The daily sentinel., 1908-05-26

Saturday night, has attracted
much attention.
Mr.. Bryan. in the course CT an ad-
dress to the bankers said:
"It appeared in the Walsh case
here in Chicago as to loaning by ma
tional banks to its directory only that
no penalty IS attached for the loan
of more than 10 per cent of the
banks capital and surplus to one in
dividual.
mo penalty at least except such
as may be imposed in the discretion
of the comptroller. And what is the
situation? If a bank loans more t..an
the prescribed 10 pc- cent 1t is noti-
fled not to do 1t again. If the bank
continues to loan more than 10 per
cent it is again notified not to do it.
If it keeps on, Il keeps on being noti
fled. Am l not right?"
A coterie of bankers and business
men in the rear of the room laughed.
Mr.. FOrgan Objects.
This was too much for Mr.. Forgan.
The president of the First National
bank had indeed showed several in
dications in the earlier parts of the
speech of not being in accord with
the speaker.
Mr.. JForgan raised his hand depre-
ciattng.
But the law has changed" said
Mr.. Forgan, who apparently did not
hear Mr.. Bryan use the words cap
ital and surplus in leading up to
his point. "The law now forbids
loaning 10 per cent on capital and
surplus.
"And is there any penalty?" de-
manded Mr.. Bryan, in an aggressive
voice and turning to look at Mr. For
gan, who sat to his right. four seats
away, at the speakers table.
There is no penalty" said Mr..
Forgan, but the law is now en-
forced"
Law Not Enforced.
Mr.. Bryan gathered himself to-
gether, leaned forward and extended
hts arm into his fighting position.
"Will anyone tell me that the law
was enforced in New York during the
panic?" he cried. He waited. There
was no answer. Mr.. Forgan said
nothing.
81 will stake my reputation" cried
Mr.. Bryan. more vehemently than be-
fore and speaking slowly. that the
law was not enforced" Another
pause. The room was very quiet.
Bankers looked at Mr.. Forgan. Mr..
before him. Mr.. Bryan regarded the
chandelier.
And l will say further" resumed
Mr.. Bryan, smilingly. that if the law
had been enforced in New York dur
ing the panic, the panic would have
been a great deal worse
Everybody laughed at that includ-
ing Mr.. Forgan. and the atmosphere
became clear again. Mr.. Bryan then
proceeded to unfold his theory that
the criminal law should be applied
to bankers who infringe the 10 per
cent provision.
apply Criminal Law.
I'm my most emphatic belief" he
said. ''it should be made a criminal
offense for a bank official to loan
more than 10 per cent of the capital
and surplus to one person. The
criminal law should be applied to
such a person. Don't you agree with
me?'
"Well.' he said. whether you
agree with me or not, let me tell you
that 100000 depositors will agree
with me on the proposition.
Mr.. Bryan declared for the guar
anteed banking system, such as Okla
homa has, where every bank stands
sponsor for every other bank. He
said that unless such security were
offered to depositors to prevent them
from banking with the government
by buying postal orders, or from
sending their money to Europe to be.
banked in one of the government
banks there this country would be
forced to yield to- the demand for
postal savings bank.