[Volume XXVII
THE CHICAGO BANKER
30
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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 the causes of failure in speculation, with a suggestion as to the remedies.
The Use of Loan Credit in Modern Business. By Thorstein B. Veblen. Postpaid, 28c.
The above books are the best of their kind, and will be promptly forwarded upon receipt of price.
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This volume contains much valuable information and much sound discussion on money and credit.
Principles and Practice of Finance. By Edw. Carroll. Postpaid, $1.85.
A Practical Guide for Bankers, Merchants, and Lawyers. Together with a Summary of the National and State Banking Laws, and the Legal Rates of Interest, Tables of Foreign Coins, and Glossary of Commercial and Financial Terms.
The Banking and Currency Problems in the United States. By Victor Morawetz. The author takes up the problem of the National Monetary Commission, appointed by Congress, and discusses the means of providing a permanent safe guard against money stringencies and panics. Postpaid, $1.10.
The Monetary and Banking Problem. By Logan G. McPherson. i2mo. Cloth, $1. Postage, 10c.
These articles have elicited the praise of both economists and bankers.
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.
Government Regulation of Railway Rates. By Hugo R. Meyer. A Professor of Political Economy in the University of Chicago. Postpaid, $1.60 net.
Investment Bonds. By F. Lownhaupt. Postpaid, $1 90.
Prospective investors who wish to make advantageous use of their money will do well to take notice of this volume. The author does not theorize, but tells only plain facts of the relation of the bond to its issuing Corporation, and of the general investment aspect of the Instrument.
Money and Credit. By Wilbur Aldrich. Postpaid, $1.37.
BOOKS ON BANKING, FINANCE AND ECONOMICS
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.
Essentials of Business Law. By Francis M. Burdick, LL. D., Professor of Law in Columbia University. i2mo. Postpaid, $1.50.
This book is not written for lawyers, nor for professional students of law, but it shows how the rules of law governing the commonest business transactions have been developed, and it tells what they are to-day. Technical law terms have been discarded as far as possible, and when they are used they are so explained and illustrated as to be easily understood. The principles of law are not set forth in the form and style known to the leather-bound law book, but are simplified and expressed in clear, lucid, every-day speech
Foreign Exchange. Tables converting foreign money into United States Money, and United States money into foreign money at all commercial rates
a statement compiled by the comptroller of the currency on July 15, 1908, it was shown that 21,346 banks and trust companies were doing business in the country. On that date those institutions held deposits amounting to $15,112,־ 827,397. While exact figures are not now available, it is known that the enormous total then reported, is exceeded to-day by hundreds of millions of dollars.
With the richest and most prosperous country in the world, our people are entitled to the best circulating medium that can be devised. Every dollar of it should be equal in purchasing power and in character and standing, to a gold dollar.
Furthermore, in times of great demand, the volume of our currency should under the system we are seeking promptly expand to meet the occasion. During inactive periods, to relieve money plethora, there should be ample provision for promptly retiring the excess supply.
That is what is sought to be accomplished. A system which will maintain such results should be devised and adopted. It matters little whose the successful plan may be, or what its particular form. Whether the end desired can best be brought about through a modification of our present laws, through a central bank, or through the adoption of some new and untried plan, are questions to be carefully considered in the near future. Again the time has come when deeds are wanted, not words. Let 11s approach the consideration of these important problems with minds free from prejudice and with the earnest desire to secure by our action, the greatest amount of public good.
A new bank has been organized with a capital of $25,000 at Staples, Minn. W. J. Lewis is president, G. F. Cashman, vice-president, E. E. Green, cashier, H. A. Koenig and H. J. Dower are directors.
The Buttzville State Bank of North Dakota has $10,000 capital. Frank Deason of Chicago, and Loren B. Curtis and Phcebe Curtis of Lisbon, are stockholders. Mr. Curtis is to be cashier and active manager.
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the banks of the country; whether the same necessity for such institutions exists in this country as in foreign countries where the number of banks according to population is much fewer; whether it will be wise to embark the government in a new line of business requiring a large number of additional employees and thus take another step toward greater centralization of power, and finally, whether the creation of a government depository at which as some propose, the names of depositors will be suppressed and the balance due be exempted from levy or attachment for debt, will increase the honesty of our people.
The question of guaranteeing deposits will also have to be considered. So far as I know, this has never been undertaken in a general way by any country. It is true that in several of our states, laws have recently been enacted providing for such a guaranty, but the proposition is a new one and has not yet been thoroughly tested. In one of our western states recently, the plan was given a severe trial but the real test of it will come during times of general financial disorder. In my opinion, the principle involved should be carefully considered before affirmative legislation is enacted. The results sought are so far reaching that hasty action is unwarranted.
It would seem to me if it should be found to be feasible for the national banks to enter upon the general guaranteeing of deposits, it must be undertaken under the direction and control of the general government rather than under the differing provisions of various state laws. No one will deny that a state has the right to regulate the banks doing business within its limits under its charter. But to my mind it would be almost as unwise to leave wholly to each state the regulation of the currency issued by the national banks within its boundaries, as to allow an individual state, by indirection to prescribe for its national banks the form of guaranty they shall assume. The proposition is a serious one and consequently is entitled to serious consideration, especially since the extent of the liability that would be imposed by such an undertaking can only be conjectured.
While great responsibility now rests upon the monetary commission, happily its membership is made up of men who are accustomed to assume responsibility. After its recommendations have been submitted to the people, further responsibility will then rest upon the bankers and business men of the country, and upon the congress of the United States. Whatever the plan may be that is finally adopted, it will affect vast interests. In
President James McKinney at Decatur Convention
(Continued from page 6) associated from politics and politicians, and be strong enough to fully meet the needs of this great country at all times. The commission will surely realize that it will not be wise to recommend a central bank plan simply because one is found to be in successful operation in some European country. It does not necessarily follow •that such a plan would prove adequate and satisfactory here under widely different conditions. The Bank of England is called the financial Gibraltar of Great Britain, yet we find no counterpart of it in the broad spreading Dominion of Canada, where the people are well served by independent banks.
Now that the tariff has been disposed of, it is expected that a general and permanent revision and regulation of our currency system will be undertaken by congress. As I said a moment ago, out national monetary commission is making an exhaustive study of the subject preparatory to the submission of a plan. Whatever their recommendation may be, I trust it will appeal strongly to the judgment of the American people for no plan can become permanently successful without such approval.
The commission will doubtless also consider whether or not it will be wise to attempt to do more than to remodel the regulations now governing the issue and retirement of our currency in such a manner as to bring about greater elasticity. A change of regulations will necessarily involve the question of security for our bank notes. It is essential that the security be ample and unquestioned. The time should never come again in this country when doubt would be entertained as to the value of our currency or any part of it.
Many other problems will have to be considered in a collateral way by the commission. For instance, as to whether the establishment of postal savings banks would prove to be helpful or harmful during a time of panic, especially if it should be provided in the law that postal savings are to be re-deposited by the government in