New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-18
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nlrL 10 AELLAL Trust CClfP4 NTES
We hope thar Senator stevens and Assem-
h-ynan Wainwright VIII come 10 an agreement
OIL NE trust company reserve legislation for
which each has done such creditable work 81 the
present session Of the LEGISLATURE. Both have
introduced bills which are nearly Identical the
Stevens measure being, 10 fact Mr. Vain
WT1ghrs original bllL amended IN only one par
Ccuisr Either bill, according 70 the major
iE OF DOM bankers and trust company people.
VII 50 further toward closing I'D the ever
widening breach between these two factors in
ne financial world than anything else that
has been attempted for many years.
boI1 Tie Stevens and the Wainwright bills
provide that trust company IN this city shall
Keep 10 per cent cash reserve, half in its own
vaults and half in Tie keeping Of another trust
company OF bank. Both also require such an
institution 70 keep an additional per cent re-
serve n bonds. According 10 AIr. Wainvriglt's
bIl, this extra reserve must consist Of bonds
OF TIE United States or OF the State OF New
YORK The Stevens bill includes both these
classes Of bonds 2nd, in addition, the bonds
~ any municipality IN this state. The reason
given for making municipal bonds also availa-
bic for trust company reserve is that New
York State bonds are ar the present tine ex-
fremely scarce, and not until the S1O1, 600 900
barge canal work is we'll under way will there
be enough state bonds 10 20 round The Stevens
BIZ passed the Senate last Thursday without
a dissenting vote and is now in the committee
OF which Mr.. Wainwright is chairman The
Wainwright bill is now on third reading IN
The Assembly, and, according 10 present plans.
Il IS expected 10 pass the lower house this week
and 80 10 the Senate committee Of which Mr.
Stevens is chairman. IT has been rumored that
each chairman is insistent on the passage of
his own particular bill We hone that this
variance OF opinion is NOT 50 uuyieIding as
has been represented and that a mutual agree
menI may be reached.
The conservative bankers Of this CITY and
As told elsewhere IN The Tribune this morning
many prominent trust company presidents feel
that the tine has come when the trust comma.
MES OF this state should keep on hand certain
part u their deposits. For the reason that tho
law has never required these institutions u
maintain reserves Ike national and state banks
they have been able 10 grow enormously. They
have yielded profits which have induced bankers
70 give up odd fashioned banking and 20 int
tie trust company business or while HOLDING
their bank connections. 70 ally themselves with
the trust companies. Ten years ago there were
in this state tLlrry-eight trust COMPANIES witt
about S3o00Jo000 depos IS To-day there ar,
eighty-One such institutions. with billion dollar
IN deposits. Or as much as is deposited in all III,
state and -arionGl banks in the state Tim,
the banking reserve for the whole state hai
been cut down 20 such On extent that man,
prominent bankers have taken alarm. The
say rlaT because such a tremendous amount o
banking is now done without reserves tn
financial structure q the state is becoming top
LeavE.
Although there are many eminent trust com