The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-11-11
POLICY OF BANKS
They Remain Independent in an
p. Era Of Combination and
Speculation.
Failure of the Scotch Banking Sys-
tem-Bankers' Association
Meeting.

New Orleans, Nov. 1.-THE American
Bankers; association: began its :, annual
meeting in Tulane hall here this morn
ing. There were addresses of welcome
by Acting Mayor William Mehle, City
Attorney Samuel L. Gilmore on behalf Of
the city; Professor w. G. Stubs, on be-
half Of Governor Heard and R. NJ
Walmsley of the clearing house associa-
ton on behalf of the local bankers.
President Herrick replied to the well
come and delivered his annual address,
He said, in part: 81, y
Banking, in it's most potent and por-
tentious FORM is not great stock COM
pany, still less anything which can be
called a trust. It is merely man and his
partners. 1t is Connecticut Yankee,
who has gained a wonderful control Of
Wall street. not, however, by inherited
riches or lucky gambling, but by the
force of his personality and his COM
mercial generalship.
I'm an era Of combinations aiming at
the restriction if not the entire removal
Of competition, a movement reaching far
and wide in trade and productive indus
try, the banks have gone on in the old
way, every one for itself, welded to the
idea of individuality and independence.
The banks Of the United States stand be-
fore their country and the world. exam
Piles Of solidity, conservatism and straight
fOrWardness: In it's very nature bank
ing is the opposite Of the business Of any
trust. There can be no monopoly Of
product in banking, nor can we imagine
combination among debtors that would
restrict commerce, yet we must acknowl-
edge it to be the chief business Of banks
to become debtors. Collectively, they
constitute the circulating system Of the
vital fluid Of commerce, and while acting
tremendously are productive of the great
est good.
1.-THE more the tendency towards con1bi-
nation and the restraint of competition af
fects commerce and industry, the more the
banks will inevitably gain favor by con-
trast. The greater the force of the trust
movement in the direction Of over-capital
ization. the reader the country will be to
look upon banks and bankers as cham
pions Of independence In business and as
safeg yards Of conservatism. g.
"The impression that federal legisla-
tors have, that much of this prejudice and
suspicion remains, makes bankers, as
body, an unpromising source of proposed
legislation on the money question. AS in
dividuals, working directly with senators
and representatives, party leaders and
political organizations, the members of our
association can exert far-reaching in
fIuence on the side of common sense and
sound policy. But as an assemblage Of
tive action in favor of any sharply defined
and finished scheme Of financial legisla
ton without great danger Of hindering
rather than helping the wide and pernna-
nent development and Improvement Of the
money system of the United States?
. Enthusiastic advocates Of the Scotch
banking swstem, with it's circulating notes
secured by the assets Of banks of issue,
and it's wide multiplication Of branch
banks. supporting the central institutions
in emergency,,nare prone to overlook or
ignore our conditions, which cannot be
pushed aside at, will. a >
In the beginning Of 1892, there were
twenty eight banks in Australian colonies
of Great Britain, with more than 100
branches. which had gone through the
first crisis of 1891. But in the following
year panic struck the antipodes I'm
cumbed to ruin and losses. Some had de-
posts reaching s50,000,000 apiece. Others
owed their patrons from $25.O0O,O0O to
$35. 100000. In several instances a single
big institution had over 100 branches. One
bank which was compelled to close it's
doors, boosted of 200 branches.
Never in modern times, has been ex-
perisenced any such collapse Of banks and
destruction Of confidence in financial In
situations of the country as Australia en-
dured in 1891 and 1892, notwithstanding it's
very complete development OF Scotch
banking. While branch banking has
proven, on the whole, a desirable plan,
it appears that there is no system which
insures a safety in a carnival Of impru-
dence and imitation of values.