The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-09
PLANS FOR THE CONTROL
OF BANKS ARE DISCUSSED
Jmportant Session of American
Academy of Political and
Social Science.
ADDRESS BY RIDGELY

PHILADELPHIA, April S.-A convention
of national Importance. especially 10 indus
trial interests, began here to-day, the oc-
casi,:. being the eighth annual meeting OF
the American Academy of Political and So
cial Science. Delegates from many cities
assembled at the Manufacturers Club and
nearly all great corporate interests were
rer.esented The chair was occupied by
Frank A. vanderIip. former assistant sec
rotary Of the treasury and now vice presi-
dent of the National City Bank. New York.
The subject under consideration during
the session is 1.-The Government in Its Re-
Iation to Industry" which is subdivided
and taken UP in detail.
The first branch of the topic was Gov
eminent Regulation of Banks and Trust
Companies" and addresses were delivered
by William Barrett Ridgely, controller of
the currency, who spoke on THE Control
of National Banks" Frederick d. Kilburn,
New York state superintendent of banks,
1.-The Control of Trust Companies" and
Professor Frederick A, Cleveland. of the
New York University THE Financial Re-
ports of National Banks as a Means of
Public Control
Controller Ridgely said in part:
Under our dual form of government, in
which certain powers are given the federal
8utuOTltleS ana OtnelS reserved 10 the
States, the question OF governmental con-
troll Of banking and other corporations.i Is a
rather difficult and complicated one. The
passage OF the National bank act, or ma
tional currency act, as IL was first called,
may be considered the beginning of the
federal control of banks. This has now
been exercised for more than forty years
with most satisfactory results both to the
government. the banks and the people who
have done business with them.
Comparing the results of failures and
liquidations among the national banks with
the figures in regard TO the failure of state
banks from 1868 to 1896, as given in the
report of the controller of the currency for
1886. the last date to which complete figures
are available, IL will be seen that while
only 6-5 per cent. of the number of national
banks in existence failed during this time
istence failed. And while the national
banks which had failed up to 1896 paid to
their creditors 20 per cent. in dividends, the
state and other banks paid only about a
per cent 1t is extremely difficult to get
accurate figures in regard to the cost OF
failed. but IL is certainly very much higher
than the cost of liquidation of national
banks.
Whatever regulation or control there is
to be of the trust companies. it must come
for the present at least, from the state
governments. Federal control of the ma
tional banks has been so satisfactory and
successful that there is some desire cx-
pressed for federal control of other banks
and trust companies There has not been
however. so far as / know, any practical
suggestion made by which institutions car
be forced persuaded to submit to fed
eral control, especially il IL is to be more
severe than that now experienced by the
States. Federal control, therefore, does not
seem to be a present practical question"