[Volume XXV
THE CHICAGO BA X K E R
14
Comment
Editorial
banking in Wisconsin, where the general banking act is so satisfactory, and where safe and sane banking is the almost universal rule.
W
A Treasury Call Inevitable
A second call upon nationals by the treasury department would seem to be inevitable. The treasury department closed the fiscal year with a deficit of $24,868,544, which is a situation even less favorable than had been anticipated. When it is considered that nearly $5,000,000 in Pacific Railroad payments was sent in in advance and operated as an “extraordinary receipt,” it is seen that the true deficit on the operations of the month was approximately $30,000,000; experts figure that there will be an August deficit approximating $20,000,000.
On this basis it may be positively anticipated that there will shortly be a new treasury call for deposits. This call could not well be deferred till the crops begin moving actively and in order to get the money in before that period it would have to be asked for very shortly. The amount expected to be called is not less than $30,000,000. The figure probably would not be estimated so high were it not for the fact that Secretary Cortelyou after calling about $45,000,000 some time ago finally reduced his call to some $34,000,000, in order to relieve banks which were engaged in moving certain classes of crops. The reduction of government deposits was therefore not as great as was actually desired by those who were carrying on the operation and it is supposed thac this will enlarge the call to be made shortly.
The amount on deposit in the banks to the credit of the treasurer of the United States is nearly $119,000,000. All this makes the outlook for prompt action on the Spanish war bonds less favorable than had been expected.
Some Presidential Year Conditions
Over confidence has lost many a battle in war, finance, politics, athletics, and the fact that Mr. Taft contends with a twice defeated candidate is likely to be misleading. There are difficulties in the campaign, already developed. Mr. Hitchcock has conferred with the republican leaders of the West and Middle West, and returns to the East loaded with information gathered during his journey. Wise manager as he is, his conclusions are not made public by him. Other men have attended the councils, however, and other observers are reporting on that great heart of the country lying between the Ohio River and the summits of the Rocky Mountains. These other men are not backward in stating that there is much to alarm the gentlemen desirous of the election of Mr. Taft.
When Ohio republicans admit there is danger to the state ticket, and claim no danger
Uhe
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Trust Companies in Wisconsin
Wisconsin does not permit membership in its bankers association for trust companies, and in some respects the relations between the two forms of banking in that state are strained. It was so in Xew York for several years but the problem finally was solved by the new banking legislation passed under pressure from Governor Hughes at Albany. At the Milwaukee convention the Wisconsin Bankers Association again adopted resolutions aimed at the so-called trust company evil which has for several years been a bone of contention in the association. This resolution instructing the committee on legislation, of which J. K. Ilsley is chairman, to continue its fight for legislation which shall define and regulate trust companies in the state of Wisconsin, reads as follows, and which was finally adopted by the convention:
“Resolved, That, as the trust company situation in this state has not been settled as yet on a satisfactory basis, your committee recommends that the committee on legislation be instructed to look into this matter before the next meeting of the legislature, with the view of obtaining legislation that shall be fair and equitable to both the banks and the trust companies, and that said committee be given authority to increase its membership if it shall deem it necessary for such purpose.”
In speaking to the resolution A. J. Frame said:
“It has come to the knowledge of your committee that there are trust companies doing business in this state, particularly in the city of Madison, in a wagy that it is claimed is unfair to the banks. In Madison, especially, there is said to be a trust company paying 4 per cent to checking depositors, and compelling banks there to do the same or not get the deposits. The trust companies in New York practically caused the trouble of last fall and to-day we are suffering for some of their doings. We must not attempt to annihilate the trust companies ; we must treat them fairly, but we must put them in a position where they cannot do an injustice to the banks.”
The discussion was general and it was declared by one speaker that a certain trust company in Madison pays 6 per cent for straight deposits. The vote was unanimous. There are indications that a bill can be prepared which will harmonize the two great forms of
Our Junketing Currency Commission
The sessions of the congressional currency commission at Narragansett Pier are ended. It was a pleasant enough place and the table d’ hote was exceptional but some of the members preferred a trip abroad. This had been foreseen by the able Mr. Aldrich and in the act it was made optional with the commission whose bills are to be paid by the treasury “without recourse.” The commission as a body adjourned to meet at Washington, November 10th, and it is as a subcommittee that the members will journey abroad. So far as now is known this subcommittee will consist of four senators and four representatives, with Mr. Aldrich at their head. In a statement graciously given out to the public it is said to have been “deemed of the utmost importance to secure a thorough and as nearly as possible exhaustive examination of the monetary and banking systems of the leading commercial nations.” Consequently this subcommittee will “seek to secure from competent and authoritative sources all available historical and statistical data with reference to the currency and banking experience of Great Britain, Germany, and France,” with side glances at some other countries.
There is no occasion for an exploring expedition for original research to gather such “historical and statistical data.” There is an ample supply of it kept right up to date available in this country and at the command of any student of the subject. Why not have consulted Andrew J. Frame, G■ E. Roberts, J. B. Forgan, John L. Hamilton, Joseph T. Talbert, or others who might be named? No doubt the Library of Congress is well supplied with it. So far as light on our currency problem is concerned there is not the slightest advantage in going abroad to secure this kind of information at first hand. But it will no doubt be an enjoyable junket for these eight statesmen, of whom only two are of the political minority. They will doubtless receive distinguished consideration at London, Berlin and Paris, and such other capitals or financial centers as they may visit, and see and hear interesting things, which will be pleasanter than studying them up at home. It is to be hoped that it will be no less instructive. The government will foot all the bills which Chairman Aldrich may audit and order to be paid, and he will not be stingy about it. Perhaps these junketing gentlemen may learn something new to them about “the monetary and banking systems of the leading commercial nations,” but we may be sure that they will acquire no information that is not already familiar to some scores of experts in this country.
The money junketers ought to have a public reception (bills to be paid by Aldrich) when they return from their arduous(?) foreign trip.