Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-12-08
The American Bankers AssOcia
ton,

10 financial as well as in political history We
often find that in distant places similar move
ments begin at the same time without any concert
or mutual knowledge. The operation Of tbi.
principle is illustrated in the organization of the
American Bankers Association at Philadelphia
A similar association has lately been formed among
the banks of Great Britain, and there is little res-
son to doubt that both these societies have their
origin in necessity, and are capable of rendering
great services to the cause of sound banking. AT
some future time we shall endeavor to give &C.
count of the constitution, objects and work of the
English society.
On another page of this issue, we publish re-
port of the American Association. Several at
tempts 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 1898.
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 else
where took measures to summon a convention,
and the 18th of April, 1888, l5S bank delegates,
from eighteen States, assembled IN this city for
the purpose of united action in regard to the
rency and the resumption of specie payments.
We need not detail the proceedings of this con-
yention further than to say that it voted by large
majority to resume in January, 1889, and that to
its deliberations in part was due the establishment
Of that celebrated system of banking which was
created by the New York Legislature 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 Parliamentary debates which preceded the
passage of the British Bank Act of 1874, but it
was the basis on which were modelled the chief
features of our national banking system, organ
lied by Mr.. Chase and Mr.. McCulloch in 1868 and
1864 under the national currency law.
The second convention was held in this city in
1865, two years after the National Banking sys-
TEN had been set up. Like the first convention it
was largely attended 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 together in National
association proved abortive. The foundation and
the principles on which this union was attempted,
proved TOO narrow for the superstructure which
was designed to rest upon them.
Last year third convention was held at Sara
toga, under much more promising auspices. A
large and influential body of bank officers and bank
ers assembled, but as mature deliberation was
necessary, all that was done was to prepare the
prelimnaries for a permanent organization, and
final action was postponed till the present year.
On Tuesday, October Sd, the Philadelphia con-
vention assembled, and its sessions continued for
three days. Dining that time q constitution was
adopted, officers were chosen, and a permanent
association was created, having for its Executive
Committee bankers prominently known in the
chief cities of the United States.
Among the features of this association which
commend IT to the confidence of the banking COM
mnnity, two or three are worthy of special notice
II Is limited TO no single class of banks, but ii in
cludes trust companies, and savings banks, as well
as National, State and private banks. 1t has,
moreover, definite practical object in view. 1t
aims to spread among the banks and to make &C.
cesslble to them throughout the country, such in
formation as will be of general utility in regard to
legislation and other questions. For example,
mere IS the subject of taxation. 1T is we'll known
That onr banks are suffering from excessive fiscal
burdens. No less than one hundred banks in va
rious parts of the United States have succumbed
within few months. The profits of Legitimate
banking are Tor obvious reasons so much dimin-
ished, 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 height. a stimulus was
given to all kinds of business and the profits of
banking and of commerce generally, were much
larger than they are now. War taxes were i'm
posed both on commerce aud on banking; and.
Notwithstanding the pressure of these burdens,
they were endured until tie close of the war,
when most of them were gradually removed.
Nearly all the war taxes OF every description have
been repeated, and those imposed upon the banks
alone survive.
Under these circumstances the American Bank
efs Associa'ica deems 1t wise to make its first
movement IN opposition to these taxes 1t is crcu.
latlBg petitions Tor signature throughout the
country, and 1t has issued various documents in
aid of the ell, ri to be made at the coming session
OF Congress, for removing the war taxes from the
banks. Three reasons are given why these taxes
should be repealed. First, they are ipcouitabIe
excessive and unjust. The banks cannot afford TO
pay them. They are suffering under the pressure
OF these and other burdens, and they are looking
forward to the still heavier burdens which will be
imposed upon them by The approaching resump-