The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-11-16
THE INDIANA BANKERS
ERA OF Low INTEREST ONE OF
THEIR PRINCIPAL TOPICS.
Mr.. Morris's Review of the Bank
ruptcy Law-An Address by
John II. Holiday.

ihtfcldl CiuD assembly rooms yesterday
morning for the second annual meeting of
the Indiana Bankers Association. The
meeting was called to order by Allen NJ.
Fletcher, of this city. president of the asso-
citation. Rev. J. A AIilburn. pastor of the
Second Presbyterian Church. delivered an
invocation. President Fletcher, in deliver
ing the annual address. spoke briefly He
said that with SO much money unused, the
question naturally arose as to whether or
not the era Of cheap money was at hand,
although the reduction of interest brings
no reduction in taxes, salaries or incidental
expenses.
Il do not think" said he, that interest
can profitably be paid at all upon deposits,
except, perhaps, to correspondents at far
points. Neither can we afford to give val
liable services of every sort without reason
able compensation. / believe that where
taxes are high that capital cannot profit
ably be employed; that material reductions
IN capitalization will become necessary In
Boston, recently, nine banks have CONSOLE
dated in one. Similar action is being taken
all over the country in large moneyed CEN
tiers, and will find it's way into the smaller
cities. l fail TO see what hope of profit
there can be in an institution that collects
and sells exchange free of charge and pays
interest on deposits There is no use for it,
unless it be for creating a machinery to
pay salaries. 1t does not pay the stock
holder, and in time he will become tired
of it.
THE day of low interest has come to
stay. L doubt whether it is a profitable
method to send your accommodations to the
East, to receive IL or 2 per cent, when
those to whom you send it lend that money
to your best customers at per cent. or Az
per cent. You dislike to come down to loan
ing money at low rate, but you VII have
TO do it or give up your better customers"
Some Practical Suggestions for Bankers"
was the subject of paper read by Mortimer
lowering, of lafayette who spoke at some
length of the ethical mission of banks.
Every bank, he said, is a strong factor in its
community, and, without regard to station
in life, every person should be treated
courteously. The bank should save the
worthy and strengthen the strong
PACKARD ON BANK TAXATION.
NATIONAL Bank Examiner Orlando NJ
Packard read the last paper in the fore
noon. He discussed the taxation of banks
During the course of his remarks, Mr. Pack
ard said
The taxation of banks in many pro-
VISIONS IS ABSURD arbitrary, proscriptiVe,
unjust. No local tax aw of any State ought
10 make 1t possible to compel a bank to pay
double taxes upon real estate carried upon
It's books as an asset in addition to paying
the taxes upon the real estate itself no mat
ter where located; nor to compel a bank to
pay taxes upon a false and fictitious valua-
ton Of It's shares of stock, based upon its
combined capital stock surplus and net I'M
dlvlded profits, without having first de-
Quoted large percentage for bad debts and
prospective losses than is now made in some
IocallueS In this state, nor to refuse de-
oucton from the valuation of its shares of
stock to the extent of any part of its assets
invested in government bonds, which, no
matter how much more valuable such in
Vestment might make the stock, the para
mount federal law says shall be absolutely
nontaxablo for all purposes whatsoever; nor
70 arbitrarily attempt to compel bank to
transform itself into a private detective as
ISOLATION by furnishing list Of its sup
posed depositors to the local tax assessor
nor to compel a bank to pay the cost of it's
successful reduction of its tax valuation be-
fore the State Board of Equalization
Routine reports from various committees
We're heard, and the following committee on
nominations, with instructions TO report
this afternoon, was appointed: w. A. Apple
gate of Corydon; Hardin Rhodes of Mum
Gle; d. E. Snyder, of Plymouth; e. c. Cal
loway Of Elwqod A. G. Lupton, of Hart
ford City; NJ. L. Case. of Dunkirk w. H.
Gardiner of Valparaiso
MIR. HOLIDAYS ADDRESS,
At the afternoon session an address was
made by John II. Holiday, vice president
at large. In the course of his remarks Mr..
Holiday said
AT our meeting a year ago all the re-
ports of the conditions of business marked a
decided Improvement and held up the pros
pect of a season prosperity, which time has
since confirmed. We emerge from bad times
into good so rapidly that often we do not
recognize prosperity when we really have
1t and II is necessary to stop and take an
account of stock before we realize how well
of we are. But the most casual observer
OF events must see there has been a great
quickening and strengthening of the bust
ness situation, not in Indiana alone but
throughout the whole country. The seasons
have been fruitful and great crops have
been gathered, yielding for cereals, at least
enhanced prices. The greatest cotton crop
ever grown is now being picked. over 500
100000 of gold will be mined in 1888 and as
much silver. Our exports for the last fiscal
O0e,O0O and the proportion Of manufactured
goods was never so great before. The rail-
way traffic, sure measure of business ac-
tivity, was never greater than now, when
every car and locomotive is in use and the
complaint is rife that freight cannot be
moved fast enough.
I'm this State the jobbers report BUSH
ness at least y per cent. better than in 1891.
The manufacturers make a greater claim in
many cases. The retailers are not behind,
either, and while all agree that margins are
closer and profits smaller, they also agree
that never were collections better and fall
ures fewer. There are features about these
different lines caused by fierce competition
and low prices, which are unsatisfactory as
compared with the past and which may
darken the future, but there is no dispute
as to the volume and activity of business.
Underlying these classes are the farmers,
who are getting out of debt rapidly or saw
ing money so that q majority are able TO
hold their wheat in the hope OF an advance
or have gone out of he market Tor farm
loans In the banks money has been in
better and Steadier demand, but with most
of you I believe it has come in faster than
1t has gone out in spite OF every eftoft Ior
profitable use. The financial centers are full
of capital. New York is the cheapest money
market in the world and American capltal
the extent of manN millions mas gone
abroad.
1s'Tne cheapening of money is affecting all
financial Institutions and is likely 10 90
much harm not by a permanent reduction
of rates if that should come, but by the
transition that attains it. Every period OF
| ital is inactive and cheap. This in turn is
followed by a period of speculation and
doubtful investment when overconfidence
prevails and all sorts of aNurlng schemes
are presented. The holders of capital anx-
ious for returns or higher rates. Weld to tae
seductive pleas and little by little go be-
yond the point of safety. It is not in bad
times that banks lose money but in pros
porous times. when the senses are lulled by
the haimy air and when the sweet music
Of the sirens promising large interest aud
prompt payment diffuses a roseate hopeful
ness which makes the financial mariner
obvious Of reefs and shoals. This is the
time of danger not when the stress or adj
versitv calls out every vestige or skill ana
attention.
'Whether rates of interest are to be per-
manentlv lower or not. we are fast ap-
preaching such situation, and it may well
merit the most careful consideration. 1t VIII
test the caliber Of every banker in the c0un-
try To pass safely through il, to, resist the