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HomeMy WebLinkAboutThe Seaforth News, 1933-04-06, Page 7• „ . , IuISIAY,AIRRIfL '19331 ' • . • THE' SEAFORTH NEWS. ' egeiTiTaelelieei":" PAGE SEVEN. 1 • tifplic!ate Morithly Statements', ' . 11.1110111111111111111 • • ' We can save you money' on Bill and Charge Forms, standard sizes to fit ledgers, white or colors. It will pay you to see our samples. Also beet quality Metal Hinged, See: tional Post Binders and Index, • The Seaford' News • Phone"84 1 Illleemvan i H1 McInnes ehirOpraCtOir Electra Therapist -- Massage +Office — Commercial Hotel Hours—Mon, and .Thurs, after- noons and by appointment • FOOT • CORRECTION by •marriptilation—Stin-ray treat- ment• , •Phene 227. / 1 ' Founded in 1900 A Canadian Review of Reviews This weekly magazine offers a re- enarkalble selection of articles and car- toons gathered from the latest issues of the leading British and Ametican journals and reviews. It reflects the current thou•ght at both hemispheres and features covering literature and the arts, the progress of science, edu- cation, bhe house ,beautiful, andwo- nien's 'interests, on alt world problems. Beside this it has a department of inancc , investment and insurance, I'ts every page is a window to some fresh vision Its every column is a live -wire contact with lifer • WORLD WIDE is a FORUM Its editors are chairmen, not com- batants. Its articles are selected for • their outstanding merit, illumination and entertaintnent. To sit down tn your own home for a quiet tete a tete with some of the World's best informed and clearest thinkers On subjects of vital interest is the great advantage, week by week, of those who give welcomie to this entertaining magazine. "A magazine of which Canadians may well be proud." 'Literally, 'a feast of reason and, • a flow af soul.'." "Almost every article is worth fil- ing or sharing with a friend," Every one, of the pages af World Wide is 180% interesting to Canadians Issued Weekly 15 ots copY; $3.50 yearly On Trial to NEW subscribers 8 weeks only 35 cts net One Year " $2.00 " ('On trial in Montreal and stebutbs, also in 'U.S. add 'Fe for every week of service. For other foreign countries add 2 cts), • A Wealthy Editor • There was a baniquet in Orangeville one might and many ot the citizens • were telling of the •dpportunities th,e them afforded and how well they had done there. The editor di one of the earliest papers got up to give his tes- timony. "When I came here," he Said, was not worth o.tve cent, ,and ntow. T am weeeh seventy-ili.ve thousand dol - tees." Seeing the incredulous looks on the faces of some of his ,fellow-catizens • lie cto,ntinued: 'An authority has esti- mated that each 'child is wattle, at least five thousand dellia,r,s. I have fifteen children."--,F,ergus News-ded*cord. . Wise mothers who know the vir- +tees of Mother Graves' 'Worm ,EXter- rriinathr always • have it at hand, be- stuse itt praves its ,valtie. • U.S. BANKING SYSTEM AND THE cams. [American ,banking and currency ar- rangements are unique in the degree of camplexity which they reveal: blie result, so 'far .as 'banking is cortcemed, at •the .conetterent legislative authority al the 48 ,States and the Federal Gov- ernment and, as regards currency, of the evevis of the :Civil War period, the subsequent abortive experiments with modified 'bitnetalliem, the • pas- sage of the Cold Standard •Act of 1990 ,and .the ,F et -twat Resenve' Act of 19113. 01 the total Ifive and a half billion dollars of currency in cir.calation at the end of 19312 ,(i.e., outside the vaults of the Treasury and he Re- serve „Banks) almost two biflion con - sited of either actual, silver dollars kiedeti as cartwheels, two kinds of notes issued against silver bullion, to- gebher with the remnants of the Civil War paper money known as Green- ba.elcs. Approximately a billion dol- laIng 'was represented by actual gold coin and certiificates for :geld. The banking stracture can sootily be understood in the light of the consti- tutional position and of historical de- velopment. At •theetime of the iCivil War, in order to provide a Mairket for United [States bands, the Federal Gov- er'ilMetet creabed a unifionm type •coartmeecial [bank +(with, however, . a! limited right df note issue), which was intended to operate in any part of the 'Fe.cleral terribary, In order bo make it advantageous to adhere to the banking sysltem, ,ehe notes Da the 'then existing State commercial banks .(i.e., 'bunks created 'under the laws of ,bhe .variotes, States) were [heav- ily taxed, with the result, as the right Of nate-issue was under these candi- tions important, that for some 'dee- ade$ after the [Civil War the renounces and the number of National ' banks exceeded those •of State banks. This situation gradually ,changed, and af- ler 9893 the number ,af State blanks in- creased much more rapidly, though it was not till 1920 that the reeaurces, lot the -State banks exceeded those of (National !banks. The total number alt banks also cantinued bo expand, and while the ,State hanks proved • to he serious rivals olf the 'National banks, they , themselves were faced ' with grawing conipetitican froui the trust companies, themselves also subject to State leave Ranking in the United IState,s is tints now primarily in the hands of fiye sets of institutions (onle en,e of Which is subject to uniform na- tional legislation), namely—National banks, State commercial banke, .the trust' and loam commanies, the savings ,b,ateles, and the private [banks. (The latter are, trOievever, important only in New Yiark.)' .But mitside these ag- encies there exists a whole series of iiestitutiOns create'd in recent yearn primarily to. subsetwe the .special 'needs of agriculture,' Federal and +joint iStacic Land banks, Intermedi- ate 'Credit institutions, and the likethe ; latest addition to these specialized bodies being the :1-1,aine ,creiatecl by President Hoover's legisla- tion oa Test year. The,increasa in the fotal n tem be • of banks was dtie. to the funclainvital fact; that banks cannot operate tale over the I coun tey. American: hankinfg is dentin- ated :bir the soacealed "unit • bahking prarebeae; anal, islimited to .State and to a locality in [eaelt State. IB'hablell bank - elk is recognized only ,seve,n States\,of the Union, • and national 15171,yin1js'2,°19'oeses o ++,batiles ,poeseie such „rights: Such rights, neareover, are n'ot hailform, and do not •by any means necessarily indply that banks lea[ie the rights to operate even ower the whale 'tereitory Of the State. In order to overcome the eigid- ities thas :fastened on the banking structure by law there has "been, in the last 10 years a rapid growth of so- cailled "geoup" and 4'chain. banks": • s.epatate bankirig entities are centroleed by a single Ladividtial heltlin,g company, and such, groups 'or chains have in certain cases tgrown to considerable size. Rut the ' 'general struatute af .American banking has not bean alterekTprofoundly by any of these develoPments. It must be rec- ognized that, .8111 'legal ,constittetional diffictiaties apart, ,puatio opinion is hostile to any departure from the unit banking principle. All visitors to the States return Impressed with the strength local patriatisms: that the local ,bank cleposits should flow back inte local industries, and that the banker should identify himself with his locality and not be a mere subordinate, responsible to same ina s,titution hundred,s or thousands of miles away, are axioms df banking policy which explain, even if they do not justify, the hostility of the aver- age Amenican to a reshaping of the batelcing structure. Such a streature has, af course, ,gralve defects :from the technical ,point of view, since it • puts serious ab- sbacles in tih,e way of a .praper spread- ing of banking risks. .Befane dealing with such controlling and co-ordinat- ing agencies as exist it inust be point- ed out that these/defects elf structure have been aggravated by the attempt to maintain •equal competitive condi- tions between national and 'State •banks. These attempts have largely taken the form of relaxing the some- what severe restrictions imposed by the National Ranking, 'Code upon na- tional hanks; thus they have bees permitted to lend upon real estate ,because State banks generally 'had shell a ehwer. The only security available in .country districts is • land or the product alt the land,. and over a large part of the •country the spec- ialization of agriculture has involved associating the position of the beaker with the vicissitudes of a single crop. If all crop prices fall, and the ,price of land 'with them, the position of all except the most far-sighted .country bankers must became p.erilous. More- over, Piece the motor -car makes the larger hanks in the town more readily accessible to all, the better elastomers and the better depositors will tend to move away from the smaller banks, because they ane ,the s,maller and weaker. But such a selective process necessarily makes the position in the traditional'eale in ,6,aulleing ,eels,* has +vi6e belonging to 151.[JOhn'a Anglican a been very fgreeit atariWho are again to ,r play' a role fn the present etnerg- gural areas worse. So far as the urban banks go, their position has been affected by the change in the economic position of industry, duning and after the War. The straightforward commercial 'loan has been losing in importance relative- ly to, the qualsii"invesbment" business of the banks: bheir own holdings of securities and their loans to those who wis,hed to hold or speculate in securities have grown' in itriportance. Some of the langest and beet con- ducted banks in the country were de- siroue of profiting from dealiags in, and flotabions af, new securities; hence bhey ,created "Secutity Affili- ates'," Which yielded golden .profits in the period d925-29, but which leave been a cause of weeknes's since, as well as :one of the main causesi'of pablic exasperation with the, banks in recent years. [How was this terrific machine, ex- posed to so many daffereet 1oaal pres- sures, ever held together ? 'The ab- solute magnitude' of the American banking .system is not ,always real- ized. Though the total, number of banks has fallen from 29,000 itt 'De- centher, 19125, to 118,f800 itt Septeni- ber/ 19312, the remaining banks still held 42 billion dollars off deposits at that time. Mr. Gave:ever Lehman, of Nieve York, was obviously' r3ght saying that it was iinpossable to con- vert deposits on this scale into ,cash at a moment's notice: no 'banking sy,etern could stand such a etraire American :banking 13 controlled and, co-ordinated in the following ways:— (1) Through the 'berms ,of legisla- tion (very much mane detailed than in the case o'f British banking la,w); and tIrceugh a ayStetas of inspection by the bank examiners of the States, the 'Federal ,Reserve [System, and, the Comptroller •off the Currency, who is re'sptinsible for the Natioctab basirit, (12) 'Through seifeineposed condi- 110 is ibv ring Illemibtrsh:p of clear- ing bailee aesociations; bodies whose • • '(3) lThrourgil'e thes maintenelnice at legal minimum 'Cash ' reserves, whe- ther ,actually in the, vaults of the banks or the ciariesandent banks itt 'tlhe leading cities, or (in the case of the Federal Reserve System')' at the Reserve !Bank. It is the practice 01 keep,heg large sums with other hanks fat res,erve, clearing, or ingeet- nient purpases, +(the so-called "inter- bank" deposits) which has brought Adult the closing of th,e great New York b,waks—the aet amount due by them to interior banks being in the 'neighbourhood ,alf $1,500,000,000. (4)' "Spreading Of risks" is achiev- ed by (a) inter4l'eank depositing; (lb) Meech:est Of bills and other self-liqu- idating. camen,erdial assets itt. the cen.- teaf markets (primarily N,ew. York); (e) placing funds in the Oall Market l(p,rirriatily 'against Stock Exchange security); (d) attempts Of ,banks itt a given city to Enid customers in atilt n cities (seam:Med "out-olf-tawn cusearners"), 'It is a general fact of banking technique, a fact which kr generations banking reformers in the United States refused to racagnize, that reserve .fundis flow to the Cen- tral Money Market, i. e., 10New Yolk ' City. 'Heine New York is al- ways bound to be the real storm cen- tre in a panic, But reserve funds are available ,only it the 'leanks itt whic,h they are deposited can acquire cash; or- 11 securities and :bills cats be so'ld. To provide these facilities is the true :function in a ,panic of the Central Bank, in the cape af the United States of the Federal Reserve Syatem, bhe name reveals, the reserve system is a •fede,ral and not a unitary structure; the country is divided into 112 districts eachwith its own re- serve • bank and with a •Board at Washinlgton as a supervisory author- ity in matters affecting the system as a whole. Each reserve bank is a legal entity,. but th,e system is necessarily an organic unity irons the econenhic point of view: its operations being carried ottt in common and •banks having the power to assist 011C an- other through inter -reserve beak lending. Access to the system sl - ',elide upon membership, which, is compulsory for national banks and op- tional for State banks—the mem'ber- ehip actually comprises . about one- third of 'the banks, with two-thirds 1 the depo.sits of the country, The system's ability to lend directly to the banks depends on the possession by them of certain kinds of legally defined security: primarily, hankers' acceptances, their cuatamers' eviden- ces 01 in d ebtedn cos, which, when en- dorsed by a member bank, becomes "eligible" for discount, and Gavern- ment securities, which .can be used for securing what is 'virtually a 15 -day loan. The amount the system can lend is govertned by the reserve requirements imposed on the system. Reserve banks mush maintain reserves af 35 per cent. in "lawful tneney" (tot nec- essarily :gold) against their deposits and 40 per cent, in geld against notes, though these minimum requirements can be reduced by the Federal Re- senve Board, The expansive power of the system. is limited less by these requirements than .by the margin o'f "free gold" it ,pos[ses,s'es at any time; the free ,gold being not the excess ot gold actually held over the minimum required to be held (ehe seacalled ex- cess gold") but the excess of gold held over that capable of being re- leased, unless other eligible assets can be provided, lin that respect the (gold drain of last year prayed a blessing in disguise: in order to increase the margin of "free geld" the Glass- Steagaal Act allowed the notes of the reserve banks (these notes, be it add- ed, ane obligations of the ,United States 'Government) to he covered .no: only- by "eligible" paper, but also by Government securities, At the end of Septemlber, 19312, the - member banks 51111 possessed $8,000,000,090 of elig- ible assets against actual, borrowings at reserve .banks of tmo,ocio;000. Ff since that . time conditions have d ee v el o.p ecl disa.steciusly, the fault lies not in blie • exhaestiee of the potent- ial borrowing power of the banks, or the patential lending power of bhe .re- sePVC battles, but itt the spread of hysteria and panic against whichno normal banking safeguards can pos- sibly he •effective. •FLO'RENCE NIGHTINGALE'S EARLY ROMANCE .(Ely Jean. iRitchie Anderson in. The Fairully Herald.) - A roinance 'with a !Canadian set- ting ,ated with !Florence Nightingale as Ithe herabee, has come to light re- cently its ehe 'little town of Elora, 011-' . naive at the "Lives" of the .Panes nurse="the ILady thd Laintp"—tefer to the affair, there is tangible evidence ,of its authenticity, ill 'a beautifel silver Co 11 1011 Ser- 'Church, 'Elora, +which was a parting gift to oae who hedante reetor; ,the II -Levet -end John ISimithurst. The service ea:mists' of three pieces, two large .golblets and a bread •stand, and bears a Latin inebriation w•hiele being, freely' interpreted reads: 'Acting as ,agent or factor ,for someone, [Ebenezer Hall gives as a gift this set of :Communion silver Ito the Rev. Jahn ISenitthurst, a very dear friend, in grateful recognition of his neatly kintineeses,,AJD. 11692," [The "someone" proved to, he Floe- en,te Nightingale. • Mr. Sraitherst was Florence Night- inga'le's cousin, and, 'according to his awn testimony, •bhe two were in love evath each ,ather 'and hoped some day to be married, but 'because IMr. and Mrs. 'Nightintgale ,would never give their consent to the union, he hawed to his sweetheareS request What he give up a bas,ineis career, study +foe the ministry, and came to Canada to help to :Christianize the 'North, ;Amer- ican Itndiane,' The 'family name was really not Nlighltingale, but !SilloTre,' and it' was in. 1819, just a year before Florence was born, that William Shore inherited his mother's +fortune with the provision that he assume 'her iatherts name •cef Nightingale. The legacy includ[eri the seats •ef Embley !Park, Hampshire, and Lea +Hurst, Derbyshire. The man- or of Lea -Hurst was •thely one of the Stately Homes of England," and it was tthere that 1Florence Nightingale spent most of the years olf her 'teen's. There she .and 'John ,Stnithurst learn- ed toelove each ether, and it was at Lea [Hurst that he bade her good-bye When he was leaving England , to take up his missionary duties in Wes- tern Canada, with headquarters at 'Fort [Garry. :Not long afterwards :Miss Nightin- gale began to think seriously of go- ing to the Continent to train for a nurse foe there were no, training schools, in Elm -land •warthy of ,the name. I-Ic parents objected strenu- ously; her mothdr in particular felt that e nurse was no better than a kitthen maid. "My God," wrote Florence in her diary, "what is to become of ma ? In my thirty -,first year, I see nothing de- sirable but death, 'Oh, weary days ! Oh, evenings that never scern to end ! For how many 3,C3i'S have I watched that drawing -room clock and thought it would never reach ten 1 ,And for twenty or thirty years more to have to de this." At last her father began to sym- pathize with her in her. plans' and eventually she was allowed to go, first to 'Kaiserwerth on the Rhine, and then to La Maison de la Provid- ence in Paris. She littl5 given all the advantages that money could buy, and, on the eve of the outbreak of the Crimean War we see her writing under date of January lirst, .1854: "I have never repented or looked hack, not for one moment. An'd I begin the New Year with more true feel- ing of a 'Happy New Year than ever I had in my ltfe." That year found Florence +Nightin- gale better ,pregared then any woman in England to take charge ,of a hos- pital, and on the tvventy-first of ,Oc- tober she sailed for the Black Sea, accompanied by forty-two trained IMITSCs. lIn the meantime, what had become of the Reverend Jahn Smithurst 1 In a little old book entitled, "The 'Rain- bow in the North," published in +Lon- don in 1852, there is an account of the fi est establish,ment of Chris flan- ity in Rupenea Land by the Church Missiortary Society, and there, ane is able ito follow the movements af Miss Nightingale's cousin. On 'the twentieth, of September,' 9839, he arrived at the Indian village at 'Grand Rapids on the Red River, to relieve the 'Reverend :Mr. ;Cock- rane. '"IaVie might here introduce de- tails from Mr. :Smithewst's journal," says the record, "which would enable our readers to realize setnewhat of everyday life an the banks of the Red River. We could tell 01 the can- dles for his use being made on the premises, ,of 'his [corn being threshed on bhe frozen river, of the store at p,rovisions laid in in, autumn for !him- self, his farm servants, and the ,pass- ing stranger; no less a ,quaneity than two thousand pounds of dried buffale meat, and a still larger proportion of beef and mutton, which had to be frozen •befare it was stored up, as it would be eight, months before fresh meat could be again procured." lIn May, 1840, Me 'Smithurst was at Norway House, When he wrote in his diary: "May 4—In heart with friends at leome,—thaught of this time last year. and longed to be among them, but remembered that here is the reality. of the week. There is more in seeing what 'Gad has denc, than in heating abotit it from others. • , May 6.—The meeting, of the ;Bible Society. Here are the poor Indian children, r es ding the very 13 ibles the society supplied them with , twelve • Services We Can Render In the time of need 'PROTECTION is yaur •best friend. • Life Insurance —To protect your LOVED ONES. Auto Insuran,ce— - To protect you against 1.•IA33EJITY • to PUBLIC and their PROPERTY. Fire Insurance— To protect your HOME and ita CONTENTS. Sickness and Accident Insurance— To protect your INCOME Any of the above lines -we can give you in strong and reliable companies. t; interested, call or write, E. C. CHACIBERLAIN INSURANCE AGENCY Phone 334 Seaf orth, Ont months ,ago." On the twenty-second o'i 'June he was at The aPas where "the •velleite in,astee" was welcomed 'by a ,party of Indian children tho,m the 'church school w[ho ran down to meet his boat as it approaclhed ,the adore. Near- ly all the ffaclians were away hunting and fishin,g, but shortly a whole fleet of canoes, carrying about seventy peo- ple, arrived, and the Indians pitched their tents 'beside the dwelling al- ready erectdd for the missionary. Mr. 'Budd, a native Iadian convert :of the Reverend Jahn West, 'himself the first Prateetent clergyman in IRuperes Land, .had been doing good ,wank neang his own people in the district and one of Mr. S'mithurees ,daties was to admit into the Churela 'eighty- seven natives. He married thirteen couples before he left. lin 195.9 Mr. Sinitherst, went home to England, ,sarse think to renew his snit for the hand of Florence Night- ingale. By that time she was well es- tablished in the profession which site was destined to ,place on such a firm foatiag for the noble band of WO - mien who have since chosen her for their patron saint. Site had given up al: idea 1 mar- riage and the disappointed 1.ver re- turned to Canada. F•e• a ah r pct. - tad he lived in lae Tewnshie of Grantham, near St. 'elathar'ecs, On- tario, but before the F. tea year he was established as a; la: tree It was there that he rot:el...al t:.e silver Communion service. AVIen the Crime [e ',V a a:a out in 1854, Mr. S'erae 1 .g; cee- tary fo r \Var. ea [ Niles .Nightingale if ehe utileatIe the organizatigi of a !ageing staff for the hospital at •Scutaria. She vt-rote offering her services just about the same time, and the two letters crossed in the mail. The story of her splendid achievement at that time and of her reception whett she re- turned to England, is well known.° Mr. Sinithurst followed the news- paper reports of her activities with much concern, but kept the secret of his youthful love affair locked ia his o wn breast. Eventually he :bought a farm about two and a half miles east of the pres- ent village of Clifford, and thirty-five mil's from Elora, When buildings were erected and a comfortable home established he named the place Lea Hurst after Nightingale's 'home • in Eivgland. He lead ,many friend's, and it is said that, on winter evenings when congenial spirits would gather with him around his fire of blazing logs, a favorite ,pastime would be listening to the host recounting' his experiences among the Indians, or reading front some olhl classic. The fortunate guests felt the peace which our own Bliss Carman ,knew when he wrote "Aad there when winter comes with ;smouldering dusk, To kindle rosy flames upon the hearth, And hang his starry belt upon the night, One firelit room is large enough for theeeen, Far all we know of wisdom and of love, And the eternal welfare af the heart." !Mr, Smitherst lived on his bush farm for ten years, but when health overtook him he returned to 'Elora to spend his last days with the Reverend C. E. Thomson who had succedd,ed him at St. jo'hn's Church. lDr. A. 1I -I. Paget attended him in his last illness, and he told the doc- tor of his early love. When. Florence Nightingale died in 1910, Dr. page! wrote to a friend, saying: "I had the pleasure of knowing the late Rever- end Iohn, Smithuret, 01 Lea Hurst, Minto; a fine, well educated gentle- man. "He was etigaged to the late Flor- ence Nightiagale, 'I attended hint, with Dr. Clarke, of Guelph, 'during his last iPr.ess." 'Further testimony was gives by M's, James McCiague, whose mar- l -huge to Mr. MciCague was the sec- ond ceremony performed by Mr. Sinitleurst after he came to Elora, The rector was often at her home and he told hes' that he and Florence Nightingale had been engaged,but Shat she had decided never to be (Coetinued on Page ;3.)