The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-07-06

WASHINGTON. July 5.-The most com
plete summary OF the banking history OF
the great crises OF 1873. 1854. 1899 and
1907 which has yet been prepared Is en-
bodied in a monograph by Prof. Q. NJ, w,
Sprague of Harvard university, which has
just been made public by the National
Monetary commission. Professor Sprague
not only enters into a careful analysis,
covering several hundred pages OF the
banking and financial history OF these
events. but presents also In an appendix
several OF the most authoritative articles
which have heretofore been written on
these subjects by secretaries OF the
treasury and comptroller of the cur
rency and by such specialists as Mr.. A,
d Noyes OF the New York Evening Post.
DR., a. Platt Andrew, now assistant sec
retary of the treasury and the chairman
of the New York clearing house COM
mittce.
The account Of the crisis of 1907 will
naturally attract the greatest interest
among bankers because of the recent date
of the event and the manner in which
Professor Spraguc discusses what he de-
scrlbes as defects in the existing none
tary system, He declares that all the
banks. judged by the average of the pre-
ccdine half dozen years, were In a normal
condition OF strength, and that those out
side of New York and ST. Louis We're in
Il slightly stronger condition in 1907 than
1906. The upward tendency of loans was
not so marked in New York as IN the
case of the banks in general. The $40S.-
600, 600 OF New York bank loans In 1897
of the national banks. while the $7l2,
900 600 in 1907 was just above II per cent
OF the total The increase in the de-
posIts Of state banks and trust com,
panies. however. held by the national
banks OF New York was striking and,
Professor Spraguc thinks, might well
have been considered alarming. In ten
years. from 1897 to 1907, the net deposits
due national banks by those OF New York
Increased from $3.50, 600 900 to $2l3 500. 900.
while net deposits due to state banks,
trust companies. etc. increased from
SIS 900. 900 to s196. 900 600 From a little
bankers deposits in 1907, the deposits due
to state institutions had become In 1907
almost equal TO those due TO the national
banks. The case with which the growth
OF the trust companies made possible the
shifting of tens Of millions of loans and
deposit liabilities seems to have obscured
the essential nature of the situation.
Where Burden Comes.
Professor Sprague points out that il,
for any reason, 1t should become neces-
'sary for the trust companies to contract
their banking operations IT would OBJ,
banks TO shoulder the burden In order
TO save the local situation. There was
also the element Of outside loans, esti-
mated In 1906 to amount to at least $780,
feel no responsibility for the course Of
the market They will naturally with
draw from II when affairs at home re-
quire more of their funds or when they
come TO dlstrust the future. 1t there
fore becomes necessary for the local
banks In the money center 10 be able at
all times to shoulder at least a part OF
the loans which may be liquldated by
outside banks and also TO supply the
cash which is thus drawn away
Taking up the relation between the
New York banks themselves, Professor
Sprague points out that the seven lead
ing banks controlled in 1873 ONLY about