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About The Ontario Argus. (Ontario, Or.) 1???-1947 | View Entire Issue (Oct. 26, 1922)
THE ONTAEIO AEGUS, ONTAIHO, OREGON, THURSDAY, OCT. 26 3922 , T sch( sov coc tlin ; tor 1 IUO Wi 1. 2. 4. G. Tol MA 1. 2. :i. c. c. 7. 8. a. 10. To M II. Or Im To IN 1. 2.1 To TI HI To IN To Ml He T Ir 101 v To Ml tu tu PO Hll tri rs hVi i 1J 0. Ilabson Sees Unwell llnnka Wollesley Hills. Mass., Oct. 21, 1922. Thoro has been much discus sion regarding branch banks at the annual convention of the Amorlcan Bankers association which was held last week in Now York. Owing to the controversy which this discussion haB developed, Iloger W. Babson was today Interviewed regarding the probablo outcome "Of course tho discussion is the natural outgrowth of tho Federal Itosorvo Bank. Before the days of tho Federal Reserve systom," says Mr. Babson, "a branch bank organiz ation practically existed, altho it was an unconscious and lnvlsiblo or ganization. For Instance, the small bank in Indiana took orders from its correspondent bank in Indian apolis; and tho Indianapolis bank took Its orders from a still bigger bank in Now York. The heads of the Now York banks would hold a conference at tho home of tho late J. Plerpont Morgan or at tho home of Mr. Baker of tho First National Bank, and decide upon a policy. This policy they would pass along to tho largo bankB of Boston , Chicago, Philadelphia, Indianapolis, St. Louis, Now Orlenas, and other largo cities would In turn pass tho safo policy on tho tho small banks In their districts. Thoro wero no contracts or stock control exist ing between the banks, but thoro was an InvlBlblo control which was very poworful. With tho orgonlzatlon of tho Federal Iiosorve Banks, the clear ance checks at par, and tho legisla tion against interlocking director ates, this control was given a tro memdous Jolt. No longor is it much of an object for a country bank to keep a deposit wltth tho largo city bank. Thus there has boon a grad ual drifting away on tho part of the country banks from tho city banks. Tho largo cities havo become more independent of Now York; and the country banks aro moro independent of tho largo cities. As long as the monoy ratos woro high, this did not worry the city banks, but during the past year, whon monoy ratos have boon docltning, tho largo city banks havo distinctly folt tho loss of their former power. Hence, thoy are looking around for somo plan to get their country following back again. "Thoro Is no hopo of breaking up tho Fodoral Ileservo Bystom which is functioning vory satisfactorily. Tho men connected with tho Fodoral Ito Borvo Banks aro active and ambit tlous. Thoy aro building permanent and substantial banking housos and nro accumulating groat rosourcos. Thoy aro lBsulng roports and other publications which appeal greatly to tho country banks. Tho larger city bankB nro distinctly worried about this and aro looking for somo othor moans of recouping their prestige Thoy first turnod their attention to Forolgn trado organizations. 'For eign Trado" was tho koy noto nt tho Amorlcun Bankers Convention two years ago. Tho forolgn trado busi ness, however, has not panned out us well as tho banks had hopod it would, and our recent tariff has giv on almost a doath blow to what llt tlo forolgn trado wo hnd. Thus, the banks' hopos in this regard nro not vory saugulno at the moment. An otror attempt has shown Itself In tho organization of separate 'Invest ments' companies and sopnrato 'Ac ceptance' companies. Those havo boon organized by many of tho larger banks and most of them aro operat ing successfully. Bnnks aro find ing thoso Investment companies moro profitable nt tho moment than tlioir foreign trado ndvonturos. Tho banks aro gradually coming to tho opinion, however, that they can recover their Influence with tho country districts only with the or ganization of branch banks. Hence, thoro Is a drivo nt present to havo tho National Bank Laws amomdod so that a city bank can own a sys tem of branch banks In tho surround ing cities and towns. Whether or not this In line with Democracy, is a vory debatable question; but tho drlro Is on and my guess is thnt such branch banks nro as Inevitable as tho chain store. "All tho banking systems of Eur opo aro dovoloped on tho 'branch bank" Idea. Tho big banks of Eng land, Franco nnd Germany have their branches in hundreds of cities and towns. Ono of tho tlnost branch systems In tho world oxlsts In Can ada, Just ovor the United States Hue. In Montonl there aro eovoral big banks, and each of theso havo from one hundred to three hundred branches In dlfforent Canadian cities and towns. As alroady Btuted, I doubt sorlously whothor the branch bank systom la as good for the coun try as tho presont systom. On tho othor hand, wo know that tho pres ent tendency of ollmtnattlng tho email (armor und substituting tho rentor In placo of tho owner Is not for tho good of tthe country. The development of chain store systems which aro slowly crowding out tho individual retailer is not good for the country. "One Christmas Mr. Henry Ford sent mo an autographed photograph) on which he wrote theso werds: 'Eliminate absentee ownership and Industrial problems will solve them selves.' Ho is correct in that ab sentee ownership Is a present diffi culty with our industrial organiza tions. As the chain store grows, a similar dlfflcuty will develop which wo do not have with our individual rotall system, and as a system of branch banks grows, there will be that same difficulty with our bank ing systom. Yet I bollevo theso changes are inevitable. Branch banks -will be established thruout tho country, and Congress will on act such legislation as is needed to make this possible." "Mr. Babson was then asked what tho effect of this woud bo on bank stocks nnd ho replied that it srould bo a benefit to bank stocks. There nro enough banks in tho country districts at tho presont time. Hence, tho city banks will bo wise enough not to start now ones to serve as their branches. Instead tho city banks "will buy control of the better country banks. This will develope now and actlvo market for country bank stocks. Small banks in grow ing communities will bo special de mand. Their stocks will surely sell higher. At tho present time most bank stocks sell on 'book value' with out any consideration of tthe value of 'good will.' As soon as city banks bid against ono another for tho coun try banks, tho 'good -will' feature will at onco become a valuable asset. Banks which havo a small capital stock and banks which have a vir tual monopoly of tho banking inter ests in a community, will be In spe cial domand. A community which has four banks will havo these four banks purchased by four city banks so that each of tho four big city banks will havo a branch In the smallor city. Whon, however, there is only one bank in tho community the four big city banks will compete and bid against one another for the stock of this one bank. Tho stock of many of theso smnll banks, which today can bo bought around par, may later bo purchased by somo city bank at ?200 to ?2G0 a share. All tho country banks need to do to bring about theso conditions Is to buy good securities, avoid risks, and to koop thomsolves in a strong posi tion. Tho city banks will bo willing to pay a good prlco for good will and will not especially care about immodlnto earning capacity; but they will want to bo suro that tho assets aro sound and that tho bank hns not many lnmo ducks." Gonornl business as reflected In the Bnbsonchnrt continues to lmprovo. Its presont position but 3 per cent bolow normal. Tho highest point In two years. Traces of Old Civilization. Five mill from Durtford, England, on the old Domt road tho modern road-makers are making great ills tworles. Just ahead of them Is a lloiinm camp. Under their feet are traces of Celtic, even earlier, ehillzn Hon. The biggest find so far has been the skeleton of u woman, six foot throe Inches in height, crouched with hands clnspod in a praying attitude. Clearly not a Ilomnn burial, for the pose is Celtic and there was no trace of n collln. The skeleton lay whero tho body wua placed. In a hole cut In the solid chalk. The road makers aro keeping care ful watch for more of those "Anils." Already they havo accumulated por tions of a Rotnnn tesselatod pavement, some characteristic ornaments of the porlod, and othor signs that the area covered by the camp Is being ap proached. Many Visit Forests. Value of tho national forests for recreation Is lncretisliu; by leaps and bounds. Six million people visit the forests annually to camp, fish, hunt, hike, motor or ivat, from all parte of the United States, says tho American Forestry JIagazIno. ltocroatlonal use of theso forests represents possibly less than 1 per cent of their total po tential use. The rapid Increase In tu number of people deriving pleas ure from tho forests is duo in large part to their rocreationnl develop ment by tho forest Borvleo. Over a thousand campgrounds have been sot apart and posttxl and recrontlonal permits have been Issued for over 0,000 summer homes, cabins, hotels and club houses. Nearly Accurate. The standaul kilogram weights from which all other weights In the United Sttiti'S derive their calibration have Just bean checked by the bureau of standard mid found to be accurate to within two one hundred millionth of their uniM. Qreat Stuff. "Gonna put Hamlet In tho fllmsl" "Ctm get some treat effects with tho sbet." "Iluhr "Look at tho way he can fade in und out." Judge. FOR SALE five acres on hill 3-4 milo from High School under ad vancement Co. ditch with water right. Fine placo for chickens or garden. All good soil. Price ?6i". Inquire W. H. Doolittle Trustee. Anyono wishing sewing done will be glad to mako appointments. 30c per hour. Either write or phono Mrs. Bello Sur, Payette, Idaho. Phone 268 M. Best of references. 47-2t. "See McFall and See Better" DR. J. A. MTALL Ey Might Specialist, Ontario, Oro. WE GRIND OUR OWN LENSES Phone 147J IN RESPONSE TO THE DEMAND WE HAVE STOCKED A LINE OF Sty Shoes I iililf II H vk jP THE JAY BEE Will Grind your grain proper ly. It handles corn on the cob as well as other grains. Let us demonstrate to you. Poultry Supplies Mixed by Expert WS GRAIN CO. Ontario, Ore. 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