Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-10-11
TWO THOUSAND MEMBERS THERE
when Presidents Name Was Mentioned
As Siguiylsg Civic Virtue, all
ApplauJcd
CHANGE IN BANKING LAWS NEEDED
Secretary's Report Shows That the
Association is Prosperous aud
Growing

Washington oct 1.-THE thirty'iirst
annual convention Of the American
Bankers association was opened IN tho
new National Theater here today with
more than 5000 members present Wei
coming addresses We're made By John
Joy EGson. president of the local bank
ers association, aud Commissioner Mac
Farand OF the district government
The bankers appmudod the mention
n President Rooseyclt's name as signi-
tying civic honesty.
Responding to the welcome Prcsi-
dent r. Y, swnucy Of the association,
declined the Keys OF the city, ON be-
half Of his brother bankers. to keep
their populations tnviolate should things
d, missing after they had gone.
PRIEST SWEENEY's ADDRESS.
We have cause TO congratulate our.
selves upon the abundant evidence that
the rast year has been in the main
marked by prosperity in all lines Of
business and comparatively few bank
failures have occurred Al such per-
iods have, however produced feeling
OF over confidence and lead to the FORM
ing of unsound industrial enterprises.
The few bank failures of the past year
are mostly traceablc TO excess loans
made TO such enterprises Of their pro.
motors. The present statutory pro-
visions OF the national banking act
NuIuag loans to any one Individual,
finn or corporation TO 10 per cent OF
the capital stock Of the ltuding bank
seem 10 be inadequate,
would recommend a change IN the
banking laws permitting banks 10 loan
opp-tcnth Of their combined oauIt' and
surplus TO one individual, firm or cor
poration and provide suitable penalties
for any bank violating the law At the
same time ! would recommend that
any funds passed to surplus be report
cd TO the comptroller of the currency
and be not thereafter allowed 20 be- IN
any way impaired under the same pcn-
mites and conditions as now prescribed
for impairment of capital stock These
amendments would tend TO remove the
incentive to excess loans and also pro-
vide larger loaning power to
the banks. similar provisions In
state laws doubtless would be
increased A much more serious abuse
lies IN the not iutreQuent act OF man
aging officers of banks making dis
counts 10 themselves out Of the banks
funds II IS an observable fact that in
q great number of bank failures there
have been found among their assets
tho worthless notes of high officers OF
the bank for the large ,oans frequently
without any security at all, or with
straw security which proved to he
absolutely worthless This H. a most
ildgrant and repreheusiblo violation Of
law, TO say nothing Of business ethics,
il Is the essence of personal dishonesty.
lt is "a wanton disregard for the FUN
damental conceptions that such officers
are the chosen guardians Of 4 trust
fund. 1t opens wide the door to pre-
Narlcation and fraud and Il Is travcs-
ty upon legitimate banking, We should
urge Congress to deal vigorously with
these abuses by pronouncing them as
felonies, with extreme pains ana PEN
alties; and we should urge this ASSOC
citation and the state bankers asSocia-
ton to take this matter before their re-
speCtlve state legislatures so as TO COM
pei protection where there " wanting
official Integrity and a proper sense Of
nroprlety, ON the cver-preseqt Dues
ton Of the country's currency system,
THIS association spoke at san Francis
60 two years ago. We all agree that
quality and not quantity comes first.
Largely through the influence Of our
association quality" has been forever
assured. No current in the world rests
on more firm and solid foundation to-
day than does ours on the question OF
quantity your voice will be no less
potent and eventually decisive
'Fnancers differ as TO the proper
methods Of assuring at all times Il
currency ample but not redundant elias
nc but not capable of Interior manip-
ulation. Asset currency and "emer-
gency currency are terms not yet cap
able Of exact dehnitude, Il has been
snid that fools often rush IN where
angels fear to tread" In considering
ms question let US not emulate tho
former nor arrogate 10 ourselves the
wisdom Of the latter but as conserva-
i've patriotic, business men may we
solve the question Alright. and having
once made up our minds, have the
courage 10 enforce our convictions"
SECY. BRANCH's REPORT.
Interest was manifested IN the an
hQal report Of Secy James r. Branch.
winch showed that the membership and
resources of the association have in
creased as follows.
Paid Annual
Memberships Dues.
sept, /, 1915 ........... 4 500 II e06