15
THE CHICAGO BANKER
October 30, 1909]
Located at MINNEAPOLIS, the portal to a rapidly developing empire, the
Northwestern National Bank,
in situation and strength, is the ideal reserve agent for banks and bankers beyond the Mississippi.
CAPITAL and SURPLUS	FIVE MILLIONS
TOTAL RESOURCES THIRTY-SEVEN MILLIONS
banks of the West and South and even the Pacific Coast throwing money into New York during periods of wild speculation in the stock market. They have been warned by the bankers of the great centers, I know, but whether or not the warning will be heeded when the crucial moment comes remains to be seen.”
T*»
Against Postal Savings and Guaranty
Findlay, Ohio, October 25.—Group Two of the Ohio Bankers Association to the number of 100 met here this afternoon. The district is composed of the counties of Allen, Auglaize, Miami, Darke, Hardin, Shelby, Mercer, Van Wert, Paulding, Putnam, Hancock and Logan. The welcome address was delivered by L. W. Foff, of this city, and was responded to by N. W. Cunningham, of Bluffton. Beecher W. Waiter-mire delivered an address on “The Tendency of Recent Legislation.”
The resolutions declare unalterable opposition to the establishment of postal savings banks by the government. Guaranteeing bank deposits is also declared inimical to sound and safe banking.
C. D. Crites, of Lima, was elected chairman of the association for two years; Clarence R. Backus, of St. Marys, secretary-treasurer, and the following were named as the executive committee: William A. Graham, Sidney; William F. Hester, Findlay; Henry Lenox, Celina; E. B. Mitchell, Lima, and J. H. Allen, Kenton.
Walsh Case
John R. Walsh has closed an option for the sale of his railroads at a price which, when the sale is actually concluded, will enable him to pay off his debts and may even leave him well to do.
Interior Banking]Conditions
“The bankers of the Pacific Northwest seem to be prospering greatly,” said an official of one of the large institutions of the Northwest. “So are those of the Middle West. But in the South there are some sections where conditions are not of the best. Texas and Oklahoma have suffered extensively from two causes, the shortage in the cotton production and the unfavorable situation in the cattle industry. However, I am told there is no cause for industrial alarm in either state, nor, for that mater, in any part of the South. While the cotton crop is short prices are high enough to more than make up the difference.”
The president of another great commercial bank, which has been represented at all conventions held this year, said: “The outside banks have large deposits and the bankers themselves are jubilant over the agricultural and commercial situation. This optimism is so pronounced in fact that it almost frightens a man from the East, who is used to going ahead slowly. But there is no doubt that the banks have money to lend without unduly advancing rates. No money stringency can occur this year, in my opinion. When the demand for money to be used in general business comes, the crop moving season will be over; thus the banking operations of the country will dovetail in so that money should be plentiful at all times.” Discussing the country’s commercial credit in connection with the statements of Western bankers, he said: “The calls of the West on the East for money are growing less year by year, and at the same time the West’s credit is becoming better and more secure. My attention was called in Chicago to a statement approximating the banking strength of a group of states in the Middle West. It proved surprising even to a man familiar with the development of the past ten years. One of the dangers now, it appears to me, is the possibility of the
step will undoubtedly be taken unless the directors of the banks affected shall divide up among themselves such overloans as cannot be liquidated or transferred at maturity.
Preparations are also making, it is learned today, for the enforcement of the principles of the national banking act, with respect to meetings of directors. Examiners are to be asked to send in definite data concerning the frequency of directors’ meetings in each bank examined by them. This information will be tabulated, showing those which have a meeting every day, those which meet once a week, once a month, etc., and those which never have meetings, except to declare dividends. It is probable that an arbitrary ruling will be made that in those cases where directors’ meetings are not held at least once a month and where the judgment of the directors as to the loans and discounts is not asked for, such views being made a matter of record for the bank, that a penalty of extra frequent examination at the expense of the bank will be applied. So far as can be learned, nothing positive has been determined, but it is anticipated that at least four examinations per annum will be insisted upon.
The penalty of more frequent examination has been applied with great success in some other cases already the effect being to attract attention to the bank among the neighboring institutions, thereby leading the directors to exert themselves actively in behalf of the clarification of the situation and the restoration of the bank to a legal condition. The same result may be secured in this instance. Should the penalty of frequent examination fail other efforts will be made to compel greater attention to the work of institutions on the part of the directors.
Indications are to the effect that weak banks are already somewhat restive under the new restraints to which they are being subjected and they may attempt to cause trouble.