The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-09-29
American Bankers Association
Is Against the Plan
SESSION OPENS IN DENVER
Section Meetings Are Held as Prelm-
mary to Annual Convention of
Bankers-Bank Guaranty
Proposition Discussed.

| Denver September 2S.-As a fore
| runner of the annual meeting of the
| American Bankers association, section
meetings were held today. The most i'm
| portant discussion in the savings bank
section occurred at the afternoon session
when the questions of postal banks and
guaranty of bank deposits were taken
up. While it was evident that the senti-
ment Was almost unanimous against pos
tai savings and Overwhelmingly against
the guaranty idea, a respectable minor
ity tried to prevent action on the lat
ter question, contending that it was a
matter for the convention of all the
members of the association to decide.
John Schuette of Wisconsin was the
only speaker in favor of the guarantee
of bank deposits. He opposed the es-
tablishment of postal savings bank on
the ground that the system would es-
tablish 1900 banks in the country to
compete with the present banks. Former
Governor Myron t. Herrick of Ohio
then offered resolution opposing the
guarantee of bank deposits on the ground
that ANY plan scheme to make each
bank responsible by taxation or assess
ment for the acts of one another to
connect them with the national bank
ing system is economically unsound in
principle, confiscatory in form and in
imical to the best interest of depostors,
stockholders and borrowers"
The resolution continues:
'It is a specious form of paternalism
and socialism. 1t would tend to encour-
age speculation and an undue expansion
of credit Therefore, be it
Resolved, That we enter the most SOL
emn protest against enaction into law
either by states by the national gov
ernment of any principles SO subverse
to sound economies and so revolutionary
in character"
After heated debate c. r. Becken-
ridge of Fort Smith, Ark, offered a
substitute to the effect that the action
on the resolution be deferred This sub
stitute was voted down, 40 to 80, and
the Governor Herrick resolution adopted.
After a discussion of postal savings
banks a motion was carried placing the
savings bank section in opposition to the
establishment of postal savings banks and
asking the support of the American
Bankers association in this opposition.
j. f. Johnson of Detroit was elected
president of the savings bank section
and William r. Greer first vice presi-
dent
The clearing house section also held it's
convention this afternoon. Besides the
report of Secretary Farnsworth and rou-
and banking guaranty also was brought
up and condemned.
e. C. McDougall, Rochester, was elect
ed president; Sol Wexler. New Orleans.
was elected vice president, and Fred E.
Farnsworth was >-elected secretary.
Report OF ,cretary.
For many years the lines of work
laid out by the conference ,f clearing
houses, establ he'd in 1899 and, yanized
as a section : the American Bankers
association in 1906, were embodied in the
following resolution, which was passed
at the first meeting:
" Resolved, That the practice of charg-
ing exchange for the handling of out
of-town items is just and proper and
within the scope of legitimate banking;
therefore, all bankers, both city and
country, are entitled to receive the bene-
fits of the same
"You are all agreed that the banks of
the United States are doing an enormous
amount OF business without compensa-
ton; that you are not getting what right
fully belongs to you, and that by con-
certed action you could accomplish the
object for which this section was original
1y organized; but, of necessity, the evil
being so deep-rooted, it will take years
to overcome.
''Since my last report II clearing houses
have Joined the section. There are now
| 1853 clearing houses in the United States:
50 members of this section and GA non
members"
Savings Banks.
The report of William Hanhart secre-
| tary of the savings bank section, shows
| an increase in membership from 500 in
| 1902 to 1916 at this date. The expenditures
| for the fiscal year ending August 81, 1908,
are reported as having oeen S4977.S 81.
Interesting reports on the affairs of
| the section were made by the executive
committee and an amendment of the con-
stitution by the committee on that SUBJ
| ject.
One of the most important reports was
| that Of the committee. on auditing. though
| it is chiefly of technical character with
regard to methods of savings bank book
keeping. In opening this report, the COM
mittee, of which Edward L. Robinson,
vice president of the Eutaw Savings bank
of Baltimore, is chairman, says in part:
1.-THE trustees and officers Of savings
institutions are not properly discharging
their trusts unless they are alert in seek,
ing to raise the standards of banking
ethics among their employees well as
to install correct methods of accounting
for the purpose of preventing Irregular
tiles in the routine work of their banks,
Savings bank men must be educated to
iat high OriVilpPa of their
calling and to sympathlze with any meas
ures designed to shield them from the
dangers of loose and careless bookkeep-
ing. During the past few years the pub