The Montgomery advertiser., 1908-02-21

first speech made In the unfteu et4Noa speaking on his amendment to tho Ala r'ss mr. cqsrsaiSs PrssiSssnsw. ssll have haa quite @ ss rsssSvs of u'SssisHn Ssak i and n . two two Senate Senators from from Texas Texas and the Senator from Maryland, MT: Ray thssir vie Views: @ and Y' think they de not 't differ essentially from the views Of the Senator from Rhode Island. t is trge ,e an emergencys but I thtink the Senator will agree that whenever a depositor presents check to bank and de. pay without using part of It's res- erve. the emergency ts then present. fuil-grown and threatening. It seems that the law in such a case presents two alternatives to the bank; one 70 refuse payment and commit, which IT a State Bank, would he an act of bank ruptcy: and the other to pay out. Of it's reServes and have the comptroller appoint a Receiver. Such an absurdity Act n expressivaiy % wei ntspthtt says. that the ini- good. If a reserve can neither be tssa st s tps pssa o5 G Pay sae esDSs nlents imaginable. The only other purpose possible would be to hold It for the receiver to administer. If to 'r reSsirs % ' it bp'ss to ss 'deposited in the Us s Treasury, and remove all Temp tation to use 1t.
 ing; passing through the panic Of 1908. and have some knowledge ana igformation as to the use and abuse Tn and around the city. where.I live there are many large manufacturing and mining plants Employing thou these laborers require many large sums of money, running up to more than million dollars 2 month, and time If all the banks similarly sit- uated were required to keep In their vaults. these very large sums, wholly over and above their reserves. It would remove from bushes and circulation vast amount of monay. when the general experience shows that the money paid labor largely returns to it is paid out
 The IS per cent reserve required by law is in my Judgment sufficient. tIona1 and State, usually hold in their vaults and with reserve agents, a larger amount; but I think the great sn,,ch fos thss psssn. ssrra inw ,, iS .naa t9o depoeited in banks a thousand miles from the home bank, and that, too often in times of peril 1t is. to all infeffs and purposes as useless to the home bank as If 1t were deposited In Japan, or some other locality quite as remote from the operation of our to lay up their treasures in Heaven, where neither moth nor rust doth corr rupt. and where thieves do not break with reserve agents when a financiai panic prevails. ,ssF
 It Is this condition of atfairs that I propose to improve by requiring a potential in the vaults of the banks.
 Depesfts im Bonds. q But before taking that subject up want to present some tables showing the amount of deposits in National, State and Savings Banks, Trust Com panies. etc, and the insufflcient amount t0 meet these liabilities.
 There was in deposits iu all National Banks, Dec. 3. 1907. See F. 124.
 Dgs ss.n,.s other National. me o,a .zs Due State Banks and 'o''s1''-'' Das a F Trust rsn Cos. savings sl''s's''s' Dns Approved Reserve '-s''-.''.' Dixidends kSnsd unpaid Sigss.isl ig5s.isl
 si.sss.e41.s .ssl Individual Deposits :. ;. 4'i7s,s7s,Ti7 Total.. .... .... s5.5s5 ,is4 o61 The total of these deposits on Aug uAt xz, 1907. was~-., .ss,sl5,6l2,3Ts l
 In this table am including the balance due all Banks and Trust Com panfes to show the then total liabilt- ties of. these banks that could be de- There are few of us who have not had any experience in banking who do not know. that the first money is sssn on the horiaon is tRSt dHs other banks. They are the "s. 9t zf depositcrs to-call in aa es 8t. tkru from other banks. 4 ast th@ neg tfrnid they are the .cs Ge astt alert pf all depositc 4sr On Dec 3, 1907, tt 'rusoet ,Ed other Reserve Banl a5 oc aasa t'.
 Central Rese, Due other
 National
 Banks. ..$390,5s -H, .-S,15l Bsnkers =. i2s.O1O,754 12s.7oO,24S Due Trust
 saTs Sanks as ..l4t7lo.s5s isssls.s74 Due Approv- f$
 Div, .,unpaid ls4,lsS 14o,l24 Indvid Dep sss sss:is4as :Sssss 'sssisssssssss: 'ssssissss .rotal .s1,447.sss.I .IsI sl,4s3.sss.5bs So 1t appears that these R Reserve ns,s ana s0
  aggregate of individual and Bank de, pSsifs of S2,93l ,354,734- whilst ail other National banks had S2e34,S6s,Sl1 MaIxine the total of $5.565, 914,o5l-
 These two classes of banks. the re- serve and the General Reserve Banks then owed other banks and Trust Com panies an aggregate of $l.2lO:4tl,lta' exclusive of the amounts due individ, uaI depositors, and actual cash on hand according to the Comptroller Report.s (P. 7) including bills or other National Banks was $1SS'its,r the bank and trust companies bad affampted to withdraw their de- posits from these Reserve Banks there would not have been mony sumclent ifo have maid them more than 4TS mil" i'm dolIaYs and there would have been ,1of a doIIar left for lndiyi9ual De- rositore. Compt. Report lP. s x 1.l
 T-ha total deposits in all inc NatlonaI xzanIrs on August 22, 1907. <fncluoing sraounks due other National Banks' Trust Co, dividends unpaiier' q, T s9S wsS Tsey held then in specie, ..a legal tender, etc. .SdVi'oS0'SSS and m notes of other Ma exz tional Banks '''' oS'oo1'oo' Total of all money .'$13b'l7s'lSS ana If this there were Gov .s. sas ernment deposits of l4S'ze='SSo Had these been withdrawn .a, oar oae the balance was :. .SoS.hoso'9So Tha total reserve held for these oe- unands was about 12 per cent in cash; The average reserve or go per cenS tfaA