Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-09-29
DISCUSSING FINANCE|fIRST PUBLIC SESSION
Second DAYS Session of the Educators at Business High
American Bankers School This Afternoon
1ODAYS DENVER PROGRAM land At SHOnEHAM TONIGHT
Many Papers Interest Are to Be
Buchtel of Colorado. Read.
NUMBER OF PAPERS READ BUSINESS WORK THIS MORNING
Meeting
Interesting DscussionPoal
Opposed School System he Best
Second Days Session of the
American Bankers.
10DAY'S DENVER PROGRAM
Address Of Welcome From Gov.
Buchtel of Colorado.
NUMBER OF PAPERS READ
Bank Deposit Guaranty Topic for
Interesting Discussion-postal
Banks Opposed.

Banks Opposed.
DENVER, Col. September 29.-Today.
The second Of the American Bankers
convention was devoted to the meeting Of
the trust company section Of the associa-
ton at the Brown Palace Hotel. The
program included addresses Of welcome
by Gov. Henry A. Buchtel OF Colorado
and Col William E. Hughes, president
OF the Continental Trust Company Of
Denver. President Philip S. Babcock re-
piled to the addresses OF welcome ana de-
aivered his annual address.
The secretary's report and the reports
OF the executive committee and the COM
mittee on protective laws were presented
and the remainder of the day was taken
up with addresses and discussions
The subjects OF the addresses were The
Trust Company--a Necessity" by Brock
enridge Jones of st. Louis: "Radiealsin
rs. Conservatism" by F. II. Fr1er Of
Salem. ~. c.: New York City Trust Com
panies Under Present legislation by
Lawrence l.. Gillespie: Securities Held
in Trust. Methods for the Control and
Safeguarding OF Them and for Their
Proper Accounting by Joseph y. Bah
cock OF New York.
Deposit Guaranty Discussed.
The most important discussion in the
eavings bank section occurred at yester-
day afternoons session. when questions Of
postal banks and guaranty Of bank de-
posits were taken up While II was evil
den: that the sentiment was almost unani-
NOUS against the postal savings bank
plan ana overwhelmingly against the
guaranty idea, a respectable minority
tried to prevent action on the latter ques-
ton. contending that It vas matter for
the convention Of all the members Of the
association to decide.
only speaker in favor Of guaranty Of bank
deposits.
Ex-Gov. Myron T. Herrick Of Ohio Of
tered the following resolution:
Resolved, That inasmuch as any plan
or scheme to make each of these (sav.
ansA) banks responsible by taxation or
assessment for the acts Of one another or
to connect them with the national bank
principle. conhscatory in form. and mimi
cal to the best interest of depositors
stockholders ana borrowers. 1t would
discourage individual initiative. the best
specious form Of paternalism and social
ism; II would tend to encourage specula-
ton and an undue expansion of credit.
Therefore. be 1t resolved. That we enter the
Ia~ either by states or the nation Of any
principles 30 subverse to sound economics
and 50 revolutionary IN character"
G r. Breckenridge Of Fort Smith, Ark,
action on the resolution be deferred until
the question came up before the general
convention. This substitute was voted
down. 40 to g. and Mr.. Herrick's resolu-
ton was then adopted.
After Z discussion of postal savings
banks. q motion was carried. placing the
savings bank section In opposition to the
estsblishment of postal savings banks.
and askine the support of the American
Bankers Association In this opposition.
Postal Banks Opposed.
Postal savings banks were opposed in
the report Of the committee on that SUBJ
ject. consisting OF P. lie Roy Harwood.
Myron 7. Herrick. C. La Rue Munson,
Francis r. Morrison, Charles E. Sprasue,
Lucius Tete" and William Hanhart, az
secretary. The report says:
riment will result to the existing savings
hank system from the establishment Of
postal savings repositories. inasmuch az
the present facilities are superior to any
that could be afforded by the govern
ment, or TO those Of the countries where
postal savings banks now exist yet the
previous experiences Of the United States
:oyernment In conducting banking insti-
tutions. and notably in connection with
the Freedmen's Savings and Trust Com
pany, do not encourage us to believe that
the proposed postal savings system would
be managed more wisely or with better
success than the existing savings institu-
tons.
During the year 1906 the aggregate
net loss to depositors was the trivial sum
OF $4,000. being three ten-thousandths
OF j Per cent on total OF s.. 500. 900 900
In rawlings deposits, whereas the proposed
government rate Of . per cent would have
deprived the depositors Of at least So.
100000 in interest In the same year.
Bills Vicious Feature.
The bills now pending in Congress for
the creation Of that system should not be
enacted into law, because specifically
wrong in the following particulars. to
which many others could be added
The exemption Of deposits from legal
process IL vicious, as II would provide q
depository for funds OF the dishonest and
the fraudulent, where they could place
their money. draw interest on 1t and be
free from attachment. which would prove
q serious menace to the business interests
OF the country.
In the use made by the government OF
the funds coming into its possession
through the postal savings repositories
the provisions Of the bills do not assure
a vide and equitable distribution Of the
funds deposited nor prevent the central
ization OF the peoples money. which be-
longs to and should be retained In their
respective communities.
No provision being made for a time
notice for Withdrawals, the government
might at times be seriously embarrassed
TO the great detriment of the general busi-
ness interests Of tho people