St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-19


| which is owned by men of moderate
| means, by merchants. farmers and me-
| chanicS. They forget that the deposits
! placed in the custody of the bankers of
| HE country are OF rtie many and not the
| few. who entruSt in them their Cart
! ing Il" expect OF t.ir.u i watchfnlness
that 10 financial disaster. through jPg-
| ISlatIOn or otF"rW!I.'. shall enSue. And
because OF this they would ne derciirt
| In the discharge of Il duty which
| they owe to clirntage larger in num-
Der, more widely scattered. embracing
more classes and conditions of people
and possessed of greater aggrega1e
wealth than any special interest within
our borders, if they did not at such
time as this. with all the power at their
command. insist that the rights of those
whose interests have been placed with
them were protected from the wasting
Influence of harmful laws. Therefore,
when these dangers to the public good
are upon us, let 40 banker hesltateGto
discharge his trust because of the utter
ance of some demagOgue striving 10 win
votes in coming elections, but having an
abiding faith in the fairness of the
American people, let him give utter
ance to his views through speech. petit
tons or the columns OF the press
upon every financial proposition that is
under consideration, discussing it not
from the standpoint of the shop, IL l
may be permitted to use such phrase,
but upon the broader grounds of public
good and sound economic principles,
and he may rest assured the time will
speedily come when the interest of the
bank will be treated by our public men
as diSDaSsionately as that of any other
business institution.
Rut what 4ball lp lparnnd from q Ill
this season of disaster? 1t was but yes
Jerday that distinguished citizen of
the republic gave utterauce TO the state
ment that the disasters through which
our people have just passed, costly as
they have been, would not have been
too dearly purchased if from them there
should be gathered sufficient wisdom TO
avoid in the future the errors which
brought them upon US.
THE BANKERS
of the country ought to gather some
lessons from it all. | am sure some
were not as strong to withstand the
drafts made upon them as they would
have been had they kept IN mind in
times of great prosperity the necessity
OF SO banking as to be prepared for
times of financial stringency. COmpe
| tition for business is carried to the
danger point by many, and the desire to
| secure large business mas led to the
taking of RISKS not consistent with pru-
dent methods. Not less source of
weakness has been the fact that to too
large an extent has been carried the
paper OF those engaged in purely spec
ulatiVe enterprises, the value of which
is at the best largely fictitious,
and in times of great depression
| Is worthless, and when TO this is coupled
| the fact that there is too little tendency
| on the part of banks to distribute their
| loans. and too great desire to place them
| with large corporations, the reason is
not wanting for many suspensions and
| not few failures. Ii is a source of
| constant complaint on the part of the
national banks that it is unr eaSonable
| to hamper them by limiting their loans
| TO 10 per cent of the amount of their
capital stock, but the events of the past
months have demonstrated the wisdom
| of that provision. and make more
strong the belief that more strict ad
| herence to 1t would make the banks
stronger instead of weaker when
threatened by financial panic. No sec
ton of law is so frequently violated, and
in none is there SO great safety for care
full banking.
In conclusion, Mr.. President, let me
say that the greatest safeguard to the
banking interests must always rest in
the wisdom, the high character, the alb
solute integrity of those who manage
and conduct these institutions, whether
they be national, state or private. The
officers OF the law must look to them for
constant aid, and if mindful of the law
and regardful of their duty toward those
who have placed faith IN their probity
there need have little fear of dangerous
banking or dishonest dealings.
"a Practical Plan of Banking and
Currency" was subject treated in
very able manner by George 4. 3 utter.
of New Haven, Conn. MIR. Butler read
long paper. which was apparently in
teresting to those present.
Allen Ripley Foote made "a Plea for.
Sound Currency and Banking Sys-
tenn"
There is nothing in the nature of
things" he said, Ito prevent the people
of this country from deysing, carrying
into operation and enjoying to the ut
most the most stable, the SOuudesE and
most automatically adjustable currency
and banking system III the world;
system by means Of which we can gain
and can maintain our financial indie
pendence. Such work cannot be sue
cessfully undertaken by politicians who
retain power by begulling the people
into the belief that their party has al
ways been sound on questions of
finance. no matter what the party
platforms may say. or what inan-
clal measures may have been
enacted by party votes. Work
of this character is particularly fitted
for the American Bankers association.
A special committee appointed by this
association for such purpose will un-
doubtedly receive the recognition and
active cooperation of all industrial.
commercial and financial organizations
III the several states, on the request OF
the association, asking the election by
them OF one or more persons to repre-
sent the industrial, commercial and
financial interests of the state as men,
bers Of national monetary commits
sion. and to name others to be conferred
with as its advisors"
Sidney Sherwood, Phi. D., of Johns
Hopkins university, read a paper on
The Bankers Associations; Its Origin
and Its Prospects"
George a. Butler, president of the
National Tradesman bank, of New
Haven, Conn.,, read a paper on "a
Practical Plan of Banking and Cur
rency."
The venerable George S. Coe, presi-
dent of the American Exchange bank,
| of New York, was introduced as one of
the fathers of the association. He read
a set Of resolutions for the creation OF
special committees, composed Of one
| member from each state and one from
the District of Columbia, to effect the
! organization of a national monetary
commission to represent the diverse
| interests of the whole people, whose aim
will be the adoption of a sound currency
and banking system.
Pending the a1OnrIOn Of nlar nm
| gress is asked to hold in allegiance all
| projects for the amendment of existing
currency laws except the repeal of the
purchase clause of the Sherman law.
The resolutions were referred to the
executive cOuncii