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THE CHICAGO BANKER
July 31, !pop]
Capital, $1,000,000 Surplus and Profits, $400,000
Your Business Solicited
THE
LIBERTY NATIONAL BANK
OF NEW YORK
William A. Tilden President
Nelson N. Lampert Vice Prest.
Henry R. Kent Cashier
George H. Wilson Asst. Cashier
Charles Fernald Asst. Cashier
Colin S. Campbell Asst. Cashier
MONROE AND CLARK STREETS
CHICAGO
FREDERICK B. SCHENCK, President
CAPITAL, SURPLUS AND UNDIVIDED PROFITS
$3,500,000.00
CHARLES W. RIECKS
Vlce-Pres. & Cashier
DANIEL G. REID
Vice-President
FRED’K P. McGLYNN Ass’t Cashier
20HETH S. FREEMAN
Vice-President
HENRY S. BARTOW
Ass’t Cashier
HENRY P. DAVISON
Chairman Ex. Com.
the $1,000,000 Hennepin county good roads bonds, express doubt of the validity of the bonds. The^ question is whether the legislative act is special legislation. The bank may require the decision of the supreme court before it takes further action on the bonds. The suit will be in the. form of a petition to have the county auditor restrained from delivering the bonds and the bank from accepting them.
Visit Twin Cities
F. A. Neubauer of Hamburg, F. I. Friedhain of Berlin, bankers, and Baron John Van Vorst, have been in the Twin Cities on their way west after a stay of six months in the country. They say the United States is ahead of any other country in its system of banking. “In our country,” said Mr. friedhain, "the checking system is an innovation. Heretofore, we have been dealing in cash only. This, of course, needs a large amount of currency on hand, which gave us no interest and at the same time gave us a great deal of trouble. Your system of bookkeeping is also ahead of those in the foreign countries.
The European countries, however, are more conservative. The margin of profit is not as large and we cannot afford to take chances.
“We are heavily taxed. A tax of 7 per cent of the earnings must be paid to the government annually by the stockholders. Besides this, stamps have to be placed on every legal document which comes from a banking institution.
“The taxes are growing higher and higher which makes us more conservative. We do not speculate in the stock market.
“The system of buying margins is unknown in Germany. In our country the investors must buy the stock outright.
“The panic, which occurred in this country two years ago, was keenly felt in Germany at the same time. The United States seems to have recovered entirely from its effects and is again prosperous.
“Germany, on the other hand, is picking up slowly, and it will be another year before conditions are again at.a normal state.”
Banking Notes
C. C. Webber, Deere & Webber Co., and F. W. Clifford, Cream of Wheat Company, have become directors in the Minnesota Loan & Trust Company.
A new national bank is to be organized at Millheim.
F. E. Bonifield and others are interested in the new Aurora (Colo.) State Bank with a capital of $10,000.
is bringing gold from hiding places. One customer deposited with the comptroller $1,500 which had been hid in a can dropped in the cistern. A package of $500 still had on its wrapper the bank’s date stamp made six years ago. The certificates are preferably sold to local investors in small amounts. Widows, orphans, small estates and fraternal organizations are active bidders for the paper. The issue, which amounts to $2,095>ooo, is largely oversubscribed. Of the $1,873,000 outstanding certificates $1,500,000 have been handed in for renewal. If the entire issue is renewed the subscriptions of $225,000 will have to be apportioned among the $222,000 of the new issue. A. D. Stephens Pushed for Senator
State Senator A. D. Stephens of an up-country town, president of a bank, former president of the Minnesota Bankers Association, is out for the United States senate. At least he has been pushed out by his townsmen at Crookston. They expect a dead lock between Frank B. Kellogg of St. Paul, the government trust buster, and T. B. Walker, the Minneapolis lumberman, or some one else, and that is where Mr. Stephens will come in.
Mr. Stephens has had gubernatorial aspirations and would be willing to go to Congress, but Congressman Halvor Steenerson, the probable contestant for that seat, would prefer to see Mr. Stephens in the senate.
May Pay 75 Per Cent
The First National of Rugby, N. D., which failed as the result of high finance methods, may pay 75 per cent. The officers are practically sure of 50 per cent, half of which has just been paid. The trustee of the Andy Jones estate hopes to pay 40 per cent to the creditors, to help make up for his part in the failure. The liabilities are something like $100,000 with assets consisting of equities in.real estate and farm lands amounting to more than $50,000. Elects Directors and Officers ^ The Indemnity Life and Accident Insurance Company of Minneapolis, the first old line company formed under the laws of Minnesota, has elected fifteen business men as directors and the officers as follows: President, P. D. Boutell, merchant; vice-president, C. P. Her; secretary, R. J. Bowell; treasurer, F. W. Stevenson, manufacturer.
Validity of Bonds Doubted
Attorneys for the First National of Minneapolis, successful bidder for the first instalment of
determined to get the stock through the courts, if necessary.
Elected to Stock Exchange Membership
George B. Lane, commercial paper, Security Bank building, has been elected member of the Minneapolis stock exchange. Two vacancies remain in the new organization. Rapid growth assures the promoters that the organization w׳as needed. Two of seventeen memberships remain open.
Banks Which have been Absorbed
Banks have been coming and going in the last fifteen years. Some of the banks which have gone out of business by absorption, and otherwise are the Flour City National, Union, Metropolitan, Nicollet National, Irish American, Bank of Minneapolis, Farmers’ & Merchants’ Savings, Hill Sons & Company, Clarke National, People’s Swedish American National, Citizen’s National Bank of Commerce. The new banks have been Metropolitan State, East Side State, Merchants’ & Manufacturers’, Minneapolis State, Central Avenue State, Scandinavian American National, Swedish American Savings, Union State, Savings Bank of Minneapolis, State Institute for Savings. Controller’s Opinion of New Law
Under the interpretation of a new law preventing deals between city departments, Louis Betz, the St. Paul controller, says that either money on deposits with the banks will have to be placed in private vaults, or nearly every man holding office will have to resign and their places to be filled with tramps. Mr. Betz said:
“If that law is to be enforced to the letter as the present tendency seems to indicate, it will mean that every penny of city money, now drawing interest in the bank, will have to be withdrawn and placed in private vaults, at great risk, and without interest.
“This will be imperative because there is a stockholder of some city bank represented in nearly all departments of the city government. These stockholders are indirectly profiting by the city money deposited in their institutions. Therefore I cannot legally place any money in a St. Paul bank. Nor could the money be placed in a Minneapolis bank, for the same thing is true of most of the financial institutions of any strength in the neighbor city. Annual Sale of St. Paul Tax Certificates
The annual sale of St. Paul tax levy certificates, to anticipate tax collections for one year,