Evening star., 1916-10-01
NATIONS BANKERS
CARRY HEAWL0AD
Rapid Accumulation of Wealth
Places on Them New
Responsibilities.
PREVENTION OF WASTE
ONE OF HARD PROBLEMS
Americas Newly Won "Place in the
Sun" Broadens Financial
Horizon.

| Horizon.
KANSAS CITY, Mo-, September 30
Not In the spirit of vainglory, but with
deep sense OF the responsibility for
the preservation and conservation of
the rapidly growing financial re-
sources Of the United States, the mem
bers OF the American Bankers Asso-
citation met in this city this week A
multiplicity Of problems has been
thrust upon the banking fraternity
during the past two years. some of
them growing out of the heavy expan-
sion of domestic and foreign trade ,and
some from the extremely complicated
international financial situation. Per-
| maps no annual convention in the
United States is of greater Importance
to the commercial and industrial COM
munity than that which calls together
the bakers from every state in the
Union. and certainly no group of men
is more solieitous for the general
welfare of the country than are the
city this week
While bakers have always been re-
garded as the custodians Of the greater
part of the monetary wealth of the
country. they are In more important
sense the agents by which this wealth
Is directed into various channels of
usefulness, SO that the surplus funds
Of individuals and organizations may
be employed In the development and
expansion l,an Of the various enterprises
the nation. 1t is for this reason that
the newly acquired wealth Of the peo-
pie Of the United States has increased
the responsibilities Of those who must
4nk~
profitable channels; the science of
banking has in fact thrown OF the
odfum that was for such a long time
| attached to the money changer" and
has become most dignified and honor
able profession.
| Paper Money Unquestioned.
Few people have ever taken the
trouble to inquire whether the paper
currency. which forms a part Of their
daily burden. is in the form Of bank
tifcates or United States Treasury
notes. They are interested only in the
denomination of the various notes. for
this alone Is what determines their
value as purchasing agents. This is
because the science of banking and
currency has provided the safeguards
for the correct and proper issuance of
such certificates and guarantees their
value In every part of the civilized
Speaking on this subject here this
troller OF the currency. emphasized
the TACT that during the past fourteen
years the resources Of the country's
national banks had increased from six
billions to fourteen billions of dollars,
and the state banking institutions
from six to over fifteen billions that
since July. 1913, banking resources had
earning capacity of the forty million
breadwinners was such that the pos
siole average saving Of the individual
| WaSe-earher might well be placed at
one lnonsand dollars per annum. OF
course, the abnormal conditions which
nave existed during the past two
years on the European continent and
| the consequent worldwide demand for
american products have been the
largest factor in bringing the wealth
OF the world to our shores. As a con-
sequence We have purchased back our
securities from European holders in
.ne yalue OF over two billion dollars.
foreign bankers and governments.
Lack Of Thrift Criticised.
Nevertheless. the greatest criticism,
which the bankers Of the United state.
are now making Of their fellow coun-
trymen is their apparent inability to
apply the most elementary principles
OF thrift and frugality to their daily
habits Of living. 1t is purely for this
reason that they have tnaugurated a
nation-wide campaign for personal
thrift. and If the people of the United
States are willing to give serious heed
| TO important suggestions, which will
be offered to them along these lines
during the weeks and months follow
ing the adjournment of this conyen-
ton. they will be most agreeably sur
prised at the excellent results of such
a policy. While 1t is true that the
only logical and sensible prediction for
.ne future Is that Of increasing PROS
perlty, 1t Is also pertinent to remind
ourselves that the closing Of the Euro-
pean war will at least Increase com
merciai competition among the nations.
,. ana .ne more strongly we are fortified
rear international competition. This is
| the bankers message to the people az
the United States, and the time for
pirate.
1t Is singular commentary on cur
rent conditions that without bloodshed
ana without conquest the United States
is attaining Its new place in the sun"
more nrmiy than are the European ma
tfons. which are striving for this oh
1ect with the aid of their Implements ~
destruction. Moreover, the new place
which We have gained. that of the
| ~ SIcuiiOT, Is more enVlaDle one
than the right to conquered territory
or the subjugation of conquered people.
! Only Great Money Market.
The London statist, that sterling au-
thority on British finance, says in a re-
cent issue that so long as the war
lasts it is certain that all governments
desiring accommodation will apply to
New York, for there is no other great
market open to them. II has been
| recognized that the United States, with
Its energy. its intelligence and its en-
terprise. will increase its accumulated
capital rapidly. and continue to fur
nish accommodation to it's neighbors."
| The Statist. however, has stated only
part of the truth, for not only has the
| United States attended to the financial
needs Of the foreign governments, but
Its banking leaders have furnished the
capital necessary for the financing of
the bulk Of export trade of these ma
| tions. Moreover, it is now conceded
that these operations will not cease
with the signing Of the terms of peace,
but that the necessities of rehabilita-
ton will be as great as, or greater than,
| those Of destruction and American re-
sources may be expected to occupy an
increasingly prominent part in the eco
nomic and industrial readjustment fol-
lowing the strife. This means an ex-
tension Of credit to some Of the bel
ligerent countries which, up to the
benefits of American financial accom-
modation. American bankers. who have
given careful consideration to this
t0uesftan eefirpafa that tho T1rnpaap ~