The Montgomery advertiser., 1901-07-16

m. XShcf1ft--I desire to offer a sub- 1{1tute for the pending section and amendment.
 The substitute was read as follows: Amend Article XIV as reported by the committee by striking out Section 8 thereof.
 Mr. Aschcraft-The Constitution does sot prohibit the Legislature from en- hcting such regulations for State banks and private banks as it may deem proper frcm time to time. think it is proper to leave this power in the hands sf the Legislature. So far the Legisla- lure has not deemed it wise although The question has been several times Agitated in the Legislature, to re- nuire State banks to submit to an ex- animation. There is not, relatively ppeaking a great number of State banks and the expense incident to their Examination in any manner that would provide additional security for their hepositors and stockholders would be very graat. An examination that would not be of that thorough charac- Ter to give proper information about 2he bank would be no examination at all, as has been demonstrated several times. During the panic the percent age of failures of national banks was greater than the percentage of failures among the private banks. Now as the legislature is not prohibited at all in this regard, if the public at any time should demand a provision for the ex- animation of State banks, such pro- vision would be enacted. don't think we should put it in our organic law because if it should prove unsatisfac- .ory to our people there would be no way to get out of 1t.
 Mir. Sanford (Montgomery)-They rould amend the Constitution.
 Mir. Ashcraft-But that is very diffi- eult, as we have learned. I therefore trust the amendment will prevail. MT. Malone-I wish to oppose the amendment of the delegate from Lauderdale. If there is anything in this State that we should do it Is to lions for the people of Alabama. We pre getting away from the conditions that prevailed years back and a great many of our people are accommodating money and it will \ be only 8 short lime before we will have lot of sav- Ings banks. I submit that the aver age depositor is completely at the mercy of a bank. He cannot go to the bank and say you must show me your books. He doesn't know thing in the world about them. So far as the legis- IS CpnCGIAlCu we hliOW Ihdt Dnlv a few years ago when a bill simi- lar to this was up and came near pass Ing the private banks of the State headed by a prominent institution in Montgomery, and assisted by myself for which I got caught afterwards, de- feated the measure. There is no use talking about members of the Legislat- ure, for when three or four banks from a representative's district come down on him he can hardly help voting with them.
 MT. Rogers (sumter)--Is it your opin. ion that the examination of the Ma tional banks we now have are benefit or injury to the public?
 MT. Malone-It is a decided benefit and l speak from experience.
 Mir. Rogers (Sumter)-Would not ar examination of any bank, to be bene- ficial, have to take up the account oi each individual depositor as we'll as debtor, and is this ever done?
 Mir. Male-Sometimes.
 Mir. Rogers-And, therefore, the re- port of the examiners deceives the public more often than it gives them infonmation because in an examination of bank thoroughly you will have to take up the account of every individ- ual depositor and creditor of the bank to see how he stands, discount his notes and everything.
 Mir. Malone-These reports made by the examiners do not go to the public unless'it Is shown by the examination that the bank is insolvent. These five annual statements are made up an6 sworn to by the officers of the banl and printed. The examination that th' examiner makes never becomes public end it is one of the best safeguard! possible
 MT. Henderson-In your opinion does che average man know anything about the solvency or insolvency of bank or are they looking to its published state ment?
 Mir. MaIone-when made by an off, ger, yes sir.
 MT. Henderson-How can an average man tell from statement whether a bank is solvent?
 Mir. Malone-The bank examiner car report that himself.
 Mir. Henderson-That would have to be based upon the idea that the exam iner is familiar with the local condi- tions and with the value of the condi- lions?
 MT. Malone-I certainly would pre- yume there were competent officers al the head of 1t. Just the other day there was a bank in the city of Buffalo me president OI WHICH ndu DeeH pTeSl- lent of the Bankers Association of the United States, who stood high and whose opinion was regarded as author lty. Yet the bank examiner examined his bank and closed it up. and, as 8 matter of fact, by closing that bank saved much money to the creditors.
 MT. Henderson-Is it not your opin. lon that the adoption of this section will have a tendency to drive depositors rom Statr and private banks to Ma lional banks for the reason that State md private banks would be examined ey State officers, and the National banks by National bank examiners?
 MT Malone-If the gentleman gets too close I will have to call taw on him think unquestionably it will be g benefit to have these examinations. ao not believe it will help the men not examined. Unquestionably it will bring more deposits to those that are examined, and I submit that it is worth t20 for any man to have an expert go through your business.
 MT. Coleman Greene)-You stated Just now that you and some others al the last term of the Legislature( or the term just before that succeeded in de- feating law similar to this?
 MT. Malone-In the Legislature
 MT. Coleman (Greene)-At that time you were running a private bank? And now you are running a National bank
 Mir. Malone-Yes, sir; and those are my views exactly. One of my stock holders came to me and said: You are making a mistake, you are putting your competitor acros6 the street where he