The morning journal-courier., 1908-09-29
American Association on Rec
ord Against Bryan Plan
as Economically
Unsound.
is sPEcIous SOCIALISM
Denver Delegates Adopt Resolution
Protesting Against Principles
Of So Revolutionary" a
Character.

Denver. Col. Sept 2s--As a forerun-
ner of the annual meeting Of the
American Bankers association. section
meetings were held today. The most
important discussion in the savings
bank section occurred at the afternoon
session when the questions of postal
savings banks and the guaranty of
!. bank deposits were taken up. While 1t
was evident that the sentiment was
almost unanimous against postal saw
ings and overwhelmingly against the
guaranty idea. respectable minority
tried to prevent action on the latter
question contending that 1t was mat
ter for the convention Of all the mem
bers OF the association to decide and
not for single section.
John Schuette OF Wisconsin, was the
only speaker in favor of the guaranty
OF bank deposits. He opposed the es-
tablishment of postal savings banks on
the ground that the system would es-
tahlish $4,000 banks in the country to
compete with the present banks, He
favored the guaranty bank deposit
plan in order to avert the establish
ment Of the postal savings banks and
declared that the bankers of the coun-
try would have to face one or the other
of these issues Former Gov. Myron
T. Herrick. of Ohio, then offered the
following resolution
Whereas. this savings bank section
OF the American Bankers association
represents the savings people Of the
United States and,
Whereas the record Of these banks
for conservatism, stability and unset
fish devotion to the interest of their
depositors. Is unparalleled In any coun-
try in the world and,
Whereas. the loss to their deposit
ors has been so small as to absolutely
be a negligible quantity. therefore,
be It
Resolved. That inasmuch as any
plan or scheme to make each of these
banks responsible by taxation or as
scssnent for the acts Of one another
or to connect them with the national
banking system, Is economically I'M
sound In principle, confscatory In form
and inimical TO the best interest Of de-
positors, stockholders and borrowers.
1t would discourage individual initi-
atives the best product of the Ameri-
can mind II is a specious form Of
paternalism and socialism. It would
tend to encourage speculation and an
undue expansion Of credit Therefore,
be it,
"Resolvcd. That We enter the most
solemn protest against eraction into
law either by states or The nation Of
any principles so subverse to sound
economics and so revolutionary in
character"
After heated debate c. r. Breck-
enrisge Of Fort Smith Ark. offered a
substitute to the effect that the action
on resolution be deferred until after
the question came up before the gen
era convention. This substitute was
voted down, 40 to 80 and Mr. Herrick'
resolution was then adopted
After discussion Of postal savings
banks. motion was carried. placing
the savings banks section in opposition
+ TO the eSIdDlSIl1lNnl VI ppstdi SdN hiSs
banks and asking the support of the
American Bankers association in this
opposition.
]. p. Johnson Of Detroit, was elected
president Of the savings bank section
and William Hanhart was reelected
secretary.
The clearing house section also held
its convention this afternoon Besides
the report Of Secretary Farnswortf
and routine business there were sew.
eral addresses and bank guaranty was
aso brought up and condemned
The following officers were elected:
President. f. C. MoDougal. Roches.
ter vice-president Sol Wexler, New
Orleans. executive committee. c. A
Ruggles of Boston Ralph Van Vech-
ten, OF Chicago
AT the meeting OF the executive com.
rttee Fred E. Farnsworth was re-
elected secretary.