The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-12-04
PEOPLE WOULDN'T TAKE THEM
BANKERS LAUGH At BERNER's
STATE BANK BILL.

No First Glass Bank Would Take Ad-
vantage of the Provisions OF Such
n Law-The Notes Would Hardly
Pass Current and the Banks Issu-
Ing Them Would Lose Their
Credit-PIenty of Money in the
State for All Proper Purposes, Says
President Myers Berner's Bill
Thought TO BE n Political Move.
The bankers generally laugh at the idea
of the bill providing for state bank issues
introduced in the Senate by President Rob
ert L. Berner. They look upon such
measure as impracticable from many
standpoints, and hold that no bank of any
prominence or stability would take ad-
vantage of any such provision.
IF MIR. Berner had brought out some.
thing new, remarked President Henry
Blum of the Germania Bank, when asked
about the matter. ''it might be taken into
serious consideration, but this is the same
old gag that has been introduced in varl-
Gus legislatures. The trouble about such
a provision as that would be with the
people. AS long as they can get money
that passes current anywhere, they win
not take obligations of this kind with in,
sufficient security back of them. 1 am
satisfied that no legislation on that line
will be practicable unless it comes through
congress. Why, when clearing house Ger.
tifcates were issued in some cities few
years ago on account of the stress of cir
cumstances, they were looked upon as
Rance. Money is a subject that the Unit
ed States government should treat, and
not the separate states. The legislature
can do no more than charter banking in
stitutions; the subject of money must be
handled by the United States"
Vice President NJ. b. Lane of the Citizens
Bank was equally emphatic in his views,
Which were similar to those of Capt. Blum
AS FAR as issuing notes is concerned >"
ne SAID, state banks have the right to
DO that now. They can sell their notes
but they cannot put them out as a circll-
Iating medium without paying the 10 per
cent. tax. The question might be asked
Who will take such notes as this bill pro-
Vldes Tor? What would they be worth
away from home, in New York, for in
stance? Then, again. there is the chance
for fraud. How is the issue going to be
restricted? In my opinion, no reputable
bank would desire to operate under such
such notes as money, and the bank that
issued them would be unable to borrow
money from any other source, simply on
account of the fact that such notes would
be first lien on all of it's assets. Even
II the bill should be passed. do not think
any first-class bank would take advan-
tage of its provisions"
There is more money in Georgia than
there is any demand for now" said Pres
ident Herman Myers of the National Bank
of Savannah, in speaking of the propose ed
measure. There is plenty of money for
hrst-cIasS business projects, and l am sat
isfed the farmer can get all the money
he needs, provided he is conducting his
business on a proper basis. 1t is not safe
for a single state to legislate upon this
question. Again, under this measure,
there are not sufficient safeguards thrown
about this proposed issue of currency.
GeOrgia's congressman, together with
those from other states, might secure some
national legislation upon the subject of
state banks, but it would be unwise for
this state alone to undertake the matter.
do not think any sound bank would care
to take advantage of the provisions Of
such law, for l consider it would do such
an institution more harm than good"
Cashier w. G.. Cam of the Savannah
Bank and Trust Company expressed SIM
liar views upon the question. He did not
believe, he said that a single state could
ltgislate upon this matter. The bills issued
by Georgia banks would not be received
outside the state, and, perhaps, only right
where they were issued. However, the
banks were not worried over the matter
he said, because none Of them that want
to maintain their reputation would secure
a charter under such provisions.
So the general opinion was found among
everybody in banking circles. There seems
to be a pretty well defined impression that
President Berner has a gubernatorial bee
buzzing somewhere beneath his chapeau,
and that he is trying to get the honey
while The flowers are in bloom.
The bankers, however, do not stand in
fear of such legislation. 1t will in no wise
effect them, because they do not have to
take advantage of any such provisions
unless they desire to do so, and the opin-
ion seems to be that no first-class bank
would do so under any circumstances.
Georgia banks are at present in
pretty good condition and they
want to remain so. If the legisla-
ture wants any pointers about such legis-
lation the Georgia bankers are ready to
furnish them, but they are not going to
offer any opposition to the measure OF their
own motion, because they do not believe
the measure will materially affect them,
on account of the fact that it proposes
to leave banking institutions free to do as
they please in the matter