The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-10-19
THE COURSE OF FINANCIAL
EVENTS TOWARD BETTER TIMES
Hon. Frank A. Vanderlip's Optimistic Address Be-
fore the Illinois Bankers Association

st. Louis, Oct. 1s.--The fourteenth
annual convention of the Illinois
Bankers Association convened to-
day in the Illinois Worlds Fair
building. Addresses were made
president of the National City
Bank of New York city and others.
After referring to the general con-
dition OF the banking interests of the
country Mr.. Vanderlip made some COM
PARSONS.
Ten years ago he said" we had a
population of 6S.0O0,00O today It is 49,
10000, and ten years hence. with this
ratio of increase, the population of the
United States viii be 9S0,O0OO0O We
will In the next ten years add to our
number a population equal to one-half
of France. Such growth in numbers
matched to our wealth of resources
makes the sort Of material out Of which
to shape an entirely new level OF statis-
tics making the country's material
progress.
The total wealth Of the United
States, according to the best estimates
which we have, has risen in ten years
from $75, 900 GOO, 900 to $106 900 900, 900.
Ten years more OF Increase will make
the wealth of this country $4,000
900, 900. When we remember that such
a total will compare with the total OF
$42, 000, 900 in 1880, the accumula-
ton is seen to be at rate almost in
credible.
Money stock Increase in 10 YenFs.
"Our money stock has increased I'm
80 faoA
than 1850, 000,0 900, and every dollar of
II is sound and every dollar of II is on
a parity with gold. The actual gold
stock itself increased in that period
$3.50, 900, 900. II the money stock in
creases in the next ten years in the
same amounts, we will have $1,000, 000,-
900 of circulation at the end of that
period. Incidentally, IL ie interesting
to note that national bank note cir
culation in the last ten years has risen
from $l72 900, 900 to $411, 900, 900. and one
might stop to wonder, IL this rate Of
increase is to go on, where the govern
ment bonds are to come from in the
next ten years to provide for further
increase OF national bank circulation
of s25OO0O,000 or $300,000,000. Such In
quiry points inevitably to the necessity
OF some change In our national bank
ing laws in the due course of time.
National bank deposits in ten years
have doubled going up from 81 600, 000,-
900 TO 49, 300, 0O0, 900. State bank depos-
it's In that time have trebled marking
an increase OF from about $500, 900 900 !
to $1,900.0O00O0.
"a careful estimate of the total bank
deposits in the United States to-day,
national, state, savings banks and
trust companies brings them up to a
grand total Of $4,000, 000.0 900, and that
compares with a total ten years ago
of 81, 800 600, 900. The increase has been
well over double. VIII II double again,
and will we have $40. 900 00O, 900 depos-
it's in 1914? If we only make the same
actual gain, we will have over $4,000
100000, and barring any unexpected In
reference with our expansion, ! be-
lieve that that Is a conservative figure
and inside the probabilities.
Railroad Earnings Increase.
'In ten years we have seen railroad
gross earnings increase from 81 zoo, 000,-
900 to $1,000, 5000 900. With only an equal
actual increase, we will have railroad
earnings OF $500, 000, 900 ten years from
now; while, II the percentage OF in
crease of the last decade were TO be
maintained, the figures would reach
$4,000. 100000. The lower total Is the
fairer presumption. With gross earn
ings reaching such a figure, with con-
tration. and with more perfect road
beds and equipment, we may expect to
see steadily increasing economy OF ope-
ration. It is not fair 10 presume, then
that these vast gross earnings, coupled
with a decreasing ratio of expenses
will most certainly provide for an in
creasingly satisfactory return upon
railroad investments?
"Our foreign trade, which ten years
ago footed 1880 900 900, was this year
81, $50 100000. Our exports OF agricul-
tural products may not increase much
from present figures. but II is safe to
say that our increasing command of
foreign markets for our manufactures
will perhaps bring the total Of our for
eign trade to $4,000, 000, 900 In the next
decade. You will see that national
bank loans and discounts, which were
under $1,000, 900, 900 ten years ago, are
now S3725. 900, 900. A similar increase
would carry us above $4,000 000. 900 I'm
national bank loans ten years hence.
Let us hope those loans will not in
crease with unconservative rapidity.
Bank clearings OF country have
increased two and a half times in ten
years. II progress were to continue at
this rate, we would show bank clear
ings OF more than 5000. 900 900, 900 at the