Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-05-15
REFORM SPIRIT
SWAPS BANKERS
300 FINANCIERS UNITE IN DE-
MANDlNG NEW LAWS
PRESENT SYSTEM is ATTACKED
VEHEMENTLY
Leaders in Affairs Of Money World
Assemble at Pasadena-Cur-
rency Legislation Is
Advocated

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of California; Justice Alfred G. Bur
nett of the Third district appellate
court, who is a high authority on
banking laws; Rollin p. Grant, vice
president of the Irving National bank
of New York, who declared that as
New York is the reserve center of the
nation he felt it should keep in close
touch with the great west, and ATTENDS
the convention in Pasadena not only TO
learn Of California conditions but to
make whatever suggestions he may De
called upon to offer.
The convention was called to order
by George w. Peltier, president of the
association and vice president OF the
California National bank of Sacrament
to- Mayor Thomas Farley, in brief
address of welcome. extended TO the
bankers thaa keys of the Crown City.
James K. L ynch, vice president of the
First Natior al bank of San Francisco,
made an appreciative response.
On the pla torn with President Pei
tier were former Secretary of the
United States Navy Lyman j. Gage;
William J. Schroeder, the eminent
Chicago banker; Rollin P. Grant of
New York Mayor Farley and Rev.
Malcolm J. M cLeod, pastor of the First
Presbyterian church of Pasadena, who
pronounced the invocation.
Reports Received
Eight reports were read and ap-
proved at the morning session, chief
among which was the report of Chair
man F. L. IIipman of the executive
council, read by Assistant Secretary
F. H. Colburn. who represents Secre-
tary r. M. WEIGH at the convention and
who also has charge of the criminal
Of In
which has made marvellous strides in
the last year in protecting the members
of the association from swindlers. Mr..
Lipman's report enumerated the bust
ness of the council at the meeting fol-
lowing the Last convention at Santa
Barbara, and referred to the meeting
of the council held in the morning pre-
ceding the first session yesterday. The
principal item of interest dealt with
the decision that the protective COM
mittee shall use every power to appre-
bend and punish dishonest vouchers,
the recent failure of the California
Trust company of San Francisco being
cited as an example of such dishonesty
The report of the secretary showed
great gain in the membership of the
convention during the last year. The
organization now has a membership of
4S0, he said. each member meaning a
bank, and not a man. 1t is an increase
from 372 of last year, while that Of
last year was an increase of 107 over
1906, when the convention assembled
in Oakland with a membership of
but 265.
The report of the committee on re-
lief for San Francisco earthquake suf-
ferers showed that 81 900 remaining
had been ordered disbursed to various
charitable organizations of the state.
The reports of the treasurer, commit
tee on bills of lading and committee of
delegates to the American Bankers as
ISOLATION convention at Atlantic City
last year We're technical and of little
general interest.
Committees Named
Committees were appointed as fol-
lows:
Auditing-L. G.. Worder, L. G. Bur-
pee, l.. A. Blochman.
Resolutions-J. NJ. Elliott, L. H.
Behrens, H. P. Lincoln.
NominationS-W. H. High j. NJ.
Henderson, W. r. Price.
Formation of Clearing House associ-
ation-O. j. Woodward, Fresno; S. L.
Mack, Bakersfield; S. j. Castleman
Riverside; w. n. Rogers, San Diego;
NJ. NJ Crookshank, Santa Ana; Chas.
Smith, Oakland; #. G. McCreary, Santa
Cruz: DR.. j. A. Osmun, Whittier; f.
j
San Luis Obispo; G. j. Giddings, Visa
liza; c. e. Walker, Pomona; c. e.
Woodside, Los Angeles A. Levy, Ok
nard; Eli King, Palo Alto.
President Peltier, in his opening ad-
dress, said in part;
THE event nearest our hearts was the
great panic of 1907. From the zenith of
the greatest period of prosperity of the
American people came the message
across the continent that confidence in
our finances was gone, and apparently
without warning. The story was told
from Wall street of a great excitement
among stock gamblers; of a break in
an attempt to corner certain copper
stocks. followed by failures in broker
age firms which were closely allied to
chain of New York city banks; then
the run on prominent trust companies
and the climax of the Knickerbocker
Trust company closing its doors and the
financial interests of New York city
were face to face with the severest
struggle in its history.
"You are all familiar with what fol-
lowed after New York banks refused to
ship currency. A panic of the bankers
spread over the land, and the finances
of the American people were tied up
hard and fast Money panic was SUI
preme for eight weeks following the
end of October. All rules of business
pended; customs were thrown aside
and the set task of every banker was
to take care of his own institution. The
clearing house certificates became the
medium of exchange, and the American
finances were properly and safely pro-
tected. Bank depositors We're calm
and with a discretion that made it pos
sible for an early return of settled con-
ditions. Without this placidity the pan
ic would have continued acutely for an
indeterminate period.
Bankers were frightened; there was
a we'll defined feeling OF distrust among
them in their daily transactions and a
struggle was developed for money to
build up and hoard local resources.
There have been all sorts of theories
and explanations written by American
writer's endeaVoring to show what
caused the disturbance. If no other
cause were esta blished there can be no
was so clearly demonstrated in nearly
every banking room in our country,
namely--the inelasticity of our money
system.
1.-THE United States was labOring with
a financial system totally inadequate to
its business methods and volume of
trade. and the break finally came. 1t
had been predicted, no one could say
inst about when, but it was agreed
that an upset in our monetary condi-
tions would occur. / am not in sympa-
inv with the sentiment that it should
have occurred or that it was due to
happen. The expansion in industrials,
manufacturing and commerce was in