The times., 1899-09-06
MEETING OF THE BANKERS.
fhe American Association in Annual
Session at Cleveland.

! NHi4NAhS toudy, with proDaDly the IaTSesi
attendance in the history of the organiza-
tion
Between twelve and fifteen hundred Wis
iting bankers, representing all sections OF
the country, We're present. The amount OF
! capital represented by the delegates, in
round numbers is given at S5, 100000.
/ In the absence of Mayor Farley, Director
OF Law Hogsett welcomed the bankers to
the city In a pleasing address. Vice Presi-
dent e. H. Borne, of the Cleveland Clearing
I House Association, in the absence of Presi-
/ dent Thomas Wilson, also welcomed the
4 delegates on behalf of the Cleveland
/ bankers.
In replying to the address of welcome
! George H. Russell, President of the asso-
ciatlon, reviewed the development of the
banking interests in the United States dur
/ ing the last twenty-five years. He said:
There is much larger capital invested
and much smaller profits in banking. more
/ work and responsibility, less returns and
/ appreciation. In the last two or three years
! we note greater resources and a growing
/ independence of the money centres on the
part OF the South and West. But we must
| accept the conditions that now exist, and
recognize the fact that with the age and
greater wealth of this nation the rates Of
| interest will gradually and naturally de-
| cline
| Mr.. Russell referred to the changed con-
| uitions during recent years which had
made 1t imperative for the banker to adopt
new methods. In alluding to the growing
wealth and financial independence of the
| South and West Mr.. Russell said: Il can
i best give you an instance by citing statis-
| tics from my own State of Michigan, which
are easiest obtainable to me. For the year
| ending June 30, 1899, in the 1S5 State
! banks, so national banks, and trust COM
panleS OF Michigan, there was an increase
! In the total deposits of S20,949 1888; Of
| this amount SIS, 344, ,623.77 was in savings de-
/ posits. January /, 1899, there was a total
deposit in the banks of Michigan of $127.-
! 975,49S.75, and on July l. 1899, total of
| $l4o,3l1 ,55S2 29, showing a gain for the first
six months of this year of over $13, 000, 900.
1t is probable that this proportionate in
/ crease may obtain throughout the great
! States of the West. Do you wonder then,
that this year and probably for the future.
we can handle our crops without financial
aid from the great money centres, and that
! for the last two months interest rates have
been actually lower in the Central and far
Western State cities than in New York
City?'
Continuing. Mr.. Russell endorsed the ac-
tion of the New York banks with reference
| TO collection charges on out-of-town
! checks, saying that he hoped other large
centres would take similar action and that
members of the association would no long
| er conduct and advertise the great Amer
| lean free express and collection company.
| He added: "a reasonable charge for ex-
| change and collection would partially re-
| imburse the larger banks for the cost OF
stationery and stamps. In other countries
| these exchange or commission charges go
far toward paying the entire administration
| account
Consolidation and combination are the
order of the day, and in many instances 1t
! would be desirable to consolidate banks,
where the smaller banks separately cannot
use their deposits with safety to their de-
positors or profit to the stockholders, after
paying the cost of administration. We have
| looked with alarm upon the formation of
industrial combinations or trusts, so called,
and yet many of them conservatively form
/ ed Will remain with u.s. and by economical
administration and a lessening of the cost
| of selling to the consumer, may serve TO
| largely expand our home and foreign trade.
| Bankers after time will need to in
vestigate more carefully and discriminate
| fairly among these gigantic industrial or
| CARNATIONS. Like the department stores 10
| the small merchants, the larger corpora
| tions will seriously affect the business of
| the banks in cities which are not favored
| with the location of their head Offices and
! financial management"
George VI. Reynolds submitted the treas
urer's report showing the receipts and dis
! bursements since the beginning of the cur
rent fiscal year, August 10, 1898. The gen.
| eral membership account gave receipts on
account of dues, etc., of SIPS Isl. The bal
| ance on hand at the close of business Au-
gust 81 last amounted to S52, ,064 The stand
| ing protective account showed disburse-
ments to September l. s22, ,709. Balance pro-
| tectiye account September l. 1899 $S, $40
| United States bonds valued at about S27 600
are held by the treasurer as an investment
for the association.
w. C. Cornwell, Chairman of the COM
mittee on education, gave an interesting de-
scription of the work OF the Institute of
Bankers in London, which the association
had been asked 10 look into with the view
of establishing a similar institution in this
country. Respecting the enterprise Mr.
Cornwell, in the committees report, said:
'It is quite natural that an organization
as complete as this one is should show its
| influence in promoting the interests of the
profession. The bills of exchange act 1882
and the factors act 1888 which were
drafted on it's instructions and passed
through its instrumentality, are instances
of its power in legislation. The institute
has also been able on several occasions to
facilitate arrangements between bankers
and the internal revenue and postoffice au-
thorities.
"The formation of an institute Of Ameri-
can bankers on these lines should be a
onparatively easy matter. That the work.
ing forces of our banks are willing and de-
sirous of entering such an association is
shown by the petitions to this association
The proposed institute would bring to them
much knowledge of the theory and practice
of banking to be acquired otherwise only
by experience or individual investigation
AS a means of education and training the
proposed institute must be as valuable to
the banking houses as to the employees
who enjoy its benefits. The per capita cost
would be slight, the collective value i'm
measurable. BY systematic local organiza-
lion in each American city, the institute
may attain a large membership and infIu-
ence within year. Its aim must appeal
to those who believe in more intelligent
application of banking practices in this
country The committee desire instruc-
tions from the association as to whether
it would be the wish of the association to
have the matter taken up actively with
reference to forming such an institute of
bankers in the United States as exists in
England, or to have preliminary steps
taken under direction of the executive
council.
The protective committee reported on the
result of the efforts to run down forgers or
criminals concerned in bank burglaries.
The report said: There are a number of
skillful men in prison and some of them
will be at liberty in the course of the next
year or two. but it will be the fault of
this association and its protective commit
tee If they make much headway in the or
ganization of band of forgers or burglars
or in depreciation upon our members. a'he
81 yrbi oh