The Birmingham age-herald., 1903-10-01


 telling of the various bills that had been before the committee, and of the difficult ty for the factions affected to get to- gether. He argued that the measure be- fore the house was not one of the char acter intended by the constitution.
 Would CentraIize Deposits.
 The bill before the house, he said was merely one to centralize deposits in the cities. He pointed out some of the pro- visions of the bill which he considered incongruous. MT. Rich spoke of the ad- vantage of the small country banks to the small merchant and planter. To ex- anime one of these little banks in May June would result in showing them as practically insolvent, when, as a matter of fact, they might be upon as firm a basis as any of the larger banks.
 MT. Callahan--Would not the mortgag ges and notes of the bank be counted by the examiner as assets?
 This would be left solely with the ex- aminer," replied Mir. Rich. He said that an examiner could not asceftain correct ly the value of the securities.
 Mr. Lusk pointed out what he consid- cred some of the imperfections of the bill. He first attacked the provision that the quarterly statements be published in one of the leading daily papers of the state. This was an attempt to central ze the money power In the cities. He jumped on section G. requiring the banks to comply with certain orders from the state treasurer. He wanted to see the motion to indefinitely postpone adopted.
 Wanted Cool Discussion.
 Mir Benners said he wanted a cool, un- impassoned discussion of the merits of kl l~k he wanted the bill before the house pro- perly that they might be corrected He explained the workings of the banking business and he said the interest in the bill by the larger bankers was merely to ascertain their condition for the pur- pose of trusting them with matters for collection. He cited some instances where losses for such collections had been made To make the country banks safer could only tend to increase the de- posits in the same. He read a letter from the Georgia bank examiner show ing the healthy condition of state banks under law similar to the one proposed for Alabama. The number of banks had been largely increased, together with the deposits. There had been but two fail- ures in two years.
 Needs Amendments.
 Mir. Benners thought that the bill need ed some amendments along the lines as pointed out, but these amendments could not be secured unless the bill was before the house in such shape as to permit an amendment The bill complained of as being so drastic provided that only fifteen per cent of the deposits be kept on hand as cash. This did not appear drastic He told of the class of banks which needed examination. such for instance as the Fort Payne. Collinsyille and Attalla, where "fakir with a high hat and dia- mond stud" had stepped in and burnt the people good. Reference was also made to the Montevallo and Bessemer banks He explained minutely the Bessemer fail- ure For one time. gentlemen, I am on the poor mans side,' MT. Benners de- clared. The bill was not a bad one as it stands and with few amendments if could be amended. he thought, so as to cure the evils that others had seen In 1t.
 MT. Callahan saw defects in the bill, but he did not want to disregard a mandate of the constitution by indefinitely postpon- ing the bill. The Country" had no more right to be exempted than the city bank. He did not see why an examination of a country bank in seed time" should hurt 1t, for the examiner would certainly take into consideration the papers held as as- sets. Banks should not be permitted to lend money except upon good security. MT. Callahan said that the "loudest mouthed" opponent of the bill who want
 <ContInued on Second Paoel