The herald., 1897-06-12
F1E INVESTOR
A. DoBrNsoN
OFFICE OF THE HERALD.

OFFICE OF THE HERALD.
Los Angeles, June II, 1897.
The State Bankers association Of Mis-
souri, is about to make an experiment which
is of general interest being the establish
ment In the city of st. Louis Of school
of finance, in which higher training shall
be given to young men who desire to en-
gage In business, or who may wish to gain
q practical knowledge of commercial and
financial affairs In their relation to modern
life. This undertaking has long been under
discussion, and one year ago the bankers
of Missouri officially endorsed the project.
Since that time committee appointed has
been busy at work devising ways and
means, and it is likely that the School of
Finance Of st. Louis will soon be an estab-
lished fact.
Some of the leading colleges in the coun-
try have departments devoted to the
study of economics, but the plan proposed
by the Missouri bankers differs from any
present system In use. In that It Is to be
neither branch course In a college edu-
cation nor yet commercial college teach
ing mechanical forms. 1t will be more than
these. for 1t will be a practical training
cCIoOt " III yOuHS IhcIi lOT u pTOleSSlOIi
which requires keen. analytical precision
and mind trained to grasp the techni-
calities of modern business.
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Wall street Is experiencing at present the
symptoms of an incipent bull market. In
fact the street" at large Is somewhat in
clined to accept the idea that conditions
Affecting speculation are more or less
Identical with those which preceded and
led up to the memorable boom" of 1s79-S0.
The basis of the present upward movement
in stocks Is undoubtedly found in the preva-
lent belief that the new tariff bill Is to be
hastened through the United States SEN
ate, and that its enactment. in some shape.
into a law will end the uncertainty In
general business and lead to an immediate
and widespread activity in all departments
Of trade. The favorable crop prospects at
the west are also taken into consideration
by spectators, and the granger railroad
shares are features of the weeks improve
ment In quotations. A very favorable i'm
preston. both here and abroad, has also
been produced by the utterances of the
secretary OF the treasury as to the outlook
for currency reform measures. and 1t may
be also mentioned that the temperance
Of activity and interest in American stocks
in the London market, with some consider
able buying here for foreign account has
In the speculative situation. The market
has certainly widened and displays every
inclination to discount the prospect of i'm
provement. but whether 1t is yet able to
Withstand manipulative bear attacks, war
scares or even the simple process Of profit
taking remains to be tested-Bradstreet
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How much the 1aity in general know
about insurance and the functions of in
surance agents was well illustrated in
New York recently, when one of the largest
newspapers in that city sent a reporter
around to interview insurance men as to
their views regarding child insurance. The
results OF the reporters efforts were shown
IN next mornings paper and 1t was evident
that the men interviewed could have
known very little about life insurance
and still less about child insurance. The
enterprising reporter had thought that an
insurance man was an insurance man, and
had gathered his facts from underwriters
who dealt in fire, marine and automatic
sprinkler policies.
There are seventy-one banks in the
United States which have deposits Of
$5,00O,000 or more. Their combined de-
posits amount to 1854, 900, ,OO0 With one ex-
ception the first twenty banks in the list
are New York banks. Boston does not
appear before No. "a. The largest Boston
bank has $9.150,0OO in deposits, the largest
Philadelphia bank 1850, 600. the largest
st. Louis bank $40. 000, 900, the largest San
Francisco bank $1O6OO.O0O The first bank
In the list is the National City bank of
New York. with $42, ZOO, 900 in deposits; the
second. the National Park bank, with
$37. 500, ,000 the third. the First National of
Chicago. with s32, $4,000. The next seven
teen are New York banks. with deposits
,<-t,, = rnnn
Philadelphia banks another New York
and two Chicago banks. The bank with
the largest deposits is eighth in the list
for capital and surplus and the bank which
has the greatest capital and surplus stands
twelfth in the list for deposits. The Chem
ical National bank Of New York, which is
commonly supposed to be at the very top,
Is sixth In the list. 1t has $2S 25O, 900 in de-
posits. as compared with the Chicago
First Nationals $32. 900 and New York's
National City banks $42.O0 600. But the
Chemical National bank is unique in the
sense that its capital and surplus consist
almost wholly of surplus. Its capital is
only $3OO.000 For a great many years it
has been adding a part of its profits each
year to Its surplus account until 1t now has
$6000,000 surplus and $1500, 900 Of undivided
profits. Most people think that the bank
must have made extraordinary profits to
accumulate $7.500,000 in surplus and profits
on 100000 capital, but that does not neces-
sarily follow, says the Bankers Monthly.
The bank was established In 1924. II, at that
time, 1t commenced to add per cent on its
capital stock to its surplus fund. dividing
per cent among its stockholders, and had
continued, up to the present time, to make
per cent on its capital and the accumu-
lated surplus. as 1t increased from year
to year. 1t could readily have accumulated
H0o0.000 in surplus in the seventy three
years Of its existence. That is just about
what the bank has done. BY reason of its
enormous surplus the stock of the bank is
worth $4,000 for each 500 share.
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The Central American exposition has
been oficially opened at at Guatemala, and
It Will remain open for the next four
months. 1t comprises chiefly an exhibit of
Central American products but there is
also a general exposition of foreign goods,
IL Is believed that the exposition will do
much toward introducing American manu-
fractured goods into the Central American
countries. The exposition is on a large
scale, the grounds cover an area Of over
800 acres special buildings are occupied by
exhibitors from Germany, France. the
United States, italy Belgiur ond rr,