9
THE CHICAGO BANKER
December !8, zpop]
Move into New Quarters
Mabton, Wash.—On Monday, November 29th, the Citizens State Bank moved into its new and commodious quarters on B Street, which have recently been fitted up for them at a cost of about $7,500. Their building is the first brick block built in Mabton.
The main room of the bank is large and well lighted, has an area of nearly 800 square feet and was planned to meet the growth of business and of the town. Directly back of the main room is the directors’ room where the officers and directors of the bank will meet and which will also be used as a private office for consultation.
The safety deposit vault opens from the customers’ room and is fitted up with a nest of safety deposit boxes. These boxes are made from one piece of Bessemer rolled steel and afford absolute protection from fire.
For the protection of the bank’s money and valuable papers is used a New York Manganese steel safe of a style and pattern that has resisted all efforts of the yegg-men and professional cracksmen of this country to open.
Added to this, the bank carries as an additional safe-guard a burglary insurance policy which protects it against loss by daylight holdup or burglary of any kind. Further protection from loss is afforded by the bank’s membership in the Washington State Bankers Association and the American Bankers Association.
No efforts have been spared by the officers to make the new bank building complete in every respect and it makes a fitting home for the new institution whose last published statement to the examiner shows a reserve of nearly 50 per cent; more than double the reserve required by the state banking laws; showing the safe, conservative policy pursued by its officers and directors.	^
M. T. Peterson, assistant cashier of the First National, Toronto, S. D., has been elected to the cashiership. O. E. Swartling was chosen assistant cashier.
would lead to a number of intolerable abuses and put many banks out of business.
The regulation of the American currency would be beyond the power of a single institution. During the panic of 1907 over $100,000,-000 in gold was imported and over $200,000,-000 of clearing house certificates were printed and issued in addition to an immense number of private and corporation certificates of indebtedness. In the following year the inflation was reduced to about $26,000,000. No single institution, no matter how well managed, could possibly make such nice monetary adjustments as were required in 1907-8. If the directors of a central bank of issue were business men and engaged in speculative adventures they would be very liable to be caught napping in prosperous times, as the managers of American banks were generally when the panic of 1907 broke out. The failure of a large central bank under such circumstances would inflict such disasters upon the American people that many years of suffering and national distress would be experienced before a recovery could be brought about.—A. Selwyn-Brown in Moody’s Magazine.
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New Bank Elects Officers
The new First National, Zillah, Wash., has elected the following officers: J. D. Cornett, president; R. D. Herod, vice-president, and J. D. Bartley, cashier. The capital of the institution is $25,000.	^
Bank of Toronto
C. E. Parker has been elected manager of the Bank of Toronto at Wallaceburg, Ont., Can., to succeed John Gracey, who becomes manager of the new branch at New Westminster, B. C., Can.
CAPITAL & SURPLUS $1,000,000
Pays a rate of interest consistent with good banking
eludes 1,145 more than reported to the comptroller of the currency in 1908. Resources show an increase of about 8 per cent over 1908 and 95 per cent over 1900; loans have increased 100 per cent in nine years, while investments have increased 92 per cent. Capital stock has increased by more than 75 per cent; since 1900 individual accounts by 93 per cent and total deposits by 94 per cent. During the current year loans have increased nearly 9 per cent, investment in bonds, etc., about 3^4 per cent, and deposits over g1/¡ per cent.
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Dangers of a Central Bank
A central bank, instead of restricting note inflation, would strongly encourage it. The United States progresses so rapidly in periods of prosperity that it would be almost impossible to get a body of bank directors to refrain from excessive note issues during such periods and take precautions to anticipate periods of commercial depression and carry out the heroic steps necessary to provide for such periods. Unless this were done, how could the country’s gold reserves be properly regulated?
The monopolies enjoyed by a central bank of issue would cause it to be always open to attacks of a political or demagogic nature. While it suffered such attacks, business would tend to become paralyzed, and the credit of other banks doing business with it would be seriously impaired while the charges against the central bank were being investigated.
The granting of the monopoly of issuing notes to a central bank would seriously interfere with the privileges of the national banks and make them antagonistic to the bank of issue. All banks would be compelled to rediscount their private commercial paper with the central bank. They would be required to pay for this accommodation, and, consequently, they would have to raise their discount rates to their customers so as to retain their profits. The rediscounting of the commercial paper of 20,000 or 30,000 banks by one large bank would be a difficult matter. It