Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-12
MI. Robert Blythe's Address.


been presented President Swinney intro
duced Mr.. Robert Blythe general manager
of the Union Bank of Scotland of Glasgow,
to make an address on the Scotch banking
system.
Mr. Blyth presented an interesting his
tory of the Scotch system to the conven-
ton. The first Scotch bank was established
in 1895. Today there are but ten banks in
Scotland, seven doing nine-tenthS OF the
business. The chief characteristic of the
Scotch system Is the right of the banks to
issue the Ell note, as the result of which
Scotlandsretains today her paper currency
almost to the exclusion of metal currency,
while the reverse is true in England.
Mr.. Blyth maintained that it was the 81
note that enabled the network of branch
banks 10 be maintained in Scotland and
that encouraged the savings of the poorer
classes. With the English 95 notes and
her metallic currency, he said, these branch
banks could not have been maintained. be-
cause of the proh.btive cost. The aggre-
gate deposits of the ten Scotch banks reach
$500, 900, 000.
Another distinctive feature of the Scotch
system is its cash credit account, wherein
a trader manufacturer is enabled to bor-
row from the banks temporarily by exc
cutting d bond to which he gets the sigma
ture of two or more friends along with his
own. The bank accepts the bonds and
honors cheeks up to the amount named in
it, obViating the pledging of securities. In
tereSt is not charged except on the amount
drawn. The uniform interest, discount and
commission charged by the ten Scotch
banks is distinctive feature. During the
last half century there have been but two
bank failures in Scotland.
A rising vote of thanks was rendered Mr..
B1yth at the close OF his address.
Benefits OF Membership.
The second address of the program today
was delivered by Mr.. Walker HILL presi-
dent of the Mechanics American National
Bank Of ST. Louis en- the practical benefits
of membership in the American Bankers
Association.
Mr. Hill spoke al length of the value of
membership in the association. He said, in
part:
In considering the benefits of member
ship in the American Bankers Association
II is proper to inquire into the origin and
purposes of the association-its daily work
and the character of its membership, and
there is no more appropriate place to con-
slider the origin and purposes of the Ameri-
can Bankers Association than the city of
Washington, the federal capital of the coun-
try, for one of the principal purposes had in
view In organizing the association in 1875
was to aid the federal government in re-
Stunning specie payments, and it is not
claiming too much to say that the asSocia-
ton gave most valuable aid to the govern
meut in putting its currency on geld basis.
Thus at the very beginning of its career
this association set before Itself wise and
patriotic purpose, and from that day to
this 1t as d body, and its members in
dividuals, have given freely to the govern
ment valuable assistance in carrying out
every financial measure which the govern
ment has undertaken. Indeed the aid which
the members of this association has given
TO the authorities; officially charged with
the financial interests OF the country, has
been not only frequent and valuable. but
in many instances that assistance has beer
practically indispensable, for had not the
governments proposals met with the APP
prevail of the American Bankers Associa-
ton and most of its members those pro-
posals would have been so discredited. botf
in this country and abroad, that they would
have been incapable of execution. This
association, therefore has not only an hon.
orable origin. but Ii has ever since taker
creditabie part in the financial problems
of this country. Indeed. there are few ii
any, other similar associations that Rave rem
dered more continuous and valuable serv.
ices to the government. Think for mo-
ment how much simpler and more success
fully met would have been the problems OF
that greatest of Treasury Secretaries, Sal
mon =. Chase, IL he could have called to his
assistance an organization such is the
American Bankers Association of today
The daily work OF this association Is OF
practical benefit to its members. though II
may be impossible TO measure that value ir
dollars and cents. But that the services OF
the association in detecting and capturing
criminals who prey on banks, and thus de-
tiers crimes against banks, Is of substantial
pecuniary benefit to the members of this
association must be admitted. Those mem
bers who are the victims of some crime
and find the cost of running down and pros
ecuting the criminal borne by this associa
ton have keen appreciation which can be-
measured in dollars and cents OF the value
of the membership in this association
The Protective Committee.
There may be some members who find in
the work of the protective committee the
principal value of their membership, but
not all are of this opinion That the wori