15
THE CHICAGO BANKER
December 25, !pop]
What the	First—
Northwestern	The Northwestern National Bank of
National Bank	Minneapolis has the most extensive list of bank correspondents of any
of Minneapolis	bank northwest of Chicago, clears more items direct, and handles the
Can Do	largest volume of business on all
For Bank	banking points in its territory
Correspondents	
In selecting a reserve a^ent ability to render service	Capital - $3,000,000
should first be considered	Surplus - 2,000,000
government deposits the government bonds have suffered a depression in value.”
George E. Roberts, of the Commercial National, said:
“Government bonds have always been a high class of security. It is only within the last few years that anything else has been accepted by the department to secure government deposits. The banks simply could not get government bonds at the price they could afford to take them at, and the secretary of the treasury then arranged to accept other bonds as security. This action was afterward authorized by congress, and is set a precedent which was wise under the circumstances. However, conditions have changed now, and there are plenty of government bonds to be had, and I think it is perfectly proper on the part of the secretary to return to the original arrangement.”
V
Officers Elected
The Salem (Mass.) Savings Bank has elected the following officers: Charles S. Rea, president; George H. Allen, Daniel A. Varney, George R. Jewett, Francis H. Lee, Wallace A. Chisholm, and George West, vice-presidents ; Charles S. Rea, George H. Allen, Daniel A. Varney, George R. Jewett, Francis H. Lee, George West, Robert Osgood, Wallace A. Chisholm, George W. Grant, Henry O. Fuller, George Chase, William P. McMullen, John Pickering, Henry P. Benson, Edward Lane, Frederic G. Pousland, William D. Chappie, George R. Felt, John J. Mack, Richard Wheat-land, Robert M. Mahoney, William E. Northey, and Eugene J. Faben, trustees.
A new bank building is to be erected by the Avenue Bank and Trust Company, Chattanooga, Tenn.
upon it. The natural effect will be, of course, to create a market for the bonds, and national banks would have to get the government bonds. I see no reason why the order should not be looked upon favorably. There is no reason why the government should not ask the bankers to take up the bonds. So far as we are concerned, it will affect our bank very little, as we do not carry a great government deposit, but I do not know how it will be with other banks.”
William A. Tilden, president of the Fort Dearborn National, said:
“The effect of an order of that kind will be, of course, to enhance the price of government bonds. I presume it will act as an advantage to some banks, especially to those which the bonds have cost more than they are really worth. While, of course, I knew that the bonds were held rather high, I was not looking for this action. I have not heard the matter discussed and had not given it any thought. The result will not be anything drastic, as there is no stringency in the money market at this time, and there would be no particular advantage to use other bonds, and banks could use the government issue as well as any other. They will now be put back to something like the price they ought to command.
“I think the order is a step in the right direction,” said George M. Reynolds, president of the Continental National. “In fact, I am a little surprised that the same thing has not been done long before, and I believe that the national banks of the country, generally speaking, will be heartily in favor of the plan. This order from the secretary of the treasury is an assurance to the public that the government is going to do all it can to stimulate the value of government bonds. Heretofore, when other classes of securities have been accepted for
tage they probably would have brought only something like 83.
“This is creating a fictitious value, and I believe that is the sole purpose in issuing the order. The national banks have been buying as few government bonds as possible because of their high price, but now they will be forced to go into the market and buy them. Other bonds would bring them 4 or 4J4 per cent, while these only bring 2 per cent; but the national banks will either have to buy them or else give up their government deposits. It is an artificial way of getting the Panama bonds on the market.
“In my opinion the whole bond plan is wrong. It would be better to scatter them among the people than to have them confined to the 10,000 or so of national banks. They are obliged to take at least $20,000, I believe, as a basis for circulation, each, but it would be better for the country to have them circulated among the people.”
Ernest A. Hamill, president Corn Exchange National, said:
“It is rather a large subject to express an opinon on offhand, and I have not given it any thought before. The order would naturally work a hardship on those banks which will have to buy a less profitable bond—one that is bringing a low rate of interest. They have been allowed to carry railroad and other bonds which have been considered more profitable. I would not consider the change an advantage to the banks, as they will now have to substitute the government bonds of lower interest for those they have which bring more money.”
John A. Lynch, of the National Bank of the Republic, said:
“I suppose the secretary of the treasury has some good reason for issuing the order, but I would hardly like to criticise or comment