BANKERS Mo UCM LN Ia “Se a Deir N 1 ‘ational Magazine of Banking & Investments VANCOUVER FEBS ~ 1964 PUBLIC LiBRaRy Survey— Management— Bank Capital— Stock Analysis— Anniversary—From Where We Sit . - - Some Thoughts on Our 80th Anniversary duction a reprod ye found follow will be f ae of this: maga fh. A perusal of its con- ences between the €cond= out in bold relief. Said Pte fat is : \d recorded in Two years recoveral trom the depression of 1884 fly Tab 1898, 4 pinning unimpaired. The upheavals tha Wake of World Wars Land Hi, on the other hand, hav fous recoveries from the de wever, tha id 1907. Tt seems worth noting, h they were, they left our constitutional under followed in the problems and the remedies for our economic ills. This trend toward n controlled economy has lang been it ave bean deat with from time to time on this page Fallowing isthe substance of some of the things we've ind to aay about I CHEAP MONEY vs. ADJUSTMENT. While we have learned a Tot about countercyelial measures sine the thirties, iti scarcely to be expected that we have now entered upon an era in which we ean dispense withthe necesty for periadeally placing our ceanomie howe te order. Maladjustments will occur in the very nature ot thing, so there will have tobe eoreetive adjustnent, A momentary artifal stimulation of demand is pr cisely the line of action that is best eleulted to ager vate rather than corect whatever excnuen may enter Correspondingly deapen and prolong the nected stone tent when it nally gets under way, FEDERAL RESERVE POLICY. Shifts in monetary pole have been designed to forestall an accumulation of adjustments of such dimensions au to cate sons worse than'a minor recession Ithas been and renee onveton that, whatever errors of judgment en gee esau in she formulation and promulgation othe hes leciions, tho philosophy by wih ie hey guided is a sound one. et Baueitessbeen GOLD & THE BALANCE OF PAYMENTS. mor aflectivo job of aserting its mathe i side our borders than i could ever do trom palit ‘The steadily accumulating claims against a stectit die ‘minishing gold stock are making us sit up and tie, oe tee. The days of shilly-shallying are ov ae come to Gold is doing a i _. TAXATION & INFLATION. ‘The inci pretty much forget the one gu inciple that shel transcend every other consideration: Simple (eat Su Us far end through all the fiseal bungling we've ‘The forees that have pensioner and des the saver ae stil at work, and they must be pute 83 Inflation is too high a price to pay for anything, ineuday a a tax cut a PRICE CONTROLS. ‘The record clearly indicates tht ty HOE arbitrary control of prices has effets that are qui te ; apposite of those intended. Price eeling ineviahly iy the effect of reducing production and increasing cnsany tion (barring rationing) of already scarce commits ot Price supports, on the other hand, tend to ineese pe : Auction, reduce consumption, and retard the sale oem AS modities that are already in excess supply. wins PROFITS. Utterly indispensable to a free economy, h to a free nation, is an untrammeled pricing mechanism — that is responsive to the needs and wishes of free pl who are actuated in their business decisions by the prot motive, ‘The desire for achievement, devotion to principle, aud the urge to serve loom large in the history of mankind as motives that have carried civilization forward; but the economic stability and progress upon which our civ tion rests and from whieh it dravs its sustenance bs Iways been and will always remain dependent upor 2 desire of men and women to better their own lot and ti of their loved ones. Implicit in all of the foregoing is the proposiian four greatest strength lies in the reliance we arse place on private decisions that have their moti hope for gain and fear of Toss. This is an incentie its utterly impossible to work into th fabrie of ‘ment, and for lack of it government-dominated © Imies in other parts of the world are doing & Ye Job of supplying the needs and wants oftheir PO Tt behooves us all to remember as we consider th confronting us that it eould happen here. EditorVor. I. No.1 CONTENTS. BNRING INTELLIGENCE | Mover avo Socunrtis, Tar oon, STAMENTS OP THE comPrROLLAR OF MASSLOHUSETTS SAVINGS BANKS Conse Qeoranore oF SrovKs ax Hose, ‘Gazuue over Revonne, Bre BANKIN i Tee busine of banking tales boo to gM 0 Big sae of develop et by thy Greeks at Romans These test baken seem to have occupied bot ‘tine poo in bsnes and oda cen ‘ti of the preset day and ther sla pllmoced very much athe sme mace, hy ued nots rece money on depo 1 ato diaatos on checks o onde ood snes pid inteet on deposi, making To Wialag at higher rat of iter ete eld. They alo valued and ox itt en mone aad gtd Ui huage “They wereld a high esters {2BEDenk aad great coutdence wn placed MESelgment ad integrity Tho nero 7 lg onan war te extortionate, arise to tu tax Teva, scheme {spe rspoiy aad eve get tthe hak wre oblige to ssl ral ater nios ene mimes ey were free ts meets Te te rpiate Usen aca of “ebbing Peer ert?” but when i is coma. that Sgt ot tac has ton the ay of fr el RE othe word sac Leting sat gored and all nnn of schomes ‘he ult SY ben ed witht elon Mapa Pret, ty wouter ft aplers did so well reheat is of early origi, lniodueed into Barone od evets in precious CHICAGO, JANUARY “Yeted to Finance 0” but, as society advanced, it became a Separate and distinet business. "The frst tavk of moder Burope of whieh record is ma Was the Bank of Venice, which, like all the other great banking institutions of the wor as the offspring of neesssily, being broul bout inthe folowing manner ‘The republic, being hard pressed for money had recourse upon three different occasions, {in 1196, 1480 and 1510, to foreed Ioan, inv turn for whfch it granted perpetual annuities At certain rates per eeot. The loan of 1158, ‘was extingulshed in thesixteenth century, and the ofies forthe payment of the annuities of the other two losns were consolidaded an eventually merged into the Bank of Venice This bank did a thriving business until 1797, when ites ruined by the French invasion, Alltiough this s the frst great basking in stitution on record, the origin of modern buat Ing is traces to the monoy dealers of Flor: fence, who were in high repute as receivers and Tenders of money as far back asthe thi teenth, If not the twelfth, century Basking was Introduced into Ei the seventeenth century, and prior to the ex lublishment of the Bank of England the Dasiness was eartied on in London, first by the Jows and then by the Lombards, wo ta ‘won were succeeded by the goldsmiths, Like fi innovations, the boxiness met with much ‘opposition, but as tho goldsiniths paid interest < 1 Commerce. 1884, tn deposits for one month or more fos | fat a much Yom rate of interest than their | ‘yas passed by Parfamentom Apri th, 1604, predecessors, tho business Focreased to such | Trion tht Groaial wer ealed (daw Spas Ce ee ee La lac Cr aeei are meaEcse eens si fete on occa toca tole SERRE TSO the Jews and embers wo precede them, Pees ee ne ee Chaves of teeing the ase ihe oad na tte Tower Wi ey dnl esr TAS us inthe Mngdom Sever bite afi Seana of ft etna ee im sh ea ote he oy seat bakers dopo hr eetequer, from mle they drew ¢ acc denis were + theme” putter new dpe ‘etter than the former one, for in 1072 Charles TL, being in need of ready eas, and profting by the example of his roblier father, closed fe exchequer and seized the deposits of the Dankers, amounting to 21,628,588, on which | fenty-five year’ interest had accrued, mac’ | 105 0 total of £9,291,818. ‘This higtrhanded ‘kingly robbery was, as might be supposed, too ‘uch for the bankers, who wore forced to | succumb to the inevitable and retire trom the ‘business in aruined condition. All ihe retara ‘ever made for the targe amount selzad inthe exchequer, wis £664,995, which was famed 28 ‘government Ioan and formed the bis of tio present national debt of Great Britain, ‘Twenlytwo years after the high-handed | robbery perpetrated iy Chtles Th the great financfal institution known us “The Bek 2 | Boslind” was established, ‘This bank owed n to the ditcalty experienced. by the | government jn raising funds for conducting ‘ho war with France. ‘The originator, Wi, Paterson, a shrewd Scotchman possessed of considerable financial ability, conceived the ea that the government, which was paying ‘rom 20 to 40 per cent, per annum on Tosns, ‘vould, without hesitation, give exclave and almost unlimited privileges to paren oho ‘would, im tura, furioh it with & fixed and Permanent Tenn at reasonable rate of inter st._To this he was not mistaken, and’ an act authorizing the establishment of the Bank of England. 1 was provided that the capital, £1,200,00, should be loaned to the gover ‘mont at 8 per eent. per annun, and that an allowance bo made the Dank of £6,000 per ‘annum, vids the atest on te Tan, ‘The Bank of Boglond nod the goverament The first issue of BANKERS MONTHLY MAGAZINE came off the press in January 1884. That first issue is reproduced here this month, to mark 80 years of con~ tinuous publication and service to financial America,