[Volume XXVII
THE CHICAGO BANKER
30
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the causes of failure in speculation, with alsugges tion as to the remedies.
The Use of Loan Credit in Modern Business. By Thorstein B. Veblen. Postpaid, 28c.
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THE CHICAGO BANKER,
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The Monetary and Banking Problem. By Logan G. McPherson. i2mo. Cloth, $1. Postage, 10c.
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The Credit Man and His Work. Bv E. St. Elmo Lewis. 1 ostpaid, $2.00.
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The National Bank Act, with Amendments. Annotated by J. M. Gould. Postpaid, $3.12.
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The Principles of Money and Banking. By Charles A. Conant. It is a new and complete exposition of its subject. Two Volumes. Postpaid, $4.25.
The Pitfalls of Speculation. By THOMAS Gibson. Postpaid, $1.20.
A book dealing exclusively with marginal speculation, and analyzing in a clear and simple manner
Economy in the University of Chicago. Postpaid, $1.60 net.
Investment Bonds. By F. Lownhaupt. Postpaid, $1 90.
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Money and Credit. By Wilbur Aldrich. Postpaid, $1.37.
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Principles and Practice of Finance. By Edw. Carroll. Postpaid, $!.85.
A Practical Guide for Bankers, Merchants, and Lawyers. Together with a Summary of the National and State B inxing Laws, and the Legal Rates of Interest. Tables of Foreign Coins, and Glossary of Commercial and Financial Terms.
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Credit. By J. Lawrence Laughlin of the Department of Political Economy, University of Chicago. Postpaid, 53c.
The nature of credit and its effect on prices have long been a subject of disagreement among economists. Its basis is commonly assumed to be money or bank reserves.
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Foreign Exchange. Tables converting foreign money into United States Money, and United States money into foreign money at all commercial rates of exchange used in financial transactions between the United States and foreign countries. All about foreign exchange, including various forms of foreign commercial paper and terms, abbreviations, etc. For banks, bankers, steamship agents, importers, exporters and manufacturers. Cloth, $5.00.
1׳^Government Regulation of Railway Rates. By Hugo R. Meyer. A Professor of Political
under that law, it will only offer the strongest evidence of its sufficiency to fulfill the purpose intended.
With the support that it affords, banks in time of panic will be more composed and will not seek wildly to strengthen their reserves by calling in loans.
The Treasury Department
Mr. Hepburn says, “We already possess a great central bank—the Treasury Department. It is the greatest bank of deposit in the world.”
This writer in the article referred to called attention to the same fact and urged a more extended use of that department for the purpose of bank reserves.
All that we need in our financial system that a central bank of issue would supply, can be equally as well supplied by the treasury department.
It is not necessary for the purpose that the government should go into the banking business. Increase, if thought best the ratio of reserve now required for banks, but instead of a stated amount of actual cash on hand let the cash reserve include balances due from the United States treasurer and approval securities held by him. The securities could be specially designated and confined to those generally termed “savings banks bonds.”
Then permit the banks when it was needed to draw on the treasurer, not only to the extent of their balances, but to that of the securities deposited. The credit balances with the treasurer would always exceed the overdrafts and the resulting interest charged would make the keeping of cash reserves attractive instead of locking up the cash at home.
This was practically the plan outlined by the writer in the article mentioned and it could be accomplished without the slightest risk on the part of the government. The business would be conducted along general lines applicable to all banks without any opportunity for favoritism or preference.
The people of this country will not object to the treasury being used in this manner as a custodian of bank reserves, but public sentiment is not likely to be united in favor of the establishment of a great central bank, with all of its evil possibilities, even if it can be made to accomplish a much deserved result.
prudence and Information” and its chairman, Mr. McHenry. This committee has met every problem that has arisen in its province in a manner highly pleasing to all, evincing in every instance an interest in the welfare of the association and its members and a spirit of watchfulness withal—again, to those loyal men, the vice-presidents and chairmen of the respective districts—I cannot say too much of their efforts for the success of the new system, nor of the happy results made possible by their co-operation —to the retiring secretary, Mr. Bridges, who, very much to my regret, felt that his health would not permit him further to fill the dual role of manager of the Louisville clearing house and secretary of this association. My relations with him were extremely pleasant and the work performed by him for the association was of high order and displayed intelligence and ability—to the new secretary, Mr. Davis, with whom it has been my pleasure to be associated the past two months. The sub-committee of the executive committee to which was delegated the duty of selecting a successor to Mr. Bridges, pondered long and well before finally deciding upon Mr. Davis, and I feel that no mistake was made. He has displayed an interest in the work that is highly gratifying, an energy that is sure to bring good results, an adaptability that will make friends for him of all the bankers of the state. I am confident that he will fill the position with credit to himself and honor to the association. Finally to the individual bankers of the whole state, the “boys in the trenches” as it were, who by their loyalty to the association have made it possible to close this year with a membership of 460 banks.
V*
Henry W. Yates against a Central Bank
(Continued from page 6) in the March, 1908, issue of the “Annals of the American Academy of Political and Social Science,” and will not receive here any further extended notice.
The emergency circulation suggested in that paper, and advocated by him for many years for the prevention of panics, found practical legislative expression in the Aldrich-Vreeland Bill, which it may be recalled was vehemently opposed by all of the asset currency bankers.
If not one dollar of currency is ever issued
Banking Conditions in Kentucky
(Continued from page 9)
Collection of Drafts
An abuse that is growing instead of decreasing is that of collection of drafts, or rather, I should say “attempted collection.” I find it is the general experience of banks that about 40 per cent of drafts presented are actually paid and that the amount of exchange received on the actual collections made, barely pays the postage for those returned. I believe that it is properly a function of this association to devise some means whereby we can correct this evil and all unite to demand and enforce a living scale of prices for presenting and returning drafts. This department should be an integral part of the bank, not a mere adjunct. It should either pay its way or be entirely eliminated from the business. Checks sent out for collection and remittances constitute an entirely different proposition. We should encourage this method on the part of banks and others, give good service at a fair rate with prompt returns on the day of payment.
Fidelity Bonds and Burglary Insurance
I am glad to be able to report that our income from this source this year shows a handsome increase over last. This feature of our work will be discussed by the secretary in his report. I merely wish to add that I feel it is to the interest of banks to place their insurance through the association for a number of reasons, one, that the commission on the business accrues to the association, another is that all policies are concurrent and that in the event of a loss we would have the moral influence of all the rest of the banks in securing prompt settlement. I feel that with the new secretary giving all his time to the association work, next year we may confidently expect a large increase in our revenues from this source.
In closing, I wish to acknowledge my debt of gratitude to those who have so ably assisted in making this administration a success—to your executive committee for their cordial support and consideration, everyone of the members of which have encouraged me by words of kindness, thoughtfulness in helping solve the problems that have arisen, and assistance in my attempt to extend the usefulness of this association to its members—to the several committees, especially to the committee on “Banking Juris-