t Volume XXVII
THE CHICAGO BANKER
14
Editorial Comment
one was declining further offerings. The treasurer of the largest savings bank in central New York went through his waste basket to find and show me a letter received that morning from a broker offering him railroad notes which would net his bank 7.3 per cent—a rate which in time would break any railroad in the country. It was the Erie road of course, a second or third grade property; still it was on the map, doing business, and issuing its obligations, which sometime would mature when payment might be demanded. This same road has since narrowly avoided receivership only by relief extended by our most celebrated railroad wizard, who has taken it under his fostering care. During the time referred to the bond salesman was either called off the road, and his prospectus laid away, or else he turned note broker. In fact, note brokers were thicker than mosquitoes in June, or calendar men in January. One large western packing house had called in some of its picked salesmen of meat products and sent them East to the investment centers to sell the company’s notes, in order to raise the capital necessary to keep the rest of the force out West selling meat products. Now the situation is entirely changed. Note brokers are having a vacation or are working on part time, and their letter offerings which reach our desks are limited to only a few names at rates which are not attractive. Meanwhile the bond salesman has returned to his vocation and has been doing good business. Short term obligations have been converted into long term bonds at rates satisfactory to the borrowers, who being now free of pressing obligations at high rates are ready to go ahead with ordinary business, and the banks are in sufficient funds to finance all reasonable undertakings.” It will readily be admitted that Mr. Early presents the matter well and the jury of careful readers most likely will decide with him.
V
The Studebaker Bank
Bluffton, Ind.—Ralph S. Todd, cashier of the Studebaker Bank, one of the largest in the Eighth district, has been elected president of the institution, and is probably the youngest president of a bank in the state. He succeeds H. C. Arnold, who took the presidency five years ago, on the removal of Hugh Dougherty to Indianapolis, and who retires because he wishes to cease active business. The deposits are $950,000. C. H. Plessinger, secretary of the United Telephone Company, succeeds Mr. Todd as cashier, John S. Gilliand still continuing as vice-president. Mr. Todd, the new president, started with the bank as errand boy.	^
Convert Branch into State Bank
Twisp, Wash.—It is reported that arrangements have been completed to convert the branch of the Commercial Bank located here, into a state institution under the name of the Commercial Bank of Twisp, with a capital of $25,000. Thomas S. Blythe, Wm. G. Hughes, E. F. Magee and P. L. Filer are the organizers.
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convention. B. C. Sammons is chairman of the committee which is arranging this trip.
The social event of the convention will be a ball to be given at the Auditorium, Thursday evening, September 16th. The floor will be laid from the stage over the parquet, as for charity balls and similar occasions. John Jay Abbott is chairman of the committee in charge. Other announcements may be expected from week to week. If you have not secured your room reservations write to August Blum, at the First National. He is the Big Boniface of the show.
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Prosperity Seems to Have Returned
Out at the North Dakota bankers convention, J. J. Earley, of Valley City, spoke upon the business outlook of the country. He cited and interpreted “the signs of the times” to show that good, substantial gains are here to stay. Here is one of his convincing presentments :
“One of the most hopeful signs of the present is the fact that in the case at least of our largest borrowers and most important industries, the liquidating process has been so complete. Those of us who have found it necessary or advisable to look for commercial paper for our excess reserves during the past few weeks, can testify to the scarcity of offerings, particularly of the better grade. The avalanche of railroad notes which hung over the country, more particularly the East, during the summer of 1907 has been gradually eliminated, with little or no disturbance or distress, until now the amount outstanding is moderate —in fact too small to suit the purposes of the lending institutions. Only six or seven unimportant railroad failures were recorded, and these properties are now being reorganized, the abnormal load of obligations under which they staggered and fell being reduced to reasonable proportions compared with values underlying them. During July and August, 1907, I spent about four weeks in my native state of New York, where the signs of the impending storm which broke upon us with such severity in November following stood forth on every hand—plainly prophetic of disaster, just as the green, funnel-shaped cloud is to us on the prairies a sign of the coming cyclone. Nearly every banker in that section was then carrying railroad notes, and every conservative
What Experience in Banking Teaches
The dreamers and visionaries in congress and out of it, who believe that single handed they could revise the currency system of the states, got a severe jolt at the hands of Mr. Forgan at the Petosky convention of the Michigan bankers. Mr. Forgan, head of Chicago’s largest bank, hit the one-man idea hard when he told the members of the convention that the enormous powers which would be given the comptroller of the currency by the proposed bill fathered by Congressman Fowler, chairman of the house committee on banking and currency, would be delegating more authority to one who already has too much power.
“Any man who thinks he can sit in Washington and boss so big a job isn’t fit for the task,” declared Mr. Forgan. “The plan is impracticable ; yes, it is impossible. I can’t express myself too strongly on this subject. The responsibility always must rest with the bank officials and directors. The comptroller could not pass on all credits. I could not even pass on all the credits of the one bank of which I am president.”
Thus spoke a master mind from real experience. Mr. Forgan knows that no one man could decide the credits of a one hundred million bank, alone, and no one could even be useful in such capacity to more than six thousand banks. In this position he will be supported by the bankers of the country.
For the Visiting Bankers
Every man who comes to the big Chicago A. B. A. convention in September will be kept busy. Every entertainment provided will include the ladies and the present outlook is that attendance will break all records. Among the things already tentatively provided for it may be mentioned that the general program provides for the evening of Monday, September 13th, the first day of the convention, a dinner to the executive council of the association. This will be attended by thè officials and leading members of the association and men distinguished in finance from all parts of the country. Mr. Reynolds is chairman of the committee in charge of this dinner. On Tuesday evening, September 14th, the association will be entertained at the Coliseum by Fe-rullo’s Band and the Italian ballet. There will be refreshments served at small tables. David R. Forgan is chairman of the committee on these arrangements. Wednesday will be devoted largely to a boat ride to Gary and a view of that greatest of magic cities and an inspection of its steel plants. Two large steamers, and more if necessary, will carry the party. Preparations will be made for guiding the visitors through the works and for a luncheon under a huge tent. This trip is expected to prove an interesting feature of the