The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1884-08-16
THE BANKERS CONVENTION.

lllt DdHhtIs NOllN AT FNhlhloSdi
found the financial situation in no bet
ter condition than at the last meeting, |
year since. The great financial ques-
tons of year ago are not only no
nearer solution now than then, but bus
mess, and stocks, and prices are de-
pressed, while the fear and possibility o
IA panic still linger like an incubus over
the country.
1t does look as if such an organization
of practical iinanciers might accomplish
something in the way of an improve
ment in the monetary world every year,
but they appear to take it out in talking
and resolving, and exert but
little influence upon financial legisla-
ton. The great question n year
ago was the necessity for finding some
new basis for the National banking sys-
tenn in view of the rapid eXtinguishment
of the National debt, but that question
was lett unsettled at the recent session
OF Congress and is still II matter of the
first concern to the whole country.
The scarcity Of gold, the enormous
shipments some months since, their
cause and effect, the coinage of silver,
and like questions, are also now vital
subjects to be discussed by such rep
resentative body as this Bankers Assoc
citation. They ought easily to be able
to cnlighten Congress and this country
on these matters.
just at present, however, the great
question of the hour is the cause and
prevention of panics-a question with
doubly live interest attached
since the transactions of May last in the
moneyed world. The banking interest
of the United States has grown too great
and too intimately related to the other
business of the country to be in danger
constantly of confusion, losses and pan
les by the rascality of one, or the incom'
potency of some other prominent bank
J.. official. If this convention will fine
+ a cure or preventive of panics, and plac,
= the banking interest upon safer basis
q it will have accomplished grand worl
}. for the people at large.
- In the inaugural address dclivcre,
- Wednesday at Saratoga, the President o
the association got very close to tho sug
n gestions of wisdom in the premises. TIL
legal, and particularly the actual cas-
reserves are too small. In quiet time
le the banks are literally emptied, an
70 when the crash comes, as it general
IN does, like the thief in tho night, thes
ar institutions find themselves on the edp
O. of ruin, and servo but to enlarge III
O. little money, and an uncon litional shu
40 ting down of loans. In other word
ar the present policy is, in times Of peac
Ill to invite, rather than prepare for war,
he policy utterly at variance with reaso
n and sound business policy.
co The President of the association pr
o. poses to reverse this policy, to enlar
he the legal and actual cash reserves unit
Ia they shall bear good, sensible propo
p- ton TO the business Of the bank, Ike,
the vaults we'll filled and when par
comes, restore confidence and relieve {
nv strain by liberal and ia,
w. cious loans. This is unqu,
rs tionobly the policy of wisdom, If t
y" banks can he brought up to it. Abseu
'S' of concert under such policy wor
'oi only result in ruin to those banks pr
VI Using 1t. 1t must he complete rovo
w ton in the manner OF meeting Girls
III and one generally sustained by
~ Is entire banking interest OF the land
=" prove successful. II there Is wisd,
Jul sufficient in this heavy association
''o' adopt u policy similar TO this, and
NY ecutive ability sufficient to put It Il
Vi' operation, the panics of the past will
w only with great difficulty repeated
=" the future. The cooperation of doz
' big banks in any section would rendc
'ne now plan successful.
oo- These questions, together with 81
others az the Currency of the Fuu
Tho the Relation Of the Bank to the 81
are and Federal Government and ma
ON Of the practical details of bank
nm. some OF them OF large import, are
,pI. live subjects just now, and in proT
her ton ms they are wisely and practicr
inc handled from time to time by this
leir Por,ah. essoclation Oh hnanclers VIII
Ires entitle itselfto beclassed among the 1
100. full forces at work in the business /
non monetary world.
=, ------------~-@----
- Mutual Administration Taffy.