New-York tribune., 1908-07-11
BANKERS ARE HOPEFUL
SEE PROSPERITY 1HEAD.
Credits and Confidence Discussed at
Frontenac Meeting.
INV Telocraph 10 The tribune.


1oierson xtce-president of the Bank of the Man
haitian Company. LASTED far into the early hours
Mr. Pierson. who is popularity known among 'te
members Of the convention rs Handsome DAVE
has had charge of the work of entertaining 1ne
bankers and their friends, and he has succeeoeu
.n nIea=jng every one well that the question Oh
making his appointment as chairman OF the enc,
tainment committee life position Is belhg seii-
oGsly discussed
Another man the New York City bankers have
their eye on is George w Higgins OF the Ne"
York Central Railroad. who gave the ninety-elghI
delegates and their friends from New York City the
best equipped special train ever run out OF the
Grand Central Station.
And three more whom the bankers nave
slated for high honors If they get the chance
to confer degrees-somethng they hope TO by es-
tabIishing school for the education Of people VINO
want TO be bankers-are Job E Hedges. James A
Emery and William H McElroy, who, in speeches.
serious and otherwise. have added to the general
pleasure Of the gathering
In their immediate circle Alexander Gilbert,
president of the New York Clearing House Asso-
ciation, and Clark Williams. Superintendent OF
Banks the men most talked about Clark
Williams pointed out at last nights banquet, that
ne was working for harmony and cooperation be-
tween the banks and his department, and that he
following q policy OF making the department
q help the banks and not mere office for
the criticism bankers and their methods. This
sort sentiment is liked by bankers, and is max
ing Mr.. Williams popular man in an office that
not always has had the respect and love of the
banking institutions under it.
CREDIT KEYSTONE OF CONFIDENCE.
The bankers who hand at the opening of
the second session of the convention this morning
had the pleasure of listening to carefully pre-
pared address on commercial credits by Joseph T.
Talbert. vice president of the Commercial National
Bank Of Chicago. Mr.. Talbert defined credit and
fits functions. and showed the Importance and COM
plexfty OF its modern development Credit, he said
IS he KEYS O
tor in trade between individuals. and in commerce
between nations, and more powerful than the COM
bined armies and navies of the world The grant
ing Of credits. he continued, is unlike the prac
tice of medicine II is empirical in practice and
involves the application OF knowledge based upon
observation and analysis. Each must be
studied and q careful diagnosis made Of ii on its
own merits. There always present many
possible chances Of that II is quite easy for
the experienced and careful practitioner either
profession to make fatal blunder. No one ever
reaches that degree OF perfection which eliminates
losses, or even makes them improbable Here, un-
fortunately the parallel ceases. Nature quickly
and kindly puts end to the blunders of the med
3cal practitioner directors and stockholders are
moi always considerate OF the mistakes Of the
banker. Commercial credits Of a bank embrace
loans made to all classes Of concerns engaged in
trade They include practically all the credits
granted by mercantile banks except. Of course. in
the purchase OF bonds and similar securities for IN
restments. and loans made to stock brokers ind-
loans to customers, and notes purchased by bill
brokers. In most mercantile banks loans
comprise by far the greater and more i'm
portant part of the loans And, cuT1ously enough,
81 is these loans. rule that the heaviest OF
the legitimate losses Of banks sustained In
many cases loans made TO customers solely be-
cause they customers, when their paper would
not bought all
Commercial credits of Class 2 improperly called
commercial paper contemplate the notes of trades
ou7vrO O0lH han ed hy- hrOEp IJCh
notes being rarely secured and generally of sin
gle Commercial paper, defined by statute
includes only notes representing actual CONNER
ciaI transactions. which shall bear the of
at least two responsible parties, and not more
than four months When indorsed by the payee
and discounted at bank such bear the
names Of two indorsers and looked upon by
banks the safest and most liquid OF credit
risks
The only safe foundation for a system of credit
is soundness, and the final test Of soundness is
demption
Every banker can subscribe TO this doctrine, and
our efforts should be directed to the end that a
system Of credits be established among banks
which shall enable to determine in advance.
with the greatest possible degree of certainty.
when a credit constitutes q proper commercial
risk. bearing always in mind that every credit
is risk. The whole problem Is whether this
be done in practical way. 1t may not be posi-
bic accomplish it fully. but perhaps the move
may be assisted through form Of eff
and the record both with banks and in the trade
as to promptness of settlements by borrowers.
Mr.. TaIbert concluded by saying that any note
which is fit to be bought OF broker should be not
only good but excellent, and the question
how this excellence shall be determined always
VIII be the task of the credit man.
FLAG REWARDED SPEECH.
W H McFlroy. who followed Mr. Talbert ad-
dressed the convention on the growth of public
spirit.
Public spirit, he said, q rule, like a taste
for olives, must be acquired. A may be a
good husband and father but may be an Indifferent
citizen until forced by the course of events 10
realize that private prosperity is conditioned
public prosperity, and that the latter only be
brought about by the expansion Of civic spirit
Mr.. McElroy said, however that the public spirit
was growing, and that Of the best signs of
that growth was to be found in the greater
spect and love for the American flag and the plac-
ing Of the flag on every schoolhouse in the country,
also in she sentiment: What shall it profit
children If they become proficient in the arts and
sciences and yet have love for their country and
its hag?"
Concluding, he said: The golden age is not be
hind US is before Us, and when IL comes all men
viii be for the state"
Mr. McFIroy's reference to the flag created
zach enthusiasm the part Of Hiram r Smith,
of Rockville Centre, that the association now has
the promise of a flag from him to be hung in the
banquet han all future conventions Mr. Smith
rteaded guilty 10 being crank on the subject Of
giving flags 10 organizations. and he bore home
with him as a result the name conferred by his
brother bankers. Hiram the hagman'
LETTING DOWN THE BARS.
From the bankers point of view OF the most
important reports adopted by the convention was
that from the committee on the admission OF trust
companies TO the association which was in effect
that the present restriction which imposes upon
.rno wish n