The Washington times., 1912-11-24

did those Of the banks OF either Daii-
moro or Philadelphia II shown a. tn"
result of an investigation Of Treasury
Dopa artment data recently made ny J.
Seiwin TAFT, president Of the Washins-
ton and southern Bank.
In that time washington's growth IN
bank resources amounted 70 ~ per
cent. or from Sl3,ooo.0o0 to slo2.o0o,0oo'
yhiIe Daitimore's Increase was Sb.7 per
cent. and Phiiadelphia's 75.7 per cont.
These and other interesting matters
concerning "The City Of Washinst3n
a. an Investment Center" are set fcrth
In q special contribution by Mr. Ta't IN
the current issue Of The Economist
(Chicago). He says:
The principal bond houses OF New
York city have branches In the Ma
tionai Capital which usually do q con.
siderable business. None Of the repre-.
sentatives Of these houses admits any
apprehension a. to the future from q
change in the Administration. Herc'
however. 40 elsewhere. they report a
growing neglect OF the oId.time low
rate bonds and . preference for the
newer and more remunerative secus'
tiles. II would In fact seem as II In
vestment in the older securities werc
limited to nduciary institutions and ~
II 4hat preference would last only until
such time a. the newer ones become
seasoned and legally eligible for their
use. The public call inperatively FOR
q higher return on their capital In order
to meet the growing prices OF commod-
tiles and cost Of living.
ut 10 doubtful II there II any city in
the Union where market conditions and
trend are more closely observed than
they are here. Washington has no
manufacturing business to distract the
attention OF its investors. At the same
time the city's general attractiveness as
q place Of residence for nine months out
Of the twelve. the fact that II 10 the
homo Of the Government and the great
courts. a. we'll a. Of the Diplomatic
Corps, attract to It . vast and growing
number Of people, who not only have
welth. but who have already learned
the value Of securities. and SO bring
to the situation not only money. but .
knowledge Of the best way to handle It..
These facts give q special Interest to
the Investment question here.
''statistically speaking washington 10
q
for every working day. In population It
grows precisely as the country at large
grows. For instance. Its growth In
population for the last decade was q
per cent: that Of the country at large.
I'll Der cent. This leads to the belief
that az the country grows SO will WASH
inEton. and in this way It gives conf
dence to real estate Investment and
speculation which makes realty ques-
tions figure largely in local business.
"A comparison Of washington's bank
resources for the past decade with such
cities as Philadelphia and its bustling
neighbor, Baltimore. will be read with
surprise, thus:
Philadelphia-growth In bank re-
Baltimore-growth in bank re.
wSssinston..rowth in bank re: '''''
sources .......................... .lW "a
I'm other words. washinston's bank
resources have grown from st3.0oo0oO in
1901. to Sioa. 900 In 1910:
I'm addition to It's other attractions.
tho vast opportunities which the South.
ern States are unfolding to the public
case can be observed at close range
and advantage taken OF them here. As
q city Washington attracts capital in
much the same way that New York
does. although Of course on q very diff.
fcrent scale. With the growth Of our
banking deposits here. the absence of
manufactures and the commercial paper
incidentn thereto. local banks find II
essential to Q proper use Of their money
to make loans on securities.
1T Is this condition more than any
other that has forced the conviction
that we should have Q proper corpora.
0n law SeS 70 r., s:. the ss as
vances shall be properly orsanised and
honestly managed. It 10 with this idea
that an attempt 10 about to be made
to have Q model corporation law enacted
for the District Of Columbia. This Il
wrest financial pre-eminence from any
other city. II 10 simply because It has
been found to be impossible for the
time being to have Federal corpora
ton law enacted, and It has seemed tc
q model corporation law should be en-.
acted for this the national city. whert
Congress 10 as absolutely supreme Al
the British parliament Is in Westmin'
ster. This law could be held UP to the
satisfy the people that nothing con
templated by the Government was eth
er harsh or inquisitorial. It might thu.
pave the way eventually for the passa 81
Of the much needed Federal corporation
law, meantime relieving the public mind
from anxiety. Such q measure would
work no harm to other cities or States
and II the latter found that 1t was at
tracing their Incorporation business tc
washington they would have the RENE.
dy in their own hands by going and
doing likewise. The requirements ol
such q law can be crystallized into very
simple and intelligible form. and while
they would be found to be absolutelS
effective for the purpose for which they
were designed they would not be such
as would give any honest corporatior
the slightest ground for apprehension
Mr.. TAFT returned to the city yester,
dav after attending the first annua
Convention Of the Investment Bankers
Association Of America, held Friday, y,I q!
the Waldorf. and which was attenaet 1as
by about $50 Representatives Of ,s.as the Lead q,
INK banks. banking. and bono houses g,
the country. .reprssenting; 4 is we est, ST.
mated, about 5000. .00c,O00 While WASH
ington had only one representative a,
the convention. Baltimore had hinetse,
and philadelphia twenty-four. Eight.
came from Chicago and others cam'
from as far West as Seattle ana Lo'
Angeles and as far South as New Or
loans. Among the New York memper,
are i p. Morgan 4 Co., kuhn, LoeD 9
20. Knauth, Nachod & Kuhne: John