The Savannah morning news., 1902-11-13
BANKERS CONVENTION.
Second Days Session of Meeting Mt
New Orleans.

towards the currency question was fixed
at the session to-day. No decisive stand
was taken on the questions of assets,
currency or branch banking, it being
considered unwise to act until a solu-
ton of the questions had been evolved,
but provision was made for the ap-
pointment of a committee, carefully to
consider the entire subject and report
at the next meeting. The same resolu-
ton stated the associations approval
of a law imparting greater degree of
elasticity to the currency system TO
make it responsive to the demands OF
the business interests of the country.
The discussion of these questions to-
day were very thorough and interest
ing. Former Controller of the Curren-
cy Charles G. Dawes, Congressman
Charles n. Fowler of New Jersey, and
Editor Horace White of the New York
Evening Post, were the stars in the
discussion. No two of them agreed
fully, though Mr.. White was on the
side of the question championed by
Mr.. Fowler.
Mr.. Dawes made a vigorous speech
against permanent system of assets
currency, though he approved the idea
of an emergency currency.
Mr.. Frames effort to get the con-
Vention to go on record against the
propositions failed, as his resolution
was sent back to the Executive Coun-
Gil.
Congressman c. A. Pugsley and Will
lis S. Payne of New York concluded the
days programme with addresses on
IAN Emergency Currency"
New Orleans. Nov 12.-The second
days session of the American Bankers
Association was resumed at 10 o'clock
to-day after prayer by Bishop G. A.
Rauxel.
Under suspension Of rules. Col.
Lowry of Georgia asked that Mr. Kit
tredge, the secretary of the Bureau of
Education, be allowed to say a few
words about the bank clerks institu-
ton.
Mr.. Kittredge made a short verbal
report in addition to the formal report
made yesterday.
John L. Hamilton, chairman of the
Committee on Fidelity Insurance, took
up the report 'of that committee, which
was formally presented yesterday.
The call of states was deferred until
later. The discussion of the currency
question was then begun. Congress-
sets currency and branch banking. He
discussed the features of his bill ex-
tempore.
Congressman Fowler did not spare
the bankers, but criticised with a free
dom, which, however, won applause.
He was given an ovation when he had
concluded, although more than once
when he asked if the convention did
not agree with the doctrines he was
expounding, he was answered by cries
of mo-"
Horace White, editor of the New
York Evening Post. spoke briefly.
Ex-Controller Charles G.. Dawes
spoke substantially as follows:
Whether branch banking is right or
wrong as an economic principle, as
practical men. we can make up our
minds at the outset that the public
will have nothing to do now with the
branch banking ideas, and that to
couple it with another measure of cur
rency reform in any plan of legisla-
ton, will be to injure the chances of
both. The most of the argument for
branch banking assume that commu-
nifty can be as well served by an agent
acting at a distance under delegated
authority, as by an independent local
institution possessing full authority and
power to pass upon local questions.
Now the record of corporation develop
that the process of GENERALIZATION and
consolidation, which is going on, is ac-
companied by the absorption into head
offices of an increasing number of func-
tons formerly exercised by Independent
institutions. To allow any great lati-
tude or discretion in the making Of
local loans by the agents of branch
banks, would result in a diversity of
policy, inconsistent with the highest
success of such institutions. The
branch banking system, since it would
lessen the number of independent in
situations, and therefore the expenses
OF the banking system, which have to
be paid in interest and exchange
charges, by the community, would, of
course. have many advantages. But
while it would result in a lessened rate
of interest upon certain classes of
loans, and in an increased rate of in
terest paid to attract deposits, it would
also result in the consolidation and
lessening of the number of individuals
loans. The tendency would be to cur
tail the number of small loans
where personality and character are
elements in the consideration of loan
applications by the local bankers. The
proposition is not sound; that if there
IS demand for the making of loans
10 small manufacturing and CONNER
cial enterprises and to small borrowers
erly met under branch Banking sys-
tenn by the independent local banks
which would remain in the field for
that purpose. bank cannot live on
borrowers alone; it must have de-
posts.
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
10 depositors. The growing tendency to
pay high rates on deposits is one OF
the characteristics of the centraliza-
Ton Of banking interests already going
on IN the country. For instance, GER
tain city rust-companies are now adj
Fertising throughout wide sections OF
country that they viii pay per cent.
~ deposits 10 be RENTED by mail.
ne branch bank, having facilities 70
loan through the parent bank, and pay
ias higher rates on deposits, WILL 70 a
i'fEe extent. drive out OF business the
local bank irrespective Of the needs
eld demands Of small local borrowers,
VINO cannot offer loans secured ~ sta
pes Ike grain and produce, with e.
iablished cash markets IN money CEN
/. a. "a q -