after immigration to the United States, became in a short time the local agent of a prominent foreign banker and steamship agent, having offices in New York, Pittsburg, and other points. In a few years he severed his connection with this firm and established a banking house and steamship agency of his own in the foreign section of Community A. He embarked also in several other ventures until he operated, in addition to his bank and steamship agency, a Croatian general store, a butcher shop, a Croatian weekly paper, a hotel and barroom, besides considerable real estate holdings. He became treasurer of a large beneficial society of the United States, and contributed a majority of the funds with which the Servian Greek Orthodox Church was built. In this manner he became the most prominent man in business and religious circles among the Croatians and Servians of the foreign part of the town.

After a time an investigation of his financial condition was started. The investigation showed that large sums of the beneficial society had been embezzled, although he asserted the irregularities were due to his manager, who promptly disappeared. Immediately many depositors in his bank came forward with accusations to the effect that he had embezzled funds intrusted to him to be forwarded to European points, and there was an immediate run on the bank. At present he is under heavy bail awaiting trial, his bail being furnished, it is said, by certain American and other creditors in order to protect their own interests. From the conflicting testimony it is difficult to ascertain to what extent dishonest methods have furnished him with funds in order to acquire his business interests. It is claimed, however, by American and other residents of the town that much of the money he has used in his private enterprises was deposited for exportation to Europe. Aside from the truth or falsity of the accusations concerning his honesty, his case is an interesting one as giving a history of an immigrant business man who, by reason of racial clannishness and religious influence, had been able to gain the confidence of nearly all of his countrymen in this locality, and was fast extending his influence over the Croatians. That his influence is a strong one may be seen in that, despite the fact that he has only recently been in jail, Servians and Croatians still continue to some extent to patronize his bank and steamship agency.

Other instances of the influence of immigrant business men are seen in the cases of a Slovak banker and steamship agent and a Magyar banker and steamship agent. The Magyar has a son associated with him. Less of their history is available than in the case of the Servian. The Slovak started as a blacksmith some twenty years ago, and twelve years ago established a steamship agency and bank. He now has two offices, and in addition to these he is largely interested in distillery and in real-estate holdings. The Magyar has been in business for nearly twenty-five years and at present owns a wellconstructed bank building arranged in American style, a wholesale liquor house in the foreign section, a considerable interest in the largest vaudeville theater in the heart of the American section, and property holdings in saloons and real estate.

There is always a predominant tendency against cooperation among business men of different races, so far as could be ascertained, although no instances of active enmity or rivalry could be discovered. An exception to this general statement should be made in the case of some of the immigrant banks, who have dealings of a business nature with immigrant merchants and others. This is particularly noticeable when the banker speaks the language of other races. The best instance of this situation is the banking firm of the Magyars referred to, a large part of the business of which is done with immigrant business men of the Slovak, German, and Polish races.

Immigrant business men do not associate to any considerable extent with American business men except as depositors in banks whereby they are enabled to maintain a necessary credit for dealing with American jobbers. The case of the Magyar, which is noted above, and of the Slovak are important exceptions. Interviews with American business men have revealed the fact that they are associating with Americans in a business way more and more as their business grows. The Magyar is associated with Americans in owning an important theater property and management, and the Slovak with American capital in a distillery. Welsh, English, and Irish business men are associated with Americans upon terms of equality. The same may also be said of the Germans who live in the American sections of Community A.

Immigrant business men are regarded by natives as a part of the foreign population to which a general attitude of indifference is shown. Their financial standing is measured by the native strictly upon the basis of their cash account in American banks and their real estate holdings, and they may be said to have practically no standing among American business men and in the community in general. Even the two instances of foreign business men (the Magyar and the Slovak) which have been mentioned as illustrating the most advanced types are regarded by the majority of Americans, so far as could be determined, with suspicion. This attitude, however, is not true of the Welsh, English, Irish, and Germans. The business men of these races are on an equal footing with American business men. It is even claimed by some that they have a better standing than natives in many instances.

IMMIGRANT EMPLOYERS.

There is no tendency on the part of the immigrants to become employers in businesses other than small mercantile establishments, saloons, banks, boarding houses, etc. One of the brewing companies has already been referred to as an instance of an industry established by an immigrant (German), but in recent years its control has passed into the hands of Americans. This brewing company first employed Germans exclusively. The opportunity afforded in the steel mills for higher wages has drawn most of the original employees of this class away, and at the present time this company, although now operated by Americans, employs Americans, Slovaks, Poles, Magyars, Russian Jews, and Croatians, in addition to Germans. Immigrants engaged in mercantile and other pursuits employ immigrants of their own race as a general rule.

IMMIGRANT BANKS AND STEAMSHIP AGENCIES.

There are eight steamship agencies in Community A, of which five are in the foreign section. Of these eight agencies, six do a foreign exchange and a banking business. All are private firms and were organized with capital gained through the business enterprises of of their managers.

The total amount of money deposited for all purposes during 1907 by foreigners was between $850,000 and $900,000. Of this sum $350,000 was sent to foreign countries, according to the statements. of the bankers themselves. About $200,000 was kept on deposit, on an average, during the same year, and this amount was redeposited with American banks in Community A. About $120,000 was the average amount of loans made to foreigners by immigrant banks in 1907.

All of the immigrant banks have been started since 1900, with two exceptions. Three of the banks have branches. One has a branch in Punxsutawney, Pa.; one in Philadelphia; and one operates a branch in another part of Community A.

Only one of the banks give their depositors deposit slips. The rest claim to give receipts, but it is probable that many foreigners are too ignorant of the importance of this item to demand receipts. One banker usually gives his depositors a regular bank book, but whether this procedure is followed in all cases it was impossible to determine. It is claimed by immigrants who have had business with these banks that the failure on the part of depositors to get receipts has resulted in two things: First, a denial, in many instances, by the bankers that any deposit has been made; second, a loss of the entire deposit in the case of the death of the depositor. It is stated that there have been instances of men who have started a banking business and who have suddenly disappeared after several thousand dollars had been deposited with them. Two things prevented their arrest: The fact that there is no law in Pennsylvania requiring private immigrant bankers to be bonded; and the fact that the average foreigner is either too ignorant of any law whereby the defaulting banker might be arrested or too afraid of the costs of instituting proceedings, since a general impression among foreigners seems to prevail that legal processes usually result in the loss of more money than they can gain. In two instances where immigrant. bankers were interviewed no satisfaction could be gotten as to the method of receiving deposits.

Deposits are used in two ways by the immigrant bankers-for loans and exportation. Loans are of three kinds; first, on first mortgages of real estate; second, on the private credit of immigrants who are either in business or who need money for a short time; third, deposits are used by the bankers in their own commercial or real estate ventures, the bankers themselves becoming debtors to their banks. In loans on real estate, the usual practice is to advance to the immigrant investor 50 per cent of the purchase value of the property and take a mortgage on the whole. There seems to be no doubt that in the recent depression the bankers have acquired a considerable amount of real estate at a very low figure by foreclosures. Immigrant merchants and others who have borrowed on their pri

vate credit have been able to extend their notes during the depression, a fact which is obviously to the benefit of the banker. On the other hand, at least one banker has become seriously involved by the depression in his own ventures. A Croatian banker has been recently brought up for trial on charges of embezzlement of funds which were deposited with him for transmission to Europe. It was claimed that these funds never reached their destination and, although he was acquitted, the investigation brought to light the fact that the withdrawal of deposits as a consequence of the exodus of immigrants has seriously embarrassed him since he had invested large sums in his own private ventures.

By far the largest amount of loans made on real estate is made to members of those races which have shown the greatest tendency to settle, namely, the Slovaks, Poles, and Magyars. As has already been shown, only about one-fourth of the deposits remain in this country, and probably not more than a half of this is loaned to immigrants. The rest is used as capital for the private enterprises of the bankers or kept in the American banks at a 4 per cent interest rate.

In not a single instance was any interest paid by immigrant bankers on deposits. On the contrary, it is claimed by immigrants, though not admitted by the bankers themselves, that a charge is even often made for the safe-keeping of their money. On the other hand, the American banks of the community give a rate of 4 per cent interest on deposits, so that the mere handling of the deposits of immigrants is a profitable business in itself.

The immigrant bankers all claim to charge 6 per cent on loans made by them to immigrants, but immigrant borrowers have claimed that it is their practice to get as much as they can in the form of illegal interest rates.

The exchange of money is both local and foreign. A uniform rate of 1 per cent is charged. Nearly all of the exchanges are made in cash, since the immigrants are not accustomed to the use of drafts on New York or foreign checks. On the other hand, the sending of money to foreign countries, which constitutes the largest part of the business of the banker, is done through New York agencies. These New York agencies send every week to the immigrant bankers their rates for money exchange. In some instances the New York rates are the rates used in the community, and the only profit that the local foreign banker receives is the commission from the New York agencies, it being claimed that they are forced to this procedure by competition among themselves. In at least one instance, however, a higher rate than the New York rate is charged, the claim being that a uniform rate for certain amounts was fixed, as it was difficult to explain to the customers the reason for the varying New York rates. The usual profit to the local foreign exchange banker is about one-third of 1 per cent.

The immigrant banks have no connection with American banks except as individual depositors in the banks of the town and as agents of the New York money agencies. Very rarely are any drafts presented to them on European banks for reasons already explained. Checks and drafts on American banks are also very rare and no charge is made for collection. In fact, the immigrant bankers are

not given any rating by American banks, and are not regarded as in the banking business according to the American sense of the term. For the same reason, no checks on the immigrant banks themselves are issued. When an immigrant draws out his money he simply calls for it at the window, and his accounts, with the exception of the two instances already noted, are kept by the bankers themselves.

As a general rule, the immigrant bankers claim that the industrial depression of 1907 and 1908 resulted in a shrinkage of their banking business of about 75 per cent. This was due to the fact that the earnings of the immigrants decreased, and to the fact that a large exodus from the community occurred. The loans that they had made to individuals and mercantile firms were not collectible, and the notes were renewed in almost every instance. In some instances the failure to pay interest on the part of their debtors occurred, but no foreclosures took place except in the case of loans on real estate. This information was derived from immigrant citizens, the immigrant bankers in almost every instance denying that they had taken advantage of the depression to foreclose. The exodus of immigrants has not compensated the bankers in their capacity of steamship agents, since they receive a uniform commission of only $2 on each ticket.

The immigrant bankers in their relations with American banks and with Americans in general, and so far as could be discovered with immigrant business men, have been honest. From interviews with immigrant citizens of good standing it was ascertained that some of them at least were in the habit of taking advantage of the ignorant and raw immigrant. The new immigrants are wholly unversed in the American methods of business, and in no instances are depositors in American banks. They seek bankers either of their own nationality or those who speak their language, and are too ignorant of business methods to be able to take care of themselves. This fact renders them the easy prey of the unscrupulous foreign banker. The failure on the part of at least some of the immigrant bankers to use a system of deposit slips, bank books, or receipts would seem to indicate that in many instances the ignorant immigrant is taken advantage of, and this assumption seems to be borne out by the opinion in which the bankers are held by some of the older immigrant residents. In the work of this investigation some of the bankers showed themselves to be particularly suspicious of any inquiries as to the methods used in their business. This was especially evident when questions were asked regarding the use of deposits slips or their equivalent. The largest deposits for transmission abroad were made by those immigrants who send money to their families in Europe. The Italians send the most money, while the Croatians are second, and the Magyars third. The Slovaks and Poles keep their money on deposit the longest, as they save money usually with the intention of buying property. The Magyars rank third in this respect, striking probably an average between the two extremes.

THE IMMIGRANT PRESS.

Three weekly periodicals are published in Community A by immigrants and for circulation among the foreign population. One is