Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-10-01
LAST SESSIONS
BANKERS B { 4 K ! j CONGRESS
Will Elect Officers and Pass Res
oIutions That May Have Far
reaching Effect.
BANK DEPOSITS GUARANTY.

Brought squarcly Before Convention
BY Report OF Committee Which
Is Against II.
l'eilVer,, oct. 1.--Thesc sessions
OF the American Bankers association
ton .S We're replete with Incident ana
llli .of fiilsest. Ses!tie5 tf,. election
OF Officers ard the winding up III she
business of tie convention resolutions
which may have far~reaching effect
We're considered. 3s ~
IN the election of oiTlaers George NJ.
heSpolds, present vice-president, Is
scheduled for the presidency and
Lewis e. Plerson. present chairman
| q ! ne executive council will be elected
| vice president The executive commit
tee VIII undoubtedly re-elect the sec
retarN and assistant secretary, bur the
choice OF treasurer is still ii. doubt
Three addresses We're on the pro-
gram for the day. Alexander Gilbert,
president Of the New York Clearing
House, speaking on Vital Issues.
Joseph e. Dansdell, president ofs5the
National Rivers and Harbors congress
on Conservation of Natural Resourc-
es, and SErestus J. Wade, president of
the Mercantile Trust company of st,
l4ous on Guarantee Of Bank de-
posts. b 54 4
The meeting ofsthe executive coun-
ell tonight Will wind UP the business OF
the convention, but enough excursions
have been planned to keep che bank
ers busy Friday and Saturday.
BANK DEPOSITS GUARANTY
The question of guaranteeing bank
H. N,alx .f.l1
the annual convention of the Ameri-
can Bankers association at its after
noon session today lin Il report of the
associations federal legislative conf
1nittee which takes a decided stand4in
opposition to such action by either
federal or state governments. The re-
| port In part is as folloWs:
Your committee IS opposed TO The
guaranteeing of deposits by either state
or federal governments, or the as
suming ofsa trusteeship by either, OF
a guarantee fund, believing that II
would be function wholly outside
of any purpose for which state or fed
eral governments were organized ana
for the further fact that the assunl-s
| ing Of a trusteeship would be misead =
ing to the general public, IA s it's not y
guarantee by either state or federal
government; and that such a law
would work to the detriment, not on
| ly OF the banks, but to the depositing
public az. WELL II one n class of bank
creditors lis to be insured against me
I usual nfschance of business, why not
| all classes: ana where is the justice of.
! leyying a depositors loss, for which he
| is not responsible, upon other hanks
who also are not responsible 55 1or ms
loss and who have no voice Whatever
in the selection Of where he shall keep
his ACCOUNT?
htlf1 nix a
feed primarily by the character of the
assets in which the depositors money
is inyes bed margined and fortlneu
bv the banks capital and surplus. II
a banks assets, that is to, saN.lts M m
vestments are good, II It's credlts nays
ed depositors are amply protected ana
( need no other guarantee. my snouia
NOT the banks assets be guaranteed;
/ why not guarantee payment. " 4,, - \.
banks OF the receivables of their
rarious clientele? This would guaran-
lee deposits. Both propositions are
alike logical and alike absurd
s..Denosits in bank are safe IN Just
the proportion that its assets are
good. We should discourage uh"lses
extension Of credit. rather than open
the way for reckless banking. which
wo,,ld seem to be inevitable result
of the proposed schemes
eve are told that these plans VIII
do away with panics. Are they nor
more likely to prove the mother OF
panics? a panic Is business pataisst
horn or unreasoning fear on the part
s of the public. In such conditions, VIII
depositors refrain from withdrawing
their funds ? Will they not, rather,
Withdraw them at once because OF tne
unknown danger resulting from each
bank being compelled to h snhraA; "a
those who have had the gruelling eX-
#nerience of several panfcs, there IS
but one answer to this question, and
no law could be spread upon ! me
statute books more fraught with ms
chief than law for enforced guar
antce OF bank deposits.
."Iet congress provide means
whereby perfectly solvent banks with
good liquid assets can obta1n, cur
rency with the same facillty as paIiks
in other great commercial na,1on n1
and they will have gone FAR toward
the prevention of pantcs. 81
AMENDMENTS.
The report of the committee on
amendments to the constitution and
4by-laws was read and adopted.
3 Among the amendments to the con-
stitution adopted was one for. the or
=ganization of a section of the American
BANKERS association to be known as
tho American Institute of Banking Sec
Ill, y
executive council. The new section Is
made UP of banking employees.
George NJ. Reynolds of Chicago in
5yited the association to meet in Chi
cago next year, and the invitation was
accepted.
Los Angeles extended an invitation
to the association for 1910.
CURRENCY COMMISSION.
The report of the currency commits
sion shows that some progress was
made before Congress. While IT does
not wholly approve of the Aldrich- /
Vreeland measure 1t states that the
new law is in the direction of progress.
r No bill was suggested in the report.
but the commission declared that the
bill 1t proposed to the last session was
in it's opinion the best bill that could
be proposed. Former Gov. Myron T.
Herrick of Ohio read the report of the
commission and made q brief speech |
on the subject. There was some dis
=. - Nal III 4