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THE CHICAGO BANKER
August 15, iQoS']
politics. Without neglecting his own business in any way he has consistently placed himself in a position where he could be of more than ordinary use in nominating good men for public office. He has been president of the Thirty-ninth precinct of the Seventh ward, and was a delegate to the famous deadlock convention which nominated Charles S. Deneen for governor of Illinois.
South Carolina Bank Closes
Union, S. C, Aug. io.—The People’s Bank of this city closed its doors to-day pending voluntary liquidation. In a statement issued by the president, B. F. Arthur, general depression is the reason assigned for the action. It is said that depositors are fully protected.
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T. J. Collins has been elected president and Tom F. Collins, cashier, of the new Peoples State Bank of Harris, Kan., Messrs. Collins having purchased stock in the institution.
John Monroe
The Hon. John Monroe who has been in the employ of the First National of Chicago for over twenty-five years and is one of its most popular and efficient men, was elected a Republican senatorial committeeman in the primaries of August 8th for the Thirteenth Senatorial District of Illinois, That district comprises all of South Chicago, West Pullman, part of the Seventh, and all of the Eighth and Thirty-third wards. His associates will be Hon. Walter Schmidt, of the Eighth ward, a member of the board of assessors for Cook County, and Hon. Marcus Aurelius, of the Thirty-third ward, and cashier of the Pullman State Bank. Although there were eight men from his ward on the ballot for various offices in the district, he was the only one who was successful, running second to Walter Schmidt, and over five hundred votes ahead of Marcus Aurelius. Mr. Monroe is a good example of what the banking man should be in
each other, larger cash reserves are necessary than would be the case if there were a central bank with a great reserve fund ready at all times for the use of the country?
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Return Borrowed Bonds
Banks of Philadelphia which held $3,106,542 in government bonds in order to secure federal deposits during the strain at the close of last 3^ear have surrendered $2,799,542 of these as a result of the withdrawal of the funds by Secretary Cortelyou, and now hold only $307,000. In nearly every case these bonds were classed in bank returns as “borrowed,” but in the statements of July 15th, the last report to the Comptroller, six banks made no reference to the item, and nearly all others note either a full or partial return.
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The stockholders of the Rose City Bank, of Little Rock, Ark., recently elected J. E. Mills a director to succeed J. T. W. Tiller.
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to October 2d, for a special train de luxe to Denver via the Pennsylvania Railroad. It will be one of the finest trains that has ever crossed the country. Leaving New York at 3 :55 P. M. on Friday, September 25th, it will arrive in Denver at 5 P. M. on September 27th. After the convention the delegates will take the special train again at 9 P. M., Friday, October 2d, and return to New York by way of Colorado Springs, Kansas City and St. Louis. Saturday, October 3d, will be spent in sight-seeing in the vicinity of Colorado Springs. It is expected that practically all of the Eastern bankers attending the convention will use this special train.
The New York Money Market
Henry Clews of New York City says: “Cheap money and plenty of it is a very influential element in the present advance. In spite of the approach of crop moving demands, both call and time money are unusually cheap, and such low rates naturally make good stocks and bonds look attractive as investments. Bank reserves are about the highest on record for this period of the year, and the monthly currency statement shows the amount of circulation in the country to be $3,046,000,000, against $2,-781,000,000 a year ago. An increase of over $260,000,000 in twelve months, chiefly in gold certificates, is, of course, inflationary in character, especially in view of the diminished activity in business which lessens the demand for currency. The immediate future of the market contains, of course, a larger degree of risk owing to its big advance, and which will increase, if forced, to a higher level, which is not unlikely from present appearances. Admitting the many favorable and very hopeful conditions, it must be remembered that prices have had a big advance, that while stocks are in strong hands the market is undoubtedly being manipulated for the purpose of unloadiiig. The present leaders have practically unlimited resources and the best manipulative skill is upon their side; nevertheless prices are beginning to reach a somewhat hazardous level, we therefore now advise gradually taking profits.” Ratify Plan of Sixty-two Story Building
The Building Department have approved the plans for the proposed $10,000,000 sixty-two story office building for the Equitable Life Assurance Society, to replace its present building on Broadway.
Third Dividend to be Paid October 1st
Receiver Hanna, of the National Bank of North America, announced yesterday that in the ordinary course of events a third dividend would be paid to depositors before October 1st. Two dividends of 25 per cent each have already been disbursed. He was unable to state at present how large the third dividend would be.
Personal Mention
Frank B. French, who has been connected with the Twelfth Ward Bank for twenty-two years, latterly as cashier, has been elected president of that institution.
A. C. Grant, trading under the firm name of A. C. Grant & Co., has opened an office at 50 Broadway to conduct a general brokerage business in curb securities.
The Bank of Washington Fleights reports Thomas Alexander second vice-president.
New Santa Fe Bond Issue
A new 17 million dollar bond issue is announced by the Atchison, Topeka & Santa F.e Railway company. It is part of an issue of an authorized 30 million dollars and will be secured by a first mortgage on the Belen cut-off and the Pecos Valley & Northeastern railroad, and guaranteed by the main company. The bonds will be underwritten by J. P. Morgan & Co., and will be offered at 94 or 94y2. They will bear 4 per cent interest.
Eastern Representatives to Travel in Comfort
Arrangements have been made by the Eastern representatives of the American Bankers Association, which will hold its thirty-fourth annual convention in Denver, September 28th
On the recommendation of the Superintendent of Banks the old Mechanics’ & Traders’ Bank will reopen as the Union Bank of Brooklyn. It will have $1,000,000 capital and nearly as much surplus. Its cash resources at opening will approximate 50 per cent of its deposits.
Edward M. Grout, former comptroller, will be president, and Edwin J. Stalker will be vice-president.
The main office and branches of the old Mechanics’ & Traders’ Bank, located in Manhattan, are to be closed. The Fulton Street and the Hancock branches located in Brooklyn will also be closed. Necessary steps to change the name of the corporation to the Union Bank of Brooklyn will immediately be taken.
Clark Williams, in his report, stated that the bank should resume business under an entirely new management, and that assurances should be given that the presidency of Edward M. Grout is not merely temporary. Furthermore, the directors are to be satisfactory to each of the voting trustees.
The examination of the bank by the state authorities showed assets of $10,208,350. The statement shows an impairment of capital of $81,178, leaving a value to the stock of $1,918,-000. A contingent liability of the bank exists in the amount of $180,000. The receivers of the institution report an increase in cash during receivership from $2,700,000 to $3,912,000.
A committee on resumption have secured a credit of $1,000,000 from various banking interests on the hypothecation of certain assets for one year. The collateral hypothecated shall not be in excess of twice the amount of such advance and the right of substitution shall be granted to the bank. Cash available on resumption will amount approximately to $4,-000,000.
Depositors representing 83.62 per cent of the total deposits signed an agreement deferring some of their payments. Ten per cent of the deposits will be payable on or after the date of reopening and the remainder will in sixteen months.
New York Stock Exchange Commission Houses
Notwithstanding the radical rise in stocks, the majority of the New York Stock Exchange commission houses still favor the buying side, although a few urge that profits should not be missed during demonstrations of strength.