[Volume XXVII
THE CHICAGO BANKER
6
100 YEARS OLD IN 1910
This is the oldest bank in the United States west of the Alleghany Mountains. In February, 1910, it will be 100 years old, having been in continuous existence since 1810. It has passed through four wars and the many severe financial panics of this country, and has never failed to protect its depositors. «1 It conducts a general banking business; makes loans and receives deposits, issues letters of credit and makes collections on all parts of the world, q It desires to extend its connections with banks in all parts of the United States, and invites propositions for the collection of its business. <| It offers its services to banks and bankers as a collection Agent and Reserve Depositary.	^ ^ ״ _ _ _ _ _
Capital and Surplus $5,400,000.00
O F F I C E R S
W F BICKEL Cashier	J. M. RUSSELL, Assistant Cashier	J. D. AYRES, Assistant Cashier
GEO. F. WRIGHT, Auditor
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Rank of Pittsburgh
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WILSON A. SHAW, President HARRISON NESBIT, Vice-Pres
E. H. Thayer
E. H. Thayer of Fargo has become one of the managers of the farm loan department of the Minneapolis Trust Company. He has been in the business nineteen years. W. M. Heckler will have charge of the sales for the department, and Mr. Thayer will be field man. Mr. Thayer has been special loan agent for the Northwestern Mutual Life Insurance Company of Milwaukee.
V
New Banking Law in Force
Austin, Texas, Aug. 9.—The new state banking law, enacted by the Thirty-first Legislature, became effective to-day, and from now until October 1st, every state bank and trust company operating in the state is required to accept either one of the two plans of bank deposit guaranty, the assessment plan, or the bonding system. In brief, the assessment plan assesses each bank a certain percentage to guarantee the deposits made by depositors, while the bonding system provides that the bank shall give a suitable bond to guarantee the deposits.
Thus far, with a very few exceptions, all of the state banks have signified their intention of taking advantage of the assessment plan. It is true that hardly one-third of the total number of state banks have so advised the department of insurance and banking, but the law does not require them to do so until the law takes effect and then they have until October 1st in which to make a selection. There are approximately 470 state banks in the state and from now on it is expected that the department will be hearing from these within the next few weeks. One fact is that thus far it is only the comparatively small state banks that have advised the department on this subject, and it remains to be seen what the large banking companies of the state are going to do about the matter. It was predicted during the consideration of the bill in the legislature that the larger banks would not accept the assessment plan, but would prefer the bonding system.
It is also said that some of the national banks operating in the state intend to take advantage of this law, and take one or the other of the plans. This, it has been held, they can do, although they are not under supervision of the state department of insurance and banking. It is explained that these national banks do not wish to be behind in the procession, and intend, besides being as a means of additional guaranty, to use the guaranty as a means of advertising.
V
Banker Leaves Prison
Auburn, N. Y., August 10.—Hanning C. Palmer, former president of the American Exchange National Bank, of Syracuse, N. Y., was discharged from Auburn Prison to-day on a pardon granted to him by President Taft. Palmer was convicted of mis-application of the bank’s funds and sentenced to five years in Auburn Prison. His term would have expired September 7th.
V*
The First National, Hendersonville, N. C., will increase its capital to $100,000.
it would be expected that the committee would insert such provisions if it were necessary to do so.
Money Orders
The money order committee of the A. B. A. will make a report at the Chicago convention showing a surprising amount of progress in this difficult field. Mr. Chapman, of the committee, has cancelled his Nebraska speaking date, for their convention, to be with the committee which will put in practically a full week’s work in Chicago, preparatory to its convention report. This is one of the important committees, the work being of interest to all banks, both large and small.
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Financing New Enterprises
That the financing of new enterprises in the Northwest may be conducted in the Twin Cities is evidenced by the fact that the Minneapolis Loan and Trust Company has recently taken an issue of $400,000 of bonds secured by first mortgage on the property of the Thunder Bay Elevator Company at Port Arthur, Ont., the third Canadian grain elevator bond issue taken and placed by the same company. Of the last issue $300,000 bonds were placed in thirty days.
Vern Sutton has resigned as assistant cashier of the First National of Gilbert, Minn.
C. O. Pease has been elected assistant cashier of the First National of Cimarron, New Mex.
George W. Crozier is president, N. F. Miller cashier of the new Guaranty Bank of Knoxville, la.
MAUSOLEUM
The above mausoleum is one ot 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 Chicaeo, 111.
at which the state funds shall be deposited, and to change this rate as its judgment may dictate, not more frequently than once in each six months. Having fixed upon the rate, the commission shall advertise it and ask the banks of the state to take the funds at that rate, and to signify respectively how much they are willing to take. If the total offerings received by the commission shall be less than the funds available for this class of deposit, the commission shall forthwith reduce the rate and re-advertise for offerings, and if again the offerings to take are below the total of the available funds, the proceedings shall be repeated until enough depositaries are found to take up the whole amount. If, on the other hand, the offerings to take shall exceed in the aggregate the amount of state funds available for deposit, the commission shall have authority either to raise the rates and r-e-advertise, or to distribute the funds among the banks making requisition for them in proportion to their several offerings to take.
“All banks subject to either national of state examination shall •be eligible as depositaries, and none shall be required or permitted to deposit securities to secure the deposit. Upon the recommendation of the superintendent of banks, the commission shall have authority to require special examination of any bank applying for state funds, to be made by public auditors _ in good standing, the report of such examination to be filed with the superintendent of banks. The superintendent of banks thereupon shall be required to examine such report and to make such other investigations, if any, as in his judgment may be deemed necessary, to fully determine the standing of such applying bank, and then to submit to the commission a written recommendation for or against the acceptance of the application. The commission shall be required to act on the superintendent’s recommendation according to its tenor, whether it be to accept or reject the application. No bank shall be allowed more state deposits than an amount equal to one-third of its paid-in capital and surplus.”
It will be observed than in addition to the points this measure is primarily intended to cover, it eliminates the security deposit features of the present law.
Lhave said that the measure, as outlined, has had the endorsement of our legislative committee and the state superintendent of banks. This feature has not had such endorsement, though I believe it would have had if the matter had been discussed.
The practice now followed by the United States government and the government of our state and municipalities of requiring banks to make special deposits of securities to secure their public deposits, is at once unscientific, unfair, and misleading. When a bank makes such a deposit of securities it creates a preferred creditor, but this preference does not appear on its published statement, and the public is mislead accordingly. Furthermore, the government, with its right to examine banks, and its power to enforce the law, should be the last rather than the first depositor to require special security.
As it is doubtful if a measure lacking provisions for such special security could be passed,