Full text of Commercial and Financial Chronicle : October 18, 1913 : Bankers' Convention Section, Vol. 97, No. 2521

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Bankers' Convention
H"

:

OF THE

(Commercial
Copyrighted in the

year

1913

Vol. 97.

Commercial

mail

Saturday

every

graph

cable

and

various

Chronicle

Railway

its

the

latest

weekly

a

by

news

relating

correspondents

tlie

Sections

added

of

form

which

and

issues.

Industrial

without

The

with

Inter-State

the

without

extra

Section, issued

three

times

fprnished

without

Commission,

Section,

extra

tiled

expenses,

annual

every

City

and

and

Commerce
to

wise

Bank

furnished

without

Chronicle.
The

•

is

admittedly, defective shape.

scriber

to

is

each

also

Besides
to

charge

furnished

subscriber

issued

is

also

of

the

Ten

the

Without

Section,
extra

Commercial

these

issued three

charge

to

approved,

it stood after the vote of the House

as

Representatives,

practical

business

by

includes

like¬

others

are

Chronicle,

within

the

in

postage)

a

WILLIAM

sub¬

published

from

time

a

the

pending

That

placed

measure,

points

United

States, Thirteen

Europe, and Eleven and

B.

INDEX

a

Dollars

DANA

COMPANY,

TO

open to

reason

'V

to-

of

the statute books.

on

defective

in

unusual

on

Publishers

in

important

legislation.

A

pages

115

in.

Currency Bill

now

Convention

Bankers'

appear¬

up

psychological moment.
September.

011

■

October 8,

It had passed, in a very

different form from that which it bore when it

introduced last

June.

modified by the

Banking and Currency Committee.

admirable

Some

provisions, in regard to redemption of

proposed

corporated.

was

Many of the crudities in the
or

•

.new

circulating notes, had been "in¬

More than this, the amendments

pro¬

posed by the extreme radicals and inflationists, in-v
side and outside the House Committee, had been




so,

vote

for the

same

framed to

are

ex¬

in that body;

In

public at large desires legislative.

far

as

as

may

with

a

ac-*

policies;

view to per¬

be possible

in

the lim¬

allowed for deliberation.'

its

important duty is to get the proposed

legislation before the public, in such concrete form

The bill had passed

original draft had been removed

fecting them

will

as

which

Boston

This is

House rules

It formulates bills in line with such

But

be said to have been introduced and approved

the House in

re¬

for practical consideration those questions

ited time

and 116.

pending in "Congress, adopted by
at

Congress.

that the

it discusses and amends them,

regard to the Banking and

the

as

which the

on

BANKING BILL.

resolutions

criticisms, and is usually

political traditions, the House is expected to

bring

THE CONVENTION'S ACTION ON THE

A

many

pedite discussion and the
our

ADVERTISEMENTS

tion Section will be found

the

be

purposes

viewed with great care before its acceptance by the

(which

Half Dollars in

complete index to the advertisements

House

or

most

Bill, after its passage by that body, is ordi¬

are

ing in the present issue of the Bankers' Conven¬

at the

should

nothing

was

narily

tion.

may

bill

the

other House of

Section.

including all the Supplements,

Front, Pine and Depeyster Streets, New York

The

those

among

Chronicle.

>

-

V

even

Banking Bill, with the general

see

year,

annual

Canada.

A

critic

competent

any

man,

loyal to the Administration and'most anxious

House

times

every

Financial

and

Supplements,

for the

Dollars

is

monthly,

subscriber of the

to'every

time, like the present Bankers' Convention
Terms

we

a

month

semi-annually,

every

Section,

extra

Railway

furnished
of

We do not believe

.

Electric

also

Representatives.

subscriber.

issued

charge

Quotation

and

Democratic

done, the bill remained in

was

Chronicle.
The

the

its final shape for

exaggerate in saying that it was not unqualifiedly

sub¬

annual

to- every

by

measure

Section, issued monthly, containing

earnings

charge

State

The

of

returns

the

gave

or

exceedingly

-

extra' charge

then

the vote in the House of

of

Earnings

Railway

sworn

which

caucus,

and

But when all this

number

a

itself

tele¬

to

scriber of the Chronicle.

the

Committee

scope.

the weekly

and

furnished

is

is

Chronicle

with

own

comprises

valuable adjuncts of

The

its

issued* periodically,

Supplements,

year,

morning,

from
within

matters

The

Financial

No. 2521

rejected by overwhelming majorities, first by the

CHRONICLE.

and

80 to 9G pages, published in time for the earliest

newspaper of

18,' 1913.

NEW YORK, OCTOBER

THE
The

Financial Qhrohicle.

&

by William B. Dana Company, in the office of the Librarian of Congress, Washington, D, C.

admit

criticism is
ure,

of

the

searching practical criticism

important public

an

measure

during the period between its

House

and

its

consideration

in

a

passage

open

This

needs.

traditionally attracted to such

meas¬

by the

Senate, and

practical discussion then becomes possible, because
the bill has
one

branch

son

why, in

machinery
subject to
of

received the

now

of

the

our

finishing touches of

legislature.

The

rea-

parliamentary practice, the Senate

moves
no

national

slowly and the Senate debate is

closure

rule,

is

the

recognition

precisely this fact that the time for sober criti¬

cal and

the
le

discriminatory deliberation has arrived.

case

of the

Banking Bill, the danger at

seemed to be that this

In
one

highly^ essential weigh-

ig of arguments for and against the specific

pro¬

visions of the bill would not be assured—either be-

■

112

BANKERS'

CONVENTION.

expert criticism had not made itself heard

cause

with sufficient

authority,

acquiescence in

a

trarily control, the operation of the entire banking

because of the Senate's

or

policy of forcing the Banking Bill

ship of existing national banks in the,

points which

whose proper

on

are

settlement the

the Federal

not yet settled, but

"in time of

emergency, require Federal reserve
banks to rediscount the discounted prime paper of

1

.

The action of the Bankers' Convention has at all

other Federal

guaranteed that the full and practical con-,

events

sideration of the bill will not go by

default.

banks.

reserve

The

be prescribed in the law, not,

stands,

that the criticisms contamed in the resolutions do not embody exclusively

which banks receiving the

proves

of any one group

the views

The free and open

resolutions had

the

the Federal

free scope to

restricted

result of

a

submit their

a

as

ers

opportunity for delegates to

somewhat familiar during recent

effect that the

the

"

were

.

large body of " country bank-

It is well to remember that

port of the
Bankers'

eral

Chicago conference of the American

Boston Convention itself, were

pej

is

Corpmittee

House

This,

elastic

as

well

as a

which

was

adopted

on

a

Bankers' Convention. In

then before Congress.

In

a

were

accepted by the House Committee,
The

provisions of the bill; but they do not insist on a
radical

change in its general principles,, or

its detailed

machinery.

ber of them may
no

num-

character where

between the House Bill and the Bankers

vention

now

raised by

are

resolutions, and these

certain % receive the consideration and

discussion to which they are

u

.

entitled.

One of these
.

is the question

•

111

of representation of practical bank-'

the Federal Reserve Board which supervises,

and which




of

powers

such

to

as

bank's

dangerous

corn-

portion of its

a

Government;

the

Aldrich

attract

subscription.

It main-

by another

paper

power

for

bank

reserve

one
was

national board to

any

Finally,

ex-

as re-

not the

or

machinery of the law would be deranged by the
language describing such notes

issues and ;obli-

as

gations of the national government, the effect of
such declarations
.

necessarily would be to instil false

an(j mischievous economic

we have
sential
ton

notions, and, to play di-

under -certain cifcumstandes can arbiv

.

'

surveyed

very

very

briefly

few of the

a

es-

questions of principle involved in the Bos-

resolutions.

Such

a

review might be extended

much further—for instance, to the highly im-

question whether the proposed system of

portant
twelve

Federal

districts
weakness

of

reserve

and

banks

United

the

in

twelve

separate

States, with the

dependence

on

the

relative

others

which

of those banks might easily incur, ought not

some

points of high importance

the criticism of the bill in the

ers on

Con-

recommendations,^

But four

.

a

of

question of principle is involved in the differ-

ence

are

even

Perhaps the greater

be said to be of

so

rectly into th'e hands of the inflationists.

objections which remain, and which are emin the Boston resolutions, affect essential

bodied

has

It held that to

quite aside from the question whether
;

few particulars

Chicago recommendations

which

of the capital sub-

use

gards the note issue, the Convention believed that,

was ex-

—notably the ratio of reserve to be held by indi.vidual banks—the

the

over

ercise in its unrestricted discretion.

proval, the greater part of the text of the Banking
as

national board

a

such relations, to invest

no

reserve

pressly incorporated, with necessarily implied apBill

banks, the Convention held, should be

on

tained that-the power to require rediscount of

safe currency," but by

August 23, there

argu-

to comprehend,

easy

subscription of the banks,'and made the induce-

of the Chicago conference,

ratified by the

that report, as

The Convention's

national bank, whose existing charter estab-

a

ments

Congress, " for their efforts to give this coun-

try an

defi-

are

plan, for instance, merely offered such stock to the

commending President Wilson, Secretary McAdoo

the form of the report

Convention,

minority of delegates elected by the Fed-

legitimate

proved, not only by the clause in the resolutions

and

Bankers'

capital in stock of the reserve'bank, is beyond the

sweepingly

reform.

on. currency

a-

reserve

lished

uncompromisingly hostile to all the work of

the

<

scribed by individual banks.

Clearing House Associations, nor the resolutions
and

the

sweeping authority

Association's currency commission with

a

held against them

the questions of principle which, since

of

permitted

neither the joint .re-

" obligations of

as

reserve

regarding all of them is

At least

delegates of State Bankers' Associations and.

of the

be established by

may

nitely before the Senate and the country for their
merit

entirely content with the bill as it stood,

on

shall " pay such

notes

as

thoughtful consideration.'

months, to

now

banks of issue," taxable at

reserve

are

the action

only the city institutions opposed it.

and that

the

These

The incident
whple disproves the allegation which has be-

corne

*

*

falls below 40 per cent.

their individual conclusions.

express

*

rising rate when the gold

opinion in the matter—proves that the vote was not

its language

as

the Federal Reserve Board," but

of which, opponents

course

point is

note issues should

" obligations of the United States,"

as

rate of interest

bankers,

or

debate which preceded the Con-

vention's vote—in the
of

of banks

The fourth

raised in the resolution that the

practically unanimous affirmative vote of the 2,400
delegates at Boston

.

The third is embodied .in the objection

to the bill's provision that the Federal Board may,

ing effort at Banking and Currency Reform will
undoubtedly depend.

sys-

banks, be made permissive, not

reserve

mandatory.

of the pend-

success

new

tern, and their subscription to the capital stock of

session, and without regard to the numerous

controverted

The second is the request that member-

system.

through, in the few weeks remaining of the present
extra

,

altered

to be

four

or

so

that the number will not exceed

This, and other equally, practical

five.

questions, require the most careful study- by the

legislators before the experiment: is. tried. .The reassuring
that the
manner,

fact,

no

regard to all these problems,

m

action

the

of

less than its matter—would

have ensured such consideration.
.

•

•

.

x

'

•

is

Convention—its

Bankers'

-

seem

to

113

BANKERS'

RESURRECTION OF

THE

CONVENTION.

AGRICULTURE.

full the unassailable fact that
prosperity must rest on the
firm foundation of the land, the American Bankers'
Association at Boston last week devoted the greater
Recognizing to the
of all true

its

of

a

day to the

discussion of agriculture

and

problems.
It is

able to live on its

agricultural ex¬

because the rich virgin soils of our Western
States practically insured profitable crops with the
minimum expenditure of both capital and labor. In

ports

the acres they

fore had at

least the

often, not the

Of

knowledge to maintain

the land

fertility.

in full
•

tilled by hard working men
worked and who there¬
incentive of the proprietor if,

days the land was

who owned

too

recent

the high prices

years

obtained for

in

products have worked an amazing change
conditions.
Not only have crops fallen off in vol¬
farm

ume

.

one

platitude to say that for many years

a mere

this country was

those

relatively to

population, so that our

leading

his skim milk away, to

agricultural exports, except cotton, are much re¬
duced, but a very large proportion of Our farm
lands are now tilled not by the owners, but by ten¬
as

In too many

sible, i

will lead to

actual, and not merely
relative, decrease in production.
;
Probably agriculture is the only industry in
America in which any large proportion of the pro¬
prietors have retired and left the management of
their holdings to absolute outsiders, for it is one of
the

consequent

peculiarities of this country that almost all our
mien of affairs have continued'in harness

financial returns of their business
paramount interest for them.
Why, then, has this not been the case in agricul¬
ture?
Perhaps the reason is best contained by in¬
ference in the remarks of Dr. George E. Vincent,

long after the.

ceased to have a

when he ;■

president of the University of Minnesota,
told the Bankers' Convention that it was the
establish

a

democracy-of culture in

aim to

Minnesota, a

culture on the farm
that will teach
the farmers' boys and girls to appreciate that the
occupation of farming is held in high esteem. Is it not a grave question, he asked, if we do not
have too many lawyers, too many middlemen, too
many engaged in the professions ?
' ■
He
dealing with the steps his State has taken

democracy that
and in the

will recognize

workshop, a democracy

was

to

offset the dangerous

trend of tenant

farming and

His remarks indicated that in
Minnesota at least one of the most active causes
of agricultural decay has been noted and the only

slipshod husbandry.

possible steps taken to eradicate it.
From time immemorial society has

combined to
look askance at the man who works with his hands,
and when manual labor has been coupled with the

agriculturalist
general attitude toward those engaged in it has
been pity, not unmingled with contempt.
A suc¬
cessful" farmer has never received that jneed of
isolation

the




and restricted"

life of the

to

even

.

,

successful

have

developed

no

Often he has not studied
knowing weed seed
from clover, let alone the appearance of that seed
which may be relied upon to produce abundant
crops.
AAA AAA'
This point was brought out in partial detail by S.'
M. Jordan, the County Agent of Pettis County,
Missouri, in his address before the Bankers' Con¬
vention.
His task is the difficult- one of teaching
the farmer how to farm without antagonizing him.
He told one story to illustrate his. point.
On avisit to a farm whose owner wished to grow al¬
falfa, he found the fields dotted with clover dodder.
The farmer, he said, " did not know what dodder
is and his hired man had never heard of it."

his seed

a

farms, with a

weeds.
little or nothing of
plan whatever for

preserving its fertility.

condition, unregulated, inevitably
the increasing impoverishment of our

Such

leave his orchards a prey to

his fields to noxious

instances he knows

and has

soil

his

chief inpntive must be to get
of the land witiji as little cost as pos¬

much out

insects and

noxious

farmers whose

ant

merchant or manufacturer

cessful banker,

iu the basis

part

which is freely given to the suc¬
and con¬
sequently in too many instances his first idea is to
get away from the farm into the larger world of
the cities.
A /'./'A/AAAA A/A/
Unfortunately for the country, financial success
has come all too easily of recent years to almost any¬
who owned a farm. The rapid growth of pop¬
ulation has provided a ready market at ever in¬
creasing prices and has removed the incentive for
thorough-paced efficiency such as has been de¬
manded more and more in other lines of endeavor.
In the old world the restricted area available for
cultivation, protective laws designed to insure an
ample food supply in time of war and other causes
not operative in this country have contributed to
make farming a scientific business in a way so far
not even dreamed of by the rank" and file here.
It
is not at all uncommon for an American farmer
to run his business without a book, save his check
book, to make butter out of his cream and throw

popular admiration

the extent of

,

.

experience led to an investigation'
by local dealers and Mr. Jordan
much of it was mixed with noxious

This

seed sold
that

of the
found

weeds.

further and was astounded to learn
farmer in three knew the pests by their

Then Jie went

that not

seeds

one

even

their

on

when they were

own

land!

growing in profusion

.

naturally to remove this igno¬
had to the schools where
started a course of instruction which

The next step was
rance

and recourse was

the teachers
has

already had most

beneficial results. " The

chil¬

"will ask for a little clover/seed,
perhaps, and take it to school, and in a few days a
little twelve-year-old girl will bring the sample back
and show papa "the seed of sour-dock, bracted
dren," he said,

plantain, and buck-horn

in his clover, and I believe
have passed every pupil

that before two years more

of age or more
County will be able

twelve years

who is

schools of Pettis

in the rural

to

by their seeds every one of the serious
that are found in these field seeds."
Mr.

teach
ers.

Jordan and his

recognize

weed pests

colleagues were also

able to

could not conceive

of well-

lesson to their local farm¬
land of Pettis County is nearly all well

another valuable
The

drained and the farmers

Chemical tests proved
them wrong, however, and a few of them have been
induced to lime their soil, with excellent results.
Their success will doubtless lead others to follow
their example/. But what a commentary it is on
drained

land being sour.

American farmers

that this lesson

should need to

114

BANKERS'
be

learned

in

the

twentieth

European farmer has
haps a hundred years!
In
per

over

twenty

century!

Why, the

known that much

forty.

years our average

yield of wheat

Our

to the

acre.

corn

crop for the ten years ended
1909 was
one and one-half bushels
per acre less than
for the ten
years ended 1879, and our
yields of oats
and
barley have not only not increased in

actually

v

like the
in

are

some

European
It is
most

anything

ratio

same

we

made in

Mr.

in

start

is

much

the

same

that'

Europe the farms of
large measure by ten-

are

we

to meet the

exceedingly difficult to get his Tease reFurthermore, many of the large landed

as a

the tenants.

tended to

efficiency which

are

unhappily either

restricted in their

or

scope

aids

two

;

non-exis-

in this country.

see

vise

to

increase the number of those
^engaged in
them in better
methods; insist
the. care and improvement of the
soil; in-

us

•

farming; educate
upon
crease

production

of

enlarged and the soil

raised to

fertility."
In

struck

a

a

keynote

as

to

he

so

our

denuded

our

manu•

land

from which the

care

,v

the

niuch less

eggs

a

and

on

some

the

year

but

was

was

one

man

work

at

on

every
*

*

T0.7

acres,

will

only

methods

slovenly is
by his banker and others. The

and

a

source

the

far

as

the

world is concerned, it will

business

for

all

before.

who

are

engaged in it,

When it achieves that status the

will

Then and then
and

our

become

have

only

accomplished

re-

fact.

can we expect to see our farms

farmers take their

ricultural world.

an

rightful place in the

We shall then have created

a

ag-

race

of

scientifically trained men, the equal in culture and
training of any class of men in the country; they will be clothed with the dignity and selfbusiness

\

respect of the old-time British yeoman and armed
with all the weapons
their use.

modern science has forged for
"

'

.




ft
*

■

"

of lasting benefit either to

*

.

\

are

through efficiency to which Dr. Vincent

ferred

manure

there

or

so
a

never

comes

the United Kingdom,
Germany and

properly utilize the
they produced and to carefully till the
fields a vast army of
agriculturalists was continually employed.- In Germany as far back as 1882

farmers

stigma attached to the name of the farmer will have "
been removed and that
democracy of culture which

year

for these animals, to

care

bank

business

France combined had ten cattle to
every thirteen in
this country and this on an area of
less than oneseventh that of the United States.
To

whose

merchant

become

$43,000,000 greater.

Last

body of

borrower.
If
farming, largely
through the attitude of the banks, can* be put on the
same
footing as other industries, the problem will
be in a fair
way to solution.When farming is a

Amer-

On January 1 of this
only 36,030,000, but their value

great

askance

tory, is ne.vef

animal, and. very many farmbuy their meat, butter, milk and
from the nearest village. In 1900 there were

ican farms and
ranges.
there were

study of

manufacturer is
encouraged
supported by the intelligent banker.
An unproductive loan, whether made on land or a fac-

known to

45,500,213 cattle, other than milch cows,

same

and

a. day
seeing a

beef

The

at

awake

on

an absolute fact that
one
may travel for
in certain of the Western
States without

are

honorable profes-

the

must be encouraged.
His efimprovement of his farm must
be supported
by credit and advice in just the same
measure and
in.exactly the. same way as the wide

It is

ers

an

with

intelligent farmer

responsibility of live stock, by which means alone
he could
hope to keep his farm in prime condition,

cow,

become

attended

forts towards the

fertility.-was annually being

removed and to divorce himself
from the

never

is

merchant

looked

the

year

v

through the whole hearted, intelligent, sympathetic
support of others.
The banker particularly is in
a
position to bring this about.
A

for the poor
yield of our farms than has been realized until
lately. The increase in the value of farm
products has been out of all
proportion to the in.creased cost of the

things the farmer buys.
rapid increase had two results. It led
farmer to place
every available acre under
plough and sow the same crop year after

(

.

.largely responsible

This

it

learn to respect
themselves, to respect their calling
and thus win the
respect of their fellow men

forests

our

have

complish something in this direction, but the
by themselves can never solve the whole

factures from the markets of the
world by reason
indifferent quality, is more

of

until

v.;.problem.

likely to shut

methods,

schools

does, Mr. Hill
agricultural decadence,

The haste to
get rich, which
at one time seemed

and

;■

higher degree

often

problem will be

lax

our

the innate

science and business methods which
is
instinctively
given to other occupations. The schools will ac-'

food prod-

our

•

these words,

Farming will

acre;
and, in particular,
of live stock, by which
money

industry diversified,

uct

farm the

see

him

sion

per

promote the raising
can be
made,

the

to

many

ad-

sense

on

Unfortunately,

brought

through. It is an impression fostered
by
farmers themselves. A story was told at last
year's Bankers' Convention of a
preacher who
obeyed his congregation and prayed for
rain, but
he
coupled his petition with a severe
reprimand, /
"
Thou knowest,
oh, Lord, that what they want is
not more
rain, but more sense and more manure."

•

"

policy and business

be

ever

produce exactly the opposite
impression.
It has come to be
believed that
farming is the one
industry in which a man can trust to blind luck to

they have the advantage of free
supervision

can

dignity in labor
solved.

benevolent

problem coupled with the

peo-

whole

sive

and

same

other here ?

While hei did not refer to
any other country, Mr.
James J. Hill must have had these facts in
mind
when he told the
assembled bankers:
Sound economic

»

was

England

pie

tent

v.

said

American
going to do about it? A

newed.

to

■

it

by the

Perhaps the answer is to be found in Dr. Vincent's remarks,
quoted above. If the American

instruction

■

are

realized

ant farmers and
not
by their owners, but it is true
also that the leases
contain provisions which insure
careful
husbandry and that the incapable farmer
finds it

Ihus

;•

many years ago and the results
achieved there still leave
much to be
accomplished.
The drift from the
land, if not the drift to slipshod
methods, still continues across the sea. How

proprietors conduct model farms on which
expenexperiments are conducted for: the benefit of

•

for

care

To their credit be

been

already been

this

made

true that in
tilled in

to

man

many "States by the
Jordan is engaged
in—by the corn '
clubs in which
farmers'sons are
encouraged to cultivate tiny patches
by modern methods and so
"show the old
man," by lectures before farmers'
institutes, by experimental
stations, by bulletins of
.information, by the multifarious work of the
agricultural
colleges and the departments of
agriculture.
But

as

are

there.

are

sort of work

averages.

countries

facts

start has

expected each

*;

have long
bankers.
What

those of other
countries, but
instances, as much as a full third below

perfectly

we

•

they

only from 13.2 bushels to
14.X.
In the same
period, Germany has raised her
output from 24.5 bushels'to
30.1, and Austria from
16.2 to
19.8,; while the United
Kingdom has re-,
mained
stationary at something over thirty-one

bushels

whereas in 1900

for per-

I he

has increased

acre

CONVENTION.

>
•'

•

o

;

.

advertisements

Index to

,''.v;,'

■•yv

Page.
Page.

Y.

Albany, N.

V
First

Bank

National

State National

New York

Fourth

59
59

Corn

Safe Dep. Co.
Md.

Fort

; -

Co., Inc.

Md. . .
Safe Deposit & Trust Co.......
Garrett (Robert) & Sons
Union Bank of

IIardy & Co
Hornblower & .Weeks

42

Lee, Higginson

Hodenpyl,

(Wm.

Leach

(A. B.)

Farmers

Trust & Savings

Birmingham
First

59
59

Co

National Bank

Boston, Mass.

39
26

& Co
Bayne, Ring & Co
..........
Blake Brothers & Co..........
Bonbright (Wm. P.) & Co., Inc.
Baker, Ayling

Bond

Goodwin

&

& Co—

Brothers

Brown

Boston Safe

...............

Deposit & Trust

Co.

First

SI

(Harvey S.) & Co..
Conant, Young & Co......... .. .
Curtis & Sanger. . .\..........
Estabrook & Co.... .

38
36
25
37

Halsey

Co..

& Co., Inc.

Hathaway,
Hornblower

& Co.

Trust Co.

......

Union Bank..

England

Second National

Stark
Stone

Bank.

(N. B.) & Co
& Webster.. ....

Turner,

Tucker &

Co...

14
.V. 33
91
213
;■.....
24

Otis &

Co"

Sweet

(William E.)

Bonbright

Dime

Trust Co..

Franklin

Trust Co............

Nassau

Peoples

Trust

Noble

Security

Trust Co...:...........

•

102
103

Bank

Chattanooga,
First National
Hamilton

.

Bank

Fort

Greene & King. ..../

Ac Co
(Finley) ........
Ring Ac Co.
(A. G.) Ac Oo..........'.

Babrell Ac

Bayni,
Bicker

Bond h

Co.

Goodwin




.

Union

29
68
34
68
68

69
69

Royal Bank of

Bank of Canada ........

Union

,

(J. G.) & Co.,

White

Wood, Gundy

Los

First

,

(N. W.)

Corrigan & Co
Brewer & Co
Michigan Trust Co
Old National

79
82
77
26
80
39

Bank

67
67
67
67

National .Bank

Lie; Higginson

& Co

Havana,
Royal

Bank of

(N. W.). &

Co..........

Co

15

Fidelity &

Columbia Trust Co. .
Bank. . . . . ..

National

Lynn,

60
60

Mass.

40

Trust Co

City, Mexico,

Mexico

Bank of Commerce.v.,

86

Milwaukee, Wis.
First

National

First

Savings &

Bank
Trust Co

66
66

Minneapolis, Minn.
Eastman

First

(Wm. W.)

National

Northwestern

Co

Bank
National Bank.

70
70
71

Mobile, Ala.

5S

Montreal, Canada.
Bank of

Bank of

£8

1/

75
74
17
75
71

Louisville, Ky.

40

Cuba.

Canada.

Bank .......

People's Bank

Hartford, Conn.
Hartford

Angeles, Cal.

(Wm. R.) Co
Torrance, Marshall &

-97

Mich.

Kelsey,

& Co

92
212
93
98

Staats

Canadian

17

& Co

Grand Rapids,

......

National Bank.

Halsey

61

Switzerland.

Howe,

58
58

...

Ltd.

Specie Bank, Ltd

Yokohama

Security

Scotland.

Scotland

Geneva,

100

Ltd

Sothern

Worth, Texas.

National Bank.

1

Smith's

&

London

of

"

Fort Worth

Chicago, 111.
Babcock, Ru«hton

61

97

Bank of Scotland.

Royal

42

Tenn.

National Bank

Allibton,

'

a

Halsey

Camden, N. J.

& Trust.

Col...............

•'

Glasgow,

National Bank

Camden Safe Deposit

Trust Co.

Union Trust

..,...

88
Royal Bank of Scotland. .....
97
Speyer Brothers ..........
.
8
Standard Bank of ,S. Africa, Ltd.
98
Sweet (Edward) & Co.
31

Edinburgh, Scotland.

105
105
105
105

Co,............,

Third National

Co

(H. W.) &

Co., Ltd.

Discount Co.,

Citizens' National

People's State Bank,..........

96
95
84
S3

Ltd..

T7td. ...
Head (Wm. A.) & Co...........
Royal Bank of Canada.....

73
: 72
73
—... 108
& Co...... 49
& Co., Inc.

Bank,

Stock Bank,

(C.)

Meredith

Bank,

& Weeks.

Hornblower

Buffalo, N. Y.
Marine

(Wm. P.)

15

16

& Midland

City

London Joint

108

Savings Bank ............

77

& Co...

Ltd. ...........................

Detroit, Mich.

Brooklyn, N. Y.
Brooklyn

Porter &

.............

94
110
17

(A. B.) & Co..

London

Co..
First National Bank. ...:....,
International Trust Co.
Boettcher.

Ltd.

Co

& Co.

Higginson

National

............

Ltd

& Co.,

Harris, Winthrop

Col.

Denver,

1

(Wm. A.) & Co
.......
Redmond & Co............ ;

Read

Securities Corp..

Farmers' LoAn & Trust

i..; 10S

National Bank

City

38
109

.... • ... •

Bond Co., Ltd. ;

Dominion

Dallas, Texas.

107

Trust Co..........

.. .

Otis & Co.

& Co
...... 216
Leach (A. B.) & Co
16
Lee, Higginson & Co...........
.15
Merrill, Oldham & Co..37
Murray, Mather & Co
.
91
National Shawmut Bank ......
32
New

Bank.

Dominion

Columbus, Ohio.

Kidder, Peabody

National

Dominion

108
10S
108

Otis & Co................

38
17
23
34

>........

.............

Smith, Folds
& Weeks..

International

.

Bank

Col.

Colorado Springs,

99
96
91
89

& China

tralia

Deutsche

Leach

Otis & Co...........

9

86
95
9

Canadian Bank of

60

Bankv
Trust & Savings Co.. . . . .

2

& Co.
Commerce. ..
Capital & Counties Bank, Ltd.
Chandler Bros. & Co.
:
Chartered Bank of India, Aus¬

Brown, Shipley

Halsey

...

..

Transatlantico..

Banco Aleman

.

National

First

(Geo. H.) & Co. . .
Chandler Bros. & Co....—....

Federal Trust

99
96
Bank of British North America
87
Bank of Montreal.....
85
Baring,Brothers & Co., Ltd.... 216
Bonbright (Wm. P.) & Co., Inc.
29
Bank

American

Anglo-South

Cleveland, Ohio,.

<

Burr

Chase

Bank.

Fifth-Third National

66
65
66

London, England.

Cincinnati, Ohio.

36
29
39
2
35

Com..

Co.'.....

S'utherlin &

80
79
^1
79
77
78
Stone & Webster
213
union Trust Co ................
82
Ware & Leland.
82
White. The (J. G.) Companies.
212
Yard, Otis & Taylor
......80

96
96
Co..,.. 110

...,.......

Nat. Bank of

Southwest

44
20

City, Mo.

Trust Co.

Commerce

1^

*

.......

J.

Trust Co
......
National Bank..........
Kansas

& Co
;.
Read ( Wm. A.) & Co ............
Russell, Brewster & Co
Slaughter (A. O.) & Co... ..v*.
State Bank of Chicago..

Transatlantico.

Loan & Trust

•

& Co .....;

First

Powell, Garard

Birmingham, Ala.

.

& Co.

Co.

McCluney &

Bank

...

Morris) & Co....

Imbrie

61
61
60

Commercial

76
30
34.
13
16

AssN

Banking

Hibernian

3
54
55

Trust Co.....,...

Banco Aleman

& Co

Winthrop & Co....,.. .f
Hathaway, Smith, Folds & Co.

Harris,

Berlin, Germany.
Deutsche

Co

(Sanford F.)

Harris

54

Jersey City, N.

17
81
79
77
23

& Co..........

(,N. W.)

Hanciiett Bond

N. J.

Bayonne,
Mechanics

78

Halsey

55

City Bank

National

Trust & Savings
;

Bank

Bank .........'.

union National

37
78

Fort Dearborn

National Bank

Lumberman's

Co...............
Dearborn National Bank.

Estabrook &

(Alex.) & Sons. ........
2
Trust Co........39
Est a brook & Co.....
. ,........
37
Fidelity Trust Co....
53
First National Bank...54
National

97

Houston, Texas.

National Bank

First

S2
81

Co.
Tremble & Co....,......

Devitt,

43

Continental

Williams &

C o mmerci a l
Bank. ......
76
Exchange National Bank
inside Back Cover.

Cutter, May &

Brown

Middendorf,

76

Corporation ....;.........

ing

.

J.

Atlantic City, N.

Baltimore,

Bank .................

tional

Shanghai Bank¬

&

Kong

Hong

1 •

Trust & Savings

Bank .......
National Bank..

Trust &

81

Continental &

National

Atlantic

(Geo. II.) & Co...........
& Commercial Na-

Continental

Atlanta, Ga.

V
Atlanta

Burr

102
Bank 103

..........

Page.

China.

Hong Kong,

80

Co., Ltd

&

Breitung

Browne

British North

America

Montreal.
(W.

Graham) & Co...

87
85
69

116

INDEX TO

ADVERTISEMENTS-Continued

Page.

Dominion Bond Co., Ltd
Dominion Securities
Corp., Ltd.
Merchants Bank of Canada...
Meredith (C.) & Co., Ltd.
Molsons Bank

89

....

90

(N. B.)

Royal Bank

91

91

.88

New

Morristown, N. J.

York Trust

58

Remington Typewriter
Co.....
Rogers (Geo.
Rust) ......

Redmond

Fourth & First National Bank

Co.

New

&

210

...

Bank

43

Orleans, La.
G2
•

62

...............

Seaboard

National

New York City.

s

American Exchange Nat. Bank
Anglo-South American Bank..

22
99

Babcock, Rusiiton & Co........
Bank

Bank

,

Manhattan

of

Montreal.

of

Barney

28

,."

.

85
;

Co.......

D.) & Co......
( Finley) & Co........

Bayne, Ring & Co
Bertron, Griscom

& Co......

12

(A. II.) & Co......
Blake Bros. & Co...............
jBonbright (Wm. P.) & Co., Inc.

29

8

213
108

39
SO

!...

21

Brooklyn Trust Co
&

105
Co...

(Geo. H.) & Co..
Canadian Bank "of Commerce..
Bros.

Chartered

&

Bank

Co

9

Chase National Bank.

National

104

.

Bank.v...

"4

Clark, Dodge •& Co.............

5

Coal &

Iron National Bank.

N.j

Coler (W.

26

..

21

,29

Farlee (J. S.) & Co.
Farmers' Loan & Trust Co
Fidelity Trust Co. .......'...'..
Fisk (IIarvey) & Sons.
..*..
.,

Gilbert, Clinton
IIALSEY

...

IIodenpyl, Hardy & Co....
ing

Kong

&

Shanghai

Hudson Trust Co.

...

( Wm. .Morris)

>.

13

& Co.

..

Lawrence

(Effingham)

.

coady

107
16

15

Bank

104

Co......

Bros.

&

Mont¬
4S

Maitland, Coppell & Co
Market & Fulton Nat. Bank.

100
..

McCluney & Co

SO

McMillin, Emerson & Co.
&

Merchants'

30

.

Co..
Bank

27

IS
of

Canada

..

Middendorf, Williams & Co., Inc.




90
54

Hathaway, Smith,

23

81

Folds & Co.

McCluney & Co.

56

SO

Mechanics-American

Nat. Bank
Trust

Valley

63

Co..,

1Inside Front Cover.
National Bank of
Commerce.

70

64

...

St. Paul, Minn.

Magraw

92

..........

Paris, France.
Bertron, Griscom

& Co......
Farmers' Loan & Trust
Co.
Harris, Wintiirop & Co.....

...

12

;..

110

American National
Bank.
of British
North America
Canadian Bank of
Commerce..
.....

7-7

.

(Wm. R.).
.

Halsey (N. W.) & Co
Staats (Wm.
It.) Co..

Co.......

10

Philadelphia,
(C.

...

44

...

44

...

44

Torrance, Marshall & Co....'..

71

24
26

Co.

Biddle (Thos.
A.) & Co.
Bodine, Sons & Co...

Seattle, Wash.

Canadian Bank

of

Commerce.

50
.

51

.

Bonbrigiit (Wm.
P.) & Co. Inc.
Brown Brothers &
Co...... .•..
Burr (Geo.
II.) & Co
Chandler Bros. &
Co..........
Corn Exchange
National Bank.

Crasip, Mitchell & Co
Devitt, Tremble & Co.

29
2
81
9

49
a

First National
Bank
Fourth Street
National Bank..
Franklin National Bank

51;
81,

.48

Commercial National
Bank....

211

.;....

of

Toronto..

Canadian Bank
Dominion Bank

of

93

Commerce..

86
91

Dominion Bond Co., Ltd.
Dominion Securities

89

.....

Cokp., Ltd.

Imperial Bank of Canada.
Metropolitan Bank

94
94

......

93

Murray, Mather k C6
Wood, Gundy & Co.............
.....

.

.

91

...

93

-

Trenton, N. J.
Trenton Banking
Co...........

42

.........

Harper & Turner.

Co..........

17

Lybrand,

Boss

Bros.

&

.

Mont¬

48

Market Street National
Bank.

Pennsylvania
ances

on

Co.

for

23

16

52

Philadelphia National Bank
Philadelphia Trust, Safe Dep.
& Insurance Co

57

Biggs National Bank.

56

56

Winnipeg, Canada.
Union

Bank

of

Co.............

SO

Canada.........

92

Worcester, Mass.
Lee, Higginson & Co

52

Read

General

101

C.

Commercial National Bank
Plant (A. G.) & Co...

47

..

(Wm. A.) & Co........
Real Estate Trust
Co.
Securities Corporation

Washington, D.

Dominion Bond

Insur¬

,

Utica Trust & Deposit
Co

48

Lives

V

Utica, N. Y.

50

Hathaway, Smith, Folds & Co.
Leach (A. B.) & Co

15

Merchants National Bank

40

'

1

45

■

.

9 '

103

Toronto, Canada.
Bank

46

Girard National Bank
211
Girard Trust Co.
Inside Front Cover.
IIalsey (N. W.) &

40

....

Syracuse, N. Y.

12

.

86

.

Springfield, Mass.
Springfield National Bank.

Pa.

D.) ,& Co..........
&

17
75

■

National Bank. .v...
Paterson National Bank
Second National Bank.....

87
86

..........

Paterson, N. J.

First

;

71

Francisco, Cal.

Bank

Pasadena, Cal.
Staats,

(F. E.)
San

-

gomery

gomery

Megargel

104

216
31

& Co..

(A. B.) & Co
Lee, IIigginson & Co

Ross

^ 97

104

Leach

Lybrand,

23

.'

<

&

Trust

"77

34

LaMARCIIE

National

17

.........

(It. J.) & Co.....".."..
Kidder, Peabody & Co.

Lincoln

27

't .30

Kimball

Lincoln

Ottawa

Bayne, Ring & Co.
Bertron, Griscom

Bank¬

Corporation,. '............

Hornblower & Weeks.
Imbrie

of

30

55

(N. W.) & CO
...
Winthrop & Co.......

Harris,
Hathaway, Smith, Folds & Co..
IIong

Bank

Barney

.6

65
65

..

37

110

26

Bowman (D.
Arthur) & Co...
Burr (Geo.
II.) & Co.,.........

Ottawa, Ont.

25

.........

57

.

& Co

■

...

Tr. Co.

Converse (A. D.) & Co.......
Curtis & Sanger.
Estabrook & Co..

25

..;,..,,

Columbia-Knickerbocker

Bayne, Ring

56

...

57

Boatmen's Bank.

98

"

.

& Co...

57

St.. Louis, Mo*

Omaha, Neb.

211

Chatham-Phenix Natl. Bank.
Chemical

99

National Bank.
Old Dominion
Trust Co..,...;.

Mississippi

.

of

India, Aus¬
& China.......

tralia

.

86

41

25

Norfolk, Va.

81

A..'..

Co.

Williams (John L.) & Sons.

24

...

73

R. I.

First

22

National Bank of
Commerce..
Norfolk National Bank, i

2

Burr

Chandler

24

1

Omaha National Bank.

42

Richmond, Va.

28

..

.......

10

Rhode Island Hospital
Tr.

31

107

1

29

107

Industrial Trust
Co........
41
Lee, Higginson &
Co...........
15
Merchants' National Bank.
...; 41
Miller (Albert
P., Jr.)..,
41

91

36

.............

Breitung & Co., Ltd
Broadway Trust Co..

Providence,

Companies. 212
Ltd

106
107

Portland, Ore.

98

.

& Co

Specie Bank,

26

Bickmore

Brown Brothers

Yokohama

106
106

Ladd & Tilton
Bank.

51

United States Mtge. &
Trust Co.
United States Trust Co
Washington Trust Co

24

50

Plainfield, N. J.

9

Turner, Tucker & Co
Union Exchange National
Bank

Winslow, Lanier

49

Plainfield Trust Co.

20

Co.....1..
(Edward) & Co.........
Taylor (II. P.) &
Co.....

.White, The (J. G.)

,.

79

Bank.

Standard Bank S.
Africa, Ltd.
(N. B.) & Co......
Stone & Webster
Stephens (T. W.) &

77,

Co.

Bond & Goodwin.,

People's National Bank...
Taylor (H. P.) & Co
Union Trust
Co...........

31

Stark

11

.

(Chas.

Barbell

,

87

Co.....;.

.Bankers Trust Co

v

82

British North America

of

31

Corporation, Gen

Smith (Edward
B.)
Speyer & Co...

49

.....

88

.

Bank

Masten (A. E.) & Co.......

27

..

) Securities

51

..

215

Sweet

■■%/...

7

14

...........

Royal Bank of
Canada.

43

..

...

Bank

Ballard & McConnel.
Columbia National Bank.;

1

Sciiafer Bros
.

Whitney-Central Nat. Bank.
wiiitney-Central Trust & Savings

Co.....£>

..

Pittsburgh, Pa.

19

26

......

^

;

28

.....

Newark, N. J.

National

&

Russell, Brewster

Essex Co, National Bank

Fidelity Trust

30

Co...........

Orvis Brothers & Co.
Read (Wm. A.) & Co

Nashville, Tenn.

Union

....

43

Morristown Trust Co..........

(Edward B.) & Co..
(William E.) & Co..

Union National Bank.
Westling, Emmett & Co.,.

28

.

Canada

Page.

Smith
Sweet

91

National Nassau
Bank.........
National Reserve Bank
........
New York County Nat.
Bank.
New York Life Ins. &
Trust Co.

92

& Co

of

Page.
& Co
Outside Back Cover

(J. P.)

Murray, Mather & Co.
Muller, Schall & Co

84

......

(The) ..;.......
Nesbitt, Thomson & Co........

Stark

Morgan

94

.

.

.

w

'

Yokohama, Japan.
Yokohama Specie

Bank, Ltd.

.

..

98

Bankers' Association

American

Convention, Held at

39th Annual

CONVENTION

TO

INDEX

U* S., James J. Hill - ' .
Education for National Efficiency, George E. Vincent
The County Agent, S. M. Jordan -

Agriculture in the

Commission

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Committee
of Standing Protective Committee

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Report of Currency
Annual Report

of Secretary

Report of Treasurer

Executive Council
General Counsel

Report ot
Report of

Report of Law
Report

Boston, October 6,

Page \M
Page 121
Page 123
Page 126
Page 127
Page 129
Page 130
Page 131
Page 131
Page 136

of Lading Committee
Committee on Constitution
Committee on Fidelity Bonds and Insurance -

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and Reference Department -

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Report of

Report of Library

buys

banker

and sells

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President Reynold's Address
Memorial to Charles H» Huttig
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Page 142
Page 144

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Page-158

Bankers'Association on Agriculture

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Acting

Agricultural Committee

Report of
State

Bankers

Action of Country

in

the statistics of our foreign
by many who cannot read
exports of the

-

$468,000,000
about

$1,187,000,000;.foodstuffs, which were
$502,000,000 in . 1913.
bulletin of the Department, commenting on

But, says a

this showing,
tion

to

$510,000,000 in 1903, were

in

while."

Fresh

000,000 pounds
from

in values indicates a reduc¬
the advance in prices mean-"
beef exports fell from 255,000,000 to 7,; and all meat products outside of cattle

" this equality

quantity, in view of

$176,000,000 to about

material, its finished

plants a greatly expanded
established. Governments have not
yet freed themselves from the delusion that tips is the
cornerstone of wealth production and the main prop of
financial institutions.
But those who carefully investi¬

credit

system was.

whole know better. One
established in the minds of

gate the question as a
is now

pretty well

men—that

agriculture,

wealth except the
the sea,
care

of

the forest

as

true law
thinking

the ultimate source

of all

portion drawn from
and the mine, should be the especial

relatively smaller

those interested

in maintaining a

credit system

has
As¬
sociations and by the American Bankers' Association.
A sharp and continuous campaign should
be waged
along this line, because the course of national develop¬
ment, as directed by national economic policies, follows
curve that moves toward future disaster.
No country
yet put all its eggs into one basket by fostering per¬
manently one form of industry at the expense of others,
and escaped the penalty.
Whither we are moving ap¬

at once

been

Within recent years this
formally by various State Bankers'

ample and sound.

recognized

a

ever




,

into

of these

mouths to be fed increases pro¬
gressively.
We occupy our workers more and more in
supplying with manufactured goods, under artificial
stimulus, the markets of the outside world; markets
from which we may at any time be partially excluded
by foreign legislation over which we have no control,
by competition, by changes in the wage rate, by inter¬
national disturbances.
We have to feed all the workers
in 'these industries;
Hence our exports of food prod¬
ucts decline.
In a few years we may be buying food
abroad.
The cost of living rises clay by day.
The very
industrial features over which we boast are bound to
make it higher.
After all that has been spoken and
written about conservation, one should not need to point
out the economic short-sightedness of exhausting our
natural supply of valuable resources whose total is lim¬
ited by nature and cannot be replaced.
That means
future scarcity and industrial decline.
Of our great
export total for 1913, almost exactly one-fourth con¬
sisted of manufactures of iron and steel, mineral oil,
coal, and copper and its manufactures.
All of these

figures.

and its immense

products

$150,000,000. Translated
• "

pounds,.the deficit would be much greater.
Now it is not difficult to interpret the lessons
.

and on Its raw

trade, jubilantly
in the imposing

meaning.
.
■
United States in the last fiscal
year were $2,46(1,000,000, having almost doubled in the
last ten years.
If this increase is well distributed, it
becomes matter for congratulation.
What is the fact?
According to the official report of the Department of
Commerce,
manufacturers' materials increased from
$400,000,000 to $731,000,000; manufactured articles from
The total

tangible form

of fortune;

Page 159
Page 167

real sinister

figures their
•

-

.

announced

readily convertible .into cred¬
its.
In the Merchant of Venice, credit hangs the issues
of life and death on the safe arrival of a merchant ship.
The great sea routes of the world sustained .the banking
institutions' that rose and .flourished at its principal
ports.
* '
• ; V';y
• v
In the modern era manufacturing became the main
source

-

-

United

pears

credit.

-

I ILL.

J A mls J.

-

in a

Page 141

-

on

wealth

of Proceedings

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Page 137
Page 138
Page 139
Page 140

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Detailed Report

Credit is based
wealth and character.
Will a man be able to pay,
and will he be willing to pay at the maturity of his
obligation, are the two questions on whose answer de¬
pends the grant or the refusal of credit.
It follows that
the banker is more closely concerned than the man in
almost any other occupation with the processes and
prospects of wealth production.
When
communication between countries was slow,
difficult and beset with chances of loss, credit concerned
itself mostly with' commerce:
Costly cargoes drawn
from distant sources required financing, and represented
The

PROCEEDINGS

Report of Bills

Agriculture in the
1>Y

7, 8 and 9, 1913

The number of

118

come

BANKERS'

under

the

haustion of
nomic

idea, that

Our
last

ore

we

cheap

drain.

ingenuity
to

depend

transportation.
the rate of

and

processes

raise the cost of steel

deposits of iron
tlieir

world's

from
markets

where

uct into

could

our

or

hereafter
iron

own

would

be

buying

and

steel

Hons

ter

are

over

not

abroad.

This

dumping

What,

ends.

but

participate; and,

settling time?

tion

the

we

natural

wealth

and

the

demands

of

civilization

Sound

a

condi-

was

increase

educate
and

the

them

number

in

and,

stock by

in

those

engaged

better, methods;

improvement

acre;

of

of

the

particular,

soil;

insist

in

which money can be
made, industry

change'by
wise

to

he

helps to build

In*

our

much

of

a

not

and

overlooks

We

with

balance

the

trade

are

or

The rise

for

of

ten

our

1913,

as

little
was

to

its

in

now

in

refuse
and

ours

or

to

within

was

The

per

a

But

we

we

the

might

instead

total of that trade

In

cent.

the

For

ten

the

$131,000,000

this rate it is

a

become

better to-day.

single

last

year,

per

our

000.000.

Of

It

exports to

all

the

If the

pretty

of

equaling

those

to

making

other

total




Canada

whole

most

a

its

subject

entire

not

of

difti-

in

us

of growth

proper

of

a

the

of

to

rency

and

come

to

relates

and
can

its
it

and

crosses

passport

or

urging to do

to

unite

more

countries
great

which

factors,

co-

independent

continent

and

be

to

far

so

nation is

a

commercial

the

lesson

a

relations

looked upon from

a

seem

that

national

we

is

less

of

lag
cur-

the law-

on

the

with
a

still

system

that depends

as

monetary system

wonder

be

intelligent

of

has

country

so

for

germane

to

months

this

upon

possible
that

difficult

banker, the

a

will.

The

national

power

has

most

to

application

and

such

moved,

enough
business

the

I

to

will
am

members

of

it

helpfully in
call

man

for

and

at

be

may

with

at

affairs
as

may

and

cur-

be

made

inspired solely by

sure,

this

Association

throughout;
a

of.

those

times

banking
as

spirit

system

practical

Such criticism

suggestions

improvement,
has

a

subject

Even

are

to

dpiii-

difficult

deal.

this

criticism.

monetary

daily business

principles.

co-operate

tinpished from

good

the plan presented for

individual
to

to

best

and

No

and

This will be
given in

and

their

past.

time

express its

always been, the

the

men

change it has been be-

the

relation

finance

make

changes,

the

a

no

its own

agriculture to
our

Our

whose

practise

two

this

under¬

business

these

way and

if

law-making

make

loss

care

'

of

helpfulness

the

be offered

-

is

are a

power

of

to

as

own

development

of its abstract
general

world, to. $653,-

contributed $294,688,000.

trade
us

desirable customer

need

you

your

and to offer its
advice.

who

we

our

valuable trade to

abroad and the
despair of
A definite
proposal to

congress

of desire

amounts, for the

It

this

together,

men

home.

fore

spirit

which

in

that

interests

banking, in

intelligent
at

the

that

our

within

learned,

power.

question of only a few
years when Canour
best customer.
We have but
one

in

be

ajl that

rency and

which

came

England.

in

its

1913

is

to.,

difficult to discover
who,

parochial point of
view, it would

behind

for

trade for

not

with

against

coffee.

having to produce

sure

Canada have lately

cent.

coun-

am

importance

At

of

most

out,

balance

for

pay

shorter

a

North and South

Canada
a

things

the

well

as

They

us

amounts

men.

business

for

remains,

other

Hemisphere combined.

all

" progress of the
world.

year

to

ship-

approaching

the amount and
rapidity

herself presents

in

amounting

ship-

the

that

may

banking

$67,-

pistribute the balance
soi rejoice.

.

of

the

own

to

operating, each

: ion

1003

years

1912, it increased 22.3

Canada

In

the

that

meeting.
It has had the benefit of
study
This Association should not
hesitate to

commanding

our

good
viola-

a

Between the bankers of
the United
those of Canada
there now exists

the

nature

be

directions.

nearly $536,000,000.

to

relations,

duty. I

a

closely

showing

toward" the north

Canada to

shows

to

of our trade
with

what

see

leave

we

lines without

whatever

were

the Western

will

pay

in-

southward,

that

burden,

sphere,

understand

those

importance

whose

almost neck

those

If

remainder

consider only

/political

the value

the

many

an

.

to

on

The keynote of

•

standing fostered by,the conduct
principles are universal, and

that

$83,000,000 more than those
to Gerand three times those to
France.
They were

000,000 greater than

ada

to

risen

Wp exult in

$178,000,000.
200

oyer

are

ventures

with

compared with

$415,250,000,

of

we

fifteen years.

trade

over

total, exports

many

tries

we

striking phenomenon.

last fiscal year

has

look eastward

looked

or

a

Our

new

had

we

for"the

increase

give

the fact that

higgle and

it

was

time

exceeding $650,000,000.

Our eyes

and

if

in

exported

trade

eager

during the last

a

same

and to

undervalues-what

advantages already

enjoy

place is

the

what

declare to be

of trade last
year with

the

States and

wherever

though "secondary, is of
country, the general public still

the

Great Britain.
of

squabble

now

at

was

canal tolls

canal is the

for all business

per

live

diversified,

credits

declines

explanation, few

trade, to free it from
every unecescultivate the most cordial
relations with
the people who
furnish it. these

care

of

and-consistent future.

We exult

analyze.

we

interests

remitting

Canada.

To maintain

by conditioning loans

the country

up

domestic products

do

all

sary

foreign trade which,

and neck

-

own

firm

a

prime factor.

of

agricultural

and especially

importance to

mostly
a

of

in commercial

right farming methods, lie will
strengthen

safeguard his

dustrial fabric
,

granting

do so,

upon the use of

and

if

us

food product
enlarged and the soil raised to a
higher
degree of fertility.
In so far as the banker can
assist
this
it is

reason

common sense,

$110,000,000,-mainly

farming;

raising

our

courteous

to-day.

production

promote, the

as

cult to decide what is
the
the Western World.
It is

impose

advise

upon

increase

her

deciding

$183,860,000.

with

our

America,

exposition

discriminating especially against

on

sense

to

South

America, including Cuba and the
West Indies,
hemisphere from Greenland to
Cape Horn put

Would it not be bet-

all countries and on-all
people?
economic policy and business

of

international

country of Canada

under

Well,

quit boosting these interests and
hurrahing
orer the rise in
exports, while we try to
rearrange our
industrial system on the basis
which the distribution of

eventually

so

Our <halance

•

to

us

and

coast

an

the countries of the
south to which it
oifers
and quicker route.

people

pay

the
well

as

opening of the

manufactures

can

that

ping, trade

We may

on

The mother

of treaty
by

ping

pre-

then, will support

With what

doubt

lawyers,

foreign prod-

any tariff that the

bread

per

>

preparing

opening of this great
waterway between

the oceans.

treas-

our

is

Pig

will

in

Francisco

to celebrate the

known and

are

the

San

Since the

prosperity founded

obviously temporary?

for

ores.

countries

admit

be

expen-

of production will

now

only

a

more

ton.

per

other

it will

a

it will

iron.

We lose at both

top-heavy industry, and
debts at that future

use

of

cent,,

with

markets

nearness

such

cent.

per

Almost one-half of the
net receipts of
States from its
commerce with other nations
comes
fjjpm this one country.
We spare no trouble or
expense" to drum
up trade with the countries
to
the
south of us.
We have
spent a great many millions of
dollars on the
Panama Canal.
The main argument in
its favor was
the increased
facilities that it would furnish ..for trade
with, the

district,

and

year,

United States

we

stand.

cheap

containing from 25 to 40

our cost

competing

alone

For

45

or

the United

west

a

to

now

execo-

steel

Superior

utilize inferior

per

in the

ore

rapid
false

long; stand

fully $3 to $4

At the same time

ures.

of

60

capacity is limited,
us

cannot

to

ore

instead of 55 to

rent

Lake

in thirty years from

mining

and

extraction

50,000.000 tons

iron will be made from
cent.,

It

iron

$305,000,000.

of

ease

the
and

restore.

ever

of

the

.upon

is

It

fixed

a

can

nearly

high grade,

At

necessary
sire

no

amounted

because of
to

description.
to placate

exports of manufactures

year

iron

above

resources,

CONVENTION.

labor

the best

efforts

the public,
patriot

mere politician;- In

a

spirit

large enough
of
as

the
dis-

the presence
of

*

.

8

BANKING

rightly regarded as experts, I shall do
out a few respects in which it seems
to me that the proposed measure invites and is susceptible to modification and improvement.
One serious defect is that the bill will not and cannot
do what on its face it proposes to do,
It professes to

so

many

who are

no

more

than set

SECTION.

119

Naturally, this board being a political instead of a
financial body by the law of its constitution, its seat is
placed in Washington. There will be gathered the gold

the new measure, in addition to the
coin and bullion held against the
other forms of paper currency which are left outstandcomprehensive reform of currency and banking
lug. The objection to the mental atmosphere of the capiestablishing
logical and permanent system. We
tal is matched by the physical objection of placing the
that since this government was founded.
Jnost important collection of gold in the world at the
it if this bill should become law. It
mercy of a foreign navy., Nobody knows to-day exactly
simp]ify the currency.
It does nothing with • what modern warships, where guns have a range of ten
it leaves the silver certificates where
miles, can do; but we do know that cities near the seaproposes to retire the outstanding national
board would be at their mercy. 1 he mere presence of
in the course of time.
Our currency *™h a treasure within striking distance is an incentive
confused and unscientific as before. Ant0 hostilities and Would at least create a widespread
frankness at least is the repudiation of
deling of distrust and apprehension liable, to culminate
idea in name and the acceptance of
in
A glance over the world to-day does not tend
proposed national and local reserve
to; reassure anybody who wishes to believe in an inmerely variations on the principle of a
<*^sing pacific disposition among men or nations,
national bank with local branches.
Concealing ■ So far as one can see. most results of real value to be
tliev would naturally be considerably less
accomplished by the bill under consideration might
tliev could come into the open.
I am equally well be obtained under existing law providing
the central bank principle is either
for the issue of emergency circulation. But one of its
undesirable. I do not think that its rejecleast excusable defects is its exclusion from the apadoption in substance is as little prdm-"
proved securities for discounted notes or investments of
proposal to simplify our currency system by
these which are actually most desirable and safest of
element to its already heterogeneous mass.
all« Government bonds, State bonds, bonds of cities' and
practical working weaknesses even more
counties- aie, in diffeieut capacities, recognized as good,
these is the projected political
safe investments or collateral. ;A first-class> railroad
and banking of the country.. The'' l,ond is 110t- The discrimination, like, the proposed sysfederal reserve board, vesting control
tern of banking control, is purely political. There can
credit and note issues in men chosen
scarcely be a man at Washington ignorant of that fact,
reference to .political considera-'
Suppose that American bankers, in some time of finanpartly subservient to party demands.^ ciai stress, need to draw upon the foreign store of capi¬
that sets reason and all our experience
taI* There is plenty of it. Biit it asks for recognized
fundamental objection 011 this score
security. A man approaches a banker in London, Paris
tersely
forcibly expressed than in the
or Berlin, asking a big loan or attempting to realize on
Vanderlip, of the National City Bank :
securities,. with notes of merchants in the United States.
is proposed were formed by appointwhich are the foundation of reserve note issues, or with
leading bankers of the United States—
municipal or State bonds, the latter being an authorized
be—and these men became dissoci-investment. The foreign banker knows, nothing of our
conduct of actual affairs and sat at
private business interests. lie knows little more of our
directing at arms' length' the operation of
local public credit. "Have not," lie.would probably say,
banks, they would very rapidly lose
"some of your States repudiated their,bonds? " True, it
direct wisely."
But they are not to be
was' some time ago; but your people are extravagant,
participation as the bankers, as a body,
borrowers and spenders, and I cannot know when
will be in
advisory capacity, and without
may happen again. Your paper is not satisfactory to
affect decisions reached. What, then, is to be
me" Grant that he is wrong; that he does not underSpeaking of the old United States Bank and
stand our local conditions. He does not have to. He
reserve required by
y.iinmense stocks of

aim at a

a

by

not have

will

We

had

never

have

does

■

not

greenbacks;

the

they

notes only

failure in

other

bank

central

The

fact

in

it

just as

be

will

the

it

are ;

bank

associations are

central

identity,

that

if

effective than

contending that

not

desirable or

and

in form

tion

ising as the

adding a new
There

are

First

serious.

among

control of the currency

establishment of a
of

banking,

our

with

necessarily

ta-

proposition

a

at

some

at least

tions; and

defiance.

'

The

or

cannot be more

words of Mr. F.

A.

board as

"If Such a

the seven

ing

whoever

they

ated from the

may

daily

Washington,
the several

reserve

to

the- power

bankers.

Such

an

have

may

to

power

expected?

has the money, and he makes the terms,
On the other hand, he knows a first-class American
.railway bond as well as lie does the securities of his own
city. The name is familiar to him, the record established,
ally of one party or the other, it is inevitable that its
- A bond of a road that lias regulary paid interest and
will be contended for by them.
Its efforts to
dividends uninterruptedly for twenty: or thirty years
remain neutral will be vain and will expose it to greater
looks good to him. If it has a satisfactory surplus and a
danger,from both than an alliance with either. . ... .good margin of receipts over operating expenses, it looks
Bank War
be held to demonstrate that a Naall the better. Where the interest charge is only a small
tional Bank in this country .is impossible, because it
percentage of.net earnings, the bond is; well knowfir, the
would be
to become an object of conflict between
facts familiar, and tlie security gilt-edged. Such a bond
political parties."
It is, in effect, a National' Bank of
can be exchanged for cash or credit in any market,
that is
proposed.
The truth concerning it
In assured convertibility, which is the alMmpdrtant
remains exactly what it was eighty years ago.
qualification in time of financial stress, first-class railroad
details of the plan so far as one can discuss fairly
bonds are nnequaled. Their cash value shrinks less, in
whose final authentic shape cannot be pretime of depression, than that of any other security. This
dieted confidently, contain other minor features just as
is not a mere opinion, it is proved and supported by the
doubtful
objectionable.
The managers of a nation's
judgment of the men in charge of those institutions that
to be paid $10,000 a year, when bankers in
regard their investments as a sacred trust. The great
charge of financial interests relatively small command
life, fire and other insurance companies, which are liable
$50,000 or more. The position is not made attractive by
to be called on unexpectedly at any time for large sums,
like that of
justice of the Supreme Court.
by experience hold good railroad bonds as a preferred
sort of ability can be purchased, for a term liminvestment. The savings banks of the several states are.
to eight years, for a salary, at best, not over oneas a rule, encouraged and almost directed to prefer real
fifth
much
annum as less onerous services would
estate .mortgages in making investments. Tliey have
command in private life?
Necessarily the political poslearned,"by experience that when public confidence is im-,
sibilities must become the chief inducement to serve.
paired and there is a sudden and continuous demand for

the

Bank War,

Professor William

G. Sumner,-one of

the

since Alexander Ilamiltoh, has said:
"When, in any arena, a power
is present which'might be of decisive importance as an
students of finance

ablest

in this country

'

alliance

The

may

sure

issue

,

now

The

a

measure

or

finances are

a

life tenure,

What

ited

as




per

120

BANKERS'

cash,

they cannot realize

these,

011

CONVENTION.
the whole
country.

depend on

but can

first-class standard
railway bonds to bring them the ready

banks

money with the last shrinkage.

sum

Not without
bonds

stand

The

behind

resources

them

uation

estimates, but values, publicly known and vouched for
/by

authority..

The

revenues

fixed by varying conditions of the
seasons, perfectly sure.':

scheme

They

confiscatory legislation would be halted by public/:

the

opinion long before it could touch the
percentage of the
property value represented by the bonds.
Hence the
States bonds

Government has

the

seen

time when it

Yet

had. to

financial

fluctuations

that

the

investor

synonym for

To

besides.

No

wonder

their

are

and

When

we

senting

an

plan

any

of

credit

are

establishing

extension

which

on

readily than

That it has been

be explained

can

more

shrinkage, would be

out economic defense.

blow at

we

only

a

much

so

as another

as

cowardly polit¬

their protest

against.

solidity and value

Some other details of the bill

have

is. that the bill
suit the

it

as

The

are

the

too

in

country

The

its

one

little

emphasized.

present form

They
the

banks are
control
serve

The

as

must

is

new

contribute

banks

reserve
as

the Interior
an

To

objection

so

even

so

railroads, that is

is

organically related

are

almost in its

face

are

association

the

entire

operated.

capital

Department.

with

our

drift of

growing

be

to

Even
not

obligations of the United

the

profits

of

the

to rise above 5
per

banks

cent.

so

The

banking business.

to

on

now

a

costly

going for¬

banking business.
more

rapidly than

deposits $15,000,000 in

growing faster than

Chicago.

na¬

It is clear that the

to

the

happen because condi¬
,

acceptance, not only must

assumption of their co-operation fall
a

situation could scarcely fail to

these possible perils,

and

sure

frame

to

co-operation

the legislative

a

system not

on

justice and

between

the

bankers,

authority is indispen¬

that

pf the penalties, of life and growth.
the

problems

or

As

intelli¬

experience necessary to deal
wisely with
grow, the problems themselves also

grow

and

It

opinion

complexity
be

may

that

with

you,

the

as

too

advance

of

should

It

too

of

little united

modest to express and maintain it.

be that the time has

may

assume

civil¬

representatives

influence is powerful, your conclusions will

spected.

a

more

forceful

leadership.

country

needs

the

active-

position,

That is for
best

service

you

that

a

come

more

But

be

when

re¬

you

direct and

to decide.
you

a

in

have

But the

•.

to

offer.

The history
this

of banking, the monuments to credit
which
country has to show, the wise employment of

oitr-

•

capital, the cordial desire

to

ascertain

and

to serve

the

public good shown by your rank and
file, not only in the
great

centers

and

in

times

when

panic

threatened

to

shake the solid bedrock of the nation
itself, but in every
little community large
enough to boast its bank, and
among the thousands
their

they may impose springs the danger to the
plan and

am

number

your

The Central Re¬

de-

are

mighty national function, have been

political

Out of these onerous conditions and
the choice which




involve

change is

a

If-this should

experience,

and

ization.
-

These "reserve
and

I

one

in

be dis¬

or

plan differs essentially but little from the direct
assump¬
tion by the Government of
complete ownership and con¬
trol of the

are

State banks

refuse

executive

gence

entirety.

are

rigidly controlled

the natural

would

more than a prob¬
monetary-crisis and great business depression.

a

avoid

sable.

autocracy.

Government.

They

you are ready to do your
part. The
prospect before you widens, the difficulties increase.
That

mi¬

suspend banks and bank officers,
compel one bank
rediscount the paper of
another, suspend all reserve
requirements at pleasure, and issue and
retire, without
any check from the outside, credit notes which

States

Indeed,

ground, but such

financial

can

their

this

to-day, but for all. the future, founded

the

to

ciared upon

shows

plan based

for

It is responsible to-nobody
but the President, who can make
and remake it at will.
It*

that

made too onerous for

ability of

com¬

Observe that

completely under governmental

Board is

*

is too socialistic to

people.

our

over

National banks must join the
solved.

com¬

or

bring with it distrust, disturbance and

of every institution and the
prosperity

of every man, is to be taken

which

one

are

to the

danger of practical failure

banking'business,

solvency

idea

under State laws.

open to and have re-

But there is

exercised in the case of the

are

persuasion

enter the new association, sur•rendering their charters instead, and
electing to* operate

established and

merely supervision and regulation,

proposed.
to

and

temper of the body of

is not

nute

are

kindly criticism.

been

110

reasonable limit.

a

tional banks would feel it
due to their stockholders and

a

which

popular

depositors" to

this

prehensive objection

the

serve

Tighten those limita¬
tions, increase those burdens, and there is
great danger
"or practical
certainty that many or even most of the na¬

con¬

admitted in every money center of
Europe and America.

ceived fair and

any men in

to

the restrictions that
accompany it.

blunder with¬

tions

\

moderation.-

as

advantage of the title "National" is about balanced
by

any

cannot afford, in order to
satisfy an unjust prejudice or
cater to a political
discrimination, to* bar from its place

asset, whose

beyond

tional banks in Boston
and

public life

heard

But

of Minnesota have
increased their

a

make

urge them

the last year.

great interest, which bankers
serving the
country and business men and honest men in
should

and

before and
competing successfully with the national
banks for business.
The deposits of State
banks and
trust companies in New York
are reported to be
$360,000,b 000 greater than those of national
banks. The State banks

this

permanent credit

a

interest which, next to the land

proved to be convertible into cash

sidered

temper

to maintain public credit and

State banks everywhere

live, is the largest in volume in the country, a
security

ical

can

ward that

a

basis, to shut out railroad bonds, repre¬

other and with less

good

sincerely desirous

ever

from

investment

as

sacrifice is mistaken.

discrimination of which Congress cannot afford to be

guilty.

with

body,

V

security, while admitting others confessedly inferior, is
a

country

The

high credit.

exclude

any

cannot be obliged to
accept any new system.
They have
always the option of
surrendering their charters and op¬
erating under State laws.
'

:

good profit

bonds

framed

as

are, as a

pulsion

suspend

accompanied and followed it,

a

pay

share of the necessary

of the old and stable railways of the country dis¬

charged every obligation in full and paid
to

will

"National." In truth, this is very far from
The bankers of the
country have met the sit¬

burdens of
currency reform.

our

specie payments because it could not meet its obligations.
Through all that period, including the Civil War and the

many

they

charter which entitles them

a

public good; and have shown
themselves ready to make
concessions and to bear their full

United

favorite standard for safety.

are a

assumption that the

patriotism, have shown every willing¬
co-operate, have expressed their objections to the

Even

confidence of investors in this form of
security.

an

that

with real

to

ness

within narrow limits

are,

terms;

any

rather than surrender

the case.

not

are

There appears

accept

to be called

does the credit of the best railway

reason

high,

*

^

must

friends

and

of toilers

there who count
you

as

helpers, advise the country that such

policy will not be unjustly
patriotically administered.

assumed

or

unwisely

or

un-

1

BANKING

National Efficiency.

Education for
By

George

E. Vincent, President

American of his national pur¬

"When one talks to an

loss.
with
alacrity."
This brilliant Englishman is right. We have
too long deluded ourselves with the idea that we are the
G. Wells, "he seems a little at a
national destiny, he responds

pose," says Mr..II.
If

speaks of the

one

.ourselves with
facing the cold realities.
Public lands have been occupied, natural resources have
been appropriated by individuals, corporations, and gov¬
ernment.
Population is increasing.
Exports of food¬
stuffs are declining.
There was something ominous in
the recent arrival of that Argentine beef.
The truth is
being pressed home that the days of traditional agri¬
have intoxicated

children of fortune; we

rhapsodic rhetoric; we are now

easy-going industry, and a

culture, of

The new tariff

numbered.

are

merce

present standard of

our

even

There is
its

and

country

It

achievement.

their places

take

life.

■

Emerson,

we

earlier

the

In

and

,

: ■■■'

,

years

from'

protected

we

were

So

it

scientific'exploitation
economical

derstanding
■

among

•adapt our education to
National

and
attempting to
these needs of the national life.
citizens, and higher social

efficiency

demands

ity into many professions and
centration

upon

callings rather than con¬

We probably

few.

a

abil¬

the distribution of

lawyers, insurance agents, real

have too many

estate dealers, brokers,

shopkeepers—possibly even too many bankers; too

few

dairy men, gard¬
and
highly
skilled artisans in
many
indus¬
Efforts to magnify these industrial pursuits have

expert general farmers, fruit-growers,
eners,

tries.

been so far

life does not send people to

of rural
ous
men

to

into

flock

draw

a

sense

a

dignity

shops

and

of

the farm.




Unctu¬

labor" does not cause

factories.

The influences
eco¬

technique which challenges mental

abil¬

callings

are

social

of mastery, and a corporate pride

vocation.

praise

esteem,

into

men

nomic reward,

ity,

" the

about

talk

which

City men's sentimental

largely futile.

'

them

in one's

must

but these
gradually" merge into

earlier stages of the campaign,

pioneer revivalistic agencies must

efforts.
The next step,
a personal relation, be¬

permanent .and practical

more

therefore,
tween

the establishing of

is

experienced

the

Institutes play a

the farmers.

from

come

the

in

part

demand for

if they are to be useful the

but

well,

are

his

the farmer on

and

expert

farm.

The

its

State into seven

station;

experiment

own

the following features:

plan involves

Minnesota

The division of the

districts, each with

of dis¬

appointment

the

(two already in service)

trict agents

in charge of these

resident

divisions; the employment in each county of a!

.

of the

by the Dean

tions,

a

Federal
150

county

appropriation,

grant;

the

teachers

Schools;

of

organizations;

plants
its,

and

pure

assistance

other

any

commercial

clubs,

associations,

stock

between

conferences

by

live-stock,

accounting,

the county

creameries,

diseases

of

marketing, cred¬

agents

and

station

selling associations,

community enterprises; the multiplication of

demonstration
owned

drainage,
farm

co-operative

to

daily

High

individual farmers concerning crop-

seed,

animals,

and

etc.;

experts

and

agents

these agents of

co-operation of farm¬

good-roads

breeding

rotation,

with

associations,

development
committees,

subscrip¬

in- State-subsidized

support and

bankers'

local

by

State subsidy, and a

a

co-operation

agriculture

active

the

ers', clubs,

county

jointly

supported

and

University,

appointed
Department of Agriculture in the

(twenty-five are at work)

agricultural agent

and

farms

operated

(twenty-five
by

regular

now

farmers

in

operation)

who,

without

subsidy, agree to follow the instructions of the ex¬

periment stations and to make, daily reports.
Next

.

agricultural

The

supervision.

University are the chief cen¬
this is organized.
Printed bulletins

which

around

ter

of our natural resources, a more

our

v

;■

•

system of distributing infor¬

a

affording

"and

mation

working

experiment stations of the

seeking a more

At the same time we are

political ideals.

'

is, first of all,

corpora¬

are

successful and country life

to make .farming

There

isolated, self-contained

better un-

associations,,

individuals*

private institutions, and

worth while.

loyai national
/';V/ ■■•Y'-"-'

organization of our commerce, a

State institutions, the

the

voluntary

government,

together

have these

however,

completely combined and co-ordinated.

so

government and

State

tions,

and

about that we are

comes

been

Nowhere,

States.

United

the

Federal

We must
natural disad¬
vantages have attained forms of efficiency that may
well give us pause.
We have 110 need to fear, but'we
may no longer rely upon destiny.
We must have pur¬
pose and policy.
This competition not only forces us to
organize our activities, but it tells us what we need to
teach our youth.
A conscious adjustment to new con¬
ditions and a reorganization of education go hand in
hand.

activity may be found somewhere

The

who, under serious

peoples

with

Every

system to these two taims.

element of Minnesota
in

for power, for prestige.

markets,

for

strive

reckon

popular estimate of rural life and to

adapt the educational

elements

rivalry with other nations. Now,
a world-wide struggle.
We must

compete in

must

/ Vv:'

.

illustration, let us review briefly what
increase the efficiency of farming

of

way

itself, to change the

letters/- The

arena

in a well-organized

standards tend to dom¬

•

Minnesota is doing to

the national, lexicon, but

■

country-side.

inate the

By

a

city nigde ideas and

For

folk.

making

are

the minds of Americans

change in

just now it
is " efficiency " that is being put in italics, if not in
capitals.
The call,for efficiency is a summons to awake
from complacent dreams of national destiny, and to or¬
ganize work and teaching under the guidance of a na¬
tional purpose.
We. must learn to practice economy, to
obey the dictates of science, to value expert knowledge
and specialized skill.
We must exalt moral and spirit¬
ual forces.
We must train and inspire our children to

ulating idea from

of rural

conscious effort to
the ideas and feel¬
ings they have about farming as a career.
It is quite
as important
to do this for towns people as for farm
We

country-side.

for individual struggle and
would be a disaster to drop this stim¬

vast

a

was

this end we seek
life.
Agricul¬
itself has drawn people away from the
As one means to

attractiveness

the

education

tural

This has been true, for

effective.

increase

to

maintain

For

shibboleths.

society

of

standards

The

process.

gradually>

and

tific

■

Opportunity in capital

spelled

slow

a

example, of
agriculture.
It is trite to say that this industry is fun¬
damental.
We know, too, that our agricultural methods
and results have until recently been almost a national
disgrace.
We are trying now to make farming scien¬

: -

catchwords

own

American

is

This

exal.t many kinds of service.

to

work,

dignified

change

Every period provides

fashion in phrases.

a

widen our ideals of worthy

problem, then, is to

Our
and

living we must change our

Vy.•;.■/

methods.

of Minnesota.

of the University

wide-margin com¬
will put many of

If we are to

mettle.

industries on their

our

121

SECTION.

come

the

agencies for interesting the public in

°

122

BANKERS'

.

rural

(iffairs.

activities

the

commercial

hold

wide

a

farm

readers

operative
marked

and

influence.

and

county fairs

national

in

To this
of the

of

of

the

committees

the

and

more

the

the

the

more

on

agent

The

problem

and

system.

A

in

the

central

special

activities

of

are

are

work

point

but

committee
sub-

these

committees.

ing dairy-herds,
tions

are

lieved

that

the

the

farmers

and

bankers

agents

their

It

cause.

will

is

improve the conditions

to

as

the

economic

efficiency

right tp loans

of

farm

credits,

it

should stand
pi the way of

premium

a

is

important

of

that

methods

and

deserves

nesota

will

detailed

more

Out of the

new

fact

vocational
shows

that

should

be

in

much

so

as

they

that

children

common

No

one

are

spirit.

with

or

into

situation

and

politicians; club

drawn
to

into

is

associations,

or

without

weakening

The movement

change.

Human

There

nature

,

farmers'

Perhaps,

millenium
has

Farm--

storekeepers,

and

women

comradeship.

that, the

say

and

is

co-opera-f
typically

working together
paternalism

State

a

authority

voluntary

bankers, school teachers

a

aptitude,

school,

organized

are

all

policies of

center

The

governmental

same

and

institutions,

individuals,

to

certain

a

with

be

to

are

Up to

accordance

unity of the

activities

State

of

all

programme

common

Minnesota.

has

pro-

wives

however,

uot

we

dawned

undergone

in

sudden

no

is

apathy to be counteracted, prejudice
Suspicion concerning disinterested citizens
like bankers, for example, has not been entirely
dispelled.
But a real beginning has been made.
The
to be overcome.

manage-

system to the

description

air

new

than

of

is

full of hope and
determination.
One is not to be
blamed for feeling that it is a
good thing to live in a
region that is, awakening to a
purpose and is organizing
its efforts.

the

State treasury this year Min-

$5,150,000 for the, maintenance

pay

secure

,

The adjustment of the
educational

situation

a

and

ought

.

time permits.

least

are

trade

or

understanding and good Will.

fessors

nothing

good

plan

Children

at

personal initiative and
responsibility.
for mutual

are

ment.;

All

sense

ers

favorable
a

the

makes

stimulating efficiency by put-

sound

on

of

individual

on

by

any

the reports

of

time

a

specialized. workers.

finding itself.

corporations,

confidently be-

more and more upon

is

for

American.

buy-

are

-Whatever the outcome of the demand for

system

.ting

bankers

many

educational

democratic.

for

not

specialization

much

tion

importing

the
as

education

of

dominant.

operating farms and by demonstra-

by relying

county

terms.

good

giving aid to the

farm credits
of

are

A

Minnesota

is

may

are

within the social

which

The

well

as

the

So

projects, ete.> have had the hearty and effective
support
of

It

Experience

recognizes

measure

readjust-

associations, cattle

Indeed, they

plan

plaj3„ subsidies for vocational subjects in

schools, improvement

this

the introduction of them
stimulates all the work of the school.
The

gratify-

organized.

neighborhood

It

educational.

citizens

district committees under which

rural

must seek
ability wherever it may be
stigma is attached to agriculture or domestic

No

jects.

,

a

of

science by
segregating the pupils who pursue these sub-

,

coining to be edu-

\

of

Aristocracy

theory.

born.

State

pleasure to mention the

a

educational

out

centers

prematurely assigned to special vocational

sill"

a

literature,

sending

features

emphasized.

schools.

their

as

efficiency by making its masses obedient
servants.
But
democracy cannot accept what Lincoln called the
"rnud-

..

co-

exert

by

of

State, who have shown

farm

relation with

county

companies

distribution

in

not

at

The

doing much good.

are

gathering it is

bankers

meat

railway

their

or-

supplying

undertakings

be

may

are'discussed.

reports.

character and influence.

irig interest in

is in

and

co-operating

are

These

but

\

Certain

Good

conventions

topics

similar

The

trains,

Clubs,

education,

life.

State Fed-

a

societies.

and

tural

institutes,

important part in

and

1

in

Women's

rural

an

farms,
by

of

information

creameries

especially

of

play

with

demonstration

clubs united

meetings

variety

demonstration

farmers'

Improvement

public

papers

the

Federation

Associations,

which

tlieir

University,

State

ganizations

The

the

clubs,

eration.
Roads

The chief of these are: Certain extension

of

farmers'

CONVENTION.

com- *

mo*
•

schools, high schools, Normal schools, and the Universify..
Of this $200,000 is for special subsidies
to

high schools,

which

aiid

training.

manual

than

.more

•the 210

an

teach

agriculture, domestic science,

These

State

equal contribution from local

merely

as

book

a

nection

with

vicinity.

-

sioiv

includes

Ilis

by

becomes

village

is

In

course"

tension

division

the

Of

farm

of

in

a

of

and

the

exten-".

system

offers

on

The

Summer schools

The

University

tural

life.

also

technology
Eighty

farms,

or

per

in

to

conducts

train

farmers in

a

one-month

courses

managerial,

and

young

and

girls

teaching

pursuits,

men

and,,

service.

are

schools

are

The

women

sub-

for

the

provided.

of

for

agricul-

country

now

on

College
for

Consolidated

the

of

expert,
rural

an

national

dominantly

industrial

to

seek

be

make

turns

their

a

great

and

its

diversity

welfare.

Here,

too,
is

premature

to

be

too

as

of

to

to

then

children's

an

future

education

soon

give way to trade training.
At the
preliminary preparation must have some

is the national

education

/States

which

shall

effective

task—to work out
aim

at

competitor

making

in

the

not

in the

as

a

the

the

sacrifice
a

of

our

fundamental

progressive efficiency,

system
United

world's

institutions.

It

ciency,

authority

which

tific truth

efficiency,
from
must

recognizes
verified

arising

their

be

and

a

moral

of material gain,

country
world

a

potent

welfare.

the

must

experience.
from

not

loyalty to

a

a

influence

I

be

It

coercion

common

genuine
for

an

of

It

must

not

desire

social

be

the

and

expert

tested

must

of

ideal

efficiency, inspired
but by

arena,

not at

in that it gives scope to

dividuality and experiment.

seiensocial

but

many,

mere

to

justice
"

a

in-

effi-

purpose.

by

dis-

past.,

Efficiency must be secured,
however/through and
be

at-

pursuits,

bearing upon future vocations, and,
above/all,
This

an

must

and

these

common

criminate against manual
employments

of

stand

sections

respected

The general

spe-

must

farming.w Pre-

commercial

vocations

decision

avoided.

has

that

Naturally"

to

tractive, and to adapt their education
work

description

which

attention

and

many

long

illustrated—namely,

education

need

State

ex-

sends

being increasingly used not only for
agricul-




of

not

lecturers,

teachers

three

boys

closely-allied

trains

are

rural

test

and

agricultural

time this

University Depart-

cent, of the graduates

Agriculture

schools

for

pursuits

must

training of teachers of agriculture, and of domestic
science.

the

to

efficiency, demands

cialized
;

that* this

feared

principle

same

agricultural

four-year

be

which

industrial contests
among school

bulletins

to

The teacher

the

holds

con-

surrounding

The agricultural

speakers

teachers.

Agriculture

farms

with

of

school

people.

taught
in

agricultural

advisor

the

not

but

the country.

expert

supplies

school

for

part

and

supplies monthly
rural

center

and

association

winter

for

plots

integral

town

literature, organizes

niqnt

a

of

an

or

territory.

pupils,

laboratory subject,

is

means

agriculture

jects to

Agriculture is

demonstration

"short

out

and

The school

and

districts

of

boards.

is

national

:

subsidies "involve

high schools, 150 provide the vocational
subjects

and maintain special teachers.

It

obscured'the

It

hope

make

our

and

for

BANKING

123

SECTION.

"The
County Agent.

an

later

I

before this

address

States

Department

county

pays

tical

and

tors,

but

as-

lie must be able to

ers' Organization,
addition

with

of

the

known

as

called,

and

States Departcommonly
as

Bureau is

Farm

of the

Secretary

Bureau,

Farm

the

of

manager

the

is

it

fre-

Superintendent of Schools, or some person

General plans are pro-

largely to the work.

his attention

United States Department and the State
Agriculture, hut it must be left largely to the

by the

yided

College of

County Agent

himself and to the Advisory Council

the Bureau

to the best means and

as

ing. out the plans that are

put in operation in
it

because

was

difficulties and.
very

it

or

-

where first the plan

the State, the fact was realized that
we would encounter a great many
It became evident from the

objections.

fail.

must

this result an organiza-

ffeCrs, making in all
carrying out the

the

Bureau

body of forty men for planning •

a

The manager of

work designed.

setting forth all. our

bulletin

prepared >1

plans of organization', how the plan began

Board
a

of

report

detail

and much of

and the sanie was published by the

progress,

Agriculture at Columbia,

\vas made of the first year's work,, giving in

largely what was accomplished.

ested and it is free for the

asking.

This bulletin and

inter-

I11 the length of time

have for discussion only

we

State

Following this,

Mo.

report will be mailed to any person who may be

that

from

additional of-

townships and six

seventeen

the

of

To bring, about

planned, consisting of two leading farmers

and

its

was

beginning that the move had to be made popular

tion was
each

new

of

methods of carry-

designed.

Missouri,

County,

Pettis

In

a

few of the more im-

portant items can be mentioned.
The

Bureau of

house for

Agriculture becomes

the results for each

situation of his

many

things

are

county,

and he will often find

apparently

contrary to what he

will find in other parts of the country, as
to

one

locality will not

happens that
bettered,

particular

The County Agent must get a line 011 the agri-

territory.

that

sort of clearing

the dissemination of those methods and plans

that will best accomplish

cultural

a

even

plans in
those in

be suited
a

methods suited

to another.

It often

community may be materially

force may

be good,

satisfactory

results, mid in such an event, when new plans are sug-




very

do everything I could to assist them in selling the best
seeds that were on the market and would pse just as
much effort to prevent their selling impure seeds. I did

Club or a County
who can give

quently the.Secretary of a Commercial

gave

stopped rpe on the street or had been to the office to
make inquiry.
I found also on examining the clover ,;
seed that had been sown that it came from local seed
houses. This led to ail investigation of the seed si I un¬
tion in Pettis County. I must say that it was very bad
indeed. I gave our dealers the information that I would

County Agent is

The

Agriculture.

Farm-

the College of Agriculture,

Experiment Station and the United

meat

the greatest

Advisory B.oard or Council in

an

being assisted by

to

1

sympathy with the situation

who sees efficient service as

his work he is commonly aided by a

in

success,

his mouth shut,

and how and where to keep

man

a

rid of it, but in the article in the newspaper
little information, but invited those who
might be interested to call at the office and see the plant
and I would be glad to explain, and I think that before
noon the next Monday at least fifty men. had either

was to get

He must

in the farmers'-language.

lie.knows

when

be

and

who

man

only of farm mat-

knowledge not

theoretical

and above all to be in entire
and

The

of many others as well.

what

know

the

this position must have a good store of both prac-

sumes

tell

United "

State one-fourth

salary, the

one-fourth.

States

but'

employed

Missouri

In

Agriculture.

of

one-half the

United

the

different name,

a

He is usually

the same.

the county, by the State and by the

jointly by

and

given

are

we

all

is

meaning

the

" leave of absence" giving

years'

Sometimes

trial.

to that plant
In making a
trip to look at a piece of land on which a man wanted
to sow alfalfa, he told me he wanted me to see his new
clover that he thought to be a very fine crop. In .taking
a look at it, clover-dodder could be found growing, on
practically every square rod. This man did not. know
what dodder is and his hired man had never heard of
it. In my articles for the Sunday morning newspapers,
the Sunday following this visit, I told about dodder, as
to its being a very serious pest .and of how difficult it

the soil of Pettis County was not adapted
and it could not be successfully grown.

that I am " it." I am
the plan a

I presume for the reason

two

a

on

County was some information regarding the growing of
alfalfa. Many men had assured me that they thought

.

been as-

Agent is the subject that I have

The County

signed.

for the

So I prepared an "address"

and a " speech " for the audience.

newspapers

"I

want you

to deliver an address, but I

speech."

to make a

few days

A

Mr. Chapman, saying,

notice from

received

not want you

do

Convention.

Sedalia, Mo.

gested, it has to be done very diplomatically. rlhe
County Agent will succeed largely in proportion to the
things that he can see to do that will render a service
to somebody, even though that service be ever so small,
Among the tirst things that was called for in Pettis

Joseph Chapman invited me to de-

ago; Mr

Some time

liver

Department of Agriculture.

"S. M. JoKDAiV County Agent United States

By

.

this I in order that there be no misunderstanding, and in
my seed-testing work when I found samples of bad seed,
I invariably let it be known as to where it came from,
so that any prospective buyer might govern himself accordingly. 1 believe that our seed men in Sedalia are
men of integrity, and who desire to do the fair and horn
est thing, but that they themselves were not posted.on
the quality and purity of seeds and, so far. as I am
aware, had made little effort to determine the locality
where the seed that they were offering for sale had,been
produced. During the first season a few embarrassing
situations developed, yet, so far as I know. 110 hard feelings. resulted; but when the new year's work began and
the supply ,of alfalfa and clover seeds were being secured, samples were invariably submitted to the Bureau
before they were bought.. By this method the dealers
can be protected just the same as the farmers who may
buy. and if our dealers do not buy impure seeds our
trouble along this line will be over. An effort was made
at the last Legislature to secure a pure seed law,, hut we
failed in this ; but so far as Pettis County is concerned;
I really believe that, the way matters have turned out.
we are in far better position than any seed law under
the sun could possibly make us.' I found a number of
very noxious weeds growing in many parts of the county,
yet not one farmer in three knew these pests by their
seeds. Little attention had ever been given to anything
of the kind and they, of course, were not familiar with
them. This has led to the introduction of seed testing
in the rural schools of the county, and many of the
teachers have made a great "hit" in this work alone.,
The children will ask for a little clover seed perhaps
and take it to school, and in a few days a little twelveyear-old girl will bring the sample back and show papa
the seed,,of sour-dock, bracted plantain, and buck-horn in
' his clover, and 1 believe that before, two years more have,

124

BANKERS'

passed every pupil who is twelve
in the rural schools of Pettis

ognize by their seeds every
that
the

•

seeds,

having splendid results
tion

I

found

to

necessary
of

me

that

with

they

out the cause.

Pettis

all

well

drained.'

soil should not
soil

is

the

soil

making tests

more

alfalfa-growing
sult,

most

acid;

in

.fullest

much

contemplating

were

of

began

since

sown

lished

in

the

Bureau

SedaliaJ" only

destroyed by

so

was

the most

gave

instructions

are

careful

perhaps

It should be
be

than

more

gratified

three-fourths

the: only

.

seeds from

a

our

1912

in

crops

history.

.

could

views in

the

I

of .course,

of

time

came

a

'

price.

great
ones

Those

letters

from

States.

In

felt

like

train

out.

had

buyers

many

later

came

market

sold.

their

orchards

much
and

It

been given 110
fruit
a

and

to

hogs

taking

the

on

would
a

lots

was

except

that

start

what
who

men

had
had

given them the right
and

they

realized

has

though desperately
been

measures

the

to

means

take

of

"

trees

had

and

proper

care

States
clean

Department
up

Sedalia.
carry

of

hog cholera
Some

time

Agriculture,

ago

the

which

make

to

corn

the

belt and

was

take

the

county.

third

State.

were

The

next

an

of

endeavor

to

station

at

appropriated

to

a

decided to select three
one

demonstrations.

had been selected and Missouri
as

in

county,

$75,000

out this work, and it

States in

the

was

county in each in
Indiana

and

finally decided

move

was

to

Iowa
upon

select

the

One of the very first conditions that
they wanted




to

these

are

fact'they

other

very

com¬

in

this

things .that

are

years

visiting farnis,

or

lights

other

or

se¬

do¬

conven¬

.

have,

we

Meetings.",

and

over

methods

These meetings

some of them

result

were small

the attendance has

Where the

farmers

town

many

or'less pleased

learn to

the lawn

meet

and
that

that
is

another.

chances

are

is

like

them.

important

obtained

;If

to

At

people are in¬

be in

attendance

farm, and

these meetings

that

it

is

is

but

;

that

we

do, not

you

the

get

like

because

good

as

we

as

you

This

are.

day's

with

neighbor,

not

know

the
him.

him you will

find

fellow after
all; al¬

a

is

a

as

we

valuable

acquainted

do

you

pretty decent sort of

most

your

will get well acquainted with
a

on

their successes and their fail¬

over

meetings

ni(fe

on

the dinner is cleared
away

as

600.

talked about

dinner is spread

a

little bit, and that is very
good; we have

a

outing,

most

from

vet¬

A

and come in contact with the
people of the

that

Perhaps the most important event that lias taken
place
in Pettis County is the
establishment, by the United

suc¬

of

" Out on the Farm

talks begin.

150

and at

ures,

their

orchards in the future.

is looked

ground, talk

men

of

to

county and found

township.

of

way

staff

schools, assisting in the planning

hour, then

from

that he is

the

A

by their

selecting breeding animals,

call

we

reached

If you

great many

possible

thou¬

one

who

men

as

hur¬

a

home, and preparing and giving lec¬

common

one

be-'

number

beginning, but at

was

I

every

waterworks

the lectures and

a

had

in

In

than

more

survey of the

grove, and as soon

already

The lesson

severe,

a

a

good price,

big apple crops and whose

making it into cider.

in

or

learn
a

noon

vited and

sprayed

a

secure

possible.

from

every

.

in the

care

township and
as

hog-

Among the first

.

the farm

fair

fruit, but

in

established

was

sorts of occasions.

sec¬

through the

of

of

is what

on

until the

little and take the first

vast

the farm
all

on

was

a

this

of the ablest

One of the very .important
pieces of work that

noon

ground,

for

'Some good farm is selected where the
farmer is making
a success
especially of some of his work, and in the fore¬

pros¬

Pettis

attention had the privilege of
feeding the
or.

wholesome one,

lieve that it

had

fruit

had

who

wanted,

developed

marketable

those

were

in

carried

When buying

received

rotations,

crop

very

world

packed up all the good stuff at

who

been

whole

fruit at all.

no

They said that there

the

the

every

few days

a

were

co-operate

a

system

a

tures

see
,

copied

been

aiding teachers in introducing agriculture and

iences

inter--

some

had

country, but maybe would scout

nothing

would

we

twelve different
we,

Of

began

apples, yet it developed that many

the country

and the first

farmers

visit

mestic science into the

going to have to

told them

widely,-and within two weeks I

tions

fall

were

not

Superintendent,

and

do,%id I managed to get

overloaded with

We,

'

trade journals and these were

some

as

of the greatest apple

one

Early in

pective buyers from

County,

''

would

curing markets for seed grains and
crops, building silos,
-diagnosing sick soils, identifying insect
pests, settling
disputes between landlord and tenant,
securing places for
farm hands and help for
farmers, looking after the Boys'
County Corn Coiitest work of the
county, visiting the
schools in co-operation with the
County

that produces seed best
•

County had

winters.

our

not

some

for co-operation

trouble

are

planning

give the

have secured this
gift

called for from day to
day In the way of

be¬

is

to

less

or

There

of

.acre.

great plant,

to

was

signatures

more

that the dealer gets

see

it

not

evi¬

very

of the Bureau

plete survey of the loss for the
past two
county alone approximated $750,000.

results,

per

made

agreed

can

../A--

erinarians first made

the

average

tons

had

cessfully accomplish the object sought.

Those

experienced

conditions.

feed their fruit to the hogs.
we

this

endure

coming in and wondering if they

what

the

an

two

been

section of country

Pettis

its

not

business to

our

adapted to

of

acres

that will

making it

In

act

.

together with sometimes sowing Soutli-

$eed

ern-grown
are

to

trouble that has

indicated above,

-

cut made

ton

benefit

day of last July the office

campaign of only

sand

was

followed

with

This

ready for work in charge of

ried

only a little time until Pettis County should

growing thousands, of

cause

One

seeding.

and

\

many signatures

estab¬

was

would

for the establishment

cholera specialists in the
United States.

was

lost.

time of

attention

because the first crop that was
from

Agriculture

It

moves

alfalfa

pri¬

farmers'

good a§

as

members

a

perhaps due to liming the soil with

air-slaked lime too close to the
who

members.

these

make

sowing

have been

two

of

co-operation.

had but

but

to

re¬

the

was

best working

As

worms, and the cause of the trouble,

army

with the other

of

paid-up

one

possible

$25,000.

and

have limed their land, and of about forty fields that have

been

700

every

On the 26th

find the soil

and I

too

I

the present

it should be.

as

that

by the County Agent, and
Bureau, Pettis County would

to

farmers

The .membership of our Bureau

that

acid.

the

seeking, which

of the

in Missouri,

State.

any.

approximates

well-drained

that

who were sent to do

were

one

,

have been

and up

fact,

have

we

it was practically

commonly

farms,

successful

as

who

persons

is

perhaps, 500 tests,

less

or

as

had believed

various

on

sour,

they

dent

brought

assurance
men

When they came to Pettis
County they found the
conditions that

be found in

acid, but it is found that the drained

that

time have made,
all

was

have

organizations not only

are

who had told

many

to

was

marily that

County farmers, as a rule, had not

They

be

very

were

investiga¬

on

few questions invariably

a

suspected that their soil

■

alfalfa, and

who

doing the things that

were

do, and I found also

failures, and

more

county

work.

Referring again to
five

or

a

would co-operate with
the

rec¬

of the serious weed pests

one

found four

I

in

of age or more

years

County will be- able to

found in these field seeds.

are

alfalfa

CONVENTION.

one

of

the methods

have adopted

in Pettis County, and the
people
in town, believing that
they should return the
courtesy
extended them, arranged on our first

anniversary

county
the

noon-day

Bureau,

banquet

together

somebody else's wife
even

though

seated

at

the

one

were

composed of

more

splendid

found.

We

are

with
or

invited

his

wife

each
or

an

all-

member

of

sweetheart,

or

sweetheart, to be present, and,

weather.was

time

or

and

around

the

folks from

disagreeable,

town

representative

564

banquet board.
and

country, and

gathering could

endeavoring to

boundary .lines between the town

lose
and

all

were

These

traces

the

not

a

be

of

the

country,

be-

.

banking

the town and the country have

for all these years

cause

understood one another,

not

that

and when the time comes

other better we will find

each

know

we

that the

and the people in the town are one
all.
complimentary to the bankers of , the nation that

people in the country
and the same and
It is

they have been

in close touch

with this movement ever
places they are the

beginning; in fact, in many

since the

have

who

men

pretty decent folk after

in the lead and paying the

been

money

toward, the support of the

work.

I

citizens, for the simple

that no class of men stand

estimation of

knows

institution

of that

more

It would be tremendously
know

and

intelligently

business

all

throughout

all the farm

of

the

that

the

banker

fully

of the well-to-do farmer and his
is anxious to get

suits

associated with
It

is

money

security.
little

often

conditions, because
his bank.

It is evi¬

appreciates

the value

importance, because he

give his bank some name

principle

conditions

When
as

they

times
can

that

people

also the bank gets
are

borrow




its very best

adverse people borrow just

get along with, and the security is

unsatisfactory when interest

being true, it would become

These things
the

to so

banker

secure

inter¬
payment.
few years ago farmers secured the virgin soil
price, but to-day they are buying a depleted
high price.
It takes practically from four to
as much to equip a farm for successful opera¬

longer time on his

est, with an

Only a
low

at* a

at

soil

a

six times

rates must be high.

loans, at a lower rate of

easier method of

present time as it did

tion at the

forty years ago.

There

has suflicient working capi¬
profitable as it should be and conserve

farm in fifty that

is not ope

tal to make

it as

the fertility

of the soil at the same

farmer

time.

If the bankers,

the conditions referred to, could make
prosperous and his land more produc¬

by bringing about
the

profitable for

matters that the farmer can

arrange

more

in the same
lower, more
money would be us„ed in that way as well as a very
much greater amount in commercial loans.
Certainly
this very condition instituted would have one of the
greatest possible tendencies to increase all conditions on
the farm, because it would result in ownership.
The
of the town would prosper

tive, the business

rates on land might be

ratio, and while the

in

condition

time is that

the farms is on the increase;

by which these

the plans

under

at the present

country

this

mortgage indebtedness on

loans

are

arranged the

will be met by the returns from the
Production per capita is on the decrease, land

payments never
land.

tenancy is on the
of every

increase.

only GO out of every
in this country

few

years

edied

In Denmark S9 farmers out

100 own the land they till,

ago.

our

indeed

by

the

operating with

but in this country

100 are owners of their farms, and
land was almost given to us only a

'that can be rem¬
educating of. the peo¬

„These are conditions

through the training and the

ple, and it can be

':

to the greatest extent when times are prosperous.

Under such

as

the farmer.

fundamental

a

full¬

him on his Board of Directors, and it

banker very often'to

a

like the best sort

land the farmer's credit to a very

large degree measures the credit of
also

proposition of

proposition for the banker to have the

understanding

dent

the farm to enter

every

on

It has always looked to me

the farm.

est

important if the bankers would

sympathy with the situation and to talk en¬

tertainingly

a

This advan¬
financial matters.

himself.

enough about the actual work on

into hearty

of

farmer's business than

related only too closely to

has

tage

institution, and that banking

else except the farmer

anybody

bankers of the

but what is in close touch

farmer

least one banking

at

quite so high in the

the best people as do the

No up-to-date

nation.

with

County Agent and his
stands in the most im¬

believe that the banker

portant position of any of our
reason

most

125

section.

accomplished to a very great degree
of the nation assisting and co¬

bankers

j

tlie County Agent.

;

etc., have their mission,
take the place of the County Agent

Books, bulletins, newspapers,
but none of them can
who

goes

right onto the farmer's

problems face to face and

farm and . meets his

solves them.

/>'

orts
Report of the

Currency

Commission

Gentlemen

into

Soon

:

it

power,

was

after

the

night

that

announced

the

were

in

came

legislation- would

currency

and

power

plish

influence

general

a-

change

of

be

the

and

given

remodeling

system.

rency
The

especial

attention

administration

of

used

to

credit

our

for

was

the
•

The

of

matter

the

.bill

a

of

deliberations
until

the

taken

was

members

the

of

up

as

party

Banking

Pending this determination

t

on

to

generally

June

members

of

days

the

at

also

commission

This

as

sent

were

the

to

a

ma¬

to

believe

that

Chairman

The

to

sent

to

Association

replies

the

and to

to

the

is

period

a

study

a

of

The

of

the

replies

annexed

[The replies in full

1913,

and

replies,

various

in

members

members

questions

all-day conference

ate.

of

the

had

was

discussed

ments

taken

were

of The

tees

to

chairmen

two

summarization
of

1913,

the

under

the

to

the

existing

caption,

of

in

one

sponsors

wise

of

that

should

law,

the

the

give

measure

a

tative

was

bankers'

some

not

and
views

various

called,

to

meeting
of

the

various

appointed,

associations,

different

confer

with

sections

one-third

by

one-third

by

to

of

the

to

formulate

bankers,

pending

in

and

to

Congress.,




an

to

the

Perrin.

of

the

the

and

the

and

suggest

manner,

the

pending

the

22,

of

out,

and

neiv

pending bill

was

thus

this

the

understood.

The'

copies sent to

all

report.
to

proceed

following;

Bank,

Chicago,

James

111.

Continental

&

to

B,

(Chair¬
Commer¬

Vice-Presi¬

on

amendments
greater

the

which

to

part

5,

and

made

the

Sep¬

important

suggested

Bankers'

cross-examination

G,

Commit¬

by the

of

still

the

The

this

mem¬

and

bank's

is

public.

it

of

loss

of

to

coin¬

are

the

prosperous,

languishing,

the hanker is to

Iiis-customers
from

the

public.

without

aiid

is

The

upon

general

one

active

when

extent

a

.

Congress.

the

the

report

of them

copy

hardships

upon

to

capital

only entails

published

as

commercial. public

benefit;

and

in

upon

business

resources

a

over

proceedings

complete

report.

unwise

chief function

activity

the

a

pending

inflicted

be

in

the

Committee, and

hardships

When

•

of

contained

part
is

bankers

other

are

their

these
the

he

loan

so-that

business.

they
Any

»

legitimate

chan¬

hanker, but also

;.

required

amount

an

which

equal

must

be

This
a

the

to "subscribe

to. 20

to

•

,

per

to

none

banks

of
are

to

be

taken

corporation in

capital

the

but

thus

usual

obliged

Charters

over

which

take

not

because

banks,
a

away

but

a

have

coerced

the

terms

of

make
been

ever

of

the

investment

the

bank

such

as

a

no

the

bill

to the capital

of

one

except

by

reserve

capital,

placed

one-

or

our

in

not

in

the

In

receive

hypothecated,
can

the

only

indeed.

banks

be

subscription,

regarded

under

have

voice

the

property

this

bank

a

over

exercised.
or

be

nature

dis¬

of

a

constitution, Congress
this

summary manner,
charter have been violated
by the

management
the

'

There is

and

limited

very

rights

to

the charter of

because

Federal

their

tlie banks

appropriated

contract, and it is doubtful if, under
can

tile

of

cent,

paid in at once, the other one-half
being
is

representation,

for

solved.

the

part

which

Banking and Currency,

on

Bankers'

can

effects.

banks

minority

The

com¬

of

of

officiaHrecords

The

of'the

shares

business

Bank¬

fully explained to the Senate

member

thorough

and

not

in

the changes

manner

were

each

4,

suffering.

trade

the

Tuesday,

the changes suggested

measure

this

certificate, which cannot be sold, assigned

invited

A

3,

the

on

Committee, the1 hearing being extended

injury

of

before

Senate

explaining

unwise

and

commit lee

the

equally

management of
a

by represen¬

country.

of

the

In

legislation

subject to call.

Currency Commis¬

sentiment

of

banks

at

of. the

the

the judgment

instructed

of

the

form, imposes

increase

half of

country and
were

no

capital

return

August

;

.«The

it

effective
on

the

the

representatives

and

the

'

conse¬

deemed

we

nels

of

representatives

specific

ddys

and

present

withdrawal

changes

which

and

banker

his

sub¬

House

its

feels the ill

may

upon

of

a

of the

annexed

other ,also

in.

the

of

of

approval

for them
was
divided-among the
Committee, there being assigned to each

days.

2,

interests

cident

A

the

expression

Two

Senate

proposed

banks,

clearing house associations, and one-third by the
Currency Com¬
mission,

the

in-

The

V*

States

the

and

reasons

the

subjected to

hereto

for

duty of

Senate Committee

The

provisions.

of

part of

National

by the Conference

September

bill

Commission

held and largely attended

was

the

of

also

radical

meet

clearing house organizations
to

the

consecutive

summarization

foresee,

their

its

submitted

of

interests,

formal

to

to

as

associations

bankers

did

therefore

was

representatives

This

mittee

in

expression

party

a

Committee

features

the hearings

"is

amend¬

judgment,, entailed

our

public

themselves

whole, and

The

bankers'

the

That

making

The

..composed

suggested.

were

was

for
of

additions

this report.

bill

a

in

ruled

were

type.

members

commanded

provisions, as,

made

arranged

of

more

the, bill

of the

bill

was'published

agreed

pending

Chicago, 111.; Joseph Chapman,

The

and

members

bers of

City,

the

These

Currency

been

as

Reynolds, President

was

1913.

bill

or

tee

Association for July,

the

majority

which,. in
to

bankers,

public

as

Chicago.

sion.

and

of

bill. had

approval,

bill

conference

send

for

Bankers

part of

a

the

of

caucus
-

in

report.

of

and

and

amendments

clearly

the

Democratic

omitted,

red

First

M.

Currency

changes

Senator Owen.

Wexler, and

Association."

made

the

seven

Currency Commit¬

McAdooj

the

appointed

Committee, after which

this

informally

Wade,

be

was

Senate

Atlantic

writing.

and

" Work

Bankers

prejudicial

quences

to

American

the

in

Secretary

a' comprehensive

Representatives

the

at

with

Banking and

proposed-

hereto annexed and
When

the

Reynolds,

the

American

mitted

of

houses,

of

the Journal

A

York

views

basis

a

provisions

such

in

and

Bank,

hearing

ing and

five

amendments

submitted

Washington

President, by Messrs.

in

in New

seriatim, and specific

the. respective

is

of

During this conference the various'provisions

were

George

tember^,

of Congress.

of. the

part

commission

Such

was

•

your

as

general

States, asking co-operation in influ¬
adopt the proposed changes.
Said document

to

President

a

Banking and Currency Committee of the Sen¬

proposed and subsequnetly

of

a

1807-1809.—Ed.]

pages

Chairman

made

their

present

and

-

printed in the Chroniclb of June 28,

were

Following the meeting of
an

and

Commercial

Northwestern

A

a

hereto

the

National Bank,
Minneapolis, Minn.; Festus
Wade, President Mercantile Trust Co., St.
Louis, Mo.; 10. J.
Ilill, President National Bank of
Norwalk, Conn.; R. F. Maddox, Vice-President American National
Bank, Atlanta, Ga.; Sol.
Wexler, Vice-President Whitney-Central National
Bank, New
Orleans, La.

proper foundation for currency legislation,
and represent the views and convictions not
only of the bankers,
but of the
commercial
and
business interests as
well.
Said

document

resulted

United

annexed

National

dent

fifteen

Banking and Cur¬

questions

the

committee

man) ;

called

the

for

and

the

also

which

J.

of

thereto.

of

in

oppor¬

Sena.te and House of Representatives,
also

our

submit

replies

proper

the

were

present,

This

;
were

public,

Thirteen

themselves

this

upon

a

committee

Forgan,

therefore

It

Washington and lay before the
proper authorities having Charge
of
the pending legislation
the
changes recommended by the
conference in the proposed bill and
t.o explain the reasons for
such changes.

cial.

the

was

banks

A.

House,

first

work

resolutions

way to be easily and
perfectly
bill, in such form, was printed and

•Wis" hereto

body to place their views

City.

were

President.

document,

Committee

Lower

the

was

Commission

devoted

and

the American Bankers
We

of the

part

reply.

Atlantic

Committees of the

printed

for

bankers

evenings

submitted

formulated

and

18

and

questions

rency

the

on

Cujrren^y

meeting of the

meet

two

the

Committee," but

of

took

of

caucus

should

encing Congress

majority party in the Lower

question before Congress and before

the

A
to

Currency

the

bill,

the

inserted

in

amended

the

the

not only by

upon,

and

of

phases of the tentative legislation, and which

bankers

tunity presented for the
upon

preparation

and

bill
by the Banking and Currency Committee of

undisturbed;

was

and

conference

approval.

conference

matter

explicit

the

to

for

say,

in

be

reported

left

amended

to

included

not

the

Banking and Currency of the Senate prepared
consisting of thirty-three questions, covering

questionnaire,

the .various
sent,

the

of the

that is

measure,

in
en¬

announced.

so

to

House

were

Congress.

the Committee
■a

in

and

were

finally agreed

the

also approved by the caucus

House of

hearing,

•

party

a

committee

was

of

public

minority

the

measure

jority, members

without

was

House

hearings Were had before the currency committee of the

actment

it

as

by the National Monetary Commission, and elaborate data,
together with proposed legislation, by them reported to Con¬

Congress, and the •<" parties having the. subject matter
charge in the present Congress decided to proceed with the

order

intelligently,

time past under considera¬

tion

gress;

conscientious

preamble

workable, and conservative
interests of the whole nation.

V

cur¬

last

and
a

of certain provisions of the
bill, together with
specific amendments to other
provisions, which would,
opinion of those
present, make the measure practicable

the

In

some

in

unanimously adopted by the conference.

and

'

general subject

earnest

resulted

the approval

in

and

accom¬

and

in

spent

which

proposed

subject
•

of

the

were

subject,

/,

,

administration

present

semi-officially

American

the

to

Bankers Association.

provision whereby

a

might refuse to make

pending.measure provides.
bank which subscribes
money

of the Federal reserve hank

liquidation, either voluntary

or

can

recover

enforced.

the
A

saine,

bank

is

given

of

tenth

they

all
the compensation

make
per
the

4

it

at 5

.v-:'

y.v:

ernment.
There

the

however

many

that the Government, that is, the

fundamental proposition

the

V/

A A i '.V

'

..

different kinds of socialism; but,
various theories differentiate, they all agree upon
great

a

are

all banks, all transportation companies—
in short, all
money-making utilities.
This proposition of the
Government to take the bank's capital ,in the manner provided,

facturing enterprises,

carried

Government.

the

There

.

consumed

important and

in every respect.

nently successful

.

provisions of the bill; equally

other

are

at

mittees

-

'

.

l'ar

their effect.

reaching in

We

must

in

act

if

and

for

acquaint

to

the

has

.* \ , • /;,
public prints
of the pending measure are exactly like or
made.

similar

similar
the

the

at

in

the stock of the Central Reserve Associa¬

Investment in

created

was

permissive,
if

same

large

Xationalf Morn tary*,Com¬
mission, the bankers controlled the management of the "Central

have

voice

contrary* investment in the,
bill

of the Glass-Owen

The

guarantee

a

was

controlled

bankers

the

that

fact

the

Central

political

against

two

against

guarantee

a

and

York

it

Jas.

B.

Chairman,

.

.

Nat.

Chase National Bank, New
Bank,

J.

Joseph

T.

for

proper

a

Talbert,

Vice-Pres.

City.

Currency

_

St. Louis, Mo.
The

New York.

National City Bank,

HI.

Drake,

Neb.

_•/:

v..

•

Wexleii,

and

Merchants'

8

Whitney-Central

Nat.

Bank,

Wardrop,

burg,

President

People's

National

Bank,

Pitts¬

at

stake.

on

June

F.

President

Swinney,

First

National

Bank,

Kansas

City.

in

Bank,

At¬

Sartori, President Security Trust and Savings Bank,

Los

lanta,
J.

F.

McCord,

Vice-President

Third

National

Ga.

L.

Rue,

Pres,

Philadelphia

National

Bank,

Philadel¬

and

New

L.

Howe,, Vice-President Princpton

Frederick

E.




Farnsworth,

Bank, Princeton, N. J.

New York, Secretary..
Currency

Comfnission.

at

which

of

who

of the momentous issues
Atlantic City, N. J.,

member of the Commis¬
unavoidably absent)
held at the Waldorf-Astoria

June 22 and 23. and the results of

the

and

on

23d

August,
of

special committees representing
Washington and presented the
the President, Secretary of the

to

Senate and House Com¬
Later On, on the 22d and

the Commission met, in Chicago, the repre¬
Bankers' Associations and Clearing House

from

the

full session

of the

Currency.

State

every

recommendations

sented

to

Chairman

Banking and

mittees

of

visited

commisison

the

..Treasury,

and

Cur¬

every

meeting was

York City,

Commission,

Associations
E.

19,

attendance, a

sentative

phia, Pa.

the

meetings were confided to

views

Angeles, Cal.
Levi

the

large,k aroused

addition to a meeting held at

In
18

in

Hotel,
these

A.

at

energetic consideration of the questions
forceful presentation to the Executive and
to

'

Mo.
Joseph

The banking

the

(with the exception of two who were

sion

I*a.

was

E.

a

at

Legislative authorities at Washington

leans, La.
Robert

and

country

the

of

interests

involved

Or¬

New

introduced

measures

Commission

rency

;• •';

'

Vice-Pros.

business

Omaha.

Bank.

National

indelibly impressed upon

history of the times:

special session of
embodying provisions of alarming, significance to the

currency

Congress,

Inc., Los Angeles,, Cal.

«•

Commission of the Association

of the Currency

the financial and commercial

•

President

activity

Commission'.

during the past few months has been

,

National Bank,

Reynolds, Pres. Continental &' Com.

Perrin, of Perrin, Drake & Riley,

Luther

Sol.

'

*

Chicago,
John

in this .feature of organization, work.

v

Wade, President Mercantile Trust Co.,

M.

realization of the variety and extent of the

embraced

subject-matter

"

George

Associa¬

refer to the issue of the past

to

(September), consisting of one hundred and twenty-four

month

Chicago, '111.,1 Vice-

is now about thirty

month, apd the members of the

requested

earnestly

are

Washington

Journal-Bulletin

the

of

circulation

•

Festus

The important meetings of

connection with pending banking

in its columns, and

thousand'copies each

pages,

First

Pres.

Forgan,

year.

in

legislation. at

currency

The

Chairman.

City,

of the Ameri¬

before been so conspicuously

were given full and
by this means the bank¬
ing fraternity of the country was" directly reached and kept
intelligently posted on the current questions agitated in Con¬
gress with the outcome of which they are so vitally concerned.

incompetent

Hepburn, Chairman of Board,

B.

during the

Commission

prompt publicity

tion

A.

our

as

Currency

and

Respectfully submitted,

■

Institute of Banking has never

for the
timeliness

medium

particular

members and to the members

interest

can

demonstrated

management—
important respects, wherein the pending measure , is lacking.
equally

to

a

as

of

information

of

and

our

Reserve

control,

Journal-Bulletin

the

transmission

monthly

Reserve Banks, and the
proposed measure only provides that one of the seven members
must have banking experience.
/•
\
Association

value -of.

The

is

the Federal

dominates

Journal-Bulletin.

The

:

of these Federal Reserve Banks and
whatever in the selection of the ITederal Reserve

which

Board,

.

their own,

under

management

the

no

the

special

Institute,

the

of

achievements

the

in

factor

a

office As so

application to. the duties of his

acknowledgment is due.

The individual banks have a minority representa¬

compulsory.
in

On the

in

investment

an

investment

an

Reserve Banks

Federal

the

of

stock

was

management.

and

control

that

follows

Association,

the

of

stock

It

Association.

Reserve

e

whose incessant

Allen, the Educational Director,

conscientious

and

with the dictates of their business judgment.

and auspicious meeting,
Institute is more widely and
recognized with each succeeding year.
To

done by the

work

good

George E,

Mr.

attended by. your General

was

This, 'also, was a delightful

increased ardor

with

or

Under the terms of the bill of t

(b)

the

and

1913,

September,

Secretary.
and

American Institute of Banking
Va., on. the 17th, 18th, and

Richmond,

city, of

the

in

of

19th
.

compulsory; banks might invest in the
they might decline the opportunity, in

not

chose,

they

accordance

was

held

was

bill of the National Monetary Commission

the

by

tion

enjoyability.

annual convention of the

The

reason:

(a)

tion

vied'

tendance and

Aldrich bill, do they oppose
so-called Glass-Owen bill?"
This

the

in

Section Was given
8, 1913,
successfully with its predecessors in the" way of at¬

Waldorf-Astoria Hotel, in New York City, on May

the

and

ap¬

so-called

the

p'rovisions

convention

in

bankers

" Why, if the bankers approved

The question is asked.

provisions

such

which

and

Commission,

received on alb hands.

The annual dinner of the Trust Company

A

provisions of the'bill reported by the National Mone¬

to

proved.

is

features

and. State

Banking,

of

their work has

proclaimed in Congress and in the

been

many

tary

Clearing House, Ameri¬
Secretaries—in their re¬
spective fields.
The momentum imparted to their various
activities the previous year has- carried them along with grati¬
fying success, and their usefulness, as adjuncts of the general
organization, has been attested by the genuine appreciation
Savings Bank,

Company,

Institute

can

bill we

the provisions of the

that I am able to record the

efforts on. the part of the Set\

excellent and indefatigable

tions—Trust

premises,

the

our

changes which we think ought to be
that

own

our

Sections.

•.

the greatest pleasure

with

is

most

where we
protection.

respective representatives, in Congress
fact, and clearly point out and impress upon them the

ought

It

point

a

conclusions, in

our

with

satisfied

not

are

we

reach

must

we

and

interests

own

our

Individually

reached

have

that we

fact

the

the .banks

It

impress upon

provision of the pending measure, in order to

that

of

confronts us as to

which

condition

the

recounted

have

largely

transacted by the com¬
their sessions on May 5, and by the Council, which
the remaining two days, and the meeting was emi¬
of importance was

Business

attended.

proposed action on the part
:
v
!
'

hard to accept and ratify this

very

May 5, 6 and 7, 1913, was

Briareiiff Manor, New York,

the

on

.

Council, held, at Briarcliff Lodge.

spring meeting of the

The

>

far as the

so

Council.

Executive

part of.
For those who do not believe in socialism it is
this contention

concerned,

are

socialists.

the

would easily accomplish,

extreme,

banks

Naional

of

the

to

'

the briefest way.

summarize the work in

to

all the real estate, all manu¬

community as a whole, should own

^

,

General Sec¬
retary of the American Bankers Association for the fiscal year
ending August 31, 1913.
§
Concerning the general affairs of. th^Association during the
past year I refer those interested in detf%d information to the
formal
reports
already submitted by other officers of the
Association, its sections or committees/or which shall be made
during the sessions of the Convention.
It is my purpose only

cent, next year,

per

'

;

respectfully submit my report as

I

Gentlemen :

per cent, this year* they may
and 3 per cent., 2 per cent., 1
cent, or nothing—a very simple and easy process whereby
entire capital of the banks may be transferred to, the Gov¬
fix

can

Bankers Association:

The American

1913.

New York City, October 4,

-

;

until the
transferred to the Government bank.
If they

appropriate one-tenth next year, and so on

is

of the General Secretary.

Annual Report

the manner provided by this bill,

bank's capital in

a

may

capital

•

the

If

earned.

5 per cent, upon capital sub¬
Government can appropriate one-

of

return

maximum

a

scribed—if

127

SECTION.

BANKING

Senate

of

part of the ' Union,, and
that

Conference

were

the findings

not

only pre¬

Committee on Banking and Currency in

by a special committee

appointed by the Conference

128

for

BANKERS'

that

being

States,
The

throughout

broadcast

spread

were

Letters

the

mailed

both

to

members

detailed

work

banking

every

of

and

non-members

Commission

the

in

institution
will

forth

in

matter

do

that

no

than invite the attention of the Association to

piore

most

interesting and

illuminating chronicle of

Total

(mail

of

second,

third,

The

members

of

given the utmost
of

work

tective
their

The

J.

Standing

to

to

National

of

Committee

W.

Gammon,

this

the

branch

its

the

The

formal

report
than

more

Protective

covering

usual

Committee

has

record

served

tiously for four years, and
tion of

its

Our

13,727

...

11,552

.V....

1.239

multigraphed..........

under

*

■,

Total

of

Sections.

•

Total of First-class Mail

should

Matter...........

30,330

Second-class Mail Matter.

Grand

Total

464,044

re¬

.Membership.

conscien¬

and

At the

/

close of the last

fiscal

year,

v

August 31,

on

membership of the Association numbered
of the current, fiscal
net

a

The Administrative
entrusted

the General
of

to

Committee has faithfully guarded the in¬

it,

and

has

unfailingly

co-operated

with,

the Association.

in

protecting

"

the

work

allotted

them

to

year

the

fact

respectively.

Association at
of

that

that

at

time

,,.;c,

there
were

I adverted

only three States without

Hampshire have revived

Association, which had lain dormant for twenty
30th

of

the Association of that State.

single State—Rhode Island—without

kind, and it is believed that it will be
time before that

or¬

their

and

years,

on

State will

awake

to

an

organizations

The General
as

matter of only

a

the

a

importance and

neces¬

throughout

the

Union,

representing

forty-

September

August 31st, and a handsome balance

Secretary has

and

cause

lowship

which

followed

his

policy

of

the

13,323

.

.;

,

744

.

1913, New members joined during the year.'...

♦Regained members

August 30,

,.

(secured from

the

:.„

12,579

1,136

above).............

385

1,521

1913, Total membership

14,100

A

net

A

net loss

for

the

year

in failures,

A

net

for

the

year

in

exists

between

increase for

loss

the

local

the

fiscal year

of

....................'.

consolidations,

177

..

359

Making the actual gain In
*

From

new

members,,.

It will be observed that the loss
a

1,136

from delinquents is exceedingly Small,

percentage standpoint it Is the lowest1 In the history of the Association-

membership of 13,323 at the beginning of the

a

a

organizations

The

ship

aggregate

amount Jn

The

capital,
round

membership

creased

follows

as

surplus

numbers

and

and

to

about

of

resources

:•

-

deposits of

year.

the

our

member¬

$15,000^000,000.
Association
'

-

have
-

in¬
■

"prototype.
Paid

Legal
General

777

182

etc......

delinquents.,..

attending,

maintaining and advancing the spirit of fel¬

happily

and their national

Counsel

the

of

Association

has

been

markedly

opinions, attending State

Conventions, assisting committees, and in the discharge of the
duties

of

his

Membership.

Annual Dues

Department.

zealous and efficient in the rendition of

other

in

Treasurer's Statement.

1, 1912, Membership...............................

August 30,

being 177 out of

practicable, the annual conventions of the State Asso¬

common

many

the

short

ciations, keeping in touch with their work and aspirations in

The

of

1912..,..

withdrawal..,,.

This will leave but

organization of this

eight States and the District of Columbia,

far

condition

♦Erased from the rolls through failure,
liquidation, consolidation and

sity of perfecting an Association, thus completing, the system of

so

financial

time, all bills being paid to the end

September last the bankers of Delaware took steps

to re-establish

,

the present

'

to

forty-six. State Bankers'

were

State

New

close

the

Membership.

then, the bankers

of

1912, the

At

following tables will show these facts

the* excellent

shown by the

as

Their

Since

State

The

also

the fiscal year,

Treasury,

August 31,

making my" last annual report,

in

ago,

Associations, and that there

a

and

.

ganizations—Delaware, New Hampshire, and Rhode Island.

the

gain of 777.

detail,

13,323.

August 31, 1913, it numbered 14,100,

year,

speak for themselves.

State Associations.
A

in

Secretary in the prosecution of the executive work

The standing and special committees have been
equally active

reports

38,080

7,750

Standing

Committees.

terests

425,964

..........

entitled to the fullest apprecia¬

are

the Association.

44,230

...:

...........

benefits.

present

faithfully

us

355,216

matter..'.y.'.V: *,:A-

the

unqualified

the year

of

consideration.

399,446

.................

•'

Association

.i.............

.

Total.......,.,.......... 1......

•

ceive

matter)

i;

and

the Pro¬

manager,

fullest

of

have

to them, and

15,979

.

Pamphlets.,...,........ /......

"

Detective Agency,

vindicated to

has

members

our

Protective

duties assigned

the

Burns

Department, and L.

supervision,

value

the

care

W.

Committee.

Protective

16,238
typewritten list,

as

and fourth-class mail matter...,.......:..

mall

Express packages....
Letters, printed

Standing

letters, such

etc..........

Total

Total of first-class

its doings

V

during the period named.

than

its

Report to the Convention at Boston, and the General Secretary
can

other

printed programs,

Association.

set

be

12,013
....

First-class mail

the United

this

of

...

Circular Letters

printed pamphlets containing the action taken at Chi¬

country,
cago

but

purpose

CONVENTION.

office:

The

encomiums

which

September 1, 1875

1,600

$11,606.00

September 1,

1885

1,395

10,940.00

September 1, 1895

1,570

12,975.00

August 31,

1905

•7.677-

August 31,

1906

8.383

137,600.00

9,251

150.795.00

9,803

162,507.00

127,750.00

have

August 31,

1907

quarters have been sincere and well deserved and

August 31,

1908

testify to the importance of his work and the fidelity with which

August 31,

1909

10.682

175,352 00

it has been performed.

August .31,

1910

11.405

188.934.00

August 31,

1911

12.072

come

'

from all

Library.

•

The

of

success

two years

culation
year,

library Department established less

than

aloiie, surpassed

shown

by

the

our

expectations.

2,400

report,

pieces

of

During the

material

answered

were

with

literature

1912

13,323

1913

14,100

Interest

on

Bonds

Interest

on

Bank

of

telephone,

by

this

went

the

the

by

Department,

coupled with

an

the Librarian

in charge.

of

task

enthusiastic

letter,

and

building

involving

pride and

otherwise.

the

up

198.530.00

213,752.50
(estimated)

226,164.00

Corporate Stock..

$4,730.00

.........

1.900.00

1913........,...

Making total income, year ending August 31,

part

226,164.00

1914...

$232,794.00

Membership

by

Years.

of

*

Gross Loss by

Routine Work,

...

(estimated)...

dues, August 31,

research,

the

on

And

Estimated annual

permanent

painstaking

loyalty

and

Balances

were

loaned to bankers in thirty-seven States, and
every day questions

along

August 31,

August 31,

has, in the practical benefits conferred by its cir-,

ago

feature

as

the

Failures, Mer-

,

Net Loss.by

Failures,

Gross

Net

Gain

Gain

,

Year

The volume of

the

following

the General Offices will appear
by reference

statement.

This

is

exclusive

of

the

matter

issued by the various committees.

During the fiscal year just ended there has been
the

General

•

letters, circulars, documents, and other printed

matter sent out from
to

Membership

Offices

than

more

464,000

letters,

sent out from

circular-letters,

ger, Delin-

Merger, Delin¬

quents, &c.

quents, &c.

2,813

371

982

611

1898

3,424

248

783

535

1899

3,915

211

741

1900

4,500

234

819

585

1901

5,504

200

1,313

1,113

1897

;

530

1902

6,354

186

1,159

973

1903

7,065

313

1,139

826

ing statement shows the volume of mail and express matter in

1904

7,563

500

1,120

620

detail:

1905

7,677

1.038

1,152

114

1906

8,383

337

1,043

706

Quantity

1907

9,251

434

1,302

868

336,721

1,243

552

1,639

879

documents,

Proceedings,

Journal-Bulletins,

etc.

The

follow¬

Article.

Journal-Bulletins J

including

of A. I.

those

Codes..

B
..

Signs
Lists

of

.

Members

Packages.

1908

9,803

1,308

1909

10,682

760

374

1,442

1910

11,405

781

298

1,504

15,472

1911

12,072

1,304

405

1,971

667

273

1912

13,323

79p

330

2,041

1,251

1913

14,100

744

359

1,521

.777

'

■




'
.

;

.

"

691

...

'

18,495

.

723

BANKING
Membership

Spates

of

Territories

and

Having

Less

SECTION.
of this Association

than

Members.

100

129

to

will feel that to him we owe a debt
scarcely
discharged by k formal expression of their gratitude.

be

William

B.

.........

11

Canada

44

Arizona..............

.........

64

Cuba.............

24

Green died at his home at Avon Lake
Village,
Lorain, Ohio, in the early part of August, 1913.
He was
sixty-seven years of age. ' He was Secretary of the American

Delaware

.........

35

Hawaii

15

Bankers

.........

28

Isle

(As ol August 30,
Alaska

.....

Nevada

1913).

near

of

Pines..

2

New

Hampshire.......

.........

57

Porto

New

Mexico.........

.........

65

Mexico

.........

46

Philippine Islands

Island

Rhode

Utah.

>.

.........

71

Vermont,............

.........

72

Wyoming....

......

20

Secretary he

Of

the

Currency, Washington, D. C.

for several years previous

and

3

1887-92, and before accepting the position
Chief of Division, Office of the Comptroller

was

ing.

the time of his

At

thereto, he

:

'

Appreciation.

y*;."j

,

.

640

Total.........

The

General

recording

Membership.

Secretary

the

again

assistance

and

the heartiest

takes

courtesies

received

pleasure In

by

Banks

State cr Territory

Nat'l

Alabama.............
Alaska

in

Association, August 30, 1913.
Private

78

2

...

of

State

56

Trust Co.'s Sav.Bks.

2

8

23

3

227

Mr.

33

76

582

volved the

17

8

219

them

8

33

48

171

1

11

5

7

192

272

9

106

79

9

Connecticut....

71

11

Delaware.......

20
2

109

6

9

291

7

18

Idaho...............

"

18

'

.

*

2

35

15

41

9

1

129

65

33

881

to

the

pay

given

support

the

of

148

40

48

2

385

130

52

14

174

546

379

1

4

,

3

554

to

work,

wish

I

to

:

1

22

4

170

24

5

192

having been held there in the

Maine...;......

50

0

1

30

21

102

in

Maryland............

79

31

25

19

28

2

28

91

317

83

150

48

8

146

435

....

170

230

9

4

6

419

Mississippi.....;.....

32

123

Missouri..............

90

342

Montana.............

49

106

143-

Nebraska..

Nevada..,.

0

•

15

183

year

$il,337.50.

6

2

359

given

up

1

0

28

4

40

1

25

New

Mexico....

33

New

York...;.......

■

•

0

4

12

57

3

91

17

313

20

1

9

2

248

r

as

2

0

177

reported

membership

16

Hampshire.,;...

beloved

173

204

Jersey.....

was

much

opened

523

8

New

great and

Brooks,

3

18

.

65

•

the

.Will

Murray,

of

Louisville,

173

91

90

980

72

1

24

5

156

attendant

at

172

0

3

268

seventeen

bankers

»65

51

555

President.

0

11

378

toga

Springs, in 1875,

then

Cashier

117

64

72

13

13

523

81

58

178

Oregon...

Pennsylvania.,.....;..
Rhode

Island...

South

Carolina

South

Dakota

17

2

.26

109

.73

164

2

'

3

*

102

*

1

*

5

167

35,

875
-46

19

6

1

9

14

159

3

6

6

252

At

dent, and
and

our

of

first

the

from

participated

in

3

66

9

307

devising the plans

26

43

0

449

organization in which

35

4

4

6

71

0

0

20

14

72

93

92

11

12

7

215

Virginia....'
Washington

73

West

76

Virginia.........

Wisconsin....

186

24

25

7

315

85

2

.16

5

184,

2

10

17

'

112

202

Wyoming............

30

43

v.;

.

343

1

0

24

6

.2

3

0

15

1

1

0

O

01

0

3

1

0

0

4

0

19

1

0

0

20

,0.3

5,083

5,728

,

2

0

0

0

3

926

1,270

1,093

14,100

In

The

Association, during the past

the

death

ministrative

paid

Memoriam.

his

to

of

its

President,

Committee
memory

on

met with

year,

H.

has

arranged

the

opening day

that

the

Convention

city

of

Philadelphia,

on

September

Association, Mr. James T. Ilowenstein.

achievement
to

Suffrage

get

first

seventy-one
his

their

well?

18,

in

Seventeen

tion

was

to

of

Doubtless

heretofore

chosen

was

as

Sara¬

B.

Hall,
Presi¬

take pride,

To

the

of

largely

the

in

imposing

at the very zenith

now

obligations

gave

the

reared

their

we

best

Association,

to

owe

thought
must

we

the

and
now

in

which

they have worked to render
Without in any way

been

during
week, and to the Association, as a Whole, the most
profitable meeting in its long career.
To the
Clearing House Association of Boston and its Associated Banks
Convention

enjoyable

—to

and

those

who,

individually,

have

as

unremittingly

express

our

sincere

committeemen

labored

for

appreciation

Fred.

„

E.

and

months

and

Respectfully submitted,

in

in

other
be¬

our

thanks.

•

.

Farnsworth,
General Secretary.

at

his

calling

of

bankers

being

with
their

the

held

in

idea

that

tribulations

so

together

St.

a

at

women

and

what

Woman's

Louis

if

devise

this

in

mind,

1875,

bankers

at

attended

he

called

Barnum's
this

a

meeting of

Hotelih

conference.

The

arranged for the July following, and
Mr.

the period

Howenstein

of




acted

temporary

as

one

New

that
could

means

first

was

of

organization.

bankers
York

the

as

to

City.

Mr.
as

Secretaries

member

of

the

executive

President

your

:
In submitting
this,
Treasurer, I wish to express

members of the American Bankers'

collectively, for the honor
do

I

your

E.

desire to

Council,

most

Farnsworth, and the

with

the

ably

it

more

tures

with

is assumed

financial
of

assistants

co-operated

or

less

such

with

interested

statement,
the

various

It

competent

that each

and
in

showing
sections

sincere

upon

General
in

and

to

the

extended

me

Mr.

by

Fred

his office, who have cheer¬

your

Treasurer

has been

a

affairs,

in

connection

real

pleasure to be

'

"

men.

its

last, Report

thanks

Secretary,

every member

the

the

and particularly

me;

many courtesies

efficient

duties of this office.

associated

is

and

my second and
my

and

:

Association, individually and

conferred

acknowledge the

able

very

fully and

conven¬

attended by

Every

Members

the

American Bankers' Association

well

world.

the

in

September 3, 1913.
To

other

no

activity #ill

inspiration in 1875 from

was

discuss

May,

bankers.

during

Gage
at

Charles

contributed

been

there

1912,

betterment, why would not this apply to bankers

With

held

which

as

convention

impressed

was

years

memory

national

meeting,

He

together

for

332

his

Ilowenstein received his

time.

be

of

perpetuate

the

became

Mr.

Mr.

Report of the Treasurer, J. Fletcher Farrell.

the

serve

and

has

forever memorable.

Ad¬

passed to the Great Beyond the Father of the American Bank¬
ers

Bank,

regular

of the original

one

succeeded

fitting tribute be

a

of the

a

the

Logan

entertained, it is but .the truth to
that the preparations made for the
impending meeting will
insure to every guest the fullest
measure
of happiness

Boston.
In

all

we

manner

loss

severe

a

Huttig, and

still, and

by

say

half—we

Charles

passed
Mr.

Hon.

Sev¬

currency.

minimizing the superb hospitality of other cities'by whom

capacities,

•

in

generous

have

we

which

establishment

way

4

..

the

44

Hawaii

Philippine Islands..,

and

largely

gratitude to the Boston people of to-day for the assidu¬

0

3

;...

ous

us

banker,

unselfishly

0

2

19

Rico.

in

our

who

this year's Convention

42

Mexico.....

bankers

add

was

year?

was

meeting,

a

were

this

with

National

greatness.

79

1

Porto

effort

and

0.

0

Pines.

power

5,

Canada......,......**..

of

its

Boston

is

Boston

a

total

previous

Convention, which assembled

upon

1

Cuba..'.,.

Isle

of

itself

repeat

first

as

questions

deliberations

its

159

,

the

Convention

of silver

these

Boston

130

22

for

truly formidable array of financiers from that city
other parts of the Commonwealth of Massachusetts

70

38

attendance

a

250,

Utah.....

The

banking and currency legislation,

who

the

at

the

Tennessee............

Vermont....

regard.

At that time the

conventions, and who'

Texas......,.....

„

of

Rev. Dr. Phillips

prayer.

the

value

on

history

90

of

of

the

ringing resolutions,

54

192.

time

to the discussion

Convention,

with

banks, and the income

The

gold standard and

eral

C.

hundred and fifty.

Dakota........

174

the

Farrell,

of Associa¬

range

apostle of the Gospel,

one

1,466

was

Carolina.......

220

of

Treasurer

to

to

kind

.

Convention

North

Ohio..,..

the

administration

assurances

the

North

Oklahoma

for

year 1886.
At this Convention,
.1886, Hon. Lyman J. Gage, President of the Association, pre¬
sided.
The meetings were held in Horticultural
Hall, and the

32

36"

New

378

46

23

11

......

'

the

Boston.

1

182

de¬

year

coming Convention of the Association, the thirty-ninth in
its history, will be the second held in
Boston, the previous one

74

-

Mr.

Council,

The

130

150

Executive

esteem

my

And

similar

express

32

Minnesota.."

Vice-President,

the

Secretary Fitzwilson, to everyone, without enumerat¬

69

Massachusetts........

in

me

Kentucky........

Michigan............

of

Association.

Louisiana...,.

■

the

friend, whose

Administrative Committee, and

tribute

.

.

The death

Davis, during th£ later months of the

affairs

Assistant

First
of

tion

1

222

167

prompt

the

Chairman

entire work of the

desire

general

Upon

the

valued

ing each by name, embraced within the wide

73

176

I

J.

all.

and

and

176

250

147

Thomas

and

by

Reynolds,

trusted

most

412

45

Kansas

Arthur

activity.

connected

Huttig deprived the Association of

a

3

311

Indiana

H.

of

14

-

Illinois

Iowa............'...;

deplored

28

California

Colorado.............

82

is

11

2

49

loss

64

0

in its various lines of

Charles
advice

166

1

33

156

Georgia

President

services and

0

12

38

Florida..............

the Association

Tota

7

1-0

Arizona

Arkansas.............

District of Columbia. .12

with

from

him

the, various officers, committees, sections and others
Division of

death,

engaged in farm-

was

.

,

79.

.........

4

Rico,

Association

of

apd

particularly

appropriations
Committees.

,

of the Association

and

the

expendi¬

BANKERS'

130

to bring to your attention a

therefore, desire very briefly

I,
few

the

of

of

member

usal.

;/

Cash

Balance,

Receipts,

Total

Expenses,

September

hand

current

for

year

R.

C.

Joseph

Waype,

1913,

August,

from the General

Treasurer received

your

and.eighty-one
membership dues,
aggregating $221,645.00—all of. which have been forwarded for
thousand,

thirteen

Secretary

(13,681)

drafts

These

collection.

drafts

in accordance with
a

of

account

on

six

hundred

the

current

K.

very

small percentage have been collected.

The

surplus, funds of the

and

bonds, which

'

R.

:

of

4

Topeka & Sante Fe 4

Burlington

Chicago,

$30,000

Conn.

Boston.

Mass.

&

cent.

Bonds of 1949.

New

York

financial
much

observe

Committee.

man

appointed
other

term

The

the

better

it

know,

Finance

has

expiring

resignation

fiscal

and

Association

in

in

submitted
the

at

four

J.

President

Sands,

•

Committee.

American

National

H.

P.

Beckwith,

E.

Dunlap,

Vice-President Northern Trust Company.

President

Citizens'

Council, acting

National

New

the

time, is

to carry over

of the

the desire

with

Secretary

requested

was

to

This has been,

the Constitution

of

hundred members, formed

one

Wyoming,

and

Utah

Vermont.

New

and

Nevada.

and

Mexico.

\

this amount and paying our regular

ending August 31, 1913, leaving us with all bills paid
Bankers'

Association

is

growing

and

great

a

This has been

members,

-success.

for

bespeak

I

and

the

'

;

officers

incoming
:

greater

' '•

.'v

Respectfully submitted,

Wyoming,

duly elected

was

Vacancy

A

election

the

tion

of

Mr.

Arthur

having

D.

nominated" Mr.

H.

Mclvee

Administrative

Committee

Mr.

Rey¬

the Council.

make pre¬

empowered to

was

of

Associa¬

be

to

nolds' successor, and Mr. McKee was duly elected by
The

through

Vice-Presidency

the

to

Iowa,

in

occurred

Reynolds

the members of the American Bankers'

State

that

Council

the

on

of

the Association,

liminary arrangements for the General Convention of the Associa¬

George Woodruff, of Joliet, 111., was added to the Commit¬

Mr.
tee

Boston, and to secure accommodations for the officials.

in

tion

Agricultural

on

Council,

The

accomplishing much good for all.

for the posi¬

tion, of member of the Council from Nevada, Utah, and

amounts

fiscal years of 1911 and 1912, aggregating

brought about by the hearty co-operation and active support of
its

Texas.

States:

Hampshire

Arizona

that

present

bills against the Association,

American

N. D.

Fargo,

Waxahachie,

Bank,

under the provisions

the following groups of

good cash balance on hand.

The

Va.,

Richmond.

Bank.

.

O,

As you no doubt

years.

accordance

General

Cleaning up

organization,

Sherman's

Chairman.

with all August bills against the Association paid the

year

a

being

Committee, there

said committee by virtue of Mr.

Insurance

Corporation' Stock,

herein

report

been

the

which belonged to the

$17,088.10.

the Chair¬

accepted, and

was

Insurance

member of the Council:

as

:v.'.

done, and after September 1, 1912, the Association paid

expenses,

would

Committee

Revision

-

policy of the Association

ye^r;

each

Committee,

all August

secure

the

the

the

been

bills

unpaid

of
it

than

has

pre¬

him in connection with his work

upon

following

vacancy on

Illinois Division,

Quincy

Registered

City

from

condition

D.

Committee,

Mr. Frank Knox, of Utah, having been nominated
will

N.

Fargo,

due 1940.

3i per cent,
You

Ga.

Atlanta,

Bank.

Bank,

Insurance

Constitutional

the

relating to States having less than

cent. Bonds

per

1995.

per

National

Commercial

Pa.

Hartford,

Bank.

from that committee, with the explanation

devolving

of

Company,

National

Fourth

Vice-President

Philadelphia,

Bank.

Trust

First

James. Chairman of the

ance

The

Burlington & Quincy, Joint 4's of 1921.

Atchison,

$50,000

E.

Hartford

Vice-President

the duties

Oliver

for the credit of the Association's

your Treasurer

$12,000 Chicago,

$30,000

South

Bank,

preclude his giving the requisite time to the work of the Insur¬

these securities

on

The securities are as follows :

account.

Ottley,

Macfadden.

Chairman

one

■

the interest

collects

Company

remits to

and

;;V-:

•

Savings

Joseph

National

Girard

Vice-President

of the Executive Commit¬

,

Trust

The

•

Association are invested in stocks

of New York City, under control

pany

all but

that

St.

Francisco,

Sao

Bank.

deposited with the Bankers' Trust Com¬

are

tee.

which is

dated September 1, 1913,

are

constitution, and at this writing

our

Cashier

President

Muir,

sented his resignation

as

National

' ■ "'r-

Vice-President

Jr.,

Cutler,

W.

C,.

First

yiu-i:

■

Ind.

W.

John

W.

Vice-President

-.'.X''.:

Stephenson,

Bend,

Mr.
In

Lynch,
'■

Downie

233.362.11
<5,479.29

1913

1.

September

Balance,

K.

Cal-

Ralph

$3,992.88
234.848.52

1912.........

1,

James

per-

.',V,v•

v."A

the year......

for

Credit

Report careful

the

give

.•.,■

■

on

Total

Leaving

would

Association

the

if each

important items, and would be pleased

most

CONVENTION.

preference for Ilot Springs.

place of meeting, provided

Va,,

for

and

terms

a

could

made with

be

Education.

Financial Development and

and

by vote, expressed a

the

satisfactory arrangements
January succeed¬

In

hotels.

ing this date, at a meeting-of the Administrative Committee, the
Secretary

of

Briarcliff

had

the

Association

reported

offered. much

the

City and

Atlantic

that

terms

same

Hot

as

Springs,

with some conditions from Briar Cliff particularly advantageous

"

J.

Fletcher

Farrell,

;

.

practically

American

the

vote

as

tion

of

proceedings of the meetings of the

Executive

Council,

Convention,

have ap¬

peared

the succeeding issues of the Journal,. and

therefore

in

much of the report

since the

last General

submitted herewith is matter with which

for

formal report, I apprehend, for the rea¬

proceedings

completed

may

in

appear

Detroit, the Executive Council .met and completed its

ization

organ-,

T.

*.

General Secretary.

1..

Treasurer

Assistant

J.

Fred

•

f.....

Fletcher

J.

William G.

Secretary

at

Briar

Cliff

Tues¬

On May 5. pre¬

respectively.

the Convention.

Their vari¬

in the May number of the Jour¬

that it is only necessary to refer to them by captions.

Committee, relative to proceed¬
1913, in the office of the late

ings, of that body, held January -7.

Iluttig,

II.

St.

of

Louis.

the

General

the

Treasurer,

of

the

General

J.

B.

Thomas

Protective

Chairman.

Chairman.

Fletcher .Farrell,

Counsel,

Report of the Standing

E.-Famsworth,

Fred

Secretary.

of

Report of
Report

Farrell

held

was

meetings were held, at which
prepared their respective reports for

Report of the Administrative

Report

Farnswor^th

Council

the

reports appeared, in detail

Chas.

Davis

E.

of

committees

various

by the election of officers as follows:

Chairman...,.

meeting

submission to the general session of

nal, so

Immediately after the adjournment of the General Convention
at

take a referendum

to

ceding, the Section and Committee

connected

form for consideration by the members of the Convention.

of

members of

the

the place of meeting.

Briar Cliff as

day and Wednesday, May 6 and 7,

ous

the

that

Secretary was directed

for

Lodge, Briar Cliff Manor, as indicated, the sessions lasting

the

the Chairman to make a
son

hotel

the

preference of the members, resulting in the selec¬

spring

you

However, custom makes it obligatory

already familiar.

are

of

use

Bankers' Association:

The principal

:

exclusive

The

the

to

The

Gentlemen

the

Council.

the

Report of Executive Council, T. J. Davis, Chairman.
To

comfort, of the guests, consisting, among other, things,

the

to

Treasurer.

President.,,

Paton,

Committee.

L.

Gammon.

W.

Man-

Fitzwilsok
ager.

Counsel....................... Thomas B.

General

Paton

Seventy members of the Council remained Over from the Con¬
vention, which
affairs

of the

The

Finance

appropriations

1912,

evidence of unusual interest in the business

gave

Association.

the

for

that the

taries be

one

Council
was

on

hundred

offered

Association.

Revision

The

by

of

a

by

so

National

him

as to

The

the

Banks,

that

also

the

Savings

the

American

Section,

Bank

Institution

O.

A.

Cutler, Chairman,
Chairman."

Wilson,

Banking,

of

A.

F.

Crandall,

Chair-

man.

of

Report

President.

Macfadden,

C.

W.

the

Committee on

Bills of

Lading.

the

Committee

Cipher Code.

Clay

II.

Hollister,

Chair-

man.

1,

recom¬

Report of
of

all

which,

on

James

M.

Donald.

Chairman.

by resolution, wore received and filed.

memorializing

Bank

Section,

provide for

a

was

and
be

a

Executive
resolution

amended

Convention

by-

National Bank Section in
referred

to

the

Committee

at

its

session

a

Committee

Association,

and

immediately

following

was

galley

proofs

mailed

the

committee

was

ap¬

the

Committee

the

Revision

to

of

There was much discussion of this report.,
in the May Journal bulletin, and

of the report were ordered to be struck off and
members

the
the

of

discussion

following

resolution,:

Resolved,

That pursuant

request

of

the

be

program

for the amendments

last

annual

to the

directed

Secretary

convention

the

on

to

At

the con¬

Council

adopted

Council.

Executive

the

of

Committee

General

the

Constitutional

on

printed

ordered

which

"

Programme for the next Conven¬
the

Constitution.^

the

of

of

tentative draft of the proposed changes and amendments

a

clusion

by Mr. J. K. Lynch, of San Francisco,
on

read

ap¬

„

pointed by the Council:




the

Chairman

The

petition signed

Constitution, which committee had been

the General

providing for
the

a

the Constitution

resolution

A resolution was offered

of

September

Committee

preceding.

tion

recommending

commencing

year,

Richmond, Va., presented

National

establish

to

duly

pointed

report,

Report of
Report of

Ralph ;W.

printed in the Annual Year Book of the Association.

regular process,
the

its

proceedings of the meetings of the State Secre¬

Mr. O. J. Sands, of

by

fiscal

$181,410.00.

aggregating

mended

submitted

Report of

Trust

Report of the State Secretaries,

■,

Committee

Section,

Company

the

subject,

the

provisions, of the Constitution and

Revision
arrange

the

of

for

a

Constitution,

proper

place on

the
the

proposed by the Committee appointed by
that purpose, and that all measures

for

1

BANKING
required
In

be

with,

complied

the

that

proposed

amendments

be

The

placed

Act

of the next annual convention."

place on the program

proper

SECTION.

The other committees reported were as

131

authorizing

NAMES

Federal

Commission,

Finance

Jr.,

Forms

Chairman.

Insurance
Law

Arthur

Committee,
on

E.

Chairman.

Swinney,

F.

Reynolds,

National

for

'■

y'-';;.'V.

Chairman.

The

State

New

Banks,

John

M.

Pierre Jay,

Sands,

Counsellor

America,
Committee

Albert

Program

on

Chairman.

Deep

Commerce

United

States

for

Boston

Convention,

James

of

sincere

a

desire

by the

the

on

members in

Yv "Y:-

for

mittee
your

banking fraternity at large.

Respectfully submitted.

'

-

T.

J.

yY

■

of

y

Davis,

of

State

Constitution,

in

given

the

Law

Section

three

Committee

has

Article

of

during

the

IV

past

urged through State Bankers' organizations, the enactment

year

of

authority

approved drafts of State legislation

jects:

y;X~"
1.

Uniform

Negotiable

2.

Uniform

Warehouse

Uniform

Bills

4.

False

5.

Derogatory

,6.
7.

Liability

0.

Payment

for

of

Payment

Deposits in

Credit.

proposed

laws

Forged

Raised

or

Checks.

for

V

with

their

of

also

annotations

enactments,

of

previous

of

the

lading,

Bills

tures
been
and

in

convened

Secretaries and
Associations

eleven

in

prepared

were

Legislative

41

States

by

Committee¬

whose

during

1913,

and

legisla¬

they

have

supplemented by printed literature, general correspondence
in

certain

mittees

of

Your
ments

cases

State

personal attendance of counsel before

legislatures in

Committee

is

to

the

report

As

South

Vermont.

South

\

following

New

At

the

Act

'
to

punish

two

passed in:■

-.j

passed

in ;

.

-

FOR

v

CREDIT

why

-

draft).

punish DEROGATORY STATEMENTS AFFECT¬

sociation
Indiana

Maine

tion

the

giving

FUNDS passed
from

As¬

CHECKS

of

-;i'";

from

YY

Texas

(different

from

As¬

draft).

draft).

that

Utah.

was

WITH

EXPLOSIVES

passed

fixing the liability of banks for payment of FORGED
CHECKS passed
*

the

States

and

main

corre¬

aggregate
by

twenty

this

States

Act.

rules

befofe

in

Act
of

the

of

Counsel

has

year' by

the

act

that

of

for

proposed

the

last

full

in

the

suggested

any

to

were

was

the

of

the

of

to

the

desirability

down.

lov

Lading.

the

Act

or

were

to

cover

Commissioners

of

of

number

a

sentiment

might

voted

reasons

Commercial

Law

of

the

of

con¬

sufficient

im¬

at

the

be

derived

would

be

would

result

by

which

others

and

pamY

Committee of

a

August,

uniformity

law

special

a

Instruments

on

the

Insular
Panama

correspondence.

as

States

which

from

amendments

amendments

in

amendments

advantage

the1 detraction

the

it

Ver¬

Missis¬

the
the

and detailed

before

conference

Committee

discussion

present

and

Maine,

of

passage

Negotiable

Montreal

the

by

the

apparent inconsistency,

some

annual

held

the

passing

in

advantages

the

combined

Alaska,

distributing

attendance

recommendation

thought That
by

correct

Laws

after

of

territory,

of

Dakota

extensive general

an

sections

proposed

none

call

of

suggestions have been made

and at

But

its

personal

and, by

was

one

during

possession

co-operated

less

uniformity

Georgia,

territory

preparing and

in

merchant

State in the Union with

every

Isthmian

law

result

a

South

California,

the

and

jurisdictions

which,

the

States,

As

Minnesota,
of

■

and

complete

eleven

passed

law

Texas,

Rico

State

States

tlie

Y

in

:

of

not.

present

and

time;

accordingly

recommendation
Uniform

in

the

Uniform

measure

Bills of

the

advanced

by

banks

on

the

and

the

with

by

in

General

Bills

of

of

and

in

Act

end

the

in

1908

Commission

the

the

ten

that

securing

" Order

words
States

Counsel

Lading

progress

the

four

The

Commerce

Interstate

bill

the

to

state,

protected.

of "

passage

States,

of

a

printed

special

Bill

in

of

1910-

indicate

the

heretofore made by the Committee

Lading of this Association; and although national legislation

subject

Senate

by

enactment

successful

of

national

adequately

Order

the

drafted

statute

of

Representatives

be

be

annually

are

Lading call for constant and persistent effort

laws,

may

1909

to
-

value

thereon;

the

\

Bills of

satisfactory

great

which

values

promotion
for

the

Lading

(

six

time

were

Body:

holder

on




have

Maryland,

enacted;

security of Order

on

Vermont.

supple¬

co-operative
an

of

States

Instruments

the

possession.

Bills

Dakota.

RAISED

forty

year

Negotiable

States

ambiguity,

some

portance to

in:

OR

to

omission,

of

draft).

The Act

time

Uniform

in

(different from Associa¬

tion

punishing BURGLARY

been

recommended

hooks

tbue

respective

special

Committee?,

Instruments

codifies

become

Vermont

up

11-12

South

Law

statute

checks,, and

DRAFTS

(changed from Asso¬

Act

lie

in

The enormous

Asso-

draft).

OR

have

other

off

upom

by

use

the

by

and

bills

laws

in:

Oklahoma
sociation

(supplementary law).

ciation
The

should

some

it

draft).

(changed

Missouri

it

ference

-.Y

Porto

clear

the

punish

(changed

and

and

of

of

for

legislation

the

Counsel

Committee,

subject

designed

.

of

your

drafts

legislation

the

present

Isthmian

the

Your

outweighed

WITHOUT

the

literature

of

Law

hold

to

were

Associations in

such

yet to be passed

Carolina

amendments

Washington.

Arkansas

the

to

matter.

subjects

the

amending particular

on

.

'•

Patou.

promotion

Association,
of

as

Report of the

and

now

present

Senate

some

to

the

distribution

of

on

for

this

Bankers'

Negotiable

one

of

Zone.

From
of

"

■■■•"vYY Y",

B.

follows:

as

containing

effective

phlet giving the history of the act,

^

Act

as

year.

Arkansas,

of

during the

(Act of 1910 amended),

The

re¬

measure

legislatures

field

by

Committee

placed

additional

South

Canal
:

Vermont.

Connecticut.

Oregon.

ten

was

it has

exception

sippi,

ING BANKS passed in :

Ohio

on

notes

and

five

and

possession

Utah.

Maine.
to

the

passed

bills,

namely,

mont,
the

passed in

STATEMENTS

Association

The ACT

ACT

Massachusetts (changed from

V

Louisiana,

respectfully

this

approve

State

large

a

State

hundred sections,

Insular

effort,

Dakota.

ACT

,

Delaware,

in

Legislative Work.

pendency

been

the act

secured,
one

*

FALSE

was

Uniform

Rhode

therefore,

report

forty-one

explanatory
of

given

The

theretofore

the

Indiana.

to

pamphlets

beginning of the

governing

Washington.
OF LADING

BILLS

Jersey.

The

to

acting in behalf

by

laws
have

pleased

argumentative

during the present'

enact¬

Vermont.

Oregon.
UNIFORM

of

y-

Lading

the

..

Dakota.

RECEIPTS

Nevada.

The

date

r

WAREHOUSE

shares

Uniform

com¬

passed in:

Indiana.

Minnesota.
•

made

opening

with

shown

thirty-six

year,

.Y,

be

is

1912,

printed

Association

than

Arkansas.

UNIFORM

The

to

Pennsylvania,

Committee,

recommended

were

-

The NEGOTIABLE INSTRUMENTS ACT

Minnesota.

effort.

had

during the present year :

of

the

as

of the Act is appended to this

copy

Your

special

subjects,

aid of these proposed laws.

gratified

A

Year's

Legislative Committees

of

regular, session

transfer

duty

approve

legislatures of the various

enacted

Ohio.

that

of

prepared

during

Bankers'

of

known

Commisisoners

the

to

been

fact

1913,

December.

mented

State

has

The

measures

spondence.

of

It

motion

the

the
men

law

this

Association

the

Counsel

during

apd issued from the Office of the General Counsel, in behalf of
to

the

of

pursuance

Report of General Counsel Thomas

These

Committee,

In

after careful consideration,

by

enactment.

States.

Law

Law

Execu¬

1909,

II).

a

for

view

early in

series of pamphlets containing drafts of

reasons

that

legislative

Names.

Trust.

these subjects,

on

and

the

This Act,

States.

(Appendix

sessions

Payment

enactments

YY

of the

Island,
The Act gives full negotiability to certificates of

Your General

,

Competency Of Notaries of Banks and Other Corporations.
a

State

that the

technically

Massachusetts,

Annual

v

11.

Early in December

uniform

recommended

passage.

Michigan.

In

Two

Deposits in

and

for

desirable

10.

of

through

legislation."

August,

Funds.

of

duty

;

Affecting Banks.

without

the

"recommend to

to "urge the

make

to

the various

Burglary with Explosives.

8.

in

suggests

Act.

made

to

stock; and will make the law governing stock transfers uniform
in

"

Obtain

to

Statements
Drafts

or

Receipts

is

than

^

Association drafts of proposed statutes

corporations,

Laws

port

y-Y

Lading Act.

Statements

Checks

YY Y'Y,

sub-.

Instruments Act.

3.

of

0.

Y

the following

upon

act

Maryland,
and

subjects other

upon

organizations

Transfer Act.

States

the

prepared

approved drafts

national

in

stock

Stock

Report of Law Committee, Pierre Jay, Chairman.

of

I)

and upon such dual approval"

such

to

as

indorsed

to

of

it

arise

Committee would recommend

draft

a

Chairman.

Pursuant

Y:. :i.<

(Appendix

State legislation and through the Federal
Legislative Com¬

to

as

IV

may

and general

their approval

enactment

gave

the participants to

part of

occasion

as

tive Council

attendance

develop what is best for the interests of the American Bankers'
the

-:'M
Y/Y-YY

by this Association.

3 of Article

Section

Committee

Association

and

y'^-YYY

Y'--vYY/

•

recommended

By

the Briar Cliff meeting, and the discussion throughout

upon

evidence

Y^yYf

■

NOTARIES

Y"'":

during 1913 relating to banks

those

Lynch,

K.

"Y-'-Y'' Y/'YY/.;.'

X

manifested

was

of

.

.

interest

the

of

Graham.

D.

TWO

by the General Counsel showing the laws passed in the different
States

of

IN

Yy

BANK

-

Appended to this report is a summary

Chnirman.

Chamber

YY';','.

:■

OF

.Washington.'

Chairman.

Membership Committee,
National

COMPETENCY

Y..y.Y

YY

'

.Y-«Y

>

Miller,

'

Oliver J.

providing

York

DEPOSITS

Washington.
/':»;•

pashed in:

Chairman.

and

Act

v

•

Committee,

Committee,

Hepburn,

B.

Committee,

Legislative

Committee

A.

OF

:

Kansas.

follows:

Utah.
Currency

PAYMENT

passed in

of

hoped,

a

has

of

the

not

the

yet

the

resulted,

Sixty-first

Congress

Sixty-second Congress

passage

of

of

forerunner of the passage by

the

the

by

House.of

the

Stevens

Pomerene

bill

bill

and

is.

by

it .is

both Houses of the Sixty-

*

third

Congress

of

remedial

legislation

on

bills

of

lading.

During

the

taiu

prior

its work.
Sixty-second Congress, during last Pall and
of a large number of bankers was enlisted

acts

relating to payment of deposits

hearing by the House Com¬
Interstate and Foreign Commerce of the Pomereue bill which
passed the Senate, but without avail.
At the opening special

ized

ated with
Prior

and

the

to

the

Winter

had

on

then

the

Of

close

interest

active

persistent

mittee

the prosecution of

Bills of Lading Committee in

the

effort

has actively co-oper¬

Convention your Counsel

Detroit

the

since

year

CONVENTION.

BANKERS'

132

to procure

made

checks,
years,

a

the

of

of

aid

Seuator Pomereue

Congress

"and

result

form,

enacted

in

indicate

the

useful

either

the

matter

.

present

in

reference.

of
"

1.

Checks

2.

Uniform

,

2.

_

bill was pending, in response to in¬
quiries or in answer to criticisms or objections.
But one State, New
Jersey, has passed the act this year, although in several States it
passed one House of the Legislature.
On
September 15 and Jtt of this year, the Interstate Commerce
Commission gave a largely attended hearing in Washington to receive
in

■

names.

desirability

which

this

attended

hearing

changes

Already
Uniform

1.

be required to carry out the promise of the car¬
in the following surrender clause and is enforceable as pro¬

only in so far
made

rier

10

Counsel
bill

that

tract;

legislation in

by

There

brief

special

the

proposed,

manner,

signed by the ageiit without receipt of the

been

a

upon the proposition and a
submitted.
It is the belief of
that the Commission will not change the bill in

spirited

argument

prepared and

been

Counsel

General

your

was

has

to enforce the bill against the car¬

States,

many

it has

although

rier,

goods.

10.

Uniform

„

Warehouse
of

Bills

Uniform

2.

Chocks

To

Enacted.

Already
1.

Instru¬

1.

without

2.

Negotiable

False

to do so would deprive it Of its present large

as

drafts

or

Lading

Warehouse

r

r

Act.

funds
ciation

Enacted.

be

statements

obtain

to

Derogatory statements affect¬
ing banks.
3. Burglary with explosives.
4. Liability
for
payment
of
forged or raised checks.
5. Payment
of deposits in two

(changed from Asso¬
draft). '

'

names.

6.
7.

Payment of deposits- in trust.
Competency
of
notaries
of

8.

Uniform

banks.

9.

<

Warehouse

Act*

*

Uniform

Receipts

■

Bills

of

Lading Act.

California.

Enacted.

Already
Checks

1.

To

„

without

drafts

or

1.

False

2.

for
payment
of
raised checks.
of deposits in two

Liability
forged

or

.Payment

3.

names.

in trust.
Receipts

Payment of deposits
Uniform
Warehouse

4.

5.

be

"

Enacted.

statements

-

to

■

obtain

credit.

funds.

2.

Derogatory statements affect¬
ing banks.
Burglary with explosives.
4. Competency
of
notaries
of

3.

banks.

5. Uniform"

Negotiable

Instru¬

Act.

ments

Act.
6.

.

Receipts

credit.

Act.

ments

ittstihiment upon'Which the shipper obtains credit.

utility as an

Uniform

Arkansas.

of the superior rights which he now
has
as
against a creditor of the shipper attaching the goods, and
furthermore would be deprived of the valuable right, riiow secured by
him

9.

the Order bill noil-'

make

in effect

of deposits in trust.
Competency
of
notaries
of

be deprived

would

and

shipper

Payment

8.

banks.

the particular specified; that is to say, the banker
for value would take no greater rights than the

transferee

other

would

provision

the

negotiable except in
or

6.
7.

names.

law and not provided by the con- "

be left, to the

with explosive.

Burglary
Liability

for
payment
of
forged or raised checks.
Payment of deposits in two

5.

the negotiability of the

the regulation of

that

ground

the

on

lading should

of

obtain

to

funds.

4.

certain rail- '
was opposed by your

it

and

Enacted.

be

statements

Derogatory statements affect¬
ing banks.
3. Checks
or
drafts
without

this provision in the Uniform bill

territory,

s

Act.

2.

according to its original

•

of Lading

credit.

Act.

Commission by the representatives of

Southern

in

interests

road

lading,

of

bill

this

of

The insertion of

urged upon the

was
„

may

effect."

and

tenor

as

Section

in

vided

False

1.

Instru¬

of

behalf

in

■'

.

To

Enacted.

Negotiable

ments

certain Southern railroad
interests to insert on the face of the bill a clause governing its assign¬
ability and negotiability.
There is in use by some of the railroads in
Southern Classification Territory a bill of lading,
designated as the
Revised Standard Order Bill of Lading, which contains on its face the
following clause not in the Uniform bill heretofore recommended by
the Commission: "This bill of lading is assignable;
it is negotiable
proposition

interests—a

ing

Receipts

Warehouse

Bills

Arizona.

The bulk Of the discussion related to
in the conditions on the back of the bill of lading of primary
to shippers and carriers.
One feature only affected the bank¬

interest

Uniform

Association.

this

of

Lading

9.

Act.-

Uniform Bill of Lading
1908.
Your Counsel
representative of the Committee on Bills of

as

Uniform

banks.

in

Commission

the

by

8.
•

changes in the

making any

of

recommended

was

Payment of deposits in trust.
Competency
of
notaries
of

•'

necessity

shippers and others, as to the

suggestions from railroad men,
or

7.

6.

the

where

States

.''v:

'-v'y'.
be Enacted.

False

1.

'•*;
Instru-

Act.

inents

to be
will
and

statements
to obtain
credit.
Derogatory statements affecting banks.
3. Burglary with explosives.
4. Liability
for
payment
of
forged or raised checks.
5. Payment of
deposits in two

without

Negotiable

country,

the

:

To

drafts

or

of

State and jurisdiction,

■

history and indicating the benefits

legislators

and measures yet

jurisdictions

Alabama.

funds.

Association meas¬
or in

recommended

form

exact

substance,

and

your

year,

the effectiveness of organ¬

showing

tables

the

States

the

of forged or raised

during the last six

in trust

already made in each

Counsel prepared a pamphlet giving the
of the Uniform Bills of Lading Act.
This has been widely distributed among bankers' and shippers' organ¬
izations of different
States, and many letters have been written to
the

ing

in

of

and

accomplished

Already Enacted.

lading legislation dur¬

promotion of the State bills of

the

following

satisfactory

of

progress

as

been

Act and

Instruments

Negotiable

largely

The

but

each

the

striking illustration of

a

enacted

changed

be

has

affords

already

of

the special session.

taken up at
In

Sixty-third

this

banking effort.

ures

reintroduced the
bill and on April 16 and
17 your Counsel, associated with Professor
Williston of Harvard, attended a conference in Washington with rep¬
resentatives of a number of. shippers' organizations, and the bill was
carefully gone Over with Senator Pomereue with a view to the elimina¬
tion of certain provisions as to the form of the bill of lading which
might conflict with the jurisdiction of the Interstate Commerce Com¬
mission.
Afterwards
Chairman
Clarke and Commissioner Clements
were
interviewed, and the bill, amended in a few particulars, was
reintroduced
by Senator Pomereue on April 28, but it will not be
session

enactments

Uniform

of

Bills

Lading Act.

Receipts.
Colorado.

has been done this year in co-operation with the Ameri¬

Much .work

passed the act this

the

from

derived

will ^nable

which

to

thereof,

tide him

to

possessing

will

able

be

in

of

advocacy

period

a

advances

when

such

the

upon

full

been

and

act

where

the

goods

not

are

without

being

a

literature

has

special

technical

correspondence

to

been

warehouse

of

behalf

to

state

in

detail

has

passage

receipts

Commercial
a

Checks

4.

the

4.

In

behalf

urging

the

of

and

Men.

this

is also

true with

has been

of

the

conducted

Association,

and

results obtained this
years

drafted

Acts

by

the

in

the

report

of

has

Colorado

a

statute

addition

to

Commissioners

number of special laws have been drafted,

False

on

7.

Uniform

this subject,

the

Uniform

a

the

2.

Burglary

3.

Payment

To

ures

tion.

upon

All

Committee in

behalf of

eleven subjects
told,

a

total

lating to these subjects

jurisdictions down




of

the beneficial

and

With
explosives.
of deposits in two

2.

Liability
forged

3.

Competency

credit.-

approved and recomniended
two

hundred

have been

and

enacted

to the present time,

by

thirty-three

this

and with

Enacted.

drafts

or

5.

Payment of deposits in trust.
Uniform
Negotiable
Instru¬

6.

Uniform

for

without

or

payment

raised
of

checks.

notaries

of
'

of

banks.

Act.

Receipts

Warehouse

Act.

Bills

7.

Uniform

8.

Derogatory

ing

of Lading Act.

statements

affect¬

banks.
Delaware.

Already
1.

Burglary

2.

Uniform
ments

3.

False

Enacted.

To be Enacted.

1.

Act.

2.

Checks

3.

Liability
for
payment
of
forged or raised checks.
Payment of deposits in
two

statements

credit.

N

with explosives.
Negotiable
Instru¬
to

Derogatory
ing

obtain

statements

affect¬

banks,
or

drafts

without

funds.

1

names.

meas¬

5.

Associa¬

6.

Payment of deposits in trust;
Competency
of
notaries
of

7.

Uniform

8.

Uniform

measures

in the different

Lading Act.
recommended

funds.'

,

there has

protective

of

the

be

Checks

persistent and organized campaign conducted under the auspices
Law

Bills

not

1.

4.
been

of

but

obtain

to

A

urging
on

and

Payment of deposits in trust.
Competency
of
notaries
of

Enacted.

statements

1.

measures

Law

,

6.

Connecticut.

Already

reference

the

affect¬

act.

act

Since the creation of

year.

ago,

the

to all

as

obtain

b<inks

♦

ments

in

to

statements
banks,

names.

5.

4.

efforts

ing

without

drafts

or

statements

credit.*

Receipts

funds.

of

were

to obtain credit, there has
of Information with the Na¬

interchange

and

Credit

General Counsel six

Office of

State Laws,

Liability
for
payment
of
forged or raised checks.
Payment of deposits in two

.

Act.

prepared

Measures.

recommended by this Association.

Committee shows the

Uniform

relating

Association

correspondence
in

advocated

the

forced

punish the giving of checks or drafts without funds.

to

act

3.

■

readily

printed

statutes

taken

co-operation

large

very

be

Association

tional

Derogatory

.

security

the making of false statements

punish

2.

.

names.

not

legislation

other

Act.

Warehouse

Uniform

value

force.

will

Time

3.

Enacted.

False

2., Uniform
ments

be

1.

benefit to the man of small Capital,

accommodations

Special

Other

to

and

To

with explosives.
Negotiable
Instru¬

Burglary

to sacrifice his goods at far below their value at

this

States

in

already in

to

is the giving to

status

conducted, much of it explanatory of the effect of the
act

have

1.

of stored goods represented by the receipt

needed

demand.

slack

of

been

the

over

States

The great advan¬
the country to be

legal

uniform

needed loans and

obtain

to

additional

of

negotiable warehouse receipt for his .goods in store.

a

urgent necessity

by

time

and

its passage is of especial

salable,

who,

definite

owner

readily obtain

more

six

of this act'in all the States,

a

the

and

the enactment

and banking interests of

passage

receipt

warehouse

the

procuring

making twenty-nine in all.

year

the commercial

to

tage

towards

Receipts Act,

Warehouse

Uniform

the

.

Association

Warehousemen's

can

Already* Enacted.

re¬

States

and

the exception of

cer-

banks.

Warehouse

Receipts

Act.

Bills

of

Lading Act.

BANKING
District

statements

Derogatory

to

obtain

Liability
forged
5. Payments

statements

affect¬

names.

ing banks.

:

3.

Checks

•

without

'drafts

or

funds.

„

other

corpora¬

tions.
Uniform

9.
•v.'

Checks

1.

Florida..

■

drafts

or

statements
1. False
credit.
'

without

funds.

2. Uniform

Act.

ments
•"

■

.

obtain

to

2. Derogatory statements affect¬
ing banks.
3. Burglary with explosives.
4. Liability
for
payment
of
forged or raised checks.
&• Payment of deposits in two

Instru-

Negotiable

Enacted.

be

To

Enacted.

Already

of Lading Act.

Bills

:

deposits

in

two

„

7.

Competency

8.

Uniform

deposits in trust.
of
notaries
of

and

other

corpora¬
v

■

Warehouse

Receipts

Act.

9.

;.v.-

names.

and

without

payment
of
raised checks.

tions.

Uniform

Bills

of

Lading Act.

Louisiana.

Payments of deposits in trust.
Competency
of
notaries
of
banks

of
of

banks

Burglary with explosives.
5. Liability
for
payment
of
forged or raised checks.
6. Payment
of deposits in two

8.

or

Payment

4.

7.

for

6.

.

.

drafts

or

4.

credit.
2.

Receipts

Warehouse

Act.

1. False

Instru¬

Act.

ments

2.' Uniform

Checks
funds.

Enacted.

be

To

Negotiable

Uniform

1.

3.

Columbia

of

Enacted,

Already

133

SECTION.

False

statements

be

To

Enacted.

Already
1.

to

obtain

1.

Checks

Enacted.
drafts

or

without

funds.

credit.
2.

Derogatory statements affecting banks.
3. Liability
for
payment
of
forged or raised checks.
4. Payment
of deposits in two

2. Burglary with explosives.
3. Payment of deposits in trust.
4. Competency
of
notaries
of
banks

v

and

other

corpora¬

tions.

names.

5.

Uniform

6.

Uniform

7.

Uniform

Negotiable

Instru¬

ments Act.

Warehouse

'

Act.

Receipts

.

...

Bills

of

Lading Act.

names.
•

;

'•

6.

banks.

Receipts

Warehouse

Act*

Bills of Lading Act.

Uniform

Enacted.
"

'

1.

False

Enacted.

be

To

statements

obtain

to

credit.
;

/•'"

,,

2; Derogatory

;

,

''v

"V;-

statements

affect¬

banks.

ing

drafts

5.

False

6.

Checks

Checks

■

.

'

■

4.

Burglary with
explosives.
Liability ) for
payment
of
forged or raised checks.

5.

'

deposits

of

Payment
names.

7.

8.

in

statements

to

drafts

or

9.

Uniform
Uniform

11.

Uniform

Act.

5.

Warehouse

Receipts

*

Uniform

Bills

of

Lading Act.

from ,As-

draft).
Maryland.

.

Already

Enacted.

To

Derogatory statements affect¬
ing banks.
Burglary with explosives.
Payment of deposits in two

two

names.

1.

2.

Checks

Uniform
Uniform

Bills of

obtain

without

funds.

Receipts

Lading

to

drafts

or

banks

Warehouse

■

Bill's of Lading Act.

Enacted.

Liability
for
payment
of
forged or raised checks.
4. Competency
bf
notaries
of

ments Act.

Receipts

be

statements

3.

/

.

False

credit.

Payment of deposits in trust.
Uniform
Negotiable
Instru¬

Instru-

Negotiable
Warehouse

ments Act.

obtain

"

Act*

ments

Uniform

without

(changed

socation

•

10.

v.

3.

4.

2.

credit.

Payment of deposits in trust.
Competency
of
notaries
of
hanks.

Enacted.

Act.

funds

.

.

be

Derogatory statements affect¬
ing banks.
Burglary with explosives.
Uniform
Negotiable
Instru¬

banks.

without

3.

or

1.

names.

funds.1

'

,

.

To

Liability,
for
payment
of
forged or raised checws.
2. Payment of deposits in
two

•

-

Enacted.

3. Payment of deposits in trust.
4. Competency
of
notaries
of

Georgia.

Already

Already
1.

Uniform

-Et:
None.

Maine.

Payment of deposits in trust.
of
notaries
of

v:7. Competency

'■■■::v;

;

other

and

corpora¬

tions.

■

Act.

Idaho.

Already
1.

Checks

To

Enacted.
drafts

or

funds.

2.
3.
,

4.

Act.

Already Enacted.

Obtain

to

for
payment
of
forged or raised checks.
Payment of deposits in two

Uniform

Act*

•'

.

False

Bills

of

2.

"

.

Uniform

*

A

-

To

Negotiable

ments

be

Enacted.

Instru-

3.

Uniform

Warehouse

4.

Uniform Bills of

with explosives.
Liability
for
payment
of
forged 'or ' raised'Checks.
Payment of deposits in two

3. Burglary

Receipts

4.

Act.

Lading Act.

5-

.v
"

-"a. Payment of deposits in trust.
7. Competency
of
notaries
of
,

•

.

banks.

Already
Checks

To

drafts

1.

without

2.

Uniform

Negotiable

;

ments

3.

False.

Act.

to

Enacted.

affect:

obtain

credit.

To

2.

Derogatory statements affect¬
ing banks.
Burglary with explosives.
Liability
for
payment
of
forged or raised checks,.
Payment of deposits in two

statements
credit.

4.

5.

to

obtain

1.

be

Checks

Enacted.
drafts

or

without

funds.

names.

Payment of deposits in trust.
Competency
of - notaries
of
banks.
8. Uniform
Negotiable
Instru¬
ments

with explosives.
3. Liability
for
payment
of
•forged or raised checks.
4. Payment of
deposits in two

'

statements

be

Derogatory statements
ing banks.

2. Burglary

Instru-

Enacted.

False

3.

,

7.

Enacted.

or

funds.

of

banks..

6.

Indiana.

1.

■

As-

1.

names.

'

affect¬
without

Michigan.

Already

funds.

Act.

Burglary with explosives.
Competency
of
notaries

drafts

or

obtain

from

.

Derogatory statements affect¬
ing banks.
or
drafts
without
2. Checks'

.

to

(changed
socation draft).

i.

obtain

3.
4.

Lading Act.

statements

credit

Illinois.
to

statements

credit.

False

Uniform Bills of Lading Act.

Already Enacted.
1.

Checks

Act.

Receipts

Warehouse

Uniform

2.

-

'

7.

Enacted.

Derogatory statements
ing banks.
funds.

Uniform

banks.

be

1.

names.

Payment of deposits in trust.
Negotiable
Instruments Act. »"
Uniform
Warehouse Receipts

names.

Payment of deposits in trust.
Competency
of
notaries
of

•

To

Liability

*

'

.

Massachusetts.

Enacted.

credit.
„
Derogatory statements affecting banks.
Payment of deposits in two

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
Uniform
Negotiable
Instru¬
ments

be

statements

False

without

9.

Act.

Uniform

Warehouse

Receipts

Act
10.

Uniform

Bills

of

Lading Act.
Minnesota.

names.

Payment of deposits in trust.
of
notaries
of
.6. Competency

'

'•

Already
1.

False

Receipts

2;

Checks

"

'■

■.

;

7.

of Lading Act.

3.

Burglary

4.

Liability

Warehouse

Uniform

Uniform Bills

Iowa.

Already

To

Enacted.

1.

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
3. Payment of deposits', in
two
Uniform

Negotiable

5.

Uniform

6.

Uniform

Receipts

to

obtain

Derogatory statements affecting banks.
'
Checks
or
drafts
without

credit.
•

5.

Act.

of Lading

without

banks

>

with

explosives.

3.

1.

ments
4.

Uniform

5.

Payment

Warehouse

Warehouse

Receipts
Mississippi.

Already

be

Enacted.

Enacted.

To

1.

False
statements
credit.

to

obtain

statements affect¬

Checks

without

drafts

or

funds.

Payment of deposits in trust.
of notaries
of
5. Competency

4.

of

deposits

in

two

lifin ks.

names.

6.

False

Uniform

Uniform Bills

ments Acts




1.

obtain

of Lading Act.

funds.

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
6. Payment of deposits in two
5.

names.

7.

Payment of deposits in

8.

Competency
and

trust.

of

notaries
of
other
corpora¬

tions.
To

Enacted.

with explosives.
Negotiable "Instru¬

to

4.

Kentucky.

Burglary

Enacted.

Derogatory statements affect¬
ing banks.
3. Checks
or
'drafts
without

banks

Already

be

statements

2.

ing banks.

Receipts

Act.

Lading Act.

Act.

2. Derogatory
3.

Act.

of

credit.
To

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
3. Uniform
Negotiable
Instru¬

Bills

ments Act.

Uniform

None.

Enacted.

1.

Uniform

names.

Payment of deposits in trust.
Competency
of
notaries
of

Act.

2.

Enacted.

Derogatory statements affect¬
ing banks.
2. Competency
of
notaries
of

Kansas.

Already

be

1.

Payment of deposits in trust.
Uniform
Negotiable
Instru¬

banks.

Bills

To

-

obtain

for
payment
of
forged or raised checks.
Payment of deposits in two

funds.
4.

Warehouse

statements

False

Instru¬

Act.

ments

Enacted.

1.

3.

names.

4.

be

2.

2.

to

drafts

or

funds.

Act.

8.

statements

credit.

banks.
..

Enacted.

be

Enacted,.

statements
credit.
-'

False

2. Derogatory
fntr

to

statements

hunks.

■

9.

Uniform

10.

Uniform

ments

obtain

affect-

Act.

Negotiable
Act.
Warehouse

Instru¬

Receipts

•

11, Uniform Bills of Lading Act.

BANKERS'

134

CONVENTION.

Missouri.

Already
1.

False

,

4.

Derogatory statements affect-'
ing banks.
•
Payment of deposits In trust.
Uniform
Negotiable
Instru¬

5.

Uniform

Already

■„

.,

;

banks.

Warehouse

1.

Liability
forged
3. Payment

two

Lading

To

drafts

or

4.

of

for

False

of

2.

Derogatory

trust.

3.

ing banks.
Burglary with

Uniform

Instru¬

4.

Payment

5.

Competency

checks.

deposits

in

Negotiable
Act;

Checks

drafts

or

ciation

without

(changed from
draft).

Already

Enacted.

statements

.

1.

obtain

to

credit.

To

Already

Enacted.

be

1.

2.

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
4. Payment of deposits
in two

2.

Ciiecks

3.

Uniform

4.

Uniform

of deposits in trust.
Competency
of
notaries
Of

7.

Uniform

drafts

without

Warehouse

Receipts

or

2*

3.

funds.

names.

6.

a fleet¬

Derogatory statements
ing banks.

3.

Bills of

Act.

of

notaries

Already

Burglary

3.

Uniform

'/

Instru¬

Enacted.

1.

statements

'•

-'V"'-

obtain

to

Derogatory
Checks

4.

Liability

drafts,

or

Checks

1. -Derogatory

.

y1'r

5.

Payment

6.

Competency

To

statements

i.

affect-

False

Bills

of

Lading

be

obtain

"

3.

dl'ufts

or

4.

'

with
for

Burglary
Liability
forged

Payment

of

To

to

names.,
Uniform
Negotiable
ments Act.

;

6.

Uniform

Receipts

7.

Uniform

Ohio

4.

hanks.

:

,

..

Instru¬

of

Lading

sufficient

a

statute

except

measure,

Act.
on

that

this subject, thongh different
penalty insufficient.

deposits

Checks

.

Negotiable

To

-

1.

Instru¬

-or

funds

without

drafts

,

(different

sociation

Already

from

As¬

with

Payment

of

3.

Uniform

1.

explosives.
deposits in two

Act.

names.

Negotiable

Derogatory

3.

Burglary
Liability

5.

Payment

6.

Payment of deposits

Derogatory

3.

Checks

•.

statements

ing

with

explosives.

for
payment
of
raised checks.

or

of

statements

two

.

7.

Competency

8.

Uniform

9.

Uniform

Act.

affect,

drafts

in

deposits

of

in

trust.

notaries

of

hanks.

banks.
or

affect-

ing banks.

obtain

to

credit.

2.

Instru¬

Act.

ments

Enacted.

statements

obtain

to

4.

names.

False
.

Enacted.

2.
.

draft).

>

Enacted.

Burglary

2.

be

statements

forged

be

from

credit.

New .Hampshire.

1.

False

Act.

ments

two

Enacted.

banks.

To

without

•

has

Uniform

Bills of Lading

drafts

or

Oklahoma.

:

Uniform

Enacted.

•

Warehouse

Bills

Already

Payment of- deposits in trust.
Com[)etency
of
notaries
of
8.

be

funds.

without

names.

\

'

Burglary with explosives.*
Payment of deposits in trust.
•f
aotaries
of
Competency

recommended

explosives.

in

of

.• i*'.
Receipts

'x

Enacted.

statements

payment
of
raised checks.

or

notaries

'""-'v

Checks

*

to

of

Warehouse

V;.;'" Y'\7Ohio*

funds.

Act.

two

trust.

1.

5.

Enacted.

statements

2. Checks

InstruReceipts

Warehouse

in
In

2.

4.

Act.

deposits

.8. Uniform Bills of I Aiding Act.

credit.

.

of

Uniform

Act

credit.

,

.

Act.

ments

Uniform

deposits

banks.

V

■

-

Act..

Enacted.

banks.
Uniform
Negotiable

of

Derogatory statements affect¬
ing banks.
Liability
for
payment
of
forged or raised checks.
Payment of deposits in two

Nevada.

ing

.

Payment

2.

banks.

Already

affect¬
without

obtain

3.
or

Uniform

.

drafts

or

False

without

for
payment
of
raised checks.
Payment of deposits in trust.
Competency
of
notaries
of
forged

'

obtain

to

1.

affect¬

statements

banks.

funds.

Receipts

Act.

;

Act.

Enacted.

3.

f

Already

s

2.

ing

v

•7:;^/,;

.

,

•

3.

Instru¬

Act.

Warehouse.

False

Enacted.

be

credit.

names.

Uniform

be

statements

Derogatory statements
ing
banks.

7.

To

Negotiable

l ading

names.

with explosives.
of deposits in two

ments

of

2.

4.

,

Payment

Receipts

;<•

Bills

:funds.

leading Act.

,

2.

,■

of

Warehouse

To

Nebraska.

1.

Uniform

Act.

ments

3.

-

,

credit.

,

2.

7.

L* False

Payment

Negotiable

Uniform

Enacted.

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
Uniform
Negotiable
Instru¬
ments

banks.

'*■

of

Act.

.

4.

affect¬

explosives.
deposits in two

Dakota.

Montana.

False

6.

Asso¬

North

5.

obtain

to

statements

banks.

funds

1.

statements

names.

.

Act.

Act.
0.

Enacted.

1.

payment

raised

or

of

ments

be

without

credit.

2.

•

of

Bills

Uniform

Receipts

Checks

Carolina.

Enacted.

funds,.

.

notaries

of

Competency

.

in

deposits

"names.

Act.

ments

of

Payment

•

3.

Enacted.

be

Burglary with explosives.
Liability
for
payment
of
forged or Vaised checks.

obtain

to

statements

credit.
2.

North
To

Enacted.

without

Warehouse

Receipts

*

-

Bills

of

Lading

Act.

Orkoon.

'

funds.

•

4.

Liability

5.

Payment of deposits

0.

Competency

7.

Uniform

payment
of
raised checks.

or

of

in

trust.

notaries

of

banks.

\

Uniform

,

with

Liability

for

forged

Bills

of

A

Receipts
V

--v.

Lading Act.

of

1.

False

statements

obtain

to.

1.

Checks

2.

4.

drafts

or

without

Derogatory statements
ing banks.
-

Payment

6.

7.

Payment pf
Competency

8.

Uniform

deposits

of

Uniform

Uniform

of

9.

Uniform

10.

Warehouse
Bills

of

3.

Uniform

Mexico.

False

To

obtain

1.

be

Derogatory

Enacted.

statements

Instru¬

2.

Checks

Receipts

3.

4.

Act.

5.

,

affect¬
without

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
Payment of deposits in two

7.

Payment of deposits in trust.
Competency
of
notaries
of

8.

Uniform

banks.

New

1.

False

to

1.

of

Lading Act.

Checks

be
or

Enacted.

to

3.

drafts

or

obtain

without

funds.

Act.

5.
6.

Competency

of

'

notaries

of

-

Derogatory statements affect¬
ing banks.
Liability
for
payment ' of

2.

Burglary

Island.
To

Enacted.

be

Enacted.

1.

obtain

to

statements

Derogatory

Burglary with explosives.
2. Competency
of
notaries
banks.

affect¬
3.

ing banks.
Checks

drafts

or

funds.

Liability
forged

Payment

Uniform

•

of

„

Rills

ot

Lading

Act.

drafts

without

with

withour
■

»

payment
of
raised checks.
deposits In two

for
or

of

\

names.

Payment

Uniform
ments

Uniform

deposits in trust.
Negotiable
Instru¬

of

Act.

Warehouse

Receipts

Act.
South

Checks

funds.

credit.
2.

Checks

Burglary with explosives.
Liability
for
payment
of
forged or raised checks.
Payment of .deposits
in
two

credit.-'

Already
To

obtain

Bills

York.

Enacted.

statements

2.

4.

Lading

statements

,

names.

b.

Already

Enacted.

.

drafts

or

funds.

Warehouse

be

statements

Receipts

Act.

Act.

ments

of

Bills

False

banks.

ing banks.
Negotiable

Uniform

of

Act.

credit.

Rhode

credit.
2.

Lading

names.

Already' Enacted.
to

notaries

of

-

Lading

statements

1.

Instru¬

Negotiable
Warehouse

Already

False

To

Enacted.

.

New

1.

of

Bills

'

Receipts

.:

Uniform

Uniform

Instru¬
-

Act.-

4.

Act-

Uniform
Act.

Competency

affect¬

Act.

ments

banks.

ments

3.

hanks'

Derogatory statements affect¬
ing banks.
Pavment of deposits in trust.

two

notaries

obtain

without

drafts

or

ing banks.

deposits in trust.
of

Checks
funds.

•

statements

Already

'

names.

Negotiable

2.

Pennsylvania
:

in

,

to

Receipts

Warehouse

Derogatory

affect¬

Burglary with explosives.
Liability
for
payment
of
'forged or raised checks.

5.

Enacted.

statements

Act.

Act.

Enacted.

funds.

credit.

3.

be

be

credit.

of deposits in trust.
Negotiable
Instru¬

Uniform

False

of

names.

Payment

Uniform
To

Enacted.

payment

raised checks.
deposits in two

or

ments

New Jersey."

Already

1.

explosives.

Burglary

Payment
Warehouse

Act.

8.

Already Enacted.

for

forged

To

or

Carolina
To

Enacted.
drafts

without

be

Enacted.

1.

False

2.

Derogatory statements affect¬
ing banks.
Burelarv with explosives.

statements

to

obtain

credit.

funds.

explosives.
3.
4.

Liability

two

5.

Payment

fi.

6.

Payment of deposits in trust.
Uniform
Negotiable
Instru¬

7.

Payment of deposits in trust.
Competency
of
notaries
of

7.

Uniform

8.

Uniform

3.

forged or raised
4.

Payment

5.

of

forged

checks.

deposits

in

Uniform

deposits

banks.

Act.

Warehouse

Receipts

ments

Act;
8.

of

navment

raised

checks.

in

two

names.

names.

ments

for
or

of

Bills

9,. Competency
banks.




of

of

Lading

notaries

Act.

9.

Uniform

10.

Uniform

,

Negotiable
Warehouse

Act.

of

Instru-*

Act.

Receipts

1

Bills

of

Lading

Act.

South

Dakota.

Uniform

6.

Uniform

1.

2.

Liability

3.

Payment

payment
of
raised checks.

deposits

of

Checks

Wisconsin

5.

C.

Uniform

7.

Uniform

Lading

of

Bills

Uniform

4.

Act.

banks.

Instru¬

Negotiable

Receipts

Warehouse

Tennessee.

Enacted.

Already

2.

Checks

i.

Uniform

drafts

or

Derogatory statements
ing banks.

without

2.

Burglary

Act.

ments

Act.

deposits

of

4.

Payment

5.

Payment of
Competency

6.

1.

False
statements
credit.
"

2.

Uniform

3.

Burglary
Liability

3.

Uniform

Enacted.

6.

Payment of deposits in

7.

Competency

8.

J'.

■<;

-

■

of

of

in

Negotiable

"

'

"

-7

of
.

''
•.

.

(

•!',

7

2.

Derogatory

two

Enacted.

7".
Uniform

Negotiable

'

Instruments

Act.

Negotiable

Alaska. Porto Rico,

obtain

to

Instruments
Panama

Act.

Canal Zonh.

No enactments.

"

.

,

/■'7

Enacted.

credit.
Federal

The

affect¬

statements

ing banks.
Burglary with

The

explosives.
for
payment
of
4; Liability
forged or raised checks.
5. Payment, of deposits
in two

1

Tariff

new

1913,

7,

cent,

per

bill

contained

amount

tax

being

which

the

2

Tax.

introduced

income

an

incomes

net

modified)

later

Income

was

Section

as

on

in

an

House

the

bill

tax

which

individuals

of

and

Instru¬

Negotiable
Act.

ments

.

Corporation

Receipts

were

Act*'

Bills of

Uniform

9.

.

Lading Act.

banks.
with explosives.
for
payment
of
forged or raised checks.
Payment of deposits in trust.
Competency
of
notaries
of

Receipts

Warehouse

Act#

statements

False

obtain

to

credit.
Checks

.

without

drafts

or

or

$20,000

and

Cordell
on

names.
v

Vermont.

statements

False

credit.

of

Payment

funds.

Uniform

Competency
banks
and

other

of

of Lading Act.

Bills

lative

with

Act.

this

Checks
funds.

in

deposits

of

Payment

two

Instru¬

Negotiable

to

ate

Committee'

the

bill

Competency
of
notaries
of
banks
and
other corpora-

control,

in

and

which

and

the

of Lading Act.

Enacted.

Already
I.

Checks
funds.

>.

i.

Payment

1.

Uniform

J.

Uniform

5.

Derogatory

to

obtain

to

with

Burglary

4.

Negotiable

Instru¬

'

7.

statements affecting banks.
'
•
Competency
of
notaries
of
banks.

'

West

Already
1.

•
■

1.

be

To

Enacted.
False

Payment of deposits in trust.
Negotiable
Instru¬

2.

Derogatory

3.

Act.

4.

statements affect¬

ing banks.
Burglary with explosives.
Liability
for
payment
forged or raised checks.

of

5.

Payment

6.

Competency

in

deposits

names.

of

two

Uniform

8.

Uniform

of

Hous

being

fixed
The

the

having

objections

to

the burdensome

annual

having
of

income

most objectionable

provision

control,

the

of

bill

dis¬

receipt,

to $4,000."

not amount

,

of corpora¬
.

periods,

This was deemed

that

the

be deducted

annual

gains,

and

bonds,

further

mortgages

and

profits
or

amount of

and

income

deeds of

here¬

the normal tax

withheld from fixed and deter¬

trust

derived
or

from

interest

upon

other obligations of

cor¬

longer or shorter
periods,
although such interest does not amount to $3,000."
The
change of the word " indebtedness " to " obligation " removes the ob¬
jection that the banks which pay interest on deposits are burdened
with any duty of deducting,
withholding and paying the depositor's
tax therefrom; but the bill still provides seemingly impracticable duties
.

.

payable

whether

.

annually

or

at

.

of

notaries

of

upbn

Warehouse

Receipts

banks

matter

the

banks.

7.

sug¬

printed brief,

mortgages or other indebtedness

does

shall

porations

credit.

Uniform

ments

obtain

to

the

changes

corporations

and

the

was

was

were

payable annually or at longer or shorter

imposed

minable

Enacted.

statements

1.

drafts

or

funds.
2.

inabove

Virginia.

without

Checks

bankers'

out.

of

pointed

corporations

bonds,

interest

" Provided

follows:

....

■

the

persons

bill

hardship upon banks in their relation
as
agents for collection and paytnent of the hundreds .of millions of
dollars of
interest coupons every j'eur,
and also as susceptible of a
construction
which would require banks to deduct and withhold the
tax from interest paid on deposits,
as a bank deposit is an indebted¬
ness
of a, corporation.
In the bill as "it passed the Senate on Septem¬
ber 9,
the above objectionable provision has been modified to read as

Receipts

Act.

passed

Means

and
the

hearing before the Sen:

a

analyzed and

were

as¬

were,

Legis¬

impracticable and as ^imposing a

Act.

Warehouse

upon

whether

.

although "such

names.

ments

which

the suggested

presented

standpoint

and

is

fixed or determined annual income of individuals
withhold the tax from fixed annual
" income derived

and

.

..

bankers'

persons

interest

tions

Pavment of deposits

3.

deduct

from

explosives.
In trust.
Uniform Bills of Lading Act.

2.

for
payment
«f
or raised checks.
of deposits hi two

Liability
forged

all

were

tax

had interviews

amendments

bill

The

as

Depart-,

changes

no

Ways

the
on

paid

payment of

posal, or

Enacted.

False
statements
credit.

1.

without

drafts

or

be

Treasury

where, the

of.

and

attended

payment

or

be

this subject

Counsel

your

of

any

the bill

in¬

should

income taxes

but

as

of

source

bill

on

the

the points

placed upon

instances

the

fea¬

banks

upon

the committee an exhaustive

with

disposal

specific

requiring
Washington,-

and

Finance

provisions of

from

feature

without

8

* At

members of the Federal

features.

worst

" mutual

of

objectionable

the

provisions

discussed

were

Honorable

Washington

shares."

the

at

why

members

which

in

by

duties

property;

with

in

the

to

certain

permitted

his

as

other

and

May

filed

receipt,
in

others

is

to

savings

introduced.'con¬

as

represented

which

under

27 your Counsel

on

later

Law

same

mutual

exemption

reasons

Association

impracticable duties

lions.

To

of

3

the

the

on

May

on

banks.
with explosives.
Liability
for
payment
of
forged or raised checks.
Payment of deposits in trust.

Bills

brief

Com¬

power

reported to the House

was

government

On May 2 and

Hull

remove

and

ing

Uniform

the

deduction

bankers

to

Representatives
made,

affect¬

statements

stock

his

interview

an

There

Counsel,

your

within

presented

impracticable

for

a

Washington,

Burglary

Receipts

Warehouse

in

Derogatory

Act.

existing

law.

Legislative

exempts

an

discussed

also

shareholder

Committee of

3.
4.

Act.

ments

Uniform

obtain

to

the

2.

names.

Uniform

Enacted.

False,
statements
credit.

capital

Tax

such

no

Congressman

gested
1.

without

drafts

or

be

To

In

contained

contained the

bill

respect.

objectionable

'

Enacted.

it

tax

Corporation

ruled

Committee
Virginia.

Already

and

Federal

Law

was

bill.

imposed

the

presented

the

as

against
iu

made

Uniform

also

has

sessed

corpora¬

Receipts

Warehouse

apparently

present

meat

tions.

Act.

meats

Uniform

and

Tax

when the bill

Counsel

of

the

everything

done

the

caucus,

your

agents

shares,

the

„

explosives.
of
notaries

with

Burglary

of deposits in trust.
NegotiableInstru-

"

,

.

on

without

drafts

or

'

banking standpoint,

changed

or

of

This point

having a

not

the

from

changed so as to permit banks to deduct from gross

ing banks.
Checks

names.

Payment

affect¬

statements

Derogatory

obtain

to

payment
of
raised checks.
deposits in two

or

-■

come,

for

forged

Enacted.

be

To

;

Liability
r

collecting

Enacted.

Already

1

higher

of

of the

that

of

but the Income Tax Bill,

of

April 21,

on

Democratic

banks

has

exemption.
draftsman

which

tures

:

of

exceeding

not

provisions

a

(this

supertax

incomes

upon

repeal

a

modified,

behalf

Corporation

provision,

such

interview

this

be

in

and

present

its

Hull,

the

should

for

bill which,

the

of

Association,

The

no

savings

Act.

of Lading

this

April 17 and

from

•

Bills

taxes
of the

provided

and

authority

from

tained

Uniform

in two

deposits

of

of

end.

Burglary

funds.

Payment

mittee

Liability

banks/

desirable

upon

banks

ing

Act.

menls

Uniform

graduated

Incorporated most

Law,

provisions

acting

this

affect¬

statements

Derogatory

lustra-

Negotiable

Uniform

Enacted.

be

To

Enacted.

bill

Tax

many

seemed

it

Utah.

Ahead]/

additional

The

$4,000

over

additional

exceeding

April

on

provided

.

Warehouse

Uniform

with

amounts.

incomes

net

upon

$50,000

*

l)fi n k s.

Uniform

cent,

per

of

notaries

of

Competency

8.

.

:'•

7

Hawaii.

Enacted.

be

False

'>>/V-7.

.

7

.-.-vG

,

Instru-

names.

■'v!

Act.

"

'

Act.

ments

deposits in trust.
of
notaries
of

statements

1.

6.

7-7

Lading
V

;

Uniform

Bills of Lading Act.

To

'

Bills

trust.

notaries

of

Uniform

;V

obtain
Receipts

Act.

with explosives.
for
payment
of
forged or raised checks.
Payment of deposits in
two

Texas.

Payment of deposits in trust.
Checks
or
drafts
without
funds
(different from Associotion measure). '

to

Warehouse

Philippines.

Uniform

7.

■

be Enacted.

The

banks.

Already

'V'•

Wyoming.

Enacted.

statements affecting banks.
or
drafts
without

•

'•

>

but not the recommended

Derogatory

names.

Receipts

Warehouse

I." Uniform

subject,

banks.

payment
forged or raised checks.

Instru¬

Negotiable

affect¬

explosives.

with
for

Liability

'

funds,

this

ou

names.

1.

credit.

Act.

.

obtain

to

statements

False

>

Lading

Checks

5.

Enacted.

be

of

notaries

of

1,

4.

To

of

Bills

2.

Act.

1.

statute

a

funds.

Act.

ments

Uniform

•'/

funds.

Payment

Competency

5.

bunks

has

Already

,

of deposits in trust.
Competency
of
notaries
of

4.

Derogatory

3.

4.

act.

statements affect¬
banks.
or
drafts
without

2.

ing

two

in

names.

*

credit.

for

forged or

Instru¬

Act.

Warehouse

Act.

obtain

to

statements

False

1.

explosives.

with

Burglary

Enacted.

Receipts

Negotiable

5.

ments

be

To

Enacted.

Already

135

SECTION.

BANKING

Internal

and

Office after

and pay interest coupons,

collect

who

others

be straightened out

can

Revenue

and simplified

the bill

unless

by regulations of the

is passed.

Act.

Bills

Trust

of Lading Act.
Counsel

Your

has

had

a

Wisconsin.

Already

To

Enacted.

with explosives
for
payment
of
forged or raised checks.
Payment of deposits in two

Burglary
Liability

names.

Payment of deposits




in.trust.

1.. False

be

the Trust

Enacted.

statements

to

obtain

credit.*

statements affect;
ing banks.
3, Checks
or
drafts
without
funds.'
2.

Derogatory

Company

Section

provisions which should
and

States,
draft

of

ing of
for

has

Company

number

Laws.

of conferences

with

the officers

be included

in the trust company laws of all
made by these officers in a

embodied the suggestions

provisions to be presented Tor discussion at the Boston

meet¬

The draft is merely tentative, to provide a basisand is in no sense a completed document.
The subjects

the Section.

discussion,

of

relative to the drafting of certain standard

136

BANKERS'

covered

capital,

are:

examination

of

semi-annual

investment

clients

except

of

to

company,"

funds,

legal

unlawful

directors,

unlawful

sales

non-disclosure

compulsion.
Bank

of

loans,

on

non-mingling of

beneficiaries,

trust

under

qualification

deposits," restrictions

" trust

or

statements

panies,

supervision,

reserve,

directors,

by

" trust "

words

by

trust

affairs

the

year

Counsel

your

has

made

of

study

a

bond

in

1899.

of

With

insurance

an

Association,

meeting

a

29

and

tion
in

of

the

the

its

Secretary

Insurance

for

Insurance

amount

writing

of

and

pursuant

license

and

this

New

At

Bond."

instructions

the

to

copyrighted

been

the

of

agreement of licensee have been

bond

and

Association's

the

for

also

copyrighted standard form of bank burglary policy, and there has been
full

co-operation

the

with

Insurance

Committee

other

in

many

all

as

insurance,
during
tion

the

of

in

sured

published,

prepared

with

members

of

claims

The

During

the

and

cerned

190

Anamoose,

sight draft
another

•'

■

service,

has

been

which

That,

with

States

reversed,

Criminal

the

its

'

period

operations

Total

such

undertake

to

with

the

sustaiped.
District

Court,

it

mous.

has seemed

such

of

torney-General
transaction

in

Danziger

the

matter

the

done,

and

in

stands

given

statute

law

the

unless

has

safe in

Court

but

brought

of

Counsel

your

these

criminals,

so

of

the

in

drafts

should

assuming that the law is

of

Appeals

longer

stated

as

§hould

that

would

the

held

be

the
is

that

up

'

.

General

"general

a

is

open

of

the

membership,

opinions

this

three

hundred

the
the

of

time

its

year,

and

to

nature

of

letters

in

the

by detailed

Office

advice,
it

is

also

respect

of

personal

the

of

of

the

and

as

in »the

and

the

freely

work

written

statement;

General

re-sorted

hundred

one

but it is

the

extent,

its

grown

and

The

value

by

involves

1

2

appreciation.

"

,

six

detailed

more

by

To

the

Executive

ers

The
nual

up

Council

and

Members

the

period

covered

the

statement

is

1,

1913.

Your

they

tective
W.

committee,

September

its

1,

be

1912,

published in the pamphlet contain¬

were

Department

Gammon,

Since

appointed

that

time




was

appointed,
they

in

September,

established,
there

have

was

been

and
a

able

1909.
its

deficit
to

in

reporting
and

the

seen

and

been

clear

over

up

1

Texas..........

1

Utah.

1

1

Washington

1

In

even

West Virginia.......

1

l

Wisconsin...........

1

loss

of .these

some

gained

1

.

3
..

l

to

the

attempted

bank,

attacks

non-members, sixty

unsuccessful

attacks

attacks

as

non-members

on,

rule

a

from

Texas,

not

by

were

being

suc¬

and

ten
pro¬

reported

to

.

the above,table that
active

there

were

burglaries

V

most

them

of
.

on

twenty-nine

in

the

being

this

States

five

class

of

attacks

of

opera¬

Illinois,

Iowa,

on

members

in the other States mentioned,

none

burglaries

most

as

prowlers.

or

fifty-two attacks

on

non-members

in

in

while there

those

States.

to

Our

members,

exact

loss

as

a

rule, report all attacks

sustained;

rarely

report

result

that

attacks

while

the

on,

them

on

other

the

or

or

losses

tion

we

do not

obtain

sustained.

and

attempted

the

of

non-members

sustained, with
of

some

.

given

are

burglaries

Protective Feature,

Non-Members..

for

such

your

banks

on

1,520

Members—

the

these attacks

'

following figures

of

record

a

them, also the

on

hand

loss

,

as

are

information
since

the

of

re¬

inaugura¬

known:

Loss

395

Difference............

Forgers

$2,057,895.52

Loss...........'......

to

forgers

.

Bogus

and

231,613.17

Check

,

$1,826,282.35

Operators.-

and

bogus check operators, but
very few
defrauded during the past fiscal
year
practically two-thirds of the cases re¬

professionals,

ported

and

the operations

were

of

amateurs.

Membership.
On

September 1,

ords

a

the

of

the

membership of 10,682.

showed

in

1909, when the Protective Department

records

a

clearly

derived from

General
On

membership of 14,100,

membership

as

reported

demonstrates
the Protective

L.

deficit

1,125

members have been

our

Pro¬

$19,000,

this

2
11
,

members was $30,823.27, while the loss
sustained
by non-members amounted to $140,595.05..

Office,
that

Mr.

manager,

6f

thefts.

been

Oklahoma

showed

pleasure

3

2

1

an¬

Statement.

takes

3

io
2

amateur

have

gain

however,

Tennessee!....

not

Oklahoma, and

by

ing financial statements.

when

1

2

y

Most of these

established,

The financial

3

South Dakota.......

.burglaries,

can

to and including August 31, 1913.
Financial

Oregon...

l

..

..

,,

ninety-nine

Relative

of the American Bank¬

from

20

department.

numerous

Standing Protective Committee submits herewith
for

5

11

with

Association:

report

Oklahoma...........

by amateurs

tors

of

Sept.

l'

..

was

hold-ups.

Heport of Standing Protective Committee.
York,

Ohio..\........

1*

sneak

,

New

North Dakota..........

l

3

"

.

4

1

published

familiar

6

.4

thirty-nine attacks on members thirteen were success¬
burglaries, sixteen unsuccessful burglaries, four
hold-ups

ported

dur¬

.

the

The

large amount

to them is indicated

2

6
2

..

1

in

were
a

are

for
.

Non-

.

4

New Hampshire.....

by

calling

re¬

non-

bers. Members.

New Jersey...

proportion,

business.

on

Mem-

New York.

It

In

general

delivered

to make any

Association

the

great

Members.

l

fessionals,

numerous

in

their
to

eighty-seven

work

of .the

to
and

Non-

bers.

1

this

by officers

of

Mem-

Colorado,

an

Counsel

committees

having been

unnecessary

members
and

has

of

rendition

interview

opinions

Association.

research,
it,

of

ninety

which

of

members

questions of law arising in

branch

and

Sections and

of

that

upon

latter

Journal

reference

further

that

and

and

both

fact,

in

said

officers

eonsultation
services,

written

be

may

thefts

Connecticut

cessful

•

up

thirty-nine

crimes

Nebraska......,...'.

Of

,

299

follows:

States Circuit
v

sneak

3

were

a

and

similar

1

entrance

fairly

hundred

one

1

busi¬

and

and his services have been constantly, availed of,

to,

specific

ing

it

way

and

Arkansas......

Services.

be extended

not

Association,

of

way

will

report

members,
as

re¬

such

upon

been

California

made

such

have

Missouri.............

ful

.,

there

.1

and

being

1913,

1

The

This

on

Alabama

have

V

199

September 1, 1912,

year,

burglaries, attempted burglaries, hold-ups

Of

Ana¬

extensiv'e

justified

443

,

100

including August 31,

Mississippi....'..'....

United

ultimately

by the United

acting accordingly.

in

and

be

banks

and

Michigan

States

125
318

144

decided

this

and

knowledge

no

seem

to

At¬

the

four

•

beginning of the fiscal

Minnesota...;

Be¬

Protec¬

saving for the past

follows:

as

" ■!

;

Massachusetts.........

that, the

application

decision,

States

has

not

does

collecting

that

for

it

to

United

the

made—it

been

collecting

possibility,
Court

be

decision—and

application
of

Should

Since the

Louisiana......

unani¬

United

decision

an

the

of

de¬

cases

Awaiting trial..

Iowa...............

that the

also

decision

for

on

........

Kansas....'........,

the

of

case,

the

had

management

the

fee

spend

Released, escaped, killed and died

Indiana.............

had

was

safety.

opinion

an

and

the

reversing

as

fair

to

Arrests, Etc.

Ififfiois.'

Circuit

not

was

advised,

so

Oklahoma

As

States

Anamoose

in

retainer

able

Convicted

Georgia

banks

decision

court

with

the

had

the

has

he

undertaken

510.

Fed.

Appeals

and

Supreme

the

verse

ness

188

for

decision

the

the

.

Idaho

Supreme Court of the United States'and that court is of opinion

the

that

of the

the

the
un¬

United

opinion

of

239 of

remained

event

the

year,

district of

Eastern

Court .of

is'final

case

moose

violation

a

the

the

reversed

States

Section

unsafe

the

correspondence

.

a

from

informed that they would not

in

Court

collects

enable

was

from

as

of

to

decision

Circuit

be

may

District

United

Stone,

v.

Circuit

States

to

not

the

this

that it

was

your" Counsel,

to

the

the

of

was

Eighth

drafts

of

Court for

Circuit

the

although

and

decision

the

he

violates

as

inasmuch

prosecution

13 of the present

for

Appeals

collecting
fore

from

On June

of

Court

lohg

the

Bank

liquor shipped
lading

in

been

covered

against

con¬

for

for

up

disposed of, arrested prior to Sept. 1,
1912..............
Total arrests since Sept.
1, 1912

resulted,

has

Which

bank

a

bill.of

advised members

collections,

immunity

that

been

National

First

v.

of intoxicating

So

Department of Justice,

guarantee

States

the liquor,

of

have

District Court

States

investi¬

taken

are

cases not

members,

\

members

cases

from
September 1. 1912, up to and
including August 31, 1913, the committee
begs to report as to

ported

of »correspondence

attached

Code.

Counsel

your

of

been

have

cases

of

the

resulted

•

For

of

form

to

since

year

formerly expended, but a large

saved

have

we

together

Department, has

..

in¬

the

request

upon

of banks

power

Case.

the effect
price

the

of

and

company.

number

United

to

delivery

to obtain

consignee
United

336,

Fed.

surrendering

the

the United

the purchase

for

State,

of

amount

in

Dakota

rights

has

credit bal¬

a

each

interpreta¬

advantages

opinion which has never' been

Anamoose

by

and

times

many

the

to

the

the

and

loss;

insurance

large

a

of a decision
North

of

year

considerable

a

growing out
District

past

relative

forms

for

question

mutual

members

contracts,

exhaustive

an

the

a

advice

and

by

upon

more

classes

than. Was

cases

of

branches

phases of burglary and fidelity

insurance

different

by

contested

dealing

become

or

of

various

been called

of

forms

provided

case

members

certain

has

information

for

various

disadvantages

■

Counsel

year

the

with

connection

In
your

less

cost

appointed and the Department estab¬

.

their work.

have

years.

August

on

great

a

money

reported.
tive

the

" The Ameri¬

York

has

it

tective

Va.,

Committee of

and after full considera¬

over,

of

copyrighted

was

Schedule

in

held

gone

approved,

was

of

Fidelity

Committee

Association

forms

the

which

Ruffin of Richmond,

A.

the

Form

carefully

was

the

New

B.

of

Standard

provisions,

of

name

Association,

form has been prepared designated as

this form

Committee.

prepared

and

Association

of

all

Bankers'

co-operation of Mr.

new

a

30,

the

expert

Bankers'

can

American

the

was

formerly,

investigation of

of fidelity bond which have been offered to banks

by different companies and claimed to be superior to the standard form
of

although
than

date, and still have

Features

investigation other than crimes committeed
by officers and em¬
ployees of members.
More money has been spent for actual

•

of

number

a

Protective

present committee

gated

Insurance.

paid all bills up to

The

lished,

of

.

During

the

/

•

have

ance.

com¬

.

short improved forms

and

■*

use

funds,

trust

business

of

CONVENTION.

that

net

gain of 3,418.

the

General

banks

realize

Features of the

was

Office

August 31, 1913, the
a

by

the

Secretary's

rec¬

The

Secretary's
the

benefits

Association,

Correspondence.
During
Protective

the

past

fiscal

Department

has

year

ending

received

August

19,605

31,.

reports

1913.
and

the

othei

from

communications
received
and

These

telegrams.

agents.

detective

lading

conferences held in Washington on
present representatives of the
shipping interests and Counsel Paton and Professor Williston
representing our Committee, the bill was gone over with Senator
April 16 and 17, at which

Department

The

2,898

has

now

photographs of criminals,

burglars, hold-up men, sneak thieves, for¬
and bogus check operators, with a complete record of each.

comprising ♦' Yegg"
gers

Offices

Detective Agents.

Inc.,

jections

their own, twenty-one being
in this country, and one in London, England.
Owing to opening
the latter office the word International had to be used in the
title of the Agency in place of National.
They also employ The
Gust J. Patek Detective Agency, Des Moines, Iowa, and Calchas
& Debisschop, Paris, France, as correspondents.

than lived up to their

more

same for three years.
They
agreement in the way of open¬

to cope with

ability

theiy

where our members are

arise

situation that may

any

interested.

from November 22, 1912, on

years
inal

action

Spring meeting at

their

at

of

the

bill of

these

will

Briarcliff, N. Y., May, 1913, and

committee very

This

Endorsement.

Detective

the

and

The

"

will

Department

Protective

the

of

The

report.

William

make

will

during

a

read his

For

detailed

at

detailed

more

form

fied

particular

to

ferred

to,

cases

diction

re¬

to the monthly Journal" '•
•
* ■"
' '■
respectfully submitted,
' ;

;

All of which is

Standing

The

Committee,

Protective
Fred.

E.

it

be

referred
"The

Committee

our

States Senate

ing to
this

reported

on

possible effort was made to have
by the House Committee on Interstate and

bills of lading,

bill

taken

up

the United

every

referred, with the hope that
favorably reported and passed by the House of Rep¬
at the closing session of the last Congress. To this

Foreign Commerce, to which it was
it would be

resentatives

end the assistance of bankers

in nearly every State was

urging upon the members of the House

in

bility

of

taking up and

enlisted

Committee the desira¬

disposing of this

measure,

and every

interviews, was re¬
sorted to to convince members of the House Committee and of
the House that it was the unanimous commercial voice that

resource,

both by letter-writing and personal

should be enacted
without further delay.
This work was conducted to a consider¬
able extent through the office of the General Counsel of this As¬
sociation, and in co-operation with a large number of shippers'
organizations.
But despite all efforts, the House Committee
upon Interstate and Foreign Commerce could not be induced to
set a date for hearing to take up the Pomerene bill for consider¬
ation, among other reasons because the Chairman of that com¬
mittee was openly opposed to the measure, and when the Sixtysecond Congress came to an end, the record of our attempts to
secure national legislation upon bills of lading indicated success
in the Senate but failure in the House, being the direct opposite
of our experience with the Sixty-first Congress, wherein the bill
legislation of this character was needed and

.

i




•

.

going

Pomerene bill relat¬

August 21 preceding of the

desires

tfiat

the

-

^

2 and 3 of the original bill,
lading.
It is claimed- thatthe power , to provide the

in sections

has

Commission

in the modi¬

the subject would be left to
Commerce Commission.

no

changes,

other
way

the juris¬

tend to per-,
of the measure

simply

they

but

change the plan or purpose

I ask that the bill
Comnierce.
relating to bills of lading in Interstate and

1654),

twice "by

read

was

Interstate

its

title and referred to the

Commerce."

the Currency bill
of members of
Congress throughout the special session, the Pomerene bill has
not yet been taken up for consideration by the Senate Commit¬
tee on Interstate Commerce, but the facts outlined in the fore¬

Convention, held at Detroit, when

the unanimous passage by

their

Committee on Interstate

the

almost

have

Hollister, Chairman.
Following the last Annual

satisfy

to

at the last session of Congress..

(S.

on

is

Owing to the fact that the Tariff bill and

of Lading, Clay H.

of Committee on Bills

Report

in

Commerce,

Committee

which passed the Senate at the last
which have been made by

With the amendments contained

several

to

bill

it

change Is

lading.

passed

was

to bills

I will state that this
introduced by me sev-,

modifications

and

Interstate

are

as

I introduce a bill relating

entire part of

bill and

feet the

Foreign

of

the

of

•

for the form of the bill of

that

There

n

Lading.

presented.

Commerce

bill

bill

several

measure,

is

principal

Farnsworth,

Secretary.

the

bill

a

of

Senate bill.387,

as

the

as

were

provided
of

respectfully refer you

we

of

same

and

There

form,

"

Bulletin.

Bills

President,

Mr.

the

ago,

Interstate

the

.

as

weeks

which

This report will be published in
and also printed in pamphlet form for

information

substantially

in

The

on

The following re¬

1654.

Interstate and Foreign, Commerce.

is

"

bill,

Pomerene

.

Pomerene :

Mr.

amended

International Detective Agency,

this convention.

Senator

Congressional' Record of April 28, 1913, Vol. 50, No.

lading

friends

•

;

by

Senate No.

becoming

to

legislation, and say it is un-.

Senator Pomerene in introducing the bill, were report¬

the

session.

year,

Proceedings

distribution

1913,

of

eral

Inc.,
report of the work accomplished by them

the past fiscal

Annual

the

•

Burns

J.

objectionable

is

CoinmissioUj

reintroduced

then

was

Uniform

Council, which covers matters pertain¬
the Department other than those contained in this com-,

mittee's

Commerce

15, at page 504:

report to the Executive
ing to

in

Detailed Report.

manager

.

conflicts with the jurisdiction

Certain other minor changes-were made .in the
bill

the

marks by

"

\

shadow of a ground for Chairman

that the bill

Interstate

April 28,

ed

print¬

on

jurisdiction of the Interstate Com¬
in no way'object to it and there

the

be even

assert

to

Inc.

Agency,

"

the present

longer

no

necessary.

much appreciate the hearty endorsement

body as embodied in

your

except that the provision requiring the

them, that they do not want such

the resolution passed at the con¬
vention held in Detroit, Mich., in September last, endorsing the
work and expressing their implicit confidence in the Standing
Protective Committee,
Mr. L. W. Gammon, Manager of the
Protective Department, and the William J. Burns International

of

bill by

provisions as to what the bill must contain,

Order bills was retained. With
relating to the form of the bill, it is in perfect

with

Adamson
of

.'

'

,

has jurisdiction over the form

Commission, and they

merce

the Executive Coun¬

In view

necessity for such legislation.

it was deemed wise to amend the

lading,

those

changes

harmony

unanimously approved by them.

was

fact

ing of the words "order of

the same terms as the orig¬

part was referred to

our

on

no

the Commission

that

the

and this was done,

for a period of three

which expired.

contract,

The
cil

the Burns Agency

with

contract

new

that they had

of

eliminating

the authority vested in this committee by the
Constitution of the Association, the committee has entered into
By virtue of

a

and the transportation end of the

the t&rm of the bill

over

be to determine as to the

investigations

onstrating

any

jurisdiction whatever over the
question of liability of the
carrier upon bills signed by his agent ; that these were matters
resting with Congress to determine, and Committees of Congress
having considered the question for several years were in a much
better position
than the Commerce Commission could possibly

offices, and the results obtained by them in
have been very satisfactory, clearly dem¬

additional

up

their

for

Commission

negotiable side of the subject nor the

Detective Agents expired on Novem¬

our

Interstate Commerce Commission
had stated there was no
such legislation.; What the Interstate Com¬
had in fact said was that they had jurisdic¬
that the

Commerce,

jurisdiction of the subject and

tion

Service.

Detective

having held

they

1912,

22,

ing

with

contract

The

have

Contract .fob

House Corftmittee on Interstate and

had full

merce

repeatedly asserted by

had been

It

passage.

Foreign

necessity

few technical

a

for the purpose of obviating any valid ob¬

Adamson of the

problem, but

•*

ber

its

to

Chairman

of

offices

twenty-two

have

now

Commissioner Clements,

Commission, and

Commerce

Interstate

the

changes agreed upon

International Detective Agency,

Burns

J.

William

The

Our

of

were

with Chairman Clark and

Pomerene and

of
v-

the

first reintroduced

previous Congress, but at

the

Photographs.

;

.

in which it had passed the Senate at

in the exact form

measure

the

passed

session of the Sixty-third Con-,

Pomerene

Senator

last,

April

in

gress

this Association

by

unanimously, but failed in the Senate.

opening of the special

the

At

advocated

measure

House almost

communications.

similar

and

of

They have also
and written 4,709 letters
figures do not include circular letters

our

letters and telegrams,

1,237

137

SECTION.

BANKING

.

idle,

of national

ment

committee has not',been

possible to promote the enact¬
legislation upon this important subject.
everything

done

has

that your

indicate

will

report
but

attention

the

absorbed

entirely

your committee co¬
State Bankers' Associa¬
tions, has urged the enactment of the Uniform Bills of Lading
Act in a number of States during the present year.
In several
of these States the hill has passed one House of the legislature
but failed or was not taken up in the other.
The State of
So, far

State legislation is concerned,

as

operating with

New

is

Jersey

tained

during

pass

this

Bills

of

setts,

Committees of

the only one in

the

present

The

measure.

Lading Act

has

which complete success was at¬

year,

other

making the eleventh State to

which

States in

been passed

Illinois,

Connecticut,

Iowa,

are

the Uniform'

Maryland,

Michigan,

Massachu¬
Ohio,

New York,

and Louisiana.

Pennsylvania
On

special

September

15

and

16

the

Interstate Commerce Commis¬

Comlnissloner
necessary In
the Uniform Bill of Lading recommended by the Commission in
June, 1908.
This recommended form has been generally ac¬
cepted by carriers in Official and Western Classification Terri¬
tory, but has not been adopted to any great extent by the car¬

sion

gave

Clements,

riers

the

in

a

hearing which was presided over by

to

investigate

Southern

carriers

hearing and

whether

Classification

changes

Territory.

were

Representatives of

arid shippers from all sections were present at the
your

committee was represented by Mr, Paton as

138

BANKERS'

Counsel.

One

whether the
Bill

of

with

gested

in

Order

negotiability
surrender
was

of

the

and

under

sesses

sion

will

also

was

the

carrying

incorporated

in

the

for

should* be
of

urged
the

the

by

that

by

regulated
clause

effect

uniform

committee,

our

the

into

the

who

not

away

by

make

It

such

any

is

unlikely

very

that the

in

pos-

the

of

President

set

are

this

forth.

Association

Council

those

Council.

the

President

and

Members

elected

are

States and

organizations.

the Association,

Gentlemen

The

:

sociation
of

at

making

tion,

its

last

draft

of

which

by

been

and notice

Committee

in

Bankers'

by

not

The

members

to

forth

set

and

according

given

By-Laws,

the

in

merely

as

all

provisions

attention

to

the

features

body,

each

member

representing

been

given

a

large

representation

in

the

the

growth

inefficient

and

By-Laws,

of the Association,

methods,

possible,

those

which,

either

the uncertainty

to work adversely

seem

features
by

of

of expression

or

.

far.

as

as

possible

modified

this

official

It

should

be

(c)

that

the

Constitution

present

ization.

Seldom

has

efforts

numerous

at

a

passed

year

amendment,

plifying, increased the confusion.

The revision

14 further
proposes the

mittees

a

be

became

either

called

necessarily

of

The Committee

on

The Committee

on

'The

were

thought best.
became
of

meet,

attempts

and
to

all

attached

The natural
and

more

provision,

to

more

and

the

consequence

particular

that

was

became

further

®bip in classes in

was

terms.

the document

features,

provides

his
as

Committees,
Special Council Committees,

and

Federal Legislation.

'

,

Membership,
Committee,

that

shall be elected by the
The

to

all

committee
its

at

first

of

most

two,

one,

Committees

to

member-

own

and

three

meeting after the

organize these committees

f°r such terms, and yearly thereafter

al-

Council

permanent

Executive Council from their

each

Council

tbe Constitution

uncertain, and because of lack

antagonistic

in

members

The Protective Committee.

-1*

evil

wherever it

of its

one

Associa-

that

Law.

The Administrative

of developed weak-

or

original draft,

vague and

apparently

some

the

The Finance Committee,

subsequent amendments

correct

elect

of

and

...

bring with it

construction, failure to provide

and

ness,

to

upon

shall

follows:

as

organ-

original draft was inirriedly prepared, and with little knowledge of the requirements it
would

See¬

organization of Permanent Council Corn-

of which, instead of sim-

not

the

two classes of Council

proposes

on

did

to

tem.

pro

The Committee

that

many

is

Council

Permanent Council Committees
'

remembered

The

member-

as possible
of representatives of the general
membership of the As-

body

chairman

'

to the best interests

of the Association.

growth covering the entire period of the existence of the

a

soeiation.

the

reason

poras

Council.

Committee, has

ship of the Council, and while granting recognition
tions, have endeavored to keep the Council as nearly

in

of

con¬

integral

of \

absence the Executive

Constitution

present

as

actual

an

to an

(b) The revision provides that the President
tion shall be chairman of the Executive Council

far

so

Pres-

A

of

of

phases,

in

nominated

President, and the

officio.

ex

order

correct,

the

Council

the existing organic law and have endeavored to
study thoroughly
the general condition of the Association in all its
to

of

Association

Sections

have

a

a

careful

this

^on °f the membership of the Association for his
action
member of the Council.
For several years the
different

'

has given

of

stituency and thereby becoming responsible

therein required, and which

as

members

heretofore

as

heretofore,

as

The

States ;

absolutely

representative

As-

revision of the

manner

Constitution

published

submitted.'.

herewith

American

proposed

a

made

the

to

duly

•

the Constitution,

The

herewith

amendments,

amendments

has

the

general revision of the Constitution of the Associa-

a

different

Y°ur Committee has been
strongly of the opinion that the Executive Council should be as nearly as possible an

meeting at Detroit for the purpose

begs leave to present

Constitution

is

annual

of

are

the

•

committee appointed by reso-

a

Convention

and

Vice-President of the Association,
ex-presidents
for a period of three years
immediately after

idents of .the Sections

of the American Bankers' Asso-

undersigned,

Vice-President
Vice-Presidents

°*- ^e Association

of the Constitution.

elation, in Convention assembled:
lution of the General

in

(a)

the expiration of their
terms of office
To

and

State

is composed of members
elected by the members of
the Association in the
various States,
Groups, and the District of
Columbia, and of the President of

Commis-

.

Revision

on

of

Executive

tha different

by

as

change.

Report of the Committee

authority is

supreme

merely nominated by such Associations

Fourth—The
Executive

many

now

by members

not

are

duties

Vice-Presidents

elected

contended

negotiability which the Order bill

credit.

State

This

and

law
take

would

Third—-The

the

bill.

The

Provision is made for annual

sessions and special sessions of the
General Convention.
Provision is made for the election of a President and
Vice-President
of the Association and
State Vice-President.

Revised

existing law, and thus destroy its negotiability
of

vested in the General Convention.

bankers

the

of

face

of

further

instrument

an

it

on

Second—The General Convention.

changes sug-

changes

solely

the Counsel

attributes

these

but

clause

a

extent

be

negotiability

contract,

in

and

of

liar-

conditions

the

in

number

a

be

suggestions

making the bill assignable, but limiting its

the

clause,

were

could

consider

changes, desired

There

concerned;

bill

to

opposed by

that

to

as

that

carriers,

Southern

bill; another to

conditions

carriers

'Standard

the

the bill.

primarily

Southern

by

uniform

shippers
of

such

not

were

used

the

by the

the back

on

ciute members with all privileges
except that of protection and
voting, and that Branch Banks now
holding partial membership
are made full members,
thereby giving definite status to over
three hundred institutions now classed as members,

the investigation was to ascertain

provisions of the so-called Revised Standard Order

Lading,

monized
made

chief object of

CONVENTION.

year

adoption

of

by such elections

elect

to

each

of

such

impossible of lucid interpretation.
The design
of this
Committee has been to endeavor to
preserve the good of the present law, to improve by conservative additions or
changes in im-

committees one-third of its membership for a three-year term.
Such committees to elect their own "chairman.
The
Special

Council

committees

portant features and above all

Council

may direct.

as

possible

logical

a

to

make

the

document

as

nearly

instrument,

readily intelligible, and one
subject could be easily found in its logical
place.
revision submitted, the "Declaration"
and Article 1

In

the

unchanged,

subject

to

but thereafter the entire

changes.

instrument

Many

retained

are

to have tbem appear

placed in
In

clauses

and

sections

the

General

its

Convention

the

organization,

Third—The

officers

'

Fourth—The

of

the

supreme

'

Association,

authority,

of

its

their

its

organization,

of its

terms

of

committees

and

their

their

and

a

kinds,

creation,

provision

Constitution,

the

are

provisions of the Constitution

This

outlines

tee desires to
of

as

the

indicate to

*

First-—Membership.
outside

same

of the




as

one,

as

the

carry

into

The commit-

prominent features

two,

a

Treasurer
of

members

remain

prac-

exception that members
are

made

asso-

of

three-year class,
of

the

the

Associa-

Finance

and

Corn-

expenditures

same,

; but possibly more-stringent,
require the adoption by the Coun-

may

Committee

Chairman

as

General

is appointed
of

Convention

the
as

by

Executive
now

their

three years'

Committees

Session

Standing Committees

and

term

whose

the

Finance

President

Council

from

remain

names

as

are

may

service, and

of

three

years,

Association

term

the

has

and

It

occurs.

shall
same

expired

be

a

other

shall

It

\

and

Special

each

at

Committees,
or

three

Special
by

the

classes

Convention

of

the

filled by appointments

vacancies

be

vote

from

that

than

more

provides

immediately

pending work of the Convention
between Conventions,

be ordered in

also provides

also

and

appointed either

are

member of

time.

of

are

Committees,

such committee except by the unanimous
Session

States

the

appropriations

or by the President

committee at

..

jurisdiction of the United

of

Chairman

upon

Standing Committees,

of the

Membership, qualifications

be

the

Protective

in which the vacancy

effect

compared with the present

heretofore with the

to

and

vacancies from the expiration of term

prac-

amended.

the convention

change in the proposed revision

tically the

as

to

plan of the proposed revision.

instrument.

approximately

Convention

by

for

necessary

the

unknown.

heretofore.

as

Eighth—Such By-Laws

members

the three classes of the Council, and

By-Law for the extension of their number and their
control.
Seventh—The method of amendment of the

tically remaining

three

restriction

Committees.

authorization

and

Vice-President
The

the Association

office, powers, and duties.
and

class,

Fifth—(a)

Convention

Sixth—Sections

the

(e)-The

qualifica-

committee.

Fifth—General

of

Committee,

powers,

tions, arid elections of its members, its
authority, and duties; its
officers and their duties, and the
organization, membership, and
duties

control

The revision provides that it shall consist of three

two-year

remain

'

Council,

to expenditures,

as

cil of standing rules,for the direction and
control of the

terms,

in

extending to the

,

The result of the revision

dele*

*

'

.

Executive

the

mittee.

qualifications

subordinates

the

as

to the Council

compensations, and extends to the

together with the Vice-President

the

tion,

as

appointed

members of the Council of the one-year class, three

are

thereto.

gates, and election of its officers.

and duties.

cover

or

The Finance Committee is changed in its composition in

this respect.

.

t

Association,

(d)

present

°

to

or

finances of the Sections.

be,

'

•

proposed the committee endeavor

First—Membership and all the incidents
of

the

in their logical order in the instrument

following subjects:
Second—The

of

salaries,

elected

of expenditures,

control of all officers and of all
or

virtually in their entirety, but in order

position.

new

the revision

instrument will

either

be

Wide authority is given

the matter of the supervision

wherein any

remain

to

the

no

one

that

no

class

member

standing
member

reappointed

upon

of the Cohvention.

whether

appointed

for work

during the interim

for

the

shall be appointed by the President unless
otherwise ordered, and the first class shall expire with the Con-

it

unlesk especially continued by the act of the General

vention,

tinuance

discharge may not be overlooked, and in order

or

Committees and

entitled

business

of

order

tion

may} seem proper.

it

shall

be

not

membership, and it is especially provided

that

subject to the rules enacted for the control

and

and

Convention

General

membership of the

dent

Committee,

heretofore selected

been

tive Council

further,

to

has

the membership of the

indefiniteness

the

surrounded

the

It would be

this Commission.

uncertainty

and

appointments
a

grave

under

the

not

of

the different

in

States and

by

has

their

this

In

become

establishment

it

connection

member

a

of any

also provided that
ecutive

Council

of

Council,

is

that

provided

member

Executive Council

the

shall

also

disbursement

the

control

of

funds

any

tion

of

original

makes provision

also

under

resolutions

in

the

disapproval

to

the

of the Executive Council.

This is

for

appropriate order the presiding officer shall without
the

submit

the

to

will pass

shall

apply

pot

remains.

•,

Fourth

I/aws

stricken

are

The

Fourth

subsequent

now proposed

as

States

is provided

system

the election

The

having

of

than

less

members

Presidents and

the

members of the

proposed

Sixth

that they

There

omissions fn

many

need

attention

cited

to

to

no

avoid

the

for

Sections

purpose

submits

for

There

is

of

Convention.

of

the duties

of

ing his term of office
his
to
no

official duties.
the

for

provision of

'

still, however,
few

A

emergency.

some

may

be

'

the

his

resignation,

things

may

no

or

of

organization

the

the

estab¬

President.

There

is

no

provision fix¬

providing for the time of his assuming
same

true

in all respects as

consequence

of which there is

things
in

becoming

be supplied

for

provision made for the

disability

are

President
of

ordinary and usual

the

in

and

powers

the

of

event

President.

the

by inference,

in

All

the

these

history of the

the

American

which

and

as

whatever
the

the services of an

accomplished

tire

account

it

taining

to
this

of

be

by

previous

policy

proved

and

it

that

by

officers

other
affairs
with

of

the

duties

officers

of

actively

engaged

Association

are

in

the

officers

of

administration
the

Executive

of

the

Council,

specified, covering the ordinary and usual duties of

insurance

had

been

the

General




Convention.

This

condition,

while

un¬

at

disposal

the

to

due

impossible to

application

cover

of

the

before this Conven¬

work

to

the en¬

cover

committee decided

the

and

that
one

the best
at

subject

superficially all matters per¬
bonds

surety

revised,

attention

feels

it
to

adopted

This

committees,

committee

was
the

relating

as

and

that

years

obtained

repotts

showing

old

from

that

by

tire members

of

faulty

and

the

decidedly

the

old

in

of

to

mem¬

adoption

was

of

December,

of

attention

date.

recent

should

be

im¬

pressing moment

to

de¬

could

more

in

the

and

fidelity bonds.

Bonds.

adopted by the Association
Your"

antiquated.

secretaries

of

copyrighted

this bond.

received

policy

fidelity bond

of the Association.

conditions

had

its

this

thought

copyrighted

and

policy

question of

copyrighted form of

fourteen

tions

largely

to

be

would

Fidelity
The

committee is

money

diligent

a

attempt to

an

and duties have been

All

of

amount

time in -which

Association.

insurance

your

first

by

se¬

Association.

the

While

vote

not

in

fortunate

this line of work, and

expert in

this

by

Therefore,

obtained

burglary

burglary

1911.

small

limited

activity.

and

bers

the

the

at

trained surety

a

was

him.

by

recognized

of

would

time,

A

of

and

was

field

result
this

been

committee

The

secretary

rendered

In¬

Burglary

and

of

the assistance

that

needed.

was

Bonds

held its first meeting in May,

this year,

realized

was

man

Mass.:

Boston,

Fidelity

on

has

services

On

Association,

Committee

appointed early in

meeting it

.

Chairman.

James,

Fidelity Bonds and Burglary In¬

on

Bankers'

Your

insurance

Wexleii,

E.

by Oliver J. Sands, Chairman.

surance,

imputed to these officers, but if at any time a conflict arose, the
present conditions would be found exceedingly embarrassing.

McNider,

II.

R.

Report of Committee

tion,
is

,

0. E. Dunlap,

Gordon Jones,

curing

Constitution,

present

President, and there is nowhere a state¬

or

The

death,

Association the

in

provision

office of Vice-President,

provision

amendments for the revision

the above

,

committee,

There

lishment of the office of
ment

action

your

W. J. Bailey,

To

I

adequate

no

have the whole

rather than

>

existing

now

great moment, which

conflicts

illustrate.

Annual

the

to have the
principle muti¬

the preference

with

and

Group

a

State Bank Section, and provides

a

its efficiency or ineffi-.

of demonstrating

hand,

Sol.

under the Constitutional

Section and

the

that

demonstrate

by misfit amendments, the Committee respectfully herewith

lated

*

members,

be established by the Executive Council.

may

are

effort

an

the one

draft shelved

entire

(

confirms

short and fair ex¬

very

a

will

circumstances

C.

Nominating Committee.

By-Law

important and others of

*

have

on

surance,

National Bank

the

representation is eminently fair to those who seek it,

provides for the election of State, Vice-

and authorizes the creation

.

all

Gentlemen:

The

a

of

By-

present

Executive Council.

the

of

Fifth By-Law

new

have

and it is publicly

tender is insufficient,

inserted.

constructed

Groups

and

en¬

single branch of the Association, and

placate one

who believe the draft injures the usefulness of their

of

ciency,

still

provides for the election

hundred

one

representation, in

absolute

of

has departed

indeed

yielded much,

plan

of the Constitution.

and new By-Laws are

out

By-Law

of members of the-Executive Council."
In

has

original

,

of

Articles

lead to unmer¬

A full understanding will make it mani¬

This Committee believes that

thus

and

The further

-V

all

at

Individual interests and

proposed .fix dues for all classes of members.

and

without temporarily

adopted

or

antagonism

With the hope that the draft may be adopted in its entirety

the affirma¬

Constitution,

the

to

,

The By-Laws as
The

amendments

to

enacted

perhaps unjust only to the general body of the Association.

and

the

provision as now contained that the proceedings under this Sec¬
tion.

made

determined that the

lender

A vote is imme¬

next matter of business.

the

to

be

committee

to

amination

tive, the resolution will be in regular order, otherwise the Con¬
vention

Reforms

that will maintain the dignity of this great

spirit of

their

from

Section.

debate

" Shall

Convention:

by the Convention?"

and if . the question is determined in

taken,

diately

question

following

be considered

resolution

this Associa¬

But the true source

dignity of the membership.

can

a

the

gentlemen

under

tion," and it is provided that when a resolution is offered

of complaint.

proclaimed that war is to be made upon the proposed reform by

under the restrictions of " the question of considera¬

introduced

the

that

now

This provision is

approval or disapproval.

that

having tendered a compromise, some members of a Section

supplemental

ordinary rules of submitting such resolutions to the Ex¬

ecutive- Council

effort

some

remedy the wrong.

causing

deavoring

pro¬

ceedings of the Convention, without reference for the approval
or

uncover

for complaint and relieve

cause

the proposed draft.

far

for the introduc¬

the proper order in

dignified

and

and

ills

organized opposition to one of the leading features of reform

an

pro¬

fest

revision

real

ited antagonism, so at this late hour we observe an attempt at

vided.

Seventh—The

consistent

a

many

imaginary interests of larger bodies practically

may

so

to

reforms

least

make reasonable financial provision for the needs of the Sections,
and

and

reason,

there is also present the knowledge that the power lies

them
No

It is

heretofore

as

great

To those, therefore, who are conscious of the existence of

wrong,

in

Sections shall be under the control of the Ex¬

that

with

be pointed out, but it is only the vigilance of

remedy may

body.
a

may

of the established Sections.

one

mindful of the

It is hoped that a fair trial of the new meth¬

the^ membership

State Bank Sec¬

any

and '

rule will withstand the devious arts of the " seeker."

No written

au¬

additional

two

again,
assem¬

merely sharpen the wits of the schemer to find the way to evade.

By-Law is proposed which

a

the

by

viz.: A National Bank Section and a

Sections,
tion.

tMe

that

abate

imaginary.

The

by By-Law, and in this connection
authorizes

and

never

voiced in speech, and reinter-

instances

many

demonstrate

made To

will banish all

ods

authorized to be established and regulated

are

are

that it has been

say

tion from some standing causes

thority from their Association.
Sixth—Sections

will

been

were

members

receive

to

in

of reform lies in the

be .elected

work ;

there

presents that a close-examination of the proposed amend¬

ments

of

obligation for their continuance.

Association

this

begs

and

'etter,

further

contemplated in this revision, and as to such general

The Nominating Committee is to

(d)

subject

any

one-third of the membership,

than

more

deliberative

for

circumstances

favorable

most

Committee

in

ated

for

membership, the adoption of this revision imposes upon the Ex¬
ecutive Council the

The great

unite to minimise the

great body, all

a

assembly

an

in Convention

The

change the general membership portion of this Commission, and
this is

such

volume of discontent that has been

and

which

membership

to

to

as

annual

an

ity of the general body.

at this juncture to

error

that

consequently any legislation is the legislation of a small minor¬

Execu¬

be selected from the general membership,

may

cure

time

seme

from

conduct of

the

to

of

eral membership thereof, and to provide that that portion which
has

The committee is

impossibility

be presented, the lack of time to properly elucidate any

value

bled

the purpose

being to recreate the present commission as to the gen¬

this

of

with

con¬

its

of

tinuation

is created

provisions for the

Association

the

of

enter¬

seeing, and the prejudices, ambitions, and disappointments inci¬

.

,

given

be

business, the continuing distractions of entertainment and sight¬

The Currency Commission is treated as a special creation

(c)

has

may

under discussion, the inclination to hurriedly dispose of

subject

filled, or changes made as to the Conven¬

continued, vacancies

that

views

lack of information

the

assembled,

numbers

that may

under which order all committees shall

listed, and being taken up in their order, shall be discharged,

be

the

with

impressed

of merit and

committee

the

widest

of the membership.

portion

any

much

meeting of membership should be a deliberative body.

Committee Member¬

ship shall be placed on the programme at the annual session of
the General Convention,

by

thoroughly

duties

its
the

to

has

make any change in this respect.

of

performance

consideration

tained

that

the revision provides that a special

records may be certain,

the

the

careful

organization of committees and the con¬

In order that the

extraordinary, perhaps

even

not deemed wise to

was

In

Convention.

(b)

and

usual

class shall expire at the succeeding Con¬

veation and the second

139

SECTION.

BANKING

most
form

Contested
■

of

of

the

bond

claims

committee
State

is

is
has

Associa¬

widely

have grown

used
out

140

An

examination

this
as

BANKERS'

form

bond
of

Association's
tions

and

tached

to

therein

this

Every

member

able

of

by the Association,
first

change

of

the

to

is

compiled

been

urged

that

end

hot

be

may

the

condi¬

the

by

to

only

com¬

to

compared

laws

other

from

to

of

insurance.

various

States

have

to

State
within
Your

the

limitations of

committee

surety

bonds

The

form

offered

Immediately

the

insurance

by

brings
laws

the

committee is a
insuring company
respective States.

in

order

this

that

report

not

may

be

made

too

lengthy,

safe
and

contract

legal

Your

committee

rec¬

This

is

panies,

.

missioners

the

business

general

class

various

of

in

the

States

do

class,

same

which

bank

not

but

separate

surety companies
bail
bonds, bonds of

the

American

companies

ciation

of

preclude

Surety

a

proper

United

recognizes

recited,
time

to

than

warrant.

with

the

Associations

committee

to

the

pay

'

these

reports

business

indicate

for

continuing
lines

new

in

column

as

expenses

of

his

yours,

'

•

II.

P.
E.

It

Oliver

J.

sands,

'

Chairman.

asked

for

a

of

the

rule,




are

disposed

to

attempt

reserves,

come

a

was

secured

Library

the

as
a
result of letters requesting banks to send to the
financial publications which they have formerly destroyed
Specimen bank advertisements aiul 2,200 pictures of

discarded.

and

banks

have

bankers

also

been

added

to

the

files.

To the
Reference collection of books on banking,
association pro¬
ceedings, government documents, statistical manuals, and bound finan¬
cial
periodicals, 300 volumes were added during the year.
Of
the
1,800 volumes now in the Library, 1,435 have been added since its
organization, and but 48 of these have been purchased.
All other addi¬
tions have been
gifts, exchanges, or permanent loans.
It is
hoped,
therefore, that a separate book fund or a larger annual appropriation
may be made to provide for the purchase of certain standard reference
works and books on banking which the Library still lacks.
The books

in
of

the

Reference

the

collection

addresses,

thousand

have

been

articles,
and
have been

indexed

statistics

entries

new

added

to

on

cards

which
the

card

they

by

the subjects

contain.

catalogue this

Four
year.

A

special feature of the year's work has been the collection of prac¬
tically all available pamphlets and addresses, with thousands of press
clipping comments, on the currency question.
To the Library's very complete record of
Currency Reform, dating
from the nineties, was recently added the gift of a set of
the Sound
Currency publications of the New York Reform Club.
Material on the
proposed Federal Reserve bill is being consulted daily at the Library
by bankers and others.
Many loans of material on the Aldrich plan
w'ere also made during the period of its discussion.
Efforts will
be

particulars wherever
bond or burglarv insur¬

surety com¬
settlements
there

may

and

when

of

improper

•

«

Losses.

a
cast of contested claim, either under
surely
ance,
has come to its notice, and we are of the
opinion that a series
of reports from this committee to the banks of
this Association should
be inaugurated for the purpose of
assisting the banks to avoid appli¬
cations, or insurance contracts, or other conditions that
endanger the
collection of their claims.
It is a fact that a
majority of suits would
have been avoided if proper precaution had, been
observed in the selec¬
tion
of
the
Insurance contract
and
the method
of
obtaining same
Again, while your committee does not- believe that the

Library and Reference Department to
on
banking subjects wanted by mem¬

this material
is being looked
up
and prepared for mailing,
reporter comes from one of the financial papers for the pic¬
biography of some well-known banker, to find out what States
have blue-sky laws, or what bankers are doing in
agricultural exten¬
sion.
The answering of this question
may
lie interrupted by a tele¬
phone call from a New York City banker asking for the total amount
of deposits in national banks, or by a messenger from a banker
in a
near-by New Jersey town who has sent oyer for something on com¬
mercial paper.
A young bank clerk may take advantage of the noon
hour to come in and consult the Library's reference books, or to secure
material for a debate on some banking subject.
Special collections on Trust Company, Savings Bank and Clearing
House subjects are made for the use of Section secretaries, and whether
a
question be as general as " the value of co-operation." or as specific
as
"a good system for handling passbooks." the Library must be
pre¬
pared either to furnish the desired information or to suggest where it
may be found.
'
Four thousand eight hundred additions were made
during the year
to the Traveling Loan Collection of pamphlets,
mounted clippings, ad¬
dresses, etc., oh subjects related to banking.
Much of this material

the

statement

the

While

ture

banks.

Adjustment
has

overdrafts,

letters

perhaps

Association's copyrighted
policy, and we recommend that a study of the
subject be continued
looking toward an improvement of the policy.
We further recommend
a
continued investigation into the present schedule
of
rates applying
to the various makes of safes and additional
charges due to surround¬
ing conditions, looking toward a reduction in the cost to the
committee

of

information

Association.

banking, days of grace, employees' pension
credit statements, and real estate loans.
from a banker who is to make an address before
his State convention, from another who wants pictures from which
to
select a design for a new bank building, or from an
enterprising coun¬
try bank cashier who wants specimens of bank advertising which will
suggest ways of - increasing the deposits of his bank.
funds,

Insurance.

in

supply

the

widely different as branch

The

instance,

made

function

the

and

of

The requests received cover every phase of practical
banking from
Acceptances to Zone Systems, and they come from country bankers,
city bankers, from bank clerks and bank directors, Association secre¬
taries and business men.
A morning's mail may
bring requests from
bankers in as
many
different States for information on subjects as

Association meet this organization of the
.systematic and intelligent fashion.
1 The Asso¬
for the maintenance of rates does not
reduction where the facts warrant.
.For

be

is

secure

bers

a

should

'

Bkckwith,
I)unlap,

Report of the Library and Reference Department.

Companies

thinks

may

oflice.

respectfully

,

its

committee

under

be

,

Bankers'

in

work

conditions

the

acknowledges

'

-

from

that

non-members

Insurance

would

gratefully

V

"

business

States

on

a

field

such

A

O.

other

Burglary

as

wide

a

along

and

-

As previously stated in this
report, your committee finds a form of
burglary policy copyrighted by the Association December 26
1911
and by reason of its recent
adoption, has given its first attention to
the subject of fidelity bonds.
There are a number of
changes which

panies,

of

restrictions

Very

.

Your

names

Departments
of
various
State
productive of good results.
the most efficient co-opera¬
tion and assistance furnished by Mr.
Thomas B. Paton, the Associa¬
tion's General Counsel, and the great services rendered
by Mr. B. A.
Rufliu, the secretary of the committee.

and

Government, by reason of the large volume of bond
employees, is able not only to obtain a much lower,
rate than
the banks on classes of business of the
same
hazard
but
also to require the surety companies to attach a rider
to their bonds
certifying that the. rate charged is not more than a given
per cent,
greater than that charged at a given date previous.
Also, the Gov¬
ernment provides
its, own form of bond in every case, and
requires
the surety companies to use the same if they write the
business.
The
same
general comments are not applicable .to burglary
insurance, for
the reason that the rates are determined
by the make, age, and condi¬
tion of the safe or vault; the surrounding conditions; the
population
of the town ; the police protection, etc.
Your committee submits that
this
whole
question
of
rate
is
susceptible of
improvement if, ap¬
proached by
some
properly authorized body,
such as
the
Insurance
Committee of this Association.
Insurance

the

and

relations

•;/

bank

in

are

In conclusion, your committee wishes to
emphasize the need of con¬
tinuing this work, and it is believed that its field of usefulness is sec¬
only, and perhaps equal to that of the Protective Department of
the Association,
and the committee recommends that a sufficient sum
be appropriated to provide for the continuance of the
work, including
the employment of an able man to act as
secretary of the committee,

is included is more
profitable to
classes, such as contractors' bonds,
attachment, appeal, replevin, etc.
The surety
companies are organized into an Association principally for the pur¬
pose of maintenance of rates.
Through this Association reinsurance
agreements are perfected, a general policy for the conduct of business
outlined and other do-operative results obtained.
Obviously, it- is wise
the

surety

with

your

of

or.

ond

.

your

closer

Your

ing fidelity bonds covering the honesty of officers and employees of the
banks for $1.80 per $1,000, against $2.50 per
$1,000 generally charged
by surety companies, and depository bonds at $2.50 per $1,000, against
$5 per $1,000 charged by the surety Companies.
The net income of
the Kansas company for the- first six months
in 1913 Is more than
15 per cent, per annum on its entire capital stock.
Again, the State
Bankers'
Associations
in
a
number
of
States,
amdng them- being
Georgia, Iowa, Indiana, Illinois, and North Dakota, have established
Insurance
Departments
through
which
a
large volume of business
of the banks in
their respective States is being handled, and almost
without
exception their experience, shows, a sufficiently wide margin
of profit to the surety companies to warrant a material
reduction in
rates.
Reports filed by the surety companies with the Insurance Com¬

the

time

'Bankers'

committee is convinced
that
the
rates
on
fidelity
bonds and burglary insurance may be
materially reduced and leave a
fair' margin of profit to the surety companies writing the
policies.
For instance,
the Bankers' Deposit Guaranty & Surety Company, of
Topeka, Kan.," owned exclusively by Kansas bankers, and restricting
its territory to Kansas and its hazards to
banking hazards, is writ¬

other

discrimination

no

in the Association's
copyrighted bur¬
restrictions your committee believes can be elim¬
improved form, after which the use of the copy¬
should be permitted only in their
eutirety.

above

a

but

Association

Signed
.

ques¬

copy¬
of
the

Monthly
Bulletin
could
be used
by this committee to great advantage.
Inquiries di¬
rected to this committee by any bank
upon any insurance matter could
be
promptly and intelligently discussed.
Some attention
to
reform
through legislative action could be considered.
The establishment of

question that has received the careful consideration of
your committee. "
It is not proposed to ask the surety companies to
handle any class of risks'except at a fair
profit to the surety com¬

that

the

*
'

members

which
new

committee

lines

from

that a
short description of this bond be
prepared, pointing
advantages, and applying the defects in various contested cases
to the several conditions of this bond, and the same,
together with a
copy of the bond, be forwarded to every bank member of this Associa¬

Rates.

than

Miscellaneous.
the

its

tion.

present

a

forms

Your

ommends
out

furnish

the

in

righted

desire
compiled
and

all

to

policy,

inated

we

experts,

of

out

showing that litigation under bond pro¬
tection has grown out of this one condition, and in one case at
least,
the failure of the surety to pay caused the appointment of receivers
for the bank.
Prompt settlement of large losses, particularly in the
case
of
the
smaller
banks,
Is oftentimes absolutely necessary,
and
your committee cannot too strongly emphasize
the need of safeguards
not provided in the Association's bond copyrighted in 1899.
The bond
copyrighted by your committee provides that no preliminary application
is necessary, and specifically states that no statement of facts in
any
application or other outside writing which might be claimed to bb
an
inducement for making this bond shall be allowed in
any way
to
affect its validity.
•
•
There are other advantages in this bond which might be discussed,'
say briefly
that the bond is a very clear,
from the experience and study of both
surety
has the fullest indorsement of this committee.

others

comes

Association's

directed its secretary to issue
surety companies permitting the use of copyrighted
banks, but recommends that the surety companies be

the

for

glary

lft fge percentage of the contested cases under
out of the inadvertent misrepresentation of
to the status of the accounts of its employees
the completeness of audits.
The record of case

to

for

the

The

using the copyrighted forms, so that some steps may be taken look¬
ing toward securing their membership in the Association.
With reference to
permitting the surety companies to attach riders
or
indorsements
changing any part of the copyrighted forms,
your
committee does not consider this
permission a wise one.
On the other
hand, it is desired to give the banks the benefit of using
any
part
of the copyrighted forms as the banks
may demand, but in the event
that change of any nature is
made, the name of the Association shall
be eliminated from the
policy.
This question has arisen principally

the applying banks as
officers, and as to
after case has been obtained,

but

permitted

of

use

other
States
either
admit
Your committee has,
therefore,

requested

grown

and

be

the

.

and

declaring a restriction
copyrighted forms to Association members only,
discrimination.
The Insurance Commissioners of

the

unlawful

to

forms

en¬

finds .1

has

whether

was

should

of

use

license

your

the

of

determined

an

doubt.

time

surety bond.
insurance, and

of

the

Forms.

has been
held for some time,
heritage from previous committees.

a

twenty-two

governing the conduct of the insurance
business, limiting the opportunity of insurance companies to escape
paying claims and safeguarding the rights of the insured.
Because of
the
comparatively recent growth of the burglary and surety busi¬
ness, State laws in respect thereto have not kept the pace, as in other
insurance matters.
Therefore, in many contested cases the holder of
•the surety bond has found himself at a
disadvantage by reason of his
inability to obtain an application of all the insurance laws of his
contract

Copyrighted

which

as

reports
the ex¬

thereon.

and whether the surety companies should be permitted to
indorsements or riders changing any part of the
copy¬
forms.
Your
General
Counsel
furnishes a report from
the
Insurance Commissioners
of
seventeen
States

your

The

committee

any

the

forms

Association's

the

righted

be

time

that through the
have the benefit of

so

Association,

committee calls your
attention is a description of the insuring company as INSURER, in¬
stead of surety,
and a description of the protection as INSURANCE,
instead of suretyship.
Surety bonds and burglary insurance are new,
acted

experience,
banks may
comments
of

the

Use

to

question

forms

attach

the

adopted

to

which

bo

righted

of

to

a

their

various

with

committee

to

but used by the banks constituting its membership.
bond

together

is

in

this

of

License

.

your

tion

Counsel.

carefully

.

.

This

has

which is at¬

General

consider

to

it

of

copy

a

Association's

the

Association

bond,

bond,

having

same

assistance

this

this

of

form

new

of

committee

your

cases,

your

perience,

the

with

all

may have come within
of this committee the

various

the

that

with

the

of settlement that are apparently
unfair, and which
wishes to investigate and report upon.
We recom¬
the members of this Association be
requested to file
committee
the
particulars as to any contested case that

many cases
committee

mend

has indi¬

together

the effect

studying

contested

are

your

companies

conditions in

considering

companies,

under

cases

surety

this time,

to

up

After

and

the

by

dangerous

or

surety

contested

many

collect

to

use.

form,
upon
a

as

provided

faulty

in

the

report,, the

the

of

able

now

copyrighted

with

The

been

by

of

forms

exception

copyrighted

mittee

conditions

has

offered

contained

adopted

other

contracts

bonds

details

the

and

without

almost

several
forms

into

bond

committee

your

cated

of

CONVENTION.

continued

to

make

possible.
As

the

Association's

currency

collection

as

complete

as

„

result

of

the

growing use of the Library by Association mem¬
bers, more than 2,400 pieces of reference material have been loaned
during the year to bankers In thirty-seven different States, in Canada
and
Hawaii, in addition to the inquiries answered by telephone, by
*

mail,

a

and

at

the

Library.

-

.

•.

,

Marian
.

R.

Glenn.
Librarian.

Report of Proceedings.

Detailed

THIRTY-NINTH ANNUAL CONVENTION,

MORNING SESSION.

this occasion

1913.

REYNOLDS, Acting President, presiding.

ARTHUR

Chairman

Reynolds:

T

will

this Convention, and I take the

when we had hoped to open

time

welcome

on

us

item

first

The

INVOCATION.

,

Old South Church,

George A. Gordon, pastor of the

be

maker of the world,
mankind, the earth is Thine and the fullness thereof,

father of
the

founded

hast

the
Father, for the bounty of the world,

the seas and established it upon

upon

We thank Thee, our

floods.

for those who till and

live

titudes who

and worthy muF

profession

great

the

for

mediators of the wealth of the

here

make

them

and

more

stand for these

more

influentially

ended in

offer

Christ,

our

Lord.

our

Beal,

P.

Thomas

and

of

I

of Jesus

House,

for

few

days

and

I

Membvts

the American Bankers'

of

'I

ciation.
in
us

to

interests of

try

extended

to us.

in

maintain

trol

in

even

work.
varied program of the week and
us feeling that we have done, our

We

welcome

best

to

which

Response

may

you

to

prove

country

all

to

you

only trust that

that

you

we

all

the

leave

we

are

all bankers of a common

by Arthur Reynolds,

Acting President.
Mr.

President

of the Boston

Clearing House

Association, Mr.

I

am

when

sure

on

that

I

voice

the

of

every

behalf of the members of this Association

their deep appreciation,

was

so

generously
for

sociation

this

one

present

I express to

invitation which
extended by the Boston Clearing House As¬
meeting in its home city, but also for this

you

not only for the

We

We

acknowledge with equal pleasure the hospitality
extended
look

ment in

us

by

forward

in

the citizens through

traditions

that




appeal

and wel¬

Mayor Fitzgerald.

pleasant anticipation

this renowned city whose

[Applause.]
United

the

of

to the

regard

in

did

We

States

that there

think

to your entertain¬

history abounds with so many

to the pride of all.

has

suppose

ing

to

sure

told

and

Mayor,
the

be

a

were

I

am

best

1

of

the

nity

show

to

country,

We don't con¬

that you gentlemen would

home's

the press so that

However, that seems

weather

President yesterday morn¬

conditions here,

and

he

appreciation of the banking frater¬

my

and

bankers particularly."

of the Boston

proceeded to send in the name of another man

name

begins

B

the nominee for

as

Edmund Billings to be

ton.

Next

Mr.

Billings,

If

year,

and let

me

you

honor

ton—Mr.

nights

county fair.
in the

big

not

Beal

B,

fair

knows

over

So,

first

in

city

with

your

presence,

these

have come from somewhere—

the

perfect weather
that,

because

weather

he

bureau

Brockton

I

was

saw

is

at this season in
spent

reports.

famous

as

many

Bos¬

sleepless

And there is
the seat of a

in the West a few days ago, and at

Spring¬

it advertised, that they were going to have a

and

Now,

they

expected to have 3.000.000 people in
fair, and the

at Brockton they have a good

records show that we have
for the

Collector of the Port of Bos¬

this

Some of you know that they have good fairs out

there

attendance.

had

Brockton.

West.

111., I

whose last

important office—

that it is the first time in twenty-five years

tell you

going

another

an

the bankers will be on the job to see that

have

we

" Mr.

said:

that this has occurred* and I will do

So he

with

might

so that we

sufficient number of Democrats

called up the

I

sorry

very

can

good

get

about

him

rather, mean

been

weather here.

weather when you got, here, and then

of good

benefit

rather doubtful

now

field,

splendid reception and hearty welcome.

come

great

elements.

would

that

sentiments

here, you

interested in the economic thoughts
Bryan [laughter].
day for 4:he B's in. this bigger and better

Northeast storms and fogs, which

Mayor, Ladies and Gentlemen:

Beal

and

father,

much

Boston.

he sent in

Address of Welcome,

to

the

heard discussed

banking lines to have some influence with

we

■

have

hard enough before you left your

did

we

I

what

Bs—a!nd

more

members of the Beal

by

run

applause] ; .Beal

and

very

a

ways

have the

play as well as

love.

the busiest

Boston ball game was

Baker—three

and

being largely

from

President

the

pray

for common sense

reputation

Boston's

them

and yet showing that we know how to

is

busier

some

in

is

Then

this

The

the consideratiop of the

to

you

The ball last

busy burg.

a

the banking ability of Bill

and

,

welcome

rather

Bender

and

[laughter

son.

So

business to be
brought before us, so important at this time and calling for our.
most sober and mature judgment, yet equally calling upon us to
speak up in no uncertain tone for what we honestly and firmly
believe to be not only for our own best interests but for the in¬
terests of all the country and all its peojHe.
We welcome you
also to the various entertainments provided for you, trusting to
We

and in the North you

South

the

in

are

morning's paper*that the

convention

and

it is a great pleasure to
appreciation of the courtesies so often

show our

to

back to your busy hives of in¬

go

four Bs, you see—ever given by the banker, and

is,

gentlemen are

privilege to welcome you to this

of the cities of the Union, and

many

here

we

Barry

family

city on the occa¬
the Thirty-ninth Meeting of the American Bankers' Asso¬
Almost all of us have enjoyed your generous, hospitality

sion of

you

and

West

this

by

this

Association, Delegates and

In behalf of the banking

the

in

saw

the
Ladies and Gentlemen:

in

will be just as strenuous,

few nights

next

the

that when

think that

won

Quests:

Boston it is my

and

trust

ball—that

Convention.)

the

the open¬

and to say that I think that the next

night, I am told, was the biggest and the best and

(President of the Second National Bank,
ing

have survived the second night of Bos¬

ing of the convention,

dustry

President of the Boston Clearv
and Chairman? of the Executive Committee

benches.

invocation before empty

his

deliver

to

glad that you

hospitality, and that you hre able to be here at

ton's

Clearing-

got rather a

we

have been1 per¬
for the bankers to have listened to the address
it would have been quite improper to have asked

Mayor

am

his prayer

would

while it

because

audience,

Gordon

Dr.

mine until

of

speech

this

to

on

boys

Oh, we'll just have to let the

said:

Beal

little longer,; and so Dr. Gordon kept

proper*

the

will

■

this morning with the

the one step, I came here

Mr.

held

I

fectly

by Thomas P. Beal of Boston.

Address of Welcome,

up.

respectable

and

this city.

House, who will welcome us to

this morning and there were some hundreds of
in the embrace of the waltz and the

sleep it out a

introducing to the

President of the Boston

though I left here at

would all be present and would be able to
against the hospitality of our city the first day or

but

two;

-

take pleasure in

I

Reynolds :

Chairman

Convention

:

hand

should be on

I

here at that hour

step and

stand

august sense of responsi¬

"

Amen.

that

night

last

me

expectancy that you

imperishable things.

in the great and sacred name

prayer

to

past nine this morning, and

past two

bankers
two

bility to Thee.
We

said

half

half

May all their doings be

an

banking life of the city.

the

at

represented,

May they wisely conclude

thoughts.

their

express

begun and continued and

looking with interest to every¬
will be done by this body at this particular historic

here

calling. Give
them that salf-respect without which no man cap be great or
honest, and, as in the years that are gone they have stood for as
much of the credit and character and strength of the Republic,

Bless them in their deliberations.

of peo¬

beneficial to the hundred millions

widely

Beal

Mr.

Give them a new sense

Republic.

in

time

dignity and the indispensableness of their

the

of

the interests that you repre¬

only to

not

ple of the United States who are

its harvests.

upon

Thee

thank

We

mature it, for the needy

the hope that your

express

but as

sent,

Boston
splendid city of
deliberations here will

welcoming you to this

in

successful,

most

thing that

dwell therein.

world and they that

Thou

universe,

the

of

ruler

to

and

ours

of the Convention:

with the representatives of the

heartily

very

banking .interests

Boston:

God,

join

Gentleman

and

Chairman

Mr.
I

Almighty

of the

is an invocation

Gordon, pastor of the Old South Church, of this city.

Rev. Dr.

,

City of Boston.

the program this morning

on

•

I take pleasure in

by John F. Fitzgerald, Mayor

Address of Welcome,

liberty of calling you to order.

by Rev. Dr.

'

»

,

next introducing to
Mayor of Boston, John F. Fitzgerald, who
behalf of the municipality.

the

convention

the

so

Gentlemen, we are considerably past the

Reynolds :

Arthur

that unites us all more

one

as

citizenship.

graciously
remember
closely in the bond

have Boston

to

of welcome, and shall long

hand

American

of

Wednesday, October 8,

indeed,

honor,

an

cordial

the

extend
.

it

feel

We

DAY'S PROCEEDINGS.

FIRST

TO OCT. 9, 1913.

HELD AT BOSTON, OCT. 7,

pretty generally had perfect weather

week in October.

addition

to

the

immense

-

•

amout of money tljat you

142

have

BANKERS'. CONVENTION.

-4

brought with

Boston

to

you

brought something with

this

on

occasion,

have

you

new

policies

turbing

factors,

going to try and dispel it, and I think, after to-day, there will

created

unrest

didn't

we

expect and

we

,

be

sunshine

in

the

town.

If

there

isn't

will

I

call

the

the

up

like

that

In
I

of

Billings.

[Applause.]

welcoming the American

find

jvT

-

Bankers'

Association

Boston

to

an

propriate.
center

Boston

of

first

has

long

enjoyed

importance,

and

distinction

has, been

fostered
ment.

placing

aided,

of

bold

Boston might, with

of American
in

of Boston

courageous

and

their

Yet

industries

banking is

of

and

adventure

when

these

venturesome

and

commerce

the

In

the

Southwest
American

systems
mines

of

in

inventive
fields

newr

textile

her

been

industry, there

and

they whose

Yankee

country;

industries
with

the

with

of

the

the

West

names

commerce? with

and

is

the

qualities

banking

In

the

shrewdness.

capital

the

beginning

with

and

achievements

of

story

Boston

of

the

as

the

sagacity

and

our

all

times

the

Boston

one

ever

the

of

bidding

demands

bank

welcome*to

No

,

hopeful,

future;, and

and

this,

city

in

the

same

when

looking to you for
reform.

her

of

the

greatly

the

of

invitation

ing

House

the

the

her

occupies

our

the

appeal
feel

to

as

bank

hand

that unites

place

the

energetic,

its

Boston

history

the

will

hold

we

counsellor.

to

the

I

that

Bankers'

term of
who

rio

to

dent,"

and

in

Charles

indulgence and
sentiments

-President"
should

;•

and

doing

I

fill.

office

in

activity
its

the

stand

to

Boston

but

Clear¬

also

for

welcome

and

has

number

of

This

has
A

been

a

I

largely

year

change




in

of

the

been

expenditures

for
with

made

was

in

all

other

Association
and

financial

all

lines

Septem¬

on

bills

paid,

position.

Department.

during

past

have

personal

being

Agency,

and

in

future

the

by

infor¬

reference

Department

addition,

by

estab¬

Here

particular

In

this

elim¬

detective

W.

the

J.

Association,

that

and

Department

its

members

has

have

been

Standing

Protective

Committee,
work

our

for

who

the cost

at

publicity,

or

pro-

large

the
from

.'..r.

this

in

compensation

by

received

complaints.

no

connection

in

exceptional

demonstrated

as

ably assisted

so

the

reported

service.

letters

without

for

any

employed

beneficial,

Secret

of

case

This

of

factor.

affording

year,

wisdom

collected

Association.

pun¬

position.

strong

attention.

Association

wise

the

a

of

members.

our

such

of

protective

a

certain

so

against

in

ex¬

hence,

management

perfect

and

potential

of

the

one

years

to-day;

Each

employment

a

policy

time

and

the

iu

and

criminals

been

many

Department.

satisfactory

the

our

and

those
up

of

demonstrated

daily

of

the

four years have

labor

work

prompt

the past

of

of

build

to

for

it„does

as

we

Detective
and

of

objects

unquestionably

and

membership,

the

is

was

existence,

operations

congratulatory

efforts

both

I

of

fully

are

they are entitled to the thanks of the" Association.
Our

have

eral

been

identified

General

somewhat

Secretary.

closely

with

the

work

Secretary from the time he first assumed his duties

ciation,

especially since I

and

tive

Committee,

not

feel

in

ship

the

Association

and

carries

differences

to

of
in

for

feel

Gen¬

our

this

Asso-

to

Company

Trust

the

dear

also

the

good
as

resume

of

as

his
I

no

been

of

apprehension
government

of" the

the

complete

seems

you

in

one

so

the

service

at
to

all

of

of
the

times

us

as

a

of

and

wise
man

you

whose

" Your

and

man

I

can

offered

all,

ability

part of

and

they do

as

done

the

" Your

by

financial
has

member¬

position

a

is

en¬

the

Clearing

wonderful

work,

lines

special

in

time

their work

their affairs

is

success
are

force

in

which

all

but

apart

and

be

in-view

of

will

be

given

necessary

membership

for

their

are

meetings

favorably known

demonstrates

to

undertakings,

our

their

set

by

much

which

well

made
could

progress

and

engaged,

are

year's

House

Section.

Convention, I do not deem it

continued

their

Section,

Association,

they

past

Executive

A

your

voice

by

our

which

along

with

conventions,

which

with

Bank

Sections are a recognized

interested,

annual

of

the

here.

great

operating

our

energetic,

a

the

to

and

energy

handled.
Council.

Presi¬

ask

Association,

work

administration

synopsis of

them

particularly
at

do
the

entitled

possibilities .for

as

such

I

handling
he is

by the. membership.

Secretaries'

interest

in

undertakings

fellowmen.

can

our

Long

and

much

bodies

reports to this

These

praise,

large

so

well

as

the occupant

State

their

discuss

I

the

large

1911,

insti¬

introduced

and

Committee,
development

Associations
in

it,

in connection

want
which

present

has,

must
upon

necessarily

the

Council

regard
of

as

of

a

highly

selecting

in my opinion,

be
in

with the duties of the

to compliment the Association
I

method

and instead

work

Having served

also

1

detail

of

amount
Council.

Executive
in

The
on

The

Savings

and"

co-ordinate

large

said

is still."

trepidation,

that

hence,

with

followed

have

these

his

But, oh! for the
friend

attainment

best

have

and

responsibilities,

Section,

Section

and

take

" It

reward.

men—"

and

little

the

leader

to

upon

I

organiza¬

untimely for

was

development
a

great

chosen

their

our

high order,

found him

have

Administra¬

in

and

"

as

the first time in

conspicuous among

would

and

this

its

voice that

a

of

him,

a

it great

opinion;

a

of the

fulsome

developing

ft

extend

bow to the wisdom of that

we

1

of

be

to

widest measure of consideration

the

to

been

accommodating.

with

of

has

member

a

desire

organizing,

of credit.

share

have been
any

in

his-work

just

titled

without

and

that

of

his

to

Association,, during the past year.

tutions.

$11,000

have

we

notwithstanding that

$5,479.29

have

itself

proven

painstaking

traditions

many

graciously

called^

Huttig

represent

that

welfare

myself

the

their

of

established

members

of

"
so

For

been

gone

H.

knew

feel not

suggestions

for

large

Association
of

of

in

employees

is

its

make

criminals

valued

tection

the

entertainment

so

officer, in

to

memory

name

who

co-operation.

and

confine

the

to-day

upon

so

voice

Fitzgerald.

your

with

Association

have

desired only

was

called

this

'

.

,

long remember this occasion

successful, but

his

by all

large

very

over

years

and

Association

Protective

the bond of American citizenship.

called upon

reverence

Long will

am

the

hospitality

Boston

vanished hand and the sound of

highest ambition

r

members

city,

'

have

and shall

position

been

passing of

beloved

was

13,-

was

members,

eligible,

are

contract

our

history

own

necessity

.

during his

in

by

through Mayor

abounds

closely in

mor„e

a

has
most

particularly

our

increased

four

the

Agency,
the

into

chief

receives

National

The

affairs

.•,*/;■

indeed,

courageous and

a

I

the

of

strong

the

it

them

our

our

competent

with

v

welcome.

pleasant anticipation

ranks of those

touch of

of

home

Ruler of the Universe—the leader of all

great

So

of

welcome,

all

ever

the

in

pleasure

equal

American

has.

extended

meeting

hearty

whose

in

has

the

that

me

of

us

to-day

ours

in

and

honor,

an

that

of

who

been

past

books

a

Association

deter

against

Burns-

the

accomplished

of

^appreciated,

sure

in

upon

would

member

agency,

this impor¬

Association

behalf

on

generously

this

citizens

city

am

has

balance

of

called

of

time, in

no

inates

•

feature

the

ishment

rendered

by Arthur

of

that

by

the

their deep appreciation, not only for

you

fo the pride of all.
it

of

so

for

with

the

when,

I

growth

those

14,100

view

number

before

of

the

casli

Association

one

affairs

mation

none

of

people who

upon

of

been

enrolled
In

the

membership

our

had

the

Detective

activities

a

influence

been

lishment

wisdom and honor
of

1909

expenses,

that

wide

The "results

mankind."

millions

is

■

to

was

reception

renowned

stand:

who

which

forward, in

President

I

to

prove

Association

has

growth

1912,

account

Protective

department

At

a

•

all

Clearing House

present

one

„

I express

by

us

the cordial

to

every

acknowledge

look

history

will

expectations

777.

for

on

in

National

showed

things

a

lias

a

possibilities

for

Its

we

Association

Department

protective

erted

Boston, which,

a

President,

Gentleman:

and

Association

splendid

tion of

conventions.

Meeting,

Bankers'

the

1,

of

year

deficit

a

increased

places

The

Mayor of this city, I hope

Acting

Boston

the

Ladies

Association,

the

I

of

Mayor,

sentiments

one

has

gratifying.

the

.

We

ties

large association

any

beyond

yearj and while

Burns

1913,

"

•

of

»

-

by

This

all.

of

annual

our

Annual

American

1913,

the

most

show

increased

was

extend

perhaps,

suggestion and action

Address' of

J.

1,

which

of

Nor

in the line:

as

past
to

W.

ber

Reynolds, Des Moines, la.

that

together

us

good

stability

or

I

ours,

the

hearths

.

President

'this

of

that

history.

affairs.

1,

for

income

Protective

the

,We

coun¬

hardly

richer in tradition;

to

he expressed

around

room

is*

None

gain

in

the

September

years.

indeed

cash

have

fully exemplifying the thought of James

more

Lowell which

Annual

:

our

even

its

September

net

a

the

were

remotely touched

even

country,

alive

on

this

favored,

■,

was

yourself and benefit to the hundred

We

in

success

In

with

recent

during the

assistance.

city

in

compelled

bankers

banking institu¬

the hospitality of

keenly

more

none

With

extended

at

presence

Thirty-ninth

elements of

identified

and

The

great

our

Those

time

the

particularly

The

!

their

our

membership heretofore, and the possible

resources

for

this

Speaking from this standpoint,

this

great

attendance

demonstrating

development of banking in the United States.
the importance of lending their influence

showing is

<

a

that your deliberations may be fraught with

this

biud

common

of the

Boston's

against its

banking institutions

I offer to you

mine.

as

Mr.

the

our

large

again

closely

more

for

part of

the

upon

country,

copper

banking center

At

called

higher place in our history.

Mr.

condition

recognize

membership.

making

it

y.ou

Americans.

tant

such

and

stable

more

a

reason¬

undue inflation,

prevent

eastern

the

alone.

a

of

its

323.

in everything that has made our country great, is as much
your

are-

the

year

the most successful

(greetings to you, not. as the citizens of other communities, but

to

of

hope

rapid

story

moment during that time when the financial sound¬

a

of Boston's

"

the

organization

closely

.by the shadow of suspicion.

Russell

extreme

congratulated

after

year

force in

generally

of

one

One

forethought of her bank¬

unmistakably demonstrated.

not

more

"produced

wise

the

with

the country,

time to

story

■

of

the 'past

famous

at

pride

be

he

been

potent

so

with

growth. of

city in the country had banking

meet

sas

to

sections

sincerely

of

The

development

development

to

In

has

of

parts

but

year,

and

together

dis¬

Membership.

history of the great railroad

another

ness

all

the

far

into

essays

linked

Northwest;

the

a

made

policy and

were

there

vital

a

invest¬

during the serious business depression of 1907 and
During that critical period the soundness of Boston's

tions,

which

in

are

indeed,

from

Bankers

evidence

ers

we

gatherings

our

leaders

which

and
are

,;

of

story

financial

1908.

as

are,

genius

nurse

most

been

situation,

the

of

part

institutions

Treasury,

time to

friendship and co-operation

been

always present those

was

and

industries.

Nor

of

gen¬

present day giants were yet

have

as

building of the

are

the

and

telephone

in

of

whose foresight and courage made Boston

factor

of

capital,

we

bankers

our

of the

tale

justice, claim to have been the

saving qualities of conservatism

a

of

resources

a

in

have

foreign

infancy.

bold

fields of

men

try,

the

conditions

confidence,'

earlier

financial

the

from

themselves

business,
Assembled

of

The history

and

erous

in

the

our

of

crop

as

restored

in

of

in

unsatisfactory

an

Secretary

must come

in

banking

a

pioneer

uncertainty

the

which

with

management

of

liquidations

our

development of the. great natural wealth and
country.

as

the

legislation,

coupled

and

ably favorable
has

official duty of particular
pleasure.
As a meeting
place for this Convention the selection of Boston was most ap¬

new

and

conservative

co-operation

President again and perhaps he will send in another nomination

,

and

are

that

you

upon

done

1902

by

and

our

again

Administrative
a

progress

and

satisfactory.

members

of

the

Council

by

State

elevated the character of membership

hurried meeting of

a

few hours,

in

which

little

business

110

or

The copy of the proposed revision
large amount of .time has been
given to the subject, and without any desire to approve or reject its
recommendations, I feel the committee and its chairman are to be
congratulated and are entitled to the thanks of the Association.
furnished

two full days

least

at

large organization such as

the special

In

indebted

been marked st¬

ablest

sacrifice of individual time

a

Commission:

endeavor

recognized,

be

and,while
the results

handled,

capably

feel

aid,

I

and

that

that

Section

education

of

by

civilization, and
much of its work is performed without expectation of financial return.
Some of us who had not given the closest study to the subject did
not realize the great importance of this work, and in the hands of a
less able committee it would not be as it ist, in my opinion, to-day-^
one
of the most important works ever undertaken by the Association.
In the last analysis,
the tiller of the soil is the heart and founda¬
tion of the nation, from which there must flow through. the arteries of
trade and commerce the successful results of the toil of his hands and
the sweat of his brow if we are to be blessed with continued success
and
prosperity.
What work could we engage iu more worthy our

banking and maintaining a recognized stand¬
of; official examinations and the issuance
Social features seem to have been

means

systematic study and the Institute has grown
than personal association—however pleasant
conventions.
This policy insures qual¬
ity rather than quautity of membership,
in which there has, neverr
theless, been a substantial increase, especially among country bank
officers
and
employees.
The Correspondence Chapter now has over

to

something

mean

more

pofltable—in, chapters and

eight hundred members

and is doing superior educational work.
is, in the judgment of practical

educa¬
tlie work of resident schools. The standard study
course
in which Institute activity is centered consists of a series, of
lesson pamphlets and collateral examinations covering the theory and
practice of banking, and such principles of law and economics as per¬
tain
to the banking business,
and requires about two years of class
or
correspondence work.
Institute graduates* are becoming recognized
as
possessing not only superior knowledge of banking methods, but
likewise the qualities of persistence and thoroughness that come only
method

This

tors,

efficient

as

instruction

of

the

furnish

to

,

V':.", "v

Association library and

Bankers'

November,

in

organized

1.800

comprised of

volumes,

.

the library.

of

agriculture.
As

there is

any

feature of

the Association more appre¬

thousand copies are issued
monthly,
which
demonstrates
its great usefulness in disseminating
proper information among our members.
"
than

Thirty

publication.

our

,

There

is

-

no

satisfaction

or

is

It

a

former

supply of

to

appoint

committees,

than

.created

greater

the Cipher.Code.

The

by

committee

three members of your

sador

at

early date.

have authorized the

distribute the new Code,

General

which will lie done

with

in

V

bill

man

the

calling

that

their

while President, Mr.
attention to it, and a

The

has

Constitution

written

amended

been

Committee

report
A

the

will

regard

come

up

reading

that

sions which

many

which

banks,

successfully

out

though inany believe such a plan cannot be
This question lias not as yet been fully

here.

movement pro¬
Association as, one of the most im¬
portant undertakings of this decade.
It has been demonstrated that
no
work
heretofore undertaken by the Association has sq easily or
more effectually
produced satisfactory results.
• ..
Taken

in

all

of

its

phases,

American

the

by

I

regard the agricultural

Bankers'

times.

it

very




been

has

In the wisdom of
was

been

working was

fully revised, though it

appointed

the

old

Constitution
and

deputized

part or
that

the

toward

amount

of

will

will convince any

one

incomplete; there are vital

of

omis¬

for a careful and complete revision. < -I
important, and feel that every member should be

taken a more prominent
for the good of the banking business
Their efforts through a period of years

this Association has

labor,

proper

financial legislation

have involved an immense
by the report which they

which will be demonstrated

present.

Their
a

of

Currency Commission.

looking

whose

in Detroit,

body

exerted a wider influence

the membership, a

in the regular way.
of

is disconnected

make it necessary

this; as

the Association

Revision

Commission.

Constitution.

has never since

Constitutional

on

casual
fact

under

1S75 and

in

Taft sent a message
commission was ap¬
Europe the past

•!'
Fletcher, Chair¬
Commission, providing for the .organization of

American

the

agricultural

moted

No

first

considered

information on this subject was
Ambassador Herrick was
President Taft's attention to this sub¬

Currency
of

.

which spent considerable time in
studying the question at'first hand.
has been introduced in Congress by Senator

of

rural

.

Committee.

by Congress

pointed

;, ^

committee, Hon. Myron T. Derrick, . Ambas¬
Chamberlain, of Texas, and George Wood-:

calling

first

result

the

Congress

to

,

participated in the Third Annual
August 26 and 27, where a most

land' credits was. very carefully

Bankers'

the

to

over

instrumental

ject!

on

»

Revision

by

to refer to the

111., and much valuable

of Joliet,

has so

practically exhausted, and it was deemed
Code Committee to carefully revise the
have held two. meetings during the past

have only

T.

Edwin

France;

to

City

Kansas

of. European

question

developed.

between banks in all sec¬
rapidly come into general use that the

I

has been passed in Indiana

meeting was held.

successful

of communication

committee

to publish and

very

use

,

...

.

your

in

held

Conference

A

"new Cipher

Secretary
a

general

have completed their work and

and

year,

and

has

that

Association

more

•

timely results accomplished

especially good roads.

members, of

The

worked

codes was
a

This

Code.

old

into

method

'practical

this

of

put

of the country,

tions

wise

feature
been

•;

■

and

school bill

vocational

a

facilities, and

summer

1

Cipher-Code.

■

not only

are

whereby
the teaching of agriculture in the rural schools of that State is made
compulsory.
.
'■
' ;■ '. . . *
_• ; *.
In Minnesota the school system of the State has been revolutionized
.and. agriculture is taught in 125 high schools and 80 consolidated rural
schools.
The efforts of the committees in a number of States have met
with pronounced success, including the movement for better marketing
that

fact

•

believe

not

effective

the

bankers'

State

the.various

turned

do

\

of

example

an

ruff,

I

These committees

Associations.

Bankers'

Journal-Bulletin.

ciated

work, it

that thirty-one standing committees on agri¬
development and education are qow in existence in thirty-one
to say

be amiss

State

our

successful, and while they

full and complete report of their

a

the'subject, but are actively co-operating with the agricultural
colleges and school authorities in their various States to bring about
better educational facilities in the rural districts and better knowledge

reference department
1911, and now contains a collection of
standard books on banking, government
documents, Association proceedings, statistical manuals, and financial
periodicals.
•
■
•'
■.
• .
This library is open to the full and. free use of every member of this
Association, and it is hoped that they will avail themselves of its
advantages.
Information on financial topics can be secured through
Tlie American

was

not

present

,

"

'

may

and a more con¬

studying

decisions!

Library.

■

undoubtedly

better credit risk,

has been most

the committee

work

this

a

people.

prosperous

will

of

an

of the Association.

affairs

the

in

ence

successful producers,

and

cultural

in pre¬

advisory capacity to all of the Com¬
mittees
and Sections of the Association,
and has in the past ren¬
dered
much
valuable service in unifying the banking iaws of the
country in the various States.
This department has at all times done
splendid work, and is year by year -growing in importance and influ¬

Coiihsel"acts in

The General

their

of our committee have devoted

members

the

essential question of developing

more

more

tented

,

the

to

them

is brought into constant use by
such an extent, in fact, that it is almost impos¬
information desired upon a wide range of financial

particularly as to legal

and

topics,

to

of

educational features,
both in schools and on the farms, to enable the farmer and his family
to live a broader and
happier life and develop the business in which
they are engaged to the highest state of efficiency,
thereby making
time

and is a department that

years,

membership;

sible

'

;

Counsel has lieen much the same as

of the General

work

The
vious

Counsel.

V-<

.

majority

The

In

General

the

efforts?

as

systematic training.

from

probably

the. public,

highest ideals in American

stands for tlie

Association

generally subordinated to
and

of the
desire of the bankers

undertaken before, that this great

than in any work ever

forcibly

more

Association
in

committee to promote .improved methods

financial aud educational- development

In

aid

aud

Education.

New Orleans in 1911 that this

should appoint a

farmer, it was another indication of the unselfish
to assist
their fellowmen,
and demonstrated to

constitutional' purpose of

its

to

Financial Development and

and

proposed in

was

agriculture

graduation."

of

certificates

of

strictly

adhered

has

bankers in

"instructing
ard

this

membership.

co-operation of our
This

of

work

the

it

When

of bankers

has been liberal in its
accomplished have been most gratifying
Section is entitled to the sympathy and
the Association

.

.

Agricultural

Section

this

hopes

sincerely

and

right direction.

the

important educational factor of the Association.
have at all times been conscientiously and

an

as

of

affairs

The

Section.

a

encourage

believes this to

committee

has long since come, to

Section

of. Banking

Institute

American

The

Institute of Banking

the Currency
Conference.
was the
sessions
larger attendance of the members.
Your
be one of the vital questions of the Associa¬
the program this year will be a step in

part in two important meetings of
in Atlantic City, the other the Chicago

one

would

which

committees in Congress.

Tax Law with

preparation of the program for this Convention, it
to provide, in so .far as possible, for real business

the

In

tion,
American

.

,

Legislative Committee in

took

also

They

>

,

members of the committee met
Washington to take up the

duties,

ordinary

the

to

Federal

the

proposed Income

the country in their, desire, to

in

men

many

addition

with

and effort by many of the
promote the various lines
of work in
which the Association has been engaged.
Such unselfish
and loyal co-operation by the membership is not excelled in any or¬
ganization,- aud it exerts a wide influence on the prosperity of our
Association.
Being familiar
with the splendid work done by our
committees, I feel the thanks of'the Association is due them.
by

times

all

to

support.

and

of time;.
can only

to perform the services required and are
members and committees for their kindly co-operation

endeavored

have

they

say

In

great Association has

this

performed require painstaking judgment and a great deal
speaking for the present Administrative Committee, I

ably

subjects assigned to them.
in

work

committee

The

of

all

of activity is dele¬

Administrative Committee, which places it in close touch
the operations of the'Association, and the duties reason¬

gated to the
with

Committee.

Constitution a general sphere

present

the

Under

a

Administrative

The

the Association
is to-day it is impossible to accomplish much in the way of construc¬
tive work without delegating to smaller bodies than our annual con¬
vention many of the important undertakings of the Association.
It
has
been
recognized that the five great sections and the Executive
Council
have
accomplished much in, promoting the welfare of the
Association, but it must not be' forgotten that in addition to these
there are a
number of committees appointed for the more practical
handling of

demonstrates

me

71-

Association.

of the

Committees

The

recognized that in a

is

It

in the work.
that

assist

aud

present

to-day a strong body of men

we bave

transacted,

was

to an earnest discussion of the many
vital questions before it.
To-day a membership on the Council is one
of the most distinguishing honors in the Association.
devoting

143|

SECTION.

BANKING

devotion

to

patriotic^ service,

ciation

and

through

the work

entrusted to them should be

regarded as

they- have for several years served this -Asso¬
it the best interests of the people, giving their

as

144

BANKERS'

valuable

time

without

for

compensation,

which

CONVENTION.
is

Association

the

has

deeply indebted.

ernment,
The

Importance

Pending

of

Legislation.

Financial

\

It

will

cial

by

to

ever,

of

not

be

legislation

covered

the

The

the

the

the

of

of

of

It

the

mentary
system

principles
and

and

has

been

less
his

we

than

business

be

in

in

powers

liquidate

I

as

their

in

be

be

founded

institutions
They

of

therefore,

attend

to

must

it

the experi-

nations

be

country

to

reorganization

of

borne

the

is

bankers
seek

in

banks

less

no

The

present

our

of

which I

of

hardly

can

citizen

the

government
of

in

regard
control

the

management

the

enor-

meet

the

and

mind

the

have
of

such

of

stockholders,

of

its

trained

men

of

the

banks

by

the

nor

obligations,

than

fullest

to the
and

believe,

regard

therefore,

careful

and

be

may

for

their

that

bill.

new

will

readily

a

enlist

that

which

doing business
largely

along

the

in

the

and

the

supervision

such

great

of

.

It

people

ad-

magnitude

which

portance

than
It

the

to

and

in

must

be

subjected
Those

to

the

whereby large
the

strife

of

sums

to

purpose

the

in

not

higher

the

" free"

any

of

the

sense

of

so

of the

of

system

the

the

upon

people

hoped,

hhve

of

all

the

ac-

part

for

a

their

own

success

system

upon

of

principles

sound

a

is

to

to

.

the

in

that

past;

than

the

be

the

retain

of

final

in

for

State

business

of

success,

of

the

is

believed

of

business,

of

bankers

preparation

banks

of

and

exclusion

of

the

They

country

led

such

it

of

.

.

.

I

do

believe

not

that

banks

that

affkirs,

with

the

most

times

tlon

proper

the present

at

are

legitimately entitled
extended

liberal

more

mitted
•

way

I

to ull

fban

of

causes

it.

to

freely

more

our

time denying

anywhere

of

in

system

hot

through
just

seem

fair

or

to

system In an experiment
It

is

will

belief

my

work

sequent

in

the

will

a

large

and

tricts,

with

and

destroy

business,
One

in

and

of

under, conditions

at

institutions,

through
Is

country

of

least

which

now

as

will

their

owe

favor-

as

large

so

satisfactorily

our

the

,a

,

of

the

the

so-called

country

individual

of

credits

0f tbe

and

wie]d

bank

interests

in

in

a

actiye

more

the agricultural
cities

reserve

and

provide

a

our

the

on

be

to

bills

by

the

receivable
of

its

Regional

correspondent
of

the

would

present

that

There

is

with

cities

be

if

the

credit

the

with

the

tbg

of

The

notes

is

should

in

/

I
...

checks

be

could

proposed

national

limited

banks
to

is unjust

their
of

bill

10

per

and

respective
capital

and

credit

beyond

be

for

the

present

for

and

might

for

reasonable

probability

by

the

in

the

as

In

the

for

have
such

same

allied

Sash

the

.ways

for

Governin

case

the

of

would

I

per

believe

representing
and

an

against

checks

would

cent,

of

assets

this

the

amount

aggregate

managed

with

of

freedom from

This

great

«

™

x

«

country

was

a

of

the

the

attend

they

the

busimeet-

heartily

are

would

take

Association

▼▼

«;

be

Interested

in

is

a

to

at

bil-

in

...

a

oppression, and that great principle

a

having

school

the

City

School

course

in

of

the

Vice-President

May

of the

St.

-

at

the

and

founded

"

to

for

the

city

that

Third

elected

Elected

Died

Herkimer
Mb.

F.

of

the

the

held

at

in

St.

'

.

of

of

St.

St.

at

Louis

Muscatine

by

National

to

the

Bank

'

Iowa
of

Presidency of

St

that

Vice-President

Commission

of

the

of

New

Clearing House Association,

Chairman

the

at

Los

of

the

Executive

Council

Angeles,

American

Bankers'

Association

Orleans.

of

the

American

Bankers'

Association

at

Detroit.

July

12

at

his

New York.

Watts,

of St.

mountain

home

in

the

Adirondacks,

.

Louis,

Mo.:

Mr. Chairman, Ladies,and Gentlemen:

•

For

.

Louis,

office,

Currency

Louis

Association

President

County,
O.

estab-

Huttig

Exposition,

Vice-President

Convention

the

.

National Bank

the

year

elected

year

Bankers'

the

entered

Association.

same

1912.

and

■

Executive Committee and

member

a

President of

Elected

held

director,

Purchase

American

1913.

.

a

Bankers'

Elected

Convention

•

as

Sophia

.

Muscatine

Louis

Third

of

same

biographical

of Fred and

son

Musser and Company,
Manufacturing Company, the

candidate

a

,

Cook,

Commissioner

given

ever

t

the memorial

i

'

director of

Appointed

during

the

1.x.

*

correct

a

»' '

his father and uncle.

a

Louisiana

1911.

system

born

in
in

and

the

-r-r

rm,A

Huttig Bros.

to

a

vote

Served

1910.

should

two

it

meetingg which wiu encourage at.

Company.

Elected
and

American

unquestioned

should be forced against their will Into

under objectionable control.

annual

of

April 13 married to Miss Annie Musser

1906.

7,400 leading business institutions

accumulated

Elected

and

20

meetings

work

bank.

cent., and that membership should be optional.
that

1891.

i897.

note.

subjecting

goveriraent control.

Elected

Louis,

received

account

the

Door

and

1390.

i904.

bank

a

by

Removed

1892.

medium.

value

as

deposit

a

important

our

common

Employed

the largest

instru-

embarrassing

banks

latter

business

banking house of Messrs.
■

i885.

money.

credit

circulating

manner

upon

the

of

who

that

lies

conventions

leave

to

results would have greater weight
larger majority of the members of the

a

'

life.

lishmeht owned by

becoming necessary.

reserve

transaction

issue

become

credits

issued

drawn.

1882.

in

substitutes

in

would

you

his

Finished

private

cities.

reserve

any

the

of

i879.

eliminates

as

money

banks

solely,

employed,




all

realize

we

criticism,

annual

inclined

February 14 born at Muscatine, Iowa;
Snell Huttig.
;

'

Government

communities,

spirit of liberty and

in

authorized

of

un-American

ability and integrity,
that is

secured

provides

to

accommodations,

issued

be

thought

sketch

largely

so

in

are

and disC0urage all conflicting entertainment,
wish for the future of this
Association, I thank you.

Dl..„ATr.D

the

reserves

do

nations of the world that have in various

perform the saifte functions
The

to

the

are

: The hour has arr ved for
Piesldent Charles Henry Huttig.

our

agent with its borrowing needs,

reserve

substitutes

similar

a

To

Association

our

just

a

1864.

entirely ignored.

unnecessarily

unnecessary

instruments

credit

which

the

large unusual

credit

be

Associa-

deliberationg>

mogt

CHAIRMAN «ETNOLDS

,

city

accepts

of

sentiments

our

Memorial to Charles Henry Huttig.

requirements

and

of

1

.

rediscount

reserve

the

customer

redistribution

borrowing

are

banking
as

with

guaranty

lions

system

willing at

co.operatlon

from

cannot

for

why the Government credit should be involved

absolutely

circulate

Such

It

and

required

touch

this

the deposit of collateral.

event

in

present

in

of

credits

reason

centralized

to

ment

be

the

individual

that

bank

None of the principal

ments

of

not

are

character

personal

should not

country

proper

to

by

adopted

give

bank

the

the

relationship of its

no

are

loss

as

close

as

as

circulating notes which

They
of

the

personal
restricts

the

Under

therefore,

seem,

reserve

deprives
,and

in

bank

of

noblest

future

enthusiastic

more

attend

«

'

.

country

be

position;

world

de-

of the country bank liberally for rediscount.

paper

It

the

Bank.

keeps

country

of

business

they

While

influence

Jn

economical

done, yet the

wider

WItb every good

dis-

where
.

The

the-nature

the

or

attend

yet

would

programm€
aml

the

work.

future

memberg

work.

is

Association.

more

upbuilding of the Associa-

the

working bodies of
our

year,

.

posits would be greatly restricted,

of

the

a

,

doing good

each

what

member

every

desire.

we

tben>

in

men

for the

of

and

strong financial

our

bodies of

con-

d

wou

of

the smaller

part

beiieve

indictated by

as

Association

a

future
year

reflecting the highest ideals and

whUe

with

the

upon

intelligent

question

carry

aC(>ord

Association

reserves

and

This

a

tlmt

tendance

Individuals.

and

is

Iiegg

aud

does

present

redistributing

contraction

all

condition

fact

j

of

cause

opinion,

jngg
jn

pres-

it

a

ban•

Association.

of the

their time and labor

increasing nupibers

ad-

the

large cities,

features

good

method

banks

many

many

in

reserves

the

proposed

unnecessary

upon

especially true with

and

world:

the

are

being

now

new

a

be such

control

the

membership each

co-operation
be

there

_to find a remedy.

this

that

hardship

those who
are

a

the

my

restricted,

are

If any evils exist in

the accumlation of

with

should

In

^financial disturbances In the past has been the

over-extension of credit to the people.
ent

country

credit to

people

else

to give

splendid
this

believe that such credits

classes

of

one

tion.

.

banking credits in

ex-

their

thought of the country

results obtained

confi(lence

large increase in

worthy

is

entire

our

uses-

or

a

with

handling of
all

credit

claim

to

the

has

proper

iook

with

country,

central reserve cities,

of

T»b Future
r

not

that

the

that

in

.

.

is

coun

it

the

of

it

that

or

given fair consideration,

self-respect

business

patriotism

classes

expeerience

be

a

management of their

that

or

so

secure

the

commerce

other

value

not

their

transact

the

the

that

the

that

be

to

law

and

the

for

com-

believed
wquld

lawmakers;

in

of

a

of

use

necessary

such

our

trusted

restricted

not

make

the

which

are

integrity
by

needs

the

however,

features

pursuit of politics the best

provided
of

to

the

not'to,.be

problem will

then,

and

that

or

is,

modifications

suspicion

served

some

It

men

question.

believed

all

to

curtails

particularly

issues.

required

which

should

a

bankers

as

are

recognizes

some

with

more

the

rather

.

it

country,

fairness

and

which

establish

contended,

note

believe

ably

be

that in

died.

parties.

enterprises.

credits

of

degree,

statesmanship

the

the

to

control

political

a

political

of

lodged in

business

the

highest

legislation

reserve

speculation,

legitimate

in

be
the

plane

proposed

finally

are

of

in

selfishness

handling

promotion

should

business

is

the

and

of

accommodations „to
their

such

This

upon

control

method

prosperity

in

control.

solved

in

present

to

country's

trained

State

with

should

.

educated

of

under

satisfied

success

justice

system

objectionable

is

supervision;

percentage

im-

and

is

able

to

important

property

system

any

which

profession

permit

-

been

to

or

,pf
that

through

cept

so

of

bankers

should

as

long

basis

regarded

that

have

on

and

business.

bankers

government

lines,

are

have

banks

banking

clearer

and

partisan

;

the

desire

a

any

will

Congress

number

to

loath

are

law;
,

a

co-operation

chosen

to

,

before

as

business

try

such

its ability

gs

information

better

of

contains

own

both

assume

It

well

as

selected

business

a

paper

believed

banking business and conversant

both

bankers

We

any

us

seems

to

necessary

experience

while

thorough,

adopted,

it

the

with

act

appointees

the

bankers

extent.

deny

business

own

borrowing public,

could

political

found

the

which

that

Government;

the

control

our

undei-

in

now

urged the least objection

ever

the

supervision

management

bill

burdensome

army

with

banking

prosperity

measure

The

it

saying,

number

■

mercial

business

country's

in

in

must

without

cent,

or

on

a

lib-

financial system,

a

prosperity,

now
are

gov¬

principles of

goes

per

every

the

impairs their ability to serve the business ininjury to those business interests than the banks,

an

rely

only

to

principles and

members.

be

is

sound

upon

become

and

great

contemplated

are

of

-

confidence

to

terests

effort.

ever

That

70

and

lash

upon

those principles
than

in

strength

the

country's

prospered

measure

inspire

must

fivities

fele-

any

based

must

banks

apply-

in

found

have

the

banking

administrative

has

the

more

the

have

added

under

founded

are

of

that

with
run

the people.

upon

forgotten

charters.

if,

law

the

great difficulty

success

branch

a

clients,

take

world

are

only casual

whlch

banking

they

foundation

very

not

not

and justice to all

succeed

geographical and commercial cou-

under

and

welcomed

the

the

necessities

Judgment

vocate

be

to

liberty

supervision

and

recognized that

with

committees,

change

a

to

and unjust.

nation

the

the

individual

their

have

voice

unnecessary

with

our

putting

nor

are

further

go

to

thorough

bankers

or

broad

left

who

and

to

No

to

of

by

banks

men

indeed,
But

not

commercial

permanent

investments

be

the

close

share

ought

to

invasion

an

property,

should

Neither

to

the

state

labor

much

exemplified by

as

facing proposed legislation

individual

mous

of

various

States

Act

Banking

subject

its

United

other

,

adapting them

are

own

which

the

through

the

to

centuries
are

because

^basis.

To-day
as

there

which

necessary

to

diti'ons.

of

how-

the

must

It

that

seem

these

it

world.

would

ing

National

present

ajong lines of sound principles of finance
ence

desire,

I

order

fully

to1-some of the features

way

is

the

institutions

prosper

their present conditions.

the

Association,

Congress

Commission.

general

a

flnan-

be

to me,

business

of

of ' this

part

Currency

in

which

;

that subject will

as

through

Our

but

erty and equity

Into the details of the

go

Congress,

your

inadequacy

emergencies

from

secure

of

attention

they occur

as

to

me

pending in

report

your

admitted

meet
on

the

call

for

necessary

now

measure

down

come

generation.

the first

,

time

in the

his-

of

tory

both

To

temper

words

my

the

avowed feeling for simple forms and

his

to

what

make

I

officers

of

such

part in

a

God

influence—he

>

his

small

his

efforts

loss

his

loss or misfortune

through

It

he placed

that

trials

early

In

his early

While

diseases.

cancerous

bountifully,

his

friendship

he was beloved

citizen,

a

as

limited

only

was

with fortune

struggles

he later acquired plenty he gave

'

business,

in

His

friend.

credulously.
honored

even

Successful

and marked this verse:

Louis' philanthropists

untiring work and liberal contributions, and made possible
Free Skin and Cancer Hospital, one of the few institu¬
world set over exclusively to scientific research and treat¬

developed in him a saving habit, when

of such

time

the

about

was

scrap.-book a poem,

the

of

ment

was

own

in

tions

the serious loss

smile

To

control.

passed in our progress."

supplemented a splendid gift of one of St.
Barnard

the

characteristic, he re¬
from the influ¬

so

future of our great

by his

of his very striking habits.

one

for a brief period; and the young man

be

He

to show a material

first year

spirit

the

and soon overcame

his

beyond

ences

With

capital.

of

doubled

will

or

those aids, but he encountered the

causing

1886,

of

without friends

business

new.

a

the

on

he began making the record from his

not only without

was

strikes

disastrous

expressions being " political or
but only

establish

to

of his country-^-one of his favorite
social changes may occasionally retard,
who is not an optimist
country is out of harmony with things, and

future

the

in

faith

abiding

an

" full of outward honors and inward
counts greatness, but greater as

world

the

as

Louis

St.

in

tributed

•

counts greatness,

world

the

:

,

it."

counts

As

arrival

.

great

was

shoulder to the wheel, and, raising the sub¬
Exposition possible.
and Vice-President, he con¬
his time and special talent to its success.
He believed in
service to his city, his country and his fellowmen.
He had
Executive Committeeman

Director,

a

unselfish

it.

of Charlie Huttig was

The life
worth—he

As

the

made

scription,

tongue or my brain.
■.»
grateful acknowledgement to you and to your servants, the
the Association, for this memorial hour and for granting me

the last half of a five-million-dollar public contribu¬

to raise

he promptly put his

tion,

is a task beyond my

assembly,

To that time his vote was the

ever

necessary

and yet to voice our grateful appreciation and to speak
surely chimes with a tone in the bosom of every member in this

he was by no means without public
School Commissioner, an honorary

received in an election to that office.
When the fate of
Louisiana Purchase Exposition was in the balance, and it became

largest

expressions,

elected

was

great influence.

though of

position,

be called to respond in memory of

be

1891

In

record.

friend, associate, president and philosopher.

Huttig,

H.

honor to

and an

privilege

a

Charles

However,

public office.

for

ence

Assembly

the Annual

,

On such an occasion it is

presiding officer.

its,

of

loss

Association,

Bankers'

American

the
the

mourns

145

SECTION.

BANKING

The thing that goes the farthest

~

\

Toward

That

a

just

That

drive

Will

And

With

he was elected

that

ests

It means friends and the honest co-operation

quisition

of money.

goodwill

of those with whom I
of

friendship

and

fidence

in

man

every

It

was

and

life
of

this"

of employees that inspired Mr. Huttig
after the fire of 1910.
The brick
and mortar and machinery to him were the least considerable of the
elements to his success;
the real power vras in the organization of
men.
To more than touch upon his success as a banker would be to
tell bankers that with which they are as familiar as with household
tales.
The recounting of the details could not add one jot or tittle to
the ashes the plant

from

rebuild

It

bankers everywhere.

for

said

himself—-and

not

until

there are

Louis,

greeted

Hujtig

and

the

I

tired

Surely

Sec¬

thou."

" A ministering angel

to those watching and

lesson

mind;

but

air in

open

he

weakened

body

the

as

home. ' I fancy his

mountain

his

sought tli& solace
thought at going

was:

great

I

"While

had | taken deep

Let

me

■Of

holding fast to the things that

the

in St.

sky

breathe

have

sight

spirit

My

of

God

,

the far-smiling land,

and

•

back

body

my

hand,

well-beloved

a

more

deep

nature's

To

passers-by than at any other spot in that city.
said that in a building on that corner Charlie

people every day than any business man in St.
more than policy—It was the sentiment of his heart,

clasp

once

Then gently fall on sleep
And

of Olive and Broadway,

never

wish.

in an expression which

to observe share

his lips,

upon

who

slightest

his

.

his

of

vigor
of

He learned that "a man must take

corner

of

the

j

care,

out

the

thee,

to

air."

open

more

from

see

my

There,

from his scrap-book.

from another bit of philosophy

see

may

you

sown

position

a

oft

more

This was

Louis.
as

been

splendid

the

......

the

at

that

friends

his

of

One

been

steadfast soul,

a

said

been

has

were

partner,

life

his

anticipation

In

two compensations
exemplification of

the

remaining of patience
and gentleness in the face of suffering and death.
Such patience and
such gentleness made a picture that will fade only when the memory
of the observers
fade.
The anguish of disease did not Impair the

worth living."

make life
It

with

ill

and

good

had

seed

the

in

who
have

of

devotion

and

attention

first trial was to know and withstand

good soil was he content.

In

root

must

in which he was held

the secrets of his

What were

'

that his

has

facing the sure approach

There were

struggle—first,

courageous

unselfish

and

love

those

accomplishment should be

life and

his

inspiration.

an

He

success?

of

ordeal.

final

and

great

constant

ond,

for our own benefit
of bankers who may hear or

generation

them

to

The time

Not for a moment did he show any less courage

grim reaper.
the

months

rare

of

•

younger

for

and

example

an

the

recital,

the

read

of

that

:

to succumb when

will, only

heroic

with

those

to make some observations

not be amiss

may

and

ever

,

reputation as a banker or Jo the endearment

his

by other

man

than Charlie Huttig. .'

have spoken has been of his activities among men.

I

the

under

feeling toward and from the army
„'o

and no

man,

any

life are the
possessed both more
of

affairs

the daily

the love

friends and

boyhood

the

in

months before the final summons, when he found It nec¬
essary
to withdraw from such activities and face and fight the en¬
croachment of disease.
Many men have in time faced the ordeal? of

he held the con¬

regiment.

his

to

him

many

came,

A great general once

have to deal."

had confidence because of his belief that

he

that

What

toward

under

those

tributes

completely
•

of

respect

greatest

to be

the second in the United
the twenty-fifth anniversary

life means more than the ac¬

" Success in

said:

he

business,

the

said

Louis and

St.

When speaking to his employees on

States.
of

line in

that

in

largest

the

beyoud expectation, and grew

business prospered

manufacturing

and

from and

sentiment

Such

The

National Bank.

director of the Third

a

through."

and

commercial inter¬

twenty-five years.

after

Huttig

cent.

a

Come right in!
How are you?"
That friend,
the incident, saying: " I saw Charlie
He's true blue and genuine through

Fred!

returning to Muscatine, wrote of

he had so impressed the

five years

and he approached

entered,

he

" Hello,

say,

bent.;

dollars,

doesn't cost

And it
than

less

million

a

the beginning,

in

left him as

One of bis school boy friends visited

lapse of twenty-five years,

time and circumstances would cause a less cordial
he heard the same voice in the same way

misgiving lest
As

friends

kind.
a

of

the charm

extend

to

a

no

'

and

success

manly,

natural,

his office after

in

with

too,

of

earning

him

opportunity

an

"

genial,

welcome.

goodness,

and

kindness

manly

worth

It's

After

worth

of gloom

again;

the sun

of

clouds

the

away

coax

full

It's

fellow-men

its

loves

The

from the heart

that bubbles

smile

The

had

he

his presence.

pleasant smile;

a

wherever

friends

of

the most,

the friend of all classes, and he was

He was

limitation.

while,

does

and

least

the

"

Is

worth

making life

costs

as

class
with a host

worth—it had

by

'

by

the side of the road,

house by

surrounded by his beloved family and

mountain-top,

the

upon

and

beauties

the

the spirit of our

passed out

of nature,

wonders

wonderful nature.

associate and president—great spirit,

friend,

"

the highway of life,

By the side of
The

And

the

I

And

Let

press

that

men

turn

Both

And

that

men

not

live in

be

a

friend

Hath

the strife;

Yet

^

smiles and their tears,

from their

infinite plan—

be

truly

can

the highways
He

knew

form

may

of

wear

and

pity,

truth and justice.

tried

first

to

find

ladder

ladder

that

that

must

on

be

degree;
attributed—

of whatever

some

which
of

his home or

was

men

sterner

in the sterner

opportunity
mount to success;
stuff to stand the
happy

of a high order of honor,

A learned judge once said that he, as a judge,
the right, and then found the law for it.- Charlie

then he found the
way
to do it.
When standing for right he was a tower of strength
and
an
Inspiration to those around him.
" Against this citadel the
tempest beats, and around it the storm rages and spends its force
in
vain "—and
the passing of the storm
found him smiling with a
complacency that comes of having maintained the' right.
One of his friends said
that he humanized banking, and invariably
caused his listener to feel that the most trivial things were of inter¬
est.
He wore his honors so gracefully that " none could see he stood
Huttig

in

uniformly

" What's

asked

right? "

and

aught above the rest."

Though

he

reached

the

of

banking,

he

was

probably

a

beloved city.
only had to mingle there to be Impressed with the hold he had

upon

the

Influence
and

hearts of all
for

selfish

persistently




the

ends.

refused

the lesson

hast given,

.

And shall not soon depart."-

/

he

Chairman,

people.
He

He never sought to use such an
never sought public honors,

therefore

to allow

his friends to use his name or

inflfi-

first evidence of our love and esteem

the

when

was

chairman of the Executive Council at Los Angeles;

elected

was

the

elected Vice-President
elected President, at Detroit,

second when, in his absence, be was unanimously
New

at

Orleans;

without

member

Every

when

third

the

dissenting voice,

a

measurably

of

this

'

Association must feel that we are im¬
presence
will never more adorn our

great
his

that

poorer

he was

the last in this memorial service.,

and

meetings.
After

the

spection,

we

There

1906

of

tant

bank,

Mr.

built

that

tutions

of

As

of

first

York:

a

by

his

Third

the

own

of

Bank

consolidations

without

into

national

country;

after

efforts,

Nn'ional

and

he

prominence

election,

as

of

one

as

1897,

to

the

small
other institutions,

with any

became known

in

Louis,

St.

then

the

one

a

largest insti¬

of the country's

bankers.

of

attended

his

Bankers'

one

member of its most impor¬

the

our

Third

National

Conventions,

Bank,

where

his

Mr.

appointment
Association

to

work

the

Currency

increased

so

occa¬

forceful
speedily shown; and,

Commission;
that

had

Huttig

intelligent

sympathy with the objects of the Association" was
after

Huttig as

H.

Charles

recognized

byt appointing him

the Currency Commission.

Huttig,

President

sionally

of New

bank
the

for the loss of such a friend.

Piebson,

entirely

presidency

wear."

Association

bankers

committee,

Almost

deeper

compensation

no

E.

this

ablest

its

channels

be

can

Lewis

Mn.
In

lapsq of time and with the opportunity for a full retro¬
say of him,
" time, but the impression deeper, makes as

their

streams

foremost

pinnacle

greater success as a citizen of his
One

\

hearts

hath sunk

Deeply

/

in

power was

and

possessed

He was

office or

others,

the real

circumstance

time,"

of

tear

knew

of the

sides

two

rounds

the

but

very

heaven

thy form,

*

" to be a friend to man."

attractiveness

his

quality

rare

him

fortunate

"Some

stuff.

his

in

with

contact

constant

this

to

was

those who

but

whether

he was every ready

of life,

the

enjoyed
it

and

our

of

abyss

the
up

to man.

that

said

on

Thou

,

,

Mr.
It
in

gone,

swallowed

'

by the side of the road

house

a

" Thou'rt

»

,,

the ardor of hope

faint with

are

away

parts of an

me

with

on

he

and

his

became

activity
a

in

frequent

J
146

and

BANKERS'

interested

sought

by

His

ecutive

Council

1011,
In

of

all

His

history,

or

forwardness,

in

in

clear

his

manhood

work

full

Bankers'

counsel

Association,

Huttig.
a

'

of

he

of

often

was

member

a

has

anxious

for

commanded
of

advance

his absolute
the

the

the

honored

never

to

highest

all,

of

members

honesty

ideals

of

respect

a

the

and

his

in

Association.

revolted

■

his

at

spite

with
ful

such

to

and

the

his

official

of

and

pleasure

in

strength

disease

he

he was

courage,

Association

its

manner.

and

of

attentive

the

to

important

last,

matters

in

knew

as

American

but

of

Bankers'

that

its

valued

Gentlemen,
qualities
taken

from

from

members

faith¬

giving

freely

his

usual

of

manly nature,
all

to

his

the

was

the

who

lose

its

loved

community

not

his

did

honored

and

and

of

only

news

that

the

nation

a

ill

personal

that

say

midst

can

full

very

of

one

His

and

spare

knowledge
his

gifted

whose

that

was

charity

of his
wise

own

ever

do

Meek

loving

and

memory

natures,

whose

always

revere

shall

we

the

Bank

warmest

this

Reynolds:

of

of

Kansas

has

which

the

Edward

Mr.
in

sent

General

and

City,

friends

personal

committee.
he

but

Mr.

Association

Mo.,

of

and

Mr.

Swinney

his

of

one-of

been

to

Secretary will

Swinney,

Iluttig,

has

tribute

F.

President

long,

the

of

a

detained,

of Mr.

Huttig,

MEMORY OF

CHARLES

Eihvard

F.

Swinney,

during

his

last

February,

his

life,

ness

1864,

when

throughout
tegrity

and
its

to

and

the

remarkable

pathetic

that

zeal,

an

in

12,

all

a

his

of

an

his

graduation

the

service

accountant,

and

of

manager
lie

Door

Company,

hands,
is,

went

resulted

in

National
that

when

Bank

his

the

the'winter

its

was

the

the

trust

and

to

.,

.

the

the

dfe

Huttig

lovable

prise

and

Clearing
city,

Fair,

fairs

as

and

member

as

business

duties

charities,

proach,

his

the

with

whom

untimely
feel

which

to

of

he

his

was

for

sorrow

he

such

"The

contact.

legions

friends

which

those

a

to

his

model

his

at

citizen,

friend,

abode

MR.

FestUs
does

departed

and
As

Wade., of

it

fall

friend,

veheration
St.

J.

to

whose

than

Louisiana,




St.

the

Louis,

lot

memory

our

late

we

are

of

is

in

of

than

the

in

tq

lofty,

kind¬

his

of

this
not

death

to

him

into
all

to

seems

cannot

he

State

of

lution,
Chair

beloved

could

the

could

buy,

perpetuate

of

this

words

of

his

respect

long

and

testi¬

copies

of

President.
and

a

the

transmit

to

reverence

departed

our

Convention
to

deceased

our

shake."

of

memory

officers

our

seduce,

overwhelm,
interest

nor

the

record

these

in

last

Gentlemen, the hour

:

will

let

the

session.

There

memory

with

so

bowed

farewell

to

'

our

Mr.

of

the

A.

B.

is

•

late, and with

the

officers

no

objection,

being

take, up

report

by

of

reports

will

we

the

is

go

the next order

Currency

over

it

on

is
the

Commission,

Hepburn,

of

New

York,

,■

Currency Commission, by A. B.

action,
all

Hepburn.

.on

126

page

: Gentlemen, we submit .this re¬
which is explicit and plain, and the details

furnished

been

to

in print, and ask your

you

the

file1.

That

That

of

the

Currency

•

Commission

"

the

of

work

endorse,

and

sented

the

action

Committee

Senate,

in

which

all

the

of

the

the

which

Banking

on

body

in

law

full

of

passed

the

by

the

and

wisdom

been

is

the

country*

Congress,

in'order

approval
State

both

and

and

who

be

to

enlist the

necessity

recommended

elaborately
of

the

pre¬

United

pending.

now

effective

seeking

are

Confer¬

they made.

and

Currency
law

received

Chicago

amendments

have

proposed

hopes'of those

the

measure,

command

must

the

Commission,

the recommendations

law,

of

be

V
Currency

the

Congress

upon

proposed

conference,

the

to

States

urge

into the

Chicago

the

reso¬

will ask

and

realize,

currency

reform,

co-operation

of

the

banks

National.

When

Mayor

Fitzgerald

banking legislation

speaking

was

in Congress

which may be interesting to you.

Walker,

Commission of

dinner

Mr.
ner

Massachusetts,

of

the

Mr.

Congress,

and

Shoreliam

at

which

Mr.

Reed

was

asked

Mr.

Reed

to

House

Reed

to

bring

forward

replied,, with

everything

Currency

that

he said ;

Committee

a

Mr.

difficulties
of

give

Reed

Hotel, in

of

incident

an

recognize

banking

After

him

and

drawl

Chairman
the

me

Speaker,

was

Washington,

present.

inimitable

" If the

will

the
me

AJany years ago, when Joseph
Chairman of the Banking and

Walker

Walker,
Mr.

was

given at the

was

of

it reminded

the

the

floor

currency

bill.

on

which

of

by

din¬

the
of

names

charac¬

Banking
six

re¬

upon

reverence

Charles

of

report

I

few minutes:

a

approve

we

incorporating

by

Currency

that

eulogy

tender

for

-

we

ratify

we

Resolved,
of

and
a

me

the conclusions they reached and

a

putable householders who will agree

bill'

President.
of

That
on

that

and

Association
believe

its being read by the Secretary

recognize

placed

and

Hill, of Norwalk, Conn.; I offer the following

and upon

Resolved,
and

of

more

memory

language

„

loss

nor

arise and adopt these resolutions,
and

we

are."

pronounce

the

pleasure could

no

ruffle,

instruct

presented

have

to

terized

and

the

aB

.

him

Hepburn, of New York
our

was

Swinney, Committee.

of

with

re¬

star,
eternal

to

for

well

as

.

the family of

Reynolds

be

Mr. E. J.

nature

action

inspiration

to

.pub¬

above

the

entitled

end

bade

gratitude

illness

conversed

af¬

arduous

many

w&s

which

to

the
way

publication.]

B.

Any
aid

we

that
men,

their

ready

his

the

of

with

his

display

LouVs

of

Mo.:

man

to

Therefore

will

this

port

sym¬

St.

to

F.

his

who

Christian

as

calm

a

his

enter¬

his

all,

attached

a

those

his

•

which

of which

to

only

admirable
No

mingled

lamented

proud

and

to

the

to

and

afternoon

Resolved,

family,

like

where

insult

money

follow

all

us

silence

Chairman.

A.

in¬

him

the

organization

ideals

and

during

To

in

each

President.

the

ence,

standards

May

kindness

to

with

loved

[The report of the Currency Commission appears

Association

affection,

Edward

Seldom

well

without

humanly,

his

warm

no

form,

permission

in

$4,000,000

spirited.

constant

a

member..

dead

from .the

is

electing

character

high

and

he

associates, and

expressing

his

illuminated

longer be expected,

no

those

into

demonstrated

.

of

Vice-Presidents

strongly

loss

had

a

honored

an

his

became

Let

program,

Third

that. Council.

ways

without

Looked

of
his

who

was

Soul, of

Beacons

they

by

lending

His

dignified,

carried

and

in

the

and

He

life

came

that

unusual

devoted,
country

he

of

and

''-\'

every¬

,

of

was

better

to

the

inspired

this

clubs,- being active
from

opposed

disease'brought

heroically

forget

provocation

resolve

applause

in

1911, and in 1912,

He

the
low

or

approval of it.

President

the

Board.

catalogued.,

quiet

cordial.

relations

many

as

maybe
him

privately

be

in

the

about

of

public

of

hope could

temperance

a

no

here,

proper

ordered.

so

adoption

having been

Centennial

leading social

doing

bearing

and

generous

the

and,

of

Louis

of

School

prevented

never

in

was

St.

one

of

its

officer;

or

never

Can

of

the

and

that

nesses

of

he

"He served

Treasurer

member

all

his

office.

of

as

and

.

itself

and

eminent

citizen

Association;

a

to

him

that

and
a

kind

of

Chairman

distinction

advancement

powerful support.

and

belonged

sad

holding

As

the

■

country

its

$35,000,000 during

.

Council

chosen

honored

the

active

all.

to

House

World's

is

while

was

in

looking

pathy

a

to

'

all;

high

'

character;

end

nor
his

In

following fall at the Convention

unanimously

His

the

operations

than

,.

Executive

in

Convention,
•

assistant

and

confidence

its

more

help

religious,

to

in

super-patience;

when

manhood.

spreading "upon

Chairman

,

until

Presidency of

amounted

to

in

lovable
those

,

your

city

and

territory of

grew
.

and

the

his

for

neither

us

Report of the

to

'deposits

and

of

1910,

he

Annual

Mr.

but

its

.

Presidency.

President

lic'

and

the

head,

member

1897,

in

to

V.

and,

acts

integrity
let

by

departed

he

of

Association elected him First Vice-President in

the

so

Louis;

that

its

of

Angeles

The

at

St.

fact

a

\

'

city,

.•

■

,,

a

alleviat¬

but

of

in the capacity of

of

establishments

,

prominence
in

throughout

became

became

Los

all

of

;>

•.

and

incumbency.

He
in

by

he

largest

being called,

institution

dicated

the

unto

to

nation¬

or

always

cross,

active

and

insidious

an

beautiful

farewell,

with

man

delivered

pay

its

activity

his

bead

suc¬

Manufacturing Company.

commerce

do

words
*

own

exceedingly

'

patience

no

which

in ..the

his

carry

dealing with

against

*

A

hallowed..

and

typical

native

Let

Louis, Mo., where he organized the Huttig Sash &
which, guided by his' able and efficient
place

them

creed

no

'

-

falter,

his

meekness

in

high

:

of

years

in¬

begin¬

■

his

shareholder

a

Huttig Brothers

of

one

States.

Ten

highly

at. that place

became

its

'

.

of

knew

charming

approaching

he

A

now

same,

persistence

ever-expanding

usefulness

School

most

his

he sent

A

executive

busi¬

corporation

a

present,

United

St.

High

concern

later

years

of

gained

soon

at

firm

to

the'

large

a

three

the

1887

from

of

and„|safer to-

and

uplifting of mankind;

spheres;

of

last

characterized

"from

him

life.
,

Upon
entered

and

steadfast

with

broad

And

of

year

His

noon.

years

by

and

efforts

example

American

fiftieth

the

industry,.. uncompromising

serene

have

thoughts

uncompromising in principle;

relief;

of

poet:

monies

pursued

was

with

the 14th day

on

scarcely passed the
of sixteen

the

on

HUTTIG

Iowa,

1913,, in

untiring

ability,

crowned

is

Muscatine,

July

day had

close

furnished

best

at

the early age

at

unflagging

which

courage,
cess

died

manhood's

by

ning

and

begun

career,

born

nature

light

nearer

hours, his words were a benediction.
Testimony of his life and character is fitly described in

Committee of the American Bankers'

was

his

man;

'beacon

a

would

universe;

illustrated

and

vigor

An-

Charles Henry Huttig

and

the

Association.

of

en¬

came

unsul¬

Creator, and who desire to

you

the

whether

struggle

did

assistance

"

By

he

who

his

■'

trait

one

during

read.

HENRY

as

manly

a

steer

'

inevitably
by

all

dishonest.

bold

Nor

long

of the

IN

their

to

ran

houses

as

personality,

as

to

man

actions,

only

life;

duty;

and

into

One

each

of

stood

love

joy

co-laborers,

all

to

and

mind.

elements

all

the

patience,

spirit;

the

came.

their

unavoidably

memory

now

met

and

of

his

we,

but

and
great

counting

deserved,

fireside,

dominating

this

Banks

thrill

the

and

fame;

of

the

/

as

not

in

social

of

every

fortitude.

and

member

a

he

Na¬

closets

the

was

First

his

others

in

toward

patient

prominence

former

a

the

who

of

because

merited

at

average

unto

ready

> .V

meekness

tional

and

indomitable

Chairman

the

financial

gift

employee of

president,

heart

broad

as

humble

impure

His

the

Continent—a

every

was

of

presidency

likewise.

and

Unswerving in
thing

the

iudescribable.

ever

personification

has

in

manhood

the

" Do

looking

commercial

superb

many

Providence

of

his

to

honor

nature,

temperate

was

suffering;

others

cherish.

President

precept,

station.'

in

God

compass

degree

ing

lost

sweet

ladder

to

those

embraced all

was

ality;

Presi¬

had

his

to

greatness

He

his sterling

that the

so

realized

the

His

many

a

of
to

honor

alone

deception;

you."

source

a

such

the

him

American

mind

ultimate destiny of all

follow

calm

Association,

and even^ intimately,

Association

only

our

we

true
shock

decease

and

and

ocean

public-spirited citizens.

'can

we

presence

his

in

the

to

personally,

distinct

a

fought

long

so

'i,;-

■

inspiration

whom

came

dent,

and

the

to

integrity of character and
death

one

incurable

Iluttig's genial personality and genuine friendship

thousands

the

and

splendid

duties

his

fair-minded

Mr.

lingering

stubborn

fully

and

of

of

the

porter

not

character

,

In

of

with

purity,

His

his

highest

and

richly

climbed

elevated

very

from

himself

contact

lied

simple
to

how

deared

straight¬

brought

and

Louis,

he

you

Companies

St.

knew

interests.

and

step

through the heart

better

man

best

its

by

when

ago,

Trust

Association

in

and

Step

year

Association—the

elected

was

the

Ex¬

the

1912.

understanding,

confidence

as

Vice-President

15)10,

earnestness

Christian

his

Associations.

State

Iluttig

Association

the

where

and

Mr.

American

willing

more

and

the

the

meetings,

National

selected

Council

President

its

quick

of

at

both

having

the

and

equipped

in

State

Chairman
in

attendant

leaders

own

CONVENTION.

Henry

I

tives."

will

on

a

banking and

currency

give it the right of way in the House of Representa¬
:

As

resolution.

the

of

ing

that I should very briefly touch upon the mean-

the way

ference

House bill

the

in

changes

Representation on the Federal Reserve Board

contributions to the capital of the Federal

Optional

Second:
Reserve

Banks, instead of

death.

[Laughter.]

of " gold or lawful money."

The right of the

property to have some voice in the placing of a

of the

owner

notes to be the obligation

incidentally to the first two:

And,

:

now.
,

Government, and their current and

in gold instead

redemption

Fourth

'

currency

new

banks instead of the

of the

final

forced subscriptions under penalty of

^

the

Making

Third:

and lim-

"

of its powers.

Ration

tions under which parity will be maintained
With gold as the redeemer the burden should be put upon the
banks, for the experience of all the world has shown beyond dispute that irredeemable Government obligations are robbery and
redeemable ones are dangerous. Our own experience has also
taught us this, and this nation should take no backward step

The fundamental features of the
recommended by the Chicago Con-

follows:

as

were

First:

that it reserves to itself the right to pay either; simply declaring its good intentions, but making itself the judge of the condl-

Conference, I think it is not

Chicago

the

of

member

a

out of

147

SECTION.

BANKING

?

Coming as I do from a State which does not have a reserve
city in it, and representing a State of country banks; speaking,
as I believe I do, the sentiment of the overwhelming majority
of the stockholders of National and State banks and trust cornpanies in our State, I ask this great Association of 14,000 finjincial institutions scattered all over this land to say Amen to the

and its own Currency Comefforts which they are strivof which the Government is to abstract a part.
'
ing to make to reform and improve the currency and banking
These propositions are the bedrock upon which, in my judgsystem in this nation., [Applause.]
rnent, any financial system to be successful must be built up
I know the hour is late, gentlemen, and that you want to get
in this country.
>
to your luncheon; but there is a very vital and important quesThe others, however important they may be, are rather detion affecting far more the country banks than it does the banks
tails of management
which actual experience, will modify or
0f the reserve cities, and I wrould like to trespass upon your
change.
As the bill now stands, coming from the House of
time just a moment in order to refer to it.
I have reference to
Representatives, it provides for a legalized Government comthe disposition of the two per cent, bonds. Prior to the passage
bination and monopoly as a substitute for the individual com0f the Gold' Standard Act on March 14, 1900, circulating notes
petitive enterprise of 25,000 independent banks organized under
0f National Banks were secured by three, four and five per cent,
by existing laws of the States and nation, and in which billions
bonds.
Desiring to call in these bonds and to issue in place
of dollars of the people's money have been invested in good
thereof bonds bearing interest at two per cent., the then present
faith.
In its, practical results the tremendous power possessed
1{lte of the high rate bonds was figured on a 2*4 per cent, basis,
by the Federal Reserve Board, under the bill as drawn, will
(he difference in. the transaction being paid by the Government
give -tq the Government in the future the control, of ,the inan(j the bonds exchanged for two per cent., dollar for dollar, at
dividual credit of all of our people, and is intended so to do.
p«H.
The net profit to the Treasury on this transaction was
Of
it
Chairman
Glass said
when the bill was ^published:: over $16,000,000.
Nearly $650,000,000 of high rate bonds were

part of its reserve funds,
all being

of

instead

with approved reserve agents as now,
by law. and from the earnings

impounded

prayers of the Chicago Conference
mission in the sincere and honest

.

thus exchanged for twros.
The advantages to the banks were,
shows that
first, a practical guarantee of the circulation privilege for thirty
he admitted that the power centered in
the board could de- " years or more, two per cent, bonds being made payable at the
termine the welfare, the happiness—and I am quoting him—
pleasure of the Government after the expiration of thirty years.
the welfare and happiness and the prosperity of every man.
Second, a reduption of the tax on circulation from one per cent
woman and
child in the United States." . And Mr. Underwood
to one-half of one per cent, annually.; Thirdly, an increase of
acknowledged that-the whole matter resolved itself into faith
circulation from 90 per cent, to the par of the new bonds. The
in the President's board, the whole question being whether that
Government netted more than $16,000,000 on that transaction,
board was, angel or devil.
I cite Mr. Underwood s exact lanThe Whdle transaction was as near a contract as can be made
guage.
between the Government and the banks, as near a contract as
Five days ago the President of the United States truly said:
can be ma(je between the sovereigns and a citizen; while the
"The power to control and guide and direct the credits of th£
citizen cannot enforce it, the sovereign cannot honorably evade
country is the power to say who shall and who shall not build
it, except by subjecting itself to the charge of repudiation or
up the industries of the country, in which direction they shall
robbery.
[Applause.]
be built, and in which direction they shall hot be built,
I
When the pending currency bill was introduced, to the asquote Ills language as taken from the newspapers of last Saturtonishment of everybody, the circulation privilege w*as cut
day morning.
.
squarely off and the 2 per cent, bonds left standing on their
Now, to put such power ipto the hands of any body of men
feet at the top of the toboggan slide with the dead certainty
is not consistent with the genius of this Republic.
Supervision
that they would quickly reach 'their intrinsic value upon an
and regulation of corporations are proper functions of the State
investment basis only.
What that would be is shown by the
and Nation.
Management, ownership, control and profit sharing
fact that the British Consols, paying 2y% per cent, interest, are
are the characteristics of the Government monarchies of Euiope,
selling to-day at about 72.
The expected happened in this
but they are not in accord with our free institutions.
.
case, and the 2 per cent, bonds quickly began to drop off in
The second proposition of the Chicago Conference was that a •,
value, and in a few days were quoted at 95.
limitation placed upon the despotic power of the Federal board,
There is not in the financial history of the United States a
the men who provided the funds to make the new system pos.single incident since the Revolutionary War which has ever
sible should have had at least a minority representation in its
... placed, our Government in so a pitiable a plight, and recognizmanagement.
Day before yesterday I went out to C oncord Bridge,
ing ^inevitably the result.
Secretary McAdoo at once brought
and I saw there a monument on the base of which was written:
about an amendment of the pending bill, which was presumHere the embattled farmers stood and fired the shot heard
ably to take care of the 2 per cent, bonds and to restore them
around the world."
That shot simply typefied the declaration
to .their par value.
By reason of Secretary McAdoo's requirethat taxation without representation is tyranny and is not legal.
ment that a part of the security for the Government deposits
"

will have absolute con-

will be noted the Government

it

Thus

And the Congressional Record

system."

of the

trol

"

"

[Applause.]

should be in Government bonds, and that the necessary bank

;

the capital from
the company originally invested by its owners, but it shares in
te profits from its diverted use and controls and directs the
uses
of it to which it shall be put, and the owners have no

circulation

voice, in the ultimate decision.

probable unwillingness of the banks of the country to accept

As

the

bill

is

now

drawn,

it riot only takes

people, invested in the business of banking, can be useful, how long before
every other form of corporate investment will be subjected
to
like disposal?
And if part of it can be forcibly taken on the
plea that it is for the general good, why not take the whole?
If

such

The
ference

forced

a

third

contribution

fundamental

looked,to

the

recommendation

maintenance

beyond

of

the

any

Chicago Con-

variableness or

the

As

of

turning of the declaration

bill

was

originally

drawn,

made of March 14,

redemption

in gold was pre-

As amended
meet redemption
were provided.
As again amended and published on August 11,
both gold redemption and gold reserves were stricken out, and
it now stands with the option resting with the Government to
scribed, but reserves
and

republished

redeem
Who

in

say

to be in lawful

July 25, reserves in gold to

it?

No

honor.
so.

nation

can

If this bill

["Ajplause.]

obligations, it should plainly




,

afford to trifle
means

with its own

in-

gold redemption the bill

option of
or greenbacks to the holders of
say that.
It says in effect now

If it means to give the

demanding either gold of silver
its

money.

gold or silver or greenbacks.

did

tegrity and
should

on

were

might be continued

for the period of twenty years

banks as accepted the terms of the proposed legisla¬

tion< tlle bonds reacted to a market value of 99 per cent pend}ng a thorough examination «of this bill.
The apparent and

,of the savings of our

1900,
by which thi^ nation put itself in line with the other progressive
nations of the world, adopting gold as its standard of value.

shadow

by such

such

compulsory

'

restrictive

and

made it possible that

a

provisions

have

once

more

large proportion of the 2 per cent, bonds

wm again be thrown on the market.

Tu-day these bonds have

dropped to 95, and what the end will be, no man can tell.

The

question is vital; especially to all of the banks outside of the
central
reserve cities,
for they hold nearly $500,000,000 of
these bonds

and issue

circulation upon them,

There are two ways by which these

First, by
for the sinking fund.
culation and the bonds
proposed reserve banks
back to par.

bonds can

be brought

the payment on demand and purchase
Second, by the assumption of the cirat par by the Government, or by the
taking over from such National Banks

as desire to have them do so in their respective districts the
obligations which they have assumed. '
The shrinkage of these bonds to an investment basis means
a loss to the people of the United States of more than $200,000.000, but that is trivial compared to the position in which
the Government will be placed and the honor of the United

States sullied by its failure to maintain its previous high
standing with reference to all of its obligations,
I move you, sir, the adoption of the resolution.
[Applause.]
r ■ (At this point Acting President Reynolds; requested ex-Presi-

148

dent

BANKERS'

William

and

Mr.

Mr.

Livingstone, of Detroit, Mich., to take the Chair,

Livingstone

Thomas

Mr.
in

C.

McRae,

this

to

Mr.

J.

Mr.

Chairman,

the

of

Prescott,

The
has

be

addition

from

been

to

what

Ariz.:

heard

for

be

has

impossible forii

been

aptly

so

The

:

McRae

simply

arose to

to

sume

time is
for

a

speak

is

to

moment.

with

I

1

shall

am

to

or

not

to

indorse

Connecticut.

I

in

this

at

juncture

My friends,

it

tions.

The

believe,

people

that

public

and

You

have

this

bill

the

not
in

of

the

when

this

banks

to

the

is

so

as

resolution

past, indorsed

this

that

great
its

with

the

issue

of

fundamental

could

get

the

of

the

the

the issue

currency.

principles

Government

control

•Government ought to
best

and

the

want

a,

have

that

is

this :"

it?

control

soundest

Shall

to

power

If

the

it.

I

stand

currency .that

that is convertible

currency

provided

for

in

this

control

you

Government

here to

we

This

it,

the

advocate

the

into gold.

talk

about

in

gold ?

can

get gold,

the

Administration with

The

declared

that

this

the

tion,

Board.

present

put

may

Now,

but

business

is

entitled

other

pending
the

The

fact

that

the

want

let

in

not have it.
to

issue

or

be

us

honest

consideration

Congress

No!

is

it

is

else.

Our

anybody else, but it

principle

that

to
as

is

the

which

business

underlies

By

the

banks.
are

we

Now,

not

the

being

after

left

the

must

you

deal

the people.

with

Now,

I

exchanges that

arc

we

recognize

be

for

facts,

.

Convention

in

to

and

take up

stands

there

and

of

Mr. McRae: You complain that you were not invited
to con¬
sider the bill
before the legislative committees of
Congress.

Gentlemen, this bill has been under
consideration for
from

Committees after

every

been

section

committees

the country

of

courteously listened to.

ciation

that

Socialists

speak

these

and

wqrmly

elected

men

likely to

are

hecause

In

I

before

return

to

Congress

the

bankers

love

and

with

not

your

the

by. the
of

succeed, and I suggest that the best
thing.you
in

they

is

become repudiators.

want

you

we

of

four

that
are

can

they

the

.

people

are

country
do is to

I
to

get

country, and with the people of the country,
to control the issue of the
money of the
is

up."]

tions
can

are

and

let

put

forth

that

of

these

resolu¬

unanimously adopted by this Convention of the Ameri¬
Association, because they do riot reflect the senti¬

[The

the

great

speaker

wrong."]

majority

was

here

of

the

country

interrupted

with

bankers
the

cry

They do not represent the sentiment

try bankers, I

use

of
do

your

not

of

of

" You

the

coun¬

say,

language

and

conflict "with




simply

their

ask

Congress

No.

Yet

wealth.

be

permitted

It

has

I

to

Who

been

my

Harrison,

would

be

of

willing

these

men

not

political

same

fool

not

us

that

So,

party.

ourselves

appointments

distrusts

and

my

about

it—

yet, you

dis-

Congress

you.

than

more

has

the

proposition

detail

that

could

here

not

and

suggested

getting

it

by

reasonable

an

hour

or

of its'" provision

in

the

even

the

be

currency

with

in

might

a

bill

consider

to

that

more

of

this

two

amend¬

committee,

and

suggested.

for

the

a

point

redemption

We have

now

of

2 per cent, bond without

a

that

bond, which

a

for

promises to the people,

measures

you

will

open

way

market.

for its

gives

1

you

You paid

liquidation,
cent,

per

or

more

get now.

you

hope,

gentlemen—no,
good

our

friend

do

I

who

not

hope .either—but

presented

this

report

I

suggest

will

consent

"

to

least

at

acterizes

strike

this

unpatriotic
the

the

out

bill

of

this

language

Socialistic,

as

the part

on

bankers

of the

It

the

is

a

false

report

which

char¬

Socialistic.

not

bankers to

in

country

in

say

light

and

so;

before

It

it

this

and

Government

the

President

Mr.
cious

any

George

is

It

in

such

language

in

McRae
assault

The
are

to

M.

Well,

:

upon

Chairman

[Cries

:

question,

that

sir,

I

The

that

is

as

United

here

of Chicago,

coun¬

used

say

it is

an

and

our

his

employed.

this

language.

unprovoked

and

mali¬

man.

will

may

the

States

111.:

have

Chair

who

the

we

honest

an

gentlemen

many

three

Reynolds,

self-defence

of

is

puts

try, to stand up here and denounce the Representatives of

important

and they do not represent the great
body of
the American people, and if you will be more
considerate in the
that

should

and

You bought it in the

exchange of

Mr.

be

past

railroads?

of

from Connecticut undertakes to make

the

I

-•

it

the

-

hope

I

because

The

Bankers'

ment

are

Convention

The

provides

debt.

Gentlemen, I do not expect to defeat this
resolution, but, as
in the beginning, I am
unwilling to sit here as a member
this

this

/

.

Government provides a

I said
of

in

•*

these

You

been

it.

Cabinet,
"Time

dis¬

to

These appointments, gentlemen,

country.
of

You

Who appoints

appointment

for

than

denun¬

undertake

[Cries

President

any

States

Navigation?

bill

the

to

many

the

J

pass.

have

very

of

aggregation

■

in

or

Con¬

by

appointments

United

Congress,

Congress

up

up

it

♦

Presidents—Cleveland,

with

The

credit," arid
it

:

equal

the

the

that

say

make

•

will

submitted

was

reposed in him?

great

.

and

are

.

upon

guilty!"

should control

Commissioners?

them

to

are

the

any matured

have

Gentlemen,

this

or

the

is

,

make

in

a

to

the 2 per cent, bonds.,

.for

gentlemen

them, and
that

than

more

have drawn

for

What

"Not

1

.•

month.

it?

the

it,

,

.

a

control

the most overwhelming, vic¬

to-day

will

How?)

:

against the bill

order.

in

power

Interstate Commerce Commissioners.

President:

take

ments

your

coutnry should

we

say,

question

made, non-political.

upon

hours

must

you

to

come

who had to be put

would

•

under

•

based

any

believe

President

a

Roosevelt, in

The gentleman

be

That

Commissioner

either

amendments

bill—[cries of Good,

will

it.

of the

Congress

Now,

the

Congress

bf this

whether you

the question—and let

that

you

enormous

man

he

President

serve

the

trust

"

The

If every

judge

represent

.power.

us.

not going to

the

'

Chairman:

de¬

the American

these

am

discussing the details of

receive

that

sooner

going to get from

to

as

not

it.]

twq of them shall belong to the
is

look

when

it, but shall

control

Commerce

arid

be

friends,

do

in, the history of this Government.

any

the

(A Voice

of

but

country;

patriotic
I

the people control

provided for in this bill.

to

the

of

no.]

had

one

to

trust

are

the

business

and

even

is

of

trust

credit of this country.

election, and by

Wilson

railroads

appoints

are

We

of

States, through its representatives in

came

Oh,

Has

pleasure

right if

as

and

hearts,

and

grant

of

President" who

McKinley

than

last

Interstate

name

say

America

your

speaks

course.

they would not dare

want to
you

all

anybody

of

the

The

No!]

banking

applause].
The

you

money;

ourselves.

than

business

fundamental

discounts

the

with

in

Now

But

with

better

is the

more

The

No!

Gentlemen,
reckon

the

wanted.

subsequent Administra¬

any

right to issue money the better it will

time

you

distrust

a

this

this

bankers,

.

control

ever

Board.

■

platform

a

that

the

control.

not .any

are

no

make

with

could

to

of

left

you

of

feeling

a

of

country,

abused any such trust that was

upon

bank idea

have

trust

"

legitimate

posits,

you

great as

in

which

Government shall issue
back its security and superintend the control of it.;

money,

[Cries

central

You

as

bill

the

elected

was

-

■

we

people.

with

favoring repudiation?

politician

friends,

my

good,

that

of

I

own

ever

of

President

body of bankers and charge

a

Administration,

a.

select him.

you

is

against

get

you

as

Administration

people said that

select

as

why stand here

present

which

The

If

Hill,

United

should

[Cries

we

of

this

The question is

the

tory that

You

repudia¬

have

you

create

legislators

currency

We should

his

was

gress.

distrust

a

read

/

■

-

bcause

who

seriously insist that it is either right,

country.

people at the

I

because the bill pending in
Congress provides for the re¬
demption in gold of lawful money is nonsense.
Is not lawful

redeemable

the

say.

and I

bankers

representatives

whether

tion

money

Mr.

f Laughter.]

shall

or

possibly have.

can

demand

on

bill.

it,

issues

of

the

I

able gentleman

otherwise, that the bankers

or

ex¬

to

country and I love my Government,

in

can

fully

'

wish

I

dealing with in Congress,

could,

the

bottom

you

I

my

the

the

Yes, " we," of

issue

that

some¬

is

if

to

■■

all

Congress had

and

people

it,

[A Voice:

of

opportunity

know

the

it

would,

see

in

friend,
the

trial

here

of

issue?

currency and control it.

Now,

class

upon

My
credit

or

to

down

shall

accommodation

I

by

that

bankers

issue and control

existing condi¬

an

concluded

are

why

him

things I love

politically

and

socialistic.

as

suggested

want

reflect

re¬

the

all

other

believe, and they correctly

the

you

this

was

can

I

the

business

you' thought

that

that you

men

tell

I

between

friend

the Administration

reckon

for

of

by my

have about

and

and

gentleman

'

wondered

above

Question!]

for the attention you have given me.
wanted to put myself on record as I feel

the

report—he

this

Question!
you

something of public gatherings like this,

as

reso¬

Reynolds, of Chicago, 111.:'I hope this Con¬

I

:

Congress—and

the

except

should insert into

upon

country

exist

control

that

member of

a

unfortunate

nobly,

must

we

that I pre¬

only

accord

McRae

know,

will by such

you

matter.

thing of the

'

know

I

will

know

,

recommendations

by characterizing it

bankers

as

of the

reflections

the pending bill

upon

I

"

■;

■

than

his opinion.

Mr.

adoption of the

I

occasion.

toto

think

Question!

George M.

vention

the

Arkan¬

undertake to detain you,

all

Commission, that has done
port

:

second the

unwilling, however,

Convention, to subscribe
from

from

great diffidence, sir,

very

of

this

Mr.

from Arkansas has the floor.

upon, this

you

limited and

Commission

about

■.

press

,'

The gentleman

:

It

:

by

consideration

Gentlemen, I. thank

to say

me

stated

gentleman

recognized, and he has the floor.

Chairman

Mr.

moments

.--'A'.-'

resolution; that is all.
The

few

a

more

here proposed.

[Laughter.]

[Interposing]
I

is

as

[Cries

Connecticut, but I would like——

Sullivan:

likely to get

lution

resolution.

know it would

I

Chairman

Mr.

to

be

Chairmanship.)

temporary

Sullivan, of Cleveland, Ohio:

anything in
gentleman

sas

assumed

Chairman, I should like

opposition
J.

CONVENTION.

venture

wish

time

of

to

to

be

each

suggest,
heard

there

as

this

upon

speaker

be

limited

minutes.

of

"Question!

Question!

Question!"

and

"Let

us

vote."]
Mr.

Festus

J.

Gentlemen, I.
the

court

to be

Wade, of St. Louis,

am

reminded of the

naturalized, and he

Mo.:

Irishman
was

who

asked

the

went
usual

before
ques-

Then he was

[Laughter and Applause.] Now I
want to say liefe now, as a member of this Currency Commis¬
sion, that the gentleman who has last spoken evidently has not
read the report of the Commission, and he has not read the
criticisms of the Chicago Conference, and he has not read the
report that we presented to the Senate Committee, or if he
had he did not state the facts.
The bankers of the United
States never have asked, nor are they how asking, to control
the issue of the bills that are to be issued by the Government.
We have asked, as patriotic citizens who have studied this sub¬
ject from every angle, who have approached it with as open
minds as any man i3 capable of doing in any vocation, we have
advised against the Government putting its obligation upon
bank notes, because we know from history and from practise
that it is unsound economically to do that.
[Applause.] We
advised against the absolute control of $100,000,000 capitaliza¬
tion banks and a bank with a deposit of more than a thousand
million dollars which we are forced to put into the coffers of
that institution unless we have representation.
,We never have
asked for control.
The greatest number we have ever asked
half."

plied, "I have read

Building across

permitted

he

to

was

to

eleven

of

consisting

board

[Applause.]
delegates

[Many

.

J.

A.

Mr.

Frame, of

Mr. Chairman,

the hall rose at

[interposing] :

>

,

few words on the subject.
As this is a very important

subject and all the

the Chair would suggest whether
to thoroughly thresh the matter out. now

avoid any

possible friction

hereafter.

Mr,

Frame :

Mr.

A.

J.

You may

Frame, of

and

that it shall not be shot to

.

.

have the floor.

:

Question!

Will

O'Neil

you

the

country

Currency

Connecticut was
in

the House ,of

not get anything out of the com¬
This is the first time in the financial his¬

could

twenty years that they have gotten
constructive piece of legislation.

for

out of the committee at least a

question at all, and Mr.

Now, if I know anything about this
I

know

what

that

business

ful
and

he

feet of Jo Walker for ten years, and you
meant, for Jo Walker was not only a success¬

the

sat at

Hill,

but

man,

a

banker and

an

authority on finance,

that the most important thing in cur¬

always insisted

elasticity to it. You have
to it, for when¬
conies it, shrinks.
"
man here who does not admit, at least, that this

legislation was to give some

that

ever

Waukesha, Wisconsin :

Banking and

of

[Laughter.]

of

tory

not

„

distinguished gentleman from

Representatives,
mittee.

find

though unable to lay a single brick
trying to amend
and in all that time, during the eight

Bank Act,

the

Committee

the

on

noticed how the Sidewalk
fault with the laying of

ever

can

my

of another

For twenty years we have been

the National

that

you

street

When

me

the structure,

on

themselves?"

years

" Have
the

••

sir.

Company,

Trust

talking about Reed he reminded

across

brick

Federal

The

:

was

he repre¬

what institution
;• •

Reed's:

of

saying

kindly state

..

Ilill

every

[Interposing] : Will the gentleman take the

gentleman

,

Mr.

the

think he can be heard better up here.

I

£

the

friend

: v

I

Chairman

sents?

*

want to occupy about five minutes of
Convention to voice my mild opposition--—-

time of this

The

4

Question!]

of Boston, Mass.:

H. O'Neil,

Chairman,

platform?

death with a political

v

,

J.

j Mr.

and I ear¬

will relieve us in times of stringency,

which

ments

nestly pray

rency

■■.'r; ]

[Cries.of "Yes, Yes'/']

the

live under the Stars
Stripes.
; ■, •
'•
' VIf that is the case, so far as the National banking system is
concerned, it has been villified.
It is the best in the world, and
to-day I think that you ought to stand, with some amend¬

world, and we ought to thank God that we

Mr.

,

'can get upon it,

to

than it is in any other country in

housed, and better fed

[Cries of Question !

information that we
it would not
be well
before a vote
is
taken.
It is very apparent that a majority of the Con¬
vention is overwhelmingly in favor of this measure, but if
there are any gentlemen who desire to be heard,
I think it
would be better for us to give them an opportunity now so as \
argument on the

nation on the face of the

footstool; and, gentlemen, our labor is better paid, better

God's

bullet.

question, and as there are several members who would doubt¬
less like to .be heard upon it, and as we want the fullest pos¬
sible

and most
earth.
I beard William
Jennings Bryan
[laughter], after he had traveled around the
world, make the statement that labor and capital were more
prosperous in the United States of America than anywhere on
that this nation is the greatest

simply say

prosperous

this point and cried
*

Waukesha, Wis.:

■

or a

time to detail that.

your

up

will

I

Committee

I desire to say a

Chairman

The

take

not

t

in

gentlemen will
here until' the

continued
second Andrew
Jackson to destroy these banks.
What we want to do is to work
in harmony together.
I 'believe you should do what seems fair
and not oppress it.
From my canvass of the 450 banks of Wis¬
consin I am confident that if the country National Banks con¬
tribute
ten per cent, of the capital and one per cent, of the
deposit, approximating $100,000,000, it is all that should be
required of them.
To demand more will seriously injure if not
wreck the system, and the State banks will not join,"
I submitted a tentative plan also to the Committee, but I will

put four
members.

Vote!]

Vote!

Vote}

Convention.

this

.

of Representatives, the request
was
politely but positively refused.
Then we were not asked
by the Senate to appear before them until we had made the
request, and when we received such invitation we spent five
days with them, with their committee, going over every item
of this whole bill and giving them the best thought that we
had upon the subject after seven years of study upon it.
I want to say to you, gentlemen, that those of you who be¬
lieve that the Currency Commission having done its duty should
stand up here as men and be counted, and those of you who
believe that we have worked not as bankers, but as citizens of
this great country, should also stand up and give us your ap¬
proval.

luncheon until recess is taken

So I hope that no more
leave the hall,
and that you will all remain
close of this discussion.
f
Mr. Frame (Reading) : " Reason must reign
warfare for the repeal of the bill will bring a

by

Committee of the House

rency

for us to go in to

will not be open

practical bankers on a
The Democratic party,
which the gentleman no doubt is a member of, and of which I
also happen to be a member, in its last party platform has laid
no such statement as he stated it had.
We have not advocated
that platform, nor have we opposed it, in the discussion of that
subject.
He says that we charged the powers that be with not
being invited to appear before them in their convention as¬
sembled in the formation of this bill.
I told the gentleman that
we
were
not invited, and I tell him further that, while we
asked an invitation .to appear before
the Banking and Cur- 5

for

I desire to say that the/Horticultural
the street, in which the luncheon, is to be served, '
and

hall,

the

"

the cash

(Interposing) : I see that some gentlemen are

Chairman

The

leaving

We all desire a

principles of the bill.

reasonable mobilization of

read the Constitution

Have you

He said no.

of Independence, and he
of the United States?
asked what he had read, and he re¬

read the Declaration

had

he

if

said no.

underlying

the

in
tions

149

SECTION.

BANKING

to-day;

trouble
there

Is

a

you

have not even rigidity

bill gives elasticity to the currency?
I sat here and I looked
moments, because I just,
around and wondered
what kind of a country I was in.
A
wish to make a few comments upon one feature of this bill.
representative convention of the people of the United States
You can lead a horse to water, but you cannot make him drink.
and not a single reference to the great President at the head of
,1 wish to second the resolutions and the report of this Commis- ;
our Government.
Now, I have here a resolution
j
sion, excepting one feature of it, and that is the point that I
[Cries of,No! No! No!]
[We want to vote.]
*
have just made.
It should be modified.
I am in favor of a
I want to read this, it is very short, and I even want Mr.
measure of "release for us in the troublous periods, but as. I come
from the country and as I have made a canvass on the question
,Hill'to vote for it, because if you want currency legislation
there is no harm in this, I can assure you :
of the country banks whether they would join this Association,
or not, I made a canvass of 450 banks in the State of Wisconsin,
Resolved, That we applaud the action of the President, the Secre¬
and asked them whether they would join the Association under
tary of the Treasury, and Congress, in their efforts to give this coun¬
the bill as passed by the House, and 320 of them answered; two
try an elastic as well as a safe currency, and pledge them our hearty
of them alone said that they^would, join, nine said yes, but that
support towards the enactment of proper legislation to that end.
they expected the bill would be materially modified, and "309
said no, that they would not join.
[Here the speaker was again interrupted with cries ofi "Let
If that is not an answer
us vote.]
to the question of the gentleman yrho preceded me as to whether
the country bankers are in favor of this proposition or not, I
Gentlemen, I have got my protest in, and if you want me to
don't know where you can get a practical illustration of it.
shut up, I will shut up.
Now, the only point that I wish to make is this: In the prop¬
The Chairman: Give the speaker a chance to conclude.
I

will

osition
four

agree

the

of

per

cent,

to

talk but a very few

Conference

the Federal Reserve Bank.

Now;

I

appeared

Chicago,

it

requires for reserves

bank of the country for
bill itself requires five per cent.

before

The

the

Committee at Washington,

and I

elucidation of the subject a
of the expressions that I made there,
I said:
"I am with you, except only I think that your demands
are excessive.
It takes $500,000,000 to $600,000,000 out of
the National Banks alone, and that is excessive.
I believe

would just
few

at

of the deposits of the

like to read you for your




Mr.

have

O'Neil:

the

best

objection
back

of

The

gentleman

currency

made to it by some people

it.

teen years in

I

am

a.

the

Why?

behind

that

we

is that the Government is
have been four¬

the banking business, and

country districts,

said

Because the very

banker as well as you";' I

tribulations; but, gentlemen, you

-Government

Wisconsin

from

in the world.

I know its trials and its

know, especially you men from

that the people of this country want the
it;

they

want

the

currency

to stand

as

150

good

BANKERS'
it is,

as

and

in

where it will

be accepted

in

London and

in

CONVENTION.

Berlin

ful

Paris.

Mr.

Mr.

Wexler, of New Orleans, La.:

O'Neil

Oh,

:

it

yes,

is,

A Greenback

the gentleman

behind

isn't.
to

me

Mr.

George M.

the

stronger

system

Mr.

ed,

this measure

is

the

to get

you

amend

it amended

ft

in

you

into

go

is

to

abuse

Congress and

want

this

But

the

who

I

bill

do

people who
just

are

amend¬

not

patriotic

as

that

say

the

that, gentlemen,

the

question

average

of

no.]

I

challenge contradiction

member

of

finance than any

[Here the speaker

Oh,

was

Congress has
in

man

this

read

as

to

sounds

know, and he

funny to

asks

the

has

read

[Here the speaker
up.]

was

I

it .in

a

interrupted with cries

of

gentlemen,

I

done.

am

I

the

move

adoption

Time

of

my

Mr.

McRae;
J.

E.

the

I

second

it.

not

discussing the

of

before the house.

order

merely

offering

wisdom.

the

I

a

free and

open

[At this

point Mr.

deal

better

F.

This

that

there

is

already

resolution

one

fact

tl\e resolution

Unanimously offered

-

Chairman

taken.

resolution

Hill.

The

:

proposed

All

Chair

in

by

favor

of

the

the

O'Neil:

of

Mr.

The

tion

I

offered

Hill,

the

on

gentleman

point

from

of

order

adoption

of

we

the

Connecticut,

resolution

is

Mr.

will

resolution

my

as

amendment

an

All

:

opposed

to

the

to

Mr.

resolu¬

I

".viV,

to speak oh

hear

me

ference.

a

behalf of

moment.

I

was

'

,

the country

bankers.

member

a

of

I

that

want

vote

Chairman, I
1

want

tunity to do

H. A.
Moehlknrah, of Clinton, Wis. (interrupting) :
Chairman, I want to say a word before the vote is taken.

want

to

a

it

the

stand
is

this

to

the

no;

want

we

to

delegates.)

you

man,

been

Chicago Con¬

pend

such

Mr.

Fkstus J. Wade, of St.
Louis, Mo. : I move that the gen¬
be accorded the floor for
five minutes.
[The motion was seconded.]

and

the

Mr.
and

I

will

gentleman

have

have

the

you

the

further

country

want

of

of

spoke

the

tell

I

to

arose

of
a

his

the

the

take

we

a

and

the

:

the

of

gentlemen,

take

a

theory..

who

just

few

it

is

I

did

we

at

the

hands

he

showed

of

the

House

in

representatives

take

a

Congress,

of

of

the, people.

this

Can

country
not

you

and

We

must

to

this

prejudice, it will hurt
sentatives

of

with the
better
and

to

I

it will

you,

people.

I

are

this

in

.

for

conciliatory

the

in

you

to

tell

week

resolution

our

to

try bankers:

come

top

of

let

"We
will

we

try

us

will

get

democracy is the
with

Mr.

I

for

Let

Chairman

Bankers'
this

town

:

you

the

body

that

are

to

never

of

us

his
I

that

but

by

vV 'v
for

we

one

sus¬

hour,

or

,

the, taking

meanwhile

the

motion

same

by

The motion

no.

of

be

the

taken.

made

saying

by

the

gen¬

those

aye;

seemsvto be carried;
until baif

stands

adjourned

CCC '!>;•;•■

The

■.

SESSION.

Convention will be

of Cincinnati,

get

of

vote.

the

Let

these

the

the

land,

the

the

I

but

in

Ohio.

I
I

am

am

a

New

York
a

That

the

this organization

;

not

you

to

there

go

leaders
a

is

people

to

take

I

for

of
a

we

of

the

fact

vote

seconded

taken

All

this

States

the

by

order.

.

in

for

by

we

taking

I

to

manifest

of

Mr.

of

we

be

the

that

we

made
the

All
you

the

bankers

spirit

are

out

of

the

rise

get

motion

like

would

it

Reynolds

much

so

and

:

New

to

of

of

that

is carried,

York

My

United

conservative,

by.

action

by

saying aye;

ac¬

opposed.

«

'

;

;

-

is

the

this resolution

reconsidered.

What

now?

•

SESSION

EXPUNGED.

,■

La.

to

offer

motion

a

to

the

effect that

before luncheon arid

.

.

from
the

Louisiana, that

vote

the

motion

and it is

as

was

debate
will

so

on

say

heard the
we

taken

the

motion

expunge

at

the

from

morning

original question.

aye;

opposed,

The

no.

ordered.

of

DISCUSSION

OF

BANKING

AND

CURRENCY

BILL.

benefit

suggest

•

Gentlemen,.you have

proceed with

favor

in

motion

the

the

the question.

on

by the gentleman

record

FURTHER

for the

••

seconded.]

was

vote

proceedings back into parliamentary form,

our

I

Chairman

luncheon.

the

to

Chairman

coun¬

;

that action

MORNING

the

reconsidered.

upon

expunge from the record the vote taken

[The
'

with

the

AT

proceed-with the debate

this.

■

and

not

reconsidering

vote

Wexlek, of New Orleans,

In Order

a

stand

Sol

Mr. Chairman,

stand

to you

v

have

that

move

States

favor

morning

will

that

various delegates.]

pleasure of the Convention
VOTE

go

in

decided

say

us

tell

of

but

recess

necessary

that

was

.

and

of

Mr.

State

probably unknown to many people
simple country banker in a, small

take

here

Reynolds:

was

call

of

The motion is.carried,

Can

of

morning

motion

view

important resolution,

s

some

amendments

gentleman state,
President

this

upon

the

repre¬

them."]

them.

machinery

this

that

In

:

*

meeting—want

to

another arid

get

we

these:




various

fit.

recess

'C;";!' '

■n°.

name?

am

for

State

A.

Chairman

this

try to get in touch with it.

Will

:

Association.

audience,

in

looking

Hinsch,

Chairman

tion

requests

with

committee

beg of

Treman, of Ithaca, N. Y.: Mr.

Treman

august

C.

[The

country bankers—

Congress, and I

to

many

salt

stenographer,

Mr.

in

it.

R.- H.

The

the

Mr.
Mr.

session,

[Cries

touch

Reynolds:

taken

great

want—

Yes,

a

the Convention

will not receive any

You

bottom

to

with

again

Be careful how

Administration;

and

Chairman

within

here, after

the

you

hostility,

representatives in

our

there

you

with

bill,';and

of

From

and

go

adopted by that

that

spirit

a

spirit.

Convention have

i'H'-?

■

.

if

received before.

you

amendments

Washington

that

oppor¬

'

signify

' v- "CC

States

it?

see

must

be discourteous to

want

last

views

our

and

Secretary of the Treasury, that

stand

against

present

bill,

Washington

hearing than

secure,

to

the

in

an

o'clock.

important

go

experience

that

favor of the

say

Recess.

mem¬

clearly

you

amendments

house

seconded by

recess

may see

AFTERNOON

days face the proposition of
securing needed amendments
to this bill.
I say to your
country bankers: We must soon
for

two

in

will

will

to

few

Washington.

luncheon, be¬

,

lower

political expediency has been reached, and here in
body of men you are hurled off your feet when

to

Con¬

are

A

a

the

.

When the gentleman from

reception

'

seconded.]

in

moments'

gentleman—that

V;V

■

was

Shall

parliamentary

•

and

All

:

Ohio

opposed

carried,

past

especially

from

are

Conference

as

a

a

has

matter of

this subject to have

upon

Convention

was

Chairman

tleman

and

to-day,

a

parliamentary proceeding is that

resolution

[The motion
The

community,

the

as

house

Say until half past two o'clock.

from

carried

Chicago Conference.

recognize

last

is

the

.J.

this

on

of

taking of

The

in-.this

Sullivan, of Cleveland, Ohio:
Chairman, I move that we suspend

Mr.
vote

the

as

had

patient, not¬

a

for

recess

child

1

time

J.

floor.-

agricultural

distinctly the position that the bankers
with

motion

member

a

you,

that I

motion

about

has
ah

being

to

condition and not

a

Louis

bers

the

the gentleman

The

belonging to the

honor

I

No.

represent

of

bankers here,

second

facing

favor of hearing

Wisconsin

I

:

Conference—and

try, to

St.

from

honor

Committee, and

in

Aye; opposed,

Mobiilenpah

I

that

All

:

say

have

/•

adjourn for luncheon

1

Chairman

of

continue in

we

woman

opinion

,

the

as

country in

we

and

several" speakers

the taking of the vote and

vote.]

tleman

The

the

offered.

'
to

off

resolution,

President

resolution?

so.

The Chairman

Mr^

Wisconsin

choked

made

that

midst

,

for

No,

before

so

the

report.

have

former

a

in

has

that

move

every

[The motion

:

of

I

known

.

[Cries

be

particular

that

on

to

[Applause.]

is

floor

on

desires to express an

Mr.
Mr.

this

[Cries of "

cause

(interposing)

one

open

Recess, Recess," mingled with calls that
vention, continue until the
question is disposed of.]
Mr. George M.
Reynolds, of Chicago, 111.:

say

the

any

Now, what is the pleasure of the
Convention?

take

to

to

.

continue such
policy, or shall

way

v

Chairman

—

is

harmony.

the

Vy

-

Mr.

that

adoption of that

Aye
that

rules

Gentlemen, the question

.

not

it

.

The
well

and

sustain

of

Watts,

that

the

as

a
an

have

we

up

debate

any

free

body has been liberal

that

for

will stand in

we

to

here.

O.

and

be

Ohair.]

the

time

should

will
if

after

we

vote

attitude

'

upon

merits,

should

and

we

here

afternoon

subject,

dsires

them

adjourn

we

this
much

who

give

we

much

so

be

country.

merits

discussion

withstanding the

back

suggestion

think

great

vote

this

tljie

Convention,
large majority will

a

the

its

if

us,

ii\

will

opportunity,

side of the

on

people

position

entire

at least

or

important piece

the

that if

the

before

as

an

come

give

stand

The Chairman:

Fishburn, of Los Angeles, Cal.: Mr.
Chairman, I

point

to

our

before

believe

then

position

Association, took

'

Mr.

I

other

a

1

resolution.

and

question

of

am

part of

advice

again

and

necessary,

ought

that

motion

most

before

come

the

everybody

the

heard ;

better

if

even

cries of

but

but he

you ;

has
to

to

present the

members

convention

interrupted with laughter and

give

oppose

if

important

on

,

make

to

much

a

when

more

ever

seems

luncheon

and,

needs

,

Well,

be

,

Oh, I know that
order

,to

to

Truth

than

we

so,

question, which is the

that

discussion of this
subject,

try¬

are

if

for

eaten

think

are.

More

is

do

chance
hour

O'Neil: Yes, sir;
my bank will.
I
Don't think that I do not.

way

Will

:

adopted?

however.

ing to

I

if

to

Reynolds; of Chicago, 111.

this

on

legislation

generation, and it

contrary notwithstanding.
the

position

of

Sol

to

Hamilton, of Hoopeston,

Chairman

the

resolution

Reynolds

:

I

read

will

ask

111.

again,
the

Mr.

Chairman?

General

Secretary

to

kindly read it.
General

Secretary

"Resolved,
and

are

Farnsworth

placed

on

force¬

That

the report of the

file..

"

Resolved,

but

L.

have

we

[Reading]:

this

reasons

States

John

and

that

we

That

we

ratify

approve

and

the

endorse

Currency Commission

be

received

(

Work
the

of

the

action

of

Currency Commission,
the

Chicago

confer-

BANKING

•

"

That

Resolved,

incorporating

upon

urge

we

the proposed

into

have been elaborately pre¬
Currency of the State Sen¬
in which body the proposed law is now pending. *
.
Any law passed by Congress in order to be effective and to real¬

is any

ate,
"

like

what

just

How about the amendment that was offered to

O'Neil :

Mr.

the

is upon

question

the

However,
them

Mr.

O'Neil, of Boston, offered an amend¬

for the consideration

of the members to which there seems

this morning,

vention
ment

be

to

taken

action

the

and

tions

think,

I

the resolution, with some changes to

Now,

That

ommend

which the gentle¬

of

enactment

the

toward

I

Gentlemen,
see

The

action

of

legislation

proper

' O'Neil's

are

judgment, if we adopt it, of the

this

resolution.-

by

the amendment,
whole.
[Applause.]

Unless there is an objection, the ques¬

Reynolds :

be

will

put in that

Mr.

Chairman,

Commission.

reply to the

who made a statement on the floor
Convention that has not yet been challenged.
In re¬

held
words, in effect, that
the Government had provided a proper method for their liqui¬
dation, and he said—raising his finger: Do they not give you
3 per cent, bonds in exchange for 2 per cent, bonds?
There
he stopped.
He is not first in national banking, for the reason
to be made of Government bonds

banks, he, stated, if not in

National

he

of

the

If the gentleman understood

bank.

State

a

owns

bonds.

of those

exchange

that

banks

the

from

direct

cases

the

the effect
The Government did receive

banking situation he would have gone into

for those bonds when it sold them,

par

paid

serious question arises
Three

tion

to" the good faith of the transac¬

as

cent English consols to-day are selling,

per

75, cents on the dollar, as I understand
Mr.

Pierre

Two

Mr.

Jay, of New York

and one-half

ment
per

to

says

Are

us,

the

or

bonds

the

cent, bonds; but they

bill says to

worth

" We will give

us,

par?

believe

the

Banks join

National

banks

If so,

why can they

for our Government 2 per cent, bonds?

not

the

or

have

you

if

then
we

they do

obliged
get

may

this
not

because
been

country
that

not,

to

accepting

gentleman

and

them,

the

took

then

in

not

be

we

re¬

on

the question

challenged,

2

pur

them

and

per

2

a

If the

step.




or

had

cent,

per

to

liquidate.

bonds

cent

basis.

We are

off for whatever

I merely

state

of the gentleman from Arkansas had
for

even

the

reason

that

there are

many

that they had not gone into
heard of it until our meeting last

banker? here who tell

situation

Banks

It

the

have

I

and

farm

the

me

which are carried by nearly every bank in
period of years.
The great majority
nothing but mortgage loans running from

country, running for a
loans

those

of

for thirty-four

found from experience that a- first-class
loan is a liquid asset.
It is classed in the same

bonds,

as

the. banking business

in

been

1

I live in an agricultural

have

we

mortgage

category

voted down.

amendment will be

Banfield, of Minnesota :

F.

N.

should go into an extension
Congress later.

which is to be taken up by

that

trust

Mr.

long time loans,

loans,
credit,

rural
I

that it was wiser that the

thought

mortgage
of

loans by mortgage security.
matter of so-called

of securing temporary

purpose
was

are

twenty-five

to

ten

fifty

and

by mort¬

and are secured

years,

bonds.
Yet they are no different
in point of security from our mortgage loans.
..
Going back to the panic of 18,03, our experience proved that
our farm mortgage loans that we had were the only assets upon
which we could get money.
As a1 matter of fact, I would rather
they

but

gages,

called

are

stock of farm mortgage loans on hand

face a panic with a good
than

other asset.

any

As

real

As I understand the proposition

bill

mortgages

the same as the. State banks do.

opposed to this amendment.
Myron

think I
that

ness

to

us

a

Ind.:

"

little light on this mortgage loan busi¬

be beneficial without having any change made in

may

banking law.

•

recognize that the Comptroller of the Currency permits

We all

bonds just

use

in

comes

throw

Therefore, I

.

of South Bend,

Campbell,

can

national

the

said
have

in
Banking
will give National Banks the privilege of handling

Bill,' wrhich
farm

mortgages

but

mortgages,

estate

it is to take up the matter of the National

Congress,

I

to

reference

part in a currency

no

,

Champaign, 111.:

banker I endorse everything that has been

country

a

with

.

.

F. Harris, of

Mr. B.

to

me

that

consider

and

the same as real estate bonds.
says

that

he is worthy

he

wants

a

mortgage

If a

man

loan,

and

of being given the accommodation,

why, I can say if he can give me the right kind of security, and

next

forced into the Reserve Association

are

it becomes necessary

work

for

the

twelve months it was only to cover an en¬
The thought was not to extend the right of
to make so-called mortgage loans, but was for

year.

crop

In recommend¬

months.

considered specified nine

there

National

3

they accept of the proposition as submitted by the gentleman:
but

tire

1

ceive

par

word of ex¬

the change to

Mr.

without

do

one

as

:

Yes, 2% per

:

*

marketed

I

make

to

Are you

ing

am

bonds with which you may retire your circulation

cent,

cash.

like

would

I

Perrin :

John

.

-

t

ure

cent, bonds, you mean.

per

Jones

Gordon

around

maturity, and in order to retire our circulation the Govern¬

no

seconded, and

will first be put upon that amendment.

the

them not only par, but

And now, in asking

premium.

the

heard the amend-,

which has been

Hamilton,

Mr.

about' that matter, > At the Chicago Conference, in
consideration of .the form for real estate loans, the meas¬

and'.received it in many

us' National banks to accept
3-per cent bonds, with no circulation privilege, in exchange for
2 per cent bonds that -carry with
them circulation privilege;

a

.

for the question?

years,

want to say just one word in

I

ferring to the disposition

that

it has

that the country

me

'

by

•

from Arkansas

gentleman

National

to

.

question

Mr.

Are

Denver, Colo.

Jones, of

Gordon

by

I second it.

W. Va.: Mr. Chairman,

Reynolds : Gentlemen,- you have

offered

section.

ready for the question?

Mr.

the

made

bankers vote on this
separately, and I would make that suggestion to the

suggested

Chairman

Gentlemen, the question is now

way.

presented by the Currency

resolution

the

of

already offered.

As it is now changed I heartily accept

Chairman

you

just

has

amendment to the resolution offered

an

as

and ask that the resolution may be put as a

tion

the

The resolution was of¬

Hill; of Norwalk, Conn.:

originally

myself.

on

for

ready

you

be added to the resolution

ought to
J.

E.

fered

are

the resolution offered by Mr. O'Neil?
been suggested
that the resolution which

read

Mil

Austin, Minn.:

Banfield, of

F.

S. Hill, of Charleston.

resolution

«

term of

to the motion

Is there, a second

Reynolds :

on

has

been

Gentlemen,

Reynolds :

Chairman

It

.T.

the

making the

planation

[Applause.]

question

X.

Mil

ready

second

will

I

consent

Mr.

ment

measure

No!]

No!

of No!

Convention.

asked to

of that end.

towards the accomplishment
Mr.

you

and I

adoption.

its

to

this

to

least five years.

Hamilton?

by Mr.

been

best-legislation that we can suggest

legislation or the

With

which

Chicago conference

the

ratify is an expression of our
proper

that end.

to

objection

possible

slightest

amendment

an

[Cries

,

heartily in favor of that resolution,

am

the

not

can

President,

the

a

loans at

those

Chairman

commend

we

real estate loans made by the National Bank
period of only twelve months.
Now, I would

amendment that th.e Committee be instructed to rec¬

an

as

move

for

be

should

the Secretary of the
Treasury, and Congress for their efforts to give this country an elas¬
tic as well as a safe currency, and pledge them our hearty support
Resolved,

meeting in

the recommendations made at that

Chicago were that

assent, reads as follows;

men

here are not aware

country bankers

of the

many

fact that

the

of

members of the Currency Commission

by

of this resolution carries with it the endorse¬
action of the conference held in Chicago.
Now, I

that

believe

generally, wherever they have had a chance to meet.

bankers

111.: As I understand

Hamilton, of Hoopeston,

L.

of the

ment

have just listened,
you are asked to approve. ' There we refer to the pending bank¬
ing law in Congress as evidence of the earnest wish of the ad¬
ministration to give to the country a wise banking law, and the
efforts of the President along that line have been universally
and

again read by General Secretary Farns-

the adoption

It,

by the terms of the resolutions to which you

commended,

will be glad to have them read.

we

:

•

John

Mil

from

would like to hear

gentlemen who

any

are

again,

[The resolutions were

which,

Conference,

the Chicago

by

there

if

read

worth.]

In fact, it is along the lines of the sugges¬

objection.

no

I want to know

read since we con¬
afternoon—probably before he came into the hall.

this

vened

Mr. Hepburn, the Chairman of
Currency Commission, is accorded the floor.
Mr. A. B. Hepburn, of New York : One gentleman in the Con¬

adoption of that resolution, and
the

offered.

to vote upon.
Reynolds: I beg to state to the gentleman
are

that the resolutions have been

City

Kansas

Gentleman,

Reynolds :

we

Chairman

that?
Chairman

amendments that have been

the

with

should

voting on, together

what we are

and know

them

hear

to

and for one I

this morning,

read

resolutions

the

Mo.: We did not

Johnstone, Kansas City,

M.

T.

John

Mr.
hear

the hopes

measure

called for, but if there

will give them an oppor¬

else who desires to speak I

one

tunity to do so.

of those who are seeking currency re¬
form must command the approval and enlist the co-operation' of the
batiks of country, both State and National."
; • .
,
'
full

in

ize

.

Reynolds : The question is

Chairman

the

Question!]

Question!

[Question!

Congress the wisdom and necessity
law the amendments recommended

Chicago conference, "all of which
sented to the Committee orl Banking and
by

have done so.

think 1

I

and

made.

of

and I believe the point should be made clear

Monday afternoon,

recommendations they

the

and

reached,

they

conclusions

tlie

ence;

151

SECTION.

he

wants

coupons

ably

and

kind

in

ine

uSj

a

$5,000 loan,

ratably.

my

will take five $1,000 bonds with the

I

probably

have $100,000 of bonds of that

safe, and when the bank examiner comes in to exam¬

why, they are charged in my bond account.

I Would

rather

have'the

stands, which permits
says

I

attached, and take a mortgage to secure the loan equit¬

we

may

us

national

banking

act

as

it

now

to use bonds—in. fact, the clause which

negotiate and

discount promissory

notes,

bills of

exchange and other evidences of debt, which gives us unqualified

permission

to

buy

any

and every

class of securities, no matter

152

liow

BANKERS'

they

take

to

ity,"
of

secured,

are

[laughter], if

they

negotiate with the maker then it

although

long

so

there

as

security I have decided

and cad

Now

whether

or

it

then, while 1 am

at

all

Mr.

under-

we

" personal secur-

says

in

the

bankers

classes

make

directly-from the promissor,

Banks

con-

the

line of mortgage paper is where it says, " May loan on

relations.

security," I>would
Section

have all

5137

that

"May loan

say,

approved security."

on

" previous,"

the. word

erase

and

Then

think

I

have

John

L.

Hamilton:

already appointed

ference

in

will

I

offered, with the consent of
them

for

Mn.

adjustment.

Reynolds

uolds'

bankers

country

Mr.

withdraw

the

resolution

that

the

to

agree

who

seconds

the

Mr.

Rey-

N.

F.

Banfield

Yes, sir.

:

Chairman Reynolds

Now

:

:

we

are

Hill

upon

the

of

report

Currency

resolution

Commission,,

with

this

A.

J.

morning,

want

to

their
The

so

saying

be

not

the

out

carry

make

to

by

the

Mr.

it

resolution

that

I

made

operative and not imperative,

this:

That

banks

outside

of

I

reserve

deposits with the Federal Reserve Bank.

Chairman:

Is

there any second to

Mr.

would

like

;

'

for

bill,' which refers to
know

from

Federal

the construction

market

open

Chairman

the

of

of

Section

operations.

the

I

Committee

if

15

Reserve Bank the right to go into the
open

to

like

gives

Chairman

Reynolds:

I

will

ask

inquiry.
Mr. A. B. Hepburn, of New York:
I

did not understand

he does not

Mil

;

governs

permits the
commercial

Mr.

bank

reserve

in competition

paper

and

in

regard- to

it

the

into

go

for. instance,

I

permit

think

them

commercial

the

of

althoiigh

act,

Mr.

with

and

money

contrary.

market

and

buy

banks

there
strict

a

to

other

are

the

of

market

I

:

had

•

my

is

him

that it

language would

that

the

Reserve

Bank

'

\>

competition with member banks.

of

us

are

here

understand

of the

gest
bill

that
which

will

F.

be

the

rediscount

and

not

competition

commercial

about

restrict

to

banks,

market in

Mr.

amendment

and

member

do not believe that

privilege;

I

to

with

made

to

do not believe

operation

that

I

the

allow

Reserve

paper,

them

member

section

to

banks

to

into

the

the

to

admit

of

it

will

throw

little

a

the sub-

upon

ject.
I

foreign
rules

and

and

Bank

York

that

domestic

the

bills

sake of

right.

that

will

Now,

six

vision

is

out
to

protect the
pose.

it

argument
us

of

or

fit

of

the

nine

enable the

gold

a

right to

to.

director in

our

is

do




so

under

Reserve

assume

the

purchase

that

Federal

Reserve

Bank

they

of

members.

of

the

The

Reserve

nation.
you

or

purpose

Banks
That

of

of the
is

its

that

•

nation
real

to

pur-

I should vote into office

That is my

"

pro-

com-

understanding

from

upon

separately,

in

that

way,

gentlemen

to

vote

upon

to

is

and

have

that

placed

There

the'resolutions

the

report of the

file.

on

is

from

.

has

resolutions

been

be

considered

but

so,

still

Arkansas

.

motion

no

made

seriatum.

the

Chairman

is, within

his

be divided.

rights

■

.

have allowed the first resolution to

and

before

body

that

that

not

as

resolution

it

I

be

can

is

if

presented

going to vote

upon

whole,

a

which

revision,

Maine:

involves

submit,
•

I

move

the

than

one

-

and

more

I

have asked

for

'

.

members

desire

to

have

-

and

Arkansas

vote

us

here.

down

now

a

I

agree.

minority

separately

up

not agree

and

think

the

was

\

want

we

\
separately.

a
-

I

:

that

move

we

•

It is moved and seconded that

:

separately.

opposed,

I

them,

upon

seconded,]

resolutions

aye;

majority, let

or

vote

the general principles,

on

resolutions

O'Neil :

That

the

placed

All

The

no.

in

favor

motion

is

of

carried

that

move

vote

we

the

upon

vote

we

the

motion

and

there*

last

resolution

file."

on

General

ence

they

we

we

will take them up in their regu-

Farnsworth

the

Currency

(reading):

Commission

be

"Resolved,
received

All in
opposed,

aye;

say

favor of the adoption
The

no.

ayes

seem

of
to

v.

that
have

have it and the resolution is adopted.

Secretary

approve

ratify

the

and

Farnsworth
of

work

endorse

the

the

(reading)

Currency

action

of

the

"Resolved,

:

Commission,
Chicago

and

Confer-;

and the conclusions they reached and the recommendations
made.

^

Chairman

•

All

Reynolds :

in

favor

resolution will say aye ; opposed,
[There

two

were

votes

the

in

of

no.

the

adoption

of

General
we

Secretary

urge

upon

negative.]

Farnsworth

Congress

that

>

The ayes have it and the resolution is adopted.

That

and
"

-

■.

Reynolds:

The ayes

we

No,

Secretary

report, of

resolution will

That

:

The Secretary will read the first resolution,

Chairman

New

absolutely controlled by a
locality, because they

desired

That

resolutions

these

General

.

Reserve

respective localities who Would go into

•

the

the

resolution

you

Missouri

may

lar order.

Board.

that particular

petition with our individual banks.

provision.

will
is

The Federal

Federal

reserve

I

who

see

Arizona

It is never intended that

of that

has

sees

let

majority of the banks in
elect

if

Bank

the

buy those.

of Missouri

or

Reserve

a

regulations prescribed by the Federal

Simply for
have

that

assume

Any

divided.

these

say

that
will

is

it

this

Chairman Reynolds

:

explanation

my

light

gentleman

upon

C.

:

tThe motion

it.

May I be permitted to give

think

ask

.

we

Mb.

open

purchase

which

first.

sug-

this

original

fore the Secretary will read the first resolution.

we

Bank

only

go

in

in

of

subject to

Wade:

take

will

the

/

Wade:

that?

of

commercial

paper.

J.

certain

a

sense

Chairman Reynolds

many

opinion that that is intended in the bill, and I
an

discount

that

I

the

Upon these

privilege of going into the market and buying commercial paper
in

The

be acted

can

will

these

Creer: But, sir,

take" up

from

had

asks

the

resolution

acted

Mr. F. C. DanfoRth, of Brunswick, S. Dak.

„

an

meant

Arkansas

convention.

gentleman

not, do not let

or

us

opportunity of asking the question
Glass, the Chairman of the Committee on Banking and
Currency of the House, as to what that meant, and I was in-

by

:

Reynolds:

Charles

'Mb.

the

'

upon

to

the

mean

be

first

that

the

majority stand

paper

the

divided

gentleman from Arkansas is absolutely right; and, whether he

of Mr.

formed

that

hold

buy

I

resolutions

the

The

:

yet

While

'

of

part

a

endorses

be

attached

was

Chairman Reynolds: Provided the

of

to

of

which

question

Farnsworth

division.

a

go

paper,

business

made

gentleman, from

point of order.

construction

who

the

and

note brokers, for example.

Mitchell

is

resolutions

Creer, of Cleveland, Ohio:

a

Mr. McRae

not to allow

was

commercial

people

construction

ipto

go

That

R.

the question

the' general

in

discounting.

W.

question is

'

I understand it,

as

open

the

been

Burrill, of Ellsworth,
adoption of the resolutions as a whole.
v

has been approved.

as

1

these

whether

Hepburn

be

Mr.

a

.

reso-

conference.

these resolutions singly and

banks?

in competition with member banks, and not to enter

competition

the

is

market and buy such paper

The purpose of the act,

loaning

member

that has been frequently

one

there

by the Federal Reserve Board.

to

with

is

must

market and buy

open

the

separately.

be put before the house,

15,

section

positive opinion that they would be permitted tb

the open

them

the

the

which

in asking that the question

difference of opinion.
hold that they could not and other men

Some competent judges
express the

into

into

go

Hepburn: That question

raised,

into

to

that

that

The

:

Reynolds :, I

Chairman

•

Section

to

ask

upon

Chicago

desire

carried

Mr.

whether

.

upon

on

resolution

No, that is not it.

question,

thinks

referring

was,

operations,

Banks,

exchange

divisible.

Secretary

rise to'

I

.

question

I

is

be voted

the

are

that

vote

already

the

mean

short, and they

to

Mitchell, Mr. Hepburn states that

market

I

resolution,

McRae:

Mr.

the gentleman's question.

My

open

has

very

and
.

domestic

part of the scheme,

Currency Commission be received

.

hear y6ur question.

Mitchell:

which

not

reply

It

:

They

Mr.

to

Reserve

Member

ready to vote

separate
a

that

the

market and

Hepburn

maintaining

upon each of them separately.
Mr. McRae : I submit,
sir, that it is a matter of right that
they be voted upon in that way upon the
request of any deleT
gate to the convention.
»

>

Chairman Reynolds: Mi*.

of

Mr.

a

asks

purchase paper in competition with the member banks?
that

the

I

pro¬

divided, and the question put

•

of this

would
that

for

Reynolds

Chairman

Frame's motion?

none.

to ask

in

the

but

this

of giving the

Question!] '

you

Arkansas

Y

\

ask

No.

last

if it is the

Mr. John II. Mitchell, of St.
Paul, Minn.:
I

bill,
of

of

purpose

with

reserve

Are

':

Reynolds

General

compelled to deposit to exceed two per cent.

The Chair hears

the

endorsed

To

:

as

amend

cities shall
of

Frame

I

conference.

'resolution,

amendment made to it.
Mr.

competing

unqualifiedly

The question

that

introduced by Mr.

was

the

resolutions.

Chairman

.

by Colonel Farnsworth twice, which

the

purpose

Question!

Reynolds

McRae:

that.

originai

the

upon

read

the

other

Chicago

that?
,

Mr.

read

the' intention

;.K-,;

McRae:

Mr.

gentleman

the

gold

Question!

Chairman

second, and leave the matter to

my

of

which endorses

I

[Applause.]

Does

:

amendment

the

as

committee and they are to have a con-

a

Washington,

Inasmuch

of

the

for

not

for

have

not

lutions?

.

_

Mr.

is

is

<

[Cries

want.

we

protect

who

that

but is

opportunity

cannot

have

that

intention

Chairman

you

country

reserve,

You

personal

this

assertion

The

gold

sider the only amendment in the National Banking Act
along the

in

a

of

the

vision.
the

I wish to say that I

Mitchell:

Mr. Wade's understanding of the situation,
think, is the understanding that
probably 90 per cent, of the

I

mortgage.

the floor,

on

But if

difference

no

take

to

real estate bond

a

is

secured

are

buy them second-handed.

we can

CONVENTION.

(reading)

the wisdom and

-

:

" Resolved,

necessity

of

in-

corporating into the proposed law the amendment recommended
by

the

Chicago

presented
United

to

the

States

Conference,

Committee

Senate,

in

all
on

which

of

which

Banking

has

and

been

elaborately

Currency

of

the

body the proposed law

is,

now

pending."
Chairman
resolution

Reynolds

will

:

All

in

signify by saying

favor
aye ;

of

the

adoption

those opposed,

of

no.

that

BANKING

resolution is adopted.

The

will

The

"

impression

The

Mr.
I

large

form
a

mean

vote,

Mr.
I

of the bill with the suggestions
country bankers on Monday last.

Mr.

J.

When

-

■included.

made at the nieeting of

L33>' /'
of Atchison, Kan.:

Bailey,

J.

Gentlemen,

the

■'••

'

good job the other

did it of their own volition, and they will go be¬
fore Congress in very good shape.
'
Mr. Gordon Jones, of Denver, Colo.:
I
trust the gentleman will withdraw the motion.
In the
resolutions that were piissed last Monday afternoon
by tbS>
day, and they

act

the

features
did not
country banker here been already in¬

plainly stated that there were
with which we are dealing of which they

bankers they

country

approve.

Has not the

country banker here
that has stated that he distrusts the action of the
Chicago
Conference.
What more do the country bankers want?
I
agree with Governor Bailey that they have done very well.
MR. McRae, of Arkansas : I join in the request that this mo¬
tion be withdrawn.
While I do not endorse ail of the recom¬
mendations of the Chicago Conference, I do endorse the recom¬
mendations that the country bankers made on Monday, and I
may say some other of the recommendations of -the Chicago Con¬
ference ; hut I hope that you will not embarrass the Committee
that goes to Washington representing the country bankers, and
I believe that if they go there in the proper spirit that they will
formed

measure?

of this

"get everything that they

Do not let us

asked for on Monday.

right,
might

amenable, but I do not care to with¬
my motion.
The action of the country bankers was all
so far as it went, but if Congress wants information, we
just as well give it to them all along the line, and not
I like to be

pick out just a few points.
Mr.

"

John L. Hamilton :,

Having an

abiding faith

The motion was

Vice-Presidents of States having one

motion on the table.

No.

.

Colonel

was

I move to

be the

of the resolutions which
explanatory, and I will ask him to read that part

it

the Assistant Secre¬

they will be found in the room.

\ •
,
order of business will

J.

Mr.

Chairman^

of Kansas:.

Bailey,

I

That




we

into

urge

upon

Congress the wisdom and necessity
law the amendments recommended

the proposed

•

•

.

,

.

that the report

m.ove

of the officers be re¬

records of this
3\

^without reading, and made a part of the

ceived

Convention.

[The motion

seconded.]

was

It is carried, and it will be so

posed no.

in

Next
first

126 to 140.]

pages

on

ordered.

will be found in the Com¬

[The reports of the various officers
mittee Reports

will Say aye; op¬

favor of that motion

The Chairman; All in

The
Sec¬

the Sections.

order, gentlemen, is the Reports of

is that of the Trust Company

report under this head

tion.

Mr. Ralph W. Cutler, of Hartford, Conn.:
Chairman

Mr.

Gentlemen,

and

ihh report has* been approved

Association, and——
of Jacksonville, Fla, (Interrupting) :

by the Executive Council of the
Mr.

J.

T.

Dismukes,

reports lay over until to-morrow—or,

that these various

move

rather, that they be printed and turned in.
Chairman

The
to

the

Chair,

been begun

Such

:

of

after a report, has

unanimous action

it cannot be stopped, except by the

Convention.

the

disposition would be very agreeable

a

but the Chair must ritle that

You

make such action if you choose,

may

.

'

-

.

[The report of the Trust Company Section was
Mr. T.

J.

I

that

move

1

then read.]

Davis, of Cincinnati, 0.:

[The motion
The

the reading

suggest that Mr, Cutler finish

Chair would

the report.

the report be
was

Chairman

All

:

[The motion

was

received and filed.

seconded.]

saying aye; opposed,

favor

in

of

the motion will

signify by

no..

carried.]

Mr. Dismukes: Now,

I

move

that the rest of the reports be

printed and turned in and passed over.

quite

Chairman

with

the

familiar

Gentleman,

:

the

term

gentleman
received

be

same

with

the

term

as

from

and

that

and have them

Mr. Dismukes

:

mean

introducers

made
'■

native

Southerner,

I am

over," but not exactly
However, the Chair understands

Florida to
their

a

" turned

" passed over."

vention.

incorporating

printed in pamphlet form, and

that they be read from the platform.

Reports of Officers Received,
W.

Mr.

the

Resolved,

the next

I may say that these are the annual

follows :

of

handled

Gentlemen,

reports of officers.

The

this is really
a comment on the
resolution which precedes it, and it reads as
follows—perhaps I had better read the resolution which pre¬
cedes it.
The resolution which precedes this comment is as
Farnsworth : Gentlemen,

of the Nomi¬

Farnsworth : The roll-call

always

seemsunnecessary

to read one part of one

Secretary

the

for

by

now.

General

V'
roll-call

a

you
r

reports, and they have all been

and seconded to lay
that motion will say

The" motion is carried, and the motion made

have

Secretary,

is

Chairman :

The

;.

selected by the various

3

'
Mr.

Committee

tary and

;;

-

floor of this hall at half-past

second

the

on

General" Secretary

nating

It has been moved

All in favor of

2 o'clock,

Nominating Committee?

;

from Kansas, Mr. Harris, is laid on the table.
Farnsworth informs me that in reading the resolu¬

somewhat

meet

Delegate :

but the

'

by the gentleman
tions he omitted

will

more

or

the press

quarter-past four o'clock,

four o'clock."
A

members

hundred

General Nominating Committee:

The

States

one

that the Vice-Prbsidents of the States and

Territories meet at a

of

'

*

meeting of

call for a

a

hundred members or mqre.

.the west side of the stage at

on

•

the country banker,

in

Vice-Presidents of

the

asked to meet in the room immediately over

"I would suggest

"

having

Territories

and

States

have been

seconded.

Chairman Reynolds:

Aye ; opposed,

'

motion on the table.

lay Mr.. Harris'

the

-

Convention

'

I

will get it.

draw

'.3

•

the

of

.■,'. V

.

there is

meeting

that

Preceding

There is but one

with other questions. In other words,
do not criss-cross yourselves.
If you do not.believe what you
said on Monday, why, withdraw it; but if you do believe it,
stand by it and go and tell Congress what you want, and I think
Mr. Harris :

'

States is called to meet at 4,30 o'clock this after-

various

"

complicate the situation

you

V-' '■

Council and

Executive

the

of

members

■■■'

Committee

President and the Vice-President and the

nominates the

which

N

»

bankers did a

country

; :'v'\

Nominating'

General

"The

I have been requested by

Nominating Committee to make this announce¬

ment :

the

NOMINATING COMMITTEE.

OF

Secretary Farnsworth :

of the

members

room

include the Trust Com¬

'

W.

Mr.

MEETING

FOR

General

■

representative both of a bank and of a trust
ocmpany," and I would like to know. ' •
Chairman Reynolds : Yes, sir: the Chair rules that you are

in

CALL

I am the

panies?

op¬

'

noon.

country banks do you

say

\Vatts.J

O.

of Lexington, Ky.:

Bassett,

E.
you

com¬

aye;

'

*

prove

the

this

will say

vote.
Mr. Reynolds surrendered the Chair to Mr.

point

this

[At

Rock, Ark.:
:.
amend that motion, that the country banks ap¬

to

move

of including

favor

precedes this

The motion is carried, and it is a

posed, no.

Rogers, of Little

George W.

and

of the word " should " rather

in

which

resolution

the

in

"All

Reynolds :

Chairman

by country banks I
or less; that they

seconded.]

motion was

resolution

the

in

language there.

" must," in the

than

.

the last resolution aye or no.

on

[The

Y.:

of New York":

II. Treman,

R.

would like to suggest the use

I

that the country banks vote

the motion that last prevailed—-and.
banks having a capital of $250,000

upon

•

,

seconded.J"

[The motion was
Mr.

Washington that the Cur¬

out "from

I move you, sir,

country banker,

incorporated

be

that

that

move

;

„

of Marathon, N.

Tripe,

both

country,

the

passed.

passed by the House is only opposed by the
city banks and that the country bankers are in favor
Now, we have the opportunity here this afternoon, to in¬
oursedves and to inform Congress on that point; and, as

of it.

•

II.

James

Champaign, 111.:

comes

of

banks

the

National.*"

as

measure

rency

of

enlist the
State and

command the approval and

must

reform

co-operation

resolutions as a whole are

33;3V'V

F. Harris, of

B.

full

in

.

currency

F.
Mr.

Congress in order to be effective and to
measure the hopes of those who are
seeking

Any law passed by

realize

'

Currency

.

-3v •...'/■'V-

adopted.

"

has

and

follows:

Now, this comment reads as

ment

found on page 157.] •
motion is carried, and the

he

which body

in

Senate,

(reading) : " Resolved,
That we commend the President, the Secretary of the Treasury,
and Congress for their efforts to give this country an elastic
as well as a safe currency, and pledge them our hearty support
towards the enactment of proper legislation to that end."
Chairman Reynolds : Gentlemen, you have heard the reso¬
lution read.
"All in favor of its adoption will say aye; opposed,
no.
It is carried unanimously.
[Applause.]
^
Mb. Festus J. Wade: I now move that we adopt the resolu¬
tions as a whole by a rising vote.
■
[The motion was seconded by various delegates.] •
Chairman Reynolds: All in favor of ratifying and adopt¬
ing these resolutions will manifest it by rising.
[One delegate,
S. D. Scudder, Richmond, Va., remained
seated.
Mr. Scudder later explained his vote, and his remarks

of which

Banking

on

Farnsworth

Secretary

General

been elaborately pre¬
of the United
the proposed law is now pending.

Committee

the

to

sented

all

conference,

Chicago

the

by

voted no.].;;;>^.^;|

[Mr. McRae, of Arkansas,

153

SECTION.

a

that
be

the Section
given

leave

part of the records of

reports
to print

this Con¬

''

Yes, sir, that is my motion.

'

-

154

BANKERS'

[The motion
The

seconded.]

was

Chairman:

posed,

All

in

The motion

no.

CONVENTION.
Association

favor

is

of

the

motion

will say

aye;

sentative

op-

carried.

Tue

The next order of business is the

Report of the Committee

on

Constitutional Revision.
REPORT

OF

THE

COMMITTEE

ON

RFVKinx

'

'

first

be

no

at

home.

the

upon

fact

\

draft of the

members

^°°^'
finally

CONSTITUTIONAL

.

depends

body.
of

After

the

it

must

Council

noised

was

who

abroad

I Ma.
in

Sol.

the

agreed that there should

am

that Mr. James is unable to be here

sorry

to-day because of his illness.
the

greater

of

part

Now,

Chairman of the
Committee|]

the

Wexler: I

the

I

Constitution.

to

Want

credit

for

work

of

'

drafting

from

I

of

the

be

here

this

Mr.

-

the

on

different

here asking,

am

Chairman

this well

that to him is due

say

the

not

elected

under-

be

member

one

of

the

account

matured,

John

T.

of

of

not

only

the

was

presented to the Executive Council

Monday afternoon, and the Committee
to- the

Convention.

A

discussion

was

was

directed to present it

had

on

that meeting, and a complaint was made
Trust

Company Section and

representation

for myself but

who

illness, that

in the

it

as

was

prepared,

represent
heated

reach
of

bership

Chairman

under

this

Convention

inadequate to

was

of

those

Dismukes, of Jacksonville, Fla.

I

:

second

either there

stage,

and

•

in

the

of

one

the

interest

of

the

Executive

that

the

in

the

word

Committee of such

Executive

Council

".shall," wherever it

Section

to do it
Mr.

of

the

that

the

of

the

authors

I

:

want

the

matter

Monday

to

this

stating that

came

draft* I

for

up

was

was

suggested

on

by

three

members

their

willingness

this

draft

of

of

that
to

the

Monday there

on

Committee,

acquiesce

in

Constitution

and

each

these, changes

might

in

I

agreed

to

them,

in

be unanimously

We, of course, in acquiescing spoke for ourselves
and

for the Committee

not

a

as

Committee not being present.
not

be material.

members,

in

tion

will

The

many

matter

desire

you

extent

of

to

the

carry

Mr.
to

the

likely

reafcli

years

before

now

make.

If

vote, just
draft

new

I

it

as

its

of

Convention

to

have

will

amend

of

require
or

amended.

Cal.:

I

Acting Chairman of the committee that

have

a

as

part

of

Mr.

motion

his

sidered

A.

make
as

the

revision

be

it

'

would

v

vice

to

be

such

motion,

a

been

read

viz.,

in

committee.

that

full

and

a

be

part

opposed,
The

first

It is

no.

Chair

will

entitled

to

J,

the

As

W.

of

the

stitution, I wish to
the

By-Laws

letin

of

raents

in

Chicago,

of

the

Mr.

of

there

and

began

be

in

Mr.

all

of

tion

in

did
of

rest

that

is

is

club,

members
run

Committee,
Convention.
elected

We

Association

for

Council

we

the

of

that

should

it

smooth

Under

and

theory

we

that
the

a

man

Now, this

tried

believe

old

a

system

was

elected

Constitution
home and

to ,make

this

a

be

on

you

have

that

of

by

were

the

Asso-

the

three

present

the.Council

the
he

form

to

gentleman

desires

offer

.

the

designate the

have

to

in

itself,
C

better

the ponvention

the

on

the

amended,

desires

that

I

ad-

shall

having

own,

he

can

report

be

amended

make.the

words

get

the

the

as

be amended by the addition

than

1,000

member

a

can

his

way.

that

more

official as

floor

report

move

be,

its

out

to

elected

after

he

provides

of

a

got
that

responsible to

com-

to

the

held

back

a

be

second

rpHE

that

of

members

the

elect

may

Executive

Council

the

** 1)0

:

Nominating
will

the
be

them.

representative body of people,

in

and

the

sub-

by-laws,

'

."

;

.,

Gentlemen,

the

amendments

proposed

are

•

,

order* ^r* Chairman, I would like

*s Alaska,
Union.

Hawaii is not

or as Oklahoma was before it

Now, under Section

referred

to)

:

Section

In

1

2,

Die District of Columbia.

in there—unless it
Die

American

banks, and

it

on

I

is

a

•

to

.

inquire what

Dependency of the

are elected

think

there

As

purposes

:

gentlemen,

E.
a

should

also

in

We

the
have

vote

is

and

by

be

placed

territory

of

membership

of

five

National

we are as
loyal
of the American Bankers' Association

The

but

Chair
must

has

now

been
rule

giving
that

quite

further

full

lati-

discussion

not germane to the question

before

it may

be taken up subsequently.
C. Emerick, of Williamsport, Pa.

member

of

the

Trust

Company

to the amendment offered by

my

bers

Section

of

to

by the States

State in the Union.

House;

Mr.

right

itself—the

us

Association.

of this particular matter is
the

of

{reading Section

the

a large number of other banks, and

Chairman

tude to

8,

a

as

admitted into the

was

provided

page

otherwise

means

Bankers*

the aims and

a

Con-

Section

that

a part of the; mainland, but it is
fully organized territory of the United States just as much

The

you

Also

,Mr- U/-T. Peck,, of Honolulu, Hawaii:
•

as is any

to

line of that

.

him

here

last

"may"

motion.

Chairman:

posL

of

the

word

Hawaii, if it is intended to include

way.

that

potentiality

revise

the

limited to those members who

because

dozen

ought

who

man

next to

now before vou.

the

anybody

order

it

in

therefor

United States; it is not

In

that the future welfare of the American
Bankers'




am

The

proposed.

I

splendidly

had.
a

constituency

started

only

re-

I

.

be

that

gentleman

is the status of Hawaii?

you.

kind

in

maintain

should

have

taken.

the point of asking the Chair for

offering

and

been

half

a

that,

us

well

not

by

"'may."
''.P '
F. II.-Fries, of North Carolina:

to

has

work,

the

to

have

on

that

should

by the folks at
have

of

due

Association

were

in

many

power

this

that

along

to

seem

Upon

stitution.

referred

emphasize what

offered
who

us

to

most
us

now

those .of

fellows'

was

great

the

on

Bui-

committee

way-—without any reflection

a

lot of
it

Bankers'

home.

and

.attending
the American Bankers' Association
have been
that we had outgrown our Constitution
:

of

to

the

James

the

is

Aricle 6,.in the last line, the word "shall" following the word
"sections" be changed to " may," and that the word "shall"
following the word "employees" shall also be changed to

Con-

General

been

the

want

representative Association, and that every
at

the

have

that

thoroughly, and I

that

good

a

and

American

the

the. fact

a

were

mittees
It

of

of

Constitution

1

gentlemen

you

have passed,

convention

kind

Revision

a

than

it had got to be
a

that

or

suggested,

Article 10, Section 2, be amended by changing the

^ord " shall "

•

,"

Constitution

that

conscious

^so

are

•

of the

printed

suggested

now.

very

said,

more

constructed

the

committee

great deal of thought and study.
We met
and. spent several days in going over the matter

Wexler

years

been

Section

stituting

the

on

the adoption

have

to

say.

revision

him

to
•

to

this matter

the

Bankers' Association without the amend-

been

Wexler just

want

given

of

Kan.:

Committee

they

as

Atchison,

move

American

that .have

by Mr.
i

the

of

the. Associa-

ex-offlcio

members

privileges of the floor.

Bailey,

member

a

that

now

and

as

Then

:

one additional

will say aye ;

unanimously carried.

rule

'

Mr.

favor that motion

as

but

would

whether

the

Fuller

" Any
many

in

follows: That Article 5. Section 2,
°f the following words:

the

"
<

As

:

a

: The Chair would rule that Governor Bailey's
well taken, but,1 on\the other hand, if by unani-

consent

mous

con-

of

of

were

Wexler makes to my

Revision

on

it

was on

of the gentlemen

[Seconded.]
The Chairman

think

the point,

on

suggestion is

well

.

revision,

made

on

be

points, and when

former President

a

matter before the House in that

the

might

The Chairman

read

as

I

rf>ad tke amendments

suggest

considered

Committee

Fuller: I

McCord, of Atlanta, Ga.:

having

of the

report

that

report.

Joseph

will

made

the

by

sections of the Constitution

;

would

there

the

suggestion

acquiesced

were

amendments separately,

as

vote

When

meeting

harmony and good fellow-

1 now offer those amendments.

the

to

suggested

they

of

his

at

*he Council meeting at the time,

it will Require

two-thirds

a

as

Angeles,

to,

action

one

instrument.
Council

Wexler did not suggest these amendments.

Bailey:

draft

as

convic-

ex-President

an

the interest

were

were

and

members

*

such

the

referred

entirety

Los

for

they

amendments

Clearing House She-

membership of 1,000.

wish

you

in

Pkrrin,

a

the

that

elation,

at most the addition of three.

that

the

changes which

John

-to

I

is

the

two-thirds

a

,

for

hardly

the

am

full

if

of

some

The objection that Mr.

;

aware that Mr,

accepted.

whole, the other members of the

mean

the

as

here

appear

with

re-

I

.

mark

that

individuals

as

of

amended

.

Mr. Fuller

We felt that these changes would

They could

it is

and

sll'P-

signified

order

revision

be

amendments

tion, after fully considering the changes that

present

were

them

of

I

ideal

an

•

that meeting of the Council

the

suggestion.

my

here

jt^ffiqpeared

argumenjt^r^FTt

a compromise

the

at

when

discussion

and

that

say

made

came

drawn

as

afternoon,

heated

very

to
not

were

Committee, and

of

tion that the draft

the
Executive Council shall be empowered to
ipake financial
provision for the Sections, be changed to " may."
v '
At

that

Committee

way.

Wexler

member

a

> of the

Association.

appears,

in

Sol

ferred to by Mr. Fuller

ex-

added

by

suggested by Mr. Wexler.
think that the explanation
made by Mr. Wexler is sufficient
my going through the
revision
anc] pointing out the details of it; but I will do so if the Chair feels
that it is best

a

har-

of

submitted
was

I

the

on

as

that

manner

with

if it

as

here

or

that juncture

at

suggested

Quite

time

one

the

,

Constitution

in the

properly

Sections.

adopt

considered, consistent instrument,

move

the

at

this Constitution

place, and it appeared at

Association

representation

Also

that

interests

acrimonious

the

each

one

that

Convention;

of

clauses

compromise to the effect that the Section having a memexceeding 1,000 be permitted to have the name of the

mony a

its

took

an

this

presidents

and

important

debate

might
floor

the

several

the part of both the

on

name

unfortunately cannot

Mr. Oliver C.
Fuller, of Milwaukee, Wis.: Mr. Chairman, if
this is the proper time, I desire to

the Savings Bank Section that their

reduced to

was

its meeting on

at

we

Council

-

Committee,

his

well

motion.

-

Sections.

,

This

repre-

& ,protest from the Sections that

ex-officio

'

-

Wkxlkr, of New Orleans. La., presented the report,

absence of

Mr.

•

a

generally

were

and

-

•;

be

Constitution provided that there should

Executive

that

that

v

the

Trust

Company

Section,

I

friend, Mr. Fuller.
are

also

am

opposed

The

members

of

mtm-

this

these

stated is entirely
National Banks have,
but practically that does not work. out.
The fact is that the
Stale
Associations throughout the country are more largely
National bankers than they are Trust Company men, and the
further fact is, if the past history of the membership of the
Council is any criterion for the future, that National bankers
are
elected by the State Associations, and particularly in the
that

true,

have the same rights as

we

are not elected.
proposed by the commit¬
beautiful, and in most respects it is admirable; but you
remember that bankets have troubles of their own at the
States

Eastern

Trust

Company

this

constitution

Theoretically,
is

tee

gentleman' lias

the

what

Theoretically,

must

this

in

country

antagonize

men

as

try and appear before the people
It will not do to

present time, and we have to
of

united frame of mind.

a

Trust
asking

Section composed of 1,300 members.
The
1,363 members to-day, and all it is

a

Company Section has
that

is

for

additional member of their ex¬
the Executive Council of the
They did ask more, but in the same

shall have one

they

officers

ecutive

Association.

Bankers'

to which

of compromise

spirit

assented to the compromise

have

Mr. Wexler has referred, they
suggested, and they now come

disappoint them in this regard.
Section yesterday, mis¬
understanding that this matter had been finally settled, it was
reported to our membership that the matter had been adjusted.

before
■

and ask you not to

you

the Trust Company

At the meeting of

I

to

want

part of

better

the

Trusts

and

and

that

I

comparatively virtuous.

am

.

fifteen

For

unfortunate as not to

that I am a National banker

business life so far as the insidious
of Savings Banks and Trust Companies

concerned,

are

[Laughter.]

so.

are

my

seductive intiuences

and

who

those

made.my acquaintance

have

for

to

say

Neb. :

of Fremont,

R. Gurney,

E.

Mb.

without a break I have

years

attended the meet¬

Association.
Five years ago by some
happy chance I attended the" meetings of the Savings Bank Sec¬
tion.
A little later I found an interest in the meetings of the
Trust Company
Section, and, Mr. Chairman and gentlemen, I
have been most agreeably surprised at the splendid character
of the programs which have been presented at those meetings
in those Sections.
Why, yesterday, in the little Opera House
oVer here there was a meeting of the Savings Bank
Section
that
was
very
largely attended, there were nearly twice as
many people there as are in this hall now.
So it has been in
all these years; these Sections have been the means of bring¬
ing a large part of the attendance at these conventions.
I
have been most agreeably surprised to find that the Trust Com¬
Rankers'

this

of

ings

loyal to this Association,
and it has brought in nearly 1,400 members into the Associa¬
tion.
The Savings Bank Section by the display of the same
energy has brought, in 2,400 members.
I
understand that in the point of the reserve and the re¬
Section by its activities is mpst

pany

the

combined.

these

in

Certainly

whom "are

to

men

orphans, who administer the trusts

and

Now,

then,

remember

dismay

the

to

that

find

they

tions,
I

American Bankers'

the

of

rest

Sections represent more than
Association membership
character they cannot be surpassed,
entrusted the savings of the widows

the dollars these

sponsibility and
all

that

our

of their fellow men.

of these Sec¬
self-appointed Committee—for
President was deprived of the

and consternation

this

when

honored

in ,tke Conven¬
had
absolutely 'cut them off without a single representative, and it
was
only tardily and grudgingly granted, to them Monday at
the meeting of the Council.
Why, gentlemen, think of these
two Sections, with a total membership of 3,800 members, hardly
given the right to have two members onl the Executive Coun¬
cil out of ninety !
They found more than this, that they had
tion

a

ago-*—first,

year

submitted

been

thrust
as

it

upon

has

to

the

they

called

been

Association

by

[laughter],

Sections

find

have

the

honor

by the Constitution,

and

between

stitution
then

can

after

the

only

notice

indignity

be amended
has

been
a

themselves

been

placed—talk

one,

by

about

and

relegated

And what is the differ¬
the By-Lawrs?
The Con¬
vote, and only
proposed amendment

by a two-thirds

given

by

by-law can

the

be amended, at any meet¬

notice being first given.
Sections find themselves placed.




had

document,

which is a good

for the Sections have been

Constitution

thirty days; while

ing without any
these

the

Why, even the committees of this
of being placed above these Sec¬

their standing upon the By-Laws.

ence

for

that this. Committee

indignity—or

getting in at the back door.

tions

found

them—of being placed in that immortal

way—these

the

members of that Committee

to name the

right

two

incendiary speech that I am
great Sections find that they have
an

was

member , of

a

as

making here—
not even the
authority to hire a stenographer, and they cannot even buy a
batch
of postage stamps.
Yet these Sections bring into the
Association from twenty to forty thousand dollars a year, and
they have been so emasculated in their powers that they haven't
the authority to even manage the little insignificant. things ir
their own groups.
I submit, sir, that it is an indignity to put
upon the membership of these Sections. ,, We have only asked
that the word "shall," in the sentence where it is.said they
shall be supervised, shall
be changed to "may," which is a
much more amiable wrord, and that the Section shall have two
representatives instead of one.
Some gentleman down here on
the floor raised the point that the members of the Trust Com¬
pany Sections and the Savings Banks Sections needed no rep¬
resentation except as they got it at large.
I submit that the
average
Savings Bank man and the average Trust Company
man
does a local, business.
The National Bank man, on the
other hand, has commercial accounts all over the State, and
his
acquaintance is widespread, and when it comes to the
convention of his State Association he has a long arm and he
gets the nomination.
A single glance at our Executive Coun¬
cil will convince any one of this.
My good friend, Governor
Bailey, who, by the way, has gotten off on the wrong foot on
this matter, while loyal to the Chairman of. his Committee—
and that loyalty on his part is certainly admirable—made a
most unfortunate simile when he referred to a " tempest in a
teapot."
There is too much of suggestion in that of the inci¬
dent that occurred down here in Boston harbor, where there
instituted a real tempest in the teapot, and the broilings.
of that tea aroused the feeling of the colonists that they were
being deprived of representation and finally brought to
the
King of England grief that he long deplored.
[Applause.]
Gentleman, let us not deprive these Sections of the repre¬
sentation to which they are richly and rightly entitled.
I wish
my
friend, Governor Bailey, whom I admire intensely, and
who is a neighbor of mine, would withdraw his opposition and
let this thing go through unanimously by every vote in this
Convention because it is most righteous.
[Applause.]
Mr. Gordon .Tones : I have been a member of this Associa¬
tion for twenty-five years, and I think this is about the first
Convention in which
I have ever raised my voice from the
floor during its deliberations.
Mr. Gurney has made a state¬
ment that I would like to refute in
so far as I am personally
concerned.
I am a member of this committee.
Mr. Gurney
said that this committee was virtually self-appointed.
I have
interest in a trust company as a stockholder or as a de¬
positor, nor have I any interest in a savings bank in either
capacity.
I was not present at the Detroit meeting, and ! was
greatly surprised when I learned that my name had been men¬
tioned and that I was elected as one of the committee on the
revision of the constitution.
So much to clear my skirts of the
not

is

this

of Newark, N. J.:

H. McCarter,

U.

Mr.

Chairman—and I beg you to believe that

Mr.

further,

And

privileges for the election
in their State organizations that the members of the National
banks have.
Our State of Pennsylvania has two representatives
from the Trust Companies to-day in their Executive Counciltwo out of four.
They go on the basis that you want to try
and elect the best men, and I think that should be the case all
over the United
States.
If they have better men in the Trust
Company Section than they have in the National Banking Sec¬
tion, why I believe they will elect them in their State organiza¬
tions.
It is not necessary to fill up the Executive Council from
these separate Sections.
I believe they will get their repre¬
sentations from the State organizations themselves.
have the same

and they

Association,

155

SECTION.

BANKING

So' that is, the way

no

cut and dried programme.
interests in, a country bank.
that to assist you in identifying me, as Mr. Gurney iden¬
himself; and, further, to show you that I have no interest
being a part of any

charge of
I
I

say

tified
in

banker; I have

country

a

am

amendments.

supporting or opposing the

either

first

time

have

not

been

Now for the

Governor Bailey.
We
political gatherings together, or perhaps I

myself in opposition to

find

I

in

to him on occasions. I
him as an orator in pre¬
senting my views before you, but I declare that the arguments
are against him.
It has been said that there are nearly 1,400
members In the Trust Company Section, but that includes those
who are also in the Savings Bank Section as well.
Now, the
draft of this constitution provides that no member may belong
to
two
Sections—which means that a member must choose
either the Savings Bank Section or the Trust Company
Sec¬
tion, and I heard it stated that with this change there wouldn't
be 800 members of the Trust Company Section left.
Keep in
might have found myself in opposition
realize

the

mind

ted

proposed amendment that

have

to

a

second meniber of the

Governor Bailey's own State has.
I think we may well take cog¬
year ago two admirable men
were

precedent of which

a

this

at

nizance

these Sections are permit¬
Council when their mem¬

thousand.

bership equals one
furnished

to cope with

incapacity

my

A

time.

Executive Council, and they could
men.
What was* the re¬
sult?
The committee got busy and- increased the membership
in this Association from Kansas, so that both of those gentle¬
men
are now
sitting in the Council; and, let me say, sir, that

proposed for members of the
make

not

no

a

choice

able

more

between those

as

Mr. Goebel and Mr.

than

men

Berryman are on

that Council.

verily believe that this will mean,

upon
to get another member of
the Council it will be necessary to bring into the fold quite a
number of more members of Trust Companies—or, to bring in
gentlemen,

Now,

a

proper

Companies

Trust

that

no

made

a

I

analysis,

greater

member

in

that

as

order

members.

honor

of

can

the

It has been said by some one
any man than to be

be accorded

Executive

Council of

the American

Bankers' Association.

[Cries cf Question!
One

more

Question!

point, gentlemen, and

ings Banks as a

Question!]
Qien I will finish.

The Sav¬

rule do not have a very strong base at

home;

156

they

BANKERS'
small

are

large

Trust

Council.

I

England.
stand,

institutions.

Companies
am

In

speaking

the

not

are

The

Far

of

elected

Savings

West

strongly

excellent work ;

large National Bank's and the

always

are

CONVENTION.

the

directly

Banks

Savings

represented,

of

out

now

Banks, • as

it

when

comes

conciliation

the

upon

with

New

I

under¬

to

direct

[Cries
Mr.

to

comes

electing

Association.
in

only

the

upon

which

into

come

Council—-it

referred

was

Mit.

President

own

Boards to

own

Executive

Gurney

I

:

Chairman

own

the

them

the

distinguished

President's

permission

annual

retract

to

nearly

year

entire

honor

the

it, and

I

I

to

The

have

Mr.

the Executive

Detroit
which

has

ized

to

do
to

sound

than

I

be

remarks

my

this

committee

referred

to

the

so

by

the convention,

appoint his ^own

Now, I have listened

Council, and I heard

hand-picked,

that

to

to

after

years

wisdom

for

the

constitution
read

no.

it, and

had

health

ing

.Tames,

read

operated

permit

but

on,

him

from

the

to

that

be

be

Council, and I think

the

last

time

giving the

Sections

Then after

gentlemen

pleasantries

the

that

I

I

the

accepted

pany

Section

more

members
If

he

the

carried

other

any

of

the

the

on

that

question

about

the

on

anybody's

right

Savings

Banks,

which

and

forth

wherever

dove

it.

But

of

before

now

fact that

the

introduce any

it

to

the

liamentarily,

The

:

fact

is

Council, but

that

not

for

I

it

state

be

The

by

this

delegate

a

Convention.

by

the

the

be

to

right,

when

even

I

led

still

way

Thank

:

I

in

get

feel

that

to

were

but

by "the
Trust
want

this

man

floor

have

am

With

this

here

were

there

and

in

could

this

action

here

the

other

on/ record

and

Convention

of

the

or

went

now,

regard
I

is

in

argument,

;

7

Sections,

and

The

Chairman

personal

listened.

present

I

at

not

read

son

for

was

the

a

not

of

I

was

impossible

was

since

have

read

the

ex-President

meeting of

having

and

I

regret that it is necessary for
after the remarks to which

the

complete draft

office before it

Now,

I

:

statement

was

On

the

an

read
sent

out

extended

for

to

me

meeting

it.

of

it

The

to

work

of

mendation; it speaks for itself.

tion, I would be among the first




the

the

as

aye;

It is

tour

Council
the

But
to

in

until
on

it

Sol

ing from

did

rea¬

left

England
I

My

and

reached

it

no

com¬

commenda¬

say the Committee has done

by Mr.

Convention

as

•

small

amendment

workable:

of

the

" '*
of

Protective

'.

was

that

Com-

■

seconded.]

will

say

aye;

adoption

of

the

opposed,

report

as

"

attention

If

so,

only

Peck

II, Section

whether

could

we

by Mr.

to Article

doubtful

very

Hawaii:

raised

was

the

some

1.

As

territory

become

offer

an

as

construed

to

second

amendment,
as

follows:

in

this

include

to

of

.

assdeiate

an

be

Constitution

as

contained

of Hawaii.

that.

Is

,

there any

discussion of this proposition?
adoption of the amendment will

favor the

as

known

the territory

It is carried.

no.

is

now

many

the

upon

favor

as

adoption

that

will

say

unanimously adopted.

point

First

of

the

aye;

report

as

opposed,

no

[Applause.]

Vice-President

Reynolds

Wexler

one

in

:

all

to

organic system to
new

following resolution
That

order

resumed

elections

avoid

confusion

any

another,

which

is

the

in

pass¬

necessitated

constitution, it is necessary to adopt

:

'•

*

made

under

existing

rules

by

members

of

nominating committees and other agencies of the work of
the Assoshall for the
purposes of this convention be and remain in

ciatiou
effect

until

the

been

duly

this

convention;

hitherto

in

all

be

Mr.
desire

F.
to

the

in

and
W.
offer

as

Hyde,

by

the

respects

Mr.

for

and

were

elected

Resolved,
and

That

the

have

period

of

under

members

they

been

shall

the

elected
be

which

they had

and

created

beyond

Council

become

periods

though

were

however,

of

shall

immediately

made

the

the

other

carried

they

extending,

amendments

all

effective

motion

delegates

for

fully

as

which

members

regulations

Council

of

not

and

existing

and

shall

[The

executed,

respects

for

purposes

the

of

the

elected,

under

the

the

constitution

and

the

these

amendments

and

by-laws

upon

their

Wexler

by¬

adoption.

was

seconded

by various

unanimously.]
of

Jamestown,

N.

following resolution

Y.:
and

Mr.

move

Chairman,
its

here.

afternoon

needs

need

my

be

the

15, after the. word, time there

the

upon

call

by the adoption of the

make

Association,

Monday

Committee
if

I

amended

the

another

Wexler

and
I

and

this

laws ;

that

was

to

proposed

Chair.]

was

revision.

motion

"

is

.

favor

"State"

:

carried

who

was

that

before

members

word

As

Association

time

is

the

,

as

had

of

,

Wexler

motion

matter

point that

would

opposed,

amended.

sus¬

I

the

Article II, to read

question

provisions

that

Mr.

stands

section

in

is

is

many

Executive

stated

to

Chairman:

not,

say

Consti¬

to

me

'

.

The

just

and

draft

we

that

there

by Mr.

.

have

members of the

the

I

amendment

adoption

'

Lewis, Jr., of Honolulu,

it

held

we

proposed

that

motoring
the

the

Council

this

at

see

of

of

a

particular

every

tution.

a

as

and

the

of the report as amended.

that

except

All

:

to the

I

of

the

shall be

the

the

"

now

wish

Therefore,

Section

not sought

was

Revision

on

matchless

no

make

included.

me

his

be

Council,
believing that

as

should

Committee

in

on

V[Laughter.]

favoring

member of this body.

Mr.

blinders'put

The

carried.

stands,

The

of

Chairman,

Those opposed to the

rise.

now

understands

reason

■

As

'

Those

•

time ago,

par-

always glad

jumping too far.

matter

Section
I

record

on

to

of

to

I still feel that the
proposition

Bank

the

want

the habit

Savings

go

don't

I

Mr.

:

for.

will rise.

Chair

that

made

question

[At

Chairman.

if Mr. James

Company
to

delegates
tain

I

present

made against it.

Mr.

you,

to

words

.

°

Edens

the

adop¬

report.

-

of that

Executive

called

announces

/

Mr. Peck

at¬

The

the

upon

by saying aye; opposed,

•

amended.

to

gentleman's

is

again

line 11,

Chairman

the

amendment,

on

the

.

Mr.

amend¬

~

will

"

It is

That

to

is

committee's

[interposing]

Wexler, of Louisiana:

that in

added

no.

.

call* the

the

necessary

mem¬

to

it

the adoption

:

voting upon

move

that

consented

Chair

for

[The motion

If

introduced

was

I

Js, the property

of

Sol

mittee."

.

profit

attention

draft.

would

the

call

the

know.n

division

and

Hawaii

tfnF Executive Council

this

Chair

that

to

committee

introduced

was

want

into

that

not

I

proper

amendments

Chairman

tention

of

is

the assemblage

over

vote

we

report

convention, and
The

hovering

peace

A

now

that is

shows, before they could qualify under that
provision; but with
the

the

.

Before

fluttering membership of the

back

goes

places

.

or

care¬

the

granting

\

:

now

Mr. Abraham

ply with that provision it would be found
only after very
analysis, for it will be found after a study of their

they must have

this

large

very

Fuller.

Creer, of Cleveland, Ohio:

order,

Coun¬

ful

be

have

report

of

com¬

that

It.

its

thousand

a

to

[Applause.]

you

I

suggestion

had

it

report,

Council.,

within

the

and

Mr.

which the Trust Com¬

representation

to

seem

Chairman

of

The

lawyer-like

offered

let

Fuller,

•

its

by

Gentlemen, the question

adoption of the

.

parliamentary

acting

.

W.

amended

returning

convention.

usual

was

means of

Section

increase

any

it

plausible

made, by

might

was

thinking

a

constitution

division.

and

move

out

stating that

to

bership

Mr.

that it would prob¬

representation

indulged in the

very

was

and

there

had

has

Question!]

Bailey, of Kansas

amendment.

revised

chairman

this

J.
a

furnish

the

that

ayes

the

speak there, but that I
Trust Company, man against

a

the

of

resources

CONSTITUTION ADOPTED.

adoption of the amendment

The

read

hoped

said then

of

by Mr.

Question!

will

Chairman

Chairman, I had

the

at

was

Sections under the Execu¬

Sections

adoption of the amendment

con¬

would

larger

any

Council,

compromise which

cil.

and

sick, bed,

present

wanted to register my
protest as

rights,

not

Mr.

his

the

of

Savings Bank Section

suggested

amendment

favor it

for

The

author¬

by the

expired

letter from

a

written

been

Question!

the

W.

call

mind

my

patiently to the argument of the "gentlemen represent¬
Trust Company Section
asking for greater representa¬

on

ably

had also

would

the

tion

I

splendid

Section

membership of 114, representing only
To-day it has a membership of

progressive

NEW

as

Mr.
I

I

President

as

th"e committee.

by

Mr.

been

listened

term

and

of

The

4

speak,

that took place in

Council—say that he had

reported

committee,
he

his

done

,Company

which

Chairman:

of

many

of this Association—a
gentleman who by courtesy is entitled to sit in the
Council for
three

The

The

that have

Governor

was

asked

was

this debate

•

reserve.

revision

of

committee.

all

satisfied

[Applause.]

Trust

of these

[Cries

former President

a

of

a

The

proposed

The

so

appointment

for he

towards

be

Question !]

1,400, and represents one-third

Council,

tion

member

a

here, I want to side with

made

with

Association.

of the gen¬

least, because of the belief in

who

millions

ments

record.

and being also

was

Association.

1807

>•

expunged from

accomplished.

Question !

to

withdrawn.

that part

consent

Trust Company,

moment at

a

of

this

important

in¬

Edens, of Chicago, 111.:

gentleman

vention

ominous

more

Council, remembering the spirit that prevailed at

been

Bailey, for

part

may

G.
a

when

the

a

By unanimous

:

remarks

William

Representing

that

that

Chairman

tlemen's

had

Association

body has more to look after now than it
can well attend
to; and I ask you,
gentlemen, to give fair con¬
sideration to the
request that has been made on behalf of
these

certainly approve of the personnel of the committee;
have picked out a better one
myself.
I desire per¬

couldn't

mission

remark

my

slight concession

a

whole

supervision of the work

tive

statement

that I made about this
being a self-appointed committee.
I do
mean
it in the sense in which the
gentleman evidently

takes

ably

Question !

membership.

not

tended.

few

a

address.

the

for

from

for one

so

II.

organized in

opportunity,

an

the Council and sit

gives

in

to

desire

their

and

work

Council of this

Therefore, this gives the Sections

electing their

their

member of the

a

this

cause

has

Goff, of Cleveland, Ohio :
Gentlemen, these Sections feel that .they have

election

; they
have no correspondents from out of the terri¬
tory in which their business is confined to vote for them when

it

it

of

F.

and, in my opinion,

will

what

Committee

By-Laws be discharged;.

on

the

Revision
•

of

the

I

adoption

•

Constitution

•

„

.

Resolved, That this Association recognizes the invaluable work
which
been brought* to a successful conclusion
by the Committee on Re¬
vision,
and
herewith
makes
most
grateful
acknowledgment to the
has

.

said

of

members

committee

work of the committee,

this body of the

scattered

this

important

tion

to

system? You
York
turn by an
United
States.
If you will omit that part of the committee's report referring
to the note issue, which the committee desires the banks to undertake
instead of the government, you will stand a good chauce to be heard
at Washington regarding the other
recommendations submitted by the
committee; but if you leave it in, the Administration (and, remember,
the people are back of this Administration)
will understand that the
gage of battle has been cast, and your action may result in produc¬
ing a more drastic measure than should be passed.
" Come, let us
reason
together " should be the slogan of this Convention, and not

in the United States which would support such a
very well that any " branch " of the largest bank in New
would find itself outwitted by competition at every
-independent local banker or bank in any given spot in the
know

City

coupled with congratula¬

thanks for the eminent services he has rendered in
undertaking, and best wishes for his complete restora¬

health.

resolution

[The

seconded from various parts

was

Convention.]

,

of the
.

Gentlemen, you have heard the reso¬
lution,
which has been duly seconded..
Ay in favor if its
adoption will signify it by saying aye; those opposed, no.
It
Reynolds :

Chairman

adopted.

unanimously

is

.,

"come

mittee,
wanted

Scudder :

follow

the

conviction,

my

only

felt that I could not

I

I

though

even

tain

recorded.
Scudder has

Mr.
a

letter

this

bankers

We

the people of this country, who have
the people want their government to
investor should bow to this decision and co¬
operate to the end that the past frieridly relations may continue and
redound
to mutual
advantage.
Leading bankers with whom I have
spoken, while decidedly preferring an issue by the banks as described
in
the
Bankers' Currency Committee reportr have said to me that
they would accept the other plan if they had to,
" and probably all
would come out right:"
Why not leave our minds entirely open on
this one point as we go to Washington, and refrain from all accusa¬
tions against
the government and the people of the United States,
which
accusations
cannot do any one good, but will surely result
in
harm
to the great cause which at this time is so close to the
heart of every citizen of the United States?
Washington represents
investor.
And if

at

ment

the

created

the

issue

The Financial

Editor

A

PLEA

FOR HARMONY.

Reynolds : Gentlemen,

.

Scudder.

the Convention stands ad¬

o'clock to-morrow morning.

journed until 9.30

Chronicle. New York City:

In explanation or my vote, at the recent Boston Bankers'
through which i sought to reconcile the one great under¬
lying principle of the present "Currency Bill" to the conditions now
prevailing throughout our country, may I ask that you
I could not say at
Boston (not only because of the " time limit "
established there, but also because of the temper of the meeting
impatiently cried down any one who dared to oppose the
recommendations in their entirety).
This is what I would have said if it had been possible to get a long
enough hearing:
Mr.
Chairmen and Fellow Members of this Association:
It would take considerably more than
the five minutes allowed by
the rules of this Convention
to discuss in detail the various recom¬
Dear

D.

Company, Richmond, Va.

Richmond Trust & Savings

Vice-President
Chairman

-

the

currency,

S.

Editor of this publication ■
which we annex herewith:

also sent to the

explaining his vote,

an unfriendly act against the people?
Tq do so just at
psychological moment will put us out of the line of consideration.
represent the investors of bank stocks; but the govern¬

commit

we

did.

people was against the idea
the Commission insisted on a

'

In no uncer¬
central bank

other for¬
be wise

temper of the

be

currency reform.
there shall be no

States governed by the bankers themselves; and, second,
that the government shall make the note issue.
Even if you do not
agree with my argument that we cannot do as Canada and
eign countries do in respect to our note issues, wouldn't It
to take our cue from what we know to be the sentiment of the people
of the United States and act diplomatically at this time?
Why should

the
of a Central Bank.
Nevertheless,
Central Bank. Now
you are putting another proposition up which we are sure to
be called down on.
I am in favor of amending the bill that
is before Congress, but I don't want to ask Congress to do an
impossibility; it is undiplomatic.
You have asked Congress
for a thing that will not be granted, and I think it was an
unwise action on the part of this Convention and so I want to
it

did

I

Bankers' Currency Com¬
category of the man who

argue

the United

in

should be counted as

in

adopting the entire -report of the
will place ourselves in the same

to

the two fundamental principles of
voice have they stated, first, that

tled

do anything else than

this hall to take the position which I
because I believe that the Commission knew that
man

we

religion, but who started out with the hypothesis
that there was no God. * There can be no arguing with such ia man,
and there will be no arguing with us if you demand what the people
have said they will not have.
The people of this country have,
through their representatives, set¬

\

state his reason.

may

In

take.

#

Farnsworth then made several announce¬
ments on behalf of the Entertainment Committee.]
Mb. S. D. Scudder, of Richmond, Va.: Mr. Chairman, as I
was
the only one to vote in the negative on the resolution
ratifying the work of the Currency Commission, I ask the
privilege of stating why I did so.
Chairman
Reynolds : If there is no objection, the gentle¬
Mr.

We are partners in the great business of this
any partnership can ever permanently
are conciliatory and willing to give and

fight."

and

on

country,
and the only way
succeed is when both sides

[General Secretary

man

is the case at present.
In Canada
the business, each having its branches
Is there any community, large or

small,

sincere

and

tions

or

seven

treatment of the task entrusted to them; and that the
General Secretary convey to Mr.
Robert E. James, the chairman of
the committee,
by telegram, to-night, intelligence of the confirmation

comprehensive

by

by our government, as
eight large banks do all
all over that country.

trolled

intelligent, conscientious and

their

for

157

SECTION.

BANKING

Sir:

DAY'S

SECOND

PROCEEDINGS.

Convention,

publish what
which
Committee's

Bankers' Currency Committee asking for certain
changes in the Currency Bill now before Congress which has practically
passed the House.
I am in sympathy with some of the suggestions
made, and believe they would be adopted by the Administration if pre¬
sented in the spirit of fairness and real helpfulness.
But I am not
willing to lend myself to any action that will cut the very heart out
of the bill now before Congress and thus destroy the honest efforts
which are being made in Washington to reform our financial system.
•I
refer particularly to the entire change asked for by the Bankers'
Committee as
to the proposed Note Issue.
When all Is said and
done, the whole question now really resolves itself into whether this
government shall issue and control the currency, or whether the
shall do it.
Please forget for a moment the question as to whether
it shall be a Federal Rerserve Bank, with a main institution located
at Washington (on the idea that this " headquarters institution " shall
mendations

of

banks" through¬
'with the
be the estab¬
" head¬
controlling " Federal Board " in

only the five, seven or twelve "artery Federal
out the country,
and not have any direct dealings whatever
local banks or the general public), or whether it will
lishment of five, seven or twelve Federal banks without any

serve

quarters bank," but with simply a
Washington.
There really
is very little difference

plans, al¬
prac¬
these "de¬
Although
I had
foreign
that my
similar
careful
(in the very shadow of. Wall

between these two

the

though I am inclined to believe the former would prove
more
tical.
But, as I said before, let Us forget for a moment
tails " and
let us focus our thoughts on the main issue. .
an
American by ancestry that runs nearly three hundred years,
the good, fortune
to receive my first banking education in a
institution, the Bank of Montreal; and it is quite natural
inclinations
have decidedly
been toward a currency system
to that in use throughout the Dominion of Canada.
But after
thought and study during the past ten
Street, where I was employed in both

years

branches of our system,

well

State),

as

I

invocation by the Rev.

an

Square, Boston.

South Church, Copley

Old

INVOCATION.
Rev.
•

Gordon:

Dr.

v■

.

.'

'

from the morning of time
until now, in whose strength the successive generations of men have
risen up and done the work of the day and gone home in the evening
in peace,
we thank Thee for the great faith that we have inherited
and declared
to us.
My father worked hitherto,, and I work.
We
thank Thee for our faith in a working deity, in a working law and
God of our fathers,

Lord

Father,

Infinite

toiling humanity.

leader, in a working and
We thank Thee for the
citizens
from

intelligence and

of

from the

and

winds

the

heart

the

from

pluck

the

storms

character Which our fellow

ehrth in which they toil,
with wjhich they contend.

and
We

wilt open the eyes
inseparable.
Grant
Thy blessing upon these Thy servants in their vocation | help them
to see not only
the indispensableness of their calling to the counjtry
but
to themselves,
and help them to win intelligence and integrity
such

all

to

and

pray that Thou
work and life are

we

that

truth

the

stand and serve.

while they

,

the

beseech Thee, the President of the United States,
of this Commonwealth, the Chief Magistrate of this city,

wd

Bless,
Governor
all

idle,

the

compassionate
of

who

people.

and
rule over us, and make us a God-fearing, upright,
humane
We offer our prayer through Christ, Our Lord.
Amen.

national

convinced that, while it is the best system
fit the United States of America than
here.
We* do business in the United
States on an entirely different fundamental .basis,
which has to do
riot only with our very form of government,
but also with the char¬
acter and temperament
of our people.
Our government was founded
on
individual effort, and the personal equation runs through the entire
woof and Warp of our national and business life.
It will always be
so as
long as this republic lasts; and, while in these latter days the
corporation has sprung into our midst, it will have to be a real
individuality, " a corporation with a soul," or else give up the charter
which it got from the people.
I say this after a close psychological
analysis of recent events.
During the past twenty-four months the

as

have

Convention: The hour
and we will now
George A. Gordon, Pastor of the

Gentlemen of the

opening of this session,

the

for

arrived

has

'

SESSION.

MORNING

Chairman Reynolds :

the

banks

Thursday, October 9, 1913.

t

AGRICULTURAL

am

Canada,
it will no more
would
" branch banking "
fit

SYMPOSIUM.

for

country asserts itself from time
to
time in
unusually strong terms, has again gone abroad into this
land, and recent events clearly demonstrate what I have said about
corporations In the United States.
In Canada—and, in fact, every¬
where else
in the world—the individual is merged into, his corpora¬
tion.
Whereas here the corporation partakes of the character of its
officers and board of directors.
Isn't that clear to you, and isn't it
also evident to you that the various communities of this great nation
are
more individual
in character, running down even to the little vil¬
lages and hamlets, than anywhere else in the world, excepting, per¬
haps,
Switzerland?
This is the first great—I mean vast—republic

spirit

of

which

I,

God

for

similar
Staten

democracy,

has

which

permitted In

in

this

modern

One, believe thoroughly in
to those used by George
Island's beauty, I will say:

times to rear

itself on earth; and

its successful destiny.
In words
William Curtis, when he spoke of
" God might have created a better

but he didn't."
The point I am getting at.is that "a condition and not a theory
confronts us; " and we, as bankers, are blind if we do not, reckon with
it.
The same condition,, which makes branch banking impossible here
as
it is carried on in Canada and European countries, makes it also

Chairman Reynolds :

arrived

has

this

morning to a gentleman who was
in

movement

the

bor and friend

love
in

gentleman whom those of us know best,

Mr. Joseph
Mr.

of this Committee.

on

Chapman, of

Chairman :

The

a

session




issue by our
entirely con¬

Minneapolis, Chairman of the Com¬
Financial

Agricultural and

tion, then assumed the

indeed

undertaken by this Association,
I introduce to you, gentlemen,

Chapman, of Minneapolis.

Joseph

mittee

who has taken an important part

of the greatest works

Development and Educa¬

chair.

Mr. President,

great honor to have the

Ladies and Gentlemeni

great Convention, which

of this

can

Bankers'

Association

colleagues
years
the
I

who

have

been

has

I am sure will go down

held,

ever

conventions the Ameri¬
and

working with me

in

will

so

read

conferred
the

report

behalf of

my

for the past four

along these agricultural lines I thank your

honor

It is

privilege of presiding over one

history as one of the most memorable

nation,

impossible to seriously consider any permanent currency
banks, unless such' issue Is practically guaranteed and

Bankers' Association, a near neigh¬

American

of mine, a

and admire—a gentleman

many

and chairman

in

pleasure in turning over the gave]
tl(e prime mover of this

take great

I

The hour

symposium, as shown upon the

for the agricultural

and

program,

Gentlemen of the Convention:

Chairman for

,

of the Agricultural

Committee—it is

158

BANKERS'

short—and
the

then

will

we

listen

the

to

addresses

outlined

as

CONVENTION.
from

on

program.

his

Report of

Committee

the

and Financial

Agricultural

on

The

during

the

much

and

bankers

and

they

The

have

this

development

and

undertaken

obtained

in

the

of

opinion

have

been

a

be

develop¬
of

being

the
of

one

people,

with

.

such

'

achieved

ever

For

the

Honorable

the

years,

wilderness.

the

American

predictions

tain, he
to

by any set of business

in

June

in

August

tion

States

of

Iowa,

at

the

work

and

lines,

county

the

farms

the

supply

we

and

can

grown

Assocatious,

and

Oklahoma,

1913

who

if

time

of

roads,

The

also

are

the

most

from

the

committees

and

the

active

States

along

the

active

in

in

committee

accomplishing

roads,

for

passed

by

sible

for

The
of

the

North

has

been

ten

the

work

cattle

such

and

service

Members

con¬

of

and

of

good

Roads

Bill

largely

The

fact

.

Oregon

Texas,

and

the

be

in

work

their

than

government

has

various

Minnesota

States.

did

other

any

been

State

aiding

in

Texas

in

the

that

passage

their

most

for

"

.

thre^

had

Conventions
the

ment,

for

Tariff

Bill

priating
had

the

the

and

work

in

of

Congress.

will

It

crystallize

into

possible

action

is

will

support,

fully
Mr.

the

in

men

have

this

County,
have

are

selected

The

together

farming

More

sentiment

and

is

man

ing

is
in

the

more

be

George

America

home,

him

to

work.

without

be

E.

conclusions
ble

value

only

are

very

if

to

he

speak

of

has

been

system

of

have

the

get

be

only

pleasure

to

be

doubt

of

man

any
a

the

work

out

the

doubt

it

in

would

agricultural
the

the

present

whatever

and

in

this

minds

status

the

have

of

mind

fore
I

like

hundred

the

fortunate to have Mr.




people

Hill

with

the

closer

and

Honorable James

million

the

the

of

than

The

Minne¬

any

other

in
'

now
us

J.

railroad

thinking

in

help¬

he

Congress

are

in

raise

just

and

of

bankers

that

nine

with

the
and

inestima¬

can

ideas
Illi¬

attention

of

to

of

Agricultural

Congress

immedi¬

in

December

from

the

on

now

this

on

es¬

will

devoted

their

credit

the

time

he

for

to

of

working

can

apply the
successfully in Germany, Frauce,
forty years; when this is ac¬

a

interest

is

to

risk, knowing that

better

last

new

iu

to

system

this

or

of

any

and

repay,

banking in
country

this

America

committee

for

the

is

this

given

ability

the successful business

[continuing]
a

to

man

Sam

State
will

great

is

as

man.

this

at

co-operation

time,

they

I

have

Chapman,

who

you

find

will

gentlemen,

talk

to

you

I

am

oh

the

Jordan, of Pettis County, Missouri, is
Missouri, and my reason for making

of

be

Ladies

:

developed
doing

pleasure

as

in

hear

you

the

among

him

explain

farmers

presenting

Mr;

in

the

Missouri,

Jordan.

[Great

'

Jordan

the

Mr.

County Agent, by S. M. Jordan.
Ladies

:

American
feel

it

a

and

Chapman

Bankers'

for

printer

wanted

to

me

diction
'

than
iess
of

and

in

my

a

because
a

year

farmer

as

I

well

want

a

to

the

from

deliver

have

are-even

perhaps

discuss

an

The
worse

little

a

the

matter

working in that

on

two

a

banker

is

of

the lobsters

bodies

the

things

that

county

work.

123

The

speaker

extent

of

years'

ca¬

leave

interested

We

you

take

testify,

the

seats

on

this

the

the
in

the

the fertile soil.
no

doubt

and

in

the most

sea,

in

You

that

would

learning about

how

we

sustains

be interested
some

are

operating

full

will

of

in

the

the

'

Chairman
on

from

doing

are

we

[The address
page

from

comes

greatest

come

The County

If

the

platform

banners

front

Agent

in

be

found

on

publication.]
:

of

banners

interfere

hearing him,
down/ fold them
or

you.

with

I

would

up

and

seeing

suggest
put

'

address

an

convention.

are

been

half,

as

I

the

upon

be¬

that

letter

a

to

me

however,

speeches

him

anticipating such

received

for

have

and

in

when

ago,

address

an

informed

speech.

speech

the

I

not

speeches,

But

I

products of the soil, because while fish and the
oyster and

some

to

than

The

did

time

deliver

honor

an

have been called

I

Agent,

more

absence.

of

make

logic of my

Some

would

after that

little

a

addresses.

County

pacity for

the

the

distressing.

the

of

and

I

Association

deal

great

if

stating that he

but

the

Gentlemen:

me

short time

A

address,

closed.

America/
I

the

question,

observations

Hill

living

to

of

agri¬

European

and

subject

that

so

better

a

ability

it

as

has. been

invitation.

now

hearing

man

touch

the

to-day,

people

year

these

and

of

Company .at Joliet.

subject

chairmanship of this

Mr.

he

take

would

an

that

butter.

which

impossible

other class of business men,
man

of

during the

come

of

com¬

life

thought

subject

interest

the

up

have

the

need

no

Chairmaji Chapman asked

make

with

morning of

of any

been

products

banker

the

The

our

some

the

the

to

that
I

Mr.

like

of

instrumental
State

the

on

of

the

this

on

worked out

be

applause.]

county

to

In

be

to

"

the

utmost

realize

all

and

determined

considerable

Trust

business,

during

farmer

statement

and

to

who

men

the

provided

subject

the

his

unquestioned

introduce

asset

that

Pettis

the

of

University

largely
of

took

committee

rate

Chairman

this

farm 'more

bread

the

this

on

this

an

men

many

not

may

his

of

Taft

message.to

and

will

County Agent.

States,

of

of

object

the

must

his

mortgage banks,

the

from

thank

to

best-known

Jordan

beginning

he

in

message

a

lowest

the

to

want

from

given

the

type

is

on

are

that

President

school

will

we

railroad,

of

to

for

the

regarding

dollars

railroad

than

many

that

The

life

people

not

Vincent,

to-day,

may

no

the

of

in

work

a

School,

make

American

trained;

and

States

billions

be

a

Belgium

of

retiring

going to

by

tend

this subject.

on

there

can

farmer

to

has

December

will

industry

the

congratulated

this

Agricultural
but

the

occurred

Chairman.

hearty support

It

of

M.

S.

of

given

information

is' attracting

understands

there

man

The

Senator,

House

had

interested

more

more

committee, and to bespeak .for our successors the same in¬
telligent support and enthusiasm you have given the
present committee.

enjoyable.

ipore

revolutionize

United

The

the

example

consider

to

that

who,

one

Mr.

of

demonstration

making the farmer

"

namely,

be

to

men

,

'

intellectually, but that he
knowledge to enable him to earn

his

While

there

lives

probably better fitted

to

from

is

their

created

to-day

are

the

subject

can

live subject.

of
of

The

given

appro¬

States,

the

at

agricultural

hearing

we

of

bill

nation.

these

Bill,

this

on

however,

this

already

by

senti¬

with

up

various

intelligent and

of

and

are

Joseph

taken

member

possible,

practical

calls

what

done

this

the

fair

a

country

with

must

Honorable
sota,

for

of

country,

is

profitable,

more

and

child

that

He

Bankers'
taken

cattle

Committees

Orleans

national

and

essential

In

of

in. whom

meeting devel¬

of interest

bankers

.

agents

accomplished

Smith-Lever

be

a

the

the

The

year.

Juck

no

the

Woodruff

President

very

he

complished

to

and

Association

indicated.

the

of

the

introduction

the

State

only

so

in

will

of

revolutionize

in

devoting

fortable

the

the

expected,

citizen

pleasure

Missouri.

been

agent,

the

work

necessity.
him

been

,

will

the

not

lines

Lever,

country.
We

has

has

passage

it deserves

the

the

county

the, interest

the

that

nothing

and

and

them

along

matter

and, every

and

proper

by

demonstrators

secure

Congress,

and

year,

Congress

and

and

by the creation of healthy public

of

county

committee,

banker

make

done

education

the program of

on

past

Currency

for

Carolina,

every

the

the way,

Smith, of Georgia,

session

roads,

part

members

the

money

present

South

good

continued expansion
of

lie

to

Hoke

of

and

a

time

the

duVing

but is paving

The

of

prominent

held

bankers

results,

subjects

most

a

better

country.

past

and

have

fund

there

address

a

majority

Denmark,

largely

•

the

cost

lines.

Mr.

principles established

of

more

Union,

years,

These
have

will

solution

a

the

of County

has

work

he

The

confidence
of

pur¬

at

necessity

Convention, has had the effect of taking
largely out of the hands of the bankers and
putting it into
of the politicians.
Our present Chief Executive has
said

hands

out

Missouri,

the

purchase

been

farmers

and

Bankers'

time,

any

practical

New

tablishment of

Intro luced

Michigan,

the

to

have

the

State

fact,

at

addressed

the

probably be

in, securing
will

and

this matter
the

the

In

vast

work

that

ately after

that

of

committee

a

A

by

it

have

throughout the country.

Credits,

respon¬

.Population.

87,321.000

agents

usefulness

that

so

.

selling

farmers

enthusiasm

these

our

his

the

county

August 26 and 29 of this
of

than

credits.

bankers

question

subject

paper, we learn
following figures show

the

financed.
held

year.

now

being made

nois;

whom

confidence,

on

accumulated

cultural
is

the

was

along

the

year

demonstrating
in

past

past

and

lack

no

the

subject

have

successful

Good

were

agriculture

Indiana.

Dakota,

the

and

York

years:

/

carload

for and

Kansas City

of

the

have

conference

that

the

by

man,

bankers

this

or

for

thereby

arranged

in

the Legislature..

whereby

of

most

the

on

drafting

Illinois,

by

the

New

a

Exclusive of Dairy Cows.

56,527,000

Minnesota

A

defi¬

agent,"

securing appropriations for the" employment

demonstrators

demonstration

this

because

been

remarkable .work

Bill,

schools

South
in

work

or

of

in

in

bill

did

School

rural

Dakota,

agents

the

committee

the

effective

Legislature
of

have

amount

instrumental

passage

Vocational

all

largest

were

recent

Indiana

the

into

the

they
the

to.

appears

.

recently in

93,793,000

be

good roads, as good roads are essential to the cheap and ready
transportation of the children from their homes to the school
buildings.
Illinois

remarkable.

51,566,000

of

The

to

should

39,679,000

during

their

the

who

.....72.534,000

more

of

baukers,

study and

1907

oped

in

matter

for

prohibitive

96,496,000

West

three

county

in

most

work

for

be

two

pound

95,410,000

number

a

work

the

will

within

37,200,000

the

by several of the

hear

of

dollar 'a

....60,502,000

some

made

were

a

1911

chasing

South

doing

reports

of

feature

these

the

to

meeting,

schools

States

been

Association

opinion,

meat

enough

reason

Packers'

his

36,030,000

Caro¬

Washington,

all

being done

permits,

noticeable

efforts

have

of

producing beef,
declined in recent

has

...

prices,

Missouri,

North

price

All Cattle.
.;

In

Educa¬

Pennsylvania,

Virginia,

interesting

this

at

are

most

the

Most

York,

iu

which

.............57,899,000

a

now

representing

Minnesota,

New

Oregon,

committees

of the work

year

The.

schools

Michigan,

had

1912

com¬

that

so

in

paying

not

are

Jan* 1

in

appointed
a

has

territory

his

ascer¬

appointed

appointed

Development

New Jersey,

year.

namely—good

rural

Bankers'

These

expect,

we

demonstrator.

solidated

that
how

bankers

has

Agricultural

Maryland,

this

to-day,

concentration' of

nite

in

was

bankers

interest

Tennessee, Texas,

last

States.

Dakota

have been

of

as

American

that,

be

serious

figures published

crying

farming;

far

as

subject

Illinois

the

on

Ohio,

Dakota,

Convention

gentlemen

this

North

the

Nebraska,

Wisconsin.

effective

respective

But

most

lie

the

these

some

the attention

apostle

Colorado, Florida, Georgia, Idaho, Illinois, Indiana.

Dakota,

committees,
of

called

indifferent

our

on

and

State

Louisiana,

South
and

this

the

he

will

the

in

up.

the

weeks,

certainly

to give

agencies,

.

important question.

The

1909,

1910;

Montana,

North

Carolina,
less

of

Alabama,

Kansas,

Virginia
or

1909.

of

thirty-four

Mississippi,
lina,

most

standing committees

from

was

over

verified.

Committee

of

October

have

this

Bankers'

Minnesota

we

Hill

of

results
than

more

in

committee

in

the

J.

and

ago

that

iuflueuce

conditions

of

two

America

is

wonderful

built

President

and

man

the

has

past

of

steak,

economists,

From

'

,

the only business man clear-headed and long-headed enough

first

mittee

James

years

to

been

interest

an

The

people

have

was

take

Twenty

men.

people

laboring

other

remarkable

most

to

agricultural

thought to this question.
In
Wisconsin, North Dakota and Minnesota, the bankers are
co-operat¬
ing with the county agents and with the
Agricultural Colleges in bring¬
ing this matter to the attention of the
farmers, and making it possible
for them to raise,
more
cattle; and the excellent results obtained in
these three States,
through the co-operation of the bankers with

cur¬

among

done

the

the

the

American

the

been

has

the
the

taken

matter

education

that

within

porterhouse

agricultural

before

questions

fact

obtained

have

country

division

no

results

the

taken

ever

be

ever

results

of

with

interest, in

have

to

economic

they

enthusiasm.

bankers

seems

agricultural

important

work

110

than

delighted

effective

and

There

to

as

most

The

year.

education

than

more

intelligent

reform.

rency

the

past

more

ment

is

committee

better

railway system

said,

years

knowledge,

about

great

has

Development and Education.
Your

personal

bringing

the
that

them

on

,

v

M

The next gentleman

Gentlemen:

and

Ladies

[Great applause.]

Hill.

J.

mittees

of good citizenship—though some, lacking
inspiration and patriotism, may call it selfishness.
In
this spirit of good citizenship—of helping to bring out the best
there is from
the soil and the man, the banker is bringing out the
best
there is in himself,
and the more points at which he touches
human
life and interest, the more alive* and helpful he will be and

every

to

this

being

bushel

of

grain

to the

the successful

and

the

the

tural field of the

all the gold
It is worth
attention to, and I am glad that the
County, Missouri, has taken the stand

while

our

to

in Pettis

Agent

County

close

pay

I

want

here

show

to

are

kinds

several

and

Latterly

ship.

wards

117.]
Hill departed from
his
the sentence heginning 44 In our foreign trade, which though secondary is of
much importance to the country," etc., etc., the following:
We hear a great deal nowadays about the high rates on farm
loans, and our statesmen and many others are giving the mat¬
ter
attention.
Gentlemen, there is one simple remedy that
they seem to overlook.
The careful man who is investing1
money wants to avoid speculative security.
He wants to know
that his loan will be paid at its maturity.
If the farmer wijl
make his security and his payments
more regular and accu¬
rate, depend upon it the rate of interest will be low enough.

the first and only organized
to help in the work
that belongs to all—the reconstruction of American agriculture.
This movement, starting in a few localities, spread to State Associa¬
tions, until some thirty State Bankers' Associations and the great
American
Bankers'
Association stand committed to and enlisted in
this work for agriculture and education—the greatest service that one
body of men can render another, or to civilization.
v
The
committees on agriculture of the various State Associations as
organized in a general conference, have, in their annual, two-day sessions, compared notes, listened to splendid addresses and gained new

effort

of Mr/Hill's address on page

reading of his address Mr.
manuscript to
interpolate, preceding

"

their
direct

.

j

•

_

,

_

'

only

by George E. Vincent.

National Efficiency,

is

It

appears on page,

of this address

text

121 of this

Hydb, of Jamestown,

Mr.

F.

Mr.

Chairman,

W.

land

to

Dr.

give him a Chautauqua

Let

with

Now
and

words

to

you

Committees.

call upon

couple of very short

Kansas City.

Committees on

Development, by B. F.
Members
The

after
It

of

the

work

ductive
It

our

is

next

reclaiming

of

his State

the life of the

the

lands

in this country,
stories are best.,

the

or

nation—but




have made

whom we are

poor—of mak¬

all dependent—

social as well as its pro¬

in

.

effect's of which

may

several years—in

the

results

in

the

my

years

not be

appreciable to-morrow

locality* or your State or in
and generations that are to

^

.

spending and

necessary

,

partially wasting vast

the newer States are beginning
feel—for plant and soil food.

and

duty

the

and

FERTILIZERS.

IN

TRUTH

are

to make plain to . all,
plant foods that must

the certain,
be grown or

tremendous waste and injury through use
of the 44 patent medicine " method of so-called 44 complete fertilizers."
Our
farmers can
easily be told how not to buy what they don't
need. What
is better in other forms and not to pay a big price for
purchased,

and thus stop the

something

they can grow at a

controls soils

Chemistry
lost

to

the

food

nation

practical
in

every

counties
most

44

take

men

him "
the

versification
rest

to

of

plan

The

having a

competent

and

agent,"

to be followed.

important plans

show

is

DEMONSTRATION.

FARM

work:

44 soil doctor," or 44 farm demonstrator "
agricultural county in the nation (as we now have in most
in the South and in perhaps 100 elsewhere),
is one of the
44 county

These

It

billions of dollars are
and

promulgate such a soil survey

programme.

demonstration

Farm

profit.

and their action, and

through failure to

THIRD

*

work

year

we

farm upon its

side.
a

THE

States

therefore,

is,

unharmful.

definite,

Association to aid the farmer

lives and labor of those upon
up

*
he honestly

need.—that.all must finally

Bankers' Association:

the banker and

lands,

.so-called' 44 fertilizers,"

the

see

plant

all.
is

building

or

Harris.

old

ing rich the
of

Agricultural

^ndeavor to build up a peermanent agriculture
story to us and to many of you—but the old

his
an

the American

of

effort

speeches,

Mr. Harris, of

State Bankers' Association

to

,

possibilities stated with

as

older

the

Of

in

sums

•

failure of fair warning.

through

There

at the conference held in

Association

saluted the speaker

Illinois, to say a few
upon the subject of State Bankers' Associations'
Mr. Harris succeeded me as President of that

will

I

its feet and

going to have a

are

we

first

its

suggestion, gentle¬

handkerchiefs.]

waving of

a

."

SURVKT.

importance that every

bad must

or

well

as

State

Many

[The Convention then rose to

Is

the

involved
I would
be briefly

pointed out, and all the de¬
equal frankness;
and agriculture will not then be a
byword or party to
or immigrants' exploitation,
or loss of fortune and future,

good

citizens'

its

which may

practises,

proven

<

SECOND

adopt

us

*

man.

In

I suggest that we

The

or

is

salute.

Chapman :

Chairman

•

of Minnesota,

University

the

of

President

N. Y.:

a

and

agriculturally.

for

fitted

-

State prepare a soil surdetermining and widely publishing
of its own citizens—as well as those desiring to pur¬
mortgages, exactly what each section of Its domain is

benefit

the

for

•

.

as'follows:

paramount

ficiencies

testimonial of our expression of appre¬
Vincent, who is a Chautauquan, as well as
as

a

classification of

What

publication.]

ciation

of

or

vey,

chase

[The full

directions.

time-tried

to

with

policy
many

be

comprehending most of the collateral ideas
permanent agriculture and rural civilization,

as

up

policy, the field of work, to

"
long perspective, for the opportunities

FIRST-—SOIL

.

Education for

building

'

•'

«*

be found

their conference?

committees and

a

angle in

and

summarized

[Applause.]

University of Minnesota.

of the

Vincent,

be

should

needs

refer

empty honor,

considered.

service, none greater is to

is a safe and sane

these

for

Chiefly,
in

body is neither an

a

lightly to be

nor one

the opportunity for

,4 What

ask,

Ours

such

ranks.

down

and

*

head

to

upon

by

our

You

laid

an

coming from every

task,

easy

Measured

within

I am sure that I am

called

be
an

such

of brotherhood.

doctrine

To
nor

for their work.

organization of prominent, high-minded,,
section of the nation, largely at
own
expense,
and enthusiastically holding a Convention whose
benefit, is for 44 the other
fellow," certainly augurs well for
of

gathering

"unselfish citizens,

the

the impetus, tos make

of any class of business men,

part

and enthusiasm

The

speaking the,senti¬
ment of the members of this convention
when I express to
Mr.
Hill our deep appreciation
for the magnificent, address
which he has given us this morning.
[Applause.]
Now, ladies and gentlemen, I will introduce to you another
of the great men of the West, a man who in the West needs
no introduction to any audience, and I take It that he is known
to many of you here in "the East.
I present President George
E.

the

on

ideas

'

Chairman Chapman:

concerned with

than hundreds of other men should befor the banker and his State and National

remained

it

to give

organization

[Applause.]

side the banker is not more

being of the farmer,

well

nevertheless

that I promise you."

conservative, and

world—for its best re¬

material

a

rewards.

material

the

from

altogether

not

material

not

are

While

is

to respond and to

be

must

he

world

this

that

the

During

that

his calling, has been prompt
progressive in order to be

worthy

banker,

realize

the

call for service and

and- the response to the

call

lives
times
citizen¬

American life has seen a new light,
and the most significant sign of the

phase of

every

the

-

The

*

demagogue

the

by

increasing, purpose,

an

been

has

States, by James J. Hill.

Agriculture in the United
[We print the full text

and humorist and some there be
attempt the specious political appeal for the one and against

yet

with

.

•

subjects of attack

the past were the

the farmer of

other.

the

,,

control and develop lies equally

.

and

jest,

cheap

who

Missouri who comes
[Laughter and applause.]

us.

'

banker

The

of

I will not digress any more,
to thank the gentleman from

[Laughter.]
but

There

has.

both.

on

been

for the duty to properly

be,

to

soil's fertility in his keeping; the
credit.
legally established as a trustee and the farmer

of their money and

has

banker

The

ought

the one with

the people—the

all

of

business

the farmer's exclusive

more

no

exclusive business of the banker.
the assets of the nation;

trustees of

morally

are

custodian

other

farmers or farm
work.
Some men farm with their hands and some men farm
with
their heads and with their hands and with their feet,
and
there
is
another
class who farm
with their mouths.he

that

farming is

heritage

the

gives more money—more actual money—than
mines of the world produce in twenty-five years.

That

remain so.

of

banking the

is

Both

A single crop from the agricul¬
United States amounts to about $10,000,000,000.

he will

business

than

must staud amazed.

we

longer

The

carted to the market and sowed
that is raised and sold from the
of the great importance, not only
whole world, of the successful cul¬
preservation of the fertility of the

think

we

but

country

tivation

land,

is

when

and

farm,

land

the

of

tility
with

County

carrying

is

he

that

us

therefore is good business,

of conservation, and

matter

a

the

add to

to

the farm.

living on

above all, it is a matter

yet,

Agent from Missouri who
information to the farmer.
If the farm
work is to be improved through education, that
education must be carried to the man and show him what he
can
do, on his own lands with his own hands.
If we wait
until the rising generation is educated—and we do not know,
how we are going to do that—and in the meantime the fer¬
tells

is

it

While

it is not sim¬
these men or com¬
opportunities for better busi¬

earth—it is not earthy;

bushels or dollars for which

but

working,

better

of any of the many

working.

movement for the

a

are

and

ness

;

gentleman—the

the

thank

is

ply the matter of more

Mo.: Mr. Chairman and Ladies
Before commencing my remarks I want to

Gentlemen:

and

all

are

we

While it

and dependable

the most conspicuous

be

which

for

St. Paul,

Hill, of

J.

James

will

come

who will speak

to you not only from a long distance
to address you, but
he is missing the annual meeting of the
Board of Directors of his great railroad system which is being
held to-day in order to be here and deliver this address.
I have
the pleasure at this time in presenting to this audience one
of the greatest living American citizens, the Honorable James
this morning comes

to you

159

SECTION.

BANKING

live

the

right on

doctrine
of

of

crops,

stock,

„

gospel

of

better

farming

to the farmer

and

his own farm.

saving and
raising them

dairying, etc.

-

feeding the soil, rotation and di¬
fewer acres and devoting the

on
<

'

•

160

BANKERS'

CONVENTION.

fourth—education.

While

I

have

placed

education

fourth, yet, of all the things
tipned, and to be mentioned, the greatest of these is education.
The

facade

of

this

Commonwealth
of

order

As

and

have

The

great

to

the

As

.

liberty "

constructive
of

inscription,
the

as

of

" The

and

based

is

urge

efficiency,

we

In

the

the

poorest

the

and

villages.

schools—many

teachers

of

(largely

which

because

could

be

Moving

consoli¬

underpaid),

Country

sponsible

Life

for

Commission

ineffective

'

From
to

work

same

It

footing
to

in

the

of

of

of

ideals,

" largely

and

the

a

larger

children

the

few

who

with

yet

many,

of

with

those

in

town,

and

bring

service

not

who

in

are

Vocational
of

courses

agriculture

school

withholding

must

for

be

the

for

our

industries

in

the

parcel

of

the

country,

the

cities—with

prominent—must
and

facing

be

our

-

The

greatest

necessities

for

civilization

good

the

travels

Good

in

more

good

We

Commerce

begins

attendance and

land,

practical

as

aid,

and

and

wake

of

sion

far-reaching effect.
determine the character

good

and

worth

for

them

good road

a

be

cannot

this

growth1,

the

most

farseeiug

by-ways—they

of

the

in

its
I

to

and

widely

production—the

Co-operative
markable
be

must

published

results,

devoted

as

both

at

We

of

the

industrial

a

that

country

governmental

of

plenty

The

and

to

producer,

of

success

the

of

this

short

time

credit

in

of

the

and

the

Boys'

agencies which

in

as

reference

and

we

re¬

in

are

like

of

all

is

for

can

the

sum

ambitious

•

good

a

State,

help

of

all

my

solve

to

and

National

or

as

to

whole

programme,

delayed

points

clear

of

some

of

our

than

I

commis¬

or

but

not

and

we

to

I

you,

banker's

American

greatest

greatest

the

of

our

half

so

all

have

can

hope

State

citizen,

interest—that

our

spread

the

the

realizes

they

that

invest,

that

Identical,

are

the

w

into

of

say

growing

better

a

rural

-

farm

world,

and

to¬

that

the

improved

is

a

best

placee

methods

doubly

getting

and

in

plant

sure.

combination

and

be

must

richer soil.

a

is

of

two

grain

prices

and

for

his

.

good

citizenship,

field

that

the

agriculture

and

farm

assurance

fertility

the

him

that

stock.

the

of

crops

real

farmer

his

spells

banker

to

the

leaves

in

science

a

make

real

saving

cause

the

impossible

in
of

man.

the

and

and

by feeding them to live
this

lies

basis

who

man

resulting in larger

c&n

that

the

businesses

prepared

fact

the

young

greatest

the

returns

farmer,

prosperity

farmers, and

that

for

are

teach

in

Na¬

ahd

of waste.

sources

average

of

he

and

this

enthusiastic

public welfare will

has

not

ship of the people.

v

the

education,

section

a

earning capacity.

of

one

farmer

entrance of
it

legis¬

dignifyingg

development

long

some

help to demonstrate that

can

the
*

cause.

up.

Is—how

the

plain

better art,

stock

Work

and

better

a

make

a

the

the

support

Association.

to

better

heart

bring larger

crops

sympathy.

men,

scheme

and

is

will

which
will

credit

proper

especial

that

currency

nation.

upon

roads,

adds

point of view.

check

keeping of

leaving

to

We

much, study

commercial

and

ou

"

should

added

V.

the

the

incalculable

so

committeeship

made

help

banker,

opportunities

We

fundamental.

brought

the

serve

an

it

my

to

interest

the

is

the

have

work

•

have

working

must

day,

with

to

.

isn't

We

all

dependent

general

and

,

We

are

States

of

we

farmer,

broad

a

to

agricultural

a

Bankers'

have

throbbing

crops

statistics,

consumer,
*

as

the

nation, is
with the perfection of which

^should be provided

not

average

The

financing.

work,

ad¬

splendid

things

adoption.

general

live

all

be

cross

newspaper

renders

rejuvenated,

all

devotion

in

from

inseparable.
the

roads.

scarcity

several
and

farm

by

for

include

your

overdue

problems—to

The

distribution.

the subject.

to

activities

facilities,

how

least you

are

tional

'

affected

employed in

seventh

Much

much

are

sections

methods

of

strike you

may

civilization

Better

their
and

effective

urgent, i

as

know

While

affect

community;

living in.
and

many

doing much of this

theese

fairs

made

initiate local,

.

sixth-—marketing

Marketing and distribution

must

undertaken

American

and

control markets and prices,' values

and

that

value
to

into

gos¬

can

programme.

elevated

may

ambitious

schools

that

and

overestimated—for

isn't worth

be

effort

necessary

this

have

the

if

or

evidencee

be

trans¬

.

They

necessity

of

been

than

roads

one-day

suggestions

further

it

suggest

part

of the
people, the cost and
scarcely secondary to rail transportation in

are

county

can

papers—ever ready

aid,

you

values
as

State-wide,

further

All

education

are

direections

literacy—they

realizing

attention

and

„

life

the

.country

demonstrator

additional

draw

outlined,

carried

funds

the

numerous,

work

rail¬

large

encourage.

farm

to

As

and
work

.well

as

in

trades

the development and contentment

pleasure of living,
their

the

on

farm

are

great

to

institutes

and

must

lation

themselves

towatd

contemplate.

school

on

Tomato clubs

hurried

aud

news

and

You
lead

banks

used

.

roads

be

can

are

the

Nebraska,

.

roads.

in

and

and

raised

therein.

Girls'

big,

These

higher

system.

modern

<

takes

being

aid

platforms

life,

pictures

county

the

litera¬

depart¬

manufacturing,

and

to

edu¬

stimulus,

expressing
tending

State and Federal

school

of

roads.

can

of

public

support,

building of sample hard roads,
focuses attention
progressive legislation for
permanent roads.

period,

elementary

leadership,

and

and

cultural

by

fifth

two

portation—for
good

the

encouraged

present

farm

and

should

given, to the

shortest

the

portion

any

trained

in

space

farmers'

The

of aid

facilities

furnish

sections

tby

colleges,

Dakota,

winter seasons.

by

The

the

North

commercial,

their

farm

stereopticon

bank's interest

Corn

idealism.

terms

to

Chautauqua

and

public;

.

measure

more

the

vertising

to

'

all

and

many

re¬

drift
■'

•.

grades,

location,

the

education

the

effect that

number

irrespective
cation

of

schools

highest point of efficiency.

in

means

largest

lack

these

in

In

principles of citizenship and
equality, as well because we want
up rural life, we must
place the country boy and girl on the

build

schools

reported

farming,

town."

where

farming

country cross-roads,

in

are

,

The

various

preached.

poorest

dated—and

better

the

agricultural

Minnesota,

the

organizations

States

many

of

to

open

the

agencies.

notably

called

and

with

further the
propaganda.

pel

fitted

education

have

other

subjects

established

States,

bankers

here.
on

these

co-operation

other

several

the

safeguard
to

service

put the emphasis
all

we

the

people

citizenship.

whole,

country

system

the

through

and

road, and

out

grow

work

of

'

,

our' educational

needs

a

and

education

covering

and

ments,
In

Public Library bears

the

liberty."

" order

would

city's

requires

meetings
ture
men-

"

the

make

soon

sympathetic

friend¬

'

•

.

In

,

many

tion,
estate

Not

be

machinery

required

for

the

be

and

provided

would

heavy

least

probably best through

granted

transactions,

mortgages could

be

States,

might

mortgage

Such

Such

certain

or

charters

organizations

whereby
furnish

investment

important

menace

landlordism,"

of

to

Beyond
the

I

all

be

to

9

do

a

buy

farming,

•

and

system

farm

a

its

of

any

be

reorganized

much

that

the

short

for

all

a

the

years.

The
cial

The
the

We

are

a

system

be

may

of

locations,

the

modernized
and

and

in

farm

and

particularly
45

day

'

National and

done

country

new

half

ments—and

and

2,500,
whole

them
will

some

town

12,000

aggregate

is

as

of

country

the

with

the

always

How

can

we

big

a

farm

and

State

The

banks

can

financing.

lic,

and

is and

compelled

noticeable than that

to the larger cities!
one-third

some

lost

of

town,

of

Beven

of

the

population

in

towns

the

rural

that

ever

farmer,
and

our

in

rural

the

county

chief

States

the

last

before

beyond

the

people

for

reason

and

Ameri¬

an

to

furnish

though

the

he

capital

and

acquiesce

in

re¬

many

ten

is

the

dissemination

of

Agricultural

Cpmmittees

State organizations,

with

the

Each

banker assumes

is

of

this

upon

American

precaution
the

general

interest

the

in

the

be

efforts

concerned

to

aid

a

life,

well

as

with

must

in¬

as

an

in¬

mother's welfare.

and

work

the

results

through the county,
of

other

taken.

responsibility to the pub¬

least

remuneration

banking legislation

is

and

has

only

ex¬

*k

from

his

indivdual

own

and

banker,

those

of

so are the

his

community.

bankers of the country in the

.

"

•

.

The

its

country

welfare.

COMMITTEE

-Mr.

day,

ON

AGRICULTURAL

DEVELOPMENT

and

AND

George M.
revision

put

this

these

various

Reynolds, of Chicago, 111.:

of

the

constitution, which

Committee

Revision

on

was

out

of

effected

yester¬

business, and be¬

lieving that the work which it has
done, which has progressed
so
satisfactorily up to this point, should be
continued, I offer
the following resolution :

bers
shall

programmes

personal

every

holds the local banker in high esteem—With
interest not to

.

Resolved,
these ideas

after

American banker is easily the
peer
of his fellows In
ability,
integrity, and high moral purpose, and it is high time he stood
up for
himself, as he now stands and has always stood for his

population

a

pending

totally 'unjustified
been

greatest

for

of

merits

banker*—even
has

by the general confidence In the banker.
mgn

separated

The

should

the

may

only

the

on

commer¬

section.

mind

commenting

EDUCATION-—CONTINUED.

and

alone, with

our

farming

have in

as

the

on

unthinkable

lack

very

plained

be

me

but

reflection
and

American

The

could

■




light

proper

compensation,

renders it the largest service
confidence in .like measure.

its

As

more

attained?

The ..Bankers'

his

.

legislation,

moral

ment

in

is

no

misunderstand

thinkable

dissemination.
aid

in

unfair it

.

go

factor

the

as

remember

business, and

group,

or

'

currency

8,000,000 inhabitants.

well

rest

ajnd

be

banker

little

aggregate.

counties,

incorporated

over

nation,

dustry

to

the

with

serve,

sacrifices.

towns,

population

the

Mississippi Valley,

country

him

how

Congress and President to say in
effect, for Instance—aud with no
justification other than political
expediency—that the average Ameri¬
can
banker isn't
morally fit, or as fit as the inexperienced
political
appointee, to have a minority voice in the conduct of a
vast banking
system—even
though the President himself makes all the
appoint¬

-

stockholders,
without duplication,.

3,700 country towns in

in

put

.

small

welfare

clude

in

illustration,

some

Union

life

under

for

leases

nation's

larger service,

Three out of every four

fair

be

live and grow,

falling off in farm population is
hardly
of the country town,

of

the

time

Act, must

The

a

be

long time,

growing average of a bank td each
per agricultural count}'—a
ratio
equaling that
large percentage of farmer

banks

nation-^-with

to

are

eighth

As

would

on

mortgages won't go far.

present

that

Banking

service, in

proper

farm

our

do

seem

farms—7%

seats, and

will

farming.

will

can

Don't

National

if these banks

that

to

would

250

farm

which

sums

work

help to make clearer

.

the

months

sure

utilized

It

this

country,
and

feel

real

agriculture.

liberalized
in

paper

such

to

strictly "to

amortizing

enormous

permanent

feature

tenant

time

legisla¬

terms.

the

in

opportunity thus given to the tenant
"absentee

long

favorable

on

help

limited

State

«■.

and
to

be

[The

That

appointed

known

as

be

made

by

the

resolution

Chairman

Committee

the

Education

be

the

a

on

Agricultural

:

Is

of

to

the

Financial

consist

of

Association,

Develop¬

seven

mem¬

and

which'

Commission.

seconded

was

Chapman

Agricultural

commission,

President

there

by various
any

delegates.]'.?..

debate

over

this

resolu-

BANKING

If

tion ?
will
I

F.

Mr.

General

It is unanimously adopted.

to

D.

F. D. Coburn,

Mr.

upon

Board

State

of the adoption of the resolution

opposed, no.

Secretary of the Kansas
of Agriculture, to address us.
CobiTrn, Secretary Kansas State Board of Agricul¬

call

now

favor

in

all

not,
aye;

say

"

ture :

of

than

her

share

of

kind

that

more

not

and

a

rible

from

example

of

been

have

advancement.

protracted

that

and

generally

however

Kansas,

with much

month ago played havoc

a

will

tunity

and pasturage

corn

tant

from

cried

been

the

and

outsiders

impressions
is

Kansas

is

or

is

acquired

have

to

seem

bankruptcy,

nearing

about to

need

of

which flourish there.

all the different crops
that Kansas is

hend

dependent

not

They do not compre¬

That

have

been

him,

and

would

her crops in

failure of all

the

that

lose

the

out

by

but
one

on

calamity.

means

no

two

or

in

crops

any

She is rich enough
and scarcely

year

shortage.

has

raised

more

after

farm

farm

bushels

sixty

motor

the acre,

to

and

pie and

cake.

counties
who

Millions,

each

than

more

such

other

in

as

States,

schools, churches,

Kansans in

by

Christian

en's

The

the best
worth

they

at

heavy
third

do well

Kansas

current

than

first

million

a

that millers

crop

cutting,

City prices about $72,000,000.
bf alfalfa

acres

and

second,

fair

a

harvested,

was

in

product,

which

in

The oats

tors.

good value.
Kansas'
ment's
than

greatly
in

are

the

swell

Kansas

returns

from

pre-eminently

so

in

excels

the

other State.

any

sorghums

than

forage

and

weather,

is

continue

Convention

grown

the

of

greater area

elsewhere;

these

never-failing

practically

mark

time

dry

in

almost

as'

Chairman
,

the

islative

unimportant

work

much

upon

made grain has been converted into

is,

that

Others

to

and

000,000,
"hard

National

a

rather

times"

capita wealth

low

the

a

whole

raise so

in




of

so

of

a

a

about

Kansas

Kansas

to solicitous friends

nest-egg
fear,

show

stored
but

is

$500

Even though

in

in

'v:
If

you:

[Applause.]

informed

that lunch¬

the

across

in

great serv¬

a

at large.

am

can

States,

various

your

you

street,

and

2.30 o'clock.
express

to the gentlemen

[Applause.]

join.

all

SESSION.

have

the

early
has

which

IL

tions

for

the

on

next

just

on,

rapidly.

Sands,

pass

I

a

Convention,
meeting,

will

are

we

I take

and

have, first

the

in

the

that

his

be

does

report

regard

I

in

they

to

state

with

at

report at

the next thing in

order,

the
to

me

that while

the

of

work

considerable

legislation

special

Leg¬

that

say

in

be

Federal

requested

and

done

to

seem

the

beg

connection
have

various
no

not

of

Swinney,

Committee,

largely
with

Chairman.

Ilollister

here

for

need

to

the

We

Hollistef,

Mr.

left

and

been

there

Order.

to

Committee,. Mr.

report

of

Lading Committee.

Clay

:

connection

now

Hold

Kansans

than

outside

Washington,

this

time.

We

being the invita¬

Convention.

moment,

overlooked

gentlemen.

Insurance

,

I

am

Committee,

passing through
Mr.

Oliver

J.

Chairman.

Commissioner the

deposits
away

with

excess

of

$213,-

of

against

which

speaking acquaintance.

$1,700

corn

demon¬

a

made approprlaT,
'

afternoon

our

you

of

Currency Commission,

will

dozen exceptions.

reassurance

much

annual aver¬

ending with the present year

more

little

good-sized

country.,

normal

no

to

according to the Bank

has scarcely

Kansan

per

the

far

banks

many

age

for

as

be noted that

may

State

decade

State, with half

worry

themselves, and just
it

the

of any other
seem

silage, and is

Kansas could have failed

of productions in

than

com

this year, and still show a larger

corn

Agriculture.

on

have

Ilall

Gentlemen

Reynolds:

of

work

truth

240

banker

a

hearty thanks of this Convention—

for

set

Committee,

Chairman

their

Moreover, much of the

come

Bills

We

room.

the

of

We have

adjourned until half-past 2 o'clock.

:

calling

of

Secretary

The

that has not

The

I

know you will

I

stands

wish

I

agricultural

our

performing

until

recess

the

us

hour

the

though there had been ho interruption, and afford a vast volume

ear

a

he

2.30.

the

of feed

an

Gentlemen,

Reynolds

liberty

report

according to the Govern¬

the rains

after

now

an

item.

when

there is

with

in
be

will

AFTERNOON

•

a

their growthWhen

for live-stock.

counties

Horticultural

which expression

Chairman

millions of

"

Besides, she has

which

crops,

remarkable

a

year

Europe.

of

Committee

this work

take

also

I

permits of the appropriation by

doing so, however, I wish to

make

age

will

Recess until

competi¬

all

'

a

of

in

of them

thought

you

like

a

figures already referred to, is about .50 per cent, greater

grain

as

in

have addressed

The

extra

gave

last

respect

one

our

this

would

of that grand

:

Chapman:

ready

now

Before
who

wonderful

this

the stack or bin and- represent

winter wheat crop this year,

that

existing

in

local

I

her alfalfa seed crop at $6 to $10

markets, and

will

Hill

•

about

cutting of the richest hay known, worth $15 to $16 a ton

bushel

his

of

leave

bringing

the Convention

she

instances

many

is

eon

From

an

in

Chairman

to

for quality, is

say,

for

and 92 of
to

you

kindergarten,

the

woefully behind the times.

work.

this

en¬

tell

could talk

speech

ice to your community and to the nation

building.

road

would

ground; eighty-six and a half million bushels,

ever

the nearest

of

wheat

winter

a

her more

in

pessimists,

the

For example, if Uncle Sam's figures are correct,

year.

harvested

per

especially

and ruminate on a few facts relating to Kansas the pres¬

pause
ent

hospitals and good

associations,

and

public,

and

to

conditions existing in this

the

in Texas which

I -want

we

oppor¬

ILaughter.]

now.

J.

I

in

of the

those

it,

particular localities,

your

men's and young wom¬

young

for

assist

geries, joints and other like gateways to perdition, are conserved

aid

like

did if

Conference

way

with

read

chairman

expert,

Now,

that

most impor¬

their

county of at least $1,000 for the employment of

tions

given over to the maintenance of their innumerable saloons, dog¬

the

Vincent's.

Dr.

I

James

Mr.

masterly

are

we

law

a

regret

only

would

being

school

Minneapolis

to

lend

of

instead, of

Texas, and in every

the

stration

annually

are

is

in

We have

have their young people in college

nine-tenths of the homes will

winter."

is doubtful if

It

here

have

I

before

appreciation

compared

as

I

can

speech

years

Paul.

the
a

Texas.

the. high

my

St.

from

development

and

and hundreds have nothing to eat except chicken

cars,

beefsteak

this

of wheat

yielded only twenty-eight to thirty-five bushels

Many families are unable to go to town at all except

per acre.

and

than

five

to

going

man

I

hungry audience at this time of the day.

children,

before

country
every

,

Convention:

doing, but it would require the eloquence

a

splendid

a

was

brought out in

" Not a farmer in the State

the

permitted

time

are

we

my

man

address

'

writers given to statistics says:

If

1

feel

Suggestive of the present general situation in Kansas, one of
our

to.

express

single year might spell

a

old

inconvenience,

to

Joe Hirsch.

Mr.

bankers

that

married

be

want

in

work

of

products,

any one or two

on

right thinking is

that I regard it as one of the

now

say

Vincent to hold

a

of
in

line

unfavorable for

80,000 square miles, no season is uniformly

her

to

to

lines

Ah !

They do not realize that with the wide range of productions on

or

this

along

all about what

that

receiver.

a

cleanly,

permit me to tell you of the good work that

not

couragement

to the other, and back,

end of the,country

one

along

The^next speaker will be the Chairman

Members

Chairman,

doing

are

of

in which the unhappily

Hirsch, of Corpus Christi, Texas:

Joe

Mr.

time

optimism

[Applause.]

greatly lessened the usual water supply—incidents that have

and

commonwealth

a

the' Texas Bankers' Association,
Mr.

precipitation and altitudinous temperatures that

The deferred

the exalted

have homes ; where

may

Chairman Chapman:
of

/

,

right believing is the fashion and right doing is the

commonplace.

by Providence, is an exception.

ceased

wilderness

the

wheresoever

the habit,

the
All

any

jury

no

If, as of others, this is true of Kan¬

gleams back of it all

from

situated

favored

generously

in ten years.

criminal case

try a

which

in

lifetime and no State to which seasons of disap¬

no

helpful, worthy ways ; a commonwealth

unusually hot

dry

sixty-five without

dozens

and

prison,

self-reliant, hopeful, earnest men and women, who have

wrought

regions are subject to vagaries of climate, and there is no pre¬
tense

to

there still

sturdy,

There is no disposition

distressingly so; indeed it was one of
periods the State has ever known.

fact

in

dry,

most

There is

sas,

the square deal, and does not

during the past summer the weather was

weeks

called

pointment do not come.

marvelous

of

know of to deny that for several

part of anyone that I

the

and

for justice,

only

truth, this year or any other.

the

fear
on

decades

State's

State's

the

in

been

■

asks

Kansas

convicts

-

inebriates, thirty-eight without any poorhouses,

fifty-three without any prisoners in jail,

evidently many who pretend to
show of authority have not kept pace with her

Pennsylvania

twenty years has harvested wheat

in

counties out of a total of 105
insane, fifty-four without any feeble-minded, ninety- '

six without any

*

an

eighty-seven

that has

without any

the

has

that

$832,000,000, and grown corn having a value of $1,082,-

000,000 ;

has

State

a

that of New York,

by

only

Massachusetts; that

worth

but

prosperity,

with a

speak

the

by

false

proven

and

progress

for every

surpassed

Conceptions acquired long ago

coyotes and Comanches.

of

out

worth of live stock on
family; that has property with an assessed

valuation

victim

ruffians on the east, and on

border

and

forays

bloody

west of

taken

of $600 in the banks and $750

the farms

and

do

smiling for the next round.

up

easily

not

is

They will

home.

trouble nearer

borrow

Kansas come

heart

average

when Kansas was the strug¬

gling, undeveloped frontier, in process of settlement, the

and

up,

watch

to

The

If any are feeling sorry for her I beg them

Prosperity.

cheer

well

is strange, except it is from

the days

in

States that have experi¬

numerous

conditions

of habit formed

force

during the past summer,

confidence, builds up business,

creates

among

unusual

similar

enced

of publicity

Why she should be singled out as the hor¬

helps anybody.

or

Kansas has been the subject

Gentlemen :

and

Chairman

Mr.

161

SECTION.

the

Report of Committee

the

The State's
the

the year may fall

on

Fidelty Bonds and Burglary

Insurance.

aver¬

average

far be-,

yield,-Kansas is still headquarters-for

Mr.

o.

J.

Sands,

of

Virginia:

Gentlemen,

your

Committee

Fidelity Bonds and Burglary Insurance, appointed early this
year, held its first meeting in May."

on

[The report was then read.

It is given on page 139.]

162

BANKERS'

CONVENTION.

f.

*

*

,

Mr.
deal

J.

A.

McCord:

of interest.

American
and

I

Bankers'

therefore

I

think

filed,

mittee
that

that

a

the

of

one

resolution,;

work

of

report

in

the

with

best

great

a

things

follows:

as

Section

3,

be made

outlined

in

to

be

for

continued

Article

the

cover

the

VI

••

cities.

of

the

be

he

approved

Standing

a

of

Chairman Reynolds

and
I

can

read

which has been
properly seconded——

Mr.
I

•

Sol.

y

.

like

to

say a word on

ever

to

now

ap-

Committee to the Executive Council, which will meet this after¬
I

tion

do not

think it is

committees than

the

Association

is

Mr.

advisable

recommend

to

any

-I

.

the

but I believe that

Executive Council the

have

a

tinued

from

and

soon

is,

as

then

Mr.

:

to

year
as

the

Chairman, this committee ought to be
It

year.

is

a

Executive Committee

important

deal

can

is

the

enterprise.

our

invitation

change and put another

and

we

the

I

now

We will

:

now

vote

that

the question of

upon

[The Secretary counts the votes.]

We

will

Ayes 110;

:

Reynolds:
vote

now

The

the

the

to

Chairman:

to

„

original

motion

.carried.

amended.

as

look

felt

Re¬

at

to

carried.

Report of the Law Committee.
will

II.-

hear

now

the

of the Law

report

by

this

committee, I submit the report which

activities 'of-the
will

be

but
the

I

during

printed, I will not read it

will

refer

to

of

one

its

part of this Convention.

new

Constitution, it is

occasion

as

and

year

and

the

of

ment

arise,

may

general

their approval.

such

.

the

called

which

the

duty of the

to recommend

Association

to

the

drafts. of

Law

the

for

make

And upon such dual
approval to urge

porations,
Act.

that

the

Association, approve

the

law

technically

This

Act,

transfer

or

known

after

the

as

careful

of

ana,

draft

Uniform

consideration,

of

of

the

stock

Stock

Ohio,

Michigan.

The

in

Act.

Rhode
gives

Island,

in

there
and

asks

with -the

Uniform
Mr.

'full negotiability

approval.

your

report

I

that

move

Mr.
the

I

second

Are there any

not,

all

Contrary?

those in

None.

:

the
You

have

Mr.

•

will

to

In

certificates

of

to

measure

Chairman,

Convention

It

is

the

I

in

is

the

motion

which

was

by

of

the

[General

Secretary

NEXT

from

Atlanta, Richmond, Atlantic
inviting the 1914 Convention.]
The

remainder

they
it

have

has

been




of

not

the

been

the

on

Mr.
As

sec¬

for

in

-

City,

and

invitations

joined

policy

not

Atlanta
has

We

of

in

the

Lake

from

banks

Association

various
of

not

the
to

men

and

he

that

he

rise

when

ago,

to

in

it

of

the

I

am

to

can

surpass

take'

the

cake."

out

me

of

that

I

was

him

When

Colonel

Lowry

-

•

think.
and

sure,

re¬

days.

.

I

of

I

took
say,

some

that

the

on

its purity.

Convention,

thing

Atlanta.

recollections

may

writing

the

joint

a

in

riding around with
for

sec¬

more

was

be a rider

pleasant

see

I

had

we

Association

fortune tp
very

.

that

in

yon

I

.

had
is

a

that

hospitality;

(Laughter

and

ap¬

wish

to

.

-

.

I

all

the attractions of the

to recount

America.

It

to

the

at

is

care

conceded
for

the-Convention

its

first
hotel

conventions

many

time.

same

that

of

•.

the hospitality of Atlanta,

disparage

is

that

for it

held

was

was

there

in

Jersey believe that Atlantic City
should, licld your Convention next year,

assure

of the

possible.

City

cities,

cities,
receive

will

we

do

-

\

-

k,;

New

Orleans,

I

very

of

charms,

same

everything in

,,,

of Louisiana':

many

always

are
as

that

you

success.

important suburb

an

am

glad

to

have

We want

splendid place to

a

P.

E.

lanta.

see

say

was

not

Convention.
that

you

>

I

me

as

bankers

many

bankers to

see

his city,

aware

that

Salt

Lake

could

not

be most

Atlanta is in

:

.

-

word in behalf of At¬

and when I

Salt

City
say

Lake

is

so

City
near

made
was
a

anything against
go

to

the promise

also

suburb

it,

seeking
of

San

I

will

but

Salt Lake City

I believe

acceptable to the Pacific Coast people.
,

the center of the Southeast section of

try and.it is fast growing to be
South.

a

the

and Atlanta
„

to say

to

come

the industrial de¬

anything I could say would improve

that if you do not decide to

Atlanta would

the

to

Bowles, of San Francisco, Cal.:

acquaintance with
I

by

anxious

it from.

I do not know that

him

and

to Atlanta next year.

go

Mr. J. A. McCord
are

by the

Atlanta

disparagement

velopment that is going on all through the South,
is

the

communications
Salt

years

,

one

sufficient

are
one

the: .Convention

see

Francisco
read

to

Jersey Bankers' Association,

me

all

Sol Wexler,

aye.

CONVENTION

then

very

rooms.

Convention.

any

Association,

'

they

New

their behalf I

reflection

this

fixing of the place for hold¬

Farnsworth

2,000

came,

the

event

that the Association will,

you,

remained

I

My friend Mr. Ottley asks

FOR

for

the.

Colonel

down

he

recollections,. I

' ''

powfcr to make it a

our

your

CHOSEN

in

pledged

and

care

good

country

the place where you

Mr.

saying

Council,

Convention.

attended

privilege to attend

and

the

connec¬

approve

extended

1894, but the bankers of New

to

RICHMOND

would

the

invitation that has been sent in from Atlantic City.

size of this

the

Carried.

The next, order of business is
the

and

the

invited

was

some

v.

unnecessary

South

signify

ing the next convention.

have

Bankers'

,

the

of

that

invitation.

and

Parker., of New Jersey :

behalf

him

but

Association

men

after

hospitals,

watering place

my

and

remarks?
favor

the

Some

.

I

in

and

liked

[Laughter,]

that

Atlanta,

pleasure

think—but

city

no

for your

as

In

the

Colonel;

accommodations
pas¬

motion.

heard

she

undertaker,
grave.

himself,

indistinct

had

plause.)

Negotiability Act.

Wexler:

Chairman Reynolds
onded..

and

is

in

and

As¬

but

I

time—I

good

Executive

and

that

confirm

for

my

these dines:

"Dear

Council—and it having on October
5th at its meet¬
ing unanimously approved the
same, submits it now to this

If

I

]iospital,

home

got

endorse

Transfer

Pennsylvania

proposed

tion

not

incor¬

stock, and will make the law governing stock
transfers uniform
in the various States.
A copy of the Act is annexed
to this re¬
port of the committee
submitting the

sociation,

and

hoped

up

Executive

to

Georgia

was

have

he

brightened

field

Bankers*

where

Act

endorsed

was

Florida

and

to

along

for

It has been enacted and It is in force
to-day in Louisi¬
in the State of Maryland; it has been
enacted in Massa¬

In

that

she

Colonel Lowry, who owned a tally-ho,
I

you

opportunity

Atlanta, and in doing so I confess to

,

chusetts,

the

the

1914

a

»

the

shares

ride.

a

time

no

before

the

invited

[laughter],

the enact¬

August,' 1909, by the Commissioners of Uniform State
Laws
recommended to the
Legislatures of the various States, for
sage.

but

her

assure

the

properly

the

of

So

home

to console her.

this is

have

were

riding

was

was

rites

in

for

taken

approved

uniform

-

last

of

hotel

our

occasion

I

Council

statutes

State

recommend
to

The

taken

who

first

care

have

the

wagon.

member that

on

Committee,

Executive

proposed

with

have

well

meeting

consideration.

that time it

do

Con¬

that

be

Dismukes, of Jacksonville, Fla.: I

the

only

woman

heart,

to

the

at

Atlanta, and I want to get back to

By Section 16 of Article 5 of the

made

would

my

.

report

for action

of

I

Secretary to state the specifications that

could

with

T.

selfish

meeting
At

drafts through the State organization
Legislature and force through the State
legisla¬
tion through the State
Committee and through Federal
legis¬
lation' through the Federal
Legislative Committee of national
legislation.
In pursuance of this
duty, your committee would

and

John

water

to do so,

upon

calls

the

covers

As-that

year.

unless

articles

and

charming places

of the

her,

did

Farnsworth

cities that

President

[The report of the Law Committee is
given on page 131.]
Mr. Oiir : Gentlemen, in the absence of
Mr. Pierre Jay, chair¬
of

in

to

and

come

ground

we

Atlanta

less

or

Mr.

Orr, of St. Louis.

man

that

.

seldom that

cities

very

minister,

want

were

renew

to

the

I

she

May

to

ond the invitation

Committee

Convention

very

other

all

Thereupon

we

to

Colonel

over

other

Mr.

We

the

floor,

closing, I will say that I hope, without

honor

,

I.

cities

first, for her hospitality, and, second', for

the

come

the

really

to her

Now,

required

sure

In

Council.

Motion

if

expressed himself to the bankers and to the hotel

Gentlemen, the amendment is

upon

ferring this matter

•

35.

noes

of

are

offended

than

spoken

decided

Afterwards

The Secretary

the

Very much to his surprise, the widow

not

kindly complied, and

amendment.

Chairman

be

you

the

husband.

hastened

asked the General

would

committee; that committee ought to be continued.

Chairman Reynolds

additional

his, he said: "Sister,

her.

known,

her

her

and

is

he

man

of

full

Convention

engagement

better

committee;

in, and that destroys the thread of the work that has been
done by the previous committee.
It loses the thread of the work

lose

what

and

had

Atlanta

the

in

offended

into it, as the rule now

very

get one man trained

you

of

carriage, and he endeavored

that he had

great

con¬

of

number

a

my claim."

cry,

undertaker

McCord

to

a

say

not

no,

are

cemetery

other

to

had

said
•

to

any

began

motion.

the

presenting

marks?

Mr.

in

reminded of the story

enough

at

place

privileges

doubt

no

am

taking her hand

of

contin¬

there

and,

he

that

second

of

hospitality of Atlanta for the 1914

Convention, and they

the widow in

make

Moved and seconded—are there any re¬

:

I

the

the

with

and

Associa¬

more

this work.

on

Bradford Rhodes

Chairman Reynolds

have

to

absolutely necessary,

uation of the Committee

While

performed

;

pointed by the Executive Council; and I think the proper course
to pursue would be to leave the matter of the
continuation of the

noon.

list

a

communications

claimed

of, yet I

care

was

banks

Convention.]

Ottley, of Atlanta, Ga.: It is

extend

the

where

.

This committee

associated

'

unfortunate

this.

these

John K.

invited

Wexler, of Louisiana:

would

the

!

Secretary then read

it.

have

so

out."

have heard the motion,

you

from

come

.

I second the motion.

:

Gentlemen,

:

they

invited the

vention.

Bradford Rhodes, of New York

unless

■

had

Mr.

Committee

the

carried

k

*.*"

desires

Com¬

Constitution,

expenses

report may

that

-

I

as

a"

•*

[The General

'«

<

*

invitations

the

'V

•

Committee

Insurance

Committee

the

ample provision
the

is

•

provided

as

that

so

and

it

listened

I

1

'

Resolved, That the
and

President,

Association, and for each State Association,

offer

t

!

.'«

Mr.

one

We want you gentlemen

of the financial
who have

never

our

coun¬

centers

been

of

there

163

SECTION.

BANKING

Henry's home? I think it is the logical place to hold the next
Convention after meeting here in this city. So let us once
underwrite it and say that you will never forget it
again cry, On to Richmond!
Mr. Thomas McKenzie, of Virginia :
Chairman Reynolds: Gentlemen, are you ready to vote on
I am forced to ask that Richmond be substituted in place of
this question?
:
Atlanta.
Thirteen years ago tiiis Association visited Richmond,
Mr. Edens : I move that Richmond .be selected,
and I believe that every one who was there at that time will
[The motion was seconded.]
testify that they were properly and royally entertained.
We ' «•
Mr. DismuKes : I move as an amendment that we choose
have in Richmond one of the finest convention hotels in this counAtlanta.
try, the Jefferson, and there are three new hotels that have just
[The amendment was seconded.]
been finished, and if they are not sufficient we will build another
Chairman Reynolds: The question is first on the amendone„
Richmond is only three hours from Washington, four from
ment, that Atlanta be selected. All in favor of the selection
Baltimore, six from Philadelphia, eight from New York, eighteen
of Atlanta will say aye; opposed, no. The motion is lost. The
hours from Pittsburgh, eighteen hours from Chicago, and fourquestion is now on the original motion, that Richmond be seteen hours from Cincinnati.
It is easy of access, and we want
lected. All in favor of that motion will say aye; opposed, no.
you to come and get some of the old Virginia ham and some of
The motion is carried, and the next convention will be held in
our celebrated
Virginia mint julep.
Until I came to Boston 1
the City of Richmond.
[Applause.]
had always supposed that there were two times, Eastern and
General Secretary Farnsworth : As a matter of clearing
Central, east of the Mississippi. River, but after T got here I
the desk, I want to report in invitations from San Francisco
found that the bars close at 11 o'clock.
NOw, in Richmond we
and from Seattle for the 1915 convention.
\
and

to.come

Central

on

run

South

has

and, if you will come to Atlanta, we

will

wonderful development

what

see

is making;

and

made

and

time,

get a drink at any old time.

can

you

last, ten

years.

like

would

I

Our bank deposits have nearly doubled in the

years.

the

have

to

privilege

of

floor extended

the

to:

Dabney to speak for the Clearing House of Richmond

Mr.
"

Mr.

William

There is

of

any

meeting

but

with

Richmond

thirteen

years

We

Reynolds:

will

ago

P.

Dabney,

President

behalf

on

'

Richmond,

of

Va.personal

and

Observation

Gentlemen:

and

Mr.

from

hear

to

Jhe

of

I

'

W.

Mr.

cheer

good

recollections of the

glad

he

Dabney.
Mr.

and

hospitality

pleasant

very

I desire to second its selection.

Michigan delegation
Chairman

receive

would

we

them,

in

Mich.:

of Detroit,

Livingstone,

doubt whatever that in all of the cities that have

mentioned

been
in

no

"

*

*

UNDER NEW CONSTITUTION.
....

'/

A

Chairman Reynolds : The next order on our program is
Unfinished Business.
Mr. Abraham Lewis, of Hawaii:
Mr. Chairman and Gentlemen: If you remember, yesterday
afternoon the 'territory of Hawaii desired to have its status determined under the new constitution.
A motion was made at
that time which partially cleared the situation.
I had only
yesterday received a copy of the revised Constitution and there
was drie point in it-which I had not noticed.
Now, upon consulfation with your President and the General Secretary and
with Mr. Wexler of the committee that revised the Constitution,
I am prepared to offer this amendment:
That' Article IV .of the By-Laws of this Association be
amended by adding thereto after Group No. 4 :. "Group No. 5
shall be composed of the Territories of Hawaii and Alaska."

what has taken place in Richmond in the

We want you to see
last dozen

ST ATUS OF HAWAII

?*

[Laughter.]

■

the

This amendment does not in any way interfere with any
State or with any other group.. It simply asks for the defining
that I have the honor to come from, that what they want are
the status of Hawaii, and we are asking this amendment
facts.
Now I am going to give you a few facts, relying on
under the machinery of the Constitution, which states that the*
your intelligence to see whether ot not it would conserve thef
.Convention when assembled may pass the necessary By-Laws deinterests of this Association to accept of our hospitality/i Now,
fining the groups.
I am commissioned by the Governor and by the city authorities
Mr. Joseph Wayne, of Pennsylvania :
and by the banks to ask you to coine to Richmond, and when
>
Can amendments to the Constitution be taken up in this

experience has impressed m© in all my relations with the
of

ers

this

country,

particularly

more

those in

with

bank-

the

city

-

manner?
Chairman TIey'nolds : This is an amendment to the By-Laws,
to hoard the train to come
ahd it can be taken.up.
on the
platform, who authorized me to say that all of the pea' ' Mr. Sol \Nex.ler : In seconding the motion, I would explain
pie in Richmond wanted the bankers to come there. / [Ap"bat the new Constitution provides for it, and it is entirely in
plause.]
,
*
order to constitute .a new and additional group. I would sugI submit that accessibility to the larger percentage of your* *
&est, however, that the Philippine Islands he added, for the.
membership is a factor to be considered in coming to your Conreason that aithough they have not thus far sent a represent a-•
vention city.
If you pass from the Northeast you come through
tive here, they may do so at any time.
Boston and New York, and you can take in Atlantic City, and
Mr. Lewis : I "will be very glad to have the •Philippine
come on to Baltimore pnd Washington.
If you come from the
Islands included in my amendment.
West
you
can
take' in Cincinnati, "Louisville, Baltimore and
Mr. J. T. .Dismukes, of Florida: I would inquire if the introsaid that we were to extend this invitation, of

the newspapers

it, and as I was abotit'
here there was a throng of people' ■

course', there was some publicity given to

^

,

Philadelphia,
mond

This is

if

too,

by way of
the

third
we

first

time

city

and

investigated

we

we

Auction of those territories would entitle them to'membership
Council?
•
"
Chairman Reynolds : Yes, sir; to rotating membership on
„

.

the Executive Council.
Mr. DIsmBkes : If they do not aggregate 100 mem' bers, h°w can
follow , the mandate of the Constitution and
**•"' allow a membership on the Executive Council for less than

visited our

hotel accommodations, and he said
hotel accommodation at that time.'

built three

have

-

on the Executive

have invited this Convention.

Colonel Farnsworth

you,

our

sufficient

hadn't

Since then

invited

we

.

"

1

.

time that

The

that

wish.-and then you can go to Rich-

you

Old Point.

new

hotels.

'

.

banks? Tliey may come into membership in the Associa-.
Hon, but not in the Executive Council.
extended to this Convention.
[Applause.]
- '
V'
I would move, as a substitute, that this matter lie over
I am not competing with Atlanta
or with Salt Lake City;
until the spring, meeting of the Executive Council.
I am simply here conveying to you a message from our people
' Mr. Edens: I move that the matter be referred to the next
asking yon to come to Richmond, with absolute faith and conmeeting of the Executive Council, to determine whether,or not
fidence that it is the best place for you to meet in next year,
the banks in these territories that have been mentioned can
Mr! W. G. Edens,'of Illinois:
"
' finality under., the ^Constitution and come,in.
This .discussion'reminds me of the old story of the banker
[The motion made by Mr. Edens was seconded.]
who got a black-hand letter threatening that if he did not
Mr. . Wexler : I would say that the Constitution would not
deposit $20,000 at a certain" spot where the blhck-handers could
permit of Hawaii arid Alaska coming in with less than 100 mem-;
get it they would kidnap his wife, and he replied, saying that
hers, but I believe they would have the right to join with some
he didn't have the money, but the proposition appealed to him.'
•
State or States which have less than the requisite number. I
[Laughter and applause.]
Now I confess'that I am mo'ved
do not think they should be excluded from having a voice in
by the inducements held out, but I arn in doubt just wherie we
"the election of members of the Executive Council simply beought to go.
I cannot resist.
However, the influence'that is
cause of the fact that none of these groups may want them,
at work on me now is to go to Richmond.
My parents came
This appears to be a point that we have overlooked in framfrom Virginia, and I see two or three ladies in the balcony who
ing this revised Constitution, and I think probably Mr. Edens*
have apparently indorsed
Richmond; so I think I will decide * motion of referring this to the Executive Council is a good
forbids my referring to our hospitality,; but no' city

Modesty

could offer

you

greater hospitality than this city

Of Boston has

.

#
*

to go

I

Joseph

have

courtesy

second the
Mr.

Wayne,
been

never

to

Mr.

Jr.,

in

Salt Lake City

Knox and his
I

move

"

of Pennsylvania:

good

claims of Salt Lake City

Wexler:

proceed to

'

[Applause.]

to Richmond.

Mr.

that

in

and out of

life,

my

friends,

I

would like to

for the next Convention.

speeches

be

now

closed and we

of*it.*"

great deal of work yet to be done arid we rnust dispose
Mr.

Milton

Alexander,

of Altoona,

Fifty years ago the cry was,
in

the

is a

select the next Convention city,'because there

historic

city




of Boston.

Pa.':

On to Richmond.
Why

-

.

"

We are now

not go back

to

Patrick

suggestion.
Mr. II. W. Dunlap, of New York: I desire to suggest that
there ie slCemirigly no provision for the Territories and Depenof the United'States in this Constitution. The language
of the Constitution is " States'." We ought to have some provision for Territories and Dependencies,
Mr, C. A.' Hinsch : Why could not these banks in Hawaii
be given k representative? Make a special order for them. It
would be ridiculous to suggest that they join with Arizona or
"Utah or any other State. They have nothing in common,
Mr. J. J. Sullivan, of Ohio : As Chairman of the Committee

164

BANKERS'

which

reported

this

language

the

at

meeting in

four years ago—and it is the same
language:
verbatim

time

the

that

was

State

any
It

into

or

would

as

prerequisite for recognition

a

be

of States

infraction

an

Hawaii,

tories,

with

Mr.
It

of

the

to

seems

fundamental

in

that

this

surface.

short

further

delegates
with

time

question
is

that

fact

paid,

at

:

is

of

is

left

that
the

these sections

Council

to

Executive

Council,

the

required

next annual

firm

such

and

number.

I

continue

to

believe

whatever

be given

the

next

two, three

Convention

Council.

that

those

:

say

aye ;

to the

'

Gentlemen,
If

is

the

sit

/'/•'

the

FAVOR

OF

MISSISSIPPI
Wexleii:

Executive

Association.

requested

this

with

A

is

of

the

was

of

Wheiieas,

The

principal

great

River
the

this

wide

periodically
property,

of

fertile

inflicts

the

upon

These

cheap

meeting of

people

loss

great

of

rivers

its

and

prevention

lying

and

In

loss

of

life

occasioned

The

State,

in

task

or

by

work

and

is

and

and

of

nature

destruction

inundatioa

expenditure

and

and

make

engineering

skill,

it

the

for

Work

it

War,

the

United

benefit

is

this

beyond

in

its

of

property

difficult

a

of

the

vast

for

money

in

American

the

to

capacity

at

important
aud

au

That

a

of

the

date

large quantity

that

of

the

hereby earnestly entreat

this great and
impor¬
country, and that it appropriate

copy

of

deemed

useful

and

and

to

such

other

selling

the

basis,

as

of

report

the

the

made

adequate

produce,

the

ramifications

States
to

as

ships

the

ex¬

revival

of

bank¬

until

full

and

deliber¬

bearing of this clause

by

the

operation

of

the

this

resolution

is

upon

Tariff

new

requested

being made by

because

foreign nations

Panama

a

(we

Canal

these

resolutions

appropriate

for

the

having almost

convenience
of

none

our

should

we

It

from

foreign

our

rescind

the

goods to

our

our

own

only

any

economically
else

one

that this resolution

move

so*

that

they

excepting

to

on

be

very

the

be

the

reference

of

part

the

I

second

Reynolds:

.opposed,

of

the

to

Secretary

inopportune for

to

us

resolution

to

the

All

our¬

the
for

reasons

of

the

suggest

at

the mat¬

on

the

Executive

recommendation.

Dismukes:

Chairman

to

V,." ■' \

referred

investigate the

may

ex-

possible

.

would

without

commer¬

already

■

.

I

of

own) ;

tariff their goods are admitted into

new

anything to the Secretary of the Treasury

j.
motion.

in

favor

of

the

motion

will

say

.The motion is carried and the resolution

no.

is

referred.

so

•

COMMISSION

TO

BE

EXECUTIVE

COUNCIL.

Reynolds, of

Illinois:

NAMED

BY

•

Mr.

George

troduced

M.

resolution

a

providing

Commission,

with

appoint that Commission.
members

who

having done

I

for

This

the

forenoon

appointment

authority

to

the

I

in¬

of

an

President

to

(lid this at the request of several

interested

were

in

the

work.

that

the

that it is contrary to the

so

Committee

Executive

/this
for

should

Council

having started

great work;
Bankers'
Association

does

/
:

referred

move

Mr.

great

be

have

itself.

the

negotiations

the

to

one

effect

been

Having

Committee, I wish to offer
that

committees

Council-that

as

may

an

an

lowing gentlemen
B.'

trans¬

President of the United
States, to the Secretary of
Chairmen of the Committee of Rivers and
Harbors of both

Congress,

agricultural

But

I

find

sincp

that

F.

Harris,

W.

D.

II.

McNider,

Robert

Vincent,

I.

desirable.

of

made

a

that

the

and

through

the

motion

and

appointment

resolution

in

to

of

substitution

the

Executive

Agricultural Commission composed of the fol¬
be formed:
.•

of

of

constituted

recommend

we

Constitution

new

looking to
now

undertake

whole

and

industries

.

early

work

the

of

inter-

that purpose;

Resolved,

I

Council

aud
sums

nature

very

Canal

laborers

assembled,

States

of

;

purpose

tbe

to the

Houses

That

the

Further
to

for

freer

a

the

'•

of

that

selling

Wexler

Agricultural

far

Panama

employed

convention

the

necessary

Be

mitted

be

In

Congress of

tant

apparatus

Resolved,
States,

available

the

First

the Old

the

First

National

Bank,

Champaign,

National Bank,

Spokane,

Natipnal

Macon

Bank,

Woodside, of the Farmers &

Merchants

111.;

Wash.;

C.

City,

Iowa;

Bank,

Green-

vlile,

*

I

the

move

Chairman

was

seconded.]

Reynolds:

opposed,

aye;

S. C.; J. W. Wheeler, of the Security Trust
Company,.
Paul, Minn.Joseph Hirsch, of the Corpus Ghristi National
Bank, Corpus Christi, Texas, and J. R. Wheeler, of the Farmers"
& Merchants' Union Bank,
Columbus, Wis.
St.

adoption of these resolutions.

motion

[The

The

no.

All

in

favor

motion

is

of

the

carried

motion

and

the

will

say

Mr.

resolution

I

to

P.

II.

have
submit

to

from
A

as

will

tbe

floor

be

it

Ross :
lias

clause in

Mr.

What

It

been

has

a

is

the

by

[The motion




i

move

was

:

Under

recognize

majority

relation

affected

to

a

new

Mr.

Consti¬

offered

consent.

to

the

the

matter

T.

Joseph

Gentlemen,

:

garded

attempted

few days ago.

foreign

banking

cancellation

of

a

so

as

Dismukes,

Chapman

be

second

the

motion.

of

Florida

made

an

:

I

would

honorary

suggest

member

of

that
that

,

Reynolds

:

I

think

Mr.

honorary member of the

an

named

I

have heard the motion.

you

remarks?

any

John

Chairman

is

of

that resolution be read.

seconded.]

the

resolution

subject of the resolution?

the tariff bill passed a

Edens:

like

Chapman, of Minnesota:

Commission.

.[interposing]

impossible

without

there

Mr.
would

Convention——

Reynolds

it

Delegate:

Mr.

Ross, of Ellensburg, Washington :
here, Mr. Chairman, that I

the

Chairman
tution

Are

W.

resolution

a

Joseph

Chairman Reynolds

adopted.
Mr.

a

products;

'

the

the,army of trained

machinery and

United

of

of

transactions;
Bill

adopted

interminable

United

refrain

and

action

ter.

interior

beneficent

the

States,

aud

the

moment

by the

AGRICULTURAL

and

and

■

completion

of

this time

the

causes,

as

industrial

overflow

.

The

release

Be

build

Executive Council

■

wasteful

magnitude

to

already

affected

this

demand

laws

Mr.

constitute*

between

natural"

requiring
its

rivals

the

,

will

be

commerce

selves.

the

on

,

in

Tariff

country in vastly increasing quantities,

aye;

by

great

and

group

character;

Whereas,

the

of

and
intended

this

commercial

new

adjusted

-

at

should

method

therein incalculable injury

agricultural

accomplish

disastrous

necessary:

Whereas,
one

to

engineering

is

money

State

the

prevent

tremendous

any

order

follows:

as

operation

on the part of Congress to
help
of American foreign commerce; not content that

foreign

Isttng

to agriculture

up

other

-

to

the

lias

made

adoption

expansion

cial

Council,

tributaries

opening

with

residing

life;

is

•

'

Whereas,
and

of

our

Levee

and

were

transportation of

the

Executive

territory

•an<1

of

the

Mississippi

the

and

together

area,

suffering and

Whereas,
means

and

been

will

protests

America

present, as follows:

vast

of

and

favoring

has

they

as

Treasury.

Mississippi

drainage outlet for

Wheiieas, The continued deforestation

to

OF

proper resolution

a

now

Alleghany and the Rocky Mountains;
■of

in

the

and

by

up

will

successful

over-seas

he

manufactures

clause

urgent

the

their

read

from

River

Chairman, to draw

as

subject, and that resolution I

the

IMPROVEMENT

appointed

its

to

/

The

adopt resolutions in favor of the

Mississippi

committee

myself

to

to offer

tlie

per

rebate

Bill..

mat¬

quite lengthy, and I will not read it, but it

Association

wish

insure

against this very mild attempt

was

Monday

on

REBATE

REFERRED.

the

RIVER.

communication

Council
It

improvement
floods.

A

and

Convention

not content that

Mr.
the

to

operation
have

shipbuilding,

investigation

the
IN

CENT.

SHIPS

buying basis; and

This

American

especially

and

PER

welfare not only of the
shipping trade, but of the bunking, export¬
ing, 'agricultural and manufacturing interests of the country at
large,

■

Executive Council.

RESOLUTION

the

will

freer

a

of

cent,

the

in

■

carried

the

transactions that underlie, support and
sustain every variety of
foreign commercial enterprise, depend upon the existence of
Ameri¬
can
built, American owned and American " route-controlled "
ships;
Resolved, That the American Bankers' Association, in convention
assembled, urge upon the Congress of the United States the
paramount
national
necessity of not lightly or hastily
rescinding the five

not, all in favor of the motion

The motion

no.

that

our

have heard the motion.

you

motion

ing

con¬

by various delegates.!

of it?

opposed,

is referred

to

FIVE

AMERICAN

that

_

there any discussion

will

allowed

the
no.

trade,

the

and
can

facilities

By

American

ate

be

of

opposed,

resolution that I

believe

country

as

port
of

recommendations

I

r

seconded

was

Chairman Reynolds

ter

delegates

favor

Chicago Currency Commission, wherein
by Section 2S provision is
for the establishment of
foreign brandies of national banks; and
Whereas, The whole structure of foreign

whatever number they shall

or

The

We

Whereas,

that during this year at least and until

'

[This motion

Is

four,

or

the Council,

on

this

well

the

•

now

REGARDING

FAVORING
:

maritime

of

solution of the

some

which time the Convention

at

Ross

Whereas,

Council may make; and if,
perchance, the Council should recom¬
mend that through the
grouping of these Sections they are en¬
titled to one,

its

of

expenses

adherence

an

authority to act, between

Convention,

action

it

that this question be referred to the

move

with

than

removed, and

are

in

aye;

new
banking law, it is essential that a clear
understanding of the
conditions contributing to such
success
should prevail; and
Whereas, The world-wide
equilibrating effects of the Bank of Eng¬
land discount
rate are
only possible because that country's banking
affiliations are
perfected through the
development and excellence of

principle in¬

meetings the

everybody here wants to try and work out
problem that will be fair.
With that in view I

Mr.

When you take into

I think there should be

reference

CLAUSE

will be able to thrash

we

to-day^

say

is carried.

our

;

moment

more

All

:

will

Terri¬

or

*

fundamental

a

read

RESOLUTION

members.

principles of

v

that

the distance

are

100

Whereas,

There

Reynolds

be

The motion

States.

this, and I do not believe

the

consideration

rule

the

that

arrangement for the grouping

Reynolds, of Illinois

me

the

on

volved in

the

of

any

Chairman
resolution

the Council

on

least

at

of the other similar Dependencies

any

George M.

appears

out

or

have

must

Constitution to make any special
of

City

it has been copied

Constitution—the understanding at

new

group

Atlantic

CONVENTION.

or

Chapman

would

be

re¬

Commission, whether he

not.

Now, all who are In favor of the motion that has been made,
looking to the appointment of the Committee named, will
say
aye;

opposed,

The

next

Committee
Mr.

no.

order

on

The
of

motion

business

is
is

carried.
to

.receive

the

report

of

the

Nominations.

William

J.

Fi^ld, of Jersey City, N; J.: Mr. Chairman

and

behalf

On

gentlemen:
leave

beg

the

of

Nominating

Committee

NOMINATING

THE

OF

>'■'

COMMITTEE.

William

Chicago.

Bank,

Maryland—W.

Philadelphia, Pa.

different

vice-presidents

for

the

conventions

the

state

of

association

Malone,

n.

Alabama—George

H.

Arkansas—Thomas

Bank,

Savings

Los

N.

Colorado—Frank

nominated

as

and

certified

at

Detroit.

thi8

to

First

President

Bank,

of

Prescott>

Los

Angeles

Dothan.
Prescott.

J.

Nebraska—C.

E.

President

Interstate

tional

v

Bridgeport.
District

Cashier

McKee,

National Capital

.T.

Idaho—A.

II.

Blalock,

L.

New

C.

Balthls,

National

First

A.

Cashier Keokuk

Dunlap,

Kansas—L.

A.

President

Iloge,

E.

National

National

State

,

fort.

Wilmer

Law ton,

M.

Trust

&

Bank

P.

BUmi,

Davis,

F.

Minnesota—W.

A.

President

Shaw,

\V.

State

/

>

,

President

Perry,

Clearwater

Executive

L.

II.

F.

Trust

John

,

National

of

Bank

"

*

Bank

of

Island.

F,

Grand

Sartori,
cai.

A.

Stock

Union

President

Kloepfer,

„

President

Braswell,

F.

Treasurer Farmers'

Hawley,

neapolis,

Bank,

Yards

North

•

F.

Dakota—Lewis

M.

Butte.

John

SECTION.

HOUSE

Bank,

'

.

C.

Oklahoma—F.

INSTITUTE

president.

,

First

VIce-PreBident

Schmitt,

,T.

II.

Cesfos.
National' Bank,

Cashier First National Bank of Cestos,

Hoyt,

National

First

President

Dlckerman,

II.

Milton.
Carolina—.Tolin

-

Texas—A.

F.

J.

New

''
L.

Planters

Huron.
Bank

;

Cashier

National

City

President^

Hamp¬

Vice-President

Beall,

mittee:

Eastern Trust

&

Spokane

'

,

-

Wisconsin—II.

A.

Moehlenpah,

Bank,

Cashier Citizens'

united

of

the

states

different

In

Clinton.

and, its

dependencies

connection

with

National

Bank

from

that

ship

in

the

american

bankers'

where the 'member-'

Possibly

association

H.

Arizona-—rJolm

ton,

Ormsby,

Charles

Delaware—Gov.

New

less

is

than

.

Cashier

R.

Arizona

Bank,
Utah—W.

Salt

F.

Thurber,

President

Guaranty

City

S.

Hawaii—A.

President

for

[At

this

President

Savings

by

of

of

the

&

McCornick

Company,

The

Bankers,

Treasurer

Bellows

Company,

Trust

Falls

Mr.
of

all

Jones,
Jr.,

.

the

8tate

Cashier

First

Bank,

National

Vice-President

executive

associations

secretaries

Alabama—McLane

and

Manager

Thermopolis.
Bank

pany,

upon

William

Nevada,

from

and

the

Rhode Island.

*

that these nominations be

action taken delegating the appoint¬
States and Dependencies
by the

these

Association.

•

the request of Chairman

Detroit,

of

Livingstone,

Chairman

teen

council
and

as

nominated

certified

to

this

at

Edens
the

Reynolds, ex-

Mich.,

took

the

imous,

National

First

Bank,

Pell

Mr.
I

M.

Blocker, Treasurer

Texarkana.

Angeles.




the

of the Convention

pleasure

in

..

Jess,

.•

There
done

were

fifteen members that did

that

not endorse

the Committee as contained

by

hereafter

in the re¬

much of good in it that we fif¬

there

will

be

no

such

amendment

for honors in this As¬

by candidates for office looking

and, after having declined to make the report unan¬
do,

we

however,

believe

that

the

report

should

be

adopted.

President

Jr.,

:

work

believe

sociation ;

conven¬

association

thereof;

Tilton,

California—Stoddard

is

What

;

port just read, but there is so

Hawaii,

City.

Arkansas—Charles

point,

the

Alaska-,

however,

some

or

of

delegate

•

from

the Committee

Cashier of the

the only

Is

Convention.

of

Vice-Presidents

adopted

tions

wish

Mexico,

respect to this report?

Chandler,

Lewis,

members

it is the

Council

New

several,

are

the Convention,

Ltd., Honolulu.
for

there

Falconer,

Allen

Mr.

attendance

of

Falls.

E.

Islands;

this

in

by

City.

H.

Bellows

Wyoming—Ira

Vice-

General

chair.]

McCornick,

Vermont—A.

attending

delegates

no

Mexico,

made

Executive

Nashua.

Lake

the

Mexico,

Magdalena,

ment

Del.

Hampshire—L.

of

'•

Bank* Tucson.

National

New

one

President Farmers' Bank, Wilming¬

Miller,

State

are

Philippine

'

hundred:

of

than one hundred
Nominating Cora-*
Philippine Islands, and Rhode

having less

by

nor

New

Nevada,

First

in

territories

and

states

borders,

Committee

Nominating

the

Dependencies

and

their

Alaska,

There
vice-presidents

Association,

Batchellkr,

Island.

"

Commercial Bank of Wells-

President

A.

L.

Vice-President of the following States

by

made

were

States

of

within

members

.

Virginia—Wylie W.

Dependencies

or

Bryan.

"

-

Rutter,

office of

nomination for the

1

Bank,

National Bank,

Merchants'

President

Bankers'

State

Secretary.

burg, Wellsburg,

the

York

Y.

&
No

Memphis.

Booker,

'»

■

&

Union

Vice-President

Bank,

National

First

Cashier

Miller,

J.

Company, Spokane.

for

N.

York,

New

Secretary

Henry,

Mrs.

Wilkerson,
It.

Washington—R.
West

president.

William

National

Central

Vice-President

Simpson,

Hunter,

Company,
W.

Virginia—II.
ton.

W.

Bank,
"

-

Spartanburg.

Dakota—E.

Trust

'

.

Milwaukee,

SECTION.

SECRETARIES

STATE

Pennsylvania—Chas.

Bauk,

Illsley

Marshall &

Assistant Cashier

Dreher,
'

Tennessee—J.

•

.

Wis.

Albany.

South

Ga.

BANKING.

OF

,

C.

Oregon—Alfred

'

Atlanta,

National Bank,

Vice-President Fourth

Ottiey,

AMERICAN

National

Merchants'

*

.

IC.

•

.

Cashier

Assistant

Taggart,

Bunk,

Min¬

president.

of

Bank

Inter-State

Cashier

Crawford,

Sentinel,

Cbunty,

Mass! Ion.

South

Bank,

Savings

.

■

Billings
Ohio—I,

Mechanics'

&

Minn.

Rocky

Bank,

Planters

committee.

executive

CLEARING

C.

Carolina—J.

Mount.'

Los Angeles,
'

.

Buffalo.
North

•

.

Bank,

•

York—-John

.

Security Trust & Savings Bank,

President

chairman

National

Union

Cashier

N.

'

Newark.

Conklln,

W.

Philadel-

Trust

president.

.

Jersey—Archibald

Company,

k

SECTION.

BANK

SAVINGS

Montana,

Bank,

National

First

Cashier

Talniage,

Ohio.

Pa.

1

,

National

J.

M.

Cleveland,

committee.

executive

Vice-President Commercial

Mason,

pbio,

Com¬

Helena.

Nebraska—L.

II.

Company,

Trust

Cleveland

President

Goff,

'

Vice-President

Smith,

of:

SECTION.

COMPANY

chairman

&

under

and

ex-officio

members

are

president.

/ '

Bank

they

Council:
TRUST

Lansing.
Bank, Clear¬

■

Southwest

Kansas City.

merce,
Montana—A.

;

Commercial

President

Brookhaven.

Company,
Missouri—J.

Bank,

■

.

McGrath,

W.

National

City

President

water.

Mississippi—J.

New

the

following officers,

the

Association

the

of

Boston.

Michigan—B.

New

Constitution

elected

have

Sections

the

Union

National

Vice-President

Jr.,,

various

The

Gardiner.

Bank of Gardiner,

Cashier National

City.

Massachusetts—Chas.

Bank,

Society,

Wilmington.

Maryland—Francis M. Wilson, President Pocomoke City National Bank,
Pocomoke

delaware.

Savings Fund

Wilmington

the

of

Orleans.

New

Company,

Canal-I.ouisiana

President

Janvier,

President

Palmer,

council to represent

executive

the

of

membership

for

•

Louisiana—Chas.

San Angelo.

Bank,

i

Frank*

Bank,

<

v

President First National

Webb,

E.

Texas—George

Keokuk.
Bank, Beloit.

Bank,

National

German

Cashier

Mergan,

Kentucky—Charles

Maine—II.

Cashier. Palmetto National Bank,

Matthews,

Pope

Columbia.

Albany.

Iowa—J.

Treasurer Union Banking & Trust Com¬

Marlin,

M.

Bois.

Carolina—J.

South

Deposit Company,

&

Trust

'

Du

pany,

Peoria.

Bank,

Hoo-

President Fifth-Third National

Hinsch,

A.

Pennsylvania—B.

Weiser.

National

Na¬

Bank,

kogee.

Atlanta. v

Bank,

Bank,

Illinois

Mutual

Secretary

Milton.-

Bank,

National

Fulton

President

White,

National

First

President

Cashier

Keller,

Illinois—William
Indiana—C.

President

Harvey,

C.

Georgia—A.

National

Peoples

President

Bank, Cincinnati,
W.- P. Sharer, President First National Bank, ZanesvilJe.
Oklahoma—Asa E. Ramsay, Vice-President First National Bank, Mus¬

Ohio—C.

Bank,

Washington.
Florida—S.

Westchester County

President

Pugsley,

A.

Runkle,

Falls.

sick

■;

H.

Columhia—H.

of

Bank¬

Peekskill.

Bank,
Delmer

Connecticut—0. II. Brothwell, Cashier First Bridgeport National Bank,

Norfolk.

Cashier National Newark

Deusen,

Van

Newark.

York—Cornelius

New

Company,

Trust

Norfolk National Bank,

President

Burnliam,

ing Company,

Denver.

Bank,

State

•

Cashier First National Bank, Lew is town.

Johnson,

Jersey—Walter M.

New

Hibernian

Angeles.

Brlggs,

1

Montana—W.

County

Aitkin

Cashier

Aitkin.

National

Bank

Vice-President

Galarneaulti

B.

Minnesota—J.

thereof *,

Cashier

McRae,

Radford,

D.

California—Joseph

states

associations

secretaries

the

by

National

1

Copper, Cashier Third National Bank, Chestertown.
E.
Lawson,
Vice-President Peoples State Bank,

B.

Michigan—George
fob

Bank,

Gwin, President Second National Bank, New Albany.

Indiana—Earl S.

Law,. Vice-President First National Bank,

A.

Dearborn

Fort

Vice-President

Lampert,

N.

Illinois—Nelson

vice-president:

first

for

National

Citizens'

President

Stetson,

Macon.

President Pes Moines National Bank, Des Moiues, la.

Arthur Reynolds,

Bank,

Cashier City National Bank, Danbury.

Grifflng,

H.

W.

Georgia—Eugene

president:

for

National

Golden.

Connecticut—Martin

REPORT

Woods-Rubey

Cashier

Rubey,

M.

Colorado—Harry

I

the following report:

submit

to

165

SECTION.

BANKING

"

State

-

" '

•

,

Vice-President

First
.

D.

.move

S.

of

Kloss,

that

the

National

'

Bank,

Los

•'

»
,

General
election

[The

Secretary

Tyrone,
be

report

Savings & Trust Com¬

cast

the

of the men named
.

Pa.:

adopted

ballot

as

of the

read,

and

Association

in the report.

motion was seconded by various delegates.]

that

the

for

the

166

BANKERS'

1

The Chairman:

posed,

is

"It

no.

CONVENTION.

in

All

will

favor of the motion

carried.

The

will

Secretary

aye;

say

by

directed.

as

General

Secretary

Secretary

Farnsworth

states

that

has

he

Mr.

:

the

Chairman,
ballot

the

cast

it

to

it

Chairman:

affords

I

declare

Next in

the

officers

is the

order

named

duly and

Installation

to

present

your

President.

new

It

capacities,

and

I

high honor

feel

the

platform.]

President Reynolds

Gentlemen

In

:

Mr.

my

and

world

more

tion.

I feel

honorable than
a

deep

confidence and
ferred

not

there is

good-will

dnly

[Applause.]

upon

the

and

for

the

high honor

represent.
The

the

favorable

States,

Bankers'

opinion

to-day

we

congratulation

achieved

such

nance of

which

not

only

potent factor

u

side of the-business
-and

Association

the

of

established

has

bankers

it enjoys the full confidence of

but

and is

which

a

in

the

strong

the

It should be

members

position,

that

it

and

for

the

the

Association
The

success

has

so

and

growth

the Association

good work and loyal co-operation.
selection

your

Implicitly
you will

that

upon

distinguishing

imposes

co-operation

permit

to

me

utilize

this

assistance

fullest

in

success

1

due

which
which

and

popular result.

aid

in

ship.

by

Heretofore the wisest

of

course

of

consensus

action

opinion

of

has

to call

so

can

Reynolds

Gentlemen

:

the

the

American

First
I
as

a

this

election

tribute

which

I

make

my

to

live

home.

be

would

the

a

fine

Law

personal

old

like to say

to

that

is

necessarily

to

customers, service

to

the

.

custom

city

and

and

field

to

purpose

the

to

utmost

of

have shown in

President.

that

ran

to

the

my.

to

them

proper

to

good

myself,

It

pation is

the

common

disappointment.
of

our

coming

Mr.

part

Mr.

be

within

William

the

It

has

to this,

not

the

with

been

me

as

B.

here,

of

The

Col.

I

G:

of

Boston

has

contributed.

bank

this

I

the

your

Fred

E.

poet who said,

home

" Still

I




:

follow

o'er those

Gentlemen, in view of
brief resolution

can

its

T.

scenes

in. the

England,

Robert

Law

Sol

he

have

I

organize
in

the

I

:

look

in

it.

notices

quite

made

fit¬

son»6

immediately

Salon

in

the

that,

announce

the

after

Copley-

although

Dinner

Shore

they

obtained, at

be

can

will

at

Wexler,

those

give

(»

of

have

the

notices

of

dinner

other

among

members.

own

call

not

the

first

an$

our

should

give

its

p.m.,

one

who

should

at

headquarters

deposited, certificates

matter

prompt

atten¬

'

follows:

are,as

"

.
.

Ocntlemen,

have

we

Convention

closed

now

all

of

adjourned sine die.

Council.

a

with

the

I

know

not
me

the

Scotch

memory wakes."

privilege of offering this

the

at

General

as

.also

were

of

Festus J.

and

The

elected

following

:

.

E.

E.

,

•

E.

of

Forgan, Myron

E.

Secretary.

as

James,
W.

Committee—-W.

F.

W.

.

Foote,

E.

E.

Crabtree,

Stetson, C. A. Pugsley.
W.

Goebel,

Flather,

E.

.

Committee—Joseph

H.

Gwin,

J.

„

Bennett, of New

J.

Elwood

S.

Kennard,
.

,

Wayne,

.

Cox,

of

D.

D.

E.

Vice-President

•

Philadelphia;

York, and the President of the
•

G.

Muir,

George

MV H.

•

ex-officio.

Committee—C.

First

of

committees

Wing, W. H. Bucholz, John McHugh, C. A. Ilinsch.

Franklin,
S.

•

Iloopes,

Wade, Joseph T. Talbert, Sol. Wexler,

Farnsworth

Waters,

Association

Finance

William

and

W.

J.

:<

Legislative Committee—P.
M.

Convention

the

Secretary,

Secretary,

1'reasurer.

as

close

Friday morning, and re-elected

on

Wui'tlrop, E. F. Swinney, J. F. Sartori, E. L. Howe,

Fred

Dudley

Asso¬

matter

met

Assistant

Committee—R.

Federal

antici¬

homes, but for

expression
my

to

seems

after

for

Boston,

evening

Council

as

Herrick.

and

confidence

realization is

and

New

with

and

memorial

Currency Commission—A. B. Hepburn, James B.

First Vice-

where

[Applause.]

this I ask the

of

Farnsworth

Association

Association

treat, and I have the feeling that

return

It

:

Greene, of Ohio.]

Executive

Fifzwilson

the

officer

It shall be my.

that

how you may feel when
you go to your several
it has been a most distinctive

when

Gentlemen

gift

depicted

see

several

which

railroad Tickets

Galveston, Texas,

I

Thirty-ninth Annual Convention, the long
anticipation has been
more
than
met by the
realization, in which seemingly every
citizen

find

■

to

me

supply

Reynolds:

Administrative

breast

so

will

business, and I declare the

pf the co-operative

experience

capitol

will

you

this

shall

read

tickets

Thursday evening, and again

in

but

president and Members, of the
the human

assurance,

interpretation

importance.

of

certification

President

BOSTON.

of human

be

desire

out

to-day, and

Walter

Watts:

is

that

Cincinnati, Ohio; James P. Ilollenstein, of Philadelphia, Pa.;

[Applause.]

O.

F.

I

have

Council

Club,

Griffing."

Mr.

We

of

are

Friday

on

Membership

ciation:

full

Reynolds and

that

shall

Now these memorial

but

where

taste,

a

ability to justify

TO

the
own

"

E.

THANKS

thugs of

[The General Secretary then read memorials to M. M. White,

stockholders, service

extent

by electing

me

with
your

\

additional

holding

for

;

part at this time

my

to

connection

any

of

and

" What

say,

further investigation

appreciate

Farnsworth

notices

Economic

for

employees, and of general service

service

of

album

me

photographs

Mr.

:

always

faces

committee

season

Those

take

Pennsylvania

activities in which this Association busies
itself.

which you

local

speakers will

been

.

of Philadelphia

life of service—-service

community

of

foreign

as

:

tribute

on

past

well

Secretary will read.

Executive

new

now

The

and

in my judgment the life of

even

whose

Executive

A.

Commonwealth

great

to

contrary

that

as

Any lengthy remarks

would"

broadens

not

the

and

a

the

Bankers'-Association.

Vice-President William

take

shall

Secretary

these

an

the

pleasure in introducing'.Mr. William A. Law, First Vice-President
of

I

Reynolds:

have

member¬

Convention,-1

it

-

a

forth.]

of

this

book

a

make

can

Livingstone

upon

they

of

President

the

as

Information Bureau.

all

'

called

man

make any

present

you

the General

The

try.'

was

times

yesterday

Again thanking you for the recognition and the honor con¬
ferred upon me, I pledge you
my best efforts in working out your
purposes for the good of this Association and our common coun¬

Vice-President-elect

to

of

leaves

voice behind

a

any

those

for

Council,

Plaza "Hotel.

upon any of you for assistance.

[Applause.]

the

to

of

photographs of

Association

Livingstone in the Association.

uot

that

William Living¬

containing

Executive

over

to

Mr.

to

friends

many

large album.]

a

that

you

The

tion.

[The

the

the adjournment of this Convention

I shall, therefore, be very glad to receive suggestions at all

times,, and I shall feel free

but simply

announcements

accom¬

upon

the

Y

of

,

General

by

crystallizing ideas and arriving at

following the

will

It is carried.

no.

request

present

album

Mr.

decided

the

Bankers*

of

present

I

character

ting that

'

reached

to

and

President

Individual differences of opinion
concerning the policy

Association

going

William

which

hope

large organization

any

to

this

turning

[Applause.]

to

is
I

The

extent.

desire

At

picture I heard

Livingstone,

many

rely

can

through full and free interchange of ideas

come

subjects.
of

and

the

to

that

know

I

me,

here

book,

assure

assuming the duties

feature of this Association

a

plishment of the greatest
only

on

In

I

members

own

[Presenting

has

the untiring efforts of your former
officers, and it is assisted
which

my

Mr.

mainte¬

is

sat

the

unflinchingly and persistently ad¬
of

I

the

public,'

Association

makes

the hall.]

over

resolution

this

of

opposed,

herein.

in

matter of pride

a

therefore

contributing

those

MIL. LIVINGSTONE.

the American

many

for?"

Mr.

I

those sound principles both of banking and of commerce

vocated.

your

of

United

business

the

entertained

courtesy.

favor

aye;

TO

Mich.,

v

itself

the

of

all

to

been

manner;

by delegates all

in

Reynolds:

behalf

of

to

you

sort

of the undertakings out¬

many

represent.

to

are

of

'■Y

American

.came

have con¬

you.

and

As

Convention, Ladies and

the State of Iowa

M.

photographs of friends of

>

Presidency of this great Associa¬

but upon

me,

has

pleasant

express

their

All

by saying

of Detroit,

officers

year

of gratitude for this expression, of your

sense

of

seconded

was

same

their

on

the

position in the business

no

appreciation

George

stone,

in

;.

Members of the

:

opinion

my

Association

TRIBUTE

mistake

made" no

incomparably

'

•

large vase containing American Beauty roses

a

placed upon

have

you

have conferred upon him.

you

[At this point

that

sure

this

an

Reynolds:

.

been

has

in

of the

pleasure for several years to have worked with him in various

was

that

sincere

signify the

regu¬

Officers.

of

the greatest possible, pleasure, gentlemen

me

Convention,

the

resolved
our

Thirty-ninth Annual Convention

Boston

President

larly elected.:
It

of

[The resolution

[Applause.]
The

The

city

Gen¬

directed.

as

the

be
.

eral

Whereas,

op¬

ballot

the

cast

Ilutcheson,
W.

F.

J.

McCaieb,

Lawson,

Nelson

and

Treasurer

the

K.

Frank

N.

.

Lyrtch,

N.

Knox,

E.

Earl

Lamport,' and the
of

the

Association

ex-officio.

Agricultural Commission—B, F. Harris, of Champaign, 111.; W.
D. Vincent, Spokane, Wash.
; C. H. McNider, Mason City,
Iowa;

Robert

Wheeler,

St.

Texas; J. R.
Insurance

J.

Woodside,
Minn.;

Greenville,

Joseph

Wheeler, Columbus,

Committee—Oliver

Beckwith,
N.

L.

Paul,

Fargo,

N.

D.;

J.

II.

Hirsch,

C.;

J.

W.

Chrlsti,

Wis.

Sands,
G.

S.

Corpus

Richmond,

Parker,

New

Va.; II.

P.

Brunswick,

Action of Country

'

-

„

country

the

throughout

banks

A

•
nO-Diulnnno

in

Knni^

xl

*

following brief resolution :

'

,

.

Pnnimnfinn

+

n

of the.bnW B

Association, was held on Monday, Oc-

American Bankers'

unanimity of sen-

pieeting showed an almost absolute

the meeting

at

limited

was

■

,.

meeting:

M«.

plains Of Kansas, Gov. Bailey, of national rcpu-

'

Bailey.

appreciate

I

attending the American Bankers' Association Con-

here

were

vention

the country

call

to

bankers together and

phasize

that it is almost impossible for us to em-

objection

our

seemed
call and I am
"
want to know if the

the pending currency legislation ; but the time

measure,

opportune, and 1 was glad to join in making this

this meeting.

glad to preside at

very

bankers

countrv

ilouse

lower

me

be

will

now

Then my judgment is that the men yvho

this bill thought
bankers all over

meeting

this

Gentlemen,

is

Mr.

Delegate:

Chairman,

before

and

location.

The

present

country

start,-1

we

":

Delegate

I will

This

that

see

that is done.
is

suggestion

Chairman

would

Gordon

Now, gentlemen,

:

no

cut-and-dried program

to

get

expression

Secretary

of

in

this thing.

the

country

as per

Jones

Mr.

:

Chairman, before we get into the dis-

works.
We

and
of

that the Water Car-

announce

•

the notices which you will see posted up, has been

until

postponed

What we want to do is

bankers in regard to the

far as he can.

cussion, I have been requested to
nival,

,

far as I know, there is

so

legislation, and the Chair will be glad to recog-

currency

nize any one so

seconded and carried,

unanimously elected Secretary of the meeting.

was

Trm Chairman

placed in nom-

was

Friday

evening.

We

West

the

of

call it

fire-

They will not take place this evening.
have

this

a

is

which

limited number
now

American

that he would

out

morning

wire

started

a

them

of

the

bill

we

full supply

a

were

from

until

very

wired

here for

me

We have

saying
a

some

days ago

on the

member at this

that

limited

read
The

a

section

we

will hand

it

down

to

they

had

not

number here to-

a

Mr. ,Thomas C.




on

"

him.

Chairman: Gentlemen, what is your further

♦

The ayes seem to
,

pleasure?

McRae. President Bank of Prescott, Prescott.

-

table.

A Delegate : I second the motion.

day, which are available for the discussion, #nd if any one needs
to

think

What is the further pleasure of the meeting?
Mr. Wood, of West Virginia: I move that the motion be laid

The Secretary

every

<

considered.

passed the House,

much disappointed to receive this

Washington

to-day.

that

Senate Committee.

Bankers' Association

have

Conference,

to the

up

^

Kansas: If I am not out of order, I

The Chairman That is in order. The motion now is to reconsider the motion that we. appoint a Committee on Resolutions. Are there any remarks?
,
•
Mr. Harrison: Mr. Chairman, there is one thing I do not
like to do, and that is to precipitate any parliamentary discussion.
What we want to do is to get down to discussion,
So far as I am personally, concerned, Tt is perfectly satisfactory to me to have you go ahead and name this committee, because I know you will name a good one; but I do not want to
have this thing a cut and dried affair. Let us have a free and
full discussion here.
The Chairman : I would suggest to the gentleman that the
only way in which you can have an orderly procedure is to
have ordinary parliamentary usage in the way of carrying it on.
The question now is to reconsider the motion. All in favor
of that manifest it by saying "aye."
Contrary, "no." The
ayes seem to have it.
The ayes have it and the motion is re-

of

"
Colorado,

Jones, of Denver,

ination for secretary; the motion was duly
and Mr. Jones

Scudder,

the nomination, of a

suggest that

the

A . Delegate : I second the motion.,

V

'
I

:

-

Mr.

by

made

second

consider.

.

secretary is now in order.

pending

those,

where every

bankers want to know

Richmond, Virginia.

an

further

want

from

comes

Chairman:

Mr.

your

'

.

speak to the question before us to state their name

rise to

The

is

What

yours.
•

who

.

framed

that they would make friends with the country
this country, scattered from Maine to California.

pleasure?

A

,

roots "—the folks at home—I was

got word from the " grass

ready to act.

The

"

public life some, and I know this: that when

In

have- been

man

for you to
sitting

Street or the great

#

commercial centres.

A

the

in

shaping that legislation,

potent in

very

than the voice that comes from Wall

more so

I

passed

as

If you are, this is the place for you to

In my judgment, the voice from the men who are

say so.

I

Bill

Currency

the

for

are

of Congress.

and if you are opposed to it this is the place

say so,

before

meeting, gentlemen, and we

is your

It

I

.

endorsement1 to the great public

our

or

Wis.:

A Delegate: I call for a rising vote.
The Chairman : The ayes have it and a committee will be
appointed.
' .
Mr. Harrison, of Oklahoma: Mr, Chairman, I wish to say,
regarding that motion which has just passed, that it seems
to me that you will kill the force of this meeting if you appoint
a committee and have them retire now. If you are going to
»»ake this meeting effective, you must get a general discussion
of this resolution, and then if you want to appoint a committee aml bave them retire and frame resolutions in accord with
the sentiment of this meeting, that is all right,
The Chairman : I would suggest that the appointing of this
committee need not stop the discussion; that could go on.
Mr. Harrison; Mr. Chairman, I am further of the opinion
*bat the appointment . of a Committee on Resolutions could
better be done after this discussion has taken place.
A Delegate : Right.
v mr. Harrison: The committee 'would know who the men
are who take part in the discussion; and therefore I call for
a rising vote on the proposition.
,
A Delegate : I second the motion,
V The Chairman: Gentlemen, it is too late for a rising vote
on the proposition after it has been settled,
A Delegate: I appeal from the decision of the Chair,
Mr. Dunlap, of New York: Gentlemen, I move that we re¬

right, and silence seems to give consent to that.

all

are

live so far apart

We

Clinton,

Contra minded, "no."

by saying "aye.;

the little

entirely to-day that the big bankers are against it, but
bankers

Lindbuho, of

bave it.

bill in its

those for the

expression :of

coffinion

the

been

get their ex-

that is now pending in Congress.

pression on the currency bill
has

thing while

that it would be a good

made to me last night

was

The suggestion

informal body of country bankers.

side over this

It

Conference,

the

of

Gentlemen

Chairman:

much this compliment that is paid me m asking me to pre-

very

we

took the chair.]

Bailey

[Gov.
The

It is a unanimous vote.

Bailey say aye.

favor of Gov.

in

All

President Wisconsin Bankers' Asso-

Bank,

tions to refer these things to. And if the gentleman will permit me I will make a motion that the Chairman appoint a Committee on Resolutions, consisting of live,
The Chairman: Have you any objectionV
Mr. McRae : I have no objection, I think we ought to reach
whatever decision we come to here in an orderly way, and this
resolution might very well go to a committee and be reported
back to us, so that everybody will have an opportunity to be
heard:
The Chairman: Gentlemen, you have heard the motion that
a committee of five on resolutions be appointed by the Chair,
t° whom shall be referred all resolutions that are presented,
wbo shall report back as early as .possible to this body. Are
y°u ready for the question?
Those in favor make it manifest

I nominate for Chairman

Nation.

Gov.

Citizens'

that the proper thing to do is to have a Committee on Resolu-

gentleman from the Far West, a man from

this Conference a

the agricultural

A. Moehlenpah,

Cashier

motion is to adopt this resolution.

.

of the Convention, it is my

Gentlemen

Jones :

Gordon

Mn.

..

.

,

,

pleasure to call the meeting to order.,

provides for the establishment of Fed-

resolution.

to '

report of the proceedings of this

a

7337> which

THE Chairman: Gentlemen, you have heard the motion. The

•

below

II".

Ciation ;

$250,000 capital.

banks having $25,000 to
We furnish

Mr

bill 011 the part Of the small institu-

Representation

tions.

R

of ^discounting the commercial paper of ail member banks."
Chairman : Gentlemen, , what will you do with the reso-'

originated with the small banks themselves, and

timeilt against the

.

eral reserve banks to furnish an elastic currency, and to afford means

0, two days in advance of the general. Convention.

tober

The idea

■

1

,

"Resolved, That this conference indorse the fundamental principles

nf

attendance at Convention of the

from, such banks, m

at

pending

the

on

Bill* a meeting of the delegates

Banking and Currency
*

the

Arkansas: Mr. Chairman, as a basis for this discussion, as no
°n<; else see!11® t0 be disposed to suggest anything, I offer the

expression of tlie independent opinion of the

To get an

small

Bankers.

,

The Chairman: The motion is to lay the motion to appoint
committee on the table—the motion to appoint a Committee

motion was reconsidered;
the motion before the house.

Resolutions—the

ried; that brings

that was carDoes anyone

second the motion Of Mr. Wood?
.
A Delegate : T second tV motion to lay It on the table.

168

BANKERS'

The
to

Chairman

appoint

the

It

:

is

Committee

a

moved

and

seconded

Resolutions

on

that

this

at

motion

the

time

CONVENTION.

laid

be

We

on

table.

to

[Carried.]
The Chairman:

What is the.further pleasure

tion?

the

that the gentleman read is

think

not

that

he

withdrew

Mr.

McRae:

was

the pleasure of the

it

Mr.
like

Oh,

I

no,

his

just

The

for

the

Chairman

Mr.

McRae:

The

Mr.

Shall

Chairman

read

I

amendment,

of

it

resolution

a

the

which

I

is

should only

This

McRae;

mental

principles

tablishment
and

"Resolved,

would

sent

first.

it

as

to

of

afford

member

of

the

bill

Federal

of

means

H.

R.

7S37,

banks

reserve

indorse

which

rediscounting

provides

furnish

to

the

for

to

commercial

the

to

to

that

sume

with

the

is

to

take

this

general principles

the

resolution.

considerable

of the members

most

Senate Committee

passed

adopt

any

of

House.

the

of

this

all

reserves,

or

ciples which
shall
and

issue

resolution

shall

involved

are

money

control

not

care

it.

I

familiar

are

does

not

commit

in

the

it.

the

or

That

notes

tion

to

gentlemen,

of this

the

bill—the

is

upon

is,

the

for

by

reached

in

charge of public affairs
committed

to

and

these principles are

ciples

the

Monetary

provided for
banks

and

if

say,

bank,

decentralizes

and

the

provision

Bill,

this

bill

is

small

this

in

country.

this

not

of

fritter

further

If you

say

and

so,

to

all

there

is

lieve.

we

some

I

of

ers

had

know

the

must

men

A

have,

some
own

to you.

and

ask

trol

these

this
I

them

country
do

not

details

of

the

perfectly

banks will

to

go

in

their

of

make

here

the

Mr.

If

their

But

let

discussing questions
principles of this
who

men

part of

make

a

these

must

the

what

you

are

to

men

and

or

up

I

ever

any

hope

had

that

to

these

insist,

supervise

as

your

never

give

Government, and
who

other

no

conceded

this

in

to

are

con¬

business
to

in

'

it.

resolution

will

be

Rogers,

of

Arkansas:

motion.

I

Mr.

think

Chairman,

that

this

is

I

time

to

believe

that
we
are
here together and
that we should
Congress just exactly what we approve of
that bill.
[A
voice, " Correct."]
Or of we do not approve

show

any

bill,

I

think

it is

due

to

us

to

say

that

[A voice, "That is so."]
When

you

go

to

Washington

we

do

section of that

not

/

and

say

that

approve
,

you

;

it.

.

approve the
great fundamental principles of the
bill, you do not do a thing.
You just say, " Pass
anything."
Any provision of that bill
which affects the bankers of this
country is fundamental.
We are opposed to certain
sections of that bill.
We believe
that when these banks
purchased their Government
bohds that
they purchased the good will and the
faith of this Govern¬
ment, and that has always been worth a
hundred cents, and we
always want it to be worth a hundred cents.
Another thing: we
want, us little fellows in the
country, in
the farming communities—we
do not want
segregation of Sav¬
ings Bank deposits.
That would take out of
our
own
com¬
munities the funds which
belong there, the funds which
we
should use to
develop our country and to loan to the
people
who are doihg business in
the very
country that owns those
funds, and not to invest them in




foreign securities.

the

system

If

of

bank

required

tied

would
amount

an

by

work

central

a

from

up

all

are

5

that goes
bill.

labor

quit

or

between

the

The

to

40

cent,

per

in,

the

all

up

and

dividends

through they

[Applause.].

eat

to

They

business.

interested

expense,

would

read

can

these

cut

can

There will

stationery

the

resolutions

is

now

support

They

must

ex¬

earnings

with

is

of

in

your

be

that

one

justice

the

of

per¬

from

the

to

country

in

of

Legislation

necessity

also

ade¬

bankers,
bodies

as

■■■■"'
the

fiscal

of all

cent,

per

Its

system

themselves

banks

burden

Congress.

fiuancial

new

customers.

seventy-five

bear

numbers.

banks

Any

with

their

to

of about

their

pending

desirable.
nation

distinguished

as

States.
to

bill

is

the

justice

number

a

country

at

this

upon

efforts

of

and

having

session

had

large

a

this

sixth

presented

of

the

day

and

That

already

be

to

the

national

*

centers,

banks in

prosperity

In

hostile

to

the

welfare

of

hostile

to

the

welfare

ef

at

to

American

that

The

par.

1913,

bonds have

If

changed

for

merits

to

2.

these

their

ple

banks

have

savings
is

posits
for

their

in

any

and

less

is

in

result

the

prevent.

and

they

cannot

under

the

of

of

and

now

enjoy.

will

is

savings
of

of

peo¬

Country

their

Many

and

the

earnings.

customers

millions

communities

of

there

commercial,

a

business.

banks

These

de¬

invest

to

to

forbid

their

this

money

from

credit

the

of

aim

deposits,
banks

two

right

rarely any local market

country

the

which

deny

is

and

the

acceptance

doing

this

to. divert

cripple

roof, will place

one

Banks

for

There

world,

given

of

rural

securities,

needs,

creation

part

banks.

disaster

very

the

ex¬

own

value.

the

their

localities.

require

seriously

be

unim¬

be

its

upon

prosperity

of

in

remain

the

face

at

under

should

sell
of

upon

The

on

caring

To

will

their

placed

use

created,

class

one

bear

and

was

depository

selling

there

should

than

thrift

savings

Segregation

capital,

ment

meeting

banks

and

now

markets

unwise.

been

business
will

that

the

respective

character.

purposes,

by country

are'

retired,

circulation

not

satisfactorily

any

farming

require

in

profitable

thus

bonds

be

restrictions

the

separate

now

deposits

local

foreign

at

encouraged

have

for

of

legis¬

attending
a

resolution

for circulation

security

dollar

deposits

in

to

are

safely loaned out at home.

bonds

facts,

this

held

following

The

>

statute

these

Boston,

natjon and its credit must

the

upon

always

are

are

at

Association,
the

These

new

unnecessary

deposits

business

a

retired

resident

need

no

the

on

savings

much

others

this

concerning

purchased

except

liquidate their

to

of

depends

and

of

banknotes

bonds

That, any

investment

delayed.

pass

Recognizing

present

and

been

them.

bonds

cents

desiring

have

to

faith

national

100

at

banks

attach

good

paired.

long
to

adopted unanimously:

government

privileges

too

record

on

banks

Bankers'

price that would ,be unjustified

a

go

country

of October,

been

Washington

commended.

opportunity

no

of

has

leaders

is

number

Convention

on

subject

administration

special

a

separate

th6

bank

country

a

letter

citizens, whether farmers, wage-earners or business men.
A
satisfactory banking system has long been needed by the people.
Leg¬

offer

when

get

that

American

to

desire

country bankers should be heard.
I

these

and

the

is

as

gentlemen

out

law

with

banks,

United

ings

discussing the

.

substitute

?

But

that

dally with Congress,

time

more

be¬

believe.

will

those

what

I

are

Congress

name

asking

asked

take

to

you

that

unjust,'I

believe

bankers

get it; but if you

permit

bill,

appoint

know

the part of bank--

on

currency issued by the

can

to

You

If you

I

bankers ;

distrust

other.

asking

are

laws.*

making

adopted.

a

that

safe.

known

"

of

State,

and

proportion

1.

country; unjust,

you.-

will

you

ever

our

each

as

you

has

word

on

the

islation

believe

they will, have consideration.

there is soipe

you

wish

be

days to get

reserve

Louis,

places to

many

little

clearings,

That would be impossible.

difference

currency

into

needs

and

represent

the

be

the

like

and

the

national

banks

will

leave

dividends.

would

passage

to

lation,

experience

with

banks,

we

-..;

that

to

can

I

corporate

of

banks, big and
I

the

their

from St.

say

departments of the bank.

Country

banks, the large banks,

time

If you want

perfectly safe,

so.

fundamental

distrust

that

the

the

honest

business,

of

say

our

law-makers

as

that

in

federal

deposits.

postage expense,

banking

quate

bill

what

mean

know

Now the items

protect

three

cent.,

per

dividend.

any

other

merchants, and all the people of

country

the

some

reckon

are

small

we

away

;

have

the

to

that

that

cent,

the

speedy

elected

principles

currency

believe in

let

laws.
I

the

or

of

reserve

this matter,

detail.

bill

considera¬

provides for reserve
If

emergency

the big

These

Convention,

wishes upon
us.

the interest

merchants,

bill

proposition.

for

little, and all alike, now'is the time
this

except

that

These

talking,

be

Now,

not antagonistic to the prin¬

impartially and fairly distributed

the

the

fundamental

Commission

central

a

want

we

in

gentlemen,

mission.

that bill,

administration

an

the

this bill;

of

time

a

proposi¬

a

'

that the Government

provided

is

A

coun¬

days of its clearings, and it would
18

have to

thing.

per

never

question that is of the u.tmost importance
country, and particularly to the country banks,

platform

a

have

6

days

or

that

to

distance,

con¬

number

currency

the. whole

There

six

times

upon

two

in

of

thq word " dividend

issues.

we

are

and

the

this

either

pense,

of

own

They have al¬

collecting.

city, they would have of
necessity

Another

they

pending before

now

at

,

Now,

least

all

mean

keep

instead

as¬

question of detail—but to the general prin¬

any

the

do

Congress, and which bill has

ference, if it is adopted, to the details
of

I

discuss

to

conference

of the bill

present

This

time

checks

You,

them.

on

its

over

country.

cleared.

three

also

60 per cent, of their

motion

time

and

to

at

that

reserve

banks."

The

in

never

or

es¬

of

country
this

at

two

would

required

would

this

them,

currency

paper

clearing

un¬

clear at par,

to

drawn

tried

State,

own

some

That

equal
out

elastic

an

and

hand

on

my

funda¬

the.

of

between clearing and

sum

takes

letter

conference

checks

and

wrong

country

to

sufficient

back.
this

economically

country

been

collected

difference

are

is

be asked to pay its checks

never

depending, in

again?

That

all

proposition
has

been

the

be
Mr.

for

par,

bank

that

it

serve

meeting.

resolution

at

that

country banks of this

the bank and
they are paid by a draft on some re¬
city; otherwise the bankers would be
required to keep in
these federal reserve
banks, that acted as clearing houses, a

if

sir.

Yes,

:

its

to

also,

ter.

ways

meeting.

McRae's

I

still before the house.

consented

discussion

:

I understand that

motion.

Rogers, of Arkansas: I have

to offer

remit

tion

Campbell, of Indiana: Mr. Chairman,

motion

do

of the conven¬

•

Mr.

believe,

just to ask the

the

>

for

use

local

to

their

customers

this

legislation

of

under

sav¬

setting
the

aside

same'

of

manage¬

burden upon country banks which
their patrons facilities which

a

to

they

.

„

That

3.

refers

.17,

section

to

17

matters

33,

page

of

the

bill

pertaining

be

amended

should

to.

by

be

amended

exchange.

We

eliminating

the

shall
at

be

the

and

par,

drafts

duty of every
without

drawn

checks

bank

serve

bank

last

total

net

by

upon

of

average

of

banks

that

of

bill

the

The

can

already

accomplish

of

afford

a

to

this

credit

of

bank

of

centers

radical

theft

and

they

in

shall

It would require

receive

other

depositor

a

on

proper

18th
"It

deposit,

checks

and

and

in

large

a

it

15,

depositor,

other

any

the

follows:

collections,

any

will

less

after-

as

as

section

line

on

Federal
said

part

charge

re¬

reserve

of

for

a

the

fair

decrease the net
earnings

than

twenty-five per cent.,
gain will not go into the pockets

but

will

will

the

enjoyed

now

to

this

In

be

be

are

be

give

profits.

change,

is

which

section

loss

It

not

This

America,

this
the

by

more.

to

represent

drawn

now

read

in

said

profits

country banks.
as

upon

depositor

any

the

satisfactory

provides

depositors

or

that

word

section

bank

reserve

exchange

Exchange

collection

least

It

men

for

by

The bill

result

earning

provides

items.

funds

country

business

profits.

its

of them much

many

the

of

drawn

earnings of

rendered.

the

charge

mentioned.

service

and

any

drafts

and

Federal

far

so

suggest

last

the first five words on line 16, the balance of
line, leaving the last paragraph'of section 17 to

in

money

addition
method

cleared

that the small

solely

making

take

of

and

income

to
to

from

banks
the

by

the

satisfactory
banks

that

abqve.

are

the

handling
not

country

country
collected.
To

banks

keep in

BANKING
the

Federal

sufficient

entirely
such

banks

reserve

to

for

care

clearings

the distance and

upon

in

excess

from

two

amount

an

their

time they are

of

to

their

six

from

legal

SECTION.

Mr.

reserve

days,' depending

the bank

this

acting as

That

with

it

whatever

dent

the

approved

right to keep not less than

15

Very

few

12

to

funds

connections
money

banks

must

held

so

either

do

them

with

or

be

to

the

without

nearby

the

as

reserve,

with

of

this
of

the

That

5.

above

matters

portance which
these

subjects

lieve

that

do

we

unless

not

this

National,

or

This

system.
banks

must

change
that

only

means

is

The

is,

country bank

savings

amended

so

that

a

their

to

country

but

of

the

the

great

charters

of

majority
retire

or

the

bill

of

from

will

business.

reduce

so

The

sist

in

making it

earnestly

call

it

success

Congress

upon

expression of

become members Of the

the

the opinion

on

ask

we

Hon.

for

the

committee

Robert L.

Owen,

to

in

the

Thb

Federal

be

and

this

that

will

present

these

for

offered by the gentleman who just preceded
it be substituted.

A Delegate

him, and

which

was

take

the.place of the

him, Mr. McRae.

would

of

Missouri:

a

moves

that

represent the real sentiment of the
or

am

unwilling to be put upon record

very

in

other Convention.

any

mental

principles of this Currency

do feel

very

bankers

[Applause.]

I

to

this

bill,

in

come

and

realize

we

that

the

best

we

Con¬

urge amendments which will

to

begin

this

by

endorsing

the

wish

whereby

most

this

bill

pretend to do

pected of

us

States, If

we

"

heartily

make

we

endorse

the

to

I

so.

whole.

a

think that

think

we

we

get

have

We

this

at

right

a

is

is

do

We

doing all that

can

bankers

of

the

time,

but

ask

us

with

for,

and

certain

resolution,

specific.

If

I

as presented
was

of

Washington to

appear before the

if

there

the

committee

United

was

sent

with

a

the

fundamental

the

majority of the bankers

principles of that bill.

think, also, and I think that
the best
mental

that

as

at

the

in

the United

I

think

States

the bankers would

this

bond
we

time is

circulation
can

that,

to

I

we

do not.

a

which

we

the

go

on

record

as

Kansas

City,

Mr.

be

:

I would answer the
gentleman

impossible to start into

this thing and ever get
the call

a

principle

The

bank,

to-day

is

a

that

the

we

are

of

the

■

the
is

question

wherever

as

question

whether

situated,

shall

we

whether

or

decentralization of power.

Not

but I

regional

the

that any

believe

that

of

the

we

That

perhaps, want

us,

great West and the

banks, that

reserve

other

two

reduction of

the

stand in

may

we

That is fundamental

fundamentals

Mr.

myself off,

I represent here the

respect

every

I

Chairman,

not

am

but just because I

get¬

want you

First National Bank, of Enid,

for

Dr. Johnson,

of

Kansas

City,

the capital of his country bank and did not

gave you

Owen's

governmental

are

reserve.

our

Oklahoma:

of

show

words

own

first

[Laughter.]

bank.

this

on

Dr. John¬
Those are

control.

bill—governmental

con¬

an

experience with State control which

compelled every bank in that State to
law.

I

recognize that

guaranty

a

both

in

Lieutenant
you

had

the

law and

Governor

set*of

a

and

ago,

controlled

said

we

that

instead

were

going

vast

a

difference

the

com-

State Treasurer

the

banks,

just

a

be^

and

in this

as

political appointees to control the banks*

passing of that act

get

is

a

under

come

[Applause.]

the

to

we

of

to

him,

Governor

the

be

three years

to

" This

thing

good

by,

and

permit

they

be

But it

of elected

consisting

because

relief."

board to

a

last;

cannot

some

We could not do it.

board

went

we

Governor of the State of Okla¬

have got to have

exclusively of bankers.

Two

years

bank act, but it is

Oklahoma

down to the newly elected

to

there

national

a

In

cases.

nation,

would

Five

day of October, there went into effect in Oklahoma

which

thing cannot last;

this

And

was

agreed

officials—who

elected—that

were

we

appointed

we

have, in their place, officials appointed by the Governor.
years

more

went

by,

and

was

made for

through.

any

composed mainly of the same
by saying that

law

long-winded discussion of

as

the

Legislature of Oklahoma,

This meeting was called, and

to the

city




years

us

ago,

who had passed the banking

men

absolutely threw

last winter,

up

their

" You bankers submit

Governor, and he will appoint

a

a

hands, and they
list of nine

board of three

names

men

from

a

the Chair goes, he shall refuse to
recognize any

reserve

five

said to

meeting at which should be represented
country, banks outside of commercial centers,
[Applause.]
And
far

platform

con¬

is

which

•

The Chairman

in

it will work auto¬

so

elastic feature,

the

monetary

We have in Oklahoma

homa,

principles of the bill is in

the

[Applause..]

After

I

our

making that available, together

the capital of his city

went

lived

of

reserves

which amounts to from three

that they stood for governmental

case

funda-*

Chairman,

those

of the fundamentals.

have

says

of the

approving that sort of thing,
Missouri:

mobilization

with

son

the

that

live under it, perhaps, for an¬

order?

so

I

pulsory

matter of fact, we do not?

of

the

decentralization of power.

a

Harrison,

tween

But I

have

is

placing

the

are

need money in crop moving periods, in

question.

five

one

guaranty

to

should like to ask the Chairman whether
in voting on this question that a debate of the fundamental

it will

want

tried

we

Johnson,

this

twelve,

law

recommend, that

endorse

and

power.

in

the

endorse

know

principle

vote on-—what

absolutely corresponds with this in principle.

years.

Why should

Mr.

of

fifty years; and

fifty

when,

d6

can

principles

under for

other

we

statement

that

two, three, four.

give you

.

Committee, I would feel foolish

simple

are one,

fundamental
of

as

Senator

.

I

about to

solved,

the

many

trol.

think,

down

sent

problem

do not need it, it will automatically

we

centralized'

Mo., who

by Mr. Rogers, embodies something

member

a

the

one

Okla.

be ex¬

I

are,

are

dollars,

we

been

in

to hear me.

to

modifications

which

American

to condemn the

us

%

Mr.

brought forth largely in the resolution proposed by Mr. Rogers.
This

has

Gentlemen,

the best

as

of

stringency of times, that it will automatically

or a

fight

...—that is

believe that

I

recourse.

State

:

that it will be elastic,

so

and when

This

South

willing to endorse the bill

are

million

reserve,

the West for

cannot

for

18,350

body

for

say

They

you

country,

solved

as

"Rogers,

foolish

willing to accept this

are

to

it

as

endorse this bill without

can

we

are

patriotic citizens and

as

Mr.

of

State

Representative—infinitely

or

tariff question—I

fundamental

ting up here to

motion

and

important

most

Senator

shall have what is known

fundamental

recommendations.
I

majority of the bankers here

which

the

second

specific

some
as

without recourse."

that

our

have

principles of that bill would be sheer folly.
I

facing the

principles?
this

control and

discussion

Now,

1,257

;

Second,

country banks of this country.
But

Banks

representative

hundred

the

on

in

the

centralization

simplify the

onerous

Banks, and

after.

accept the bill, as patriotic citizens, on
the theory that this is the best we can get, and in the
meantime,

passing of the bill and make its provisions less

will call

country banker.

am a

National

to five

and

in every possible way,

five

that has practically passed the Lower House would be

in

biggest

one

can

this

that

American

an

first

tract.

tlemen In this audience feel very willing, to
accept the provisions
of that bill in the main.
We have not been consulted about the

is

136

10,400 National

are

expand and when

bill.
On the other hand, I
willing, and I believe that the majority of the gen¬

provisions In

five minutes, and I

proud that I
are

in the National Treasury,

endorsing the funda¬

as

give

to

pleased to take five minutes.

money

with

believe

for

I am

there

supported, and which

The

this

will

we

to get through with it

years

mistake.

The

in

bank,

limit everybody

1, practically, in that State of Missouri; while in

than

so

adoption of

not

country

going to

will give you

that list of bankers, and you bankers run it and take the respon¬

sibility."

banker

which

[Great applause.]
,

the

[Applause.]

That

experience

jankers of this nation

It, get familiar with it before

taught

all know.

very

•

in view of the fact that

Now, the fundamental principlest which this first resolution

adoption of the motion first brought before the house

vention,

now

faced

fundamental

do

I

think

not

matically,

Chairman, I

theory

bank In

a

1

by the gentleman who preceded

Mr.

little

a
am

shall be

I

statesmanship

more

Are there any remarks?

Houston,

the

a

,

there

emergency,

Mr.

that

do

reserves

one read

the president of

are

though,

sure,

that the

was

practically 10 to 1.

ever

question before the house is that the resolution read by Mr. Rog¬
ers

Nation

est

Does any one second the motion ?

Chairman: Gentlemen, you have heard the motion.

that

bankers, at this psychological moment, which requires the great¬

the substitute resolution.
The

that you

am

said

I

reason

And I

:

Missouri

measure

I wish to second the motion for the

:

in

I

>

as a substitute for the resolution

surplus of $6,000 ,and

a

is

fully

be

Johnson

and

people,

Banks, so the average is 2% in the Nation, while in Missouri it

Banking and
to

400

as¬

the

to

president
of

town

a

We

And, finally,

on

presi¬

down at the end of five minutes.

the

formal

a

the

now

in

other way.

Banks-—10 to

Gentlemen, Mr. Rogers offers the resolution

which, he has read

minutes.

out

who realize

resolutions

premises.

Chairman:

as

opportunity

an

and

made.

them.

and the Committeee

Senate,

be

bankers,

confronts

now

system

can

resolution

part of country

that

States

to

consider

chairman,

Currency of the United
heard

ought

the

the seriousness of the situation

still

of five minutes.

country

We desire to

to

come

the

\ Mb. Johnson: I shall be glad to be called down at the end

ex¬

banks will show net operating losses, instead of the
reasonable profits wq now enjoy.
We desire to do our full duty to the
country, but our duty to stockholders and customers must not be disre¬
garded.

established

president of

are

Mr.

earnings

our

I

The Chairman:

National

country

I

The

:

big city.

five

Federal

to

am

[Laughter.]

well know,

you

banker,

Capital of $30,000 and

Chairman

great

country

a

that

a

you

objections

new

as

bank

you

few country banks, either

members

that I

have been for twenty-eight years,

a

$125,000.

of

in any

be¬

we

and

requested

was

reason

minutes, because it will take two

With

centers.

meet

im¬

equal

as

you

the

sections

of

opinion;

an

as

that

others

fiscal

the

very

become

to

features

are

express

herein, that

afford

.

to

propose

made

can

those

There

larger banks in

bill

surrender

and

most

the

concern

recommendations

State

Include

especially concerned with.

are

has

The

reserve.

bankers

it

of

deposit

These

law.

convention,

and

bank.

I

for the

to-day, and I was requested by the parties who called

founder

larger

a

Chairman,

country bank

a

am

this

reserve

country

having

part

a

of

connections.

passage

counted

carry

reduction

advantage

after

should

The

should

upon

one-third of such

business

vault

In

agreed

centers.

real

no

can

maintained

be

by

fiscal

is

cent,

per

Country

of

amount

in

agents

reserve

from

and

of

and

percentage of reserves is

Mr.

Johnson:

meeting because and

clearing house.

4.

169

long.

us

If you

a

lesson

don't know

Beqause they had to

■

BANKERS'

170
throw

to

lot

a

of

bankers,

of

wreckage

who

State

that

of

loss

a

Secretary

they had to turn it over

million dollars, a

two

over

months ago

the

trying to redeem from

now

are

A Delegate:

they call

which

control,

political

from

hands

their

up

control, and in five years' time

State

CONVENTION.

caused by

large part of which was unnecessary, and which was

you

to make

an

what

say

something here,

the

nation

that

because it

Owen

"

It

is

of
a

mistake

a

the

with

He

will

it

are

earn

for

take a part of your profits,,

the

than

more

basis.

For

who makes that state¬

man

those
I

is

It certainly is not banking

the deep

blue

slip of the tongue on his part.

The bankers of Oklahoma

[Applause.]

tee

our

of

Association

advertised in
of

b'.ll

this

and

I

told

me

have

all

received

not

single

a

banker who was
Only

letter.

this

one

our

State,

presents

the

Mr.

And

which

here to you

resolution

a

believe that the worst

bill

to

Mr.

Harris,

have

of

Washington
proposition.

of

it, and

the

The

I think

stay

you

the

if

bill

the

has

Chairman

Harris:

I

I

opposed

am5

is

of

a

would

take

to

passed

we

The

the

the

of

that

the

:

resolution

offered

would

be

McRae,
The

consider

but

it

would

before

I

house

is

I

feel

cannot

be

whether

that

such

as

bo

would

we

without advertising

[Laughter]—they
Mr. Johnson's
I

will

show

bo

many

time
Mr.

bill

you

to

you go

of

read

;

vote

take

privileges.

A

I

will

will give

their
touch

basis

in

per

cent,

it

I

own

upon

3

are

your

per

I

,

The

point

Delegate:

cent,

bonds

to-day at from 85 to 87.

Seventy-three.

Secretary Jones




:

bonds.

If

You have the privilege

circulation £ach
per

of
my

brought out in

Government

you?

.

year,

bonds

without

Seventy-three to-day?

»

but

you

bearing the
circulation
on

a

3

who

is

the

would

think

not

consider

it

carefully

and

do want.

we

was

I

Camp¬

to get the expression of
banks put

together.

going to put

am

down

offered

substitute

of

the
Mr.

and

so

construed

by

Mr.

bill

bill

as

by

it

as

McRae's

will

Rogers,

the mo¬

Mr.

Rogers,

resolution

which

House.

passed the
is

If

indorsed,

make

The

it

passed by the House, and

it'

manifest

have it.

ayes

by

as

saying

[Tremendous

•

-

The motion did not
With

:

Mr.

one

carry

unanimously.

exception.

Chairman,

Chairman

per

read

Mr.

:

by Mr.

beg

I

Haines

Rogers,

•

.

.

..

More than,

pardon.

your

moves

the adoption

the

adoption of the

being the

reso¬

meet¬

Gentlemen, all in" favor of the motion

make

as

sense

'

Mr.
The
it

moves

of tjbis*

ing.

to

merits

taking

If.,we do

want, then I think it would be bet¬

separate from all the

modification

as

Looney,

manifest

I

of Texas:

Chairman:

second the

by saying "aye."

motion.

Contrary, " no."

The ayes have

it "unanimously.
Mr.

"

Tilton, of Alabama : I move that

which

into the

we

Haines, of New Jersey: New Jersey

name

Without

ques¬

gentlemen.

McRae:

to

gone

ap¬

exception.

Mr.

But

in

to

likely to get it intelli¬

more

do want.

we

theory of this meeting

McRae:

of

Gentlemen, the Consols of old England
sold

made

President

go

be

resolutions to sub¬

of the resolution.

surplus than

we

would be

we

Contraminded, "no."

this

If

prepare

that it

it would

carried unanimously.

surprised to learn that

first

the

cent,

one

Gentlemen,

am

more

away.

am

the

exchange for your 2

privilege,

have

business.

regarding

of

Mr.

any

upon—as

don't want to, give it away.

have to do?

into the system, where

circulation

cent,

how
we

Harris

stay out.

or

larger and they

are

resolution,

retiring 5

must

I

Mr.
vote

the country banks of which

affecting

Rogers'

the system

country banks have not

more
as

in

intelligently

that

committee

a

voted

It is

lution

which

suggestion

could

bank has, but I

system, what do
this

the

'we

me

motion

"aye."

remarks, and I will only talk n to one point.

would

to say

whole at its meeting when the

as a

getting what

the

a

the

,,in

think it is funda¬

we

thing then to do would

explain what the motion is.

is

Mr.

make

correct

applause.]

Any further remarks?

did not intend to

vote

we

declined

we

by the country.

mean

the

If

decline to approve it as correct,

we

the

that

be

by Mr. Rogers in place of

Mr. McRae.

Gentlemen,

the

resolution.

it will

..

offered

We do not necessarily have to

that

on

McRae is

It is short

for discussion.

The Chairman

,

ought to vote upon.

we

of the

Congress

as

to me that

seems

Chairman; I will say for the information of Mr.

now,

the

upon

originally presented by Mr.

the indorsement

v

far

so

that

have

'substituted

far

so

in passing

thank you.

have said

Association

are

some

specific features,

some

said,

the

by

ask

must

we

If

believe

I

outlined

as

mean

not?

or

Gentlemen, all favorable to the adoption of the resolution,

I do not believe that the

anything

I

upon

has

means

fun¬

might consider, fundamental,

mean

vote,

funda¬

can we pass

believe

We have not voted that

country bankers,

will

to

the devil and

want to

we

bill

the

committee from this body to

to

means,

suggestion

prepared

between

am

fairness,

ourselves

was

we

Then if

seems

to

tion

unfair,

Mr.

it

as

wrong;

up

The

Harris'

might

resolution,

question

by

Secretary Jones:

/.

indi¬

some

not

am

do

right to the point.

comes

The

resolution.

substitute

The

I

concerned,

are

Chairman

resolution

re¬

simply decline to approve of the law as being funda¬

me

we

the

of

I

but

present 4t to the body—what

to

as,

wide open proposition.

very

[Cries of " Question, question."]

on

ter

the

I

resolution,

your

would really

opinions

view

a

that

that

bill—what.

the

resolution

individual

that

that Mr.

might not consider fundamental.

everything,' if

indirectly

I cannot vote for it.

Missouri

affirmative

we

to the

It

the House."

that this Convention

our

classify that

a

passed?

and

damental,

of that

in¬

an

question before the house.

gently before the body what

will

many

point

on

eating

into

go

to

tion

if you put

how

seem

mit

banks stand.

that

"answer

features

passing

stand
the

giving Congress

as

perfected

would

the

bell that

fundamental
or

will

and

can

you

think

not

been
:

is in

banks

bill,

the country

''fundamentals"

because

as,

to

1

scheme

you

"as passed by

Mr.

wish,

you

that

McRae ;• Do

The

you

g<)ing

banks

country

how we stand

present

Banks.

expression of how

Mr.

was,

large

very

not all

are

pudding

the

country

many

of

then,

National

simply' suggest

vidual

until

this is a

We

the

of

find out

can

how

basis

And

out.

State and
I

the

on

how

proof

in

.

Chairman,

Mr.

know

will

question here,

scheme

-

Illinois:

I

the

not

principles

from

mentally correct.

it, but you want to send some word to Washington so

this

on

is

principles.

terse and

is correct.

■

..

want to expedite it.

you

that

Government

Campbell, of Indiana: Mr. Chairman, it

mentally

opportunity to discuss the bill, and I. am not going to

an

discuss

the

I submit in all

express

gentleman

negative

thing that can happen now is for the

[Great applause.]

meeting, and

102%

them

bonds

I

exactly the resolution that

of our district, and get relief in time of panic.

We

pass.

them

stay out.

from Arkansas,

resolution

the

•

the Federal reserve banks under this bill,

to

go

or

bought

paid

represent

Government

circulation, whether

our

fundamental

the

vote

of

You

selling for 73, what will the 2s

are

Can

or

:

in

and

can

you

How do you retire your
bonds.

I

your

fundamental principle,

fundamental

that there isn't one-tenth of the national banks in Okla¬
that

3s

That

:

a

as

the bankers

feel—that this, is a dangerous thing,

gentleman

retiring of

ing paper in the Federal reserve banks under this system, I say
homa

[Ap¬

do

sea.

that is

to

you

what

charter,

market, and the Government

gentlemen,

in

go

modification, and

has.

man

.that every member bank can get aid in emergency by plac¬

says

charter.

principles if the fundamental principles of this bill

gentleman

expect that there are some

for the bill; I

was

this country

over

I
in favor

right in to me and let me know about it,

The bankers of Oklahoma feel just the way

others.

when

know how the men of Oklahoma felt.

me

write

that he

the

City before I left, for the

in, Oklahoma

official organ for any

our

to

mental

We,had.a meeting of the Executive Commit¬

of letting

purpose

sell

basis?

Secretary Jones

I speak advis¬

not for this bill.

are

will

Chairman

The

of business.

that kind

edly.

You

reasons,

whether

advocate

national

your

up

cent,
the

banks

country
If the

this

on

banking business, or else it

a

give

sur¬

don't accept of that,

cents, and when they floated the Panama bonds,

little

bonds.

ment is either not familiar with the

to

If you

pudiate ?

gentlemen, I say that any

Now,

the

for

Mr. Johnson will have

national

per

from

or

two

that; his is a State Bank.

your

2

your

about

Gentlemen, that

before he has enough

in

Retire your circulation.
Sell

there

over

was

case.

must

up

Government

those

sell

which you

cent,

the

vestment

invest it in this bank,

two per

do?

of

one

getting."

now

You

give

you

did realize 100

invest in the capital stock

said, " You can

you

from

:

that you are not going to be satisfied

say

part of the capital of your business, and

and

week

if he goes

loss in either

a

happens?

If

to

I

must receive if you go in.

circulation?

bankers of
last

address

Ohio

his

earnings that you have to

bank."

this

to

in

said

have

bankers of

to the

appear

represents the sentiments of the

he

Oklahoma—Senator

plause.]

feel that I have a right to

must

when

selling for 85, 85 to 87.

Mr- Johnson is not affected in

State, and I regard him highly as a citizen, I am not saying any¬
thing against him personally, but I

else

Well,

:

were

assessment

plus to stand

Ohio, Senator Owen—who comes from Oklahoma, my own

In

they

is what

by bankers who knew their business.

the fact that it was not run

Seventy-three.

Jones

the
a

Chairman

of

be

committee of three,

be appointed by

one,

the*

Chair

committee to personally present this resolution to the

Senate Banking and
sist

shall

a

one

member

Currency Committee, said committee to
from

each

State

here

con¬

represented,

[Motion seconded and carried.]
The

Chairman:

I

will

appoint

that

committee

them, I would say, at the Association meeting.

-

and

Some

notify

time

be¬

fore the adjournment this committee will be announced publicly.
There

ought to be

of that kind:

some

first, to

little time taken to select

see

if they

can

they are the proper men to represent

go;

a

committee

and, second, to

see

if

us.

What is the further pleasure of the meeting?

[A motion was made and seconded that the meeting adjourn,
and the Chairman announced

that the meeting stood

adjourned.1]

American Bankers' Association
Eighteenth Annual Meeting, Held at Boston, Mass., October 7,

TO

INDEX

TRUST

Relation of Gov't to Trust Co., S. W. McCall

-

Regulation of Reorganizations, Roberts Walker
Report of Executive Committee

Report of Committee

-

-

-

Protective Laws

on

-

-

-

The Relation of the

COMPANY

J9I3

PROCEEDINGS

Page J7J

Report of Committee

Page 174

Report of Secretary

Page J77

Detailed

Page \78

Address of President Poillon

Legislation

on

-

-

Proceedings

-

Government

Page 179

-

Page J 80

Page 180

Trust Company,

the

to

Page 179

> *

By Hon. Samuel W. McCall, of Massachusetts.

Mr,
no

President,

Ladies

Gentlemen

a,nd

danger of talking over your heads,

platform.

As

:

I

in

am

will take the

I

It will be necessary for me to do this, to give

myself this advantage in altitude, in order to talk td you
on

the level, to use the

of

committees.

your

for

expression of the Chairman of
I

suppose

addressing gentlemen who

chief qualification

my

associated

are

one

with

the

of

ness

banking

business

of

banks.

This

since

the

loans

to

find

has

been

merchants
of

we

which
I

as

are

even

than

ject of your business—is tlie fact that I know practically

the head of the

very ,little about it.

bricks, and from that time until

no

of

While ignorance of the law excuses

yet ignorance of his subject

man,

modern speaker.

a

know

from

all about

this

in

listening to

a

business,

who have learned it

talk

man

anything about it,

it, and gentlemen

use

the hard knocks of adversity,

faction

qualification

a

You do not always want instruc¬

tion, but sometimes you desire to
who

is

take

a

morbid satis¬

who

does not know

I have not had very much to "do with Trust
I

think I have had
called

was
was

a

balance of

a

balance,

kept in red ink.

which

It has

fitted to manage, or have

agement of

it

became

happened
it

on

more

occasions

Trust

for convenience

suppose

happened that I was

never

anything to do with the

man¬

so

could happen to it,

insolvent, then I have
receiver for

a

both

on

don't

know

of

a

the

depositors

was

returned to its stockholders,

.

that

discovered

not

do.

So

can

do

a

*

both

"tou

certain extent,,

and

usury,

rates

when he

gasp

me as a

myriad-mipded

anything.

that

a

said to

I never
Company

Trust

to

tion

they

For instance, when it acts

on.

or as

are

carried

that

on

your

by

as

exec¬

trustee, they have the regula¬

that the law imposes upon those functions,

suppose

corporations

relation

to

to

would

to have

grace

against

one

a

long

con¬

time

of

to-day

They acted upon

were,

the

or

whether

individuals.

law—the

I

regulation

considered

was

was

alleged, against

relative, was

or some

a

something of

him

banker.

rate

a

dis¬

and it was said

that

one

of

his

The other trades

shut up and the Jews were barred out from enter¬

ing into almost all other trades, but banking was open,
and

they entered into banking, and "in

proceeded to
church

achieve the

tpat calling they

ownership of the world.

The

have made the first effective regulation

appears

tL somewhat drastic fashion,
prohibi/ed altogether. But that has

of usury, and they did it in

been

a

very

suppose
other

difficult subject for the law to deal with.

And

I

that has been due to the fact that money is like

commodities

generally: when there is

commodity and

to

this

be

is

had

a

cheap.

fact in

good deal

little demand for it, then

But,

on

little of it and

a

a

very

a

the other hand,

fixing the rate upon money.

the law has not yet, by

any

when

large demand, it is dear.

means,

But

got rid of usury.

I

had my attention called the other day to a Loan Associa-*

tion, through
made

under

a

report of that Loan Association which it

the

law, from which it appeared that that

dollars of interest and

regulation of the general and ordinary busi¬

common

of the most celebrated of Roman Emperors,

Augustus—it

uncles,

it,

me—is

i

man

a

banker in the family;

a

association's income consisted of




a

have been panic ratesmake

regard them.

that you had in mind when this subject was assigned to
the

for

This did not put bankers in very good

repute. ' In fact,

it

guardian,

over

The ordinary going rates of in¬

which

came

be met with.

is

as

have had

we

effect,

cent, and 100 per cent, was a very

there is very

regulation is concerned, Trust

regulation from the character of the transactions

or

form

fix rates:—that is, all the traffic would bear—and

50 per

Companies in most of the things which they do, receive

they carry

now

no

terest in the old times appear to

their

utor,

in

particular effect—to bring banking within the range

no

and supervision of law.

the

that

deadly

more

we

with

notes

promissory note, to hold

struggle, sometimes of

of

as

of

and

And

signer, because they were engraved upon

because interest was

-

almost

something

far

I

paid in full and the

were

Trust Company strikes

creature

have

could

And it

whether

in pride or iii sorrow—it happened on

that

Company

Now,
sort

two occasions

trust company.

a

.occasions—I

of neglected opportunity.

yet

that by courtesy

sum

infer from this my life has been, to

may
one

Companies.

Trust Company, so long as it was a going

been appointed

say

a

But when nothing further

concern.

when

a

I

of

form

world

the. principle upon which railroads some years ago were

\

.

stant

modern

than

Credit

trade itself.

as

The

•

older

is

forms of promissory

familiar

are

old

management of Trust Companies like this—upon the sub¬

the

it,

civilization.

of

as

the oldest

connected.

are

borrowing and lending

a

are

you

understand

beginning

very

some

which

with

banking,

some

seven

or

eight thousand

seventy or eighty thousand

BANKERS'

172

dollars

in fees;

interest

as

made

day,

in

in

considered as

be

cannot

exercise of

interest, it is

me.

their

obligations

that there is a field here open to

the great banks should recognize

the great banks; that

institutions

public

as

whole

the

to

tional banks, with national charters, with the

society ; that they should not make their section of society horizontal and take simply the top, but they

should

the National Government, and that

Now, the large borrower has no difficulty upon the sub-

little

the

me

might be conducted, perhaps, with reference to

~

ticular crop, and

that your large bank could have

the small borrower—not

entire safety,

and

the poor man whose income barely supports himself

and

his

made with

be

can

family, when he makes

latioh.

The interest eats him up until he finally meets

We have such

Now

the

class of

ing

"

large banks

meritorious and

honest

shark, and they would put

this would

doing

by

rescue

a

a

•

Now,

hundred-million-dollar bank does not have the influence

can

sioris

your

fifty-thousand-dollar bank does?

that

come up,

Why, it is simply

but

very

interests;

narrow

They are not under

own

State.

use

the red lights and green lights, will produce illu-

upon

the minds of you people, at

a

distance; that

different from the real things, while to those

who are upon the front seats or behind the scenes certainly

it is because you are

it

would

produce

no

illusions

them.

upon

if you

do not get the attention that they should have.

do something of this sort,

your

obligation to society,

you

to recognize par-

will riot only do

35,000 bills, for

some

Congress.

All the business cannot be big business.

of

In order to have

think it is well for the banks to take

a

and to recognize all kinds of business.
some

of

the upper ether,

provide that

a

single

And then our legislation there, especially that

penal sort, is framed by lawyers, by men who have

a

they draw up a law as they would draw up an indict- '

section of society

'

ment for the purpose of being sure to catch the man that

they are after, and without thinking that the statute is

big banks—they are too much in

really imposed upon the liberties of the whole people,

they look out for the minds of men, they

Now if they are drawing up an indictment against you

the trouble with

as

We have

introduced in

same

big philanthropists is

our

instance,

actually been District Attorneys in their own States, and

And I

The trouble with

We

things pressing at Washington that they

many

good to others, but I believe you will do good to yourself. \

big business you must also have small business.

they

government

a

have so

can

as

We have a government set

supposed to come in contact with very few people, and

ticularly

com-

great big country, cover-

distant stage, and when you have

are very

because you are supposed to support not very great inter-

ests,

a

situated some clever. contriver of the" people, who

so

at

Washington, when matters of legislation

good many cases,

hundred million people, that men act there from

a

up on a

it happen that your great, big one-

how does

regu-

a necessary

multitude of legislative matters

distance from their constituents.

would be in their

their own busi-

which would popularize the institutions.

ness

a

but it is

the eyes of the people for whom they legislate

people from the money

a crown upon

a

necessary;

ing up at Washington from

with finau-

cial destruction.

At the best, it is

evil, to my mind, in

loan upon which he must

a

purposes,

Now I have not the utmost confidence in national

a high rate of interest, is unable to. ever catch up.

pay

•

State banks operated purely for local

Very

department to look into these meritorious cases.
often these loans

country for National purposes, it might be well to have

department of charity, hut a

a

some par-

easily understand how, when

you can

you have national banks operating throughout the whole

department in charge of skilled men to look out for

a

conditipns, which fulfill the functions of banks,

Why, a bank in Mississippi might have very different requirements from a bank in Massachusetts; its business

is forced to go to the money

They are the ones who really suffer.

Now, it seems to

own legal

whom sickness, or in whose family

man, upon

sickness has come, and who

lender.

corporate banking institutions, having" reference to its

shop, the school teacher, the honest and self-

supporting

should have in

we

each State, and reserved to each State, the right to in¬

with

ject of usury; but it is the small borrower, the man

powers

conferred under those charters subject to regulation by

the top to the bottom.

make it perpendicular, and from

From my

Coinpanies.

Companies. I do not mean that it is undesirable to have
uniformity of laws in the different States relating to
Trust Companies, so long as the conditions in those
States are similar. But I think that we Should have na-

50 to 70 and 100 per cent.

Now, it occurs to

some of its powers, conferred apparently for

purpose, regulate Trust

point of view I think it would be a great mistake for the
National Government to undertake to regulate Trust

And oftentimes loans carry

way.

other

no

tothe Commonwealth of Massachusetts, from

indirect

even

not made

that while the charge was

so

and

CONVENTION.

our

a

good deal the

have full minds, but they forget

for breaking and entering, why they will say in one

that

great libraries and museums are but aggravations

place that you got into the window, and then that you

to

a

man

go

well with empty stomachs.

men

who

may

is in want,

and that full

to organize and base their charter
to make

riien self-supporting,

to become

minds do hot

I think jt is well for them

or

broader basis

way

at least, encourage theih

that

upon a

" Thev

Relation of the Government to the Trust Company."

imagine by that is meant the National Government.

I
It

is

spelled with

is

acquiring, the mania for regulating everything, and I

suppose the

big "G," and the National Government

meaning of tliis subject is, the relation of the

National Government to the Trust Companies.
I

do

not know

stitution
power
way

Of

any

,/

that would give the National

Government the

to regulate the Trust Companies, but it is the

For instance, through its

Through

the

practically regulate

a

so that they
way

power

power

to

the power of issuing notes,

this

because

instance : the men who framed that

certain evil in

guage,

cation to-day that they never dreamed of.

suits a lawyer.
yer

And when he consults a lawyer, the law-

is not able to tell him what the law means,

Now let me give you a little illustration of my experience

in Washington.

One day, in the confusion of the

conference report which was the last stage in the enact-

State insti-

ment of that particular piece of legislation.

It was to

could

the effect that members of Congress should be prohibited

State banks fifty

from giving information which they might have received

prohibitory tax of

by virtue of their office, if that information should have
any

effect upon the value of stock or bonds, or upon the

value of merchandise.

banks, and that tax

funny thing.

not for the purpose of revenue,

but shhply for the purposes of prohibition,
I think Very
likely the National Government-might, by the indirect




Jt is aimed

broadly against combinations, that a, man to-day hesitates even about entering into matrimony Unless he coii-

so

10 per cent, was imposed upon the issue of notes by State
was

mind which possessed them,

broad language, very magnificent lanbut somewhat vague language, and it has an appli-

and they used very

to establish post

a

power of taxation of
a

And it is

Now you take the

House, I overheard the clerk putting before the House a

impose taxes, it

State institution.

years ago were deprived under

had a

law

will be sure to catch you.

in drawing the statute.

new

offices and post roads, it might regulate any

tution.

-

particular clause in the Con-

of exercising the old and ancient power in

way.

through the cellar, and then that you came down

Sherman Act, for

self-supporting.

Now the subject which has been assigned me is:

a

came up

through the roof, and they allege it in every conceivable

Well, that struck

me as a

very

I didn't know anything about this, legisla-,

tion, and I spoke to the Chairman of the Judiciary Cornmittee, who. had it in charge, and I asked hint to hold up

TRUST

the report a.

Now I

while until I could look into it.
state of facts:

this

found

And he did.

that there

body down South in an agricultural town who
cused of giving away to some

on

some-

was

*

cotton brokers information

lected, and that this information had been used for the

and

it

Now this

of speculation.

found that there

was

was

Possibly there might have been
just to apply to that kind of
so

that.

about

sure

But

law

110

to

apply to it.

although I

case,

a

.,

law narrowly drawn

a

somebody

deemed

not

am

that

England that

tax

they

the

at

there

easy

matter for the corporation to take out the tax.

how

can

law, and the committee had

work and it had framed

United

of the

States

gone

who

should have any

information

wish to create embarrassment or difficulty, but they did
not understand it.

Now we will go back.

:

I believe that

Companies from

State law than

stocks

leave that field to the States.

of

or

merchandise, who should divulge

information should

that

mously

adopted

House,
went

be

State prison.

years in the

passed

by

the

liable

Judiciary

the* House without

to the Senate and was

over

for

from

debate

Judiciary Committee of the Senate,

the

Senate unanimously,

was

adopted by
some-

member of Congress

a

officer of the United States

an

the

unanimously,

with the exception that

body discovered that technically
not

of

unanimously adopted by

the

was

unani-

was

Committee

five

to

one

A bill to that effect

Government and

that the law would not apply to him, and so they adopted
an

making it also apply to

amendment,

Congress.
not

It was discovered

that

germane,

the

member

a

that that amendment

conferees—the

two

of

was

conference

committees

appointed by the House and Senate on this

amendment

did

cial

rule

not

have jurisdiction

unanimously adopted

was

it,

over

by

the

so

a

spe-

House and

going to

we are

get better regulations of our State banks and our Trust

law.

bonds

But

Why, it is simply because they did not

bonds?

coupon

by virtue of his office which might affect the value of
or

and

hundreds of millions of dollars paid out every year upon

to

general statute that any officer

a

they

at the source apply to the tens and

taxation

.

should have been a

but

source,

that he gets them by check, and it is a very simple and

had been tried,

man

in

port of everybody who is to receive his dividends,

concerning the cotton crop that the Government had col-

purposes

the English income tax system and they have found

out

didn't find out that in England they have an accurate re¬

ac-

was

17a

SECTION.

COMPANY

therefore,

And,

think

I

wTe

are

from

national

Government

the

should

The State banks have had

relations to the National Government and relations that

cordial,

were

and

credit of

the

</ivil War broke out there

credit,

if it had, it

or,

cent, basis, or even
a

the

banks.

of being taken

money;

it had

12 per

a

It needed

right upon the point

were

The State banks of the country

away.

joined together and loaned the Government at
about half what

the

upon

higher rate than that.

a

Gold payments

large loan.

at least,

was

When

national bank in the

no

The Government could not get

country.
no

was

rate of

a

the Government rate had been in

previous transactions; loaned the Government

its

than

more

the total bonded capital of the banks making loans and

paid the Government in gold.

Now I claim that

was

was

a

There

highly patriotic act that the State banks did then.

mistake made, however, by the Secretary of the

a

Treasury, for the cost particularly might have been very

Senate, giving those conferees the jurisdiction, and the

greatly less than it

conferees had made the final

banking will do and leaving this gold in the vaults of

be passed.

report that the bill should

I thought of it just the moment I read the

bill, and it struck

that it

me

was

dangerous thing to

a

put a load upon our Government; that publicity

was

of

the banks

Instead of doing what modern

was.

they could have it

so

Secretary of the Treasury

as

against their

notes, the

was so much of a sound money

that he took that gold from the banks, and instead

man

the very essence of our Government; that a member of

of paying by check, took it and put it over the country

Congress should have

his constituents;

and

paid

right to know everything he knew, and

was

dissipated and

that

they had

that

a

no

secret from

member of the Cabinet
should

eminent

the

a

not

officer of the Gov-

any

be required

peril of going to jail.

I stated what I

or

to give

information at

So when the matter

came

House had not heard

pricked; up

their

The

anything about it before, and they

ears—the

did—and they

press

finally

notes, in

cost of the

an

a

bill.

ington.

The bill

was

killed by a vote of practically 2 to 1.

of

it

But

that

have

we

riecessity
the

would

a

Tariff

four men,
your

tax.

if

bill, unless

a

are

how

going

that

that

way

received

it

thousands

There is lots

bills

of

very

discussion.

that

important bill

committee of

a

passed.

out

of

like

three

or

Take- the report of

to-day about the difficulties that Trust

That is up.

on

many

and in that

committee

see

men

given

escape

bill, is confided to

Companies

to

so

not

through.

to get into regarding

Taxation at the
comes

about.

source.

There

committee—probably they

the income

had

we

greatly,

I

and this gold

gold,

unable

were

to .make

to

an

redeem

issue

believe, augmented

of

war.

sum

up

by saying that national

important wherever institutions

operation within the limits of

mistake to have

than

are

common

a

regu-

operating '

a

State, that it is

code jurisdiction at Wash-

You cannot imagine Europe, which is
in extent, being governed by

we are

rnent.

a

general

code of law

larger

You

code
can-

and have good govern-

The best possible governments that have existed

have operated in small countries.

try;

no

a common

of municipal law from the Hebrides to Sicily.
not have

we

have

certainly

must of necessity

order to

preserve

tie

great

We

are

common

transacted

a

great coun-

interests

at Washington,

which

but

in

freedom in this country we do not want

Now it is easy

to yield any more power to that overloaded Government

gentle-

at Washington than is necessary, but we want to keep it

are

are

some

from

a

dis-

where it

can

be exercised under the

eyes

of the people,

trict that does not have any income, and are not subject

and only in that way are you going to have reaUpopular

to

self-government.

the bill

any way—and those




gentlemen have read

up

*

the

throughout the country; but that wherever institutions
have

laid the whole thing on the table, which killed the whole *

That shows how legislation gets

are

actual

banks

and

so

So I will simply
lations

the

gold,

greenbacks, which

thought the bill meant, how I thought it

against real representative popular government.

was

up

their

the contractors in

Additional

Regulation

Legislative

Reorganizations.
By Roberts

The title of this paper
tents.

mate

the

British

suggested by
result

same

statutes

the

statutes

called

the winding

" Reconstruction

sections

are

and reorganization

occurring in that large and, for

fit

of

the

the

parties

in

The

most

court's

in

some

terpretation by

successive

To

sum

developed

present

ica. \ While

derived

we

growth
have

revision and

re-

and

polished

be

state

does

182).

not

and

liquidator,

law from Great Bri-

new

corporation

to

England.

in

same

decisions

of

the

both

either for

To work in

to

tributory

without

a

and imperfectly,

the exist¬

reorganization or

In Great Britain

that companies are often wound up either

There

reconstruction.

without

for

regard

three

are

general

winding.up; (A) by the court; (B)

plans of

methods

for

sec.

to

By

On

such.

Petition

the proper

adopt

just

the

sub¬

any

con¬

determine

to

wound up by the

Thus

even

so-called,

a

necessarily

interposition

by

the

is

court,

which

much of the voluntary proceedings

as

with

this

sees.

197,'198).

continue
made

for
may

it deems

as

It is in

connec¬

"voluntary" procedure that provision is

the Act for

the transfer of the assets to

a

new

another company and for the acceptance of securities,

more

holder

plan

Court.

the

submitted

be

may

by

itself,

or, contingent*

or

(Comp.

who has

to

Act

or,

in

some

cases,

by.

an

official

be

purchased

determined
or

by

any

person liable

to

solidation)

means

"stockholder,"

without

damages

recoverable

are

reasonable

cause,

even

for

though

by

(Con--

(/), 269).

presenting
no

special

damage can be proved (Quartz Hill Gold Mining Co.

vs.

Eyre, 11 Q. B. D., 674).

Of the divers grounds for wind¬

ing up, the following

illustrative:

That

the

are

company

has passed

a

resolution

to be wound up;
a

statutory report

or

meet¬

ing;
that the number of its members has become reduced

companies and

number

seven

in the

(two in the
case of other

case

that it is unable to pay its debts; and

5.

that

court 'is-of

opinion

equitable that it be wound up.




that

private

companies)

4.

the

of

it

is

just

(See Halsbury,

op.

;

stock¬

price to be

a

statutory arbitration.

a

' '

"

'

(O)

the

third method is

tary winding up.
"when

Supervision

of the

a

really only

has

company

make

may

a

Court.

variant of volun¬

In the words of the statute,
by special

resolution resolved to wind up
an

or

^

extraordinary

voluntarily, the court

order that the voluntary

winding up
shall continue but subject to such
supervision of the
court, and with such liberty for creditors, contribu-

tories,

sort of

or

such

just "
The

that it is in default for

below the statutory

This

on

special

by

or

re¬

The malicious misuse of such .petitions is
discouraged by
that

A

assess¬

See Companies

Act, 1908, sees, 123, 124, 125, 263

192).

sec.

the liquidator at

by agreement

Winding Up Under

(A contributory is

1908,

properly evidenced his dissent from the

under certain circumstances require his inter¬

may

.:

the company

creditor present, prospective

" contributory,"

tributory"

3.

a

voluntary

or

contrary, explicit provision

(Comp. Act 1908,

made in
or

ment in the event of winding up; for our purposes, "con¬

2.

court

are

193).

sec.

.

1.

a

At

inspection
a

creditor

any

for

of

At any stage in
or

it has when companies

comprehensive

est

them

committee

a

188).

(Comp. Act 1908,

(Halsbury, Laws

(A)

■

fact

creditors.

second liquidator or

a

or

apply

may

reorganization

the

of

the

etc., from any such other company—in other words, for

/-Y;.- vV:".

ceiver.

meeting

a

and

appoints

company

voluntary winding up" does not

tion

Going into these somewhat

390).

of

in detail:

any

be advertised

The

a

(Comp. Act 1908,

"

voluntary; and (C)

subject to the supervision of the court

by

•

liabilities,

question arising, in which case the court has all the

any

acquire

court

Observe both words.

seem

any

'

of

reason

must

the liquidator

up,

powers that

it would

■

majority.

-

reorganization.

England. 5:

the

'

by

notified.

assembles

(Comp. Act 1908,
winding

Kingdom

ing British statutes for the regulation of liquidation and

of

who

liquidator

pro¬

countries;

United

has actually

one

summarize,. briefly

me

intention
be

corporations,

The business

vocabulary.

Let

:

or

Such

to the court

relating

law

of

law,

fixing

meeting,' the' creditors determine whether to apply

business law, and emphatically the

disclose widely different juristic conditions.

British

(B)

must

suitable for conditions in Amer¬

much the

very

statutes

In

Voluntary Winding Up.

authorities

our common

independent

fixed

creditors,

the court's power is practically complete.

up,

stitute

may

the

our

discretion.

other

are

(corporation,

company may be wound up voluntarily

Unfortunately,

Parliaments.

statutory

our

been

cedure

but

of

Costs

(subject to the right of appeal

Upon special resolution

such

tain, the course of

make any

binding upon all parties concerned.

are

•■'/X v"

sec.

their

make them any the more

The court may

.

may

They have also enjoyed in¬

courts and careful

the

by

court's

conclusions

cases)

o

enactment

or

concerned

the

Thus they have had the bene¬

of England.

court.

open

petition,

the court need not be bound by the will of the

developing step by step with the general corpora¬

tion legislation

the

grant

stockholders)

of law known from 1862 until 1908

(Consolidation) Act, 1908.

or

substantive rights of the classes of creditors and others,

the Companies Acts and since then as the Companies

as

the petition is then elaborately advertised,

on

hearing is had in

among

They are not independent enactments, but

part, coherent body

the

dismiss

corporations in the United Kingdom of Great Britain

and Ireland

and

129; Assurance Companies

sec.

23.)

sec.

order that it deems fair and appropriate.

the

up

Comp. Act 1908,

1909,

Hearing

appropriateness

the

Act

shall approxi¬

we

seasoned group of

a

country.

our

often

are

Acts," and regulate
of

theme,

considering

thereof for enactment in

These

seriating all the legislative

selecting

by

and

Y. 395;

is Broader than its actual con¬

Instead of examining

possibilities

Walker, of the New York Bar.

others to apply to the court, and
generally
terms

and

conditions

(Comp. Act 1908,

procedure is

very

sec.

as

the

much the

winding up, above outlined.

same

as

creditors

stockholders,

if

those

or represented at a creditors'

present

called, become binding
itors

and

and

soon

as

cit.,

120).

all

.

on

by

by

or

thinks

classes

the court

the

or

of

in

first

arrange¬

the company

three-fourths

all creditors

stockholders

sanctioned
•

between

or

in

Compromise

ments among

approved

court

199).

and its

value

of

meeting duly

classes of cred¬

stockholders

(Comp. Act 1908,

as

sec.

-

The

court

sanction

may

holders

postponed

been

have

to

N.

Mining Co., 44 Ch. Div. 402).

of

State's

(Re Alabama,

Orleans, Texas & Pacific Junction Rail. Co.

Ch. 213).

[1891],

state

be most interesting

would

We must pass on to

treated, but time does not suffice.
consideration of the

the

A
or

practicability of such laws for

States.

the United

*

other

valuation,

all

of

recent writer:
"

In

.

They are the owners of the prop¬
.

at least, are expected to bear

capital

is considered necessary to put the corpora¬

tion

its feet.

It does not -always

have found many

The stockholders

They

may

times

and

money,

tory,

you

holders

And the bond¬

nearly always unwilling to take physical

through foreclosure, because that would
finding the
It

to their shoulders.

their

through

contribution

some

If that is not; satisfac¬

more.

no

shift the burden of

of their

willing to furnish so much

are

take the property.'

may

are

possession

So,

to the bondholders, who are

say

'We

creditors:

the
new

seems

capital entirely

new

cheaper to compromise.

committees they
well

as

to

as

make

to

agree

accept a reduction

claims, arid the reorganization, plan is forth¬

with declared

effective."—(World's Work, Aug., 1913,

387).

p.

Many of
condition

because
courts
we

work that way,

practice that they can, if they will, get off much

easier.

of

think

free

is

it

we

But

barter

free

not

are

needs.

perhaps most of us,

us,

and

trained

have

let

us

is

convinced that a

are

whether

preferable,

untrammeled,
in

business

that

because

or

the

for

our

or

because

our

humble

matters,

legislation

enough
assume

;

simply

method

British

of

reorganizing under the authority of the court is theoreh

ically desirable, and then speculate

on

avail

The

ourselves

so

of

these

methods.

of the British procedure

feature

sanctioned

by

the court,

how far we could
most

prominent

is that the plan, when

becomes

binding

all

upon

parties interested, regardless of the nature of their
security
We

or

are

a

statute effective?

we

England has but one

have forty-eight plus Congress.

of the Commissioners of Uniform

dicate how slowly general enactments,
and

The

State Laws

even

dispassionate sort, become law.

Bills of Lading Act has been
Uniform

Until,

security-holders.

registration, we shall have no point of departure for

Federal

in¬

of the most

The Uniform

adopted in nine States, the

Sales Act in nine States, and the most success¬




—a

reorganizations.

of

regulation

very

of

did such

Even

limited class, from which are excluded the host

corporations
National

than

in

engaged
banks),

bankings (other

insurance,

trading

manufacturing,

mining,

and, in short, practically all the corporations except the
carriers of

only fractionally, if at all, by act of Con¬
■

Still

'

■

/;

.

difficulties

graver

several

The

Thus the problem

freight and of intelligence.

be solved

can

States

from

arise

prohibited

are

Constitution.

our

from

impairing

the

A tantamount restraint is placed

obligation of contracts.
on

Congress by the prohibiten against depriving persons

or

corporations of property without due process of law

(Sinking Fund Cases, 99 U.vS., 718, 719, quoted by Har¬
lan, J., dissenting, in Canada Southern vs. Gebhard, 109
U.

S., 540).

Hence,

forcing upon
tion

or

from

of

objections.

legislation

nance

suing

new

plan of reorganiza¬

a

In this country

that would debar

instances

Commonwealth

do not counte¬

we
a

of

of

such

single bondholder

The

legislation are few.

Pennsylvania

1862

in

sanctioning the issue by the Union
income bonds

would be subject

securities

the contract contained in his bond.

on

Recorded

statute that took the course of

any

dissentient minority

a

emission

an

vital

to

passed a

law

Canal Company of

in lieu of fixed-interest bonds, and

provid¬

ing that bondholders not signifying their dissent within
three months

legislation

should be deemed

sustained

was

on

to

This

have assented.

the theory

that it did not

impair the contractual obligations of the old bonds but
statute of limitations,

was

more

and

really preserved the rights of old bondholders

nearly

analogous to

a

but

required them to set about enforcing such rights with¬
out

delay.

statute of

The
a

court

careful

was

to

vs.

"no

that

say

State, passed after the bonds were issued,

subjecting the minority to the provisions of the
ment

without

their

Union Canal

Co., 109 U. S., 401).

agree¬

(Gilfillan

consent, would be valid"

The British stat¬

utes, being unhampered by constitutional restraints,
ceed

upon

courts

pro¬

precisely the opposite theory, and the British

may

lawfully

offer

to

minority

a

"Hobson's choice."

bondholder
.

Another American experiment was an act of Kentucky,

passed

confronted at the threshold with the problem:

Parliament, but

drab

ojd

of their dissent to the plan.

how make such

efforts

their

with

therefore, we have some form of Federal reincorporation

scheme of reorganization is pro¬

a

practically all the burden of providing whatever new

in

v

colloquially described by a

as

and in theory,

on

Congress may not interfere directly

relations

their

in

gress.

time,

voice.

however.

1

the practical situation,

In this the stockholders are supposed to have

little

erty,
r

is

in plans

But, steering a

failing enterprises.

us,

many

*

due

posed.
but

and

monopolies

that figure directly or indirectly

prudent course among all these,
to

Even in the case of railroads and other

generally.

interstate carriers,

corporations as are properly amenable to Federal control

for rehabilitation of

familiar

inter¬

have numerous acts

We already

securities,

matters

first,

involves,

as

It is not that we are wholly lacking in

governing purchasers at judicial sale, corporate objects,
of

far

so

agencies and, second, bankrupt¬

and its

legislation exist, it manifestly could apply only to such

statutory- regulation.

nature

-

or

'

reorganization is, with us, a matter of free bargain,

nearly so.

tions

to examine the reported

just how each business situation was

and to learn

cases

Save in

commerce

will at

Yet this, too, is

cies, Congress cannot validly legislate respecting corpora¬

pulsory and without alternative. '
It

country ever had that the

our

" obsolete and exploded,"

is

Congressional legislation.

avail.

without

The terms of these plans are not so much

Navy

the

rights idea

suggest

once

surprise as is the fact that these terms were com-,

a

of

Secretary

Fixed-interest obligations

have been turned in for income debentures

1

Those, however; who agree with the greatest Assistant

(Re Empire

ceived shares In satisfaction of their debts

New

satisfactory to New York.

Debenture-holders and creditors have re¬

14S).

Texas would look with suspicion on a bill

uniformity.

Co. [1874],

(Re Western of Canada Oil, Lands & Works
W.

is imperatively desirable, but

of such an act would be sure to move

Local peculiarities and policies are here

slowly.

very

should be

involved, making it almost idle to hope for concert and

charges

created

newly

States

the

all

in

That a

States.

forty

reorganizations

corporate

the general passage

First mortgage bond¬

to American ideas.

rather shocking

governing

uniform

approved and forced upon creditors that are

been

have

Some plans

interested.

different classes of persons

the

statute

and as is fair and reasonable as regards

would approve

twenty years, has been

Legislatures of

the

by

adopted

such as a business man

postulate that the plan is

the

the Uniform Negotiable Instru¬

which, after nearly

Law

ments

been

has

enactment

ful

reorganization

of

sort

any

proceeding (so, we are told) on

always, however,

plan,

175

SECTION.

COMPANY

TRUST

in

amend

1896,

corporations.
statute.
duress

permitting

the

courts

to

plans for the reorganization of bridge

If
upon

There is
the

the

court

no

recorded

under

minority,

no

this

case

law

lawyer

review

of resort to this
could

would

exercise

think

using this statute, because he would know that the
cise

of such

a

the other hand,

what

the

power

and

railroad

or

would be unconstitutiopal.

of

exer¬

If,

on

the court's function is merely to approve

majority have already agreed upon,

resort

to

176

the

BANKERS'

is

court

amend and

to,

superfluous.
alter

certainly

what

And if, third, the court is to

the

there is still

plan to the court.

road

incentive

less

*

submit

to

'

■

made

.

an

reorganized

one

objections of prior mortgagees.
Circuit

the

The court

through Mr. Justice Brewer pointed out that

and that the court likewise had

affect
vs.

prior

liens

(Merchants'

no

power

Loan

materially

& Trust

to

a

simple

recourse to the courts

give every

many

man

his

swiftly and without impediment,

day in court.

Pacific

vs.

teen

re-

security-

a

Boyd

statutes,

more

but

But

need

we

:

creditor

was

property.

the

pro-

This argument would not be

after

years

fact

a

granted

of

recourse

foreclosure

time
and

the

methods

recent

case

is, with

and

vindica-

As the bench di-

unanimously accept the

here

was

reorganization,

The lapse of

our

illustration

not

But

quarters

some

(22S U. S., 482)

another case, a striking

vided five to four,

in the event that

they consider themselves unjustly dealt with by
posed reorganization plan.

forward

majority's conclusion.

construction system is that it would give small

holders

move

tion of the value of one's day in court.

to

Company

the British

the

tion

of Northern

Chicago Rys. Co., 158 Fed., 923, 92S).

One pf the reasons urged for
adopting

non-

in

of financing ; neither tends to help the reorganiza-

It is, I am sorry to say, the fashion in

State legislature could indulge in any such procedure

no

difficulties

new

to sniff contemptuously when it is said that

this order aside.1

set

throw

leave unsupplied the demand for better
legislation.

It will also be recalled

Court of Appeals

Both

way

first lien upon the entire property in spite of the

gage a

Both seek

Neither pretends to constrain the

They illustrate the tendency toward

rnort-

new

valuatiqifc

assenting minority.

directed receivers to lease the rail-

properties of several companies to,

in New York.

to limit the amount of new securities
by the commission-

of the Chicago Rail-

case

company, and to permit the lessee to make its

that

amendment last year adopted

the

Company, the Federal Court at Chicago entered

order which in effect

vigils of the Public Service Commission, is very like an

majority has already agreed

It will be recalled that in the
ways

CONVENTION.

a

a

against
in

the

where,

case

fif-

labor-and-material
the

reorganized

prosecuting his

heavy

claim,
sub-

assessment

mentioned but for fear of having it said that it had been

mitted to by" the stockholders, were all
persuasive against
the claimant.
But the Supreme Court afforded

slighted.

and

if

Resort to the courts is of

the court

the

of

root

We

court.

cannot

grant relief.

matters
are

and

all of

us

no

Hence I have gone to

considered

the

powers

to

unjust programs, it

afford

use

of

would be of

as

some

benefit.

remedy the evils lamented.

publicity,

i

commissions approve or tinker

ynot force

unnecessary

the adoption
Save

part of.

We

can

plan

as

confusion

in

the

canonized.

minds

of

those

(and of this I

am

very

modified bankruptcy statute,

pears

to be impossible.

■/;;We

are, nevertheless, experiencing some

to carry us

17, 1913,

or

who

in that direction.

the

thing ap-

it

creditors

and
us

of

all

terms

classes
under

are

the

afforded

plan.

The

strongly of the English method

are

willing to abandon their
decision bids

statute has

ently cannot be enacted here without amending

our

Con¬

stitution; that anything short of the British plan adds
nothing beyond publicity of dubious value, and in many

urge

skeptical)

state

By this all too hasty survey it is at least
indicated, I
trust, that the vigorous, efficient British statutes appar-

is

cases

"

the

adds to The perplexities and harassments

efforts

of

conscientious

habilitate discredited

bankers

properties ;

attending

endeavoring to

and that

our

re-

existing

practices give every creditor and stockholder his day in

steps intended

The Missouri Act of March

placing reorganizations of carriers
among the




the

any

dissentthere

to

done;

plan, but

Thus

doctrine,

fair to bring us further along the road toward the
really
vital features of the British acts than

of statutes like the British Reconstruction

possibly

a

thus

the

interest in the corporation;
gnd the Boyd

modicum

a

unless

by stockholders unless they

-

can

have courts

single security-holder, assenting

a

ning, to accept the plan

Acts.

a

for

of assessing certain stockholders upon .reconstruction,
for settlement with creditors often involves contribution

minority, notha

foundation

ruling, indeed, reminds

The paramount feature of the British acts

cannot be had in the United States.

as

•

,

the

equitable opportunity

But

The upshot of the matter is that, unless the court

ing is to be gained from such statutes beyond

or

prise,

deterrent

a

passing legislation which would merely

be given power to foreclose and debar the

of

the

place of lamentations, without empowering the

a

court to

v;

no

of

laid

loosely, that in reorganizations the shareholders
may not
participate in the advantages of the reorganized enter-

perfectly ready to concede that

if submission of plans to the court will act

there is

relief

important value

court and preserve the right of free
as

soundly American and democratic

lation is arbitrary and monarchical.

barter—propositions
as

the British legis'»

Reports-—Trust Company

Committee

cSStuittee, * Ralph W.

ol Executive

C.Ue,,;
abje t0 bring

Chairman.

>

'

•

Company Se.ction: .

Members of the Trust

Jir President and
.

.

Executive Committee it

behalf of the

On

continued growth of

to report

able

is a pleasure to be

the Section during

the past

September 1, 1913, the membership was 1,363—an
increase of 112 over the number a year, ago—and it now embraces, almost without exception, every Trust Company of importance in the United States.
'
The period which has elapsed since the last Convention in
Detroit has been one of great activity in Trust Company affairs,
On

year.

during the year an

and
have

of

eration

unusual number of

action, which have

for

up

come

important matters

had the earnest

Committee.

your

consid-

,

States convened in regular sesThis made a special amount of.
work for the Committee on Protective Laws, which has been
very
active in looking after the laws in which Trust Companies were interested,, both in a positive and negative way.
The
Chairman * of the Committee will make a report to the
Convention, and we shall learn from it how much they have
been able to accomplish.
This is one of the very important
committees of the Trust Company Section, and your Chairman
can bear testimony to the faithful, persistent and efficient services of the members who compose the Committee.
legislatures of forty-one

The

sion

Spring

the

At

past winter.

the

during

at

Section,

held

matters

brought

Meeting of the Executive Committee of the
Briarcliff, New York, on May 5, among the
forward for attention was the "Model Trust

consideration for . sevCommittee a skeleton
this law has been Iprepared by General Counsel Paton, and
after revision by the Special Committee appointed for the purpose it will be submitted for your consideration at this Con-

eral

This has been under

Law."

Company

^

the request of the

meetings, and at

of

vention.

that

far as local

so

trust some

we

Section.
'
Banquet of the Trust Companies of
was held at the Waldorf-Astoria, New York,

the

by

dorsement
'

in the laws of the different
conditions will permit, is so apparent
action will be taken to-day toward its en-

of uniformity

importance

The

States, in

Third Annual

The

States

United

the
on

Trust Company
from nearly all
the States in the Union were present, and In the opinion of those
in attendance and from the accounts of the daily and financial.
press this occasion takes rank with its predecessors as one of
the notable banking dinners given during the winter in New
York City.
The success of these affairs strengthens the feeling that they should become a regular feature of the Trust
Company year.
In no other profession is the fraternal spirit'
desirable than among the .officers of Trust Companies.
The serious and
instructive character of these gatherings of
Trust
Company representatives, with their community of interest, emphasizes in the public mind the importance of the
functions which Trhst Companies are organized to fulfill.
It

than six hundred and fifty
officials, bankers and other representative men
More

8.

May

forcefully to the

attention of the Finance

Com-

Representatives some of the
impractical provisions of the bill and methods of collection of
the tax, and to urge the importance of their revision." Our
objection was not a criticism of the principle of the Income
Tax Bill, nor of the rates of the proposed taxation of incomes,
but related solely to the burdensome nature of. some of the
administrative provisions of the bill—and we earnestly requested that these matters be rectified before the bill became
a law.
The latest published revision of the bill shows that the features to which objection was made have either been very much
modified or entirely eliminated, and so far as we can judge
the bill as it now stands is more reasonable in . its provisions
for collecting the tax, and is one under which the Trust Companies and banking institutions of the country can do business,
The currency problem is once more prominently before the
nation. It seems very probable that some sort of legislation
will be enacted before many months on the lines of a "Regional
Reserve Association," and that Trust Companies and State
banks will be admitted to membership on practically the same
terms as national banks, if they elect to join the Association,
Until the bill becomes a law it will'be impossible to determine
exactly what its provisions will be. Therefore, it is not considered necessary for this Convention to take action in the
matter to-day, and it is suggested that the Section may properly pursue the policy of waiting- for developments, pending
^further enlightenment.
' At the Annual Convention of the Trust Company Section In
Detroit the topic, " Advantages of Co-operative Publicity of
- Trust Company Functions," was designated on the program
for discussion. Owing to the length of the proceedings it was
not reached and has been placed on the program for to-day.
A resolution was passed by the Section to refer the question
of co-operative or'educational trust company publicity to the
Executive Committee for further consideration.
! At a special meeting 4of the Committee in New York City it
was decided to inaugurate an "Educational Publicity Campaign " and to have a series of articles prepared, describing the
various services rendered by Trust Companies, and to be made
available for newspapers generally throughout the country.
Certain articles were also to be provided which were adapted
to newspapers in different important cities, and which were
to be written in a manner to make them acceptable to the

mittees of the Senate

,

Section.

more

and House of

editors, either as " news "

matter or as special articles to

be

used in connection with the customary Saturday financial reviews, or in Sunday supplements. Assurances were received
from influential members of the Section that such articles
would be gladly used by the newspapers of the cities in which
they resided.
'
Attention was directed to

the fact that the Trust

Companies

spending tens of thousands of dollars in newspaper
advertising. It was considered, therefore, a natural and proper
conclusion that the editors of reputable newspapers which re-

are annually

ceive this patronage would be most favorably inclined to giving, from time to time, space for . the presentation of purely
educational or " news " articles relating to Trust Company
the accounts of the Trust Company Section.
functions and activities, and of real interest to their readers,
In reference to the Income Tax, your Committee, at a conand which would make the regular advertisements of the Trust
ference
at headquarters in New York, appointed a sub-comCompanies more effective than heretofore. It was also appremittee to draftj a
circular-letter calling to the attention of
dated that the usual newspaper advertisement does not admit
the membership
of the Trust Company Section the need for
of much description of Trust Company advantages, and that
immediate effort to accomplish modifications in what'seemed to
these could be more forcibly and clearly set forth in the news
be the impractical provisions of the Income Tax Section of the
columns without reference to any particular Trust Company.
Tariff Bill then before the Finance Committee of the Senate.
"
A series of nineteen articles upon live topics was prepared
This
mailed to each. member of the Trust Company Secin connection with this'campaign by Mr. 0. A. Luhnow, pubtion under date of May 8, requesting them to at once commulisher of "Trust Companies' Magazine," and these were subagain state the fact that they are entirely
self-supporting, and their finances do not,in any way enter into
be desirable to

may

was

clearly as possible the

as

by Trust

many

of its clauses—and the

the

was

Finance

the

lines

that

various

sub-committee to the

ascertained that the members
at work upon the
Prominent merpbers' of the Section, - by co-

sources

it

Bankers'




was

Section were actively

operation with the Federal
can

membership of the Trust
which came the Senators

sub-committee.

Trust Company

indicated.

the Government.

having been referred to a sub-committee
Committee of the Senate, a supplemental letter

Section in the States from

composing
From

properly be discharged by

bill

sent by your

Company

of

more

the

Thereafter,

interpretation
administration
of duties that it would

great burden of

involved in the performance

should

seem

'forth

be encountered
endeavor to follow the provisions of

Companies in an
impossibility of a proper

and expense

of

Representatives, and set

difficulties that would

bill as framed—the

the
of

and

Senators

their

with

nicate

Legislative Committee of the Ameriof Commerce of

Association—with the Chamber

mitted to your executive officers, passed upon and approved
before being printed and distributed from the office of the Seeretary of the Trust Company Section.
Then followed the announcement in the December JournalBulletin that the articles had been prepared and were ready
for distribution.
The response was immediate.
The alert Trust Company
officers all over the country took up the campaign with great
enthusiasm, and the first edition of two hundred copies was
speedily exhausted, necessitating a second edition of the. same
number.
At the meeting of the Executive Committee at Briarcliff, on
May 5, the Chairman was able to report that the nineteen
articles had been published, practically without expense, with
more or less frequentcy in fifty-six different newspapers through-,
out the United States.
,
The success of the " Educational Publicity Campaign " was

178

so

BANKERS'

apparent

that

it

seemed

"

second

Trust

impulse"

Company

at

that

had

Executive

your

time

who

men

to

would

be

used

original articles-in their local
newspapers.
this

idea

these

a

also

new

have

country.

series

been

The

of

very

number

increased to about

fourteen

newspapers

the

a

the

nineteen

was

prepared,

all

parts of

the judgment

been

of

of

special

held

at

your

Committee,

benefit

to

meetings

headquarters

the

in

New

of

Committee

the

on

Association

the

to be

and

Association

proposed

which

Boston

19,

October

on

circular

a

letter

the

be

to

the

last

been

tion.

mailed

The

tember

to

drafted

was

every

proposed

member

revision

Journal-Bulletin,

quently

it

detail

is

not

what

is

was

and

necessary

for
that

the

Trust

printed

is

stated

in

of

also

the

Chairman

letter

to

except

in

other

and

of

the

the

of

groups

President

States,

of

the

three

years

office

as

the

A

Sec¬

of

the

immediately after

the

Sep¬

Association

President, and the Presidents
limiting our representation

of

oflicio "—thus

the

to

for

of

one

a

here

to

of

executive officers of its

own

of

the

requirements
In

American

of

the

reference

Bankers

Trust

to

Association

Company

restriction

in

the

Court

of

"

«

Sections

Council,
tion.

shall

and

All

be

under

subject

to

By-Laws

the

the

or

directions

Standing

shall, before becoming operative,
Council.
the

The

Executive
the
of

Sections

Executive

of any

funds

make

the

written

the

That

State

Section^ and shall

Sixth.

of

by

the

control

the

be

fixed

officers and
employees

.General

Secretary

Under

the

supervision
the

the

and

stitution
the

the

would

Executive

Executive

the Association
and

ent

to

Committee

to

objectionable

believe
and

to

be

the
its

the

such

small

control

The

appropriation
of

Con¬

new

the

over

of

em¬

policies

granted

dues

by,

paid

to

Company Section,

of

exists

now

come

Convention

between

will

American

Trust

pres¬

impair

and

the

toward defeat¬

contains

such

radical

what

Company

Bankers'

we

Section,

Association.

Ralph

W.

Bankers'

Laws Committee

been

in

regular session.

tion

extra

have

Protective
entire

sesisons

exceeded

in

Committee

year

the

of

Governors of several
bills

proposing
similar

any

established.

Congress

has

States

financial

period

Association

has

Legislative Committee




a

to

Currency
look

two

in

the

Postal

after

They have been passed

of

banks,

the matter of

secured

the

Federal

Referendum holds

Iowa

and

de¬

has, in at

Kansas

up

oper¬

enactments

to

law

localities

continues

which

in

to

restricts

which

exert

there

is

a

Colorado, Florida, Ohio, and
general banking
laws, providing for
changed pre-existing "laws as to meet
the

of

Washington

permitted
in

to

the

Washington

any

in

this

was

,

which

matter

in

act

bill

a

Company

respect.

passed

advertises

of

the

which

that

fiduciary capacity.

pro¬

it

preparation

of

will
wills

Our

rep¬

claims

instances

the

Committee

has

furnished

contemplating supervisory legislation
Copies

the

various

States

tive.

in

which

Supervision

was

banks

of the

in

laws

already

effec¬

—

has

progress

been

made

'

.....

■

•

in

the -matter of
ascertaining
facts regarding the
inheritance taxes in various
States and also

in

the

matter

of

providing definite

administrators,

etc.

such

service

left

sults

in

is

many

The

guarded

the

the

by

compensation

States

many

the

discretion

the
of

for

amount

court

The

State

of

debentures

ing

savings

word

"

of

passage

Idaho, has

by

State

Trust"

has

desired

been

legislation

mortgages

approved
Bank

of

provided

banks

departments,

the

State

for

and

for

securing

the

the

Trust

for
re¬

safe¬

South

Caro¬

issuance

Companies,

the

payment

of

bonds

maintain¬

thereof

investment of savings
deposits

Commissioner

and

such

providing

for

the

by
by

deposit

:

Trust Companies,
indicating a desire

upon

and

several

States

facilitate

or

and

further
in

mortgages with the State Treasurer.
.Iowa has conferred additional
powers

to

fees

officials

lina, Ohio, and Washington.
or

executors,

of

apparently unjust discriminations.

of

use

In
to

by

the

farmers'

have

passed

handling of

legislation

loans

secured

by

farm

property

guarantee.

-The Committee finds

a

great deal of proposed
legislation detri¬
mental to Trust
Companies is introduced by
legislators who lack
reliable information
regarding Trust Company affairs
and Trust

Company administration.

is urged

in

with

the

securing

in

occasionally

legislators

immunity

in

from

several

undesirable

such
If

rare.

into

come

their

which

are

Committee
and

advice

desires

,

to

recognize

Trust Com¬
con¬

States,

step

a

legislation

and

the

Secretary of this Section
during the year.

legislation

closer personal

accomplished.

The

and

Instances

bacause of improper motives

thank
for

long
will

the

their

have

General

assistance

Very respectfully
submitted,
Herbert

along

Committee

on

American

Protective
Bankers'

A.

Rhodes.,

Kauffman,
Hulbert,

Sam. W.
Lynn

the interests of Trust Com¬

■

new
so

Trust

no

have

Federal

'

leads the Committee

ago

Savings Bank

institutions

C.

a

of
are

courts.

D.

and

acts

is

legality.

E.

Commission

matter

The

Coun¬

During practically the
work

the

selling stock,
not
undesirable, and was
Investment Bankers' Association
its committees and
General

P.

at

in

securities.

years

bonds

the

been

in
the

The

legisla¬

since

similar lines.
The

State

several

Counsel

forty-two States have

The

number

National

of

been

of the American

and

was

In

tact

Association, Trust Company Section.

During 1913 the General Assemblies
convened

the

or have

pany officials would

Cutler,
Chairman.

Report of the Protective

of

legal advice in

be

States

to-day with great

doing protect

so

the

would

Section

our

you

take action

which

and° by

interests of
the

£he Section;

before

Constitution

best

of

and

made

this bill was
introduced at
instance of lawyers who had
lost business because of
Trust
Company activity.

the

management

not

as

legislation

changes .in

Kansas

of

1

this

passed

resentative

on

the work

features,

consequently

such

of the

subject to

officers

the

and we

revision Of the

a

and

all

destroy the strength and virility at

co-operation which

that this

and

occasions of importance.
firmly of the opinion that the
suggested

is

be recognized in

confidence

of

large amount
by the members of the Trust

parent Association;

ing

the

Council .from

changes would tend
the

lessen

over

might injure its initiative

Your

but

direction

is

Executive Committee;

your

and

Section

Council,

and

Council

to the supervision

In

•

..

employees of

which

States.

the

Council."

Constitution the

seriously

Section,

Executive

be subject

Executive

control

ployees is vested in

of

the

shall

and

present

of

Section

by

followed

regulation

test its

State

that

Some

Salaries and compensations of
Secretaries and
shall

In

the

shall

Executive

"

Sections

'

Sky " laws.

over

States.

to

section

have

In

Section

8.

it

secure

against

•

"

Section

to

was

sale

directing the

several

banking authoities direct

requirements of the Federal
authorities

Conven¬

disbursement

Blue

of

up

order

supervision,

funds

provision " for

Trust

Arkansas, Tennessee,
Connecticut,

annually to
Convention.
The

financial

"

as

supervision

Utah

Executive

any

define

wholesome
influence in the direction of
securing adequate State supervision.

at

report

General

reasonable

the

General

be approved

provided."

so

By-Laws.

to

of

Regulations

make

and

Council may

needs

any

shall

Council

taken

in

furnish
of

have

corporation

many

♦

supervision

States

regulating the

of

vides

Proposed Revision, Article X, Section 2.

of

and

in

deposits

particular

disbursement

clearly

to. legislation

their

effort

sentiment

California law, and
being tested through the

are

Section."

the

seemed

changes

concerns

question actively and has
changes in many of the
proposed bills, and
one
case, Michigan, brought the law
before

ation

ex-

as

allotted by the Executive
Council:

it

legislation, but

independent

.••

some, sort

has

least

representation, with full powers of mem¬
bership, is not too large to properly
bring before the Executive
Council

more
as

it

some

sirable

member/

selection,

present, and that such

to

the

attention

which

secure

far

so

institutions

desirable

America, acting through

cil,

rep¬

three

any

local

laws

think

needed

"We

of

order

■'

number

debentures

feel most
strongly that our active, progressive
Section,
having 1,363 members, should in all justice
have a direct

resentation

or

Investigation begun

.

terms

Sections,

to

with

his

•

:

„

period

their

York

in
Arkansas, California,
Georgia, Idaho, Maine,
Iowa, Florida,
Michigan, Missouri,
Montana, Nebraska, North
Carolina, North
Dakota, ?§butb Dakota,
Ohio, Oregon, Vermont, West
Virginia,
and Wisconsin.
*

Conse¬

to

expiration

in

have enacted in
has written
State

it

popularly known

District of Columbia,
the Vice-President of

Association,

Association, ex-Presidents

of
of

and

all

to

quo.

enacting

In

States,

desirable

instances

status

The Executive Council shall
be composed of members
elected

the

verbiage,

about

Companies

or

•

"

by

New

Chicago

.

encouraged
States
where

copy

explain

in

pending bill

application of the law in

regarding proposed

on

quote briefly
reference to the reduced
representation on the Exocutive Council:, Under the
present Constitution, the President.
Vice-President and Chairman of the
Executive Committee of
your Section are ex-oflicio members
of the Executive
Council.
Proposed Revision, Article
V, Section 1.

from it

In

banking

forth

the

hands.

your

the

appeared

the

a

in

official

no

the

Currency Commission, directing

features

to "the interest
of Trust

exact

Before

interview

an

.

Con¬

Company

in,'full

in

sets

the

Committee has made

legislation.

have

by

and

this

so

national

The Committee
has
steadily pursued its policy of
attention
of
State

meeting,

which

banks,

have

Convention of the

explicitly the opinion of the Executive
Committee,

has

the

presented

the

At

in

of

additions

the

Spring Meet¬

changes

will

8.

Committee

since

as

influence

Companies.

Companies.

York

well

to -several

been

considered to

Executive

Constitutional Revision

in

September

the

be

can

Trust

of

ing at Briarcliff, to consider
stitution

to

one

substantial

Four

been

as

effort

Chairman

and

printing them has

panies

meeting, its Chairman had

hundred—in some
cases, the entire series
tbirty-three articles has been
published—and the campaign/

of

in

in

by

In accordance with

articles

extensively used in

of

Committee

appreciated

successfully

CONVENTION.

H.

ReyburNj
Dinkins, Chairman,

Laws, Trust
Company

Association.

Section, *

-

179

SECTION.

COMPANY

TRUST

month to the

each

the

To

Trust Company

Members,

Association.

Trust

Respectfully submitted,

ending August 31, 1913.
The
furnished from the General Secretary's

31, 1913, is as

report for the
Financial Statement, as
office for the fiscal year

Report of
To

follows:

Credits :

.

-

Vv:

'l1":'

•

Executive Council,

appropriation of

4

"

September 12,

.i

1912..
sale of

Trust Company

Laws

sale of

Trust Company

Proceedings

and stationery
Banking Statistics

Account postage

of State

Sale

.90

$8,580.00

Disbursements :
•

$3,692.50
Salaries.

•....-

November,

.-'.v...........,..

•

,

Rent

655.46

Meeting...

stationery and

Postage,

Proceedings

..............,

printing

Fries....;....

Gold

and telephone........
retiring President.......— ......

badge

Petty Cash

The

9.40

with

appointment of a special committee by
tee of the Section at Briarcliff Manor,

3.90

$7,588.56

and Sundries...................

to

balance of

credit

transferred back to

$997.44 has been

the Association. Certain bills amounting
were received too late to be included in the dis¬
the year, but the statement shows, that we have

general funds of
about $300

bursements of

appropriation by nearly $700.
for Trust Companies" is still in de¬
mand.
It has been necessary to have bound, in the past year,
a
hundred copies, and the credit balance to date is $1,121.06.
There are still four hundred copies printed, but not bound, and
I suggest that I be authorized to have a hundred or two hun¬
dred of these copies bound and that the price, which has been

kept within our
The

of

book

*' Forms

active cam¬
paign be
This would
the Section a fund for other purposes, such as publica¬
tion of books and otherwise as might be decided upon during
reduced to $10 and that an
undertaken to sell these new volumes.

regularly $15, be now
leave

the year.

,

/'

.

Membership in the

.

Section now numbers, as

of' 112

ing

1,363

dealt with the

major activities of

the Section during

the

that I have endeav¬
ored
of my office and
have endeavored to
make the Section of increasing benefit to
its members by correspondence, by articles and notices supplied

year,

jt is only necessary for me to report
to continue faithfully the routine work




the Executive Commit¬
on May 5th, to secure
the correction of these administrative details, if possible.
This special committee, consisting of Messrs. A. A. Jackson,
John H. Mason and Isaac H.1 Orr, considered the whole situa¬
tion in a most comprehensive manner, and brought before each
member of the Section the need for immediate action in secur¬
ing a revision of this section of the law.
The thanks of this"
Section should be accorded this Committee for its prompt and
energetic work in

this connection.

resolution passed at our last annual meet¬
the Committee on Legislation have had pre¬
pared by the General Counsel of the Association, Mr. Thomas
B. Paton, a draft of a Model Trust Company Law.
.This draft,
which is to be considered as suggestive, merely, has been dis¬
Acting

ing

under a

Detroit,

in

cussed

at

various conferences

lution

of

the

Companies Magazine,

•

been placed upon

the

consideration and discussion.
the current number of Trust
Copies have been printed for distri¬

of this meeting for your
been published in full in

has

It

and by reso¬

of this Committee,

Executive Committee has

program

at

of September 1,

companies, a net gain for the fiscal year
companies. The annual address of the President and the report
of the Executive Committee as prepared by its Chairman, hav^
1913,

the

bution

.

and respon¬

most onerous duties

were

5.50

$997.44

The

provisions of which

imposed upon Trust Companies in connection
collection of the Tax at the source, resulted in the

sibilities

Credit Balance

the

almost en¬
the Executive Committee of
during the year.
r
tax in the Underwood Tariff Bill,

Committee this past year was

inclusion of kn income
the

under

43.10

Legislative Committee
Telegrams

the

192.64

Traveling expense

of this

work

conjunction with that Of
Section, which met frequently

1,097.02
125.00

retiring President

Loving Cup for

Executive Committee

tirely in

710.72

1912..

resolution;

of the following

shall annually, at its
first
meeting, appoint a Committee of Five as a Committee on
Legislation of the Trust Company Section.
The President, the
First
Vice-President, and the Chairman of the Executive Com¬
mittee shall be ex-oflicio members
of such committee; the other
two members may, or may not, be members of the Executive Committee.
Such Committee shall serve until the appointment of their
The

921.40

Executive Committee

the unanimous passage

successors."

131.92

Convention expenses..........

1

Company Section:
Legislation was first created by this Sec¬
1911, at its annual meeting in New Orleans,

Resolved, That the

"

7.00
43.10
35.00

Legislation.

Committee on

tion in

$8,500.00

....,

Committee on

Secretary.

of the Trust

the Members

The

Louisiana, by
By

S. Babcock,

P.

submit herewith my

beg to

I

Gentlemen:

V

v

•

in

Bankers'

Journal-Bulletin of the Association and by
and other papers interested

information to financial
Company matters.

furnishing

Section, American

year

ending August

Babcock.

Secretary, P. S.

Report of the

and

this meeting.
Respectfully

•
..

submitted,

F. H. Goff,

•'

'

R.

W.

0.

C.

Fuller,

F.

H.

Fries,

W.

Committee

on

American

C.

.

'

.

Cutler,

Poillon,

"

Chairman,

Legislation, Trust Co.

Bankers'

Association.

Section,
■

.

.

\''

Detailed

Report of Proceedings.

Eighteenth Annual Meeting TRUST
COMPANY SECTION, Held
MORNING -SESSION.

•

and

by-laws

mittee

Tuesday, Oct. 7, 1913.

the

The

Trust Company

ciation

convened

Boston,

Mass.,

in

on

Section of the

Paul

Revere

Tuesday

American

Hall,

morning,

Building,
1913, at 10

to

o'clock, the President, William C.
Poillon, of New York, in the
chair. .<•"
Y->. ■
;.Y
■:

its

Company Section
to

Our

order.

Walter

E.

C.

will

be

opened

with

prayer

Smith.

by

the

in

Rev.

mittee
PRAYER
,

By the Rev.

Walter E.

Clifton

Smith,

Dorchester.

Almighty

God,

to

whom

all

We

'

ily

Cleanse

may more

are

and

open

all

desires

in

our

hearts

by

Especially do
convention.

them

the

we

inspiration

and

the

them,

continual

to

O

Thee

help that in

may glorify Thy
holy name, and finally,
by
everlasting life through Jesus
Christ, our Lord.

Thy

in

all

Thy

your

all

the

To

the

Members

The

record

C. Poillon, ViceCompany.

of the Trust Company Section:

of

hold

permanent

place to-day

than

ever

dence and esteem.
There
the

late

will

for

York

could

Mr.

be

no

John

greater

sole

executors

this

than

public

the

trustees deemed

such

disposition

interests of the estate.

that

the

with

discussed
third

annual

States
on

and

was

of

the

the

acted

banquet

held

at

May 9, which

of

close

of

this

meeting

the

J.

dresses

Wade

were

present at

dred
of

most

Union.

Company

interesting.

Francis

There

Murphy,

were

over

whose

six

Section
with

expense

a

to

or

these

matter

the

attaches

American

banquets, the

of

of

whatever

those

in

Bankers'

entire

to

the

hun¬

Trust

Association

cost

in

being defrayed

attendance.

the

greatest regret that the
Aldrich Bill,
prepared by the National
Monetary Commission after
an
exhaustive investigation of
the leading
monetary systems of
the world, failed to
pass Congress at its last
regular session.
This measure
extended to Trust
Companies the same
which

'

to

as

was

other

The
gress

Federal
is

bankers

not
of

Companies
tem

upon

tions ;

Reserve

considered

the

apply

it also

corporate

real

to

demand

and

fullest

for

same

may

of

commercial
this

consideration

The

terms

that

is

by

banking institu¬

banks
to

may

act

the

as

first

open

time

as

there

national

feature, and

the

has

seems

banks,

to

that
been

be

should

provision

that

special

committee




was

appointed

to

revise

the

the

Trust

made

with
As

de¬

Company

to

this

revised

in

the

present

the

Sections

these

changes

and
were

York,

Revision

Committee

present

Chairman

to

as

Committee.

were

the

The

endeav¬

that

the

representation

had

members

of

are

of

unanimous

in

their recommenda¬

the

has been sent to
each

signed

by

no

be

as

the

three

detail,

affecting

the

the

that

member of

executive

situation

Trust
the

the Trust

officers
in

Company

wisdom

of

and

Company

the

connection

Section,
justice

Section,

with

this

and

of

our

it

by

in

the

Trust

daily

press

Companiees

cities

this
this

of

Section

in

series

a

of

of

the

United

has

brought forth
been

publicity campaign

of

the

advantages

particular

field.

This

Trust

Company, Written by ex¬
hundred newspapers in
differ¬

States.

campaign, which has

their

well-prepared articles explain¬

one

the

behalf

on

No

wprk

more

ever

undertaken

favorable

almost entirely

comment

under

tion of the Chairman of
the Executive
Committee.
our program for
discussion

is upon

year

by

than

the

direc¬

This subject

to-day.

.

The excellent work of the
Committee on Protective
Laws has
continued this past
year with its familiar
tireless
energy, as the
formal report of the
Committee will show.
I desire
to mention the
particularly
great work that is
being accomplished on behalf
of Trust
Companies as a class by the
monthly magazine, Trust
Companies.
Although not an official
journal, strictly speaking,
it has never failed to
uphold in every way the
highest ideals of
our
profession, and is devoted to our cause .of
raising the stan¬
dard of

perfection wherever possible.

Although there
in

the

are

American

more

than

banking

two

field,

thousand Trust
Companies
are
only three States

there

enjoy State Trust Company
Associations, viz., New York,
and Wisconsin*.
It is
greatly to be hoped that
will
follow

Pennsylvania
other

States

legislation

this

that

is

being

lead,

enacted

in

by

view

both

of

all

classes

Since
for

the

the

our

revised

in

his report

was

respect

prepared

of

representation

draft of the

Executive Committee,
in

the

requiring constant watchfulness
banking institutions.

foregoing

better

regarding
new

of

of

National

legislative bodies,

which

we

the
on

there

proposed
the

will

Cutler, will
now

and
set

on

been

revised

Executive

Constitution,

Mr.

has

the

continual
and

State

the

a

part

change

constitution

Council

in

the

chairman of the

that

forth

in

detail

have.

re¬

constitution

is

cause

as a
whole, when our reasons for
clearly placed before the assembled

are

the

a

be carried in national banks
only, should receive the
consideration at this

meeting.
meeting of the Association in
Detroit last

of the

constitution

perts, and published in about

sav¬

trustee of

Company business

banks—and,

This

other

power

the

that Trust
Reserve Bank
Sys¬

undoubtedly

Trust

privilege

as

Con¬

by

provides

the

national

apply for

the

act

to

by

measure

may

At the annual
a

under

admission

This

function

omitted from the act.
serves

for

provides

mortgages.

this peculiar

now

the

education

which

satisfactory currency

country at large.

may

ings departments

delegated

Act
a

practically the

but

privileges

banking institutions.

changes

Executive Council

to the Convention

ent

ad¬

hundred

States

No

by the subscriptions
is

Patrick

the

connection

It

Mr.

the

ing the special functions

considered to have
upheld the

dinner, representing a total number
of one
thirty-seven Trust Companies from
thirty-four

and

the

and

of

connection

Revision

present

on

compaign consists of

unusually high standard attained
by the two preceding annual
dinners.
The speakers were
Colonel George B.
Harvey, Mr.

Festus

the

will appeal

offered

Trust

universally

the

in

believed

of

Companies of the United
Waldorf-Astoria Hotel, New York
City,

the

was

the

the

work

subject of Revising the
constitution comes
before them for action at
the general Convention
on
Wednesday
;
'
One of the most
important undertakings of this
Section dur¬
ing the past year has been the
initiation of

annual

At

Committee

to

confidently

n"ext.

Association, at

upon.

the

delegates when

spring meeting of the Ex¬
which considerable busiinterest and importance to
members of the Section
was
Council

of

whole, and especially

conscientious

Executive Committee who

opposing these changes

best,

Executive Committee of the
Trust Company Section
held
customary spring meeting at
Briarcliff, N. Y., on May 5,
1913, in connection
ecutive

that

revision

The

ness

a

great deal of consideration

by-laws

convince

Sections

Section,

its

*

and

setting forth, in

fact

in

as

a

particularly

of the

A letter

a

of

comprehensive revision,

as

the

.

a

confi¬

specifically provided in his
Trust Company in the
City of New
his large
estate, in the event that his

of

trustee

and

of

in

Pierpont Morgan

the selection

as

proof

before

Sep¬

Trust Company Section
should
adoption of that provision 'of the
revised constitution
reduces the representation
of the several
Sections oq the
Executive Council from
three members to one
member, and the
provision that the Executive
Council shall control
the disburse¬
ment of the funds
provided tyy them for the
use of the
several
Sections, and also the proposed
by-law which provides that the
secretaries and
employees of the several Sections
shall be di¬
rectly subject to the supervision of
the General
Secretary and
the. Executive Council.

Trust. Company achievement has
never
been
strongly in evidence than
during the'past year, and with¬
question the Trust
Companies of the United States

more

and

the

which

more

out

in

oppose the

mercy,

President, Wm,

President Bankers* Trust

Executive

Executive,Committee

tions

their

Amen.

Annual Address of

full

proved most sat¬
the past, and that the
excellent work of the several
Sections had been
accomplished under these conditions.
In this
effort they were
unsuccessful, and the officers and members

Thy

worth¬

Lord,

and

James, the Chairman

to

the

in

isfactory in

of

more

commend

Direct

with Thy

they

obtain

of

are

forth

most

Com¬

work,

radical, a meeting of the Executive Com¬
held at the
Association's headquarters in
New

was

Mr.

ored

Church,

'

perfectly love Thee

name.

assembled

doings, and favor

work

„

to

we

magnify Thy holy
here

Mary's

set

a

This

its

respects most

members

Y

beseech' Thee

servants

their

St.

is

It is

completed

revision.

provisions 'of

hearts

known.

holy spirit that

Rector of

.

revision

Association.

has

relations to the main
Association.

some

with

Bankers'

due the Committee

have given

constitution
their

proceedings

this

constitution,

now

American

the

chairman, Mr. James, for

officers

Section

will

of

'

come

able

The

meeting of the Trust

of the American
Bankers' Association

draft

Journal-Bulletin.

voted to

•

The
Proceedings in detail follow:
The President: The
eighteenth annual

the

and great
credit is

Mechanics'

7,

of

Constitutional Revision

final

tember

Bankers' Asso¬

October

on

Boston, Mass., October 7, 1913

at

Report of Executive Committee.
[The report of the. Executive
Committee is given
of this

on

publication.]

The

page

1.77

,

President;

Gentlemen,

you

have

heard

the

report

of

I

its

Com¬

have the report of the
mittee
on
Legislation, which will be presented by Mr.
Vice-President of the Section.

[We print

report?

'

Dinkins, the Chairman

Lynn H.

[See page

the

Committee on
report was adopted.)

report of the

(The

will

We

President:

The

purpose.

listen to the report

now

of Mr.

Section.

Arthur

Mr.

President:

The

will be received and

The

placed on file.

ordered.
We are very fortunate in having with us to-day a man who
is known to us all, at least' by reputation, the Hon. Samuel W.
McCall, of Massachusetts.
Mr. McCall will address us upon a
subject which is of peculiar interest at this time, " The Rela¬
tion of the Government to the Trust Company."
objection, it is so

Chair hearing no

the Trust
W. McCall.

the Government to

"The Relation of

by Hon. Samuel
McCall's address in

[Mr.

,

President :

very

plain to us all that our

able

to

govern

act,

National

subject.

made it

States governments are far

better

affairs than if we are regulated under any
something which I think many of us think is
our

It certainly has

surely on the way.

clarified my mind on the

.

also

We

171 of this

full appears on page

"
1
Gentlemen, I think Mr. McCall has

publication.]
The

Company,"

have with

to-day a gentleman, a

us

member of the

connected with large railroads
and banking institutions for years, who is going, to address us
in connection with a particularly Trust Company subject—Ad¬
ditional Legislative Regulation of Corporate Reorganizations—
and I introduce to you Mr. Roberts Walker, of New York City.
York

New

"

who has been

Bar,

Additional Legislative

Reorgani?

Regulation of Corporate
Walker.

zations," by Roberts

address in full may be found on page 174.]
Fuller, of Milwaukee, Wis.:
are very much indebted to Messrs. McCall and

[Mr. Walker's

Oliver C.

Mr.

think

I

we

of the members

apprefciation

the

interesting addresses, and

their very

for

Walker

I move that

of the Section be

expressed

by a rising vote.

(The motion was
President :

The

been

has

;

have heard the

favor of the

in

All

made,,

The motion

seconded.)

Gentlemen, you

motion that

motion will pleasO

rise.

growth of Trust Com¬
confined to the past quarter of a
century, it is not surprising to find that the various functions
exercised in the various States are widely different, and while
some States have endowed them with broad powers, others have
restricted their operations to narrow fields, the older States be-,
ing In the main more generous with their privileges than the
considered that the rise and

newer ones.

originally

As

I

Michigan and Wisconsin, to-day their powers
compete with the strictly com¬
mercial banks, in other States, mainly the older States, they
have entered the commercial banking field and in addition to
their other powers are really commercial banks for receiving
deposits payable on demand and loaning these on strictly com¬
mercial paper; in fact, this branch is often the most remunera¬
tive.
Going still further, they have trust departments proper
for the care and custody of money and securities—acting as
transfer
agents for corporations,
trustees under mortgages,
trustees in bankruptcy, performing the duties of executors and
trustees
under
wills, administrators of estates, trustees for
property of persons during their lime time, sureties on fidelity
bonds, as well as buying and selling corporation and municipal
.bonds, and further invading the province of the savings banks
in the older States, in their savings departments, they receive
time deposits and invest them under the restrictions and limita¬
of

tions

meetings it is

uals

you

the

upon




for the execution of trus¬
dead or living, for individ¬
corporations, which includes acting for corporations
transfer or registrar of stock or. in some trust capacity

The Trust Department proper,

or

"in its broadest

(2)

The

\

sense.

Commercial Banking Department,

established

(4)

In

adopted.)

to the Chair de¬
I assume that you all have

which has to do

in

the

demand deposits and

older States

of the Union.

The Bond Department, dealing

addition

in municipal and corpora¬

with established bond houses.

to these functions,

some

States allow Trust Com¬

bonds.
In order to ascertain whether it is possible to obtain successful co-operation, we must find out how many of these functions

panies to act as sureties on fidelity

Gentlemen, it would seem

consider the names.

.

investing them, thus
competing with National and State Banks, and
(3) The Savings Department, which receives time deposits
and invests them usually in some selected or restricted kind of
investments, this being in competition with the Savings Banks

with the receiving of

heard the resolution.

which to write the names of the gentlemen whom
think of, and I will suggest that the Secretary pass around
hat and the names will be given to the Committee on Nomi¬

paper

four

•

tion bonds in competition

President:

Companies can be grouped under

'

either as

as

Gentlemen, you have

(The resolution was
sirable that we

' ',

/

,

teeships in some form, either for the

seconded?

The

-

heads:

action.

Is it

?

all.

to

That a nominating

President :

Further, many Trust Com¬

laws.

State

various

deposit vaults. In order to ascer¬
tain whether any, commensurate advantage can be gainedby
all the Trust Companies which will warrant the expenditure of
time and energy and money to be contributed by all the mem¬
bers of this section, it will be. necessary to examine first if there
is a common ground upon which all can unite; and, second,
what method of publicity can be adopted that will be of benefit

committee of five be appointed by the
President, which committee shall receive names in writing from the
delegates present, from which names the Nominating Committee shall
elect five members of the Executive Committee for the term ending in
1910, and which names shall be reported back to the Convention for
The

the

panies own and operate safe

NOMINATING COMMITTEE

committee appointed for the purpose
of nominating five members of the Executive Committee, and
therefore I would offer this resolution:

its

main idea to

limited so that they cannot

The functions of Trust

Philadelphia, Pa/:
think at this time in our

it was evidently the

institutions that would

States, as in Ohio,
are

usually arranged to have a

Resolved,

conceived,

supplement the func¬
tions of National or State Banks by having broader powers for
the receiving of money or securities and investing or holding
them in trust without the restrictions imposed upon'banks doing
a
strictly commercial business in receiving deposits payable on
demand and in discounting commercial paper.
While in many
financial

charter

Jackson, of

President,

Mr.

been practically

has

(1)
Mr. A. A.

conditions under which we each operate, but
of the different points of view will prove

interesting and instructive.

panies

is carried.

APPOINTMENT OF

Section in discussing

statement

frank

When it is

port of the Secretary

Mass.:

members of this

mutual interest and the interchange of ideas of
men from all sections of the country should be very great.
Most
of us look at these questions through our own glasses, and are

most

Secretary will be found on page 179.]
Gentlemen, if there is no objection the re¬

•

questions of

a

[The report of the

FUNCTIONS.

B. Chapin, of Boston,

advantages to the

The

prejudiced by the

Report of the Secretary.

CO-OPERATIVE PUBLICITY IN

TRUST COMPANY

.

Protective Laws.]
the Section as to
Protective Laws?

to the members

ADVANTAGES OF

THE

Protective Laws.

the Secretary of the

Philip S. Babcock,

Trust Company Functions.

that these subjects have been
deemed as being of interest not only to the members of the
Trust Company Section, but to the Trust Companies at large,
and we shall be very glad to have full discussion of the subject.

-

.

the program for

Cooperative Publicity of

might say

I

the report of the
will be presented by Mr.

v
'
discussion is the, Advan¬

,

next subject on

tages of

178 for report pf Committee on
What is the pleasure of

President :

The

the

The

has finished mak¬
than five members he place
provided on the platform for

that when any member

his

pleasure regard¬
'

the suggestion, and ac¬

The Chair accepts

say

his nominations of not more
ballot in a box which will be

ing

of the Committee.

Report of Committee on
'

cordingly would

will next listen to

Protective Laws, which

in the box.

President :

The

'

We

President :

it would be very

place their papers

adopted.)

(The report was
Committee on

Gofif,

box

have

Camden, N. J.:

its adoption.

move

The

•

■.

Clement, of

John B.

Mr.
I

this report on page 179.]
Gentlemen, what is your

President:

ing this

a

Legislation.

Report of Committee on

The

of the Secretary passing
much better if he would place
on the platform and let the members, one by one, as they
thought the matter over and decided who to nominate,
suggest that instead

to

me

around the hat

We will now

Fuller:

Oliver C.

Permit

adopted.)

President:

shall take

meet during the recess, that we
later this afternoon.

may

luncheon and report

for

Mr.

adoption.

(The report was
The

who

nations,

Winston-Salem, N. C.:

Fries, of

F. H.

move

What is your

respect to it?

pleasure in
Mb.

Committee.

Executive

the

of

Chairman

the

181

SECTION.

COMPANY

TRUST

.

,

are

enjoyed in common by the majority of Trust Companies to
an extent that they can obtain better results by an organ-

such

182
ized

BANKERS'

publicity than by acting
individually,

not

of

I have

as at present.

been

able to compile the
statistics of all the States, but
that Massachusetts is a fair
example of the idea which

believe
I

CONVENTION.

have in mind.

(65)

At the close

Trust Companies in

of

last

year there were

them

sixty-five

Massachusetts, holding in their bank¬

ments

be

nine

had

no

Of

trust

accounts

or

especial advantage in

departments

acted

departments

as

there

were

in

proper

executors,

which

some

sixty-eight

strictly

trust

capacity.

Of

these

assets

of

thirds

of

would

those

over

eleven

the Trust

hardly
lines,

feel

t

million

satisfactory

vised consists

viduals

of

believe

find

an

similar

a

functions.
do

not

situation

in

find
to

a

common

all.

ground

not

which

Furthermore,

believe

would

trusts

are

it

be

would

of

be

possible

and

special

sum

contribution,
assessment,
While
the

idea

of

I

informed

in

amount

of

would

be possible in

do.in

otherwise
in

press

tion

is

must

receive

columns, just
do

not

from
be
of

an

to

believe,

as

any

any

for

amount

proper

of

remuneration
the

on

same

for

we

perform,

this

gratuitous
of

or

It

and

importance
be

may

to

claimed

some

it

might be for their mutual
advantage for those who exercise sim¬
functions, such as acting as executors of
wills, to unite
in
impressing upon the public the
importance ©f
having Trust
Companies act
more

expert

attention,

in

than

matters

more

of

individuals,

investment,

responsible,

feel that the kinds of

and

can

more

produce

advertising which

different sections of the
country
kind of

both

advertising that might

are

prove

because
constant

better

they
in

are

is

upon

which

we

results.

inadvisable to. attempt to advance

free

use

of

the

columns

of

the

all

our

press ;

meet.;

visable to attempt to

is

not

Cleveland,
Mr.

Vice-President

Cleveland

Trust

0.:

President

successful

and

Members

Let

that
Trr**

us

we

are

need

these
the

consider

^mpanies,

as




are

the

subject
to

those.which
from

those

under

offer?

in

the

can

sold

Presumably

be

taught

over

the

at

all
the

counter

Trust

our

goods

It

seems

the

of

There

our

to

us

merit,

attention

problem.

Transfer

Agent, Regis¬
through solicitation

we

The broad

may

life

be

give

is

corporate

serve

every

insurance,

management' of

should

the

service

have

attract

service

the

not

Com¬

doubt

spread

them

out

wide

is

prop¬

the

to

publicity?

we are selling what is
practi¬
selling it at a price which defies

are

we

our

of argument,

us

them

way?

by

proceed
the

to

Two

campaign

of

first

work.

fill

done.

line

A

lot

during

If

of

of

such

in

work

large
find

has

is

it

Cleveland,

land,

secured

it

by

of

to

seems

a

and

it

we

can't

be

along

this

a

own

like

Mr.

doubtless

high
city.
Cut¬

succeed.

articles

and

a

number

to

get

value.

news

the

We

of

news¬

have tried

threats and
articles.

supplica¬

The

make¬

delight in running

our articles along¬
notices and just under the Peruna advertisements.-

means

Ilockefellor

well,

and

but

other

something
well-to-do

to

seems

citizens

especially hope to attract don't get

tell

of

village

that

over

that

us

our

far

in

paper.

In

this

land

of

the

free

we

can't

hope

nothing and to get it all the time.
organization

place itself in

with

hands

outstretched,

have

power

enough

still

further

news

(and

articles,
we

may

be

ful

concealment

headline

to

the

adopt

wares?

benefits

sure

part

arguments

advantage

Then,
upon

be

the

real

the

copy

all

to

right,

the best

gained

by

instead

of

editors,

for

Why

something
should

more,

to

favors?

should

reader
and

for
our

never

and

Vuy

while

I

concealed

attend

the

So,

us

if

to

will

should

to

why

be

up

formu¬
is

do

describe

gasp

care¬

cover

there

publicity,
space

to

doesn't

enable

we

inspired

carefully
he

advantage.

editors

ourselves

Moreover,

is
will

what

Those

place

we

them?

purpose

asking favors,
and

get

is

position of going to the editors

co-operative

plan

to

What

finish), will

alternate

the

is.

obligations

writer will

not

the

begging

il

as

where

the

our

;

Executive

his

man

news

can

secured

of

would

dint, of promises,

publication

find^

man, we

by

has

crusade

our

the

the

really

practically impossible to continually

educational

and

Section

and

how

of

a

widow

who

scale

be¬

view,

the

accomplished

newspapers

to admit that they have

men

But

the Chairman

conducted

the

of

stories

broad

a

been

the

be

in

others)

cause.

on

Companies

could

that

that

from

city in

produce

or

the

vote

my

myself

purpose

property

and

just

and

year,

the, Trust

advertising

give

enthusiastically in

the

submit

good

campaign

every

we

of

co-operation

a

others

in

of

.

I

the past

Committee

degree

it?

the

articles

The other

make

their publications with

furtherance
see

join

noble

a

right

suggested.'

paid

could

the

of

new:s

would

of

ques¬

continuity of income,

Bryan

to

the columns of

them

them

assure

and

have

I

worthy
next

been

inspired

I

if

preserve

Jennings

this, country,
ought

make

We

to

run

in

have

through

to

(William

articles

attention

methods

means

are

the

to

newspapers and other publications.
before the public

ambition

and

that these premises

goods have merit and

bring

right

would

orphan

editors

the

.

and

the presence of

carries

goods

our

noble-minded
and

ad¬

considera-

in

where

and

we

purposes

we

editorials in

under

have

the

can there be any

as

who

or

extensively, let

of

to

we

distinct

and

placing

late

axioms

goods

field

goods which

should

that

may

publicity

whom

advertising campaign

apply

What

and

How

Perhaps he

way.

tion.

come

estates

and

advertised

a

John

Company

three

or

dealing in luxuries;

necessity,

a,

side the legal

the Trust
Company Section :
is based upon two
essentials
First; The goods advertised
must possess merit.
Second: They
must be
brought to the attention of the
right people in the
right
A

Why

not

correct,

tions,

a

Horr,

view.

in

up

assess the
members or to receive
general
general campaign,
because the benefits
would
not be
proportionately commensurate to all.
Mr. A. R.

contributions for

men,

investments

by general publicity.

the

us,

of

the

are

people

it

second, that.it
it

These

are

paper

interests by
obtaining

third, that

to

difficult

a

appointment

property

administration

procure

the

a

class of problems,
two

or

to

advertising the

to

open

One,

But

I

appeal to the people in

radically different, and
especially attractive in

can

lies

ler

their

the
West might not appeal to the
people of the East and
South, and
what might be
especially effective in tfce East
might be consid¬
ered too quiet and
tame for some other
sections of the
country,
When it comes to
making any organized
attempt toward co¬
operative publicity, I believe
that, in the first
place, there is not
a
common
ground

is not

rather than

possesses

that

windows

as the

ilar

rather

then

method

that

deci¬

type of trust company

the

would

the

specialists,

offering for sale?

to

be productive'

by

the

Trustee for bond issues

who

are

unhesitatingly

expect

man,

trained

regard

lieve that'it

I

indi¬

determined by the united
judg¬
or Trust Committee.
When it

expect

return.

organization, should

one

circulation.

distributed-

fair

a

special advertising which

sufficient

appreciable result.

expects

solving
in

national

producing its commodity, and
mainly through its
advertising

commodity to be produced

of

of

space

we

de¬

to

Company, in administering

periodicals

any

referring

service

one

we

our

The

that

being

it

in

expense

in

by

man

tion.

busi-

Associa-'

this

basis that

which

or

gained

Assuming, for the

friendship
publicity through

of

be

field

are

personal

movement

has

affairs

competition.

pub¬

While

The most

world

of

execute,

discuss that question

Clearly this

to

cally

periodicals for

profit.

the

con¬

receives

even

place

departments.

attempt to

commercial

and

are

Convinced

we

little

We

advantages for its
or

A

responsible for

trust

public

sqrne

of

shall

erty.

,

therefore, that

constant enough

should

other

through

organized

obtain

•

News,"

in

time to

are

available.

trar

publicity

amount

efficient,

trusts

group of men with varying experi¬
Trust

Directors

for

and personal effort

with

year

successful

certain

lines

own

cases

remuneration

any

been

special

expenditure of money and

the press

any

a

banking services

large

as

has

any

certain

a

any

past

of

the public?

the

the newspapers

press

general

obtain

its

effort

the

individual

for the

under

requires

the

contemplate

press

this

that

the
of

management

Questions

of

that

be purchased
by our customers,

who

which
of

a

rata

pro

Board

suit¬

a

the merit of the
goods

now

practical.

forth

of

by

or

under the general item of "

advancing its

it is desired

remuneration

put

certain

Occupied,

general,

should

which

to

me

compensating newspapers

space

ness

to

that this organization

the press in

may
or

been

obtaining from

profit without

the

the

that

believe'feasible,

seem

have

not believe

from

own

does not

obtaining from

licity, I" do
seek

not

Company functions

am

quarters

do

efforts

some

for Trust
and

which

I

enough.

the

waste

men

being raised for carrying it out either
by voluntary
which

of

to

,a

in

contemplated

not

pany can

to

controlled

initiate

individual judgment of

is

considered

as

proportionate benefit

regulated

business

entrusting the

viewpoints?

in

equipped Trust Company.

doing

to

lies

of

States

different ways in the various
States, and some of the functions
are
restricted by
taxation, so that what can be
successfully
performed in Pennsylvania is
curtailed in
Massachusetts.
I
have assumed that
any co-operative
publicity

;

f

allowed, I do

quantity and quality

the administration

well
of

power

call

we

trusteeships for other

less money than would
be paid an
individual trustee, the services
of the
officers, supplemented and
controlled by the
judgment of the directors

banking departments, strictly
speaking, in their
Trust Companies, but
permit only what in Massachusetts are
known as "
Savings Departments," where only
deposits payable
on
are

the

ment

allow

time

which
a

other matters of
importance

diversity of
some

and

men,

States would

many of them with a
it is taken into
consideration that

When

but

with totai

is

the reports of other

in

answer

has the advantage of the
whose lifetime is
devoted to

men

dollars, and the remaining two-

of

with

of

(living trusts,

of

offer

administrator,

"

The

trust,

Trust

/

•

examination

counters

merit?

method

alone

we

bonds, transferring and
assignee, receiver, etc.
These goods

as

sion of acts and
policies to
ences

Companies not possessing such departments
like contributing toward the
increase along
.

I

forms

which

executor,

trusts

various

our

Committed to

trust

sixty-five

Companies but twenty-two had
savings departments,

possess

these

were

a

goods

corporate

the certification of

as

upon

The

a

personal

the

scientious attention
when

assets, but with less than half of the Trust
Companies in Mas¬
sachusetts having such trust
departments, the other half would
not care to
contribute to the advancement of those
who

acting in

they

In

dollars

and

found

held

etc.

million

be

Do

only twenty-

they

administrators,

Ohio)

or

able for every demand.

*

organized publicity

an

these sixty-five Trust
Companies.,

service of

wills

registering stock, acting

National Banks, and could not offer
any special induceNational Banks' in general do not
offer, so that

that line.

under

in

may

which

there would
in

the

are

corporations, such

ing departments about three hundred and
fifty million dollars of
These banking
departments were conducted on the same
as

banking institution.

sale

trustee

assets.

lines

every

for

any
we
our

conferring
In

horror

.

at

suggestion that the,tone

bare

the

tlemen :

Cleveland,

our

campaign to get more advertising from the local
Companies.
It is not doing this by threats or, entrea¬

conspicuously

private

a

the

concerning

make

tive

Companies owe it

'Trust

of

power

'

death.

what

know

We

Company

Trust

land

Dealer

trustee by
the making

v*

,

•

•

Financial

paid advertising campaign would
suggestion, as to how such a
might be-handled.
A fund approximating a hundred
dollars should be provided for the first year.
It

campaign
thousand

to

be used to

advertisements from time

for conspicuous

pay

such

in

time

Department.

publications

as

The Saturday Evening

Post,

Collier's, Literary Digest, Scribner's, The
North American Review, World's Work and Review of
The Trust Companies,who contribute should be given
Weekly,

Harper's
Century,
Reviews.

of these advertise¬
ments, so that simultaneous with their appearance local news¬
paper advertising could be used as a supplement to the gen¬
eral campaign.
An annual contribution of 1-1Q0 of 1% of cap¬
ital and surplus from all Trust Companies qualified to accept
trusts would provide the funds.
Any high-class advertising
information

advance

should

agency

as

to

the publication

handle the campaign

satisfactorily,'under the

committee representing the Section. The cam¬
paign would not be burdensome or expensive and surely it
should be effective.
We have something worth saying—why
not cry it aloud through the land?
The
President: Gentlemen, we have listened to two very
supervision of a

had

have

will be more discussion of it to-day.
W. Cutler: I would like to say that these

Ralph

Mr.

both very admirable,

are

pers

for

up

upon

and those gentlemen may

pa¬

to

Company

by

take

to

Section after the field lias been ploughed
this matter and carry it forward, if they desire

indicated by these two papers.
The President : It is quite true,
as Mr. Cutler says, that
the Executive Committee .of the Trust Company Section has
demonstrated that it is possible for us to secure .the co-opera¬
tion of the newspapers in the articles which are not in any
sense
paid advertisements, but which have been of great bene¬

do

so,

fit

to

upon

Are

there

Mr.

F. TI.

I

move

the

the lines

business.
further remarks upon this

-

the Trust Company

mittee

any

that

and

of Cleveland,

Goff,

matter be

this

question

the

mendations.

President :

Goff.
John

Mr.

What

subject?

Executive Com¬

consideration, and that
convention with their recom¬

seconded.)
Gentlemen, you have

heard the motion

Are you ready for the question?
H. Holliday, of Indianapolis, Ind.:

subject

is that?

I

could not hear

made

,

back where I am

The

aye;

President :

these two ad¬
Goff will say
The motion is carried, and it is so ordered.
The

subject

All in favor of the

opposed, no.

NOMINATING
Before we take
the

Committee of




up

presented in

motion made by Mr.

COMMITTEE NAMED

the Chair will announce
meeting directed should be

the next subject,

Five which this

PENSION FUNDS FOR

AND

ANNUITIES

EMPLOYEES.

I. Kent, of New York:

F.

industrial institutions through¬
been adopting systems
aimed to protect their employees during periods of temporary
disability, after the age of desirable retirement, and their fam¬
ilies after death.
The different systems now in actual operation
large number

A

of banking and

have, during recent years,

the world

out

the following:

include

in profits.
(Aimed to enable
sufficient money to protect themselves in
case of loss of position.
Example—Eastman Kodak Company.)
Second : Pension fund made up entirely from payment by the
Employees' participation

First:

to save

the employees

>'

Examples^—Pennsylvania

employer.

Railroad Company,

New

Bell Telephone Company,
Western Electric Company, Western Union Telegraph Company.Third: Pension fund made up from payments by both em¬
Company,

Railroad

Central

York

Examples—First National Bank of New

ployer and employee.

Bank of Chicago, CJnited
Deutsche Bank, Berlin, and the

First National

York,

Association,
Company.

plan made up
Example—Union Savings and Trust

entirely by the employer.

Blanket insurance

issued by life insurance

payment may be made

which

A: Entirely by
B

and profit sharing

Cincinnati.

Company,

for

States Brewers'
Bankers' Trust

.

Combined pension

Fourth:

the employer.

Entirely by the,

C:

companies,

in one of three ways :

Partly by the employer

:

-

and partly by the employee.

employee.

Examples of the first form

of payment—Northern

Trust Com¬

of Chicago, Mercantile Trust Company of St. Louis.
Other forms combining some of the above are also in opera¬

pany

"

tion.
The interests of every

ployees shall be

.

employer of labor

•

demahd that the em¬

contented and loyal, that they be
of the business in which they are

interested in

engaged, and
that they be as free as possible from any fear of the financial
effect upon themselves and their families should they be dis¬
abled or should they die.
Anxiety over such contingencies often
leads to inefficiency through mental deterioration, because of

the development

oftentimes to actual

worry,

consideration

of

every

new

theft, and always to a

favorable

opportunity of employment which

A pension fund

present itself.

served

sufficient

a

will have a

system is aimed to give the

security in the knowledge that after he has
number of years, ordinarily ten or fifteen, he

pension in case of

disability for a certain length of

number of years that he has been with the
company
employing him, and that when old age came upon
him he will have a steady income for a series of years, or for
life.
Further, that his family will receive a pension (for a
reduced amount) for a period of time based upon the length of
service of the individual, the widowhood of his wife and the

time, .usually the

his

of

age

usual plan

sitting.

dresses.

u

it.

employee a sense of

referred to the

next

and at

of us,

may

Ohio.:

-

(The motion was

by Mr.

•

taken under

Committee report to the

The

read

both be

the;work .that has been done
this year by your Executive Committee.
The Executive Com¬
mittee has ploughed the field.
The educational publicity cam¬
paign, which we planned, has been carried forward to a rea¬
sonably successful conclusion.
Articles have actually appeared
in more than 100 newspapers, and I think it is now up to the
us

all

to

practically continuing

right about

Trust

to

Fifth:

hope there

I

and

this subject, a subject which we
.discussion at several of our annual meetings,

addresses

Interesting

was

Mr.

but that he did not think

is the subject of interest
the request of the Committee I am going

exactly popular.

it

without a definite

incomplete

could

The Plain Dealer,

Advertising

He said it was very clear,
Even so, it

ing about.

favor of a

argument in

An

be

sound Cleve¬

business as executor,

'■

of. wills.

=

York:
Mr. President and Gentlemen: Just before starting from New
York I was rather fearful that in trying to condense a large
subject into a few words I might have lost clearness.
So I
handed to the manager of our advertising department my speech
and asked him to read it and see if he knew what I was talk¬

advertising in the Plam

the right kind of

and

about

guardian

its

increase

vastly

can

:

.

Kent, of New

I.

Frederick

Mr.

•

talking about when we say any

are

we

The meeting

has to say.

he

through informa¬
using the private
which Mr. Remsen writes with such care that
will—cannot be invalidated upon the lawmaker's

private law—the

the

;

will come to order. The first
for this afternoon's consideration is
Annuities and Pension Funds for Employees.
Mr. Frederick I.
Kent, of New York City, has made a specialty of this subject for
a great
many years, as it is used in most of the larger banks
of the country, and I am sure we will all be interested in what

to set before the public,
advertising, the vast importance of

newspaper

legislative

o'clock.

•

-

President :

The

to their present clients

to themselves,

for luncheon, and re¬

will now take a recess

subject upon the program

prospective clients

to

,

Trust Company, In¬

President of . the Union

AFTERNOON SESSION.

through the newspapers.
The

we

(Recess.)

cautiously, prudently and wisely. If
we
fail
shall not personally suffer, but the
suffering caused by us will fall to the lot of those we love.—David
Reinsert, of the New York Bar, in the Financial Age.
Most Trust Companies are willing to draw wills free of charge in
consideration of the business they will ultimately get from the testa¬
tor's estate.
But many people don't know it.
Only a few of the
Trust
Companies advertise their capacity for service in this respect

and

Holliday,

H.

assemble at half past one

and me to
death. We

that legislative power
to do so, however, we

use

may

"

\ \

1

of New York City.

John

Gentlemen,

which civilization permits you
disposition of our property after
law

' •

dianapolis, Ind.

COMPANIES AND WILLS.

TRUST

is

will

pany,

Machiavellian advertisement appeared
in the Plain Dealer a few weeks ago:

The following

functions.

A

value of giving publicity to our

trying to prove the

ties, but by

.

Columbia Knickerbocker Trust

\
■
,
Frederick G.
Boyce, Vice-President of the Mercantile Trust &
Deposit Company, of Baltimore, Md,
Frederick W. Fulle, Vice-President of the Equitable Trust Com¬

conducting a
Trust

Company, Mil¬

.

President of the

New York City.

Company,

the Plain Dealer, is

leading newspaper,

of the Wisconsin Trust

Fuller, President

Oliver C.

waukee, Wis.
Willard V. King,

might follow.
In

The Chair will

Committee.

ecutive

for the members of the Ex¬
appoint the following gen¬

consider nominations

appointed to

of editorial comment in

publication might ever be influenced ever so
slightly by the size of an advertising contract, it might not be
too much to hope that the editors would see our ads and be
convinced by our logic.
Thus a modicum of free publicity
American

any

183

SECTION.

COMPANY

TRUST

This

is

most

he

satisfactory

as

contributes

years,
The

latter receiving a pension under the
sixteen or eighteen years of age.
form, but does not cover every con¬

the employee is not protected other than by the
of money he has paid into the pension fund, provided

tingency,
amount

children, the

until they become

toward

it, unless he

has served ten or fifteen

whatever length of time the system may require.
younger men in the employ of an institution are the ones
or

184

BANKERS'

that would
fore

not

tliem.

upon

surance.

and
a

naturally be affected In

serious,
This

Such

his

at

lump

unless
risk

sum,

his

insurance would

in

the

tion

greater
In

In

times

form of blanket in¬

a

his

salary,

should

were

have

cases

After

with

The

opposite

effects

that

often

to ask

employees,
ments
on

by

it

length

of

,

Under such

plan, 3
on

fund, and at the
an

trie-;

leads

the

each

of

equal

the

the panic of

1907,

the
to

systems,

a

pension

of

amount.

round

and

requiring

annuities

practical

paid

warrant

in

by

and

the

the

I

its

service, for the company to establish the
As

the

base for such

an

amount

been

established

at

that time.

It is not

as

the

sum

tact

with
you

I

by the employer based
it

as

develops, it

that may

his

on

profits

be made into

and

the need

I

am

or

cash

for

the

The

-

the

form

years'

of

a

pension

service and

in

before,

of

case

say,

actual

ten

disability after,

at, say, sixty
been

in

ered

a

the

Sixth

upon

a

To

:

in

of

pension

many
or

the age of sixty.

and

death

of

minor

the

of

age

years

clerk

children

in

not

to

a

form

employee after he has
pension and for the number of
years that the

connected with

amount of

service,
or

nation

dismissal

or

served

percentage not

cent.,

the stated

so
of

to

exceed

in

that it is only in the
a

clerk

or

of

his

some
case

death

of

of

a

larger

terest

actual

fifty

the resig¬
he

has

length of time, that he

on

to save.

a

such

a

principal that the

The amount




pension
average

increasing

as

represents

employee

it does

could

with

of

they will be glad to do

I

:

assure

Mr.

you,

is

further

no

to

" Model

the

next

Trust

TRUST

the

American

I

so.

thank

Reynolds,

that

you

have

we

discussion

subject

the

upon

the

upon

last

program,

Company Law."

COMPANY

LAW

the

It

case.

was

law

a

are

endeavoring to

that

and

have

and

have laws

Committee

our

on

ideals

of

was

to

prepared

their

it.

in

That

response1

the part of Trust
Companies,

on

States

some

that

model

a

change

Companies to conform

be¬

particular laws regu¬
others that do have; and
no

in

passed

all

of

the

States

Protective

Laws, which shall raise
Company business.
I find

the Trust

we

to what

as

kind

of

this

has

law

and

of

B.

been

a

prepared

the Executive

law

would

we

under

the

Committee of

like

to

have

Paton, the General

Counsel

of

direction

the

the

of

Section

the

by 'Mr.

American

Bank¬

Association, and it has been published in the last issue of

Trust Companies' Magazine.

Mr.
Is
"

U.

H.

it The

this

at

'

.

the

not

in¬

hope

the length

of

McCarter, of Newark, N. J.:

idea

to

the law

have

I

do not think

Mr. McCarter: If that is so,
sible to have
pass
as

upon

large

have

an

a

it

as

The

should

be,

passed

upon

that it is prepared by

meeting.

to

the

that

Therefore,

particular law.

it

could

sir,
be

I

not

move

be

that

postponed,

Committee
arose
was

carefully
the

and

is

not

practicable to
a

considerable

The

history of
the Legislative Committee and

discussion

time, and much time

time

.

do not think it

Legislative

Considerable

that

so.

meeting like this attempt to make

open

suggested

present

and

I do not believe that it is pos¬

and I

the bill is

fact,

full

attendance here this afternoon

of the merits of this

at

in

meeting of this character properly determine and

this law.

conclusion

was

read

meeting, Mr. President?

The President:

bill

fund

con¬

congratu¬

proposed Model Trust Company Law, I un¬
is taken by many of the delegates here to mean that

sum

practise

Section, and I

.

by the employer.

In

particular

(Applause.)

there

of

of

standard

e ers'

a

or his
family will not
than would be
represented by his
payments,
together with compound interest at
the legal rate.
These additional payments come
out
of the
amounts
con¬
tributed to the fund

receive

are

that

retired

cases

before

that

if

that

the

officers

plan, which fixes

total

per

this

will proceed

suggestions

has

the pension paid at
one or two per cent, of
the
salary received, multiplied by the number
of years of

the

seventy

of

men

passed, and1 then it would be amended to suit their
particular
localities, and we have not had any such law to give them. So

cov¬

before his retirement, less the
number of years that he has
been a pensioner.
These payments figure out under
the usual
the amount of

this

Bankers' Association.

there

when

employee

the company

of

popular demand for it

Thomas
the

here

endeavor to communicate with
legislative bodies who
have passed similar laws in various States that
they ask us for

for life.

an

are

gradually

Is

the

retirement

the

as

if such service has

twenty-five years,

widow
of

as

from

the company,

say,

the

case

a

sixtyrfive for

or

service of

period of,

pension

was

form

work

sure

draft

through

.

the

talk

any

in any extended way.
pleasure to me to be

so

great

very

lating Trust Companies at all,

or

Fourth: To the heirs in case of
death after the completion
of,
fifteen years' service in the form of a
pension to 'the widow
and minor children
for, say, the same number of
years that the
employee has been with the
cpmpany.,
In

a

you,

Gentlemen,

cause

say,

Fifth:

is

Association:

Company Section:

make

I can only say that the
Trust Com¬
the sections in the
Association, is recog¬
factor in the growth of the
American Bank¬
All of us, I am
sure, recognize that in all

reception.

American

we

In

fifteen

say,

to

upon

Bankers'
Trust

thought of doing

legislation regarding Trust

years.

Third:

the

it is thought that this Section
may urge that it become
and that all of the States may

paid in, sometimes with and sometimes
without interest.
To the widow or
heirs, with or without
interest, in
of death before
completion of a stated service,

fifteen

of

always had the strongest support from
you in everything that
we
have brought before the
Administrative Committee of the

Second:

say

Reyn¬

Moines, Iowa, Vice-President

American

called

it

there

President

amount

case

Des

the

law,

ways:

discharge, in

Arthur

few remarks from

a

close

the

very

for your

derstand,

him, or to his heirs, in.some form or an¬
Under the ordinary pension
fund system such
payments
required in one of the

First: Upon resignation

Mr.

Presi¬

any charge at all over the work of
the Associa¬
tion, will do anything in their power to aid
you in your work.

The

be paid back to

following

be

MODEL

other.
are

Association,

-

the

us

the

When the
employee
is asked to contribute
to the
fund, it does not represent a real
charge to him, but results in the accumulation of
an asset that

must

he will be very glad

who have

the

of

one

as are all

be kept solvent.

can

is

paper

gentlemen, that the officers and the Adminis¬
Committee of the American Bankers'
Association, the

trative
men

is

fund

Kent's

con¬

*

Association.

which

payments

Mr.

be glad to have

gentlemen

no

potent

assure

gether with

fund

all

Now, if any gentlemen desire

membership

Bankers'

we

variable

a

late

neces¬

that, to¬

of

that

sections

topic,

so

us.

Bankers'

would

and

you

Section,

necessary to figure back in this
manner, for
otherwise those
employees who might be nearing the
age limit
could not be retired on
any livable basis, and the whole
purpose
of the fund would be
destroyed for many years to come.
It is
not claimed that
any such method of figuring in the
establish¬
ment of the fund is
entirely scientific, but actual practise has
shown that it is near
enough
the

to

upon the success and the
prosperity that you have
shown not
only in your increase in
membership, but also in
the general character of
the work that you are
doing.
I know
a
great many of your members
personally, and I recognize
among you some of the brightest and
brainiest men that we
have the honor to have in
the

it.

effective, it is

principle

that

sure

of

Reynolds, of

Association.

of

to figure the interest, as
payments would have
undoubtedly
been made to the
employees had the fund been operative that
would have
largely offset the interest.
In order to have the

correct in

work

exceptional ability who are
operating along individual lines of work in which
they are the
most deeply
interested, and I have come in rather

sary

fund

all

we

expect to

assure

ers'

fund

a

am

American

President

nized

employment,

system

satisfaction

called upon to address
you.

or

requires

the

not

pany

usually taken which represents the
payments that would have
been made by the
employees from the date of their
the

greater

honor, gentlemen, of having with

Arthur

did

I

pay¬

employees,

the

afternoon and had

satisfactory.

fund

I

to

Acting President

Mr.

day and credited to the pension
year the company pays into the

that

serv¬

their

(Applause.)

Mr.
and

being based

and

of

him.

is

had

and

any

have

dent

together

company

fund

order to start

a

of

years

do

plan

positions, which is mutually valuable to
employers, and' that leads to more perfect
them

:

great value

olds, and I think

such a fund and
place it upon a proper work¬
ing basis, it is
necessary, if employees are to be given the benefit

of past years

to

a

employees

REMARKS OF ARTHUR
REYNOLDS
We

of the salaries of the employees is

pay

to

a

most

each

profits

with

their

upon

such

the

to

developments.
of

employees,

per cent,

end

amount

provided

more,
In

is

all

means

that

seem

service,

a

of

each

employer and

usually deducted
.fund

what

would

both

serious

consideration
of

before

anxious

more

and

years,

questions of Mr.
Kent, I think
to answer them.
If not, we will
proceed.

receiving funds in this manner, it

speculation and

analysis

between

added

company

satisfaction

become

their

President

of very

different

upon

others they result in

small,

seriously inconvenienced after

careful

an

any

cerned.

"

they increase efficiency and interest

and he is not in the
habit of
to

with

naturally

retain

co-operation

.

as

leads

They
and

of

sense

long in

themselves and their

such

fund and blanket

they had figured on their share of the profits and had
prac¬
tically spent it.
Under a profit
sharing plan it is, of course,
possible for a company to cQnserve the interests of its
employees
by investing the fund for them and
paying them the income
only.
This is a kind of paternalism that
tends to stop the development of the individual, and has proved
very unsatisfactory
when tried.
When a lump sum of
money is paid to an employee
often

the

away

operation

.

;

sufficient.

schemes
some

ice.
well

year's salary in

one

takes

in

not

begin to look back

dissatisfaction than if the plan were not in existence.
institution where this scheme was
tried, a number of the

one

employees

.

is

1

dependent

contingency, but in actual practise

every

company at all times, and in
years when the profits are

in

by

entirely

combination of pension

cover,

sharing

three

or

A

the pension fund
seems

Profit

covered

service

and it is there¬

cases,

others

family would receive

two

or

for.

individuals.

be

can

such

have

insurance is based upon the salary of the clerk,

death

units be paid

they

CONVENTION.

over

taken—so

considered

discussion

that

at

the

the

of

the

much
at

the

entire

Briarcliff

merits

of

time,

that

bill

matter

the

in

time.
at

be

the

r,e-

the Executive Committer! for

ferred back to

Gentlemen, you have heard the motion.

Are

will say

Aye ;
is carried, and it is referred
We

next item

President

The

is

it

think

I

tion

work

that the American

bankers.

which

State

organization.

Mr. I.

Orr, of St. Louis,

H.

Association,

would

I

and

Association

of

to affect legislation in

try

in

not

to

Bank¬

organization of bankers, and any suggestions that emanate

upon.

I

fundamental

the

thing is true in regard to the deposit of trust funds.
land, generally speaking, which all of us

the law of the

his

with

suffer.

to

funds
likely

funds, and, if he does, his own funds are

own

There

•

are

Now, I think we
model Trust Company law, but-let

gets inquiries in reference to them.
call

"

this

a

I

of

Section
what

'

Companies are now

Uniform
with all
thought best to make uniform in the varioius

is

it

that

known

Commission

That

States.

" Commission

the

as

held

recently

has

conference

a

that city, and at that

meeting one of the matters
banking laws of the sev¬

Now, we have spent much effort in

trying to protect the use

was

eral

States.

under

"trust"

That goes

in

in which

I

trusts,
I

tive

nature

it be just

come

the thing for

that

to

come

well

other

Ohio

relating

States,

and

passed

us

Section,

this
in

the

mindful of

handling

of

long

the

to

of

administration

That

may

but" it is not

be

so

so

in

trust

business.

legislation in New

there, and possibly in

Ohio.

There is no law

prohibiting the mingling of trust funds with other as¬

investment
I

understood
of the

of

trust

him,

the

control exercised in Ohio over

funds.

Mr.

purpose

of

Legislative Committee in

Orr

conceived

correctly,

the Executive Committee
this matter.

It is not to

but
simply to suggest measures that- might be 'helpful to the State
organizations apd to the authorities of the States that will set
them thinking right, on the duties and responsibilities of fidu¬
go

to

'

have done.
seconded.

was

-

,

Gentlemen, you have heard the motion made

.

and, as I am requested to put the question,
all who are in favor of it to say aye; and those op¬

McCarter,

The motion seems to be carried; it is carried.
Gentlemen,

President :

as

The

on

next

associates, as

my

,,

Call of States, to be

is the Roll

of business

order

of

behalf

on

thank you.

behalf, I

"own

my

by the Vice-Presidents of the Section in brief

answered

written

'

reports.
CALL OF

STATES

.

the

ARKANSAS.
W. L. Hemingway, Vice-President of the
of Little Rock.:

Mr.
pany

Business
business

The

conditions

increase

several




States

our

looking forward

are

men

throughout

in

to

a

Mercantile Trust Com¬

season

business.

of good
at

and

rate,

good

a

and

Bankers

sound.

are

continues

facilities

banking

State

succeeded in
securing the passage of a good banking law, which becomes effective
January 1, 1914.
A good man, who has had a number of years'
experience as a banker,
has been chosen to head the department
of banking.
Considering that we have had no banking law, the fail¬
ures
have
been
remarkably few,
but the operation of a new law
we

glad to be able to report that we have at last

are

will,

Oh

1908

May

there

were

capital

Of

1

total

a

of

this

past

the

of

While

five

throughout
use

and

State is not very

having

the

cause

the

Arkansas with a

public

total

with

deposits of

business now transacted
large, the increase during

satisfactory and

been

will

facilities of

in

deposits of $5,390,000.

increased to fifty-eight,

of banking

volume

the

State

$6,180,000,

of

has

years

the

various

and combined

number had

the

companies In our

trust

trust companies

twenty-five

$4,118,000,

year

invested

capital

$15,000,000.
the

minimize the danger.

hope,

we

In

combined

the increase of wealth

more

and

to

more

make

trust company.

ARIZONA.

from, Ohio, has almost no legislation of a protec¬

sets, and there is no adequate
the

executive officers for

to our

recommendation when the State

to sit by without

Jersey that he wants.
some

the motion—that the

motion

The

by

McCarter thinks that he has got all the

Mr.

result of all

has had

referred

have

a

States laws .that they have recommended.

responsibilities

that

as

As

is conducted.

which

to

title of various concerns.

The essence is the protective

Act, the Bill of Lading Act.

Now, will

in

the corporate

Not¬
these laws is the Negotiable Instruments Law, the

among

term

in

the business

Commission

Warehouse

the

was

merely to the form.

forty-eight

able

consideratiin

|

of the word

the

opportunity

the

had

have

its appreciation

will ask

I

at

the

that

this

i

expresses

posed no.

on

Montreal, in connection with the meeting of the American Bar
Association in

manner

Sec¬

deli¬

most

I would move—and I

ROLL

State. laws," whose province it is to dear particularly
laws

this

in

the matter, and

The Secretary :

of

people, that any one connected with a Trust

organization

an

large

at

revision of the constitution of the

Association.

for many years there has existed in this coun¬

Mr. Chairman,

try

mem¬

II. Goff, of Cleveland, Ohio:

F.

Mr.

the

to put the question on

the conduct of their business.

practising In

that

the amount of work

the executive officers of this

Section

the

to

Bankers'

they

The

call it

us

suggestive statute which would take account of these

a

rendered

believe

do not

i

Secretary

the

by Mr.

elementary principles which all good Trust

par¬

until the end

elected,

be

may

have any idea of

valuable service that

have

ask

•

form of
,

ex-officio
any

Section.

the

in

Gentlemen,

duties and have handled

in any
That is not so.
It was simply with the idea
ascertain if any help could be given in the.

endeavoring to

Indeed, they have even

seeing the skilful manner in which they have performed their

of
•

Company was trying to prepare a law and have it passed

particular State.

office
:

Section

of this

American

the idea that might exist in

primarily to eradicate

arose

of

term

they

which

to

cate work connected with the

trusts," or something of that sort.

the minds of some

time

the

at

Executive Council shall continue upon

McCarter

the

tion

the office
had better

administration

the

governing

principles

of

suggestion

a

their

and

I think every

intelligent Trust Company man understands, and yet

not

convention

•

fundamental principles which

many

the

in

afternoon

the changes which were referred to this morn¬

of the

bership

It, is
as lay¬

recognize, that a trustee cannot safely mingle trust

men

Committee

report on the* revised constitution is submitted, a re¬

committee

Mr.

Then the

governing the investment of trust funds.

laws

same

Executive

the

.

States of the Union that

have

the State Banking Associations.

farther than the revised constitution as it stands, and are

ticular
of

the

practice of the Legislative Committee,
Chairman of

The

to-morrow

members

of the investment of trust funds.

proposition

perhaps not over one-third of the

are

For example,
There

Companies might agree as good things.

Trust

take

of

members

going to provide that any of our officers who may be

Now, there
which it was thought

principles upon

ex-officio

American Bankers' Association.

That has been done voluntarily.

gone

in response to a general demand for it.

are* certain

Now, with that in

with members of the Committee
of the Constitution, and that committee will

Revision

the

ing.

the various

Reyburn, of Little Rock, Ark.:

port containing

from

action

take

to

that .this proposed Model Trust Company law was

say

gotten up

the

them

: *

.t;

.

might

for

Association

Bankers'

American

the

when

approved

President conferred

your

present

State except through the State

any

W.

President :

the

on

influence or

way

any

and

policy of the

that it is the fixed

say

Council

its

S.

The

Mo.:

been

Association so that they should

understand, to wTork through

-

Having served on the Law Committee of the American
ers'

-

Council yesterday a reso¬

adopted,

be

has been the general

It
I

»'

•

has

harmony and to the purpose.

doubtless

will

Mr.

handling of legislative matters in such

the

leave

trust

the present.

legislative committees of

the

Legislative Committee of the

I think the American Bankers' Association should
States to the

State, then

of

understanding is that the Chairman of each of the
become
in the future under the new constitution,

my

Sections

States where there is no State organization
If there is a State organization of bankers in any

get laws passed in
of

of

part

in

more

view,

matters,
Bankers' Association only interfere or try to
Trust Company

regarding

fair,

only

the

passed which was aimed to produce uniformity of ac¬

the

on

the Executive

in

that

say

was

bodies of the American Bankers'

Couse, of New Jersey:

J.

W.
•

will

I

suggestion, and I hope

That is a very good

:

motion

McCarter s

Mr.

President:

lution

will follow it.

members

that

in

Orr has

control the administration

should

that

them,

The

do that.

I think they should be invited to

the

that

Section

in all States, but for the pur¬

by your vote and that subject is closed for

relation

Secretary of the Section their views in

municate to the
to it.

hope

do

this

affairs.

wish to com¬

study the proposed bill very thoroughly, and may

I

of

of determining the fundamental principles as Mr.

styled

think,
wish to

people may

members

of urging its adoption

purpose

As this model

word?

more

the

and

thought—not along the lines of drafting a bill for the

serious

discussion, which is the

adjournment of this Convention,

the

after

qne

say

Committee

Any utterance that goes out from

considered, but

well

must- be

interim between now and the next meeting will give the matter

law is the most important matter, I

Trust Company

a

Section

pose

I

May

McCarter:

Mr.

this matter with haste.

this

program.

our

on

with Mr. McCarter that it is not desirable to

agree

pass

back*.

ready for any general

now

are

quite

Executive

question? If so, all in favor of the motion
opposed, No. The motion seems to be carried, it

ready for the

you

of

I

seconded.)

(The motion was
The President :

the way the business should be safeguarded.

ciary trustees and

such action as they

Contention.

give it, and to report back to the

may

185

SECTION.

COMPANY

TRUST

that

a

uniform

act be adopted,

Mr.

N.

E.

President of the Southern Arizona Bank & Trust

Pltjmer,

Company of Tucson:
I

believe

trust
has

that

companies

increased

stock

men

mining
than

Our

had

copious

have understood

for the

that their business

the

rains

in our

State,

and

and there never has been a

prosperous;

of

I

State.

and the increase has been of a permanent char¬

rapidly,

are

industries

high
well

small

with

this

been a very profitable one

past has

year

State

have been

operated

accordingly

the

time when

the

more

successfully

during the past year.

The
been

in

have

We

acter.

the

price
watered

operator. to
a

very

valleys

of
get

handsome
are

and the fact that the mountains have
enabled both the large corporations and the

copper

has

oiit

ore

economically

and to

market

the

same

profit.

being filled up

by

Incoming

settlers,

and

many

por-

186
tjons

BANKERS'

of

the

valleys

purposes

are

under

mulgated

by

heretofore .not
a

dry

new

State. Agricultural

our

fields and orchards,
thereby
by financial institutions.*
From
this

the

condensed

State,

deposits
our

it
in

are

that

State

people have In

issued

the

Trust

by

the

of

the

pro¬

local

throughout the

spoke

to

Mr.

John

General

that

large

State.

CONNECTICUT.
II,

Mr.

LaMotte

President
to

name

strength

in

occurred
to

or

State

our

trust

bankers,

pur

work

uniform

in

essential

without

years

its

to

Business

ing

among

tially

depx'essed

tariff

legislation

and

ity

nized

and

The
has

for

and

taken

have

ing

which

Trust

that

in

we

The

of

if

This

the

and

This

increased

State

association

campaign

the

the

on

and

Trust

of

Company

Hartford

recog¬

comments

from

with

the

Rossell:

•

report,

-...

which

is

;

...

under

date

of

October

3,

follows:

During

the

past year

circularized

were

gained
•was

from

a

followed

join.

that

the

by

non-member

in

Office

letter

from

this

have

not

a

considerable

later

interest

During

has

been

been

on.-

the

Journal,

numerous

One

by

largest

of

the

the

deposits

banks

its

all

$1,400,000,
Newark,

in

and

the

State.,

which

and
in

The

surplus "

taking

worthy

stock

sented
stock

in

The

ton

the

the

of

i.

of

In

the

that

same

took

the

in

Wilmington

may

the

in

and

we

person

are

not

doing

are

I

In

during

the

oldest

and

big

things

National
in

National

at

and

Bank

IS 10,

and

of

Bank

had

were

of

the

of

been

which

build

up

less

of

of

"capital

and

Mr.

It

have

President

members
other

We
and

I

of

and

the

that

a

have
think

had
it

an

Is

in

Trust

the

general

than

usual.

been

small

of

them

shows

hanks

the

total

in

the

the

the

ending

Delaware

Bankers'

the

contributed

30,

as

we

of

Mr.

of

is

in

largely to

the

State
H.

the

F.

building to

that

time.

has

that

been

the

thing,

report,

have,

of

all

but

paid

of

Toy,

President

to

the

before

of

our

way

of

We

are

neighbors
Trust

the Trust

on

Delaware,

appear

servant.

some

in

in

carried

and
this

President Chicago

Gentlemen:

that

so

Trust

Company

Farmers'

do

are

the

of

Loan

& Trust

Co.

by

beginning
think

Company

we

to

State

and

within

In

this

the

the

amended

State

may

indications

next

with

compromise

perform

may

that

for

are,

banking.

Savings Bank

and

Trust

a

of

the

few

Trust

that

are

Companies
associated

the

functions

the

State and

that

year.

of

valuable

very

publicity

fruit.

*

campaign

in

Trust

months,

Savings
Trust

Banks

do

a

many

he

or¬

and

State

Banks

Company.

shall

It

is.

-

usual,

as

and

crop,

MOVE
banks

farmers

our

with the

Moiues

Des

the depositary

THE

CROPS;

there

but

Companies

Trust

and

the

of

is

demand

this

have available

commercial

very

'

.

by

cities
no

a

...

designated

were

and

promise of
*

and

the Treasury

comfortably

commercial

handle

the

business;

paper.

.

iff

fact,

.

KENTUCKY.
Mr.

As

John

Stites, .Vice-President
from

Vice-President

fully

that,

report

and

Legislature,

Crops

in

during

State
for

all

the

we

are

'■

"

FOR

such

so

Kentucky

throughout

the

year

below

the

buying

we

I

would

had

no

respect¬

meeting

of

affecting Trust Companies.
and

average

business

conditions
*

to contend with

had

eastern

,

unsatisfactory.

Considering what we
very

Kentucky,

change of laws

no

are

of

as

necessary

Trust Company:

just closed,

year

Secre¬

FUNDS

funds,

funds

'-V.

Louisville

the, State
the

success¬

*

Honorable

a

-.

•

during the

year,

-

- "

we

are

satisfied with the results.

well

we

LOUISIANA.

(Ap¬

Com¬

L.

New

M.

Pool,

Vice-President

Hibernia

Bank

are

Louisiana

with

them

Illinois,

has

but

to

addition

in

do

no

they

a

Trust

all

geueral

Companies

operate

which

under

commercial

do

State

a

and

Trust

Company

of

one

of

the

most

States—namely,

years-—is

profitable

the

prohibited

the

bank

which

business,

trust

permits
and

in

trust capacities.

fields

administration

under

an,, exclusively

charter

savings

gives them the power to act in all

other

period

&

Orleans:

However,

active

our

now

that

are

twelve

a

Savings

„

city

of

a

funds.

trust

prospering,

are

TO

members.

exceedingly

Sioux

crop,

means

our

to-day

feel

of

The'great State of Iowa has again harvested nearly its normal

tary

Company

little

j

.

their

business,

excepting

savings

a

V

last legislature

our

Companies

business,
will,

to

necessary

provided

department and

Mr.

Most

strong

a

segregate

This

of'the

Convention

passed

•

Companies

each

which

and

Sec¬

cent",

per

IOWA.

pleasure to state

me

laws

itss
the

'

suc¬

the

all

obligations;

kept

them

:

In¬

of

law

a

of

of

in

reserve

demand

in

April

failure

twenty-seven

companies

capi¬

growth

which

are

profits

the

cash

all

on

nearly

as

hut

banks

and

In

the

offset,

last

is

required,

cent,

per

the

The

averaged

year

reserve

fifteen

State

organized

in¬

an

-In

combined

Company

losing.

is

slight

surplus

business

been

Trust

one

year.

people.

30.

a

The

of

date*

whole

having

the

communities

As

put"

full effect

of

which

no

the

at

\

Trust

interests

Association,

Mauli;

Vice-President

for

money

that

with

but

past

desirable

■-

was

trust

Wilming¬

Companies

little

118

fraudulently organized,

fixed

time

September

$12,767,000,

This

therefore,

very

Trust

that

Association,

Trust

Charles

for

have

carrying

Indiana

in

institutions.

stockholders

the

no,

of

eud

State,

,

gives

It

as¬

resources

of

Collec-

ganized.

accepted

in

the

money

hard one for many

a

indicate

would

been

concern

seen,-

cash.

national

in

flow

very

no

supply

by

-

-

new

although

stockholder

have

accomplished

failures and

has

year.

anxiety

are

contraction

few

expected

year

company

establishing

James

general

Companies,

changes,

percent,

Convention

beginning to bear




of
This

reserves.

who' contemplated

liquidated

has

only

j'ear

a

however,

every

accomplished,

actively

proud

Association,

institutions that

the

others

feeling

with

pany :

Mr.

and

a

ease

and

organized

deposits

first

during

this

Company

its

about

surplus "

well-

bumper

a

all

manufacturers

the

financial

Companies

never

full,

winter

of

Their

that of
in

lack

the

There

City ;

Wilming¬

time

the

qual¬

and

for

prospect

entirely,

there

is

fiscal

have

'

to

the

but

superior

'

had

those

however,

usual;

of

sufficient

strained

been

very

and

many

$56,900,000.

-

years,

position,

of

Teter,

the

Trust

will'be

it

ILLINOIS.
Lucius

the

has

Companies

the

Companies,

the

Before
last

$050,000,

deposits

plause.)

Mr.

but

un¬

question

a

State,

than

as

partial

a

than

Improvement now, and with the

.

practically, $4,000,000.
Companies have been increased

nominated

was

very

little

there

$5,150,000.

ful

partVand
the

of your humble

as-

caused

the

less

been

made

course,

Trust

for

two banks

of

debts

by

year.

rather

Of

betterment

134

however,

diana,

get

have had

reduced,

happily

to this report

is

be

been

of

counties

almost

was

excellent.

and

through. 1913 has been

now

for

our

campaign

Trust

1893.,

articles

I

the

surplus"

which

two

Company

September

Company,

Delaware
the

These
and

to

"

out

to

have

evidence of

decided

years

August,

Evening

sent

the

States,

of

the

Tryst

active

on

ensuing

add

Publicity
of

the

of

above-mentioned

lieu

of

reorganize,

movement.

Trust

for

had

there

for

railroads,

of

distressed

more

seriously

jobbers

the

v

very

an

of

Sussex

the

to

recently

and

*

compelled

thirteen

companies

amount.

held

I

in

two

business

ninety-fivg

in

Trust

of

■

$900,000

different

city have been

cess

tion

the

absorption

movement

State

in

over

Companies

the

is

a

afe

of

twenty

by the Farmers'. Trust Company of
Newark, which began business in 1865,

eleven

Wilmington

was

the

that,

and

to
-

to

of

extent

public

number

This

large,

and

with

on

enlargement,

or

suffering

of

be

date,

.■

taking, over

e.,

First
and

to

hope

we

articles

growing public confidence

in

resources

the

which

note
held

Trust

in

total

the

change,

of

the

banks

about

of

the

result

by

the

of

was

to

of

crop

over

National Bank of

evidence

attempt

carried

it.

credits

interfered

not

the

upou

a

rains, were

There

to

damage

.

be

has

their

untoward
...

territory, and it is

is

has

•

general

severity

produced

finely,

,:

immense

•

not

years,

band.

business.

the

began

1S64,

had

is

done

have

has

taken all

and

this

them

much

three

*■

the

two-thirds

but

favorable
trade

,

is

Company,

the

business

and

the

As an

the

the

continued.

at
the
time of its
liquidation
$105,000 and deposits of $300,000.

it

and

published

of

liquidation "'capital

" capital

Oats

most

general

but

will

by

"

-

as

to

and

large

a

condition

been
slow

1

caused

The

year.

large volume of

a

property

preceding

volume,

has

has

been

There

the

last, two

State

later

overproductive

aroused,

having

Section

Trust

.$1,500,000,

began

liquidation

be

our

Brandy wine,

of

around

which

they
to

Wilmington

and

time

that

interest

national

Wilmington

and

in

this

strongly urging

-

dailies,

of

month

the "Educational

requests

item

year,

ton,

succeeded

leading

our

reads

advantage

A

Publicity Campaign.
widely, read and very favorably commented upon,

were

at

I

year

in

the

-

of

one

office

your,

to

as

office

'

results

companies

Association.

our

these efforts

up

in

embarrassment.

off.

tal

the

Home

membership

Although

feel

all of

from

a

lpis

had

upou

whose

least

at

curtailed

Sacrifices

There:

have, the honor to present the report signed by Mr. S. D. Townsend, Vice-President for our State, who is
unavoidably absent from,

<

It

possible;

crease

I

Mr.. Town send *s

and

however,

State,
flood

>

this meeting.

fall

only extraordinarily

sparing

mortgages

But,

■

/ '•

April

Company of
-

past

produced

extent

some

in

bridges,

over

In

with

have

enterprises

for
it

i,'"*'"'

"DELAWARE.
J. -s,

the

monetary

-a

have,

new

of

.' ;

Kent

:

services

•

not

corn

unrest

serious

the

good.

that

with

have

destroying

localities

been

reduced

banks

*

clients.'

their

and

of

some

compared

heavily.

read¬

persons

many

and

have

Mr.

consequence

drought that prevailed in

flood.

was

Many

where

articles

Times,

flood

damage will

of

is

business.

''

■Ma.'

so

as

main,

the

section

thirty-three

of the

page

unacquainted

render

may

the

series

favorable

previously

Companies

of

'entire

financial

many

crop

tions

support:,

in

have

loaned

and

activ¬

has

to

the

1912,
In

rule

a

Trust
1

for

of

State.

as

districts,

this
roads

that

the

Third: The

for

credits «at

and
of

part

as

by

Ilay

timed

final

farms

Section

which

.

grass

the

disturbed

failure of crops

crops

yield,

par¬

to

as

fewer

of

heavy sufferers.

people

wheat

now

of the establishments.

with

agricultural

our

the

Union

the

Indiana

■'

of

northern

affected

flourish¬

usual

uncertainty

many

to

the

been

The extreme

entire

ity.

with

this

of

'

1

..

towns

precedented

charter

can

of

in

and

corn

manufacturers

Much

were

the

or

in previous

establishments

advance,

publicity

printed

articles

for

of

system

;

,

in¬

beginning

special

of

good

unprecedented

restoration

who

T-.y'. *"V-

among

that

by

"

;

.

President

been

sections

has

'

certain

-

efforts

banking conditions.

normal,

as

the
and

the

of

knell

farming lands.

say

through

marks

manufacturing

among

of

and

The

Second:

satisfaction
■

marked

to

by

earnestly worked

with

opportunities

personally"heard

the

It

dangerous

effect

a

passage

incorporation

association

death

other lines.

its

is

the

to

the

has

most

This

millions.

the question.

up

generous

having been
I

had

values

educational

had

the

been

is

our

pleased

am

it

among

better

I

has

the

save

only

State

members.

practically

of

there

increased

calls

banks,

are

has

about

our

prove

possibly

time

governing

■

some

Agriculturally,

of

and

this

to

institutions.

brought

,■

trade

you

through

part

success,

has

interest

at

features

passage.

importance

peculiar

law

should

conditions

trade

sale

the

unusual

of

banking

been

fostered

of

Holliday,

especially

in

active,

First:

and

little

general

forth

and

which

its

has

growth

members

are

the pension

'

\

causes.

her

to

answers

show

prove

attention
a

State

put

on

charters

privileges

point

and

to

year

and

that

studying

*

business

business.

.'or

Connecticut

healthy

H.

crops,

been

Manchester:

While
are

companies,

particular

law

South

which

past

legislature of

general

dividual

act

the

companies

This

of

trust

her

of

Gentlemen:

conditions

during

warrant

Russell,

and

report

are

Indianapolis:

conditions

Mm

companies

or

to-dav.

us

INDIANA.

the

showing the absolute confidence

Companies

.the

adopted

in

of

percentage

of

either

near¬

Comptroller

Bank

larger

Several

farming

being

^become fertile

are

deposits

much

very

institutions,

the

the

and

for

is

which

system,

College,

increasing

statement

appears

available

considered

farming

CONVENTION.

of

Trust

of

laws

Company

estates

of

our

over

State,

a

work

long

because

'

five

than

On

active mortgage investment and

besides conducting an

etc.,
The

in

banking

State, but our people are
of such services, and the

our

the full value

in

$25,666,675.20

Overdrafts..

22,937.75

-

.'26,323,352.54

Bonds, Securities, etc

Stocks,

Banking House,,

3,237,774.37

Furniture and Fixtures...,..

854,125.85

Real Estate Owned...........

Other

Record........

1,519,811.50

Co.'s and Reserve Agents.

14,859,194.51.

and Judgments of

Mortgages

SEPTEMBER 4, 1912.

Resources,

and Discounts..,.

Loans

gradually getting educated
business of the Trust Com¬

legislation during the past year,

no

,v"

:'

which has mate¬
rially changed the conditions under which Trust Companies can do
business in Louisiana, except that an act was passed, in 1912, which
exempts Trust Companies organized for the sole purpose of lending
money on mortgages on country property situated in Louisiana, at a
rate of interest not exceeding six per cent, from taxation for twenty
years from the date of the organization of such companies,
provided
they have not less than $250,000 capital.
As a result of this act, at
least one new Trust Company was or¬
ganized in the city of New Orleans, which is doing exclusively a
mortgage loan business, and it looks as if it will be successful, which,
of course,
means a good deal to our State, because the question of
agricultural
credit
is closely
interwoven with the prosperity of
been

has

There

■

CLOSE OF BUSINESS

STATEMENT AT THE

increasing.

panies is steadily

result:

following

"

Bank Commissioner

the

to

bond busi¬

which has developed very rapidly in the last two years.
Trust Company business Is a comparatively new development

ness,

to

Trust Companies, especially in the city of
an extensive business as tutors for minors,
trustees under mortgages, receivers, assignees,

our

quite

do

interdicts,

for

curators

1912 with 1913 might

year

issued

a

as

hand,

other

the

Orleans,

New

and,

years,

the bands

into

be interesting. Comparing statements
by the twenty-three Trust Companies
at
his
call
of September 4,
1912, with statements issued by the
twenty-five Trust Companies at bis call August 9, 1913, we have the
the

tic up an estate for a longer time
result, practically all estates which come
of Trust Companies are wound up within a 'year.
which attempts to

valid

is

will

no

187

COMPANY ' SECTION.

TRUST

Cash Due from Trust

$72,473,871.72
Liabilities.

$9,460,469.00

Capital Stock..

10,303,224.58

Surplus Fund.........

2,998,875.77

Profits.

Undivided

2,444.20

Dividends Unpaid
Bills Payable.

137,800.00
.

...

...

.

49,437,373.12

Deposits

133,685.05

Liabilities.....

Other

.

.

$72,473,871.72

Louisiana.

\

'

■

MARYLAND.

......

Maryland made excellent
progress, although the year was not a good one for Trust Companies*
in general, as the security market was down and very little business
in the' way of promotions and underwritings was taken up,
and they
were
thus
forced
to
depend mainly upon their banking business.
Money was very tight during the whole year and rates were good,
but
deposits were somewhat lower owing to the heavy demand for
Duriug the

past

that usually carry very

a

to

for

outside

go

these

from

funds

secure

Cash Due from Trust

$75,263,357.05

of depositors.

Capital Stock

Undivided

Clearing

not

been

House,

.

been direct members of
rules and regulations have

Companies have become so

active in the

stand at present the privilege of be¬
coming direct or full members is not given to Trust Companies.
About
four
years ago
the Trust Companies of Baltimore were giveu the
privilege- of
becoming associate or non-members of the Clearing'
House.
This privilege did not give them a vote in the management,
but simply allowed them to select a bank through which to clear their
items, and practically all the Trust Companies in Baltimore at that
time took advantage of this
invitation.
Since that time, however,
severalHew

v'.,....

—,.... ..

. . .

Bills

......».

Profits....................

.

.

Payable.,........,............
/

Deposits.
Liabilities....,

Other

10,671,875.00

3,250,842.27'

...

5,939.40

.........v»..

Dividends Unpaid..

•

.

the Clearing House

as

amended'since Trust

and

business,

banking

..

$10,970,430.00

'.

:

Surplus Fund.;

Baltimore have never

in

Companies

Trust
the

Liabilities.

-

three years ago, has been
working out in a maimer satisfactory to all institutions.
Practically
no change
of any importance lias been made iri the bill since its pas¬
sage; only a few minor changes took place at the last meeting of the
State Legislature.
These changes did not interfere with the general
working of the bill, but had a tendency to provide for the better pro¬
tection

3,331,735.44

Co.'s and Reserve Agents.

T2,487,426.32

......:..

....

799,400.00

48,449,194.49

...................

1,115.675.89

$75,263,357.05

which went into Effect

bill,

banking

Our

1,173,007.07

Record........

and Judgments of

sources

"Frederick and Elkton. One Trust Com¬
pany went into liquidation.
For some time rumors have been current
in
Baltimore regarding a consolidation of several of our Trust: Companies, but up to this time nothing definite has been done, and from
information at hahd this consolidation is not to take plkce.

50,010.00

3,311,640.30

•

Estate Owned....,............

Real

Mortgages

each In Baltimore,

one

year,

27,452,716.67

........

—

Furniture and Fixtures

Banking House,

accommodations,
the last few mouths, and were
thus compelled to fall back on their local banks and Trust Companies. ■
This caused an extra heavy demand upon our local institutions.
Three
new
Trust Companies opened for business during, the past
usually

more

Account

Premium

Other

19,116.98

............ -..

Bonds, Securities, etc.,. .«,

Stocks,

satisfac¬

$27,437,704.27

.

.

Overdrafts....

loans.
Balti¬
but they were unable

very

Discounts.

and

Loans

they

as

been

have

Companies

Trust

1913.

Resources.

•

•

close rather than to increase their
number of the larger business houses and corporations in
drew

tory; balance

Quite

and individuals

Corporations

funds.

Trust Companies in

year

OF BUSINESS, AUGUST 9,

AT THE CLOSE

STATEMENT

This

shows ' an

comparison

increase

total

of about

resources

business con¬
in the tariff,
the new banking bill, which is now befoje Congress; the situation in
Mexico, and the unsettled conditions in Europe.
However, during the
past few weeks a decidedly more healthful tone is noticeablef in all
lines
of business,
and most of our jobbing and commission bouses
are
looking forward to an excellent business d.uring the fall and win¬
ter, as the South will have a very good cotton crop this year, which
will beuefit our locality very much.
The Trust Companies of Balti¬
more
loan
large sums of money through the South for the raising
and.financing of the cotton crop, and when cotton begins to move this
money is
returned for use in other' branches of business.
The coming year should tie ,a very. prosperous one for Trust Com¬
panies in Baltimore, as well as throughout the State.

ditions

were

M.

'

»

for

Vice-President

organized, and this special

extended to them* although these new Trust
become non-members the same as the older
the Clearing House refused to grant them this

in

aud this increase was made at- a time when
not at all favorable, owing to the changes

$2,790,000,

Trust

A."

Section,

Company

Grape,

H.

Maryland,

A.

B.

privilege has never been

Companies were anxious to

but

Companies,

Trust

NEW

>

privilege.

Clearing House
waited upon the Trust Companies with the view of ascertaining upon
what
terms
It would be agreeable to them
to enter the Baltimore
Clearing House, stating that they were willing to change ^some of the
rules and regulations permitting Trust Companies to enter if certain
others were allowed to stand.
The Trust Companies did not care to
put themselves in the position of applying for membership, but sug¬
gested that the Clearing House qhange their rules and regulations al¬
lowing Trust Companies to become members and state upon what con¬
ditions
they would be allowed to enter
(as the present rules and
regulations of the Clearing House do not give Trust Companies the
privilege of becoming full members).
It was agreed that if this were
done the Trust Companies would seriously consider the proposition to
months

few

A

enter

full

as

and

held

committee from

One

matter

of

the

the Baltimore

Clearing House.

the

members of

the

reached.

a

ago

Several meetings were

but no agreement was
kept the Trust Companies

thoroughly- discussed,,
chief

which

causes

Committee was the rule in
stands, all members of the
Clearing House are compelled to charge exchange on! all
local
accounts opened after the year 1897.
On all accounts opened
prior to this date, it is optional with the bank holding such accounts
whether or not they shall charge exchange.
As the majority of the
Trust Companies in Baltimore were organized after 1S97, these Trust
Companies, should they become full members of the Clearing House
under the present rule, would have to charge exchange to every local
customer.
This would give the older banks, who make up the major¬
ity of the present members of the Clearing House, a great advantage
over Trust
Companies, and they would not consider coming in on such
terms.
No doubt this fall some agreement will be reached whereby

from

the

entertaining

to

regard

As

exchange.

of

proposition

the

rule

the

now

Baltimore

all

the

of

the

total

of

the

resources

the

upon

ten

terms

Trust

agreeable

A

comparison




One

the

the

growth

of

Trust

Maryland for

Farmers'

National

of

Mount

Title

establishing
of

Newark—

Roseville Trust Company at
.

'

-

v

.

•

.

•

-

Laws of 1913,

140,

Chapter

of

themselves

Jersey

Holly—was

two Trust Companies have
establish branches, the New
Guaranty and Trust Company of New Jersey, Hoboken,
three branch offices in Jersey , City and one in the town

to

Pursuant

availed

Co.:

Company.

its- treasurer.

of defalcation by

result

Trust

reported—the

is

Liquidations—none.

privileges

its

Union.

to

,

.

bills affecting Trust Companies were passed by
the Legislature during the year ending September 1, 1913.
They are:
Chapter 140—Permission to establish branches under certain condi¬
tions, subject to approval of Commissioner of Banking.
Chapter 171-HAuthorizing Commissioner of Banking to take posses¬
sion of the assets of any unsafe or embarrassed Trust Company and
liquidate it for the benefit of its creditors.
Making it a misdemeanor for any officer, director, employe or agent
of any Trust Company to receive as a gift any property or thing as
Important

^./Three

a

commission
In

our

closing,
State

or

for

fee

it gives

Trust

loaning Trust Company

a

quarter1 of a billion dollars.
NEW

Mb.

Cabdoza,

B.

William

funds.

me_jpleasure to say that the total resources of
have more than doubled during the past

Companies

and now exceed

decade,

YORK.

Vice-President

Farmers'

Loan & Trust

Company of New York:
It

to

Companies in

Farmers'

bank—The
the

into

failure

the

gives

me

operation

State

during

pleasure to report that nothing connected with
administration of Trust Companies in the Empire
past year has resulted in anything but the further¬

great
and

the

of our people in such institutions, designed "orignecessities which so many years ago prompted the
State.

ing of the confidence
/

inally
birth

of

Trust

new

Vice-President, Plainfield Trust

have occurred within the past year:
Companies have been authorized to do business.

changes

national

converted

Companies, in

Clearing House.

following

One

Companies in Baltimere will

House

Clearing

not members and
to

become full members
both parties.
The
Baltimore, which are
which clear through member banks, are almost equal
of the sixteen
banks which are members of the

larger Trust

resources

J.

The

Nine

Cash,

Herbert

Mr.

JERSEY.

to
of

meet the
the Trust

Company idea in this

188

BANKERS'

Some

legislation

the

year,

the

bill

and In

providing

banking law,
Chapter

as

in

of

part

for

the

it

regard
of

enacted

been

lias

as

commission

a

a

law

May

purposes

are

described

24,

1913,
in

and

is

Section

1,

of

five

of

or

Banks

more

is

hereby

authorized

having

persons

to

appoint

technical

a

four

per

cent,

for

at

loans

on

least

or

its

Restricts
of

indebtedness

office

building

to

to

two-thirds

forty

of

the

ods,
of

banking

law

to prepare

and

the

banking

conditions
in

ment

institutions.

Such
on

without
to

ence

this

rather

The

than

went

into

effect

of

the

May

the

months

cause

8,

of

of

1913,

of

directors

April

which

thereof,
or

and

of

which

or

in

in

or

such

which

itors,
and

have

of

Trust

the

its

bank

of

also

are

therewith,' and

perintendent

placed

on

filed

Chapter

in

benelt of

or

of

be

may

given to it here.
The

directors,

vote

of

in

the

after

of

Company

109

warrant

Court

shall

stockholders'

written

notice

meeting by

by mail

to

two-thirds

a

each

said

thereupon,. in

for

payment.

its

.

shall

affairs,

to

.

order

an

and

due

granting

to

of

and

said

distribute

the

the

the

the

to

I

might call attention
Trust

seven

plus

Companies

deposits,

and

*

assets

that

to

the fact

in

the

shown

as

that

State,
by

at

present

with

an

Capital,
will

$77,500,000;

more

will

the

Tariff

Bill.

the

source

feel

latest

the

of

track

of

are

drastic

income

These

to

the

the

profits,

the

effects

of

ariff

the

devolve

necessitate

accounting

withheld

to

beneficiaries

the

up

in

necessary

the

trust

work

tax

funds

and

are

a

corps

order

to

to

obtain

exempt.

Omaha:
In

their

It

a

in

These

passed
by

a

and

care

Strong efforts
legislation,
It,

it

and

efforts

had

is

law

powers
A

as

of

made

to

votes

stands

one

* to-day

time

capital

of

$200,000

in

in

cities

of

than

more

the

Mr.

value

by

the

State

on

real

estate

to

years

Restricts

next

any

Trust

and

of bonds

on




of

stocks

in

perhaps

many

of

Trust

ways

act

an

Com¬
a

con¬

the

em¬

endeavoring

by

" Trust"

the

the

by

members

their

North

name,

General

corporations
the

of

bill,

the

already

the

in

was

Legisla¬
operation

although

not

Legislature,
of

the

con-

doing

and

subject

for

an

estab¬

exclusively

are

under

the

same

to

was

laWs

the

bank commissioner.

a

Carolina

but

present

provision

a

business

and

healthful,

is

entirely

conservatism;

possible

the

super*

regulations

and

and

safeguard

the

general

satisfactory.
the

for

the

They

tendency

is

protection

of

hampering their general usefulness.

way

of

Philadelphia:
by

prosperity^

of

Pennsylvania, I beg to report
following figures, displays- con¬

the

For

.

the

year

ending

1,

May

the

date

deposits

amounted to $516,000,00(1—an
in¬
$784,000,000—an increase of $37,$1,049,000,000—an increase of $70,000,000.

to

resources,

record

that,

institutions,

while

there

there

have

legislation

has

been

been

by

increase

no

failures

no

enacted

was

during

the

the

Legislature

'

RHODE ISLAND.

Pothier,

.

v

.

Governor of the State of Rhode Island:
Vice-President for my State In this Section

as

province

Rhode

within

to

Island
in

bank

and

outline

as

Island

of

and

a

condition
year

general

the

of

the

with

in

resources

reminder

Rhode

briefly

compared

the

the

State

amount

vast

Trust

it

Com¬

ago.

in

large

of

extent

of

is

a

wealth

and

con¬

repre¬

activity, of Its

manufacturing interests.
total

lending

found
In

money

the

obthin

tlje

passage,

was

bear

bill

a

passed

after

strong

this

,

result

the

Companies

full

The
of

of

100,000

and
or

or

about

than

less.

50,000,

subject

$1,000,000

Our

4,3S1

banks

Trust

under

and

Deposit of securi¬
stock

whole

have

been
had

check

to

end¬

year

amount

about

while

in

shown

were

financial

high

given

a

compared

as

the

all

loans,

market

the

value
the
the

banks

of

year.

Companies show

the

is

$131,-

institutions, during
of interest and

successful

Trust

the

about

rates

to

very

with

in

of

previous

a

falling off
Their

year.

par¬

has

The

inhab¬

100,000 inhabitants;

less

the

for
this

ticipation—or savings accounts—on the other hand, show an
increase,
while the number of savings depositors in
Trust Companies alone

fiduciary

more

on

has

Of

depreciation

some

various

owing to the prevailing
which

State

banks,

resources

been

the

the

$220,000,000
State banks and savings banks.

Companies,
has

in

national

Companies alone

yet,

deposits

increased

cities

Trust

banks

$270,000,000.

represented, in

attention

State

the

aggregated'

While there

past year,

the

was

is

the Trust

careful

was

.only

House

and

to

1913,

all

of,the securities held by

necessary,

brought

This

lower

Trust

30,

in

of

resources

$50,000,000

compara¬

company.

Rhode

1912, and

banks

show

an

all

are

savings

supervision,

over

year.

Island

Companies,

State

500,000

during the

in

an

in

a

and

very

State

increase

in

prosperous

banks,

condition.

which

deposits

of

all

come

about

$7,-

increase of 8,730 in number of
depositors.

with

TEXAS.

auditor,

and

a

newspaper

publica¬

Dallas, Texas,
Having

forty

which

to

except

In

then

Companies

!

Increase

The

of

per

cent,

of

the

appraised

interest

has

been

in

default

vention

for

preceding date of purchase.

purchase

in

shown

as

funds,
of

indication

Texas

purchase

«f

,

year,

codification

helpful

every

important

my

in

The

thereof.

Forbids

in

institutions

Stuart,

the

President,

panies

refunds

report.
loans

favor¬

possible,

of

before

a

utmost

'

examination

his

Restricts

two

is

1911—-that

act.

10,000

State auditor.

of

J.

becomes

'

amounting to approximately one-quarter of the capital

Annual

tion

of

among

very

reports,. the

No

000,000.
to

$100,000 in cities of 50,000 and less than

$50,000

of

trust

period.

of

Companies except
in

influence

$25,000 in cities having 10,000 inhabitants
ties

Trust

no

ago—in

to

gives

Company

been

if

status

corporations

commission,

the

in

*

properties.

Its

secure

Trust

have

'

,are

them

H.

number

Aram

keep

Company

powers

companies

some

Companies
two

the

the

name

of

commercial

$27,500,000;

of

under the following requirements:

paid-up

itants;

it

of

two years

largely through the influence of
Our

Trust

fiduciary,

had

we

for

by
They

banks.

by

gratifying

the

sented

Peters

considerable

only

Trust

margin

been

made

was

was

authorizing
narrow

been

there

with

1911

one

at

-

the

investment

as

management

had

but

Until

acted

Omaha,

,

of

Company

creation.

new

the

against

Trust

a

in

passage

also

was

company

do

condition,

last

of

ing June

name.

and

President

In

Fremont,

continuance,

are

the

affecting Trust Companies.

"

Nebraska

tively
In

Peters,

of

practically

a

without

growth

varied

C.

R.

iii

one

'

State

" Trust "

financial

our

about

their

stant

NEBRASKA..

of

000,000;

,

'

out

a

past

the

number

corporation

George

tinued

the

on

sent

indisposition

a

law

the State

behalf

that

as

tax

York,

PENNSYLVANIA.

Trust

the

governing .Trust

Loop City.

change

the

use

word

All

regulations

sur¬

feature

of

employment of

work

cover

of

t;
,

tax

detail

•'

Mb.

the

public

Mb.

general

legislation;

income

endless

in

in

one
in

those

that

are
,

have

earned

dividends

a

which

particular.

distinctively trust business; but

be

$175,810,944;-

institutions

t

new

for

law—four

our

distinctive banking department and

a

scarcely

throw

in

financial

under

any

disturbance

estates

laws

every

distributed.

no

additions,

characterized

are

crease

statistics,

requiring the deduction

will

and "will

amounts

where

cases

of

seventy-

capital,

available

undivided

all

by

provision

perform

to

the

the

the

and

While

affected

.The

Department,

employees
in

less

or

Companies

Trust

surplus

$1,346,360,987.

be

of
is

condition

of

there

aggregate

in

recommend

secure

the

was

needed

govern

the

its

among

do

executors,

in

a

with

This

business.

vision

follows:

deposits,

of

using the

some

trust

Trust

wind

may

the

dead

a

business

trustees, etc.

the

general-banking

On

but

trust

transact

not

trust business.

a

lishment

Company

said

out

during the

to

doing

business

notice

Trust

order

its

to

stockholders.

.

were

with

stockholder

notice

declaring

prescribing
claims

banking business,

a

debts

its

after

case,

their

the

do

to

cease

pay

make

closed,

present

Upon

.

proper

a

Banks,

Company

creditors

Company

.

of

Trust

to

those

defeated..

in

Such

forbidding

.

Superintendent

given

that

made

interfere

ducting

direct

its affairs.

up

strict

strengthening of the sentiment favoring
Companies rather than individuals as

Companies

becuuse

ture'to

pro¬

record.
A
copy of the
proceeding of the stockholders'
meeting, duly certified by the president and secretary of the Trust
Company, must be filed in the banking department.
The Supreme.

defeated

space

time

any

State

going

financial

of

operation

articles

practically

and

was

than

There
at

may

of

any

a

should

public sentiment along this line.

Assembly

be

and,

the

the

the

practically

transacts

character.

Carolina

Trust

Trust

other

made

and

Compafiy,

to

of winding

purpose
a

Section

Trust

a

interest

of

effort

A

addition

North

educate
An

duplicate

a

very

Brown, of Raleigh:

been

growth

The

day

Company,'

and

has

tinued

to

writing
be

in

one

and

would

administrators, guardians,

Su¬

15th

shall

Trust

I

similar

a

in

as follows:

Trust

a

given at

stock

of

of

for

be

may

its

report

a

or

Company,

closing

general

part, it reads

closed

be

direction

Trust

the
on

sufficient

stockholders

it

that

bank

the

as

the

making the same,

such
or

by

procedure

of

In

before

or

examination,

of

bank

On

matters

printed

and

business;

times

estates

taken

the

and

in

Companies

Company

nor

see

and

that

been

panies

ployment

as

other

stock,

'

Beatrice,

Friend
it

Joseph G.

There

directly

banking department.

amended

was

method

it

such

the directors

said

the

such

require.

directors

in

file

103

the

by

of

into

may

succeeding

board

thereof

Banks

to

sworn

the

passing,

of

month

thereof,

of

Mr.

shareholders, cred¬
otherwise, with the special view of ascertaining the value'
thereof, and of the collateral security, if any, given

or

have

been

in

one

to

a

Trust

bank

in

have

we

Trust

a

protect

have

to

seen

of

date

NORTH CAROLINA*.

Com¬

corporations

officers

So

like

would

in

one

received,

articles

discounts

made

other

should

examine,

Trust

for the

or

interest

to

and

discounts

or

or

I

which

Lincoln,

have

ably

duty

examine,

or

loans

the

in

members

the

benefit

directors

in

to

directors

capital.

be.

dormant

a

commercial

business.

charters

Norfolk,
I

in

Company,

to

a

is

"

Twelve

in

capital

to

.

that

should

banking whatever, for
Company cannot be affected

Companies

which

provides

be

man's

it

acts.

two

shall

foregoing

estates—which

Personally,

now

that

existing

451,

It

year,

thereof,

beneficial

a

It

each

loans

for

or

and

are

belief

codify

security

of, the

vides

directors,

it

experi¬

,

and

into

directors

or

officers

they

connection

to

officers

to

officers

who

the

to

Chapter

23,

affairs of the

the

and
be

the

I believe

business—while
live

a

Irust

who

men

and

by
as

commercial

•

by

seen

State,

for

Section

in

directors,

into

to

or

failed

be

the

man's

depart¬

of

pay.

accepted

manner

bank

three

and

banking

,

every

least

were

business

of attention..

.

papers

they

banking

liquidation

examined.

October

at

present

primarily

Section

be

to

statutes.

new

to

to

law in

knowledge

seems

worthy

of

and

particularly

indirectly

such

is

affairs

fully into the books,
pany

It

follows:

as

their

by

its, attention

drafting of

revision

without

been

efficient

yery

complete

the

the

serve

have

involved.

committee'of

a

a

in

and

will

amendment

and

papers

board

.

in

of

experience

qualified

direct

an

important parts

Books,

well

the

of

enactment

the

will

a

Legislature

adapted

It

meth¬

prior

loans

or

commercial and savings bank
banking as defined
relating to banks.

statute

knowledge

of. banking

knowledge

State,

commission

State

will

this

commission

problems

commission

laws,

its

the

the

the

supervision

this

exception,

serve

considering

to

upon

of

Appointments
are,

of

based

work

practical

a

submit

law

and

the

and

the

of

cent,

per

Forbids

a

just

years

stock

own

.

of

three

*

investment

officers.

or

which

cost

Superintendent

least

Forbids

the

known

now

No.

at

of purchase.

first

revise

to

of

during

to mention

proper

follows:

as

commission

I

creation

became

Its

interest

and

connection

which

705.

reads

The

importance

this

CONVENTION.

ing
On

a

been

requested

dealing

report

by

your

with

the

during the preceding year,

now

as

operating,

best

I

can

September

1,

I
the

beg

to

secretary

history

and

submit

the
the

information asked

191?,

there

had

been

of

to
the

Trust

conditions

following
for,

to

October 7,

submit

to

under
as

1913.

this

Con¬

Companies
which

outlined,

of

they

cover¬

wit:.'

organized

and

was

in

opera-

a

year

carried

Associated

Trust

well

of

for the

the

Edwin

Trust Company Section,
Association of Texas,

Vice-President,

Bankers'

American
'''

'

'

WASHI NGTON.

\

Hobbt,

"

"

Mr.

Texas.

The

in

Washington

of

State

the original

act

the

of

Manager

few

a

I

laws relating to Trust Companies
legislature of 1902-3,

changes

made

amendments

or

Trust

authorized

law

relating

and

rated

from

in

serve

should

legislature

an

that

no

providing

Act

otherwise
It

last

the

wills,

drafting

ing

ality.

President

its clients on

I

the sub¬

of

hour

the Trust Companies

and

session

last

the

services

objection

in

its

effect

writing of wills,

the

While this

Mr.

than

West

1906

the

in

is

of " class legislation,"

of

B.

until

Trust

in

the

State

Trust

has

providing

State

continue

A

law

models;
be

to

possibilities
has

of

it

should

Directly
to

the

name

an

the

been

public against
and

the

trust

themselves,




by

farm

on

in

taxation

and

to

Trust

who

of

Goff

of

as

the

the

land

for

lands,

well

as

mortgage

will

for

well

as

benefit

an

shall

as

long

by

time

agricultural

of protecting the investing

against

of the
is

" blue sky,"

dealers in

trust

a*law

as

committee

appoint Mr. Fries, Mr. Fuller
escort Mr. Goff to the plat-

to

escorted to the

devolved

election
upon

upon
to

Goff

President

and

to

thank

Poillon

Mr.

and Gentlemen

of

Chairman

lionor

the

I

novr

:

I

want

conferred

the Executive

of

confer
to

ex¬

me

upon

Among the vari¬

rises

Committee,

the sunshine

with

there

During his short life of

privilege that he lias.

sometimes

he

the

:

Cutler, of Hartford, Conn.;

the

supreme

and

out

goes

shadows, but now in this last moment of his official

life he is
Mr.

of

year

with

and

Section,

all.

you

Ralph W.

duties

one

this

of

appreciation

deep

my

Mr.

Presidency

the badge representing your new office.

you

press

to congratulate you upon your welhdeserved

me,

the

platform.)

of the pleasantest duties that has ever

one

on

Poillon

pinnade* of sunshine, so to speak, for to mention,

a

is

like

speaking of the ringing of a perfect silver

the

attorney

I have learned not only to re¬

During this year, Mr. Poillon,
spect

but to

you,

Section

Company

love you ;
I

have

and

now,

tion

ing

and
a

Mr.
Mr.
me

the esteem of every

on

privilege

the

behalf of the Trust

of

presenting

that with it

goes

member of the Section.

to

you

the affec¬
(Present¬

silver loving cup.)
Poillon

Cutler,
with

deep

connection

:

This

beautiful

token

and gentlemen of the

emotion, and

that

you

with

the

President Goff:

have

I

thank

extended

Trust

of

Trust

to

your

kindly

Company

you
me

feelings,

Section,

fills

sincerely for all the
during the period

of

Company Section.

Nominations

for Vice-President

are

now

in

companies.

recently

passed

giving

estate or the nearest of kin authority

act

/

Section, and I
as

this is

Goff,

in¬

the

associations
a

the

the

famous,

providing

developing

purpose

Companies

this

(The President-elect was
Mr.

courtesies
with

President.)

as

pleasure in declaring Mr. F. H. Goff duly elected

this cup of silver, and I assure you

is justly

Companies

factor

has

State.

operate

person

business

Trust

important

chief beneficiary
the

Wisconsin

establishing

the

feeling

this

banks.

the

loans

In

for

but

enacted

affecting

loan

farm

special

their

as

requirement

reserve

which

funds

machinery

the

European

on

spirit for

banks

600

are

for

as

banks

the

by

the

Companies

into

gone

of

healthy and
each year

but

being added

If not, I

bell.

there

As

making

legislation

slow,

of

fourteen.

considered

are

is

companies

new

Company,

Loan & Trust

•

Wisconsin

in
two

competitors.

progressive

vestment

or

numbers

now

for

same

idea

one

Companies
and

resulted

In

Company

growth,
list

the

enemies

the

,

Trust

The

continuous

;

.

nominations?

form.

is

Savings

President

Steknsland,

Madison:

Louis, Mo. :

Are there any other

:

Jackson

Mr.

one

E.

Mr,
of

H.

F.

take great

ous

WISCONSIN.

H. Goff,

Company.

Trust

Goff.

Mr.

Union.

the

I

fitted

eminently

is

He

privilege, Mr. President, of seconding the nomina¬

the

President

serious.

not

H. Orr, of St.

I.

of

and
•

there were

reports

States

older

the

I

and so on.

Companies

Trust

the

to

have served and whom

I

appreciate.

(On motion, the Secretary cast one ballot for the election of

had no opportunity

twelve Trust Companies
in
Washington,
with aggregate capital of $2,129,000, surplus and
undivided profits of $777,000,
and deposits of pver $4,000,000.
I
am
pleased to report that our State and Federal courts have
recently appointed Trust Companies to act as receivers and trustees
in bankruptcy proceedings.
This is very satisfactory to us.
• '
In
conclusion,
I
may
say
that the campaign of education
in¬
augurated hy this Section has borne fruit In our State.
We are of
the opinion
that this matter of education is more necessary in the
According

and

declare the nominations closed.

was

be regarded as a vicious piece

may

on

bill

The

It.

to

of this Section for the ensu¬

whom

Cleveland

the

The President

Inspired by a few attorneys
of somewhat questionable standing and ostensibly in retaliation of the
aggressive advertising campaigns of Trust Companies offering their
make

to

be

should

Vice-President

for

,

love

to

of

crave

tion

tov prohibit soliciting or adver¬
tising of the fact that it does these things.
This bit of legislation was
introduced in common with a number of other bills at the eleventh

and

President

floor.

elected members

ending in 1916.

I nominate for President of this Section Mr. F.

-

as

position not only by his attainments, but by his person¬

this

for

Secretary

the ballot

cast

these gentlemen

declare

I

gentleman with

learned

Mr.

counselling with

from

or

have

I

nominate for President

a

year

have

but that it aims simply

wills,

ject, of

President,

and the

carried,

is

Fries, of Winston-Salem, North Carolina:

H.

F.

rise to

I

Companies

prohibit Trust

not

does

Mr.

:

for

the

from

Mr.

Trust Company

law

the

that

motion

•

Nominations
made

fiduciary capacity.

any

noted

be

The

ballot.

the

President:

The

amendment was made to the Trust
or other corporation
organized under such act which advertised that it would furnish legal
advice, prepare wills, or do other legal work for its customers should
be permitted to act in the capacity of executor, trustee, or assignee, or
During

Company

it?

named.

of the gentlemen

of the Executive Committee for the term

State banks.

the same class with

In

reported

are

Gentlemen, you have heard the report of the

Secretary

The

the State Examiner, since which time

of

Vice-President of the Glrard Trust Company,

President :

cast

directed.

Companies then 'Imposed on the

Trust

to

be performed by

to

of

Company,

Trust

Union

the

Teter, of Chicago, 111.:
the Secretary of the Section cast one ballot for

that

move

will

Secretary
this
work has been performed by this officer; but in all of the Examiner's
reports since then Trust Companies receiving deposits are not sepa-1

sibilities
of State

of

What is your-pleasure in respect to

Lucius

The

passed.

was

Washington

Com¬

(The motion was seconded.)

-

Companies to engage in a
aaviugs as well as a general banking business, and generally to trans¬
act
all kinds of business pertaining to trust and fiduciary matters.
The law contains a great many of the provisions of the Trust Company
Act of New York, and may be said to be a fairly liberal statute.
In 1907 an amendment was passed requiring all duties and respon¬
The

Continental Trust

Pa.

the election

since

Fidelity Trust Company,

the

.

President

Blair,

President:

Mr.

enacted by the

was

only

been

have

there

and

Vice-President

Rank of Spokane:

Savings

portion of the present

greater

the

and

&

Trust

Cunningham,

C.

James

Mr.

.

Jackson,

Committee.
Union

Md.

W.

A.

A.

The

'■.

#

of

Mich.

Philadelphia,

.

of the

,

Grape,

Frank

Detroit,

.

Dallas,

Vice-President

Mo.

H.

Baltimore,

Mr.

Respectfully submitted,

Companies.

Trust

our

City,
M.

Mr.
pany,

Old Colony Trust Company,

the

Vice-President

Cook,

Thornton

Mr.

of

President

Stockton,

Mass.

Kansas

Four

close

already fully

sections

in

located

Philip

Mr.

Boston,

times each year, and that, together with
supervision of the department, insures, to the public of
absolute safety and conservatism in the conduct of the affairs
viz.

banks,

State

of

State will

under

eligibility.

location and

to

regard

members

and deposits of the
items carried by the
The majority of our
and have ample capi¬
according to the laws
same as those made

the

years

this

organized

selected after careful

suggestions handed in by members with

Many names were of
represented on the"
Executive Committee, and some of them now serving as officers
and members of committees.
Eliminating these, the gentlemen
nominated by your Committee received the largest number of
suggestions handed in by the members :

due

performed,
We are entering on a
Companies, and we verily believe that

Trust

for

in

those

Your Committee begs to report

have been

gentlemen

following

the

•

,

COMMITTEE.

Milwaukee, Wis.:

Fuller, of

consideration of all the

this was by far the most desirable

capital, surplus
equal those
Texas laws.
Trust Companies are located in the larger cities,
tal and other facilities to discharge their duties
of this State.
Our examinations are made the
banks

of the

functious

such
few

next

the

Companies

State

that

that the people of this State had

reason

to the fact that

Texas

in

Up until very recently very few
Trust Companies were performed by

etc.

executor,

Trust

Texas

of the Nominat¬

'

REPORT OP NOMINATING
Oliver C.

having

of

era

'

ing Committee.

President and Gentlemen:

educated

been

the

purposes.

Next in order is the Report

Mr.

in Texas,

operating

by

social

for

as

President :

Mr.

functions

authorized

within

as

The

which the Trust Companies in Texas are now

administrator,

new

banks are somewhat out of sympathy with their
have organized into a body called " The
Companies," and hold annual meetings for mutual
they

purposes,

benefit

very

are

full

means

and

aims

liberal, and include a great many items in addi¬
banking privileges, such as acting as trustee, guardian,

under

provisions

to

not

are

was

operating
tion

State banking laws, and most
members of the Wisconsin Bankers' Association.
How¬

feeling that the

ever,

736, with capital stock of eighteen million, surplus six
million, and deposits fifty-three million—showing that, the seventythree
Trust Companies
carried .practically fifty per cent, as much
business as the 736 State banks.
1913,

The

them

of

September 4, 1912, was $20,142,000.00,
On
August 9, 1913, these deposits had been, augmented by six million
dollars.
Their capital stock now aggregated thirteen and a half mil¬
lion, with four million undivided profits.
....
The total number of State banks in operation in Texas on August
9,

administrator is a firm or

or

under

operate

Companies

Trust

The

Companies on

Trust

by

executor

the

whenever

corporation.

making

there have been twelve Trust Companies organized,
total now in operation of seventy-three.
The total deposits

past

administrator,

During the

Law sixty Trust Companies.

the State Banking

under

tlon

189

SECTION.

COMPANY

TRUST

for

the

executor

to
or

order.
Mr.
I

Oliver

desire

to

C.

Fuller, of Milwaukee, Wis.:

nominate

for

Vice-President

the

gentleman

whose

190

work

BANKERS'
chairman

as

speaks

year

of

the

Executive

for itself—Mr.

Ralph

Committee

W. Cutler.

Mr.

Lynn H. Dinkens, of New
Orleans,
I take great pleasure in

CONVENTION.

during the past

affecting

(Applause.)

really

La.:

seconding that nomination.

President

Goff:

Are

there

other

any

nominations

for

motion,

the

ler

as

nominations

-Vice-President.)

President "Goff
ask

Colonel

(The
Mr.
the

having that

matter in

Mr.

Cutler

Mr.

Fuller to

Cutler, I desire to

express

been

been

able

to

do

the

President

Goff:

that the

and

assure

cies in the
A

The

sir,

Section

in

Secretary

calls
has

the

of

Executive

there

further

any

we

into effect.

to

the

to till

Poillon

Section
ber

to

be

held

is to

has

not

time

be nominated

the

upon

Executive

I

That

therefore

it ,is

the

of

the Executive

to

represent

under

Of

the

Trust

the

the

Company

revised

mem-

at

at

the

as

American

second

second

President
Are

those opposed,

aye -

Mh.

Gentlemen,

Oliver

C.

heard

all

so,

I

would like
and

ers

to

to

all

in

favor

of

it

vention.

I

in

who

this

have

city

of

make that

the

for

Boston

the complete

and

President

.

Goff:

by rising.

in

the

hospitality

The motion

the

Mr.

has

"Hemphill,

York

some

had

Trust

operation.

Is

speak to

it

attention

largely
the

reference

various

hill

the

of

to

do

to

lessening

Companies
the

tax

motion

desire

of

the

the

than

the

the

difficulties

that

I

was

Mr.

its

Hemp-

'

motion

with

preparation

respect

particularly
In

to

tp

secure

the

they

the

as

Conference

make

to the effect that this

1

of

not

of

the

that

because

taxed

and

plaining
large

the

income

direct.

So

that

matter

we

to

income

that, after

say

of the

think,

tax

then

income

be

or

our

we

does

catch

that

little

as

have to

to

be handled

will




they

are

very

and

with

as

regulations

respect

Coupons

presented

to

the

for.pay-

have

you

heard

Opposed,

the

motion,

The motion

no.

ask

to

Mr.

Ilemphill

is

question.

a

finally

was

extent

an

that he

could

recommendations

Company

the

New

of

purpose

give

the

The

a

bill

of

would

of

be

that.

For

accom-

rather "
we

are

instance,

for

statement

a

the

is. to

sources

is presented

that

his-

commit-

also

Companies

the

of

the

regulations that

coupon

accompany

of

and

Trust

modification

a

both

information

us

;

Sectiofi

York

tell

collec-

from

for

that

they

reason

liable

not

are

decided

advantages,

You

too :

know

the

is

less

for

the

that

of all of ,the mortgages that have

pay

interest that

any

they

will ,he

compelled

they will

compelled

to

They

''

fears

the

;

was

this

not

are

interest.

compelled

the

on

the full

a

covenant,
money,

with

•

.

corporations

the

of

amount

to

funded

debt

probably

the

clients,'I think

them

enable

to

that

save

full

that

con-

railroads

thousands! of dollars, and, .as

many

them

would

non..

Revenue the

this "feature

but'under

a
.

to the Collector of Internal

over

saved

that

,

cre-

covenant

a

be compelled to

deduct

to

it.

pay

have

years

prac-,

been

interest, however, that is assessed against

pay

co-operate

they

should

we

of

amount

by

conferences
in

the

way

ignorant

of

diffi-

should

taken

up

makes

in

of

our

all;

the

Mr.

Hemphill

regu-

matters

get

upon

such

some

be necessary

of every

:

Yes, when

a

for the,,

that

coupon

they

-

is presented it will have '

coupon

oe

Accompanied by a statement that the

is

so

and

that

so,

and

course."
income

if

I

we

we

On

:

can

a

salaried

lawyer

in

compelled

that ,it

would

If

:

one

moot

would

conference

assume

putting
to

the

of

person

the

to

be

should not be asked
Goff

or

not.

statement?

sworn

they tell what that man's income is?

Well, that is

:

Our

a

No, sir.

How

were

President

tions?

:

suppose

was.

statements
that

person presenting It
Company will have to certify to

Trust

H. A. Morse: Will that be

Mr.-Hemphill

that

the

signature and state whether he is exempt

Mr.

Hemphill

the

1, will it

owner

to

Mr.

Those

do

we

?

Mr.

The

it

November

Companies to know the

Chapin

repre-

that

After

Fuller:

unless

will be simply enormous,

that,

Mr.

Treasury

briefs.

all

be

payment

the

at

of

•

as

ex-

makes

or

sending

Secretary

most

Companies by this hill,

modification

pay

collection

accounting charges, of course, that will be imposed

Trust

way

deductions.

he

the

a

We thought

they

be

the

The

.»

Trust

placed in charge of the preparation of the
that

on

among our best and most valuable

was

in

the

Company,

that

the

with

why

whether

Trust

no'oral

of

be

are

burdensome

to have the

make

effect

but

be

to

care

a

the

wondering whether Mr. Ilemphill has

full
to

cent,

will

any

to

it

the non-taxable individual

employees
have

through

would

filed

member

one

»felt

we

tax

understand

not

Washington,

would

admit

of

feature

pretty nearly across, ;but

are'going"

we

The

:

should

has

per

tained ,such

tax,

failure

our

income

being able to

could

not

endeavored

there

have been

lations

will

why

earner

bank

a

sentative

time

them

to

through

they

it

of

promulgate

money.

for non-taxable persons—and

the'person with whom

who

the

source

It is going to be burdensome at best.
statements

culty

ruled

of

Committee—and

collection

the

if

agency
is

of

I

rules

source, and particularly with

aye.

like

was

the

there

per .cent,

will

regulations

immediately have the regulations drafted

the

possible.

that

because

it,

say

would

contemplate

Now,

pay

One

coupons.

bill—we had

of

govern

its

collection of the tax.

That

have

the

the

to

to

at

by the Trust

they will be

to

of

important modification

any

tariff

necessary to
to

affecting

as

just failed

of

collection

and

series

the tax ought to be collected.

taxable person.

promulgation

explanation of that I desire to

of
we

the

and

I

were

$3,000,

deduct.

v

resolve that it is Jthe sense of this
meeting that the
Secretary of the Treasury be requested to take immediate action
the

tax

Secretary

prepared

ated by corporations during the last 25

Section

towards

your

whether they are non-taxable, to the effect that
they are

tically 90

-

a

Ilemphill

kindly restate

you

the

a

suggesting that When

that

full.

which

Hemphill, President of the Guaranty Trust Coin-

going to rise and make

Mr.
;

Now, if that is adopted by the'Treasury Department, the
Trust Companies then will -he able to pay all those coupons in

■

•

of New York:

pany,

that

tax.

se-

LAW.

'

Trust'

and

'

.

J.

&

Loan

that

Gentlemen,

But I

we

1

A.

from

They give tlie certificate that their income

So

Mr.

not

than

under

Yes!)

TAX

Farmers'

motion

a

and

of

bank-

action,

non-taxable.

with

contend

meeting

INCOME

such

the

is

have

to

representing

if

are

that

THE" NEW

of

the

that

us?

(Cries of Yes !• Yes!

is

Secretary

fact that

from Boston

comes

favor
of

the

action

,

Associa-

New

bill,

law

informed

such

Bankers'

with
the

been

that

of

tariff

may

the

fact

Trust,

of

he

when

have

American

influence

it

possible

this will

that

of the

tion

manifest

undertaking to

have, to

the

as

Hemphill

effedt

we

will

Chair

feature

the

will

month

I

attention

motion

study of it to such

suggesting

Guaranty

with

income

a

person

of

the

My

Goff:
of

CiiAriN:

plished

ex-'

is carried.

President

changes in

especially in
the

the

City, has

cure

to

come

if

Department

of the way

the

of

.

of

he
de-

1

Committee

,

There

favor

Mr.

'

favor

month

V

requested
date

a

tees appointed

„

preparations made for this Con-

motion.

All

idea

will

committees

(The motion-wak seconded.)
it

in

made

the banks and bank-

served, on

and

revenue

•

Mr.

,

:

vote of thanks to

a

others

entertainments
tended to his

offer

the

: :

Revenue

carried.

the. motion.

,

.

the

All

officer

Associa-

The motion is carried.

no.

Fuller

be

promulgated.

If

haste,

I have been postponing the
study of this law until it

have

you

great

motion,

IIemphill:

President

'

ready for the question?

you

say

Goff:

this

afternoon

the

F.

that

of

this

of

ment.

constitution.

motion.

for

internal

of

suggested.

'phone

collection of the income

Jackson, of Philadelphia, Pa.:
that

have

Section

'

earlier

Convention

Bankers'

receptive frame of

reason

15th

1st

reference to withholding the tax

Chairman

new

this

of

our

gentleman

why I would like to urge the adoption of
I

distance

James

second

for

this

.

Mr. A. A.
I

the

the

on

probably have

Treasury

,

.

Section

long

will

Mr.

constitution

•

the

of

motion ?

be

representative upon that

nominee

the

of

will

action

meeting that tlie

be

that

the part of this

-I

Company

second

our

that

take

not

it

as

follows:

this

Council

do

we

the

in

reason

has made.

Trust

as

course,

second

a

as

Committee

the Executive

tion

of

the

1/ this meeting

Council.

move

sense

constitution

a

know

even

Some

before

the

President Goff: Mr. Ilemphill, will

officer of

an

simply will not have

Council.

upon

revised

been adopted, but if

yet

we

the

convention,

no

with

Toy, President
Company, of Sioux, City, Iowa:

imme-

business?

Under

:

the

be put

resolution

Mr.

vacan-

.

Mr.

by

the Treasury in calling to his
ing world, and especially as it
New York (Laughter)—is in

been

...

presented

will

That is the

on

diately following the adjournment of this meeting.
Is

that

has

y

not

conference.

past

attention

will

that

over

ap-

way.

do

coupons.

placed

sees

conference

so

tion

every

They

the

charge, and he is in

Whatever

power

Committee

been

that he

a

officials

that

the

ranks of the Vice-Presidents.

meeting

have

me.

the

my

the

have

to

goes
.

I
'

of my

tax.

Well,, if they have that conference and
they delay in making the
regulations you will see the position

will

platform.

now,

you

hearty support in

Executive Committee

I

insignia of your office.,

Gentlemen, I

for

the

to

you,

upon

the

you

:

done because of your
loyal and

fact

going

partment

platform,)

preciation of the. honor you have conferred
upon
have

is

the

feeling of satisfaction at

my

conferred

pleasure in handing to

him

the

to

elected.

duly

escort

escorted

was

Vice-President Cutler
I

and

Ralph W; Cut-

might say, also,

have

declare

Fries and

that has

closed,

Mr.

the

collecting

mind,

this

•

I

;

Vice-President

honor

take

declared

were

ballot for the election of

one

of

of

however,

I

(On

collection

procedure

suggestions,

office?

Secret.ary cast

the

the

questions,

know

raised

what

that

responsibility
upon

us

a

for

of
his

point,
those

responsibility

assume.

Gentlemen,

are

there

not; the Chair will entertain

motion,' adjourned sine die.'

•

a
.

any

motion
':.

further
to

ques--

adjourn,

Association

American Bankers'

Edmund D* Fisher

Fixed and Fluid Credit,

Savings System, Carter B, Keene

The Postal

Detailed Proceedings

-

-

-

Report of Committee on Postal

„

-

-

-

.

-

-

-

-

Savings Banks

Report of Executive Committee

Page 19F

Report of Committee on

Page 195
Page 198

Report of Membership

Page 203
Page 208

-

-

-

-

PROCEEDINGS

SAVINGS BANK

TO

INDEX

Edmund D.

Fisher, Deputy

Report

banking reform

to

and stimu¬

Credit is now recognized as an important factor

gress.

questions which
considered by the savings banks of the

price movements and develops many
seriously

must be

these movements upon

country, because-of the effect of
the market value of

in

difference

The

fixed and

between

character

credit makes it very necessary for

oughly understand the relations between

banking upon all business enterprise.

with confi¬

capital " transfers it for the use of another,

credit may be actual value of a

The basis, of
.

nature,

its

of fixed capital is expressed, or

defined, by certain instruments/ such as

ownership

bonds1 of

corporations, mortgages on

deposits.

*

v forms

of

automatic

wealth, constantly

means

of

shares and the credit forms

they

market are, in general,

of actual

ments

fixed

are

generally
of

forms

not alter in

on

available

they

as

period "of

for

deposit accounts and
The credit instru¬

bank

fluid credit

Unlike

loans.

instruments do

drawn with a short matur¬

are

ity and the full amount is contracted to be paid when
It will thus he

due.

in the nature of
an

the

that there is

seen

fixed and fluid

credit. '

uncertain value dependent upon

varying

demand

and

the

represents goods

fixed,

either




through

a

sold

or

closed

great* difference
The former has

the volume of supply,

presumed

actual capital which supports it.

trary,

a

quality of the

The latter, on the con¬
to be

sold, with

transaction or

-

and Fluid Credit.
York

prices

seasonal

makers' and endorsers'

habit, and is supported by the
responsibility.

-

.

•

Credit is the chief element in
the credit currency

through

It is developed

through

of banking.

made upon both
It is the medium through which

fluid credits.

fixed and

commodities

a

•

.

modern exchange

deposit of the proceeds of loans

the

are

exchange them¬

to

Fluid credit bears

actual money.

of exchange without the

Recent

flation.

banking practise,

and .creates a
elements bf'in¬

credit, ant

of

the use of this currency

As there is ability,

relations.

price

haS deveb

however,

deposit currency based upon

oped large volumes of

turbed

enabled

virtually

price relation to actual business

proper

stable medium

fixed

has dis¬

under or-1

exchange deposit credit for
that in using the check drawn

dinary banking conditions, to
actual money, it is evident

these'deposits, as well as money/ we have a

on

of

medium

Through

exchange.

the loan,

composite

deposit and

proceeds of loans
houses
and other evidences of fixed value are added to the vol¬
ume of basic currency.
This naturally tends to "bull"
the market—either the stock market,1 the bond market

check

process

of modern banking, the

of corporate

business and on dwelling

on

shares

or

the commodity market,

calling of loans,
securities

and

deposit-currency

lateral

in

security of

fifteen years, manufactur¬

new

corporate enterprises,
in price inflation.

aggregate, develops its own

the

brings about the

mainly through loans on the col¬

been, the chief element

has

liquidation of

hon-compiercial forms of bank-

ing enterprise during the last
ing

A large,

the case may be.

commodities, of course,

vast-growth of the

The

as

with the accompanying

result

reverse

the

transferred by m«ans

is

commerce.

credit," such

value,

a

value, between

of

cheeks drawn

money,

the credit instruments of

over

amj the actual capital which

Fluid capital

represent.

fluctuate, in value,

developing,

approximate" relation

an

and

-

.

and the fluctuations of the stock

time,

real estate, while

is expressed by notes, bills of exchange

fluid capital

the

of value.

is loaned it may command either type

great aggregation

Fixed

permanent

consumable kind.

actual value of a fluid or

or

If money

The

of the amount advanced.

return

ultimate

the

in

dence

Page 210

-

Report of Law Committee

•forms

•

which the owner of available

is the means by

Credit

the two forms

of their use as instruments of

effect

ultimate

the

and

fluid

good bankers to thor¬

Page 209

-

-

-

-

selves in the terms of

high-grade investments.

Page 209

-

-

Report of Secretary

"Glass-Owen" bill now pending before Con¬

lated by the

in

relating

discussions

Page 209

-

Comptroller of the City of New

Vital by

Credit is the great problem of the day, made

.

the

Page 208

-

Methods and Systems

Committee - of Committee on School Savings Banks

The Relation Between Fixed
By

October 7, 1913

Held in Boston, Mass.,

Twelfth Annual Meeting,

probably
Business;

inequalities—varying

under-production and over-produc¬
that, in connection with an unscientific credit

profits, varying losses,
tion ;

so

inevitably necessary.

Under

readjustment period and its forced

liquida¬

relation, readjustments are
the strain of a

tion,

fluid credit stands the

collects
on

the

one

hundred cents oh

other

test and the bank usually
the dollar.

ously unstable and investments
meet the

Paul

Fixed credit,

hand', represented by securities is notori¬

have to be sacrificed to
/ '

obligations of fluid"credit.

M.

Warburg,

in" his

" Discount "Systefn

i

in

Eu-

192

BANKERS'

CONVENTION.

rope," gives this clear explanation of the basis of support

partial

of fluid credit:

tliat

"

/

■

..

.

As

a

^

/

i.

-

product on,

or on the way

a

falling off in
the

on

production, while the

new

is

:•<

„

consumer, 1

thus

borne

follows

without violent

the

that

the

savings

banks

in

the

States, in the last analysis, have to stand behind
ment

of

fluid credit.

terested in the

ing.

the

ultimate

or

the

lack

of

of

fluid credit in

effect

savings

scientific

sound

both

on

banks.

The

actual

It

relations

is

thus

real

or

estate,

is

house

has the

free capital

posits the amount, and its

stroyed.
been

transferred.

during

as

ticularly
real

The

transferred.

with

control

A

the

diversion

of

of

some

capital to fixed forms.

the

There is

advancing market.

on an

There

but harmful in the aggregate.

credit

not

markets
of

only

are

the

Such

business

and

enterprises.

too much liquid capital in railroad

There is, of course,
tal

which, each

forms

of

by the
with

a

and

of

investment

investment

This

finds its
is

way

mortgages

a

business.
are

broad sense,
The

are

not

problem

securities

actually used

prices.

savings bank it is usually

credit

a

banking enterprises.

of creating sound

problem

with

which

legislators

A sound currency may be merely

form

Then,

are

we

of

credit

utterly

base,

unresponsive

upon government debt.

is

such

a

as

to

trade

ence

comes

new

measure

encumbered

by

There has been
a

no

fluid currency

for

banking reform.

nothing of

with

a

form of
cur-




a

bonds,

recently,
Even

this

notes shall
States."

Of

fiat nature is intended, but
experi-

government

Once depreciation,

be

supported
reserve

banks

and

by

that

the

Federal

pro-

assets

the

by mutual examinations,

by

a

the

banks, instead of

banks;

Reserve

banks

well

as

Board.

as

This

desirable unity,

a

logical if the suggestion

more

were

adopted, that all

to the stock of all the

market

open

A

must
can

be

developed

be settled.
also

must

market.

money

plan under
loans

in

The

await

This

this

country

broad

develop-

the

establishment

be

accomplished

will

the " Glass-Owen"

of both

They

are

a

Bill.

semi-liquid and

only

those

are

special type of banking and

partly

served

a

reserve

The farmers

fixed

credit

under bur

Properly speaking, agricultural credit

is

now

attempt made

|the dictum that the

of

new

nq-

present

be divided

may

into three classes:

requirements.

until

the

issue

banking system.

sins

fixed credit based

be " deemed to be obligations of the
United
course,

shall

Sprague of Harvard

bank
need

Our

government

have

through the acceptance principle of the Federal

ture.

liquid asset base,

have had the greenbacks, a

by Congress to develop
under the

semi-government

individual

such credits

of

an

vir-

difficulties have grown out of the
attempt to sup-

port, with what should have been

to

new

The difficulties of its solution

cur-

are

a

any

credit/

ment

'

interchangeable with book credits.

fixed

be

the Federal

by

before the question

and

bank-note currency

our

behind

of the non-fluid

as

froin the

bank credit

which

issues

Professor

are

When trouble

reflex

struggling.

rency

of all

reserves

investment

mutual

offset by what, in the aggregate,

of other' types of

plan

into fixed

a

single pang

a

toss away ten dol-

or

spread interest.

of

doing

causes not

shine

a

Then

peculiar, exalta-

'The question of agricultural credit is
exciting a wide-

largely directed

investments,

rency to promote increase in

The

are

silver

110

Federal Reserve Banks.

of;

building.

business

over one the

member banks subscribe pro rata

banker, and should not be confused

tually time deposits, which

a

of

the

use

are

But it must be remembered that

to

notes

by examinations

the-di-

One

room

little bargaining one is

a

obligations of the United States,"

the

protect themselves

.

the operations of a commercial bank.

the

that

individual

normal amount of surplus
capi-

properly

year,

investment.

Savings banks, in

to

planned

are

vision

of the dollar, is frequently diverted from

non-productive

no

during the period of development of the

notes " shall be

of fluid

great panics of the last century grew out of the

being

There

man.

definitely

This plan would be even

to

there

it has vanished utterly

justification for the desire

stand

plan would give the issues

productive

peso,

bottle of ginger pop."

a

investment

power

or

It
might be well to substitute for the provision that the new

many such

but the actual labor of men, through

forget-

should have the full confidence of the
people anyway.

true dur-

uses

merely suf-

memory,

astonishing number of yellow-

through the inflation of value and the increase

prices,

recting

disturb

of

an

Federal reserve banks.

they

capital

banking transactions, innocent enough in the individual
case,

reckoning

some

Government
currency

work, tends to di-

This is also

and

currency,

the wealthy, and it

^ars *01'

■

rede-

ing periods of stock speculation, coincident with increasing loans

the

ti°n

capital. has

fluid

he

car,

until it is worth
exactly one cent in

t° Pa«v ^ve dollars for

large number of such transac-

estate loans and construction

vert fluid

fluid

same

bills—tens, twenties, fifties and hundreds.

period of real estate speculation, par-

a

a

of

the

astonishing lapse of

aPt to accumulate

fluid capital is not de-U

as

as may

the lat-

forty dollars for riding back

in

coins whatever, and after

effected

seller

•

f°v the eentavo of old
-

who buys

man

The

cur.

entitled

moment that he needed the extra money,

from

and

The ownership of the fixed capital has
merely

been

tions,

The

artic]e

au

Bug for the

v

fixed capital,

or

properly

to do it.

use

me

and

way

there steals insidiously

very

through the medium of fluid capital.

Law

an

deflation, with disastrous effects

or

same

United States

'

evident

fixed

inter-

an

governmeut

" The fact is that the Colombian dollar,

deposits and

between

exchange of fixed credit,

bonds

as

also

the

t

*

*ias depreciated

bank-

all forms of business enterprise.

such

to

the pay-

banking practise brings recurring periods

extreme inflation

upon

a

from

comes

"Harper's" gives

says:

notes

fered from

They are, consequently, vitally in-

stability which

investments

that

of

United

Bad banking, 011 the part of others, often lias its

immediate

*

place charged

add

of

of

us

continental."

a

was not guilty of such reckless extravagance
a
lst appear, also that when the agent at

con-

,

might

history tells

V
When I paid eighty dollars to ride
seventeen miles from Sabinilla to Barranquilla; I

vulsion."

I

^

«*

by the whole nation and adjustment

(in European practice)

number

Cartagena the Ancient,"

The brunt (of payment)

pay.

w

reney

by

other'hand, cannot stop consuming and must,

therefore, continue to

own

esting wt of experience wHh

to consumption,

liquidation with them primarily expresses itself

Our

ultimately worth "not

The September

.

majority of discounts represents goods In

process of

repudiation.

were

issues has been
notoriously bad.
there is tod apt to be
repudiation, 01*

First, agricultural-commercial credits that
"

ably liquid.

They

at maturity

rediscounted in

Second, that class of
which

and

commercial credit
such

is

as

reason-

and represent value already created.

should readily be

certain

are

acceptable by banks because paid

are

it

is

paper

by

some

the

Federal

to

give

These

reserve

whose payment

desired

through

followed

a

the

is

bank,

not

so

quality

of

principle of cooperation

Mutual

Credit

Associations

of Europe.

Third,
available

credits
for

that

are

general

based

upon

investment,

mortgages

more

and

particularly

through the cooperative principle of bond issues,
The

first

class

mentioned,

agricultural-commercial

credits, is now generally available at the banks
country

and

has

a

standing

\" that of commercial credits.
produce sold,

which

will

somewhat

of

the

approximating

It comprises notes
given for

be paid

at

maturity,

or

notes

*

SAVINGS

based

duly accepted by the consignees.

Of not quite as good

receipts,

warehouse

the

or

anticipation of sale, secured by
personal credit where the

upon

been that his notes have been

past has

Yet

maturity.

a

that given in payment for

strictly banking standpoint, is

discounted as

usually

not

and

payments

commercial paper until

months of maturity.

reaching a period within four

Such

however, that of the farmer and

bear two names,

notes

increased capital

is generally based upon longer

the farmer,

paid at

desirable type of note, from a

less

equipment, and although representing
to

experience

responsible and where the banking

farmer is
of

standing with the bankers are notes

advances in

based upon

two-name" paper.

the bankers call "

what

these are

of

shipped, supported by
All

advances for produce

uix)n

bills' of lading and

BANK

193

SECTION.

point, present help to the farmer comes only from the
occasional investor who is willing to take a conservative
mortgage, as well as from the mortgage companies, but
at high rates of interest. The farmer is entitled to legislative consideration of his long-time credit problem.:
The new banking plan develops the acceptance principle, as has been stated, which is the basis upon which
the new " open money market" will be established. In
European practise the acceptance is the highest type of
liquid credit. It is usually drawn on a bank simultaneously with the sale and shipment of actual goods,
supported by bills of lading and insurance policies, and
accepted for definite payment at maturity by the bank
on which it is drawn. Not quite so desirable is the acceptance based upon a

commercial credit without " doeu-

ments." Least desirable from an economic standpoint,
bankers.
Notes given in payment for seed and fertilizer
though still good, is the finance bill, based upon the demay be regarded as in this same class, as they also bear
posit of securities. The European banker, however, rectwo names, although they represent merely contingent
ognizes the necessity of discrimination against the finance
capital.
bill form. In ordinary times the finance bill is disIn the descending scale of desirability of agricultural
' counted at a higher rate than the commercial bill; in
credit next comes the second class, the type of note
times of acute money stringency, discount is refused,
which, in European experience, has to be supported by
The basis for self-payment of these finance bills, in the
the cooperative principle.
In such case the credit assoaggregate, does not exist without sale of the supporting
ciations give it the quality of the " jointly-and severally'*
securities. Sales in volume cause depreciation; loans in
principle, and not only the individual farmer, but the
volume cause inflation; and both cause a general disassociation itself becomes responsible.
Such notes are
turbance of business and banking relations.
are

generally acceptable to

usually given in anticipation of

harvests, for wages and

Notwithstanding that fixed forms of credit must not

farm improvement

be confused in commercial banking with fluid forms,
they are very necessary for the development of productive enterprises in business life and for the establishment of adequate public improvements. Surplus Capital

the

of

that

supplies,

merchant,

advances for

represent

or

and

running from one to a few years.
ueed advances are occasionally
or

more

seasons

when

In cases of extreme

made to bridge over one

there has been a

failure of the

must find such means of investment.
„
In considering- the individual investment, however, it
give agricultural credit a commercial standing, but the
must be understood that the use of capital Tor current
growth of this principle has been slow, so,that the
purposes tends to lessen the value?of the credit and thus
mutual use of surplus funds has been the main support
endangers its ultimate payment. Fixed capital should
of their business.
Credits of such associations available
be expended for fixed values. Without the taxing power
at banks for discount, or rediscount, necessarily depend
behind them, the bonds of some of the great European
upon a long history of experience.
If a cooperative asso- - nations would be worth less than the centavo of Colomciation has succeeded in developing a sufficient surplus
bia, where the proceeds of sale have been expended for
or
has maturing loans sufficient to meet all "maturing
war purposes or for building battleships. The premier
obligations, and such experience has been constant, then.. position of such bonds) as those issued by the City of
such notes may safely be taken by the banks.
Credit
New York comes, not alone from the great taxing power
associations, as we now well know, have been successof the city, of say" $150,000,000 annually, but also from
fully developed in most European countries, notably in
the fact that the money goes into definite values which
Germany and France, as well as in the Do.miuion of Canare largely revenue producing, such as water . works,
ada.
Massachusetts lias also recently passed laws prodocks ,and rapid transit railways. All expenditures for
viding for what are called "Credit Unions," but as yet
public improvements, properly applied, bring added taxthere has hardly been sufficient experience in that state
ing power.
,
...
to determine their value.
In France the development has
The confusion which has developed in banking and
been on such conservative lines, and particularly with
business life from the lack of scientific relation between
the added help of governmental support, that the Bank
the aggregate volume of fixed and fluid credits naturally
of France will rediscount the .notes of rural credit assosuggests some form of regulation. Even Europe has no
ciations up to a certain limit;
% ' [
means of controlling the undue expansion of credit
The third class of credits is that developed by cooperabased upon fixed capital, except the general practise of
tive associations involving the principle of fixed capitalcharging a higher rate on "finance bills." In this couninvestment.
The most successful of that nature are the
try there has been a growing force of what may be charLandschaften of Germany
and the Credit Foncier of
acterized as "economic criticism" of the practise of so
France.
The plan is a simple one—that of periodical
freely making advances on collateral security. Criticism
sales of bonds supported by a series of mortgages, largely
is also directed against the rather free practise of loanrunning for long periods and reduced automatically by
ing on single-name paper Without discrimination as to
small partial payments.
The bonds thus issued have
its fixed or fluid quality. The whole problem is inherbecome very popular with the investing classes and are
ently difficult. Theoretically, fixed capital investments
readily sold in the money markets of their respective
should grow exclusively out of surplus not necessary for
•countries.
current purposes.
The volume of such fixed capital,
"

crops.

The

\

;

cooperative associations

From

United

the

standpoint of

States

merchant

and

the

the

present problem

in

the same help

that

his

credits, of a

be made possible

principle of eehtral reserves.




his re-

expansion and conall this business, necessarily,

The proper

traction of the credits for

only

credit and

which the volume of his business and

sponsibilities warrant

in the
the

as

be freely taken by the banks

country and he may have the added

currency

can

our

manufacturer,
may

have thus attempted to

needs

farmer

strictly liquid type,
of

.

by the development of

the

From the mortgage stand-

however, is hard to even approximate, owing to lack of
sufficient data. Even if the basis were known at any
given time it would be immediately

changed by constant

price fluctuations.
The most recent attempt to plan for credit control
is embodied in the " Glass-Owen " Bill. Rediscounts are
to be made only upon fluid credits, with some question,
perhaps, as to what are fluid credits. Loans on commodities awaiting sale, which in some cases may never be
sold, are regarded by some as not the best possible basis

194

for

BANKERS'

fluid credits.

Loans

basis might result in

thus

freely granted

CONVENTION.

such

on

the holding of commodities for

a

The

trol,

from

increase in price, with the ultimate result,
through pos-

ably

greater

lack

prices.

of

demand,

of

enforced

liquidation

lower

at

was

The general plan of rediscounts is developed in

section

part

14

of

the

" Glass-Owen"

Bill,

which

states

*

*

bank

*

Upon the indorsement of

Federal

any

count notes and bills of

mercial

issued

or

that

is,

drawn

for

commercial

or

bank

reserve

may

exchange arising out of

transactions;

exchange
trial

in

and

notes

the

or

lem

dis-

of

of

•

the Federal

poses,

determine

the

of

the

shall

nor

goods,

by

wares

under

the

granted

be

agricultural

products,

terms

of

this

.

products

are

that they have a

paragraph

have

must

goods,

with

maturity of not

the
more

experience.

He

a

warehouse loans

must

is thus

by staple

wares

or

new

The plan of
a

probably
A

control

new

is

of

the

con-

weekly,

of

stock

of

the

money" market.

establishment

of

•

"open

an

a

credit

for

a

will

tend

to

for
sep-

the

establishment

of

proper

scientific relations between fixed and fluid credit.

There

will then

be," first,

.

an open market for

strictly fluid credit; second,

are

restricting

speculation

investment demand;
bonds

tive

supported

and, third,

(to 'be developed

gress),

by

bill

a

by

not

legitimate

a

market

a

for mortgage

yet

before

the

security market,

investment

demand.

.

As

to

call," there is

too

inflation of security

through bank deposits,
result

of

this

proximates

a

only

open

market

commercial loans.

frequently

on

is

knows

that

discrimination

certain

timately

such

disturb

endeavoring to




invitation

The worst

against

it

ap-

legitimate

The banker is too
apt to consider his

of the individual
security,

stocks

looking the broad significance
of

by loans

that, in crisis periods,

and

and that the loan which he
makes

volume

distinct

commodity prices.

business from the
standpoint
He

a

to-

values with its inevitable
reflex,

practise
definite

ac-

but" again supported by

the

day is virtually that for securities
supported
"on

Con-

including agricultural credits, probably less

than

the

and

acceptances which

market for securities

a

loans

the

the

are

gilt edge,

them is safe, overfact

that

throughout the country

very

serve.

of

bonds
on

business

a

On

the

con-

contraction

There

will

of

credit

be

times

the

distinctions

no

fluid credit,

in

but the

the right

fluid

credit.

be-

plan

new

direction,

No

Federal

It must

do

by

advancing its rate of dis-

reserves will
and

the

be

central

credit

unification

a

the

control.

of

the

When

various

securing

forms

and

Europe, with its long

has

the

of

banking, has not solved

of all

essential

been

accom-

some

relation.

years

can

development of

formulate

scientific

a

the

of

one

statements

this

a
It

however,

gives

be possible to watch

is

new,

control,

country

world.

vested in these

board, while

of

guide and

a

business

general
-

■

.

experience with

the question.

Occasional

of

relations

between

fixed

and

fluid

'
.

mortgage credits,

these

hear-

not to confer tins

the limit of its ability.

type

that

its

credit.

ex-

loans. ;

market"

statement

liquidation is still necessary to bring about the natural

It

has

large

will

ul-

community "that

he

been

shown

banking fixed credit
.

of

exchange

With

money

country

applied, through

Board.

and

limits.

itself

the

may

of

central

will

'

bills which will prepare the
way
arate investment market for
long time
of

in

Even

daily settlement

commercial

All

in

for

method

it in-

exchange transactions, curtailing the operations

"call

The

bi-monthly, instead of

or

and

figures

regu-

to

will

to

until

tendency

be easily

the

of the recent

one

tendency

a

Th^ lessening

be effective

pand security prices through excessive collateral
A

it

readjustment

present

be

He need make

banking institutions in

bring the following results:

healthy restriction

of

safe margin while granting needed acCommo-

This

No

as

will

Reserve

expansion

bank will go to

helpfulness.

ninety days.

loans

individual

can

published by the Fed-

be dangerous

rediscount

than

collateral

to

develop

only

plished it

to

check

fixed and

banks

generally sound, and

policy in relation

banks

Federal

ability.
on

warning- both

lation of credit by the control of
discount rates through
the medium of the Federal reserve
banks.

eludes

A

seem

single restriction

banking measure further plans for the

section

should be borne in mind that the
power

ware-

inevitably be

Inflation

expressed at

the

least

at
can

count.

mer-

that

organization

the

in the consolidated

reserve

reasonable

his

dation.

trolled by general trade conditions.

The

o.f

reserve

The actual practise

■

limit

will

be developed by legis-

never can

Both

preserve a

means

of

The broad aspects of the credit prob-

was

and

have

tween loans

eligible for

".secured

virtually

permitted,

It grows out of
to

other

or

course,

banking, however,

relation

•

other

than ninety days."

more

This, of

loans

con-

or,

particularly noted that permission

agricultural

lation:

be

con-

when it should be
stimulated, and times when it should
be restricted.
Under the new
plan, as in present practise, the individual banker may extend credit to the

Notes and bills admitted to discount

for the rediscount of notes

chandise."

contained

merchandise from being

or

maturity of not
will

or

such notes and bills of exchange,

staple

such discount.

herein

banking

statements

made definite

trary, it would

other investment securi-

or

anything

strued to prohibit
secured

notes

central

one

The

Federal

Banks

serve

paper

drawn for the purpose of carrying or

or

trading in stocks, bonds
ties;

include

bank

reserve

ings before the Senate Committee that it
might be dangerous to give this control of credit to the
Federal Re¬

should

Good

if

Reserve Board.

power.

not

be

the

Act; but such definition shall
bills issued

in

character

will

all

thus eligible for discount, within the
meaning of this

house

than

The opinion

of

Reserve Board to have the right

define

or

Federal

the medium of discount
rates, in the individual sections,

indus-

proceeds

regional

established.

eral

com-

bills

agricultural,

purposes,

any

which have been used, or
may be used, for such pur-

It

the

standpoint of credit regulation, is prob-

where it develops.
Sec. lJf.

member

to

the

banks will be before the
country.
detected in its initiation
in the

:
"

is

of

an

sible

.

value

r

and

in

the. resultant

prices.

This

curities,

purchasing
Thus

the

savings

volume

reacts

banks

the

on

from

price

form

present

value

of

and

even

prices

the

of

serious

security

of

of

gilt-edge

interest.

vital

a

relation,

se-

diminished

fixed

becomes

its

inflation,

commodity

bring

returns

problem

because

-

our

develop

in

commodity

power

entire

under

be transmuted into the dollar

increase

high

as.

that

may

potent, to the stability of investment values.

to

one

indirect
It

but

is

not

merely the question of the. value of the, individual bond
and

its

ultimate

payment,

but

movements-of security values
of

the

bank.

In

some

the "effect

States, in

self-respecting surplus,

it lias

of the

order

been

to

found

maintain

necessary

establish a book value for bonds based upon
zation

relative

to

the

market value has

par

been

of

ultimate

entirely

broad

the surplus account

upon

amorti-

an

payment;

ignored.

The

a

to

The

big

sav-

ings banks with large surplus accounts naturally frown
such practise. Then, again, high prices tend to re-

upon

strict
power

All

the

growth

of the
of this

of

wage

deposits

by

curtailing the saving

earner.

means

that

management, as well

as

those

active

those in all

terprise, cannot afford to be indifferent

ing legislation. *" It affects them just
commercial

the
its

bill

should

passage

there

banker

will

which will

be

or

analyzed,

assured.
come

the merchant.

into

When

its

savings bank

to
as

has
,

a

forms

of

en-

pending bankvitally

as

the

The provisions of

defects

this

existence

in

other

been
new

corrected

and

accomplished
credit

•

.system

ultimately sefve all the people by the estab-

-

BANK

SAVINGS

and

enterprise

ness

a

of a day.

For

forty

was

before

introduced

written

until

not

but

will

1910,

it had

for

service

The

it become an accoim

did

is

soon

it

doing, for happily we are now in a

and is

done,

has

position to deal with

may see

limited way in January,

The service was installed in a

of its progress

so

-

hundreds

of thousands of our newly-made citizens distrust the
banks and will not patronize them. They have absolute

familiar with the Important features
But

far as figures can tell the story.

'

No class of men know better than you that

f

•

1911, and you ate

The banks

the effect of the service in its actual applica-

tion to the affairs of our time.

longer theorize.

results and need no

We teach them to Save, and they

want larger returns for their savings.

then get the accounts.
Having thus outlined the purposes of the service, I
will now point out some of the results attained that you

now

what

of

something

told

too frequent to occaThe Postal Savings. System is a fitting

ture attracts them.

of every political party,

permanently estabin the few minutes that I shall speak you

so

be

25,

*'

than in what they may earn. They are thinking of the
principal, not the interest, and it is only after they have
learned the rudiments of saving that the interest fea-

hundred bills were

The call

succeeded.

one

the platform

June

fact.

plished
lished,

into

'./*•

of the United States.

school for other savings institutions. Our depositors are
at first more concerned for the security of their savings

difficult.

and

long

the subject was before the people in

years

varying degrees of prominence, and a

been

,

.

sion comment.

ill-

The journey from ripened

sanction

statutory

to

to so

to reach hoarded savings are now

Savings System does not represent the

considered agitation

demand

large measure,

Savings System

Carter B. Keene, Director Postal

Gentlemen:.

and

President

It will min¬

come

movements which, in
result from the confusion of fixed and

The Postal Savings
By

The Postal

a

fluid credits.

that

losses

for the development of busi¬
consequent production of more

.

Mr.

actual

those

through the insidious price

investment ability.

wealth, with its greater

yet

imize
many

fairer opportunity

give a

subtle

This will

equitable banking relations.

lishment of more

195

SECTION.

confidence in the Government, and know what postal
savings banks are, for they have had the benefit of them
cold array of resources against liabilities.
They come
at home. The onfe thing that has done most to shatter
from the consciousness
of having done some worthy
their, faith in pur reputable financial institutions and
man or
woman
a
good turn just when a few dollars
close their pockets to all, save the Government, is the
might shape the course of an entire life.
So I shall
educated scoundrel of their own -tongue who, under the
deal chiefly with what the Postal
Savings System is
guise of a banker, has mercilessly preyed on his condoing along lines that cannot be measured in dollars
fiding countrymen. It is nothing less than a public
and cents.
scandal that so many bogus private banks, officered by
The divergence of opinion regarding the
service is
unblushing swindlers,, are suffered to exist, and if some
always traceable to different standards" of measureof our societies, which are endeavoring to better the
rnent, and it. may be well, early in this discourse, to
condition of our newly-arrived immigrants, would first
state briefly what the Postal
Savings System is dedirect their attention to bringing these heartless crooks
signed to accomplish and what it is not expected to do:
to swift and certain punishment, the other task would
It is not a money-making adjunct to the Post Office Debe wonderfully lightened and simplified,
partment, nor was it intended as such.
Its aim is inI am not going to burden you unduly with statistics,
finitely higher and more important.
Its mission is to
but some of my contentions are so capable of positive
encourage thrift and economy among all classes of citiproof that I must draw upon them,
zens.
It stands for good citizenship and tends to dimin- :
On June 30 last, the end of the .fiscal year, we had on
ish crime.
It places savings facilities at the very doors * deposit, in round numbers, $33,800,000 standing to the
of those living in remote sections, and it also affords
credit of 338,000 depositors. Nor is this all, for $3,500,opportunity for safeguarding the savings of thousands
000 has been withdrawn from postal savings depositorgentlemen, are fully aware that the happiest hours

you,
of

banking

your

in the

experiences are not reflected

„

who

nels of

be

trade

rest

stimulates

and

distinct

and well

think of
that
with
and

sent

no

does

It

business.

legitimate

other effective activity of the

enterprise.

conceive

prise has

of

t

none

But
in

1

know

which

is

were

the banks,

was

A

even

more

were

canvass was once

to ascertain where the

ing from,

and that they owned
These figures are the

significant since the United States Census of 1910

A large percentage of the

Sav-

ties where the larger industries are carried chiefly by

foreign or transient labor.

Sixty-five per cent, of the

postal savings depositors in New York City are foreign
born and 82 per cent, of the deposits belong to them,

its establishment.

Two-thirds of the depositors at Butte, Mont., are for-

made by the Department

eign born, and three-fourths of the deposits are in their

postal savings deposits were com-

and no depositor was found who

post office.

Caucasians,

postal savings depositors are in cities or in communi-

names.

On the contrary, our files are full of

One-half of the depositors in Chicago are for-

eign born, and to their credit stand three-fifths of the
deposits.
Here in Boston, more than half of the depos-

had trans-

ferred his account under normal conditions from a bank
to the

bovn

of our entire population.

instance

the only institutions which it

hinted could be impaired by

systematic

foreign

private enter-

Experience has proved to a mathematical

which

have changed, it was

places foreign born Caucasians at only 16 3-10 per cent,

certainty that the service has been a positive advantage
to

believing the ratios

51 per cent, of all the deposits.

I can

interfere

been affected injuriously by the Postal

ings System.

for

reason

ascertained that 36 2-10 per cent, of all our depositors

postal service

of no

any

By an ac-

tual poll of the depositors last year, and there is no

un-

field

Its

It has no competitor.

defined.

ies for the purchase of Government bonds.,

and

commercial

quiets

not, in some slight degree at least,

private
can

abroad.

Government

which otherwise would

millions of dollars

or

the

It turns back into chan-

other institution.

no

hoarded

in

confidence

absolute

have

will trust

-

itors are foreign born, and three-fourths of the deposits

in their names.

Other cities, maintain these per-

reports from postmasters who explain the falling off of

are

deposits by the fact that accounts are being transferred

centages.
The prediction that the Postal Sayings System would
keep on this side of the Atlantic enormous sums which

to local

tension

banks, and letters from bankers urging the exof the service




to

points where they are unable

196

BANKERS'

<

had hitherto gone abroad has been fulfilled.
of money

The amount

orders payable in foreign countries

showed

rapid annual increase until June 30, 1911, when it
gregated
of

for

the

post offices

but

$109,800,000.

year

made

were

A

limited

large cities.

the

amount

500,000,
in

During the

of

foreign

the same period

orders

dropped

Board
all

1911

over

ingt but explanation lies
sent

their

in

fact

the

that

home last

savings

thousands

their countrymen in carrying on the Balkan War.
also

war

for

affected

thousands

than three

tirne in

the

of

number

and

depositors went home to

hundred Greeks closed their
small

a

West

Middle

city

So

I

feel

to

money

that

it

System

■

checked

foreign countries,

the

and

have

been

has

returned

to

legitimate

the

of

called

business

drawn.

were

the

Congress
ity

ters

from

from

of

that

under

be

city -

to

the

community, and that

or

Federal

State

or

supervision

boot-

A
0f

which

deposited

funds

are

its

in

handled

disposition

from

favor,

effectually

and

locality.

So

-

automatically,

considerations

of

the

wisdom

curious

that

the

postal
York

but

ket

is

ings deposits.

The

San

next

Columbus,

St.

St.

if

posit.

postal

the

savings

cording to the population

is

that

their

political

or

depletion

of

taut

ones

may

ter-General

pointed
tions
to

accounting

with

a

view

the

which
went

i

business

our

index

in

of

in

is

than

the

order

$100,000

revive

business

the

and

more

value.

with

administration

approved
on

July

complex
more

by

the

the

1,

details,

economical

The

new

of

made

the

and

The

been

emergency

credit

abolished, which

,postmasters,




accounts

means-that

involving'

endless

bonds

regulations,

'

of

as

such

inar-

exceeding par.

Ac-

city

any

in

the

30,000,

over

United

received

are

to

liberal

margin

would

call

of collateral

have. called

special

for

greatly

either

Post

just

for

sur-

when

additional

•

attention

the

the

to

one

Office

important
banks

some

The Assistant

grasp.

Department

savings

determination

required

as

expedited
original

as

by

attorneys

it

if

now

Ilis

funds.

whether

of

as

ex-

they

" supported by

are

the

Postal

the

banks,

to

the

in

supplemental

or

tliein certified copies of

recorded

the

Savings

effect

tendering

security,

for¬

legal opinions of

rep-

that,

on

examination

of

proceedings leading up to the issue of the
found

was

that

statutes,

bond

all

the

requirements

ordinances,

necessary

the law

of

and

the

of

the

resolution^

of

the

;

•

:

will

be

au-

power

of

the

:

State

such

a

or

opin-

proceedings

examination

by

v
in

the

determina-

if attorneys' opinions

nislied show that the bond is

taxing

the
of

recorded

legal

rendered

question,

of

absence

intelligent

an

second

obligation

In

transcripts

assistance
the

valid

a

for

office.

Great
tion

is

issuing it.

certified

ions,
are

charge

municipality

with

fur-

the general

upon

the

citation

of

authorities that may be pertinent,

In

other

words,

the

Department

character of evidence that

utable bond

an-

of

bonds

this

to
j

house

before

or

a

would

purchasing

them,

Savings Act authorizes

a

majority

instances,

tiered by attorneys acting, for

as

and

as
•

of

same

a

rep-

to

the validity

in

addition

of the kind

to

which

Board of Trustees
..

opinions
bond

the

required by

are

accept.
In

desires

be

prudent bank

showing that the securities

a

the Postal

.

book-

be

that

without

correspondence,

Many banks are, therefore, happily
a

involves

municipality

transaction

with

par.

of

per

thorizing their issue have been fully complied with, and

and

33,000 accounts

75

Under the first head examination
by the law office

bonds,

regulations,

have

only

as

deposits of postal

Constitution,

also

postmasters

accepted

value, such value not to be considered

taxing power"

utable
the

dealing

many

for

ward with

alone

but

expeditious

of

former

validly issued, and whether they

will

ae-

impairing the safeguards thrown about the service*
.

accepted at their market:

are

the legal acceptability of bonds tendered

upon,

bonds

,

ap-

Trustees

the

are

Act.

regula-

in

have eliminated
and

Bonds of any State and

cent,

to

animation
-

inipor-

respect

desire

security

Postmas-

methods,

Board

this

to

•

given certain classes

now

considered

were

Attorney-General

census

administration,

not

they

market

passes

de-

divided

were

thoroughly

service,

with-

to whom

The drafts incident

and bond houses at first failed to

of

pop-

on

by the last

to

his

for

the postmasters

on

change in practise, the full import of which

sav-

25,000

improving business methods

effect

noying and
of

in

7,000 depository banks.

were

into

to

the

and

to

interest

early

committee

a

applicable to

with

of

prove

Burleson,

The postmas-

funds

secure

security under former valuations.

Boston, Portland, Ore-

reference

the

be

increasing, deposits

one

.

and

at

acknowledging deposits

now

population of

a

par.

$10; Butte, Mont, $9; Anaconda, Mont., $7.
Many things have, been done in the last, seven months
to simplify, the administration of the
service and exusefulness

having

find

$23; Goldfield, Nev., $20; Tonopali, Nev., $17 ;
Astoria, Ore., $13; Bisbee; Ariz., $12;. Ironwood, Mich.,

its

to

municipal

prised to

credit

tend

under

not

exceeding

reports, every citizen of Leadville, Colo., would have
his

value

value

savings

named

funds

in

made.

are

Territory of Hawaii

removing, their

little

shown

as

banks

non-banking points.

at

personal

more

the

numerous

Formerly

a

Paul,

mation, each of which has

postmaster

as

of cities there of less than

score

the

qualify

activity at present, is in the Far West,
where the growth of the service has been
phenomenal.
a

by

a

in-

are

This, top, eliminates much expense

higher collateral value is

States

Our greatest

We have

deposit

where

remittances

may

Cincinnati, Kansas City,'
and .Philadelphia.
'

Louis,

daily

postmaster

their

value, not to exceed

the

cities,

Brooklyn,

are:

Francisco,

ten

nearest

and

Post-

banks

at 90 per cent, of their market

Chicago lead both in population and

savings receipts,

located,

amount.

bank

it

but

honor

solvent

savings business done in them, except that New
and

gon,

cities

to

of

des-

a

local depository

no

are a new form of government paper.

ceptable

qualified banks

inexplicable feature of

population of

specified monthly

non-banking offices

market

of

section of the country for the benefit of another.
A

authorized

now

that

the credit

any

thus

preventing

is

security deposited by banks.

0f the

postal savings depository, and receive its share of the
funds

at

practise

Savings Act, which par-

deposited forthwith in

require

deposited to

value, not to exceed par, as against 90 per cent, of their

monument

a

city

a

single

their remittances

Postal

American

that funds amassed in any city or commun-

are

Shall

Postal

as

to

and annoyance to

t

ticUlarly stand forth

each

up

a

from these

one

~

The provisions .of

in

drawals by means of drafts

flow

regulations

new

be

remit by mail to the

eluded in

leg and mattress depositories millions of dollars, which

they

The

savings funds

the banking point.

their

on

authorized

an

postal savings funds, representing

Trustees.

account,

now,

More
at

other

qualified bank is

«

be yfairly said that

may

has

of

The

fight.

accounts

of

postal

this

deposits,

and started

journey to the front.

Savings

of

amount

The account was replen-

masters, at offices which have

assist

to

year

All

ignated bank

At first blush these latter figures are less encourag-

depositors

ba*tp an emergency credit ag¬

withdrawals^,

the official checks of the local postmaster drawn against

$7,300,-

was

meet

the Board of Trustees, and to meet withdrawals

and

The falling off in foreign money
year

$ld plan, each postmaster main-

about 7,000 accounts, were deposited to the credit of the

$97,-

year,

the

designated

maximum.

postal savings deposits leaped from

during the last fiscal

to

1912,

to

Under

a

islied from time to time to maintain it at

,

deposits until

$12,300,000 less than- the previous

or

$667,000 to $20,200,000.

000.

orders

money

in

count

.

1911,

ended June 30,

year

with.

away

tained

ag-

the fall of that year, when the service was extended to
the

*

keeping, and interest computing details, have been done

a

number

depositories in January,

substantial progress was made in

no

CONVENTION.

have

houses

or

been

ren-

banks

on

BANK

SAVINGS

predate it more highly. Hawaii had postal savings
banks of her own from 1880 to 1900, and when annexation to the United States compelled the discontinuance
of them, 7,494 persons had $730,356 on deposit. The
population of the Islands has almost doubled since then,
and the outflow of money to foreign countries has
kept pace with the tide of immigration.
Last year
$1,000,000 went out from Hawaii in foreign money
orders, while only $15,000 came in through the same

certified

bonds tendered as security and

the validity of

sufficient to satisfy
tke Department upon the point.
Such copies will he
retained for the files of the Department, as will also the

copies of such opinions are usually

will

be

preserved,

if

and,

they

that

houses

which

take

sold

up

Bond

•

form

before

decision

a

will

be

it would be

impracticable to attempt to

Furthermore,

speculative

an

advance

and,

purposes,

opinion might

if

the Department

defined
be

to

of .bonds

no

and

statute

by

valid

and there appears

for advance decisions

reason

thirty-three months, postal

In

to 12,153

been extended

stations.'

and

.

for

it

offices

the

Department to install the service

gardless of promised usefulness.

places

the policy of

It is infinitely more ■

faciii-

but partially covered,
known demand for the advantages

which have been

and where there

afford,

de-

Exten-

automatically, re-

develop and expand postal savings

important to

they

branches

savings

will be made as rapidly, as substandevelops, but it is not

demand

in

are

fourth class.

tial

ties

specific

savings facilities have

positories, also 3,965 offices of the
sions of the service

on

not be offered.

post offices and to 667

Presidential

All

well

that we can accept are

regulations,

issues, yvhich have not been and may
•

equally accept-

be

ruling, would

advance

The class

abler

to

which there,

.

no

were

price might result,

and less expensive issues upon

other
been

be asked for

certain issue of bonds would be

advance that a

accepted, an unwarranted advance in

had

Department./

bonds not regularly before the

upon

when

With the

announced.

approval, requiring in many cases exhaustive

for

rule in

which ,was imposed upon a corps

Our uni-

variety of bonds before the Depart-

and

examinations,
pass

advance decision

an

securities.

that the securities must be actually ten-

large number
ment

for

ask

of certain

acceptability

reply is

dered

sometimes

houses

the

to

as

requirements, and I want to assure you that only those
actively identified with its birth and its building can
form any adequate conception of the' enormous task

copies

them.

and

is a

to

this end a carefully

thought out
begun. A

campaign of education and publicity has been
leaflet of condehsed information
in

all

of

the

leading

foreign

on

of officials totally in¬

experienced in a service of this character. Policies were
speedily adopted, and innumerable details worked out
with no chart or compass. But experience has proved
that the general plan of operation is sound in principle
and practical in application.
Improvements have been
made as defects and deficiencies have become apparent.
The formative period with its confusion and uncertainties has passed, and, the time is now ripe for still further improving its administration and for enlarging its
usefulness. And I consider that the service is particularly fortunate in being directly attached to the Bureau
of the Third Assistant Postmaster-General, which also
has • supervision of the fiscal affairs of the entire postal
service, now aggregating more than $300,000,000 au¬
nually. At the head of this great bureau is Governor
Dockery, of Missouri, who brings to his* new post a
wealth of. experience and executive force seldom seen
in official life—many years a banker, sixteen years a
Member of Congress, four years the executive head ofhis State, and wTith it all in constant touch and sympathetic accord with the people whose untiring servant
he has been.
The Postal Savings System appeals to
him strongly. He sees what it means to the happiness
and prosperity of our people, and is putting into its
upbuilding and strengthening the same thought and en-,
thusiasm that lias characterized his entire life,
After all, the Government can go so far and no further in advancing the abiding welfare of our people,
The larger responsibility rests with the. people themselves. Is it too much to hope and expect that there
will be a greater awakening to the opportunities which

the service, printed

languages,

•

Our postal savings system is distinctly an American
institution, fashioned to meet American conditions and

with a view to

procuring the loan of the original documents or
of

channel.

the bond

with

matter

the

the securities,

them

If the

completed.

just described, it is sug-

banks do not have the evidence

gested

bank or

be returned

will

necessary,

legal examination has been

after the

opinions

no

documents, they

furnish only the original

house to

bond

proceedings where

If, however, it is possible for a

furnished.

are

of

transcripts

certified

197

SECTION.

is now being

prepared for general distribution.
The Postmaster-General recently directed the install a-

this service brings to millions in unconscious need of it,

No section of

dence, we shall have, at least, the moral support of all
who/are concerned in our national progress.

tion
our

of

postal savings banks in Hawaii.

domain

was




more

in need of the service or will ap-

and that in

.

our

crusade against waste and improvi-

Detailed

Report of Proceedings.

Twelfth Annual Meeting SAVINGS BANK SECTION, Held
Copley

•The

Savings

ciation
at

convened

10

in

and

a.m.,

Copley

President

llall

morning

liam

Herbert

ask,

gracious

O

Section

will

we

by

Asso¬

October 7,

the

It.

for

favor;

and

finally

through

God,
the

in

of

in

for

a

Bankers'

this

works

our

we

day

and

ruler,

give

who

has

obedient

us

accomplish

what

Rev.

Wil¬

*
most

begun,

con¬

high

your

the

for

day

Thy
to

us

for

labor

service

do.

of

treasure

crimination
mote

them

mercy

from

Keep

uncertain

Supply
this

our

is

rest

and

May
the
"

the

all

but

Thee.
life

busy

work

holy

and

him

Thee,

world

done.

is

of

grace

O

Lord,

Thy

from

Bank

President

Mr.

:

grant

unto

unjustly with

their

and

of

the

greed,

gold

and

fever

the

the

of

grant

mercy,

Jesus

Christ

of

the

trust

nor

S.

dominating
trustee

is

safe

savings

love

older

of

conies

and

of

his life

the

to

the

industry

and

Amen.

Norris, of the Home Savings

of

this city, and who is
president of the Massachusetts
Treasurers' Club of the Savings Banks of the
State, is here, and
will give us the glad hand and-a short
address of welcome.

(Applause.)

the

as

treasure

in

based

community.

Pos¬

East,

and

he

important

an

old

Savings
of

in

that

The

lose

of

who

us

Banks—of

truth

of

the

the

enduring
form

that

world

the

ourselves.

good

measure,

over;

and

greed

Address of

all

should

if

it

is

in

thrift, the

of

President,

Welcome, by Charles S. Norris.

the

Ladies

and

Massachusetts

and

the

to

Massachusetts
the

honor

and

incorporated
Institution
Banks

in

Mutual

not

be the

to

begin

in

Savings,

Savings

to

pressed

1

be more

we

to

of

The

capitalized

as

down,

we

be

Savings

Bank

the

people

given unto

and

all

of

some

the

the

your

hands

he

of

the

respond

together

hear

Creer

from

and

,

know

to

and

of

that

behalf

Savings

Banks

to

call" upon

are

cordial

a

"or

more

of

welcome.

sojourn

your

of

the

banks

here

of

years has

He

been

has

will

be

a

the

upon

the

Committee;

address

William

of

R.

introduction

no

attend

meetings

therefore

welcome.

Creer,
to

of

of

this

the

We

Executive

request

will

Cleveland,

audience,

Savings

be

glad

those

as

to
Mr.

accus¬

Association

On

President,

behalf of
to

the

respond

through

Mr.

Ladies

and

Gentlemen,

and

Mr.

Norris:

Savings Bank Section it gives me great pleas¬
the hearty welcome which has come to us

to

Norris

from

the

Savings

Banks

of

Boston

and

the




Central

and

Middle

West

look

to

it

is of

-V''

Mr.

Norris,

and

broadened and

bet¬

in

Savings

Bank

vo¬

work.

-

been

and

year,

Massachusetts

the
of

the

for

custom

number

a

of

brief address covering the

a

such

address

an

I

will

read

now

President, Rome C. Stephenson.

the

Section.

of

cates

the

of

the

ried

various

by

on

the

of

its

interest

but

cities,

Bank

bers

in

and

of

by„ the
many

the

become

its

and

and,

outside

it

invitation

result

the

is

Savings

be

useful

Banks—

of

its

to

all

given
become

to

that

larger

scope

was

the

com¬

operate

The

could

savings deposits

The

payment

Commercial
the

of
ac¬

exception;

Companies

that

and

car¬

been

the

an

customers.

found

and

Section.

was

immediately

received

made

been

have

that

ago

is

originators

that

Trust

their

birth

has

the

and

untiring

an

Savings Banks and the

Companies

enlarged

that

that

results

Sav¬
advo*

Hanhart;
as

retrospect

work

reversed,
of

and

a

department

banks

benefit

departments;
were

to

always

years

met,

the

enthusiastic

William

him

When

apparent

savings

Trust

*

constructive

so

a

after

Savings Bank

mem¬

membership

constantly

a

satisfactory
officeholders

equally

applicable

derived

are

There

so

lias

been

after

ahd

and

a

substantial

that

the

"few

that

we "lose

tendency

and

of

on

the

another" of

information
to

other

growth.

die

and

membership

on

the

interest

to

of

the

each

To

It

none

our

of
the

has

Section,

as

Section,

subject;

therewith

said

of

and

this

is

the

benefits

by resignation.

the members

members;

enable

been

resign;"

members

part

conuected

subjects.

of

no

officers

painstaking exhaustion of

practical
pass

to

obvious

committees,

subject

then

soon

the

Banks,

is

annual

increasing, and, to-day, finds our Section
largest, in point of membership, in the
Association, and each year

political

ous

the

have

institutions that

Section

the

comparatively

.

organized

and

secretary,

becomes

justified
been

Council,

remefnber

commercial

for

activities

the

this

very

savings

the financial

it

operated

the

Savings

Association—a

advancement.

and

not

conditions

Section

work

has

all

1902—^during

year

energetic

former

will

and

fully

departments

both

our

Section,

that

nearly

savings

was

most

deposits was-limited

on

the

the

Executive

the

Section

were

It

the

of

activities

the

banks

now

of

One

success

movement

mercial

the

in

Bankers'

representing Savings Banks of this country,

approval

Section

members

worker, for

Orleans

American

ipen,

with

and

of

of

Bank

ough

Massachusetts.
We

has

It

New

ings

the

of Welcome.

of

and,

shows

ure

past

number

operating

.

Reply of William R. Creer to Address

running

as

r

city

that

Ohio.

Banks

the

small

to

I

again,

.

convention

of

morning

closely identified with the

served

called

-

the

complished.

"..-.V-v •/"

this

present

In

the

Massachusetts
-

gentleman

a

been

you.

President:

Annual Address of the

in¬

an

Treasurers'

one

..

him.

Mr.

have

you.4

to

shall

so

sympathetic and useful in the various

we

of

the rest of the.-Week than he has the first,

Executive

Mr.

needs

tomed

thank

be

or

Savings

entered

you

welcome,
shall

we

work

immediate vicinity of your head¬
hope that all of you who can will

I

Section.

to

I

more

here

oldest

the

There is

:

as

cordial

your

for the President to prepare

know,

you

for

which

to

what¬

you

fellows, of deposits

years

Committee, and he has also been president of the
Savings Bank
Section, and his time will expire this year as a member exofficio

cations

that

State bank, in our

serve

shaken

true,

as

have

we

States? the Provident

Boston ;

will receive

In

/-/.

number

a

in

and

borders

our

United

perhaps

invitation

stay,

one.

President

for

Massa¬

the hope that the clerk of the weather will

you

welcome' you.

who

you

your

pleasant

Savings Banks,

the

as

in

and

express

kind

to

tered aiid made

The

having in

in

in

of the

where

to

days

very

of

Massachusetts

Boston,

banks

want

two

the

yourselves

these

of

here

placed

visit the banks

in

president

Club'the very

welcome you

morality.'

with

••

you

is

good

is

Give and it shall be

Banks.

from

quarters
avail

home

Savings Bank

There .has been

Club

the

distinction

for

to

me

school,

what

as

coupled

trust company or a

a

deliberations

our

bulwark

the

in

whether it

....

city of Boston.

is

Massachusetts,

vitation

upon

As

:

Savings Banks Treasurers'

pleasant duty has devolved
chusetts

Gentlemen

and

re¬

econ¬

Massachusetts

institution,

that is just

thank

trust

Mr.

...

is predomi¬

institution; but

my

anything else.
We

man

a

is just as true in

If

or

a

the

of

want to. get from these great, strong,

we

Savings Bank department, that
serve

thrift

thing, it is not going to

institution

institutions

of

in

of service; and as

One

anything else.

the

be

act

Scripture, that if

it, and

thought

thought,

should

coupled with economy, just

trusteed, whether it be

we

1

by the savings habit, because what good

the thought

the

in

factor

a

benevolence.

Banks

all

for profit but
the

of your

unless it is

and

ever

one

inter-,,

is, his heart is liable to be

minds

must

as

that

fastened

so

is

that

their institutions.

Savings

one

benefit

intelligence in
And

Banks

are

feeling that after all

the savings of the people are after

be

out

they

lose ourselves in the thought that the

we

the

worked

Savings

and

disinterested

as

the

realize

we

character,

is

and

God

in

institutions

to

When

should

foreverinore.

mutual

the

is just

stock

no

element

find

long

lodging

own

capacity" for

grow

of

over

in
the

nant, if seeking for profit is the only

Lord.

our

the

all,

day

here

man's

been

of rounded years and experience

have

we

institutions
a

service

men

have

you

people, that it is not
we

abiding

an

evening

life

us

and

us

up

has

that

of

Massachusetts.

many

underlying the mutual

extortion,

hope

lay

all

us

lengthen
the

to

many

companies

know the trustees of the mutual Savings Banks of

you

however,

bound

from

our

through Jesus Christ

Charles

hand

so

of

fact

of

matter

a

which

Of

have

thought

where

Massachusetts

omy,

fail

not

fellowship of the Holy Ghost lie with

The

deal

make

that

would

out

support

and

last,

Lord

our

who

us

shadows

in

the

pro¬

living God.

let

hushed

Then,
at

peace

the

and

the

not

us

dis¬

which

existence,

spoil

children

let

And,

until

those

unrighteous

distinctions

poor.

for

his

from

the

the

struggle

these

in

and

and

with

temporal needs,

with

the

rich

who

malice,,, and

troublous

and

covetousness,

man,

the

those

riches,

our

treasure

and

man

deliver

us

and

envy

all

Change the hearts of
and

men

spoiler.

from

between

upon

relief."

fellow

in

between

antagonism

Have

and

not

is

all

upright employers and all they employ; secure to them the
just recon/
pense
of
reward;
defeat
the
schemes "of
dishonesty, extortiou and
fraud,
and save our country from
the
tyranny of wealth; reckless
waste

as

Bank

also, and

that

Bless

laws

benevolence possibly

mean

provided

do

It

insurance

that

upon

the

why out there

Savings

life.

givest

central

leisure

ested

and

name,

west

haven't

we

reason

Thy

into

world.

standard

self-perpetuating organizations,

the

upon

and

have

we

are

the

the

based

are

further

sibly

consultations

hearts

Thou

We
These

Dewart.

that

glorify

may

the

the

States

in

of

incorporated

Association

Church.

obtain everlasting

and

by

prayer

William Herbert

doings

our

all

to

Episcopal

day that

rest,

cheerfully

listen

the

mercy

creator

our

night

may

in
this

Thy

American

uplift
laws

reserve

United

Savings Bank, of

opening the proceedings of

the

Rev.

all

that

ended

she is the mother of good laws touching savings
institutions and life insurance and other things that make

economic

the

C.

1913.

guidance;

bank

1913,

President,

Joseph County

In

:

of

first

Dewart

Lord,

tinued

we

Tuesday,

order

for

1913.

Bankers'

and

Invocation by

and

October 7,

American

on

to

St.

Stephenson

Bank

this

0

the

Bend, Ind.

Savings

We

of

called

was

Stephenson, Vice-President
South

Hall/ Boston,

Bank, Section

Boston, October 7,

at

to

to

to

the

to

of

make

present

the

the

take

vari¬

up

one

a

thor¬

the

facts

members,

members

to

get

and
the

SAVINGS

of

benefit

full

been

already

has

that

work

the

done,

Savings Bank Section should be kept
for reference, and great benefit will be derived

proceedings of the

both
to

of

review

sional

surprised

been

have

that have heretofore

Section,

Savings

It

for

thought

forts

to

made

were

prevent

satisfactory

be

reasonable one—that it should
it would be unwise and
further agitation of the subject by attempting

its

to

that

and

sponsors,

unjustifiable* to continue
to make additions and amendments thereto.
The manner of dealing
with illiterate depositors

was

to
to

tion.

to

of the Section;
and,, when it was
safely deal with
illiterates by usiug that method,
the, attention of bankers was called
thereto, and they were earnestly recommended to adopt it;
Many of
the banks commenced using this method, but others
found that the
expense
of obtaining the necessary instruction and" initial apparatus
was
apparently excessive, and in .many instances impracticable.
Re¬
cently,
however, one or two of the large stationary establishments
have issued booklets giving complete instructions for taking and mak¬
ing comparison of finger prints, which are being sold in Connection
with the apparatus for taking the prints, at very reasonable prices.
The banks
are
now
rapidly adopting the system,
and no longer is
identification by the officers
determined that the banks could

sibly
and

be

the

forged,

as

the

The signature

undesirable.

illiterate

fraud

attempted

an

of

prints

finger

thereby is

two

person

are

cannot
never

pos¬

to

William

Kniffin

Mr.

entitled
which

for

" THE

was

Kniffin,

promptly detected.

and

who

Jr.,

was

BANK

published.

It is

the real work of the

"

angle.

which he is the author,

PRACTICAL WORK,"
rich in interest from a historical

AND

ITS

institutions is exemplified from
•,

K

have found pleasure in
connection with the general
plans of the Association; jand this attitude upon the part of the Sec¬
tion has been "emphasized in the earnest effort that has been made to
The

members

working

of

the

harmoniously,




of

•••

Mr. E..G.

Section,

our

McWilliam, has

original and intelligent in connection
the discharge of his duties, and the Section is to be congratu¬
in having found such a capable and valuable man for the posi¬
In his report he will give you in detail an account of his activi¬
industrious,

is

of many that the . Section never enlisted in
far-reaching plan than the endeavor to educate
people upon the subject of thrift and economy.
The attention of
many persons, who had become spendthrifts, lias been arrested through
the efforts of Mr. McWilliam, and a start made to a competence by
is the opinion

important and

the

taught

to

it will form habits
of money saved

save,

the school-savings

of

that will last through life, and,

sipall, yet in time the

is

localities

by the school children in some
banks will be amazed at the results
In many of the savings institutions, the

amounts

the

while

Every banker

for years.

show

to

The result of this work will con¬
realizes that if the child is

savings accounts.

of

opening

scheme.

•

of persons who started small

to-day are in the names
when they were children.

largest accounts
accounts

'

•

; '

Huttig, of St. Louis,
Association, occasioned , uni¬
versal sorrow among the great army of friends and acquaintances.
He
had been for a long time an active member of the Association, and by
his warm, genial and sociable temperament he had attracted all with
whom- he came in contact.
He was a man of unusual executive abil¬
ity and intelligence, and his efforts in behalf of the Association were
always upon a high plane and unselfish. —
The officers of the parent
Association, the executive officers of the
Section,
the members of the executive and special committees, the
vice-presidents in many of the States, and various members of the
Section, have all rendered efficient and helpful service in connection
with
the
work
of the Section during the past year, and I extend
my. heartfelt thanks to all
who have made such contribution of their
time and assistance.
When my duties as an official of the Section
are concluded, I shall always
have a keen interest in the affairs of the
Section, and shall be glad to aid in its advancement and success in
the

of

president

future.

the

American Bankers'

the

•

will

We

death of Charles H.

the

announcement of

The

Committee of the Savings

Executive

of the

and

who " also

the important position

occupies

Savings Bank of the City

of the Bowery

is

It

largely

of

make much

Chairman of the Executive

for the

unnecessary

Committee to

KNOX.

of the Savings Bank Section :

and Gentlemen

Chairman

Bank Section,
of. Comptroller

of New York.

OF WILLIAM E.

AbDRESS
Mr.

William E. Knox, Chair¬

hear the report of Mr.

now

man

of

report, because in the nature

a

covered very considerably by what
in his report giving the detail work
is customary, I have prepared the

things what he has to say is
the

to say

Secretary has

usual

But,

Section. "

the

of

as

report.

•

.

Report of Executive Committee, by
•

[Mr.

William E. Knox.

lication.]

Savings

at

all

Bank

times,

Section

in

!

.

will

We

President :

The

found on page 208 of this pub¬

report will be

Knox's

report of Mr.

listen to the

now

Savtngs Bank Section.

Secretary of the

E. G. McWilliam,

Report of the Secretary, E. G.

McWilliam."

report on page 209.]
behalf of the Membership Committee, a

[We print Secretary McWilliam's
'•

In

President:

The

E. Edwards.

report will be made by George

by George E. Edwards.

Report of Membership Committee,

of the Membership Committee appears on

[ The. report

;

209.]'
The

' V-

■

and

us

Fisher

the question, " The

:

President,

Mr.

this

why I have chosen it.

year

have

since
you

that
are

some

I

was

read

the

of

When I was asked to speak before

principles

the simple

ignorance ex¬
of banking.
I

minutes

of

the

Senate

Committee,

and

find a prominent Senator

continually reiterating the

best basis

for currency in this coun¬

he believes the

good

mortgages

again,

real estate, you ckn see there is
relation to this particular subject.

on

need of education in

Then,

Ladies and Gentlemen, the

and

almost stunned by the dense

some

upon

when

try

consented

Relation Between Fixed

Banks and Currency in the early part

the House Committee on

fact

Comptroller of the

suppose,

you

the

York, and one of the most

D. Fisher, Deputy

has

pressed

«
*J
connected with the

which will arise in your minds is, what
subject to do with Savings Banks, so I want to tell
I

question,

of

men

page

Credit."

Fluid

Mr.

upon

busy

this morning and has kindly

city, and he is present
address

the

'" *7

City of New

affairs of the

valuable, is Mr. Edmund

to

v

■

of

One

President :

financial

formerly

that comprehensive book of

SAYINGS

recently

standpoint,
every

H.

approval

secretary

he

that

more

alike,

secretary of our
Section, made the suggestion for the proper celebration of the Savings
Bank centennial in 1916, for which due provision should be made by
inviting the participation of the mutual Savings Banks, both in fur¬
nishing historical matter and in the necessary expenses attending such
a
gathering.
While it is probably too early to prepare now for this
celebration, it should be borne in mind, and within the coming year
definite plans should be made to fitly celebrate this important event
in an appropriate manner by our savings institutions.
Heretofore there
has
been
very
little literature published bearing upon
the Savings
Banks,
and the bankers interested therein owe a debt of gratitude
Mr.

currency

the

.

of

account

the

that the effort that is now being
bill will result In a law that
of our leading financiers and bankers

hoped
a

pass

the banks,

of

method

finger-print

to

the

with

but it

ties;
a

formerly an

and in many localities the accounts
persons who could not sign their names were not received,
owing
the uncertainty of getting the proper receipt for money paid out
such
depositors.
This condition led to the investigation of the
puzzle

and

enigma
of

lated

that the establishment of
to the banks of the country

general that the law passed was a very

is

present

with

enactment

the

It

progress.

meet

The

Savings Banks in

the

to

laws

of

to

Congress

in

shown

years

particular, and strenuous ef¬
of laws for the creation
of the post office banks.
There was never any real demand there¬
for ^on
the part of the public; but the scheme was pressed ands
fostered by a few persons who were in favor of the adoption of the
plan
that had been 'operated successfully by some of the parental
governments Of Europe.
Bankers generally were, and still are, of the
opinion that there was no occasion for the government of the United
States to go into the banking business in opposition to the large num¬
ber of financial institutions that were being operated by its citizens
in every nook and corner of the country; and, although the opposition
was
unsuccessful in defeating the bill} the results obtained, and the
amount of deposits received, by the. Postal Savings
System has been
a
great disappointment to those who worked so ardently and continu¬
ously for the passage thereof.
It is also gratifying to the bankers
to know that the system
has not interfered with" the banking inter¬
ests, and there has beeu no complaint in any portion of the country
that would tend to show, that any considerable amount of-money has
been deposited with the government that would have gone into the
banks—had the system not been in existence.
The belief, however, is

generally,- and

have we believed that the bankers of
that would be beneficial to them

nor

favor

in

detrimental

throughout the United States.

••

of

number

a

Banks would be a menace

Savings

make

will
.

Section,

of the State institutions.

was

Postal

being

made

of savings deposits by the banks that
Banks is one that has received con¬

by this

interests;

were

the bankers in other localities; but we
have advocated the passage of laws that would give us a sound and
elastic
currency,
with full
knowledge of the fact that - the banks
could not be prosperous unless the manufacturing, agricultural, mining
and
commercial
interests should first be enabled to thrive, expand

while

and

but it has occasioned a
the deliberations of our parent
advocated such segregation have
done so from a purely unselfish standpoint—as all the arguments and
reasons
therefor arise from the viewpoint of the depositor; but there
seemed to be such diversity of opinion upon the subject that it was
thought prudent for this Section to cease pressing the matter.
Daws
in the different States will, in time, be enacted to adequately provide
for the investment and segregation of savings deposits,
and this will
come to pass when the general public mind is aroused to the necessity
therefor, by further development and extension of the savings depart¬
ments

Section

The bankers who have

organization.

would-

commercial

discussion in

of animated

deal

great

not only

attention,

siderable

feeling

one

tinue

mutual

strictly

not

legislation.

the

of

idea

the

conceived

he

subject of the segregation

The
are

that

indispensable.

book

the

the

laws

secretary

obtaining the blanks and
forms used by the Savings Banks in every part of the country,
and
a
very
large collection thereof was obtained.
A committee was ereated
to
carefully examine these forms and to make a selection of
those that were approved for use in the Savings Banks.
Subsequently
these forms and blanks were reproduced in book form by the Section
and sold to the banks at the actual cost of production.
This work
was
appreciated by the banks, and many of the books were sold.
The
edition
Is nearly exhausted,
and the suggestion has been frequently
made that it would be well to revise the former publication and obtain
a
second edition.
If the matter was properly presented to the banks,
so
that
they could be informed of the value and usefulness of the
books of forms,
there is no doubt but that there would be a very
large sale therefor.
There are many of the banks that have found
the

with

presented,

helpfulness.
.
During the lifetime of Mr. Hanhart, and while he was the

of

currency

and

of merit

suggestions

tical

to find that so many subjects of interest
and that they contain so many

gratified

and

members

our

reports

various

the

in the effort to obtain reasonable, fair and prac¬
Our members have not been in sympathy
that the bankers were asking for the enactment of
operate in their favor while proving a burden to

co-operate and assist

the book of
where it can

by an occa¬
been made
and by the study of some of the excellent addresses that have been
made to the Section by men who are experts and thoroughly informed
upon
the subjects treated.
During the past few weeks I have made •
a
review of the reports and addresses
referred to, and I have been
used

be

SECTION.

BANK

I understand

that yesterday afternoon some of

200

our

in

BANKERS'

country

bankers went back into

taking the

direct

that

the

the

to

way

dim

cash

and

distant

checks

the

principle of making charges for the service,
clearings was really out of date.
That is very much

that

the

position

chinery

taken

money

England

by the

laboring

first invented;

was

earn

in

was

they

assailed,

opposition

to

in

men

afraid

were

they

so

the

England when
that

had

their

meetings

introduction

of

ma¬

all

over

labor-saving

To-day
relation
and

this

must

In
are

fluence

is

that

the

that

say

then,

two

because

This

how—he

there

has

the

is

but

gard

this

I

have

you

will

got

provide for

chosen

not

than
can

take

to

banks

lay

of

of

that

subtle

which

those

in¬

comes

himself

basis—the

analyzed which

and

those

a

protect

I
the

reform,

be¬

business

subtle

come

in¬

through

v

subject

my

Between

what

Fixed

cali

I

and

a

down

few

a

seem

academic

price

principles

day to
Mr.

deliver

this

Sturgis,

of

mittee—Mr.
tee of the

down.

It

the

address.

this

John

H.

city,

is

Sturgis,

his

I

-

V"

While

that

on

Chairman

of

will

we

the

the

Law

Com¬

Commit¬

listen to

now

his

be

less

President,

the

the

Savings

Ladies

and

Convention

last

Bank

of segregation
tion

in

of savings

Committee,

that

Section

direction

the

the

year

was

In

view

standing

appointed

to

"\:'v

the

of

idea

Segrega¬

active steps

no

U\'-:\
contain

of

copy

Bill,

it

and

this

the

short

tion,

and

seems

perhaps

to

it

/•*

.

Savings

Bank

simply make

he

has

and

been

•'

J.

an

proposed

by

then

this

time,

discussion

a

read

section

of

because
this

in

the

new

sec¬

by "section

v'-'V:''!'

clause

here

for

'y'
the

Currency Bill,

explanation to the audience that W.
Detective

address

an

to

Agency,
at

us

had

this

arranged

Convention,

I

word

that he

us

This

regrets very much

and

fulfill

afternoon

his

that

on

account

he

could

be

not

engagement.

shall have an
exceedingly interesting pro¬
fo? all those present interested in the Savings Bank
Section, and Mr. Keene, of Washington, will deliver an address

the

upon
rector

subject of Postal

of

the

shall have

Savings Banks.

Postal. Savings Banks
report from Mr.

a

followed

by

discussion

introduced

in

maximum

amount

positors in
here
the

this

of

Robinson,

Savings Bank of the Association
be

of

work

the

He

is

country.

who has
in

And

And

promptly
afternoon

of

Postal

at

2.30

deposits

that

law

Savings Banks.
o'clock,

so

be

may

I

that

has

that

deposited

hope
we

we

that will

Congress regarding the raising of the limit

the

di¬

new

had the Postal

hand.

proposed

the

you

may

been

of

by

will

the

de¬

all

proceed

be

with

session.

SAVINGS

DEPARTMENT CLAUSE

IN THE

CURRENCY

follows

from

give

opportunity to be

an

call upon

heard

to

open

this

subject,

and

we

will

Mr. J. F. Sartori, the First Vice-President of the Sav¬

ings Bank Section, and who is
mission

on

every¬

and

of

the

Federal

a

Law

member

of

Committee

the Monetary
of

the

Com¬

Association,

£he discussion.
of

Mr.

J.

F.

Sartori.

-

"

as




I

or

the

was

expecting to read the report of the Law

urged

would

and

it

seem

the

been

never

segregation

endorsed

official

Section;
Law

in

quite,

am

the

for

had

in

except

two

receipt
for

of

the

loans

and

actual

are

value

legal

a

'

to

27.

each

de¬

another

thereof,

de-

providing

for

there

the

pur¬

in

case

so

department should fall and in

one

department

one

com¬

section,

to

in

put

for

that

investment

This provision is

an

alternative

This

loans

case

no

large

provides

respects—first,

transfer * securities

been

reserve

capital.

banking.

that

sure

too

The

instance,

departmental

is

banks.

the

of

This

the

by

Committee,

Committee—as

country

act,

for

interfere

to

way,

either

think.

we

cent,

per

it

or

proper

modifications.

of

another,

it

and

be trans¬

can

is

essential

in

'

that the by-laws shall provide that notice of at
thirty days, at the option of the bank,, be required to be

given of intention to withdraw.
This section, 27,
law, should be amended to meet these requirements.

if made

the

That all de¬

posits placed in the savings department should be subject to
withdraw.

to

That

commercial

savings

a

is

of

one

the

distinctive

bank

has

the

right to

notice

ask

the savings department should

promise to pay it

ject to

notice

provide

that.
to

will

method

which

be,

what

organize
27?

of

And

to

and

well.

vides

All

the

for

the

The

of

assets

each

of

ment

of
Each

and

I

Now,

I

is

partment

are

statement

of

department

of

There

a

as

combined

tell

the. bank

increasing

the

day with

any

good deal of

tion

to

it

studied

it

been

to

in

for

of

segregated

are

that

lien

the
its

on,

For

bank.

the

morning

the

savings

I

in¬

take

depart¬

department,

in

and

The three columns

just

exactly

commercial

any

how

the

or

can

busi¬

our

savings

de¬

compare

the

other day

of the year and the

how

business is running.

see

objection

on

our

the

I think

part

of

bankers to

the objection

numerous

found

yet

comes

made

man

do

from

not

by country

savings

who

laws

has

in

the

operated

now

have

they are all

State,
under

banker who does not approve.

mostly

who

and

send

a

segregation

a

bankers

who

have

really understand it.

comes

savings

and
a

I

good

The objec¬

not

carefully

The "objection

banks that segregation would-cause

deposits

out

of

the

community.

operate in this way, but quite the contrary.

side;

segregation

.first

decreasing, and I

or

it

pro¬

statements.

morning

every

whether

say

law

provides
a

separate

a

commercial

the

can

mostly who do not understand how it works.

are

not

have

department.

segregation law as

not

for

law

our

Column

one

I

Otir

department—cash, loans and

shall

run

"down to

column

and

for the

must be

is operating

represent

capital

segregation-departmental idea.

have

has

is

is

I

provision,

and

day of the year before, to

those

sec¬

Manifestly,

question which

the

can

is

segregate

State institutions who

savings department

accounts,

come

running,

There

they also

segregating ?

also haye a trust

one
we

together make

ness

provides the

Companies may be¬

departmental.

are

the

department

when

State

quite

without suitable State

so

bank which

the commercial

statement—there

our

which

Must

permit

departmental

assets

creditors

stance,

segregation

of

10,

vexatious

a

apportionment

the

bank

assets.

be

in the act, the ques¬

and Triist

without

large banks

investments,

the

subject

section

and

such"

therefore be

California

assets—all

from

segregate

adjusted.

the

State law
should

law,

a

I have above stated.

as

of them do

many

become

to

This will

works

deposit that is sub¬

a

by-laws and

made

bank,

reserve

And if

Would it be just and equitable to compel National

members

under

with

do

State banks

the

can

members

solved

the

covers

withdraw,

to

California.

savings department under the provisions of

a

legislation?
Bank

if

requirements',

to

under which

members

come

and

27,

27,

the

to the National Banks, is retained

as

tion

because

section,

these

section

fully

This

meet

be¬

The fact

checking account and should

a

demand it is in fact

on

withdraw

to

take

no¬

features

deposits and the savings deposits.

either 60, 90 days,, or six months, is
necessary in

banks

Gentlemen,

urging

Second,

them

Remarks

it

idea

any

departmental banking.

from

respect to' this discussion upon the Savings Bank
clause
of the Currency Bill, I would
say that wTe want to

voted

section, 27,i which

department should increase, that securities

With

body

this

banking

it,

securities

ferred

this

BILL.

been

improper, in view of the fact

in

of

small

many

California

another

exact
THE

Executive

Conference.

officially

legislation, and I

such

as

there

has

we

gram

by

the

to

undoubtedly

is

be

idea

departmental bank cash in

a

hot.

to

would

and

chasing department.

to

but

the

subject has

this

improvements

proposed

the

upon

are

Europe during" the last few
months, and within
-the last few days found it was
impossible to sail for this country
owing to the illness of Mrs. Burns,, and he has sent
present

for

partment

J.

in

have

it

$15,000 is faulty,

may

tion
of

of

pos¬

the

Chicago

from

act

advocating this

it

committees

partment

If

Currency

passing on to the discussion

Burns

make

the

'

.

Department

Burns, of the W.
present

be

may

of

to read it at

followed

Before

want

be

be

■'>

President:

to

Section

unnecessary

report is

discussion.
The

Savings Bank

been

that

this

the

amended

[We print the report of the Law
Committee on page 210.]
Mr. Sturgis: Now this report as
printed will
a

suggest

segregation

that

fact

.the

the

as

Committee has taken

past .year.

of

committee

further

deposits, to be known

Law

your

Gentlemen:

bankers

Bankers'- Association

than

The

plete

tween

Report of the Law Committee, by John H.
Sturgis.
at

to

Segregation

least

Law

late

as

advocated

charged—in any way suggested these provisions in the
act.
The provision that the
capital set apart shall in

tice

Mr.

of

brief

as

submitted

the

bank

Since

suggestion

suggest

none

in

be
re¬

years

Whenever

refrained

reserve

there.

think

American
or

to¬

.■

Chairman 'of

Savings Bank Section, and

here

presence

,

report.

that

the

be

to
for

Bankers' Association it has

therefore

have

we

we

try
has

been

against

savings

be

pertinent

years,

could not

savings departments.

Individual

closely

Credit, by Edmund

for

has

provides for

such

and

paper

Section

voted

Sturgis

personal suggestions in

will

manner

American

was

incorporation in the"

that

D. Fisher.

for

other

any

of the

and

and

Mr.

case

some

savings deposits.

Council

not

27,

amount

logical evolution of the subject.

thanks

section,

in

of

Savings Bank Section

report or in

would

to

notation

provision is better—20

read,

[The complete address of Mr. Fisher is
printed on page 191.]
The President : I am sure
you will agree with me that Mr.
Fisher has presented a
very able and scholarly paper, and that
I voice the sentiments
of this audience when I
present "to Mr.
our

a

Credit."

simple, but it is necessarily

very

The Relation Between Fixed and Fluid

Fisher

This

asked

was

made

to

Fluid

approximately thirty minutes

may

the

country

enterprise.

that

through

in

•

as-

Relation

bankers

as

to

sible.

the broad

of

any

more

point

the

currency

logical

suffers

are

in

savinks

in

assailed

assailed

have

"The

address

vital

together,' than

go

indirection

directly

frequently

I

real

business

the

interested

the

through

nian

and

principle of indirection.

So,

to

comes

knows

problem,

to

to

vitally

indirectly

fluences
this

banking

because

The

he

cause

affect

interested,

that

directly.

voiced

fundamentally interested

more

subject

directly

that

be

prepared

are

this

has

subject, that the savings banks of

which

almost

country

President

your

movements
am

I

This

to

or

present,

segregation of

ability

machinery.

are

Committee,

past

by

was

collection

and

to.

stand

CONVENTION.

deposits, and

-

Savings

investing their funds at home.

It

does

Many country
Banks
As

on

I

the

stated

•

201

SAVINGS

in

not

did

bound to

the
will

the subject?

upon

A motion to

.

I

John¬

George E. Edwards, of New York City.
adjourn will be in order, and I hope you will all

of Detroit, and Mr,

son,

be

be
think
and I

else who would like to

If not, before adjournment—I
Nominating Committee is to report this afternoon,
name Mr. W. F. McLane, of Minneapolis; Mr. J. H.

heard

I said

I thank you.
Is there any one

President :

The

segregation. Now, I think that is the main
point of this whole matter of segregation.
There should be
segregation for the safety and protection of savings depositors
throughout, the whole country, but I think in our consideration
of the matter and in our discretion there should be emphasis
laid on the fact that the investment does not necessarily have
to be in. slow, fixed securities, such as mortgages and bonds, but
can
be in any' sort of securities.
That having been done, the
funds that are secured by any community in the savings de¬
partment may not be sent across the country, but invested right
a't home in the kind of securities that are there safe to invest in.
The President : Now that this matter is open for discussion,
I want anybody to feel free to express himself upon the matter.
We shall be glad to hear from any who want to be heard before
taking up the next matter on the program.
Is there any one
else \yho would like to be heard upon the subject?
portant thing is

it was
movements which could not

ft was one of the

come;

stopped by votes.

be

back

There is one matter
number of gentlemen who are

Just one word.

o'clock.

at 2.30

want to speak

of, and that is a

meeting, and members of the Savings Bank Sec¬
registered as from this section, and we want all
the names of the Savings Bank men registered at the Savings
Bank Section at the Copley Plaza Hotel.

present at this
tion,. have not

AFTERNOON

forward and take
session.
,

will open our afternoon

and

TIIB

SAYINGS

we

DEPARTMENT CLAUSE IN THE

'-"v

7'.v7

:

CURRENCY

BILL.

•

„

had the report of
the Law Committee, and in that report you recollect some refer¬
ence, was made to pending legislation and to the clause providing
for the savings department in the national banks; and down on
the program this morning there was a place for discussion on
that clause, but owing to the fact that our meeting had con¬
before

Just

adjournment this morning we

adjourned.

meeting was

was

thought

have

think

endeavors should be to

our

read

make the effort we

which

.

.

make it as

;

of view as this, that banks are no
longer in that class of institutions in which they make money
simply for their stockholders or depositors even.
Banks are
primarily now public servants ; they are here to serve the peo¬
ple.
If that view is correct, then it is proper that the public
should to a proper extent take over the control in a public way
all supervision of its functions.
If our function is that of pub¬
then it is not improper

that the Government should
service. If that is the

bill is framed properly ; then
standpoint of control of public servants.

right view, then this
the

from

Look

from

into, it

it is framed

can

possibly

That comes to the
throughout the country of one kind and
serve the public by not having Savings

that point of view.

havej in the West is a proper place
for savings to be deposited, and it is true in the savings and
national banks that such plans should be made so as to invite
saving, increase the amount of savings, and to properly use
the great need

Now,

objections inade, and it is

only really going to* speak, is this—
that the banks of the West, the national banks, generally fear
if they are to be made Savings Banks that they must invest
those deposits if they are segregated in certain slow, fixed se¬
that point I

to

like bonds and

curities

think

I

I

that

mortgages.

in evidence of
that this bill as
support the idea—namely, that all assets

that is not the

would like to

drafted does not

now

am

spirit of this bill, and

read a sentence to show

invested solely
clauses: " The
savings department of such a national bank shall be authorized
to purchase securities authorized by the Federal Reserve Board "
—and turning over further along in
the bill, " The Federal
Board shall make and publish at its discretion lists of securi-,
ties, paper and other forms of investment, which the savings de¬
partment of the national bank shall be authorized to buy and
loan upon ; and such a list need not be uniform through the
United States, but shall pe adapted to the business in the differ¬

segregated, for
in

mortgages

ent

Savings Bank purposes must be
I will read only two

and bonds.

sections of the

In

"
.part of the country they should not

country."

other words, in my

,

be

mortgages and bonds, "but also include invest¬
for Savings Banks that are safe and good paper

solely limited to
ments
for

proper

any

kind of bank,




including the savings

department.

The

a

that?
has

that

whether

know

been

discussed or not; it

•

Bankers'
Section
provided in the constitution.
of

Section

Bank

th,e

The President:

It is

Mr

[Continuing]:

Dinwiddie-

is

Government
Bank.

It

,

do

and

Banks

National

want

Banks

National

The

us.

a

to

seems

me

It

has

been

an

.

Associa¬
'

eyesore

to,

everything; they want to be

bank business.
Even the
us in the Postal Savings
the Savings Banks should

savings

competition

in

American

Savings Bank

should.be a

there

than

at least.

mind

in

query

National
tion

we

One of the greatest

savings.

those

just

don't

It seems to me in these days,
when National
Banks want everything—they have not even
a
Section—there is no more reason why there should be a

departments. '

Bank

State

I

doing

in

law

the

is

question whether banks
another

of far more importance
that these departments

fact

the

men,

.

to control that

endeavor in a proper way

long

so

...

regard that point

lic servants,

feature of the bill just

Williams is a recognition of the principle
contended, and that is the principle of seg¬

to us as savings
shall be allowed
to
invest amounts within the law
with respect to savings
funds.
I do not know the attitude of the National Bank peo¬
ple towards this particular law, but I think it merits the appro¬
bation of this Section, and as a savings bank man I would
like to commend very highly the principles of this act just
read.
' " *'•
;.V
,
..." •
J. M. Dinwiddie, of Cedar Rapids, Iowa : Mr. Chairman, I
would like
to get an expression—is this bill
as read the
equivalent of a savings bank within a national bank?
This
money is segregated ; it may set aside a certain amount of its
capital, and isn't that the equivalent of permitting the or¬
ganization of a savings bank within a national bank?
If
it is, what would be the effect on the State law?
Will that
supersede the State law?
Our State is not a mutual Statethat is, the law is not a mutual law—but • we have savings
banks with stockholders.
In a town the size of Cedar Rapids
we
must have at least a $50,000 bill.
Can a National Bank
in
our
town
set aside $15,000 and run a Savings Bank in
opposition to us?
If it can, can it, and does it, set aside

endeavoring to put it into force. That
legislation, and if we
should try to look at the point of view from
comes.

September 18, and it has
of September 9. . :
'

Secretary

by

bank

this there should be

this legislation

Now, I

dated

is

the bill.]
[Continuing] : The

regation, and that is

can

endeavoring to do

This

the Secretary will read

amended from the issue

Robinson

have

we

suggested it and who are
in

you'may pass it up and

Robinson:

much

Mr.

be made with friendly suggestions.
I think
when trying to suggest in reference to this legislation we should
endeavor to get at the point of view of the people who have
it

as

Hawley has a copy of the

[The Secretary read

the clause

attitude and

our

good

clause.

Mr.

possibly

that

remarks upon

there, and

the

been

some of you might want to
referred to, and at this time if
there is any one that wants to be heard in the expression of
his views we would be glad to hear him.
Mr. N. F. Hawley, of Minneapolis:
Mr. President, I would like to say a" few words.
I think that
the Savings Bank men were quite as surprised as anybody else
to find that section when it did appear in that bill; at least I
was.
I do not feel responsible at all for its appearance, but now
it is there and seems 'somewhat persistent in staying there, I
I

make

bill

•

.

believe Mr.

I

President:

The

•

paragraph be read.

all if that

us

responded readily, the

12 o'clock, and no one

tinued until after

do not fully understand'
concerning these savings depart¬
ments.
Mr. Hawley read a few extracts, but I think it would
enlighten us all if that paragraph was read in its entirety,
I
was under the
impression, and same of my friends were also,
that the clause relating to savings departments of the national
banks was eliminated entirely from the bill last November.
I
have since been informed such is not the case, but the provision
made to apply to all the savings departments in all the
national banks.
If some one has the bill here it would enlighten
provision may be

just what the

Gentlemen, please come

President :

The

seats

V"''.-''

think most of us

I

Chairman,

Mr.

SESSION.

of Baltimore:

Robinson,

L.

Edward

session adjourned.)

(The morning

im¬

shall be safe, but the other

that the security

great thing is

Council one day a year or so

this segregation idea was violently opposed,
make any difference how they voted on it,

when

ago,
it

the Executive

of

meeting

a

SECTION.

BANK

with

that

segregation of savings bank
some
consideration should
be
given to the idea I • spoke of, that of permitting the
enactment
of
a
law
which,
in
fact, creates competition
with the banks that organized under the law of the State—
permit them to do it with less capital.
In our country—I
don't know how it is here, but we were not to lose funds be¬
cause
it was a postal savings bank except in territory from
which it comes; our bank was a postal savings bank depository.
We have received in the time we have been in our business
The
President : There will be
a discussion later on the
argue

it

for

business,

I

but

Savings Banks.

subject of Postal
Mr.
to

be

fight for the
believe
that

and

Dinwiddie:

careful

That is just one

Mr. Sartori : Mr.
banks

do

a

more reason

why we want

this question.

on

Chairman. I want to

commercial and

tional bank with a

ask a question.

savings bank business ;

capital of 50,000 under this act

Most

say, a na¬

would prob¬

business you are now doing.
Dinwiddie: There are few banks in Iowa that do noth¬

ably do the same
Mr.

bank business. Ours is one of them.
A man
wants to, and the law allows him to do it.
Assuming that this Reserve Bank Act becomes

ing but a savings
can

do anything he

Mr.

Sartori:

202

BANKERS'

CONVENTION.

a

law, of course, we all have our
opinions on that subject, and
assuming that this section 27 is
incorporated in the act finally

—in

California—and

Bank Act,

always

like

to

refer

to

have anticipated that
condition,

we

Resqrve Bank
convenient

I

is

or

so

constructed

profitable

that

State

the

and

California

the

banks

Mr.

Federal

will

find

the

mutual

it

Section in the Bank
Act, which reads

a

Section

56.

[California

ing under the
to

join

the

or

from
or

association

by

thereof,
of

be

or

plan

any

whether
by Congress

created

Nothing in this

Act

shal

Association

now

Congress,

under

prohibit

any

the

above
bank

in

or
associating itself with any such association
thereof, nor frohi investing any part of its

or

capital

the

exceed

plan

required

branch

or

such

and

provisions

act

such

of

to

join

such

the

bank

branch

or

its

act

associate

or

Any

plan

transact

of

regulations
this

to

thereof.

association,

form,, to

been

it

business

of

in

Congress

association,

contrary

itself

shall

be

accordance

with

creating the

plan

the

thereof,

to

is,

rules

banks

of

California

in

this

to

take stock

State banks
it

in

can

accordance

with

the

terms

and

conditions

of

the

rate

And I
of all

in

think

order

to

of

a

that all

the States will have

enable

their

our

banks

to

to—the legislatures

join

serve

Bank, if the legislature or the bankers
it desirable for other
State bankers to enter

this

of

Federal

the

doing

without

now

rule..

I

have

in which the
public advertise
invest those
saving deposits in
districts because

they

not

but

in

supervision.
is

are

the

Re¬

We

must

building

restricted, and I

positsj
want

We

to

have

show

and

occupy

our

tested

it

in

fair

and

I said

some

heartily in favor
tion

it

gives

of

segregation,

us—the

the

more

proper

Mr.

and

M. Dinwiddie

J.

done

at

under

also

I

:

the

that

Savings

that

how

much

of

I

when

the

I

American

didn't

they

believe

in

want

to

make

the

even

to

and the president of one of
the banks said it
is being done.

Do

A.

C.

Schmitt, Albany, Ore.:

you. understand

be'organized
of

name

for

mercial

not

be

We

,

to

have

with

under

from

as

business, but do
as

this

First

have

we

the

it

Bank?

a

ask

a

and

would

Bank

and

National

do

tried

to

would

be

the

use

and

name

could

possible

and

not

to

the

First

National
do

have

so."

in

I

as

Sartori

it

tain

that

gone

in

should

stands

now

National

I

:

if

and

a

Bank,

simply

and,

section

which

pockets
indicate

with

that

the

questions

how
will

in

State
arise

the

the

National

present

the

have

act
if

banks

that
not

Savings
no

by

should

the

this

whole

me

do

not

.

now

that

say

regularly

morning,

subject

Mr.

bankers

will

some

act

organized

if

they

have

to

re¬

be

communications

George
in

the

W.

Chicago

Reynolds

are

to

the

shall

amendment

come

suggestion
the

section

Banks

provision

think

will

in;
and

and

some

of

which

be

allowed,

for anything

so

they

competition

'

e

of

case

door, .and
of

bank

a

having

similar

interest

an

pass-books that

number

bank with

some

the

and

sleep,

in

every

wink

a

if

thought it

respect,

he

might

be

the

man

who

this

banks

in
a

the

same

it- does

particular State.

could

-

only

the savings banks
do

to

apply
laws;

New

the

you

apply

can

from

the

to

seems

that

to

that

me

we

savings

this

proposed

it;

I

have it.

I

am

the

are

owned

to

the

twelve

men

such

a

National

the

the

we

Banks

the

was

Chairman

I

magilificent

that

member¬

a

the

of

Secretary, and

1902.

are

of

getting along

from

Secretary.

in

control

consent

system—I

the

was

Banks, the

cannot

are

grown

was

National

therefore,

me,

if

that

are

segregation

to-day.
It

they

National

has

into

any other

words, there

adopt segregation with the savings

savings system

develop

the

much

as

country

Banks;

originated

Orleans with

ever

as

other

to

Banks.

meeting and Mr. William Hanhart

would

In

so.

National

seem

the

as

and.

way

}'■

legislation,

throughout

the

how

no

Orleans:

establish

of

ever

time

improved by saying that

savings banks in

want to

This

that

department should be invested

entitled

see

twelve—I

and

knew

all

was

unquestionably do that, biit you
already in existence unless with

Now

well.

of

We

organized

never

body
.' : '•

was

dreamed
as

'•

'

;

getting- along

want'legislation

it

have

we

let

so

them

satisfied with the situation*in

my State; we; are
doing well and I don't want
any segregation.
We have the
habit there of allowing
people to withdraw their account when¬
ever they see fit.
An old woman will come in

interest
it

she

say

out

apply

and

that

two

any

at

seems

The

President

Reynolds, and it

in

me

out
:

We

in

she

are

own

be

I
as

Mr.

Arthur Reynolds:

was

going to be

to

deposit $20

live

on

begin

to

Come

suppose
other

can

you

could

we

people

the National

the

draw

could
Banks

proposition.

honored

by the presence of the Act¬

Bankers'

very

will

Kingdom

investments?

their

words

Mr.

after

going

the Government and

few

from

is

accommodation

the American
would

out,

How

any
or

it

weeks

time.

a

law
to

draw

three

or

going to work

ing President of
a

never

money

to

do, hut it
are

will

dollar

a

conform

up

of that kind.

REMARKS

to

amended

but

oper¬

Association, Mr.

gratifying at this time

Arthur
to

have

Reynolds.

these

recbmmendation

should
be

section

bank

securities
the

can

State.

pretty

consid¬

going through it very care¬
going to stay there they will

is

'

ought to be formed

and

it

regard

or

there is




the

in

Congress—whether

to

that

for

intimated

act

the •State

of

idea

suggestions

provides

that

the

handed

ering that feature
make

I

as

in

same

and

I

provides

savings depart¬

commercial

the

don't

color

by the National

banks

ship

and

not.

into very carefully, and I

my

fully,

say

I

over

of New

savings

branches

I

first

and

connec¬

National

a

be

in

wonder

it

that

the

Savings

as

me

subsequently, elected

com¬

do—•

profits for the trustees

the

in

bank and

a

segregated

can

Savings Bank governed by the act?
Mr.

the

law,

a

no

sepa¬

perhaps the law is good and I have

Din kins,
to

Government

nicely

Bank

II.

which

savings

done.

by

to

absolutely *

of those

no

if

next

name

think

manner

controlled

Now,

be, possible

not

L.

seems

absolutely

qtiestion.

go

it

same

numerous

and

will

Savings* Bank

Bgnk

Or

National

to

the

are

State

not be

have

Savings Bank

proposes

them

by the Federal board if directed

am

Ameri¬

strictly Savings Bank business,

Savings Bank

act

act

National

a

a

a

this

wish

I

corporations could

that,

currency

could

it."

banks

consider

are

of series

get-up,

such

segregation

the

act

keep

flagrant

,

wouldn't

think

not

Savings bank?

a

the

under

Savings

organize

known

Bank, and
tion

separate

National

a

bank

a

that

I

the

I

State Banks if you

It

Mr.

other.

of

he

supervision

Association

few years ago

the

the

legiti¬

objection

just

'

Johnson

proper

jankers'

a

started

Mr.

under

law.

remember

Association

Banks

be "done

said

entitled to the right to

competi¬

merrier.

into

the

us

Banks.„ Every State has its own
banking
directors and stockholders of a
national bank are

the very

I

any

National

the only way

being done, and

should agree with

to

the

climax.

Bankers'

can

I

:

ought

sanction

believe

to

come

it

all,

the

we

could

bank

same

character
man

in

not

in

it

the

which

special

under

haven't

go

money

and

very

sort

a

word

supervision,

on

this

deal.

a

have

the

cutting in

We

invests

great

gradually

anyhow—many of

think

we

city

East

business

with"

departments

are

and

the

securities.

profit,

savings

folders

.

if

a

do

under

told

of

yet

bank

thousands, and pebple walking into the

a

stormy weather, and

was

a

our

his money was in

It

matter

no

many

Mr.

come up in this
bill, but I
done, and they would not listen to it

be

to

similar

a

de-

thing that has

class

of

about

the city of New York that

what

the

and

people

protection of very

interest

just

sole
of

century; and are very much surprised when
they walk into-a
savings institution next door that has
pass-books with precisely

Savings

is

which

should have the

cities

and
a

the

class

little

special

find in

deposits

much

to

in

seeing

directed

years agu—suggested

do

for

the

large

the

Banks.

invest

same

amount

have

name

Segregation

that in actual experience it

you

handling savings.

will

and

not

the. funds of

handling

are

using

good many years have

very

that

York, of course, there

find

Savings Bank

ground.

of

to

de¬

door deposits are ten¬
dered and received, and
many times they go away thinking their
money is in an old bank established
for three-quarters of a

heartily in favor
a

from

departments

for

banks,

haven't,

similar departments

objection to

do

fair

under

with

us

savings

the

up of their respective

to

own

but

any

they

am

constitution

method

proper

dozens of

is

we

a

the

under

there

Savings Bank, and

money

.State think

saving deposits,

the

charter

inevitable; it is the

of

for

received

only of allowing the National Banks

business,

a

into the

Johnson, of Detroit: As one of the original advocates
of
segregation—that method.of
handling deposits—I wouid like to
ask my
good friend from Iowa what objection there is to
letting
the National Banks do
legally under a prescribed rule what we
are

In

idea

Savings

department, having

the system.

••l.J. H.

our

all

which

York

banks that they

about

is

banks

of

the

in

We

make some suoh
provision as this

State

only

know

the

doors

money

apart

New

ating

in

the States—will have to

if

and

In

Federal

Reserve Act.

to

segregate

in

con¬

benefits,

is

for

bank that wants to

would

avail

banks,

segregation

objection

subscribe for capital and transact
business with

and

of

of

would

it

to

its

and

business

part of the State banks
themselves of these

in

York

who

little

up

their

New

whatever—many
business

and

dition of
safety.
If this Federal Reserve Act should
become
law, if it should become desirable on the

interest

York

and

'

it

people

commercial

mate

notwithstanding.

puts the

New

Alongside of the

commercial

guise of those interest
departments

con¬

anything

of

depositors.

so-called

in savings

very

over

and

ments

That, for instance,

are

educated

the

terms.and

and

same

branch

or

ac-.

the mini¬

permitted

State

stockholders

no

£5tate of New

protection.

pro¬

with such
association,
associating itself with

lor

joining

thereof

the

matter

think

we

laws; but here

stock

amount

the

the

have

of

in

us

money

and

"savings"

sur¬

of such
association, plan or branch thereof in
cordance with the
terms,, and provisions of such Act of
Congress;
vided, however, that such investment shall in no
case
mum

depositors

plan

or

of

having

we

law

this

possible

methods

or

such

reason

deposit,

greatest

of

banking

joining

branch

plus

advocating

who

hereafter

or

such

Banks

the

"

good many of

been

hereby authorized and empowered
Reserve

laws

.

Any bank organized and exist¬

"National

any

Act

plan

or

name.

with

is

the

mutual,

savings" in
savings departments.

A

simple

Act.]

State

branch

or

established

other

any

Bank

this

itself

States "

or

currency
or

of

associate

United

created

laws

by

word

are

follows:

as

are

Savings

prohibited
the

ultimate object of the Federal
Reserve Act.
We have an¬
ticipated that condition in California
by securing the passage

of

Under

:

banks

posits belonging
ultimately to

desirable to join the system which is

or

Knox

savings

OF

ARTHUR

REYNOLDS. '

Gentlemen of the
Savings Bank Sec¬
tion, I didn't anticipate when I came into the
hall a
I

while ago

called

upon

to

address

you.

I

assure

you

t

time of making any

didn't think at this

I

though

al¬

to have that pleasure,

it a very great honor

regard

extended

watched

have

and development of

growth

the

this great

force in the affairs of the
Association, as
I realize you gentlemen
have many things in common that are not of so great impor¬
tance to the other Sections of the Association,, and I realize the
importance of segregating the work of the Association in differ¬
ent bodies of this kind, and so far as I am personally concerned,
and so far as the officers of the Association are concerned, as
it has come to my attention, they are heartily in accord with
all the work which you gentlemen have been promoting.
it is an important
are all the Sections.

body, and I realize

Mr.
Knox, Mr. Johnson and others here upon this question of seg¬
regating savings deposits.
That is a question in which I have
had a very great interest for a long time.
I believe it is one
of the coming questions to be solved, and I realize it can be
solved first in a body of your own kind, where the men most
deeply interested are on it, and it will probably spread to
every Section of the Association and to every bank in the Asso¬
ciation.
' '
■■
'
Gentlemen, if there is anything that the officers can do to
promote the interest of this Section of the Association I assure
you they will be* very happy, indeed, to have an expression from
I

just

interested

much

was

in the discussion of

now

,

and

'

Section.
next

The

Systems.]
The President
This report certainly shows the fact that
this committee has been engaged in a work very promising and

Committee

Hawley, of

on

Savings Bank Section, and during all the
with this Section the chairman of
that committee has been one of our most valuable and efficient
workers, and I know that the results of the activities of that
committee will be very beneficial, not only to the members of
this Section but to the general public.
There is a correction that should be made in the report where

•

•

be the report of the
School Savings Banks, Mr.

Chair¬
N. F.

should be changed to

School Savings Banks, by N.

on

Hawley.

F.

.

merged in that; of the Methods and Systems
were finding that the work overlapped to.a

fact,

in

We

Committee.

it

extent,

certain

practically a duplication of the work,
recommendation or upon the approval

was

done at the

and this was

fore

Executive Committee about six
this report is practically a report

than

of this.

of

your

r

on

page

200.]

"

•

r

Gentlemen,

President:

The

-

Mr. Hawley is

Savings
,

a

like

the methods that

information

on

those

matter

D.

Radford: Mr.

would be well

pleased.

President : You

there is no

In

all these reports made

tee, and it meets




the approval of the

convention.

to establish that.

Savings System, by Carter B.
A subject

Keene.

in which all the members

tendered to Mr. Keene.

vote of thanks be

a

and passed.]
This is evidence of the high appreciation

President:

which

every

Mr. Keene has given some very

excellent address.
in

facts

interesting

the Postal Savings system
is vitally interested.

regard to

wjll now have the report of the Chairman of
on Postal Savings Banks, Mr. E. L. Robinson,

more,

Maryland.

We

Report of

:

Banks by E. L.

Robinson.-

Gentlemen and

President,

Mr.

the Com¬
of Balti¬

'

;

,

Committee on Postal Savings
.

I have no formal re¬

Ladies :

<$nake to this body, as you probably are aware of
that I was with—or rather that this committee was

port

to

fact

of

creature

in

member of this Section

mittee

the

Executive

Committee,

the
the

and my formal report,

I may say, however, fpr
appointed a special committee
to wait upon the Department for certain information, and to
keep in touch with the progress of Postal Savings Bank work,
in accordance with that commission I called upon Mr. Weed,
the then, director of the Postal Savings system in Washington,
last February, and ascertained from him
that the figures at
that time were something like $33,000,000, and probably 300,made

was

objection they are placed on file

of different

principals

Section are always interested

Bank

The

,

I second the motion.

President :

the

.

savings system there and has

[This motion was seconded

to

body

that

yesterday.

guidance, that when I was

your

have heard the

at this time, if
and follow the usual
course and-disposition is made of them in that way.
•
. 1
Mr. Hawley : jn this case there is the recommendation that
the work of this committee be taken over by the other commit¬
The

to

sent

the whole department

on

President :

that

move

President, I move you the

1

beneficial.

obligatory

it

has

the school

to

he would be

motion of Mr. Radford.
Mr. Edward L. Robinson, of Baltimore:
I would say that
some progress has been made in Maryland.
We are a little slow
for innovations in our State, we are rather conservative, and
when they prove themselves good we finally adopt them,
I
would state that the school savings system has made a little
progress in our State.
A lady came into our bank a few months
ago and asked if we had some furniture that belonged to the
old banking institution that looked something like a bank to use
in establishing a savings bank in the school she'was the mis¬
tress of.
I directed her to a place where she found a suitable
screen
and counter, and in a very few days she reported the
gratifying news that they had set up this screen and counter
in a corner of the schoolroom and had already taken thirty or
forty of the children;
It seems to me that the children were
those given over to some sort of manual training whereby they
were earning extra money.
They were children we call deficients
—I don't know to what extent the deficiency went, but they
became adepts in the caning of chairs, etc., and were able to
earn
as much as four, five and six dollars.
I have forgotten
just the number of accounts started, but very gratifying prog¬
ress was made
in this little school in the corner of our city ;
and the school board has since invited us to extend the system
through the city wherever there was sufficient demand for it.
I believe the school savings system will succeed even though
started in a humble way like this, if there is sufficient influence
over your school board,
and suggestions on their part will be
The

.

of the
is the matter of
the Postal Savings system, and we have succeeded in inducing
Mr. Carter D. Keene, the Director of the 'Postal Savings system
at Washington,
D. C., to be here and address you upon the
principles of that system.
I have the pleasure of introducing
to you, gentlemen, Mr. Carter B. Keene, of Washington, D. C.
[Mr. Keene's address is printed in full on page 195:]
Mr.
Lynn H. Dinkins, of New Orleans:
Mr. President, I

report be
accepted and the recommendations carried out.
I am sorry
that it legislates itself out" of existence.
If the other commit¬
tee could be made larger so as to take in
this committee I
J.

Education

reference

Savings

glad to give it to you.
Mr.

/

might amend the report from New York as
fact, because I learned a few days ago that the

of

of

made

have been used in

lines I am quite sure

'•

.

Board

thoroughly fa¬

school" savings
in the various portions of the country, and if any of you would
like to, ask any questions upon the subject we will pause to
give you that opportunity.
If anything occurs that you would
miliar with

satisfactory operation."
be said of Portland,

may

same

Mr.. Lersner : I

for this very

Committee on School

The

Ore.

months ago. There¬
of that date rather

•

the report of the

print

[We
Banks

1

the words " uiider

Schmitt :

C.

A.

Mr.

The Postal

Mr. President, on the recommendation of
the work of the School Savings Committee has

committee

idea

savings

school

the

schools

*

Ma. N. F, Hawley :

been,

that in the city of South Bend, Indiana,
Is under promising consideration.
It

speaks of the fact

he

The

our

been connected

have

I

time

Minneapolis.

Report of Committee

and

Methods

on

great value to the

of

Mr. Reynolds, you came
have in the work of this

the programme will

on

the

of

man

:"•< "■

by V. A.

208 for the report of the Com¬

[The reader will refer to page
mittee

,

taken the interest you

have

Committee on Methods and Systems,

York,

Lersner.

We are very glad,

President :

and

V. A. Lersner, of Brooklyn, New
cashier of the Williamsburgh Savings Bank.
by Mr.

Systems,

Report of

I thank you.

at any time.

The

in

hear the report on Methods

We will now

President :

assistant

'

you

the affirmative.]

[This vote was carried in
The

vote on

in favor of the motion will say aye.

this, and all

remarks.
I

I will give you an opportunity to

President:

The

I

that

203

SECTION.

BANK

SAVINGS

accounts,

000
I

advised

am

that

,

those figures

were

approximate, as it Is

of a given date until several weeks
expired for the purpose of getting together the data.
February the system
has grown, and Mr. Keene has

quite difficult to find figures
have
.

Since

just furnished us
The

calculation
General

master

with the figures as of this date.
furnished
by the Third Assistant

is

that

we

have probably

now

Post¬

in the Postal

$38,000,000, divided among 380,000 depositors,
(an approximate balance of $100 to each depositor. I
think Mr. Keene has said we have a little over 12,000 postoffices, and that the average for each throughout the country
is something less than $3,000—2,600 and some odd dollars.

Savings system
showing

The

remarks

of

Mr.

Keene

in

his opening address were so

would be exceedingly difficult to
find it in my heart to say a hard word concerning the Postal
Savings system.
All of you know that as an organization
we
were opposed
to the establishment of the Postal Savings
system fundamentally, and many of us still believe that it
was an
economic mistake.
That is a matter of opinion.
Mr.
Keene and I do not agree on that point, but we have absolutely

very

amiable

that

I

felt it

I have felt, and many of us still
should not" enter the banking
business ; but if the interests of our people are better served
in that way,
I should be bound to forego the conclusions I
have reached in my own mind concerning that proposition.
The matter, however, that has agitated us is not the Postal

no

quarrel between us because

feel

here,

that the Government

'

''"V--

204

kept

system.

it

as

successive

have

'':)

BACKERS'

Savings Bill
by

"•

1

At

the

present,
I

do

Keene

time

present

passed.

but

not

it

as

know

I

think

the

be amended

may

that

law

of

many

were

furnished by Mr.
Weed, then director of the postal savings
that
at
least
$38,000,000 or $40,000,000 had been
turned away
by lbcal postmasters because of the fact that the

you

system,

concerning that

is

unamended

as

; Government would receive
only $500.

-

,

Mb.

at

with the progress of
legislation

pace

originally

exists

Congresses.

CONVENTION.

formed

[Interrupting]

Except

to

as

minor

details

of

administration.
Mr.

Robinson

posal

[Continuing]

administration.

You

know

Except

:

that

95

to

as

minor

cent,

per

of

details

the

of

funds

the

de-

There

one community are
kept in that particular comdeposited in banks of that
particular community.
bills
pending in Congress now for the

are

cent,

per

in

ments;

One bill would

deposited in

invested

municipal

another

depositories;
respects.

banks

bill

and

bonds

would

other

But the

matter

various
other

or

alter

bills

that'05

say

of

the

alter

that has

of

of

troubled

should

fixed

in

us

of

other

one

the

any-

than

more

i

the

thing like $3,000;
in

connection

maximum

in

Massachusetts,

the

amount

Postal

allowed

$1,000

and

;

by

law

there

is
;

And

so

interest

of

that

would

perhaps the

ciples—savings

be

harmful

local

banks,

bank principles

communities.

and

and

dear

city

stood,

I

letter

in

to

directed

ascertain

letter

a

from

jt

of

and

the

of

be

but

0f

one

to

the

Dockery

and

have

this

gentlemen,

same.]

it

'

Robinson

[Continuing]

A

:

enclosed, but I think many of

bill

in

which

postmasters
that

retains

the

limit

is

clothed

are

of the bill

copy

have

you

seen

special

trict.

question

the

power

of

of

note

its

acceptance,

sentiments,

recognizes

Mr.

W.

R.

any

not

or

Creer, of

was

" The

is

fact

some

who

one

After

to

the

rather

joy

tough

a

happy

seem

to

be

who

man

savings, but it is
because

it

You say for

is

not

not

forty

forty

there

years

during

it?"

was

cat

that

woman's

or

or

And

from

life

read

a

the

be

may

rabbit, and that is

here

confirmation

a

" My

'

the

on

over

class,

calf."

cat

elder

boy held up his

one

thing in surgery to know

or

the

his

his

wasn't

awhile

"Tommy,

says,

that

hilarious in

the teacher said

fatted

grand

the

out

wasn't

it?"

was

rabbit

it

home

We

haven't

for

war.

frpm the city of
of the

whole

plan

representative communication,

from

a
strictly Savings Bank dissir, this question has been passed

years,

Up aI1(j down, and hundreds of bills have been introduced
was
instigated, but for sixty more before the

that

was

mutual

a

before;

beginning of
savings bank in the city

y 0f Boston, and it has been carrying out its
-jn

copy of this

receiving

hear

''av':

-'

this

of

copy

to

please.

you

•

jts possession

the

absolutely removed, and saying that

with

be tendered.

may

in

a

'

the

seems,

:

Mr.
was

but

had:
case

remarks,

some

approval of his

if

prodigal,

Pittsburg it would

-

Dockery,

circu-

now

to ask you if it would be well

Now, in the letter that has been

his

at

to

sum

declined,

request

prepare

prin-

department just how it

Governor

his

phases of .this postal savings question.
met it yet, but in times of
peace it is well to

recognized in most

reply before me, and would be glad ;to read
it
time in your hearing.
[Reads letters of Governor

if

glad,

very

take

an

Chair

teacher

a

the

at

there

the

be

may

brains

0f postal

the

be

unprejudiced statement of the

..

Now, in order

large

a

must

I believe would be

wishing to draw

time, and who

hand,

'

•

The

stayed

Tommy replied,

the

to

to

case

and

son,

children,

that

like

the

law

further discretion,

would

discussion,

a

who

return

saved,

against

at present

as

the

absolutely would

detrimental

be

the

particular

this

your

I

President:

prodigal

some-.

something

like

brother

savings

think

would

supposed

Creer: Mr. President, Ladies and
Gentlemen.—A Sunday
school teacher was
talking to his class about the parable of the

England,

I

to say,

this

simply'wanted

Robinson's

credibly in-

Mr.

.

feel that the removal of the
limit

we

something

in

Savings Bank Bill,

$1,000.
be

are

to

has tendered

under

woul<[ like to make
Griswold, of New York:

C.

been

considerable

who

you

President, I

mi\

have

I
of

man

Cleveland.

'•

State of New York I think the
limit is

with

President:

matter

John

of

with

The

The

$500.

there

In

So

the

a

savings,

and, also to hand with It

The intent of this bill is to
remove that limit
entirely and
permit postmasters to receive
any sum up to $1,000, upon which
interest will be
allowed, and beyond $1,0,00 any sum that
may
be tendered.
As you are aware this is
contrary to the practise
of savings banks
everywhere, at least wherever
bank laws.

banks

granted.

Mr.

of

which

frank

am

city

unwilling to trust the agencies at his dis-

care

leave

in

aggregate

have

can

I

money,

Mr.

thing else is the bill introduced
by Senator Bankhead, desiring
to remove the limit
entirely in the amount which
may be deposited by a single depositor.
At present no one can
deposit
more than
$500, I think, $100 a month; and in the
no

certain

postmaster

from any of

minor

than

more

be

invest-;:;

interest

measure

i

of this 95

cities

kinds

rate

the

cent,

per

local

a

taking

local

been

of

purpose

in

iating in the

and

changing this.

for

This

posited in any

munity

that

business sagacity, but

people,

a

the United

sum

to-day

functions, and has
than $50,000,000 of the
savings of
than has yet been entrusted to

more

much greater

sum

States Government in the
postal savings department,
to that institution if there was a run made

What would happen

■■■.*..

wupon it by a panic, and a panic comes,
Now, it is just in respect to that
gentlemen, not from
particular matter that this
cause so much
as from fear—the
come up, and for the
strongest financial institution'
purpose of opening the disjn the city of
cussion upon that
Boston, the oldest financial institution in the
point I would like you all to know
just how»V
city of Boston, may be made the
the department views that
subject of a psychological
particular measure.
I think
discussion has

both

sides

of

the

question

Mr. ,Keene

assure

system

we

are

should

that

going to

be possibly

avoided,

tion in

possession

in

of

sent

we

the

to

took

are

that

he

and

would

represents

like
is

mania ;

to

not

active manner if i.t

any

that

a

manifested

be at

Law

when

city

has

a

supposed it would

system

and

the

postal

extent

some

the recent

be

of

savings

through

test

foreign

banks.

official

it

I

That

would

On
had

the

other

channel

a

which

and

have

indicate

the

advantage of that
might
this

have
it

case

trade.

been

So

I

this

I

think

us

in

the

from

its

Mr.

and

hoarded

it

will

then read

to the
safe

bear

permanently,

them

to

tee,
the

so
my

far

say,

the

It

I

am

mind is

stress

bill

from

series

a

of

letters, which

gentlemen, that the experience

theory that the
not

hard

concerned

entirely
the

on

in
of

were

money

is money

to

now

open.

as

establish,

but,

don't

know

of
as

at least—to
oppose the

ground

that

it

might in

are

we

thriving

yet.

Mr.

Keene

fact,
got

but
to

back

times

of

banks,

but

bank, and

it

have

.the

says

have

we

listen

into

and

A

a

„

be

the

read

paper

Mr. Robinson.

report, but I would

I

do

rather

The report

by

Mr.

not want to
see

a

report

gives just what

,

we

If it is right it's

and

yet

postal

savings

to establish

reckon

with

says

we

have not made

bank

is

fact,

because

the

an

established
you

have

the

a

bank

until

after

the

bank has paid
out, and in
savings bank is not going to be of
advantage,

a

what I

fear—the time coming when
through fear
people will flock to the banks
without
draw money which is
perfectly safe and put it
to postal savings.
I know from talking with

other

ill

action

the

and

not

foreigners either; they
but

it, with interest
trust

bank,

time

finan-

would

I would be the calf,

certainly enjoyed
made by

national

the

up

city

be right, but it may be wrong.

the postal

run

they

passage of the.

Robinson,

great American
depositing
public ; it is not the foreigner
alone, but it is the man who
gets
scared, and you have got to reckon a man cannot
put deposits

do

Commit-

will

brother

are

farmers, who

may have been

not now;

they

the

are

two

three gen-

or

American

ing public, and the very moment the limit is
taken off
see
a
place to put money for their

postmasters,
this

I

:

stand somewhere.

a

erations back,

con-

the

the calf, and you and

felt may

test

are

view of the fact,




takes

bolster

to

foreigners only live, and the gentleman
a

over

come

the

on

all

deposit

that has not

the Chairman

I

on

of

burden to existing
agencies for
savings.
In
it certainly would
probably double the
amount,
due to the credit of the,
postal savings system in a short
while.
I-presented to the- meeting in May certain
estimates that
prove

'

might

Robinson's

\na

bank system
is

right—I cannot do it

Bankhead
cial

as

while

to
outline their
experience

trary, every community where postal
savings banks
has benefited by
money put in their care by local

and,

money

it

advantage

Dinwiddie

reasons

to

out

banks.

the

and

of

on

bank,

postal

right, and if it's wrong I cannqt help it.
The letters read
have been from people who have told
their experiences with far^eigners. "The postal savings bank is not limited to
places where

reporter.]

postal savings

our

otherwise

way immediately
through channels
McWiiliams to direct a few
inquiries

Pittsburg and ask

Robinson

handed

of

found

community,

matter.

[Mr.
not

removed

asked

the banks of
in

particular

tough

Your

the

savings of Baltimore;
in Cleveland could not
get a dollar from postal

Keene and the report

have

hand, it may be argued'that the
very fact they
for the deposit of their
funds operated to

be

criticise Mr.

gained in other ways from local
sources, that the postal
savings
deposits almost doubled in Pittsburg
during the time of that
distress.

might

Mr.

of

that
the
people did
become
frightened and did withdraw from other
institutions and placed
their deposits with the
postal savings banks.
*

the. Government.

get any money from

institution

very

de-

sources,

from

not

a panic is,
Thisr bank receives no
money
"from the Government; it cannot
accept postal,

back

savings, there,

foreign

critical

a

attitude

(]0es
my

financial

large

very

that is what

comes

savings

can

muni-

his

there

That

towards

knowledge gained to

am

disposal.. So with that
Pittsburg for something about the
opera-

was

savinjgs,

postal

perfectly: willing that all

should

place.

population, and it
positors

presented,

in

oppose

and

Savings Bank

disturbance
the

be.

system

,

our

mind

tion

the

no

of

the

Government

matter how

panic.,

Now,

after

where

favor

postal

as

being

will

safety they look for, and
the

safest

that

there

is.
in

.

have

savings,
out

President:

they

they

carefully it is supervised, is not safe
a

panic

foreigners live,

have got to look
The

It is

•

you

operates

of

descendants,

without.

or

depositand

but

for the
I

think

I

and
am

until

that

reserve

the

you have met
that, if it
going to be altogether in

time

comes

I

think

I

national.

discussion

should

be

strictly

,

confined

proposed

the

to

from

limit

Keene will

deposits,

mutual banks to
is

coming from

indeed to hear expressions

be very glad

*'■_/

' ;

want Mr.

I

in

work

valiant

for

thought I want to express,
I

building

These institutions

say,

hundred

a

have done

they

years;

avenue by which money
drawn from their vaults in time of panic can come back

there

and

try,

is

possible

no

wrecks

the

few

a

to it

at

time I

a

was

was

and

California,

of

was

Mr.

I

having
the

talking

either

that I am incapable

in

The average
in the United States is less than $500."
deposit?—I

savings

When

catering

are

we

it „is not.

say

wife or his creditors.
That is one reason, and a man living in a town like Boston or
Cleveland, where everything is being done for a financial in¬
stitution, and they are unable to take care of his money, there
must be
something the matter with his works, up here [in¬
dicating head].

a

Mr.

Knox

call

from

the

the

statement

most

sented,

as

Mutual

Savings

savings bank.
betterment

I

make

pf

the

the

savings bank

have

the

of

institutions

same

class—the

the postal
welcome any agency that will work for the
people, and if the National banks want to
departments we are very glad to have them
"

attitude

The

that

Bank,

has been

the other side of the world where they have postal savings
banks.
That is absolutely the fact, and the same fact has
demonstrated

So

far

good.

so

limit that a man
and

if

w'e

severity

in

have

here;

get into

never

they

If

may

such

money
a

comes

mutual
pass

a

into

postal.

panic

as

different parts of the

a




would

not

be

the meeting, and if it ap¬

Smith, of Burlington, Vermont: I just

P.

have

about

and

want to say

management.of Savings Banks for

million and a
1,800 depositors.
deposit and 30,000 depositors

We had when I commenced, a

and we had" between 1,500 and

money

$15,000,000

on

agitated

when the Postal Savings Banks were being

the bill

in the Senate I read it very

was

great deal of "interest.

carefully and with
'

,

And I wrote at that time to the Senator who had the matter
in

charge, advocating Postal Savings Banks, very much
to

New

York.

tion

with, the

I believed

knowledge

of

the

then as the result of my business connec¬

particularly in the smaller towns,

West,

believe

it

would

be,

it has come

this country needed.

be; it seemed to me it was just what
I

,

perfectly safe to make the limit $2,000,

for. I believe there are a large number of people

who will not de¬

posit their money in the banks but will deposit in postal
and

is

it

stockings
bank

better

in

that

placfes of hiding.

It goes back into the

into

back

comes

way

savings,

it is to have it in their

there than

it

have

in other

or

and

to

and my

Savings Banks did not

where mutual

South,

prevail, That the postal savings would be just what
to

in oppo¬

friends both in Boston and

the feelings of my - banking

the

mutual

an

I

have

been

through

the

savings bank,
with more or less

country in 1907, it is quite

depositors going to a

and depositing it in the

unmitigated

evi\ if it

was

two

Savings

panics when we had rather

severe

dry times, but I never had any trouble in getting all
I wanted if the other banks had the money

I don't believe there is any

ties.

Savings Banks

struck us

and drawing their money

That

postal banks

law raising absolutely

possible for us to, imagine large numbers of
mutual bank

the

bank.

have on deposit in a postal
a

C.

feeder to the

its history in countries

oon

been

making on the suggestion?

I would like to test

Banks.

postal savings will act as a

that

Savings

that would

and
•

•

Are we to consider

motion?

will offer a resolution;

of

now;

time he was go¬

,

come.

Mutual

We

few weeks ago of having

a

motion you were

a

Johnson:

twenty-five years.
half

and the

of New York—didn't oppose

Bank

We

of

after a storm,
applause]."

didn't know at the

I

as

Mr.

to-day,.,,and I bliink he will bear me out
that I said the institution I repre¬

ing to address us here
in

pleasure

Keene.

Mr.

Will you make a

sition

until

yet ,[great

us

had

I

:

wrecks

any

struck

not

they ask us for.

that I have been in the active

-

have

don't

We

storm has

With the

under the present law.

that

proves

wants to cheat his

he

of law;

process

of the danger

be protected because

$1,000 additional without interest, and

extension

Mr.

the

of

take "care

to

can

moment

the

.

The President :

that

Is that a
savings de¬

banks twice that amount

savings

to

ts

,

legitimate savers of the United
States.
When a man brings $20,000 to the postal savings bank,
he is one of" two things: he is either a crook or crazy.
He is
a
crook because he wants to put money where it is beyond the
ought

bank

mutual

mutual Savings Banks

with the protec¬
tion that is necessary or should be given to the mutual Savings
Bank, I feel quite sure we will have very little feeling against,

limit of

$20,000 and

bank.

in the postal savings

deposit it

to

with

coming

suggest that the

postmaster-General evolve sonje fqrm by

with the

conference

the

• /
somebody

of

us

is,will¬

and in turn we should work

us,

would also

I

amount.

I am in favor of. the National

;

...v.

the fact that the Government

with them.
We found the $500 limit didn't hurt us,, and I am,, in favor of
letting them take the $1,000 limit—with this suggestion, that
instead of giving the people the unlimited right to deposit, that,
«as a test to prove or disprove the theories advanced, that they be
given an additional $1,000 without interest, but not an unlimited
work with

ing to

exists' at

•

point.

opposed to, it, but see a danger

not

are

I would call attention to

the

told

the fact that it is our
savings—the mutual Savings

I would call attention to

definite point,

Banks

deposits

order to bring the matter to some

experience everywhere with postal

which

wanting

posit

Savings Banks, in

which

Weed

•

Detroit: In connection with the

Johnson,

Bank
a savings department; I am in favor of any bank being
greatest possible service to the community, but I am
about the lifting of the limit of these postal savings

banks.
Mr.

[Applause.]

H.

J.

of "Postal

to the postal savings bank.
as an instructor and edu¬

favor of

in

am

might with¬

their money into the postal

put

the State Bank, having a

I

savings bank department ;

of

Mr.

it now

welcome

I

1.

thrift.

in

cator

not any objection

have

No.

is

Radford is

friend

my

and

ular clause.

understand, the idea that I am trying to convey.

of making him

That

think

to

understand what I have said, or

to

Now,

hate

I

Creer:

unable

people have confidence in, they

savings bank. Not
because we are opposed to postal savings, but we are opposed to
that particular clause which might be a menace to ourselves, we
ought to put ourselves on record as not in favor of that partic¬

strewing the sands of time.

wreck

old established Eastern Sav¬

little bit safer than the one

a.

draw

knew.

1

better than

prophesied

other places that people

there were no

if

ings Bank which the

Statistics show that the
larger deposits are where the foreign-born population is -the
largest.
I can look back now over two years of its existence
and I cannot see a single wreck strewing the sands of time
where any
money has been
taken out of the banks already
existing and put into the postal savings bank.
I believe it is
bringing out into the daylight and into use a great deal of
mpney
which would otherwise be hoarded, and I am most ::
heartily in favor extending the limits, or in taking off the limit
entirely.
So be it—so that any foreigner—anybody who wants
to can deposit any amount of money they want to, and if they
are willing to accept 2 per cent, on $1,000 and let the rest of it
lay there, well and good.
I don't believe there wiil be a single'
I

of that sixty days.
could , see that

withdrawn at the expiration

But

'v\,

banks.

hundred

a

money

made the statement then

I

was

withdraw something in the neighborhood
thousand dollars, there was exactly $10,000 of that

and would

sixty-days

that I be¬
lieved that the organization of postal sayings banks would bring
into existence money which wasn't now deposited in the savings
of

tion

law

that

when

noon

discus¬

under

of the postal savings bank, it happened
at the head of the State Bank Associa¬

applied and we

notice on the first •after¬
put into effect—that they wanted

the people who gave us

asked for time,

*

matter

this

When

Radford:

the organization

be

to

D.

J.

Mr.

Cal.

the withdrawal clause was

insurance, when

In

'

they did not come.

their money,

Radford, of the

recognizes Mr

Chair

The

of Los Angeles,

Bank

Hibernian

sion,

-

even

instances.

President:

The

savings banks of this country,

the mutual

of

the panic had subsided, we

possibility that people, knowing

confronted with the

Office Department.
They would be drained, and the postal system of the United
States, successful as it may be, achieving the highest place in
this present administration, or the administration that started
it on its journey—its highest achievement
would be dearly
bought if in accomplishing that fact it strewed along its way
in

sixty-day clause, but at the end of
would still be
the absolute
safety of the Government, might come to us in spite of our long
career and reputation, and say that they would rather take away
their money and put it into the postal savings bank.
That par¬
ticular thing might be a menace to the Savings Bank,
There has not been any time during the panics when the appli¬
cation of the sixty-day law has not quieted people down, so that
when the time came they were given notice they could withdraw
We could apply our

that sixty days, unless

with¬

Post

of the

operation

the

through

again

bank with deposits

own

get it.

this coun¬

thrift and economy in

up

savings money, we could not do it. Take
of a hundred million, we have seen
in times of panic long lines of depositors coming to withdraw
their money, and we could very readily pay out all the money
we had in
sight and all on deposit in other banks if we could

'

v:

mutual savings banks were

if the

depositories of postal
my

/•/•.'

to get what

Keene

established

been

have

' '•••;

That is just the very

Creer

Mr.

and

States,

United

the

of

that.

to

In New York,
disposed to become the

to come back.

absolutely no way for that money

even

Savings Bank Section in all por¬
but I think it should be confined

gentlemen acquainted with the
tions

that money to come back into the vaults of the
meet the demands of their depositors, but there

for

possible

is pending to remove the
and I am sure that Mr.

that

act

savings

postal

205

SECTION.

BANK

SAVINGS

were

I

opposed

to

the

crease

the

will

time

that.

The

reason

amounts in

I

establishment of

never

our

come

same

ernment that would

The

trouble; I believe the fear that

have is the same fear they had when they

Postal Savings

at first.

perfectly safe to have the $2,000 limit, and I be¬

believe it is

lieve

now

the money

and I had the securi¬

when

reason

the

Government

can

safely

does not hold good with

in¬

the Gov¬

apply to a State or a mutual Savings Bank.
have

wanted

institutions,has

the

been

privilege of

that I

taking large

didn't want to take

\

206

BANKERS'

of it in

care

the

time of panic.

Savings Banks
A

Member:

Mr.

Smith:

stitution

$2,000

is

at

State

our

$2,500, which

$2,500, which

the

had

hold

we

Vermont—our

We

limit.

was

to

or

serious

State of

no

I think

step,

limit,

suggestion.

my

next

7'

limit?

your

Our limit in

$2,500,

when

limit of
limit

is

It is not the purpose of mutual

V-

What

CONVENTION.

made

Then

the

unwise, but

the

own

in¬

limit

at

State

question,

sidered

very

half-cock.
that

a

I

'

siders
tion

,

I

have listened with

here

this

mutual

afternoon.

Savings

a

I

Banks

are

interests and to every

man

been

able

to

to

the

whole

doing it safely and
Mr.
is

a

Sartori:

who

watch

great

not

question

in

the

close

fact

of

son's

that

this

be

much

so

referred

are

to

view

motion

ACTION

ON

was

the

fact

of

the

fact

Executive

is

to

meet

resolution

Committee

for

RESOLUTION

SAVINGS

EXTEND

LIMIT

ON

on

The

of

President:

is

that made

this

meeting

ernment's

by

that

this

the

$1,000

not

to

draw

Johnson, but

refer

the

Savings
take

Section,

to

Mr.

Dinwiddie

pression?

think

have

them

know

ought

we

by

upon

we

President

pression

mo¬

to

would

from the Executive

take

such

is

are

to

Executive

be

possible

to

the

action

of

the

satisfactory to the

Executive

members

of

fitly represent the sentiments
meeting.
Mr.
say

of

am

willing

change.

to

1

tion, and
I

say

the

I

have

change

an

amendment

out

that

going to hurt

friend

the

and

say

I

Schmitt

do

we

we*

alone

should

and

creation

in

not

tal

savings

you

of

many

harm.

us

ideas

and

and

in

helped

is why

giving

the

want

read

am

panic

that

we

want

limitation

the

postal

not

to

op¬

itself; the

shall

lution

offered

before

the

to this
or

Mr.

draft that portion

as

sure

of

the

bill

drafted

of

and

not

at

myself

a

did

they will meet
my

our,

That

us.

as

I

think

this

President

with

matter

power

:

I

from

what

moved

Detroit

whether to

understood

should

be

the

at

least have

they think of
that

should
were

the

reso¬

and

Mr.

Dinwiddie:

Report when?

The

President

At the next

Mr.

:

Dinwiddie:

I

want

to

Sartori

will

:

object




„I

do

not

seriously

that

has

worked

It

fact

that

with

it

is

the
sav¬

out

under

to

a

change

to

month, I

one

of

out

money

not

as

make

Very likely the in¬

be felt.

dollars

is

communities

think

the

bank,

To increase

entirely

where

unnec¬
insti¬

some

less

out

to

of

the

sayings

'7'V:

the
If

I

is

7',',.

before

now

will

be

unlimited part
that

should lead

Congress,

approved

of

it ;

to

.

am

V

which

$1,000, I believe

remove

banks,

by

that

is,

the putting

of

the

limited

a

members

of

the

amount

7

to

to

present

now

will

accepted

$1,000, and the
should

we"

the

Postal

>7

Sav¬

so.

here

amount,

a

this

the

probably
by

the

same

ap-

amount

suggest any

,

Postal
per

increase

of

bill

$100

in

month

a

amount—he

the

removes

$50,000

can

and

limit

minute

a

the

limit

as

much

deposit

alto¬
if

he

of

de¬

he

as

Government.

AiKEN/of Worcester, Mass.:

an

matter

be

very

Banks.

I

Mr.

•

from

by

of

any

this

I

cannot

weight.
should

the

see

It

go

seems

in

Congress.

sufficient

unwise at

this

time

to

It

and

resolution

a

or

it

com¬

increase in the limit of deposits in Postal
Savings
can see no
advantage -,to be derived from it whatever.

the

I

:

of

approve

.

It

is

a

given

meeting,

great

the

off-hand.

that

it

opinion

question
I

of

and

the

be

settled

it

be

the

change

in

the

recommend,

approve

of

gentleman

cannot

any

if

affecting Postal Savings Banks toward the end of an
increase in the amount allowed to
be on deposit with
them, and

that

the

to

men

to

which

will

forth

the

that

they

may

be¬

I

any

limit

and

properly

sentiments
of

approves

Savings

added

an

yourself

a

of

President]

worded

this meeting

the

limit

Banks

thousand

particularly

[the

of

being
dollars

of

resolution

toward the

interest-bearing

$1,000,
which

and

that

shall

bear

to

express its disbelief or
dis¬
in any unlimited deposit being permitted to
be placed

Savings Banks of the United States.

Radford

:

Isn't

except that he
Lucius

digress to

savings banker

Section

reference

the

receive

the Postal

$1,000,

as

it

by

prepare

the Postal

in

approval
in

set

perhaps

interest;

Mr.

it

appointed

capable

deposits

get

be

three

Mr.

motion

committee

a

report

was

>

laws

end

Sartori

•

to

seems

consideration,
pass

to

slowly

very

resolutions, .either of approval

being done
had

resolution

sense

is

great

as

not

Griswold

a

of

as

organization

has

Worcester.

ment

the

limit

pending
deposit

formally passed

an

meeting of this Section.

raising

could

specific

with

mending

report.

second

This

:

The

such

it

placed

Executive Committee

imagine there is
to

you

man

any

remember

Mr.

postal

act

■

to.

to

fore the house.

who

.the

$1,000 under the present

little

some

money

amount

that

A

be

report to this meet¬

motion of Mr.

referred to the

for consideration

many
and

7:".'-;

President

to

would

no

The

to

•

should

to

act with power.

that the

want

$100 in

thousand

Washington accepting it

me

any

friend from Iowa

hands.

I believe,

sure

Gov¬

make

is.

the

to

than

submitted,

disapproval, of what

great

Government

Committee, and that they

meeting—I wasn't

in

of

as

Alfred L.

before

was

it didn't do you

so

committee

by the gentleman

Executive

the

as

advantage derived from the passage pf such a
resolution as
offered by Mr. Johnson, and I cannot
conceive of..the authorities

it

pos¬

I

originally

think, as

body present

Sartori,

it

that.

Mr.

be

But I-want

T Applause.]
Oris wold:

$500

small

so

cent,

increase

an

wants

accept

savings bank is

ourselves into their

expression from the

be

deposit,to $1,000.

believe

positing

expression from that Executive Commit¬

an

should govern

I

non-

$2,000;

they have savings
they have in other banks in the
community ; but in time

wanted

me.

do

we

the

the ideas

I offer the resolution.,

exceed

well

as

harmful.

take a

three

panic if they can take

over

Conven¬

with

willing

that

bill

am

not

do not want

it

more

.7

if

amount

The

quite

to help along and give the

before committing

Mr.

ing

an

gether.

Denver

didn't agree

shape that early

experience, and I

said, that

it.

the

from

may

or

deal

bill

here

the

the

oppose

Is think in drafting, that

because

to

from

we

month, but I do not think that

I

'^7'7->'77/
we

and

body

helped

try

than

make

Savings Banks from $500

So

that

bankers

and

harm

no

know

■

the

of

I

'

think

tee

I

I

bill,

turn,

harmful;

very

I

bank

good

a

that

great

of

our business.

confess

may

It

per

7-°7(';

consistently

.

cannot

thousand dollars.

of

a

prove

do.

does

interest

the

raising the

oppose

benefit

ings Banks they will
undoubtedly do

this ;

didn't

start

7/,77

.

all

two or.three

the

not

divergence

clear.

success

amount

two
we

than

•

personally

much

the raising of

same

think -the
matter

done

harm.

4

me

I

an

of

even

I

has

pay

of

would

I

is

money in the Postal Savings Rank in the time
it is undoubtedly a fact that a
great many will with¬
draw their deposits
from the banks at such
times, because they
have'less confidence in the bank in
which

ex¬

at

word.'

one

I

:

greater

and

limit

entirely

expressed

from

me

members

$1,000,

be

>7777/-". "

be better;

resolution

to

;

although

them

would

fought it

this

now

increased to
tested

to

been

correct

Opposed

majority of the

a

the

that

to

move,

have

concede

think

—although

pose

brothers

my

like

would

Section, and that it
^

would

of the

approved

we

this

that have

,7

.

Johnson:'I

many

Committee

there

is

regulations and

no

bankers

an

do

our

that

That

this

a

increasing the

ex¬

Committee

get

objec¬

no

seconded.]
:

Saul

tutions

But

as

they have had

have

open to discussion, and the Chair
Saul, of Washington, D. C.

in

amount

sure.

opportunity to get together and consider the
matter, but I think
that

F.

and

do

drive

r

Committee until

is

F.

essary,

and

going to have that

would

among institutions, how,
much more would it
apply to the Government, and if the
postal
savings banks will accept two or three thousand
dollars it will

the

views

motion

they get very little de¬
posits because of the confidence
people have in institutions pay¬
ing the less rate.
If that applies even

by

of

action

such

express

have the

not

Sartori

con¬

off at

regulations.

those

the

Gov¬

made

Committee

-

It

:

Mr.

B.

for

make

sense

thorough examination.

a

we

motion

by

Executive

department; and

Do

:

the

limit

oppose

if

distinct

but if it does it will

be deposited

may

not

regulations of taking not

draws, and the other

now
was

themselves first.

express

The

I

that

do

deposit

would

creasing of the

the

personally

of

Now, if it is working well
in

the

of

I

B.

well

so

and

The

be

approve,

made

now

the

and

the

$500

That

motion

finally be determined

may

the

as

matter

with

up

would

amount

interest.

the

whole

Bank

it

Section

would

question

We

be

motion

proper

POSTAL

the question?

to

ings system

postal savings bank to $2,000, $1,000 thereof

a

to draw interest the same

Mr.

ready for

raising the maximum

depositor in

a

Are you

by Mr. Johnson—that it

the

on

Government

\

tion

amount—I

President

Mr.

•

.

Johnson's

-.7

latter,

will

DEPOSITS

Mr.

be

not go

$1;000 limit, or any other
$1,500—whatever the Government con¬

say

Johnson:

The

.

TO

and

recognizes

v.^

seconded.]

of

should

in favor of the
postal savings system, provided it
within reasonable
bounds, as far as the limit is

[The

John¬

action

7

.

at

of Mr.

part

that

should

we

am

ernment's,

this

that

limit at all, that is a

question

The

the

at all.

also

to.

We

and

that

non-limit

object

question of taking out the
or no

which

on

interest bearing

possibly be boiled down

this

•.

[This

of

Committee

that

report.

thrift

a

bearing deposit to $1,000.
the

diversity of opinion, and in view

move

the

view

them

thing will

same

encouraging

cannot

Executive

our

session, I

Mr.

.

community

any banking institution

resolution, and

a

of

injuring
it

subject there is

small

We

is

'of opinion.

I

necessary;

from the

go

them—I believe the

that

into

is

anything to do with

and

President, in

and

that

has

them

country.

Mr.

than

the

proper

I

held

cerned,

said, that the

principle applies to mutual savings

where he has had to do with

apply

have already

scared

more

same

has

I

as

to ;

that

the

$3,000,

or

con¬

great deal of interest to this discussion

believe,

really believe that the
and

is

is

limit,

the

A

to

comes

and

personally

reasonable

Member: What is your
average deposit ?,
Mr. Smith : Our
average deposit is a little less than $500.

it

thoroughly and

It

then made the,

we

strictly.

made

but when

making it $2,000

a

:

the

There

is

Sartori's amend¬

Executive Committee?
a

principle involved here.
May
that in the light of history
perhaps we should
thing or two?
I happened to be a member of this

that
to

Teter

that the purport of Mr.

names

say

carried

the

on

present

the

law.

campaign
The

among

banks

were

ourselves

with

misunderstood

♦

SAVINGS

then,

they

as

As

reform.

people interested in

by the

now,

are

and

tion

bill.
as

of free publicity Was given

dollars

My

raised

be

education

purpose

days as it used to

cessively

with

carrying

on

to

Federal

the

these

bill

this

income

the

features of our

eleemosynary

which would encourage

(when

is going through a

measure

*

few words.
my heart
the people

for which it-

not

we

period of evolution ; that we should
go
to great excesses in granting

pronounced and well
banks have wishes in the mat¬

opposition or at least without a

without

that the savings

defined. feeling
ter

and

carefully

advance

they see them.
,
to-day, but we are get¬

according to their lights as
has been

There

brothers,
when

take

ting away from a very

we

enter into
As

far

as

Government,the right to
like this."
institution is concerned, we have about $7,000,-

the

and give

lead

our

banking business in a manner

a

my

of $240,
and we like deposits when we can .get them.
My friend Creer
said we have had no storms of late, which is very true.
Per¬
sonally I would like to see this amount received by the postal
savings banks increased possibly to $2,000; I .have had this
thought
all through the discussion, but I see no reason why
any further amount should be received by the Government at

*000 distributed

among

27,000 people, with an average

,

this

time.

well

when

Now

It

seems

to me they

the amount they

get

we

about 25

are

covering the ground very

shall receive is limited to

cent,

per

$1,000.

of the postal savings,

and

well to the Postal
Savings Bank, and I don't think more than $100,000 are in
the Postal Savings Banks in that city.
I see this danger In
a time of stress, that they will take it from one place and put
it in a place of safety, even if it be a tincan—and in times

people in Salt Lake City haven't done very

of

stringency

they will withdraw their

POSTAL
Mr.

Aiken:

SAVINGS

It seems to

me

we

conclusion;

therefore

I

move

are

money.

so

far apart in our

dis¬

definite
that the whole subject be laid
likely to arrive at any

vote

and

carried.]




Radford, and was put to

"

The President: It

will take but a few .moments,

McLane,

F.

If

any

of the

delegates will mention to

I move the acceptance

of the report as read.

in order that,

think a motion would be

I

come

gentlemen,

up on

the platform.
very

glad indeed to present to you your new

Mr. Joseph F. Sartori, President of the Security Trust
Bank, of Los Angeles, Cal.* and Mr. William E. Knox,
Comptroller of the Bowery Savings Bank, of New York City.
I think these gentlemen can rightly be named the Napoleons of
finance of the Atlantic and the Pacific Coasts, respectively, one

officers*

& Savings

being President of the largest savings bank and trust company
in Los Angeles, and Mr. Knox has a fine position as Comptroller
of the'largest savings bank in the City of New York.
In addi¬
tion to that, they are members of the Savings Bank Section of
this Association, and they, have been efficient as members of the
Executive Committee, and I believe, gentlemen, they will give

service in the offices to which you
I have the pleasure of present¬

very satisfactory and efficient
have elected them.
Mr. Sartori,

ing to you your badge as President of
of the American Bankers' Association.
Mr.
Sartori : Mr.
President and
fully the very

the Savings Bank Section

Gentlemen: I appreciate,
complimentary remarks of Mr. Stephenson. When

elected President of this Section we were all very
proud and happv; you have won our esteem and our permanent
friendship, and I am sure that all the members regret with me
were

you

that you. are

now

laying down the duties of your office.
President you have shown, gentlemen,

not
the country
the circum¬
stances, considering the distance and all that, that I will per¬
form my duties to the best of my ability, and I want to sin¬
electing

In

me

only great consideration to me, but the section of
and the State in which I live.
I pledge you, under

cerely thank you for the

honor.

first important
manly bosom, which signifies
the Vice-President, and I congratulate you, Mr.

President

The

[Addressing Mr. Knox] : My

duty is to pin this emblem on your
now

you
are
Knox.

Knox :

Mr.

Gentlemen

I thank you very much, Mr. President.
of the Section, and Mr. Retiring Chairman

and

has been a very great pleasure to work for^
with such men as Mr. Sartori and Mr. Stephenson.
Our relations have been harmonious and. we have been friends.
Mr.

President: It

the

Section

I

can

very

I

them
of

cheerfully say that in the time I have worked with
always found the interests! of the Savings Banks

have

country was their first aim and effort, and
interests of the Savings Banks themselves as

the

the

not so much
the Savings

They have it very firmly fixed in their minds, both
of them, although coming from different parts of the connjtry,
and serving Savings Banks not the same as we have in the
East, that it is our duty as men engaged in the Savings Banks

Bank idea.

business

to

encourage

among

the people of the country in every

we possibly can the principle of thrift.
.
promise that I will do the best I can -to further Mr. Sartori's efforts as President of the Association, and will do all •
I can to further the Association itself, and, so far as in me lies,
to serve the Section to the best of my ability.
The President : I want personally to thank the ladies and

way

I

gentlemen for their attendance here to-day, and for the in¬
terest they have manifested in the proceedings of the Savings
Bank Section.
And also I want to again thank all those who
have contributed to the meeting, and especially to the gentle¬
men
who have been the representatives of the press and who
have been with us most of the day, and to thank all who have
had

any

connection

with the meeting and have

assisted us in

and one of success.
gentlemen, that if there is nothing further to
come before the meeting, a motion to adjourn would be in order.
Mr. Aiken : I
move that the
Savings Bank Section pass a

making this Section one of interest
think

now,

rising vote of thanks to the retiring officers of the
faithful and efficient services during the past

their

mark
the

of

appreciation, and I ask the incoming

Mr.

will

Section for
year,, as a

President to put

motion.

[Motion
i

the table.

[This fnotion was seconded by Mr.

Johnson,

names

President :

Gentlemen, I am

I

RESOLUTION TABLED.

cussion of this matter we are not

on

KnoX

much good said here

important thing when we look over our
the commercial bankers, and we are going too far

edwards,

e.

H.

instructed to cast the vote of the Section.
[This motion was seconded and put to vote and carried.]
The President:
I would like to have Mr. Sartori and Mr.

raise the limit to an ex¬
cessive amount we lose sight of our neighbors, the commer¬
cial bankers.
I know full well that those who represent this
Government at Washington have no desire to do anything to
interfere with the industries of this country.; they wish to legis¬
late for them and in their favor; but it seems to me that this
think

I

geo.

Secretary be

the

>

has well "fulfilled the purpose

bill

Radford:

The

teceived it with all

I

■

Chairman.

President the

Mr.

for
Government.

Lake City: I desire to say a
agitated

was

and

intended,

was

m#

ciate it.

tax and other . things

their means.

up

think

'

of members they would nominate for
Vice-President of their respective States I am sure I will appre¬

have, it is putting an additional burden upon
which is already being burdened ex¬

Beebe, of Salt

save

I

Respectfully submitted,

President :

The

the

consideration.

received any legislation

and

not

W.

[Applause.]
Mr.

•

it is

time

';■.;

Government,

Federal

When

a

J.

not even represent¬

But that the entire limit
should be taken off, and these postal savings banks be used
for caring for large sums of money, seems to be contrary to
the theory of the law as first promulgated and which was rep¬
resented to us.
And while it has not as much weight these
the

short

so

appointments.

passed, then that is

for which this law w£s

matter for

the proper

Mass.;
Brook¬
Savings Bank,

Germania

possible for this committee to ascer¬
tain the desires of the several States as to State vice-presidents.
We
therefore
recommend
that the president be asked to make such
In

fellow bankers in Chicago,

my

to serve three years:

Committee,

President

Sehachte,

Henry
Charleston, S. C.

unlimited amount.

to an

Savings

Treasurer Home Savings Bank, Boston,
Assistant Cashier Williamsburg Savings Bank,

Y.;

N.

lyn,

Executive

the

Knox, Comptroller Bowery
:y

Norris,

S.

Lersner,

A.

.v.';-..

,/

of

members

For

Charles

is that if the' Government
is finding this amount should be raised—the small amount to
continue to take care of the same people and for the same
ing

New York.

Bank,

the community, the

money to

and returning the

personal feeling in this matter,

own

William E.

Vice-President:

For

originated in this way.

should

amount

Cal.

Los Angeles,

Bank,

simply is
should go further?

this

offering to you their

President:

For

V.

pleasure in

take

believing that the men we recommend will serve you well.
J.
F. Sartori, President Security Trust & Savings

report,

in

committee

nominating

Your

1913.

Savings Bank Section:

and Members of the

President

Mr.

,•

.

Mass., October 7,

Boston,

question

the

for

NOMINATING COMMITTEE.

OF

REPORT

Washington setting forth the great

banks

'

McLane,

Mr.

President :

The

v

this: Do we believe that the
Government
There is not any question at
all, but you can conceive of the Government taking care of the
money
of all of us, but the question principally involved is
as
to whether having started an educational campaign of car¬
ing

ELECTIONS.

President.
of Minneapolis.

McLane: Mr.

M.

W.

Mr.
v

need of the
postal savings system.
As an educational influence in the
United States members of Congress make representations with¬
out any limitation whatever and at all times that the postal
saving was primarily for. an educational influence and to take
care of the funds of those people
of humble means unable to
take care of the larger sums ; and that was the thought run¬
ning through the whole thing.
And the suggestion that the
money that came into postal savings be returned to the com¬
munity from which it originated through the channels of the
Now,

the

.!■

:

,

literature from

various

report of

the

this morning.

matter of fact, the

a

thousands of

country,

until adjournment.
You
Nominating Committee ap¬

if you will stay

be glad

hear

NOMINATIONS AND

attitude of this Section, and
the attitude of bankers generally,
is co-operative.
I repeat
that they always were misunderstood, and probably will be al¬
ways.
The particular principle involved here is this :. that at
the time the bill making, the present law was put before the
Now,

now

opposed to the Postal

were

present

I

then.

hadn't been for happenings

Savings Bank on principle,
it was very largely due to the co-operation that this Sec¬
gave that the members of Congress acted in forming the

We

will

and

will

pointed

bill, which he would not have

ington to help draw this present
done if it

currency
went down to Wash¬

matter of fact, Mr. Johnson

a

207

SECTION.

BANK

seconded.]

Sartori: You have heard

please say aye.

the motion, and those in favor

«

motion was unanimously carried and the session ad¬
journed, to be followed by a meeting of the Executive Com¬
[The

mittee.]

Committee
Report of Executive

Reports—Sayings Bank Section.
to Boston Convention, by

Committee

Wm. E. Knox }

Chairman.

meeting of the Executive Committee in May,1912.

recall that at the Detroit meeting

,

larged
Mr.

President and Members

I

have been in close touch with the affairs of

ing the past"
Two

since

meetings

the

1912,

office

the

first

of

one

After

limit,
of

have

and

Savings

System,

action

wait

Robinson

with

that

the

trated

,

Postal

it

not

was

the

the

deposits which

interesting

Only

one.

members of the committee,

two

and, by invitation, the Chairmen of the Methods and Sys-

terns

Committee

to

Brooklyn,

received

departments.
Director of
him

desire

Mr.

the

to

do

Robinson

that

done

reported

that

Savings

continued

was

,to

express

it

the

was

with

On

as

Postal

of

and found

of

motion

The
from

Savings Bank

Brooklyn

spoke

the

to

This

Chairman

School

of the

of

combined

that

Savings

the

of

the

especially

fortunate

in

Vice-President

1

undoubtedly

and

have

we

done

for

the

have done for

American

and

besides

reflected

a

being

members

our

Bankers'

•

been

other

many

banks

tion.

Association.

I

have

the

the

"The

of

in

which

data

who

the

the^

office

lias

into the
which

one

been

is Just

sent

what

of

we

let

as

is

the

by

us

say

that

we

the

will

entire

well.

membership

Let

hearty

continue to

us

be, the policy of

work not alone for our

of

continue

co-operation

the

on

of

American

in

all

own

this

that

manner,
desired

for it
results

Chairman

1913.

Committees

E.

Executive

|
Methods

been

year

your




suggested by

action

Florida

to the

work

until

and

Mis-

attention

Great

of

co-operation

work

time

to

over

attention

of

number

sent

to

Massachu-

publshed,

and

in

forty

which

is

espe-

We

and

publications

fifty

in any community, and endeavor

one

to

sending these articles at

are

hundred

writing the

the

fact

banks

that

such

in

such

com-

is

paper

co-

*

these

entitled

articles,

"Thrift

and issued in book

Talks,"

form.

furnish

besides being handed

some

all

to

who

meeting,"

thoughts along

new

have

This book has

Savings Bank Section at this

the

will

trust

we

association

Maryland,

consideration,

being

four

appreciation by

our

bankers'

at

In the District of Colum-

publicity

The Secretary will be glad to supply a copy to any who

have not received one.
co-operation with the Board of Educa¬

tion,

we

were

presented at Cooper Institute,

the

arranged

bourse of eight lectures upon Thrift, which

a

and attended by

same

Great

subject.

were

interest was, displayed

something of

our

four

over

given upon

in

these

lec-

financial institutions, and

permit them to ask questions. relative .thereto.

'•

were
.'

printed

members.

and have been

We
our

.

believe

this

mailed in
to

be

the

population, and

adult

These lectures,

pamphlet
most

its

urge

form

to

effective

adoption

our

way

in

of

other

cities,
In

support

of

belief it is

this

very

gratifying

to

announce

that the Board of Education of the City of New York has asked

us to arrange a

Thrift course for each of the five boroughs of

the city, during the season just beginning, and the first of these
will

begin

on

Thursday

evening

of

this

week

at

the

requests for the

numer-

Thrift Talks from bankers, who desire to

use them in their publicity work, from bankers and educators
seeking information relative to the school savings system and

our

local

campaign of

This,

gentlemen,

Section:

Methods and.Systems

was

defer

in

from bankers here and there, stating that they have undertaken

Committee

entirely occupied with the Campaign of Education

Savings and Thrift, which

now

under promising

is

to

Louisiana,

in this matter.

press

every-member,

a

has

Board

That some progress has been made and the seed which has

Systems, By V.

Chairman, and Members of the Savings Bank

During the past

the

Reynolds, of

been planted beginning to bear fruit is evidenced by the

A. Lersner.
Mr.

of

J. J.

fire entirely dependent upon the generos-.

been

ous

and

wise

our

under

revised

Knox,
Committee.

'

on

Mr.

Commercial High School of Brooklyn.

'

W.

September 1,

A

courses

Respectfully submitted,

good

the matter, and it is

it

our

are

recently been

mem-

Bankers'"

has

tures, the object of which was to tell the people, in terms they

feel

banks

members

thousand people, and two lectures in Brooklyn

is

as

of

North

.

North Carolina, South Carolina and

is

work

as we

might comprehend,

wanted, and

sections

York,

Chicago

conventions.

at

articles

In New York, through

Louis

obtained.

Report of

v

ad-

This

St.

a

the

The Secretary also visited-South

Kentucky,

Iowa,

calling

reaching
trust

and

upon

bring

to

limiting them to

show

munity,

lines.

indicates

"

the

Association

office

conducted.

department

practical shape,

been, and I

for

our

present

and

as

have

'

you

such

country:"
has

be

come

from

New

savings bank

presented

have registered in

its efforts

says:

which

has

Thrift

general'associa-

department is performing a real service to

but

only

have

quote

savings

Savings Bank Section—to

bers,

but through

brought into

and

that

of

manager

your

This

may

Secretary,

prepared in

this

the

been

many* letters which

our

trust c.ompany,

that

have

Association

various

in

reorganized, and

Associations

definite

"

y

seen

to

manner

from

is

Bankers'

Membership Committee

our

'

dressed

it

the American

upon

confined to pavings banks alone,

is

operating with us.

or

benefit to banks and'communities,

great

whole.; Also, the efforts of

not

•

of

credit

them

have deemed

planned

States

monthly,

occa-

Campaign of Education in Thrift has attracted attention
merely throughout this Country but also in other
countries,

has

they

was

Georgia,

the

The
not

it

ity of the

call

history thus

our

of

committee of the Board of Education of Chi-

a

Wisconsin,

to

been the best year of
we

bankers

setts, Minnesota, Missouri,

Bankers'
took

in

Mexico,

Secretary and

our

Association

Secretary

bia,

Bank

a

overlapped .that

Particularly

where the school

Bankers'

the

Section

receiving

American

of which he

course

New

Oregon.

invited

dally gratifying,

Reynolds,

all

has been apparent in Connecticut, Vermont and New Jersey, and

been

Methods

regard

we

reaching

For instance, directly due

consideration

Indiana,

and

Delaware

the

.

compliment the Section upon its work.
has

favorable

to confer with

State

the

sissippi

" Savings

directly

sav-

and thrift

our

representative

Ind.,

In

••

;

was

Arthur

'

until

the work of the School Savings
with

necessarily

Savings Banks.

conventions in each of these States.

School

the people,

of

concen-

the school

* consideration.

■

the

fifty

Bend,

should

had

been

publications—which

methods

for special consideration.

cago

To'epel, as

Section

Ohio

in the hands of

:

the

have

we

Illinois,

Brooklyn,

no

was

that

nothing

Law.

/

far, measured either by what
what

Law,

upon

books

Association, who addressed it, in
sion

Committee

to

men

sections.

many

finally

channels—namely,

effective

School

under

of Education

.

found

and

it up in

have

com-

evidenced

Bank, and.our Vice-President for Illinois, through whose efforts
about

Savings Sys-

voted that it be recommended to

be

committee

committee

efforts

our

such

to

having

Country

Vice-Presidents, the school savings system
legalized in California and New Jersey, and lias been

also

Dakota,

the

having

confined

been

in

same

organized,

work been done by Joseph R. Noel, President North West State

all

seen

work
on

Arkansas,

were

in

and

and

educator, and Mr.

an

that the

Committee.

Mr.

had

the ,Postal

the

correct.

was

Committee

Systems

of

Currency

its'next annual meeting that

Bank

he

banks

special

a

sentiment

reported

Committee, it
at

reports

activity

requested

as

the

the Director of

satisfactory

a

the

committee,

audited

System
with

co-operate

System from the standpoint of
a

.meeting

Robinson

to

Mr.. Reynolds
.

this

unusual

Postal

Congress passed
be

At

showing

is

It

anything which would conflict with their interests.

requested to
tern

City.

committees

Mr.

willing

very

York

all

of the

been

have

adopted in Phoenix, Arizona, where it is in successful operation,

and

New

from

not

principal

most

the efforts of

has been

Membership Committee were -present, together with Mr. J. J. Reynolds, Principal of Public. School 122,
of

have

forward

carry

to

those who had

■

this

In

ab^

were

sent,

to

parts

newspapers and other

three

Committee

be^deived

.

all

work,

requested

was

among

committees

lectures by financial

classes.

may
from any one individual.
meeting of the Executive Committee was a most

second

the

these

experiment

three

upon

the

as

Sav-

in

of

in

State

Committee from

activities

some

articles in

a

raise

the

ings system,

taken

were

that

should

Briggs

appointed

was

fact

Congress

After

referred to

were

the Director of the

him

Section

which

Mr.

by

by the Section,

Mr.

upon

acquaint

the

offered

Several

in' each

lively interest in the work and taken

a

re-elected to

was

interest

an

State.

may

accordance

in

granted, and

were

Vice-President

mittees—bankers

1913.

to

These

Educational

an

although

the other at

May 5,

on

Secretary

resolutions

for

his

order

country.

the

manifested

h£ld

been

expressed in the present law,-of the maximum amount

as

The

-

the

deliberation

to

and

of

the

Committee

one

System

sentiment

meetings

Postal

organize

Section in Detroit, September 12,

following that session

and

year,

mature

committee of

ings

these

the

to

Executive

up.

Committee

Lodge, Briarcliff Manor, New York,

for

relative

Executive

the

therewith

■

of great benefit to our members.

year

the

immediately

one

At1 the

a

of

last meeting of our

Briarcliff

Section dur-

our

in

powers

of

parts

,

and it is a pleasure for me to' report that I

year,

believe.this has been

.

of the Savings Bank Section:

You

Committee requested enproperly handle this matter in all
our

Secretary at

in
a

name,

by

education in
is

the

work

Thrift and desire advice.
we

have

and we,feel that no better work has

any

department

of

this

Association,

been
ever

doing

seeking

strengthen the very foundations upon which

our

in

your

been attempted
as

it

does

to

economic struc-

him

take
years for definite results to become obvious, we may report a
gratifying progress in that, besides the practical evidence men¬
tioned above, in at least forty different sections of
country
further, that while it may

feel,

and we

reared;

is

turc

This method is now in force,

which

is

structive

funds the Sec¬
tion now holds on deposit with the Irving National Bank $1,000,
and with the Union Dime Savings Bank $1,308.64, a total of
$2,308.64.
Our clipping service has been discontinued, as It
was found impossible to get full value in clippings upon savings
bank matters alone, and our library secures ail clippings of

which was

.

•

Respectfully submitted,

vY.v. '•/ ;

/

v;:

*

V. A. lersner,

.

and Systems Committee.

Chairman Methods

general banking information.

\

Bank Committee.

savings
system throughout the country has largely devolved upon the
Methods and Systems Committee in connection with the Cam¬
paign of Education in Saving and Thrift, we have given our
attention since last September more to the legal phases of this
system, and have directed our efforts toward securing its legal¬

recognized, the following

is officially
each of our

inquiry was addressed to

vice-presidents:

-v

this

exhausted.

authorized to revise this book,

be

Secretary

and

York

New

However,

this

system.

and

Systems Committee,

New

the Methods

have heard from

the vice-presidents of California and
have-secured its recognition by their legislatures,

Jersey

through the direct

and

you

as

efforts of our Committee, a

bill dealing

banks has been introduced in the
of Minnesota and will be introduced in the legis¬

especially with school savings
Legislature

neighboring States as well.

of

latures

convention of

the following

ing, held in Richmond, Va.,

\

and

framed

influence

and

Committee, the whole of

Systems

taken

Institute

my

very

the Methods

deep appreciation of the kindness and courtesy
members of the Executive Committee to me

of effort rather than
Section, but that
beep worth while is evidenced' by appreciative
from time to time which would lead to the con¬
the effort be persisted in the years of achieve¬

has

received
that

viction
ment

if

far removed.

not be

will

•
„

Respectfully submitted,
V

FINANCIAL

STATEMENT,

SEPTEMBER

Chairman

.

,

Credits..

■

.

By appropriation of
7,

May

BANK SECTION.

12, 1912,

September

$8,000.00

Executive Council.........

1913,

By. appropriation of
•

1,000.00

Executive Council
~
Y

$9,000.00

Disbursements.

'....'

Salaries'....................
Postage, stationery

Proceedings

$ 655.33

.....................

and printing

1912

Committee expenses.

E. G. McWilliam.

Report of Secretary, by

Convention expenses
Express..

Iftr. President and Gentlemen:
The

of

work

your

Press

during the

Secretary

past year will be

for. I con¬
these
committees, and at the beginning of the year placed myself
entirely at their disposal, to care for any of the detail which
might accrue from the work under their direction.
Hence the
work of the Methods and Systems Committee, embracing as it
does the most important work this Section has ever undertaken,
namely, the Thrift Campaign, and the work of the Membership
Committee, who have been very active this year obtaining large
results not merely for our
Section but also .for the general
organization of the American Bankers' Association, has occu¬

illustrated largely by the

Bankers'

represented
Associations

whom

I

addressed,

Bend, Boston

Vermont

of

and

and

Jersey,

New

and

the

New Jersey, all

made trips to Chicago,

have

and Washington,

of the

the conventions

at

South

of our various

in the interests

correspondence has been very large,

gratifying, as indicative of a spirit of cordial
tween

the members and

endeavor
will

use

On

that

to
me

June

from

the

Secretary.,

which is most

co-operation be¬

It has been my

be, of service to all, and I trust that our

said




last
date

I

all

was

bills

advised- by
of

the

earnest

members

before*
Secretary
Section would be paid by

in the future to a larger extent than ever
first

;
.

»•

the

General

31-35

Credit Balance..

Report of

Membership Committee, by G. E.

Mr.

Members of the Savings

President and

Edwards,

Chairman.

.

Bank Section:

September 1, 1913, the Membership
Committee has been active in its efforts to secure members for
the American Bankers' Association, as well as additional enroll¬
During

the year ending

the Savings
conference

After

Bank Section.

General

with

Secretary

Farnsworth

and

Committee adopted a plan to solicit
applications for membership from banking institutions of all
Secretary McWilliam, your

classes

throughout the United

States.

suggestion made at the Detroit meeting, .the
Vice-Presidents were invited to co-operate, and it is

Acting upon the
State

committees.
Our office

1,943.09
1,307.36
889.08
255.25
11.94
4.78
36.69

$8,998.65

ments in

Section

our

Savings Banks Associations of Connecticut and
of

clippings....,V

Sundries

embody those of servant to

pied a large portion of my time.
have

............

3,895,13

reports of your committees,

ceive the Secretary's duties to

I

•

Secretary.

1913, INCLUSIVE.

.

School

McWilliam,
-

SAVING'S

1912, TO AUGUST 30,

1,

Rent.......

N. F. Haw-ley,
Savings Bank Committee.

*\

G.

E.
"

such work hereafter be

Respectfully submitted,
(Signed)

one

of the Savings Bank

achievement in the work

effort

of the
during

■'

past year has been

the

that

feel

letters

desire also to express

and

past year.

I

Chapters of

co-operation of the various

throughout the country. - I

that Committee.

by

over

the country.
that, inasmuch as much of the

savings is being done by

school

regarding

work

the

the future thrift of

recommends

Chairman

The

in a new edition of our

upon

impetus and the

newed

body of bank men,

in thrift as well as
work will receive a re¬

of education

it is hoped that our

matters,

financial

movements

and thrift."

teaching of economy, prudence

importance

the

realize

of this Institute is given to

endorsement of this great

the

Through
who

the

legislation, if any, may be

school savings bank
pamphlet, which may be had upon application to the Secretary.
Through our Secretary we have secured from the office of the
Comptroller of the Currency at Washington the promise of a
close co-operation this coming year in the matter of gathering
statistics of the* School Savings System, and through the same
agency have sought the co-operation of Mrs. S. L. Oberholtzer
of Philadelphia, who has been carrying on the work of the late
John H. Thiry, founder of school savings banks in this country.
We earnestly second the commendation of the Methods and
Systems Committee regarding the importance of the school sav¬
ings bank as a thrift agency, and believe it to be second to none
its

having for their object the

v

,

"Resolved, That the endorsement

needed.

the States where

subject in

end that the people of our own

posterity may understand more

that forms of school savings laws,
methods and conditions of the country,
distributed as bases for legislation upon the

This has been done

the
generation and our
clearly the earning power of. money and the
inculcating in the minds of the young

"Realizing the importance of

the

adapted to the different

resolution was unani¬

mously adopted:

officers

May We recommended

Last

bringing it thor¬

edition be printed.
the American Institute of Bank¬

to date and that a new
recent

the

At

to

will be appointed at this meeting.
edition of our book of Printed Forms is practically
I would therefore respectfully recommend that the

last

The

in

for same in 1916

arrange

responsibilities of citizenship, it is

that in but two States,
Massachusetts, does the law take cognizance of •

replies received it appears

celebrating the one hun¬

anniversary

ring thereto ?"
the

which have

of the establishment of savings banks
country will not be lost sight of, and that a committee

dredth

precepts of thrift, to the

From

in

matter of properly

that the

trust

close co-operation between the
at this time to ex¬

the many courtesies

deep appreciation of
at his hands.

State mention the school savings
system, either authorizing same or implying its legality?
If so, will you kindly send a copy of the paragraph refer¬
"Does the law of your

:

be

mine

oughly up

in what States the system

ascertain

order to

In

the adoption of the school

various State Legislatures.

ization by

my

been

I

and Gentlemen:

work of securing

the

As

press

a

and myself, and I desire

Secretary

General

Report of School Savings

Chairman

Mr.

things there has been

all

In

September 1, 1913.

V-Y

appropriation,

and printing, we have kept within our
$500 less than last year,.
Of its own

postage

need the
order that mis¬
takes may
of efficiency ob¬
tained, and we sincerely hope that none will be restrained from
offering'their aid because not officially connected with the work.
advice and suggestion of all in
be avoided and the greatest degree

co-operation,

'

office as previ¬
and the financial statement
appended hereto shows that despite the large con¬
work undertaken, Involving large expenditures for
0. K. instead of direct from our

my

upon

ously.

toward thrift.' However, we

thought is being directed

209

SECTION.

BANK

SAVINGS

through their efforts the

gratifying results we report have been

obtained.
To

illustrate

the volume of work

connected with this under¬

that twenty-three vice-presidents
9,089 personal letters, and it may be said to
several others stood ready to press the cam¬

taking, is to point to the fact
have

distributed

their

credit .that

.

paign further had funds been

available for that purpose.

210
The

BANKERS'
following exhibits the various

this Section
for

the

in

each

State, also the

year:

classes

net

of

Trust A

Arizona.........>■
Arkansas
7.

»7*•

...

Colorado..

•..

•»

Connecticut.;...

...

48

Delaware.......

:7

7

7

2

•

7 7;

m.-'

,,

California.......

1

■;';7

State.

7

5

1

2

3

■'

6

81

-7:

18

5

Natl.

Total.

District of Columbia
*

Georgia

Idaho

.'..

•

1

1

21

775

12

10

3

6

28

1

43

16

7

166

2

•77

5

1

V-

1

4
'

3

.

«.y

3.

18

5.

57

•

•

•

,

,

,

Kentuoky.......

•

Louisiana....

•

48

37

21

28

181

7.

;,,

;

7/7:7

3

,

6

20

2

22

•

8

10

5

4

3

•

..7

29

•

6

7v.

1

5

2

3

7\

3

21

17

.'•7/7

14

2

7/.

:;C vV\

£>5

9

Massachusetts... ...91
•

.

*

•

7

12

•

.

147

.

New

4

...

•

•

•

«

•

•

•

•

♦

.

2

....

Hampshire.

7 '7

11

...

-.7

:•

5

30

3

45

13

10

9

7

5

3

2

5
2

1

32

7/'.;./'

;

3

-

1

.

49
21

1

1
4

.'

25

91

...

North Carolina..

«

•

North Dakota...

*

'

/

...

Oklahoma..

*V7

Oregon.......

•

4
2

8

97

.

.

.

•

7

•

1

.

5

Pennsylvania....

...

9

Rhode Island....

...

6

•

26

■

2

4

24

1

4

3

16

l

36

15

8

6

170

2

1

2

4

8

31

2

.

16

....

23

1

1

6

W:3

■

South Carolina..

•

South Dakota.

7

•

.

Texas..

Utah,
......,

.

.

•

.

•;

•»

♦

•

vV

V

Washington.

».

8

8

10

18

3

2

1

2

77 -7

•

...

4

3'

7

..

P"

10

.

Wisconsin.......

Wyoming

...

.

..

•

Canada.........

.

.

.

Cuba...........

...

1

4

2

1

16

3

.

•

8

11

15

10

•

.

,!:7'7

Total

Lost

5

7 7v

7

:

1

♦

r*

1

"7fV''

30

3

45

1

4

'

1

7

1

23

2

7'V'

65

'

11'7-

'

7.-

■"%.
■

the

the

the Convention

Segregation,"

segregation

last

law

your

in

of

savings
separate investment.

recommendations'of
that

was

the

bill

provided

invest

year

a

stand¬

has*

committee

this

House
,

as

that

bonds

first

of

include

a

in

section

National

Chicago; conference

section

should

be

Representatives

of

withdrawn.

did

not

adopt

.

reported

savings
or

the

to

deposits

by

the

departments

Committee

might not

of

the

purchase

securities

public or private, except in
certain carefully
described bonds and
mortgages, the bill as
finally passed by the House omitted these
speclic provisions and
lists

14

30

at

prescribed instead that the Federal
•

H. Sturgis.

Gentlemen:

of

Reserve

Board

investments

should issue

available for savings
departments, and
explicit statement that "such lists need
not be uni¬
form throughout the United
States, but shall be adapted to the
conditions of business in
different sections of the
country."
In this connection the
following statistics from the reports of
the Comptroller of • the
Currency may be ^>f interest as show¬
ing to what extent National Banks are
already handling savings
deposits.
In the spring of. 1911 more than
half (51 per cent)
of the National
Banks.reported savings deposits:
added

the

.

;

:/A"

21

.'.

2
1

21

1

//

22

/•-;;

•

31

..

7,

40

'

Committee.

1013.

4

•

•

#

1:4

31'

#V-:

"

..

"■

3.43

..

1

..

Hawaii..........
Total...

•

.

3

While

'

•

...

,33

5

7

•„

Saving Banks Section

on

'

•

"25

2

';

Palmer,

Committee, by John

recommendation.

or

8

7
■

3

.•'...it

148

7

2

5
7

13

the

"

/.;v

2

14

•

10

7

6

*

...

Virginia.........

7-

♦

•.

2"

12

♦

77

Tennessee..1...

the

their

The Committee of

24'

"

for

of

House

6

.

2

43

......

'124 VV:.';/1

..

7v

5

■

•

"

-

.

Sayler,

active

and

One

6

7:
;P"

7,

and

the

"Committee

no

this "Association

4

-

Chairman;

steps in that direction
during the past year.
other hand, as we.
believe in the
propriety of sepa-*
rating savings deposits ' from
commercial
deposits and
that
their investment be
prescribed within reasonable limits
by pub¬
lic authority, we have
noted with interest
that the bill before
Congress for reforming our
banking system, while still in com¬

58

8

6

Edwards,

the

hanks

7-'78

..

the

providing

2

'

West Virginia....

'

of

,...

22

3

..

1

•

....

Ohio.,....*.

•/'"

E.

Beckwith,

mittee of the House and
Senate, was made

.

.

'

New York;

Vermont.

5
16

15

•

■

2

'

1

2

■

A/'-'

.;.

.

2
.;

2

1

7'

,2

10

■:

Mc-

was
appointed to
further the idea of
segregation of savings
deposits, to be known
as

On

19

1

1

»

■

4

...

1

26

4

1

>./

1
•

5

..

.

223

..

Committee

taken

77

95

<•

President, Ladies

ing

'

8
■

■

,

.

October

In view of the
fact that

5

2

-

'

4

.

Mr.

7 3

16

5

^

Secretary

Membership

Boston, Mass.,

Report of the Law

18

6

61

/'-''

1

2
.

New Jersey...... ...16

.New Mexico

7^

30

,

»

'

.

6

«

»

.

77

•

2

#

.

.7*

V:

.

..

P.

Henry

1

210
.

by

handling of detail.

George W. Felter,

2

94

4
4
.

,

Nevada..

H.

Wilmer

■'

•7.'

the

the generous

the State Vice-Presi¬

Respectfully submitted,

«

12

2

of

rendered

j:

.

...

...

Nebraska.......

assistance

'

•

159

.21

10

thanks for

our

hands

36

.

10

22

•

:7fv.

2

9

77

5

Maine......

Missouri......

the

George

6

4

:V'

5

s
7'

3

,

1

''

6

*7

•

Maryland.......

Montana

at

'

7

6

1

,

.-V

1

.

2

:35

1

,

,,

3

7;

•

'•••'

.7:

2

•Vt7*7
«7

»

7
,

1

•

•

'7

-

4

,

14

•

7
•

'7'; 7' '77' '

'

,

>

•'

•

7.7

Mississippi......

valuable

'

■

"•*

'-77:.
13

..

•

...

Iowa.......

7

•

#

Indiana........

Minnesota.......

77:;

queht.

2

1

the

time to express

received

William and his office
associates in

Delin-

Cos.

and

have

'

2

...

Florida

Michigan.......

We desire at this

support we

dents

Trust

Stock. Savings.

Alabama...

Kansas.

of

membership

7777 '77^777;77
Mutual.

Illinois

membership

increase in

CONVENTION.

3

'.77V

769

299

':%*■

2

:

7.7"o

."1

Number of

5

••

-■

Nov.

443

363

198

2,415

37

membership September 1, 1913.,".,.;......
by failures, liquidations, mergers,
etc.......

2,415

membership September 1,, 1913.............
membership September 1, 1912.
v..

2,378

Amount of

Savings Depositors.
10,

1910.....

......

2,205,149

......

2,340,220

Sept.

1,'

1911

Sept.

4,

1912. 7

Savings Deposits.

$587,886,496
.7

•

2,709,048

...........

659,501,543
748,247,183

37

These

Net
Net

Gain for the year
ending

The Committee
tive

Committee

September 1, 1913......

submitted

at

its

a

preliminary

318

report to

figures do not include certificates of
deposit.
report by Mr.. Glass to the House of
Representatives in
connection with the reserve bill he
gives savings deposits jn
National Banks .Tune
4," 1913, at about $829,000,000.
In

a

7

Respectfully submitted,
the

meeting

7;

...

at

Briarcliff

Manor

on

7

"'V'.

,

t

underlying Gas, Traction

Fidelity
resources

New

■

KNOX.

•

v'7
.

'

Company

Building, Newark, N. J.

of

over

Guarantees New
Jersey Real Estate Titles
r

7'

Sturgis, Chairman.

Sartori,

E.

more than
$30,000,000 and a Capital, Surplus and Undivided
$9,500,000, this company is the
largest institution of its kind
Jersey.
It does a general
banking and trust company business and

Profits of
in

H.

F.

Corporation of New Jersey

and Electric companies

Trust

Prudential
With

WM.

and in those of its

/

.,

John
Jos.

-7 7-V-

in the securities of the
Public Service
7

UZAL
""
,

.

Execu¬
-

spring

May 5, 1013.




2.060

H.

McCARTER

'

President
,

'

„

,

7,77

"*77-

.