[Volume XXVII
THE CHICAGO BANKER
30
THE. CLASSIFIED SERVICE
ADVERTISEMENTS INSERTED UNDER THIS HEADING AT TWO CENTS PER WORD. REMITTANCE SHOULD ACCOMPANY COPY. REPLIES FORWARDED IF POSTAGE IS FURNISHED. USE PRIVATE ADDRESS WHERE CONVENIENT.
FOR SALE
(Articles offered for sale which have been inspected and found as described will be indicated by a star—*).
*For Sale—One four-cylinder Splitdorf Synchronized distributing spark coil. All cylinders must work alike. Coil brand new. Cost $72. Will sell for $25. Address Coil, this office.
*For Sale—Brand new, New Model Reflex 4x5 camera, Goerz Celor 7-inch lens and plate-holder. Cost $125. Sell for $85. Camera, this office.
*For Sale—Brand new Stevens 22-calibre repeating gallery rifle; $7.50. Rifle, this office.
*For Sale—Brand new Korona Stereo camera No. IV, case and six Premo holders. Fitted with Ross imported lenses and B. & L. double valve shutter. Convertible to regular 5x7 by instantly removable partition. Cost $110. Sell for $55. Stereo, this office.
These articles have elicited the praise of both economists and bankers.
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 Investors’ Catechism. By M. M. Reynolds. Cloth, by mail, $1.10.
“Investors’ Catechism.” It is intended to be the first volume in a financial library which will grow as the knowledge of the financial student grows. It contains all that it is essential for the beginner to know, and opens the way for a thorough study of the whole subject of investment. The author has for the sake of clearness and simplicity adopted a catechetical style which is somewhat novel in this sort of literature.
The above books are the best of their kind, and will be promptly forwarded upon receipt of price. THE CHICAGO BANKER,
407 Monadnock Block, Chicago.
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.
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, $1.00. Postage, ioc.
BOOKS ON BANKING, FINANCE ____________AND	ECONOMICS_________________
Credit. By J. Lawrence Laughlin, of the Department of Political Economy, University of Chicago. Postpaid, 53c.
X,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.t 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, everyday speech.
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 teims, abbreviations, etc. For banks, bankers, steamship agents, importers, exporters and manufacturers. Cloth, $5.00.
Government Regulation of Railway Rates. By Hugo R. Mey-er.—-A-Professor of Political Economy in the University of Chicago. Postpaid, $1.60 net.
stance the banking problem and the currency problem are all one. It becomes then a bankers problem, and the bankers of the country should have sufficient initiative, courage and patriotism, to show the. way out. If they fail to recognize the emergency of the hour, they will share the responsibility for any crude or ineffectual legislation which may be placed upon the statute books, and they themselves will be the first and greatest sufferers from the evil effects of such legislation.

The Big Irrigation Show
The United States Land and Irrigation Exposition—the first national irrigation exposition which has ever been given in this country—will be held at the Coliseum in Chicago from November 20th to December 4th. The Trowbridge & Niver Company will maintain a fully-equipped office in Section P. at the Coliseum during these two weeks, and will be pleased to have their friends make use of it as general headquarters.
There will be exhibits from practically every arid section of the United States where irrigation has been applied. The exposition will, therefore, afford the people in the Central West an excellent opportunity to determine for themselves in part at least the nature of the security which underlies irrigation bonds. The Trowbridge & Niver exhibit will cover 6,500 square feet, and will consist of several immense relief models of irrigated districts, with actual running water and miniature farms; comprehensive displays of grains, fruits and vegetables raised on irrigated soil ; large panoramic views of irrigated sections ; sagebrush, and the actual soil in which it grows; and moving picture lectures illustrating in the most effective manner the wonderful evolution which has been produced by irrigation.

Citizens State Bank
The Citizens State Bank is the title of a new enterprise at Excelsior, Minn. George B. Lane is president ; George L. Lang, vice-president, and Harry B. Wistrand, cashier.
The application to organize the First National of Brawley, at Brawley, with a capital of $25,-000, has been approved. W. T. Dunn, Wm. P. Mansfield and others are directors.
tral authority to restore order. This authority might be found in the central bank, which being itself of unquestioned credit, and under semi-governmental control, could legally exercise a power and influence, which it has been necessary at times in our financial history for a private citizen to assume as a volunteer service, or for a clearing house committee to assume, without any legal authority whatever.
The fact of the matter is our banking and currency system broke down completely in 1907. The public was astounded, and we cut but a sorry figure in the eyes of the foreign world, whose banking systems have never so completely failed them in times of stress. All this came about in a period of what appeared to be unexampled prosperity. Oceans of money, but not the amount of a salary check for use! Abundant crops, and factories running on full time, with insistent demand for labor on the one hand, and an urgent demand for the product of the farm, mine and factory, on the other! And yet no adequate agency at hand to finance the movement of the crops and merchandise, without a breakdown of the whole machinery.
The public may have been apathetic before, but it awakened to a lively interest when the breakdown came. The people saw clearly enough that something was wrong, and they are demanding that it shall be remedied. One of the great political parties in demanding the guaranty of bank deposits as a sovereign panacea against panics, and another great political party is proposing the government savings bank, as an offset to the more pernicious measure proposed by its opponent. Neither of the proposed measures will cause two dollars to grow where but one grew before. The enforced guaranty of bank deposits would gradually undermine the very foundations of safe banking. It would be powerless to prevent panic, and under its workings panic conditions would be more acute than ever. The government has unusual facilities for acting as a deposit bank, but no facilities whatever for acting as a bank of discount. It could only attract vast sums of money to the money centers, and the disposition of the money thus taken from the people would be the subject of a never ending wrangle.
These measures are before the public for solution. The people demand some adequate protection against the complete disappearance of the circulating medium of the country. In this in-
Outlook for Banking and Currency Legislation
(Continued from page 6) deposited with his city correspondent does not alter the case. He of course expected that his city correspondent would furnish the cash when needed, in spite of the fact that his deposits were made almost entirely in checks. But his own customers had deposited large sums with him also, and under the same implied agreement. The fact of the case is, nobody became panic stricken sooner than the country banker. Too many country bankers carry only enough money in their vaults to meet daily needs, and practically do not carry any cash reserve on hand at all. If the St. Louis and Kansas City banks had honored all the requisitions for money from the country banks at the beginning of the panic, they would have shipped to the country in two days every dollar their vaults contained. The country banks did not need the amount of money for which they called, but they had the panic feeling and wanted to get their money before it was too late. Many country bankers during the time of stress acquired sums of cash greatly in excess of their actual or potential needs and openly boasted of their hoardings.
What we want is the assurance that money can be had for legitimate wants when needed. Under a rigid currency system, we can only meet a sudden increase in our wants beyond the available supply by gold importations. This method is costly, as we must get the money from Europe if at all, and what if their wants are also extreme and they have no gold to spare? Or perhaps they may unwillingly part with the gold for a time, and then concluding that selfpreservation is the first law of nature, refuse to furnish more, as in 1907.
We must then depend upon the European markets to augment our reserves when they become depleted to the danger point, or devise some currency system which permits of at least temporary expansion. The bank note issue is the most effective instrument yet devised for this purpose, and the question of the control of the bank note issues is the real kernel of the nut. The proposal for a general bank note issue, based on general assets only, suggest too scattered control, and causes misgiving that a permanent inflation of our currency might be the result. In every financial crisis which has confronted our generation, it has been necessary to exercise some cen-