[Volume XXVII
THE CHICAGO BANKER
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new relationship would double the membership of the lusty old A. B. A.
Just as the groups have built up the state associations so will the state associations build up the national organization. Give the state secretaries a chance. They will surprise you all when they get into the harness. They could induce the “non-members” to come in, and they ought to be recognized for the good they have done. Then make them a section, and make each secretary a delegate-at-large for his state. It will pay.
Money Market Conditions
Predictions from strong sources are unanimous for a world-wide rise in money rates. Banks are contriving to restrict liabilities and large borrowing companies are refunding early so as to be in line. The ever-ready argument of those committed to the bull side of the stock market has been that the yield on standard stocks has been at least twice as great as the market value of money, but unless all signs fail, interest rates next month will be as high as the average return on investment securities. General trade fortunately is steadily though not rapidly expanding, yet this is not conducive to unbridled advances in stock prices, since business will require capital that has been for two years available for stock market purposes. On the other hand, the most powerful financial groups are anxious to foster wider interest in speculation to enable them to continue the process of liquidation already in evidence and to facilitate the flotation of impending loans. Therefore, the reaction that would appear to be in order may be staved off. Unusual conditions still prevail in international exchange, partly owing to the complete reversal in the balance of our foreign trade during the last few months, partly on account of the extremely heavy business done in futures during the summer and partly because the disparity between interest rates here and in Europe has led to extraordinarily extensive borrowing oversea. It isn’t too late to begin house cleaning in earnest.
Andrew W. Mellon
Pittsburgh, September 23.—Andrew W. Mellon, head of the great Mellon National, of this city, has tired of being a “Mellon” for the English affinity of his English wife.
It was in England six years ago that he met her. Charmed by her grace of manner and winning personality, he won her after a short courtship and they were married. He brought her to Pittsburgh, where his new wife made a veritable sensation in the highest circles of society, greatly to the husband’s delight.
There was a sudden awakening, however, for the astute business man. Andrew began to realize that there were some dollars going out of his household that he knew nothing about. Upon investigation Mr. Mellon found that his wife was
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LARGER PAID CIRCULATION IN THE MIDDLE WEST THAN ANY THREE OF ITS COMPETITORS COMBINED
An act to establish a law uniform with laws of other states, relative to the transfer of stock to corporations.
An act concerning notaries public who are stockholders, directors, officers of employees of banks or other corporations.
An act to amend the maturity section of the negotiable instruments law by the insertion of the words “or becoming payable” after “falling due” therein.
An act to amend the negotiable instruments law by limiting the payment of a time instrument made payable at a bank to the day of maturity only.
The convention heard memorable addresses by Mr. Forgan and Mr. Hill. Each is a text-book in itself.
The art of holding a convention and providing the right kind and right amount of entertainment was fully revealed by the hard working committees, named by the Chicago banks. Officers of the association declared after the adjournment that the following were among the chief results accomplished during the meeting:
Greater agitation in favor of the central bank idea.
Development of a stronger feeling in favor of stricter supervision of banking institutions by public officials.
Paving of the way for more effective co-operation between the comptroller of the currency and supervisors of state banks.
An increase in sentiment against postal savings banks and the guaranty of bank deposits.
An important forward movement toward making bills of lading safe, negotiable instruments.
Greater solidification of the forces of the American Bankers Association. Col. Farnsworth received great credit for his year’s work.
The Secretary’s Section
One thing remains to be done to round out the harmony of the American Bankers Association. The “Organization of Secretaries of State Bankers Associations” should be taken into the fold and made a section. They are important men, and the proposed step would make them important allies. Each state secretary should be made a delegate-at-large from his state, ex officio. This would establish the connection and give the state associations the floor in case memorials to the larger body were desirable. The secretaries are the boss recruiting officers even now, and in their
American Bankers Convention
There is no aristocracy except that of intellect and character in the American Bankers Association. Mr. Reynolds, who laid down the gavel as its president, last week, began banking in Panora, Iowa. Mr. Pierson, who took it up, was at the age of fifteen a messenger in the Hanover National, New York. Both are young, self-made, successful bankers. Under them the association has arrived at the pinnacle of its power and importance. No other business organization of any country can approach it in size or prestige. It is the strongest lay body of men in the world.
Before closing a most successful convention the American Bankers Association took these important stands upon the pertinent financial questions of the day:
Condemned the postal savings bank plan as “a menace to the nation’s credit.”
Re-affirmed the position taken at the convention a year ago against the guaranty of bank deposits, characterizing such a plan as “subversive,” ”misleading” and “a detriment to the public.”
Refused to indorse the maintenance of separate savings bank departments with segregated deposits in the national banking associations now operating under the law.
Pledged themselves to secure uniform legislation in the different states on eleven subjects, most of them intended to amend the criminal law.
Approved a resolution providing for the appointment of a committee to obtain a reduction in the charge of surety companies for underwriting depositary bonds, burglary insurance and fidelity bonds.
Referred to the federal legislative committee a resolution providing for a committee to encourage the organization of insurance companies for the insuring of commercial notes, or to induce existing casualty insurance companies to add this as a special line of insurance.
Tabled a resolution for the appointment of a committee to study the rates of interest paid on deposits in the various parts of the United States.
The convention went on record in favor of securing uniform legislation throughout the different states on eleven subjects, most of them amending the criminal law. They are
An act to punish the making or use of false statements to obtain credit.
An act to punish derogatory statements affecting banks.
An act fixing the liability of a bank to its depositors for payment of forged and raised checks.
An act to punish the giving of checks or drafts on any bank or other depository wherein the persons so giving such check or draft shall not have sufficient funds or a credit for the payment of the same.
An act defining the crime of burglary with explosives and providing the punishment thereof.
An act relative to payment of deposits in two names.
An act relative to the payment of deposits in trust.