OCR Text |
Show THURSDAY, JULY 27, 1933 THE LEHI SUN, LEHI, UTAH THURSDAY. JTTiv o7 How All the People Had a Hand In Building Na tion !s Credit S tructu re Banker Describes the Way Loans anfl Securities of Banks Are Based on ihe Hopes and Plans of All ClassesValues Dependent on Public's Ability to Meet Obligations ; By FRANCIS H. SISSON, President American Banker! Association in Tkt Torum CREDIT may be Informally described de-scribed a future hopes, plans and good Intentions converted Into present purchaa- - ' i J... T r. H. SISSON ing power- The fanner, the manufacturer, man-ufacturer, the merchant, the home buyer, the purchaser of household goods, the Investor Inves-tor and the speo-ulator speo-ulator all borrow at timet. They plan to repay with the earnings earn-ings of their crops, proceeds ot the sales of their goods, incomes !trom their wages and salaries or profits from the resales of their securities se-curities at enhanced market values, each as the caee may be. The greater part of these various forms of credit is obtained by the borrowers directly or Indirectly through the expansion of the loans and investments of the banke. It is this which creates the notes, securities se-curities and mortgages In the port-: port-: folio of the banks. Tbe banks are able to extend these loans because people deposit money with them. Even under the best conditions the plans of a small percentage of i borrowers go wrong through mistakes, mis-takes, hard luck or dishonesty, and the judgment ot tbe banker la such cases is proved by the after event to have been at fault. The losses i caused under such conditions are , ordinarily fully met by funds set aside out of the earnings of the banks for just this purpose and do not affect the depositors' money. In the vast majority ot cases and In the overwhelming volume of business busi-ness Involved the confidence of the ' bankers in their customers and the confidence of the customers in their own ability to carry out their plans and obligations to successful conclusions con-clusions are wholly justified. This is the normal economic situation under which credit adds to the welfare wel-fare and progress of society. the Faith ol the Banks Such was the structure ot hopes, good intentions and common confidence confi-dence in one another that existed among all chwaes ot the nation's community life when the series of economic shocks began to Bhake the nation's social fabric in 1929. The people had deposited billions of dollars dol-lars with the banka because they had confidence in them. The banks - had loaned large volumes ot these deposits on farm and home mortgages mort-gages and on notes ot manufacturers, manufactur-ers, business men and finance concerns, con-cerns, and had Invested in the standard stand-ard securities of the nation's corporations, cor-porations, state and local governmental govern-mental units and the national government gov-ernment Itself, because they had confidence In the citizenship and the business conditions ot the nation. Their mortgage and other loans to owners of farms aggregated 6,-(00.000,000. 6,-(00.000,000. Loans on urban real es tate were 11.000,000,000. Loans to Individuals secured by U, S. Government, Govern-ment, municipal and corporate securities, se-curities, totalled 111,000,000,000. Loans to industrial and commercial enterprises in connection with the production and distribution ot the nation's infinite varieties ot goods amounted to almost 119,500,000,000, Investments in Federal, State and municipal bonds were almost f 6,000V 000,000, and in corporate securities 111,000,000,000. This great credit structure was built while the country was at peace, while the farms and factories were productive, while the nation and the world provided great active markets for their outputs, while the earnings of all kinds ot enterprise were large, while the working peo ple ot the nation were fully employed, em-ployed, while wages and salaries were steady and generous, while prices of commodities were strong and while the minds of the people were dominated by confidence. Great Change Came to the Nation Then suddenly, almost as it the sun Itself had lost part -of Its vitality, vitali-ty, everything changed. Our foreign markets failed and disappeared. Industry In-dustry slackened. A rapid drop in til kinds ot commodity values set In. The earnings ot business fell. Unemployment developed. Wages and salaries went down. Domestic markets shrank. Fear became general. gen-eral. The securities markets became panic-ridden as the prices ot stocks and bonds withered to tractions ot their former values. It was the greatest disintegration of human plans, economic conditions and worldly values ever witnessed. These destructive changes cut right through the qualities and vaV ues of the loans and Investments, the notes and securities In the banka. Business men and manufacturers manufac-turers conld not repay their notes to the banks as due. Many govern, mental units and corporations defaulted de-faulted the payments on their bonds. Property underlying real estate mortgages became worth less than tbe face of tbe mortgages. The mar ket values ot standard securities became be-came less than the banks had paid for them as Investments or accepted them at as collateral for loans. This meant, in fine, that the ability abili-ty of borrowers to carry out the future fu-ture hopes, plan and good intentions inten-tions that I have defined above at tbe basis ot credit, had become Impaired Im-paired to a far greater extent than had ever before occurred In the nation's na-tion's history. The resulting losses could not be absorbed by the banks alone out ot the normally ample funds that had been set aside against the expectancy ot a certain Inevitable percentage of human plans gone wrong. Banks Showed All Reasonable Care It was in loans and investments whose values thus became so un-foreseeably un-foreseeably 1m paired, that the banks, In all confidence, In all good talth, in all humanly reasonable care and good judgment had entrusted tbe billions of dollars ot deposits customers entrusted to them. Those loans and investments were, under all normal conditions, as good as gold Itself. Indeed, it the banks Instead had filled their vaults with gold bars, and then some unknowA cosmio ray bad transmuted them into lead, the results would have been scarcely more startling than the depreciation that was caused In the assets of the banks by the unforeseeable un-foreseeable economic forces which permeated and debased them. The inevitable result was that, when the banks urcntly needed the money they had entrusted to those assets, so that they could meet the unreasoning demands ot their depositors, de-positors, they could not get It back. It was not that our banking system sys-tem and methods were of themselves them-selves weak or reprehensible, apart from the rest ot the life ot the nation, na-tion, as has been made to appear. It was not that our banks were permeated with Incompetency or dishonesty or with lower standards of business ethics than were the other forms of human activity with which their own fate and activities were inextricably interwoven, as, it almost seemed at times, there was a concerted national conspiracy to lead our people to believe. The great fact of American banking bank-ing is that it shared fully in the plans and hopes and hazards ot the American people, and when those plans went wrong, the banks carried their share of the burden and suffered suf-fered their share of the misfortune. Thinnest Paper Can "Be Split Into Three Parts It Is one of the most remarkable properties of that wanderful product, prod-uct, paper, that It can be split Into two or ven three parts, however thin the sheet We lave aeen a leaf t the Illustrated News divided divid-ed lnt three parts, or three thin leaves. One consisted of the surface on which the engravings are printed.; another was the side containing the letter press; and a perfectly blank piece on each side was tbe paper that lay between. Many people who have not seen this done might think It Impossible; yet it is not only possible but extremely easy, as we shall ehow. Get a piece of plate glass and place on It a sheet of paper; then let the latter be thoroughly soaked. With care and a little dexterity the sheet can be split by the top surface sur-face being removed. But the best plan Is to paste a piece of cloth or strong paper to each side of the sheet to be split. When dry, violently vio-lently and without hesitation pull the two pieces asunder, when part of the sheet will be found to have adhered to one and part to the other. oth-er. Soften the paste In water and the pieces can be easily removed from the cloth. a and O. Printer and Stationer. Pi pni i. i , , i mil n;n ; Diving Beetle Is Also Called the Water Tiger The Predacious Diving Beetle Dytlscus, and Its larvae Is also called the Water Tiger. The beetles themselves hibernate In the muddy bottoms of streams, etc., but come out from time to time. During the summer thev nre frequently attracted attract-ed to bright lights. The mature beetles live for a long time. Aa Instance la recorded where one was I kept alive for three years and a half, In a glass vessel filled with water wa-ter and fed morsels of raw meat The females of these beetles de posit their eggs at random, In the water. Their larvae or grubs are known as Water Tigers on account of their blood-thirstiness. When full- grown the larvae leave the water and burrow Into the ground, and make a round cell within which they undergo their transformation. The pupal state lasts three weeks In summer, but the larvae which trans form in the autumn, remain in the pnpal state all winter. These beetles belong to the largest family of water wa-ter beetles, nearly three hundred hun-dred North American species being known. Montreal Herald. Monkeys and Fleas "Some persons imagine," observed a curator, as be tilted back bis chair in his office at the Bronx zoo, "that all monkeys swing by their tails and that they are always ptcking fleas oft one another. Nothing Is farther from the truth. The fact is that only the monkeys of the New world have prehensile tails, and all of them those in the cages anyway are practically free from parasites in captivity. That's because of the dry air and because our keepers groom them every day. Scratching each other Is purely s social courtesy. cour-tesy. Or, I might say, the willing ness to offer a helping hand. The custom of plucking imaginary fleas dates back a good many years, suspect, but It strikes me as a very Dleasnnt one." New York World- Telegram. WDM. mEsiEiR BEVERLY HILLS. The othel day, In fact a couple of weeks ago on the Fourth ot July, I went ove to Prescott, Ari zona, to see their Frontier celebration. celebra-tion. Its the oldest old-est rodeo, or affair af-fair ot that sort In existence 45 years. It has tbe best ropers la the world. Its a small contest but all the beet --can ana swer y ropers come there. In fact Its mighty near home for a lot of them, for Arizona, New Mexico, Texas, and Oklahoma, harbors the cream of the ropers. The North has the rid ers. Canada, Montana, Wyoming, and all those Northern states where the big stout horses grow is th home of the real bucking horse set ters, but when you want a mean loop spread on something, come South, and if you get over into Mex ico you get still better. But the Mex' ican has never gone in for contest roping, like tying calves or steers against time. Well over at this contest all tbe boys were excited for the biggest contest ever held in the history of all rodeo history is to be held in Chicago in Soldiers Field right in the World's Fair Grounds, the big gest stadium m America. It runs about seventeen days from August 25 to September 10th. Now what had all these old boys excited was that this contest was not like all the others oth-ers that they hold. If you come and paid your entrance fees, you were one of the contestants. But not at this one. You come by invitation, and just some friend couldent in vite you. You have to be selected by committee of well known and prominent rodeo men, who took the results of 24 of the leading contests like Cheyenne, Pendleton, Calgary, Ft. Worth, Madison Square Garden N. Y. and Prescott, well, as I say, 24 of the biggest). Then they took the records of these for 4 years, and added up the numbers ot times each contestant had won first, 2nd, or third, and got each man's general average over all this time. They pick 30 men in each line, also some alternates in case some of the first 30 are not ab!e to go. but t'.ie alternates alter-nates are the next bast records in line to the first ones picked. But at this one Its like that cham- FARM ACCOUNTING CONTEST LAUNCHED Bankers Evolve Plan for Stimulating Important Aid i I to Farm Success N l - THE Cache county, Utah, bankers recently added a stimulus to banker-farmer cooperative work by launching a farm accounting contest At a metln cf '.he Clearing House Association the iroject was put before be-fore the bankers and accepted. Each bank In tbe county agreed to enroll a minimum ot five farmers In the farm accounting project The names ot the farmers when enrolled en-rolled will be sent to the Secretary ot tbe Clearing House, and also to the Extension Division of the Utah State Agricultural College. The bankers agree to cooperate and keep In close touch with each farmer they enroll so as to insure the com pletion of a maximum number. The bask which succeeds at the conclusion conclu-sion of the contest In enrolling the largest number of farmers complet- lac the project will be given ft fecial reoegaitioa, Tbe banks of Cache county have agreed to subscribe to an award fund, which will be presented to five winners as follows; first prize, (35.00; second prize, $25.00; third prize, 120.00; fourth prize, $12.50; fifth prise, 17.50. In addition to tbe cash prizes, every farmer customer enrolled, who scores sixty per cent or more, will be awarded a special certificate Issued by the Clearing House Association Asso-ciation and the Extension Service Jointly in cooperation with the Agri cultural Committee ot the Utah Bankers Association. The scoring will be done on the following basis; Farm and home account records (accurate and complete) .... 50 Success ot year's operations as brought out in the summary ot the year's business.. 25 General appearance ot farm and Improvements and condition ot livestock and poultry, (judging to be done during tbe summer months). 25 The contest will end December 31, 1931. The judges will be the County Agent, the County Key Banker, a representative ot the Clearing House Association, and two representatives representa-tives selected by the Extension Di-, Di-, vision ot tbe College. Guiding Blind Ships ' More than half a million ships are guided up and down the Thames every year by the pilots attached to the great Port of London, says the Montreal Herald, rilofs are taken on board vessels to steer them through dangerous reaches and channels, or to take ships In and out of harbor, and while on board they take command. Occasionally a pilot is compelled to take long voyages because the weather makes it impossible for hlra to board the pilot boat Some time ago a pilot taking the liner out of Queenstown had to go to New York because he was unable to leave the ship in heavy weather. mm pioaehlp ball game they had the other day between the very pick of each league, just anybody that had a bat couldent get in It You had to be chosen, so naturally every cow boy In Canada, the D. S. and Mexico wants to go to tbe Worlds Fair to do bis stuff. Its an Olympic games ot the wild west sports. It will mean something to win there. Then,, too, running 17 days, that means you will rope seventeen calves, ride seventeen bronks. Generally they run about 4 days, and your time or performance Is Judged by that many times, but this will be so long that any element of luck will be eliminated. elimi-nated. It will be like a golf championship, cham-pionship, instead ot being 36 or seventy-two holes, being about 300 holes. I been a sight seeing patron ot these things for a long time, and have been yapping for Just such a mode of really s e 1 e c t ins the ,&WMM?A best boy in each event every year, but this is the first one. You see this Is not a show, it is really and truly a contest. No person Is paid a cent unless they win It. There will be various prize money given each day for Just the winners ot that particular day. That gives a chance to the boys who might not win the grand finals (meaning an average of all the days) but who might do the best on some particular particu-lar day. But he ships his own horse there, pays his own expenses while there, and pays 30 dollars entrance fees for each thing he enters. There is no wild west show about It. Its a real business aid not a racket with these boys, so no wonder these old cowboys over at Prescott the other day was trying to make this preferred pre-ferred list. Its an honor to be on there, even if you dont win anything. It means you are among the 30 best in your line. 1 would sho give a lock of my best hair to be among the best at anything, checkers, horseshoe, spitting spit-ting at a crack, or even golf or beer drinking, it would show you I was really good at something. I sho want to see this contest, if I am not right in the middle of a nrovie, which I will Just about be. Imagine a fellow having to miss a big rodeo, Just to make a lot ot faces at a camera. And not good faces either. 9 mi UcNwghl Syndicate, Inc. 0 Ocean Cables When laying cables sufficient slack cable is paid out to Insure that it will follow the contour of the ocean, and actually lie upon the bed at all points. The outside diameter diame-ter of the ordinary deep-sea type of eable is about 1 Inch. 1 Co-ordinated Transportation In providing Free Pick-up and Delivery Smi? on Less-Carload Freight by motor truck co-ordi nated with Railroad Transportation, The g Lake & Utah Railroad has provided' the latest development in Safe, Economical Freight Movements . Salt Lake & Utah Railroad Tut !ci of Mammoths Because of their finer texture and distinctive "old Ivory" pallor the well preserved tusks of the ancient hairy mammoth are more valuable than elephant ivory. Eskimo hunters hunt-ers and white gold miners In Alaska Alas-ka have reaped a valuable harvest from the tusks of the prehistoric mammoths they have uncovered along the perpetually frozen ground of the Arctic coast Such tusks have proven even a greater source of profit to prospectors in Siberia, from which region it is estimated that the tusks of approximately 20,-000 20,-000 mammoths have reached the world's Ivory markets since Siberia has been under the control of the Russians. Age Limits for Postmasters A man seventy years of age is eligible to hold the position of post-mister post-mister at an office of the fourth class which pays less than $500 per annum. But for offices of the first second and third classes the maximum maxi-mum age limit for applicants is sixty-five years. The maximum age limit of sixty-five applies also to those seeking appointment as fourth class postmasters at offices paying $500 or more per annum. The limit Is waived, however, for those who have been in the postal service for two years immediately preceding the closing date for filing applications applica-tions for the examination, and also for persons entitled to credit for military or naval service. Betray Their Elders Children are creatures who disgrace dis-grace you by exhibiting In public the example you set them at home.- Los Angeles Times. Herodotus' Tempi, F. Scientists delving fDto , past are able to reconstn,, the existence of pre-dvnastj J pies. The temple mental Herodotus in which toe EJ uuu, uucuia, was among recent finds. o- PUnt Follow. Whit Hu The common plantaiiueeta up wherever the white m The seeds are too hearth,; the air, and just why it o we wnue man nobody knows. 1 North American Indians rnw "White Man's Footsteps" beooe this Decullar - v.tx.wuomm N j a genus of the herbaceous pW which include five British and Is not native to this coitisd urit. Pts Hard to Rum Chameleons are said to be w to keep in captivity, some of W reiusiijg all food during the d tar. Their food consists of imd " cuuyyeu ureal aauM eggs, with plenty of water Is. ml low receptacles. In spite ta care, they are'unlikely to live ki than a few months in captivity. o . Smallest of Birch Ftmil; The white birch is the nay and least widely distributed of M birches in eastern North Amefc says Nature Magazine. It is o more than 40 feet high, and Its to seldom becomes greater thai I Inches In diameter. Its wi often clothe the stem nearly to & ground with their slender tarf and their ends divide Into ous dark brown wiry brancMeti l which the leaves, in falL are a sh er of gold. World's Fine.t Hortes Arabian horses are bred by the Bedouin tribes in the deserts of Arabia, Ara-bia, and are crossed on tbe so-called cold-blooded horse of the North, and their blood has been the foundation of practically all breeds of horses In Europe and America. The number num-ber of pure-bred Arabians Is now and has been at all times small, even In Arabia, due to the desire of most breeders to outcross In order to attain some special quality, such as slse, speed, action, jumping or weight hauling ability, all of which Arabian blood possesses to a considerable degree. "Ni Decorated Highways Austrian believe in beautifying their highways with attractive sign posts. The sign of a bear, and a bare little cupld is near Merkenstein, Austria, The bear Is symbolic of tbe place noted for bear hunting. and cupld Is pointing In the direction direc-tion of the next town. On a wooden pillar supporting the sign are carved the names of all the famous bears slain In the vicinity since 1C95, and the record shows that Merkenstein's nlmrods had their boll year In 16ST, with 17 "bar a" accounted for. De troit Newt, ujoaamaB ainascsie saaonxa 3 tw Fit awn bant ecu d ml. dpodhl mL Itoa flnaaa is kUr iaaaHwl vU mr B afrtiaw4 coanaieas SftootUy ttrmm Get your money's worth from your home heating plnt! condnne paying a preminm for obsolete hand firing or for coity automatic fueh. Install an Iron Fireman Automatic Coal Borner a yocr present furnace and enjoy all of the luxuries' of automatic boffll heating plus genuine aaringi In your fuel bills. Iron Fireman giyei better heat for less money because It beta small-sued, low-cost coal automatically and efficiently. In adHdo to cutting fuel costs, Iron Fireman provides steady, rren heat r gardless of weather conditions, eliminates the wasteful smo" nuisance, and reduces furnace care to a mlntmnm. learn what an Iron Fireman can do for you. We will gldly tn1 surrey of your heating plant and render a report that shows 'p what sayings and betterments you may expert when Iron Fire takes over the job of giving your home better beat for less on Telephone us today M . S. Lott Pumbine & Heating TELEPHONE tJ, IXH1 W rH -wu(14AU HEATING ST Alt o "Z3 ! I Tadv: pi- ilers... k |