The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-17
BANKERS FOR REFORM
Committee Named TO Draft
Elastic Currency Bill.
Commissioner of Banking Jay, of
Massachusetts, Says One Surety
Company Reports One a Month for
Twenty-Five Years - Urges Closer
Inspection by the Directors.

ST. Louis, oct. Accommodations OF
Banking Pierre Jay, or Massachusetts,
estimates that bank embezzlement
case comes TO light somewhere in the
country every day in the year.
The president Of a surety company
told me that his company had averaged
a bank embeZZlement q month for
twenty-five years Mr.. Jay told the
American Bankers Association tonight.
when you consider that there are
eight or ten other companies of the kind
and that two out of three small embez-
elements are not heard Of, the number
viii be seen to be surprising
Mr.. Jays idea is that better systems Of
accounting will remove much Of this
loss
However serious minor employees en-
bezzlements may be. he added. they
are not to be compared to the disasters
caused by bad investments Of which
Chicago. Philadelphia, and Boston have
had such fragrant cases in the last few
months.
Accounting systems do not reach such
cases, the speaker remarked. The only
safety is in closer inspection and greater
care by directors.
VIII Draft Currency BILL
Despite objection by bankers from Mis-
souri,. Massachusetts. and PennsyIvan
the currency. conference adopted Ieso.u-
| lions turning over its work TO the execu-
tive committee OF the association. Those
who protested wanted committee con
! sisting Of a member from each point
where q subtreasury is situated
TIE committee will meet in Chicago No
vember % to draft an elastic currency
1 bin for submission TO Congress The
resolution included a declaration that:
| L The present supply Of currency is
/ inadequate
>. The currency is not sufficiently fexi-
| bic TO the needs of agricultural sections
s. That changes in existing banking laws
/ are necessary.
Among to-day's speakers were Myron
/ T. Herriek, Comptroller Ridgelev, and
YeijerO Ono. a Japanese inancier
WnshingtOnians Present.
There are several weiI-known Washing
tonians present. One Is Milton f. Allies.
vice president Of the Riggs National
Bank. and one of the vice presidents Of
the association. He is a member OF the
executive committee, and takes a lively
interest in al the affairs Of the great
body of financiers
W. Y. Cox. president Of the Second Ma
tional Bank. was appointed a member
of the committee on legislation at the last
convention. and will have coed report
to make Of his labors during the year.
The trust company branch, which has
an organization distinct from the parent
+ body of bankers, has prepared a pro-
gramme Of great interest TO its members.
Edward J. Stellwagen, of Washington, is
a member of the executive committee Of
/ that section.
] E. Quincy Smith. also Of Washington.
is also a prominent member of the saw
! ings section Of the convention.
Growth OF Trust Section.
The report of Secretary James R.
Branch. of the trust section, showed that
the close of the fiscal year, August 81,
1893, 63S members had paid their dues,
but owing 10 Withdrawals and liquida-
tons, % were dropped from membership,
leaving Go. One hundred and thirteen
trust companies were adGGd to the rolls
since September 1, 1865. charging the
present membership to rs, the largest
! in the history of the section