Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-09-28
ADVICE GIVEN FINANCIERS
President ingalls, of Cincinr Il Bank
Talks Of Futu
SPECULATION sHor - : BARRED
Banks of This ~ dust Set Face
Against I - - the Promo
tic w w Enter
.ises.

'hc way HenDerS OF tne American Bankers
association today discussed practical bank
ing questions. Discussion on each topic
was limited TO thirty minutes A feature
OF today was an address by President NJ. e.
ingalls, Of the Merchants National bank
of Cincinnati. who spoke on "Our Present
and Future Prosperity"
John p. T. Knight, secretary of the Ca
madam Bankers association, spoke on
Some Ever Green Topics" The last bus-
ness of the convention was the installation
of the new officers.
The Present situation.
President Ingalls, said in part:
The real question that troubles us is.
what of the future? And here / am in
clined to be optimistic: not that | think
Tor an instant that the rate of increase
Tor the last five years can go on for the
next fve years; neither should we wish
1t. The railroads would be swamped with
business, the factories would be forced to
work overtime and the banks could not
take care of their demands, but there IS
a vast difference between this wild ex-
cited state of ever-increasing business
and steady continued progression where
eacn ana everyone has what his facilities
enable him to do comfortably where labor
is well employed and yet not so crowded
but what 1t can give good service and
tair results. Let us look at some of the
things that have happened lately which
would lend strength to this conclusion:
First Of all we might consider the sale
of the New York City bonds as the tura-
ing point in our finances. 1t is true that
they have sold at a high rate of interest.
Everyone knew that with the demands
that are on the capital of this country
such large sale, even with the credit
OF city as good at New York, would de,
things about this high rate of interest
for city bonds, which will spread all over
this country, is that It will tend to make
our city officers more careful in their ex-
nNOnl0
criticise the same more, and thereby the
extravaganza of municipal expenditures
Will be checked, and II Is time they were
checked for they have outrun all reason.
Then we must put in force enconomies
that Will enable the people to save and In
amount Of short-term notes that have been
put out. The financial editor of the New
YORK Evening Post answers my inquiry by
saying that between January / and
July l. 1907, the railroads lave issued of
short-term notes 1856, 900, 900 Industrial cor
porations s13S0o0,OO0. Here are over $780,
100000 that must be provided for; but IL
the people will make up their minds that
we have passed the crisis the savings
banks. insurance and trust companies and
investors will soon absorb this large amount
and relieve our banks and individuals so
that they can take care of the current
f, business Of the country with, their funds.
sold. It is only question Of placing them
In the form OF permanent investment and
not providing new funds.
1t has also been somewhat of a question
as to what the outcome OF our crops would
be; now II Is pretty we'll settled that while
OF last year they are still above the average
and with the enormous amounts carried
over there Is greater surplus than ever
before, and prices for them are so high that
II makes the farming community very rich.
Think Of II. Corn at their doors bringing so
cents bushel and fair crop from this
year and large amount from last year to
sell. The result Is the mortgages are being
pali on new Investments are being made,
and altogether the agricultural community,
which is the real foundation OF our wealth
and prosperity, is in such fine condition that
II would be almost impossible to have a
iong continued depression in business I'm
this country. Furthermore, you must re-
member there is about 100000 per day of
gold going into the currency of the world,
cheering the sick man by giving him slim
ulating and healthy food that he needs.
day?
Duty of Bankers.
To furnish readily, and with courage, the
currency necessary to move these crops, to
transport them to foreign countries, and
debts and turn the exchange in favor of
this country, charging therefor a reasonable
rate so that money may at last have its
chance. IL had no chance when rates were
going at per cent and 4 per cent but
with the standard rate of per cent all
over the country the banks ought to mako
a fair return to their stockholders, and at
the same time such a rate is not oppressive
to business. Six per cent money in this
country does not mean bad business, but
good business. No. money ought to be
furnished for the enlargement of plants in
the shape of current loans; all extensions
seeking permanent Investments, could be
used. The banks of this country should set
their face against loans for speculation or
for promotion of enterprises. Let the new
developments wait little let the business
people learn that the eXtravagance and wild
speculation OF the last year or two must
stop and economy must be the rule.
The convention adjourned after electing
the following officers:
President-J. d. Powers. Louisville.
Vice President-George NJ. Reynolds.
Chicago.
The secretary and treasurer will be
elected by the executive council.
Bank Notes of Varying Color.
If the secretary Of the treasury will
grant a request contained in a resolution
presented today at the American Bank
ers' association convention, the tellers
desk OF the average national bank will
somewhat resemble the ribbon counter OF
department store. The resolution pro-
poses that each denomination of bank
notes be made of a certain color. as fol-
lows:
One dollar notes. slate; twos. brown;
hves. green; tens. blue; twenties, yellow.
hfties. pink. and one hundred and over.
white. The resolution was referred to tho
incoming executive council.
Prior to Mr.. Ingalls, address there was
a discussion on everyday banking ques-
tions. Among the resolutions presented,
all of which were referred to the ex-
ecutive council. was one from e. r.
Mosley OF Kansas favoring such legIsla-
tion, both state and federal as will pro-
vide strict supervision OF the issue of
stock and other securities Of public SER
vice corporations. He also introduced a
resolution suggesting that all interstate
corporations be chartered by the federal
government.
FarnswOrth Chosen Secretary.
At the meeting OF the executive council
this afternoon Lewis f. Pierson OF New
York was elected chairman of the council
F. e. Farnsworth of Michigan defeated
James r. Branch of New York for secre-
tary by a vote of &c to IA after a warm
contest. Mr.. Branch has held the posi-.
tion for q dozen years. The once pays q
salary of $4,000 annually. A A. Craue
OF Minnesota win be reelected treasurer.
Tact pApTV AT XnHnuAMA