The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-11-25
COMMISSIONERS
JEALOUS Of NEW
BANK COMMIT TEE
Ewing Has Wrangle With
Leavitt Over Scope
of New Body
PLAN TO DISCUSS TT
State Board Members to
Meet to Discover
Their Status
FEAR OF REFLECTIONS
No Stigma Is Cast on Old
Board, Is Statement
of Committeeman
PLAN TO DISCUSS TT
FEAR OF REFLECTIONS

Investigation by the legislative
committee on banking will not begin
until February, but already row has
started between the committee and the
state board of bank commissioners.
Cal Ewing, secretary of the bank
commission, and Senator Leavitt of
Alameda, who is mentioned as the most
probable chairman of the new COM
mittee, came together in Oakland yes
terday and had hot interchange of
words over the scope. and functions of
misssioners will meet in hastily called
session, 1t is presumed, to~discuss the
banking committee and see where they
themselves stand.
On the new committee are Senators
Wolfe, Leavitt and Curtin of Tuolumne
and Assemblymen Fisher, Stanton of
Los Angeles and Cutten of Humboldt
The bank commissioners consider
that the appointment of the new COM
mittee by the legislature is an insinua
tion against their ability to handle
banking In California. They have be-
come quite jealous.
On the other hand Senator Edward I.
Wolfe and Assemblyman Charles NJ.
Fisher, the San Francisco members.
said last night that the bank commits
sion had no cause for its jealousy.
But Ewing and Leavitt, who have
been close personal friends and politi-
cal associates and camp mates, have
found a point for bitter disagreement
on the matter of the committee.
There is no reason for any feeling
said Senator Wolfe This committee
was not formed to usurp any of the
powers or work of the commission and
its appointment is in no sense an in
sinuation that the bank commission
ers have been derelict in their duties.
Neither are we hostile to banks or
banking There are defects in the
codes relative to banking; for instance.
while a provision is made that banks
shall have certain reserve. there is
no penalty provided for a bank or
bankers who have not that reserve.
though parenthetically I believe that
If bank was found TO have violated
the law it could be prosecuted even
though the statute does not especially
provide penalty.
I'VE will recommend reformatory
legislation. It is not expedient that
the committee meet Immediately. so
we will not organize until the latter
part of January and will not get to
work until February. Should the COM
mittee start in now it might cause
feeling that the banks are not secure
and needed instant attention. but that
is not the fact. and nothing could be
gained by hurrying our investigation.
Our work will be completed during the
summer and will be submitted to Gov
ernor Gillett in a report and to the
legislature in 1909. with such recon-
mendations as we may agree upon. We
will follow out the general limo of the
Hughes insurance investigation in New
York"
Assemblyman Fisher declared that
the committee would undoubtedly rec
ommend changes in banking laws.
Now the reserve may be only Is
per cent Of the deposits" he said. but
F. w. Anderson and other bankers who
were before the legislative committee
in Sacramento stated that 40 per cent
of deposits should be kept on hand in
certain cases. The federal laws pro-
vide for a % per cent reserve, under
stand We shall probably base our
reforms largely On federal banking
laws"
The local banking situation was still
yesterday following a quiet and more
bracing weeks business. The New
York situation is fast becoming normal
conference between fnanciers and
officials of the treasury department
having produced healthy effect.
Christmas shopping is picking up
with the return of confidence and gold.