The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-10-22
FINANCIAL EXPERTS
HOLD DISCUSSION
President Hardy Speaks and
Currency Committee Reports
to the Bankers Convention.

| L.
! Inc actual business of the twentv-
ninth annual convention of the Amer
lean Bankers association began today
! PRESIDENT Cardwell Hardy called the
convention to order and gave his an
nual address, in which he said:
| The vast majority of us feel assur-
ed we have had, so far, all the cur
| rency we have needed, and that an in
| crease of it, just at this time. would
| lend further undesira bic stimulus tn
) speculation. The enormous production
| OF gold in the last few years has hen
| either lost sight of, or if studied. will
furnish food for thought The advan-
tages claimed for the bank circulation
| OF other countries over our bOnd-se-
| cured notes have much merit from q
| scientific standpoint and would have
| more from a practical standpoint if the
element of risk could be eliminated
Whlch has brought disaster in some in
stances. The practical question is
t-could 1t be satisfactorily grated on to
our banking system, and if so. howe
Inc Idea of a central bank or q
branch banking system, is repugnant
TO our conception of free government
and institutions, and, unless I mistake
the temper of our people. will never
De accepted. Neither will any form
Oh currency be accepted which does not
carry with it the same confidence of
| security Which our bank notes now en-
joy.
Railroad Consolidation.
There has been a greater creation
Oh securities in the consolidation of
| Indhy OF our railroads than actual val
| ueS, apparently, justify but the con-
| cehtratlon of management and control
mas brought about stability of rates
! winch has created an established value
Tor their legitimate securities without
n4arusnlp 10 the patrons of the roads.
1t Is serious question whether the
| aggregate market value of all our rail-
road securities equals the amounts or
| IslnaIy expended in the construction
Oh them with even moderate return
upon the investments The reduction
| IN the cost of transportation has made
1t possible to move freight profitabIy
/ at rates which have formerly been con-
sidered impossible. 1 do not mean to
suggest that the roads should be left
entirely free in the matter of fixing
rates, but the reasonable concentration
or their management should rather ia
cllitate their control in this respect by
conservative legislative enactment"
Secretary Branch, in his report,
showed that the paid membership is
lO69' with annual dues amounting to
| $i6,5lS. During the past year 303 mem
bers We're lost through failures and
| withdrawal, but to offset this loss, 1,139
new members were placed on the roll.
|
ported receipts, including balance Of
| $l5I,921, and expenditures of 49,, 539,
| the largest items being protective COM
| mittee, $38199, and salaries $15,656
The balance Aug. 81, 1902, was $72,382
r.. f. Swinney, chairman of the exec
| utlVe committee, in presenting the re-
| port or the council, said that the main
item of expense of the association
arises from the work of the protection
committee in preventing and detecting
crime, and this expense exceeds the in
come. The committee advocated an in
crease of dues, graduated according to
capitalization. The plan of creating a
guaranty association which would in
clude banks and employees, and which
would reimburse members in losses
occurring through dishonesty, was not
favored by the executive council
A resolution favoring a money order
system for banks was approved. The
practice of paying interest on daily
balances was not commended. When
the executive committees report was
read a resolution favoring an increase
of dues to add $4,000 to the income Of
the association was adopted.
Currency Committees Report.
The report of the currency commit
tee was then read. It says:
In the opinion of your committee
the most serious need is the reform OF
the subtreasury system in such wise
that the money withdrawn from the
banks for custom duties, as we'll as in
ternal revenues, shall be deposited in
the banks and thus be made available
for use in the community from which
it has been withdrawn.
Regarding the question of circula-
ton, the first and most important re-
quirement is the immediate repeal of
the present limitations of $3000,00O per
month upon the withdrawal of circula-
ton, so that the expansion and con-
| traction will be automatic and gov
erned by the surrounding situation.
Emergency circulation could, within
! careful limitations, be safely permitted
| upon the actual deposit with the treas
| ury department of securities acceptable
to the secretary of the treasury And
upon such deposits circulation could be
issued promptly to meet actual emer-
gencies, which would not be possible
if time were taken for the examination
of general assets by the secretary Of
| the treasury and comptroller of the
| currency. A tax of per cent per an
mum should be imposed upon such
! emergency circulation to insure and
| hasten its return to the issuing bank:
| this tax to be set aside as a safety
| fund to secure the United States treas
ury for the redemption of notes so is
| sued.
ITO further liberalize the circulation,
your committee recommends that the
| United States tax on circulation should
be uniform on the issue of currency
| based on all classes of United States
| government bonds"
The report is signed by Charles S.
| Fairchild, H. c. Fahnestock, Myron T.
Herrick, Homer S. King and ]. ].
| Mitchell.
The report of the committee on fidel-
| ity insurance provoked a very lively
| discussion. The committee favored
| plan whereby the association should
! bond its own employees and offered an
| amendment to the constitution creating
! the American bankers guaranty fund,
! controlled by a board of five trustees
| to be appointed by the executive cOun-
| Gil This was lost. The report of the
! committee on uniform laws was read.
| The nominating committee, compos-
| ed of state representatives tonight de-
| cided to report the following nominal
tions to the convention:
! President. f. ]. Bigelow, Milwau-
kee; first vice president, L. f. Swimmer,
Kansas City; executive committee, ].
| D. Powers, Kentucky; ]. r. Mitchell.
| Minnesota; James K Wilson, Califor-
| MIA; ]. B. Finley, Pennsylvania: Ste