The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-11-13
IDEAS OF BANKERS.
Hon. Theodore E. Burton of Ohio
Discusses ''The Financial
'..s<< Crisis t-
A. A. Crane of Minneapolis a Nomi-
nee for the Executive aS.
"r Board. :*.. a.

New Orleans, Nov. 13.-The American
Bankers association was slow in as
sembling this morning. After prayer the
call of states for five-minute talks was
resumed. .. -.
California invited the convention to
meet in San Francisco, and Washington
invited the convention to meet in
Seattle. .~. .
A committee composed Of delegates rep
resenting the various state associations
presented nominees for the executive
council as follows: '~.
H Wggns vice
cashier of the Capitol National bank. Indian
apolis; A. V. Lane. cashier National Exchange
bank Dallas, Texas; Luther Drake cashier Mer-
chants National bank, Omaha, Neb.; A. "A.
Crane, cashier National Bank of Commerce,
Minneapolis, MINI.
The Financial Crisis.
Theodore r. Burton of Ohio spoke Of
1.-THE Financial Crisis He said
I'm order to understand the nature Of
financial crises it is necessary to study the
whole field of trade and industry. They
are not independent events, but bear close
relation to changing conditions In the
business world. At the outset 1t Is nee
sary to define three terms: Financial crt-
sis, depression, poverty. John Stuart Mill
has defined a financial or commercial cri-
sis as follows: There is said to be a crisis
when a great number Of merchants or
traders at once either have, or apprehend
that they shall have, a difficulty In meet
ing their engagements The crisis which
he defines is essentially financial. 1t Is
most keenly felt at banks and in the
financial centers. It may occur when
trade and industry are not seriously af-
fected. 1t is Of brief duration, and may
or may not be followed by prolonged dis
turbance. A crisis Is, however, usually q
signal or introduction for period of pro-
longed disturbance during which, a de-
cided change for the worse occurs. This
disturbance may be described as a depres-
sion or period of depressions. depres-
sion may be briefly defined as a protracted
season In which the activities and profits
of an industry and trade fall materially
below their normal level. Poverty de-
scribes a condition still more prolonged
than depression, and one which Is OF a
permanent nature. Crises and depres-
sions appear in highly developed cQun-
tries where trade and industry flourish
and there is progress. Poverty exists
where there Is a general condition OF
stagnation, and development either does
not exist or is very slow. Crises and de-
pressions are severe in countries which
from decade to decade show the greatest
increase in wealth and material prosper
ity. An eminent financial writer has
said: 'Paradoxical as it may seem, the
riches of nations can be measured by the
violence of the crises which they expert
ence.' If instead Of riches Of nations he
had said rapidity in material develop
ment of nations, this statement could be
accepted as substantially true.
II norder to explain this singular phe-
nomenon, that the most advanced and
progressive countries suffer most from
crises and >depressions, it is necessary to
seek their causes. Their underlying
causes can be traced to the inevitable
changes which characterize modern indus
trial and commercial progress, to the ag-
gressve spirit and energy of progressive
peoples. These changes require the