Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-17
SECTIONS MEET TOGETHER
Address of Welcome From Governor
Folk.
PRESIDENT HAMILTON'S REPLY
He Says the Present Method Of Pay
ing Bank Examiners Is
.sle All Wrong.

ST. LOUIS, MO-, OCTOBER 17.-The OPEN
ing regular session OF the thirty second an
hual convention of the American Bankers
Association was called to order this morn
ing in the Olympic Theater by President
John L. Hamilton of Hoopeston, Ill.
The many different meetings of various
branches of the parent convention divided
the attendance yesterday into groups. but
today the full attendance of delegates was
centralized in the general convention.
Right Rev. Archbishop John ]. Glennon
opened the meeting by reciting the Lords
Prayer. David r. Francis Of ST. Louis de-
livered the opening address of welcome,
followed by welcoming addresses from Gov.
Folk of Missouri Mayor Rolla Wells of st.
Louis. and ]. C. Van Blarcom, president
OF the National Bank of Commerce Of st.
Louis. who is chairman of the reception
committee.
President Hamilton Speaks.
President John L. Hamilton said in his
annual address:
The examination of banks has been
brought to the attention of the public by
the recent failures of both state and ma
tional banking institutions: and small
amount of blame has been attached to the
management of these departments both
state and national, as 1t has been shown
that they have not been thorough as
they should have been In their examina-
lions.
The blame does not rest wholly with
these departments, but should be shared
by the lawmakers both state and national.
The attention of Congress and of the state
legislatures has been called, not only by
the controller of the currency and the man.
agement of state banking departments, but
by the bankers individually and through
the different state associa tons as well as
by the American Bankers Association, to
the fact that there are not enough exam
liners to properly do the work.
The wages that an examiner can make
are not in keeping with the ability required
nor with the wages paid men in like ca
pacity in banking institutions. The result
IS that 1t is hard to get. and to keep for
any length Of time men of ability as ex-
amners.
The present method of paying examiners
so much for each bank examined Is all
wrong, as in order for an examiner to make
an ordinary living more banks must be
assigned to him than he can possibly ex-
anime thoroughly.
Bank examiners should be paid a fixed
salary, commensurate with the responsi.
bity of their position. and the number OF
examiners increased so to make the ex-
aminations more thorough. The banks
would be only too glad to have them made
so, If possible, but 1t is not possible under
the present laws.
The blame rests with our national Con-
gress and not with the controller OF the
currency, nor with the bankers. for time
been called to this very condition.
There is no good reason for the niggardly
manner In which our national bank exam
liners are paid. The national banks of this
country would a thousand times rather pay
an unnecessary additional expense for ex-
animation than to stand the odium that 10
placed upon them through no fault of their
own. If the examinations must be paid for
by special tax on the national banks.
then make il, and make 1t high enough to
employ more examiners and pay them sala-
ries in keeping with the services required
There is, however, no need for special
tax to secure more thorough examination.
The national banks of this country are pay
ting annually 81 TS4 600 in tax on circulation
In excess OF the amount of expenses of the
controllers department. Why not use a
part of this fund and secure better service?
The fact is. that from the head. of the con-
trollers office down, there is not man
whose wages are commensurate with the
responsibility of the position he holds and
yet being political positions they dare not
complain. When 1t comes to point that
through the lack of proper facilities the
banking interests OF this country are made.
TO suffer 1t Is high time that we demand
that the blame be placed where it properly
belongs-with Congress.
Favors Ship Subsidy.
The press of the country. in its eager
ness for sensational news, makes too much
OF every bank failure and aims by it's ar
ticles to make them as sensational as pos
sble When a report is made of failure
the public Is led to believe that every dol
lar of every depostor Is lost and the en-
tire savings of thousands are swept away.
This has led many to commit suicide and
other acts OF desperation. at the same time
creating an unrest in the minds of the
public so that without reason, upon the
slightest rumor runs have been started
upon other institutions While we deplore
the actions and have no apology for bank
wreckers, yet great injustice Is done our
perfectly sound and solvent institutions
through the press in.i eagerness for SEN
sationalism.
The bankers of every state and of the
nation stand as unit for equitable laws
both federal and state, that will give pro-
lection to the public When defects in our
laws come to our notice the bankers,
through the mediums of the state and
tional bankers associations, stand ready to
present and will present at the first oppor-
tunity such recommendations for laws to
the proper authorities as will cure the de-
fects.
There Is considerable agitation for fed
eral state or municipal ownership of public
utilities. Just what is meant by this
what institutions would come under this
head l have not yet seen clearly defined.
1 am opposed to all such political bun
combe. no matter where 1t may originate,
and favor only such laws will give to
every man right TO successful competi-
ton, at the same time preventing the Gre
alton of a monopoly in any business or
profession.
While l come from a country town, and
while our city is as far removed as pos
sible from any great body of water. yet 1
favor a ship subsidy measure that will
place the United States at the head of the
merchant marine of both the Atlantic and
the Pacific. 1t seems to me to be mar
row and contracted policy for any man to
oppose any such movement and no good
reason has come to my notice why this
nation should not make an effort to have
the commerce OF the country carried In
American vessels under the American flag.
Ninety-two per cent of our business or
over s2oOOO0.OOO annually, is paid to foreign
vessels for the carriage OF our products.
This should not be. We owe 1t to
ourselves and to future generations to build
up merchant marine that will not only be
able 10 carry the rapidly multiplying prod
ucts of our nation, but will be the means
OF carrying our products to foreign mar
kets. regardless of the possibility of any
discrimination Of carriers, brought about
through the influence of any foreign pow
er. To say nothing OF the advantages and
the greater safety that will accrue to our
nation TO have such vessels easily con-
Vertible into cruisers Of d1Dsnse in case of
any open hostility against US.
The ultimate completion OF the Panama
canal is of great Importance and will be Of
great benefit not Only To the s0lrth hut