[Volume XXV
THE CHICAGO BANKER
6
This Bank has been in continuous existence since 1810—nearly one hundred years. It has always given effective service to its clients and has never failed in their protection. Conservatively managed banks and persons having business in Pittsburgh are cordially invited to open accounts.
J. M. RUSSELL 1st Assistant Cashier
J. D. AYRES Assistant Cashier
GEO. F. WRIGHT Auditor
JLTte
Rank ofPittsburgh
JL/Natioxral -JLAssociation w
WILSON A. SHAW President
JOSEPH R. PAULL Vice-President
W. F. BICKEL Cashier
Surplus $2,900,000
“THE BANK THAT HAS GROWN UP WITH PITTSBURGH” Capital $2,400,000	ESTABLISHED 1810
.	.	President
. Vice-President .	.	. Cashier
Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier
C. H. HUTTIG .
W. B. WELLS
G.	W. GALBREATH 3. R. COOKE
D’A. P. COOKE R. S. HAWES
H.	HAILL .
3. F. FARRELL .
3rd NATIONAL
OF ST. LOUIS BANK
Capital, $2,000,000	Surplus, $2,000,000	Deposits, $31,000,000
—--------- ACCOUNTS SOLICITED ----
enter our domain. It will be the greatest banking reform in our history, would be greatly appreciated by our people and thus forever prevent bank panics and financial unrest.
platform promised to give, and I am sure if the proposed bill, or any other, embodying the insurance principle is enacted into law postal savings banks will never again attempt to
as the postal savings banks would do) but one and all can be insured against loss. This proposition the representative will gladly agree to as it would give three times more than the
Establishment of a National Clearing House Bank
chosen, who shall scrutinize tri-weekly, with its officers, the affairs of the bank.
The United States government shall have no participation or dictation in its management, except regulation and supervision.
The national banks shall be permitted to rediscount their commercial paper with said national clearing house bank, not to exceed ioo per cent of its capital and surplus.
The national clearing house bank shall be a government depositary. It shall be authorized to deal in foreign exchange. It shall be authorized to act as reserve agent for any bank with which it does business. It shall further be authorized to discount the commercial notes taken by other banks, and for banks alone. It shall be permitted to discount such notes at a rate not exceeding 4 per cent per annum, and to make an advance thereon not exceeding 75 per cent of the face value. The balance to remain on deposit until said notes have matured and been paid. This should afford earning power to insure a fair interest rate on the stock.
In times of financial distress, the Secretary of the Treasury shall be authorized to receive as collateral for the issue of national bank currency to this national clearing house bank, such commercial notes discounted by the national clearing house bank, and guaranteed by it and the previous discounting bank, to an amount not exceeding 75 per cent of the face value of said loans, at a rate of not more than 3 per cent interest per annum. The limit of credit not to exceed six months. On payment of the notes discounted for said national clearing house bank, the 25 per cent balance withheld shall be repaid to said bank. This form of security is admitted as a safe basis for issuance of currency by France and Germany.
This plan would give all the functions and advantages of a “great central bank,” without adding to the confusion of another kind of currency, and at the same time be free from political dictation or control.
It would also do away with the Aldrich-
Portion of an address delivered by l. S. Treasurer Treat, before the Chamber of Commerce at New Haven, December Seventh ::	::	::
in the shares of such bank, on terms 01 payment, as may be agreed upon.
Its board of directors shall be chosen from the membership of the different groups of clearing house banks. Those directors shall meet not less than twice a year and receive compensation therefor. From this board of directors, an executive committee shall be
MAUSOLEUM
The above mausoleum is one of our simple, well constructed designs which can be erected at a comparatively low cost with six to eight crypts. How much less barbarous this method is than burying in the ground.
Write for free booklet on “Monuments” to
CHAS. G. BLAKE & CO.
The Old and Reliable Makers of Mausoleums and Monuments 782 Woman’s Temple Tel. 115 Main Chicago, 111.
In the recent political campaign, there was widespread discussion regarding the guaranty of national bank deposits. It was maintained by some that such a system would insure confidence, and be a preventive of panics. I shall not rehearse this matter, which is so familiar to you all. One thing stands out plainly, and that is that an important factor contributing to the unrest during the panic was the inability of the banks to obtain immediately, a sufficient supply of currency to meet the unusual demands of frightened depositors. The legislation in Congress last spring, known as the Aldrich-Vreeland Bill, warrants the declaration that under its provisions an adequate supply of 500 millions of currency is always at the disposal of any national bank that has security of a character to justify such an advance, and no fears prevail that another famine in currency can come as long as this, or similar laws exist.
Looking into the future, I think that the remedy embodied in the above legislation might be greatly simplified and improved by the establishing of what I would call a “National Clearing House Bank,”—that is, a bank whose shares would be owned entirely by banks and whose management would devolve upon them as shareholders therein. This would not be a government bank in the sense that the government would be an investor in its shares, but it would be under the charter of the national government, much in the same way as our present national banking system. Briefly, my plan would contemplate the incorporation of a bank known as a national clearing house bank, under the present national banking system. Its capital shall not be less than $200,000,000, and not more than $500,000,-000, with shares of $500 each.
Its shareholders might be from the banking members of the forty-three different clearing houses of the country, or individual banks outside of the clearing house banks.
That any national bank may be permitted to invest not exceeding 20 per cent of its capital