Morning journal and courier., 1882-08-18
NEW YORh..
The Bankers Counctl-Assessments Savings Banks-OMcers of the Associ- alton ed

The Bankers CounctI-Assessments on
 atfon Elected.
 SARATOGA, Aug 17.-In the Bankers asso- ciation this morning MT. Hewey, of Mobile, gave brief account of the crop prospects in his State, which he states are good. The planters of Alabama are getting rid of the incubus of debt. The mineral wealth of the State is great and only needs capital to de- velop it. The improvement of the river is doing much for the State. A paper on the industrial growth of Mississippi and the cot ton States was then read by Mir W. H. Per kins, cashier of the Capital State bank, at Jackson, Mississippi
 MT. Logan H. Roots, president of the Merchants bank, of Little Rock, Ark, gave glowing account of the progress and pres ent prosperous condition of business in that State. The old times. when the planters considered it necessary to keep in debt to their commission merchants, have passed away, and the new crop is being made with great economy, so that the planters will have much money ahead next fall and winter. He called for capital to develop the mineral and agricultural resources of Arkansas also, for young men, to act as bookkeepers and ac- countants Competition in brains and money is not so great at the South as at the North. MT. R. M. Nelson, of Selma made brief presentation of the condition of things in things at the end of the war, when only lands and debts were left.
 MT. w. B. Williams of Jersey City, in 8 paper on savings banks, said of assessments :: "In orde4 to avoid, as far as possible, all temptation to do moro than one's duty, as trustee, or to manifest special financial skill, or to make tho earning of interest paramount to absolute safety, would adopt certain rules. Large deposits, which do not come from savings, but which are the capital of persons who have acquired wealth, should be rejected They can invest their own funds, and they are likely to withdraw their depos- it's suddenly and in large sums. Bonuses and discounts on buying securities should not be sought allowed. They tend to drive away the best secured loans, and to introduce a speculative gain rather than the ultimate se- curity Good mortgages on improved real estate to about half it's value should be en- couraged and granted up to the highest legal limit without fear. If necessary, the rate of interest on these should be re- duced, so as to secure the very best of that
 
 in case of 8 run on the bank2 It would for several reasons: First-The remaining twenty or thirty per cent. of convertible curities would be available. Next-Such mortgages, though not promptly available at par, are always excellent securities to borrow on temporarily to meet such emergencies. Next-The mortgage investments being to 8 large extent loans among the same comm mi l ty which affords the depositors, there is ! powerful influence at work to sustain the confidence in the assets of the bank.
 'But as further means of safety to all. ! the bank should never hesitate, in case of panic, to enforce it's thirty, sixty or ninety day rule as the case may be- or to close it's doors. It is nothing but the common agent 1 or trustee of the depositors, who as above shown, have common interest in it's funds and investments. It has no financial repu- ! tation to keep up as 8 source of profit to it. self or to attract deposits. It's whole duty is summed up in the word safety A trustee has neither moral nor legal right to sacrifice a part of the common assets in order to give an advantage to those of the l common proprietors who first to of trusts would restrain him by injunction from thus violating his prime duty of taking care of the common property for the com mon benefit This action was taken in a 1 carefully considered case in New Jersey, where an institution with $12, 2,OOO, ,OOO of l assets was in question. Some special char | ters of savings banks expressly provide for l such action. think the power and duty of
 the courts plainly arises out of the nature of 1 the trust. But to avoid all question it should
 be provided for by proper legislation wher-
 ever tbif ordinary class of savings banks ex- l ists.
 "Next, as to other investments. It should
 avoid on principle expensive buildings. IF
 many cases the whole apparent surplus will be found to be absorbed in an unproductive banking house. Government bonds are
 naturally the first of convertible in vestments, and generally the bonds of the State in which the bank is situ
 ated They may be guarded against the ordi
 nary chances of fire and theft by we'll know1 precautions, such as registry, stamping, etc. but the low rate of interest which they mus l henceforth produce renders it very desrab'' ! to see if the field can be extended withou
 losing sight of our cardinal rule. think il
 must be conceded that personal security O
 two or more names is not admissible, not 1 withstanding the custom of many New Eng
 land savings banks to accept such security ! Not only is this usage entirely opposed to tn
 general law of trusts established by tn
 experience of two centuries, but it leads t. ] complications and temptations outside of tn