ir "
The Commoner.
JANUARY 17, 1913
scarcely bad this quaint tale been lost in tbo
avalanche of the next day's "news" than there
came from the heart of the South sea another
yarn even more .delightful. Charles Morrison',
blowing into New York from the Spanish Main,
unfolded something new. With a party of com
panions, treasure seekers in the Carribboan, ho
was wrecked on a small island, where they re
mained for a year In great distress; but their
misery was abated at last when a ship, wrecked
upon- their coast, was found to contain a cargo
of champagne, upon which the once disconsolate
sailors made merry for three months, during
which time no near-sighted mariner could have
told their isle of champagne from the Gay
White Way. It is a story that will instantly
recall "The Ebb Tide," that famous South Sea
classic of Stevenson's. But that was fiction,
while the truth, as adorned by the ship news
reporters of New York, is stranger than fiction.
t5 lip
T'lB first "dark horse" is described in the
Springfield (Mass.) Republican in this way:
The political term, "dark horse," is believed to
have had its origin in the following circum
stances: In the last century there lived in Ten
nessee a . "character" named Flynn, an elderly
person, who dealt in horses. Flynn generally
contrived to own a speedy nag or two for rac
ing' purposes if he could arrange for "a good
thing" during his peregrinations throughout the
state. The best of Flynn's fliers was a coal
black stallion named Dusky Pete, almost a thor
oughbred and able to go in the best of com
pany. One day Flynn visited a town where a
race meeting was in progress. He entered Pete.
The people knowing nothing of the horse's ante
cedents, and not being over-impressed by his ap
pearance, backed the local favorite heavily
against the stranger. Just as the horses were
being saddled for the race a certain Judge Mc
Minamee, who was the "oracle" of that part of
the state, arrived on the course and was made
one of the race judges. As he took his place on
the stand he was told of the folly of the owner
of the strange entry. Running his eye over the
track the judge instantly recognized Pete.
"Gentlemen," said McMinamee, "there's a, dark
horse in this race, as you'll soon find out." He
was right. Pete, "the dark horse," lay back
unjtil,tl'thr.ee,-'quart1er pole was reached, when
he 'cvent;. tp tbe, f rpnt with a rush and won the
race. , . ' . .
0
0
'
19
' WHO WILL BE THE NEXT?
Mr. Edward D. Mack, San Antonio,
Texas: Enclosed find 50c postoflico
money order 'for which please send The
Commoner six months to the subscriber,
whose name and address I hand you
herewith. I want to be No. 1 of one
hundred thousand democrats who will,
every thirty days, pay The Commoner
for a six month's subscription, the paper
tp be sent to a new subscriber, who they
feel will derive pleasure and profit from
the weekly visits of the paper and will
become a permanent subscriber. In this
way a steady, permanent growth will be
established which would be most effec
tive in holding the advantage gained in
the late election. The reactionary or
trust element will attempt to dominate
the party and will spare neither time,
pains, nor expense to get control.. This
effort upon their part must be systemati
cally and thoroughly opposed. Right
now is the beginning of a new era in the
affairs of state and nation; the great
mass of voters must be Interested and
instructed and brought into sympathy
with the honest purpose of our party to
bring about governmental reforms which
are necessary to insure theTiappiness and
prosperity of the people of our country.
Stupidity, ignorance, indifference and
dishonesty are the blinding curses that
have resulted in obstructing national pro
egress. Unjust laws that result in heap
ing together, into the lap of the privi
leged few, the earnings of the great mass
of humanity should be repealed and
special privilege abolished. This can
only be accomplished by a persistent and
insistent campaign of education. Who
will" be the first, and how many will join
me in extending the usefulness and in
fluence of The Commoner In this great
nation-wide educational campaign?
.
Earnings of the Big Banks
A writer in the New York World presents the "The factors entering Into the calculation ar
following interesting article: In view of the Given horowith:
Pit jo committee's investigation of tho money AVERAGE PER BANK. TWENTY-FOUR
trust, the circular issued recently by tho Na- BANKS, FIVE YEARS
tional City bank, in which J. Plerpont Morgan sJ!plB '"j indivi-dod profits' Y.Y. G.'iSoIoJo
is a director, is of pecular interest. TIicbo circil- Total working capital 9,909,207
lars are usually prepared by President Frank A. Not deposits .30,930,151
Vandorlip and are issued monthly. The circu- Not annual earnings 930,301
lar is devoted largely to a review of the money "Somr)UtAn? the profits upon tho average of
.... i xt v i i t i . i a the capital in the hands of tho banks, treat
situation in New York during the last three ng aml dcp0Blts nlk0( wo havo &0 ,.
months. lowJng:
"The last quarter of tho year 1912," says the AVERAGE PER BANK, TWENTY-FOUR
circular, "proved to bo a period of good earn- BANKS, FIVE YEARS
ings for banks all over tho country. The" move- Capital, surplus, undivided profits
ment of a big crop and tho great activity in and not deposits $40, 845,358
trade have caused heavy demands for bank Net annual oarnings 93G'?5i
.ti . . .. ., ,. , Porcontago 2.00
credits and at the same time there wore drawn
down the reserves belonging to other banks, pro- n9 7nhat t0 ,?y ohoBe bank,8' from a" 80Urcc
ducing tho tightest money situation experienced ?IJ?0; eHiJ p(T c,ent I)Gr, annum uon
here in several years. Our exports have been "iL?1"1!",1 r1hin?l8 or , employment. The
heavy and under ordinary conditions gold might $lJ$$ grlS?? l InMtll0,r han,(l8 wa? M24r
havo been imported to relievo the situation, but fjk-tg f ttf thcr earnings they were
financial conditions in Europe, complicated by ?nI!S?difitw7i. vor their entire volume of
war's alarms, have been oven more delicate than iaffito,d, J 1,nfeach 'oar' always of
here, and when the question of gold importation "le V T' x Morcovor' tho,
was approached earnest representations were VJ?At?L ??!? vWa5 tu,5n0n ,vcr 8Cor?? oC
made to New York bankers against such action. fLS r.UfJh JcliV' ,?f ."T,08 ff?r thoao
"With our enormous crop to market, this ir S'l i" 8fl2 available, but they are
country was directly interested in having no In- ??V SXfi?fi S.wv.h !,nYfk Cl?ar"
dustrlal disturbance caused by tho loss of gold n house and tho total New York clearings dur-
abroad that would check the outward move- SSu"loftfycna, lulu!if!?&eS?QB l ? (1"
ment of our products, and consequently the lpr h S B n nLf iBr5?dwn. ?"
wishes of foreign bankers were respected. It m,0o ml Ynrl L Z inJniiviITS fi?Aa?hili
goes without saying that in the absence of re- eRlS S,nR tn !ZnJuuZ & SSL tTJ
lief by importations of gold money has been at J.0.8' t8 ?ni Thii h?i P?h! ; nf i
times uncomfortably close in New York and a8 A" "fftjff fnlni iSm2 UT
i,4. M.ir. ntA .,ntnn,i i,it , i, sixty-seven times their total volume in a yoar In
wi nroinSfp,? hJ ? fhnSffinnf rS n effecting the payments of the country, which
S? SSi i?v L 5w mnvomni of nfh.r nrn nD fr convenience wore cleared through Now York,
ports and by the slow movement of other crops. A i,nt,. wnv nA,nifi ,.nt i ...i i
This discomfort, however, has in a measure been Vfe' way TStnJi1 oI!
rp. i .v, niinpt, v.i, ,- seem, is first to deduct a fair Interest on tho
nrnJ npPombothnfliH wSl V in bank'8 ow working capital, and then to treat
Pfl "ftS J fflTinHn Knl?nn? tno remainder as compensation for banking
InSfJPni services. .Interest at C per cent upon tho
in Berlin 6 per cent, In Vienna G per cent. Ger- nvnrftn noifi hisn -(- tunan. ,., ..
'Tho banks of the United States have taken calculat1011 Btanu tnus.
care of their customers at moderate rates, com- AVERAGE PER BANK, TWENTY-FOUR
monly in the larger centers at 6 per cent. In BANKS, FIVE YEARS
New York call loans upon stock exchange col- Net deposits $30,930,151
lateral have ranged from 3 to 20 per cent, "but Net annual earnings exclusive of
the number of transactions above 7 per cent interest on working capital 440,841
has been comparatively few." Percentage of profits on net deposits 1.19
The circular then goes into an analysis of the "This Is perhaps tho most accurate and sclen-
earnings and net profits of the twenty-four load- tific calculation that can be made of the net re-
ing national banks of New York city for the five turns derived from all banking services, from
years from 1900 to 1910, Inclusive. In that the point of view of bank shareholders,
time the National City bank had an average in- "Tho simplest and most common method of
vested capital of $50,332,340 and average net calculating profits is by basing them all upon the
deposits of $100,009,400. The average annual total of the bank's own capital, which in this
earning upon capital, surplus, undivided profits case gives tho following results:
end net deposits was 2.37 per cent, tho bank avfraop pt?p hamtt rpwrrvrv nvmn
having made no loans at a higher rate than 0 per Satwb pi v& vSa t?"q U
cent. After deducting 5 per cent per annum banks, mve YEARS
upon its working capital the actual returns on Capital $4,459,107
Its net deposits were 1.58 per cent, but the bank Surplus and undivided profits. . .... 5,450,040
earned 10.2 per cent on an average on its own TTotal workInS capital 9,909,207
working capital. Net annual earnings 930,301
Tho average net earnings of all the national Percentage 9.45
banks of the United States for tho same five "it deserves to be considered in regard to this
years, calculated upon capital and surplus, ap- showing that nearly all of these banks are long
proximateB 9.8 per cent. established institutions. Only one Is less than
Continuing, the circular gives whaf was gen- twenty years old, only two less than thirty years
erally considered in Wall street as a defense of old, four of them are over one hundred years
the banks to offset the evidence before the old, while tho average age of the entire list at
Pujo committee: the close of the period under review is above
"There are several ways of figuring bank sixty years. They are among tho leading and
profits. One Is to base the calculation upon the best known banking institutions of the coun
total working capital belonging to the bank, try's chief commercial city; they have particl
whlch of course Includes tho capital represented pated, like other long established business
by stock, together with that carried In surplus houses, in the wonderful growth of the whole
and undivided profits. Another Is to base them country, and In tho course of years they have
upon all of the funds handled by tho bank, which gained a valuable clientage. In every line of
Includes (with the foregoing-) the net deposits. trade and industry and In every profession there
Still another is first to deduct from the earn- Is recognized value in tne 'good will' of a long
lngs an ordinary and fair interest return upon established and worthily conducted business. It
the bank's own working capital and then t6 com- is a factor in earnings and profits everywhere
pute the remainder as a percentage of profit and may be assumed to count for something in
upon the net deposits. Evidently the amount of the case of these New York banks,
deposits which a bank handles and for which it "Tho figures show that over and above 5 per
is responsible must be considered in making any cent upon their own capital they are able to net
proper calculation of profits, for unless a bank about 1 1-5 per cent per annum upon the de
can make a reasonable profit upon these funds posits intrusted to them. This' calculation of
the shareholders had better put the banks into course includes the profits upon the large volume
liquidation and lend their own capital without of deposits upon which the banks pay no interest,
the risks- and expenses attendant upon banking These profits ate not excessive nor exorbitant."
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