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December 28, 1907.]
National Banks, on the contrary, were to be independent of the State laws and con- trol, were to be chartered from Washington direct, and to be under the immediate inspection of officers appointed by the Treasury, who were given full powers of inspection at any time, and very efficient control which they were bound to put in practice. In return for this the National Banks were authorised to issue notes, which were to be legal tender, but against which they had always to keep a corresponding amount of Government securities, or actual coin. The Bankers generally complained that these rules were too stringent, and would defeat their own purpose: Govern- ment, however, persevered, and several of these banks came into existence, and have continued to the present day.
CHINA OVERLAND TRADE ŘEPORT.
407
personal influence, to override the State point out legislators, and associated with these were a be mistimed, because in December, be- that the anniversary must set of executive officers-smart men, as men ing the height of Judea's rainy season, are considered so on the New York Stock neither flocks nor shepherds could have Exchange. The result W&S Knickerbocker Trust in addition to its hem. That doesn't matter in the least, of that the been at night in the fields of Bethle- primary business of trusteeship, commenced course, any more than does the juvenile to run in wild competition with the Banks. discovery that Hongkong chimneys afford Now two more inconsistent businesses could no possible ingress to the rotund, } cund, not exist, securities of a trust association are immovereindeer sleigh. It is Christmas, a season As a matter of necessity the rubicund figure pictured in the traditional able, and only realisable by deliberation recognised, like the Japanese bonen kai, as an on an unexcited market. On the other
and the necessary condition of existence unremembered, at least once in a while. a time for forgetting things better left of a bank is that its securities shall be at all times liquid, and never liable to become life out of sight by appointing "Lords of We no longer push the sordid aspects of rigid or sluggish. Ou this account the Misrule," or institution was not recognised by the New
"Abbota of Unreason;" but we do seem, even the more pessimistid of York Clearing House, a voluntary as- Alongside these are the ordinary State sociation of the leading banks, including more assiduously than usual. It is a time us, to practise just now the art of smiling Baoks, subject to the laws of the particular the National Banks. For the purpose of State. For the most part the Sate laws being admitted each bank has to hold at and forget enmities, to practise impractic- to revive neglected friendships, to forgive provide for periodical inspections, but least 25 per cent of its indebtedness to able goodnesses of heart and behaviour, to these are by no means of the exhaustive depositors in cash, and so undergo an audit recognise that "all within the seren seas description required by Washington. every week when its financial condition is Regarding these Mr. FISCHER tells us:-
are brethren," that every living creature in published. Naturally to a trust institution the wheel of things has its claim "Trust Companies possess charters from such as the Knickerbocker institution was
upon the State Governments which give them by fundamentally there could be no possibility ing as each one of us remembers this fact kindest consideration of the rest. Accord- far a larger latitude and freedom of activity. of its doing this. But this very fact gave during the current season, we shall enjoy They generally have very powerful financial it an unfair advantage over the real banks, | what We interests as their Backing. It is by asking in aiding concerns that did
are all wishing each other—a State Governments for, charters that the publicity; and an unscrupulous President
desire Merry Christmas and a Happy New Year. powerful political backing, plays its rôle. took advantage of the opening. The lesson The first trust company in New York was then to be learned from the New York crash chartered by special act of the Legislature is the weakness inherent in many of these in 1822, and all trust companies up to 1872 American developments from the duplicate were under special law. It depends upon system of Federal and State legislation and the State politicians to get privileges which practise. What may be perfectly legitimate place these trust companies in the position as of doing business mouuting to figures of reprehensible when viewed from Washington, seen from New York may be highly great magnitude; and as a natural con- and vice-versa, Fortunately the sequence of recent years their numbers have at large is not blind to the evils engender- enormously increased. It is quite natural ed of double control, and the uatural in these disastrous days of collapse that one remedy in the gradual extension of Federal or other of these could not hold itself. over State control is growing steadily They had not enough cash reserve in their from day to-day. Still many important vaulta, and were unable to get cash, even at influences are ranged on the side of the the call rate from day to day of 100 per present wasteful system, and must note- per annum, and found themselves com-worthy and influential of these are pelled to close their doors so as to save the trusts which strive to monopolise and centre holdings of the bank from greater loss." in their own nominees the entire industry of the country. The downfall or the New York Banks is only one of the minor effects of a generally unhealthy system; but has probably done a great deal to opening the public eye to the necessity of some radical change.
cent
SEASONABLE.
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The State Legislatures unskilled in the iencesc of finance had in fact been granting charters, mainly from political influences, which while professing to safeguard de positors and others, permitted things to be done contrary to sound finance, and in- consistent with themselves. He cites as an example the Knickerbocker Trust Company of New York, whose collapse was the immediate cause of the disastrous panic that for three weeks ruled New York. A MERRY Christmas and a Happy New Year.
(Daily Press, December 25th.) Under its charter the institution was legal Tue old wishes in the same old phrase, with, depository for State, City, and Court funds; we trust, some of the same old sincerity and it could hold on trust any real or personal feeling. At this time, and in these regions, estate, act as executor of deceased estates, it is practically out of the question that we trustee, guardian, or as assignes of bank- should hope to revive the exuberance of rupt estates, and could undertake the DICKENS' management and control of minors, lunatics that was a noble exuberance, it would here Christmas Carol," and though and idiots. All these were perfectly and legitimate functions, and had the charter
now perhaps seem forced and even strictly limited the disposal of the funds in found among our taipans; nor are we sure unnecessary. Old SCROOGES are not to be the hands of the Trust to kindred purposes, that in their honge would it be easy to the institution would undoubtedly have discover many of the BOB CRATCHIT type. proved a public benefit. Unfortunately the It isn't the real genuine mistletoe that State Legislature had not the requisite hangs this morning in many of our houses; financial knowledge, and placed no strictions on the kind of securities in which the very children, for whom Christmas is nor is it pukka hully. Here as in Britain the Trust was permitted to deal. The maiuly kept up, tell us that SANTA KLAUS board of Directors contained names that consists mostly of false whiskers, and in might have been looked upon as un-deference to juvenile anlightenment, many impeachable, did there exist a "definite rule limiting the investments to real estate or officiates at the Christmas tree
a paterfamilias or host scorns disguice, and corresponding securities. Unfortunately ordinary_clothes."
in just 11 mass many of the most influential of the directors the word is faithfully observed by the part of were men belonging to the great trusts who various bodies of worshippers, who are have been accustomed, owing to their content to ignore the callous crition who
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CHINESE PROCESSIONS.
(Daily Press, 27th December.) Chinese at Hongkong, a missionary refers to Referring to the recent caruival of the
China as the country of pageant." The marking any event not fitting in the general procession is China's favourite way of
This missionary takes a characteristically run of things, as funerals and weddings, foreign view of them, and a view quite transparently tinged by his hatred of their shows, and reveal a complete lack of taste "idolatrous tendency. They are" tawdry and refinement," and are marred by "din and noise." Buddhist temple processions are more noisy and more elaborate than the usual wedding and funeral shows." There is usually an idol, with a band of music as near to " his reverence 11
as possible. bope that in some way the gods will show The superstition behind all this is the favour to those who honour them." then-frankly— “ It
C
"
And
may be said that idolatry is losing its hold upon the Chinese of Hongkong, and we think that the element of idol worstup is reduced to a minimum, even if it is not absent altogether. Probably there is that the gods will be inclined to give some hope iu the minds of the less informed blessings; but if this is so, little is made thereof publicly." Of the two big dragons at the Hongkong carnival, he says, they certainly the most elaborately prepared were made for the occasion, and " were
many processions in China." that I have ever seen in an experience of There is an almost cheerful reference to the rain that
betokening bad luck that the gods have fell, and " probably it will be regarded as
lurking dread in the minds of the more sent such weather. And there will be
ignorant lest some further trouble should ensue," Not even the object lesson in the good," could overcome this missionary's evils of opium, which would “ probably do repugnance to the whole thing, as witness his remarks that "trade and business have been thrown completely out of gear. The love of the picturesque is no doubt a good thing, but perhaps all the better when kept reasonable an obsession can make an other- within proper bounds." How very un-
are nearly always “tawdry," from the Lord wise reasoning intelligence. Such shows
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