The Washington times., 1922-01-08
FINANCE
(BUs IN
Rx b. G. FORBEs


Some of Americas leading finan.
cial institutions have been compelled
during the last twelve months to dis
miss employees by the score and by
the hundred. All classes, from office
boys to vice presidents suffered. And
then when Christmas came the GUS
tomary bonuses or share of the
profits were not forthcoming.
Even during these troublesome
times, however. the right kind Of
management has sometimes been
able to work wonders. Take the
which has more branches In New
York city than any other financial
institution. How much. think you.
II was able to distribute to its en-
ployes as their share OF the profits
for the year just ended3
Forty per cent of their salary! A
total Of $650,000, was thus distributed.
since President Frew, who In IN
enthusiast on the subject, installed
profit-sharing five years ago the dis
tributions have been so per cent, 40
per cent. 43 per cent. 40 per cent and
last year 40 per cent
Yes, management counts.
1t means much not only for en-
plOytSp uuI tCT CublOIlcEc. SOiIl-
mercial failures In this country have
1000 q month; the total for 1921 Was
10000. Out of the Corn Exchange
Banks 10000 or more customers,
most Of them business concerns. how
many would you guess have failed
since the war boom burst nearly two
years ago?
Just fifteen! The losses entsiled
were an infinitesimal fraction o. l
Per cent of the business done.
That, / imagine. comes pretty NJ
icing a record for any large fnan,
Institution in America.
How to bring up their sons il q
problem which costs thoughtful men
Of wealth much bordering and not a
little worry. I know few rich men
who do not have more or less mis-
or inheritance Of money will have
upon their children.
While talking with the head Of q
very large concern on this subject
the other day. he told me this sug-
gestive incident.
One OF his boys, q lad Of twelve or
thirteen, wanted a rather expensive
Christmas gift-not a foolish bauble,
but something rather sensible. His
father. anxious to utilize the occasion
to impress a lesson upon the boys
mind, explained that he had done 30
much to help poor people, wounded
soldiers and others that he didn't feel
he could afford to buy the gift sug.
gested. And he told the boy In detail
what he had done for others in need.
He put 1t all in such way that the
lad cordially agreed that II was better
| to use money this way than to spend
30 much on a Christmas gift for him.
The net result was to convey. in
an appealing way, the idea OF stew.
ardship in connection with the pos
session Of money, and to make the
| lad realize that wealth meant respon.
sibility, responsibility which must be
shouldered and discharged conscien'
| tiously.
This reminded me that, when wrist
watches first came into vogue, John
d. Rockefeller, Jr.'s. young daughter,
q school girl, asked her parents for
one, and that, instead of receiving 1t,
she was given a talk much along the
lines used by this other parent, with
equally satisfactory results.
It IL said that on one occasion one
of Mr.. Rockefeller's boys had some
proposition put up to him by another
boy at school, a proposition which
called for some small amount OF
money, and that little Rockefeller re
Piled: What do you think / am?
A Vanderbilt
The year 1922 will probably be
marked as a year Of unprecedented
housekeeping by the New York
4 Stock Exchange. I understand that
| stock exchange authorities are de-
I'yoting the most earnest attention TO
devising ways and means OF roofing
out all kinds of brokerage houses In
dulging in nefarious practices to fleece
| the public. The problem Is beset with
legal and other difficulties, but the
able, progressive men now managing
the stock exchange are determined to
leave no stone unturned to achieve
ktne best possible results.
There may also be similar develop
ments by the Consolidated Stock Elk
change, which Is cooperating more
gratifyingly than it has sometimes in
the past.
Many industrial company reports
covering 1921 will make intensely dis
appointing reading. AS q conse'
uuence, some stocks are likely to en-
January and February are likely
to bring quite a few unpleasant
financial happenings, including some
failures.
Some men can't stand success.
Others can't stand a licking.
ran into John N WHY'S the other
day, and although he, naturally, has
had his full share of troubles since
the WHY'S Corporation went into re-
ceivership, he was as spry, as vigor-
Gus, as energetic, and as forceful as
ever.
From banking sources hear that
real progress is being made with the
| handling of a reorganization program.
| Copyright, 1922, by b. c, Forbes)
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