Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-05-23
BRYAN STIRS up BANKERS
SAYS CRIMINAL LAW SHOULD
APPLY FOR ILLEGAL LOANS.
Spirited Tilt at Club Dinner in Chi
cago Between Nebraskan and
President Forgan.

CHICAGO. May GA spirited tilt be-
tween William j. Bryan and James B.
Forgan president of the First National
Bank of Chicago, was feature last night
at the dinner of the Bankers Club. OF
Chicago in the Auditorium Annex. Mr..
Bryan. in the course of an address to the
bankers found occasion to say:
1T appeared In the Walsh case here in
Chicago that the law as to loaning by ma
tional banks is directory only and that no
penalty is attached for the loan of more
than 10 per cent of the banks capital and
surplus to one individual.
mo penalty, at least, except such as
may be imposed In the discretion OF the
controller and what is the situation?
II bank loans more than the prescribed
10 per cent it is notified not to do 1t again
l. the bank continues to loan more than
10 per cent ii is again notified not to do
it. If II keeps on 1t keeps On oelns hoti-
fed Am / not right?
A coterie of bankers and business men
in the rear of the room laughed.
Forgan Dissents.
This was too much for Mr.. Forgan. The
president of the First National. indeed,
had shown several indications in earlier
parts of the speech of not being In &C
cord with the speaker.
Mr. Forgan raised his hand deprecating
ly. But the law has been changed said
Mr. Forgan who apparently did not hear
Mr. Bryan use the words, capital ana
surplus" in leading up to his point. The
law now forbids loaning 10 per cent on
capital and surplus"
And is there any penalty?' demanded
Mr. Bryan. in an aggressive voice. and
turning to look at Mr.. Forgan. who sat
hfs right fOIlr seats at the
speakers table.
There is no penalty said Mr. For
gan. but the law is now enforced"
Mr.. Bryan gathered himself together
leaned forward. and extended his arm
into his fighting position.
will any one 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.
II will stake my reputation cried Mr.
Bryan. more vehemently than ever and
speaking slowly. that the law was not
enforced in New York during the panic.
Another pause. The room was entirely
quiet. Bankers looked at Mr.. Forgan
Mr.. Forgan looked at the pink carnation
before him. Mr.. Bryan regarded the
chandelier.
And will say further" resumed Mr.
Bryan. smilingly. that IL the law had
been enforced in New York during the
panic the panic would have been great
deal worse
Sky Clear Again.
Everybody laughed at that, including
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.
I'm my most emphatic pelief.'' he said,
ut should be made criminal offense for
a bank official to loan more than 10 per
cent Of the capital and surplus to one per-
son. The criminal law should be ap-
piled 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 15.-
100000 depositors In this country will
agree with me In the proposition"
Favors oklahoma's System.
Mr.. Bryan declared for the guaranteed
banking system such as Oklahoma has.
where every bank stands sponsor for
every other bank. He said that unless
some such security were offered to de-
positors 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 gov