The daily silver state. [volume] (Winnemucca, Nev.) 1903-1907, 1903-10-22
CONDITIONS
IN WORLD
OF FINANCE
President Hardy, of Bankers
Association, Calls Attention
to Those Existing
AND EXPLAINS THEIR CAUSE
Recent Period of liquidation
Had No Bad Effect Upon the
Country In General

SAN FRANCISCO, Oct. 21.-The
actual business of the 29th annual
convention of the American Bankers
Association began this morning when
the delegates assembled in the Cali
fornia theatre. The auditorium of the
theatre was comfortably filled when
President Caldwell Hardy used his
gavel at 10:3O o'clock and later per-
sons other than delegates began to
augment the numbers in attendance
The theatre and stage were hand
somely decorated with flowers, ever
green's and ferns.
President Hardy, in calling the con-
vention to order, said:
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 it's full frui-
ton our rich harvest also fosters the
tares. SO among the substantial ediEces
of our prosperity has sprung Up ar
tificial commercial structures which
have failed signally to stand the test
of time. Over-sanguine people, some
| probably not over-scrupulolls. mad
been capitalizing and re-eantalizing
schemes Of all kinds. inducing people
with paper profits to underwr te fiota-
tons which they were uElble &c carry.
| The. boom had gone too ar, lie nat
ual reaction set in and a general Louise
cleaning began whero it WAS most
needed. in the wedding out of over
capitalization and Influenced secu:i-
ties.
I'VE have gone through IeI iod of
| liquidation in speculative circles of the
most drastic character, without results
except to the few who have gotten too
far beyond their depth. The process
is not yet clear and the way is now
strewn with cripples and indigestible
securities, but business conditions are
sound.
IF there is any class of men more
than ours who should never take
speculative risks, it is those who are
handling the earnings and savings of
others, and the seeking of deposits at
high rates of interest, which can only
! be earned by speculative investments,
! is a menace to sound banking. Saw
| ings depositors should carefully shun
such institutions, of which there are,
however, happily but few.
THE advantages claimed for bank
circulation of other countries over our
| bond-secured notes have much merit
| from a scientific standpoint and would
| have more from a practical stand
point, if the element of risk could be
eliminated which has brought disaster
IN some instances. The practical
question is could it be satisfactorily
srafted ontot our banking sysem, and
If so. how? The idea of a central
Dank or a branch banking system.
.s repugnant to our conception of free
government and institutions, and un-
less,I mistake the temper of our peo-
pie, will never be accepted. Neither
viii any form of currency be accepted
which does not carry with it the same
confidence of security which our bank
notes now enjoy.
| In the formation of our great in
uustrial corporations We have been
confronted with new and strange con-
ultions. Eliminating those of fraud
ulent character nearly all of them
have been subject to criticism in the
matter of capitalization, and the weak
point with all of them has been the
| failure TO provide a reasonable work.
| ing capital
"A word on publicity, as it relates
to all public corporations. The publi-
cation occasionally, of an individual
bank statement, which it subsequently
develops is not legitimate. would be
poor excuse for the suppression of
bank statements in general. and I
think a suggestion that we do away
with bank statements would be unani-
mously voted Banks generally bear
intelligent and fair information as 10
their standing and If the same public
ity from other public corporations
could be required. a most important
service would be rendered the nphlic.