Omaha daily bee., 1902-11-13
o NOT AGREE WITH FowlEEs IDEAS
Meeting Cries No When Congressman Asks
Acquiescence bat Cheers Him.
PUBLIC WILL ONLY HAVE PRESENT SYSTEM
Dawes Says Combines Are Too Greatly
Feared for Bank Consultations
CENTRAL OFFICE MIGHT cURTAL LOANS
PrCvcnt Local Firms Help Country
Develop by Lending Money, hut
Centralized Finance Would
Jeopardise Custom.

NEW ORLEANS, Nov. 1.-THE second
days session Of the American Bankers as
ISOLATION was resumed at 10 o'clock today
after prayer by Bishop G. A. RauxeI.
The discussion OF the currency question
commenced with Congressman Charles ~
Fowler's address on assets. currency and
branch banking He discussed he features
Of his bill extompore.
The call OF states was deferred until
later. The discussion Of the currency ques-
tion was then commenced. Congressman
! Charles N. Fowler spoke on assets. cur
rency and branch banking. He discussed
the features OF his bill extempore
Congressman Fowler was given close at
tention. He did not spare the bankers, but
criticised them with a freedom which won
out by its force. He was given an ovation
when he had concluded. though more than
once when he asked II the convention did
not agree with the doctrines ne was ex-
pounding he was answered with NO"
Former Comptroller Charles G. Dawes
spoke substantially as follows:
Reforms in Finances.
Financial reforms I'm the United States
with its vast population and diversified in
forests, are, as they should be, matter of
which in matters affecting all classes of
the people determines the trend of legis-
lation i'm preventative governments.
A general public perception OF the need of
reform I'm our currency laws will lead as
rule, TO corrective legislation, provided our
lawmakers and currency reformerB will ad-
Nocate practical plans which are not so
radical as 20 be at variance with and in
| advance of public sentiment. Whatever
| may be our individual theories as bankers
1 as to branch banking, reform of the pres
ent subtreasury system and asset and
with distrust and apprehension, as practical
men, the extremely radical and compre-
time, covering not only asset and emergency
| circulation, but branch banking and sub
treasury changes as well.
We had best conclude at the outset that
whatever may be the legislative outcome
| of the universal discussion and public In
terest relative to the trust question, until
with the question of the relation OF the
government to the present great Industrial
the bars and remove the existing restric-
ticns upon branch banking. thus further
he banEing @ tsrests Sasss1V Which 4 sssaS rU q
! ing on to some extent through other devices
than the branch banking system.
Question of Branch Banks.
Whether branch banking is right or
wrong as an economic principle, as practical
! men we can make up our minds at the out
set that the public will have nothing to do
! row with the branch banking Ideas, and
that TO couple II with anOther measure or
| currency reform in any plan Of legislation
will be TO injure the chances Of both.
The most of the argument for branch
banking assumes that community can he
al well served by an agent acting at is
! tance under delegated authority as by an
! independent local institu ton possessing fIli
/ authority and power to pass upon lJla.
| questions. Now the record of CORPORATE
! development In the United States indlcatt
| solidation which is going on Is accompanied
! by the absorption into head offices OF an
neIediss nu6eT n6dIt 0d InG1i3inS tSrmeriy
| The branch bank, operating under less
expense than the Independent bank can
take the bulk of the deposits by offerinG
! a higher rate of interest to depositors.
| But the man VINO develops a country
| the man who starts little Tnanufa cturing
! industry-who starts a small wholesale
| business-who starts in a small way to de-
velop the mineral resources of the coun-
! to be curtailed and his chance to
| found or increase a business injured by
| the branch banking system. In this coun-
cially. because, under our law and govern
ment, We have made II our special effort
| tunlties of the Individual and Of the small
| enterprise. To the protective tariff system.
| which kept the flood of foreign competition
| from our manufacturing interests IN their
| earlier stages We owe in great part our
! magnificent industrial development as q
| nation. The United States has just entered
| fairly upon the work of developing Its al
! most boundloss resources, anu we are not
| ready as a nation to dispense with the
small business man or curtail his oppor-
| tunities.
Need for Elastic Circulation.
| What we should do now is to consolidate
! our whole efforts behind some measure for
| an elastic circulation. the need of which
we all feel In support OF such a measure
| both the friends and opponents Of branch
Let US now advocate for the purpose OF
allowing elasticity to bank note issues tc
protect the banks and the community in
| times OF panic, a small amount OF uncov-
| cred notes, in addition to the secured notes
| which should be authorized by law under
the following limitations: They should be
! subjected 70 so heavy a tax that they
purpose Of profit, but would be available
| In times OF emergency. This tax should be
| so large upon the solvent issuing banks as
to provide FUND, which, in connection
! with the pro rata share OF the assets OF ar
insolvent bank, would be sufficient 70 re-
deem the notes IN full. without neoessitat
positors Of any insolvent issuing bank.
| The tax should be so large as to force thiI
| currency into retirement as soon as tbs
| emergency passes. Such a currency coulC
! be used only to lessen the evil effect oil
the too rapid liquidation OF credits whicl
i are cola psing under a financial panic bu
| could not be prodtably used as a basis o
business speculation and imitation. 1t shoulC
| be 20 the business community what tn,
| clearing house certificates are TO our citie
In times OF panic-a remedy for an
emergency. not an instrument OF cuTen
/
Mr.. White devoted much OF his address.
to a discussion OF the Fowler bill, embody
ing the principle of assets currency which
was before congress last winter.
The following resolution was adopted
Whereas, Experience has demOnstra ted tn
inadequacy OF our present currency sys
tenn, and believing that the best Interest,"
| Of the country demand a system hexibl
as well as stable, be II
| Resolved That the American Bankers
association record its unqualified approva
of the enactment OF a law imparting
greater degree of elasticity to our currenc!
| system, making II responsive TO the de
mands OF the business interests OF tn
| country
Resolved. That We favor the appointmen
. by the president Of this association Of
| committee OF seven members Of the asEocia
| ton, selected with reference to their abilit!
! and high character as bankers and thei
experience In monetary affairs, and repre-
senting different parts OF the country, 70
| the purpose OF carefully considering m
! entire lbiect and report TO the next meet
ing OF this association.
Willis s. Payne Of New York spoke OF
"An Emergency Currency" urging the ne
CONTINUED on Second Page.)