The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-21
TALES OF PROSPERITY
THE BANKERS OF INDIANA REPORT
CONDITIONS IN VARIOUS DISTRICTS.
A. NJ. Fletcher Elected President of
the New AssociatiOn-Address by
George III. RusseII-A Banquet.

A. NJ. Fletcher Elected President of
the New Observation-Disclosures by
George III. RusseII-A Banquet.
The Indiana Bankers Association was
permanently organized yesterday, and in
point of attendance and interest the con-
vention surpassed the expectations of it's
promoters. This is particularly pleasing to
the local bankers, as the formation of the
association they feel will bring them into
closer touch with the banks of the State.
The assembly room of the Commercial
Club was crowded at 1880 O'Clock when the
assemblage was called to order by Allen M.
Fletcher as provisional president. He spoke
with extreme brevity, expressing regret that
the mayor, who had been expected to well
come them 10 the city, was unavoidably abb
sent. Il regret said Mr.. Fletcher, that
he cannot be here to tell you that the city
is yours but in so far as we can make it so
it is yours. 1 know that all of you prefer
short-time paper, and shall therefore not
detain you with lonfs notes.
Mr.. c. L. Lindsey, of South Bend, chair
man of the executive committee, made his
report, showing the origin of the associa-
ton as detailed yesterday, and a motion was
adopted authorizing the president to appoint
committees on constitution and nominal
lions.
Bank Examiner George b. Caldwell of
Detroit, was introduced and read a paper on
postal savings banks. 1t was taken for
granted that he would talk in favor of them
but his paper set forth some very strong
arguments against them. In the course of
his paper he said:
"Some writer has said, Fancy is the cas-
tie commanding the city; and IL once men 5
heads be possessed with strange magma
tions the whole body will follow and be in
finitely transported herewith. While TINS
man does not lay claim to being a prophet
the truth of this saying is manlteStly APP
parent in the business and political world
as /. is to-day There are few reforms that
do not have their origin in some fancy Of
men, and il it has a plausible side men
heads soon become possessed with strange
imaginations and for time the whole ooay
a few questions but what are of interest
TO the up-to-date banker, and they are also
few that do not have two sides: bat by the
power of the press and free DISCUSSION In
conventions and out the people are edu-
Gated and good results are obtained. The
money question, with its coordinate de-
partment, banking, is to-day the most
prominent and most important commercial
problem to be settled. The future prosper
ity of every farmer merchant manufac-
turer and banker is likely to be more or
less affected by any change in the present
system. 1t is necessary and wise, there
fore, that the question be considered In
all it's bearings.
BANKERS NOT MONEY SPECTATORS.
TT is believed that the people have come
to understand that the bankers, as class,
are not spectators in money Credits are
the instruments in which they deal most
and around which of late some doubt has
existed 1t is to remove this doubt as far
as it is possible, both in our currency and
the credit instruments in which banks
deal, that bankers are united for stable
currency. The borrower, who outnumbers
the banker many times, profits more than
any one else in the reduction of these risks.
The banks securities are the more secure,
but the borrowers rate OF interest or dis
count is correspondingly less, and because
of that the great majerity are directly and
indirectly benefited
Since 1893 the business world has suf-
fered much from a. lack of STABILITY, not
alone in our currency, but in the policy of
the government itself, and our methods of
granting credits and of conducting our
banking business. To overcome these things
is the vital question: for bankers and bust
ness men to consider. There are to-day
almost many different kinds of banks
as there are kinds of currency in use in
business. First, there is q national bank
ing system, with it's four thousand different
institutions. Second the commercial state
banks, the exact number OF which | can
not give. Next the mutual savings banks
then the stock savings banks, many of
which conduct the dual business of COM
mercial banks and savings banks; then the
trust companies, building and loan ASSOC
Citations, and last, but not least, private
banks which are older and quite as nu-
merous as alEsothera and about which the
public know the least. 1t would seem that
the field is we'll covered and that all forms
of safe investments for depositors is now
supplied, yet there is an effort being made
revive the desire for postal savings banks,
and even our honorable postmaster general
will. it is said, lay before Congress in his
forthcoming annual report some investiga-
ton made In his department bearing on this
question, and will favor the establishment
of this system.
POSTAL SAVINGS BANK QUESTION.
1.-The question raise here to-day for the
consideration of this body is not the one
born of jealousy because of a new COMPETE
tor though this is serious question to
some of you, which you have undoubtedly
considered and already passed upon. The
real question, however, is, as / understand
II, whether or not 1t is wise for the gov
eminent itself to engage in the banking
business, and whether or not such system
of savings banks are needed, AS l under
stand it, to establish postal savings banks
is to add to our Postofiice Department, all
ready burdened with responsibilities, the
complex and greater responsibility of car
ing for the millions of dollars of the small
savings of the masses and or inSuring the
repayment Of every dollar thus deposited,
with interest. Necessarily this cOmpelS the
government to do one of two things-etther
conduct a safety deposit business at con-
siderable expense, which expense those who
pay taxes must pay or TO engage Itself IN
banking much as does certain class
of savings banks, trust companies and
building and loan associations.
"There are three things, therefore, that
the government and the people themselves
should carefully consider before branching
out in this direction. First, the amount of
deposits such as they propose to receive,
now held in banks Second, the effect of
the government assuming such a liability.
Third, the benefit, il any that the deposit
ors and business world will sustain I'm
fortunately, it is difficult to find statistics
| that will show the actual amount OF de-
| posts in the various banking associations
| that are purely savings.
THE Investigations made by the control
| Ter of the currency, and published in his
| report for 1895 shows that in I'll stock saw
| ings banks and or mutual savings banks
a total deposit of 81 907 600 600 was held land
| that nearly so per cent. of the above amount
| was held by the savings banks in the New
| England States alone. 1t IS also reported
| that balances of $500 and under comprise
| 9712 per cent. of such deposits, and that
! interest at a fraction less than per cent.
has heretofore been paid depositors on these
lin connection with the above figures 1t
/ should be noted that no reports were re-
| ceived from fourteen States and two Terri
! tories, and that only partial ana IN complete
returns were received from any other
| States, while the number of depositors and
the amounts deposited in building and loan
| associations are not included. 1t is stated,
! however, that in the State or Massachu-