THE CHICAGO BANKER	[Volume XXVII
			
STATE BANK OF CHICAGO			THE FARMERS' AND MECHANICS’ NATIONAL BANK OF PHILADELPHIA, PA. 427 CHESTNUT STREET Capital - - - $2,000,000.00 Surplus and Profits 1,348,000.00 ORGANIZED JANUARY 17, 1807 Dividends Paid - $12,847,000.00 OFFICERS Howard W. Lewis, President Henry B. Bartow, Cashier John Mason, Transfer Officer Oscar E. Weiss, Assistant Cashier ACCOUNTS OF INDIVIDUALS, FIRMS, AND CORPORATIONS SOLICITED PRESENT NUMBER OF STOCKHOLDERS 930
ESTABLISHED 1879 S. E. Corner La Salle and Washington Streets Capital - - - $1,500,000 Surplus and profits (earned) 1,500,000 Deposits over - - 20,000,000 OFFICERS L. A. GODDARD, President FRANK I. PACKARD, Asst Cashier JOHN R. LINDGREN, Vice-President C. EDWARD CARLSON, Asst. Cashier HENRY A. HAUGAN, Vice-President SAMUEL E. KNECHT, Secretary HENRY S. HENSCHEN, Cashier WILLIAM C. MILLER, Asst. Secretary			
YOUR CHICAGO BUSINESS RESPECTFULLY INVITED			
			
JSk. IN CINCINNATI Jk With Resources of TWENTY-ONE MILLION DOLLARS And every facility for the satisfactory handling of Bank Accounts CORRESPONDENCE INVITED			
The Gold Reserve Controversy in England
bankers’ balances, temporary advances and bills under discount.
6. That the ordinary reserves of gold having been increased by the measures suggested, the Bank of England, on the recommendation of a committee representative of the state, the bank, and the joint stock banks, should be given an increase of its powers of issue against securities, in times of emergency, on payment to the state of a rate of interest to be fixed by law, such rate of interest to be neither so high as to make the permission inoperative, nor so low as to encourage speculation up to it.
7• That in view of the fact that an opportunity for a revision of existing arrangements between the Bank of England and the state will occur in March, 1911, the government should nominate a committee to consider and advise as to how far it is desirable to modify such arrangements, in the interests of the state.
The committee further recommends that the association should press these views upon His Majesty’s Government either by means of a deputation, or in such other manner as may be deemed fitting.
I he second and third of the foregoing proposals are certainly fair matter for "discussion, but• with the £1 note proposal, the old question arises as to whether the reserve of gold in the pockets of the people has not, after all, many distinct advantages. The fifth proposal of the committee we are opposed to, as we believe that no good purpose would be served by its adoption. The sixth proposition is sound enough, as every one is agreed that the reserves should be made free use of as occasion requires. At the same time, the best means have still to be found for accumulating the reserves themselves. All that we need say, perhaps, with regard to the seventh proposal is that it comes as a timely reminder to bankers of the desirability of taking time by the forelock, and adopting such measures as shall make it abundantly clear that the problem of increased gold reserves is one which can be safely
By W. R. Lawson
inclined to view the matter entirely from their own professional standpoint. The recommendations of the committee, then, are as follows:
1.	That fuller information should be available to the public periodically (say, monthly) as to the figures of all banks, showing their immediately available resources in detail, stating separately (a) discounts, (b) advances, (c) balances with bankers and also their liabilities; stating separately (a) deposits and current accounts, (b) acceptances, etc., (c) cash in hand, (d) cash at Bank of England, and (e) cash at call and notice. These figures should be made up on the average of the daily balances.
2.	That the government should hold a reserve in cash, against the deposits in the trustee and post office savings banks, sufficient to provide means for meeting any probable sudden demand on the part of depositors, thus avoiding the necessity, in such a case, for putting pressure upon the money market in times of difficulty.
3.	That a portion of the fiduciary issue of the bank should be kept for times of emergency, and that in order to effect this object, the bank, instead of keeping the authorized amount of the securities in the issue department at a maximum, and enlarging or diminishing the amount of coin or bullion in accordance with the fluctuations of the note issue, should vary the amount of the securities as contemplated in the Act of 1844. section 2.
4.	1 hat the Bank of England, as recommended by Lord Goschen, should issue £1 notes, under similar conditions to the notes now issued, so as to increase the proportion of coin to securities held in the issue department, but with the proviso that such £1 notes may be issued, four-fifths against bullion and one-fifth against securities, so as to provide for the expenses of issue.
5• That the weekly returns of the Bank of England should separately state the amount of
London, Aug. 5.—The famous report of the banking and currency committee of the Association of the Chambers of Commerce continues under discussion in financial circles as well as in trade circles. The report, after a reference, was prepared with such celerity that John Bull is gasping for breath. It is almost inconceivable how a British-made committee could do such important work at American speed. It has been discovered that the public, at least, has been thinking it over for some time, and that “gold reserves” is not a new subject.
The report gives a mass of useful statistical information touching upon bankers’ liabilities, fluctuations in bank rates and their causes, both home and foreign, and presents a table prepared by the committee, showing the present liabilities which have to be provided for, either on demand or at short notice, by bankers in the United Kingdom :
June, 1908.
Circulation of the Bank of England £ 28,993,000
Total Note Issue of other Banks.. .	14,213,000
Deposits of English Banks (other
than the Bank of	England) ......682,786,000
Deposits of Scottish	Banks.......... 108,717,000
Deposits of Irish Banks ........... 58,305,000
Deposits in Post Office Savings
Banks . ......................... 157,500,000
Deposits in Trustee	Savings Banks. 53,009,000
Deposits in Bank of	England......	56,337,000
¿1,159,860,000
When, hQwever, we come to the actual recommendations of the committee, it is impossible to speak with the same degree of approval, though it is evident that each suggestion has been very carefully considered, and it is also easy to understand that many of the conclusions are such as might fairly be expected from a body of able men, somewhat inclined, however, to look at the matter from the commercial rather than the banking standpoint, just as bankers are too often