17
THE CHICAGO BANKER
âFÎIEl 1I€©1
(Department of Chicago Banker)
October p, !pop]
An Open Forum Dedicated to the American Institute of Banking in Which to Advance the Great Movement for Systematic Education and Universal Membership
The Paper Currency of Various Nations
The only paper money that is accepted practically all over the globe is not “money” at all, but the notes of the Bank of England. These notes, says Harper’s Weekly, are simply printed in black ink on Irish linen water-lined paper, plain white, with ragged edges. The reason that a badly soiled or worn Bank of England note is rarely seen is that notes which in any way find their way back to the bank are immediately canceled and new ones are issued.
The notes of the Banque de France are made of white water-lined paper printed in black and white, with numerous mythological and allegorical pictures. They are in denominations of from twenty-five francs to one thousand francs.
Bank of England notes are of a somewhat unhandy sizes—five by eight inches. South American currency resembles the bills of the United States, except that cinnamon brown and slate-blue are the prevailing colors. German currency is printed in green and black, the notes being in denominations of from five to one thousand marks. The one thousand mark bills are printed bn silk fiber paper.
It takes an expert or a native to distinguish a Chinese bill from a laundry ticket if the bill is of low denomination, or a firecracker label if for a large amount, the print being in red on white or yellow on red, with much gilt and gorgeous devices. Italian notes are of all sizes, shapes and colors. The smaller bills, five and ten lire, are printed on white paper in pink, blue and carmine inks.
The most striking paper currency in the world is the one-hundred-rouble note of Russia, which is barred from top to bottom with all the colors of the rainbow, blended as when a sun ray passes through a prism. In the center in bold relief is a finely executed vignette in black. The remainder of the engraving on the note is in dark and light-brown ink.
The American practice of scattering strands of silk through the paper fiber as a protection against counterfeiting is unique.
Would Limit Central Bank
Washington, October i.—Representatives of banking interests on the Pacific Coast who passed through this city to-day expressed the opinion that the movement for a central bank was growing in strength throughout the extreme west and assigned it to the influence of the larger bankers of that region, who, it was reported, are to a very large degree in sympathy with the idea provided that it is proposed subject to suitable limitations on what they consider such.
The small bankers of the coast are described as being still opposed to the central bank plan, particularly to any branch banking or to the monopoly of note issue idea. It is admitted that the branch bank plan does not find much support in any quarter in the West and that unless the forthcoming scheme can be stripped of practically all branch banking features it will be unacceptable to the Pacific Coast interests.
The views expressed with reference to the development of banking opinion on the coast are substantially identical with those entertained by influential bankers of the middle West, particularly by some of the leading men in Chicago.
The State Bank of Paint Rock, Texas, is being organized with a capital of $30,000.
National City Names a New Assistant Cashier
A WALLER MORTON
A. Waller Morton of Baltimore has been offered and has accepted an assistant cashiersbip with the National City Bank of Chicago, and will enter upon the duties of his new position Monday, October 11th.
Mr Morton is an ex-president of the American Institute ol Banking, and recently lias been connected with the Bankers 1'rU't Company of New York City, introducing for that company the new American Bankers Association money orders through the western states. Previous to that time he had, for several years, been connected with the Eutaw Savings Bank and the Citizens National ot Baltimore.
Mr. Morton is a young man of pleasing personality and ot more than average ability, and the addition of his name to the official ro>ter of the National City Bank of Chicago gives to that rapidly growing institution another young man of the type who “do things.”
The National City Bank of Chicago is to be congratulated upon securing the services ol Mr. Morton, and Mr. Morton upon his good fortune in becoming associated with one of Chicago’s most flourishing young banks.
First National of Pittsburgh
The First National of Pittsburgh paid its regular quarterly dividend of 4 per cent on October 1st. The First National of Pittsburgh has issued the October number of its magazine, The Business Monthly, which is the first number of the fifth year of its publication. A great deal of space is devoted to the new corporation tax law, whch is a live subject of discussion at present time, and is therefore printed in full. There are also articles on the postal savings bank proposition, and other matters of interest to the banking fraternity and business men generally.
.1
THE MARKET CHART COMPANY
INVESTMENT SPECIALISTS 259 LA SALLE STREET, CHICAGO
Reviews aud Forecasts of Financial and Trade Conditions. Correspondence of Bankers invited.
Defect in Guaranty Law
What is believed to be a defect in the present Oklahoma guaranty deposit law has been pointed out since the Columbia Bank & Trust Company passed under the control of the state banking board for the purposes of liquidation, and it is a certainty that if there should be a special session of the Oklahoma legislature next winter a bill for the removal of this alleged defect will be quickly introduced.
The attention of Governor Haskell, who is the foremost champion of the guaranty system in Oklahoma, has been called to the matter, and he was much impressed by it.
One of the most capable lawyers and legislators in the state, after a thorough reading of the guaranty banking law, said the law woul 1 never work to a satisfactory degree unless the state bank commissioner was given exclusive judicial and administrative powers in the liquidation of a bank, which he does not now possess, but is permissible under the constitution of Oklahoma.
The courts, according to this lawyer, should not be permitted to interfere in any way with the liquidation of a bank, the main purpose of which is to pay depositors in full at the earliest possible moment. This lack of exclusive control of the banks by the bank commissioner should not make it possible for endless delay in the collection of levies made upon guaranteed banks to turn money into the guaranty fund if these banks should resist payment of the levy by seeking the cover of the courts.
This lawyer believes, further, that the bank commissioner should be able to dispose of securities and collateral in manner he deems most expedient for the safety and convenience of the depositors. As the guaranty law stands now, there is nothing to debar persons from bringing suit to restrain the bank commissioner from disposing of securities, it being even possible that depositors might intervene in the case, asserting that the disputed assets, for instance, were not being sold in a way that would give equal justice to all depositors.
Suits of this kind might tie up the liquidation of a guaranteed bank for an indefinite period, especially if the court should be unfriendly to the principles of the guaranty deposit law.
No interference of the kind suggested would be possible, however, according to this lawyer, if the bank commissioner should be clothed with supreme judicial and administrative powers in the control and liquidation of banks.
It is not probable that the assets of the defunct bank will be turned immediately to purchasers, even if there should be early consummation of the plans now under way for the organization of a new bank to replace the defunct institution, and to utilize such assets and fixtures of value as the latter may possess. The feeling prevails that before the bank passes from the present control of the bank commissioner, everything that might possibly give rise to subsequent litigation should be removed. It would hardly be possible to establish this condition under a week or more. A state official said to-day in his opinion six months would elapse before final liquidation. The bank has quantities of good paper not yet due and this paper may be held until its maturity rather than undertake an earlier disposal of it.
National bank being organized at Herndon, Va.