AMERICAN BANKS

Southland Times, Issue 22011, 10 May 1933, Page 4

AMERICAN BANKS

Mr Norman Mclntyre has missed entirely the point of our reference to the wild-cat banks of the United States. The British bankers probably gave advice as to banking in the United States, but their ideas were for the adoption of a system in which national

banks would occupy the dominant place, banks which, like the British, would be truly national, in that they covered the whole country. Instead the Americans developed a system in which branch banking has no place. A New York bank cannot have branches in other States, and the United States has no form of banking comparable to that in existence in the countries of the British Empire. The Federal Reserve Board supplied the machinery for bringing banks into cooperation and for applying control to prevent wild-cat operations. In most States branch banking is prohibited and though there are State banks in which State governments are interested most of these are outside of the Federal Reserve system. That some method of control or some extension of branch banking is desirable is shown by the fact that between 1921-31 there were 9285 bank failures in the United States representing a loss or tying up of deposits amounting to over £800,000,000. Of this number 1698 were members of the Federal Reserve system, and 7587 were non-members, while in 193031 alone the bank failures totalled 3643. Most of these were small banks of limited capital. In 1931 there were over 56,000 banks in the United States, and 60 per cent, of them, representing over £2,400,000,000 in capital were outside the Federal Reserve system, and the failures in this group are frequent. Thomas W. Lamont on this point said: It is a noteworthy fact that in number 90 per cent, of the banks that failed in the decade 1921-30 were located in rural communities, subject to all the vicissitudes of crop failures, or of the expansion and deflation of business “booms,” without any of the protection afforded by a parent institution fortified with ample capital and managed by experienced men.

These bank failures affect the whole financial situation because they lead to hoarding. The National Banking Act, to which Mr Norman Mclntyre refers, did not call this system into being. The system to which we refer is that which makes it possible for a host of small individual banks to exist and produce, even in prosperous times, a steady crop of failures for which depositors must pay dearly. Mr Mclntyre should know that there is really no national banking system in the United States, and if he takes notice of the failures between 1921 and 1931, before the crash in the United States, he will realize that there must have been many “wild-cat” banks established in the republic. The National Banking Act of 1863, at which Mr Mclntyre looks askance, brought in banks operating under a Federal law, but the State banks operating under State laws, continued and the typical United States bank to-day is a local institution. Mr Mclntyre, who seeks financial conspiracies on every hand, is hopelessly wide of the mark in citing the National Banking Act and the hopes of bankers in connection with our reference to the “wild-cat” banks, and his suspicions of the Federal Reserve system probably have their origin in the same source.

Last evening the Government Meteorologist issued the following weather report and forecast: General situation: There is little change in the situation. Pressure is very low to the east of New Zealand, while an anti-cyclone covers Australia and the south-west Tasman. Forecast: Winds, between south-west and south and moderate to strong mainly, but still reaching gale force in places and decreasing somewhat. Seas, New Zealand waters, rough generally in the eastern Tasman Sea, strong southerly winds _to gales and rough seas, but moderating somewhat. Weather, still cold and squally with scattered showers at times in many districts and hail in places and snow on the ranges; some improvement however likely, especially in eastern districts. Advertisements relating to Meetings and Dances will be found on Page 2. The Ryal Bush branch of the W.C.T.U. started a Band of Hope at Makarewa Junction on Saturday evening. Mrs Pasely, superintendent of Temperance work among the young people, was present and explained the aims and objects of the Band of Hope. The following officers were elected: Superintendent, Mrs Wilson; president, G. McKenzie; secretary, W. Dooley; treasurer, M. Clark. Twelve members signed the pledge. In the Supreme Court yesterday, before his Honour Mr Justice Kennedy, Percy Braithwaite, of Nightcaps, miner, for whom Mr Gordon Reed appeared, sought an order for the restitution of conjugal rights against his wife, Violet Annie Braithwaite, who did not defend the application. After hearing evidence, his Honour made an order that the respondent should within 14 days render the conjugal rights as prayed.

An enjoyable concert was provided by the Civic Band, under the baton of Mr A. R. Wills, for the inmates of the Borstal on Monday evening. A. bright programme of marches and. solo items delighted the youths, and, in addition, several pleasing individual numbers were given by • assisting performers. At the conclusion, the superintendent (Mr C. G. L. Pollock) expressed the inmates’ appreciation to the performers for the excellent concert they had provided.

An exhibit which attracted considerable attention at the Winter Show yesterday was a display of articles made by disabled returned soldiers in Dunedin. An additional attraction for the ladies in the same stall was a demonstration of weaving on a miniature loom by Mr F. Girvan.

Twins are not particularly common in the vegetable kingdom, but they occur occasionally and a fine example of a twin turnip was brought to the Times Office yesterday by Mr Tuffley, of Clifton. The vegetable had two distinct tops'and two well-formed tap roots, but the turnip itself was all in one piece.

Evidence of the public-spiritedness of patrons of the Winter Show as well as their interest in the Boys’ and Girls’ Agricultural Club movement was forthcoming yesterday. On learning that there was no prize-money for the calf-rearing and pig-feeding competitions, Mr D. Marshall took round the hat and in six minutes had collected £6 to be distributed among the successful juvenile entrants.

“Insofar as teaching represents a handing down of knowledge from a higher to a lower level, there can be no justification whatever for stocking the upper shelves with the latest advances in science and the lower ones with wornout and discarded knowledge,” said Mr T. A. Glendinning, in an address to the New Zealand Institute of Chemistry in Wellington the other evening.

At the request of the Dominion Executive of the New Zealand Farmers’ Union, Archbishop Averill, Primate of New Zealand, has composed a suitable prayer for the opening of future Farmers’ Union conferences. The prayer is to be submitted to various church dignitaries for their approval. His Excellency the Governor-General (Lord Bledisloe) is to be asked to open the next conference and offer the inaugural prayer.

A young counsel, well known in his profession, became so engrossed in his address the other afternoon to a not so youthful jury in the Wellington Supreme Court that he committed an amusing faux pas. Remarking to the jury that all knew what boys were, he suggested that the boy in the case had been riding his bicycle recklessly. All you gentlemen,” he went on, have been boys yourselves—some of you, probably, long before I was. . . .” “Not merely probably,” commented the Chief Justice (Sir Michael Myers) with a smile.

At the monthly meeting yesterday of the Gore High School Board of Governors, attended by Messrs E. C. Smith, (chairman), W. Gee, J. H. Clark, A. T. Newman and A. H. W. Aitken, it was reported that Messrs Smith and Gee had been reappointed parents’ representatives on the board, but no nominations had been received to fill the vacancy caused by the retirement of Mr A. L. McDowell. The vacancy had thus to be filled by the board. Messrs D. L. Poppelwell and Henry Smith (Waikaka Valley) were nominated and on an election Mr Smith was elected.

Owners of motor vehicles when they go to obtain their licenses at the traffic inspector’s office will find that the Town Clerk (Mr W. F. Sturman) has introduced a new and simplified system. In the past applicants have had each year to fill in a great many details on a long white form. This laborious annual process will no longer be necessary, for a new form which lasts for nine years will be used. Once this form has been filled in an applicant seeking renewal of his license has in subsequent years only to sign his name. Apart from saving motorists trouble the new system is more efficient and economical from the staff s point of view. A change has also been made in the form of driver’s license issued In future a hard-backed folder will be used to contain the license proper which is attached by gum and detached at the end of the year to be replaced by the new license.

The recent fire in Tay Street was responsible for considerable damage to goods in Carter’s Clothing Store although nothing was touched by heat or fire as their stocks were separated from the fire by two shops and a right-of-way. It is understood that Carter’s have obtained a substantial cheque from the Insurance Companies in payment of the damage.—Advt.

John Murray, coal merchant, Esk Street, Tel, 207, sole agent for Wairaki Coal, advises that this favourite coal is again on the market and is still sold at the reduced price for cash.— Advt.

A whisky of character and distinction. DEWAR’S.—Advt.

Mr A. W. Martin, the well-known Rupture Specialist, from Dunedin, is now on his twenty-eighth annual visit to the centres of New Zealand. He will be at the Southland Club Hotel, Invercargill, from Tuesday, the 9th, at 10 a.m. to Friday, the 12th, up to 5 p.m., when he will leave for the Southland Private Hotel, Gore. Consultations free. Hours, 10 a.m. to 5 p.m..—Advt.

Do you know that although your joints may be stiff, swollen, twisted, inflamed and painful, Tavener’s Arthritis Prescription will return the use of them and alleviate your sufferings, full information free from J. Tavener, Arthritis Specialist, High street, Christchurch.—Advt.

ECONOMY IN CLOTHES is not a question of price but of value. J. H. Geddes and Sons, Tailors, Dee Street, offer their (genuine) Tailored Suits and Overcoats made in their own workrooms at prices that must interest you. (Sac Suits and Overcoats from £6 6/-). As well as studying your own interests you are also circulating your money in Southland to keep Southlanders employed.—Advt.

School Wear.—Warm Blouses in navy flannel or cream winceyette, Wool Cardigans or Blazers, Serge Gym. Frocks, Warm Knickers, etc., at Miss Nobles, The Baby Shop, Dee Street. — Advt

Good value for your money is our aim. Raspberry toffee 8d per lb. Try our malt toffee, great flavour. Ayson’s 2 shops, 5 and 72 Dee street.—Advt

“Velvetex Vests.”—A wonderful Vest in short or no sleeves 2/6, O.S. size 2/11, X.O.S. 3/6. These are made in New Zealand. Agents: Wicks’ Hose and Vest Shop, Ltd., Dee Street.—Advt.

Just opened up newest goods for Easter. These goods go in at sale prices with the stock we bought at huge discounts. Best quality worsted socks usually 2/11 reduced to 1/9. See Carter’s advertisement front page.—Advt.

Show Week Bargains at the “Exhibition." Millinery, a selection of smart felts in turban styles, in all headfits and a variety of fashionable colours, 3/11 each. Coats, in diagonal, crushed and crinkly surfaced materials, with luxurious collars and the new puffed sleeves, 49/6 each. Call and see them at Thomson and Beattie, Ltd. —Advt

THERE’S A LITTLE BIT OF DEVIL IN EVERY LITTLE ANGEL!—and that applies to babies more than to any other kind of angel especially where books are concerned. But heres something that will defy even Baby ■ strong fingers. Try “Mrs Strang’s Unbreakable, Untearable Playbooks next time Baby wants amusing—full of pretty coloured pictures of animals and children at play. Prices 1/-, 2/-, 2/6 and 3/- each.—Hyndman’s, De« Street, Booksellers.—Advt , .