The Toledo chronicle. [volume] (Toledo, Tama County, Iowa) 1873-1924, 1876-12-14
The American Bankers Association.

In financial as well as in political his
tory we often find that in distant places
similar movements begin at the same
time without any concert or mutual
knowledge. The operation of this princi-
pie is illustrated in the organization of the
American Bankers Association at Phila-
delphia A similar association has lately
been formed among the Banks of Great
Britain, and there is little reason to doubt
that both these societies have their origin
in necessity, and are capable of rendering
great services to the cause of sound bank
ing Several attempts have been made in
past years to establish union among
our banks. We believe the first of these
attempts began as long ago as the year
1888. In May, 1887, all the banks in the
United States suspended specie payments.
When the panic had abated, some of the
banks in New York and elsewhere took
measures to summon convention, and
on the 18th of April, 1888, 1853 bank dele
gates, from eighteen States, assembled in
this city for the purpose of united action
in regard to the currency and the resnmp-
ton of specie payments. We need not
detail the proceedings of this convention
further than to say that it voted by a
large majority to resume in January, 1899,
and that 10 its deliberations in part was
due the establishment of that celebrated
Of nj nh nI, h.,
the New York Legislature in the Act of
April, 1888. This system, as is well
known, was not only commended in high
terms by Sir Robert Peel and by other
English bank reformers during the Par
liamentary debates which preceded the
passage of the British Bank Act Of 1914,
but it was the basis on which were mod
eled the chief features of our national
banking system, as organized by Mr.
Chase and Mr.. McCulIoch in 1868 and
1864 under the national currency law.
1.-THE second convention was held in this
city in 1865. two years after the National
Banking system had been set up. Like
the first convention it was largely attend
ed by bank officers from all parts of the
country 1t was, however, restricted to
the officers of the National banks; and
the plan of uniting these institutions to-
gether in a national association proved
abortive The foundation ard the prin-
ciples on which II is union was attempted
proved too narrow for the supcrstructure
which was designed to rest upon them.
Last year third convention was heli
at Saratoga, under much more promising
auspices. A large and influential bodycf
bank officers ami bankers assembled, but
as mature deliberation was necessary, all
that was done was to prepare the prelim-
inaries for permanent organization, and
final action was postponed till the present
year. On Tuesday, Oct. Sd, the Phila-
delphia convention assembled, and its
sessions continued for three days. Dur
ing that time constitution was adopted,
officers were chosen, and a permanent Or
ganizaton was created, having for its Ex-
ecusive Committee bankers prominently
known in the chief cities of the United
States. Among the features of this asso-
citation which commend it to the conf
,ence of the banking community, two or
three are worthy of special notice. 1t is
limited to no single class of banks, but it
includes trust companies and savings
banks as well as National, State and pri-
waite banks. 1t has, moreover, a definite
practical object in view. 1t aims TO
spread among the banks and to make ac-
ccssib.e to them throughout the country,
such information as will be of general
utility in regard to legislation and other
questions. For example, there is the
subject of taxation. 1t is well-known
that our banks are suffering from cxces-
siye fiscal burdens. No less than one
hundred banks in various parts of the
United States have succumbed within
few months. The profits Of legitimate
banking are for obvious reasons SO much
that the banks are no longer
able to pay as heavy taxes as formerly
During the war, and while the imitation Of
paper money values was at its hight, a
Stimulus was given to all kinds ct bust
ness, and the profits OF banking and OF
commerce generally, were much larger
han they are now. War taxes were i'm
,osed both on commerce and on bankings