[.Volume XXVII
THE CHICAGO BANKER
16
Pioneer Pays Promptly
it pays its death claims. 1 he business policy ot the company is to make a careful medical examination, thus securing preferred risks, and then to stand by our hazards accepted. No quibbling, no delay; but always prompt and courteous with CASH IN FULL the day proofs of death come in.
Annual Rates per $1,000 for Either Men or Women
$12.39
$14.26
$17.08
$21.78
40
45
per year per year 50, per year 55, per year
Age
Age
Age
Age
$10.00 $10.22 $10.64 $11.27
Age 20, per year Age 25, per year Age 30, per year Age 35, per year
Other Ages in Proportion
The Pioneer Life Insurance Co.
GEO. L. COLBURN, President, Pekin, 111.
If You Desire to Collect Your Out-of-Town Items
Promptly, Send Them to The National City Bank of Chicago Correspondence Invited
The National City Bank of Chicago
Capital, Surplus and Undivided Profits $2,000,000
OFFICERS
David R. Forgan, President	L. H. Grimme, Cashier
Alfred L. Baker, Vice-President	W. D. Dickey, Assistant Cashier
H. E. Otte, Vice-President	A. Waller Morton, Assistant Cashier
F. A. Crandall, Vice-President	R. U. Lansing, Manager Bond Department
but the current loans abroad, more than equalize the deficiency. The rapid expansion in our business activities is reflected in an increase of $19,600,000 in our current loans at home during the month of October. This to be one of the largest gains, if not the largest on record. During the month of Nevember it will doubtless be found that all our important bank figures, both on the liabilities and assets side will have arrived at heights unexpected a few years ago. The deposits too, are not increasing now at equal pace with the loan account, but very approximately.
An item that is of peculiar interest in relation to the crop movement is that of circulation for October. Under the provisions of the Fielding Act it will be recalled that our banks may issue emergency circulation to the extent of 15 per cent of their combined capital and surplus upon which interest at current rates is to be paid. Last year the rate was five per cent and it is likely that the same rate will be charged this year. Some banks have preferred to utilize surplus circulation of other banks, in order to avoid the interest rate, but circulation has been in such demand that it has not always been easily procurable.
An interesting question is how should the item of "Deposits made by and balances due from other banks” be treated״ in the monthly bank statement ? Should balances created in the course of ordinary business between banks be treated as deposits? It would appear that to arrive at a correct understanding of the total deposits of banks, the item of "Deposits made with and balances due from other banks” on the assets side should be deducted from the similar item on the liability side. In this respect the October bank statement gives some interesting figures. The Bank of Montreal has a deposit from or balance due other banks in Canada of $1,395,935, but, on the other hand, has deposits made with and balances due from other banks in Canada of $1,619,685. The Merchants Bank makes a unique exhibit in this respect. Its deposits made by and balances due from other banks in Canada reaches the large total of $1,309,008, whereas the item on the other side is merely $13,593. No other bank shows any appreciable amount of deposits made by other banks, the Bank of Commerce being the only other material one, with
■936־$307
Money rules in Montrael at 5 per cent and less talk is heard of any stringency, and if anything the new year should show for a time at least a plentiful supply of money for all purposes.
rapidity that it will be well to study the course of the banking reserves with the object of discovering how far our industrial expansion can be carried without depleting the cash resources of the banks. The bankers figure upon financing the national expansion through accession of deposits, increase of capital stock, and use of existing reserves. Indications are that it will be necessary to draw upon all three.
The Canadian banks are now completing a year of low monetary rates which have affected their earnings somewhat. While most of our older institutions will show diminished profits, some of the banks which have been expanding their mercantile business during the current year of upward trend show increased profits. In any event with monetary rates now on a fairly stable level, and with commercial loans increasing rapidly, our banks can look forward to 1910 as being an excellent year. The excellent results of the present year and the still more excellent outlook for next year, have prompted the directors of the Traders Bank in increasing their dividend from a basis of 7 to 8 per cent per annum.
A dividend at the rate of 2 per cent for the present quarter will be due and payable to the shareholders on the 1st of January next for the quarter ending 31st of December, 1909.
The annual general meeting of the shareholders will be held on Tuesday, the 25th of January next at 12 o’clock noon.
The stock has advanced from a normal level of 140 last week to 148 this week.
The Traders Bank has a most progressive executive and management, and its continued career of success is an outstanding feature in Canadian banking.
The October bank statement issued last Saturday was anticipated with considerable interest by Canadian bankers on account of the emergency circulation. To the general community, however, the item of commercial loans representing the industrial activity was perhaps of greater moment, because for the first time since the October panic of 1907. this figure has reached a new high record in its total. Current loans at home are still lower than in April, 1907,
HORNBLOWER & WEEKS
5Bankers and 5Brokers
Members of New York and Boston Stock Exchanges EDWARD CLIFFORD, Resident Manager
3rd FLOOR, 152 MONROE ST. - CHICAGO
Canadian Banking Conditions Continue Good
Toronto, December 1.—The Canadian Bankers’ Association held its annual meeting in Montreal on Thursday, Nov. 25th. Officers were re-elected as follows: President, Sir Edward Clouston; vice-presidents, Duncan Coul-son, George Burn, H. Stikeman, M. J. A. Pen-dergast; Council, B. E. Walker, E. F. Hebden, D. R. Wilkie, B. B. Stevenson, James MacKinnon, IT C. McLeod, James Elliott, N. E. Lavoie, G. P. Scholfield, C. A. Bogert, F. L. Pease, G. IT Balfour, E. L. Thorne, W. D. Ross.
There were 26 bankers present. While it is understood that the revision of the bank act will not take place this session, H. C. McLeod, general manager of the Bank of Nova Scotia, threw the apple of independent audit or external inspection into the arena of discussion, by the circulation of a pamphlet, giving a detailed series of arguments in favor of outside inspection and containing interesting history7 and references for the past 34 years in relation to the controversy.
He moved an amendment to the bank act, which, however, was not seconded and therefore was not discussed, Mr. McLeod allowing his pamphlet to speak for itself.
The remainder of the business' was of routine character.
It is understood that as his colleagues in the association do not agree with Mr. McLeod on this subject, he will plough his lonely furrow and will carry an active campaign in support of his proposal in the public arena, and will make every effort to have external inspection under government auspices, made a provision of the next bank act.
The discussion which has arisen in the past on this subject has been interesting.
In view of the fact that the New York city clearing house banks have been struggling for some weeks to prevent their surplus reserves disappearing, it is interesting to observe that the reserves of the Canadian banks have not weakened since the beginning of 1909. As a matter of fact they slightly increased, notwithstanding that loans and discounts show a steady expansion.
It is so clearly apparent that Canadian commerce and industry are reviving with great