The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-02-26
BANKERS MEET IN SESSION.
Many Interesting Topics Are
Discussed.
The Abolition of 0verdrafts Fa-
vored.
Some Suggested Changes to State Lave.
Valuable and Interesting Papers
Road on Financial
Subjects.

Subjects.
San Francisco Chronicle: The atten-
ton OF the Associated Bankers was at
once arrested on the opening Of the Sec
ond days session OF their convention oil
Friday morning by report in the form
of paper. George II. Stewart, cashier
of the Bank of America of Los Angeles,
chairman Of the executive council, made
q supplementary report on E. s. Shelf
feld'srecommendation in the matter Of
City Clearances Of Country Checks. The
report was in the form OF acsrefully pre-.
pared paper, and arrived at the follow
ing conclusions after brief dissertation
on the reasoning by which the conclu-
eions had been reached:
The clearing Of country checks through
the clearing houses OF California is prac.
ticable By arrangement and under suita-
bic restrictions.
That in such case the clearing house
bylaws be 80 amended as to provide in
demnity in behalf OF the clearing house
bank accepting the country checks
through the clearing against the default
of both Gender and drawee bank.
That the listing in full of items by
each bank in the course OF their travel
seems to re useless burden, and that
all detailed registration shall be done by
sending bank, on proper form of ticket
to accompany each check, permitting
ready listing by numbers only at later
stages.
That some uniform rule be adopted
which will cause checks to travel
through regular channels where safe
guards can be provided. and the stand
ing OF the endorsers and drawee bank
known.
That any provisions adopted shall in
no case be compulsory, but shall merely
provide q uniform method available to
those banks who may desire.
Secretary r. M. Welch read long re-
port prepared by c.. O. Bush of the
Shaeta bank on Higher Education of
Business Men. The report consists of a
number of letters from bankers and
educationslsts in different parts OF the
state, making various suggestions on
the advisability OF business education
and the methods OF its incubation.
Resolved, That the executive council
confer with the president OF the Leland
Stanford Jr. university and the presi-
dent OF the University OF California, and
ascertain il in either institution there
is department such rs this association
is striving for. If not, to ascertain If
one can be added to said institutions
and on what telms. II this, 10 found
impracticable and beyond the reach of
this association, then endeavor to ar
range for course of lectures in the city
OF San Francisco, devoted exclusively to
finance and the history and theory Of
money during the winter of 18y4-95 I'M
der the auspices OF this association. the
lectures to be atterward published in
pamphlet form for distribution among
the members of the association.
A most interesting and graphic record
OF 1.-THE Bank Lessons OF 1893" was
read by Benjamin G. Wright. He pre-
faced his remarks with thanks to the
bankers for according him, who was
neither banker, the son OF q banker,
nor in any way connected with 9 bank,
the privilege OF hearing upon a topic
with which all bankers are 80 familiar.
He said:
Not one person in Thousand of the
s., 10000 people of the United States
realized at the threshold of 1858 what
was in store for the country, in bust
ness way, during the year. To the
great mass the prospects for good,
average year were just as bright as they
were IL mopths before. Here and there
thoughtful person might be found,
one accustomed to weighing cause and
effect, who shook his head rather omin-
ously "a he looked out into the future.
Even these persons, while admitting
that they did not like the trend of bust
ness affairs, never for moment realized
the extent of the portending evils. The
opening months OF the year passed with
very little apparent shrinkage in bust
ness. In fact, January, 1893, showed q
larger business, as gagged by the bank
clearingg of the country, than any pre-
vious corresponding month for several
years. February was nearly as good as
In 1892, and better than any February
in the three years previous to 1892.
March was better than February, and
better than any March in the previous
four years. April was the lightest of
the first four months, bat not much
under that month in 1892.
The first third OF the year passed with
really better record, from d bank
standpoint, than had been known Tor
any corresponding period In several
years. Thus far the January 1st prog
nosticators of evil had observed little to
justify their predictions. The month
of May WAS ushered in az smiling az
usual, only q little more so, for the
great Columbian exposition, opened
with much eclat at Chicago on the first
day of that mo & |, bid fair to dissipate
the smallest anu moet distant cloud
that might be seen in the business sky.
That cloud was there, however. though
at that time not larger than a mans
hand. 1t came up from the Atlantic,
where the two rivers empty into the SCI
down by the Battery. Notice of its APP
pearance was flashed over the wires of the
country on the Sd OF May, or within 4S
hours of the opening Of the worlds fair.
As usual, the first wall emanated from
Wall street. The telegram sent broad
cast contained these words: "The ten
sion in the commercial community ia
great, but the general comment 10 one
OF surprise that there are so few fail
ures. Everybody is looking for troubles
to come"
Mr.. Wright then proceeded to rec
ord of these troubles and showed how
one bank after another, good. bad and
Indifferent, commercial, savings and
trust. national, state, incorporated and
nYivata aharad in the oOmmon col-