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THE CHICAGO BANKER
November 21, 1908]
year will approximate $2,000,000, of which over $300,000 will probably be paid in at San Francisco. After months of consideration, a simple plan has been devised for handling the money and one which will expedite business as well as the government.
Banking Notes
An analysis of the monthly building record so far this year shows a steady improvement in the Los Angeles situation. The last four months, especially, have been marked by increasing activity in this line.
W. C. Barkuloo, the Anderson banker, is having the vacant room on the Market Street front of the Zeis Building, Redding, fitted up for occupancy as a savings bank.
The Bank of South San Francisco now reports deposits of over $230,000, the highest ever shown since its organization.
The Traders’ Bank of Los Angeles has increased the number of directors from 7 to 23.
Deposits in Boston Banks
At the close of last month the city of Boston had $6,584,832 on deposit in the Boston national banks and trust companies, which is the largest aggregate in over a year, and an increase of $2,916,946, compared with the previous month’s deposits.
During the past year City Treasurer Slattery has increased the number of banks and trust companies in which the city makes its general cash deposits from 26 to 39, the additions to the list.
The sinking fund cash balance on October 31st amounting to $2,051,146, is distributed among all but two of the 24 Boston national banks, and all but three of the 19 local trust companies.
For the nine months ended October 31st the total receipts of the city aggregated $24,300,-570, while total expenditures aggregated $20,-402,018. The largest payments have been on payroll drafts which, for the nine months aggregated $9,914,973, which is at practically the same rate as last year when the full year’s payroll drafts totaled $13,240,109.
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First National of Friendly
It was given out Friday that the shortage of the closed First National of Friendly, W. Va., is over $35,000. Elbert L. Morgan, cashier, is in jail charged with misappropriating $5,000.
Saturday the American Surety Company of New York paid the receiver of the bank $10,-000, the full amount it had furnished for Morgan. Morgan is held under bond to await the action of the federal grand jury next January. The stockholders of the wrecked bank will be assessed and the depositors paid in full.
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The Bank of Spain
The Minister of Finance has introduced in the Cortez a bill the object of which is to bring about reform in the Bank of Spain at Madrid. It authorizes the issue of notes up to $400,000,-000 and at the same time provides for an augmentation of the gold reserve and a progressive decrease in the coined silver reserve. All notes in excess of $200,000,000 are liable to a tax of $2 per thousand and in excess of $300,000,000 to $4 per thousand.
The New England Trust Company
Directors of the New England Trust Company of Boston, to-day added to the board two new directors, Francis W. Fabyan, of Bliss Fabvan & Co., and Henry H. Proctor, president of Proctor-Ellison Co.
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The Falun (Kan.) State Bank has let the contract for a new building.
ors. Investigation, it is alleged, showed that these two men had taken the deposits in the different banks and used them in buying a large tract of timber land in Arkansas.
These revelations show the grave temptations which surround uninspected banking.
It is not fair to the private banker longer to leave him alone with his own devices and his own conscience. If he is honest inspection will do him no harm but will advertise his honesty in a profitable way. If he is dishonest the sooner his bank is inspected and he is put out of business and indicted, as has been the case in so many instances under the new Indiana law, the better.
California Banking News
The Sturtevant draft of the proposed new banking laws and the draft prepared by the legislative committee of California Bankers Association were discussed by the joint committee of legislators and bankers at their meeting in the Ferry building, San Francisco, Monday. The state senators and assemblymen worked for the Sturtevant draft and the financiers were in favor of the bankers’ draft. At first no agreement could be reached in regard to either of the entire drafts. Then they were taken up sectionally by the joint committee. Discussion of the sections of the drafts pertaining to savings banks and savings and loan societies consumed both the morning and afternoon sessions. Changes were made in only a few instances. Senator F. W. Leavitt, Senator J. B. Curtin, Assemblymen C. W. Fisher, and P. A. Stanton, and Lovell White, Irving F. Moulton, Elliott McAllister, George Torney, J. S. Sartori, J. Y. Eccleston, Frank Pellet, J. M. Henderson, and Bank Commissioners Watson and Vawter composed the committee.
“ It Pays ”
There is no business, from ditch-digging to banking, which is not susceptible of growth, if it is legitimate. And there is no business which cannot be increased by some kind of advertising. Advertising shows, first, that you are alive ; second, that you have confidence in what you sell; third, that you want more trade.— San Francisco Trade Journal.
The First National of Oakland
The capital stock of the First National of Oakland will be increased from $300,000 to $500,000 within a few days and announcement has been made that payments on the new issue are now due. The majority of the increase of $200,000 has been subscribed by the present stockholders. The stock of the bank is quoted at $190 per share, but the new stock is being offered at $180. The sale of this new stock will add $360,000 to the investment of the bank. It will then have a capital of $500,000 and a surplus of $100,000. It will also own the First Trust and Savings Bank, with a paid-up capital of $300,000. making a capital of $900,000 for the combined institution.
Will Deposit Funds in National Banks
Another plan has been devised by the Forest Service to make that branch of the government more popular. Beginning with December 1st, all receipts of the service will be deposited in Western national banks. On that date six field districts for the administration of the national forests will open headquarters in San Francisco, Denver, Ogden, Albuquerque, Missoula, and Portland. San Francisco is headquarters for the fifth district including California and Southwestern Nevada, and the First National will be the depositary. Receipts for the present fiscal
ment for bank examination and audit of the strictest sort.
The purpose of the California association is set forth in an extract from its constitution:
The objects of this association are: To improve and strengthen the banking system of this state; to prevent improper, or unsafe conduct upon the part of any bank within the state; to provide a system of thorough and complete examinations into the affairs of every banking corporation or individual banker belonging to this association by expert examiners, and generally to safeguard the common interests of the banks and the public.
A bank failure not only creates unrest and shatters the confidence of the people, but it temporarily eliminates the liquid assets of a great number. Business enterprises are upset, and a whole community is demoralized. While the individual depositor suffers directly, the burden of every failure is thrown upon the solvent banks of the community.
It is to obviate this that the bankers are combining for their own protection, and in protecting themselves they are offering the greatest protection to the public.
The projected system of examination ■will be so thorough that it will be practically impossible for a bank to dissipate its assets sufficiently to injure depositors before it is checked by the examiners. Every bank in the state is eligible to membership in the association, but only those which can satisfactorily pass the most rigid examination of their affairs may retain membership.
Thus two great states, Minnesota and California, gre taking the lead in a needed reform. No new state law is required and bankers have the power to make the requirements uniform in all states. The country bank is quite as much in need of this additional protection as the city bank. The country depositor has as much right to this additional insurance as the city depositor. It ought to come, and come before drastic legislation is provoked.
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An End of Private Banking
Further proof that self-interest was at the bottom of the strenuous opposition displayed by the private bankers of Indiana for years, to ward off state supervision and inspection, has come to light in indictment of several of the foremost opponents. The first state inspection showed up the real issue to be one of self-preservation rather than one of constitutional rights. Shortly after the state, under its new law, began to look into private banks the colored man in the woodpile stepped out. Now? it comes to pass that Judge Daniel F. Baldwin, former attorney-general of Indiana, and for many years judge of the circuit court, has been indicted for embezzlement. William Dague, of Kentland, was also indicted. The indictments grew out of their connection with the Goodland Bank, which was closed by the state auditor last year. Baldwun and Dague operated private banks at Goodland, Fowler and Ambia until a year ago. An inspector found the funds of each bank in such condition that he ordered all three of them closed. Receivers were appointed and Dague and Baldwin turned over their personal property to pay off deposit-