The Montgomery advertiser., 1901-07-16

of Constitution, 1t Is for restricting and limiting the bounds within which
 the legislative machinery may work. or rather to say what the legislature shall not do. than to say what 1t shall do. All rights which the people do not
 reserve in their Constitution are dele gated to the General Assembly to leg
 islate upon. By the adoption of this Section you say to the legislature, you
 shall do something which the Consti- tuition does not forbid you from doing. In my opinion the adoption of this Sec tion means the creation of new and additional officers without benefit to
 the people. People put their money in banks not because the banks are ex-
 smined. but because either of confi-
 dence in the management of those in charge or from personal or political influence. Examinations, as we all know, do not prevent bank failures. | Possibly most of you know there were
 more national bank failures in the
 panic of 1893 than there were failures
 of State and private banks.
 If the purpose of this Section is to
 protect the people against bank fail
 ures and I suppose this to be its pur-
 pose then it should be so constructed as to provide board of examiners to issue license only to such persons to engage in the banking business who, in the opinion of the board have all the requisite fitness to successfully con- duct such business. ...-
 MT. Malone-Is not that a matter purely one for legislative enactment? | Mir. Henderson-This section. yes, and that is what 1 am speaking for. l say the legislature has right to pro-
 vide for the examination of State banks without the Constitution saying | they shall or may do it. . MT. Malone-We want to make 1t
 mandatory.
 MT. Henderson-You want to legis- late. How many men in this Conven-
 ton can tell the solvency or insolvency
 of bank by looking at published
 statement. You can see the amount of cash on hand, amount of depos- its and loans but of the
 character of loans you cannot judge and
 State Bank Examiner would know little more. The people do not like 10
 have their private affairs pried into by
 State officers. The adoption of this sec
 tion would cause the shifting of de-
 posits from State and private banks
 to National banks over which State of
 ficers would have no control and there by be the means of discrimination
 against State and private banks and in favor of National banks. There are
 a few things which the people wan.
 at the hands of this Convention and as I understand them they are these: 1, l Limiting the right of suffrage; 2. less frequent elections; 3. limiting the Leg islature in the passage of local bills; 4, relief from unjust discrimination in freight rates; 5. a division of the school tax fund in proportion as it is paid by the two races. They may have wanted some others but I am sure they want
 ed no new offices and I do not think they wanted any material changes in . the present Constitution aside from those I have mentioned.
 Aside from the pledge imposed , by the party platform I was
 pledged to my people on two other propositions and they were: first. sup , port no measure in this Convention whereby the salary of State officers would be increased or fixed in the Con-
 stitution. The other was to support no
 measure whereby the number of State officers would be increased. On account of this pledge, MT. President. I voted , against the measure before this Con- | vention in the early session to increase
 the salary of Governor.
 i, Mir President. the spirit of govern , mental paternalism Is growing strong
 CT. The tendency is to try to accom- ' plish too much by legislation Men ex-
 pect and depend too much on govern I ment to aid them in their business. Nc , people ever was nor ever can be Iegis- lated into prosperity. These are some \ of the reasons why I think this sec. el ton of the report on banking should Q not be adopted.
 s MT. Coleman-Mr. President and del
 egates of the Convention: The discus 5 sion of this question shows how closely people look after their own interests r Every officer of national bank in this Convention who has spoken thus fal
 favors the adoption of Section 8. Those
 opposed to it.
 . I have persistently voted during tht sittings of this Convention against ev'
 cry enactment which properly belong! l to the Legislature, and for that req
 son, continuing to do so. shall vote fol ) the substitute offered by the gentle man from Lauderdale. But while tha
 is so, it Is due to the Convention to say that the examination proposed in this
 Section is really putting a clog or 2
 burden on the State banks and putting them at disadvantage as compared with a National bank. Really a banl is judged by its officers and directory more than anything else. The people } put their money in these banks ac- cording to their confidence in the bus mess capacity, solvency and integrity of those who manage banks.
 l MT. Malone-May I ask the gentle. [ man if he is a private banker?
 MT. Coleman-I am going to tell il all. I do not have to be asked. l am speaking about what I know. Int } big failure the other day occurred i'm mediately after a report by a Nationa Bank Examiner and not before. It i: utterly impossible for any ordinary ex aminer not acquainted with local con.
 ditions and securities to examine g bank and report with any certainty upon it's condition.
 MT. Walker-Is 1t not fact that the big failure in Buffalo occurred 1T a few days after report by a Nationa l Examiner certifying the condition oi affairs of the bank and that they were all right?
 Mr. Coleman-That is just what ]
 stated a few moments ago, and there
 than of State banks approximately. Mr. Malone-Is it not a fact tha
 that very failure was caused by the re
 port of the Examiner?
 ] Mr. Coleman-On the contrary the
 Examiner reported 1t all right. Blu , so far as you are concerned. that ha!
 been demonstrated. You opposed thi! when you were interested in the Stat,
 bank and as soon as you get in { . National bank you advocate it. That
 is enough on that proposition.
 MT Malone-Let me ask you