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NEW BRITAIN DAILY HERALD, FRIDAY, MAY 11, 1925, e SUITABLE FLOWERS FOR THIS OCCASION AT VOLZ FLORAL CO. So This Is Oklahoma ! Tel. 1116 |the people of Spain against the gay wdventures of King Alfonzo at Deaus [ville and other I'rench resorts. I White House togethor shortly after | FIGHT LOOMING UP Ty ' . Fairiield Leader May Yet Try to Dethrone “Boss" — ., ‘ | BY GEORGE H, MANNING | (Washington Bureau of New Britain Horald), | NEW HAMPSHIRE FARM FOR GERALDINE FARRAR She Leases Secluded Old House Near dents who sought to question him as | |he came out of the White House { o g = « | “Just called to pay my respects to i ; |the president, boys, that's all: no poli- ties or business of importance.” Mr, | Daugherty nodded a smiling concur- rence, It is extremely unusual, however, [for men in public life to journey such distances as from Bridgeport to Washington and return simply to pay thelr respects to the chief executive, |In fact, it is not being done these | days. It was suggested at the White House that Mr. King had first called at the justice department on business, Mr, King suid he had done no busi- ness at the justice department, ! It was suggested at the White House that Mr. King had first called at the Justice Department on hus ness, ‘This aroused the suspicion that | the former republican National com- mitteeman might have attempted to| Influence the appointment of one of his friends, or block the appointment | of someone clse to the vacancy as United States distriet attorney for Cennecticut, which has been vacant since District Attorney Smith died on February 9. i H Mr. King would not state whether These two New York debutantes flew over the city in an air- nhe had called at the Justice Depart- 0 ) 12 iha NaW. . Ehglana | nle B s i oW streets. N \ was injured. ment; but Attorney General Daugh- means of getting the New England | plane throwing bombs into crowded streets, No one was injured. o e e | turcopathic soclety for the past four | { delegates to the republican national| The bombs were circulars for the Park Avenue street fair, The §¥° e ohbal Rk DRARE raARSDMBIARLorRE chin convention of 1924 pledged for & Sec- | oo v Miss Edythe McC left) and Miss Mar, o H Assistant Attorney General Holland, |Y°ars has bec aRODE ; 8| R S e | girls were Miss Edythe McCoon (left) and Miss Margaret Hen- (o has charge of appointments, was|bill. Wwhich was introduced into the Mr. King's reception by the p nessey. ;L!rsf‘n! rlmm \\'mr}nnz:on 1r;;lu_v and | senate by-_\-"nalvr Beselgel. dent and Mr, Daugherty made it quite his secretary could not recall anyone| SRR T it Chate s spl et ot (Uhe Faot that | by the name of King having called. | Girl Reserves and Hi-Amo the former national committeeman | Senators Brandegee and McLean | has been unhorsed in Connecticut he | and all four Lnnr:‘r:ru'r_m con:rt-.*“!t\)h-r;‘ s 4 scognized as having o id- are away from ashington, so that | t:"fi."‘,' ‘,r,f\:(',;";,f';:is":“):;'i.:"" ‘(::":"L Mr. King did not come to the Nation-| The annual May social and dance |ing the wealth which flowed to her credited with still heing a powerful | peared on time. . 1t was but a few {will be given under the auspices of |during the world war, is remarkably | o= C T 0 S national political figure with formid-| minutes after his = arrival that Mr.|dent's big reception room and talked | the Amho Girls’ club in the recreation ' prosferous and has no unemployment|VOR the British woman's open golf Able Inflnence in party councils and | King was nshered into the president’s|for about 20 minutes very quietly, in-| BOARD FOR NATUREOPATHISTS |room at the factory tonight. The fea- | problem, Cyrus I. Woods of Green- |championship here today defeating in many states outside his own. | private 'office wheer they chatted|tently and apparently in very g00d| Dp Jyanklin Coombs of this city|ture of the program will be the play-|burg, Pa., resigned ambassador to|Mrs. Alan McBeth in the final of 36 Mr. Daugherty is too wise in poli-| Pleasantly together for about 20 min-| humor. !has been advised that the house and |ette, “Wanted a Wife," the following that country, declared upon his ar-|holes by one up. tics to overiook the advantage of Mr, | utes. Learning from Mr, he | genate have passed the blll creating | girls taking part: Anna Brog, Ceeelia | rival on the George Washington today Mrs. McBeth, as Miss Muriel Dodd, King's influence at present, his pos.| Just as Mr. King was leaving At-[was leaving for Connecticut on the|a state examining board for nature-|Krzynowek, Mary Nickson, Adrianalon his way to Japan where he willwon the champlonship in 1913 and Ybly greatly increased power at|torney General Daugherty came un-|1 o'clock train Mr, Daugherty insisted |opathists and that the bill will go to|Hostum, Margaret Kenshaw, Amy hecome American ambassador. | created surprise yesterday by elimin- <ome future time and his value about | announced into the White House of-|on taking him in his automobile to|the governor for his signature within [Chapman, Agnes Cassella, Elsle Beers,| He sald there was no truth in re- | ating the title holder, Miss Joyce a national convention. fice. Whether President Harding had |the Union station. They left the|the next 10 days. Dr. Coombs, who|Freida Czellicz and Bertha Kalwat. fports that there had been protests by | Wethered, North Hampton for Two Years, North Hampton, N. H., May 11,— Geraldine Farrar, the prima donna, has leased a secluded farm near this town for two years and will come here for rest and quiet as soon as the place can be made ready for oceus |pation, it became known yesterday. The farm has an old colonial housa and is situated near the ocean but [far back from highways and other |residences, It is not far from the lamall Boars Head summer colony. It |1 owned by A. W, Strong, a half brother of Harry K. Thaw. 2 Miss Farrar was quoted as having There ought to be a lot of Oklahomans attending this annual j[o¢/ared that i the auiet estate she bathing gitl revue at Galveston Beach, Tex., May 13, Here's the (ram tne strain of the court proceed- 0il State’s entry—Miss Helen Jackson of Wagoner. She has won ings incidental to her suit for divorce | many beauty prizes. And it's no wonder. from Lou Tellegen in New York. gt R ¥ TR SPAIN HOLDS WEALTH | WINS BRITISH TITLE Vast Amounts of Gold Which ¥lowed | Miss Dorls Chambers Defeats Mrs, [ in During War Being Held—Pros- | | Championship. Washington, May 11—The question of whether John T. King of Bridge- port, for several years republican] national committeeman and the re-| publican *boss” of Connecticut until J. Henry Roraback dethroned him and took the honors for himself, is| planning to shortly make another| forceful attempt to sci the polit- I reins in the st arose here to- day Wwhen “John T.” called at the White House and talked for some time with President Harding and At-| torney General Harry Daugherty, the | president’s political manager, | It was rumored in some quarters| that King is making a bld for admin- istration support in a new attempt| to do a “come baek,” and that he gave the president and his political manager some advice about the best R PR Ao e | has been presldent of the state .\'u-! MacBeth in Final Game of Golf > | | perity is There, Plan Hikes for Week-End | . yors, May 11.—Bpain is hold- telephoned to the justice department for Mr. Daugherty to come over and talk with Mr. King could not be’ {learned. But they (King and Daugh- erty) sat down together in the presi- |all capital to confer with them. Confers With Harding Mr. King's appointment Tresident - Harding was set for 11 o'clock in the morning and he ap- By The Associated Press, Burnham, Eng, May 11. — Miss Doris Chambers of Wirral, Cheshire, with King that By OSCAR P. AUSTIN Stetistician, The Nationol Cily Bank of New York. A modest paragraph that appeared in the annual report ot the Comptroller | of the Currency, just issued, puts the “banking power the United States in 1922 at $50,175,000,000 against $24,- 341,000,000 at the beginning of the war, $10,685,000,600 in 1900, $5,700,000,000 in 1890, and approximately $2,141,000,- | 000 in 1870. Our share of world bank- ing power is now estimated at approxi- mately 50 per cent, aguinst 27% per cent in 1870. Our banking power in 1922 is more than double that at the beginning of the World War, What Banking Power ls What is this mysterious something which we call “banking power” and the equally mysterions and even less factor which we “credits” which are closely re- lated to banking power? “Banking power” is usually defined as the sum of paid up capital, reserves and sur. may with safety to their depositors as well as to themselves loan out a certain percentage of the deposits placed with them, and it is this com- bination of capital, surplus, circula- tion, and deposits which the business world recognizes as “banking power.” Just what proportion of this grand total of “banking power” is actually loaned out by the banks cannot be stated in exact terms, though the fact that the loans and discounts of all banks in the United States in 1921 approximated $30,000000,000 at a fixed date, June 30, as against $48. 000,000,000 of “banking power” at the same date, at least suggests that ap- proxumtefy two-thirds of the actual “banking power” is in the form of loans and discounts which form the “life blood” of the actively moving industry of the country, View of Wall Street Reading from the right, Trinity Church, New Stock Exchange extension, J. P. Morgan & Co., directly in front of Stock Exchange. Extreme left, National City Bank plus. note circulation, and deposits of the banks of the countrv. The paid up capital belongs to the bank to uti- lize as it may see fit, so does the sur- gleuflu‘md other profits which have rot distributed to the stockholders, 80 does its own bank notes which are put in circulation, while long experi- ence jn banking lines shows that banks This assertion that the loans and discounts made by the banking power of the country form the “life blood” of many active industries and lines of trade is quite justified. The farmer must have at certain seasons of the vear, especially at seed time, harvest, and the marketing period, a much larger pum of ready cash than at other I seasons and it is far more convenient | and inexpensive for him to borrow this money at interest when he nceds it than to keep it in hand for the | few comparatively brief periods of { the year in which he needs it for cur- rent operations. Other producers of domestic materials, the mines, the forests, the fisheries, find it necessary to borrow at certain seasons of the year when the demands upon them | are above normal; the railroad and other transportation facilities must borrow at times to meet the unusual demands upon them in traffic activi- tiks, needs for new rolling stock, and increased compensation for employees. In manufactures, however, perhaps quirement of success{ul business, Raw materials, which are largely the prod- uct of the farm and mine, must be bought, chiefly at home but consider- able quantities abroad, workmen must be paid with promptness and regu- larity, manufactures turned out must be warehoused and await opportunity to eIl at favorable rates, and all these features in the activitics of the manu- facturing industries reouire large sums of capital and eunplemented by still larger sums in the form of loans at certain periods of the year’s activi- ties, more than in any single industry bor- | | rowing, the use of money obtained by | temporary loans, is an absolute re- Banking Power and Industry With the life blood which loans have given to these industries, the United States has become the greatest manufacturer and greatest exporter of the world. The people who habitu- ally borrow such proportion of their financial requirements as ci stances may cesses by which loans can be made | from the banking power, on stocks, bonds, or other similar securities, notes, “acceptances,” etc, and so the flow of money into and out of the and business moving. Even this vast “banking power” of $48,000000,000 and actual loans and discounts of something more than $30,000,000,000 does not by any means measure the total value of all the cir- culating media of various sorts con. stantly passing from hand to hand among the people of the United States, This real circulating medium includes the checks, drafts and other pieces of paper by which business men transfer from hand to hand their claims on.the wealth deposited in the banks of the country, for only an extremely small part of she actual business transactions in the Uhnited States are represented by actual cash. If a bank makes a loan to an indi- 1geest, know the pro- i banks keeps the wheels of industry How the United States has come to control fifty per cent of the Banking power of the world, and what this extraordinary expansion means. Credit Currency. Upper left, a promissory note. Upper right, a bank check. Lower left, a bill of exchange. Lower right, a bank draft. cash but informs him that the sum in question stands to his credit in the bank and he may check against it as he may desire. He draws checks in ayment of the various sums which Ee desires to pay, sends them through the mails, and the recipient at his con- venience passes thm into the hands of his own bank or utilizes them in mak- ing payments, in his own business transactions, and when they get back to the bank on which they were drawn several days later they are charged against the balance created by the loan and represent just that amount of business transacted. In very recent years in which banks have multiplied and the use of the telephone and auto- mobile has put the farmer in close touch with those with whom he does business, the use of the check in the agricultural regions has greatly in- creased. Importance of Credit Currency The bigger the transaction the more certain it is that it will be temno- rarily represented by a check or other “eradit instrument” Even these checks when they finally reach the bank on which they were drawn are rot usually paid in cash but paceed to the “clearing house” in which the t'aims of the ~arions banks at which vidual haced on his note or other se- o_curity it seldom hands him the actual they were deposited are offset by those of the bank on which they were S it 'BANKING POWER OF THE UNITED STATES originally drawn, and the mere dii- ference supplied in cash. So it turns out that an extremely large percentage of the actual day- to-day business of the country is transacted by the use of checks, drafts, bills of exchange and other forms of “credit currency” and a very small per cent in actual cash. Studies made by the United States Comp- troller of the Currency twenty-five years ago indicated that apparently 90 per cent of the transactions in the cities and larger towns then occurred in the form of credit currency and it is probable that the proportion is now much larger, perhaps 95 per cent. Since the outbreak of the war there hus Deen an enormo.s increase in the use of credit which has reulted in more or less inflation throvghout the entire vorld, It has not increased 1th,” but has len: itself to the increase of banking power. Th ugh | all of this, the position of the Umted tates has been sound, and today we | reprosent approximately S0 per cent of the banking power of the world, as again:t 27 per cent in 1870, The use of this “credit currency” | consisting of checks and other pieces of paper utilized in the payment of to-day transactions of the coun- , forms an extremely “liquid” cur- rency which readily adjusts itself to the daily activities of business, and as the life of the clieck is at the best but brief and its piace taken by oth- ers representing other similar trans- actions, the total of the sum thus rep- resented may be not improperly des- ignated as a huge “revolving fund” fluctuating in size and speed of move- da, ment from day to day and season to | season but representing in these days - g o et £—2 ]‘U St aiRti L JIB w - - il of big business perhaps as much as 95 per cent of the total business transac- tions of the country. “Credit,” says a modern writer on this subject, “rests ultimately upon the fact that many persons possess | funds who have no present use for it, and are willing that it shall be employed by others. The banks are reservoirs of credit. In these are gathered claims upon the wnemploved wealth of the country and through them this wo lth is directed by loans into channels of usefulness. It is brought togeth - in small and large quantities from all classes of persons who do not immediately need it and who do not have the facilities to loan it directly.” America's Banking Power The “banking power” whose uses fulness is thus multiplied by the credit instrwnents above referred to is far greater in the United States than in any other country. Mulhall puts the banking power of the United States in 1870 at $2,141,000,000, out of an estimated wo.ld total of $7,786. 000,000, our total at that time being slightly less than that of the United Kingdom but vastly more than that of any other single coun.ry. By 1890 our total was, according to the same au- thority, $5,012,000,000, an | slightly ex- ceeded that of Great B) Webb, in his Dictionary puts the world's total in ° 500,000,000, of which $i7. existed in the United States, 000,000 in the “British Em; re/ $5,500,000,000 in Central Euroe. No estimate of world banking pct or las been made since the beginning of'the war period, since the fluctuatinns’in the values of the respective currencies, especially in recent years, reader -an estimate for the world extremely dif- ficult. Our own total, which has grown from $3,000,000,000 in 1880, 510,685,060,000 in 1900, $20,000,000,000 in 1910, $24,341,000000 in 1914, and $30,175,000,000 in 1922, now apparently forms about 50 per cent of the world's total. The London Stock Exchange Gazette in its issue of May 25, 1922, remarks that the resources of tke banks of the United States are now “approxi- mately equal to those of all other states combined.” The relative growth of the “bank- ing power” of the United States as Statistics, The United States Treasury, Washington, D. C. which is back of the enormous banking power of the United States compared with the world is illustrated by the table which follows showing the banking power at intervals since: 1870 of the world as a whole and of the United States. Wortp Banxine Powes, 1870 1o 1022 World®* United States $7.786,000,000 $2,140,000,000, 5,500,000, 5,680,000,000 17,520,000,000 1922 No Data 50,175, 3 * Mulhall to 1890; Webb for 1 ) 1870