The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-01-25

/: habits we break-and when once Il
break fs made i'm life, none hut God
can forglve 1t, the world and hui
sidney Clark at Y. NJ. c. A.
Practical Talk.
................ .....................'
Last evening Sidney Clark, cashier
of the Union National bank of this
city, and one of the veteran bankers
of the city and state, gave most in
structive and timely talk at the Y. M.
c. A. practical talk course. Mr.. Clark
discussed the Ordinary Mans Bank
ing" and the information was of such
a nature and the lessons brought out
by questions and discussion of such
practical kind that it is to be regret
ted that every young man in Grand
Forks could not have been present.
Mr.. Clark is thoroughly conversant
I with present day banking and the his
tory of banking in every country OF
the world; not only this, but he is d
student of finance of wide reading and
has fund of knowledge which made
his talk very instructive to all.
Origin of Term "Bnnker."
The term banker comes from the
ancient "bencher," or man who
changed money by the wayside with
no other equipment that bench on
which to sit and make change. The
great banks of the world are all gov
eminent banks, except those in the
United States. The Bank of England
is the greatest in the world and is
said to be the busiest place in the
world. Mr.. Clark tried to get permits
sion to go through it, but could not.
Although w. J. Bryan had just visited
it, the gold standard men of England
could not see their way clear to let
gold standard man from Grand Forks
go through. 1t was a peculiar dis
elimination, but one which Mr.. Clark
easily forgave.
No Check System.
Mr.. Clark visited the outside of the
Bank of France in Paris, but it was
such barnlike arrangement that he
did not attempt to get inside. 1t re.
sembled great warehouse with many
departments. One of the peculiar
things in connection with European
banking and especially with French
banking, is that little if any checking
is allowed on accounts. All employers
of labor must draw their money from
the bank and pay in specie.
In Canada the system is one OF
branch banks. There are four or five
very powerful banks which have GER
tain privileges from the government,
among them the power to issue money.
1t is much more difficult to open
bank account in foreign countries than
here. In Canada great deal of for
mality has TO be gone through with
and if you do not keep more than
5000 balance, you are charged for the
privilege.
Should Have Elastic Currency.
Mr.. Clark was very enthusiastic in
his endorsement of the Canadian
scheme of currency issue. He en-
dorses Lyman P. Cages plan for an
elastic currency. He would have the
National banks all Authorized to issue
bank notes in time of financial trou-
bles, In fact, at times If they felt so
disposed. Bonds would be bought and
the money issued, as at present ex-
cept that it would be heavily taxed
which would retire it as soon as the
financial stress was over.
During the panic of '93, Mr.. Clark
eiAON " AANA OCloC l1lo 10SuO VI UdIh
notes and sent to Washington to buy
the bonds. In the course of time he
got a reply back that his remittance
had been received, and would be at
tended to in due course of business
The panic was gone and all but for
| gotten before the new issue of notes
came to hand.
Business Done BY Check.
More than IS percent of all of the
business done in the United States is
done by means of checks, no money
changing hands at ALL
| This is strangely in contrast with
the systems in vogue in Europe. In
| fact the American system of banking
| is the latest development in the bank
ing world and the best. The Amer
lean National bank was conceived as
means of saving the nation during
the civil war. The bonds of the coun-
try could not be sold at home or
abroad, and the government conceived
the plan of selling the bonds to banks
and in return allowing the banks 10
take the name of National and be sub
ject to certain regulations. The banks
responded and the nation was saved.
The national bank issue of money
is much misunderstood. It allows
bank to issue money for Is percent of
the capital stock, less five percent and
one fourth of one percent of the issue
is held to bear the expense of reissu-
ing the worn out notes. The banker
buys United States bonds to cover the
rs percent issue and deposits them at
Washington and the notes issued, and
are ready for circulation except the
signatures of the cashier and president
of the bank. The bonds bear but two
percent interest. Banks, are inspect
ed, and five times year are called
upon for balance for some day which
has passed.
Deposits Should be Guaranteed.
Mr.. Clark said that the loss to de.
pOsitOrs through bank failures was
less than one twentieth of one percent
of all the money on deposit He be-
-lieves that a tax should be levied on
all national banks for the purpose of
+ guaranteeing deposits. 1t would be
very small and would work wonders
In the way of insuring public con-
ddence in times of panics and prevent
runs on banks. 81 IA.
Mr.. Clark defined bank "as every
bOdy's clearing house." The banker is
! the go-between between the man who
has money to loan and the reputable
borrower. A bank does not loan its
own money but the patrons money.
An YouaE Men should save.
Z Mr.. Clark's remarks along the lines
OF bank accounts for young men were
particularly earnest He advised all
yOunRy men to start hank acconnta q