Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1889-03-06


banks The point made that the petitioning
banks had to reduce their discount lines
in July and August on account Of the
| large amounts drawn out TO pay taxes,
Mr.. Salisbury refuted, by reading the
published statements Of the banks pre-
vious to July 1886, and after, show
ing larger discounts after
than before A similar comparison
was made of 1887 Then the attorney
showed that in 1888 the total amount Of
discounts in October were much more
than in June. BY the Clearing House
statements he showed that in the months
mentioned the Union Bank drew from
I the others only 1858 900.
The Union Bank could make loans to
the city without violating the National
Currency act. A ruling from the comp.
troller of the currency permitted certif
Gates Of deposit, representing the loans.
to stand
In closing Mr.. Salisbury said that II
was bad precedent to legislate to take
the power the Council now had, TO put
their money where they chose. out of
their hands.
Mr.. Lore in opening the closing speech
for the banks corrected Mr.. Salisbury in
the Union Bank, saying that the amount
stated by him must be reduced by the
deposits, which were q liability All
other cities considered a distribution Of
the funds the better business principle
The Union Bank was conducted on bust.
ness principles and it was foolshness to
say that loans had been made at loss
In speaking of the statements of deposits
a Mr. 81. HaI
taken dull period of the
year, Mr. Lore showed the fallacy of this.
The $500, 0t0 paid in taxes remained in
the Union Bank for upwards Of six
months The Union Bank has made off
Of the city Of Wilmington, net Of every
cent ii ever helped the city, $54 600. Whv
should the Union Bank have monopoly
Of the funds Of the city? All the citizens
should have the benefit of the money
they pay in to the city.
MIR. Lore said, although the Union
Bank was perfectly safe the city of New
ark, N. j., became bankrupt by putting
all its funds in a single bank, In
which it had implicit confidence,
and it, the Mechanics Bank
went unexpectedly under Elizabeth
and New Brunswick. N. J. became bank
the city build up one institution. at the
expense of the others. It cripples
bank TO have money taken from. II and
put In another for six months. The
bank that has it gets discount on It. and
the other loses It. If the bank that has
IL has so much that it cannot discount it,
1t does no one any good. Mr.. Lore ap.
pealed for the present, and business
principles and not the dead past, and
in closing said he could not see any
ground why all the banks of the city
should have the benefit Of the city funds
Mr. Salisbury now rose and showed by
figures that the deposits Of the banks in
October for the past four years, except
ing 1887, had been larger than in May.
In 1887 they were smaller.
Mr.. Lore insisted that the deposits of
July, when the money was drawn out,
should be shown
Mr. Sharkey then asked his sterro
typed question what bank is Mr.. Lore a
director in2'
Il am not director in any. | have
kept my small deposit in the Whining.
ton and Brandywine Bank for thirty
years, replied Mr.. Lore
Mr.. Quinn as requested by one Of the
counsel for the several banks, then Of
fered the following resolution:
Resolved, That the Finance Commit
tee be and is hereby authorized and
instructed to meet and con
fer with representatives Of the
several banks in this city on Wed
nesday, March 8, at such hour and place
as shall be agreed upon, for the purpose
Of suggesting such legislation as viii |
effect an equitable distribution of the city |
deposits among said banks.
Mr.. Chambers objected no conference |
had been asked for and the resolution in
Structed.
Mr.. Sharkey wanted to lay the reso-
luton on the table
The motion to adopt was lost by yea
md nay vote of 20 to 9.
Mr.. Quinn then moved that further
Consideration be postponed until next
Thursday night, when the Finance Com
nittee would report ON the petition.
after wrangle between Messrs Roberts
nd Quinn as to whether the question
vas in order the chair decided it was and
he motion passed.
Council then adjourned