New-York tribune., 1908-09-30

to be wes strongly brought home when on nm AugIss M
l2 1907 New York City offered $lbeoooesy ~ OF oniy
safs.s5 s9nas s. per cent ana re'slve1 D.a -
The trust companies of New York City were 10 10
large extent depositares of the funds institu-
inactive of banks, bankers and rnamcaiii a s,ould
ike everv member Of this ASSOCIATION appreciate
Just how y,en9 ir Id Gy to their depoo
under conditions which have never peel ei7 S3si
on June T. their deposits dropped to $S.oes'iS s1 D1
December l9y 1861, In other wr woTas. during this
neridd the enorrnous sum of sisO75s,oo or 42 per
cent of their total deposits
NEED OF GOOD FINANCIAL LAWS
YORK are directed to prevent abuses and to frus,
trate efforts the part of those haVlns uding 70
% the security Of depostOrs and further
to restrain investment IN NAYS and We'll thought
out as they are. in every way m nod~'5 i trust
S6hep C6pan% nmd BANKING legislation follow are
after al Of prime imp9rfaRoe cannot be created by
law bad banking may in many ways '0
The lesson that has been taught by last year,s ans
experience will last long as me a, f actiStv
Tbe S of sound banking has never been
complete M e and 6 sTssPing anh handicap of
anomalous currency system whcn incad NE mpon more
. will in the near future be pid'eU "P
solid and scientific basis
Joseph n Babcock. trust officer OF the iIus'
Company America. New York. read pap snp'.aaoa |
Securities Held in Trust, in Wrhch le uis ~
methods for the control and the safeguarding u
such securities from loss anu Aoi nv ~
counting of the same.
Mr. Babcock gave account OF the ciasSiiIa.o 40,
of securities and valuables held IN lrus'' anu -
described the way In which complete records OF
vaulables are kept by all companies III S'-o ~
or other He said, in part:
All securities should be entered the trust Sc
rurities ledger their face value II IS true tnar
| in certain Classes of accounts the trust company
is chargeable with the appraised or purchased vare
assets and must account to the % G0ls aees e SEN
arate and fuller records must of necessity De car
least interfering with trust record of the secuT
tics themselves in which 1t VIII De aoa,ie vbns- ~ @
simpler ond satisfactory to carry every 'hhs
at AnTthinG in hand which has no value should
be given a nominal value Of say 81 in order 70 geS
at their value in dollars and not so many shares'
NEW FINANCIAL SCHEMES.
| Colonel F. H Fries. president of the Wachovfa
Loan and Trust Company of Winsten-Salem N
G spoke on ''Radicalsm and Conservatism IN
! Financial Measures and Legislation lie devoted
a considerable part of his address TO the PROPOSE
tion of postal savings bank and the present much
discussed principle OF guarantee Vi DaA f
\ He said in part:
The postal savings bank is recommended py
the President and his Postmaster General II LIS Is
| ton Than to this and yet majority OF trus' i
besr,nr 3eposts These savings fund
counts represent largely the savings or coIlHliI m
e es IN s Of these accumulated savings in the
hands of such institutions are INVESTED ne IN Ip
and advancing the interests of the towns and sec
| carefuIiy loaned. these Investments quite as
safe and beneficial 10 these communities 9 s4
| away to be Invested by the Postmaster Genera
or other b0nds of " the more popuous
sections of the country /. ,,-oaosed - take the
6toegs t +b IN the nearest United States deposit
the Postmaster General such deposits TO pear
95 R Per he cent ba eaeh postal order
Will become agency for gathering deposits al
cases as late as o'clock at night. for the benefit
0a+e5 o eLe nafional bank This would certainly be
directly to the detriment of the agricultural and
| posits It would weaken the banks already there
% in of specaI advantage to the Immediate section.
These deposits too, would yield TO the depoSitoT
Vit5S Would be direct loss to the people because
higher rates would be all f59 tbere Grnel
There is no real demand for this postal savings s
Of of'it it O" '''s p--'' ''-| D~'D'~ ',''N
| The speaker called the guaranteeing of bank de-
| posits by the government with tax on these de-
| posits or on the capital OF the banks. TO create
a fund for the reimbursement of losses to depos-
itors the insidous of these radical ideas yet
! proposed.
Under the proposed measure the bank y,Tn would
be taxed IGT % @ for the beneft Of its
| own customers or depostors, but for those OF
| another and perhaps far distant bank over Whlch
II has absolutely no control and OF Wh1ch IL httS
| perhaps knowledge, except that It's manage
| nent has been faulty and Its end premature
| The influence of such measure wouid be detTl-
| mental TO the bank, the bankers and the people;
| under such q law the bank itself would nave no
| special inducement TO accumulate a large caPi-
| tai and surplus build up name for conserNa-
| tive management
| The best scheme far proposed TO solve the
| financial problem is the establishment OF cen
| tral bank OF large capital and surplus so con-
| trolled and regulated to protect the govern
nent's best interests and organized that IL may
! become the guiding and controlling factor among
| the banks Of the country. with which II must OF
necessity be in perfect harmony and accord. II II
| is to be useful and efficient I.,lS central
| bank would be the depository of the government
| funds we'll the reserves Of national banks;
| medium through which national hnanClal
| deals would be consummated: 1t would regulate
| of exchange and control the export aIlo
| import OF gold, and should exert a salutary ana
| much needed influence upon the banking interests
! Of the country.