El Nuevo mexicano., 1918-09-12
AVOID SPECULATION
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nancial disturbance or crowding oui
competitors and customers to pay VI
their notes. At the present time tht
west ~ In a good financiqi cpnditl0f
and with the mines Of the state con
timing to pour out their wealth and
tpe sale Of cattle amounting "a mil
lions OF dollars, with the additional
sales OF sheep and wool we nave
nothing to fear in the way OF finan
cial disturbance. advise mos
strongly against banks taking on ans
new business Of speculative nature
or assisting In non-esseptial proppsl
lions as this Is no time for banks q
pc Financing any new business. AM
banks that have q large surplus qna
are long on money should assist our
| government BY purchasing treasury
certificates and Liberty Bonds q
their limit. BY all means We fRoHiq
take care Of our present cpetomerf
even though the banks may fina 4
necessary to re-discount. There was
q time when II was considered poor
business both by the people and your
eompetitors to re-discount but It -
nowadays the right thing 70 TO-
riscount whenever the need requires
|it.
Bank expenses-g0u are al aware
Of the fact that the expenses OF oper-
ating and conducting a banking bus
mess have increased considerably dur
ms the past year. the cost pf Sc
curing competent help the additional
cost Of stationery over and above
what 1t was a year ago, increased
taxes and losses from other sources
have practically more than doubled
In total, yet, the prevailing rate OF
interest s per cent remains the same,
while ! understand that In some sec
ti0ns OF the west and In larger towns
the rate has been increased to 3 per
cent. A low rate of interest at this
time is hardly fair to stockholders OF
banking institutions and any liberal
minded customer would not object TO
an increase in interest rate. There
fore, the matter Of interest should
be given careful consideration upon
the lines OF readjustment.
The Federal Reserve bank Is the
backbone Of credit and should have
the earnest cooperation and support
Of every bank in the state. Person
ally, ! can say the treatment as ex-
tended by them has been n OF
courtesy in every way and since the
establishment of the Branch Bank OF
Federal Reserve at Ell Paso, under
the management Of Sam Lawder, the
banks in the Immediate vicinity find
that it has been a great help to them
In many ways in handling the bust
ness promptly and in a most salts
factory manner. They have always
shown a willingness to help the mem
Der banks. AS to the matter OF
state banks Joining the federal re-
serve system This, OF course, is an in
dividual question of their own, per-
sonally / believe they would benefit
a great DEAL by so doing.
Trade acce fances are coming into
general use IA should be encourag-
ed. II msahs that business can be
handled muchV more accurately,
much easier and very much more sat-
isfaetoTily. With a view Of encour.
aging this method of transacting bus
mess some months ago | appointed a.
committee on trade acceptance, o.. A.
Gahoon, Of Roswell; i. A. Hughes, Of
Santa We, and T. u. Lowe, OF Silver
City. These gentlemen have no
doubt given this subject some thought
and probably will take UP the ais
cussi0n of same at your meeting.
At the last session Of the legisla-
ture a bank act was passed. II has
had sufficient time to work out and
In some instances has not been en-
tirely satisfactory. There is conHid-
room for improvement and II
suggest that a new and active COM
be appointed to go into the
defects of the present system and
after this matter is discussed at your
meeting that this committee be in
structed to prepare necessary amend
ments to the present act and any ad-
ditional legislation that Is thought
wise by the said committee and to
present same at the next assembly
Of the legislature. also suggest
that a committee of three or five
be appointed by the chair, such COM
to be Selected from different
parts of the state, for the purpose OIL
up and meeting at some cen
trail point in the state with the Of
ficers Of the Federal Reserve banks
Of Dallas and Kansas City and TO
present to them the necessity OF the
Reserve banks in financing
loans and assisting the cattle
men at this time as some sections Oh
state have gone through a severe
while a portion of this
has been broken there Is
still a number of cattlemen that rei
luire financial assistance and N
some Instances are unable to obtain
It from the banks. ! consider this
IN important matter and / urge quick
action on your part.
Forging of signatures on cnecks
5eems to have become a regular and
profitable business and | do not re-
call that in many instances have the
perpetrators been caught, some eF-l
Tort should be made by the associa-
lion to protect the merchants and II
he banks upon whom these forgerles
nave been made will Immediately no.,
iify the secretary Of the Bankers
association and he In turn get out 2
letter to member banks, CIV
ng a description Of the forged
checks and If possible a description
II the party presenting same, pei