OUR AMERICAN LETTER

Evening Star, Issue 12674, 30 November 1905, Page 8

OUR AMERICAN LETTER

GROWTH IN NATIONAL BANKING Since legislation was enacted authorises; tie arganisaton of rwt.onal towns, with an individual capital of £5,000 there has been a ".Tat ir.r-re.--s" of such banks. 'lll© remarkable prosperity of tois country during the last eight years has aho si.mutate .he or,anis.a.cn ot banks with larger capital, sv that t lie banking interest of the country has fully doubled :!urai" that period. Authentic figures show iliat ""the growth in the circulation of national banks since 1900 Ills been from J3J3 200 000 to £95,600.000. based on Government bonds, or about- £10,000.000 per .uinum- . Recent reports from Washington relative to the largo incriaso. in national banks, and the consequent expansion of national currency, are being discussed by experts it l itvo Government Service, sairie of whom i'aim that there is danger (though not immediate, or serioue) attending tho unlimited <■ sponsion of national bank circulation. I hev believe that tho country is able to absorb ail the bank note circulation that is Ukety to he issued on the basis of the present National Debt. If this view be ' irreot, there is a possibility of the circulation being nearly doubled within the. next rive or mx years. Much depends, hovv-cver, upon whether conditions continue to be favorable to the organisation of nation.'il hanks. Capitol will go into thus business only when there is an opportunity for carrying it en successfully. Banking depends npon tie success of"otltor businesses If the preva l.np prosperity continues, more i'tanks will be organised, and the. note cirt'li'ation correspondingly increased. Abusi ii-fs reaction would not only check the growth of national banks, but would also promptly bring about a curtailment of bank jifito circulation. There is no more conclusive evidence of the prosperity of this country than the growth of these national hj inks "and the increase of national bank note circulation. aJI of which is absorbed in carrying on the industries and commerce of the country. It must be borne in mind that, every note is protected by the National Treasury. IdiSSON OF THE SAVINGS BANKS. A lato mimber of tho 'Saturday Evening Post.' of Philadelphia. presents sxniie, interesting statistic-, of Havings bank management in New York, and in the light of the revelations as to the management of the three bit; life insurance companies in that citv it makes instructive rejubr.g. The New York savings hunks hold £2.400,000 of deposits, and almost the same sum has been paid by their ]<>licy-ho;dei-s to the three life insurance companies now under investi-iition. But there are no reports ot extravagance or of reckless investments i:i the management of the banks, as there at., in the management of the insurance < icnp.uiies. The total expense of the sav- ; "•_'-; hanks, including taxes, in 1904 were «i!.'v 50 per cent, larger than the salaries ja'd in tie- home ollices of tho insurance c ohm anics. The total expense of the banks !;ist viiir were practically one-third of 1 I :• '■■!■<. of their assets; while the total '\|":.i\. <>f the insurance eonijiajres were '• •: ;h- same peril d li, pa- cent. The earn-i-'_v. ef the insurance eoinpanhs in interest and dividends wero 5.95 per cent, gross on til ira-sots, fioui which expenses must I-' deducted ; while cloven New York sav im.'.s harks advanced the net interest to depositors 4 per cent., and a surplus over and above thai. Tlie ass ts of the savings b'liks are invtst.d in real estate first mortgag-.-, Onted States • iovernTiient deben- :>;:■.-:, city, town, ra'lroad, and school >»- j.<is. Their depositors are protected by a I.'w which provides that So trustee of a bank sltall have any i '. -rest, direct or indirect, in the gains or profits thcTPof, nor as such directly i.- indirect It receive any luymrnt or ■ ;nolii7n«\nt for his .-■en-ices, except, lie I ■•■ ;r. salaried officer o r the bank as well ; . nd .no trustee or officer shall, dlr.-ctly <-.• ndiiectly. for himself or as agent or partner of others, bo'row any of its funds or in any manner use the some; "or shall any trustee or otticer Ik-ciimc iui 'idorser or sitrety or h-come in any manner au obligvr for money loaned by -uch bank. It will be seen thai although the savings hinks.are doing bn.-:inoss s'de. by side with t'.c insurance companies, and arc handling aUrut the same amount of the people's n'.oncv. there are no points in common in their resp.-ctive mnnngem nfs. Then-' are l o £5,000 salaries, no syndicate oiierations, no promoters, no wild speculations, no rstroiism. no " h.'ch finance" with the hanks. They hindle the depositors' monev wlse.lv and safely. Tho two businesses are liTibke. and may not lie compart-d. The iwo methods of cn-Miii. riiif aie very uch unlike, and can be compared. MORE DISCLOSURKS. of the insurance companies r-v.- in progress Teveais that the actual cost ~; a. policy taken out at tho ace of thirty ; .. about £3 lOf for £2CO, whils the real ..rst. in the level premium companies is nbont £5 n year. The. family of Mr M'C'urdy (president of til.-? New York Life Insurance Company) uot £BOO,OOO for services not worth a lii'ie of that sum. Extravagant crunmis--ir:-? were paid to asents and solicitors, nhile larce sums were bunded e.v, ; r to corrupt le™isb.to!a. to political parties, ex-i'.--sive fees to poor ieiral counsel, for bani|nets and socials. The exp-nse to income of four insurance companies- having ajjirrei:ate r.ssets of £21.000.000 was 16.6 per cent. For four savin"? hanks whose acirretrate ass.t" wore £23 000.000 the p.'rccntasje of ei]nns ■ was 9 per cent. As a consequence, of these revelations President Roosevelt will iime up-'n Ci>nzre~s the need for passing a RiK to regulate the management of insurance companies. The several Stat-o.s will take the matter up, and do what they can to remove t'he. temptation to misuse trust funds.. CRAFT "—PtTBUC! AND 'PRIVATE. The popular conception in this country of "praft as "personal caln beirotlen by questionable if not illegal methods" is surely widening with successive disclosures of fresh fields in which the trraftor has been optratiii2 apparently unknown and unsuspected by the public. The opiniou of many is that if the facts could be known the big railway corporations, tho meat-packing combines, the oil companies, and the various trusts are fostering just as much " trraft " aa the bii life insurance companies. The Public Service is not altogether free, though probably not involved to the same extent as in private business, if all the facts could be known. Wo have become so accustomed to hearing that public office is a public trust that now we regard it as axiomatic. Public office is not the only trust ; there is more or leas res>ponsibiltty in every private employemut. There . is no i|iustiou that public Strait has been materially reduced by relentless exposure and prosecution, and the very fact that'public opinion is beinj; educated up to the enormity of public and private giat't offers encouragement to hope for its final suppression at least in its most flagrant foims. The most potent force contributing to this most desired end is that of the Press, who are making trraft, no matter where found, odious inthe sight of the public. The American Press are in this vindicating and uplioWug their reputation as one of the main bulwarks at our liberties and safeguards of our free institutions. CANADA'S AMERICAN PROBLEMS, ijome Canadian newspapers that come to ns are becoming fearful that the American immigrants who have settled in the Northwest Territory may make trouble for the older elements of Canadian population. In that part of the Dominion the Americans are getting quite, numerous; so much so, indeed, that it is feared they may shape the politics of that section. Annexation to the United States is not an issue just now, but if it should come to the front a heavy vote would be polled for it in the newet regions of Canada. The Canadian politicians are looking ahead, and are seeing grave perils in the "American invasion." In the State of MMMchusctta there is Fnm«t talk of reciprocity with Canada, but that subject is no longer discufned in the Dominion. Hope for that has been arriadoned, and the CanadianG ate turning to a. policy of retaliation for relief. The manufacturing interests of the Dominion, which are expanding and acquiring great political influence, demand a revision of the Tariff far that benefit! and, accordinu to all an-

pfarances, they will get it soon. The Canadian manufacturers expect that higher duties on American competing products will jrive them a monopoly of the homo market. There are many articles which they cannot afford to sell as cheaply as their American rivals, cvon after a heavy duty has been paid on the goods. The American manufacturer will not surrender the Canadian market without a struggle. He will therefore cut his prices. He sells his goods there now for less tharl he does- at home, and will stand another "cut" and yet live. 'The volume of American export trade with Canada will not bo reduced by any change in the Canadian Tariff, but the trade may be less profitable than it. ha? been. THE PRESIDENT'S SOUTHERN TOUR. President Roosevelt and staff have started on their tour of ihe South in the face of the vellow fever and against the advico of his friends. He knows no fear, and that very fact warms the people of the Southern States toward hint, and they give him an ovation at every stopping point. 'J ho speeches which he makes to the people, who gat.hor in great throngs to see and hear him make very good reading matter for all the people. North as well as South. It. is more than likely that tho complexion of the Cabinet will be pomewhat changed before tho close of the present fiscal year. Secretary Shaiw of tho Treasury will retire of his own motion in order to clerir the. way for his formal entry for the presidential race. His place will no doubt be filled bv the transfer u'i Mr Cnrtelyon from the Postal Depnitment. Atorno.y-G-enoral Moody will retire as soon as the "trimt" cases, now on trial, are disposed of. His place will be filled by the transfer of Mr Bonaparte from the Navy Department. Mr Geo. Ij- Meyer, the present Airbassador at St. Petersburg, will bo called to the head of the Naval Office. Mr Metcalf, Secretary of Commerce and lxibor. is expected to retire soon, but his sueces.or ha.-: not yet. been named It should be understood that these, retirements- from the Cabinet are all entirely voluntary. The. President expresses himself as abundantly satisfied with tho services of each of his Ministers:, and would be very glad to have them remain with him until the close of his term. THE PHILIPPIN'FaS' ROVING COMMISSION. Despatches from the Pacific. Coast announce the arrival of Miss Alice Roosevelt and party at San Francisco from their N'ur of the Orient. Mr E. H. llarriman, who was ono of the party, will take- Miss Roosevelt to Chicago on a special train, and in his own car, and will endeavor to break all speed records from coast to coast. The distance by the. route selected is 0.234 miles, to be made by a train of tcven coaches in sixty-two hoars and thirty minutes. No such speed has ever been accomplished in the history of railways in this country. Mis Roosevelt said to a reporter: **l am more than over convinced that there is no country like our own. The things that I havo seen on this trip have been interesting, and, of course, instructive as welL Everywhere wo wore shown every attention and courtesy, and not a single disagreeable incident marred our pleasure." She instructed tho reporter to say for her : " Tho gifts which I was presented with 1 accepted as - a com-piiment to my country, and not in the nature of a personal tribute, and they do not represent any such value of the fabulous character as reported in the newspapers. That I did not take the divo into a tank on shipboard with all my ordinary clothing on ;ua a residt of a dare. Neither did I receive an offer of marriage from the Sultan of Sulu or any otherpotentate. I am going straight homo to the White House and to papa." SOME THINGS LEARNED IN THE PHILIPPINES.

Secretary Tuff's expedition lias now disbanded. "Oiu- part, with tho Secretary,, have returned via San Francisco; Miss Roosevelt, with General Corbin and a fewspecial guests, go to Pckin. Some regrets ar>expressed on account of tho breaking up of the parlv, hut there is general relief felt over the "fact that there will bo ! iio more banquets, no moro after-dinner j speeches, no more crowding for chief Beats | now they have time to think it over. Some of the party are so full of what they have seen, heard, anil learned of the situation in the Philippines that they must talk or explode. The first question is: What has been accomplished? Have the visiting Conressmen learned anything more than they <lid? Have any of Unin changed their iniiifLs? Every one of them seems to be glad that the social and official functions arc at ::.n crd, and all have learned that , they now know where the Philippines are j located; they know that they me across tho Pacific Ocean and are over 7,000 miles ' from San Francisco; they know what tho i several islands produce, whether hemp, i sugar, rice, tobacco, fruit, or cocouimts. i They also know something of the several \ tribes ami their peculiarities. They know i that the Mcro wears bright colors and loves to kITI, while the Filipino loves to talk, and that neither of them loves to . work. Thr-v also know that tho Moro wants to kill Christians, and that at least 5 per cent, of the Filipinos would like to live in splendor, hold the offices, and lx>come. the governing faction over the remaining 95 jior cent, of ignorant people. The average Filipino thinks that the remedv for all economic and political troubles is the free adr ission of all Filipino products into the United States and the taxed admission of all American products into tho Philippines. Thnv think, further, that the United States should establish what they call "agricultural banks," by which to loan money "to farmers. They could then produce'heavier crops, have more products to export, which wo"ld bring them prosperity. Thev want, in addition, that Chinese labor shall be admitted to do tho heavy work, ] while they look on and take life easy. The j Congressional party have learned that the Filipino leaders, who advocated immediate indopcndsncp. know little aboit a democratic government. In a public hearing thoso leaders said that it was proper to i-i'-vo a "governing class." consisting of the educated, and an "obedient class," corner sed of the poor; the educated class to determine what '..hottlil he doms, nnd the, f.liedient class to be go.xl p.rd do as they aio told. Tho so-cullrd lenders have no i,le;\ of government at all except to follow the example of the Spanish grandees, to collect the taxes, and live in splendor. The \isiting Congressmen enjoved the politeness and bospital'tv of the Filini-i.-., whom he found to bo a charming host, but lacking the quiot judgment and common of our homo people. Thev learned of the work of the. caciques, or petty bosses, who in the hill country manage the masses as if they were slaves, hiring them out at a fixed price to somebody else, and taking more than half of their earnings as commission. They al=o learned of the demand for Chinese labor, notwithstanding the idleness of two-thirds of th- native people. They lcarned of the beautiful woods growing on the various islands, of which everything ■useful and beautif") can be made. They saw evidences of skill on the part of native women weavers, who make cloth out of Hie fibre of the pineapplo and hemp. Thcy s:iw the native farmer in the field with the earabto and the ru'le plough with one handle, and then the wonderful products. The Congressional partv visited the public schools! heard the children recite, and boi-auie familiar with the enthusiasm of ltoth American and native teachers. Th".v heard the children sing American patriotic soiurs in English, and Wiw that the schools were crowded, and that the children have cleaner f;ices and wear clothing to cover a little more of their bodies as the time goes bv; and thev found the American teacher feeling that he is a full partner with God in th-e work of redeeming the people. The Congressional party now say freely to the interviewer that they went to the is- ■ lands without prejudice, many of them believing that it would be better if we did not have the islands at all; but they have come awav convinced that we must keep ■ the group," and with them try to God and exsnmeree at the same time. They found everything just a little better than they expected. Everything in the lino of gov«rwncnt was proceeding upon right lines, and thev believe that if the Filipino people cannot "be advanced to a satisfactory degree of intelligence fitting them for selfgovernment on the pre»ent plan of education, and giving them all that ho is capable of doing, the enterpri » must be abandoned, and as a consequence the Filipino must be told to enjoy his egotism, and the Moro to I return to the hOia "and his bolo. 1

I GROWTH OF TRADE SCHOOLS. The growth of trade schools and the in creasing demand for technical education among the youth of this country who have left the public schools and gone into bu. inciss, or expect to do so shortly, are strikingly shown in the number of night schools in New York this year. In order to meet requirements the School Board of New York have opened four trade, night schoo.s. One of them is located in Brooklyn, and reached an enrolment of 610 in the opening week. In these ciioola instruction is given in carpentry and joining, cabinetmaking, pattern-making, blackumit hing, tin mithing, mechanical drawing, machine shop practice, J electrual and steam engineering, industrial J chemistry, applied physics, advanced dressmaking, millinery, and domestic science. Tho course covers anventy-two nights, with throe sessions a week. In this manner boys who have left tho grammar schools will learn the rudiments of a trade, and lind ready employment, in it, in a subordinate capacity. They earn something, and at the same time puroue, under competent instructor.--, a night course of study relative to their chosen line of work. So great is the rush to these schools where they have been established that their rapid innltiipli.atiun is confidently expected by experienced educators. An American educator, who has recently returned from a visit to the technical schcoLs of Munich and Germany, says that they furnish a way by which the systematic and useful education of hoy.- is continued by law until they reach the age of ; seventeen or eighteen years; that tho eight I or ten hours a week, being compulsory, reI suits iii prompt and regular attendance; i that the object ih view is strictly adhered j to. That is the progressive education of j the youth an individual and citizen, with . technical instruction in his chosen calling. j The teacher are capable, and make cvery hour of instruction count, while the business men of the city take an active interest in carrying on the schools, which embodv I "a weil-detiued policy that underlies ail \ forms of activity in Germany—namely, that every worker, whether in trade, buidneos, 'or profession, requires general cdu ation, and also technical preparation, lor the par- | ticular work he is to <k>.'' The exceptional progress of Germany in industrial and commercial activities is not an accident. It lis well that the main cause of Germany's 1 advancement has been grasped by our people. The public schools of the United States arc at length beginning to recognise a new necessity and a new factor in keeping abrcaH of the times educationally. I 'ltssks. Herrington, Kansas, October 25.