partment of small banks or Trust Companies.
time
instance we open at eight o'clock. We do not want a
arrangement exactly, as the manufacturing establishment
schedule.
I
has, as the clerks
would probably resent
So the
it.
first
item, clerks arriving after 8 o'clock a. m.; clerks absent,
and the reason; the reading of the time of striking, and, of
course, the signature of the officer reading the time. Time
The number of differthat the exchanges were received.
ences or errors,
and the clerks making the same.
the way, a prize
to the clerk that
is
offered to be given the first of
And, by
January
the fewest errors, and the clerk
that made the greatest progress in errors; in other words,
the clerk that now makes the most errors will probably win
that prize the next time. Then the time of striking, the
made
time of the operation and the differences, if any.
In the bookkeeping department, the schedule of the
number of ledgers and the difference, if any; the number
of passbooks received during the day, the
number
of pass-
books balanced, the number of passbooks held over one day.
Our theory is that a passbook should not remain longer
When I
than the following day after it is received.
schedule
hand.
My
on
were
started this, sixty passbooks
over
reason
some
yesterday showed one passbook held for
one day. The final reading and the time of the clerks, and
the signature of the clerk or officer reading it. The comparison of the reading in the morning and the reading in
the afternoon by the officer of the day, thus catching any
error, making three men really involved in the reading of
the time clerk. The vault closed, ana the time, and the
reply from Police Headquarters.
signs it with his signature and it
The
is
officer
of the
presented to
me
day
the
have an automatic and very simple
next morning. So I
of taking the entire work of the institution.
way
A
similar schedapplicable to ourselves.
be,
ule, amplified or reduced, as might be necessary, would
chief
I think, very useful to all, except where there is a
week
the
in
day
every
this
of
charge
in
clerk actually
Of course,
it is
although I really believe that an officer of the day, a man
changing from day to day, having only one day a week of it,
charge of it
is a better man than to have a chief clerk in
all
the result of this? The day before
instituted there were fourteen errors in exchanges
the time.
What
was
and in checks and
this
is
credits, aggregating probably
a thousand
items altogether. The day following they struck the first
time; of course each clerk took care; he went over his adDuring
ditions before submitting it for the final proof.
the last six weeks I do not think it has exceeded three
tellers and the credit men prove
the bookkeeping department,
course
the first time; but of
with a thousand items a day, involves a good deal of work,
and, as I say, frequently young boys are on the blotters
errors,
and as a rule the
and there is a big chance for error.
Further than that, we get the clerks to come once a
month to the financial library that is primarily supposed
there,
to be for the benefit of the outsiders, for our customers to
come and look over financial literature, but really the chief
have the leading bankbenefit derived is by the clerks.
We
ing magazines there, and we recommend to them special
articles that we think will be of interest and value to them.
They come once a month, as I say, and talk over these
various matters, with the result that it tends to a greater
our force.
another plan I have in mind for our next
was suggested by a little schedule, I think
which
meeting,
It suggested a
in the September number of "Success."
would call a
you
what
card on which was to be written
man's personality, taking a man's character and analyzing
efficiency of
There
it.
I
is
propose to use that in
ness, pleasantness,
late the clerk to
if
you
my
will,
improve his
—
next lecture personal neatthings that will stimu-
many
efficiency
and
his personality.
This simple schedule, I think you will recognize, will be of
some value if put into effect.
The day following this we saved one hour and a half
in the time of proving, and consequently in the time of the
(Applause.)
clerk in his active service in the bank.
is
program
The President: The next and last item on our
Section.
the
of
work
suggestions of members as to the
As nobody seems to be
The President (after a pause)
:
line, I
prepared or ready to give suggestions along this
but
new,
not
is
which
would like to speak of an experience,
Trust
that
thing
which after all seems to be the important
Mr.
Companies have to deal with. As we have seen from
the
of
Companies
Perine's figures, the assets of the Trust
thousand
United States are almost $4,000,000,000—four
is a vast
it
but
say,
to
easy
million dollars. Now, that is
has
Companies
Trust
sum of money, and the growth of the
years
few
a
began
been such that while this Section, which
and with very
ago, as I remember, in a very small room,
proportions,
few persons present, has grown to its present
the future
in
continues
Companies
if the growth of Trust
it will
past
the
in
been
at anything like the ratio it has
outwill
figures
not be many years before the aggregate
The National Banks are,
strip those of the National Banks.
Government and
as we all know, controlled by the Federal
system and a rigid and exacting system of
have a uniform
Trust Companies in some of the States
and I am happy to say in the State in whicn I live—have
We are there accountable to
equally as good a system.
and examined by the officials of the Auditor of Public Acand
counts, and I believe our examinations are as thorough
Governas rigid and the exactions as great as those of the
examinations.
ment. We are also required by the rules of our clearing
house to carry a very adequate reserve. But there are many
have no
States, as I understand it, where Trust Companies
pubthe
accountability, or practically no accountability, to
lic
in the
way
of examinations
and reports.
Now, we are
character and
all interested in the reputation and good
to one
mishap
a
and
fraternity,
the high standing of our
genyou
that
think
means perhaps disaster to many, and I
counthe
tlemen here, gathered from the different parts of
can do your business and the business of Trust Companies no greater service than to work with your legislature
for the enactment of such laws as will safeguard your companies to the greatest possible degree. I want to impress
that upon you, and I think a model law has been sugtry,
gested at some previous meeting of this Association and
( Applause.
Section.
Mr. Wade: We have within our company an organization which I regard as being most valuable to promote the
institution and to protect the integrity of every man or
woman employed in that organization, and at the same
time benefit the employes. It is a corporation organized
under the laws oi the State of Missouri, known as the
Employes' Association of the Mercantile Trust Company.
The employes are invited to join after they have been
with the company three months. The invitation is extended
There is nothing whatever comto them as a privilege.
are told that it matters not the
they
and
pulsory about it,
whether they go into that organization or not.
They are asked to contribute if they join, and they must
contribute if they join, five per cent, of their salary, no
more and no less, no matter what the salary may be. The
elective officers, the executive officers, cannot be members
of the organization, and if an employe be elevated from
what we call employes to executive officer he must sell
his stock in that organization and cease to benefit by its
slightest
This organization has its Board of Directors,
consisting mainly of employes. They have absolute control over their own funds, except they cannot buy anything
in the way of investment without the written approval of
the company. That is put there for the purpose of eliminating speculation, and the officer is prohibited from participating in the employes' association because his pur-
operation.
supposed to encourage the organization in every
way possible. Whenever we are fortunate in making a
substantial sum of money at the end of three or four or five
pose
is
or six months, as the case
our establishment will
may
be, the executive officer of
recommend a donation to the Emwe receive an underwriting of two
ployes' Association. If
or three million bonds below the market, for instance, as
in the case of Japanese bonds, we will set aside $15,000 or
$20,000 of that underwriting for the Employes' Associa-
BANKERS' CONVENTION.
140
They invest
tion.
their
money
in
it.
The result has been
considerable time before the meetings.
I
dare say that
the stock of the corporation.
few of us would desire to get up and discuss any of these
important subjects without having given some thought to
them beforehand. Although I am a member of the Executive Committee, I did not happen to receive my copy of the
program until en route to the Convention, in Chicago, and
naturally I am not prepared to give any light on any of
woman
these questions.
that out of the 175 employes we have in our establishment
there is not one man or woman who is not a member of the
Association, and I am happy to say that they have made
30 per cent, per annum for five years on their investments.
When they get a surplus for investment they invest it in
It makes every man and
company a check upon his
fellow employes, a check upon his officer, because if I, as an
in the employ of that
that organization, should do something irregular
I not only strike the pocketbook of the depositor and
stockholder, but I strike the pocketbook of that individual
officer of
employe.
Again, along the line that our President has so aptly
suggested, we go probably to extremes in the matter of
examinations of our Company. We claim the strength of
our organization is the confidence of our stockholders, and
the confidence of our directors and depositors. Therefore
we undergo a State examination twice a year. It is comWe undergo an expert accountant examination
pulsory.
once a year by certified public accountants. And then we
have, in addition to all of that, a flying auditor, a man who
has an order that he can go into any cage or any depart-
ment in any hour of the day or night, take possession and
make examination and report the result to the executive
Those are the things that will make
of the establishment.
a Trust Company. The Trust Companies are bound to supersede the national banking system of the United States
America if the gentleman belonging to this Section will
of
look after his Trust
Company
private fortune or his family.
as he would look after his
(Applause.)
The President: Gentlemen, the entire program has been
finished, and unless some member on the floor has some
merely offer that as a suggestion, so
some of us will be better prepared at the next meeting to
talk about these subjects that are suggested here.
(Applause. )
Mr. Ralph W. Cutler, president of the Hartford Trust
Company, Hartford, Conn.: Mr. President, I have been extremely interested in what Mr. Wade has said in regard
to the interior workings of his Trust Company.
I am not
chock full of wisdom and have not very much to say, but
I do want to say just this.
That it seems to me we all
want to engage the attention of our employes in the work
in which they are engaged, and that there are two ways
in which to do it. The first is to persuade the young man
to become a member of the American Institute of Bank
Clerks, which it seems to me is a very valuable organization, and in our case every single employe of the Hartford
Trust Company is a member of that institution. And the
other thing is to give the young man a capital interest in
the stock of the concern itself. We encourage our young
men to buy one or two or five shares of the stock of our
corporation, and it works wonders, I assure you.
We do
not carry out so elaborate a system as Mr. Wade has explained, but the executive officers of the institution can
sleep nights more securely because those young men are
our stockholders. (Applause.)
NOMINATIONS AND ELECTIONS.
topic or anything pertaining to the business of the Section
we
nomination and election
I would be very glad if any gentlemen present
of officers.
have anything to present to the meeting to hear them.
to suggest,
will proceed to the
Air. Tillotson:
me
May
I
say another word?
It occurs to
that one of the weaknesses of this Section
willingness of the
members
to speak.
You can
course, in about half a minute, that I
am
men
all
to talking in public, but there are
is
the un-
all see, of
not accustomed
around me that
could discuss these subjects with the greatest advantage to
One man here
all of us.
I see is
president of two national
banks and president of a Trust Company. Is there anybody better able to discuss the questions before us? There
are gentlemen here from Cincinnati and Chicago who could
discuss the value of a bond department to a Trust Company.
I could not say anything, because we haven't got a bond
department in our company, but there are many here who
could say much of interest and value to us all.
The educational work could have been discussed by all
of you.
There are attorneys here who have given the
matter great consideration, not only from a legal standpoint, but from a Trust Company standpoint.
The trouble is we all get in here and most of us keep
quiet and don't say anything.
We don't get acquainted.
We all know Mr. Wade and we know Mr. Williams and
Mr. Gibson and the members of the Executive Council,
and we are very glad to have them and hope to have them
again, and will vote for them, but there are a lot more
members here who are brim full of wisdom and enthusiasm,
and we would all be benefited and delighted if they would
get up and say something. There is a man I see now from
Cleveland, a man right in front of me, a man who knows
more about the Trust Company business in a minute than
I do in a year, and he has not said a thing.
(Applause.)
Mr. Gibson, of Denver: Mr. President, I am very glad
Mr. Tillotson has made the remark that he has made. There
are only two of us present at this meeting to-day, I think,
who were present at the organization of the Section Mr.
IJolliday and myself. This Section was organized nine years
—
ago.
We
ilid
a great deal in the old days,
we read papers
and we think it is time now for some of us to
take bark scats and hear from some of the new members.
If I may be allowed to make this suggestion, it seems to
me it would be well to have our programs given out some
and so
on,
I
Upon motion a nominating committee
of five
was ap-
pointed by the President, as follows:
John Skelton Williams,
Tillotson, Cleveland, Ohio;
of
Richmond, Virginia; E. G.
L. E. Anderson, of St. Louis;
New
York; F. B. Gibson, of Denver.
would suggest that while this committee is out the members, the delegates from the various
States which are eligible to have a Vice-President, should
have a little caucus. We will therefore take a little informal recess for a few moments, in order to enable them
A. G. Hemphill, of
The President:
to
I
make nominations
for Vice-Presidents.
In order that you may know what States are eligible,
I will state the by-laws provide that every State which
has ten Trust Companies, members of this Section, is eligible to have a Vice-President.
They are as follows: Alabama, Arkansas, California, Connecticut, Illinois, Indiana,
Kentucky, Maine, Maryland, Massachusetts, Missouri, New
Jersey, New York, North Carolina, Ohio, Pennsylvania,
Rhode Island, Tennessee, Vermont, Virginia and West Vir-
ginia.
I believe
the custom
is in
the case of the President and
made from the floor.
have some gentleman who was present last
Vice-President, for nominations to be
I
would
like to
year enlighten
A
me
if I
am
not correct.
That is correct.
(Thereupon an informal recess was taken
Voice:
for five min-
utes.)
The Nominating Committee made
lows
their report as fol-
:
The committee has unanimously agreed upon the
followdesire to present to your consideration
for election to office for the ensuing year:
For President of the Section, Mr. Clark Williams, of
ing names, which
New York
City.
we
(Applause.)
For Vice-President, Mr. Festus
J. Wade, president of
the Mercantile Trust Company, of Stt Louis.
(Applause.)
For the five members of the Executive Committee, the
following names:
W. L. McDonald, vice-president of the
Commonwealth Trust Company, of St. Louis; H. P. Mcintosh, of the Guardian Savings and Trust Company, Cleveland, Ohio; Joseph E. Otis, president of the Western Trust
and Savings Bank, Chicago; Mr. Lynn H. Dinkins, of the
Interstate Trust and Banking Company, New Orleans, and
Mr. J. F. Thompson, vice-president of the Bankers' Trust
Company of New York City.
Upon motion
the
Secretary
was directed to cast the
named.
ballot of the Section for the officers
141
TRUST COMPANY SECTION.
ballot of the Section
The Secretary accordingly cast the
for the gentlemen named.
The President: I will appoint Mr. Jay, of Boston, and
Mr. Gibson as a committee to find Mr. Williams and bring
him to the rostrum. I will appoint as a committee Mr.
Hart and Mr. Cohen to find Mr. Wade and bring him for-
our cause by coming under uniform laws and getting our
1 thank you most cordially, gentlemen,
house in order.
and on my own behalf I want to thank the bankers and
citizens of Washington for the hospitality which they have
so generously extended to us and which we are enjoying to
the
full.
(Applause.)
with peculiar pleasure that I transfer from my breast to yours this badge, as President of the
Trust Company Section. You, sir, have done more than
Mr. Williams,
ward.
The President:
President are
now
Nominations for the
office
The following gentlemen were nominated
dents from their several States:
—
California —
Alabama A. C. Danner, president
Company, of Mobile, Alabama.
J.
of
Vice-
in order.
C.
Drake,
for Vice-Presi-
of the Central Trust
president of
the
Los Angeles
Trust Company.
—
Connecticuti Ralph W. Cutler, president of the Hartford
Trust Company of Connecticut.
Illinois
H. O. Edmonds, assistant secretary of the
Northern Trust Company, of Chicago.
Indiana John H. Holliday, president of the Union Trust
—
—
Company,
of Indianapolis.
—
Massachusetts N. W. Jordan, president of the American
Loan and Trust Company.
New Jersey Alexander C. Wood, president of the Camden Safe Deposit and Trust Company, of Camden, New
—
it is
any other member of this Association, more effective work
than any other member I know, and you richly deserve this
honor, and 1 know you will fill the place with credit to
(Applause.)
yourself and gratification to all.
gavel as President)
the
Mr. Williams (upon taking
There is nothing which I can say which will adequately
express my deep appreciation of the honor you confer upon
me. I feel that only an expression of this kind is necessary at the present time. You must look to me for such
good works as I am able to contribute during the coming
year for the benefit of the Trust Company Section as your
Before we adjourn, however, I would
presiding officer.
:
suggest a motion be formally made by the floor telling of
the sentiments which have been so well expressed by Mr.
Company
of
Jersey.
Potter, thanking the generous Trust
D. Fahnestock, vice-president of the
Franklin Trust Company, of Brooklyn.
North Carolina George Stephens, president of the Southern States Trust Company, of Charlotte, North Carolina.
Ohio E. G. Tillotson, vice-president and manager of the
Cleveland Trust Company, of Cleveland, Ohio.
Pennsylvania—David McKinney Lloyd, president of the
Safe Deposit and Trust Company, of Pittsburgh.
Vermont H. L. Ward, treasurer of the Burlington Trust
Company, Burlington, Vermont.
West Virginia F. M. Staunton, vice-president of the
Kanawha Banking and Trust Company, of Charleston, West
the City of Washington for the entertainment they have
provided for us.
Mr. Fahnestock: Mr. President, I take great pleasure
New York—Gates
—
—
—
—
Virginia.
On
motion,
the
Secretary was
directed
to
cast
the
ballot of the Association for the Vice-Presidents so nomi-
nated.
The Secretary cast the ballot accordingly, and the gentlemen named were announced elected.
The President:
I want to thank this Section of the
American Bankers' Association for having honored me by
election to the office of President.
I was not present at
the meeting in New York last year in which I was elected.
I am informed that this was the largest meeting that the
Section has ever held.
As
I
This, I think,
is
the next largest.
have said very early in the meeting,
portance of the Trust
Company men
I
think the im-
of this country get-
in
moving that the thanks
Company
the Trust
officials
of this Section be extended to
officials
of Washington,
who have
so
handsomely and generously entertained us while here.
The motion was numerously seconded, and the question
being taken, was unanimously agreed
to.
May I ask the Vice-President just
The President:
elected to come to the platform.
Mr. Wade came forward.
The President: It gives to me the greatest pleasure to
present to you the emblem which represents the confidence
which this Section has in your ability to carry on its afI take great pleasure in pinning on you the emblem
of First Vice-President of the Trust Company Section.
fairs.
(Applause.)
Mr. Wade: Mr. President and gentlemen, this is indeed
a delightful honor, particularly because you have a President who will do all the work, and 1 expect to draw all the
honors and the salary for the balance of the year. I thank
you
do
for this evidence of good will
and confidence, and
I will
can in my power to aid the Trust Company Secand the Trust Company business in the United States
all I
tion
ting together, becoming a homogeneous body and working
of America.
under uniform laws and uniform customs and practices is
most important, and I predict that the day is not far distant when the Trust Companies of this country will, many
of them, if not all, be under the supervision of the Federal
Government. I think it is as inevitable as that the sun
And before that time we axn do much f >t
rises and sets.
The President: Before adjourning, I would state that
the Executive Committee has the power to fill vacancies in
the offices of Vice-President from States entitled to them
where they have not been filled by nomination from the
(Applause.)
floor.
Thereupon, at
ORGANIZED IN
1
:25 p.
r.i.,
the Section adjourned.
1878.
The Security Bank of Minnesota
Capital,
#>
600,000
Surplus,
Deposits,
10,400,000
Increase in Deposits During Past Year,
NEW
1,000,000
•
BUSINESS DESIRED.
$1,500,000
Savings
Bank Section
American Bankers' Association
Fourth Annual Meeting, Held in Washington,
D.C, October
JO,
\
905
INDEX TO SAVINGS BANK PROCEEDINGS.
Proposed Bank Legislation in Ohio
Accounts in Two Names
Detailed Proceedings
Address
of
Welcome
Pages 142
Pages 145
Pages J 48
to 144
to
J47
to 162
Page 148
Proposed
By N. Henchman
Bank
Address by Chairman
Report of Executive Committee
Report of Secretary
Remarks of W. B. Ridgely -
Legislation
Davis, President Central Trust
&
in
Page 148
Page 152
Page 152
Page 150
Ohio.
Safe Deposit Company, Cincinnati.
Mr. Chairman and Gentlemen:
direction of the subcommittee of the Joint Committees
of the laws of Ohio in relation
which has led to the present
institutions,
financial
to
movement in favor of an entire revision and codification
of the laws relating to all classes of banks, and to the
of the Ohio Bankers'
cieties for Savings,
of the committees of the Ohio Bankers' Association,
the Ohio State Board of Commerce and other leading
consrvative representatives of the various banking interests of the State, including Commercial Banks, both pri-
ciations.
Savings Banks, Safe Deposit Cometc., can be very briefly stated.
this bill
The general condition
work
vate and corporate
;
panies, Trust Companies,
You
will not be interested in the details of the pres-
ent situation and therefore it will suffice to state that the
laws of Ohio relating to these institutions are in a decidedly unsatisfactory and rather uncertain condition,
which has arisen from the fact that no uniform system
of laws for the creation, limitation, regulation and government of these institutions has ever, except within the
past two or three years, been carefully considered or
formulated.
The many
statutes governing these finan-
have been enacted from time to time
through a period of many years as occasion and special
needs have arisen or the exigencies of business or the
desires of groups of individuals have made additional
powers or changes in the laws seem desirable. In fact,
various laws, sometimes inconsistent and usually lacking
in completeness, are now scattered through the volumes
of the Revised Statutes of Ohio, often in the appendix,
and these laws have never been brought together and
separately arranged and indexed until the publication
this month of the pamphlet entitled " The Laws Relating to Banks, Banking, Savings and Loan Associations,
Savings Banks and Safe Deposit Trust Companies, in
Force July 1, 1905," which has just been arranged and
compiled under the direction of the Ohio State Board of
Commerce and the Ohio Bankers' Association, by Drausin
cial
institutions
Wulsin, Esq., of Cincinnati, counsel to the committee.
The confusion mentioned above has been intensified
by some recent decisions of the Supreme Court of Ohio
holding that some of the laws heretofore enacted are invalid as being " special legislation " that is confined to
cities and towns of certain grades and classes and not
general in application.
The present laws do not provide for any State examination for any of these institutions nor for any practical
regulation by the State.
The bill which has just been prepared under the
Board of Commerce
is
Association and the Ohio State
entitled "
A
Bill to
Regulate Com-
Banks,
Savings Banks, Savings Societies, SoSavings Loan Associations, Safe Deposit Companies, Trust Companies and Savings and Trust
Companies," practically all financial institutions in the
State receiving money on deposit except Building Assomercial
You
will be interested only in the salient features of
and the changes
in
existing laws
and not in
pow-
details regarding the steps of organization, usual
ers, etc.
The
provides for a State Superintendent of Banks,
to be appointed by the Governor, who is charged with the
execution of the law in relation to all those institutions
and is provided with suitable assistants. It is provided
bill
that these institutions shall not
make
less
than
five re-
ports of their condition under oath each year to the Superintendent, at such times as the Superintendent shall
which reports shall also be published in a newspaper, and that the Superintendent, his assistant or an
examiner appointed for that purpose shall thoroughly
require,
examine at
least once each year every such institution
now doing
business in the State or that may hereafter
be organized under this law. The Superintendent and
his assistant are put under bond and are bound by oath
under severe penalties to keep secret all facts and information obtained in the course of such examination, except in so far as the public duty of such officers requires
report upon the same or official action taken in regard
thereto.
In addition to the examination by the Superintendent of Banks it is provided that a thorough examination shall be
made
of each institution each year by
a committee of three of its directors or stockholders, who
shall be appointed annually by the Board of Directors,
and
shall report the result of their examination to the
board.
The provision requiring
Banks
to the Superintendent of
five
will
reports each year
have the
effect of
keeping these institutions well in line under the law, and
it is also expected that the Superintendent will call for
these reports at the same time reports are called for
from the National Banks. If this is done the actual
condition of finances in the State will be
more accurately
shown.
Although members of the committee having in charge
new law were in favor of somewhat
the drafting of this
"
;
;
SAVINGS
moie radical and conservative clause
—for
BANK SECTION.
example, in
143
deposits, provided a resolution authorizing the
same be
powers and combinations of some of the
adopted by a vote of two-thirds of the Board of Directors, such loans not to exceed GO per cent, of the actual
classes of banks created, the restriction of the use of the
words " Bank," " Bankers," " Savings Banks," " Trust
value of such real estate, including improvements, which
must be insured. The provisions governing loans are
minimum
relation to the
institutions, the
Company,"
it
etc.
limitation of capital of certain
—than now appear in the draft of the
was thought advisable
bill,
to allow rather liberal provisions
because of the many small banks, Trust Companies and
Savings Banks already organized throughout the State
and the necessary limitations to the advantageous use
of their funds caused by their location in small towns;
also because of the number of excellent and long established private banks.
The draft of the bill provides that " every corporation or association " receiving money on deposit shall
be subject to the examination and regulation provided for
in the bill, but does not otherwise affect existing institutions.
Firms and individuals are not specifically mentioned.
It provides, however, that all existing institutions may under certain simple proceedings come under
the operation and obtain the advantages offered by the
new law. And it is believed that the confusion existing
in the old laws and the many advantages offered by the
proposed new laws, including the higher standing
credit
and stability, will
induce
every
banking
institution,
private
and corporate, to
voluntarily
come
under
its
provisions
as
soon
as
some
prejudices are overcome and the
advantages are
thoroughly understood and appreciated.
It is also
believed that the measure will be decidedly " popular
in the community at large, not only because of the confusion that has heretofore existed, but also because of
the recent serious troubles and failures of banks in
various parts of the State brought about through laxity
of methods, and especially because of the entire absence
of any State examination or regulation. The proposed
new law requires all companies (banks, etc.) incorporated
thereunder to use the word " Incorporated " on all letterheads, drafts, certificates of deposits and passbooks.
The proposed new law permits the organization of
Commercial Banks having a capital of not less than
$25,000, of Savings Banks having a capital of not less
than $50,000, of Safe Deposit Companies having a
capital of not less than $25,000 and of Trust Companies having a capital of not less than $100,000.
It
also permits under certain conditions the combination of any or all of these institutions, provided
the capital of a combined Commercial Bank and
Safe Deposit Company shall not be less than $25,000, of
a combined Commercial Bank and Savings Bank not less
than $50,000, of a combined Savings Bank, Commercial
Bank and Safe Deposit Company not less than $50,000
of a combined Trust Company and Safe Deposit Company
not less than $100,000 of a combined Trust Company and
Savings Bank not less than $150,000 and of a combined
Trust Company, Savings Bank, Commercial Bank and
Safe Deposit Company not less than $150,000. Trust
Companies are also required to deposit $100,000 with
the Treasurer of State.
;
The
further provides, however, that in case of
any of these combinations the funds and accounts of
each Department that is, Commercial, Savings, Trust,
etc.
shall be kept separate and apart from the funds
of any other department of the combination.
Provision is also made for the creation of a surplus
of not less than 20 per cent, of the capital in all cases.
—
bill
—
Before any of these institutions can commence business the entire capital stock of the corporations has to
be subscribed and at least 50 per cent, thereof paid in,
and the remainder of the capital stock must be paid in
monthly installments of at least 10 per cent each. The
approval and authorization of the Superintendent of
Banks have also to be obtained.
Loans can be made under certain conditions up to
20 per cent, of the paid in capital and surplus to one
individual or company, and loans upon real estate can
be made up to 60 per cent, of capital stock, surplus and
in
somewhat similar regarding
all classes of financial insti-
but the necessary brevity
of this paper will not permit of entering into these details.
Clauses provide at length for the investment of
the funds of these various institutions, and Savings
Banks and Trust Companies are permitted to make certain loans and investments when the same are authorized
by an affirmative vote of not less than two-thirds of the
entire Board of Directors.
For example, Trust Companies in addition to the investments usually recited are
"
authorized to invest in certain other " stocks and bonds
when the same are authorized by an affirmative vote of
not less than two-thirds of the entire Board of Directors
of such company, " and the promissory notes of individuals, firms or corporations when secured by a pledge of
any of the aforesaid securities " also to invest in ground
rents, provided such investment is authorized by the
unanimous vote of the Board of Directors.
Savings
Banks and Trust Companies are not permitted to invest
more than 20 per cent, of the capital and surplus in one
security or loan, except in providing a suitable building.
Commercial Banks are given more general and extensive
powers relating to commercial paper, business and loans,
Savings Banks and Trust Companies are given the usual
powers, and the funds held by the latter in trust shall
not be liable for any general liability of the company, nor
shall such funds be mingled with the investments of the
capital stock or other moneys or property belonging to the
tutions mentioned in the
bill,
;
company.
The
provision of the National Banking Act prohibiting
overcertification of checks is incorporated in the bill.
All these institutions, except Trust Companies, are
permitted to
of their
make
Board of
loans to their officers and
members
Trust Companies are prohibited, both under existing laws and in the proposed
new law, from making loans to officers, directors or employes, and it is thought by members of the committee
that this prohibition should also extend to Savings
Banks.
In addition to the restriction upon loans and investDirectors.
.
ments, referred to in a general way above, each institution is required to have an Executive Committee, to consist of at least three members of its Board of
Directors
that that committee shall meet at least once each week
and
shall pass upon all loans and investments that minutes shall be kept of the meetings of such Executive Committee, including records of all loans and investments,
and be submitted to the Board of Directors for approval
;
at each meeting of the board.
The reserves to be maintained by each of these institutions or by any combination thereof, are
as follows;
" At least 20 per cent, of their
total demand deposits and
15 per cent, of the total of their time deposits. At least
5 per cent, of such demand and time deposits
shall be
kept on hand in cash in the vaults of such
banks; the
balance of such reserve, which may not be kept
on hand
in cash, shall be kept subject to
demand in National
Banks of the United States, or any banks, Savings
Banks,
Trust Companies, or other banking institutions
in States
where such institutions are subject to State
supervision
and to examination by a Superintendent of
Banks or
Bank Examiners provided for in such States."
This is a very brief summary of a draft of
a very long
bill, which has required an amount
of detail work and
an expenditure of time that cannot be realized
by any
one who has not actively engaged in a similar
task.
Al-
most all details have here been omitted, and
it is more
than possible that many matters of special
interest have
not been mentioned regarding which some
of you may
desire information. A copy of the bill is
here and it will
be a pleasure to answer any questions.
The committee having the drafting of this
bill
in
;
BANKERS' CONVENTION.
144
charge fully realize the magnitude and importance of
work undertaken and the imperfections that doubtless exist in the measure they have prepared, but it is
the sincere desire of every member of the committee to
have the State of Ohio enact laws governing all its finanthe
cial
institutions that will
place these
institutions
and
and the financial standing of the State
represented by them upon the very highest plane.
as
their credit
The committee
recognize, however, that
many
preju-
and though agreed that in
could be improved from a conserva-
dices have to be overcome,
some respects the
bill
tive point of view, believe that the
enactment of the
proved unanimously by the subcommittee of the OLio
Bankers' Association and the State Board of Commerce
and will be presented for approval at the meeting of the
Ohio Bankers' Association to be held on September 27.
When it has received the approval of the Ohio Bankers'
Association copies of the bill will be forwarded to every
member of the Ohio State Board of Commerce, which is
thoroughly representative of the business interests of
Ohio, having a very large membership extending into
every county in the State. So it is expected that when
the final draft of the
law would be a very long step in the right direction,
an improvement of almost incalculable value upon the
existing conditions, and will, by accustoming the financial institutions of the State to supervision, examination
and regulation, lead to further improvement in the law,
while a more stringent measure might encounter serious
into
presented to the Legislature
Nat'l
as
now prepared has been
of tbe Cits of
IRational Banfc
mew
IPorft
CAPITAL
SURPLUS
$3,000,000
$3,000,000
FREDERICK
B.
SCHENCK, President
WILLIAM H. TAYLOR,
V.
LOTT, Cashier
M. 0'3RIEN, Vice-President
JAMES
EMIL KLEIN,
Asst. Cashier
& Safe
Cincinnati.
ap-
£be Mercantile
MILES
Davis,
of Committee
President Ohio State Board of Commerce,
President Central Trust
bill
Henchman
Member
opposition.
The draft of the
bill is
law it will have received the approval
of not only the banking interests but also of practically
the entire business community.
for enactment into
bill
Vice-President
ALFRED W. DAY, Asst. Cashier
Deposit Company,
:
:
U5
SAVINGS BANK SECTION.
Accounts hi
Two Names
Report by the Committee Appointed for the Purpose.
Report of committee appointed in pursuance of the
following resolution adopted at the Convention of the
Savings Bank Section of the American Bankers' Association in New York, September 13, 1904
Chairman appoint a committee
Resolved, That the
of three
to consider the question of a form of uniform law regulating the
accounts of depositors opened in two names, and report at the
the term " survivor " should at death have property-conveying
force, the act could be changed to read " Upon the death of
one the moneys due upon such account shall belong and be
payable to the survivor."
The proposed legislation has been drafted in two separate
acts, regulating respectively accounts having nominees
and
joint accounts.
If thought desirable both might be incorporated in a single act.
They are submitted for consideration
of the committee.
next meeting.
Very truly yours,
The committee
will
preface
their
report
with
the
following communication from Mr. Thomas B. Paton,
honorary counsel to the Section, received in reply to a
request that, for their information, he should draw up a
tentative form of statute in regard to two-name accounts
New
York, April 6, 1905.
Mr. William Hanhaet, Secretary Committee on " Two-name
Accounts,
Savings
"
Bank
Section,
New
Sir
B.
Paton.
act to confer upon depositors in Savings Banks power to nominate
the person or persons to whom any sum due by the bank at the
death of the depositor
Be
it
shall belong
and be payable.
enacted, etc.:
1. Any depositor in a Savings Bank may by writing, executed as
provided in this act, delivered at or sent to the office of the bank,
nominate a person or persons to whom any moneys due by the bank
at his or her decease or any portion thereof, shall
belong and be payable; and may from time to time revoke or vary
such nomination by writing similarly executed and delivered.
2.
Such nomination shall be subscribed by the depositor in the
presence of a witness, who must be some person other than th"
nominee, but may be an officer or employe of the bank; and such
witness must also sign in that capacity and add his or her address
to such depositor
American Bankers' Association,
My Dear
Thomas
(Signed)
An
York, N. Y.
:
In pursuance of your request, following the action of the
Convention of the Savings Bank Section last September, that
I draw up a tentative form of statute to apply to the joint
and trust accounts and which could be adopted in all the States
"
of the Union, for submission to the Committee on " Two-name
Accounts, would say
I have given the subject due consideration and have prepared two forms of statutes, which I send you herewith.
The object of the proposed act conferring upon a depositor
the power to nominate another to whom the balance, or any
portion thereof, due by the bank at the time of his death, shall
belong and be payable, is to enable a depositor, while retaining
full ownership and control during his life, to prearrange a
disposition of the same when he dies.
It has the same effect
as if he made a will bequeathing the amount to the nominee
or nominees, and obviates the preliminary trouble and expense
of will making and the subsequent probate proceedings.
In
the case of a multitude of small depositors their savings
bank accounts are substantially their all, and by legalizing this
method of testamentary disposition it confers a real benefit
upon a numerous body of depositors who otherwise would not
take the precaution of making a will and who often, by attempting to make a testamentary disposition by some form of trust
or joint account, have their intention frustrated by some legal
ruling that what was plainly their own property, owned and
controlled by them during their life, cannot be disposed of at
their death in such manner.
Concerning the other act as to joint accounts, or accounts
which are put in two names and often made payable to either
or the survivor, it does not seem advisable that legislation
should attempt to regulate titles during lifetime of the parties
by providing that ownership vests in the two parties jointly.
Sometimes when these accounts are created both parties have
property rights therein more often one owns the account and
puts it in a joint form that the other, generally a relative in whom
he has confidence, may have the power also to withdraw during his lifetime should occasion arise, and shall take by survivorship in case he dies first. In such cases the original owner
practically retains control.
Legislation which would give the
other party property rights in the account, when none was
Intended during the lifetime of the original owner, would in
many cases frustrate the design of such accounts and be unjust.
The limit to which legislation may appropriately go, it
would seem, would be to provide for or regulate payment by
the bank of such accounts during the lifetime of the parties
and where they are made payable to the survivor protect the
bank in paying the latter.
The form of act submitted regulates payments of these
accounts during lifetime of the parties and further, where there
is a " survivor " provision, provides that upon the death of
one the money shall be payable to the survivor. This will protect the bank in making payment to a survivor as against representatives of a decedent who may claim he never parted with
ownership during life. It is doubtful whether legislation should
go further and ordain that the term " survivor " should carry
Doubtless it is the intention in
the property to the latter.
the large majority of savings accounts payable to A or B
or the survivor that, upon the death of one, the survivor shall
become sole owner but there are cases where such is not the
intent.
The act as submitted is tentative and designed to
bring up this question for full consideration. If thought best that
:
to the signature.
be the duty of the bank to which a nomination, as
to preserve the same and make such entries on
its books or records as are requisite to clearly evidence the fact of
such nomination.
And upon delivery to it of a revocation of suh
nomination, or of a new nomination in change or variance of a
former nomination, the bank shall preserve the same and make entries
It
3.
above,
delivered,
or records accordingly.
4.
Any such nomination, or any revocation thereof, shall take effect
from the time of its delivery to the bank.
The effect of an unrevoked nomination shall be that upon the death of the depositor making it the moneys due by the bank to such depositor, or such amount
thereof as
specified in the nomination, or
is
where the entire amount
due by the bank is less than the amount stated in the nomination, then
such entire amount shall immediately be and become the property of
the nominee or nominees therein specified, and payable by the bank
to such nominee or nominees upon satisfactory proof of death and
evidence of identification.
But money acquired by nomination shall
be subject, In the hands of the nominee, to the lawful claims of
creditors of the depositor, and to inheritance tax, where the same is
imposed by the law of the State.
5. A nomination is revoked by the following acts or events:
Delivery of revocations as above provided;
(1)
Delivery of a new nomination in change or variance of a
(2)
former nomination;
By the death of the nominee in the lifetime of the de(3)
positor, save when the nominee is the child or other Issue
of the depositor, and dies leaving issue, and any sucn
issue is living at the death of the depositor.
In such
case the nomination takes effect as if the death of the
nominee had taken place immediately after that of the
depositor, unless a contrary intention appears by the
nomination.
;
;
shall
is
The making
of a will by, or subsequent marriage of, a depositor
does not revoke a nomination; nor is a nomination revocable in any
other manner than as above prescribed.
The following are appropriate forms of nomination and of revocabut these forms are not exclusive of any other forms which substantially comply with the provisions of this act:
6.
tion,
FORM OF NOMINATION.
(Address of bank.)
hereby nominate
I
to receive at my decease the whole
any designated amount) of the amount then due me by (name of
bank) upon ueposit account No
(or any other sufficient de-
of
•
(or
scription of the account or accounts).
Dated
(Signature of depositor.)
In presence of
(Signature and address of witness.)
FORM OF REVOCATION OF NOMINATION.
(Address of bank.)
I hereby revoke the above nomination.
(Dated, signed and witnessed in same manner as above.)
FORM OF REVOCATION ON SEPARATE SHEET.
(Address of bank.)
I hereby revoke nomination executed by me on (insert date and description of nomination) which was delivered to (name of bank) on
(Dated, signed and witnessed in same manner as above.)
;
BANKERS' CONVENTION.
146
Where a nomination
7.
or country
or revocation is t^ecutet; in any other State
the witness must be an officer qualified to take the acknowl-
edgment or proof of a deed of real property situated in this State.
Wherever a depositor making a nomination cannot write, the wit8.
ness must sign the following certificate:
" I certify that the foregoing nomination has, before being made by
the depositor, been first audibly, clearly and distinctly read over to him
(or her) in my presence and hearing, when the depositor appeared perfectly to understand the same and made Ms (or her) mark thereto in
my
presence."
(Signature and address of witness.)
This act shall take effect
An act concerning the payment of joint accounts in Savings Banks.
Be it enacted:
When an account in a Savings Bank is opened in the names of two
persons jointly, or an existing account in a single name is changed to
the names of two persons jointly, without in terms being made payable
to either, such account shall be paid only upon the joint order of such
persons.
If to such account is added the words " or the survivor,"
upon the death of one, the moneys due upon such account shall be
payable to the survivor.
When an account is opened in a Savings Bank to the credit of two
persons, or to an existing account in a single name is added the name
of another person, and the account is, by its terms, made payable to
either or the survivor, the bank may, during the life of both persons,
pay either, and upon the death of one the moneys due upon such
account shall be payable to the survivor.
Banks are usually opened
Joint accounts in Savings
the convenience of customers
who
for
desire that during the
two depositors either one may draw the funds
on presentation of the pass book, and that at the death
of either the balance standing to the credit of the account
shall be paid to or be subject to the order of the survivor without the cost and formalities of probating a will,
lifetime of
or applying for letters of administration. The effect of
these accounts is that the survivor takes, and that in the
meantime either of the two parties may withdraw part or
The real ownership of the
the whole of the amouut.
money when first deposited,- or of any subsequent deposit, is never inquired about or questioned by the bank
the property
held in joint tenancy, the survivor taking.
is
Some Savings Banks accept these accounts without
ask-
and require no declaration or agreebeing understood with the depositors that the
pay either of them on presentation of the book.
ing any questions
ment,
bank
:
it
will
The majority
of Savings Banks, however, require the
depositors to sign
the account
is
some form of declaration
reciting that
held for both of them and authorizing the
bank to pay either of them or the survivor of them. This
declaration, when signed by both depositors on opening
the account, is called a simultaneous declaration. It varies considerably in form, but practically all have the
above matter embodied in them.
We have carefully considered the proposed statute
suggested by Mr. Paton as a means to effect the purpose
intended by these accounts.
At
first
glance
it
would appear
certainly
to be very
desirable to have such a law provide for a legal form to
be compiled with in opening an account in two names or
in adding a name to an existing account, and then having
that action on the part of the depositor or depositors
decisive and not capable of review by the courts, except
of course on the legal grounds upon which any legal instrument can be attacked. We must, however, consider
this question in all its bearings it is really twofold.
1. Is such general legislation practicable
and is it
capable of adoption in all the States?
2. Admitting such legislation to be feasible, would it
be really desirable and would it accomplish the desired
;
results?
Answering the
question, this committee enter-
first
tain strong doubts as to the practicability of obtaining
general legislation on the subject that could be passed and
enforced in
all
the States
;
for
any legislation to attempt
which of their nature
to regulate such property rights,
are very diverse and complicated, would, we believe, be
hardly possible, and we also fear that in many instances,
viewed by the courts according
existing in the different cases,
to the special conditions
and
this
would often
de-
feat their purpose.
In addition we would say that the conditions are so
different in the several States, both with regard to existing laws and to the character of the institutions, that in
our judgment no satisfactory statute of this character
would have any prospect of passage; aside from that, a
very large expense would be involved for which the return, even if the efforts were successful, would be entirely disproportionate.
We have now to consider whether such legislation
would be desirable at all, and we have no hesitation in
answering this question in the negative for the following
reasons
must
be admitted that the actual property
Banks are
practically far beyond the knowledge of the banks. We
take it that a bank, willing as it is to accommodate its
depositors by opening joint accounts, must, as a paramount condition, consider its own safety, as well as protect its customers in making payments. If this safety and
protection can be secured, not by general legislation, which
will at all times be reviewable by the courts and give endless trouble both to the depositors and to the bank, but by
the adoption of some standard form or declaration to be
signed by the depositors when opening the account or by
the original depositor when adding a name to his account,
the object will be realized in a greater measure and in
more satisfactory way. It appears to us to be possible
to devise such forms of declaration as would make the
matter plain to the depositors, secure the bank in paying
either or the survivor of them, and at the same time not
attempt the impossible task of regulating present and
ultimate property rights of which the bank really knows
nothing and desires to know nothing.
To show how difficult this matter is becoming we
would mention that an amended Inheritance or Transfer
Tax Law, lately passed by the New York Legislature,
compels the banks, under a penalty of $1000, to give the
State Controller ten days' notice of intention to pay or
transfer to the legal representatives of the decedent, or
to the survivor, any deposits standing in the joint names
of a decedent and one or more persons. This dangerous
statute disregards the fact that a Savings Bank in most
cases has no means of knowing whether one of the parties named in a joint account is dead or not, but, according to the law, the penalty could be enforced just the
same.
Under this law, although as a matter of fact in at
least 75 per cent of all cases arising there is no contention that any tax could really be assessed, the bank must
notify in each case or suffer the penalty. It is incumbent
upon the bank to know, whenever an attempt Is made to
withdraw a two-name account, whether both the persons
named are still living, which it can be readily seen would
be an absolute impossibility in any bank having a large
number of depositors scattered all over the country. If
this law is to be strictly enforced, and its repeal cannot
be secured, the ultimate result will be the abandonment of
two-name accounts in New York State Savings Banks.
These accounts were used in one form or another long
before there was any thought of a succession tax and
were intended to enable the account to continue and be
withdrawn without any formality in the event of the
death of one of the persons named in the account, and
as incident to this form of account, though not its only
intent, the cumbersome and expensive proceedings of adIt
first
rights involved in the joint accounts of Savings
ministration were avoided.
The committee believe that two-name accounts meet a
great need, particularly with depositors of limited means,
and should be encouraged whenever they are not made
such legislation would defeat the intent of these accounts
as they are now opened moreover, the judicial decisions
in the several States regarding these accounts are so very
tioned.
conflicting that even if a general statute could be devised
tee reports that they do not consider that general legisla-
;
and adopted
it
would, after
all,
in
many
Instances, be re-
impossible by adverse legislation such as above men-
After due consideration and deliberation this committion regulating joint accounts in Savings
Banks
is
either
SAVINGS BANK SECTION.
and believe tbat the ends deand effectually accomplished by
the adoption of suitable forms for all two-name accounts,
and suitable blanks to the used by Savings Banks. Owing
to the differences in the practice of Savings Banks in the
several States, and also the varying decisions of the
courts, the committee believes it unwise at the present
time to suggest any uniform form for use by all the Savpracticable or desirable,
sired can be
more
easily
147
pursuance of which they
were appointed, and therefore they have not considered
strict letter of the resolution in
the matter of trust accounts referred to in Mr. Paton's
communication, especially as their inclusion would tend
greatly to complicate a matter already sufficiently confused.
Respectfully submitted,
Benj. W. Johnson, Chairman;
J. II. Johnson,
W. W. Cloud,
Committee.
ings Banks.
In conclusion this committee beg to state that they
do not consider they have a right to go behind the
The National Bank of Commerce
MINNEAPOLIS, MINN.,
With
and
its
fully
Capital and Surplus of $1,300,000.00
equipped
in
every department to
give ourcustomers the most acceptable service,
SOLICITS
in the
YOUR
BUSINESS
Northwestern States.
:
Report of Proceedings*
Detailed
Fourth Annual Meeting
SAVINGS BANK SECTION, Held at Washington, Oct, 10,
MORNING SESSION.
Tuesday, October 10, 1905.
The Savings Bank Section of the American Bankers'
Association met in annual Convention in the Banquet
Hall of the Shoreham Hotel, Washington, D. C, Tuesday, October 10, 1905, and was called to order at 10.30
a.m. by the President, Charles E. Sprague, Esq., of New
York City.
Reverend
J. M. Schick, pastor of Grace Reformed
Church, Washington, D. C, offered the following prayer
Almighty and Everlasting God, by whose blessing all our doings
must be sanctified, and unless Thou build the house they labor in vain
that build it, we implore Thy presence and Thy benediction with us at
this time, so that in all our works, begun, continued and ended in
Thee, we may glorify Thy holy name. With a realizing sense of our
responsibility to Thee, enable us to enter upon the transactions of this
meeting knowing that every right work Is Thine and every right cause
is of Thine appointing.
We praise Thee for that Thou has used us so
largely concerning the gathering of these who otherwise would have
been unable so to do, in guiding the savings of the weaker and the
poorer, turning them to good account, using us thus in Thy service;
helps our fellow men is, when rightly underTherefore we lift our hearts unto Thee in grateful
recognition of the blessings Thou hast bestowed and the mercies Thou
hast showed and the favors Thou hast imparted to the institutions
which we represent, to the institutions here gathered together in this
And we humbly pray Thee further to continue Thy
Association.
blessing unto each and all, and to this Association collectively, so
that with an eye single to Thy glory, in full consciousness of the responsibility resting upon us, we may have continually the Divine
for every service that
stood,
Thy
service.
presence in
all
our work.
Shield us from the temptations to selfishness which are so abundant.
Deliver us from the evils that at times may be so near, and before
which so many have fallen; and make us conquerors over self and
selfishness
ciple of
and the world, and enable us, in that right altruistic prinwhich marks the deed of every right man, to use the
life
opportunities
those for
Thou
whom we
art
giving us in such a way as to be helpful to
whom we serve Thee to the end that,
act and with
strengthened with Thy might, made mere prosperous with Thy blessing,
we may ourselves, having been blessed, prove a blessing to others as
Thou hast blessed us. And unto Thy name shall be given the praise,
through Jesus Christ our
Txird.
Amen.
The President: An opportunity
will
now be given
to
you, gentlemen, to hear from Mr. B. F. Saul, Chairman
of the local Committee on Arrangements of the Savings
Bank Department of the Washington Bankers' Association.
(Applause.)
Address of Welcome, by B. F. Saul.
Mr. Saul On behalf of the Savings Bank Committee
:
Washington Bankers' Association I extend to you
The Savings Banks of Washingall a hearty welcome.
ton welcome you not only to this city but to their institutions, and hope that you will visit them during your
of the
1905
no Savings Bank Law or supervision in this District, but
we hope before another winter passes that Congress
will enact a law which will place the Savings Banks of
this city under the supervision of the Comptroller of the
Currency, as the Trust Companies have always been,
and we hope at this meeting to have your co-operation
by recommending to Congress such legislation. However,
we are proud of our young and growing institutions, and
I am sure if you find time to visit them you will be
pleased at the results we have attained, but, of course,
the most interesting bank in Washington to you will no
doubt be our National Treasury.
Washington is not a commercial city, and the points
of greatest interest will probably be the public buildings.
The members of this committee desire to place themselves at the disposal of the delegates and will be pleased
to render them any possible service during their stay in
this city.
And
in conclusion I again extend to
you a most cormeeting may prove the most
successful in the history of the Savings Bank Section.
dial
welcome and hope
this
Reply to Address of Welcome and Annual Address,
by Charles E. Sprague.
The President: The Savings Bank Section of the
American Bankers' Association accepts with cordial appreciation your efforts and your generous hospitality.
We
know that you have made
already
the most lavish prep-
arations for our entertainment.
We all of us have
emerged from the tenth story of the New Willard Hotel
staggering under a double weight of pasteboard and of
grateful obligations. We are to be your guests by land
and by sea, in peace and in war. Our patriotism will be
evoked by a visit to Mt. Vernon. We shall, perhaps, have
our envy excited by a trip through the United States
Treasury and by the sight of the vast amount of funds
therein which we cannot have under our control. You
have provided for us in every possible way. The wellknown hospitality of the sunny South, added to the metropolitan spirit which pervades the National Capital, has
caused you to more than outdo yourselves, and we only
hope that the prosperity of your institutions, to which you
have alluded may continue, and that we in our various
small ways, in the remote haunts of men from which we
hail, may be able to recompense you at some time by giving yon in our own peculiar way the kind of good time
which we are able to give you. We thank you.
(Applause.)
In the past the persons
It now becomes my very pleasant and most honorable
duty to open the proceedings of the fourth annual Convention of the Savings Bank Section of the American
Bankers' Association.
In future times we or our successors will look back to this as one of the early meetings, one of the beginnings of great things.
When in
future years this organization has fulfilled the promise
which its vigorous youth gives forth those who follow
after us will look back to this old society with grateful
spirits as having inaugurated a movement of great advantage and benefit to the country and to Its industrial
classes and to the general welfare.
On an occasion like
this it is customary to make a retrospect and a prospect, to
look over the work of the past and to consider what it is
best to undertake for the future.
In other words, we
Bank
inquire in the
stay here.
I
presume those delegates from the larger cities,
where the strongest Savings Banks are located, will be
surprised to find that the Savings Banks of Washington
are small institutions, but most of the large Savings
Banks of the country are old institutions, a great many
being more than fifty years old, while the oldest Savings
Bank in our city was organized in 1891, only fourteen
years ago.
Ten years ago the total assets of the Savings Banks
of Washington were less than $250,000. Five years ago
they had Increased to $1,000,000, and to-day the total
assets of the Savings Banks are more than $4,000,000.
who would ordinarily be Savings
had to place their savings
have
depositors
with the Trust Companies and the building associations.
Prom the above figures it can be readily seen that the
age of the banks is the principal reason they are not
among Washington's larger financial institutions.
But there is another reason, and that is that we have
which,
at?"
T
first place, in the classical phraseology
believe, is used in this section, " Where are we
Secondly,
we
inquire
what we are going
why
are
we
here; and, third-
do about it. Where we are at
is satisfactorily answered by the large number of attentive and interested listeners who are present.
Why we
ly,
to
'
SAVINGS BANK SECTION.
is a little more difficult of comprehension.
Why
thought necessary for those of the American Bank-
are here
is it
ers'
Association
who
are particularly interested in sav-
Why have they
taken the trouble to start at least 24 hours ahead of the
time which otherwise would have been necessary in order to attend this meeting as well as the proceedings of
the Association proper? It is not for protection of your
valuables against fraud or deceit. That is amply cared
for by the parent Association.
It is not to consider the
future of the currency of the country. It is not to consider the advantages of adopting systems of money orders or discussing State and National supervision of
State and National banks. Nearly all these subjects are
covered by the American Bankers' Association. Why do
we have a Savings Bank Section and why do we need it?
As bankers we do not, but I hold that we are something
different, something distinct, or at least distinguishable,
from bankers that those who are purely and simply
bankers have not honored us with their presence to any
great degree. We are something else. Although organized under a great diversity of laws and customs, organized in almost as many different ways as there are
States in the Union, and unorganized in some of the
States, we all have one common purpose, which is the
safe keeping of the economies of the industrial classes of
society, of those who, as will always probably be the case,
are obliged by the circumstances in which they live to sell
ings to create a separate department?
;
their services,
whether
it
be as a university professor or
who can contract for and pay
an appropriate stipend. The only safety for those classes
is to have some depository which they can absolutely
trust, and the only hope for their old age is in present
self-denial, which in future will soothe and alleviate the
as a day laborer, to some one
distress of their declining years.
I
take
it
that the purpose of banking proper is the
The business man does not ac-
facilitation of business.
cumulate his money by putting it into any kind of bank
and letting it increase. Very likely as his business itself increases his cash account may safely be lessened.
He desires to make his real investment in the machinery
of the business in which he is engaged. His cash account,
which is practically his bank account in these modern
times, is simply a facilitation, simply a buffer for the
purpose of smoothing over the interval between production and collection, and also the machinery for the purpose of collecting what is due him and for the purpose
of liquidating at the least possible expense what is owed
by him. But the acculator, the Savings Bank depositor,
has no such purpose to look forward to. His object is not
to do with as little cash balance as possible, but to increase that cash balance while it shall be in a form not
only realizable in cash upon proper procedure but shall
by its increase measure his prosperity. The point of view
therefore is quite different.
The banker employs the
money
of himself
and
his several fellow shareholders so
as to give the greatest returns. It is true he looks after
the welfare of his depositors, but his primary duty is to
his shareholders.
He is amenable to them. The depositor is a customer who may come and go, but the shareholder is not a creditor, properly speaking; he is a proprietor
and he
is entitled to the proper use of his money
as shall be profitable, and the attitude toward the depositor is secondary.
With us who are not so much bankers as savings
keepers the attitude is reversed. Our primary duty is to
those who cannot look out for themselves. 'We set our-
in such a
way
up in that capacity. We hold ourselves forth to the
world as being ready to safeguard the surplus which
economy and self-denial accumulates among those classes
selves
who are properly intended to confide in our care. We
therefore must hold and we must remember in our discussion here that we are something other than bankers.
It
is
Some
true that the bankers allow us in their ranks.
of us are bankers and savings keepers and some
of us are savings keepers and bankers.
Some of
us are solely keepers of savings and not in any
proper
149
sense bankers. It is true that the Bankers' Association
allow us to participate on equal terms and even allow
us to contribute the usual dues, just as if we were money
making institutions. This is kind on their part, but
they should recollect in fixing those dues that we are not
bankers, but are the bankers' most stupendous depositors.
Savings Banks taken collectively deposit more money in
the National and State Banks than probably any other
one class of institutions, unless it be the gigantic industrial corporations.
a great country for experimentation. Having
the great number of Commonwealths that we have, united
under one great Commonwealth, there is an opportunity
This
is
walk of
for testing methods in every
Savings Banks, as
I
life.
Now
said, there are a large
diverse methods of organization.
in the
number of
Other methods have
been tried in Europe and perhaps will be tried here.
of us, to speak in homely fashion, know it all.
of us can learn something from his neighbor, and
I myself do not admire the Pharisaic attitude that
would impel people in one State in our walk in life to say
of those of another State " They are not Savings Banks
at all put them aside they are not to be mentioned in
the same paragraph with ourselves we are the elect."
I do not believe in anything of the sort.
I believe that
we should come together, and if you can convince us
that your method, allowing for the difference in our environment and our situations, is superior to ours, we should
give you the floor and let you prove it to us. And you, on
the other hand, should allow us to prove to you if we can
that our methods are worthy of commendation and emula-
None
Each
:
;
;
;
tion.
Now there has been the Governmental Savings Bank,
an institution carried on by the Government or by the
municipality. I believe our advocates of municipal ownership have not yet reached that stage. Then there is the
semi-Governmental, or Postal, Savings Bank, carried on
by a Department which was organized for a totally different purpose and not for banking, which it does through
money
which I consider inappropriate for a Government Department. And although I am open to conviction, I consider the carrying on of a Savings Bank
by a Department of the Government to be equally inappropriate. Then there is a type of Savings Bank which is a
capitalized concern and which has stockholders. Doubtless in those localities where it has grown up that may
orders,
be the best.
We
point.
glad to
from
We are glad to be instructed as to that
are glad to know what the difficulties are,
know whether
there
altruistic principles
is
that temptation to deviate
which we heard referred
to
this morning,
whether there is not a temptation to set
the stockholder up as superior to the depositor instead
of second to him, as he should be.
We must consider
that.
We are open to conviction on all these points.
There are also those, generally the same kind, who not
only are capitalized as savings keepers, but alsc bankers
in the same building and over the same counter. Whether
there is practically any danger from temptation to vary
from altruism
is
another point that
we
will ultimately
discuss.
Then there are in the older parts of the Union the
old-fashioned, original so-called Mutual Savings Banks,
which have no shareholders.
The history of these SavBanks has been reasonably prosperous, I believe, and
we number very many of the oldest, soundest and most
ings
reputable institutions of that kind in our ranks. I am
sorry to hear sometimes of that spirit which I have ventured to call Pharisaical, which would endeavor to
separate institutions of this kind into a province of their
own and
will not
admit that anything can be learned
by them.
But we have not come yet
to the time for considering
these broader questions of organization. We have commenced in the right way.
have no. begun with
We
words of ten
but we have commenced with
the alphabet of the Savings Bank business. We have
commenced by endeavoring to ascertain the best methods
syllables,
BANKERS' CONVENTION.
150
as to the details of business and in those branches where
we come in contact with the depositors. We shall reserve for a future time consideration of those broad ques-
whether we shall be capitalized, whether we shall
be purely Savings Banks, whether we shall be mutual.
We will defer those questions. We do not propose to take
them all up at present. We have commenced with some
comparatively minor but really vital questions. During
tions of
the past year we have commenced the collection of a
complete and thoroughly classified set of forms by which
the business of a Savings Bank is conducted. The hard
and skillful work in making this collection has been
done by our efficient Secretary, Mr. Hanhart A set of
forms will give you almost a photographic view of the
methods and purposes and general trend of the business
of the Savings Bank. By examining the collection which
every one of us, I
is now on view at the Willard Hotel
think, will find something that he has not thought of
before, something which he can with advantage either
avoid or adopt. If we find anything worthy of adoption
If we find anything to
it will interest and help us.
avoid it is a simple matter to avoid it, and it may remind
us of some of the dangers of which we should beware. A large part of the work of this Section and this
has been devoted to the compilais a working Section
have, however, several other
these
forms.
We
of
tion
questions in reserve which will hereafter be presented.
One of these, rather a minor point, but one which seems
to have acquired a good deal of importance, is the question of the treatment of certain accounts wherein proprietorship would seem under various laws and conditions to be somewhat doubtful, the so-called two-name
accounts that on their face purport to be the property of
more than one person. This is an intensely practical
question.
We propose to begin with intensely practical
questions and from them gradually build up to the
broader questions, such as the methods of organization,
the question of supervision, how far and in what way
should the State or National Government intervene for
the public good how far should paternalism be extended
—
—
;
so as to interfere, or intervene, rather,
conduct of these corporations.
more or
less in the
Then we have been considering another question
which will also be a subject of discussion to-day, probably that is the formulation and possibly the adoption
;
of a plan by which statistics of the savings of the coun-
may
be more accurately ascertained than they ever
have been. It is well known that the published statistics of this kind are very unreliable and not based on act-
try
ual figures. This Section
by any means
United States, but it
tain
is
all
is
representative. It does not con-
of the
Savings Banks of the
so representative in its character,
from Maine to California,
it embraces institutions of almost every kind and class
which can be brought under this act, that a report
given out anonymously as to institutions, and solely by
aggregates as to States and sections, would be exceedingly representative. The question has been before our
Executive Committee as to whether we ought not to have
such statistics as those filed and circulated among our
its
members are
so scattered
only, in order that we may learn the trend
of things, in order that from the reasoning developed
from these figures we may improve on past history.
Those are among the subjects that are before us to-day.
We also are to listen to several gentlemen who will
own members
address us or read papers on various subjects.
Having said a very few words, and having minimized
the annual address of the President, to which I know
members on occasions of this kind always look forward
with fear and apprehension, I will pronounce the
Fourth Session of the Savings Bank Section of the American Bankers' Association open for business. (Applause.)
I will explain to the session that through the unfortunate circumstance of a Cabinet meeting being called
at this hour Honorable Leslie M. Shaw, Secretary of the
Treasury, will probably be unable to address you to-day,
as he had expected. But another eminent gentleman who
on our programme has arrived and we shall take great
pleasure in listening to him. I now introduce to you
Honorable W. B. Ridgely, Comptroller of the Currency
of the United States.
is
Address of Hon. W.
B. Ridgely.
Mr. Chairman, Ladies and Gentlemen
I was not
fortunate enough to be here at the beginning of your
President's remarks, to hear all that he said, but I was
greatly interested in what I did hear, and especially in
his conclusions in regard to Governmental regulation of
banks, and to the very apt distinction which he made
between interference and intervention. I do not believe
in interference with banks, but I do think it is to the
interest of the banks as well as to the interest of the
depositors and the general public, that there be some
:
Governmental intervention.
No one will question the desirability if not necessity
of laws regulating the organization and operation of
banks.
If we are to have such laws it is the most logical
consequence that the law should not only regulate their
methods of operation, but provide a system of examination and supervision to see that the creations of the law
observe its provisions during their life as well as at their
birth.
It will also be found necessary to follow them
after death and to provide for the administration of
banks which fail to go into liquidation. In fact, the administration of insolvent banks is a very important part
of any system of State regulation and one in which the
difference between good and bad or indifferent administration is very serious in its consequences.
number of
authorizing them to establish the business of banking, and makes certain conditions as to the paying in
of capital in cash and the other ordinary requirements of
If the State gives a charter to a certain
men
such an organization, it thereby assumes a responsibility
It has given
for the parentage of the new corporation.
it life and power and a certain standing and dignity by
reason of its State charter. It is only its plainly logical
duty to continue its cares and supervision throughout
the life of the institution, not only for the protection of
the bank itself, but the people who transact important
business with it, by virture of this law-given life and
This is no invasion of the rights of the incorporators or shareholders it is only what they should expect
power.
;
and a most reasonable concession for the privileges
which are granted to them by law. They have no natural right to incorporate. It is all given them by statute.
In return for the franchise given them they should willingly submit to any reasonable regulation and supervision which the law imposes to safeguard and protect the
public.
Probably a very large majority of the people who
organize banks and those who are given charge of their
management are acting in perfect honesty and good faith.
My experience and observation lead me to believe that
most banks are honestly managed, and most of these are
also conducted with
good judgment and
ability.
It
may
be and doubtless is true that such banks do not need any
The officers and directors of any
outside supervision.
bank can, if tuey will, make far better examinations and
exercise much more efficient supervision over the affairs
of their bank than any
official
of the Government pos-
Unfortunately the directors and managers of
not fully discharge their duty in these rebanks
do
all
Some of them do not know how to conduct or
spects.
sibly can.
supervise the business. Some who do know how neglect
their duties, and others have neither the honesty nor InIt is such banks as these that need
telligence needed.
State examination and supervision. No one is more interested In seeing that this is thoroughly given them than
the people who are managing their banks honestly and
It is greatly
well, strictly in accordance with the law.
to the interest of the
man who
so conducting his busias far as possible, comNot only does it make the com-
ness to see that his competitor
pelled to do the same.
is
is,
:
SAVINGS
BANK SECTION.
and give him a better chance for the
reduces the risk to him from the failure
of his neighbor, which may so upset the business of his
whole community that there is danger to all its banks, no
petition
more
business, but
fair
it
151
ception? It seems to me it
such is the case. We have a
is
well to consider whether
number of States that have
matter how well and prudently conducted.
I believe that what I have just said is especially true
of Savings Banks.
The record of American Savings
Banks for honesty of management will certainly compare
favorably with that of any other class of banks, especially in those States which have Mutual Savings Bank
laws and real Savings Banks. From the nature of the
business, the character of your investments and the people you have for depositors there is more to be feared
from anything which destroys the confidence of your people. This makes it more necessary for you to see that you
are not placed in competition with banks less ably and
no Savings Bank laws, as we all know. Maryland, the
State from which I come, is one of those States. Now,
I repeat, what impression will an action of this kind by
this session make on the States that have no laws when
we consider only the case of the District of Columbia?
Mr. Smith, of Washington, D. C. Mr. President, this
is a subject which very appropriately comes before us
now for two or three reasons. First, we have struggled
thiough a term of fifteen years since the first Savings
Bank began here, hot only without any supervision, but
At the time of the
without any Savings Bank law.
organization of the Union Savings Bank, with which I
am connected here, we absolutely had no law under
which we could get a charter. We had to go either into
less honestly conducted.
Virginia, across the river, or
Over no other banks has there been for so long a
period suelra complete and thorough supervision as has
been given the National Banks of the United States. The
New Jersey to get a charter at all, and
the Union Savings Bank operates to-day under the laws
:
up
into
West
Virginia, or
to Delaware or
During the
Virginia. That is certainly an anomalous situathat a Savings Bank chartered by another State
should have its home office here. Yet. that is the existing situation. And while we have to-day a law, which
was passed as a part of a very minor chapter in the code,
law the failures
Banks have been much smaller in proportion to the whole number in operation than those of
the banks other than National.
The National Banks
under which we might incorporate, we do not dare incorporate here because of the provisions of that law, or,
It is
rather, the lack of provisions of the present law.
Conproposition
through
local
any
difficult
to
get
always
have paid their creditors a far larger percentage of their
claims, and the cost of liquidation per one thousand dollars collected has been very much less.
The system of examination can be and should be improved by paying the examiners salaries instead of fees
and in some other ways, but on the whole it has worked
well certainly well enough to demonstrate that it pays
and is much better than no supervision.
Some of the States have very good banking laws,
especially in regard to Savings Banks, and good State
supervision.
Some have fair laws and some poor laws,
with little or no supervision.
It certainly will be an improvement if something like
uniformity could be brought about, and especially if the
States with no system of supervision would adopt some
good plan for bank regulation. A State which creates a
banking corporation and gives it authority to conduct
the business of banking, whether it be commercial banking, a Savings Bank or a Loan and Trust Company, owes
it to its people to see to it, as far as supervision will do
so, that such a bank conducts its business honestly and
according to law, and it owes it to the banks which are
well and ably managed to protect them from the dangers and competition of those which are run in violation
of law by men who are lacking in honesty or ability, or
need all the help we can get to put through
the law which is going to be introduced this winter.
Comptroller Ridgely has been very much interested in this
matter and has prepared a bill which he is going to in-
Bank Act
many
severe restrictions. The
examinations and reports of conditions are frequent and
comprehensive. The good results shown by the National
Banks are
more than
itself
contains
largely
due to
this supervision.
forty years' operation of the
of the National
—
both.
GOVERNMENT SUPERVISION OP SAVINGS BANKS
IN DISTRICT OF COLUMBIA.
Mr. Latimer
:
Mr. President,
I offer
the following
Inasmuch as there Is now no law in the District of Columbia giving any Government officer supervision over Savings
Banks, it is hereby declared the sense of this meeting of the
Savings Bank Section of the American Bankers' Convention, assembled at its annual Convention in Washington, that such a
law should be introduced in Congress and passed at the earliest
opportunity giving such supervision, preferably to the Comptroller of the Currency, and the Savings Bank Section hereby
pledges all its aid and influence toward the passage of such a law.
The President: Gentlemen, you have heard the motion.
It
seems especially appropriate at this time that
question, after the remarks
we should take action on this
to which we have listened.
The motion was seconded.
we are acting
What impression
here in the
a
resolution, applying to the District of Columbia, make
upon the country if we ignore those States that have no
laws? Or is it considered that because this is the seat
of Government and under the control of the Congress of
the United States that we are at liberty to make an ex-
Mr. Rother
:
Mr. President,
eyes of the whole country.
will such
of
West
tion,
gress.
We
going to try to help him get it
through. I think it is not only entirely appropriate but
very desirable that that law should receive the sanction
of the Savings Bank Section of the American Bankers'
troduce,
and we are
all
Association.
Mr. Rother
ing
this
:
I
do not want to be understood as oppos-
proposition.
I
simply
desire
may have
to
call
atten-
over the country
District
Columbia
and take
if we simply take up the
of
no action with reference to the various States that now
tion to the weight that
it
all
have no laws on this subject.
Mr. Creer: Mr. President,
it is a fact that the BankAssociations of the State of Ohio have for several
years past been trying to get together on the subject of
ers'
an adequate banking bill looking to State supervision and
examination. They have been unable to agree, and on
the occasion of the recent State convention in Cleveland
a bill that had been prepared with great care was tabled
in the latter part of the session.
It would be very neighborly and kind if the Savings Bank Section of this Association would lend any possible aid in its power to our
good friends of the District of Columbia to further such
legislation as they desire but if the bankers of Ohio cannot agree as to what they desire in the way of bank legislation, and if some other States are in the same predicament, as I believe they are, I think this Association will
be going rather beyond its power and arrogating to itself
duties which are rather inconsistent to place itself on
record as to what the bankers of the District of Columbia
ought to have.
I think the resoluMr. Smith, of Washington, D. C.
tion offered contains merely a suggestion that it meets
with the approval of the Savings Bank Section that there
should be some supervision, and that is all it says, adding
the further paragraph that it is hoped Congress will give
us a law. Perhaps all objection could be removed if it
was stated that this resolution was introduced at the
request of the local element here and that we want to
aid them.
;
:
The President:
I
should like to ask for the informa-
whether this proposed enactment has
or has not received the unanimous approval of the local
bankers' association. Some gentleman "rom the District
of Columbia can no doubt answer that question.
Mr. Smith
I think it has received the sanction of
tion of the Section
:
:
BANKERS' CONVENTION.
152
the local bankers, as far as it goes.
go further.
Mr. Mills: Mr. President, if it
know how
like to
I
We
is in
hoped
it
order
I
would
should
far this proposed law intends to go.
come from Maryland, the same as Mr. Rother, and we
should like to know the scope of the law.
Mr. Griswold: Mr. President, perhaps it would save
the time of the Convention if you would include the other
States that have no laws on the subject but which desire
that the Convention should take action in that direction.
The President: Replying to the next to the last
speaker, as the Chair understands the purpose of the
resolution it is merely to put on record the sentiments
of this Section on the general subject, without regard to
particular ways and means, and in reply to the last gentleman the Chair thinks such an amendment would not
be germane to the present question, which relates solely
to the District of Columbia, which is the one spot on
this habitable earth with reference to which this Savings
Bank Section of the whole United States has any right
We are all in one sense residents
to express an opinion.
of the District of Columbia. It is our property but it
seems to me that it would be foreign to the purpose of
this occasion to censure or praise the State of Maryland
for having no Savings Bank Law, which I know her Savings Bank officers desire. While perhaps the embracing
of the different States would not be positively out of order, yet it would not be germane to the present discussion.
The question is, Do we or do we not approve of
;
which we have heard read, and upon
which we have heard very able remarks?
Mr. President, perhaps it would be well
Mr. Creer
to have the resolution read again.
The resolution was again read by the Secretary.
this
resolution,
:
The question being
agreed
called
for,
the
resolution
was
to.
The President: The next in order is the report of
the Chairman of the Executive Committee of the SecMr. Latimer.
Mr. Latimer read the following report of the Chairman of the Executive Committee
for the past three years as Chairman of the Executive Committee.
This was thought best at the time, owing to the many things in
connection with the organization of the Section, and now that
we are thoroughly and successfully organized and I am to retire
I want to thank those of you who have given me their assistance and hope that the same pleasant relations existing between
the members and myself will be cheerfully accorded to my successor.
(Signed)
G. Byron Latimer.
The President: Gentlemen, you have heard the report
On motion
the report
Your Executive Committee has held four meetings since the
Convention September 13th, 14th, December 20th, 1904,
—
last
and May 2d, 1005.
At the September meetings but
little important business was
transacted besides organizing.
At the meeting held December 20th the matter of printed
forms was discussed and resulted in a call being made for forms
in use by all the Savings Banks throughout the United States,
the result of which is the compilation of forms on exhibition
here to-day.
In collecting these forms much time and some
expense has been incurred, which, of course, will not happen
again
but for the benefits to be derived from this collection
we felt justified in going to the expense. Perhaps some action
might be taken whereby a reproduction of these forms may be
made and offered for sale to our members only, and In that way
we may be reimbursed for the cost of production. Owing to the
vast amount of time required of our Secretary In this work your
committee has recommended a small salary to be paid him for
;
his services.
The meeting of May 2d, 1905, was attended by nearly all the
members, as well as by the only two ex-offlcio members of the
committee, the Hon. Myron T. Herrick, Governor of Ohio, and
Mr. A. C. Tuttle, of the Naugatuck Savings Bank.
At this meeting the question of the Interchange of monthly
reports of the deposits and withdrawals was discussed and
received the commendation of the committee, and resulted in
having the question brought before this Convention for action.
Our membership has materially Increased since our last Convention, a report of which will be given in full by our Secretary.
The work of some of the State delegates has been most gratifying and has resulted largely In accomplishing this Increase, and
I think the appointment of State delegates to look after our
Interest In legislat'on as well as the Increase In our membership
ought to be continued.
Our expenses hav? been somewhat larger the past term than
usual, owing to the collection of forms and the large amount of
clrcuiarizatlon done.
Most
of this
It
will not be necessary to
duplicate.
Any appropriation asked for our use has been cheerfully
granted by the Executive Council, and we have a small balance
to our credit at this time.
Contrary to the original intention of having our officers
(except the Secretary) act for one year only, I have been elected
is
your pleasure?
was
accepted.
THANKS TO COMPTROLLER RIDGELY.
distinguished
President,
the
Mr.
Rhodes:
Mr.
Comptroller of the Currency, Mr. Ridgely, has delivered
an admirable address on a subject which is of great interest to each and every one of us, and the recommendation he has made that all the Savings Banks of the
country be put under his care certainly means much for
We
the good of the system throughout the country.
should always try to obtain the very best we can get in
We
of legislation in every district and State.
have adopted a resolution recommending the passage of
such legislation for the District of Columbia, the Capital
the
way
of this nation,
move that
Savings Bank Section be and are here-
and now, Mr. President,
the thanks of this
I
rise to
by extended to Mr. Ridgely for his able address.
(Ap-
plause.)
The
agreed
was
motion
and
seconded
was
unanimously
to.
it becomes my pleasant
duty to convey to you the thanks of this Association, and
we compliment you on the style of your paper. In its
admirable epigrammatic brevity it is a little classic,
which contains much in small compass. The thanks of
(Applause.)
this Section are hereby conveyed to you.
The next thing in order is the report of our Secretary,
The President: Mr. Ridgely,
Mr. Hanhart.
The Secretary read the following report.
Report of Secretary,
tion,
Report of Chairman of Executive Committee.
What
of the committee.
Mr. Chairman and Gentlemen of the Savings Bank Section:
I am pleased to report a substantial gain in the membership
of this Section since our last Convention in New York in October,
1904. We then had 616 members, while our membership at this
I take this occasion to thank many of the State
date Is 734.
delegates, who have unselfishly given considerable time In their
endeavors to increase our membership.
The amount of our expenses of this year is heavier than usual,
one of the reasons being that some of the items, such, as rent,
etc.. Include expenses incurred prior to the beginning of the
present fiscal year, but not paid then they also include expenses
incident to the collecting, arranging and casing of the printed
forms, which you have all seen on exhibition at our headquarters.
;
and binding
Postage stamps
Typewriting and stenography
Uent and telephone (two years)
Expenses of Executive Committee meeting in May last.
Convention expenses (badges, programmes, etc.)
Salary of Secretary
Expenses of Proceedings, etc., of last Convention sent
to members and paid by Secretary Branch
Sundries
1,500 copies of Convention Proceedings, sent to nonStationery, printing
members
$412.13
188.00
446.00
607.54
133.81
89.00
400.00
606.46
138.65
168.38
$3,189.97
Total
In explanation of the item of $168.38 for Convention Proceedings, I will say that it was decided last year, as an Inducement to the non-member Savings Banks to join the Association,
to send them a complete report of the proceedings of our last
Convention. This expense, of course, will not be Incurred again,
being now unnecessary, as our Section Is well known through-
out the country.
Respectfully submitted,
Wm, Hanhart,
On motion
and placed on
it
Secretary.
was ordered that the report be accepted
file.
The President:
It is
appropriate for
me
to say again,
have already said, that the vast amount of work
performed by our able Secretary, to which he has modestly made no reference in his formal report, is work of
a kind and amount which none of us can realize except
those few of us who have been at work near him and in
touch with him and have witnessed his faithful and
as
I
)
:
SAVINGS BANK SECTION.
unsparing diligence and attention
to
(Ap-
business.
plause.)
on our programme tbere is an
subject, " Proposed Bank
interesting
very
on
address
a
to bave been read by
was
wbicb
Legislation in Obio,"
N. Hencbman Davis, Esq., President of tbe Central Trust
& Safe Deposit Company of Cincinnati, Obio. Although
the State of Ohio has not such a busy Banking Law as
we would like it to have, yet Mr. Davis lives in a very
busy State. He has found it impossible to be with us in
You
will observe that
but he has sent to us a very carefully prepared essay on this subject, which I am sure will be
listened to with great interest, as the eyes of the civilized
world are very largely on Ohio, a place from which our
great men are very apt to come, and then after they have
come from it to stay away from it ( Laughter.
I will ask the Secretary to be kind enough to read
this essay of Mr. Davis, and I am sure he will do full
person,
justice in the reading of
it.
The Secretary then read the following paper
" Proposed Bank Legislation in Ohio," by N. Hench-
man
Davis,
[Mr. Davis' address in full will be found on pages
142 to 144 of this publication.]
The President: Gentlemen, you have listened to this
very interesting paper, which will take the usual course
and be printed in our transactions. A question has occurred to me which perhaps our Secretary can answer,
which may be of interest to others. That is as to what
will become of the few noncapitalized savings institutions
now
existing in the State of Ohio in the event of the
passage of this proposed legislation.
The Secretary There are, as I understand it, four
Savings Banks in Ohio that are mutual and were organized long previous to the present legislation. As I
understand it they will not be interfered with, with the
exception that five times a year, like all financial institutions, they will have to make reports to the Superintendent of Banks. They are not interfered with otherwise.
Their investments and organization will remain
:
same as at present.
The President But they will come under the examination of the Bank Superintendent?
The Secretary Yes.
the
:
:
Thereupon the Section adjourned
until 2 o'clock p.m.
AFTERNOON SESSION.
The President At the time of the adjournment we
were considering the address of Mr. N. Henchman Davis,
:
of Ohio, on the subject of " Proposed Legislation " in that
State.
Is
it
proposed that any action be taken or
is
any
debate or interrogation desired on that subject before
passing to the next order of business? We wish everything to be as fully discussed as possible, but if no one
has anything to say we will pass on. The essay is a
very exhaustive one and doubtless has placed the matter
in as good a shape as it can be at present.
The next order of business is the report of our special
Committee on Accounts Opened in Two Names. That
committee consists of Mr. B. W. Johnson, of Albany;
Mr. J. H. Johnson, of Detroit, and Mr. W. W. Cloud, of
Baltimore. The Chairman of that committee being absent, I will call upon Mr. J. H. Johnson, of Detroit, to
read the report.
Mr. Johnson Mr. President, the committee having
made a complete report and copies of it having been furnished to all the members of the Section I would suggest
:
that the reading of the report be waived.
The President: And that it be accepted as printed
and laid before us?
Mr. Johnson
:
Yes.
The President You have heard
:
Is
the motion, gentlemen.
seconded?
The motion was seconded.
it
Accounts Opened
of gentlemen desire to be
heard on this question, and it seems appropriate that
the discussion should be opened by the counsel of the
Executive Committee, who has studied this subject more
The President: A number
thoroughly than any one else. I should like to hear from
Mr. Paton, of New York.
Mr. Paton: Mr. President and Members: Gibbon in
his admirable history of the decline and fall of the Roniiui Empire tells us that after five centuries the number
and weight of the laws became so numerous that the
proposer of any new law stood among tbe people with
a cord around his neck, and if the law was rejected he
was immediately strangled. Now, gentlemen, having been
the counsel who drafted the proposed laws which are rejected, so to speak, by the committee, I am very glad in-
Two Names.
[This report in full will be found on pages 145 to 147
of this publication.]
we do
not live under any such conditions.
The origin of this matter of the regulation of twoname accounts began in a discussion at the last meeting.
The proceedings of that meeting are a matter of record
and there is no necessity of going into detail as to them.
It is sufficient to say that a committee was appointed
with the request that they consider the framing of a
deed that
uniform law to regulate the subject of two-name acThat committee honored me with the request
I drafted two laws, one covthat I draft such laws.
ering trust accounts, the idea being a law which would
supplant the attempts of people to make a will by putting money in trust for another by a form of declaration,
counts.
or nomination, rather.
and you have
all
read
It is fully set
it
doubtless.
forth in this report,
The other law which
was
a proposed law to protect the banks in
paying joint accounts to the survivors. The committee
I
drafted
have absolutely excluded from consideration the Trust
Law as being beyond their province and have confined
their report to the law regulating joint accounts.
In
their report they reached the conclusion that it regulates
property rights.
It was not intended to do any such
thing, and I do not think a reading of the law will so
indicate.
It simply protects the banks in paying to the
survivor.
The committee in their report say that legislation regulating join accounts
is
neither practicable nor
and they recommend a standard form of declauniform terms to be adopted by the banks for the
desirable,
ration,
regulation of these accounts. Now we all know that joint
accounts are in a great variety of forms. It will not do
to say that they are numberless, for even the hairs of
our heads are all numbered, and I have heard some gentlemen say that they wish they had a few of the back
numbers. (Laughter.)
But your industrious Secretary has collected a large
number of these forms which have been devised doubtby attorneys for the banks in different States in an
endeavor to conform to conditions as developed by deless
cisions of the courts in those States.
We all know that
the decisions governing those joint accounts are conflicting in the different States and that they will continue to
Now the problem which this report of the committee presents to us to-day is this: You evidently are
dissatisfied with existing conditions.
You want some
method of regulation. The question is, Will you adopt
conflict.
banks in paying joint accounts
or will you adopt a standard form of
joint accounts, or will you leave things as they are? It
seems to me that it will be impracticable to adopt any
standard form of jo nt account as recommended by the
committee, with all due respect to that committee, unless
it is backed up by legislation.
Take any form that may
be submitted.
Will the banks in that State adopt it
knowing that the courts in that State may differ in their
construction? It seems not. It seems as if the only praclegislation protecting the
to the survivors
,-
tical way to regulate that subject at all is to adopt a
statute which will protect the bank in paying to the survivor.
Of course this is simply my individual opinion.
You
in
153
all
may
differ
with me.
protect the bank, so that
ma, as it often
paying when it
is,
is
it
This proposed statute will
will not be put in the dilem-
of interceding between the parties or
so.
Why is not such a
unsafe to do
154
BANKERS' CONVENTION.
statute
practicable? We recollect that
banks, with reference to a form of account in
trust, felt unsafe in paying
to the beneficiary on
the death of the trustee and
statutes have been enacted
in at least a dozen States
permitting the trustee, in the
absence of notice of any
other conditions of the
trust, to pay to the beneficiary,
lhat statute does not regulate
the title, but it protects
the banks.
Now, why cannot the same thing be done,
and why is it not the best thing?
It is for you to discuss the enactment of such a
statute. Now, the proposed
Ohio legislation that was made the
subject of an address
this morning, in Section
33, contains just such a provision
It is brief and I will read it. "
Whenever a joint deposit is
made to the account of two or more persons,
with an
agreement that such deposit is to be subject
to the check
of either party, and that it shall
continue so notwithstanding the death of any one or more
of the persons
making such joint deposit, such account shall
continue to
be payable on the check of the
survivor, and death of any
one or more of the persons making
such joint account
shall not revoke the power of
the survivors or survivor to
check on such account; and no
recovery shall be had
against such company for amounts
so paid on the checks
of such survivors or survivor and
charged to such ac-
count."
That
as
is
simply in another form of language
providing
provided in this proposed act.
is
Wben an account is opened in the Savings
Banks by
two persons, or to an existing account in
a single name is
added the name of another person, and
the account is by
terms made payable to either or the
survivor the
bank may during the life of both
persons pay to either
and upon the death of one the moneys
due upon such
account shall be payable to the survivor.
its
I do not understand that
the words " shall be payable "
regulate any property rights. If
there is any question about
it change them, and
let it read " may be paid
to the survivor.
That is as far as legislation should go,
and it seems
to me that it is much the better
and wiser
and simpler and
more practicable way of regulating the
subject of joint accounts than to adopt any standard
form which will not be
adopted
the States in view of the conflicting
construcin the future will put upon it.
Those
are my views with reference to
joint accounts, and the other
subject not being within the
province of the committee according to its report, I will not
assume to discuss that now.
The President: Gentlemen, I wish to call
attention to
what seems to me to be one misapprehension
on the part of
the committee. Only one member
of the committee was present at the meeting of last year, and
he was not the Chairman
of the committee. It was distinctly
undersood then that twoname accounts included trust accounts,
because the trust
account of necessity has at least two
names on it, one the
trustee, and the other the cestui
que trust. I raised that
question myself, not thinking at first
that the expression
two-name was susceptible of that interpretation,
but immediately it was definitely stated
that two-name accounts
were intended to include the trust
accounts.
Therefore I
should rule that the discussion on
trust accounts is perfectly
proper under this report, although the
committee has been
under a misapprehension in believing that
this was not intended to be part of their sphere.
I shall be glad to hear
any other remarks on the general subject.
tions
in all
which the courts
Mr. Johnson, of Detroit This is a rather
difficult subject
to take up, and I have found that the
more I attempted to
learn the less I knew.
I think you will have to divide
the
subject, with all due regard to the
President.
I think we
shall have to keep the subject of the joint
:
accounts separately
from the trust accounts, because I think the
legal propositions are different.
I am not an attorney, but it
occurs to
me that they are. The conflicting laws of the various
States
and the different conditions make it extremely difficult
to
pass any law that could be used generally, as I have
been told
by several prominent attorneys, and they told me,
too, that
a simple form of declaration in the making of the
deposits
would cover the banks fully. If you are careful to avoid
any
reference or condition which indicates that either
party
draws by virtue of a power of attorney, then the bank is
fully protected by this simple form of declaration.
I have
looked over the various forms of contracts which are signed
and executed and made a part of the deposits, but unfortunately I havo not had an opportunity to consult with our
Chairman, and have consulted for only a few moments with
the other members of our committee.
It is only my individual opinion that the simplest and best form
I have found
in the various two dozen or
more that the Secretary has
selected for us is the simple declaration "payable
to both
or either, or the survivor," and stop right there.
Now, I have here the legal opinion of our attorneys on
the subject and they rule against Mr. Paton and his proposed
draft of a law. I also have the opinion of a very prominent
firm of attorneys in our city holding that the law is not
necessary, but that such a simple clause as I have suggested
will fully protect the banks.
If you have the time later I
shall be glad to read those letters to you, but I do not
to occupy your time unless you are so disposed.
want
Mr. Rother: Mr. Chairman, I believe this question of
two-name accounts has been a trouble to the Savings Banks
ever since they were in existence, and I do not believe more
trouble has been caused in any State than in Maryland by
this question.
On last Saturday a case came to my notice
where a gentleman deposited $3,000 in his own name and
the name of a lady, subject to the order of either and the
survivor. We have any number of decisions in the State of
Maryland that if the bank knows of the death of either of
the parties it pays the money at its peril.
In this case to
which I refer the bank book was given to the lady after
the deposit was made.
After the death of the gentleman
she went to the bank and withdrew the account and deposited
it in her own name.
The attorney for the heirs learning of
the deposit has entered suit against the administrator. I have
consulted with three different attorneys, and each one of
them tells me that the heirs will get the money. This shows
that the proposition made by Mr. Johnson does not cover
the case, because the intention of the depositor is that the
money shall go to the survivor and not to the heirs. Now
ten years ago, in order to bridge over this difficulty, the attorneys in Baltimore of all the Savings Banks had a consultation on this point, and they devised a form which has
been adopted as far as I know by all except two of the Savings Banks and which has stood the test of the courts
that
is, creating a trust
John Jones in trust for himself and
Mary Jones, subject to the order of either, the balance at
the death of either to belong to the survivor. That is a form
that I understand will hold in Maryland. Why should not
that also hold in other States? The decisions of the courts
in the State of Maryland have held unanimously that the
placing of additional names in a Savings Bank book is not
a gift, because it can be revoked. It is a gift with a string
to it, and in the eyes of the law no gift at all.
That is why
at the death of either of the parties the money goes to the
estate, whereas by creating a trust, in the manner I have
suggested, it is out of the reach of the administrator. That
is the practice in Maryland.
I believe that would apply to
other States. Of course, not being a lawyer I cannot tell
certainly, but it does hold good in Maryland.
—
—
Now, coming back to Mr. Paton's proposition, by the
act that he proposes, if it were adopted by the Legislatures
of our various States, I see no reason why it should not
control, certainly to the satisfaction of the banks, because
it would give the banks a complete discharge.
According to
my opinion it would also comply with the desires of the depositors, because that is
what we want.
We know
from ex-
perience that the desire of the depositor is to have his money
go to the other depositor named in the bank book, and to
avoid the expense and trouble of proceedings in the Orphan's
Court. Besides that it may be a special fund which had been
intended for a certain party, as was the fact in a case that
came to my notice last Saturday. This woman had boarded
an old gentleman for five or six years at about ten dollars a
month, and he told her " I have $3,000 in the Savings Bank,
and that is deposited in your name with the provision that
when I die that money will belong to you." Now, here is a
case where under ordinary circumstances we would recognize
the fact that that money belonged to that woman, but under
the form as proposed here by Mr. Johnson it would go to
the estate.
It appears to me that the trust account is the
only
one to overcome the
difficulty, if
that
is
good
in other
States.
The President I would like to have the gentleman who
has just spoken give us the literal words of that declaration,
as it is very important that we should know exactly the words
:
used.
Mr. Rother I can give the exact wording of it " John
Jones, in trust for himself and Mary Jones, joint owners,
subject to the order of either, the balance at the death of
either to belong to the survivor."
:
:
:
SAVINGS BANK SECTION.
Mr. Niemeyer
:
I
would
like to
ask the gentleman a ques-
Is the administrator in possession of the
tion in the case.
money ?
Rother The bank has the money.
Niemeyer: The bank has not paid it out yet?
Rother The money is in the bank.
Niemeyer I thought the bank had paid it out.
Rother
No, sir. It was transferred to another account, but it was still in the bank. If they had paid it out
there would have been no redress against the bank in Maryland, but as the money was left with the bank in the name of
Mr.
Mr.
Mr.
Mr.
Mr.
:
:
:
:
it can be traced.
Mr. Hanhart Mr. President, with your kind permission
I will say a few words in relation to accounts opened in Savings Banks by one person in trust for another. The Committee on Two-name Accounts in their reports have confined
themselves to the question of joint accounts, and have come
the devisee
:
to the conclusion that, in their opinion, general legislation for
such accounts is neither practicable nor desirable, in which
opinion I heartily join
although I believe that a general
form of declaration to be signed by both parties at the time
of opening these accounts could be devised and successfully
adopted by Savings Banks in all the States of the Union
but for the present I will confine my remarks to the question
of trust accounts as considered in Mr. Paton's communica;
;
tion.
It is with considerable diffidence that I venture to differ
with the honorable counsel of this Section, and before stating my views I will say that I take off my hat to lawyer
Paton, than whom no better man exists to clearly and understanding^ state the different points relating to any
legal question affecting banks.
He is an honor to our Section and my very good friend.
Mr. Rother If our Secretary will permit me to interrupt him, I wish to say that this declaration was made in
one instance, and signed by the depositor, and yet the
courts decided that it did not hold good.
The only way in
which it could hold good would be if it had two witnesses,
taking the place of a will, and then it would have to go
through the Orphan's Court.
A declaration such as you
speak of, signed by a depositor, stating " I desire that at
my death this money be paid to Mary Jones," that statement
being signed by him, the Court said that notwithstanding
:
that
belonged to the estate.
Mr. Hanhart
I am trying to cover this point, if you
will have patience with me for just a few moments.
Of
course my views are from a banker's standpoint.
I am no
lawyer.
I am only a layman.
I am, of course, quite willing to take Mr. Paton's statement of the law itself, but after all I think that, being in
business, we should do business in a businesslike way, with
the sole view of furthering and increasing this business, not
forgetting that we are dealing with depositors, many of
whom are uneducated.
must endeavor to make our
transactions with them as plain and easy as is consistent
it
:
We
with safety.
The statute proposed by Mr. Paton is very thorough, and
seems to cover the ground entirely, but my first objection to it is that I doubt if such statute would be universally
adopted by the legislatures of the several States without
being amended here and there, and it would thus lose much
of its usefulness.
In my opinion it is too particular and
too minute. Apart from this general objection there are
several others that strike me very forcibly.
The first and
the greatest is that it attempts to make people nominate
their beneficiaries by a special instrument in writing, instead of merely opening an account in the old fashioned way,
which for years has been used by hundreds and thousands
of depositors in the East, and which I understand is also
generally used in the West; and that is, for a depositor
it
when
depositing his or her
for a certain beneficiary.
money
to state that
it is
in trust
This proposal of nomination would also complicate matters materially, in so far that not only would a nomination
in each case have to be signed and witnessed according to a
given form, but when made outside of the State it would
have to be certified by a person authorized to take acknowledgments relating to real estate. Many deposits are nowadays received by mail, and should the despositor reside
without the State it would be an additional expense to him
when opening the account and also whenever he would
change his beneficiary.
This proposed, so-called, nomination Is copied from the
English custom, where it worked very well, but the conditions are very different as between England and the United
States. In England the Government is supreme, and having
155
once adopted this system of nomination it could enforce it
without trouble. In this country I fear that these nominations would frequently be set aside by the courts as clashing
with the statute of wills; aside from this consideration, why,
may I ask, is it necessary to adopt this English system of
nomination? When a woman deposits $100, stating that
she would like to have her son Johnny's name added to the
account, so that at her death it would go to him, why is
this not sufficient, or could it not be made sufficient by a
short statute legalizing this trust, declaring the account to
be a tentative trust, to become legal and valid only at her
death?
Similar legislation exists in several States of the
Union, among others my own State of New York, where the
statute permits payment of such accounts in Savings Banks
An objection
to the beneficiary at the death of the trustee.
to this, however, seems to be that the statute is merely permissive, and while it safeguards the bank in making such
payment it does not declare that the balance on hand at the
death of the trustee belongs to the named beneficiary it
merely permits payment to him, but does not settle the
ownership.
Taking it altogether, I must say that I am not in favor
of such a radical change as the one proposed, and consider
that a short form of statute following along the lines that
we have always been used to and merely legalizing this
matter would be more satisfactory to the bank as well as
Savings Banks are recognized as among
to the depositor.
the most conservative forces in our financial system, and
should be loath to introduce new systems as long as the
old ones are fairly satisfactory or could be made so by a
short enactment.
I now beg leave to offer you the following form of statute, based on a recent decision of the Court of Appeals of
the State of New York, and which statute I believe could be
adopted in every State of the Union
—
A
deposit in a Savings Bank by one person of his own money,
own name, as trustee for another, is a tentative trust only,
revocable at will at the death of the depositor before the beneficiary, and without revocation, an absolute trust is then created
as to the balance on hand, which shall immediately become the
property of the beneficiary and payable to him by the bank.
in his
;
Being only a layman, I quite realize that the phraseology of this proposed statute may be considerably improved
and therefore I merely offer it to this Convention as a suggestion of what would, I think, thoroughly cover the ground
relating to trust accounts, legalize the whole matter and
at the same time make no change whatever in the usual
methods of handling these accounts.
It would merely confirm what is the general use and
make
it
plainer, safer
A Member How
:
and
legal.
about the property rights of creditors
under that proposed statute?
Mr. Hanhart This proposed legislation would put the
property rights of the creditor out of the question. It would
make it a tentative trust, becoming legal at the death of the
They
trustee, and creditors would have no interest in it.
may have an interest in it until the trustee dies, but at his
death it turns the account into a legal and valid trust.
Mr. Rother Mr. President, is not that an entirely and
Mr.
distinct thing from the proposition of Mr. Paton?
Paton's proposition for an enactment covered accounts that
had not been made trust accounts, while Mr. Hanhart's
proposition covers accounts that have been made trust accounts.
I believe if we want to cover the ground it would
be necessary tc recommend that both forms o2 account be
:
:
recommended
to the Section for consideration.
I
would
like
have the views of Mr. Paton on that.
Mr. Paton Mr. Chairman, I beg pardon for appearing
twice, but in my former remarks I simply confined myself
to joint accounts, as that was the only subject taken up by
the committee. In drawing these two forms of laws, one the
nomination law, which Mr. Hanhart confines himself to
exclusively in his paper, and the other the joint account law,
I had in mind the regulation of the two subjects.
In the
trust law, or nomination law, my object was to make a will
In the joint account law my object was
to regulate title.
simply to protect the bank.
Now, we all know that the
numerous forms of deposit, A, in trust for B, have been con-
to
:
strued differently in the different States.
The
decision to
which Mr. Hanhart refers settle the law in the State of New
York, and if that law was universal in every State we would
have no further trouble. Under that judicial law in New
York you can make a will by putting an account in trust for
another. The Court of Appeals declares that it is a tentative trust.
It is revocable at will.
It is
a will or
it is
not
156
BANKERS' CONVENTION.
a will, you have
it or you do not have
it, until you die, and
then what is left goes absolutely
to the beneficiary.
That
is nothing more nor less
than judicial legislation, and if the
courts of the other States were
to adopt the same view the
matter would be regulated but no
later than last July the
Court of Chancery of New Jersey had
the same kind of a
case before it. of a deposit
by one person in trust for another and nothing appearing
as to the intention of the de;
The
positor.
depositor died and the contest before the
court
was between the beneficiary and the
estate of the depositor
Under the decision of the Court of Appeals
of New York the
beneficiary would have been
entitled to that.
The New
Jersey Court of Chancery in a
voluminous decision criticised
the Court of Appeals of
New York and declared it to be
judicial legislation, holding that
it is against all established
legal principle, that such
matter is for the legislature and
not for the courts, and that is the
law in New Jersey, that
W
the
money under
those
circumstances belongs to the estate
see the conflict of authority.
In New Jersey in order
to effectuate the intention
of the depositor it is necessary
to make a will, because
under the law of wills if property
is to go
a different channel from what
the law provides on
the death of a person it must
be according to the law of wills
with witnesses and all the
formalities connected with the'
m
making of a will, including the probating
Now, it is universally recognized
that
e e
m^
u ar
:r m
r
it
is
desirable, in
of Savings Bank de p° sito
the case of small accounts.
simplify
; that
tL t matter
amounts m,ght be limited.
legislation in this
of the will
Therefore
it
-
to
The
would seem that
direction is desirable. The courts
in their
opinions admit that. The question
is, what form of legislation shall we have.
I looked at the English
legislation and
saw that there they have a system
of nomination bv which
persons desiring to own their
money in the Savings Bank as
long as they live, but desiring
it to go to another
specified
person upon their death, could
by writing in several forms
say
I nominate So-and-So to
take the whole or any part
of the amount due me by
the bank at my decease."
That
would be in reality a will. The
form which your honorable
Secretary suggests is to enact
a statute in conformity with
he decision of the New York
Court of Appeals, to the effect
that when a deposit is made
in trust for another, and no
other declaration is made, it is
a tentative trust, revocable at
will, and at death the
balance remaining shall go to the benenciary. Now, that would be
very nice and very simple. Such
a form of legislation would cover
accounts not intended to be
made wills. You know better than I
do whether there are
not many accounts put in trust
for another where there is
no intention of making a will,
where there is no intention of
the money going to the
beneficiary, but for convenience,
to
evade some rule of the bank, or for
some other purpose where
the depositor expects the money
will go to his heirs on his decease.
Jnow such a form of statute as that
would confer the
title upon the beneficiary
contrary to the intention of the depositor, and it in reality i s not
a trust at all. When a man puts
money ,n trust for another, but intending
to have it as long as
he lives and to take it out and
use it if Jhe likes, it is not a
a
revooable
is °o trust at all.
He does not hold
ll
the ;•*,
title in trust, but holds
it for himself.
It is really the
making of a will, and it seems to
me that the transaction
which conforms most nearly to the
actual intention is this
one of nomination. That is the way
it occurs to me.
Others
may think differently. Now, you may punch
a lot of holes in
this statute. I am not sure
myself but what I could improve
it.
It was drawn just tentatively,
to be brought up for dis-
^t
cussion.
I refer to this nomination
statute.
It may well be
ought to be limited in amount. There
have been suggestions made that it does not
sufficiently provide for the
claims of creditors of the deceased,
that the money might be
paid over to the nominee and the
nominee might spend it before the creditor knew that his
debtor had died. Well is not
that done now by the trust accounts
in New York'
Where
doas the creditor come in in that case?
A makes a deposit in
trust for B. A dies and B gets the
money. It is the same
thing. Of course in a regular form
of will, the probating of
that
it
the will
notice to the creditors and they are
protected but
otherwise with these trust accounts in New
York at the
present time under this decision of the
Court of Appeals where
the beneficiary gets the money without
any such formality or
without any such provision for creditors.
Very often in a
joint account where money goes
to the survivor, the survivor
gets it under the decisions where
it appears that the intention was to give him the money,
and it.was given during life,
and that joint account was created. This
nomination statute,'
as I say, may be subject to criticism
and it may be improved,
but it strikes me that the general
principle is the right one
with reference to the trust accounts.
it is
is
Now, with reference to the joint accounts, I think that
subject has been pretty nearly all covered by
what I said
before. The gentleman from Baltimore (Mr.
Bother) shows
us very conclusively why the form of declaration, payable
to
or B, or the survivor, would not do for a standard form of
declaration for this Association.
I recall that the Supreme
Court of Rhode Island recently had a case where
gave the
bank book to B before he died, and the Court held that the
survivor took the money. There was another case before the
same Court where
never gave the book to
and B knew
nothing about it, and in that case the survivor did not get
the money, but it went to the heirs of the estate.
In every
State you will find the courts so conflicting in their views as
to the effect of the account of A for B or the survivor, or
any similar form of account. For that reason it seems to
me that some simple form of statute, not regulating property
rights, but protecting the bank in paying to the survivor,
would cover the case, and the statute itself would make one
uniform form.
The President Before Mr. Paton takes his seat I should
like to have him enlighten us upon one point in the project of
Mr. Hanhart. In his draft of a proposed law, as I remember it, the expression is used, " a deposit in a Savings Bank
by one person of his own money." Now, I should like to
know whether in your opinion that is a dangerous phrase to
introduce, and upon whom the burden of proof would rest of
its having been the depositor's own money.
A
A
A
B
:
Mr. Paton Would you read that over again?
Mr. Hanhart I am no lawyer, and I said the phraseology
might be improved. The language I used was
:
:
:
A
deposit in a Savings Bank by one person of his own money,
in his own name, as trustee for another, is a tentative trust only,
revocable at will at the death of the depositor before the beneficiary and without revocation an absolute trust is then created
as to the balance on hand, which shall immediately become the
property of the beneficiary and payable to him by the bank.
;
Mr. Paton Would a person deposit any except his own
money ?
The President He might deposit the money of a cestui
que trust. How are we going to know which it is?
Mr. Paton Suppose I go to the bank and deposit money
in my name in trust for John Smith, and I do not know John
Smith, and I intend that the money shall be mine, but it is
:
:
:
done for convenience.
Is not that very frequently
done?
The President Frequently.
Mr. Paton Under that very statute would not that money
go to John Smith instead of going to my heirs?
The President But suppose it was your son's money, de:
:
:
some other source, for instance from his grandmother, and you wished to put the money in the bank, your
son being too young to transact the business, or not a proper
person.
What would be the effect of that statute in that
rived from
case?
Mr. Paton
his getting
get
it
it
:
might change the
It
at 21,
when he was
until I died.
That might
effect so that instead of
it, he would not
cannot answer these
entitled to
be.
I
questions offhand, without thought and reflection.
The President Would not the bank have to inquire into
the question whether this was his own money under such a
statute?
:
Mr. Paton I think it would. I think it would be necessary to confine the deposits in that form to money belonging absolutely to the depositor, concerning which he
intended to make a will, and would exclude all other classes
:
of deposits, or exclude the use of that form for all other
classes of deposits.
Mr. Hanhart I fail to see where the question of a will
comes in. If a short statute is adopted, declaring the condi:
tions of certain trusts
counts in a Savings
—that for instance, these trust
Bank —why should
clash with the
is,
ac-
it
statute of wills?
It is a trust.
You are not leaving your
money by will, but you are starting a trust, which under the
statute would bo declared a tentative trust only, revocable at
will
also under the statute it is declared that it only becomes a legal and valid trust at the death of the trustee. It
seems to me you are making no will, that it does not clash
with the statute of wills, and that it is simply a form of regulating a certain kind of trust, and that is this very form
of trust in a Savings Bank.
I admit that they are very peculiar forms, but these accounts have been opened by thousands, and you might say by millions, of depositors in the
East.
They have given a little trouble once in a while.
;
Once
tee.
the
in
a while there
is
a contest after the death of the trus-
The legal representatives of the trustee will try to get
money from the bank but if you legalize the way we
;
have always been accustomed
to,
which
is
to
pay the bene-
;
SAVINGS BANK SECTION.
ficiary at the death of the trustee, I think you will be rendering a service to thousands of depositors in the Savings
Banks of this country.
You are legalizing these semitentative trusts.
You are putting them under the protection of the law.
The law will declare that they are only
tentative, that you can revoke the trust at any time while
you are alive, but that the very moment you die the balance on hand goes as a legal and valid trust fund and belongs
to and is payable to the beneficiary.
We must try not only
to protect the banks in these trust accounts.
The bank is
fairly protected to-day.
Under the statutes of many of the
States of the North and East the banks may pay the beneficiary at the death of the trustee. The bank may pay.
That
is the language of the law, the banks may pay the beneficiary at the death of the trustee but if it is desirable to regulate the matter I say that a short form of statute would
probably legalize it better, and also cover that point which is
not covered, as I understand, in any of the statutes now in
force
that is, the question of the ownership of the funds on
the death of the trustee. It is not only that the banks may
pay the beneficiary, but the statute will declare that it becomes a legal and valid trust and that the money belongs to
the beneficiary, and therefore that the banks may pay.
Mr. Rother I must apologize for rising again.
The President
are very glad to hear from you.
Mr. Rother As Mr. Hanhart proposes to have a law
passed regulating the trust declaration, what objection has he
to having a similar law passed regulating the joint account?
The one is as important as the other, and I do not believe
I am at all wrong when I say that there are more Savings
Bank joint accounts than there are trust accounts. That
is my experience of 30 years behind a Savings Bank counter.
So I believe it is just as important to regulate the one as
the other.
I heartily approve of the suggestion made by
Mr. Hanhart, but I also approve of the suggestion of Mr.
Paton that both should be regulated by law and not give the
courts an excuse to say that that is something for the legislature to regulate and not the courts. Our object is to avoid
trouble, to create as little trouble as possible for the depositor and also to protect the banks.
Now, how do we
arrive at that? By the enactment of these propositions, the
one by Mr. Paton and the other by Mr. Hanhart. Perhaps
the phraseology should be changed, but undoubtedly that is
the cleanest way to arrive at that point.
How far we will
succeed in having it enacted by the various legislatures, of
course, is a question to be determined by the future.
cannot prophesy as to that, but I do not think we ought to
come back here and simply accept the report of the committee and let the matter stand where it is now. If we do
we will be exactly where we were ten years ago. I believe
the report of the committee ought to be rejected and that the
propositions of Mr. Paton and Mr. Hanhart ought to be
adopted.
;
—
:
:
We
:
We
Mr. Hanhart The gentleman asks why I believe that
the law should not interfere with joint accounts.
I think
that question can be answered easily.
The trust account
legalized by law by a short statute and carried on in the
:
way we have always done
is all right.
The
joint account is
a very different thing. I do not see how any law will ever
decide the question of ownership of joint accounts.
That
involves property rights that we cannot enter into.
In the
case of a joint account, on the death of one of the parties
the question is, to whom does that money belong, and I do
any agreement entered into beforehand will
ownership of the deposit. It may relieve the bank
of liability in paying, but a joint account is a very different
thing from a trust account. It involves property rights that
I do not think we can enter into, and I do not believe you
will ever get a statute passed to settle the status of a joint
account.
Neither the bank nor any one else can determine
beforehand the relative rights of the joint depositors. We
do not know whose money it is. Does it belong to one man
not
believe
settle the
or does it belong to the other or does it belong jointly?
half belong to one man and half of it to the other?
Does
can
We
never settle that question. The question of trust accounts
is a very much easier one than the question of joint accounts.
Mr. Rother
reached by similar legislation, because the intent of the
depositor is exactly the same in each case. We create trust
We know
estates because we advise the depositor to do it.
that the other will not hold under the law of Maryland and
that is why we advise them to create trust estates. It seems
to me we ought to cover both points.
Mr. Smith, of Washington, D. C. While you are on this
subject I wish to say that at the last meeting of the Execu:
Committee there was a suggestion made by Governor
tive
Herrick, of Ohio, as to how this matter of joint accounts is
He said that
handled in the Cleveland Savings Society.
whenever an account was opened, a two-name account,
the teller was directed to hand to the depositor a short form,
four or five lines, of a will, and he was asked whether it was
not his intention that after his death this money was to go
to the second party absolutely, and if so that he sign the
will
and with all their joint accounts practically they have
what is in effect a legal will under the laws of the State of
Under such a method as that, of course, the bank
Ohio.
;
matter without
Mr. Rother: Does this
Court or has the Savings
nominee?
Mr. Smith They have
settles the
:
I
We
any necessity for any statute.
deposit go through the Orphan's
Bank the right to pay it to the
the right to pay
it
to the
nom-
inee.
Mr. Creer I beg pardon, the gentleman is in error.
Mr. Rother: That would not go in the State of Mary:
land.
are drifting from the original intent of this discussion, and that the treasurers and
secretaries and presidents of the various savings institutions
represented here are not so much interested in the form of
Mr. Creer
:
It
seems to
me we
an enactment as in some method, whether it be by agreement
or by statute, which will enable their institutions to pay money
upon deposit without entailing any liability thereafter. I beg
to differ with the report of the committee. Such an agreement
would not hold in the State of Ohio for a moment. You
could drive a six-mule team through it. The will referred
to by the gentleman from Washington (Mr. Smith) in the
Society of Savings in Cleveland must become a matter of
record in our Probate Court. The law in each State defines
certain methods by which property may pass from one to
another, and when you come to make legislation for the
passage of money you are making legislation for the passage
of property from one to another, and there are already basic
laws which affect that. Take it, for instance, in our State
we have an inheritance tax. The passage of any such law as
Mr. Hanhart suggests could drive around the law of the in-
We
are also blessed or cursed with a tax
My friend here had a run on his institution a while ago, which served as a good advertisement for
One man had some
the strength of the Savings Banks.
around the corafter
loafing
money on deposit there, and
the bank and recalled
into
forenoon
he
was
ridor half of the
quested to take out his book. The book was taken and he
was given the money for his account, and told that thereheritance tax.
inquisition in Ohio.
after he
must deposit
his
money somewhere
else.
He went
out on the street and thought it was something wonderful
that they should call him in and force their money on him.
The tax inquisition got hold of it and it cost him $325 for
back taxes on his $2250 that he had on deposit. Another
The Vice-President of the institution with
case in point.
which I have the honor to be connected was appointed administrator of an estate of a man who was very careful of
his personal affairs, who did not even divulge to his wife the
amount of his estate. I happened to be one of the appraisers of that estate. He had more than $50,000 on deposit in
various Savings Banks, besides $50,000 in his commercial
account. My friend was very careful to make a settlement
with the tax authorities before he filed that inventory, and
he was very glad to pay a fee of $5000 for a receipt in full
of all taxes that had not been paid for five years previous.
Now you can see, gentlemen, what will be the effect of this
proposed action. Not so much the effect of legislation, because that would be threshed out, and in some way or
other a method will be made clear by which we can pay the
money but such an agreement as is here suggested is one of
New York is the
great peril in a majority of the States.
most liberal in her construction of this law. A recent decision says that the gift of a bank book, the mere turning over
of a bank book to another person, is an evidence of gift, and
that the money belongs to that person. The State of Massachusetts, to which we look for safe and conservative laws
both in banking and in insurance, holds the reverse on that
subject, diametrically opposed to that ruling of the New
York Court. Now let us out of thL matter of agreement
;
am
not prepared to say whether this can
be legally enacted, but if we look at the desire of the depositor we will have it enacted.
know what the depositor wants when he deposits the money.
We know that
he wants it to go to the survivor, because he tells us so.
Why can we not have laws passed to make that good? Of
course if it cannot be done that ends it, but „it appears to me
that if we can do the one thing we can do the other, and
that one is as necessary as the other and that they can be
:
157
168
BANKERS' CONVENTION.
and legislation find something that
will enable us to pay an
account without subsequent risk.
We realize that if a man
a
° D hiS commercial ac «>unt
and he dies before
?h«r\
°i is presented
tha check
and knowledge of the fact of his
6S
baDk the Check Wil1 not be
Snored.
Now thT
l
the m ° ney D deposit he
°
t^
check,
n! Ynt^lTZ t^
the
Sh0uld SO to the person in whose
h check was T***
favor the
drawn, but the bank pays it out
at its
Peril if lt pays the check
after notice of the man's death
CanDOt C0DCeiVe that the form
of agreement suggested
hprl'h
here
by our committee can change
the law with
?\
*™
'
?f
reference to
hold that the only safe way is
that
which Mr. Paton has laid the
lines for.
It may not be in
these trust accounts.
L7Tn
I
^ ^ "^M^ton
^ ^ «*
If-*
Hanhart
arf aa unit in their intention
are
al^r
*""*"•
f
lin°e
«
and the only difference
'
in
is
I
Mr. Wilcox: Mr. President, I do
not think we can agree
upon a form of phraseology which
can be made efSuafL
the same sense in every State.
In the first place, we shou
d
have to agree upon the form of
phraseology, and then W e
should have to make sure
that the interpretation of
tie
words we agreed upon would be
the same in all
the courts of
he different States.
see how the courts have
construed
the ordinary trust account
differently in different
States
I
think the most that can be
accomplished is perhaps a r'eso
lution that each one shall
try
We
have enacted in his own
CaD bC PUt iDt0 effect in that
J
WG CaD g6t aDy Uniform act ion.
Perhans in th
1 1
8 eiP6rienCe Wil1 elucidate
^e
subict
Ph,lad e] P hia Saving Fund
Society, chartered
\
n
h
l
ha « ^day 249,000 open
accounts on its books
y
In
V
^charter
there is a provision for
a book of appointments
which the court has upheld as
perfectly valid, and yetTo-dS
S
y ° Ut ° f USC
We
have had °o occasfon to use
it
The trust accounts have taken
its place.
In Pennsvl!
vania an ordinary trust
°
account.
A
Bin
tru
for C D
s held as a revocable
trust during the lifetime
of he Trufto
"rt'n^^'V
K
£
8 adViS6d
^pJfnTi
Sr
M
-
s s-i xtrS ^tt: z r tL
Jl^cZ^Z^^^
same
trust
but you cannot
construe it in the
ter,
^
.
way.
^^ ""* ™T*a^£
Neither can you get the courts
f
°
nere
hereTo
so as
a s to meet every
requirement of the savings institn
n S r f thG dePOSit ° rS
iD the 8ame
°
"*y
Sta t es°
r Ue
0m
a
*™?ZTnt
J
° f C° Urse We have ^nn6
it advisatlVfn^ K D SS t0
discoura
that as much as pot
si We
eioie.
At the same !time we find that- it ;„ ~
'
Z
^
J*'
?
^
^
'*
falls
"^
Upon the cour t
finally to de-
The SUrvivor «» wit
araw it butTeTi
S3y
that U belo s to him.
*
*
ThaT must b det
That protects the
**
bank.
Of course th'r Z*
to
t
It Ttl
zr
F
date
^
^
tK = ^n^t^
-
the qUestion at least
how far we ough to go out
,
6
8
f ,3W
tryiDK ^accommodate
°
epos°i ol's
IDg M t0 See that the
bank ^ protested
The i,
"
VhT^stT
T1
'
grave doubt whether the
form suggested bv the «'«
rem Maryland, Mr Bother,
W ° U,d bG UpheId because that is
just a trust
u
h
+
trUSt
lt is a trust ^nd in
the name o
I
i"
u*
somebody or his trustee, subject
to the withdrawal o
d he
the cestm que trust or
the trustee.
I do not believe our
courts would uphold that for
a minute.
I do not think
ekher fleSh fiSh f ° Wl 0r
S°°d
red herring
vT> 1 I K aDy , Dg S my C ° nC,USi0n
fr ° m this di «^°
ionT at We are ""rounded by too many
wouK^uSS.^^
'
'
'
tW
™
'
-
limitations as
th
,
o the
construction
that should be placed upon the
words
that we would adopt to
obtain a uniform form in the
elusion
We mUSt make UP ° Ur miDds
differ!
n ^lV
e d
w?, h
Wi
hB fUDdS
WMch
he wisb ed to have
t0 he&r fr0m oth
**
otner
otter parts
P art s of the
n
country on this subject.
Mr. Mitchell, of Richmond,
Virginia:
« Clemen
I
"T^
*'
drafted^; ^olution was
iDtenti ° n
man from Baltimore (Mr.
interested in
what he
said.
°f
the
^ntlemanTho
The President: This is all instructive,
and tends to teach
us gradually the methods of
protecting
ourselves, and what I
believe to be of equal
importance, the protecting of our depositors, and arranging that
upon the death of a depositor
from any
lia-
I listened to the
Rother), and
To some
I
gentt
was very much
extent the law of Mar?
° f Virginia and *°™ distinguished
Secret^ Mr Hanhart, has absolutely
Secretary,
covered this question
when he says that there can be no
legislation that will interP Perty FightS
You wouId have to repeal the
statutes off v
Virginia in order to make effective
any such
nomination as that specified in that
form there. It would not
be worth the paper on which
it was written, and while,
as
was said ,n his State you could
drive a six mule team
through the law, in Virginia you
could drive a twelve mule
team through it.
(Laughter.)
It would upset everything,
and it is utterly impossible for
you to fix up any form of
agreement that would enable you to pay
a joint account in
the way suggested without doing
so at your own risk.
know very well that where there are millionaires
vou cannot draw a will that will hold. It
seems utterly impossible
in some States at least to
make a valid will where
T*? ^ ^
ZuZ
'
-
We
you have
anything to will away.
(Laughter.)
Now, in Virginia the
law will hold, but it does not hold against
your creditors.
If you owe a man anthing, you
may leave what you please
to your wife or your heir, and all
your wife or your heir
will
inherit will be
what is left after the
and taking slices out of
shooting at
creditors get through
it
it.
Now, in Virginia
when you have a joint account, the question as to who put
the money in the bank is a secondary question.
The first
question is, to whom does the money belong, whose money
is
it?
And then if you can trace the money that was deposited
bank to ownership in any person, if you can prove that
that money belongs to that person, even though the bank
was
not so informed, the court of equity will set aside the deposit
and pay the money where it belongs, and will give the person who really ought to receive the money the benefit of the
deposit.
So I say it is utterly impossible in the State of
Virginia to pass such a proposition as that. It is very much
like the case which was referred to here by the gentleman
who spoke a few moments ago, when he said that if the bank
paid a dollar of money it paid it at its own risk, and the
heirs would come in, and before the heirs came in the credin a
would come
in.
The creditors are God's chosen people
State of Virginia.
(Laughter.)
To give you a case in point, I hope you will pardon a
little digression. A case occurred where they had a chance to
grab after a man's life insurance money. I will tell you
how it occurred. In our State the law requires two or more
witnesses to a will, provided the person does not write the
will himself; but if you can prove by testimony that the
entire will is written in the handwriting of the deceased
then it is a legal and valid will, regardless of the legal form
and the cumbersome propositions of the attorney.
Now
here was a case in which there was insurance.
You can
will your insurance money to any of your heirs and it is
free of any incumbrances.
I mean to say by that if you
insure your life for $10,000 you may owe a million dollars,
but not one dollar of that insurance money will go to pay
your creditors unless you should happen to lose your wife to
in the
whom
you will this money and get a new wife. Then if you
attempted to will this insurance policy to your new wife, if
you owed any money between the time that you lost your
one wife and got a new one, the court would rule that the
insurance money in that case would go not to the new wife
but to the creditors. They would step in and wipe out your
insurance money.
Now that is a technical way of ruling,
and of course these are legal technicalities; and when I see
you business gentlemen staggering around on legal questions,
and when I even see lawyers disagreeing on it, it is a source
of amusement to me.
(Laughter and applause.)
I suggest
that you follow what we have found to be a very safe rule,
which we always follow down in our country.
That is,
when you don't know what to do, do nothing.
NEW COMMITTEE TO CONSIDER TWO-NAME
AC-
COUNTS.
Mr. Teter I suggest that the only thing we can do is to
do what our brother from Virginia has suggested, and that
is that we do nothing this afternoon on this proposition.
We have had a very beneficial discussion on this question,
but it seems to me we have too much before us to attempt
to settle it to-day, and I was going to suggest
and perhaps
I may as well put it in the form of a motion
that we con:
t0 that c °n-
from
have been trying
to free this deposit
n.nS ffor «
bility
the debts of the deceased.
itors
nt aCC ° UDt
terZnTthV
Sh
donl
—
—
:
SAVINGS BANK SECTION.
tinue this committee or have a new committee, perhaps on
broader lines, to go on with this work.
I will make the
motion that the Chairman appoint a committee to continue
the work of reaching a satisfactory solution of the trust and
joint account questions, and that the principal duty of this
committee be to confer with members in the different States
in assisting them and in urging them to bring about such
legislation in their respective States as will be satisfactory,
and to come before this Section next year and report the
States that have made progress. Let us keep this up until
we have it all satisfactorily adjusted. New York seems to
be all right and Philadelphia reports progress.
Perhaps
some of the rest of us can do something in the next year.
The President
There was a previous motion upon
accepting the report of the committee.
Perhaps the more
proper motion would be to receive it and place it on file, and
then the motion of Mr. Teter would be in order.
Mr. Creer I make that motion, to receive it and place
it on file.
The motion was agreed to.
Mr. Teter I now renew my motion.
The President It has been moved that the Chairman appoint a committee of three, whose duty it shall be to collect
information during the coming year as to practical methods
of remedying the defects in existing laws in the different
States on this question.
Mr. Rother I suggest that the committee be composed
:
:
:
:
:
of five
members instead
of three.
The President:
Is that acceptable to the movers?
Mr. Teter: And is it understood that it includes both
trust accounts and joint accounts?
The President Both trust and joint accounts.
Mr. Teter A committee of five is satisfactory to me if
:
:
it is
to the seconder of
The President
:
of a committee of
and trust accounts.
my
motion.
the question
Then
five,
having within
is
on the appointing
its
book of that kind of forms which they sold to their members, and this publication, I think, has been very satisfactory.
We have a great many more forms than the Trust Companies
had then or even have now. Still, I think after the committee have made their selection the forms which they would
select could be printed at a cost that would probably allow
us to sell the book to our members for perhaps $12. It is
very hard to say exactly what the cost would be, but I
think such a price as that ought to cover the cost. I have
prepared a short form of resolution, and perhaps you would
like me to submit it to you to bring this matter into concrete
form.
Mr. Duff
move that
matter be placed in the hands
selection from the forms
submitted, to select such forms as in their opinion are good
ones and to devise some means of getting them before the
I
:
of a committee of three to
this
make a
members of the Section.
Mr. Flack I second that motion, and I should like to see
Mr. Hanhart, our Secretary, made the Chairman of that
:
committee.
Mr. Duff
I would make that a part of the motion that
Mr. Hanhart be made Chairman of the committee.
Mr. Hanhart I thank the gentlemen very much, but will
you permit me to offer my resolution as an amendment or a
substitute for this?
I will read the resolution as I have
written it. Of course, you can change it
Resolved, That the matter of reproduction of a selection of
the best printed forms of Savings Banks included in the collection now on exhibition at this Convention for sale to our members and others be referred to the Executive Committee with
:
:
power.
If
you leave the matter to the Executive Committee they
naming of the committee. You see this quesnaming of the committee is a little difficult. You
cannot name a committee the members of which are too far
apart.
The committee has to meet, and if the members rewill see to the
:
proposition to handle.
Would it not be wiser to
appoint a committee of three?
My experience in these
matters is that it is very difficult to secure a meeting of a
larger committee.
Mr. Rother That is satisfactory to me and I believe
that objection is a valid one.
The President : Our experience in this organization is
that a small committee is more desirable.
Of course that
is subject to the views of the Section.
Mr. Teter I made the original motion because my experience was in the same direction, but I always defer to the
difficult
:
:
I
that book be for sale to our members and to others if you
In that way, I think, you will get the best of those
forms by printing two or three or four or five of each kind.
The Trust Company Section some five years ago prepared a
choose.
scope both joint
Mr. Hanhart Before adopting this motion I would like
to say that a committee of five would probably consist of
members from different States at a great distance from each
other, which would make the meetings of the committee a
views of others.
159
now renew my
original motion for a com-
mittee of three.
The President If there is no objection it will be understood by unanimous consent that the motion is for the appointment of a committee of three. The Chair will suggest
that it is impracticable to select a committee offhand, and
doubtless it will be acceptable to the incoming Chairman,
:
under whose administration
this
committee will perform its
Are you ready for the
duties, to designate the committee.
motion?
tion of the
side a thousand miles apart, that will not do.
I think the
Executive Committee can handle this matter very satisfactorily, and it will carry out Mr. Duff's idea if the whole matter is referred to that committee with power.
Then they
can arrange such details as to ways and means as may be
necessary.
It will require some thought and consideration
on their part.
Mr. Duff That motion will be acceptable, except that I
thought it might be advisable to have some of the members
who are not on the Executive Committee taken into this mat:
The Executive
ter in order to get the benefit of their views.
Committee could work with them.
to the sense of the meeting.
Committee
I
am
is
I
would
like to leave it
If they think the Executive
the proper committee to handle the question
perfectly satisfied.
Mr. Hanhart I would also say to Mr. Duff that the Executive Committee might turn it over to a committee composed
of other members, as he suggests gentlemen who are not
members of the committee, but who would be willing to undertake this work. I will tell you frankly that it is a work
of considerable magnitude and will require considerable time.
Mr. Duff That will be acceptable.
Mr. Hanhart Then my motion covers the question prac:
—
:
The motion was agreed
to.
:
SAVINGS BANKS PRINTED FORMS.
The President Another subject which we have on our
programme this afternoon is that of Savings Banks Printed
Forms. As I have before stated, our Secretary has been
:
most industrious and efficient in the collection of these
printed forms and he will make a statement in reference to
them.
The Secretary This collection which you have all seen
have
at our headquarters is not complete by any means.
received reports from about three hundred and fifty Savings
Banks, or less than one-half of our members, but these
forms, I think, may be considered fairly representative In
their character. I would ask those of you who have not sent
your printed forms to send them to me without delay. 1
have tried to get some estimate as to the cost of reproducing these forms and I find it impracticable to reproduce them,
because it would cost too much money and probably would
not be quite satisfactory in return for the outlay. But I
would suggest this to you, that you name a committee to
pass upon these forms and to select from them, say, two or
three of each kind relating to each subject matter, and that
these selections be then reproduced and printed in a book, and
:
We
as I understand
Mr. Duff: Yes.
tically,
it.
The Chairman If Mr. Hanhart's version of the motion
acceptable to the mover and seconder that will be the
question before the house. I have no doubt that the words
"with power," being as broad as they are, would include the
delegation of power, the appointing of a committee from the
general body if that was found convenient. That will be the
interpretation of it unless the Section desires otherwise. You
have heard the motion, which is to refer the matter of the
:
is
printed forms to the Executive Committee with power. Are
there any other remarks?
Mr. Teter: There is just one disadvantage always in referring matters that come up in a general way to a committee those who have to do with the Executive Committee are deprived possibly of the benefit of so much in
the way of suggestions that we might get from other members.
At the same time I do think it would be a splendid
thing for us to have at least a few words from several of
the members with reference to their ideas about these forms.
I believe that the collection of forms which has been exhibited here has been one of the most attractive things in connection with this meeting of our Section.
hear of it on
—
We
BANKERS' CONVENTION.
180
and I believe it would be a good thing to hear a few
words about these forms and some suggestions from the
There is no question that
highly of the plan.
it be done in some shape.
all sides,
members as to the best way to handle them.
The President That would be perfectly in order and very
desirable.
Are there any remarks from any of the members
different
:
present as to these forms which are before you? I would
be very glad to hear from every one who desires to speak on
the subject.
Mr. Flack: I wish to say that I have received considerable benefit from an inspection of these forms, and I would
like to see them printed, or such of the best ones as the
committee
may
select.
The President I would suggest that perhaps Mr. Flack
means the most typical forms, because it is very hard to say
:
which are the
best.
There are so many requirements from
the different environments, owing to the difference in laws
and so forth, that I should think it would be a better guide
for the committee to select those which they consider
most
typical of the different methods of business.
To say which
of the forms are best would be rather invidious.
Mr. McKay I beg to offer a suggestion, and that is that
the excellent work done by our Secretary in connection
with
these general forms might also be extended to the
different:
forms of declarations
in the different
States, for joint
and
trust accounts.
I
think
we
are particularly rich in that
the time our worthy and beloved Executive, Theodore
Roosevelt, was Commissioner of Police in New York he
made a strong attempt to enforce the Sunday closing law
relating to saloons
this attempt was successfully carried
out for a limited period.
;
At about that time a reporter called on the President of
a large Savings Bank and asked him if he had not observed
an increase in the deposits on Monday mornings since the
enforcement of the closing law. The President, who is a
very bright and observant man, replied, " No, I have not
remarked anything of the kind." The reporter, however, insisted, r.nd asked him to make a comparison with the amount
of Monday deposits as compared with the other Mondays previous to this period. The President therefore had a statement made up making such comparison, and found that ever
since the enforcement of the Sunday closing law the deposits on Monday mornings
a large proportion of these being
—
—
from the wage-earning classes had shown a very decided
increase as compared with the previous Mondays, fairly good
proof that
many
of the
wage earners deposited that part of
wages which otherwise would have been spent
saloons and drinking shops.
I
suggestion was that that collection be
placed at the disposal of this committee that is to
be appointed, together with such legal information as can
be gathered from the several States regarding the validity
of the
different forms there used.
:
The President That is an excellent suggestion. I believe
our friend from Virginia, Mr. Mitchell, has not filed
any
declaration. Yet he apparently is in a state of despair
as to
the situation there in the Old Dominion, where
a man's
life, his property, and even his
wife seem to be in great peril
from any attempt at legal forms. If he devises a satisfactory
form I hope he will favor us with it, as well as any
others.
The question is on referring this matter to the Executive
Committee with power. Are you ready for the question?
The motion was agreed to.
:
advis-
At
matter.
McKay The
is
Regarding the value of statistics, I would like to tell you
of an incident that happened a few years ago in my own city.
their
The President:
Mr.
it
able that
think there
is
in the
often a lesson to be learned from statis-
some man should come to you and would
you give me if I supply you on the
10th of every month with accurate figures as to the total
receipts and withdrawals in all the savings banks of the
United States for the past month?" That you would give
some of your good money for it. The matter is before you,
gentlemen, if you would like to try it. Or you might, for
instance, collate on the first of January next the total receipts and withdrawals for the past year and send them to
To-day we have no
us, and we might try it for one year.
accurate knowledge as to how much money is deposited in
the Savings Banks in the United States during the year. You
get such figures in a few States, but you do not know how
much is deposited in all the United States.
tics,
say,
and
"
I believe if
What
will
Mr. Woodruff Can you tell me what proportion of the
Savings Banks of the United States are represented in this
Section?
Mr. Hanhart The Comptroller of the Currency estimates the total savings in the United States at a little over
three thousand million dollars.
I have computed the total
deposits in the banks that are members of our Section and
make the amount within a few millions, I think, of $2,250,000,000. Therefore we may say that we represent about 70
per cent, of the total deposits.
A Member When you sent out your circular on this
What
question how general a response did you receive?
proportion of the membership seemed willing to furnish
:
MONTHLY REPORT OF DEPOSITS AND WITHDRAWALS.
The President: There is another subject on the programme to-day, and that is the question of Monthly Reports of
Deposits and Withdrawals by all the Savings Banks
of our
Section, it being believed that if all could
unite in this, at
some little expense, which probably would be cheerfully
borne, the results being tabulated by States
but anonymous
as to the banks, and no separate amount being
given out as
to banks, the statistics thus obtained would
be a valuable
indication of tendencies throughout the country, which
would
be important for all the members to possess.
I do not say
that is so, but that is the opinion of many members
of the
Association.
In canvassing the matter we did not receive
by any means unanimous support for the project. The
question is whether that project shall be taken up for
discussion,
whether it shall be put into effect in some partial and experimental form, or whether we shall decide that the time
is not yet ripe and that we will await
further developments.
That question is before you for any motion, and by unanimous consent for any remarks if no motion is made. It
would be appropriate to hear first from those gentlemen who
favor this plan and who can state some of the advantages of
it.
Perhaps Mr. Hanhart will state to us more precisely
than I have stated what in general the plan is, as it has not
been discussed in the open Section.
Mr. Hanhart I do not want to detain you, gentlemen,
but if you will give me a few minutes I will tell you what
:
:
these reports?
Mr. Hanhart The proportion was about two-thirds who
were in favor of it and a third were either not in favor of
it or a few actually opposed to it.
One banker told me
that the counsel of his bank told him they had no right to
:
give these figures except to the Bank Superintendent.
As
long as this thing is not unanimous here we cannot carry it
The reports should be from all of them.
The cost of this would not be great. It would amount
out.
practically
only
to
the
postage,
or
only
a
few hundred
dollars.
Mr. Hammond Is it not true that there is a constantly
increasing proportion of Savings Bank deposits in the United
States which are going into Trust Companies and into the
savings departments of the National Banks which would not
be reached by any such inquiry?
:
:
the proposition consists of.
cash
We
propose to call for reports of
cash withdrawals made each
deposits received and
month, these reports to be sent to the Secretary, who is to
collate them, not giving the amounts for any one bank, but
merely tabulating the total. This is to be sent back before
the 10th of each month to every member of this Association,
so that in this way we can watch the trend of prosperity or
otherwise in the United States.
It involves an enormous
amount of work every month. The Secretary will receive
some fifteen hundred reports, collate them and send them
forward. This proposad, if carried into effect, will necessitate
a great deal of work. I am sorry that the proposer is not
here, but he was unable to come.
He seems to think very
Mr. Hanhart
:
We
have in our membership 153 banks
that are Trust Companies and Savings Banks also, and they
would report to us only their savings deposits in those banks.
I would ask them to give the figures of the savings department only and not of their general commercial business.
Mr.
Hammond:
Banks are putting
no report of
Mr.
In
Michigan a great many National
departments and we would get
in savings
that.
McKay
Inasmuch as two-thirds of the members of
the Section seem to have expressed an interest in this matter, I move that the Secretary be instructed to put this
plan into operation in an experimental way, and that if
after the experiment has been tried to reasonable extent
it
:
does not seem to be successful
it
then be dropped.
::
:
BANK SECTION.
SAVINGS
would like to second that motion.
I would like to have the gentleman supIs this experiment which
ply one blank in his proposition.
is proposed to be monthly or quarterly or annually?
Mr. McKay My idea was for monthly reports. I have
been considering whether the quarterly reports might not
answer the requirements fairly well. Still, I am inclined
to think monthly reports would be better.
Mr. Flack
I
:
The President
:
:
The President
Of course
:
the
information
would be
fresher.
Mr. Parker
It
seems
me
would be
the
project is carried out, that you should go back and include
the deposits and withdrawals for the past year month by
month. I can see that the statistics would be of value in
this regard, that they would prove the movement of money
:
to
it
well,
if
and out of Savings Banks during years of prosperity and
time of financial crises and in years subsequent to a
monetary revulsion. Our panics are more frequent, expensive and disastrous than those in any other country under
the sun, and these statistics would prove, at least to some
extent, the cost to the small depositor, then out of work, and
also prove the accumulation under prosperous conditions.
in
in the
Mr. Creer In order to make the tabulated statement as
valuable as possible I wish to suggest that there be included in it not only the deposits and the withdrawals by the
month, but the total deposits of the institution at that time
and the number of accounts, thus giving us the amount deposited, the amount withdrawn, the total amount on deposit
at that time and the number of depositors, and therefore giving us the amount deposited per capita in each of the States.
whether (hose only are included which have straight savings
accounts.
The President
think that would be left to the diswhat proportion of their
accounts were bona fide savings accounts.
Mr. Taylor In some States a bank can be organized
under the Trust Company laws to do a Savings Banks business also, and in that case the savings accounts are savings
accounts pure and simple and have nothing to do with the
Trust Company accounts, being kept entirely separate.
The President: This suggestion
will
The President
by Mr. Latimer.
do not think you will find very
people who will doubt the value of these statistics.
:
Mr. Latimer
:
THANKS TO OFFICERS.
Mr. Burns
Tfrxolrrd,
:
:
It
:
is
a motion in the nature of an amend-
ment.
Mr.
Hammond
:
members
Is this to be confined to
he
confined
municated
to
I think the understanding
:
in
:
THANKS TO WASHINGTON BANKERS.
Mr. Taylor
Prro7'-r'l_
I offer the following
:
That the thanks of
+h's Corvpyfiou be tpno'erpfl to
the Washington bankers for thpir very courteous reception and
entertainment.
The motion was unanimously agreed
to.
NOMINATIONS AND ELECTIONS.
Mr. Hoyt
:
Mr. President, I
nomina-
offer the following
tions for the ensuing year:
For Chairman
:
Edward
E. Duff, Vice-President People's Sav-
ings Rank. Pittsburg. Pennsylvania.
Vice-Chairman
Savings Institution.
G.
:
New
Byron
Secretary
Latimer.
years
Trving
Tork.
For three members of Executive Committee
serve three
to
:
Colesbury Pnrves, Prps?rlpp + Philpriplphia Saving Fund
C.
1
Phi!artp]pb ; a.
SopiPtv.
of this
John
1.
Fiack.
F.
Ppnnsvlvnnifi.
them, that the information
them.
to
is
that
to
it is
to
be com-
Pnnk, Omaha.
Sarin"";
Nebraska.
T.
3.
H. .Tohnsop. r^shier Peninsular Savings Bank, D°troit.
V'ppfgan.
The President
:
You have heard
The
these nominations.
newspaper reporters have heard that there was going to be
a fierce contest for the
offices
explain the absence of the
from the
list
elected.
(Laughter.)
by saying
of this Association.
name
it is
of your present
I will
Chairman
simply because he could not be
It is not because of
bition or desire on his part.
is
City
President
Section?
The President
way
,
Mr. Creer Are we to understand that the motion of Mr.
Latimer is a substitute?
The President
this Convention be extended to
The President Will Mr. Burns please put that motion.
The motion was seconded, and the question being put by
Mr. Burns it was unanimously agreed to.
\
r»poomber of those yenrs
rnte of interest paid dpposito>- s p^ri
such other information as the Expcntive Committee mny »1op>n
appropriate.
These figures to be collated by the Secretary in
totals for each State, stomps of States and total for thp United
states, and forwarded to the members for fheir information, the
Executive Committee to have power to require such statements
at intervals as they may cippm advisable.
That the thanks of
which they have discharged their duties.
member
:
I offer the following
:
the officers of the Section for the efficient and faithful
For
That fhe Secretary be instructed to forward to
of the Section in December next a printed blank
form asking for the following information from their bank
total deposits and total withdrawals for the years 1f>03. 100
rm<i 1005: amount of deposits held by the bank on the 31st of
res-
the Section previous to the election of officers?
When
ResnlrrrJ,
each
on adopting the
The motion as amended by the substitute of Mr. Latimer
was agreed to.
The President Is there any other business to come before
I offer the following
:
is
proposition as amended.
we
crop reports and various statistics of this kind, it is certainly more essential that we should know the condition of
things that produce the crops and how they grow. In reference to the time when these reports should be published it
might be wise to start out with quarterly reports, and then
if members contribute liberally to the support of the project,
and if the information is found to be thoroughly desirable,
then there could be monthly reports. It would he more in
the nature of an experiment the first three months possibly,
and then it might be made monthly afterward.
on the substitute offered
is
olution which has been substituted, or, in other words, on the
many
stop to consider the great amount of money that the
Government expends in getting up weather reports and
The question
:
The substitute was agreed to.
The President The question now
doubtless be utilin charge.
I
:
I
:
by the committee which has the project
Mr. Fowler
:
cretion of the institution to decide
:
ized
161
Our
any lack of am-
constitution
makes your
present Chairman ineligible as a candidate, and I beg to
thank you for the provision of the constitution which
Mr. Hammond Would it not be better to ask for information from other Savings Banks or from Trust Companies
that receive savings deposits and from National Banks that
:
lieves
What
me from
is
re-
the cares of this office for the following year.
your pleasure as to these nominations?
Shall the
nominations be closed and a ballot be taken?
receive savings deposits?
The President
:
If they are
members of
and they will receive the information but
they have not interest enough to do that, then we doubt
whether we could ever interest them in this project. No
doubt some of them will join for the very purpose of getting these statistics, and that will be desirable.
will be reached
Mr. Hulbert
this Section they
;
if
Mr. Woodruff Several institutions have been spoken of
which are both Savings Banks and Trust Companies. I
should like to inquire whether those are to be included or
:
I
move that the Secretary be
instructed to
cast one ballot for the officers nominated.
The President That motion requires a unanimous vote.
One negative vote will make it necessary to take a ballot.
The motion was unanimously agreed to and the Secre:
tary cast the ballot as directed.
:
The President
to
:
Gentlemen, I take pleasure in introducing
you Mr. Duff, your President-elect,
who
I
am
sure will
BANKERS'
162
the office with great credit to himself and benefit to the
Section.
(Applause.)
CONVENTION.
fill
President Duff
am
not going to
Members of the Savings Bank Section, I
make a speech. I simply want to thank
:
you for the honor conferred upon me, which I consider a very
great one although I have a good many gray hairs, I think
that an older member of the Association in point of years
;
should have been honored with the office. I will, however,
endeavor to perform the duties of the office to the best of my
ability with the assistance of the other members and our able
Secretary.
(Applause.)
My
come before the Association?
The Secretary
:
No, Mr. President, the Secretary knows
The President We have been requested to pose for a
photograph of the members of this Section immediately after
:
its
adjournment.
for a
If there is
no other business we are ready
motion to adjourn.
On motion
at 4.15 p.m. adjourned.
& Co,
NEW YORK
Deposits Received Subject to Draft*
cAct as Fiscal
to
Secretary, have you any
'Bankers
Securities
business
of no other business to present.
CEDAR STREET,
Interest
other
other business to present?
Winslow, Lanier
59
there any
Is
Allowed on Deposits*
Bought and Sold on Commission*
and Transfer cAgents.
cAlso as cAgents for Corporations, for the
dividends.
payment of
interest
FOREIGN EXCHANGE, LETTERS OF CREDIT.
and
The Girard National Bank, Philadelphia
CAPITAL,
$2,000,000
SURPLUS and PROFITS
2,842,000
DEPOSITS
FRANCIS
THEO.
31,300,000
REEVES, President
RICHARD L. AUSTIN, Vice-President
WIEDERSHEIM, 2d Vice-Pres't
JOSEPH WAYNE, Jr., Cashier,
B.
E.
Accounts of Banks, Bankers, Corporations, Firms and Individuals Invited.
Zhc Gbase
National
Bank
OK THE
YORK
OK
CITY
BiEW
HOUSE
CLEARING
(AUGUST
BUILDING
25, 1905.)
$1,000,000
4,643,582
Capital
....
Surplus and Profits (Earned)
Deposits
A. B.
E. J.
S.
62,948,975
HEPBURN,
A. H.
STALKER,
C. C.
MILLER,
H.
President
Cashier
Asst. Cashier
H.
WIGGIN, Vice-President
SLADE, Asst. Cashier
K.
TWITCHELL,
Asst. Cashier
DIRECTORS.
GRANT B. SCHLEY
GEORGE F. BAKER
CANNON, Chairman
OLIVER H.PAYNE
JOHN I. WATERBURY
H. W.
JAMES J. HILL, St.
A.B.HEPBURN
A. H. WIGGIN
Paul
Accounts of Banks, Bankers, Corporations, Firms and Individuals received on favorable terms.
THE NATIONAL
PARK BANK
OF NEW YORK
ORGANIZED
ORIGINAL CHARTER 1829
THE
GALLATIN
NATIONAL BANK
1856
OF THE CITY OF NEW \0RK
Capital,
.
-
CAPITAL,
Surplus and Profits
Deposits,
August
$3,000,000.00
-
7,221,597.32
25, 1905
98,562,483.20
President.
G. THORNE.
Vice-President.
JOHN
VAN
JOHN
C. McKEON,
Vice-President.
C.
CLEAF,
Vice-President.
EDWARD
J.
BALDWIN,
Cashier.
WILLIAM
O.
JONES,
Asst. Cashier.
FRED'K
O.
FOXCROFT,
Asst. Cashier.
OFFICERS
GILBERT
FISH,
Vice-President.
WILLIAM
A.
MAIN
Asst. Cashier.
MAURICE
$1,000,000
2,200,000
-
SAMUEL W00LVERT0N,
ALEXANDER H. STEVENS,
GEORGE E. LEWIS,
HOWELL T. MANSON. -
RICHARD DELAFIELD,
STUYVESANT
-
SURPLUS AND PROFITS,
H.
EWER,
Asst. Cashier
163
President.
Vice-President.
Cashier.
Asst Cashier.
DIRECTORS
ADRIAN ISELIN,
THOMAS DENNY
W. EMLEN ROOSEVELT
CHAS. A. PEABODY
FREDERIC W. STEVENS
ALEXANDER H.STEVENS
SAMUEL W00LVERT0N
CHARLES H. TWEED
JR.
XLhc Commercial anb ^financial
Cbronicle*
THE CHRONICLE
88 pages, published for the
earliest mail every Saturday morning, with latest news by telegraph and
cable from its own correspondents relating to the various matters within its scope.
a weekly
is
newspaper
of 72 to
SOME FACTS WORTH KNOWING.
1.
The Chronicle has the largest circulation
Journal in the United States.
among
Investors of any Financial and Commercial
has the largest list of subscribers of any similar Journal among (1) Banks and other Finan(2) Railroad Officials, Managers and Agents; (3) Bankers, Brokers and the larger
Merchants; (4) Cotton Commission Houses and Producers, it being a recognized authority on cotton the
world over; (5) Dealers and Investors in Municipal Securities, and State, City and County Officials;
2.
It
cial Institutions;
and
(6) Investors
3.
It
has
and moneyed classes generally.
much
the largest circulation
among
investors and financial institutions in Europe of any
American Journal.
has likewise a substantial and representative list of subscribers in every important Financial or Commercial centre not only of Europe but of the World.
A unique feature of the Chronicle is its
4.
It
FOUR EXTRA SECTIONS
The
.
RAILWAY AND INDUSTRIAL SECTION,
180 pages, issued quarterly, on the last Saturlatest available information respecting the
property, stocks, bonds, earnings, dividends, interest payments, &c, of every Steam Railroad of importance and of the leading Industrial Corporations, &c, in the United States.
2.
The STATE
CITY SECTION, of 196 pages, issued semi-annually, in May and
November, containing among other things, about 3,000 detailed reports of the indebtedness and general financial condition of States, Counties and Cities
also digests of laws relating to investments,
by Savings Banks, &c.
The STREET RAILWAY SECTION, of about 100 pages, issued in February, June and
3.
October, containing a complete description of Street Railways in the different cities of the country,
1.
day of January, April, July and October, containing the
AND
;
bondtd indebtedness, earnings, &c, &c.
The BANK AND QUOTATION SECTION, a monthly publication of 64 pages, issued the
4.
first week in each month, giving the most complete and comprehensive tables of Quotations ever
issued, embracing prices of Railroad Bonds and Stocks, Bank Stocks, Municipal Securities, Street
Railway Stocks and Bonds and Miscellaneous Securities.
Besides these added Sections, others are issued from time to time like the present BANKERS'
their slock, dividends,
AND TRUST SECTION.
A FURTHER NOVEL FEATURE
that the publishers of the Chronicle
for any of these extra Sections, but give them all to the Chronicle subscribers.
is
make no charge
keep informed with reference to their investments,
Buyers and Sellers of Bonds and Stocks of Steam Railroads,
Investors wishing
to
Buyers and Sellers
Buyers and Sellers
EACH
TPDM ^
•
i
'
I
and
all
Bonds and Stocks of Street Railways,
of Bonds of States, Cities, Towns, &c,
need the CHRONICLE and its added SECTIONS.
^ or
^e
For
all
of
United States, Canada and Mexico, including
all
the Sections,
other foreign countries, including postage and
all
Sections,
$10
13.
N. B.— No subscriptions are taken for any of the extra Sections apart from the Chronicle, and
no einglt copies of the Sections are sold, as only a sufficient number is printed to supply subscribers
of the Chronicle with one copy of each issue.
File Covers.— A file cover or binder to hold the current numbers of the Chronicle and its extra
Sections for one volume (six months) is sold at the office at 50 cents, or sent by mail for 68 cents,
which includes the postage.
WILLIAM
B.
DANA COMPANY,
Pine Street corner Pearl Street,
:
164
New
Publishers,
York.
$500,000
Surplus and profits, $400,000
Capital,
Union Zvn&t Company
OMrrriJ
D.M.FERRY,
w. c. McMillan.
ELLWOOD T. HANCE.
A. E. F. WHITE.
President
Chairman Executive Committee
.
I
»t
Vice-Pres. and Treas.
2nd Vice-President
.
CHARLES MOORE.
GERALD J. McMECHAN.
CHARLES R. DUNN.
Secretary
Assistant Secretary
Auditor
.
HOBART B. HOYT.
THEODORE LUCE.
Trust Officer
Bond
Jr..
Officer
f.
j.
nf Strrrtnra:
elliott
geo. h. hopkins
charles l. palms
whitney
white
chas. stinchfield
j. d. standish
george
h.
d. c.
philip h. McMillan
lem w. bowen
herbert e. boynton
barbour
McMillan
HENRY RUSSEL
w.
slocum
h. newberry
charles a. ducharme
harry a. conant
hugh McMillan
f.
t.
truman
hecker
a. e.
.
.
Stoarfc
.
.
UNION TRUST BLDG DETROIT
FERRY
D. M.
.
c.
ellwood
GEORGE HENDRIE
t.
hance
Bank
State Savings
DETROIT, MICH.
SURPLUS AND PROFITS, $875,000.00
CAPITAL, $1,000,000.00
DEPOSITS, $14,500,000.00
Commercial and Savings Departments
Well Established Collection
Facilities
Correspondence Invited
OFFICERS
GEO. H. RUSSEL,
President
Jr., Vice-President
E. WING, Ass't Cashier
POTTER,
AUSTIN
H. C.
E. A.
R. W\ GILLETT, Vice-President
R. S. MASON, Cashier
H. P. BORGMAN, Ass't Cashier
SUNDERLIN,
Auditor
BOARD OF DIRECTORS
R. A.
Alger
R. W. Gillett
T. H. Newberry
W. T. Barbour
Frank J. Hecker
w. K. BlXBY
Henry RUSSEL
H. c. Potter,
H. M. Campbell
Jr.
W
C McMillan
Hugo Schkrer
H. B. Ledyard
Geo. H. Russel
Jas. H. Eckels
C. L.
R. S. Mason
Peter White
Freer
WHITNEY,
ESTABLISHED
W.
I.
STEPHENSON
John D.Nicholson.
Mustin.
& COMPANY
& Co.
Geo. B. Hill
244
1868.
FOURTH AVENUE
PITTSBURGH,
Banhers and BroKers
PA.
Ground
Floor
Frick
Building-
Dealers in
Pittsburgh, Penna.
StocKs
and
Bonds
Members
PITTSBURGH
and CHICAGO
P.O. Box, 1093.
Cable Address,
"Burton,
Bell Telephones
P.
&. A.
"
NEW YORK
Pittsburgh."
StocK Exchanges
781-782 Court.
781
Main.
Members Pittsburgh Stock Exchange.
Members American Bankers' Association.
Oldest Pittsburgh
165
Members
New
York Stock Exchange.
THE OLD NATIONAL BANK
GRAND
MICHIGAN
RAPIDS,
Our
reputation for prompt collections in
MICHIGAN
is
well
known
Largest and Oldest bank in Western Michigan
...
Capital Stock,
$
....
800,000.00
Surplus and Undivided Profits,
Deposits,
466,190.65
4,241,518.93
GRAND RAPIDS NATIONAL BANK
The
Corner Monroe and Ottawa Streets
CAPITAL, $500,000.00
DUDLEY
CHAS.
S.
WATERS,
HAZELTINE,
E.
SURPLUS AND PROFITS, $125,000.00
JOHN E. PECK, Vice-Pres.
FRANK M. DAVIS, Cashier
President
Vice-Pres.
JOHN
JOHN
L.
BENJAMIN,
D.
MORTON,
Ass't Cashier
Ass't Cashier
REPORT OF THE CONDITION OF THE
GRAND RAPIDS NATIONAL BANK, Grand
At tbe Close
RESOURCES
loans
IT. S. Bonds
$2,331,401 10
350,000 00
Premiums Paid
1
Furniture and Fixtures...'."
U e fr °
Ca s h
of Business,
7,500
(HI
28,500 00
686.748 52
m Bank8
Rapids, Michigan
August 25, 1903
« nn /w, m
Capital Stock paid in
Tnriivirierl Profit's.'.'.'
Pr«fl»G
Surplus and Undivided
1XJ vS5
Circulation.
It!
342,000 00
2,509,178 35
Deposits
-
RedemptVon'Fund\\\\\\\\\\\V.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'."'.'.'.;
'iT'jjOO
.
00
$3,485,71 4 45
Capital National
Bank,
THE
MICHIGAN
INDIANAPOLIS, IND.
TRUST
V^O.
$3,485,714 45
Capital,
$500,000
of
Grand Rapids, Mich.
Surplus,
CAPITAL,
-
$200,000.00
.
-
Additional Liability of Stockholders
Surplus
and Undivided
$150,000
200,000.00
Und
140,000.00
Profits,
Deposited with State Treasurer,
100,000.00
Profits,
DIRECTORS
WlLLARD BARNHART
James M. Barnbtt
Darwin D, Cody
W. W. Cummbr, Cadillac
E. Golden Filer, Manistee
F.
A.
Gorham
Thos. Hume, Muskegon
Thomas Hhfferan
Harvey J. Hollistbr
Henry Idema
S. B.
Wm.
$70,000
Jenks
Ju dson
Boyd Pantlind
i dward Lowe
Wm. G. Robinson
Samuel Sears
Wm. Aldbn Smith
Dudley E. Waters
T. Stewart White
Lewis H, Withby
OFFICERS
Frank
WITHEY. Prest.
WlLLARD BARNHART,
Andrew Smith,
Vice-President.
H.
ist
L. Powell,
President.
OFFICERS
LEWIS
:
Vice-Prest
HENRY IDEMA, 2nd Vice-Prest
F. A. GORHAM, 3rd Vice-Prest
GEORGE HEFFERAN, Secy.
CLAUDE HAMILTON, Asst.
Hiram W. Moore,
Cashier.
Gwynn
Secy.
F. Patterson,
Asst. Cashier.
Acts as Executor, Administrator, Guardian, Trustee
Receiver, Assignee, etc. Loans Money on Real Estate
and Col lateral Security.
Takes entire charge of Property
Audits books. Has High Grade Bonds and other Securities
Accounts of Banks, Bankers, Firms, Corporations
and Individuals respectfully solicited.
With a direct account in every county in Indiana,
we are especially prepared to handle your checks and
collections at very low rates.
for sale.
106
!
COMPANY OF
THE AUDIT
ILLINOIS
J
MARQUETTE BUILDING-CHICAGO
171 La Salle Street
ACCOUNTANTS
PUBLIC
AND
AUDITORS
CHICAGO
Regular and Special Audits made for Corporations,
Firms and Individuals.
Financial and physical ex-
aminations by experienced Auditors and Engineers.
Takes
entire
charge of accounts for
Trustees, Executors and Receivers.
and private records.
tion
pany
will be
found useful
Keeps corpora-
Certificates of this
Com-
Municipal and Public
as a basis for credit, pur-
Correspondence
chase or sale.
DEALERS IN
Guardians,
solicited.
Service Corporation
DIRECTORS.
A. G.
F.
BECKER,
W. LITTLE,
Peoria,
G. A.
J.
R.
L. A.
A. G. Becker
&
Co., Chicago.
Vice-Pres't Peoria
Gas and
Elec. Co.,
BONDS
111.
RYTHER, Cashier Nat. Live Stock Bank, Chicago.
WALSH, President Chicago National Bank.
WALTON,
Vice-Pres.
The Equitable Trust Com-
pany, Chicago.
OFFICERS.
L. A.
WALTON,
F.
President.
W. LITTLE,
C. D.
ORGAN.
C.
Devitt,
WRITE US
Vice-President.
Sec'y and Treas.
W. KNISELY,
C. P.
A. Manager.
YOU WISH TO BUY
OR SELL.
IF
Tremble & Co.
W,
BANKERS
MUNICIPAL
B.
McKeand
&
So.
COMMERCIAL PAPER
CORPORATION
AND
CHOICE ISSUES OF
INVESTMENT SECURITIES
AND ELECTRIC COMPANIES AND
ELECTRIC POWER BONDS
SEND FOR SPECIAL CIRCULARS
b% GAS
THE ROOKERY
FIRST NATIONAL BANK BUILDING
CHICAGO
167
CHICAGO
THE EQUITABLE
TRUST COMPANY
MONROE
152
CHICAGO.
ST.,
SURPLUS, $500,000
CAPITAL PAID UP, $500,000
Acts as Trustee for Corporations, Firms
and Individuals and as Agent for the
registration and transfer of bonds and
stocks of Corporations and the payment
of coupons, interest and dividends.
INTEREST PAID ON DEPOSITS.
DIRECTORS
William Best
Fred.
Maurice Rosenfeld
F, M. Blount
John M. Smyth
McNally
J. R. Walsh
L. A. Walton.
C
OFFICERS
J.
C
R.
D.
WALSH,
ORCAN,
President
L.
Sec. and Treas.
J. F.
A.
WALTON, Vice-President
NEIL, Assistant Secretary
NATIONAL BANK OF
c OMMERCE
IN ST. LOUIS.
Capital
Surplus
Profits
$15,000,000
ACCOUNTS SOLICITED.
3% INTEREST PAID ON TIME DEPOSITS.
168
J.
P.
MORGAN & CO
Domestic and Foreign Bankers,
Wall
St.,
cor. of
NEW
DREXEL &
Broad
YORK.
MORGAN, HARJES &
CO.,
Cor. 5th and Chestnut Streets,
31 Boulevard
PHILADELPHIA.
Securities
St.,
CO.,
Haussmann,
PARIS.
Bought and Sold on Commission.
Interest
Allowed on Deposits.
Foreign Exchange.
Commercial
Credits.
CIRCULAR LETTERS FOR TRAVELERS, AVAILABLE IN ALL
PARTS OF THE WORLD.
ATTORNEYS AND AGENTS OF
Messrs.
J.
S.
Morgan &
No, 22 Old Broad Street, London.
Co.,
CAPITAL AND SURPLUS, $2,700,000
During
the fourteen years
aimed to conduct an
not only in the
of
its
management of
existence the
institution meriting the
manner of handling
also in the deeper
RESOURCES,
stability\
the minor details
and it now
this
Bank
has
approval of discriminating bankers
of
and more important matters which are
of success, insuring
$21,245,017.
its
daily service, but
the essential elements
believes that
The National Bank of the Republic of Chicago
is
better than ever qualified, by reason
policy, to care
service
and
the active
for
and
of
its
thorough methods, facilities
reserve accounts of bankers
appreciate it; and, in inviting an opportunity
such bankers on
books, it undertakes to extend to
its
to
A.
LYNCH
W.
FENTON
put the names of
institution.
McKINNEY
R. M.
T.
Vice-President
President
who want good
them every consideration
which can be secured through any carefully conducted banking
JOHN
and
Cashier
•
THE CHICAGO NATIONAL BANK,
No. 152 Monroe Street,
CAPITAL $1,000,000.
CHICAGO.
SURPLUS
This bank Is fully equipped
of banks, individuals, firms and
fully invites correspondence or
those who contemplate making
accounts.
$1,000,000.
to care for the accounts
corporations.
respecta personal interview with
It
changes or opening new
DIRECTORS:
F.
WILLIAM BEST, MAURICE ROSENFELD,
M. BLOUNT, FRED. G. McNALLY, J. R. WALSH, C. K. G.
BILLINGS,
JOHN
OFFICERS:
Pres'tjT. M.
J. E.
SHEA,
M.
J.
SMYTH.
R. WALSH,
JACKSON,
President; F. M.
Cashier; F.
W. McLEAN,
BLOUNT,
Vice-
Ass't Cashier;
Ass't Cashier.
\
1
@FedFRASER