New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-13

mitted to issue the supplemental currency in
limited amounts
The committee questioned whether the time
had come to depart from the present system of
national bank circulation. The present output
OF Sl00ooo0 of gold daily is regarded es allevi-
ating the monetary situation and in measure
lessening the demand for additional circula-
ton.
No action was taken or the report by the con-
vention-
SCOTCH BANKING SYSTEM
An interesting history Of the Scotch system
Of banking was presented to the convention by
Robert Blyth. general manager of the Union
Bank Of Scotland. located at Glasgow. The
first Scotch bank was established in 1895. To-
day there are only ten banks IN Scotland. seven
doing nine-tenths of the business The chief
characteristics of the Scotch system is the right
Of the banks to issue the one pound note, as
the result Of which Scotland retains to-day her
paper currency almost to the exclusion of metal
currency while the reverse is true IN England.
Mr. Blyth maintained that IL the one
pound note that enabled the network Of branch
banks to be maintained in Scotland and that
encouraged the savings of the poorer classes.
With the English five pound notes and her
metallic currency, he said, these branch banks
could not have been maintained because Of the
prohibitive cost. The aggregate deposits of the
ten Scotch banks reach $500. 100000
Another distinctive feature of the Scotch sys-
tenn is its cash credit account, wherein trader
or manufacturer is enabled to borrow from the
banks temporarily by executing a bond to which
he gets the signature of two or more friends
along with his The bank accepts the
bond and hOnOrs checks up to the amount
named in It, obviating the pledging Of securities.
Interest is not charged except on the amount
drawn The uniform interest, discount and COM
mission charged by the ten Scotch banks is
distinctive feature During the last century
there have been only two bank failures in Scot
land.
BENEFITS OF MEMBERSHIP.
An address by Walker Hill. president Of the
Mechanics American Bank. of St. Louis on the
practical benefits Of membership in the Ameri-
can Bankers Association, followed the remarks
OF Mr. Blyth He said in part:
In considering the benefits of membership in the
Quire into the origin and purposes of the associa-
tion-its daily work and the character Of its men,
consider the origin and purposes of the American
81 4e5eo 80 +fa aI7, 80 q W l1'lis o. o.
principal purposes had in view in organizing the
association in 1870 was to aid the federal govern
ment in resuming specie payments; and it is not
claiming too much to say that the association gave
currency on a gold basis. Thus at the very be
ginning of its career this association set before it.
self a wise and patriotic purpose, and from that
day to this 1t as a body and its members as in
dividuas given freely to the government val
measure which the government has undertaken
Indeed. the aid which the members OF this associa
ton have given the authorities officially charged
with the financial interests of the country, has been
stances that assistance has been practically inds-
pensabIe; for had not the governments proposals
met with the approval or the American Bankers
AssOCia ton and most Of its members, those pro-
posals would have been discredited both in this
country and abroad, that they would have been IN
capable Of execution.
a "a no n an N
orabIe origin but If has ever since taken a cred
liable part in the financial problems Of this
associations that have rendered more continuous
and valuable services 10 the government mink
tf7aT erea+est If TreaFT7rv Secretaries salmon P
orEanizat ton such : IS the American Bankers As
ISOLATION of today The daily work Of this as
ISOLATION is of practical benefit to its members,
though il may be Impossible to measure that yalte
IN dollars and cents But that the service Of the
association IN detecting and capturing criminals
who prey banks, thus deterrfng crimes against
banks. Is Of substantial pecuniary benefit to me
members OF this association must be admitted
Those members who are the victims OF some crime
and find the cost of running down ana prosecuting
the criminal borne by this association. have keen
appreciation. whic-4 can be measured in collars
and cents. Of the vaIae OF the membership in this
association
Five minute descriptions Of the business pros
perity Of different parts of the country were in
duIged in by the convention for half an hour.
when adjournment was taken until tomorrow
morning.
The convention was invited to meet in De-
troit in 1907 by William Livingstone, Of that
civ No action was taken.
An amusing incident in the discussion Of bust
ness conditions was occasloned by the refusal
of Mr. Fletcher Of Little Rock Ark to dis
continue extolling the South at the end Of the
prescribed time. The convention good naturally
voted him off the floor only TO have him inter
rupt the next speaker and continue his own
remarks.