The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-02-18
THE BANKING BILL.
Probable That Some Measure Will
Become q Law.
THE SITUATION IN THE SENATE.
Tho Lack of Time In tho House the
Great Stumbling Block...Changcs
Must Be Mado In the Scnntc.--Rcp.
rcsentative Taylor Points Out some
weak Placcs.-.The Purpose of the
Bill Explained.

WASHINGTON, D. O., Feb. l7.-Thc
passage by tho house on Saturday OF the
bill ito promote the safety Of national
banks" makes it,highly probable that
some measure OF tho sort will become a
law at the present session Of Congress.
Tho lack OF time in tho house is tho
great stumbling block to such legisla-
ton, and II q measure which commands
general support gets through the lower
branch there Is usually no difficulty in
getting it considered in tho senate 1t
Is by no means. certain, however, that
tho bill will pass the senate rs it goes
from the house. Some opposition de-
ycloped thorc, in spite OF the large vote
by which the bill was passed. II was
not treated rs q party measure in any
sense, being advocated by Mr.. Bacon,
the Democratic chairman, and Mr..
Walker, ono Of tho strongest Republi-
can members OF tho committee on bank
ing. Tho essential objection urged
was that OF Mr.. J. D. Taylor,
OF Ohio, that tho bill would in
terfere with the practical business
OF bank BY requiring meetings Of the
boards OF directors whenever applica-
ton was mado for loans by certain pcr-
persons, whereas the power to act
promptly ought to DO lodged in two or
three officers. The answer to this is
that this formal approval OF loans is
only required where tho officers OF q
bank arc applicants for loans, and that
the loans to outsiders according to the
existing methods arc not intertered
with, The bill upon which the COM
mitIee report was passed, introduced by
Mr.. Hartor OF Ohio, himself q practical
banker, prohibited loans to active Off
GERS of bank under any guarantees,
and the bill now before tho house has
the approval Of several experienced
bankers who are members OF the house
committee. The report OF tho house
committee explains tho purpose and
effect OF the bill as follows:
In the opinion Of your committee.
the recompliance with the settled policy
OF legislation with regard to the nation
al banks, it was unnecessary to make n
prohibition, against the loaning OF the
funds OF the bank go broad. Your com.
mittee was led to that conclusion in
view of the fact that large portion OF
the United States, and particularly in
that portion OF it in which 1t is most
desirable that the national banking
system should be extended, the presi-
dent OF the bank is, generally, not eX-
clusively, occupied by the discharge OF
his duties us such president. The actual
executive officer OF banks in these Sec
tions is ordinarily the cashier. The
president and directors are generally
selected from among men actively en-
ploycd in other business.
"In the opinion OF your committee,
the result sought to be reached, to wit,
the preventing OF the Misrepresentation
OF tho funds OF the bank by the officers
actually engaged in the duty of hand
ling them, can be accomplished by
making it unlawful for them to borrow
any money from the bank except after
the making OF the loan has been re-
quested of and approved by the board
OF directors OF the bank, or by the
executive committee Of such board,
and by requiring that the comptroller
from time to time OF the extent OF such
liabilities and OF the persona owhom
such loads are made.
at is believed that the mischieis to
be prevented have arisen mainly, ii not
entirely, in cases where the loans
made to the directors, officers and ON
ployes OF tho bank have been systemati.
,cally concealed from the board OF direc-
tors and that there exists no case in
which the majority OF the board OF di-
rectors have Intentionally permitted
any loans to or use of tho moneys OF tho
bank BY its directors or officers in
amounts sufficient to render tho bank
insolvent."
The bill may be taken up by the SON.
ate committee on finance at its regular
meeting, but will undoubtedly be closely
scrntlnized before it is reported, for the
members OF the committee arc Jealous
OF financial measures which do not orig
mate in their own ranks, and usually
put them in q new form. The senate
committee on finance is not disposed to
press any general banking legislation at
the present session OF Congress, because
they do not believe that it would pass
both houses. They will undoubtedly
consider the house measure, however, II
it comes to them, and they may frame 4
measure OF their own, based upon the
recommendations OF Comptroller Lacey,
ii action in the house is delayed.
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Death of nm Autlorcss.
Special Dispatch 10 The IatelIiJenccr