The Washington times., 1906-07-15
ROOM TO IMPROVE
on BANKING LAW,
SAYS Mr.. SMITH
Bill as 1t Stands IneffeCt-
i've as Concerns
Comptroller.
CANT ENFORCE RULINGS
Union Savings Official Dis
cuSSeS Broad and Liberal
District Law.

ADN - ~ AeA "
Among the important pieces of legis-
Iation which a generous Congress be
slowed upon this District at its recent
session there was probably none that
was OF more vital interest TO the fnan-
cial section than the act whereby the
savings banks were placed under the
supervisor OF the Comptroller OF the
Currency and required 10 furnish him
with sworn reports OF their condition at
stated periods.
z Quincy Smith, vice president or the
Union Savings Bank. in response 10 the
statement that he was understood 10 be
the progenitor of the present bblIi said:
4 am not the father of the savings
bank bill which you mention. l may
have been its great great grandfather.
or more remote ancestor. but l am
surely not its immediate parent
Began Nine Years Ago.
Ny father, F H. Smith, and myself
have been at work to secure supervis-
ION of savings banks in the District OF
Columbia since the year 1897, as I re-
member. We first brought the matter
10 the attention of the Finance Com
mittee of the House OF Representatives
IN that year, and were asked by the
chairman OF the committee 10 prepare
bill We secured copies OF the bank
ing law OF the States Of Massachusetts
Connecticut, New York, Michigan and
half dozen others having what were
then considered the best savings bank
laws We found upon going over these
laws that We had undertaken a pretty
large proposition 10 prepare a full
hodged bin, as the laws differed radi-
cl,ly i'm the different States In Niassa-
chusetts. for Instance. every bond
which Is a legal investment for the
funds of savings banks is mentioned by
name. and the savings bank laws OF
Massachusetts and New York are about
as large as "a city directory.
Failure at First.
We finally prepared a bill. which was
more or less general in its conditions.
but which fairly well met the situation
here When il was presented to the
Congressional committees We were told
that Judge Cox was preparing a code
for the District and that IL the matter
was suggested 10 him he would in
corporate a savings bank law in the
code. We furnished a considerable por-
tion of our data TO Judge Cox He
thought our bill too vOIuminOus and
suggested the preparation OF a short
chapter for the code. We prepared such
a chapter and sent Il to Judge Cox. He
disregarded IL entirely. but inserted in
the code the present very Inadequate
law under which any new savings bank
must be chartered to begin business
under District law. This chapter in the
code has always seemed to me 10 be an
impossible chapter. and il is an open
question whether the investments OF saw
irEs banks chartered under IL would not
be mainly confined to those described in
the Revised Statutes. which were en-
acted for national banks.
Lay Dormant Two Years.
We were rather discouraged with the
result Of our efforts so far and did not
take up the question Of supervision
again for two years, until another Con-
gross had come In. At that time we
took a new tack, hoping for the back
ing of the Comptroller. so l had a talk
with Mr. Dawes He seemed 10 think
supervision was a good thing. but there
were then really only two savings banks
in Washington, and he did not feel
enough interest 10 help push the legts-
lation along.
"A year OF more ago Mr Macfarland.
OF the District Of Columbia Commission
ers. began an agitation for supervision.
He sent for the executive officers Of
The savings banks, meeting them for
consultation. At his suggestion. and
after he had introduced the subject TO
M. Ridgely. I had a talk with the
present Comptroller. Mr.. Ridgly took
a decided interest. He said that the
bill if prepared for use in the Dis,-iot.
bringing the savings banks under the
Comptroller. the chief supervising off,
Ger of the United States, should be a
model bill and we hoped to have pass
ed a bill which would commend itself to
every jurisdiction In the country then
without legislation upon the subject
Made a National Issue.
a little later. as a member Of the
executive committee of the savings bank
section Of the American Bankers Asso-
citation. ! attended the spring meeting in
New York city The committee were
then helping Governor Herrick. Of Ohio
in his fight for supervision Of savings
banks in that State. I told them Of the
situation in Washington. and of the
coming comptrollers bill We were then
preparing for the bankers convention
which met here i'm Washington last Oc-
tober / returned to Washington
bringing with me an invitation 10 Mr.
Ridgely to address the savings bank
section upon the subject OF supervision.
and asking him If ne were willing TO do
so. that he read his bill at that meet
ing, and that we would then discuss II
with him. questioning him In the friend
Hest possible way. and making such
suggestions as might appear pertinent
The committee then offered TO have
passed a resolution indOrsing his bill
Offering also. II Il met with our APPROVAL.
10 have II introduced in each Of the
eleven States Of the Union which did
not at that time. and which today have
no supervision whatever over savings
banks or private banks.
First Scheme Impraetieable.
1T seemed 10 me that such legislation
TO be effective should bring ali savings
banks now chartered under the laws OF
Virginia or West Virginia unde. the
District law. I. therefore. called an In