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THE CHICAGO BANKER
14
Reviewed by President J. D. Powers
The Year’s Work
the outgrowth of your fostering care, and as our oldest and most cherished offspring, is in mv judgment, entitled to full participation and representation in the association, and should have special representation on the Executive Council.
Guaranty of Bank Deposits
Except for the recent panic, we would have heard nothing whatever of the guaranty of bank deposits in this presidential year. But in all likelihood, those who are now preaching the doctrine of guaranty deposits, would have been the earnest advocates of government ownership of railroads. It is most unfortunate that the business of the country is to be made the plaything of officers seekers, politicians and demagogues, who seek to ride into power and acquire place even at the jeopardy of the best interests of the whole country.
With the guaranty of deposits, what incentive would there be for banks to pile up a large surplus ? They certainly would divide out the surplus which amounts in the national banks alone, to more than $750,000,000, amongst the stockholders. W hy should any bank seek to accumulate surplus if the credit and standing of all banks is to be measured by statute, without reference to the amount of its capital, surplus and undivided profits ? Certainly under such conditions, stockholders would not permit their surplus to remain undistributed, to be the subject of attack, and to make good the losses of recklessly managed banks. You are urged, by these advocates of guaranteed deposits, to look at what wonders it has worked in Oklahoma. It is impossible to estimate the conditions that would obtain under a general guaranty law by the conditions which now exist, for the reason that conditions would be so radically changed by the opportunities afforded for reckless banking and wild speculation, that any percentage, figured on past experience of bank failures and losses to depositors, would be so wide of the mark as not to afford even a good basis for a guess.
Conclusion
In conclusion, 1 appropriate the words of my political patron saint, in concluding his first inaugural address:
"And may that Infinite Power which rules the destinies of the universe, lead our councils to what is best, and give them a favorable issue for your peace and prosperity.”
A. B. A. Convention
American Institute of Bank Clerks. The work was so intelligently prosecuted that its new members not only took a lively, but beneficial interest in its growth, and organized chapters throughout the country, made up of the bright, intelligent and thoughtful young men who were in the employ of members of this association. Thev
j. D. POWERS Louisville, Ky.
have recently taken on a new name differing slightly from their original patronymic, and are now called the American Institute of Banking.
To this institute and its magnificent work, we may confidently look for the improved, educated and broadminded banker of the immediate future. Its work has been along the best possible lines of education and it has reached such magnitude in importance and numbers as to request to be admitted as a section of this association, and to receive in the future, that which has been accorded to it in the past, the protection, encouragement and help of the association. It is
President J. D. Powers in delivering his annual address said in part:
According to custom, and that I may make report of my stewardship as president of your association, I feel that it is but due that I should congratulate you upon your increased numbers as well as upon the enhanced importance and benefits of your membership in this association; the purpose of which is to strengthen the hands of its individual members by mutual effort, and to afford such protection as is the outgrowth of co-operation. Our increased membership betokens the esteem in which your efforts in the past have been appreciated by your fellow bankers throughout the country. Of necessity the bankers occupy a semiofficial position in communities where located. We at once become the custodians of the funds of the community, and the general disbursing agency through which the commercial and manufacturing world, as well as the individual, meets current obligations. Your importance is measured by your■ activity, energy and integrity. It is highly important that these qualities be exerted for good. By reason of our position in the financial world, we owe it to ourselves no less than to the community in which we reside, to give our best endeavors to the upbuilding of civic righteousness, inculcation of civic pride, and above all, we should aid in promoting those virtues which tend to ennoble the individual, and without which, commercial integrity is impossible. We should bear our due proportion of the burdens of citizenship and aid in so shaping the policies of governmental regulation, that the greatest good mav be vouchsafed to the greatest number.
Within a few short weeks after the close of his labors, as your president, G. .S. Whitson, who served this association with such fidelity and zeal, giving it that unstinted service which ever characterized him in whatever station he occupied in this life, died on November 24, 1907.
The knowledge of his death brought sadness to the hearts of most of the bankers of this country ; and especially grieved at his loss were those who had been intimately associated with him in the work of the association. He was indeed a man of high character and of unimpeachable honor and integrity.
The American Institute of Banking
About ten years ago, this association authorized the organization of an educational branch of the association, which resulted in the
Secretary Farnsworth’s
Annual Report at Denver
bankers, the offices have been rearranged and refurnished, giving us a library and reading room, wherein can be found all of the financial papers and journals of the country. The working officers have been divided up for the convenience of the working force, as well as the secretary and assistant secretary. That this innovation was desirable is attested by the fact that a large number of visiting bankers have called and made use of the offices and reading room.
The Membership
Six hundred and ninety-one (691) members were erased from the roll through failure, liquidation, consolidation, and withdrawal. This brought the membership September 1, 1907, to eighty-five hundred and sixty (8,560).
Twelve hundred and forty-three (1,243) members have joined the association since that date. Notwithstanding the fact that a large proportion of the dues payable for the fiscal year ending August 31, 1908 were collected during the panic period, we now have a total paid membership of ninety-eight hundred and three (9,803), being a net gain over last year of five hundred and fifty-two (552). The gross gain is within fifty-nine (59) of last year’s. The aggregate capital, (Continued on page 34)
been convicted and sentenced to specific terms amounting to 231 years and 7 months; 24 have been sentenced to indeterminate terms.
The Protective Committee has expended $38,-522.54 for the protection of 9,803 members, which amount is $1,675.14 in excess of the expense of the Protective Committee of last year. Association Officers
For the thorough handling and expediting the business of this office, with our large membership, committee work and correspondence— early in my administration, I began systematically to install modern business devices, with the result that we now have an addressograph with 25,000 names of member and non-member banks ; a multigraph on which we have produced 100,-000 letters ; modern filing devices for our correspondence, vouchers and files, code receipts, and membership blanks. I have also introduced a system of office vouchers, and in every way possible have endeavored to bring the office up to the standard of a first-class business concern. For the convenience and comfort of visiting
It is not without considerable satisfaction that 1 submit herewith my first annual report. Notwithstanding the strenuous times which overtook the banking interests of the country last October, the association has had an unusually prosperous year. We have retained our membership and show a healthy growth.
I will not attempt to enlarge on the work of the sections and the committees, nor occupy your time in going into details, for you will have full reports from these adjuncts of our association, suffice it to say that this has been for them an unusually active year. The Trust Companv. Savings Bank, and Clearing House Sections have accomplished a great deal along their various lines.
The Standing Protective Committee
There is probably no other one department of the association work which appeals to our membership to such an extent as the protective feature.
Of the 151 criminals arrested as appear in the report of the Protective Committee, 74 have