New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-18
RELIEF FROM ALBANY.

Believing that trust companies. If they do
banking. should give the public the same safe
guards against financial vicissitude as the banks
have long been required 70 DO. the heads OF the
national and state banks IN this state had bill
introduced at Albany at the beginning Of the
present Legislative session rhta pro
vlded that every trust company in New-York
City should maintain a IS per cent reserve, half
OF which should be IN its own vaults. and half
in the keeping OF another trust company or a
hank, subject TO call. Elsewhere in the state
the trust companies should maintain 10 per
cent reserve.
The attack on this measure by the trust com
panies was SO vigorous that the prospect Of
passing the bin at first looked dubious. The
leading exponents OF the trust companies as
serted first and most strongly that these insti-
u lions were as secure against panic as the
public could expect. John p Borne president
OF the Colonial Trust Company Of New-York,
ard president and spokesman Of the State As
ISOLATION OF Trust Companies, made the state
ment that IN the last tea years. although the
deposits Of the trust companies in this state
had increased from S3OOOOOOO0 TO S1,OO0O00,-
600 yet there were only two failures Of these
institutions. and IN each case the depositors did
not suffer loss. Trust companies. he also said,
cid not need such a large reserve as the bill de-
msnded because they did only one-fourteenth
OF the exchange business that banks carry on,
because also they had a vast number OF time de-
posts. not subject 70 immediate call, and couse-
Quently their moneys were not so plastic as
those OF banks.
The bankers. however. combatted such argu-
rnents so vehemently tina. some time later the
trust companies consented to the passage OF the
bill II amended 20 require a smaller reserve.
Finally they agreed that Il should provide that
each New-Yor1r City trust company should keep
10 instead OF a Is per cent cash reserve, half
OF which should be IN its own vaults and half
on deposit IN another trust company or bank
In addition. 81 should keep a 8 per cent reserve
IN bonds OF the United States or the State Of
New-Yorlz
Although the bill as amsnded was not salts
factory 70 the conservative bankers. neverthe-
less they agreed that IL Il could pass IN such a
form Il would be far better than nothing. Two
thirds OF a loaf IL better than hunger" they said
Senator Stevens and AsssmblymAn wainwright
chslrmen respectively OF The Senate and As
ssubly Banking committees were accordingly
left by both sides 20 see that Il was passed
The Senator and AEsernblynAn. however. IN
stead OF uniting On BILL are each backing
different measure that there is fear thai
In spite OF ell that has been done the legisla.
ton VIII be endangered The two bills. how
ever. are so nearly alike that Il would hardl,
ApchA lA@1SADtc AOE Az. BLeReIe ana Mr.. VAIN
wright % thwa-t each other through a failure q
sgre~ The Wainwright bill provides for & IS De
cent reserve. distributed as described above Tn
Stevens bin Is The Wainwright BIZ amended so a
20 include the bonds OF eny municipality IN thi
state The Stevens bin has passed the ssnat
and IL IN Mr. Wainwrights committee Tn
Wainwright BIZ is expected TO pass the Assem-
bly, Tuesday, when It VIII go to Mr.. Stevens
committee
The attitude Of the bankers toward tn
amended Trust Company Reserve bill IS well ex
pressed by Alfred II. Curtis, president OF IN
National Bank OF North America, of this cit,
and also president OF the New-York State Bank
ers Association The bill as agreed on by n
banking committees OF Senate and Assembly
he said yesterday % q Tribune Representative
lis not what the bankers OF the state hoped 10
but ~ ts q step IN the right direction. We ha,
the greatest confidence In Senator Stevens ar
Assemblynan Wainwright for they are NJ
what are known as professional statesmen.
The public at last has awakened 20 the IA
that banking without reserves is a danReror
condition OF affairs. and the demand for a r
serve law for trust companies is almost lInive
sal Many trust company officials who we
never heard % say one word in favor OF a :
serve now publicly admit that a law Of I
kind would be welcomed. Yet Of course. tn