17
BANKER
THE CHICAGO
November 6, !pop]
CMAPTEM E1COM3D)
(Department of Chicago Banker)
An Open Forum Dedicated to the American Institute of Banking in Which to Advance the Great Movement for Systematic Education and Universal Membership
bank is the servant and not the master, the servant of the trade it ministers to and the servant of the depositors and business men who use it. We can master every problem that comes from our free domestic trade if we are given an opportunity to put the bank to this test of service, a service which the inherent functions of the institution will naturally lead it to fill.
It is for this reason that we may look with complacence on some of the consolidations that have taken place of late years in the great banks of the'cities. We have as yet not the great aggregate d capital to be found in the foreign banks. We are free to grow for some time to come before the size of our single banking institution becomes too great. And the very independence of the small but tributary bank, we may well believe, will prevent, the too great growth of consolidated institutions. The independent small bank is our safety and pride.
Japanese Bank Funds
Washington, D. C., November i.—Vice Consul General E. G. Babbitt of Yokohama sends the following condensation from a Japanese journal regarding banks in that empire:
While the net profits of some of the smaller Tokyo banks showed a falling off during the first six months of 1909 as compared with the 1908 period, business results on the whole were satisfactory. The Dai-ichi, the Tokai, the Tokyo and the Mitsu Bishi maintained their 10 per cent dividend rates and the Dai-san its 12 per cent rate.
The total amount of deposits at the associated banks in Tokyo, Yokohama, Nagoya, Kyoto, Osaka and Kobe at the end of June last showed an increase of $35,000,000 gold on the corresponding period of last year, and the reserves also showed an increase by $4,350,000. In short, the financial power of the banks in these cities has grown by nearly $40,000,000 compared with last year, inasmuch as the amount of loans has not only failed to advance, but has actually shown a diminution of $750,-
000.
With regard to the profitable employment of funds in their hands in the future, continues the Tokyo journal, the bankers would seem to be much perplexed. No fresh demand for capital has sprung up, neither is any likely to occur to a large extent for the present. On the contrary, there are factors tending to accentuate the inactivity of the market. They are confronted with the necessity of finding a fresh way of profitably utilizing the rapidly growing funds, and this is generally conceded to be a most difficult problem in existing circumstances.
Penn Trust Company
The directors of the Penn Trust Co., Norristown, Pa., have elected the following officers: Adam Scheidt, president; Clayton H. Alderfer, vice-president and treasurer; j. J. Ebert, secretary, and Miss Hannah M. Cassel, assistant secretary and treasurer.
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Add to Surplus Fund
The stockholders of the Baker County Bank of Newton, Ga., have declared an 8 per cent dividend which was paid and $1,000 placed to the surplus account. The officers of the institution are J. A. Bowers, president; J. H. Hall, Jr., vice-president, and W. W. Norman, cashier.
Mr. Smith also related many anecdotes of war times, which with the good cigars that were passed around, gave all present a very enjoyable
Spokane Chapter Gives Dancing Party
Spokane Chapter of the. American Institute of Banking entertained a large number of its members and their ladies at the first of a series of five dancing parties in Elks’ Temple, the evening of October 27th. Wives of the presidents of the various banks in Spokane were patronesses and the committee in charge of affairs was composed of Charles A. Ham, J. O. Tiffany and A. S. Blum.
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A Foreign Money Power
The recent consolidation at London of two of the great banking institutions making a combined capital reaching toward the two hundred million mark must be taken into account when we consider the power of this aggregated capital to control the credits of that country. These institutions, it would seem, may well be united in one, from the fact that the branches of one are confined to the provinces while those of the other are in the metropolis. They naturally groove together, and good may flow to both sets of customers from the consolidation under a proper management. It brings the business of the country and the city together in such a way that one supplements, and also buttresses, the other.
The lesson, however, lies in the tributary nature of the many branches to this one fountain head of credit. And herein the branch banking system comes in direct contrast with our independent system of individual banks in the United States. There can be little doubt that the influence of aggregated capital in the hands of a few men who may have a single object in view is here shown in its .glaring reality. If there is really such a thing as a money power it must be in some such arrangement as this for controlling the credit of a country. With us it is impossible of operation, since the individual country bank, close to the people, is not tied to any institution however great may be its capital stock and power. And as time goes on and the real banking power of credit, born of deposits, is the better distributed by the grouping of states and productive sections, that they may enjoy to the full the fruits of their own strength, this independence will but grow the more, and thus minimize the possibility of evil which may occur under the branch bank system.
The preservation of the integral power of the individual bank according to its inherent possibilities is the; present problem in banking in the United States. If this can be done by welding the banks into a greater system of goodwill, and if the government, as sponsor for the plan and its operation can help the banks to meet the need of an emergency issue of credit, then there does not seem to be any limit to the use of the bank, nor any chance that the bank will not arise in the proper time and place to do the business of the section in want. The branch bank system has many things in its favor, but it is related by nature to a monarchical form of government, and the spirit of it is foreign to the feeling of the people in our own land. We want to do the banking of the country in our own way. We are gradually evolving a way that will serve every purpose. We recognize in our banking that the
Chicago Chapter
Chicago Chapter is going to have a larger number of students take the examination for the Institute degree than will any other chapter in the country. The enthusiasm and interest shown in the lectures on banking and commercial law, as given by James I. Ennis, LL. B., has been very pronounced over one hundred bank men being present at each class. Mr. Ennis’ style and deliverance is concise, simple and easily assimilated. The course will cover the subjects of contracts, negotiable instruments, agency, bailments, partnerships, corporations, sales, insurance, etc. Examinations will be given in each subject as completed and at the end of the year a final examination covering the entire course will be held. This class is held on the first, third and fifth Tuesdays of each month at 6 p. m., in Booth Hall, Northwestern University.
On Tuesday, November 9th, at the general meeting of the Chapter, Prof. Kennedy: of Chicago University, will give his first lecture on “Finance and Political Economy. ’ Subsequent lectures of this course will be given on the second and fourth Wednesdays at 8 p. m. They will be ten in number and will cover the following subjects:
“The Industrial Revolution and the Development of Large Scale Production; The Corporation and the Trust; The ‘Labor Problem’ from the Investors’ Standpoint; Value, Wages, Rent and Interest; Stocks and Bonds; Monetary System of the United States; The Nature of Bank Credit; Financial Crises; Systems of Note Issue in Foreign Countries; Asset Currency and Central Bank Proposals.”
It can readily be seen from the foregoing that Chicago Chapter is going to do its full share toward the education of its members along the lines of the banking profession and should be greatly encouraged in its endeavor both by the members and the banks who, directly or indirectly are benefited by these courses.
The Debate Society at its regular meeting, November 2d, listened to an able and interesting-paper by J. Cofer Shirley, of the First National, on “Country Clearing Houses.” John Drummond delivered a short eulogy of Theodore Roosevelt, and the meeting closed with a hat talk on various extemporaneous subjects, which was lively and interesting.
Frank W. Smith, cashier of the Corn Exchange National Bank, entertained Chicago Chapter on October 26th with a very instructive address entitled, “The Blue and the Gray,” illustrated with stereopticon.
Mr. Smith opened his address by saying that some time ago he attended a meeting where it was announced that all the old war songs were to be sung by the audience. He was greatly disappointed, however, when he discovered that there were but few who were familiar! with the various songs which were popular during the Civil War.
He resolved after that meeting that he would gather the material for an entertainment that would enable every one present to join in the singing. After hearing all the boys present singing the old war time favorites, “Maryland,” “Dixie,” “Marching Through Georgia,” “Tenting on the Old Camp Ground,” the words of which were thrown on the screen, there wasn’t any doubt but that his method of arousing enthusiasm over the war time songs was a grand success.