The times. [volume] (Washington [D.C.]) 1897-1901, 1900-10-05
THE BANKERS ADJOURN.
Closing Days Session of the Conyen-
ton at Richmond.

/ Si-hO.ND, va, oct. 4--The closing
! session Of the convention of the Ameri-
can Bankers Association at the Hotel
Jefferson today was devoted principally
| to the addresses and discussions. IKE
/ speakers were: J. A. S. Pollard Charles
A. Conant, Alfred C. Barnes, President
/ Of the Aston Place Bank, New York City,
: and George Hague, General Manager OF
the Merchants Bank of Canada.
Mr.. Pollard said in part:
| 1T will not be necessary TO discuss al
any length with this convention of prac-
/ teal bankers the merit in favorable pub.
! lie opinion of the individual banking in
stitution. We may presume that without
exception bankers realize the Importance
Of public confidence as it relates to the
| solvency and mismanagement of the par
ticular corporation.
THE banker holds the integrity of his
institution inviolate, knowing favorable
public opinion is part of his stock in
trade. without which the monetary CAPT.
tai might as well not have been invested
When the good opinion Of the public is
superseded by distrust of the bank or the
probity Of officers or directors, its career
as commercial factor is terminated with
an abrupt slam of the doors; the exam
liner reigns supreme in silent halls where
speculation or careless investment has
brought woe to the once proud finaneier.
who must sit, crushed and Inundated,
amid the ruins of Improbable assets, like
Grief upon monument. looking at Des-
pair.
Il wish to ask your consideration OF a
subject equally as important, but not as
universally and diligently followed, and
that is, public opinion of banking as a
business or profession-public opinion Of
the bank in the abstract; a subject re-
garded by this association, however. as
of such vital Importance that competent
committee has been entrusted with the
duty of enlightening the general public
upon the functions ana uses of banks, to
the end that any ideas of mystery in the
purposes and aims OF banking institutions
may be dissipated in the light of reason
and understanding; that their practical
benefits in the handling of credits, in the
economical direction of capital into proper
commercial channels. In the enlargement
of Its use through system and consequent
benefit to all the people, may be under
stood and recognized
Mr.. COnant said in part:
Several recent events have called at
tention in a striking manner to the
changes which nave come over the
economic world within the last few
years. A period of stagnation in bust
ness which lasted for many years has
given place to phenomenal activity in
Europe, in the United States. and even
in the partially developed countries of
the Orient. This activity has been esoe-
cially marked in this country, and has
been accompanied by changes in our
commercial and financial condition
which have attracted the attention of
shrewd fnancieTs and far-sighted stu
dents abroad as we'll as at home. Much
of the foreign capital by which the
country was developed prior to 1898 was
withdrawn from the United States after
that year by the process of returning
American securities which had been
sold abroad This process was at first
one of intense suffering to this country
by deprIving US of necessary working
capital, arresting industry, and throw
ing labor out OF employment. But We
are now Witnessing a new phase CT this |
development. Sending abroad an enor |
nous volume of our products and in |
creasing our exports of manufactures |
within five years by much more than 100 |
per cent We have built up credits which |
have enabled US to subscribe to several |
large foreign loans from our surplus |
savings. Russia. Japan, and Great Brit
ain have touched the fountain OF our |
credit and abundant streams OF wealth |
have gushed forth for their use.
THE United States in the mean time
has become a colonial power, and is
interested in the settlement |
Of the future of China. 1t is probable
that the interest awakened in the af-
fairs of the Orient will lead to large in
vestments of American capital in China |
and the Philippines. and that the secu-
rites issued for these investments will
be quoted on the stock exchanges of the
world, like the bonds of the Egyptian
Government or the Greek guaranteed
oan. All these events have contributed
10 bring New York into the circle of in
-ernational money markets and have
raised the question whether the star Of
financial supremacy was not to move
westward from the precincts of Lombard
Street to our own chief city. These ex-
pectations may require time for their
'ulfillment, but it is already evident that
New York is TO be a more important
actor than heretofore among the money
markets of the world, and may at least
dispute for the second place after Lon
Ion with the long established and veal
by cities OF the continent"
Mr.. Barnes said in part:
Taxation is a necessary function OF
government. Perhaps II should be borne
by those who have made
axation inevitable and those who expect
o derive the most benefit from the eXpen-
iture of the revenue. Most of our pres
mt bank taxes originated in the Spanish
var of 1898, when our people, frenzied by
he loss of the Maine overran the earth
With hollow ships and marching armies
Tow we must pay the piper who furnished
ne field music. for that great Anabasis. J
( you ask me who is responsible for the
var and its consequences, l answer. the
american people: And who will reap the
lost advantage from its successful con-
uct? The reply is again. the american
eople
without attempting a close and serious |
ne lysis of the revenue law, remark that |
ne banks contribute to the country's war
md In two ways. First, directly in the
,rm of the two-mill rate~on capital and
lrplus. A wise and learned Attorney
eneral decided last spring that surplus
pes not include undivided profits Under
lis ruling two banks with precisely the
anne resources settled as follows: One
18th a million dollars capital a million
Ollars surplus. and one hundred thousand
pillars undivided profit, paid four thou
md dollars tax. Its neighbor, with mil
on dollars capital, one hundred thousand
1llars surplus. and a million dollars 'un-
vided profits, paid two thousand two
Indred dollars. Each bank should have
zen taxed four thousand two hundred
,ilars, and the Government, in ,
lese two instances alone paid, or rather !
'rfeited, twenty-five hundred dollars for ,
lat opinion. The revenue from direct tax
ion of banxs was last year three ana a 7
ilf million dollars, being over per cent
all collected under the act of 1895 Our
her tax is indirect, for we pass it along
our customers" 4
Mr.. Hague said in part: 5
THAT banking is a profession worthy il
rank amongst what are called the 5
armed professions. and that its sue I
,ssful pursuit demands considerable | y
lercise Of high intellectual qualities, i
i'll be admitted by any man who has an | *