the purpose of verifying the data received from other sources and to determine the general conception of the immigrant banker as regards his relation to the public welfare. Many of these informants furnished valuable opinions and information.

In addition to the actual field work as described above, correspondence was undertaken with the various state banking departments for the purpose of ascertaining the legal status of the immigrant banker in each State, as well as for the purpose of making every phase of the study as complete and general as possible.

It should be stated that prior to this investigation the subject of banking as practiced by immigrants had become one for grave consideration in the State of New York, particularly in New York City, where these concerns flourish as they do nowhere else. Careful investigations had been conducted there by both state and federal authorities. The bulk of the time of the present investigation, therefore, was spent in communities outside of New York City, in an effort to determine the nature and extent of the business elsewhere, rather than in the city itself where the methods had been more clearly brought to light. The results of the New York investigations, however, were supplemented and confirmed by additional inquiries.

NUMBER AND DISTRIBUTION OF BANKS.

Investigation has revealed the fact that there are in this country at the present time at least 2,625 concerns doing a so-called immigrant banking business. This total has been arrived at through a partial enumeration by the agents of the Commission, in connection with information received from authoritative sources, such as state bank commissioners and banking houses with which the immigrant concerns correspond, and does not take into consideration the multitude of saloon keepers, etc., who may be holding deposits for safekeeping or even, in a quiet way, receiving money for transmission abroad. The table which follows indicates the approximate number of these concerns in the various States so far as disclosed by the Commission's investigation.

TABLE 2.-Approximate number of immigrant banking concerns disclosed by the Commission's investigation, by States.

From the report of the Commission of Immigration of the State of New York.

In this group are included all States and Territories in which there were known to be one or more, but where there was no definite knowledge of as many as 10, immigrant banks. The number includes Alabama, Alaska, Arizona, Delaware, District of Columbia, Georgia, Kentucky, Louisiana, Montana, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and Wyoming.

It should be clearly understood that the foregoing table does not represent a complete census of immigrant banks. The estimate for each State was based upon evidence of a certain number, with substantially no allowance for the existence of others of which definite information was not at hand. Each State was considered separately, without any attempt at establishing a proportion among them. In the case of New York, the figures of the recent state commission of immigration were accepted, but the estimates in every other case resulted from the present inquiry.

It is seen that there are very few immigrant banks in the South or Southwest, or in the Rocky Mountain and Pacific coast States, the great majority being found in States east of the Mississippi River. In California there are, besides the 15 concerns appearing in the estimate, a number of Japanese banks, but they are, according to the state commissioner, incorporated under the laws of the State, and hence subject to examination and control. There is evidence to support the belief that the large floating immigrant population of the Northwestern States generally maintains relations with banks at eastern distributing centers.

RACES PREDOMINATING AS BANKERS.

The immigrant bank is an institution peculiar to races coming from southern and eastern European countries, which races at the present time constitute the bulk of laborers in almost all great industrial centers where foreign-born workers predominate. Establishments of this nature have not at any time been conducted for immigrants from the United Kingdom and northern and western European countries. These immigrants have more readily adapted themselves to American customs and institutions generally, and when transmitting money abroad do so through ordinary recognized channels. Moreover, the tendency to send their savings abroad is not nearly so marked as among the more recent type of immigrants from the east and south of Europe.

Of the total number of establishments investigated 47 were operated by Italians, 15 by Hebrews, 13 by Poles, 9 by Magyars, 8 by Croatians, 6 by Bulgarians, 5 by Greeks, 4 by Slovaks, 2 by Germans, 2 by Lithuanians, I by Bohemians, 1 by Portuguese, and 3 by corporations and partnerships in which various races were represented.

Of the 110 immigrant banks examined, only 1 did a pure banking business; 29 were operated as steamship and foreign exchange agencies; 72 as banks in connection with some other business; and 8 were saloons, etc., whose proprietors were sending money abroad without maintaining a steamship agency. The remaining 6 out of the total of 116 establishments visited were steamship agencies without a bank in connection.

Of the 86 bankers and steamship agents-including the 6 above mentioned-carrying on some other business in connection, some have one other business, some two, and some three or four. These other lines of business and employments are represented as follows: 24

• In certain large cities and their environs immigrant banks are very numerous. In New York City there are known to be as many as 500, in Pittsburg 50, Chicago 75, in Buffalo 40, in Cleveland 20, and in St. Louis 30.

real estate, rental, insurance and collecting agencies, 40 notarial offices, 13 labor agencies, 11 postal substations, 12 book, jewelry, and foreign novelty stores; 21 saloon keepers, 14 grocers, butchers, and fruit venders, 9 general merchants, 7 wholesalers and importers, 2 barbers, 8 boarding bosses or room renters, 2 printers, 2 pool-room keepers, 1 furniture dealer, 1 undertaker, and 28 with similar financial interests apart from the place where the banking business was conducted.

ORIGIN OF IMMIGRANT BANKS.

The question arises, How have financial functions become confused with other lines of business? The answer is found in the manner in which these banks originate and the character of the men who operate them. Out of the total of 116 establishments examined as representative of existing conditions, 107 were steamship agencies, and of this number all but 6 did an immigrant banking business. In other words, 94 per cent of the concerns engaged in the business of selling steamship tickets were at the same time engaged in the business of immigrant banking. This shows that the relation between the two is so close as to warrant the characterization of them as interdependent. Even the casual observer readily learns to associate the term "immigrant bank" with the poster-bedecked office of the immigrant representative of steamship companies. In the mind of the immigrant the two are almost inseparable. To him the steamship agent is the sole connecting link with the fatherland. As the representative of wellknown lines, he ascribes to the agent a standing and responsibility such as he has no cause to assign to any American institution. Nothing is more natural than that the immigrant should take his savings to the agent and ask that the agent send them home for him. Having made the start, it is natural that he should continue to leave with the agent for safe-keeping his weekly or monthly surplus, so that he may accumulate a sufficient amount for another remittance or for the purpose of buying a steamship ticket to bring his family to this country or for his own return to Europe. It is not long before the agent has a nucleus for a banking business, and his assumption of banking functions quickly follows. The transition is then complete the steamship agent has become an immigrant banker.

CHARACTER OF PROPRIETORS.

The responsibilities imposed upon those who act as bankers for the immigrants are so light as to make the assumption of that important office dependent upon no other qualifications than the wouldbe banker's ability to inspire the confidence of his compatriot, which racial ties render comparatively easy. Numerous instances are at hand where strangers have gone into communities and established themselves as steamship agents and foreign-exchange dealers. Their only qualification was that they were Italians among Italians, or Magyars among Magyars. Even a former evil reputation does not appear to injure their ability to attract patronage. In the course of the investigation, knowledge was gained of two fugitive swindlers, two clerks discharged for dishonesty, and several laborers dismissed for dishonesty or incompetency, who have established themselves successfully as bankers. Hundreds of saloon keepers and grocers act

s bankers without the least fitness or equipment. Although banking functions are more or less forced upon men of this character, and although they may be exercised in a thoroughly honorable way by many, the fact remains that many hundreds of thousands of dollars belonging to immigrant laborers are handled by ignorant, incompetent, or untrustworthy men.

CHARACTER OF PATRONS.

In this connection it is important to bear in mind that the immigrant banker deals almost wholly with the great body of floating alien labor-that is, those of more recent arrival-who constitute a class farthest removed from Americanization, notably unversed in financial matters, easily influenced by racial appeal, and largely dependent upon the leaders of their own nationality. A successful Italian banker, in commenting upon the ignorance and trustfulness of his patrons, pointed out the ease with which he could exploit them should he so desire. According to this informant, it is not uncommon for laborers who have made deposits to lose their receipts, and, forgetting how much is due them, to take without question whatever balance the banker returns. A member of a leading steamship agency in a large city, which acts simply as depositing agent in assisting immigrants to open accounts in responsible banks, testified that should his firm care to solicit or even to receive without solicitation these deposits, it could command at least $200,000, so frequently and insistently are sums tendered for safe-keeping.

WHY THE IMMIGRANT PATRONIZES THE IMMIGRANT BANK.

The question arises, Why has not the immigrant laborer, disliking or fearing to carry his savings around with him, turned to American institutions to satisfy his banking needs, rather than to the less responsible men of his own race? The causes for his failure to do this are threefold: (1) The ignorance and suspicion of the immigrant, (2) the fact that American institutions have not developed the peculiar facilities necessary in the handling of immigrant business, (3) the ability and willingness of the immigrant proprietor to perform for his countrymen necessary services that it would be impossible for them to obtain otherwise.

The great hindrance in securing immigrant patronage for American banks lies in the alien's ignorance of the English language. Inability to read and write, necessitating the transaction of business through an interpreter, combined with a poor comprehension of the checking system and other banking devices, is apt to cause him to prefer the money belt to the bank, the saloon keeper to the trust company. A natural hesitancy to place confidence in strangers of other races is augmented in many cases by a positive suspicion of American institutions. It was said of the Greeks in a certain locality that they stood somewhat in awe of the magnificent proportions and equipment of the modern city bank. An Italian banker said of his countrymen that their suspicions were aroused by the very richness and, to them, extravagance in the equipment of the average American bank. The Austro-Hungarian races show a similar inclination to look with distrust upon local American institutions. A possible ex

planation lies in the fact that these races, largely agricultural in character prior to coming to America, are not accustomed to the extended use of banking facilities, or, if so accustomed, confine their relations to the financial institutions operated by the government in their respective countries. They have learned that the banks of this country are not government institutions, and for that reason look with disfavor upon them.

In any event, it is certain that they are usually suspicious of any attempt on the part of Americans to influence the place or manner of their savings. Not possessed of an intelligent grasp of financial questions, the average immigrant is easily excited in money matters. Perhaps he does not differ essentially from some American depositors in this respect, but he is quicker to accept the assurances of irresponsible persons that his money will at all times and under any conditions be available. This assurance he obtains from the immigrant banker. Thus the man of his own race, be he saloon keeper, grocer, boarding boss, or banker, who agrees to pay on demand at any hour, is more likely to become the custodian of the immigrant's savings than are institutions of unquestioned strength and reliability.

The fact that in many localities immigrants of different nationalities maintain accounts with reputable banking firms may not be regarded as exceptional so much as indicative of a gradual establishment of confidence in such firms, arising from the frequent frauds to which the immigrants have been subjected by their countrymen. At the present time, however, this tendency is perhaps confined to those who are permanently located in the United States or have been in the country for a considerable period of time. It is more or less doubtful whether such relations can ever be established with the large class of floating alien labor in this country. It would seem desirable, but its attainment is dependent largely upon the desire of the local banks to attract immigrant business, and upon their ability to offer the peculiar facilities necessary for obtaining it. In justice to the immigrant it must be stated that in the past neither of these factors has been greatly in evidence. It is true that in recent years there has been a tendency among the banks in the financial districts of St. Louis, Pittsburg, Chicago, Cleveland, and other large cities to establish foreign departments with competent managers and clerks of the various races of recent immigration. In addition to these departments, "neighborhood" and branch banks in sections populated by immigrants have been more or less successful in securing a share of the immigrant business, both as regards remittances abroad and savings accounts. On the whole, however, there has been a decided disposition among American institutions not to solicit the patronage of the alien directly, especially in view of the fact that his deposits are often for temporary safekeeping only, to handle which would require an unwarranted amount of bookkeeping. Ignorance of foreign languages on the part of clerks average savings bank, and unwillingness and inability to extend tient assistance, do not tend to attract immigrant patronage. immigrant depositor the very necessary accommodation of ese conditions, together with the inconvenient hours maintained local banks, prevent any widespread patronage of them on the

of the

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rt of the immigrant.