Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-03-26
Mayer & Co., Seventh 4's s.esst NV.

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the panic of 1888. without single national
bank failure in Washngton-an honorable
record not equaled in any other large city.
But you are also among our leaders in all
civic enterprises and in all projects for the
general welfare. We Commissioners can
count upon you to respond to every call to
public duty, and we know how generous you
are with your own money and not with that
you hold in trust in responding to every
worthy private appeal
mo men have done more for Washington
than its bankers, and they will do still
| more in the future in the great work of
development and Identification. In that
you financiers ought to be especially repre-
sented by statue or statues, beginning
perhaps with one of Robert Morris, the
financier of the revolution, without whom
| George Washington would have failed. The
heroes of peace as we'll as the heroes OF
war should be represented among our
statues; and what financiers have done for
the nation and the national capital should
be commemorated." He closed by saying
that, having twice unwillingly taken the
commissionership at the urgency of men
present, he counted upon their continued
and systematic support as his best compen-
81 ton.
Ellis H. Roberts, treasurer of the United
States, prefaced his remarks with the quo
tations: Behold, how good and blessed it
is for brethren to dwell together in unity"
Bankers" said Mr.. Roberts, do not
care much for theories. They care more
for actual probabilities. They do not
clamor for radical changes in legislation.
but remember, rather. words are the
daughters of men; deeds are the sons of
God
Mr.. Roberts congratulated the bankers on
that fact that Congress is not Haunting
'the red flag of financial change"
Banking in Washington.
Mr.. e. Southland Parker, president of the
National Metropolitan Bank, was then in
troduced.
1.-The banking business of Washington,
said Mr.. Parker, has had a marvellous
growth Many years prior to 1887 it was in
what might be called a quiescent state,
when suddenly it awoke from it's Rip Van
Wrinkle slumber, and in the space of three
years thereafter the number of banks was
doubled and the capitalization was more
than trebled. OF course ! include the trust
companies, as they do banking business,
but drawing the line upon active accounts.
By these we mean accounts against which
the check is drawn today and the deposit
made before tomorrow before the returns
for the clearing house are all in. Banks
here pursue most conservative methods,
adhering strictly to legitimate banking
and carrying at all times available
fund far in excess of that required by the
national banking law, and while cautious
and prudent, they loan literally where
Banking, continued Mr.. Parker, is not
classed among the learned professions, yet
think 1t would require the persua sive
power and eloquence of Benton or Web
ster to convince a customer whose note
had been turned down that the directors
were clever and accommodating gentlemen.
OF course, the president takes the credit
for all the paper that is passed, and the
board of directors gets the credit for all
that is rejected. So, Messrs. Directors,
il there is any waning of your popularity
In the community, you may divine the
cause.
.As goes the world, so goes the banker.
Prosperity is his prop and pillar; panics
and currency famines are his terror. Dur
ing the panic of 1893 we had a currency
famine, and the government was purchas-
ing $45G0, eco worth of silver every month
under the Sherman law, and 1t was COM
pulsory. The people became alarmed,
boarded their money, and the famine came.
Presiden. Cleveland, to his credit be it said,
called an extra session of Congress, the
compulsory purchase law was repe aled and
confidence restored. This was the begin
ming of the gold standard so in 1886 the
people. spprehensive of the free coinage of
silver at 16 to !, began to hold on to the cur
rency, money went out of circulation and
times were hard until the result of the
election brought confidence again. This
was the continuance. If not the culmina-
ton, of the final triumph of the gold stand
ard
Growth of Business.
There are more deposits in the national
banks of Washington today than there were
in the whole country about the year 1880.
and for fifty years thereafter the banks
were Indifferent as TO their deposits. relying
upon their own notes. issued upon the au-
thcrity of the legislatures of the several
states for their money. The national bank
ing law was prompted and inspired by
patriotic zeal. and no measure that has
been placed on. our statute books has done
50 much to give this country the nign
credit which 1t now enjoys at home and
so desirable. so convenient and so satisfac-
tory. This act first saw the light of day
in the dark hours of the republic. The gov
eminent and the banks had suspended spe-
Gle payments. With the war of the rebellion
came the necessity of banking system
that would be tributary in every way to fhe
support and to the strengthening o. the
treasury of the United States.
"The national banking act of 1863 vas
sort of copartnership between the gov
eminent and the banks. The government
was to furnish the privileges and the chat
ters and the banks were to furnish the
money. The entire system was founded
banks being vested in United States bonds
bearing per cent interest. and these he
came the basis and the security for their
notes.
THE times have changed and circula-
lion today has become inadequately. re-
snunerattve because of the high price of
government bonds and the low rate of in
crest the rs OF the government today
fielding to the investor but Ito per
cnt interest, while the bonds years ago
we're retiIrning'a az an investment and