Los Angeles herald., 1891-03-13
DEALERS IN MONEY.
THE WORK DONE BY THE BANKERS
YESTERDAY.
committees Appointed and Their Reports.
The Plan of the Permanent Organiza-
tion-Papers Read-Today's Proceed
ingS.


tion-Papers Read-Today's Proceed
ings.
The Bankers convention was called to
order yesterday morning promptly at 10
O'Clock by President e. F. Spence, OF
the Los Angeles clearing house. The
first business OF the meeting was the ap-
pointment of committees.
Mr.. Seligman, of San Francisco,
moved the appointment of committee
on credentials. The chair appointed
Messrs. Seligman, Bosbyshell, of Los
Angeles, Woclwein of San Diego, Phil
lips Of Fresno, and Rideout of Sacra-
mento.
Mr.. Childress moved the appointment
OF committee on permanent organiza-
ton. The chair appointed Messrs.
Childress of Los Angeles, Klein of San
Francisco, Cone OF Red Bluff. Jess OF
Pomona, and Hawkins of Hollister.
E. F. Spence was on motion of Mr..
Phillips, elected chairman pro tenn, and
George H. Stewart, secretary pro tenn.
Mr.. Palmer, of Oakland, moved the
appointment of committee on consti-
tuition and bylaws. The chair ap-
pointed Messrs. Palmer, r. M. Widney,
OF Los Angeles, John A. Maley, Santa
Barbara, George H. Bonebrake, of Los
Angeles, and Lowell White, of San Fran
cisco.
Mr.. Spence offered as an excuse for
naming two Los Angeles men on the
committee, that the gentlemen in
question had thought great deal on
the matter, and were prepared for the
work OF compiling constitution.
While the committees were out it was
suggested that some of the prepared
papers be read. Accordingly Secretary
Stewart read Frank Miller's paper on
Notes versus Accounts. The paper sums
up the per capita wealth as follows
Money, 500; annual products, 5000; an
nual transfers, 1000. In ordinary times
$40 cash is enough, but as when pa
tient has fever and calls for water, in
times of panic the call is for more
money. and money in such cases is the
proper remedy. The remedy is the in
crease of the facilities of the banks in
moving exchanges. In England, 98 per
cent. of the exchanging is done by check
and but 2 per cent. by coin. There bills
of exchange and promissory notes
promptly close out ledger accounts, and,
being negotiable, the fabric of credit is
adjusted among those able and willing
to carry such burden, leaving to the
producer his own task of dealing with
men and material, and not with ac-
counts. In short, we bankers must ex-
tend the note system and make our
selves the bookkeepers, cash keepers
and collectors of the community
The following legislation is recon-
mended as the remedy for some of the
things which should be improved and as
good for both debtors and creditors:
''Let the code be so amended that in
terest shall not be collectable on debts
save when security is given, and then
only to the limit Of the security in hand
but permit discounting.
~ ''The result of such legislation would
be the closing of long and indefinite ac-
counts by the writing of non-interest.
bearing notes due on definite dates. In
terest for the delay would, by agreement
be made a part of the principal, and
the note thus written would sell from
hand to hand at current rates of dis
COUNT
Mr.. Seligman said that the paper was
comprised ofwell-founded banking prin-
ciples which are accepted by the bank
ing community.
Mr.. Spence thought that the tramp
colony would be glad to get their share
of,the $40 per capita.
The committees being still out, an ad-
journment was had to o'clock.
AFTERNOON SESSION.
The credential committee reported on
the reconvening Of the convention, ask
ing for further time, and were given
until noon today.
The report of the committee on or
ganiZation was read, and as it was said
to conflict somewhat with the report of
the committee on constitution and by
laws, the report of the latter committee
was also read and the two reports con-
sidered item by item. After many
amendments and much discussion, the
following was, in effect, the plan of the
permanent organization
First: The name of the association is
the California Bankers association.
Second: The object to protect the
interests of its members and forward
such legislation. etc., as shall conduce
to the best interests of the state and
people.
Third: The officers to consist of a
president, first vice president, and a
vice president for each county repre-
sented in the association, and an execu-
tive council of nine, three members of
which council to be elected annually.
Fourth !: All state and national
banks, private banks and individuals or
firms doing banking business are eligi-
BILE to membership. Members can be
expelled, for cause, by two-thirds vote
OF the members present at any annual
convention. Delegates to vote in per-
son, no proxy votes to be allowed.
Fifth: County vice presidents will
have charge of matters in their own
counties.
Sixth: A majority Of the executive
council shall constitute quorum. They
shall have power to employ or discharge
secretaries, treasurers or any other en-
ployees of the association, or fill vacan-
cies in their own body. They shall keep
record of their own and the associa-
tion's proceedings, and report annually
to the association. The secretary shall
keep record of the crimes attempted
or accomplished against members, and
notify members of the same. The
treasurer performs the usual duties con-
nected with that office.
Seventh: There shall be a perpetual
coa of oI -