New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-06
AFTER RESERVE BILL.
Trust Company Men Flock to Hear
ing at ALBANY To-day.

tn. hearing of the Trust Company Reserve bill
takes place in Albany to-day. and several repre-
sentatives OF banks and trust companies have gone
argue the measure. The New ork Trust Ooiii-
many Association will be represented by John Il.
Bourne OF the Colonial Trust Company, president OF
the association and George w. Young Chairman VI
the board OF directors OF the United States
-. -. r-or,nary and several lawyers Mr..
Young went to Albany yesterday to look the GROUND
over In nrenaraton for the arrival of his colleagues
The banks Will be represented by W. a 'asa
president of the Corn Exchange BANK Aiifeu ~
Curtis president OF the National Bank Vi VII
America; Alexander Gilbert prsslueh1 ,"
Market ana Fulton Bank: A A. Knowles vice
president of the Mechanics National Bank w. ~
Mover president OF the Mechanics ana Iraueis
Bank; A. s. FTssell. president OF the flfth ave
nue. Bank and r. Ross Appleton, president Oh 'he
Fourteenth Street Bank. They Will take no lawyers
with them. The first speech will be made by MI
Curtis, and Mr.. Nash will probably follow him.
The bill requires all trust companies in cities Oh
than 10000 to carry cash reserve OF at least
15 per cent Of their deposits. One-haf or TINS
a mount must be carried in their own vaults. ana
one-half may be carried on deposit with other
trust companies or with banks. The banks say
that the trust companies are principally engaged
in the banking business and should be compelIed
to keep a cash reserve just as the banks are Inc
trust companies say that the majority or their
donosits are trust funds and long time deposits.
against which II would be unreasonable TO require
them to carry a cash reserve. But not al ut
company presidents agreed on this ana many
OF them are willing to carry cash reserve OF ~
per cent. Festus J. Wade, president OF the Mei
camille Trust Company st. Louis, said yesterday
The future of the trust company depends enufeIy
upon the safe and sound management OF uIS
ecutye officers of the various corporations nlCn-
ont a cash reserve they as helpless IN tliar
cial storm as a ship on the ocean during huIIi-
cane Why any trust company official would n ,-
tate to keep cash reserve Of TX per cent against
his deposits is beyond my comprehensloh ne
trust company Official who carries no cash reserve
is unjust TO his depositors. unjust to his stock
holders unjust to himself. take II to be the duty
of an executive officer OF any financial institution,
first TO protect the money of his depositors; sec
ond 10 protect the money of his stockholders;
third TO make dividends. A trust company doing
ba king business whose executive fails to carry
a strong cash reserve. is playing with fire. is
reant by jeopardzing the interests of the deposit
tors who have intrusted their funds with the in
stitution ne happens to be president or ana py
jeopardizing the good name OF the institution he
presides over and his own good name l not only
advocate a stiff for trust companies; go
further. advocate rigid, expert examinations at
frequent intervals during the year the pubhcatlon
of statements every time the Controller OF the Cur
rency calls for one, and last, but by no means
leSst. governmental supervision OF every financial
institution be II State, national, private or pun
lie bank a trust company or corporation. or indi-
vidusl who acts as depositary for funds OF cltt-
zens Of the United States.