Show Review of the Week I Iy Finance and T Trade rade By Ira C. C Tichenor Tichenor- 1 v. v AS A A S A pap paper r on a a timely topic nothing could be more appropriate t-i t for presentation to the annual convention of the Amer Amer- Bankers' Bankers association than an article i in the last monthly bulletin of 01 Itlie e. e Canadian Mining Institute and nd e entitled Banking and Min Mm- ing mg I v While x this editorial of which the following is an an extract applies ap ap- plies li s particularly to Canada it might apply as w well ll to conditions in some sections of the United States I Ir r The liThe annual reports of the larger Canadian chartered banks always of late contain references to mining Meager as most 9 t of these references may be they yet indicate that our bank directorates are are slowly getting some some glimpse of the character and magnitude of that that industry on which all others depend 1 In one way and another our banks and bankers have a great deal to do with mining Lacking the mining accounts of Cobalt Gl Glace ce Bay Tr Trail iJ Porcupine and Thetford mines to mention a few I of f. f the larger mining towns the annual turnover and yearly profits of cf our Sour banking institutions would be less by some millions of dollars dollars dol dol lars From enterprises subsidiary to mining owing their existence wholly to minin mining the banks derive a vast income Were it not for ingrained prejudice and lack of prevision our financial institutions might legitimately add to their business by closer contact with mining 1 There are many sides to the question of how and when a bank is warranted in advancing mOney for mining purposes More than once disaster has been courted by ill-advised ill ventures on the part of bank managers In not nota a a few cases bank officials have permitted the bank funds fund to be used to assist promoters in exploiting exploiting exploiting ex ex- ex- ex the public This was notoriously a common practice in t ti early days of the Rossland and Cobalt booms But then as now Snow it was a matter of great difficulty if not a sheer impossibility to secure advances on bona fide ore reserves 5 A S A means of obtaining negotiable wealth and thus hus lightening 21 the war debt b burden the article argues as follows in behalf of financial aid for an increased production of metals Our appalling war debt can be Je liquidated most rapidly only through the development of our mineral deposits Our annual increment of wealth from farming manufactures fisheries and forests forests forests for for- ests is calculable Mining alone of all the industries and gold most specifically can be depended upon to bring such accretions of negotiable wealth as shall enable us to rid ourselves in the shortest possible period of the strangling incubus of debt Does It t not logically follow that bankers should assume a amore amore amore more intelligently sympathetic attitude towards mining It is notto not to tp their credit if as men of affairs arid loyal arid loyal citizens they do not 2 apprehend clearly that with the rapid expansion of mining are bound up issues issues' of life and death for our country We cannot forever forever fort for for- t ever go on begging for outside capital Indeed foreign investors may be much less complaisant in the fast approaching times of rehabilitation I Bank directorates h have ve their special advisers in matters pertaining per per- taming to law finance property evaluation crops foreign commerce commerce com corn merce and so on It is high thigh time that they wake to the crying need of engaging comp competent tent advice regarding mining investment nt and opportunities i It mi might ht be quite practicable for the council of the Mining Institute to aid the banks in their choice of engineers or even evento to go so far as far as to nominate suitable men for the various arious divergent tasks that an engineer is called upon to p perform This at least is well worth discussing There can be no manner manner of doubt that of all industries mining requires unstinted help it at certain tam fain tain stages and during certain times of artificial depression There Thee is also no d that the in industry per se deserves all the assistance it can get s This is not meant to be philippic Mere scolding is is' is futile But we hope that each member of the institute will indoctrinate his own bank manager with the idea above outlined Once r rooted it will it-will will vill not die 4 T. T THESE HESE arguments might directly to Utah In In this I state probably as as s in all in-all all others the pendulum representing all an lines of business including banking always is on the move swinging swinging swing swing- ing backward and forward There was wasP was a time in Utah when banks were most liberal in inI I 7 their aid in the development of f the mining industry Th The pendu im s swung sung ung the oth other r way and it becam became necessary for mining interests to go elsewhere for assistance Then the pendulum swung back and nd for quite a period t the tle e banks of Utah as a whole have been rn most st liberal in in th their ir attitude toward the mining industry As a matter of fact in a few exceptional cases this aid has been most prodigious and for this reason as well as the natural desire on the part of the more conservative institutions to devote as much of their en energies to the demands of th the government gov in connection with its war ne needs ds it would not be surprising if if the pendulum again should swing Ho to a certain extent at lea least t in the other direction Should this prove the case merit both as Jo to o property and management doubtless would be the ironclad rule adopted by all banks in relation to further fi financial ancial assistance in mining operations Had this rule been in effect always and there had been no exceptional cases such as referred to above possibly there n now w would would would-be be in existence fewer of that class of with the assessment habit with consequent a-consequent i increase crease in the glory and nd pr prestige stige attained by the great mining industry of Utah 10 z D DOUBT ESS many of of the arguments made by the Canadian n Mining Institute in behalf of the mining industry of the neighboring neigh boring country also might apply to the oil industry of the United States Most certainly petroleum production is included among the really essential war industries and as as such it should be given every opportunity for enlargement While the oil oil industry of Utah still is in its infancy it shows I i 1 evidence of great promise for or the future if given only v. v the very slightest lIghtest enco encouragement It is an undisputed fact that financial interests interest have held aloof loof from the oil industry both of this this' state and connection n with Operations in neighboring commonwealths N rt t only las has the industry in Utah not met with encouragement financially but it is threatened with discouragement as a result of 1 the campaign now in progress against all new companies and which particularly includes new oil concerns On previous occasions it has been pointed cut in this column that there are in existence a number of meritorious new oil companies com com- panics organized in Utah for the purpose of operating in this or neighboring states and justice to them and and their stockholders should guarantee every possible consideration I 1 I |