Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-08
MEN AND MONEY
BY ". $. Rukeyser.
Copyright. 1927

In tho first six years of their deVel-
opmcnt labor banks multiplied rap
idly in number and in resources. The
81 labor banks of the country have
aggregate resources in excess of $l20,
600 900.
Has the entrance of working people
into the sacred precincts Of capitalism
been success?
| asked several presidents of co
operative labor banks this question.
F'reas T. Snyder, president of the
Brotherhood of Locomotive Engineers
Title and Trust co. of Philadelphia,
said:
In my judgment labor banking in
the United States viewed solely from
a statistical standpoint has been Il
success thus far because it has ac-
Cumulated Il large volume Of business
in institutions we'll and prottably
managed and it has provided facilities
for certain group in the population
who have not heretofore utilized cX-
listing banks.
Only in Infancy.
Since labor banks have only been
in operation for slightly more than six
years, it is as yet too early to say
whether or not they have been a sue
cess viewed from the standpoint of so
using labOr'S funds rs to entitle unions
to a place in the directorate of cor
porations financed by such funds,
They do not appear to have made
great progress in securing representa-
ton on corporate directorate$ or in
building up the security distribution
power which enables a banking house
to command such consideration from
the industries which it finances. Such
things do not come about rapidly and
six years is too short Il period as Il
basis for judgment,
The great opportunity for labor
organizations seems to be in SO en-
couraging thrift and savings among
their members as to greatly enlarge
the assets of their banks and to so
educate their depositOrs in investment
as to build up a large distinctive pow
er for securities. This will place them
in the position toward which they
originally aimed of securing the place
on directOrates which are invariably
accorded to representatives Of a cor
poratlon'S financial agents.
Another affirmative answer to the
same question Of whether labor banks
had made good was supplied by f..
j. Manion. president of the Telecra-
piers National Bank of st. Louis,
who said:
Every genuine labor bank has
shown q splendid growth in deposits
and resources. and. though two so
called labor banks have gone under,
yet the fact remains that these banks
We're not genuine labor banks as we
recognize banks operated by labor or
CARNATIONS.
The Power of Money
"The reason believe labor banks
have been success is because labor
I realizes that all power revolves around
money, and if labor expects TO make
. it's place III the sun. it must organize
it's dollars as we'll as its men"
Joseph j. Castellini. president of
| the Brotherhood of Railway Clerks
National Bank Of Cincinnati. declared
! Labor banks in the United States
will be a success and a great influence
in bringing about better understand
ing between capital ana labor
Labor banks not only draw boarded
/ funds into circulation. but also give
new groups of working men d fresh
understanding Of the nature of CAPT
tai and the problem of management.
For that reason, the more intelligent
old-line bankers and business leaders
are entirely sympathetic to the devel-
| opment of bankers in overalls.
Unless wages are high workingmen,
! of course. are not in position to
remain desirable bank depositors.
| Carl Snyder. brilliant statistician of
| the Federal Reserve Bank of New
! York. has compiled new composite
| index of wages in the United States.
| From the new statistics Mr. Snyder
! draws these conclusions:
| Taken from the low point at the
| close of the war, the highest per-