The morning call., 1894-02-23

also that hereafter the presid mt and the first
Vlee-iresident OF the association shall be made
e&,oflcio members of the executive council.
:, 10 close the regular business OF the day
follows:
Audit;ng-WnIiam Gerber. j. NJ. Elliott and
y, +. McHenry OF Modesto.
observation-disclosures Miller, III. w. Wright, II.
Ii. hewsett, Z. ). Brooks. a. IL. Schmidt.
NominatiODs-E. Il. Hamilton, G. w. Bush,
Mr. Bowles of Oakland, Mr. Burris of Santa
Kos and L. 7. Lukens OF Pasadena.
Onceria ain whether or not 1t were out OF or
ger, out realizing that tue sessions OF the NOR
row wonle be very crowded Mr.. Gerber OF
sacramento arose before adjournment 10 ask
mat Til association should instruct PresIden
hellman 10 request the clearinghouse TO give
me interior bankers a special hear ing in regard
10 The recent regulation concerning overdF ats.
Mr. Gerber said lie had submitted 10 Ihe inter
Tor banks circular which had received their
approval. and which read in part as follows:
he practice now in vogue or char ing interest
III tuli upon a note deposited merely for the pur-
pose OF obviating possible temporary overdraft
w thout at any time considering the credit bal
ance that may be carried, is maniestly unjust and
utterly destroys all benefit that the interior banks
have heretofore enjoyed from their circulation
The watchiulness and attention necessary TO keep
sueh unjust interest charges within bounds be-
comes very burdensome. La view OF the fact that
cur Eastern correspondents allow Interest GU
credit balances. which is not permitted by the San
Francisco banks under the resolution above re-
ferred to. II seems to me that the members of the
san Francisco Clearing house Association could
with propriety be requested TO accept from their
cent of their paid up capital and surplus. with tn
understanding that Interest thereon should be re
dated TO the extent OF tue credit balance carried
by such correspondent Any loans In excess OF
such amount could take the usual course.
The president was quite uncertain for awhile
whether or not 10 entertain he request, hold
ing that he question nvOv principles so al
variance wi h The avOwed rules OF the Clearing
house that II would be waste of time to get It's
members together TO consider IL. Mr.. Orr Der.
however. thought the president misunderstood
the tenor OF his reau st. and so explained,
which caused The convention to lass his mo-
lion.
From Los Angeles. Mr.. J. B. Lankershim had
an out-Oi.Order presentation 10 ma e. 1t cou-
sisted OF recommendation 10 consider alton
by the convention Of tn scheme OF The organ
iZatlon known as the Los Angeles Savings
Bank Association. This association was formed
during the times of the panic by all the savings
banks OF Los Angeles for mutual protecI ion.
Through its mediation the uniform time notice
on deposit Withdrawals was promulgated which
enabled I'D local banks to endur In financial
Storm without having 10 SUSPEND In any case
and without suffering any serious losses. MIR.
LankeI SHIN hoped for the approval OF the plan
IN the convention.
Al Mr. Whites suggestion a paper entitled
"A Piea Tor National Currency System"
which was long aud largely theoretical, Il was
resolved 10 omit from the programme of subse-
quent days Tor the fear that III re would not b.
time TO have II read and consider ed during any
one session. The executive council, however,
had prepar copies OF IT, for distribution,
winch u was hoped the delegates would read
over Tor themselves and come prepared 10 dis
cuss II whenever lime could be set apart for
III, Inc paper IN question Is writ en- by +. 8.
Shehirld OF Santa Barbara. The substance of
the suggestions which IL makes IN as follows:
lt is desirable that whatever system is adopted
IL should be All outgrowth of present bankI G
methods. adapted TO the national and state banks
already existing: that the circulation provided
elastic; that IL be CAPABLE of expansion to keep
pace with the growth of the country la resources;
that II b. not made dependent the existence of
symptom OF poverty-the Government debtor
It's continuance: aud that, above an it be not
q fro
quent change through the misconceptions OF legis-
lators little skilled in finance: at least that leg
laton, IL any is had. be oermtssive not construct
i've. Such system is here roughly outlined:
An association OF banks not limited AZ to number.
circulating notes to be issu Il by IL under the
Joint guarantee OF all its members.
The notes TO he redeemable on demand. In gold,
at the principal money centers.
redemption fund. to consist OF gold deposits
INTO the treasury OF the association by its mem
bers, induced by payment of interest made at
pleasure and repayaOle on demand
A Ito OF reserve to liability at which 1t is de-
determined, then to maintain 1t at that ratio vary
from time TO time the of interest to be paid
Tor deposits. Should the fund Tall below the ratio
advance the rate; should 1t rise above lower the
rate.
he notes to be put into circulation only by re-
payment OF the redemption funds deposits ar
preferred to gOld) and loa of the association TO
IT'S members op pledge of securities approved by
It's managing committee. as are now Clearing
house certificates. The rate of interest charged
Tor loans be the same as that paid for deposits
ana vary with It
The convention adjourned early to permit the
delegates to visit the MidwIDter Fair. The
session to-day VIII open at 10 A. NJ. In the
rooms OF the Chamber OF Commrrc Merchants
Exchange building, on California street.
ne representatives, of the interior banks viii
hold meeting at O'Clock this morning In the
parlors OF the Grand HOlel.
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