The San Francisco Call. Newspaper, October 24, 1903, Page 6

\ SAN FRANCISCO CALL, SATURDAY, OCTOBER 24 19038, IN ADD Convention Hears of Country’s Resources. Republic’'s Wealth Is Greatest on | Earth. OSPERNTY of the United States | of the closing of the twenty- | mal convention of the | American Bankers' Association, eld at the California Theater. | Perhaps the most gemarkable address | any convention of the | one presented by Hon. | Trensurer of the United | in which | *“The | F the berts sterday’s ses ng absolutely on | Treasurer Roberts presented ing array of figures, in which he end business of the | that of Great Britain | iropean countries. f Treasuver Roberts wal persed with applause, he referred to the mag- h of tiis nation and | owth of its manufac- | r E ress of dollars at his fingers’ ed the Treasury accounts | ng- | ance, Austria and Rus- | manner told of the | ates and com- | ar products of | | s quoted were of such magni- | they were daz- | used to col were easily ankers, t was that the rity never ry of eny na- eeds apy other | h and products, | f securities in affected the the surest proof ancial ELLIS ROBERTS TALKS ON THE GOLD INFLOW| Treasurer Roberts | uent statemsent of (he; e American nation, and | ed to it were loud | praise for the man- | ial prese address. The a wa | . € California lifted the | metal in the United 1547 to $60,000,000 in ‘ 1860 produced an aver- | ear The event marks | each of the years | jess than $40,- | 50,000,000, blems arise | Piace i more | here where | ith the home The American | ing over $14,- and all the activify | enterprise, meets on have from many points nent to look upon the diterraneen, the ocean of scenes are set for the | are. The sea which by the Phoenicians, the waters dyed | because she has used s to actual coln as wavered from fidelity er her sky, in her at- T gardens and ber ranches, true perspective and of a u tical discussion. beginning of this in the stock of e amount held by 6, and in eircula- s wes $1,016,648,603, n ocould order this stock and could get the metal here hould have & cube of nearly ng 23559 tons and requir- s to move it. Were d placed edge to edge, 84 miles Kk say from New s west of Colorade Springs. close of address.) v ction in 1902, amounting e United States furnished stock, in cirodlation and in off.- 2 try surpasses every o Great Britain 1s § L ours is doubl The increase been $376,021,387. In n bas added $90,000,- Germany, $95,000, Austria-Hungary, $55,500,000, while Rus. ia lost $10,400,000, and in several other coun- tries there has been a reduction. In all of Europe the | gain in the same interval has been $446,600,000, from which is to be de- off in several nations of us & met increase is shown Eee table B at closs of ad- rate our gain before in stock of the yellow 2 that their population smes that of the United States concede that some excess crept into ates of earlier years in our stock, been carried forward, but the methods in France and Russia render it at like excess in greater degree ex- their records. The ratio is therefore urate. ng rvmp‘?lon‘ll that by ver- k of gold is $15.80 per capita; ted at $24.36; of Germany, $6.01; of Russia, of Sweden, $3.43: C at close of ad- th greater assurance and accuracy, we can consider and contrast the boldings of the reasury of the United Btates and of the for banks. Let us take two dates five and look at the totals and the September, 1508 and nd n that period lost mperial German Bank, $152.240,000, while ed in the Bank of France of Auetria-Hungary, $79,120,000, s in all the BEuropean 000 and the losses $151- et gains in official holdings five years were $50,000,000, that of one year of 'our Sece table D at end of address.) The panks, nationsl and other, own §322.000,« 000. Our Treasury holds now $655,000,000, A fair comparison with foreign official -holdings pernfits us tojcombine these sums and to reasn ar the treasure on which our financial ey e base 7,000,000, hard on to $1,000,000,000 The public and private credit of the British empire rests on $166.856,000 in the Bank o England; of Germany on $170,371,000 in the Imperial German Bank; of Ruseia on $404.396 000 in the Imperial Bank: of Frarce on §494, 506,000 in the Bank of France. Exclude th #0ld of the banks, our Treasury slone hoid 39 times more than the Bank of England: 3.8 es more Than the Imperial German Bank, arly three times more than Austria-Hun: 62.1 per cent more than Russia, and 2.6 ent more than France CONCERNING THE PLETHORA OF PRECIOUS METAL HIS plethora of the precious metal in our I country presents three problems interest- ing and important. What is to be the ef- fect on our currency? What on prices and w-=ss? What on our world relations? reasury. ( Sy n ! strength. | | ditions from 1850 to 1860. tinguished Govern- | k back to the decade following the dls of gold in California and study the con- In that period our y produced gold of the colnage value of ,000,000, an average of $56,000,000 & year. See table D at close of address.) With popu- ation ranging from 23,000,000 to 81,000,000, ac- ty marked all branches of industry. 1In the nsus years the value of manufactures pro- duced ran up from $1,019,106,616 to $1,855,861, ¢76—an increase in ten years of $706,755,061. the decade our national wealth incréased by ,836,000. Imports of merchandise Erew $173,509,526 to $353,616,119, more than from §7 48 per capita to $11 25; and exports from $144,875,726 to $383,576,067, again more than double, and from $6 28 to $10 61 The money ip circulation increased from 256,605 to $435,407,252, and from $12 02 per capita to $13 85. ' Of this bank notes were in 1850 $131,366,620 and in 1860 $207,102. 77, and specie ai the two periods $154,000,000 and $235,000,000. Prices of food and clothing advanced, and up to 1858 a general increase occurred of 11 per cent, but in the sum of arti- cles chosen for index thers was & fall of 2. per cent before 1860. Pig iron, a typical prod: uct, went from $20 &8 in 1830 to $22 75 in 1860. In Great Britain from the decade 1845-1857 to 1858-1867 there was an advance in index prices from 89 to 90. The panfc of 1857 befell in_that decade. Howell ‘Cobb, Secretary of the Treasury, pro- yunced “‘the undue expansion of credit, which engendered schemes of improvident speculation, leading to rapid fluctuations in prices and hab- its of extravagance the principal cause for the embarraesments in the commerce of the coun- try.” Others \'ehmbmfi attributed the disas- cour trous revulsion to the cifange in the tarift made by the act of March 8,F1857, reducing rates by 20 per cent. Looking back the student may ask, was not the shadow of the Civil War a contributing cause? It is certain that all branches of business were prostrated and that the distress was wide and intense. The banks suspended, but the Government kept on paying coin. While paralysis fell upon enterprise, the country was not exhausted as in the panic of 1837, Industry and commerce had been rush- ing on too fast, and the brakes worked sudden- Iy _with a severe shock. To-day the contrasts with that perfod are many more than the paraliels. No sectional strife disturbs the national serenity. Our huge railroad system binds all States together, and connects ocean With ocean and the gulf with the great lakes. Our industries more va- ried and so ha broader base. Enterprise takes more extensive range. They cannot be 80 easily toppled over. From 1890 to 1900 the annual product of our manufactures grew from $9,572,437,288 to $18,039,270,660. Our imports of ‘merchandise ran up from $789.310,400 to $545.041,184, and our exports from $857,828,084 1o §1,394,453,082. We -are 82,000,000, with so many electric brains and hearts beating to many rhythms and with chameleon desires. To such, general and sudden change does not come so readily &s to a smaller population with_simpler methods and with narrower ex- perience. The severest cyclone cannot cover a continent, but has & short and narrow path. Our currency rests absolutely solid on its rock bottom of gold. Some ghost-seeing Macbeth may discern weird sisters on the blasted heath, casting their incantations together, with the refrain: *‘Double, double, toll and trouble, Fire burn and cauldron bubble.”” He may dread the rush of United States notes for redemption, may suspect that some Secre. tary of the Treasury will use silver for of- ficlal payments, may tremble at the hazard of wild legisiation. He forgets that $260,000,000 of the Uhited States notes are*of denominations of $10 end below. How can they be gathered in any large volume? The silver ddflars are scattered everywhere, while the silver certifi- cates are all but $27,000,000 in §$10s and below. The people need all small notes and clamor for more. They are beyond reach by any sec- retary for large payments. The power of Con- gress is vast, but it cannot climb Niagara, nor can it overcome the majestio force of this yellow flood of §80,000,000 & year. CIRCULATION IS UNDERGOING VAST INCREASE OMB eritics complain that gold s hot a cheap currency. That is true, and it is its merit: it fs secire beyond doubt. Cheep currency may be devised, If that is wanted, but it will have all the qualities of cheapness; it will be weak, unstable, dublous. Gold ts worth all it costs. It goes masterfully everywhere. It stands sure and steadfast it- self, and ail allled to it takes on its strength and power. Our yellow metal passes in t. Petersburg, Peking, in Hongkong and Tokio, and the United States note and silver certifi- cate march with it in equal favor. The Amer- lcan people were urged to make flat money, be- cause it was cheap, and to coln silver at 16 to 1, because it was cheap. They rose above the temptation and declared not once but twice and always that they want not cheap money, but the best in the world. And they have it, and the annual inflow of $80,000,000 assures it to them and rewards their wisdom. Passible peril lies on another side. Our cir- culatiop is undergoing an immense and contin- uous inflation. 1In five years the money in cir- guiation in this country has run up from $1,816,616,392 to $2,404,617,000, an increase of $588,020,677. The 'strength ‘is that of this growth $356,604,872 has been in gold, coin and certificates, an_annual addition In that form of nearly $72,000,000. We are to confront & fur- ther increase in our circulation, of which gold will constitute not far from $80,000,000 a year. That precious metal, including the certificates standing for it, is now 42.27 of the total, and its share advances steadily. Since October 1, 1808, the efrculation for each person in the United States has run up Trom §24 34 to $20. 75 &nd the part of sort b it from $8 78 to $12 67. While nowhere else are checks and drafts and I'ke instruments used to the same extent as with us, no other country has so much money per capita in cir- culation save France, which claims $39 22, where checks are much less used than here. Great Britain hes $18 20 and Germany : Canada, §14 39; Russia has only §6 50. ( bie C at the end of the address.) of final reserve and redemption;yand the credit built upon it is higher and T, S0 that the potential inflation may be carried farther. 1n this country cash is used for only 10 per cent of transactions; in some localities fof less; in others for perhaps 15 per cent. Cries for more money have been often beard in the land; no one has said how much. The due limit for circulation has not been established. Alexan- der Hamilton quotes Postlethwaite &8 SUppos- Ing that the quantity of cash necessary is one- third of the rents to the proprietors, or one- ninth of the product of the lands. This really only names other unfixed quantities as the standard. We have passed far beyond such limit. The theory has been proclaimed that the circulating medium should keep exact pace with the population. Conditions vary In dif- ferent countr and at different periods. In the same land periods not remote from each other rge additions to the currency cannot fall to affect enterprise, industry and com- merce, the cost of living and the prices of com- modities. But the currency is only one factor bearing on production and consumption. We shall err radically if we treat it as the absolute ctator. With due allowance, then, for contrary influ- ences, how far and in what direction is the yast 1nflow of the vellow metal carrying us? The biind may see that in the past five years | business has been expanded in some directions in an imparalleled degree. Credit has patu- rally been multiplied at least to four times the amount of cash added to our supply. The ex- ploftation of glgantic industrial corporations ran on at a dangerous speed, fortunately to exhaust itself by its own excesses. Promotion of stocks and bonds is not industry; it is spec- ulation, and that finds help and impetus in inflation. In that way the inflow of gold has magnified if not wholly caused the frenzy and the excesses In industrial securities. Those who have climbed too high into the realm of credit must come down, and here the descent, unlike that to Avernus, is not smooth and pleasant. The promoter who has failed to dis- tribute his stocks and bonds may be punished, and those who have petted his schemes may suffer. But a shrinking of inflated securities to their true value {s not a public calamity. In- dividuals may be crippled, industry and en- terprise may have to rest on their oars. Our financial system cannot totter, much less be wrecked. Undue favors may have been shown by some banks to promoters, but they are cor- recting their blunders and looking out for more healthful business. COMMODITY PRICES HAVE BEEN INFLATED RICES of commodities have undoubtedly been borne upward by the inflation. Spe- clal influences have affected iron; Besse- mer plg, which was $10 25 In August, 1898, cost $21 76 at the same time in 1908; steel billets in the same interval have risen from $14 75 to $34; No. 2 red winter wheat, which was T4e, became T4%c; mess pork, from $0 75, jumped to $18 25 and family beef from .| $11 50 to $15; cotton from 5 11-16c advanced to 8 0-16c; Ohlo fleece wool fell from 28c to 27c. By index numbers the advance of all com- modities has been from $76,808 to $97,891, or 21 points. On full examination, the Employ- ers’ Assoclation of Chicago finds that the cost of living in this country has increased 15 per cent in five years. Carroll D. Wright, head of the Bureau of Labor, with all the data of the Anthracite Coal Commission, declares the 8d- vance to be from 15 to 17 per cent. These figures may be accepted as authorifative, Advance in wages follows increase in cost of living. In recent years it has come fast and strong. Large rallway companies and other corporations have added 16 per cent ai one step to wages paid, to meet the recog- nized advance in cost of living. The drift had been downward in wages from 1898, to 1808; &ince it has been steadily upward. In many cases it has exceeded the rise in cost of living, The general average may safely be stated at from 15 to 20 per cent. Persons with fixed incomes are burdened Wwith the heavier cost of living without any offset, as they have the benefit of & fall in prices of commodities, when that oceurs, ‘When wages go up, the purchasing power of those who earn them rises In equal measure. affects prices of commodities, and to the consumption which again gives impetus to production and trade. No one can deny that the golden inflow con- tributes to the currency a share growing more rapidly than the total eirculation, ity: that it lifts prices and wi activity in industry and trade, and pushes en- terprise forward, while it also tempts to undue inflation of commercial and stock-jobbing credit, How do these influences bear wupon our world relations? First of all, our surpassing wealth in gold has placed our national credit on a plane above that of all other countries, and never before held by that of any govern: ment, - British consols, bearing 23 per cent in. terest, long the foremost type of credit, have recently sold below 87, while consols of the United States bearing only 2 per cent range from 108 to 110, and the loan of 1925 com- mands 136. This American republic alone among nations always in time of peace reduces ita debt and after & war mumxumx 4 pay- ment of the cost. y unl olly, not concelvable, can shake this solld striicture,” Obviously the supremacy of our national credit adds to the strength of the republic in commercial credit, general esteem and inter- pational influence in all the world. We fear no evil from exports of gold, for we can well spare more than Europe can pay for {n Amer- ican obligations, in merchandise or in any fo e roductivencs of our people Justin thi The productivenes es this tank. In manufactures the Ameri are far and away beyond rivairy. $13,000,000,000 of annual product Great Britain shows = $4,283,000,000, France _$2,900,000,000, $3,357,000,000 and Austria-Hi $1,506,000,000. These four great nations turn out in manufactures $12,116,000,000 a year, or $1,000,000,000 less than does this country alone, The ecale of living In the United States’ make. ‘We spend more of people anywhere on : - — -+ = helps to feed Europe; indeed, many of its in- | habitants would starve without our grains and meats. How much of the products of the farm ehall be exporte@depends on the crops in all lands and on the purchasing power of our forelgn customers. But we invade the Old World with our manutactures by reason of the ekill and en- eIgy of American lgbor and the methods de- vised by American”genius. We run electric roads besides the Pyramids: we furnish har- vesters for Russi we build bridges in the Soudan and in Burmah; send locomotives- to farthest Manchuria Germany to load coal; sell shoes to Austria; scatter sewing ma- chines everywhere, and our watches keep time on the Danube, the Nile and the Orinoco, Our high wages have not yet checked our invasion of the markets of Hurope and Asia. Increas- ing home consumption affects to some degree the exports of our merchandise, for we ship only what our own people do not use, but the more we make the more we shall seli. The exports of our manufactures for the gight months ending with last August were $278,619,872, and 82.4 per ocent of our total ex- ports; for the like period of the preceding year they were $279,532,692 and $4.79 per cent in all, In the fiscal year 1908 they wers $408,187.207 and 20.82 per cent of all, while In 1902 they were $403,641,401, and 26.77 per cent of the total exports. Mr. Chamberlain at Glasgow, October 6, declared British exports of manu- Lactured articles fell from £116,000,000 in 1872 to_£78,000,000 tn 1902, Upon the marvelous golden inflow American mechanism moves in triumph. Our agriculture is still dominant fn our wheat and meats and fruit and cotton. The remarkable growth is in our manufactyres, now constituting nearly a third of our éxports, predictions and rock- |aribbed sre our material and financial condi-, tions. Predictions can prudently be based upon. them. But the minds of men are a shore and chartless sea, and no one can tell when or why pallid fear may brood horribly upon its waves. The nerves of the multitude are a vast electric system which some accident may start into sparks or even flame and shock and far- reaching utterances. Into this mystic reglon our theme does not lead us, even if we had the courage to enter there. We have heen DISTINGUISHED FINANCIERS WHO DELIVERED ADDRESSES AT THE CLOSING SESSION OF THE BANKERS' CONVENTION AND GOVERNMENT OFFICIAL WHO SPOKE ON NATION'S WEALTH. studying What can be weighed and measured, ' this stock of a siream whose course and force can be quite clearly mapped. This golden flood 1s without peer in its mag- nitude. "It has brought to our people and our Government treasures richer than any before recorded In human annals. It has covered the continent and blessed all the inhabitants. Its sources and its current are not exhausted. It continues to spread itself over every valley and plain, fructifying as the waters of the Nile. Bankers may do much to_direct it into right and beneficent channels. They can prevent its diversion for sinister and harmful purposes. The strippings of the surface of the mines have been brought to us. Riches from lower levels are within sight. 1f the American people are prudent, will let thelr common sense and oold reason govern, they shall ses that the pros- perity they enjoy s the earnest of more to come, of material achievement beyond the scope of prophecy, deserving to be adorned with moral and spiritual flower and fruit which shall glorify humanity. WEIGHT AND MEASUREMENT OF OUR GOLD'| NE cubdlo foot of standard gold is worth $826,840. $1000 of new gold coin welghs 33.75 Troy ounces. The dlameter of the eagle (§10 plece) is 21-20 of an inch. The stock of gold is estimated at $1,277,- 302,651 (October 1, 1808), and if no allowance be made for abrasion, will weigh 32353, (avolrdupols welght). ¥ ks TReduced to a solid mass, it would contain 8934.2 cublo fest and would fill a vault that measured 15.785 feet on all sides. It coined into eaxles and placed edge to .d;‘ it would make a ling 2116.84 miles long. t placed on board frelght cars, with six. teen tons in each car, 1t would require 147 cars. ‘With an estimated population of 80,831,000, 4 gives & per capita of $15 80, TABLE B. STOCK OF GOLD IN VARIOUS COUNTRIES, AS SHOWN BY LATEST AVAILABLE Increase in five years and average annual increase. Increase Annual Country. Jan. 1, 1808, Jan. 1,1808. for five years. _Average. Great Britain. $438,000,000 $528,000,000 $00,000,000 $18,000,000 France .. ,810,000,000 947,700,000 187,700,000 27,540,000 Germany 668,500,000 763,500,000 95,000,000 19,000,000 Austria- 227,700,000 288,000,000 55,300,000 11,060,000 Bulgaria 1,000,000 1,400,000 400,000 80,000 Denmark 15,300,000 15,800,000 200,000 40,000 Ttaly .. 96,500,000 101,600,000 5,000,000 1,000,000 Netherlands 21,900,000 88,500,000 16,800,000 2,320,000 Norway . 7,800,000 8,200,000 400,000 80,000 Portugal 5,200,000 5,300,000 100,000 20,000 Bervia 1,200,000 1,400,000 200,000 40,000 Spain . 46,500,000 79,100,000 38,600,000 8,720,000 Sweden . 8,600,000 17,800,000 9,200,000 1,840,000 Switzerland ..110 - 24,000,000 29,900,000 5,900,000 1,180,000 Increase for five years. sde o ne Russla $756,800,000 $2,080,000 Belglum 30,000,000 2,060,000 Finland . /4,800,000 40,000 Greece 500,000 20,000 Reumania 14,500,000 1,000,000 Decrease for five years.... T, TABLE C. CIRCULATION OF FUROPEAN COUNTRIES, PER CAPITA. From latest attainable figures. Country. Total. Great Britain, 18.29 France . 89.22 ustria-Hungary 5 Denmark ...... 1.2 Ttaly .. 9.68 Netherlands 20.29 Norway 8.91 Bweden 10.75 Russia 8.50 Switzeriana 1857 Bank, t., 1808, Sept., 1908, Bank of England.. Ramaie $1oneb0001 Bonk o poamtar 366,866,000 454,508,107 Austro-Hungari 142,184,631 221,804,087 Imperial German Bank. 200,065,107 170,371,208 Netherlande. Bank: oore Syescis 31187 a8 t N : 187, Bank of Spatn 57,526,502 71,265,028 National Bank, It 58,768,500 04,137,576 Imperial Bank, 530,036,500 404,396,417 Total ...... $1,576,438,117 $1,656,783,066 $261,867,204 TABLE B. hd FINANCIAL CONDITION IN 1850 AND 1860. Population of the United States Net ordinary receipts of United States. Customs ............. Imports of merchandise. Per capita. z Per ta. Increase in ten years, $766, Balance In United States Treasury. Total money in circulation Per capita. TABLE D. HOLDINGS OF GOLD BY OFFICIAL BANKS IN EUROPE. Value of manufactures produced in census year. 755,080 ~ | VOTE IN FAVOR OF EMERGENCY CIRCULATION ONGRESSMAN PUGSLEY of New York then presented a report and resoiution indorsing the report of the currency committee and, after some discussipn, the report and resolution to indorse the currency committee were adopted. The report presented by Congressman Pugsley was as follows: The currency committee, composed of men eminently quaiified to deal with this intricate problem, and representing different sections of our. great country, after much discussion and consideration have presented a valuable and conservative report, without a single radical feature in it. It may be said that there is nothing new in the report, but this questi has been discussed for years by bankers convention, by representatives in Congress and by the press. The discussions have taken a wide range, embracing almost every feature ol the currency question. Some have favored more currency; others have heid as tenaciously to the position that there Was money enough for all practical purposes. We have had sug- gestions as to emergency circulation, supple- mentary circulation, elastic currency and cur- rency issued by clearing-houses and numerous other devices and suggestions as to the rate of tax to be applied to such currency ahd whether it should be issued freely at the option of the banks or under the authority and direction of the Controller of the Currency. There is no doubt that our system can be improved, but T do not beleve it will be revolutionized. 1t is essential that its volume should rise and I with the varying tides of business commerce. It is the most mportant measure before this convention. It is important be- cause It reaches and should interest ail sec- tiong of our republic. A sound and stable curréncy is the life blood of the nation’s com- merce and prosperity and it is of vital import not only to the banking and commercial in- terests but to the people of the whole country that our currency should be sound beyond question and good beyond peradventure. The great essential of any currency is quality rather than quantity, and I am glad to say that the bankers and citizens of California have ever stood for quality and that they also have evidently been successful in obtaining quantity. Wherever our flag waves of the Atlantic to the distant islands of the Pacific, and from the sunny south to Alaska with its eternal snows, we should have the best currency that the brains and skill of America can evolve. We want to see the world's standard the American dollar and our currency system surpass that of any other nation on the face of the gilobe, but only by most conservative legislation can this be accomplished. In the broadest sense it is a fational guestion. What is of the greatesi value to the people should be the aim of bankers and all legislation, and not what should be of the greatest value and assistance to the banks. The banks are the servants of the people, not the ters. TI people are keenly interested in this question, d mot only is it being considered and discusssd by the Pres t of the United States, by Represen- tative in Congress, by the press, by bankers, but by the people at large. I do not belleve that the bankers of this country for selfish Interdsts and purposes will do aught to re- tard the general prosperity of the country. On more than one occasion they have shown themselves patriots id 1 believe they will urge and favor only such legislation as will result the countyy's good. 1 have been instructed by the executive council to present this resolution: ““Resolved, That the report of the currency compittee appointed under resolution passed at the last annual convention of the American Bankers' Assoglation held at New Orleans be adopted, and that the president of this O~ clation appoint & committee of three fof®the purpose of urging legislation along the lines recommended in the report. ‘The important portion of the report or the currency committee indorsed yester- day in the adoption of the resolution brought forward by Congressman Pugsley was as follows: In the ovinion of your committee the most serious need is the reform of the sub-treasury from the islands MIGHTY FLOW OF GOLD INTO THE UNITED STATES IS DESCRIBED RESS TO BANKERS BY ELLIS H. ROBERTS, NATIONAL TREASURER —_— Good Work Done by Protective Committee. BankRobbersand ForgersAre Dis- cussed. HE protéctive committee of the American Bankes Association made its report on the work ac- complished t during the last year. Much good work was done in the running down and conviction of burglars and robbers. The following is the report in part: Robbers who were member of the assocla in ignorance of its memborship. ment s credible bec they bad abandoned their pury to attack a from which they with the accidental discovery of its membership sign. rested for attack 21d so, they dec! state- eviousty A band of ggmen™ who had, heretofore, carefully aveided members of the associativii, ked one last winter. It has been since ed that the b ad broken its mem- sign and been without one for several Fourteer members of the associ; robbed by burglars during t resultant loss of $43,686 1, 1865, to S the assoeiation 021 the operaticns thieves. From May 1, 1805, to Se banks not members of lost, as reported, $030,740 The only forgery orgarization that ugon & memt past broken up at viction of its members organizetion in the he cu'mination of a reacted this seas aswociatic o1 tw) years’ work to oceasional clever gust, 1900, reproc dorsements of bank throw suspicion thereto. In_August, trauded In New ade on two mem City, but. alt rected _suspict: could be had until the resumed operat orge Ross as_m fred Hearst f his forged that the Fresenter as Brush, h perated upon be: his arrest, wi pleaded guilty vanced age, earst_receivedga ander Stone was tory. Reports have eration September 13 143 torgers have been ar been semtencec to this season and swindl whom ne of these have rations pr: seven ea dles recently and was s term of fou Many of the ndles con- tain an element ame. and ficers. In swindler who iz now larg: arrived in town, he wi of opening an office and w parent preparation to commence busi Without other formality than ¥ of his prospective landiord posit and a pla lines_ he is per siderable sums, wh! ulent after he has of his supposed bal The protective Bankers’ Assocta since the fall of 1 t itself in every particular s pressing the criminals, me important few years. ‘The operations against mies of small bank and expensive. ing undone to break u; these gangs o men,” but it is evident that much labor and expense will be involved in this ¢ the protective work in the future in small towns should be on their guard should make preparations to act Intelligently in defense whe in_the effort to capture the cr nals We append the report of the Pinkerton Na tional Detective . fch is distributed among the members v follow this report In convention. Following table shows arrests and of forgers, swindlers, convi bank burglars and on members Amer- to September Forgers co Forgers sentenced to indet Total convictions 21 Total specific sentences. A3 years Average specific sentencs .... 4 years 1 month Bank burglars specific terms, Total specific sentences Average specific sentences Bank burglars convicted convicted and sentenced to including three outlaw raid 21 118 years & m ..5 years § mo and sentenced to system in such wise that the money with- drawn from the banks for custom duties as ‘well as internal revehues shall be deposited in the banks and thus be made available for use in the community from which it has been withdrawn. Such a reform could be inaugu- rated by giVing to the Secretary of the Treas- ury discretionary authority to Permit depasita 10 the extent of 50 per cent of the capital and surplus of national banks of customs receipts as well as internal revenue receipts guaran- teed by securities aceevtable to the Secretary of the Treasury. Such an arrangement would render fmpossibie the embarrassments which have frequently occurred as the result of treas. ury accumulations. Regarding the question of circulation, the first and most important requirement is the immediate repeal of the present limitations of $8,000,000 per month upon the withdrawal of circulation, so that the expansion and contrac- tion will be automatic and governed by the surrounding altuations. Under the present re- strictions many banks are unwilling to issue gurrency for temporary and lexitimate needs. which they would {ssue if they felt certain that tw gumcy could be retired when no longer needed. Emergency eirculation could, within careful Iimitations, be safely permitted upon the actual deposit with the Treasury Department of se- curities acceptable to the Secretary of the Treasury, and upon such deposits circulation could be' issued promptly to meet actual em- ergencies, which would not be Jossible if time were taken for the examination of general assets by the Secretary of the Treasury and Comptroller of the Currency. A tax of 6 per gent per annum, should be imposed upon mich emerge! circulation to insure a ten its Teturn 68 the issuing bank, this tax (o e ax 1860. 23,191,876 31,448, $7,135,780,000 $16,150.616,000 48,592,888 58,064,500 30,668,658 53,187,511 172,500,538 353,616,119 144,37 -'rg 833,570,067 *1,019,106,616 x,su,n!fi% 32,827, SEm B 2 -85 131,306,520 3 u 1 1.8 fi'.s“ aside as a safety fund to Secure the U. States Treasury for the redemption of ot 80 iasued. This emergency circuiation should be fssued without any distinguishing inark from other national bank circulation except tg substitute the words ‘“‘secured by bona: proved by the Sccretary of the Treasury. Head of the words 'bonds of the Untted States,” for being amply secured there should be mo discrimination against it beyond the § cent tax. To farther liberalize the circulation comunlitee recommends that the Unttan SEaor fax circulation lhoulu.?l. |I....m,m o the ‘of currency based on all classes N Tt end of United An able address on the “Education of Bank Clerks” was then presented by J. T 85.5. lnn‘h and implements, llt!?o?‘umb'r 100. cloths and clothing, 91.3: fuel and lighti: and bullding materials, 1 indeterminate terms ........... .. Bank burglars sentencéd to death . Bank burgiars a Bank burglars escape Bank burgiars acquitted . . B. Finley, president of the Fifth National Bank of Pittsburg, Pa..and the commit- tee on nominations then prese S re- port of officers to be elected for the en- suing year. The Teport of the committee on nomin- ations was unanimously approved by the convention and the secretary was in- structed to cast the ballot for the election of the:officials. The list of names of the officers elected to serve for the ensuing year will be found in anotber column of The Call The prizes donated for prize essays-on bank topics by the United States Invest- or, through its treasurer, Frank P. Ben- nett, were awarded by Colonel Robert J. Lowry, ex-president of the Amerfean Bankers' Auodarmnmand one of the he competition. ,“'g::-n‘;‘n( prize of $300 was awarded to F. M. Farwell, 1 Nassau street, New York, his essay being “Combining Smail Banks.” The second prize of $300 was awarded to Chauncy Thomas of Denver, his subject being “Bank Collections"; the third of $200 was given to Richard W. C. Mérington, his essay being “The Bank 3 ¢ Hollday.” L:;:smdn! appointed by the donors were Joseph G. Cannon, vice president Fourth National Bank, New York: Col- onel Lowry, president Lowry National Bank; John P. Odell of J. P. Odell & Co., Chicago; Frederick Robie, president of the First National Bank of Portland, Me. The report of the protective committes of the association was furnished in print- ed form to the convention and a summary of the report will be found in another cotumn. 02.2; drugs and 1288 house sking .6; 107.7. All articies, 102.3. "verags orite, Taad: Al aken. st TogCe R0 Average prices In Great Britain, 1848-1857, 80: 1858-1867. 00.