The San Francisco call., 1898-08-17
SOME BANKING PROBLEMS.

~ NE Of the most striking features of the flnan- | cial condition of the United States at this >) time is the extreme disproportion between the of interest in the money ceners of the country and in the outlying communities. In New York money is almost begging for borrowers, while in the South and to considerable in the West hardly enough be obtained at fair rates to carry the industry and commerce of the people.
 President Hepburn of the New York Bankers Association in an address at the annual meeting of the association, suggested remedy for this dtion of affairs the enactment of law permitting the establishment of branch banks, that the great monetary institutions of the financial centers would be in close touch with the country at large and able to advance funds wherever needed.
 Such system, 1t seems clear would go far toward equalizng interest charges throughout the Union, and thus place the business men of smaller cities on something like equal footing so far money mat ters concerned with those of the greater cities. As Mr. Hepburn pointed out, if such banks were in operation the funds which the big banks in New York are holding in dleness which are beg gng for investment at per cent less rate of interest would be employed in the West and South at better rates and the welfare of all sections of the country would be advanced
 The issue is which there has been much controversy, and even among the more progressive reformers of our banking laws there is by no unanimity of opinion on the subject It is feared by some the right to establish branches would enable the great banking houses of the cities crowd out the small bankers of the country at large. Whether these fears we'll founded not 1t is certain thing should be done to equalize interest rates and put all sections of the Union possible upon the monetary plane. As MT. Hepburn said:
 "A proper remedy for the evils complained of by the South and West is not to be found by waging war upon existing banks, but by the establishment of more They need competition and greater facilities for exchange"
 Another important banking problem dealt with in the address is that of providing for strcter enforce ment of the laws regulating the administration of banks. Some striking statistics given by MT. Hepburn showing the shameful facility with which "bank criminals, he called them, obtain pardons. Strangely enough the record of the Federal Govern in this respect is worse than that of the States, and it appears that the average term served by bank criminals has been but 5I per cent of the average sentence; executive clemency having wiped out 4o per cent of the penalty imposed by the court. MT. Hepburn adds:
 From data obtained t appears that the greatest degree of lenency is extended to the 'Napoleons of finance, who, in the furtherance of some scheme of speculation in the indulgence of desire for fash ionable and expensive living appropriate the funds intrusted to them for safe keeping The social posi- tion friends and influence which these stolen funds enable them to obtain seem to avail in obtaining a modification of their Surely this class sin against greater light and it is difficult to wherein they entitled to greater lenency than the brutal burglar"
 Whatever differences of opinion may exist concern ing the proposal for equazing interest rates there will be none with respect to the demand for strcter enforcement of the law guarding bank funds. A few people may object to branch banks but all people are in favor of honest bankers