The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-07
ASK FOR GOLD STANDARD.
THE BASEERs WANT IT ESThB-
LISTED UNEQUIHOCNLLI IN LAW.

ASHED UREQUJpOCILLT IN LAW
Association Recommends Action nv Con
Gress mt the Next ssssion--,IAmsa q. Can
non Of this City Advocates Bette
Supervision of Credits by tho Banks
CLEVELAND. O.. Sept. 6.-Tho feature OF Tn,
morning session OF the American Bankers
Association to-day was the adoption OF I
straight out and out gold standard resolu.
ton unan ously. The resolution wa,
introduced by T. o. Leach OF New York
city. A motion was at once made to
adopt the resolution In the convention
but there was Sjection because the rules
provided that the Executive Council must
hrst handle such measure. In order
10 awe the house chance at the
resolution. Chairman Alvah TroSbrld"e
OF New York. OF the Executive Council. called
his council together on the floor Of the mseting
and had the resolution referred to the house
then and there The house then adoptad u
with deafening applause. The resolution was:
THE bankers OF the United States most earn
estly recommend that the Congress OF the
United States at It's next session enact law to
more firmly and uneauiyocally establish the
gold standard in this country by pro-
vlding that the gold dollar. which under
tho law is the unit OF value.
shall be the standard and m easure OF all values
of'the Government and all paper money.
including the circulating notes OF national
banks. shall be redeemed In gold coin. ana
that the legal tender notes Of the United States
when paid into the Treasury shall not be re-
Issued except upon the deposit OF an equiva-
lent amount In gold coin"
At the afternoon session OF the Association
the following were elected officers OF the trust
section OF the association: Chairman. A. Ho-
denpyl. Grand Rapids. Mich: Vice. Chairman.
Joseph C. Hendrix. New York: Chairman.
Executive Committee. W. @. Mather, Cleve-
land; Secretary. Arthur Huertley. Chicago.
Members Executive Committee. W. G. Mather.
A. Cox. Louisville: b. Jones. st. Louis; J. Z.
Born. New York.
Mr. Janes G. Cannon. Vice. President OF the
Fourth National Bank. New York city. spoke
on Uniform statement blanks and Credit
Department methods" He favored the adop-
ton OF a statement form for m merchants who
desire loans without collateral. He said such
statements should be analysed and added:
Every bank should have a thoroughly Or
gan zed and properly equipped credit depart
ment.
"A credit man. carefully instructed In his
duties, should scan the morning papers. es-
pecially those giving particular attention to
commercial affairs. for the purpose OF getting
and bring to the attention OF the officers OF the
bank. all judgments. assign M nts. petitions in
bankruptcy. conveyances. mortgages, 30.
which may be OF interest to the bank, or
its customers. He should prepare de-
tailed memorandum OF the paper discounted
or purchased by the bank. maturing each day.
and no note entered upon the discount book
should have place In the poke book Of the
bank. until some record is made by him
in his department concerning the borrow er.
The credit department OF bank should take
charge OF all applications received for discount.
and prepare the proper memoranda concern
ing the same. 1t should investigate inquiries
received from correspondents and customers.
as well az all new accounts which are
opened. The credit man should compare
and analyze statements received cover
ing discounts as we'll as purchased paper. He
should take for the personal use OF the officers
q private transcript OF the discount register,
and prove his books with tho general ledger
iof the discount department.
thus making o continual check upon that
department. All checks returned for
insuffloienoy OF funds. or noter presented and
protested In which tho bank fs Interested.
should be entered upon the records Of this de-
partment. All bills receivable taken by the
bank should be thoroughly investigated. and
the nleb OF nlB department. onOulQ con-
stantly DO up to date. His depart
ment should also have the custody OF the aver
age balance cards showing the average month
ly balances OF customers. In short. the
credit department should be the conf
dental department OF the bank. 1t
Ia also the proper place for the
handling OF all past duo matter. and It should
be the duty Of the credit man to sec that the
banks claims are kept before the officers In
such a way as not to be overlooked
There Is not large mercantile house OF
any consequence to-day In tho United States
that has not thoroughly equipped credit de-
partment. in charge Of a competent man and
yet. strange to say. the number OF credit
Departments In banks throughout the United
States can be counted almost upon the
for the introduction OF this feature into the
banking business. In the month OF August
there was filed in New York city voluntary
petition In bankruptcy. and the liabil-
tiles OF the debtor were $4,000.
with assets OF 5000. Among the
unsecured creditors were seventeen banks
who were interested to the extent OF $22O. 200.
Eleven OF these banks were in New York city
and six outside OF the city. Sixty three judy
ments have been obtained BY
these banks against the insolvent
debtor. This exhibit speaks for itself.
There Is no question In my mind that II any OF
these banks had asked for a detailed statement
and made proper investigation Of the same.
they would have saved themselves from these
fearful losses"