The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-10-20

doubtless come In Tor snare or your |
attention.
The steady downward trend Of inter-
est rates during the past few years has
TO some seemed a cause of alarm for |
the future of banking, as indicative of |
a probable shrinkage in dividends, IL |
not of enforced liquidation.
For myself | do not believe that !
the present low rates of interest are |
necessarily permanent. Not that we |
may expect a return to the high rates !
formerly current; but that increased
activity on Industrial lines, the growth
of business resulting from the widen
ing of our commercial horizon through
the acquisition of new and vast areas
OF territory, the necessity for employ
ment of vast amounts of capital to be
used i'm these enterprises, WILL through
increased deman[ for money compel
higher rates for its use under the ma
tural law Of supply and demand.
The question of trusts and their re-
lation to the banking interests of the
country will claim notice in your dis
cussions. Perhaps no subject before
the people at the present time Is re-
ceiving a larger share Of their atten-
tion than this one of trusts. In all cir
cles, i'm labor conventions and society
meetings, at political gatherings, meet
ings of boards of trade, and business
Convocations Of every sort, 1t is being
put forward, and its status and in
| triCaCies of relation, not only to banks
and bankers, but to all people and
government itself. indeed, argued pro
| and con.
| Some there are who argue for their
| existence as necessity and who claim
| that the gigantic business operations
| and industrial undertakings of the flu
! ture cannot be successfully carried on
Independently of these vast aggrega-
| tiOns of capital, or in any other way
| than. through the combinations, which
is their peculiar Characteristic That
the vast sums of money the far-reach-
| ing and complete control of appliances
| of labor they enjoy, will enable the
| trusts to so minimize waste and lessen
the cost of production as to enable our
| people to compete successfully in the
markets of the world with those coun-
| tries wherein cheap labor is made the
| basis of Successful competition-some-
thing we as a nation will ever seek to
avoid, and cannot consider for a mo-
NEST as a justifiable proceeding.
| Others again argue that such aggre-
CATION of wealth and power as the
trust represent, concentrated in the
hands of the comparatively few, con-
stitute q menace to the liberties and
welfare of the people as a whole, and
should not be tolerated or permitted,
and that the destruction of competition
such as follows the creation of these
monopoles will in the end result in
higher prices for necessities. and so
tend to impoverishment of the money
to their hurt, to enrich and benefit the
few, and so on.
QUESTION OF TRUSTS.
Whatever the truth maybe as to these
matters, gentlemen, one thing seems
certain. Trusts are here, and they
have come to stay. Their capital stock
is being floated and forms in the ag-
gregate a mighty bulk of marketable
securities, listed and quoted upon our
stock exchange, and being offered as
collateral for loans to the banks, and
take it that the question that most i'm
| mediately concerns us as bankers al
| this point Is the question of the sta.
bility of character and value of these
securities, which are sure to come into
our hands in this capacity of collateral
and our consequent attitude toward
them.
1 have no doubt this association will
consider this question carefully, and
with a view to unbiased and exact jus
tice in the matter.
The question of interest on deposit!
is an old one, and one, l think, to bt
determined by us as individuals rather
than as an association. AS an inCen
; and so to become savers-as a means
Of keeping the money so deposited IL
| channels of trade rather than III pOck
cts and secret hiding places, interes
/ | on deposits in some localities at leas
must be considered wise policy. Their
, | are in round numbers $500 banks in tn
United States. Every one Of these de
pends for its prosperity on the accom-
modation and good will of its custom
: | ers. If it cannot make it an object 70
the business of it's vicinity to deposi
with il, then it must lose all profit Incl
dent to. and inhering in depOsitors ac
, | counts, and cannot flourish. Large
, strong institutions in large cities ca,
,, be Independent, and need not seek Gus
tom as smaller ones in towns and vii
lagos must. One rule cannot work 70
all, is my view of the matter.
a question was sprung at the meet
| ing of the American Bankers assOCia
q tion, held recently in Cleveland, of tn
a advisability of establishing a credit de
! partment, adjunctive to the federate
: banking interests of the country 1t
. probable value and feasibility as pro
, ject may be mooted here. Here, agair
i it seems to me, locality must largel
! govern eXpedienCy. Such an agenc
[ would, doubtless, prove Of value
s banks in cities where the standing {
q would-be borrowers would, necessaril,
n be a matter for inquiry through othe
4 channels Of information than thos
o possessed Immediately by the bank
4 but in smaller towns and commun
v ties, where nearly every customer
: | personally known to the bank, and h
standing easily verified, there woul
o seem to be no use for such an adjunc
( AS TO TRUST COMPANIES.
- Other matters, such as the possib
tnE nd 4
: purely banking functions by tru!
% companies, and the consequences there
4 Of in lessening the business of purel
banking concerns of a national systel
II of check collection with fixed charge
+ therefor. The operations land the e
@ feet of those operations) of the presel
Il bankrupt law upon banking interes
q (to my mind a topic of importance
r. with others to be suggested by men
! bers of the association, will, doubles
= come up for consideration, and be alb
n debated and carefully considered
v the association; and that your Concll
O sions and declarations, gentlemen, wi
be most respectfully received and ger
orally recognized by the public {
!, authoritative / have no doubt for,
;. use the language of an ancient Roma
n SENATOR spoken of the Roman senat
20 They will be the conclusions and de
!, larations of those competent to col
:, slider and fearless to declare. I'll
"a Bankers association of the Keystol
" state.
:, In conclusion, gentlemen, let me sa
~ that l believe these are the days
80 promise for the bankers of this coul
a. try. For some years we have bee
"a ! forced to consider conditions tendiI
= to pessimistic rather than optlmist
20 views-depression and paralyzation
IL, AIFaIa f11pr pnn oil