The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-04-08
GOVERNMENT
And INDUSTRY.
Relations of the Two a Subject
of Discussion
At a Convention Which Net To-
day in Philadelphia.
STH ANNUAL MEETING.
American Academy of Political
and Social Science.
William B. RidgeIy Discusses
Government Control of Banks.

Philadelphia, Pa, April 8.-A con-
vention of national importance. espe-
cially to industrial interests, began
here today, the occasion being the
eighth annual meeting of the Amer
lean Academy of Political and Social
Science. Nearly all great corporation
interests were represented. The chair
was occupied by Frank A Vanderlip,
former assistant secretary of the
treasury. The subject under consid-
Grafton during the morning session
was THE Government in its Relation
to Industry" which was subdivided
and taken up in detail. The first
branch of the topic was 1.-The gov
eminent regulation of banks and trust
companies" and addresses were de-
1tVered by William Barrett Ridgely,
comptroller 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 Prof. Frederick A. Cleveland, of
the New York university, THE Finan-
cial Reports of National Banks as a
Means of Public Control"
Comptroller Ridgely in the course
Of his remarks said:
Under our dual form of govern
ment in which certain powers are
given the federal authorities and all
others reserved to the states, the QueS-
ton of governmental control of bank
difficult and complicated one. The
passage of the national bank act, or
national currency act as it was first
called, may be considered the begin
ming of the federal control of banks.
This has now been exercised for more
than forty years with most satisfac-
tory results, both to the governm ent,
the banks and the people who have
done business with them. It has re-
suited in an excellent system of banks.
honestly ably and well managed The
figures in regard to the number of
failures and loss to depOsitors show an
unequalled record of soundness and
safety, and cOntrasted with the pre-
vious records of state banks, and even
with the better and stronger state
banks and trust companies which have
existed alongside of the national
banks, make a strong argument in
favor of national control of institu-
lions of this character. The total loss
in over forty years is less than eight
one hundredths of one per cent of
the average amount on deposit. The
volume of experience gained during
the forty years control of the national
banks is probably the greatest accu-
mutation of such experience which
has ever been made, based as it is
upon the control of a greater number
of banks, more widely distributed. do
ing a larger volume and variety OF
business, and covering a longer period
than has ever been exercised in any
other country.
when the act was first passed there
was much question whether the induce
ments offered the banks were sufficient
to induce them to submit to examina-
,tion, restriction and control by the
United States. Many of the early banks
were organized, or converted from state
to national as much or more from pat
riotic motives as from hopes of increas-
ed profits. The fact is the circulation
has never been very profitable, never