St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-08-15
THE BANKERS.
Closing Proceedings Of the Ma
tional Association at Saratoga.


Numerous Papers Read and the An
nual Banquet Disposed OF.
State Banking Law in Wisconsin.-The Pre-
vention of Panics.
A Cashiers Plan for Guarding Against
Raised Checks.
SARATOGA, N. Y, Aug. 14.-At the bankers
convention this forenoon the report of the nomi
mating comm ittee was read and adopted. The
officers eleeled are the same as last year with the
exception of E. Francis Riggs in place Of Johr
A. Cresswell, for the District of Columbia, ant
Joseph H. Oglesby, president of the Louisiana
bank, New Orleans, for Louisiana, in place of J.
d. Rainleton, Saratoga, cashier of Citizens Ma
tonal bank OF New Orleans; Abraham A Bige
low, president of the Massachusetts Nationa
bank, Boston, in place of Chas. F. Smith. of the
Continental bank, Boston, Isaac Danforth, Dr.
| president Of the First National bank Richmond
in place Of John P. Branch. president of the
chairman Of the executive council, and James II
Bowie, president of the Boston National bank
and j. n. Millard, president of the Omaha Ma
tional bank, in place of Chester Gould, of the
Boston Manufactures bank, and j. H. Vetler
president of the Union National bank of Mime
apolis, respectively Of the same council
THE POTTER BILL.
Judge Poland. of Vermont, made reference te
Il
spoke Of the sound sense it contained, and con
cluded by calling on Mr.. Potter, of New York
the organization of the banking system of coun
try, and whose views are embodied in the above
bill, to make some remarks.
Mr.. Potter took the platform amid loud ap
plause. He made a brief reference to the pres
ent banking system as one to which he gave hi:
early attention. He did not want the system
used to perpertrate national debt line to be
useful as long as the debt remains. He hoped
the bill will be favorably considered in congress
II passed its effect will be to place our banking
interests upon as high plane as any nation in the
world.
PAPERS AND ADDRESSES.
Address Of A. Oberndorf, of Kansas. Pa
pers-Benjamin C. Wright. of San Francisco
Banking and Business of California; Charles
Jenkins, New York) on "Collector Of County
''Raised Drafts;'' General Elmer, of New York
on corporate Sureties;'' H. W. c. Yates Of
Nebraska, and John Thompson, of New York
on prevention Of Panics;" II. H Camp, oi
Missouri, on Banking in Wisconsin, and B
Hinchlan, of Michigan, Banking in the State of
Michigan"
ADDRESS OF MR.. GEARY.
Having been compelled, like too many othel
bank officers, to give to the subject of ''raised
bank drafts considerable thought recently, fine
that have about reached the conclusion thai
there is no such thing as absolute safety under
the present system, and that we must assume
great risks in such matters, handle drafts only
when presented by parties entirely responsible
and able to refund in case of loss. This method
or plan, to me appears impracticable, because
| frequently persons well and favorably known
may endorse, or present for payment, drafts OF
this character which they may have become pos
| sessed of honestly, yet should the draft prove
| fraudulent would be unable to reimburse the
bank which advanced the funds; and such
draft may pass through numerous hands, and
with perhaps dozen or more endorsers, before
| final payment by the drawee; and no person car
| say where the loss will fall, as many Of the en-
dorsers may be irresponsible.
Under these circumstances it strikes me that
secret cipher code might be adopted by al
| banks and bankers respectively, to be printed
|
citation containing also the signatures (copes) ot
officers authorized to sign drafts and C. 'ds OF
| behalf OF any such bank. The cipher indicating
the number Of hundreds or thousands of dollars
| for which draft Is drawn, to be entered upor
the face or back of every such draft. This boob
| or phamplet to be sent to all banks on payment
of a stipulated sum, to cover cost of publication
and to be kept in the exclusive and careful
custody Of the managing officer, for reference ir
all cases OF doubt, or when drafts are presented
| by strangers. Such system would give the
| earliest possible information Of any change
| from original amounts and obviate the necessit,
OF telegraphing to ascertain the true amounts
All changes Of signatures of signing officers tt
] be reported monthly and distributed. I should
be glad to have you present this scheme to some
| bank officer OF New York of long experience fo
| his views, for to me the plan looks feasible ant
| of great utility. The cipher could be changed
annually il deemed advisable.
| ADDRESS OF MR. THOMPSON.
| Three years ago, at our national convention,
said: ''We are positively going to fast, and it il
| the part OF wisdom, and conceive it to be bu
our duty to put on the brakes that the wreck
| when it does come, may be less DISASTROUS Th,
anticipated ten-year panic has come and is pass
| irg away. hope and trust that it is about over
and that we shall see the rainbow of prosperity
speedily. At any rate, the revulsion has suffi
| ciently eliminated to teach US many goo(
lessons. Among other things, we may learn
| First-That one extreme is followed by an op
posite extreme, The ''boom' of 1878, 1879 ant
| 1880, was but the forerunner Of the recent dis
astrous and deplorable reaction.
Secondly-Great prosperity Is demoralizng
| 1t stimulates the almost universal desire to ge
rich in haste; commercial and financial gambling
grows rank, opening a broad road, double
track, down grade to bankruptcy, defalcation
| domestic misery and suicide.
1 ,frII nof&z lo.1
ssboom,' as exemplifed by the unfortunate posi-
ton of Il number Of prominent bank officials il
| New York city, well as hundred or more
| brokers. and another hundred merchants Th,
! prevailing idea is that men lose their heads in .
panic; the panic only develops the fact that they
lose their heads in '.boom.''
Fourthly-Bank officers should manage thei
bank and live on their salaries. Depositors ant
stockholders forfeit all sympathy IL they tolerat.
a speculating official to stay one honr in charge
of their assets. Turn the speculator out or ge
out yourself. Figure head directors should also
go, or be held individually liable.
Fifthly-Congress has failed to act on {
measure which / advocated at our last con
vention, and which / now beg to reiterate, q.
follows:
WHEREAS, The advantage and the necessity oil
providing for an increased or extra issue of cur
rency, which will meet and break the force OF
financial revulsions, and protect business inter
ests, has been practically and successfully dem.
onstrated in England; and
WHEREAS, Existing laws in this country are
entirely wanting in any provisions of this char
acter; therefore, be it
Res0lyed, That this convention recognizes the
necessity of legislative action to provide for the
protection of the vast and continually increasing
monetary interests of this country in timee Of
financial revulslon, such as recur periodically.
ResoIUed, That congress should enact law in
vesting the secretery Of the treasury with full
power to receive any United States bonds not ex-
ceeding in amount sfo0, 100000, and to issue
therefor currency notes equal in amount to the
par value Of the bonds deposited, and accrued in
terest on the same. Interest on the bonds while
on deposit to accrue to the treasury Depositors
to be allowed to redeem bonds at any time with