The Montgomery advertiser., 1907-08-01
BANKERS OF ALABAMA
And Their Relation to the Negotiable Instr uKnent Bill.

Editor Advertiser-The opposition to developed in the debate in the Sem ate the other day, seemed to consist largely of the idea that 1t is a bankers bill. in the special interest of the banks. and being now championed by swarming lobby of bankers The only banker who has been to Mont gomery in the interest of this bill during this session is myself in my capacity as chairman of the Legisla- tive Committee of the Alabama Bank CTS Association. Mir. Michael Cody, one of my associates on the comittee, who lives here, has been doing his duty in his own home city in working for the bill. Others may come later and ought to come.
 The truth of the business Is, this Is not bank bill. Its paternity and it's promotion came from the legal pro- fession, and from the ablest members of that high vocation. Just as all legal reforms do come and should come. Bankers are not the only people who make and take, buy and sell commer- cial paper. Everybody does. more or less, deal in commercial paper, for what Is a simple, every day bank check but a negotiable bill of exchange? And
 
 bank the debtor.
 This bill pending before our Senate is founded son the English Bills of Ex- change act, a great reform in the com mercial law of England. wrought by the lawyers of that country. The law yers of Alabama were the first to draw the attention of the profession in this country to the necessity for the same | reform here, our law merchant" or law of commercial paper being scat tered through the codes of the states and territories and hidden away in the decisions of as many supreme courts. The American Bar Association some seventeen years ago, began the agita- ton which ended in the formulation of this bill, its prime purpose being to bring order out of cnaos, and com ing to the bankers of Alabama under the high sanction of that body of great lawyers, under the added sanction Of the Bar Association of Alabama. com posed of lawyers who are their ad- visers in their daily business; with that other high sanction of having been enacted into law for the District of Columbia by the Congress of the United States, examined. approved and voted for by the great lawyers who adorn the American Senate: coming under all these sanctions and proofs that 1t Is a wholesome and sound and pro- gressive reform, are the bankers Of Alabama to be blamed for taking 1t up and Joining with the State Bar As sociation in appealing for its passage?
 The banks are the largest dealers in commercial paper, The leading bankers of the State have themselves read the bill and their common sense approves it. It is principally other peoples money which they risk. the money of their depositors, when they buy com mercial paper, make loans and dis counts Is 1t matter of wonder that they want the law Of commercial pa per as definite and as plain as lan- guage can make it?
 Time has been when 1t made little difference in Alabama hat might be the law of commercial paper In other states. Our main dealing with other states was the yearly pilgrimage Of our bankers to New York to re-dis- count the notes of their customers based on the cotton crop. All that has happily changed and millions of com mercial paper. based on cotton and lumber and iron and coal pass from other states through the banks of Ala bama, and from Alabama people through the banks of other states and it Is becoming vital that they know about this paper. what law controls It, what are the liabilities of the parties to it. and what steps they must take to protect themselves in dealing in 1t. Their customers are as vtally con- cerned as the banks.
 Banks are the last institutions on earth that would promote swindling and help on the sharper, The least sus- picion of that sort would sound the death knell of any bank. The banks stand for square dealing. for honest dealing. Whatever may be any indivfd- uars rule of life. he expects and de- mands of his bank the upright, honest thing. Every hour of business day every bank Is on the lookout against the tricks of the swindler and the wiles of the sharper With all their watchful- ness and experience. they are every little while out -witted by the very sharpers whom the distinguished Sena- tor Marshall fears they are trying to aid and comfort.
 If Is because the bankers believe in the purity and genuineness of the high sources from which this bill springs, and because they believe 1t will be of material benefit to themselves and to their depositors and 70 the great pub lie all of whose members sooner or later use and need and must have credit at the bank, that they advocate inc measure and ask for its passage.
 Chappell Cory.