Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-25
WON BY WASHINGTON
DEBATE BY BANK CLERKS FOR
TROPHY CUP.


and the Washington chapters of the Ameri-
can Institute of Bank Clerks which was
| held last evening in the George Washington
University Hall. the Washington represent
tatives were victorious and the trophy cup
was awarded TO them. The winning debat-
ers supported the affirmative of the propo-
sition: THAT the national bank act should
be so amended as to provide system of
Insurance of deposits The enthusiasm OF
the large audience was verified after the de-
c,sion
Each side was allowed three direct
speeches and one rebuttal speech. The
Washington bank clerks who were VIC
torious were Lloyd NJ. Tilman, Samuel j.
| Henry and Frank 3. Devereux. The Balti-
more team was composed of Clarence X.
Evans, w. Harry Ewalt and William S.
Hammond. Mr.. Henry spoke in rebuttal
for the affirmative and MIR. Evans for the
negative.
John Poole president of the Washington
chapter. presided and announced the speak
ers. The decision of the debate was in
trusted to Ashley M. Gould. justice of the
District SUPP enc Court: Charles z. NELL.
United States commissioner of labor. and
DIR. Fabfen Franklin editor of the Balti-
more Evening News.
Washington team wen. it was conceded.
because of their superior oratorical abilities
and their careful outline and division of the
arguments for the affirmative. The Balt-
more speakers duplicated in some instances
and confined themselves to a large extent to
their manuscripts.
Arguments Advanced.
Mr.. Tiilman of Washington, the first
speaker took up the advantages of an in
surance feature in the national banking act
He pointed out that this would insure the
full return to depositors of all the money
they intrusted to the banks: that the de-
posts, under this agreement would increase
by leaps and bounds. and thus more money
would be put in circulation. The greater
confidence which the system would insure
would, IN his opinion. avert the damaging
ana dreaded bank runs and stringency in
the money market. The problem of a cur
rency would be solved by the confidence
! thus established in the institutions issuing
the currency. And such safeguard would
De an additional check on the bank official
to be honest and conservative
/ nat the amendment is not expedient or
necessary was the argument of Mr. Evans
tor the negative. He pointed out that the
deposits i'll the state banks, although the
state institutions have failed more often
state institutions have failed more often than
the national banks, have increased much
more than those In the national banks thus
indicating that deposits would not be in
creased with the insurance of deposits He
discussed the present law at length point
ing out the various safeguards which it has
provided. Although the matter has been
NASSusStd lOi tWGUiv years or more. he said,
II has not been approved by any legislature
in the country.
Mr.. Henry, for the affirmative maintained
that the principle advanced in the affirma-
i've was sound and practicable and that
the national bank act, in spirit and words
is favorable to such measure. The plan
OF lnsuring notes against banks has been
tried in various states and when the sys-
TEN Ialied 1t was declared that the failure
was due to the details of the system pro-
yided rather than to the principle AS the
present system has been working depositors
in national banks have been compelled to
stand an average loss each year of sSO0,00o.
Although the law provides safeguards this
loss would indicate that further safeguards
are necessary.
Refers to Bank Failures
Some of the detrimental features OF the in
surance feature were discussed by MIR. Ewalt
of Baltimore. He pointed out that since
the passage of the national bank act there
have been only 469 failures Of national
| banks, 512 per cent of the entire number
and the loss TO depositors amounted to only
S-lQO of l per cent of the total deposits
With such a small loss, he asked where IS
the need for insurance? He further main
tanned that inefficient men would be put in
charge or banks and officials would be care
less and would engage in undue specula ton
! II the deposits were insured by a national
fund. In no other line of business IS the
percentage OF failures SO small as IN the
national banks.
Mr.. Devereux spoke of the practicability
OF the system He stated that If every
national bank. since the esta blishment of
the first one, had paid In the small sum of
500 per year for an insurance fund the
losses to depositors of $50 600 900 would
nave been paid and surplus of about
100000 would still remain At the time
of the Walsh bank failures In Chicago re-
Gently the clearing house of that city ran
railroads and operated mines, he said in
order to protect themselves and to pre-
vent panic In the city. The only way to
prevent repetition Of the panic of 1888
is TO adopt this insurance feature, which
prohibits Lack of confidence in the banking
institutions.
Mr.. Hammond for the negative main
| tanned that a strong man does not need
physician, and no more do the nation n
| banks Of today, strong as they are, need
change. Excessive bank loans have been
the usual cause of failure in the past, he
maintained, and this new system would
not prevent such excessiveness of loans
The Rcbuttal.
| In rebuttal. Mr.. Evans for the negative
| discussed several arguments of the op-
| ponents, particularly maintaining that con-
| hdence in national banks was increasing
! now, and such an insurance feature was
| not needed. In concluding the debate Mr.
| Henry argued that losses In the past
| showed that new safeguard was needed
| and that the losses in the past were small
| only showed that the cost of insurance
would be small. The additional business
| would pay the cost Of insurance. for an
| increase in deposits of $1,000 per year
| would net $3.50 at 8 per cent which would
cover the insurance.
Justice Gould made the announcement of
| the winners and presented the cup. The
cup was donated by the past presidents of
| the Washington chapter, w. F.. d. Her
ron, George w. White, George o. Watson
| and Francis r. Dooley. While the judges
| were deciding the question Miss Edith
| StoweH Master Peter Becker and Mr..
Charles G. Woodward entertained the au..
| dience with some musical selections
| The reception committee composed
| of Wallace NICK. Stowell. chairman; E.
| Percival, Arthur G. Plant, f. Bernard
| Stevens, Albion K. Paris, ir, Albert II.
| Bedford and A. Rertram ClaXton.