New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-13


New-Orleans. Nov 12-The attitude Of the
American Bankers Association toward the cur
rency question was fixed to-day. No decisive
stand YVES taken the questions Of assets cur
rency or branch banking IL being considered un-
wise 20 act until solution Of the questions shall
have been evolved, hut provision made for
the appointment Of a committee TO consider
carefully the entire subject and 10 report at the
next meeting. The same resolution stated the
associations approval OF A law imparting
greater degree Of elasticity TO the currency sys-
TEN, 10 make il responsive 10 the demands Of
the business interests OF the country
The discussion OF the currency question was
then begun at this mornings session by Con-
gresham Fowler who spoke on asset cur
rency and branch banking. He discussed the
features OF hts bin extempore. He did not spare
the bankers but criticised them with freedom
which. however. won applause. He was cheered
heartily when he ended. though more than once.
when he asked If the convention did not agree
with the doctrines he was eXpounding. he was
answered by cries OF Nor
EK-Controller Dawes then spoke. He said in
part:
vast population and diversified interests. are. as
Saey should pc mater OF eToIqGa . pIpS
all classes Of the people, determines the trend Of
general public perception OF the need of reform in
our currency laws will lead. as rule. to correc-
tive legislation provided our lawmakers and cur
rency reformers will advocate practical plans
and in ADVANCE Of public sentiment Whatever
may be individual theories bankers as 10
ury system and asset and emergency circulation.
we should view with dlstrust ana appTe aension as
hensive measures suggested al the present time.
but branch banking and sub-treasury changes as
our present banking facilities are well caring for
our great industrial concerns These great com
national interest that they prosper But It is not
the large concerns which are suffering these days
II is the small With an increasing public agi-
taton regulate and curb industrial combinations,
the scope Of individual endeavor is being so con
tracted as 70 endanger me nlsheSI nAos, ,JIso
LEGISLATION already on statute books Branch
great Success OF Industrial Capitalization and ma
tional development shall have continued, but II is
Of public policy as bankers and citizens.
sh %bSt Re Should do e o Is to our
whole efforts behind some measure for an eiass nc
now advocate for the purpose Of allowing elasticity
community in times Of panic. small amount Of
uncovered notes IN addton 10 the secured no SI
lowing limitations; They should be subjected 70 so
heavy a that they could not be issued in nor
mai times for the purpose Of profit. but would he
available in times of emergency. The tax should
provide a fund which, in connection with the pro
rata share OF the assets Of an nsoVent bank would
he sufficient TO redeem the notes IN Iuil; EilaOer
neoesstating any preference oI mo 6s ru The tax
sbpUId be so large as to force this currency into
S cnrTe1cY Could be used only to lessen the
evil effects OF the too rapid Liquidation OF creolts
could not be probably used as basis Of business mess
speculation ana hISoi, II Ierio- bo,,ze celia
Gates are cities in times Of panic-s remedy
business.
Horace White Editor Of The New-York
Evening Post" followed Mr.. Dawes with a
speech on Assets Currency He said in part:
The distinctive feature OF assets currency. as We
assets on which the goodness of the notes depends
instead Of depositng some paIt q mem IN INC
If them in the Treasury Is 10 gpard agSihst o5S
through bad INVESTMENT ira a HldIa sSe M
robbery These banking risks eAst Always ana i
EVERYWHERE. Yet assets currency prevails IN an
thar part 81 Great Britain called England. II e1-
lists in scotland and Ireland, as well as on the
Continent OF Europe. Bank notes secured by assets
not under the control of the issuing bank are the
That assets currency will come. | have not the
least doubt II viii come because II VIII be ne
in connection with the crop movement. would force
Congress TO act eVentualiy even II notng t Slse
yearly spasm, any more than Canada? She has a
ton OF the money market in the fan than in the
spring. All seasons are the same TO her because
and the times and places where they are wanted
p,ibic mind and in the banking mind also re-
RardinE bank notes. 1t is commonly believed that
notes exceeding the amount Of its paid capital and
anything above 90 50 per or its capital
ought 10 be heavily taxed Both the Indianapolis
plan and the Fowler bin embody this conception.
before the Civl War Was the Bank Of Indiana;
yet this bank allowed TO issue notes TO double
the amount OF its capital, and II did so, and II
never failed to redeem them even in the panic OF
This is not difficult 10 understand. The State
Bank Indiana kept the right proportion Of
is immaterial whether its liabilities for notes
or FOR deposits. or for a continuation of the two.
The point Of all this is that there IS necessary
or logical relation between banks capital and
ire csnitai and its DEPOSITS Both are liabilities
and the same percentage Of reserve that will pro-
Of our banking laws, and projects Of law restrict
the note issues Of banks 10 a certain proportion
selves see no danger in the unlimited Increase OF
deposits but look with great favor thereon. Yet
think that note issues should be restricted 10 the
are secured by bonds in the Treasury
notion is an inheritance from the days OF hetero-
Reneous State bank notes. when banking was IN
great disorder and when failures We're frequent
only as note-issung institutions The suffering
caused by broken banks was. therefore, attributed
mind n created the conviction that the banks
failed because they had insufficient capital which
the notes had caused the failures On the con
iraTy The notes as long as they were out br9ugh1
latter had been managed rightly in other respects.
Bank nae o f 1naah he Gt G hy R69d have
al gales as that famous institution did
Congressman Pugsley, Of New-York, delivered
an address on AN Emergency Currency He
said. in part:
DO n, not believe The American people care, are yet
For uS o m sSst STrsngy pure ara sv
tenn as is provided for in the Fowler bill. be-
neve. however, that emergency currency en-
grated upon our present system might prore bene-
fetal. and would also test the working Of asset
The government bonds are no longer available as
neVe, might be had If the present law should he
AMENDED SO as to permit all national banks hold.