Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1884-08-14

specified. Thirdly Because this al.
rectly assists and encourages the ma.
terial interests OF our common country.
The next best business Is that repre-.
sented by the paper OF merchants en-.
Baged In legitimate ventures, where
the funds are believed to be intended
Tor The benefit of the success of such
ventures. BY reason of the fact, how
ever, that merchants and manufacture
ers offer special Inducements, thus
escaping any risk, purchasers ia good
standing II Dat their notes, take advan-
tage of the inducements, and thus
relieve the market of the best class OF
paper. The banks, not
finding enough OF this, accept other
Endorsed paper, not always knowing
whether the funds are to be used for
legitimate or speculative purposes.
Herein the banks are sometimes used
to foster speculation, and thus abused.
1t may be broad assertion, but IL Is
believed to be true, that loans
sought to be obtained upon one name
paper with collateral securities Of
stocks or bonds, inevitably partake ola
speculative nature, else why do they
not liquidate, realize on the property
&hu oNOiu ut dbSNtT i
plain.
A bank may conduct its affairs sue
cesslully a long time, but there viii
come day, when having made such
loans, 1t will share some OF the losses.
Money thus lost or tied up is diverted
from uses more beneficial to itself and
that public 1t Is always ready to serve
when properly directed.
i knew merchant in high standing
In his community, and wherever
known seeking TO obtain loans to pro.
vide for his legitimate needs, found the
market disturbed, offered security with
his name. A prudent financier said
to him; DO not thus offer your paper;
your name is good enough, and II you
cannot get money on 1t alone your Sc
curities will not help 1t.
OF course all loans should be well Sc
cured but ii Is the right kind of wis
dom that prompts banker to with
hold the use of funds entrusted to
his care, though the security may be
good.
The burden of providing for the
wants of the various legitimate INFER
ests OF the country should b.. borne
equally by the banks in gee eral But
TO do this successfully demands the ex-
erclse of conservative principles and "A
sturdy refusal to- enter into any scheme
of lending money ut enticiag Rates on
speculative securities.
Should not bank make money? Il ,
all fair means, yes. Capital Is entitled
to and should receive compensation
for its usa. But let it be earned in the
good old way. A fair and hon
est compensation for fair
and honest use. A banker
should refuse to lend money on securl.
ties at fifty cents on the dollar of their
market value, If he does not have
faith on their basis, for by doing so he
thus encourages the building of q
structure that may fall aud If it does
not catch him will make his neighbol
suffer. With each recurring disaster
TO the financial world, those who are
entrusted with the management o
banking Institutions lo'k abou
them for the causes tba
led to it, and begin to hedgt
against further threatened results
This Is right, but great care SHOULD
be exercised lest they may disregard
the obligations they are under 10 tbs
very interests of the country to which
they have been and al ways
will be ind .bted for their best Dusi
ness.
Daring the recent panic in New
York very conservative institution
was approached by news rep ,rter
ISIS ii true that you have called in
some large loans tc-day?n "ReVers,
the question and you have it right,
was the reply. This action was largely
Instrumental in staying the threat
ened Widespread alarm,
A serious abuse OF bank is to con
| duct II solely with view OF making
money without references To i.s con
temporaries or the interests vi the
various industries of TIE country
Dishonest practice, OF whatever M
ture, is that kind OF abuse that no
1 only brings ruin to those prac'iciny II
but brings down many innocent PEG
pie, disturbing, as We have recently
seen, the very existence OF that whicl
holds government and society To
.ether. These lessons it is our priv
iege to study.
/ cannot close without referring b
the very able. exhaustive and clea
manner in which Mr. Geo. 5. Coe has
alluded to some abuses, in repor
made to the New York clearing hous'
ut "A meeting held June 4. Every banl
official In the country should read II
II refers more particularly to New
| York. but some of the abuses mentioned
exist elsewhere, and are applicable II
every business center.
The following paper was read D!
Mr.. Henry w. Yates, president OF TN
| Nebraska National bank, Omaha, Ne
hraska.
ADDRESS OF MR.. II. w. YATES, OF NE
| BRASKA, on THE PREVENTION OF
PANICS
Mr.. President and Gentlemen OF the Conven
| on: ,...
i have always taken great interes
| in the results of these annual reunions
of ba,ikers, but have never been all
| to attend one, although a contributor
p from the first organization Of thu
: American Bankers association.
The questions that are now nprer
most In the minds of the banking an.
financial community, and 10 whlci
reference has been made, are, o
course. OF the utmost Importance MOI
only to the banks but to the public a.
large. Much good ought to result
from a personal conference, such as u
afforded by the annual convention o.
bankers. 1t must, however, be ad
mitted that great opportunity IL aist
thereby presented for the airing Of
vague and impracticable plans, by tht
Confederation and discussion OF when
,,,,,ch Valuable time would be wasted