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By James B. Morrow.
Washington, D. Nov. 1. A DOCTO& for banks that aip sick, a policeman for banks that are well, and an execu tioner for banks that need the ax. Such, stripped of the flummery of his title, is the controller of the currency of the United States. A disgraceful number of bankers are in jail. There are thirteen in the Ohio penitentiary. Others have gone away in stealth and vanished among the un identified. Some are in*ththere the self-murdered. An BMW1BMB. f^ graves woulf be more in prison, more in hiding, and more in perdition but for the govern mental doctor, policeman and execu iiuiicr. Since 1901 the name of that officer has been William Barret Eidgely. He is a human treasure house for hoarded romances and tragedies in moneythe father confessor, as well as the rod of wrath, the detector and physician of contrite, evil, and ailing cashiers. and presidents. Consequently, he was a good man to interview. Moreover, he comprehends his business, was born into it, and nurtured by it. His grand father w*s discount clerk in St. Louis for the old United States bank, of which Nicholas Biddle, the famous financier, was president. The Ridgelys have been men of wealth and power at Springfield, in Illinois, for seventy-two years, one generation following an other in banks, gas, street railroads, coal, iron and steel. William Barret is 48 years old, a civil engineer from the Rensselaer Polytechnic institute, a coal miner, a manufacturer and an ex pert accountant and money lender. At one of Mr. Hanna's unique break fasts of corned beef hash and various trimmings, conversation turned to the state of the national treasury. "Well," J. Pierpont Morgan asked, if the gov ernment needs more gold certificates why doesn't it print themt" The greatest banker in America instantly perceived his confusion. But the words were out and vexation could not re call them. However, a populist would not have blushed. And therein was all the difference. Money is the blood of business, and altho philosophy and vir tue ma}' protest, in it is contained much of the sunshine which warms and glad dens the human life. Yet it is a mys tery to those who spend it, to those who save it, and to many of those who deal in it. Furthermore, why do banks shut their doors while depositors wring their hands and tear their hearts in the street! How can their security be made greater? Who gets the money that is stolen, and who are blameworthy for its theft? "How many kinds of paper money are there?" I asked of Mr. Eidgely. "Two money issued by national banks and money that is issued by the government. There are three kinds of government money, however. Gold certificates, representing gold metal stored in the vaults or the United States silver certificates, representing silver metal in the vaults of the United States, and treasury notes, which are the old greenbacks of the civil war period.' "Have you any jurisdiction over state banks?" "None whatever. Private banks sav ings banks and trust companies are operated under charters given to them A BBBntifnlHrrT J8|BpEft|Wr^| i *,&" BBIKBK^ Special to The Journal. Omaha, Neb., Nov. 3.The lowest type of prehistoric man that the North American continent has ever produced has just been discovered several miles north of Omaha, buried in a socalled Indian mound. Antedating by thou- by the states, and are responsible alone to the states. The government in Washington only controls the national banks. Whenever the word 'national* appears in the name of a bank, that bank is licensed by the United States, is subject to the laws of the United States, and is open to the supervision of the officers of the United States." There was a time when banks hold ing state charters issued paper money, much of it worthless from year to year. How were they driven from that busi ness "The law of 1863, which established national banks, laid a government tax of 10 per cent a,year on the money is sued by all other kinds of banks. The burden of that tax made the circula tion of money, impossible and speedily, accomplished the purpose in view." "How is a national bank organ ized "At least five reputable men must apply to the controller of the currency for the right to establish a bank, to sell stock, to choose a name, and so on. Their characters and their antecedents are carefully investigated. I is not necessary that they shall be men of wealth, nor are they even .obliged to buy the shares of the bank, altho it is best for them to do so. Some con spicuous person in their Btate, a judge, or a well-known and trustworthy'mem ber of congress, must vouch for them. Once a jailbird of good address and ability started a chain of shell banks in the southwest.as a cover for his swin dling operations. Since then we have closely scrutinized everyone who ap plies to us for a charter." ''Where does the money which a na tional bank issues come from, and how is it made secure to those who get it in the course of business?" "It is manufactured in this city, at the bureau of engraving and printing, and shipped to the bank for which it is intended. Each banknote is signed by the president and cashier, after which it may be put in circulation as the law ful money of the nation. Behind the money are the bonds of the govern ment. For instance: If the circula tion of a bank is to be $100,000, the bank must go into the market and buy United States bonds to that amount. The bonds are deposited in the national treasury and cannot be withdrawn so long as the bank continues its money in circulation. The currency, therefore, of a national bank is as safe as human wisdom can make it. A bank of that kind of money may be stolen bodily and carried away, safes, building and of ficers, but its own money, out among the people, is as sound as the govern ment itself." ''May national banks pay interest on savings deposits V1 Yes, but they rarely do so. They are, in fact, the commercial banks of the country, doing business with manu facturers, merchants and others who are active depositors and borrowers, who take $10,000 to the bank one day and check out $9,000 the next day." "What kind of loans are national banks permitted to make?" They can loan on collateral security, which means bonds and shares of stock, and on commercial paper, or, more ac curately speaking, on promissory notes, which are signed by the borrowers and also by indorsers, if the banks demand additional names in the way of se curity." "'jMk LDEST PREHISTORIC PINHEAD-- SCIENTISTS AGOG OVER SKULL TheOriginal Nebraska Man Was Seven Feet High and Pow- erful, but Had a Mighty Small Brain. 4IHIH^K ^w^SSHHBmH^ %j THE NEBRASKA SKULL COMPARED WITH A MODERN HUMAN SKULL. sands of years the famous "Lansing Bkull" of Kansas, which has been es timated by scientists to be at .least 150,000 years old, the Gilder'# Ne braska skull" has startled the scien tific men of the country, and they are flocking to the home of Robert ESllSSSsBl e-.f '*"Qt, *-s! %Ld WILLIAM BARRET RIDGELY. Copyright. 1906, by Clinedinst. May loans be made on real estate houses, lots, buildings, farms?" No, but the restriction is frequently evaded. Under the law a national bank may take real-estate security for 'a debt previously contracted.' Thus a man desires to erect a factory. He bor rows money on his note to pay for the building. That is a debt contracted.' Then, by an arrangement with the bank, he puts a mortgage on the com pleted building, gives it to the bank, and thereby secures the obligation 'previously' assumed. We are con stantly running down such evasions of the plain spirit of the statute." "Are limitations placed upon tfye amount of money a national bank may loan?" The law is ironclad in that respect. A loan no greater than 10 per cent of the capital, and unimpaired, or actual, surplus of a national bank can be made to any individual, any partnership, or any corporation and in no case, re gardless of the size of the surplus, shall the loan exceed 30 per cent of the capital. There is a national bank in Pittsburg, with a capital of $800,000 and a surplus of $7,000,000. Under the laW it can lend no more than $240,* ^C9aBgS|S9^HflHB x. ^SailiaHSi H'ifi!tffreflglgffi^^^rffi jifffiPffl Gilder in Omaha, where the skull and several other bones of this man who lived before the glacial period covered North America with a vast sheet of ice. Professor Henry Fairfield Osborn of Columbia university, New York, and vicepresident of the American Museum THE MINNEAPOLIS JOURNAL HUMAN ITREASUR E HOUSE FOrKTRAGEDIE S I N MONE1 P" I S WILLIA B. RIDGELY COMPTROLLE OF THE CURRENCY 000, which is 30 per cent of its capital, to any borrower on earth. The Penn sylvania railroad, the Standard Oil company, John D. Rockefeller or An drew Carnegie could get no more. The Chemical bank in New York, whose capital stock is -$300,000, but whose surplus, nearly $8,000,000, makes its $100 shares worthy$4,100 .apiece in the market, can lend but $90 000 to a Bingle borrower." How many national Va^nks" are there in the country, and $yhat. are their capital and circulation?'-?- There ate 6,137 banks, which is an increase of 380 during thS-year, the new banks being prineipally^an Texas, Okla homa, Indian Territory, Minnesota, Illi nois and Pennsylvania. .The total cir culation of all the banks In the country, in round numbers, is*" $524,000,000. These are impressive figures, but more interesting, I think, is the sum of their loans. The active business men of the country have borrowed- from the na tional banks alone $4,300,000,000, which is about five ..times greater than the bonded debt of .the nation, and we have just got thru.with a fi&ibign w.ar. You can't stalk upon Jthe^Mage of human affaire and W ifctmwmki with a of Natural History^ w*g) at a theater pafcty in Nej^^feufe- ftf|$5*$ast Tuesday nighti A photograph' pf-the newly discovered skulls was ,handed him by a fiewspaper man With .the request that he pass opinion upon it. The first train leaving New York the next morning carried Osborn, en route to investigate what he pronounced the lowest type of man ever discovered in America. And with the skull of the man of the long ago in his hands, Professor Osborn stood aghast at the thought of the tremendous stride towards settling the question of the origin of man which this means. "It is without doubt the lowest or der of primitive man ever found on this continent," said he. And when a scientific man with the reputation borne by Professor Osborn makes a statement as firm as this one, it means something. The Nebraska skull shows an extremely small brain with corre sponding possibilities of the power of thought, intermediate between primi tive man and the lowest type of in tellectuality now known. The Nebraska skull is that of the primitive thinking man. When asked, "How does this skull compare with the Lansing skull, esti mated as being 150,000 years old?" Professor Osborn answered: "This skull antedates the Lansing skull by probablv thousands of years." Osborn was so delighted with the find that he spent the entire day mak ing drawings and estimates. Altho he had traveled two days and was very tired, he was so interested that he failed to take time for luncheon. Professor Henry Baldwin Ward, pro fessor of zoology, Nebraska university, says: I regard this skull as belong- SOME OF WING'S SHOTS AT MEMBER S OF THE JOURNAL'S STAFF AT THE JOURNAL'S "FAMILY PARTY" IN COMMEMORATION OF THE TWENTY-FIRST ANNIVERSARY OF THE PRESENT MANAGEMENT, TUESDAY EVENING AT THE LYCEUM THEATER, ONE OF THE MOS POPULAR ENTRE ACT FEATURES WAS A SERIES OF INTIMATE CARICATURES OF JOURNAL EMPLOYEES BY FRANK WINNT AND AMUSING AS "FAMILY JOKEG. SOMEOF THESE WERE SIGNIFICAS." BUT A GROUP OF PORTRAITS WHICH MAY INTEREST THE GENERAL READER OF THE JOURNAL IS RE. PRODUCED HEREWITH. mouthful of dismal figures, but every American should know that the bank ing power of the United States, which includes capital, circulation, deposits and surplus, is about $15,000,000,000, against $19,000,000,000 for all the rest of the world.'' "How many bank examiners are there OD your staff?" "Eighty and they are on duty in all parts of the country, two' being in Boston,.two in New York, two in Phil adelphia, two in Chicago, and so on." 'Who appoints them?" "The secretarv of the treasury, on my recommendation." "How are they paid?" "By fees, which range from $25 for a country bank, to $1,000, perhaps, in the case of a large reserve bank in a city. Each bank is examined twice a year, and is made to pay the cost of inspection." "Are the examiners skilled bank- ers?" "They ought to be, and if not they should be expert accountants." How thoro are the inspections sup posed to be?" "The examiners are empowered to count the cash, look at every book, scrutinize all the commercial paper, and see the collateral which has been left with the banks as security for the loans. Nothing properly can be kept from them. If they find conditions which ought not to exist they report the facts to me. Prompt action is then taken in this office. Nowadays, when I call a bank back to the law, or when any vital matter is at issue, I require that the answer of the bank shall be signed by each of the directors. The signatures of the president, cashier, and one or two of the directors will not do. My purpose in every case is to compel an acknowledgement from all the di rectors that they have read my admon itions, and that they intend to put their bank in order. With due modesty, I think that is one of the best things I have done during my service in this office. But while our examiners have the right to the fullest information obtain able concerning national banks, they can't search the hearts of mankind nor can they detect a forged signature to a note. Several years ago two bankers, father and son, clasped in each other's arms, drowned themselves in a lake out in the northwest. The father of one of these men and the grandfather of the other left a legacy of concealed debt and dishonor to his son when he died. The son took up the burden in silence and carried it for years. Fnally he brought his own son into the family shame and, troublehe had to, I supposeand the two struggled, not without some degree of heroism, with the dreadful inheritance which was to end theii lives. "After their bodies, linked together in the embrace of love and disgrace, were found, an examination was made into the affairs of their bank. The vault was filled with forged paper. The father, having an office elsewhere and twelve or fifteen kinds of ink, had been the criminal. I recall this case, which was rather pathetic in some of its aspects, to show that, so far as human ingenuity has gone, it affords scant protection against forgery when two or more officers of a small bank have entered on a conspiracy '^at crime." :jg& i i i it, ing to a class of aborigines of whom we- know nothing. They were very primitive." Dr. Edwin H. Barbour, state geolo- fhat, is$ says: "It is perfectly wonderful any race of human beings could have such a small amount of intelli gence. Dr., Barber, professor, of operative dentistry in Creighton university, says: "The jaw indicates tremendous crush ing power. These teeth have been worn down thru the process of grinding roots, nuts and raw meat. The lower jaw protruded beyond tho upper and there is an abnormal development of both of them." As compared with a normal skull, the Nebraska skull shows receding chin and forehead, abnormally large cheek bones and a brainpan ridiculously small. The dome of the head is only one inch above the top of the eye sockets. But the man was a giant, never the less. From other bones found in the same mound, the man who owned that skull originally must have been nearly seven feet high, despite his small head. His frame shows a muscular man with the strength of two ordinary men of today. In the mound where the bones were found, Mr Gilder first found three skulls and other bones of an intermedi ate race of men a race whose skulls show them to be below the modern In dian in intelligence, but far above the "Nebraska man" in thinking powers. While the archeologists are pleased at this first discovery, the lower strata contained a find so much greater as completely to overshadow the first. Several feet below the first burial, the bones of three beings were found. Sunday, November 4, 1906. "How would you add to the security of national banks?" "By increasing the number of ex aminers and by paying them a fixed snlary directly from the treasury of the United States. Now they get fees, as Ihave said, and the banks really are their employers. The fees range from $2,000 to $3,500 a year. In New lork they may amount to $8,000 a year. The clearinghouse in Chicago, which means the associated banks, has employed an outside auditor who regu larly makes a detailed examination of his own. It is a good idea, and mighf be taken up in all of the cities." "Are national banks becoming interested indirectly in savings banks and trust companies, one kind of bank working to the profit of the other?" A national bank is not permitted to own the shares of stock in any business enterprise whatever. Sa there can be no direct connection between a na tional bank and a savings bank or trust company. But there is no law against a shareholder of a national bank own ing stock in a savings bank or trust company. Nor can there be business or ethical reason to the contrary." J'What are the chief causes for the failures of national banks "Practically, there is but one cause loans made to the officers of broken banks. Forgeries, thefts, and all the crimes which are common in banks be gin right there. Let me tell you a story. One of the finest men in the Ne a J""2*e i he was honest at the eginningthe point is that he was 'it' in that bank, the head and front of everything and could loan himself money by one process or another out side of the knowledge and permission of his directors. They were busy men in their own affairs. That is the com mon moral and business infirmity of di rectors in general. I go so far as to say Why the second burial took place over the bones of the first, the scientists cannot conjecture. These three skulls were of one class, showing that the "Gilder Nebraska skull" is not a freak,'' but really a type of men who lived in that day. The bodies had been encased in wet clay, which had then been burned, so that they were practically in a sealed case. This burnt clay had gradually disintegrated and begun to crumble with age. Several of the great institutions of learninp in this country have written Mr. Gilder for information and have asked for casts of the skulls. The Uni versity of Nebraska has requested that all the bones be placed in a specially constructed cabinet in the museum in that institution, so that the scientific men of the world can come there to read the page of the past which Mr. Gilder has unearthed. Mr. Gilder, by the way, is a brother of Eichard Watson Gilder, editor of Century, and of Joseph Gilder, editor of Putnam's magazine. TO HIT THE CORPOEATIONS. Pierre, S. D., Nov. 3.State Secre tary Wipf has issued the eighth bien nial report of the department of the secretary of state, and in the letter of transmittal accompanying the same he calls attention to the matter of fees to the department, recommending a radi cal advance in filing fees for corpora tions and changes in the laws for such filings. Election returns under the auspices of The Journal, Auditorium Tuesday evening. -Arr '.^tt^vj that no officer can rob a bank unless his directors are either his dupes or confederates. The only way to stop crime is to make its commission impos sible. Government supervision of banks, thru the controller of the cur rency and his examiners, can detect a wrong act only after it has been done. The directors of banks must be the forces of prevention. They alone are to blame when a bank is looted by its trusted officers. I say this without any qualification whatever. ""Not long ago I got after a man in Texas. He was the bank, cottonseed company, and cotton baling concern in his town. The capital of his bank was $50,000 his surplus, $40,000, and his deposits, $150,000. He had loaned himself, under these conditions, some* thing like $125,000. There were direc tors the bank, of course. The man. came storming to Washington after his receipt of my letter. 'That money,' he said, 'couldn't be safer. Why, my. dear sir, it's in cotton, and the cotton is right across the street in a ware house, where I can see it every hour of the day. Besides, it is insured. Gov ernment bonds couldn't possibly be better.' Nevertheless, he went home and fixed matters. His bank was sound and really not threatened, but it was not doing business inside the law, and his directors were criminally neg ligent in their duty. "There ir. a dominant man in nearly every bank in thiss ~J- uw *jjv* "uu isaun. I line cuuiitij'. yy ucu U^J world, so all who knew anything about is honest and a genius no one suffers, him said, put $50,000 of his own money Even so, he needs supervision, and hav- mto a bank out west and became its ing common sense and integrity, he does president., He was young, immensely not object to it. Sometimes the dom- popular, capable and honest. Persons finant man is a director with many al whom he knew men of millions, were going into Amalgamated Copper when it was 20 or 30 points above par. They said that Standard Oil was to, be duplicated in red metal, and all that sort of thing. Owners of railroadst antd that tin* $2,700 of money due him was checked him up in person and put truth sent west from that ci'ty by mail. and vigilance on his tracks. And the Amalgamated went down a few points. supreme court of the United States The broker called for his margin. The banker, his money in a letter coming to him as fast as steam could carry it, took $2,700 of the bank's funds, which would be replaced, he thought, within forty-eight hours. More margins next day. More the day following. There is no use to dwell on the story. The shortage amounted to $190,000. A number of the directors were to Eu- sake,' he said, 'give us time to save the bank We will meet the embez zlement, and no depositor shall lose a cent.' I could have filled the atmos phere out that way with lightning and all kinds of trouble, but I waited. The bank was saved, but the door of the penitentiary closed behind its ruined president. "Now the point is this: Passing over fate the young man and gladlythadmittinof lied and hazardous interests. Again, ho may be the president with factories or real estate en his mind and hands. Pos sibly, he is the cashier who thinks he sees a short cut to wealth thru a broker's office. what he factories, they were no cheap prophets. is, whether he hassNoifmatter visions in dreams or The. young banker telegraphed an order i revelations by word of mouth, be would tZ York Jus a be almost harmles his directors makes the directors of all banks re sponsible for the acts of their officers." "What would increase the security of state banks, including trust com panies?" A system of direct supervision and examination by fearless and honest public officials. The dread of inspec tion is a wholesome power for good. I fancy the examiners of national banks rope. One of those who were at home.! accomplish=./. more by+u the silenta-mr influencen+Via fairly flew to Washington. 'For God's +1-"J- SHE KNEW THEM. Chicago News. HemingwayBut yon had all the eggs yfc wanted, of course? Mrs. Heminway (back from the summer boarding house)No, the farmer sold most of his eggs In town. HemingwayBut you got those he didn't sell? Mrs. HemingwayYes, but I think they wer the ones be couldn't sell. FIGHT FOR APPLE TRADE Canada's Poor Crop Provides America's Opportunity. Special Cable to The Journal. London, Nov. 3.The Canadian appla crop this season will yield not more than 500,000 barrels, or 700,000 less than last year's, and it is made known on tha Liverpool fruit import market that American exporters will take advantage of the shortage to attempt to capture the English market. The American supply, on the other hand, has increased from 1,200,000 to 2,000,000 barrels, the crop in the western states and New York being the greatest ever known. Hitherto the apples from these states have been almost exclusively kept to American cities, but the enor mous increase in the supply will enable growers to export large quantities. Al ready shipping contracts for 300,000 -bar rels have been signed. The reports on the Canadian apple supply and those on Canadian corn and canned foods are satisfactorily different. The corn will this year yield 90,000,000 bushels, or 4,000,000 more than last year, while 11,000,000 salmon have been caught in Canada, and there is a rising demand for canned and cured goods from that country. The Chicago meat exports up to July have fallen, on the other hand, to 4,800,000 pounds, more than 4,000,000 pounds less than for the same period last year. The pure food law is just what we want. It proves that Hunt's Perfect Baking Powder is pure, just as we told you. i country. When he in of their presence than in any other way.'' "Is the bank officer who expects 't put it back' any less a criminal than the man who takes it with a dark lantern and dynamite?" "He is the greate criminal and by all odds tho more dangerous. The police know the robbers who carry jimmies. Unfortunately, there i3 no di rectory of the other fellows." _i. lit a