The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-11-12
8y Exclusive Wire from The Associated Press.

New Orleans, La, Nov. 11.-Th,
'wenty- eighth annual convention o
.he American Bankers association to
lay began a three days session. FIT
teen hundred delegates had registered
at headquarters tonight, in addition t,
nearly 500 visitors and ladies. Th,
first days session was opened will
prayer by Rev. DR.. Beverly Warner
and then addresses of welcome fol
lowed. President Herrick replied tr
the welcome and delivered his annua
address.
The formal business, which consist.
ed of the reception of reports of Off.
GERS and committees was then taker
up, after which Comptroller of the
Currency w. e. Ridgley spoke of the
change in banking conditions.
MI. Ridgeley's Address.
Mr.. Ridgely said in part:
| have recently seen a statement that
the profits of the operation OF one of
the great railway trunk lines are being
reduced by too great Il density of trait
tlc and too large q volume of business.
Heretofore it had been found that as the
volume and density of traffic increased.
the cost OF operation and particularly the
cost of conducting transportation, was Il
much smaller proportion OF the gross
earnings, and. in consequence, the net
earnings increased more rapidly than the
gross. Now, however, it is found that t
there is a limit to this with given plant
of tracks, terminals and motive power,
and that when the volume and density of
traffic passes certain point, the slight
est delay or arrangement of train move
ment spreads so rapidly and so far that
it more than proportionately increases the
cost of operation and the resulting net
earnings are less than with a smaller
gross amount. The general business Ill
the United States and more particularly
the financial and banking operations are
in much this same condition today and
there is danger in our situation from an
excess of business and q lack of machin-
cry and facilities for conducting it. 1t IS
becoming more and more apparent that
there must be some curtailment of opera
tions or increase in facilities either by the
addition of new means or more efficient
llse of the old ones If we would avoid
serious trouble. IL not disaster.
Too Prosperous.
We now find ourselves in the condition
If the railroad embarrassed by the vol
ume of traffic. With all the machinery
of exchange strained to the utmost to
keep up the present rate. and with every
channel swollen to the full with the rush
ing tide, the slightest disarrangement
spreads at once. and is very far reaching
in it's effects. We must either reduce the
volume of the traffic or add to our facii-
ties for handling it, In the present condi-
ton there is not a sufficient factor of
saftey and there is danger of the strain
exceeding the limit of elasticity if it does,
not reach the point of ultimate rupture.
There has been no falling off in rail-
road earnings; on the contrary, they con-
tinue to increase. The consumption of
iron and steel proceeds at a rate never
cuualcd before. and manufacturing con-
Germs of all kinds are actively and profit
ably employed Business failures are few
in number and small in size. TSere have
been but two failures of national banks
since Aug. ), 1901, and these were or very
small banks which had been ruined, If
rot looted by their officers. Our farmers
arc now gathering and beginning to sell
the largest and most valuable crop they
have ever produced. They are we'll sup
piled with money as a result of good crops
and high prices for the past few years.
Wholesale and retail business is good in
all parts of the country, and the univerS-
al report is that collections We're never
easier to make.
Time for Caution.
financial situation is looked upon with
considerable apprehension. We cannot
disguise the fact that with reserves run
ming down. not only in the reserve cities,
hut in all the banks OF the country, the
situa tion is serious and requires close at
tcntion and careful handling. Now is tho
time for caution and care in bank man
agement. 1t Is in times such as we hayo
been having for several years that banks
get into trouble. What becomes later a
had line of credits is apt to be made in
prosperous years, not when times are dun
and business bad.
Cause of Speculation.
There has been n tremendous spccuin-
rion in stocks of all kinds. and values
now are on a very high level. Tho
schemes of promotion and combination
have been on such an enormous scale as
Ia be startling and bewildering This Is
all so spectacular and sensational that 1t
attracts great attention in the newspapers
and the public mind is filled with stories
of great stock deals and enormous sums
made by spectators. We should remcm-
her, however. that all this is not the
cause of our great prosperity nor its
chief result, but merely an unavoidable
II not necessary, feature of 1t. 1t is not
speculation which has advanced prices
so much as II Is advanced prices which |
nave caused speculation. RailrOad stocks |
have gone up because We have four billion |
dollars worth of manufactured goods to |
move. In consequence, railroad earnings |
We're more than 30 per cent. higher in 1901 |
than in 1886. and the traffic OF the rail- |
roads today is only limited by the capac-
Ity of the cars and motive power \ bill |
lion-dollar steel combination was only |
possible because We We're producing 2S,- |
D0,00O tons of iron ore; 15,000,0O0 tons of !
pig iron; 100000 tons of steel ingots, and |
l2OOO'OOO tons of finished steel a year, and |
were finding a ready market for 1t all.
May Have to Rest.
Nothing can prevent the development |
and growth of this country. We have all |
lhe elements which are necessary and a |
great lead over all our competitors. Our |
iestiny was fixed when all these un-
agualled natural advantages We're placed |
side by side, and il only awaited for its
the coming of our masterful |
ace or men who, for centuries. have been
pred and trained for such a career as is
before us. The final result is absolutely |
'ertain but II may from time to time be
mpeded and checked as 1t has been by
'ad finance and by trying to do too much
II too short time II seems TO be in
'Vitable that We should have periods of
est and recuperation. They are apt 10
"a most severe when we have been going |