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Show DIRECTOR OF FEDERAL f ; -, RESER1DANK SPEAKS Prosperity of the Country Is Unequaled, Declares Alden Anderson, An-derson, Lieutenant Governor of California, in Addressing the Bankers of Utah in Session in Ogden Banquet at Hermitage Closes First Day's Entertainment The afternoon session of tho Eighth Annual Convention of the Utah Bankers' Bank-ers' Association, closed with some excellent ex-cellent addresses by men of known ability in the banking business. Tho first addross, which was delivered by Fred W. Merrill of Chicago, was given in full in last night's Standard: Tho other spoeches were as follows: J. II. Grut, assistant cashier of the Continental National . bank of Salt Lake City, gave an address on "New' Business and Small Accounts." He said: "Mr. President and Gentlomen of tho Convention: I have been asked by the president of the Salt Lako chapter of the Institute of banking to say a few words to you on the subject sub-ject of 'Small Accounts and New Busi-noss.' Busi-noss.' "You are all familiar with the now ruling of the federal reservo banks which goes Into effect on July 15, whereby the profits made by national banks on exchange, and which In a large measure will affect the state banks, will be eliminated. We have to find some way of reducing our expense ex-pense or Increasing our income to offset off-set this loss. "Small checking accounts have been a source of trouble to city banks and country banks as well. The question ques-tion Is how to remedy the evil. Few os us have ever stopped to consider what a loss there Is on a small checking check-ing account. I can safely say that close to 60 per cent of tho total number num-ber of checking accounts ln Salt Lake City do not average $100. Did you ever stop to consider that the small depositor wants tho same material furnished tho larger one? As nn Initial Ini-tial exnense It costs about 35 cents to open a checking account. Tho customer cus-tomer with the small account is, as a rule, very lax about his nffalrs and makes little or no effort to care for and see that his account Is not overdrawn, over-drawn, and will In the ccurBo of a month possibly wnnt two or three statements. Yet the banks themselves are largely responsible for this condition, condi-tion, they having advortlsed extensively, exten-sively, 'Open ;i checking account and pay your bills by check,' etc. I recall re-call not very long ago a check came Into tho bank from one of our small customers for 35 cents marked, 'For hair-cut,' and we frequently have checks of the same size. Checking Wage Accounts. "Checking accounts for the small wage earners make them spend moro than they really would If their funds were ln a savings account. There Is no question ln my mind, and I feel quite sure you will agree with me. lhat It Is easier for a person to draw a check than to come to the bank and draw from his or her savings account and see the balance put down so much less. "A small charge should be made for checking accounts that do not average aver-age $100 or over. Perhaps country hanks cduld not do it, but I think Salt Lake and Ogden banks could, rhe thought may occur to you that a small account often controls a large jne and that If you attempted to make a charge on the small one they might withdraw both, but if all bank3 lgreed to make a charge he would be 10 better off by leaving j'ou. If you gentlemen feel favorable to some ac-ion ac-ion regarding this matter, would it lot be well to have a committee appointed ap-pointed to Investigate? "I am going to say a few words in egard to the nation-wide thrift cam paign organized by the American Bankers' association for the purpose of promoting thrift throughout the entiro United States. No doubt a groat many of you are familiar with the plan. I have not had sufficient tino to prepare figures so will put it up to you In a rough way. "Tho plan adopted is for all the banks of a city to organize and contribute con-tribute so much money toward starting start-ing a campaign for new savings accounts. ac-counts. In tho advertising, no bank Is given representation and all the banks share equally in tho results obtained. ob-tained. Public speaking is carried on and the co-operation of the city's most prominont representative business busi-ness and professional men is sought. It is carriod to the schools, churches, and no conceivable way of impressing the value of thrift upon one Is overlooked. over-looked. Slogan of the Bankers. "The slogan of tho American Bankers' Bank-ers' Association Is 'One Million New Savings Accounts in 1910'.' This year marks the hundredth anniversary of the organization of the first savings bank In the United States. There are at present eleven million savings accounts ac-counts with an average of about $500 to each account The Bavinga deposits depos-its have grown from one million dollars dol-lars In 1883 to the sum of five billions In thlB year, no small part of which is due to the Increased habit of saving. But there are untold numbers who have no savings accounts, and it is to thib end that the American Bankers' association has launched this campaign. cam-paign. Money at presont is plentiful and when such Is the case, 1b It not tho time for the banks of tho country to spend a llttlo time, money and energy en-ergy In the direction of promoting thrift? Some people don't know how to save and never will know unless it Is drilled Into them, and the plan udopted by tho American Bankers" association 1b tho bent ono to got at tho hearts of thoDO who never saved a dollar. "A few years ago the Contlnentxl National Bank started a 'Thrift Club' In connection with our savings department. de-partment. The plan was to pay $1 a week for 48 consecutive weeks and at the end of that time, If the depositor de-positor completed his payments, he would receive an additional dollar as a gift from the bank. It was a success. suc-cess. We opened up over GOO accounts ac-counts ln two weekB, and about 420 completed their payments. It was a new experience to me, but with the knowledge I have -now of conducting such a campaign, I believe we could have sedured twice the amount In the same length of time. Some of those who opened accounts under the arrangement ar-rangement had never tried to save a dollar and now are regular depositors. With the splendid organization and the concentratpd efforts of the heads of the publicity department of the American Bankers' association and tho methods outlined in their advertising adver-tising I believe the banks are bound to get results. Labor is well employed, em-ployed, and when it comes right down to plain facts, the laborer is the man who Is more of a saver than anybody else, He seems to realize that with his small income he must look out for the future. "M. N. Harrison, secretary of the American Bankers' association, with whom I have had some correspondence correspond-ence on the subject, is anxious to see Salt Lake City start such a campaign and is willing to co-operate with us to that end. "I thank you." (Applause.) Anderson on Reserve Banks. Alden Anderson, dlrectof of the federal fed-eral reserve bank In district No 12, president of the Capital National bank of Sacramento and lieutenant governor gover-nor of California, said in part: "Mr. President and Gentlemen of the Convention. I must disclaim In the beginning any official duty here at your convention. My visit is casual and purely In my personal capacity. However, as a director of the federal reserve bank, I am the selection of a portion of the banks of this district, and my main purpose In being here was to endeavor to get better acquainted ac-quainted with the banks of this section. sec-tion. I have had excellent opportunity opportun-ity In- the past to become acquainted with the bankers and with the Industrial Indus-trial and commercial conditions of California, Oregon and Washington, but I had never had the good fortune to have that experience here. I want to say to you that so far as I havo gone I spent yesterday In Salt Lake that I am more than favorably impressed im-pressed comparatively with the men who are engaged in that line of business busi-ness in this section. The very fact that you are not situated close to other reserve centers has tended to make the people in that industry here independent, self-reliant and dependent depend-ent upon their own exertions. Those things build character, and the repu- luliuii ui nit: ineu 111 iuc ua.ii mug line in this section is second to none in tho United States. "It has been a great pleasure to me to meet the members of the national ' banks and other banks here, and the Information I get casually from them I can assure you will from time to lime be used' to advantage by me, II possible, as I participate in the ad-ministration ad-ministration of the affairs of your federal fed-eral reserve bank. ; "As you were told by the acting mayor this morning, banking Is dU- '.' terent now from what It used to be, and bankers are treated differently ' than they were ln the olden days. In ? these days of quick transportation, In ' ' the Interchange of products from one end of the country to the other, a '.; bank Is Just as essential ln a com- ' munity as a postoffice, and, therefore, it is necessary that the people in re- ' mote places should know or should be- 1 lieve that the paper that comes to them through the various hanks Is as good as the institution that is near to ; them and well known. That Is the t reason for the extension of the bank laws In the different states. ! Makeshift Law on Coast. "In California we had makeshift ': , laws, used more or less in a political way, until we had one or two very disastrous bank failures. Those fail- '; ures coming at the time of the panic : in 1907 called general attention to the ' lack of laws on that subject, and it resulted re-sulted in one of the most complete ; and drastic laws of any state in the Union. When that law was enacted ' many of the told-time bankers felt very' much chagrined, they resented me coming 01 examiners ana tne maH- '.. Ing of reports similar to the United (Continued on Page 16). II ' H CContinued from Page 10) LfM H ,i States system; but it was a matter of H education, and those men had to be V assured that those laws were on the H I statute books for their own protection H ! as much as 'for the general public. H ' Prior to that time in California there H were banks starting on every street H corner. They would also put up a H piece of yellow paper and call it a H; ' bank, but there was no stability to it, Hr i and when times of stress came those K ' very institutions were the weakness M I of the whole system. These have all , ' been eliminated now, and the man of H j good judgment, of character and abil- V j ity, who puts his own capital into the H ' institution, is limited in his operations M only to the extent that a dishonest M man or a man of poor judgment could H do damage if it were not fqr those H laws. And today- those laws are gen- fl erally accepted, the good that has H come from them is' generally recog- Hj nized, and no one in the banking busl- H I ness would change them if he could." Hj On Prosperous Conditions. j j George N. O'Brien, president of the m: j American National bank of San Fran- V "t Cisco said in part: H j "Now that the uncertainty which H ! existed as to the nominees of the Re- B I publican and Democratic conventions Hj , has been dispelled, tlie country is B ready to settle down to the daily grind M j and let the spellbinders do their worst H j for the next four months. The peo- Hl j pie as a whole are too busy to give H politics much thought these days, and H If business keeps on going as strong H until November the usual pre-election H ' furore will be sadly lacking, Indus- H f triajly speaking, there Is little cause H i for complaint in all this broad land, H j and expert forecasters agree that no H I serious reverses are probable before H j the end of the European war. It is H true that there is a slight slackening H i up In some Industries that have been H working on 24-hour schedule for H ;' months, and certain inevitable adjust- H raents In lines that were over-bought H through fear of undersupply have oc- H curred, but these small setbacks are H along the lines of safety and common H sense and relieve pressure in quar- H ters where needed. iH t "The grain crop outlook, according H $ to the government report of June 1, is considerably below the ten-year j average. The wheat harvest of 1916 will posBibly be the smallest since , 1911, unless its ordinary enemies fail to materialize during the balance of I the season. This shortage is thought H to be more of a help than a hindrance, H V however, on account of the large hold- j i over from last year, which. Is becom- H i ing rather difficult to carry in some H j I sections. H i' "Barring the Pacific coast, when H ! j "weather conditions were unfavorable, H l grasses of all kinds will yield bounti- H fuliy this year, and we will probably Hi harvest one of the largest hay crops H in our history. H "Bank clearings for May and June 1 show conclusive evidence of the I health and activity of business. Previous Previ-ous records are being broken daily and the total for last month was almost al-most equal to the high record of March. "On July 15 the federal reserve MH ft) hoard's universal free check collection i i plan will become operative. Its suc- H Si cess of failure "will be watched with j the keenest Interest by all bankers, 1 j, whether members of the reserve sys- 1 tern or otherwise. Some opposition to j the scheme has recently developed 1 .among the banks outside of federal i reserve cities, although such banks H fc stand to lose far less by its operation j than their reserve city neighbors. 1 The problem has been discussed with 1 I much thoroughness and some beat by H I tne various state bankers' associations 1 1 In recent meetings, and several reso- H I lutlons have been offered in conven- H I tlons memorafizing congress to repeal H I that part of the federal reserve law 1 I which directly authorizes the plan. H I In view of the fact that most bankers 1 ft consider the great increase in the vol- H I ume of out-of-town checks, which they H have been called upon to handle in H recent years, as an evil and advocate M celaring house agreements In curtall- m ment, it is rather Bignificant that the Hj federal reserve banks should be work- D I ing to qpposite ends. The answer IseemB to He In the difference between political and business thinking." Other speakers were O. C. Beebe .. of Salt Lake City; Charles S. Burton I of Salt Lake City. Fred J Kiesel of Ogden; W S McCornick of Salt Lake , City; Joseph R Murdock of Heber City, J. G M. Barnes of Kaysville; 'George P. Edwards, president and edi-jtor edi-jtor of Const Banker of San Francisco; A E. Kimball of Elko. New A banquet served at the Hermitage in Ogden canyon ended the first day's program of the bankers' convention. The menu consisted of chicken and the famous mountain trout from Ogden Og-den river as the principal dishes. Judge J. II. Howell acted as toast-master toast-master and with appropriate remarks welcomed the visitors to the hospitality hospital-ity of the Ogden members of the association, as-sociation, then introducing George P. Edwards, editor of the Coast Banker, who responded to the toast, "The La-aies." La-aies." Other toasts were responded to by Professor Thomas of the Agricultural college. Logan; George N. O'Brien, Ran Francisco, Cal.; Charles S. Burton, Bur-ton, Salt Lake City; Le Roy Eccles, Ogden. and W. S. McCornick, Salt Lake City. oo |
