The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-12
Branch Banking System and Other
Financial Questions Discussed by
WeII-KnOwn Men.
PRESIDENT HERRICKs VIEWS
ON THE Overlooking OF THE
MONEY MARKET WITH DEBTS.
Controller of the Currency RidgeIy
on the Change i'm Banking Con-
ditions-New Officers.

twenty-eghth annual convention of the
American Bankers Association assembled
in Tulane Hall to-day, beginning a three
days session. This is believed TO be the
largest meeting of the association ever held.
Up to O'Clock this evening there had been
1,500 delegates registered at headquarters
and nearly 500 visitors and ladies. Seven
special trains, a dozen private cars and
every regular train for the past three days
has been engaged in bringing in the crowd,
which have taken complete possession of
the st. Charles Hotel, the headquarters,
and overlooked into ever other hotel in the
city.
President Herrick replied to the welcome
address and delivered his annual address,
in which he discussed the various banking
schemes which have been before the coun-
try for several years. In concluding he
said:
while we boast of an increase of $4,000,
100000 In bank deposits throughout the coun-
try In the four years last past, we are not
unmindful of the fact that during that
period the banks have shown no increase
In the amount of real, tangible gold money,
such as gold. silver and legal tender. The
loans have kept pace with this abnormal
growth in deposits. During this period also
We have become indebted in the way of
temporary loans abroad amounting prob
undue expansion OF bank credits and an
| overlooking of the money market with
debts? Shall we not, then, be wise, con-
| tent TO promote proper financial legislation
! simply as American citizens, not striving
| as an association to furnish ready-made
| laws on any subject? II would be a sorry
| they have peculiar responsibilities which
| dwarf whatever possible obligation rests
upon them to take part a class in law
making. cannot believe that the country
a 6a of
| legislation. However, it is more willing
| now than ever before to give the banks
| their full share in the favors of government
| in tardy recognition of the fact that they
| are now, as they were in Jecksons day,
| really the simple embodiment of, and re-
ceptacles of, the active Industrial power of
| the people, and as such, entitled to an
| equitabls participation in all the Astounding
glories of this great Republic"
Secretary J. X Branch,s report showed
| annual income Of 1918 There was a
/ net increase in membership during the
| year of 973
Chairman F. S. Bigelow, of the executive
| council, submitted a report, in the course
| of which 1t was stated that the currency
| plan of Mr.. Hepburn was indorsed, in so
| far as II suggested the issuance of cur
| rency by banks of $4,000 capital and $40 600
| surplus or more. TO the extent of half
of their capital stock, at tax of per
cent. (one-haIf per cent. a month";
| CONTROLLER RIDGELY'S ADDRESS.
4
laws. fidelity. insurance, protection and
education were presented, after which Con-
troller of the Currency W. B. Ridgely
spoke on the change i'm banking conditions,
| saying I'm part:
| 1T is unfortunate that the weakest point
| of our banking system is in its provisions
| for dealing with such a situation as seems
| before US to-day. Nothing could better
| illustrate the necessity for a more elastic
| ia nd for
| at the present time. Our banks have been
| and are being called upon to furnish the
| currency and credits necessary to move
| enormous crops, probably the largest in
| volume and value the country has ever pro-
| duced. We have raised over 5000 600 900
bushels of grain, worth at least 81, 500 600 600.
and 100000 bales of cotton, worth $500, 600 =
| 900. With the other varied products raised
| the total value will probably be about
s5.OOooO.coO. This call for currency comes
| at time when all business is being done
| on an enormous scale. OF course, this crop
| does not all move at once, and some of it
| is used where it is raised, but enough of
| 1t to require very large amount of money
| must be financed in some way within a
| few weeks. Much of it is done on bank
| credits not requiring actual currency, but
| the currency required is enough in volume
| to be large and difficult matter TO handle
| each year. This year 1T has been more so
than usual and has been cause OF con-
| siderable anxiety. In the farming States
| where this harvest is being gathered there
are 1926 banks. with $6O2 10000 of capital
| and $lO,OOOOU of surplus. The people who
| want this money advanced against these
| valuable and readily salable products own
| lands valued at $13,674. 000. 900; have farm i'm
| plements and machinery worth s76l, 900 600;
| i've STOCK worth SS'V'oVoO.Ov0, and raise over
| A,00O.OO0.OOO worth of produce each year
| 1t would not be an undue expansion
| or imitation If these banks had the
privilege or Issuing, in addition to
| their notes covered by bonds an amount
| of uncovered notes equal to say so per cent
| OF their covered issues. Call ii credit cur
rency, asset currency or emergency cur
! rency, or what you will. A small tax
| viii provide guarantee fund which will
| absolutely protect the note holder and the
public. A graduated tax and ample pro-
| vision for redemption will insure the re-
| tirement OF these notes as soon as the
necessity for them ceases. Such notes have
| been found safe and satisfactory in other
countries. They Will be more so here where
| we have abundant basis for the credits and
a great need for such an Improvement in
a banking system which, in all respects
but the lack of elasticity of its currency
| is most excellent There has been no svs.
! tenn of banks in this country as good as
| our national system, and no system i'm
| any country will be any better If we make
| this Improvement, which is almost ali IN
| needs. Our people believe in national banks
and well they may. Nothing could be bet-
ter than the quality of their notes, which
| have never resulted in the loss of a dollar
| TO note holder. The total loss To de-
positors since the beginning of the system
Is about $500, 600 This is only about
average amount on deposit and the small
! est fraction of the total amount of de-
| posits handled. With an elastic currency
we need ask for little more improvement
! in our national banks. They would be
/ the best banks in the world
Il believe in branch banking Theoretic-
ally liz is the best system as III is more
economical. more efficient will serve It's
customers better, and the organiza ton
| can be such as to secure in most respects
| better management. Owing to co-oper-
| alton between its branches, ii can be made
| safer than any system of independent
! banks. III L were outlining a new system
for a country in which there was none !
| would adopt this system: and / reere,
| that il was not adopted or permitted i'm ths
beginning of the national banking system
| L believe the national banks would h.
| stronger and better to-day III branches had
| been permitted and the system had haer
| developed with the branch featurs az
/ essential part OF IT. If this had been done
| the currency would doubtless have heen
made more elastic before now. III II had
! not, IL would be easier To now do so with
a system of large banks with numerous
| branches Our system. however W.
started on the other plan. All it's growth
has been In the other direction. Our neo-
pie know the independent home bank ana
banker. Ii is too radical change Gov
the bank, the banker. and the Customer
10 introduce al this late day. | do M,
think Ii would be wise TO make such !,
change now IL IL could be done / most
emphatically believe IL will not and can.
not be done. The majority of bankers. the
majority OF the people are against il and
nil hat ba