New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-07-23
BANKERS AT NIAGARA.
PRESIDENT HEPBURN'S ADDRESS Be
FORE THE STATE ASSOCIATION.
CAREFUL SUMMARY OF BANKING coN'lrl"Ns
AND NEEDED CHANGEs-oFFIcERs


AND NEEDED CHANGEs-oFFlcERS
NOMINATED
Niagara Falls July 22.-The NTH convention OF
the New-York State Bankers Association opened
here this morning with good attendance OF mem
hers The proceedings began with prayer b. the
Rev. A s. -,acon. Of this city
A B Hepburn president of the association DE-
livered the annual address. He said IN paft:
ISOLATION. as Will fully appear from the reports
Of the secretary and reasurer Inc dnt n fSo
ecOnomc and potGal sand9ons .d The b ya Value Gt
Of foreign merchandise imported into the United
States by s6l525900O and yet the air Is hlle1 Win
Rs cry Of # sd pt ey s haTe only
return at troubled intervals when normal con
sS sn Pef cent The The hGfsT
the country Is enormous and as permanent con
a I0 scr mus! w he anE
Of money and property has for years been sf1~ine
power Of labor has steadily increased. not only
from the increasing scale OF wages; but as We
necessaries Injuries In one n the large banks
Of the city Of New-York the average salary paid
from the president down messenger boy was
sNs The earning power Of this average empo{o e,
equaltd The earning power OF 80 .'S invested !"
LABOR's EARNINGS INCREASING
Property Is steadily receiving less and labor more
In the general division People who have lived
comfortably on their incomes. as they are corr
pellod 70 reinvost their maturing g. or per cent
investments in bonds Welding 3D. or per cent are
obliged 70 resort to economies or supplement tnelr
incomes with labor On the other hand labor has
more leisure time and greater means for the en-
toyment OF life. for selfcutivation for developlne
mus conform :" he sitnation by paying less in
terest the funds intrusted 10 our care ,,,o-.
The deve opments Of the year mark me aW ihc"-
ing CT people TO a realizing sense ~ me -"
sponsbilities Of naionhood Our capaci,y TO Ir bo
home market can no longer keep furnaces In blast
looms in action That capta ma, earn mus,
contend in the markets of tho world for IN" sale o'
The broader National life which will inevitably
result from the present waT VII giye m IL Pc be
Transported in American bottoms. the commercial
world must know that the American nag mean.
protection and ggaTnnc os s1ie 6 the word in
the markets Of the world our commerSe mus o.
supported by navy commensuraie win INC s'c''
commercial interests Of our Nation.
CLEMENCY TO BANK CRIMINALS
We as bankers realize full well the constant care
and vigilant attention necessarily given 10 tho
MANAGEMENT # our respective institutions by elab-
crate system check and counter-chcck In order 10
protect ourselves against loss through unfaithful
officers or employees forgcrs. swndlers cheek
raisers and kters and also by means Of safe ana
lock electrical alarm and special police 10 protect
ourselves against those who would forcbly obtain
possession ~ mo funds iniru7'ed To our care We
also realize nc difficulty OF running down such
Indicators ana securing their conviction -
degree Of lericncy is extended - tho "Napoeons
Of hnance mo in m" fn1,heranriH Of som,
desire for fashionable and expensive living 1p-
propria'e The funds Entrusted 10 them for sac
keeping The social position. friends and In
fuence which these stolen funds enable tncm 70
Obtain .eem 10 sya IN ne s rn ="
light and T. difficult for one 20 SOC wherein the
are entitled . gr'1i"r l"niency than ~" brutal
The ease With which executiv" cl"mency Is Oh
tanned. and the freedom VIII which 81 is nicrposcd
seem in nv Judgment 10 call for 4 protest tho
part II the banking and business conmuni''
NEEDED CHANGES ~ RESERVE LAW
word as - TIC prcscnf Law regulating tho rc-
serve in National banks A. present New. York
Chicago and - Louis arc central reserve cities
and required - keep cash-n-htnk r"acrve equal
10 O. rtr cer, of 'her net dcTo.ts. other cities
like Denver louisville cincinnati Cleveland P'is-
burg Philadelphia Boston dn short an cities hav-
Ing \ population IN excess ~ 900. arc required
70 keep p per cont reserve. i?i. per cash IN
bank and Iei1 per cent with an approved reserve
agent IN ono n tho central reserve ci'lcs The
naming bankn in places - loss than iooc6 popula
ticn are required 10 keep * per cent reserve per
cen, cash In bank and per cent with approved
reserve agent IN any ono ~ mo res"rv" or central
reserve cities
Tho law as % tho central rcscrv~ c,tics seems 10
command approval "a 10 the reserve cities woulI
Il no, he we'll % amend ~ same 20 as 20 rtqu'r'
them 10 keep reserve Of IS p"r cent cash In bank.
md ~. banks ia smaller places. 4m'ni 90
rs 10 require fhem 20 keep !" yer cent reserve cash
in bank repeating all provisions ~ 20 any porii
Sf hg hd @Ts T,, %@ IN bank
CURED Of banks In places - os. than 0."o popula
ton Is no restriction whatever The could not ID
he business their counter with lcss than that
over ., per cent of the business Of The country
that is checks and Arafe-and the percentage -
rency is constantly 'rcreasing with the increased
facilities Of exchange. Economy and corvcnierc"
necessarily produce such condition II follows that
he norton OF tho demands which
banks customers make upon II call FOR exchange
po,an cnntTesr ihcr han currency In order 70
supply this demand unon The par % nor cnstoIn,
business and without statutory requirements. 20
keep an available fund In metropolitan centres SUBJ
jcct 10 their drafts.
CAUSE OF LOAN EXPANSION.
Good. Wholesome business principles require
banks. Ike individuals. to keep their resources in
their own immediate possession and control so far
as possible This rule seems 10 be reaXcd ana
measuraoly reversed in the case Of bank reserves
in order TO obtain tho Increment which Interest
contracts With their reserve agcn, aiio IN, ,h he
country into metropolitan centres. 'sp"cl"ly ia
times Of none plethora This ,occS' srnscn~y
and all these funds are withdrawn from money
Of moving these funds back and forth. by express
otherwise. Is n considerable TAX upon me couh-
such funds necessarily invest them in order 10
realize proht or TO protect themsrlVes agaim i
expanded in our reserve cities In times OF great
financial case. and necessarily involve considerable
hardship and distress whom these loans are called
in in order that the outflow Of money 10 the coun.
try may be supplied when business conditions call
for the same The practical working ~ this IL
unhealthy In tendency. and generally del"t"rous ~
the business Interests Of The Nation as who'll ,o
We certainly need important legislation IN order
10 adapt our banking system 10 the changing ana
growing conmcrcial wants Of the Nation. \
proper remedy for the evils complained Of by inc
Soiih and West IL not TO be found by wdginG war
upon the existing hanks. but by the Enlistment
OF more They need competition and greater
facilities for exchange. what inc country needs
js a system Of branch banks II our large bank
inC institutions in our money centres were allowed
10 establish branches throughout the country the
funds that they now hold In idcncss or begging Tor
investment At IL to cent interest. would seek
jnves.mcn, through their branches at better
rate OF interest Thus would tho interests or both
sections and all sections OF the country be con
served The lende- would get fa.rer rate for MS