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THE CHICAGO BANKER
November 21, iço8]
was provided for in the Fowler Currency bill of last winter, it would be a great advantage, but meanwhile it is considered that the importance of the interests at stake calls for strong effort to enforce genuine directors’ responsibility in order that the executive officers in charge of the different institutions may not simply handle the funds of depositors and shareholders as the fancy leads them.
in different parts of the country has long been known, but it is rather startling to be told by Mr. Fowler, chairman of the House Committee on Banking and Currency, that this practice has become almost universal, that countless
government paper and contains the silk fibers under the surface which have been for many years the one feature which counterfeiters could not imitate. The number of the bill is its best identification. It is D-47963872.
A CHICAGO banker just returned from Washington says that Comptroller Murray has been making a thorough analysis of the figures representing the results of the last bank call with a view ׳to ascertaining the real condition of the banks. He has compiled data showing the number of failures to date, the assets of the banks, the number of violations of the act and other important matters.
AS a result the Comptroller is more than ever convinced that the policy of directors’
BURGLARIZED CURRENCY”
institutions are using bank notes as reserves in large quantities and that even national banks are organizing trust companies and then depositing their own notes as reserves against the deposits of the trust companies.
money panics and contribute life to business. The bank of England rate has continued at 21־/¿ per cent, for 167 days, or two days longer than the same rate lasted in 1905, when it existed from March 9th to Sept. 7th. But at that time the change was to 3 per cent, while now it would seem as if a drop to 2 per cent, might be possible, so high is the bank’s proportion of reserve to liabilities.	Cashier.
responsibility and the enforcement of a recognition of such responsibility is the only method by which a genuine hold over the system can be maintained and the danger of failures in the great method of business expansion now undoubtedly opening be reduced to a minimum.
WESTERN banking opinion seems to be that it is because of his realization of the difficulty of controlling the banks through government examiners when the system has reached its present immense proportions that Mr. Murray is feeling the necessity for getting at the problem through enforcement of directors’ responsibility. If congress would pass ,legislation forming the banks into districts and ¡requiring a measure of common oversight, as
SECRETARY MARTIN A. GRAETTING-ER of the Wisconsin Bankers Association was in Chicago during the week. He hopes to add many new members during the year. The Wisconsin Association has many benefits in the insurance line which are attractive.
GEORGE D. BARTLETT, of Stanley, is in charge of the insurance department and has many unique methods of attracting attention to it. Recently he sent out a picture postal card entitled “Burglarized Currency,” a view taken from real life in connection with the adjustment of a burglary loss by the Bank of Lake Nebagamon, in October. The card advises all insured patrons to “save the pieces.”
WW. BOWMAN in fitting up his per-• manent secretary’s office for the Kansas Bankers Association is starting a financial library which, in fact, is the true basis of a permanent headquarters. “The very best books” is his description of what he wants for a foundation.
UJ«HE CLASSIFIED SERVICE” on page ■* 30 is intended to be a real convenience to our readers, with only nominal remuneration to the publisher. Look it over and help us get it going.
THE banks are directed by law to stamp counterfeit bills which come into their possession, but many of them think their whole duty done when they return counterfeits to the depositor, who generally puts them back into the cash drawer and hence, back into circulation. The government holds all such persons liable to prosecution and cases are to be brought in Chicago based on such transactions.
CAPTAIN PORTER of the federal secret service blames the banks and says they have violated the national banking law, but cannot be prosecuted because the statute provides no penalty. Chow Gah Hong, president of the Joy Hing Lo Company, was the Chinese merchant arrested. He was held under $1,000 bond. It is alleged that he placed a counterfeit bill in his cash drawer after it had been returned to him from the Illinois Trust and Savings Bank unstamped.
AN unbranded bill also was found in the possession of C. Cureton & Co., after it had been returned from the bank. It is believed that between $10,000 and $20,000 in counterfeit bills of this issue are in circulation in Chicago.
FOR three weeks the secret service men have been trying to discover the source of the new counterfeit bill which has appeared in profusion. From fifteen to twenty reach the offices in the federal building every day. The bill is one of the most perfect counterfeits in exist- ״ , ence. The paper is a good imitation of the*¡¡
Laws of the Congress Joint Currency Commission, expressed the opinion that no general currency bill would be recommended to the short session of congress. “It is not unlikely, however, that a bill making certain changes in the national banking act will be recommended based on suggestions of the Comptroller of the Currency and experienced bankers,” said Mr. Weeks. “The bill will probably not be passed at the next session, but will be introduced to afford time for full consideration of its features and in the hope that it can be enacted by the next congress,”
roe streets, for which no tenant can be found at a reasonable rental.
The firm also announces they expect to pay the stockholders of the United States Trust Co., about 85 per cent, 40 per cent already having been paid. This is the old Jennings Trust Co., which it was feared at one time would not realize 25 per cent.
John W. Weeks
Representative John W. Weeks, of Boston, chairman of the sub-committee on Banking
Federal National Liquidation
Cobe & McKinnon will recommend to the stockholders of the Federal National of this city that the remaining assets of the institution be disposed of at a public sale. The shareholders already have received 60 per cent and the liquidators estimate that in all they will get around 90 per cent, since the “slow stuff” among the assets have been sold, while the rest is of a desirable and high grade character. The liquidators' say that par could have been paid out had it not been for the lease of the premises at the southwest corner of Dearborn and Mon-