The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-09-25
Speakers Give Views at Ban
kers' Convention.
Strongest Demand For Postal Savings
Banks From Sections Where Dishonest
Methods Betray Trust Of Depositors.

William Hanhart. secretary Of the saw
ings bank section OF the American
Bankers Association, In a speech before
a convention OF the association today
on "Uniforn Laws for Savings Banks
In the Various States said that M many
national banks had savings departments
conducted with the permission OF te
United States Comptroller. whose saw
ings should be safeguarded and pro-
tected by national legislation, Mr..
Iianhart suggested the desirability OF a
Federal statute regulating the business
under the following conditions.
ut Ia not possible, nor would II be
desirable or fair. that savings banks
should be preferred creditors but in per.
Uniting banks TO open savings depart
ments. the deposits received In this de-
lpartment should be segregated and in
vested In the usual eastern savings bank
proportion, that is, say 90 per cent In
, loans on bond and mortgage on a sc
per cent valuation, and the remaining
40 per cent in United States, State, mu'
nicipal and first mortgage nilroad
bonds. This would give a great secu.
sity and stability to that branch Of the
business, and at the same time, and "a
certain extent, accomplish an object
which has been the subject of much
discussion within the last few years
that Is, the investment OF deposits Ia
national banks In loans on real estate
Such legislation as / propose, whilst
committing national banks to invest in
realty loans, wonld perforce limit thu
amount OF such investments to 90 per
cent Of their savings deposits, and nc
one. / think. would seriously object tC
this"
'The cash reserves, | think. should
be kept on the same percentage basis
as their other deposits, although thi;
Is matter that could be further dis
cussei; smaller reserve may be found
to be quite sufficient. You are aware
that In our large Eastern savings banks
per cent reserve Ia considered a con-
seryatiye one, and rightly so. for saw
ings bangs deposits. although usually
paid on demand, yet are subject at any
time, or may be made absolutely sub
iect to n notice varying from ten to
ninety days. might here mention that
the new Connecticut law regulating
savings departments exempts such de-
posits from the cash reserve provision,
which applies to their commercial de-
posts.
Another advantage Of the proposed
law would be that il would tend to set :.
tie to some extent the question of pos.
tai savings banks. which has been so
ably discussed this day by Mr.. Harwood,
because it would provide a safe depos-
itary for savings in many small places
having a national bank, but where the
conditions do not warrant the estab-
fishing of a bank doing onlys savings
business, ! think our savings banks are
nearly all opposed to postal savings
banks, and ! would now refer to the
many reasons for this opposition. but
to my mind the one paramount objec.
tion TO the Government Postal Saw
ings bank is that our government should
not go into the banking business. al
though it has already established itself
in II TO some extent through the money
order system
William r. Greer, secretary of the
Cleveland Savings and Loan Company,
spoke on "Uniform Laws for Savings
Banks in the Various States.' He said
in part:
"Nlany states have exclusive savings
banks while in other states the national
and commercial banks as well as trust
companies have savings departments.
To properly safeguard the interest of
depositors it is not sufficient to enact
laws for the guidance and control of the
exclusive savings institutions, but tese
laws should apply wieh equal force and
be just as binding upon any bank or