remained a member of that body for the ensuing fourteen years, serving for eight years as speaker. In 1894 he was elected to the United States Senate, and he was re-elected in 1900, and in 1907. BACON, LEONARD WOOLSEY. An American Congregational clergyman and author, died on May 12, 1907. He was born in New Haven, Conn., on January 1, 1830, graduated at Yale in 1850, and studied theology at Andover and at Yale, where he also took a degree in medicine in 1855. He was ordained in 1856, occupied several Congregational and Presbyterian pastorates; passed the period 1872-77 in Europe, chiefly in Geneva, and was pastor of the Park Congregational Church in Norwich, Conn., in 1878-82, after which he held a pastorate in Philadelphia. He edited Luther's Deutsche Geistliche Lieder (1883), and published Irenics and Polemics, with Sundry Essays in Church History (1898); History of American Christianity (1898), and Story of the Congregationalists (1904). BAGDAD RAILWAY. See TURKEY. BAHAMAS. A chain of twenty inhabited and many uninhabited islands, situated southeast of Florida, and constituting a British colony. The total area is 4404 square miles. The population in 1901 was 53,735, that of the principal islands being as follows: New Providence, the most important, 12,534; Eleuthera, 8733; Andros, 6347; San Salvador, 4658; Long Island, 3562; Abaco, 3314. At the end of 1905 the population was estimated at 58,175. Nassau, on New Providence, is the capital. The cultivation of the sisal fibre is rapidly increasing, its acreage being now about 25,000. The export of sisal in 1906 amounted to 3,867,034 pounds, valued at £40,140, as against 3,040,045 pounds, valued at £37,522, in 1905. The cultivation of pineapples, oranges, tomatoes, and other fruits and vegetables was also on the increase. Other products are sponges, turtle-shell, mahogany, logwood, ebony, tobacco, and cotton. The foreign trade in 1906 was distributed as follows: Exported 126,381 Turkey by the Great Powers, had not been ef- The most significant outrage during the year was the assassination of the Bulgarian Prime Minister, M. Petkoff, (q. v.), at Sophia, on March 11, a most unfortunate loss to his country, which had already lost such leaders as Stamboloff, Beltcheff, and Vulkovitch. Another deplorable matter was the Rumanian peasant insurrection, which began in March and resulted in the most bloody agrarian disturbances, which were only put down after the Rumanian army to the number of 140,000 men had swept over the affected districts, and after the government had promised to carry out efficient agrarian reforms. As an indication of the anarchical conditions in the Peninsula, the statistics of the foreign gendarmerie officers showed that the Greco-Bulgarian conflict was more severe than at any time since the Bulgarian uprising of 1903, and that £16.499 between April 1 and September 30, in a population of 44,000, in the District of Florina 67,895 alone, 135 persons had been killed and 47 £210,775 wounded. For these excesses the Greeks were chiefly to blame. In retaliation, the Bulgarian peasants, who had hitherto been passive, rose in revolt in October, 300 of them taking the village of Negovani, and 500 the village of Rakhovo. Owing to the evasive policy of the Greek Government, this Greco-Bulgarian conflict is apparently not to be ended for some time. On the other hand, it appears that the Turkish districts upon which attempts had been made by the Greek freebooters, have been fairly quiet, since the Porte, in December, answering the request of the Powers that the gendarmerie reforms should be renewed for a period of seven years, has ordered that Hilmi Pasha shall take into his serv ice the prescribed international civil agents and financial advisers. See BULGARIA, GREECE, MONTENEGRO, RUMANIA, SERVIA, and TURKEY. The tonnage entered and cleared in the foreign trade was 1,251,000 tons in 1905. The colony is administered by a governor, in 1907, Sir William Grey-Wilson, assisted by an executive council, a legislative council, and a representative assembly of 29 members. The franchise for the latter is based on a small property qualification. The revenue and expenditure during the year 1905-6 was £77,293 (£64,421 from customs) and £72,192 respectively. The public debt amounted in 1906 to £102,626. BALKAN PENINSULA. A name applied to the easternmost of the three great southern peninsulas of Europe, embracing European Turkey, Bulgaria, Servia, Montenegro, Bosnia, and Herzegovina. Its area is about 175,000 square miles. Events in this medley of nationalities during 1907 resulted in a practical state of civil war, since the reform measures of 1903, imposed upon BAILEY, JOSEPH WELDON. An American legislator, United States senator (Democratic) from Texas, born in Copiah County, Miss., on October 6, 1863. He was admitted to the bar in 1883, removed to Texas in 1885, and settled BAILEY 81 BANKS AND BANKING in Gainesville, which has since been his home. the general election of January, 1906, and Mr. In 1891 he was elected to Congress, and he was Balfour was defeated in Manchester, but was afsuccessively re-elected for the next four terms, terward returned for the city of London. At when (in 1901) he was chosen for the Senate, the annual meeting of the Primrose League, held to which body he was re-elected in 1907. Much in London on May 3, 1907, the ex-Premier abanof Senator Bailey's eloquence has at times been doned his apparently vague views and candidly directed against the great trusts, and he fre- indorsed protection, under the name of "preferquently held up to scorn other politicians ac- ence." He declared that he was convinced that cused of being in the employ of the corporations. some such policy would in the end be adopted Therefore his reputation for good faith in this by his country, and insisted upon the necessity matter suffered considerably when in 1906 and for "speedily translating the sentiment of broth1907 he was publicly accused (although the erhood into practical action," by accepting the charge was not technically proved) of having proffers of Canada and other colonies for prefaccepted large retainers from oil interests in erential tariff schedules within the empire. Mr. his State, presumably allied with the Standard Balfour's writings, which display the naturally Oil Company. See TAXES. skeptical bent of his mind, include, A Defense of Philosophic Doubt (1879); Essays and Addresses (1893); The Foundations of Belief (1895, 1900), and Fiscal Reform (1906). Consult: Alderson, Arthur James Balfour (London, 1903), and McCarthy, British Political Portraits (New York, 1903). It was BAKER, SIR BENJAMIN. A distinguished British civil engineer, died on May 19, 1907. He was born in 1840. The engineering works by which he became most widely known are the Forth bridge, completed in 1890, and the great dam across the Nile at Assuan. Though Baker was associated with Sir John Fowler in planning the Forth bridge, and always gave him full credit for having had an important part in that undertaking, it was he himself who conceived the idea, worked out the skeleton design, and the strain-sheet calculations, and conducted the elaborate investigations to determine the wind pressure on the structure. On the completion of this great work he was made K. C. M. G. Of the Assuan dam (for which he was made K. C. B. upon its completion in 1902), he was also the inspiring genius, though here he had the assistance of Sir William Willcox. chiefly upon his recommendation that the decision was reached in 1907 to raise this structure, so that it will increase the storage supply by nearly two and a half times. He also had an important part in designing the Blackwall tunnel, the great Tower Bridge, in London, and the Metropolitan railway system in that city. He was elected president of the British Institution of Civil Engineers in 1895. He published Long Span Railroad Bridges (1870), setting forth the plan upon which the Forth bridge and six of the largest bridges in the world have been built. BALFOUR, ARTHUR JAMES. An English statesman, born in Scotland on July 25, 1848. He was educated at Eton and Cambridge, in 1878-80 was private secretary to his uncle, the Marquis of Salisbury, Secretary of State for Foreign Affairs, represented Hertford in 1874-85, and Manchester in 1886-1905 in the House of Commons; became Secretary of State for Scotland in 1886, and Chief Secretary for Ireland in 1887. He was First Lord of the Treasury in 1891, and in July, 1902, became Prime Minister, and held this post until December, 1905, when he resigned, and his cabinet was dissolved, chiefly as the result of dissensions in the sometime powerful Unionist party as to the attitude which should be adopted toward the tariff reform policy brought forward in 1903 by Mr. Joseph Chamberlain (q. v.). Mr. Balfour had advocated a professedly half-way policy which was challenged by the free-traders as being identical with Mr. Chamberlain's proposals, and in 1903 the cabinet was reorganized in consequence of the resignation of several members who opposed protection. During the sessions of 1904 and 1905 Mr. Balfour evaded with much adroitness several set attempts to elicit from him a definite statement of his fiscal policy. The Unionists were decisively beaten in BALLOON. See AERONAUTICS. BALLONS SONDES. See METEOROLOGY and AERONAUTICS. BANKHEAD, JOHN HOLLIS. An American political leader, United States senator from Alabama, born at Moscow, Marion (now Latimer) County, Ala., on September 13, 1842. He was educated in the common schools, joined the Confederate Army at the beginning of the Civil War, as a first lieutenant in the Sixteenth Regiment of Alabama Volunteers, served four years, was wounded three times, and advanced to the rank of captain. He represented Marion County in the General Assembly of his State in 1865-67, and in 1880-81, and was in the State Senate in 1876-77. He was elected to Congress from the Sixth District of Alabama, for the successive sessions from 1887 to 1907, and was appointed, on June 17, 1907, United States senator to fill the vacancy caused by the death of Senator John T. Morgan. BANKS AND BANKING. One of the most striking features of banking development in the United States in the past few years has been the concentration of deposits in the larger cities, especially in New York. Mr. Charles A. Conant, writing of this in the Bankers' Magazine for July, 1907, states that previous to 1897 country banks kept only small sums sufficient to meet their exchange obligations on deposit with New York banks. There followed a decade of rapid industrial development checked only by the reaction of 1903. This business expansion was attended by a strong tendency toward the formation of large corporations and the concentration of financial and industrial control at New York. Money was thus drawn to America's financial centre to finance these new undertakings. New York banks found it profitable to pay 1 per cent. or 2 per cent. on the demand deposits of other banks. The national banking law allowing the deposit of one-half to three-fifths of the reserves of national banks with approved correspondents was only partially responsible for this movement of money toward New York. State and private banks and loan and trust companies in all parts of the country sent money East for investment or deposit at interest. The following table, showing the amount of obligations owed by national banks of New York City at different dates to other banks, illustrates this movement: To other To State Banks. Banks. To Trust Total week in which all the New York Clearing-House banks have held full reserves, and frequently half or nearly half have been short. The same tendency prevails throughout the country." So great had been the expansion of bank credit that before the middle of 1906 banks were compelled to limit closely, if not discontinue absolutely, the increase 180,872,313 of long-time loans. Corporations and other busi334,301,223 ness concerns were generally forced to resort to 1901 285,094,297 76,379,527 $115,666,821 477,140,645 short-time loans. These features of the banking 267,800.429 72,116,870 114,648,379 454,565,678 1890 $132,153,883 $48,789,916) 123,230,639 57,641,674] 1896 1903 1905 1907 $180,943,799 290,468,525 83,757,041 199,823,107 574,048,673 This concentration of banking power at financial centres, as illustrated in the foregoing table, was one of the undoubted causes of the remarkable business development of the past decade. That development, however, began to outdistance the new supplies of capital which the banks could command. (See FINANCIAL REVIEW, section October Crisis.) Late in 1906 a number of lead ing bankers called attention to the unusual expansion of banking credits and the serious encroachments being made upon reserve power. In June, 1907, at the meeting of the New York State Bankers' Association President McDougal urged strongly the necessity of retrenchment. He said, "For years banking liabilities have been expanding out of all proportion to the growth of cash reserves. For several years there has not been a situation were closely connected with the heavy and almost continuous liquidation of the latter half of 1906 and all of 1907. They also go far toward the explanation of the money stringency of 1907. (See CURRENCY REFORM.) Following the crash of October a considerable number of banks were compelled to close their doors. The most notable case was that of the Knickerbocker Trust Company of New York City. That the number of failures was not nearly so large as during the crisis of 1893 is shown by the fact that during the last three months of 1907 there were but 18 national bank failures as compared with 160 during the critical days of 1893. A statement of the comptroller at the close of the year indicated that the banking situation was generally sound. GROWTH OF BANKING IN THE UNITED STATES. A table given herewith shows the growth in the number of banks, and in the amount of capital stock and individual deposits for the past six TABLE SHOWING THE GROWTH OF BANKING IN THE UNITED STATES, INCLUDING ISLAND POSSESSIONS1, 1902 TO 1907. 1 That the figures are little changed by including the island possessions is shown by the fact that the total deposits in such islands in 1907 was only $22,304,882. BANKS AND BANKING BANKS AND BANKING CAPITAL, SPECIE, CIRCULATION, ETC., OF THE PRINCIPAL FOREIGN BANKS OF ISSUE FROM LATEST OBTAINABLE REPORTS, 1906-7. (Expressed in millions of dollars.) years as reported by the Comptroller of the Currency. In that table State, savings and private banks and loan and trust companies are grouped together under the heading "State, etc." The statistics for "Non-reporting" banks were partially estimated. The story of the industrial reaction of 1903 is shown in the small decrease in aggregate capital and small increase in aggregate deposits from 1903 to 1904, while the great financial and industrial expansion of the years 1905 to 1907 is shown in an increase of more than $65,000,000 in capital from 1904 to 1905, of $100,000,000 from 1905 to 1906, and of more than $143,000,000 from 1906 to 1907. Likewise the deposits of the last three years, showing an average annual increase of more than one billion dollars, reflect general prosperity. As shown in the percentage columns the national banks have lost slightly in comparison with all others, in the proportion both of capital and of deposits. This was due largely to the fact that both State banks (q. v.) and loan and trust companies (q. v.) have grown relatively more rapidly in these respects than national banks. Thus the proportion of all deposits in State banks rose from 17.5 per cent. in 1900 to 22.5 per cent. in 1906, and 23.4 per cent. in 1907. The number of inhabitants to each bank in the United States was 4897 in 1904, 4182 in 1905, 3956 in 1906 and 3595 in 1907. See articles on NATIONAL, STATE, PRIVATE, SAVINGS, and POSTAL SAVINS BANKS and LOAN AND TRUST COMPANIES. An analysis of the deposits held by all reporting banks in 1907 showed that they were distributed by geographical divisions as follows: New England States, $1,959,276,300; Eastern States, $5,597,125,652; Southern States, $1,008,449,455; Middle Western States, $3,036,877,047; Western States, $607,178,247; Pacific States, $868,423,765; total for continental United States, $13,077,330,466. The total bank resources for the United States, exclusive of the island possessions, was in 1907 more than 19 billions of dollars, or $228.58 per capita, as compared with $214.69 per capita in 1906. The per capita resources was largest in the Eastern States ($438.33) and smallest in the Southern States ($69.32). The greatest per capita resources in any State were in New York ($648.87), while California was second ($532.40) and Rhode Island third ($486.70). A comparison of the banking power of the United States as represented by capital, surplus and undivided profits, deposits and circulation with that of the rest of the world is shown in the following table prepared from the report of the Comptroller of Currency for 1907: FOREIGN BANKS. The condition of principal foreign banks of issue as given in the report of the Comptroller of the Currency for 1907 is shown in table on preceding page. BAPTISTS. A religious denomination so termed since 1644, when the name was applied to certain congregations of English Separatists, who had recently restored the ancient practice of immersion. The founder of the church in the United States was Roger Williams, who established the first body of the church at Providence, R. I., about the middle of the seventeenth century. There are in the United States fourteen divisions of Baptists, but the regular (North, South, and Colored) are distinct only in organization, having no doctrinal differences. These three bodies have a total membership, as reported in the American Baptist Year Book of 1907, of 4,812,653, and constitute by far the largest part of the denomination, which includes in all 5,224,305, ranking third among the religious families in the United States. The various divisions of Baptists, according to the statistics of Dr. H. K. Carroll in the Christian Advocate, are represented as follows: Regular Baptists (North), 1,155,422 communicants, 9525 churches, 7998 ministers; Regular Baptists (South), 1,981,749 communicants, 21,216 churches, and 13,412 ministers; Regular Baptists (Colored), 1,778,824 communicants, 17,721 churches, 12,201 ministers; Six Principle Baptists, 858 communicants, 12 churches, 8 ministers; Seventh Day Baptists, 8509 communicants, 84 churches, and 98 ministers; Free Baptists (q. v), 82,303 communicants, 1409 churches, 1248 ministers; Original Free Will Baptists, 12,000 communicants, 167 churches, 120 ministers; General Baptists, 29,347 communicants, churches, 475 ministers; Separate Baptists, 6479 communicants, 103 churches, 113 ministers; United Baptists, 13,209 communicants, 204 churches, 25 ministers; Baptist Church of Christ, 8254 communicants, 152 churches, 80 ministers; Primitive Baptists, 126,000 communicants, 3530 churches, 2130 ministers; Old TwoSeed-in-the-Spirit-Predestinarian Baptists, 15,851 communicants, 473 churches, 300 ministers; Church of God and Saints of Christ Baptists, 8500 communicants, 93 churches, and 71 ministers. 535 In the Sunday schools of the Regular Baptists there were, in 1907, 2,094,434 scholars and 226,147 officers and teachers. The value of the church property was $109,960,610. There was raised during the year for Foreign Missions $713,951; for Home Missions, $571,995, and for State Missions, $672,410. For education there Capital Surplus, Deposits Circula- Total etc. tion (Millions) (Millions) (Millions) Millions (Mill'ns)] |