The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-08
Will Be One of the Greatest
Advertisements Birming-
ham Has Ever Had
PRESTIGE OF CITY Is
INCREASED MANY FOLD
Sub Treasury's Primary Function Is to
Act as Medium for the Trans
mission of Money.
A Convenience.

When the information reached Birming-
ham early last evening that the congress
slonal caucus had voted unanimously in
favor of establishing the United States
sub-treasury for the southeastern states
in this city the local bankers were much
elated. sub-treasury in Birmingham
means increased prestige for the city from
financial viewpoint and the institution
will prove a convenience to the banks
that only bankers can thoroughly appre-
ciate.
A sub-treasury is of great advantage to
a section where cash is needed in large
volume. Birminghams payrolls are al
ready.very large and they are increasing
rapidly. A larger percentage of cash is
handled by the banks of this city than is
handled by banking houses in any other
city of the south, except New Orleans.
Birmingham is coming to be more and
more financial center and the demands
for cash from neighboring towns is stead
lily growing.
Function of ub-Treasury.
The chief function of the sub-treasury
is to act as a medium for the transmits
sion of money from one financial center
to another as the demand may arise. For
example, bank here that keejs large
balance with banking correspondent in
New York, finds the payrolls are to be
greater than usual on a certain day ana
Notwithstanding the fact that it has a
good reserve in It's vaults, surplus money
is needed. As it is now the local bank
telegraphs its New York correspondent
to ship, say 100000. 1t takes practically
two days for that shipment to reach Br-
mingham, but with a sub-treasury here
the New York bank will deposit the $780,
600 with the sub-treasury in that city and
direct by wire the sub-treasury in this
city to pay to the bank entitled to receive
it the amount named. The whole trans
action will not consume more than an
hour or two hours. And all the bank
will have to pay is small transfer fee.
All VIII Be Benefited.
All the banks in this secaion will be
benefited in the same way. Atlanta.
Chattanooga, Nashville, MERIDIAN Mont
gomery and other cities and towns in this
part of the south will have their money
shipped from the subz-treasury in Br-
mingham, instead of from remote sub
treasury points.
Southern banks will find the SUBJ treas
ury here a convenience also in the mat
ter of exchanging dirty and mutilated
bills for new money. Instead of shipping
soiled and mutilated money to the treas
6arna ,.tf1 apf or No chit
exchange, they will ship it to our sub
treasury at less cost, and save time to
boot.
Adverting to Birmingham as a finan-
cial center the bank deposits here are
larger than those of Nashville and Chat
tanooga and are approximately equal
to those of Atlanta and Memphis. They
have doubled in five years and at the
present rate OF increase will be, inside
of two years, the largest in the south
outside of New Orleans, the per centage
of cash involved being about 20 per cent
of the total transactions. The payrolls of
the Birmingham district amounts to
amout $3,5OO,OOO month and before the
end of the year they will probably total
something like s1OOO,OOO week
Won BY Pulling Together.
In speaking of Birmingham's victory
last night, President w. p. G. Harding
of the First National bank said: Il felt
confident all along that this city would
get the sub-treasury. Birmingham was
entitled to il, both by reason of its geo.
graphical location and its rapidly grow
ing Importance as a financial center And
then, too, l appreciated the fact Con-
gresham Underwood and all the other
members of the Alabama delegation were
profoundly in earnest In their efforts.
ITO have sub-treasury here will be
an advertisement for Birmingham of far
reaching value. 1t will be a great thing.
indeed, for Birmingham as the hub of
the south. i shows what can be done
when our people pull together. All the
banks and all the business men of Biz
bingham were exerting their influence in
this matter. We could have no better evil
dence of the benefit of public spirit and
what it will accomplish
All the banks here will wire their New
York correspondents this morning to wire
in turn Congressman Serene E. Payne,
chairman of the ways and means commit
tee, to help Birmingham in the necessary
legislation for putting into effect the ac-
- he