The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-21
Absorption Of National Banks
; Discussed at Length
BANK CLERKS READ PAPERS
'IatsrsstIug Session Of Providence Chapter
Last Night When Prizes Were Given
Writers Of Best Articles.

"Resolved. That the control OF absorp-
ton OF national banks by trust compa MES
lis advantageous 10 the business interests
of any community" was the live and up
to-date topic on which eight papers. each
OF merit. were read before the Providence
chapter American Institute OF Bank
Clerks In Palestine hall, near Market
square. last night. The meeting resolved
itself into sort Of a debate. the men TAX
ing sides and prize OF SIS in gold was
divided among the three best producers OF
papers.
These were the winners: Gilbert A. Har-
rington, (negstive) Rhode Island Hos
ptal Trust company; w g. Meader;
(affrmative) Rhode Island Hospital
Trust company. and Charles J. Eddy;
bank. with an honorable mention for
Earl D.. Armstrong, who spoke for the
affirmative. The others were: Howard
ling. Jr.. tnegative); w. Howard Pepper
and Frederick b. Wilcox both affirma-
o.. The judges were Edward F. Metcslf.
James NJ. Scott and Edward u. Bassett.
The subject of the papers will be the
ford Conn. chapter. at Hartford later.
and the winners may be part OF the team
10 represent Providence.
d, Next meeting there will be an adding
machine contest for a prize the talk being
10 list 500 checks correctly. The winner
VIII he tried out and against an electric
adder then.
MANY NEW MEMBERS.
At the business session at s:l5 the board
of governors announced that the following
members were elected: Herbert c. Wells
of Rhode Island Hospital Trust company.
Henry G. Jackson, Industrial Trust COM
pany; c. Herbert Pond OF Woonsocket.
Frank A. Jellson. Woonsocket: Allan /.
? cock and Thomas r.. Pendleton OF West
erly Among the honorary members
elected were ex-Gov. ID. Russell Brown,
Col. II. Martin Brown. Col. George II.
Webb. n Edward Thurston, Charles c.
Harrington; J. II. Chase. Ernest w. Tink-
Thurbsr % GnSFITs Frederck HS*alG w Arnold eoT William
T. Barton. Julius Palmer. William @.
Nightingale. Joseph w. Martin, Louis f.
Oscar Cornell. James p. Burlingame and
Arnold h. Chase. The directors OF the
Old National bank are all included
INCREASE IN DEPOSITS.
The first speaker was w Howard Pep
per who spoke I'm the affirmative. He
said that there was little evidence of feel
Ing against trust companies when the
bank deposits show only an increase Of
ao per cent. while the trust companies
have increased 800 per cent. The ma
tional trust companies deposits are $3.50.
100000, 10 per cent OF the banking power OF
the world. Trust companies are not only
the most popular; but The most most
institutions. he said. and said that be-
cause they were under the state laws.
which are more easily amended, they are
preferable TO the national banks. because
the latter are under laws which II is
practically impossible TO change.
In regard To absorptions he said that
half the "a banks which Boston had few
years ago are now controlled by trust
companies.
He referred TO the community OF inter-
est between the local trust companies and
the banks, and said that the trust COM
psny could very often through their New
York connections get new business, they
: would not otherwise hear about.
In Providence. he said, such conxohda-
tion had proved advantageous There
were too many banks in Providence. The
gavel cut him short at this point. ten
minutes being UP. Charles l.. Eddy spoke
next In the negative, and said that the
absorption OF national banks by trust
companies was not desirable and was
seven harmful.
BEST IN THE WORLD.
The national banking system is the best
I'm world he said and he pictured how
the restriction on their loans, the main
ssaining big reserve and the other safe
Eguards save the depositors fromloss when
egthe crashes come. The national banks
Go1old over one-half OF our interest bearing
debt
p The absorption Of national banks would
withdraw the bank notes from circula-
stion and this in face Of the growing needs
FOR elasticity I'm our currency
y A remedy for the absorption by trust
companies. he said. was for national
banks TO unite and consolidate. This is
the proper way TO unite and II would re-
tain the safety features OF the national
dbanking features.
GAVE TEN REASONS WHY.
Earl ID. Armstrong was the next speak
ser and he said that the business interests
gwere better served by the trust company
hV q han ka
company can loan the merchant money
fin the time OF financial stringency that
she may continue his business in undimin-
tished volume. He told of the restrictions
on national banks which can loan only a
small percentage OF its deposits.
lie went on to speak OF the many
ways in which the trust companies
serve the people. caring for estates, act
ing as guardians and letting safe deposit
vaults TO its customers.
In Providence he said, the four trust
companies gave an excellent example OF
the popularity OF the trust company. In
conclusion he gave ten reasons why
trust company is better for the business.
Is NOT DESIRABLE.
Welcome p. Darling, Jr.. next spoke.
taking the side that the control OF the
banking business by trust companies Is
not desirable.
The United States has the most per-
feet systems Of banking and OF the 1900
banking Institutions are increasing par
ticularly I'm regard to the national banks.
This national bank caters 60 a different
sort OF people than the trust company and
the trust company cannot reach these
people.
lie pointed out that trust companies
controlled by one or two people might be
used despotcally as I'm politics and this
would be- disadvantageous TO any business
community. Politicsa are liable TO enter into
any big corporation controlled by n few
~ II has into the big insurance com
panies.
MORE ADVANCED FORM
Mr.. Francis n. wilcox who spoke for
the trust company, y more advanced
form ~ banking While National banks
ala much 90 build up the banking husi.
rees the rust company can 40 sverv