Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-10
SAVINGS BANK SECTION.
Aid Promised in Securing Local Gov
ernmental Supervision.

Aid Promised in Securing Local Gov
ernmental Supervision.
The most important business transacted
at the session this morning Of the savings
bank section of the American Bankers
Association, in the Shoreham Hotel as far
as local interests are concerned was the
passage of resolution on practically
unanimous vote pledging the aid of the
section in securing the passage of law by
Congress for governmental supervision. of
savings banks in the District of Columbia.
The resolution was introduced by G. Byron
Latimer of New York, chairman of the ex-
ecutive committee with the approval OF
local savings bank men.
The resolution was to the effect that
"inasmuch there is no law in the Dig
trict of Columbia giving any government
officer supervision over savings banks, 1t Is
hereby declared the sense of this meeting
of the savings bank section of the Ameri-
can Bankers Association, assembled at
this annual convention in Washington, that
such law should be introduced In Con-
gress and passed at the earliest opportu-
nifty. giving such supervision preferably to
the controller of the currency, and the
savings bank section hereby pledges all
its aid and influence toward the passage of
such a law +t"
Mr.. E. Quincy Smith president of the
Union Savings Bank of this city, spoke in
favor of the resolution, and there was a
brief discussion, during which one member
suggested that it might be unwise to rec
ommend the passage of such law for the
District when no mention is made of similar
needs in many Of the states of the Union.
This objection was overruled, however, by
the large favorable vote.
1t is understood that the local savings
bank men have been anxious for the pas
sage of this sort of a law for some time
and have the approval of the controller of
a 6ca1n Nv, hal
efforts to secure 1t. Some local savings
banks are operating under charters OBJ
tanned In nearby states because of the lack
OF an adequate law for the District.
The annual meeting of the savings bank
section was very largely attended. Col.
Charles e. Sprague, the chairman. called
the body to order shortly after 10 o'clock
and introduced Rev. John M. Schick, pas
livered the invocation. Secretary Leslie M,
Shaw of the Treasury, who was to have
made an informal talk at the meeting, was
liable to be present because of cabinet
engagement and the principal address of
the morning was delivered by Mr.. Ridgely,
controller of the currency. --.-.-
Controller Ridgely's Address.
mo one will question the desirability, IL
nos necessity. of laws regulating the organ
ization and the operation of banks" said
Mr.. Ridgely in his opening remarks. Con-
tinuing, he said, in part: '"'
'If we are to have such laws, it is the
most logical consequence that the law
she uld not only regulate their methods of
operation, but provide system of eXamin-
alton and supervision to see that the crea-
tons of the law observe its provisions dur
ing their life, well at their birth. 1t
will also be found necessary to follow them
after death, and to provide for the admin
istration of banks which fail go into
liquidation. In fact, the administration of
irsolvent banks is very important part of
any system of state regulation, and one in
which the difference between good and bad
or Indifferent administration is very serious
In it's consequences.
IF the state gives a charter to a certain
number of men, authorizing them to estab--
lish the business of banking, and maHng
certain conditions as to the paying in of
capital in cash and the other ordinary re-
quirements of such organization, it
thereby assumes a responsibility for the
parentage of the new corporation 1t has
given it life and power and certain. stand
ing and dignity by reason of its state char
ter. 1t is only it's plainly logical duty to
continue its care and supervision through
out the life of the institution. 11,' o. ees
Il believe that what l have just said is
especially true of savings banks. The rec
ord of the American savings banks for hon
esty of management will certainly com
pare favorably with that of any other class
of banks, especially in those states which
have mutual savings bank laws and real
savings banks. From the nature of the
business, the character of your Investments
and the people you have for depositors,
there is more to oe feared from anything
which destroys the confidence of your peo-
pie. This makes it more necessary for you
to see that you are not placed in compete
ton with banks less ably and less honestly
conducted.
TT certainly will be an Improvement II
something like uniformity could be brought
about. and especially If the states with no
system of supervision would adopt some
good plan for bank regulation. A state
which creates a banking corporation and
gives ii authority to conduct the business
of banking, whether it be commercial bank
Ing, savings bank or a loan and trust
company owes 1t to its people to see to
1t, as far as supervision will do so, that
such bank conducts it's business honestly
and according to law, and 1t owes 1t to the
banks which are well and ably managed to
protect them from the dangers and compe-
ttion of those which are run in violation
of law by men who are lacking in honesty
or ability. or BOTH
Some interesting statements were made
by Mr.. b. F. Saul, president of the Home
Savings Bank of this city and chairman of
ers, in his address of welcome to the mem
bers of the section this morning.
Welcome by Mr.. Saul.
81 presume" he said. those delegates
from the larger cities, where the strongest
savings banks are located, will be sur
prised to find the savings banks Of Wash
ington are small institutions. but most of
tia large savings hanks of the country
are old institutions. great many being
more than fifty years old, while the Oldest
savings bank in Washington was organized
in 1891. only fourteen years ago. Ten years
ago the total assets of the savings banks
of Washington were less than s25OoO0; five
years ago they had increased to 81, O0O, 600,
and today the total assets Of the savings
banks are more than 1900. 000. From the
above figures 1t can be readily seen that
the age of the banks is the principal rea-
son they are not among Washington's
larger financial institutions
But Mr.. Saul went on to say that an
other reason the local savings bankssare SO
small is that there is no law for govern
ment supervision In the District and he
declared that he hoped the Bankers Asso-
citation would lend its aid In securing one.
Reports Received.
The reply to the welcoming address was
made by Chairman Sprague. Reports were
received this morning from Chairman Lati-
mer Of the executive committee and from.
Secretary William Manhart. This last re-
port showed an expenditure by this section