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THE CHICAGO BANKER
November 6, /pop]
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prevent their occurrence is several years before they are due. They are the result, largely, of over-speculation and the banks have it in their power to regulate their loans so that those persons who lay the ground for a panic by overspeculation will be obliged to do so on their own funds. While a great central bank will not prevent this condition, the officers of an institution of this kind could act as a balance wheel to the general business and banking interests of the country and largely prevent the speculation which would eventually bring on a panic as its result.
Provided that no central bank is formed, I am of the opinion that an alliance between all the clearing houses in the United States for mutual protection and assistance would have a wonderful effect in regulating business —particularly if said central clearing houses should have the power to direct the temporary retiring of a certain proportion of the circulating notes issued by every national bank when the money market showed signs of such easy money as to tempt persons to go into unwarranted expansion because of the lowness of the interest.
This withholding of a certain proportion of the circulating notes of every national bank in a time When money is excessively plentiful would put the country in a position of having a large amount of currency to fall back on in case of necessity. At the present time every national bank uses its own judgment in regard to such affairs, but if a central association had the power to compel each national bank to retire a certain proportion of its currency and keep it out of circulation until there was need for it, the situation would, in my opinion, be much improved.
The Big Fish
Editor Chicago Banker:	Will you please
explain why only bankers and the big financiers are to be consulted in regard to a central bank, and about financial matters generally? The answer will probably be that they are the only people who know anything about it. Then, logically, the same set of people are the only ones who know anything of government matters generally, and the common people should not be allowed to vote or have any say in the questions of government. The idea that the big fish care anything for the 'small ones except to eat them is ridiculous.	h. F. B.
Chenoa, 111., October 28th.
the Security Savings Bank of Los Angeles to $1,000,000 are being considered by the directors.
The Alameda National is preparing to have work started on the 2-story business and office building, which it is to erect on the lot adjoining the present bank structure on the north.
The city of Oakland will vote November 15th on the following bonds: $2,305,000 Harbor Improvement; $1,200,000 City Hall and Hall of Justice; $80,000 Fire Alarm and Police Telegraph Building.
V*
Sees Merit in Central Bank
Concerning the advisability of a great central banking institution for the United States,
I have to say that on the whole I approve the plan and believe that if it is kept out of politics it will be a benefit to the banks and to the people, said J. M. Elliott of Los Angeles. The subject has been discussed by people who have devoted much time to financial matters and who are much better able from that side of the question to give an opinion on this subject.
Briefly, I may say that I think that it would be wise that the stock in this bank, which should have a capital of, say $100,000,000, should be distributed very widely over the United States; that the law be changed so as to allow the national banks to hold the stock as part of their assets and that the directors of this bank should be chosen by the stockholders and not selected by the government, with the exception that the government should have the right to appoint, say two or three men who would vote with the directors and who would have the right to criticise any action of that body which would appear to them to jeopardize the bank or to use it for a purpose which was not originally intended.
I think that the government should deposit its surplus funds with this institution, which should do all the financial work of the government as far as banking is concerned, free; that after paying a reasonable dividend to the stockholders, any surplus profits that there might be should be divided between the government and the stockholders on some equitable basis; that the bank should not receive deposits from other than banking institutions and that in times of stress it should have the rights to issue circulating notes based upon commercial paper, to be approved by the board of directors under government regulations to be established at the time that the bank is created.
The time to prepare for panics and really to
James Patterson as Cashier
James Patterson takes the place of J. F. Johnson Jr., as cashier and S. E. Bagley is made an assistant cashier of the Farmers Exchange National of San Bernardino.
First Bank of San Anselmo
The superintendent of banks received an application for a certificate from the First Bank of San Anselmo, and authorized it to commence business October 19th, with a capital of $25,000.
Union National Bank Suit
H. N. Morris, a resident of Louisiana and receiver of the Union National Bank and National Bank Association, Oakland, filed an equity suit in the U. S. Circuit Court Saturday against Thomas Prather, Edson F. Adams and John Charles Adams to inquire into the use they made of the bank’s money while they were its officers. The bill, as to its allegations, is similar to one filed a few weeks ago against the same defendants charging, on information and belief, the use of the bank’s money by the defendants for their own accommodation and profit without adding anything to the bank’s interest account. It is charged that these transactions occurred between January, 1900, and November 12, 1906, while the defendants were officers of the bank, and thus violated the trust reposed in them; that when they had reached the limit of personal transactions they used pliant corporations and individuals as their agents to borrow money for them. It is alleged that Edson F. Adams had withdrawn for himself on January 6, 1903, an aggregate of $184,718.22; John Charles Adams had obtained $60,146.24, and Thomas Prather $68,793.19. It is not claimed that these amounts were not repaid, but that the bank received no interest, and that the withdrawals were illegal and unauthorized Banking Notes
The Bank of Mountain View has been consolidated with the Farmers and Merchants’ State Bank.
Robert A. Moyes has been appointed cashier of the Commercial National of Ogden in place of O. M. Runyan.
The Pacific Savings Bank of Los Angeles has incorporated with a capital of $25,000, by J. W. Swanwick, A. M. and M. T. Chaffey.
It is reported the Campbell Bank will erect a 2-story concrete building on corner of Central and Campbell avenues.
Plans for increasing the paid-in capital of