[Volume XXVII
THE CHICAGO BANKER
20
MECHANICS-AMERICAN NATIONAL BANK
OF ST. LOUIS
CAPITAL $2,000,000	SURPLUS $2,500,000
Superior Facilities Offered to Correspondents
WALKER HILL, President	L. A. BATTAILE, Vice-President	J. S. CALFEE, Cashier	G. L. ALLEN, Assistant Cashier
JACKSON JOHNSON, Vice-Pres. EPHRON CATLIN, Vice-President	G. M. TRUMBO, Assistant Cashier P. H. MILLER, Assistant Cashier
KNAUTH, NACHOD & KÜHNE, Bankers
LEIPZIG, GERMANY
Letters of Credit
in Pounds Sterling, Dollars, Marks and Francs
NEW YORK
Travelers' Checks
in denominations of $10, $20, $50 and $100
Furnished to Banks and Bankers for direct sale to Travelers
STMENT SECURITIES
I N V E
James A. Latta to the Nebraska Bankers
long be a feature of each of the clearing houses of the country. Not many years ago the idea of an examiner employed by the clearing house to investigate the condition of the members of the association, under the instructions and authority of a local committee, would have been deemed impossible of fulfillment owing to local jealousy and pride of individuality. Bankers have learned to be broad in their views and understand that what is good for the business at large, cannot fail to result in the benefit of each. In practical value to the institutions concerned, the modern clearing house must take precedence of all other organizations, but it in no way interferes with the various associations which have their own special fields.
The state association has for many years been a favorite meeting place for members, and much good has come therefrom, even when there was not a great deal accomplished beyond the matter of the individuals becoming closely in touch with their fellow workers. During the last few years, however, in some states, the work of the association has developed far beyond the social feature, and has been a powerful influence in the affairs of the state at large. It is necessary only to call attention to the work of the Minnesota Bankers Association to give striking evidence of the truth of the statement. There are now on the statute books of that state many laws of importance to the people at large who deposit their money in the banks, and to the shareholders of such institutions, which would probably have been delayed for many years or might never have been passed had it not been for the organized efforts of the state association. Things are accomplished not only by the labor of committees, but through its tremendous influence as a body. Such laws as those segregating the banking department and providing a large and efficient corps of examiners, and the statute providing for the proper punishment of those guilty of making false property statements for the purpose of obtaining credit, with much other legislation that might be mentioned, are illustrations. A department has been instituted for the apprehension and prosecution of bank burglars which has proved very effective in results, and its usefulness has been enlarged by co-operation with similar departments of the bankers associations in four neighboring states. In matters of comparatively minor importance,
The popular Minneapolis financier speaks at Omaha on “Co-operation: Present Benefits and Future Possibilities”
vide a convenient method of settlement between the banks in their exchanges, the powers of this ordinary simple form of association have been developed to a very high degree. How effective their operations may be was evidenced by their tremendously valuable services during the financial difficulties in 1907. Largely by their aid, a condition of affairs which was scarcely tolerable was handled so that the damage to the business interests of the country was minimized. Such services are seldom called for, but when rendered are of inestimable worth.
The clearing houses, one after another, are taking up a line of work which needs but to be mentioned to be appreciated. The system of examination by the examiner for the clearing house, of the banks in the association, is being developed with great success. Instituted in Chicago, it was so satisfactory that other cities, among which we are pleased to mention Minneapolis and St. Paul, soon followed, and it is thought that this most valuable function will ere
Foreman Bros. Banking Co.
iio LaSalle Street CHICAGO
CAPITAL AND SURPLUS
$ 1,500,000
ESTABLISHED 1862
INCORPORATED AS A STATE BANK 1897
Officers
EDWIN G. FOREMAN, Pres. GEORGE N. NEISE, Cashier OSCAR G. FOREMAN, V. P. JOHN TERBORGH, A. Cash.
In no way does the spirit of progress prominent in modern business affairs, become so evident as in the various methods of co-operation. The old idea of competition without restriction, which happily is passing away, resulted frequently in serious loss to the stockholders of our banking institutions, and could not fail to work harm to the customers themselves. Reckless strife for business makes poor loans almost unavoidable, and results in the serious depletion of earnings accounts through giving away much that belongs in the bank's profits. Strange as it may seem, such rivalry proves harmful to the customer, by establishing false ideas of credit, leading him on to undue expansion of his business and very likely to final disaster. Healthy business rivalry along proper lines is the life, not only of the banking business but of all commercial activity, but when carried beyond reasonable limits, competition defeats its own purpose as in the last analysis profit on the capital invested is the evidence of success, eliminating which, we must consider the enterprise a failure.
Co-operation among banks and bankers is so vitally necessary that the wonder is that only within recent years it has been developed so far as the country at large is concerned, to a state of efficiency which may be considered at all satisfactory. To-day the banking interests of the country are thoroughly organized through their various associations, national, state, etc., and not only are great benefits derived therefrom along the line of limiting competition within reasonable bounds, but furthermore, aggressive action in matters where the individual bank would be powerless is had by the various associations in most effective manner. In fact, the latter line of effort has been the principal motive for organization and co-operation, and the regulation of competition followed as a natural and inevitable result.
It should not be inferred that everything has been performed that is desirable, but it is encouraging to review the good accomplished, and inspiration for further efforts in a field which seems to be boundless will be derived.
Perhaps the simplest form of organization among bankers, and one purely local in its character, is the clearing house, which is to be found in every large citv and in many of the smaller ones. Established to pro-