Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-01

Of examinations in the case of the nationiv
banks. He saw no reason why private instl-
tutions should be exempt He noticed that
the Legislature was supervising the opera
tions of manufacturing concerns, inquiring
into the ages of boys, etc.. and generally
paying much attention to the relations exist.
ing between employers and employe, and he
did not see why there should be any
distinction drawn between private banking
corcern and q manufacturing concern.
There could be no question of the desir-
ability of State banks having reserves. He
was of opinion that the panic was largely
due to the want of the very supervision now
suggested. Banks had taken paper which,
If they had been subject to supervision, they
would not have touched. The idea OF a
banking department was good one, and he
thought suitable examiner could be OBJ
tained S., 600 year.
An Exhaustive Statement of Views.
james H. Wilcox, President of the
Second National Bank, in reply to questions
said:
1 am in favor of ap enactment for the super
vision of banks, and would model any such
measure on those relating to national banks
for the sake of uniformity. The main features
OF the acts relating to national banks could be
taken, omitting the section providing for the
circulation of notes. Bank acts should be
their money at home and less of it in other
large cities. Small banks retain their reserve
iu large cities because they get interest on
the balance. would extend the supervision
TO private banks for the reason that any insti-
tuition which holds out inducements to
depositors is entitled to have its business
supervised In the interest of the community.
Small banks are often the source of much dis
aster in times of panics which, as past history
shows. occur now in the course of events and
such legislation as is proposed would avert the
danger. am of the opinion that banks should
be obliged to keep their reserves at home. and
in their own vaults. Private banks decline to
give statistics OF their positions owing
out the statement, but believe that 95 per cent
OF them would cheerfully do SO If they were all
put on the same basis. ANY proposed banking
department should be separate from any other
with the commissioner and his assistants ap-
pointed by the Governor and at such salaries as
Will induce men of competency and character
to accept the offices Five thousand dollars a
year would not be too much for the chief, and
should not give much for any examiner who
would accept the work at less than s., ,5OOa year.
Politics Not at All Favored.
Mr.. Wilcox further said that thu appoint
ments should be outside of politics, for four
years, and of men of character and standing
in the commercial world.
James NJ. Bailey, President of the Fourth
National Bank, expressed views similar to
those recorded above
banks" he said, because they are private
enterprises and should not be mterfered with
more than any other similar institution. If
people are SO foolish as to trust private institu-
tions when they have the national banks to
resort to it is their own business"
1ou would not exercise supervision over
private banks, then2'
mo. l don't see why the State should have to
take charge of all the fools in the State
Many of the private banks are long estab-
hshed and sound institutions, just as other
m IN der fold
are well reputed and others are not but 1 |
don't see why the Government should inter-
lere IN either case. 1t is altogether too po- |
tentlal, and there is much supervision of manu.
tactures to-day that is all humbuggery. Panics |
are caused by over speculation. Money be- |
comes drug in the market. and as 1t becomes |
creases. Barring Bros. weakness was known in |
banking circles before the general community |
became aware of If, and caused drawing in of |
credits.
Liability of Panics in the Fail.
Panics mostly occur in the fall of the year. |
would favor separate banking department |
if it were kept out of the political ring. The
officials should be selected by the Governor
without regard to politics for term of four
years at least, and at salaries that will attract
the proper men.
This closed the business of the commits
sion here and an adjournment was taken to
next Friday at the Continental Hotel,
Senator Robinson said to a DISPATCH re-
porter at the close that he thought the COM
mission would report in favor of chaneeG
u the banking laws in line with the evil
lence taken. The new measures might be
'eported as attached to the report, or the re-
bort might only take the form of recon-
nendation that such new measures be pre-
pared.
Several members Of the commission we're
hen escorted by Mr.. G. L. Magee and Sem
tor Neeb, in carriages, to visit the wharves
,etween Ninth street and the Point.