The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-10-23
proved.

San Francisco, October 21.-The
actual business of the 18th annual con-
vention of the American Bankers AS
delegates assembled in the California
theatre which was comfortably filled.
The theatre and stage We're hand
somely decorated with flowers, ever
greens and ferns. President Cardwel
Hardy. in calling the convention to
order said in part:
THE unprecedented prosperity of
the past few years. brought us last
fall to a climax Of high prices for
commodities and securities. The same
sunshine which brings to its full frui-
ton our rich harVests, also fosters the
tares. Among the substantial edifices
of our prosperity, have sprung up
artificial commercial structures which
have failed signally, to stand the test
Of time. Over-sanguine people, some
probably not over scrupulOus, had been
capitalizing and recapitalizing schemes
of all kinds and inducing people, with
paper profits, to underwrite f1otations
y
boom had gone too far the natural
reaction set in and a general house
cleaning begun where It was mos>
needed, in the wedding out of over
capitalization and inflated securities
If there is any class of men more than
others who should never take Specu-
lative risks, it is those who are hand
ling the earnings and savings of 9TH
erS, and the seeking of deposits at
high rates of interest, which can only
be earned by speculative investments,
IS a menace to sound banking Saving
depositors should carefully shun such
institutions, of which there are how
ever, happily but few"
On the subject of corporations he
said:
In the formation Of our great in
GuStrial corporations we have been
confronted with new and strange con-
ditiOns. Eliminating those of a fraud
ulent or fictitious character. nearly ali
Of them have been subject to criti-
cism in the matter or capitalization,
and the weak point with all of them
has been the failure to provide 4 rea-
sonable working capital. There has
been q greater crea ton of securities
in the consolidation of many Of our
railroads than actual values. appar-
emily. justify. but the concentration
u Hitld SeiielI ana coIlIIol mas
prouShI ABOUT StapiIliE OF rates,
Whlth mas created an essap!lshea vaIue
To- tnelr legitimate securities; without
h2rdships to the patrons e the roads.
\, N2rd on pupllcity. rs : reIates
10 an pubic coFPo'ttiollS. tIlS. oolile cr1Ii- ~
clSin recently mas oeen mace or the
pupiIcatioh or th@ NtekIE NeM ork
pallh statement use tIie I'll ,ilcIueiIC elLl
hltIe!E 10 i."iitI 10 Il H.o[ai. Ihe ioilii lt
;!ild ;! IlletHod ol hlSthIiIE tLiS SLa.eIllefle
ms oet!i' more OF leSs' q SupJect oL
niScuSSion lot some tl,iie pass. Inc
Ioflh ana hleIhoH - PupilcalloH : hot
u, accufI't tt as sh.ulu De inahe II
Will II Snoul9 Dc ouC go Hot sup
press Il. bdnh StdlSlheHtS, III gen
eral' cPhFe! IalF ana tntelHSeh. N
i"IlIiaIioh as 70 tHe SIdtuS oI the
banks ana, II the same pupI!clI% from
ONE" pupI'o cor lioI.| tould pc
'|4uIFeG' lh'SI ih!p RANT Ser\ -ce
"ouln pt rendered ehe nGp!lc.
toIoWinS the roll can: Eugene i.
9cilI2-l@, mayor Of S5i : fanclSco'
mace ~ address extending nearly
welcome to the distinguished VISITORS.
ana he was followed by Governor Geo.
{. Pardee- Another address CT wei
come was made BY James ID. Phelan
on behalf Of The san FRANCISCO bank