The Providence news. (Providence [R.I.]) 1891-1906, 1901-04-17
ABOUT BANKS
AND SYSTEMS.
Able Address Delivered by 3.
{. Walker Of TORONTO.
SPOKE TO BANK CLERKS.
Lucid Explanation Of the Present Banking
Conditions and Of The System Emplsysd
In Canada.

The annual meeting and banquet Of tn,
Bank Clerks Mutual BENEFIT association
has always been an occasion for th,
members Of the association 10 feel prou,
| OF, but the big gathering at Masonic Tenn
pie last evening, was probably the fines
Hei-hsia=by- ftfeftey= fnanfpulatory
lt was representative gathering in
! deed and included. in addition 10 In,
members OF the association. representa-.
tive men in the world OF business and 9
number of those who stand foremost IN
professional life.
Among the guests were President
Faunce OF Brown University Lieut. Gov
kimball, General Treasurer Walter A.
Read, City Treasurer Walter l.. Clark
Hon. Augustus 5. Miller, ex-Gov. II. Rus-
sell Brown, and many other porminent
men. officially connected with local
banks. The speaker of the evening was
Mr.. ". II. Walker, general manager of
the Canadian Bank az Commerce Of To-
ronto, one of the great banking institu-
tions of this continent
BY LIEUT.. GOV. KIMBALI.
Prior 10 the banquet there was an IN
formal reception In the parlors, and then
the march was formed 10 the dining room,
where nearly 500 persons sat down To Am
excellent dinner. John w. Vernon, cashier
OF the Merchants National Bank of this
city and president of the association
called on Rev. w. II. u. Fauncc, ID. d..
president OF Brown University, 10 invoke
the Divine blessing.
During the dinner delightful music was
furnished by Reeves orchestra under the
direction OF Bowen n. Church and sew
eral vocal selections were given by MIR.
Gustav Lenz.
The first speaker introduced was Lieut..
GOV. Charles Dean Kimball, who spoke
OF the standing OF the men VINO control
the several banking institutions of the
state. aud also referred 20 their mfiu-
ence In public affairs.
President Vernon next introduced Mr.
H. r. Walker, OF Toronto Canada, who
was received with warm applause, and
who proceeded TO speak I'm an easy and
pleasant manner, which at once attract
ed general attention.
MR.. WALKERS ADDRESS.
After some Introductory remarks. Mr..
Walker said In substance: "A satisfac-
tory banking system for any country
mercial needs OF the country. but II must
bear proper relation To the economic
conditions brought about by it's history,
by war as well as by industry, and Il
should also almost automatically adjust
itself 10 the fluctuations of commerce,
either I'm each particular year. or in a
cycle including a period OF expansion and
one OF depression"
He then read extracts from an address
1pliNpFal nv him IN an,
then said: "A flexible currency you must
have. and branch system. so that mon
ay Will flow automa tically where IL is
needed. and the inequalities I'm the value
)f money be lessened Us I'm my opinion
lust as essential. But we can also see
hat IL the legislation enabling an elastic
currency were obtained, unless great safe
guards were exercised, "a bad use might |
De made OF such great franchise and
'uinous consequences ensue
And II branch banking were permitted |
{ Is not clear that individual banks
would bc willing 10 merge their identity |
n such branch systems Again the people \
IRE used 20 a currency issued or guaran- /
eed by the government and the vital |
principle i'm an elastic currency is that II |
hall not be 40 guaranteed.
MY personal belief is that n a few /
arge banks with branches were estab-
e sound the system OF individual banks
would gradually disappear. very slowly,
- doubt. but In that fact there would be
o hindrance 10 an elastic currency and
free flow OF loanable capital. provided
ranch banking grew to any reasonable
roportions.
But ! have said very little about tie
ature of the proposed currency and [
ann0t begin better than by stating the |
~ ,ftp I
'hich at first was about the same AZ
our old state bank issues while the Inn
royements We have made are also main
Z borrowed from your past experiences
he main fea lures OF the Canadian bank
OF issues are:
THE CANADIAN SYSTEM.
"(a) They are not secured by the pledge
: special deposit with the government OF
'nds or other securities, but are simply
edit instruments based upon the gener-
assets of the banks Issuing them.
90 But In order that they may be not |
ss secure than notes issued against
lnds deposited with the government. |
icy are made first charge upon the as
It's.
'(cl TO avoid discount for geographj.
i reason each bank Is Obliged To ar
nge FOR the redemption OF its notes I'm !
e commercial centres throughout the
nmiuiou
'tdl Aud. finally 10 avoid discount AT
+" moment OF the suspension OF "a bank
Their because ~ delay in payment OF
'tc issues by the llquidators or Of doubt
to ultimate payment. each bank ia
iged to keep in the hands OF the gov
nmcnt deposit equal 20 8 pr cent on
average circulation the average he
3 taken from the maximum circulation
each bank I'm each month OF the year.
IL such q system were applied to tbnu |
nds Of small banks IN would probable |
failure aud this IL why ! urge "A
'ge minimdm capital although I fully |
4lize that this IL "A dinicult thing To- |
sura fn this fottpfrt. Stt1 tho p,eta,. !