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THE CHICAGO BANKER
November 7> ipo8]
The Boston Money Market
The money market in Boston continues in the same rut as for months. Banks are flush, businesses comparatively light, and consequently demand is small. At the moment call money is practically unloanable, and banks are holding large reserves in cash, not even adopting the usual expedient of shipping funds to New York, where they can get 2 per cent interest on balances. This accumulation of idle funds is largely the result of the protests by New York reserve agents against receiving money which they pay 2 per cent for and loan at a lesser rate. Money on call is 2 to 2j4 per cent. Time money ranges from 3 per cent to 4j4 per cent. Year money is 4 to ¿[1/2 per cent.
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New National Banks
The Comptroller of the Currency has approved an application to organize the First National of Nichols, N. Y., capital, $25,000.
A certificate has been issued authorizing the First National of Gilbert, Minn., capital, $25,000, to begin business.
The Commercial National of Statesville, N. C., capital $100,000, has been organized by D. M. Ausley, Statesville, N. C.; W. D. Turner, W. B. Mills, E. Morrison, H. A. Yount, and C. M. Steele.
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The People’s Bank of Portsmouth
The report of Receiver Griffin, of the People’s Bank, at Portsmouth, Va., shows a shortage in the accounts of Cashier Alexander B. Butt of $549,884. Butt is now serving a sentence of three years in the penitentiary upon a plea of guilty of misapplying the bank’s funds. Commonwealth Attorney Stewart has been petitioned by the depositors’ of the bank to have Butt returned upon the expiration of his term and prosecuted upon 19 remaining indictments.
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Virginia Proceedings
Secretary N. P. Gatling of the Virginia Bankers Association is sending out the proceedings book of the last state convention, held at Hot Springs, Va., June 18th, 19th, and 20th. The book is handsomely bound—navy-blue, gold, and white predominating—and has many new features. It is a very valuable issue. Mr. Gatling has made his book one of reference, and its value is well equal to the annual dues assessed against the members.
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Oregon Banks
The banks of Oregon, both state and national, show $1,000,000 more deposits than they had last July, and about $2,000,000 more than last May. This is shown by the statement called for September 23d. Individual deposits amount to $75,600,000, and the banks are carrying $12,700,-000 in cash. The report is considered a splendid
The Newark Trust Company
The Newark (N.J.) Trust Company is being organized, to be located at Broad Street, near Market Street. Ferdinand R. Moeller, of 859 Broad Street, Harry H. Poole, William B. Powell, Frank M. Schultz, George F. King, Roland D. Crocker, William Pennington and others are interested.
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First National of Howard
C. F. Plowman, cashier of the First National of Howard, Kan., has been elected to the presidency to take the place of I. D. Brainard. H. G. Zirn was chosen to the cashiership.
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Chicago Bank Clearings
Chicago bank clearings decreased 6.28 per cent last week.
those dealing in single lines of goods, it is frequently noted that stocks are badly broken.
California Safe Deposit Decision
The Supreme Court has denied the petition of J. de Forest for a writ of mandate to compel Superior Judge Coffey to make an order granting leave to the petitioner to bring an action against E. J. Le Breton as receiver for the California Safe Deposit and Trust Co., of San Francisco for the recovery of $2,100 deposited with the wrecked bank after it suspended payment on October 30, 1907.
Banking Notes
Sacramento is celebrating ti e first anniversary of its clearing house.
Charles Ewing, cashier of i he National Bank of Commerce, Los Angeles, was a San Francisco visitor last week.
Attorney Harry L. Johnston of Napa, recently appointed receiver of the defunct Bank of Calistoga, states that the depositors will without doubt receive at least 80 cts. on the dollar, and that it is quite likely that their claims will be paid in full.
Sacramento bank clearings are showing gains each week.
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“Photography for Young People”
Not anything teaches young people the power of observation like photography. They learn to look for the beauties of every scene. Nowadays it is an all year diversion. Fortunately text books on the subject kept pace with the progress in plates and films, in lenses and cameras and in the simplification of development and printing.
“Photography for Young People,” by Tudor Jenks, from the press of the Frederick A. Stokes Company, New York, is a book of instructions which will obviate worry and incidentally lower the cost of learning how to take photographs by preventing failure and waste of materials. The author describes the use of the camera, the operation of its various parts, the process of developing negatives, that of toning or developing the print, and also that of properly mounting the latter. He then treats the various phases of photography separately and in detail; exposure—what to take and how to take it; the developers and the theory of development; printed papers and their comparative value; lenses and shutters. Two chapters are devoted to the history of photograph)' and one to the chemistry of the art. Mr. Jenks’ book which is freely illustrated will save many times its cost ($1.50) every month in materials saved through better knowledge of the art.
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Riverside, Cal., Banking News
By C. E. Newcomer.
Perris is a small town eighteen miles out from Riverside. It will soon have a new bank, which will be called the Bank of Perris. Articles of incorporation have been filed in the county clerk’s office.
The capital stock is $25,000, of which $23,-000 has been subscribed by W. W. Stewart, an eastern man who has recently located in Perris and who is at the head of the enterprise. The other stockholders are T. H. Sharpless, S. V. Gates, A. W. Hook, M. A. Wolcott, and Edward Poorman. The stock of the corporation has been entirely subscribed.
The directors of the bank are W. W. Stewart, S. V. Gates and Edward Poorman, all of Perris. In the past year or two, Perris has been experiencing a steady growth and the need of a banking institution has been made apparent.
Business at Riverside is rather quiet, and money matters are at somewhat of a standstill, but the outlook is bright.
American National Circular
The monthly financial letter of the American National, of San Francisco, under recent date, is of decided interest and gives an excellent view of financial and business conditions as follows: About a year ago the monetary disturbance, sweeping its rapid course Westward, caught San Francisco firmly in its grasp. The events of the ensuing 12 months have not been in all respects agreeable, but that they have been entirely wholesome must be generally admitted. Unquestionably, business in this city is in far more sound condition than it was a year ago. At that time capital and credit were strained, and there was a prevalent habit of extravagance, both private and corporate. To-day, economies are practiced, indebtedness has been reduced, and the custom of taking a peep through the binoculars before making the leap has become the rule rather than the exception.
Comparison of Statements
The Comptroller’s call for a statement from the national banks in September gives opportunity for financial comparisons. On August 22, 1907, the nine national banks in San Francisco had upwards of $72,000,000 of deposits. On September 23, 1908, 13 months later, the same banks carried $60,000,000. There is a sheer drop of $12,000,000, of which $5,000,000 are traceable to individual deposits, $3,000,000 to banks and $4,-000.000 to U. S. Government deposits.
In the same period the loans and discounts have shrunk no less than $10,000,000 keeping almost abreast of the deposit decrease. _ But—and here is the significant point—the available cash remains at practically the same figure, showing a greatly increased strength of reserve, and a capacity’ for considerable loan expansion when the conditions of business require. The decrease in deposits is after all not surprising when you consider the many profitable opportunities for the use of money in acquiring low-priced stocks and bonds, in real estate purchases and building operations, and in the making of private loans.
The Savings Banks
Coming to the savings banks, although a decrease of deposits from $153,000,000 to $137.-000,000 between August, 1907• and July, 1908 seems rather breath-taking at first blink, it compares very closely with Chicago’s savings bank deposits, which went from $161,000,000 to $145■־ 000,000 in the same period. In either case it means nothing beyond the fact that possessors of money have been able to make more than 4 per cent on their cash surplus by investments in buildings or other forms of wealth. The tremendous development of home-building on both sides of San Francisco bay is further proof of this. Since the middle of summer there has been an upward trend, as returns have come in from the marketed products of California, and the increase is likelv to continue for the next two months. The fruit season is rather unusually late this vear, and shipments are going steadily forward, the total so far reached being nearly 12.-000 carloads of deciduous, and more than 29,000 carloads of citrus fruits. In some sections a shortage of cars has impaired the profits of growers.
Trade Conditions
Conditions of trade in merchandising lines in this city are curiously mixed, echoing the unusual circumstances of the people in the past two years. Among the larger retailers, especially department stores and dry goods houses catering to the higher class of custom, the report is almost universal of a trade volume equalling that of a year ago, and surpassing the average of the past five years. Whether on Market Street or Van Ness Avenue, the story is the same and the outlook for the winter is considered very favorable. One surprising feature is the growing demand for goods of superior and more expensive quality, which is an evidence of economy or extravagance whichever wav vou look at it. in the lesser shops