Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-11
DOWN TO BUSINESS
Continued From Third Page.)

gold in recent years. To this increased
production he also gave the credit for the
recovery from Industrial depression during
the past three years. At the same time he
expressed the belief that in this very in
crease there was a possible future disturb
ance Of values. Should the present rate or
production continue he believed the volume
of money in the world would be doubled in
twenty years, with the result that prices or
many commodities would be greatly In
creased-possibly doubled. While the in-
crease In the supply of money would tend
TO advance the price of real property, how
ever. the price of an obligation repayabie IN
money would not advance. Thus all per
sens having a fixed income, persons receiv-
ing a fixed salary or wage earners gener-
ally would be at a disadvantage, for their
incomes would not tend to increase as prob
ably as the purchasing power of their IN
comes decreased.
He believed. however. that the theory of
the classical economists that with the dou-
bling of the gold stock would come dou-
bling of prices would not hold entirely
good.
Such a result, he thought, would be pre-
vented by the exploitation of virgin fields
of development, such as followed the dis
covery of great quantities Of gold IN Mex,
leo, Peru, California and Australla, ana
that the next few years would witness the
expansion. of the field of commercial enter
prise into many new places.
He declared the outlook at the present
time to be very bright, but gave warning
that most assuredly there were dangers
lurking in the situation.
should a stock market speculation start
from the present high level of prices in the
face OF the extraordinary demand for capi-
tai and money which crops and business
alike are making" said he, "the result
might easily be temporary disaster. AL
though there may be many favorable fea-
lures to the outlook, it is no time for pru--
dence to be cast to the wind: no time for
speculative commitments which would yield
disaster IL temporary reverses came; no
time for laxness in any of the forms or
business prudence and conservatism"
At the conclusion of Mr.. Vanderiip's ad-
dress Mr.. William B. Ridgely, controller or
the currency, was introduced TO make an
address on the examination of banks.
Bank Examination.
Mr. Ridgely declared at the outset of his
remarks that after four years of careful
study he was convinced that no system of
bank examination or supervision from the.
outside can absolutely prevent fraudulent;
bank failures. He also stated that he was
equally convinced that careful and efficient.
work on the part of the examiner, aided
and abetted by cooperation of the bank
boards throughout the country, can make
failure almost impossible. No outside
supervision supply brains and honesty
for bank or take The place of either when
1t is lacking. The speaker then sketched
the causes of bank failures, and declared
that 1t IS generally when bad man or
bad crowd gets possession of a bank that
1t comes 10 grief. The work Of the exami-
ner was then gone over carefully TO snow
what trials he has. and of how little good
his work can be without the hearty support
of the bank officers. He referred to the
duties OF the directors and the executive
work of the bank officers. and declared
that no bank official had reason to fear
the board of directors If he was doing his
work properly.
ment rests with the directors, he said. By
accepting place on bank board and taxi
ing the oath of office a man accepts this re-
sponsibility. He is under every moral and
legal obligation to perform his duty fully.
1T Is certainly not asking TOO much or
men who accept such trusts. declared the
controller, that they simply do their plain
duty and obey the laws.
This would seem to be a particularly
opportune time for vigorous self-search-
ing among the directors of the banks of
the country, as well all other men who
are in places of financial trust and RESPONSE
bility.
Recent disclosures of the most disgrace
full betrayal of trusts by men in the highest
position and the use of these very positions
for private gain at the expense of those
whom 1t was their sacred duty to protect
have put the American financier on trial
before the country and the world. Not
only those who usually are interested in
such matters. but ali the people of the
country are asking: IF these men are not
to be trusted. who is?', If this much Is true,
how much more must there not be-? 1t is
test for wealth and power the American
financial conscience has become deadened
and the old ideals of honor and truth have
given way to newer code.
1t Is shame, a disgrace, a national
misfortune. that such things could have
happened when and where they did, but
IL is great good fortune that through
quarrel over the spoils the knavery has been
discovered. Unknown. or only suspected
such things are the greatest danger, but
their discovery and exposure makes 1t pos
stble to reform them The more complete
the exposure, the more certain the reform.
A director or an officer of any bank, no
matter how small obscure, holds the
ST me relation to his trust that these men
held to theirs. which differ only in size.
There is probably not man here, certainly
no member of the American Bankers AS
ISOLATION, who is not the guardian of some
trust reposed in HIM by those who thus
depend on his honor and fidelity. We are
al responsible in some degree. 1t is not
enough that we cry out for the punishment
of those who have been caught in the act
Our duty lies in the faithful discharge of
the obligations resting upon US. The up
holding of the reputation and character OF
the banking institutions OF the country Is
in our care and depends on each man do
ing his full duty"
When Mr. Ridgeiy had finished Secretary
Branche announced the organization of the
Bankers Publicity Association. The dele
gates OF the State Bankers Association an
nounced that meetings would be held to
nominate state vice presidents at various
parts of the theater.
The meeting adjourned at / 80 o'clock.
At Work in Earnest.
The visiting bankers went to work In
earnest today. and what with the sessions
OF the association at the National Theater
and the various forms of entertainment ar
ranged for them. the next three days will
be very busy. If there Is anything the local
committee has left undone for the comfort
and convenience. as well the entertain
ment of their guests, they have failed to
discover any evidences thereof. II any visit
ing banker wants anything he has not re-
Ceiyed the members OF the local committee
are DESTROYS of knowing what 1t is so they
can supply the want The crowd at local
and national headquarters yesterday was
enormous. During the morning and after
noon II was almost impossible to get around
in the big loom on the tenth floor of the
New Willard that has been turned over to
the bankers and their clerks. The telegraph
instruments were ticking all day, and the
New York Evening Post distributed bulle-
tins OF financial news at fifteen-minute in
tervals throughout the day. At the local
committee headquarters the corps OF young
men OF the various committees put In a
strenuous day. At least dozen OF them
were hustling from early In the morning
until late last evening supplying the visi-