Evening star., 1914-10-04
FTNANCIAL-LOCAL
AND OTHERWISE
BY I. A. FLEMING.

BY I. A.
The Commercial National Bank OF
this city has decided to open a branch
bank in the Panama Canal Zone, and
has been granted the necessary permis-
sion by the federal reserve board, act
ing under the provisions Of the new
banking act
Balboa, on the Pacific side of the
Canal Zone, has been chosen as the 10
cation of the branch bank. The direc-
tors of the Commercial Bank have set
aside from the capital of their bank
100000 for the conduct of the busl-
ness of the branch. There will be no
increase in the capital of the CONNER
cial National at present. but later on 1t
is probable that additional capital will
be demanded as the requirements OF
the new branch may demand.
Under the old national banking act 1t
was not possible for a national bank to
establish branch. but this authority
is now given under the federal reserve
law. on the approval of the board.
The Commercial National Bank has
been the depository for Canal Zone
funds for some time, and also for pos
The latter method of saying is very
popular with the people of the zone. as
the government repays in gold. 1he
metal being too heavy to carry around,
the money orders or deposit books are
retained largely in the hands or the
depositors.
The local Institution will select a mana
ger for the Balboa branch in the near
future. probably Washington man, but
an expert foreign exchange man.
speaking Spanish and familiar with
conditions in that section will be
the chiefest necessity. The foreign
exchange transactions will be one of
the chief sources of income, govern
ment funds. savings and zone. second,
while the savings and commercial de-
partments of an authorizen American in
stitution in the city of Balboa, with its
population of 1000 and further aided by
business of transients, etc, should be
The Commercial National Bank has a
capital of s75O.O0O, surplus and undivid-
ed profits of s526,475 and total re-
sources of $3.50, ,29S.
No Time for Theorists.
This is certainly no time for theorists.
nor for that oft-heard-from contingent
that formerly advised urgent economy
in railroad operations and f1ayed the
so-called money trust" in many-word-
ed communications in the press and
before the bar of Congress.
One hears little of the Grandeis or
the Untermeyer at these times. less of
others formerly important as econ
omists.
The so-cal1ed money trust is in the
saddle; the federal reserve board is
lending it every aid in the handling
of the problems of the day; foreign
exchange. etc, and the national banks
of the country are likewise doing their
share to smoothe out the many ny. tangies ns,es
methods of doing business.
Developments in the last few months
have demonstrated, almost beyond
question, with thinking people. that
the rehabilitation of the railroads of
this nation is prime and absolute
necessity, If these great arteries are
to continue to do their share OF the
country's transportation business ana
keep out of receivers hands,
1t is not a fact that the reopening OF
the rate case by the interstate commerce
commission can be taken as an evidence
of a change of opinion by this ali-poWer-
preponderance of fact and figures, II the
immense losses being sustained by
shareholders of railroads through the
inability of these railroads to pay their
dividends. indicates anything. it is evil
dent that the first and foremost action
needed is the putting 'of value under
the railroads of the country"
Results Self-Evident.
Conditions pertaining to the great
business interests of the country today.
railroads and industrial enterprises,
while partially attributable to the up
heaval in Europe, are very largely the
self-evident results of the campaigns
against big business that have been
conducted for some years in this coun-
try, largely for political reasons, of the
Sherman law, enforced years after its
enactment, as its sponsor never intended
that it should be and in a most harmful
way against the commercial interests Of
the United States.
Decorations and high honors await on
big business abroad, abuse and threats
have been the portion on this side.
Regulated until the shareholders.
losers of millions, almost billions of
dollars. has been the fate of many great
American railroads.
And Today!
And today the New York Stock Ex-
change, like all other security associa-
tions. is closed, not daring to open for
fear that Europe will start liquidat-
ing movement of large proportions; that
scared holders on this side of the water
will sell out regardless of price, and that
the value of collateral loans in the banks
loans which they have not called-may
be greatly lessened by declines, while the
army of 10000 attaches and not. a few
members of firms in the Wall street dis
trlct and elsewhere require the attention
OF a relief committee
In times that have gone by the big men
OF the street would have solved toda VS.
problem in less than sixty DAYS: then the
railroads earned their dividends and the
industrial corporations as we'll
Putting value under the railroad
shares" will be the most potent relief in
me situation now facing the railroads and
the financial world.
The Relief.
With such action the big men of New
York city, the Morgans, Schifrs, Bakers.
Vanderlips. Stillmans ct al, could
readily form a pool to absorb the les
sened liquidation from Europe. for
there would not be the panicky selling
by foreign shareholders II the future
looked brighter
An agreement might be easily made
that would prevent borrowing stock
and thus hobble the bear element. and
the New York exchange could omen re-
sumo its functions without causing
more than a passing furry
he adjustments going on are helm
tI! and should be pressed by the par
ties Interested in the interest of an