Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-21
PUBLICITY FOR
CORPORATIONS.
President Hardy of American
Bankers Association Urges
That Remedy
ANNUAL ADDRESS DELIVERED
Strong Ground Against Branch BanSs
and increase of the Currency Along
the Lne Of Asset Currency Taken
Currency Committees Report-other
Matters.

San Francisco, Oct. 21.-The actuai
business of the Twenty ninth annua'
convention Of the American Bankers
association began this morning. when
the delegates assembled in california
theater. The auditorium of the theater
was comfortably filled.
Eugene E. Schmitz, mayor OF San
Francisco. made an address extending
hearty welcome to the distinguished
visitors and he was followed by Gov.
George c. Pardee.
Another address Of welcome was
made by James D. Phelan. on penaii Oh
the San Francisco bankers.
President Cardwell Hardy made
brief response to the messages of good
will and hospitality and then delivered
his annual address. He said in part:
..The unprecedented prosperity OF the
mast few years brought us last fall to
the climax OF high prices for commodi-
ties and securities. The same sunshine
rich haryests also fosters tares. Among
the substantial edifaces OF our prospefi-
" have sprung up artificial CONNER
cial structures which have failed Sig
nally to stand the test or time. over
sanguine people. some probably not
oyerscrupulous, have been capitalizing
and recapitalizing schemes of all kinds
inducing people with paper pronts 10
underwrite fioatations which they are
unable to carry. The boom had gone
too far. natural reaction set in and
the general house cleaning began where
1t was most needed, in the wedding out
OF oyercapstalization and inflated Sc
curities.
1--WE have gone thru period OF liqui-
dation In speculative circles OF the
most drastic character without results
except to q few who have gotten too
FAR beyond their depth. The process
Is not yet complete and the way IS
still strewn with cripples. indigestible
securities, but the general business con-
ditions are sound
The speaker after cautioning the saw
ings banks against paying high rates
for deposits and to shun the seeking
OF high rates of interest on deposits,
said:
THE vast majority OF us feel assured
we have had so far a. The currency
we have needed and that an increase
OF 1t Just at this time would lend a
further undesirable stimulus to specu-
lation. The enormous production OF
gold in the last few years has been
either lost sight OF or. II studied, Will
furnish food for thought. Advantages
claimed for the bank circulation OF oth-
er countries over our bond secured
notes have much merit from scientific
standpoint and would have more from
q practical standpoint II the element
fof risk could be eliminated. which has
brought disaster in some instances. The
practical question is could 1t be satis-
factorily grated on our banking system
and II so, how? The idea OF central
bank" or "branch banking system" is
repugnant to our conception OF free
government and institutions. and, un-
less mistake the temper of our people,
will never be accepted.
Neither will any form OF currency be
accepted which does not carry With 1t
the same confidence of security which
our bank notes now enjoy.
I'm the formation OF our great indus
trial corporation we have been con-
fronted with new and strange con-
ditions. Eliminating those of fzaudu-
lent or fictitious 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
failure to provide a reasonable work
ha "a
creation of securities in consolidation
In the matter Of our railroads than ac-
tual values, apparently, justify; but
concentration OF management and con-
troll has brought about stability of rates
which has created and established a
value for their legitimate securities
without hardship to the patrons of the
roads"
Hardy closed with a plea for the
same publicity of the conditions of all
corporations as are required from
banks.
Secretary Branch read his report fol-
lowed by George F. Orde, treasurer.
The currency committees report was
then submitted.
Report Of Currency Committee.
ITO the American Bankers Associa-
tion:
"As instructed by the special cur
rency committee appointed at New
Orleans to investigate and report on
the present currency system of the
United States, the chairman of this
committee not being in attendance a,
this convention, ! beg leave to submit
the following report:
There Is at present more real
money in the United States than at
aEy previous period in our history.
Taking the country altogether there is
no scarcity of money. including United
States and national bank notes, to meet
any legitimate demands of business.
Compared with Sept. l a year ago the
rational banking circulation has In
creased $52,S27,551.
'srhe general stock of money in the
United States Sept. l. 1908, was as fol-
lows: