The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-05-24
BRYAN MADE HIS
MEANING PLAIN
Told Chicago Bankers That
the Law Should Have
More Teeth.
WALSH CASE AND PANIC
MR.. FORGAN MADE RIDICULOUS
BY DEFECTIVE HEARING.
WALSH CASE AND PANIC

Chicago, May ga spirited tilt be-
tween w. J. Bryan and James B. For
gan. president of the First National
bank of Chicago. was a feature last
night at the dinner OF the Bankers
club of Chicago in the Auditorium An
mex. Mr.. Bryan, in the course of an
address 10 the bankers. found occasion
To say:
1t appeared in the Walsh case here
in Chicago that the law as to ioaning
by national 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 indi-
vidual-no penalty at least except such
as may be imposed III the discretion of
the comptroller. And what is the sit
uation? If a bank loans more than the
prescribed 10 per cent il is notified not
TO do il again. If the bank continues
To loan more than 10 per cent it is
again notified not to do it again. If it
keeps on, il keeps on being notified. Am
l not right?"
a coterie of bankers and business men
in tne rear of the room laughed.
Forgan's Hearing Defective.
This was too much for Mr.. Forgan.
indeed showed several indications in
earlier parts of the speech of not being
} in accord with the speaker.
Mr.. Forgan raised his hand deprecat-
ingly.
But the law has been changed" said
MIR. Forgan, who apparently did not
hear Mr.. Bryan use the words capital
and surplus" in leading no to his point.
The law now forbids loaning 10 per
TaT
And is there any penalty?" demand
ed Mr.. Bryan, in an aggressive
voice, and, turning to look at Mr.. For
gan, who sat to his right, four seats
away, at the speakers table.
There is no penalty" said Mr.. For
gan, but the law is now enforced
Plain Talk by Bryan.
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.
Il will stake my reputation, cried
Bryan. more vehemently than before,
and speaking slowly, that the law was
not enforced in New York during the
panic"
Another pause. The room was en-
tirely quiet. Bankers looked at Mr..
Forgan. Mr.. FOrgan looked at the pink
carndtion before him. Mr. Bryan re-
garded the chandelier.
And l viii say further" resumed
Mr.. Bryan. smilingly, that if the law
had been enforced in New York during
the panic, the panic would have been
a great deal worse"
Everybody laughed at that, inelud-
ing Mr.. FOrgan. and tie atmosphere be-
came clear again.
Mr.. Bryan then proceeded TO unfold
his opinion that the criminal law should
be applied 20 bankers who infringe the
10 per cent provision.
Criminal Law Should Be Applied.
IN my most emphatic belief" he
said. lit should be made criminal of
Tense for a bank official to loan more
than 10 per cent of the capital and sur
plus TO one person. The criminal law
should be applied TO such a person
Don't you agree with me?"
We'll" he said, whether you agree
with me or net, let me tell you that
15,O00,0 900 depositors viii agree with me
on the proposition
MI Bryan declared for the guaran-
teed banking system. such as Oklaho-
ma has, where every bank stands spOn-
sOr for every other bank. He said that
unless such security were offered to de-
positOrs 10 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
eminent banks there, this country
would be forced to yield TO the demand
for a postal savings bank