The Washington times., 1911-11-05

sibility Of increasing the prestige Of this
city II the Aldrich bill or some similar
financial plan 10 adopted. They recognize
that II the National Reserve Associa-
tfon 10 incorporated and ex-senator Aid
rfch's plan enacted into law, there will
be large volume of business between
the Reserve Association and the thou
sands OF banks throughout the United
States. who are sure to benefit by be-
coming identified with the association
under the terms OF the plan.
A TREMENDOUS rediscount business that
has hitherto been negotiated with the
large banks in the three central re-
serve cities-New York, Chicago, and
st. Louisville, in q large measure,
come to the Reserve Association, whose
only patrons will be banks and the
United States Government Local banks
that have been. and are, representing
out-of-town national banks before the
Treasury Department, will undoubtedly
continue to represent them before the
Reserve Association. and in addition,
there will be many State banks and
trust companies which will unquestion-
ably qualify in order to partake of the
benefits to be derived from identifica-
ton with the Reserve Association.
Local bankers also see that Washing
ton is destined to become what is known
as par city" throughout the United
States, as It is provided in the cur
rency plan that any balances which
banks maintain with the Reserve As
ISOLATION are to count ais part Of their
legal reserve, and with practically
every bank In the country having an
account here, exchange on this city
would be accepted everywhere at it's
face, no collection charges being made.
There are many features in Mr.. AID
rich's plan which. IL adopted by Con-
gress, will change the method and sys-
tenn Of handling the Government flnan-
ces that have long been in vogue here
In Washington Thus, the cash balance
In the Treasury is to be transferred to
the Reserve Association and thereafter
all checks drawn by Government repre-
sentatives In their official capacity
against funds of the nation will be
drawn on the home office Of National
Reserve Association or one of its fifteen
branches and not against the Treasurer
or an Assistant Treasurer of the United
States.
The thousands Of pension checks that
are distributed annually to Uncle Sans
disabled defenders or their widows and
orphans will likewise be drawn on the
National Reserve Association.
Taking all in all, the plan promises to
effect many changes, and 1t is the hope
studied the question that good Will come
from 1t and that our finances may be
placed on more scientific basis, SO
that the storms which periodically ap-
pear upon the financial horizon OF the
country may be safely sweathered.
Some ostrich p,umes in the hat Of Ex-
aminer Ham, on the discovery OF the
fraudulent bills of lading In Baltimore
banks.
It is not the smaller fiscal institutions
that the good man" of some big firm
lays for when contemplating some
fraudulent movement that may ulti-
mately cause his departure from the
country by rail or by water. gun or
otherwise. 1t is the large fellows, and
1t Is the big banks that have got to be
constantly on guard against these
frauds. The lesser banks must watch
for small forgers, and the less import
ant grafters. .. ."s
That Washington banks were not
caught in this forged bill Of lading trap
may be due largely to the foresight and
A block of 100000 grain paper was
offered here a few weeks ago from Bal
timore and turned down wherever prof
fered. But grain receipts are excellent
and quickly realizable ~assets-where
genuine, and there are millions Of dol
lars of this class. where there is one Of
the other kind.
way of protecting grain bills of lading.
Railroad companies should be more
careful and not hand out bills that look
like scrawls, the work of SIS to $40 a
month clerks. There's work for law
makers here.
Time was before the establishment Of
State warehouse commissions, etc,
when the grain elevator receipt was the
State inspection, with the warehouse
commission, and the espionage of ele-
vators, grain receipts are almost in
Variab!y genuine.
prominent elevator firms OF Chicago,
Mum & Scott, were caught In a fraud
nlent move and with the goods on them.
Of wSee na
borrowed thereon E',..-
Some one grew suspicious-"Old Hutch
prchably-or else some employe leaked
1T tookA more than one or two people to
work this smooth one. Investigation
disclosed that many of the full to over.
flowing bins. practically all. contained
only few bushels of grain scattered
nicely over false bottoms, and that the
banks of the city were advancing heir
money on air.
This has been stopped. 1t is up to the
railroads to stop the fraudulent bills of
lading. II they do not banks will have
to query railroads as - numbers and
cars.
Recent occurrences in Chicago and
in Baltimore have demonstrated that
men high in the confidence Of the bank
ing fraternity will oftentimes sin.
Therefore, be IN guard.
The new home of the United States
Trust Company is rapidly being pre-
pared for occupancy. The interior fit-
tings are decidedly classy.
The Washington Clearing House Asso-
citation did the right thing in meeting
the District Bankers Association half
way in the matter /of special eXamina-
tions of local banks, and the engagement
of Examiner Ham was commendable.
He is a deliver, a digger, and talker.
He can hold a board of directors of a
bank to the strictest attention by the
way he eXpounds conditions that exist
and that they should know about; he
has frequently sent directors home de-
termined to right things that were
wrong. and he can also talk with much
Measure to directors where officials
have conducted affairs with wisdom, and