The record-union., 1894-02-24
BANKERS CONVENTION.
TOPICS DISCUSSED AT YESTER
Days MEETING.
Relations That Should Exist Between
City and Country Banzs-Un-
secured Loans.
Special to the REcoRD-L MON.

Special to the RECoRD-J MON.
SAN Francisco, Feb. 23.-The secon
days session of the Bankers Convention
opened few minutes after 10 o'clock this
morning, Mr.. Hellman occupying the
chair.
Mr.. Stewart read the report of the
Executive Council on Mr.. Shef1ield's
recommendation relative to city clear
ances Of country checks. The report re-
viewed what it termed the senseless COM
petition that has long prevailed among
banks, and declared that it had become
intensified rather than diminished. The
policy of clearing or handling Of country
checks at par is discouraged by the report,
and the practice of kiting condemned.
The remarks Of the report under this
head were applauded. The report recon-
mended that the Clearing house rules
should be amended so as TO correct the
evils complained of, but that the rules
adopted in this regard should in no case
be compulsory. ThS report of the COM
miltee was adopted wT@nout dissent.
The report of the Committee on Higher
Education of Business Men, by c. G. Bash
of Redding. who was not present, was
read by the Secretary.
The report made some lively references
to the business panic of the past year,
considered as an educator. 1t embodied
| letters from number of well-known
financiers relative to the subject of the
committees inquiry. Among others was
a letter from President Jordan of STAN
ford, speaking approximately of the need
of special financial education for business
men.
The report was adopted and ordered on
file.
Benjamin C. Wright read a paper on
the Bank Lessons of 1885," which was
received with applause.
c. w. Bush OF Woodland read a paper
on the relations that should exist between
city and country banks. The paper
favored the abolition of overdrafts by the
country banks as we'll as by those in the
city 1t suggested that some form of as
sociation could be devised to bring about
closer relations between city banks and
country banks, to the end that more CO.
operation for mutual benefit might be
secured.
Frank Miller of Sacramento read
paper on "Unsecured Loans-Time YER
sus Demand" 1t was pointed out that
the proportion OF time loans to demand
| loans is about II to | in the East, while in
California it is but 6 to |. Time loans are
the best of assets; they are the cream of
the banking business. 1t is probable that
OF lower rates of interest, and this must
result in a general abolition of overdrafts,
and restriction and cessation of demand
| loans without collateral. The competition
of private money lenders tends to reduce
| banking rates of interest. In the East
banks lend only to people who assist in
increasing the amount of deposits. Each
| borrowing customer is expected to main
tain an average credit balance of 10 per
cent.
| The paper advocated the ediscontinuance
of Improbable forms of loans.
| In conclusion Mr. Miller read a resolu-
| ton favoring the making of all loans as
| time, with the exception Of those which
are secured and of those which are made
TO borrowers who reside outside the State;
also approving the writing of time loans
without interest and deducting discount.
| The resolution was referred.
J. b. Lankershim of Los Angeles read
a paper on Savings Banks and Their
| Dividends to DepOsitors." 1t advocates
| lower rates of interest to depositors as the
best means of securing increased stability
| to savings banks and the more general
use of capital in promoting the industries
| OF the State.
At noon the convention adjourned un-
| til 2 P. NJ.
On reassembling J. M. Elliott, Presi-
dent of the First National Bank of Los
| Angeles, read paper IN which he Sug-
gested certain changes in the State bank
! ing laws. He favored the calling for re-
ports by the State Controller five times a
year at dates already past. He also
thought that the law should require 10
per cent. of cash to be kept on hand by
| the commercial banks and smaller pro-
portion in the savings banks. Other
amendments to the laws were also sug-
gested.
Mr. HippeIl, Assistant Cashier Of the
| Union National Bank of Chicago, by in
vitation, addressed the convention on
Banking Customs in the East" "Over-
drafts he said, ''are not permitted to
country banks, but loans are made on
notes" Mr.. Hippell further outlined the
methods OF banking in the East and ex-
pressed much pleasure in meeting the
/ assembled bankers.
Printed papers were submitted to the
convention as follows: By Z. S. Sheffield
of Santa Barbara, "a Plea for Railroad
Currency System' by Henry Brunner
of San Luis Obispo, How to Preserve
the National Banking SYSTEM" and by
John NJ C. Marble of Los Angeles, "a
| Talk on the Financial Situation"
FiOht Seaman Drowned