THE CHICAGO 'BAWK.E'R
Founded in 18 9 8
Volume xxv	CHICAGO, AUGUST 1, 1908	Numbers
Banking Conditions in Colorado
beneficial. The wisdom of this former course is not questioned. We all know how difficult it is to secure consideration and legislative action solely on its merits, and free from personal prejudice or political interest.
Some legislation, however, will be needed next winter, in the way of slight amendments to out-bank supervision law. Also if the revenue laws are revised as proposed, we shall need to see that any provision for bank assessments is made uniform and equitable. Our present banking laws enacted at different times during the course of many years, are in some respects, incomplete, ambiguous and conflicting.
Eventually they should be revised to form a well arranged, concise, and comprehensive general banking law, a guide and regulator for the banker, the bank commissioner and the courts, protecting alike those engaged in the business and the public whom they serve.
I cannot close without a note of cheer.
The vast banking interests of this country have passed thro’ an ordeal more trying than this generation will likely witness again. The crisis of 1907 is now only a page of history. Already the clouds have passed, bright skies are o’er us, and the air is clearer because of the recent storm.
The past decade comprises an era of marvelous growth for our state. Our infant industries have assumed large proportions and new enterprises have sprung into existence and have been established upon a firm basis. Dormant natural resources have been developed, new highways have stretched their lines of steel across our plains and through and beyond these mighty hills, bringing nearer the distant corners of our commonwealth, opening virgin territory to settlement, creating thousands of prosperous homes on farms and in towns and villages. Nature’s storehouses have been compelled to yield abundantly in precious metals, in vast coal supplies and in the products of the soil.
A new element, which we are just beginning to reckon upon as one of our most prized assets, is the tremendous power that exists in our mountain streams which are now being harnessed and made to light our cities and homes and to turn the wheels of our manifold industries. Truly our great state is doing its share in adding to the world’s material wealth.
Let us be thankful that our lot is cast in this favored part of our land, and let us pledge our energies and our influence, not only to the development of its vast possibilities, but alike to higher standards in our profession, and to a more active interest in all that makes for good government and good citizenship. Thus shall come to us true and lasting prosperity, the approval of our fellowmen and the favor of Providence.
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New Bond Department
F. X. Bodden, treasurer of the Merchants and Manufacturers’ Association, of Milwaukee, has been placed in charge of the new bond department of the Marshall & Ilsley Bank. He was with the First National for thirteen years, and for two years has been assistant cashier of the Merchants and Manufacturers’ Bank.
V
A. L. Seever of Des Moines has purchased a controlling interest in the Dundee (la.) Savings Bank and will act as cashier.
Annual address of F. B. Gibson, president state association at Colorado Springs
you are devoting your best energies, the business of banking, has kept pace with the general development of our state, until its isolated sections now enjoy all the facilities of credit and exchange which modern banking affords.
There are now in Colorado 104 national banks with a capital and surplus of $15,000,000 and deposits of $104,000,000, 133 other banks with a capital and surplus of $6,000,000 and deposits of $23,000,000.
Although less than half our banks operate under national charter, you will note that the national banks represent 70 per cent of the capital employed and 80 per cent of the total deposits.
A peculiar feature of banking in Colorado is the predominance of small institutions. The proportion of national banks having less than $50,-000 capital is 63 per cent in Colorado as against only 31 per cent for the entire country. The state and private banks outside of Denver will average only $35,000 capital and $96,000 deposits.
Can there be a stronger argument than these figures present, for the need of such an association as this, to bring together these smaller institutions, many of them in remote localities, which exercise such an influence upon the welfare of their own communities and the state at large, and whose common interest can only be promoted and protected by organized co-operation ?
Membership
Our Association has 163 members with a combined capital of $19,760,000 and deposits aggregating $102,379,000 or 82 per cent of the banking assets of the state. Our aim should be to add to our number until our membership embraces even־ active institution engaged in a regular banking business within our boundaries.
This may be readily accomplished through the medium of the group system, which becomes operative at this convention, and which should give new life and effectiveness, to our organization.
State Banking Department
Our new banking law has now been.in force for a year. We shall learn from the bank commissioner, who is with us, some of its benefits, and from you, all of its defects.
The general results of its operations will, we confidently believe, amply justify the creation of this new branch of our state government.
Its efficiency, however, has been greatly restricted by an insufficient appropriation. With a force adequate for making semiannual examinations, keeping complete records, and following-up his rulings and requirements upon banks—and for that most important of duties—the advisory and constructive feature of his work, the commissioner can and ought to make his department of immense value to the banking and general business interests of the state.
State Legislation
Until the last session of our Assembly, the general policy of our association has been to discourage bank legislation in general, and to concern itself with the prevention of harmful enactments rather than to advocate new laws, however
A peculiar pleasure is ours in gathering to-day in this charming city. Seven years ago, by a happy choice, Colorado Springs became the birthplace of this association. By an equally fortunate selection, its pioneer banker was chosen our first President. My immediate predecessor in office is likewise an honored citizen and banker of this place. It is not surprising, therefore, that the invitation to meet here once more, was most cordial, and that our welcome has the true ring of a home-coming in its heartiness and sincerity.
The New Currency Law
The new currency measure is a step in the direction of a sorely needed reform. It has at least the merit of being valuable as an experiment, a temporary cure for the hoarding mania, optional as to use and repealable without disturbing effect.
It is gratifying to note that Colorado is represented in both the Senate and House Dranches of the Currency Commission appointed under this new law.
Eventually we shall profit by the ripe experience of older nations, and adopt the central bank system, which is both scientific and practical, and which would insure a really elastic currency and materially strengthen our entire banking system.
Guaranty of Bank Deposits
The movement in favor of a government guaranty of bank deposits has assumed such prominence that it cannot be ignored. Such a measure has, for some time, been advocated by the present democratic presidential candidate, who three }־ears ago spoke in its favor at a convention of this association.
Oklahoma, our youngest commonwealth, is the first to try the experiment with state institutions, and its experience will be watched with keenest interest.
Personally, I am strongly opposed to deposit guaranty by either state or national government. The whole idea is fundamentally wrong. It is not only paternal, but socialistic in principle. Under such a method, ability, experience and conservatism in bank management would count for naught, and the safe and prosperous institution would be forced to insure the obligations of its weak or speculative competitor.
Postal Savings Banks
There is some probability that the postal savings plan may soon be adopted. While the perfect security thus afforded will attract a large volume of deposits, yet they will comprise mostly those of small amounts.
The savings depositors of Europe, are about equally divided in number between the postal banks and private savings banks, but the amount of such postal deposits, as given in the report of the comptroller, is only 24 per cent of the total foreign savings accounts, showing that the postal system is availed of chiefly by the small depositor. The average postal savings deposit in Europe, is but $52.00 as against $429 in the savings banks of the United States. The higher interest rate paid by our savings banks, being an average of 3.61 per cent as against the proposed government rate of 2 per cent should enable our banks to retain the larger and more profitable accounts, if they are so managed as to enjoy public confidence.
Colorado Banks
That department of commercial life to which