The Washington herald., 1913-11-25
some REMARKS
ON A SITUATION
Bankers Must Make Good
Use of Talents Given to
Their Keeping.
WALL STREET MARKS TIME
Price Changes unimportsnt-Wash-
ingtOn Gas Stronger-5onds
Show Firmer Tone.
ByI. A. FLEMING.

OF terror.
1t has frequently been stated that
nothing is as timid as capital" Capital,
however, varies, from .he smallest to
the largest amount As a rule the $780,
oOo-man has more nerve and poise than
the man with capital Of so, or any,
where between 81 and $4,000.
Capital, large or small, will run" like
scared rabbits on a whisper against the
bank that holds its cash; and whisper
VIII grow into the echo of a great gun
once II reaches the ears of a few people,
just as the quiet drawing Of funds from
\ the United States Trust Company started
on Tuesday and grew almost into
bowling mob's demand in the last busi-
ness hour of Friday.
Even the strongest of the strong fear
S9She run of the depositors. And well
they may; for II means a sacrifice of as
sets, il means the calling Of loans OF
people who have not planned TO pay: II
means a Macedonian cry for help and II
the help is not coming 1t means disaster
The man who hid his talent under
busheI was not banker. The man who
took his talents and made other talents
through their use was probably banker
Must Not Bury His Talents.
That is incident to the banking busi-
ness II the banker accepted the deposits
OF his clientele and locked them up IN
the strongest box-an of them-he would
be run-proof and could, on the tap OF
the bell. hand the cash back, even in the
original bills.
But depositors want interest and they
want it first. Safety is frequently sec
ondary consideration. The stockhoiders
in banks want dividends.
Assets are not all liquid. Assets must
be conserved to be fully realized on.
In times like these when everything
seems to be standing still. moving with
marking-tirne step, making little progress,
banks are much more careful Of securi-
ties offered than in the piping times OF
peace
Depositors understand nothing In
run" EXCEPT that they want their cash
they reckon nothing of the impossiollity
OF Hquidating assets in minute. Ihey
10 not understand that other banks nave
also commenced TO pull in their strings
They want their money-and they are en-
titled to it. a-..
IT is claimed by those who ought to
know that TIE limited states Trust Com
pany lost through the run. quiet ana
wild, SSn,OOO in deposits This would
Nave left intact on Friday night. S.S2S,-
NJ. 1t was stated. according to report
that the bank examiner in this case
had asserted that the "depositors would
eventually receive all of their deposits.
What Are Deposits Worth:
The capitaI was impaired. Because of
the branch system and the fact that all
branch banks were owned, housing ana
realty. much of its capital was tied up
in non-liquid assets.
What are deposits worth? It's an open
question. -
In this instance there was some talk
NJ 5 per cent, although when one con-
S;ae-s the wears that pass in building up
SeOOo.OOe OF deposits, the advertising eX-
,anses- &C, the value should be placed
much higher.
Even with assets all gone, the deposits,
Nth confidence restored, were worth to
a going concern. from Ss5ooOo to $4,000.
Lessons Taught.
= 'an.,u,s must be held above even the hint
II is the duty of every one to restrain
even the whispered word Of doubt-not to
pass II along.
Expansion Is dangerous.
ITItrs conservatism may not be so profit
8bIe hut in the long run it tends TO the
promotion OF restful sleep.
Strong connections with reAoy hilhons
are always desired.
ssrI,e resources, even If one has to stop
~, ,,Irtailrnent practice SO common in
washington, and insist on repayment
4 TS-asbinrton needs a clearing house
- exsminer--one who has discretion
and Is not given to too much taking
when silence is golden
And there Is at least one more lesson
annaTent even TO the blind-look after the
interest of your depositors regardless OF
YOUR own fortunes.
Prompt-Helpful.
Laying aside the nightmare Of the last
weak is q pleasant occupation. II couio
not have been accomplished without lne
aid OF the Treasury Department.
az .S,s.snt secretary ]. Skelton Williams
,s-os TO the front as the representative
~ the department, with honest intent
IN the interest of washington
THAT H.OO0,O00 government money
,.o,o5 through the national banks Of the
cIty 10 the Munsey Trust Company. in
a,,cbange for 81 500, 900 OF the assets taken
,-om the vaults Of the United states
trust Company was the salvauon' Win
LtSe positive former assurances OF tne
situation
New York stocks.
sales for five hours on the New YORK
stocL Exchange on Monday, s., 600 shares:
co,,ey, thousand shares IN tne secoho
.s.o,,r and 5000 in the third hour.
The market was as active as povine
onJrnaI staked out On the prairie with
-o1a none too long. Within the narrow
radius of the possibilities the market
r,pyed up and down. fractionaliy' always
rsturning to the stake pegged down Just
sboIIt where It was on Saturday night
n was a market marking time with
v,oy and stately tread. Just what VIII
brjnr relief is not understood even by
me commission houses. Probably II the
nrbIic would forget the scars OF the past
md come back, buying freely as in the
oId days, things might improve The
Mexican situation has its effect. but II is
NOT dorninant-else something would have
hanpened before this. Money is working |
easier. and back Of all the slowness. back |
n the dread Of getting busy and march /
ing forward Is the underlined policy Of the |
administration, taken up with Cupid's af- |
airs. regarding trust busting. Remove
The cause, the Sherman law, and the /
MEXICAN situation will be forgotten.
OF such a market as yesterdays little |
need be said. No important changes In 4
M active-uEually active-list.
s I,awson's diatribe against Steel fell nat
Sfbe general impression accredited the |
gos.onian as being heavily short of Steel J.
,ommon-it closed within is Of satur-