The daily morning journal and courier., 1907-06-05
BANKERS MEET AT CAPITAL
ADDRESS BY L. M. SHAW
c. c. Barlow Elected Chair man of Executive
 Committee.

Hartford, June 4.-rfe eighth annual convention of the Connecticut Bankers association was held at Hartford Golf club house to-day, with president Alfred Spencer. jr.. of the Aetna National bank, president of the association. pre- siding. and the Hon. Leslie M. Shaw, president of the Carnegie Trust com pany of New York. and former secre-. tary of the United States treasury, the guest of honor
 The following officers were chosen:
 President. w. E. Atwood New Brit ain; vice president. B. c. Bryan, Wa terbufy; treasurer, E. G. Camp. Mid dletown: secretary, c. F. Hoyt, South Norwalk executive committee, C. c. Barlow of New Haven chairman: M. H. Griffin of Bridgeport, J H. King of Hartford, w. II. Phelps of Winsted, o. H, Brothwell of Bridgeport.
 The principal address was by Mir Shaw, who spoke, in part. as follows:
 Our financial system is by no means perfect. It is good, but 1t ought to be better Paramount among its weak nesses, in my Judgment, Is the immo- bllity of our credits. Our manufactur- CTS and jobbers possess not only mill lions, but billions, in credits which should be available. The only credits which we now employ are bonds and mortgages, bills receivable, sight drafts and checks. Money due for goods ac- tually delivered is immobile and we'll nigh unusable. An accepted bill of ex- change drawn against actual value in the regular course of business, falling due in ninety days, is the best paper a bank can have, and these evidences of debt should be as current as similar evidences of debt payable at sight. If congress would remove the require- ment of reporting the contingent lia- bility incident to the indorsement of 8 domestic bill of exchange drawn against actual value in the regular course of business as a re-discount, wonders would be accomplished. This would enable the wholesale merchant to use acceptances, and if he could use them he could give his customer better terms, and gradually the system com mon in other countries would be adopted with us and we would thus have current credit, if not credit cur rency, as elastic as business itself.
 There would remain however, one great weakness In countries where this class of credits are current the large quasi government central banks accept them and issue currency in their stead. usually taxed at high rate, Our national banks should be permitted to accept these credits when excessive and issue currency against them, but to avoid imitation this cur rency should be taxed not less than 5 per cent.
 "These two notifications of the na- tional banking act in my judgment would remove all possible danger of a currency famine, and prevent, as far as it is possible to prevent by legisla- ton, financial panics.
 "There is a great difference between a panic and a period of industrial de- pression. A cry of fire will sometimes cause a panic in a crowded building, : though buildings sometimes burn : without causing any panic. It may be . impossible to insure against loss by . fire but we ought to possess such safeguards as to remove the causes of . sudden alarm. We will naturally and
 inevitably have recurring periods of depression, but we ought to protect ourselves from palfics."