St. Paul daily globe., 1891-03-27
THE FIRST VETO.

impression has been that this was pos
sibie under the law as it now stands;
but to remove all doubt on a matter of
so great Importance an amendment was
proposed early in the session at the IN
stance of one or two of the companies
already organized, by which this priv
liege was expressly extended to them.
The bill went through the senate with
little opposition. and finally through
the houSe-where, however. Mr.SEARLE,
the Republican leader, called attention
to the objections to it. 1t probably was
not known at the time that Mr.. MER-
RAM was not in sympathy with the
idea. but for the last day or two veto
has been expected on the grounds
which are set out in the message pub
lished in the GLOBES columns this
morning.
The GLOBE has expressed no opinion
on the merits OF the bill TO this point,
because the discussion of 1t has taken
the form of a personal quarrel among
Republican factions, in which the pub
lie had no concern or interest. 1t would
nave been difficult to have taken either
side without appearing as a champion,
either of those who have been question
ing the honesty of the executives mo-
tiyeS or of those who have seen in the
measure nothing but an assault on the
business interests which Mr. MERRIAM
represents. Now that the governor has
refused to approve the bill, the GLOBE
cOmmendS his course, both for the rea-
sons on which it is based and because
he has had the courage to take the posi-
ton he has in the face of the angry
| and hostile criticism 10 which it will eX-
pose him.
Mr.. MERRIAM understands the bank
ing business: If anybody does, and he
! believes that it would be unfair and un-
just to existing institutions and unsafe
for the public interest if trust compa-
nies were authorized to engage in the
general diScounting of commercial pa
per-. The only serious argument adj
vanced in favor of the other view is that
trust companies in other states do en-
! JOY this privilege, and this is as valu-
able as an evidence that their legisla-
tion is unwise as it is that the plan is
| desirable one. Mr.. MERRIAM'S view is
that for the security of the estates which
are cOnfided to the care of trust COM
panieS. their line of duties and
rights should be limited and clearly
defined, and that the loaning of money
! Oh personal security is not consistent
with that extraordinary degree of eau
ton and safety which is desirable in
| iiduciary institutions.
This seems to be intelligent reason
ing. 1t is not sufficient to look at the
matter in the light of the existing COM
panleS alone. They are managed by
men of the highest character and
| ability. They may lie thoroughly able
TO watch out without danger for the
property of widows and orphans at the
! same time that their capital is pledged
against millions of dollars of title insur-
ance policies and exposed to the risks
of a general banking business. But
would not the temptations the oppor-
tunlty would afford be too much for the
honesty and Judgment of men of smaller
caliber who might embark in similar
enterprises hereafter? Trust companies
perform important public duties, and
add great deal to the community's
convenience and sense of security.
And if an error is to be made on either
side, it would seem that excess of caution
| and conservatism is to be encouraged,
rather than any form of recklessness or
experiment.
Mr.. MERRIAM is put in a delicate po-
sitlOn by this veto because he is the
president OF bank. There is no doubt
that, could trust companies discount
commercial paper, and secure the de-
posIt business which accompanies this.
they would make formidable rivals of
| ordinary banks. The public would
have confidence in them, both because
OF their names and because of the popu-
lar impression about the character of
their charters. At the same time, with
the many sources of profit they have, 1t
would be possible for them without loss
to allow interest on money left with
them Oh call or for short periods. In
all these ways they would be popular
banking institutions in places like st.
Paul and Minneapolis The governors
critics are quite loud in their assertions
that it is because of his fear of the eff
feet such rivalry would have on his own
| business that he has withheld his sigma
| ture from this bill. The GLOBE has
no sympathy with this view. In
the first place. it always prefers to look
| for high motive for any mans con-
duct, rather than low one. In the
! second place, it has confidence in Mr..
! MERRIAM'S integrity and public hon
| esty, however much it may differ from
/ in II
! no patience with that form of partisan
! ship which assumes that every political
opponent is necessarily corrupt. And
III the third place. it does not believe
that the effect of even the most formda-
bic rivalry on Mr.. MERRIAM's private
interests would be Of so great moment
to him that he would expose himself to
| the hostile criticisms now heard on the
street unless he were actuated bv a
sense of public duty. The bank with
| which the governor is connected would
suffer as little as any from the intrusion
of trust companies into its field: and, if
| worst came to worst, Mr.. MERRIAM's S
| reputed wealth is great enough to sup
| ply him with the means of securing
control of his rivals and Of reaping the
| profits himself which were expected to
follow the enactment of the measure.
The GLOBE is glad that the governor
of Minnesota has shown himself su-
perior to the tongues of the scandal
mongers, and hopes that he will follow
his own convictions fearlessly when
other bills are presented to him which
he regards as inimical to the public
safety.
| pEcrIxE npnrIN-Cr