The Elk Mountain pilot., 1908-10-08
BANKERS FINISH
WORK AT DENVER
ADOPT REPORT OPPOSING BANK
GUARANTEE AND POSTAL
SAVINGS BANKS.
ELECTION OF OFFICERS
CURRENCY COMMISSION MAKES
STRONG DEFENSE OF CREDIT
CURRENCY.

Denver.-The American Bankers
Association completed the work of its
convention of 1908 at $3.50 p. m.
Thursday at the Auditorium. after a
day filled with the most important
business OF the sessions.
The delegates and their families and
f-'en"s - In fo"- snoc'ri t-~'-- 49,
the Moffat road for an excursion to
,no tou,.uen.... ui...S- -----
cept the invitation of Gilpin county to
spend the day viewing the gold mines
OF Central City and Black Hawk.
The following officers were elected:
President. George NJ. Reynolds, presi-
dent Continental National bank, Chi
cago; vice president. Lewis E. Pier
son. president Irving National Ex-
change bank. New York.
Fred G. Moffat. of the First National
bank OF Denver was elected Il member
OF the executive council and E. S.
Irish OF the Denver National bank, as
vice president from Colorado.
The report OF the committee on leg
islation opposed both the bank deposit
guarantee Idea and the postal savings
banks. The committee introduced a
resolution condemning the former
proposition as a danger, both to the
banks and to the public. wholly for
eign to constitutional government and
declaring It to be paternalism run riot.
Delegate c. r. Breckenridge OF Arkan-
sas strongly urged that the resolution
be amended to include postal savings
banks also. After some confusion.
mostly due to a misunderstanding Of
parliamentary law by some OF the
members. the report and resolution
was adopted.
Mr.. Breckenridge then introduced u
separate resolution. as follows:
THAT the American Bankers Asso-
citation condemns as unwise and hurt
full to business all propositions to es-
tablish postal savings banks In this
country"
This resolution was adopted. The
report OF the committee on federal
legislation follows:
Your committee since its appoint
ment has followed with much interest
the movement which has been on for
the establishment OF postal savings
banks. and has opposed the enactment
OF such legislation. No bill has been
presented which would really prove
beneficial to the country. On the
contrary. all have been burdened with
measures sure to prove detrimental.
not only to the banks. but the individ-
ual depositors rs well, by impairing
the ability OF the banks to adequately
provide and care for the very desirable
feature and advantage OF active bank
Ing accounts. curtailing the use OF in
dividual credit. and giving the dishon-
est a cloak by making such funds I'M
mune from all process of law. and par
ticularly inviting the several with
drawals of large sums from CONNER
cial channels by making such deposits
not subject to taxation. and such banks
are proving serious menace to the
financial credit of the countries in
which they are In use.
Your committee Is opposed to the
guaranteeing of deposits by either
state or federal governments. or the
assuming of trusteeship by either
OF guarantee fund. believing that II
would be function wholly outside OF
any purpose for which state or federal
governments were organized. and for
the further fact that the assuming of
trusteeship would be misleading to
the general public. as II is not guar
antee by either state or federal gov
ernment and that such a law would
work to the detriment. not only OF the
banks, but to the deposlting public as
well.
"In view OF the prominence given to
this question at the present time. We
deem 1t important that the American
Bankers Association place itself on
record. We, therefore, recommend
the adoption of the following resolu-
ton:
Resolved. That the American
Bankers Association is unalterably
opposed to any arbitrary plan looking
TO the mutual guaranty Of deposits
either by state or the nation for the
following reasons:
"'u) 1t is function outside of
state or national government.
"'(2) II Is unsound in principle.
"'(3) II is impractical and mislead-
ing.
go 1t is revolutionary in charac-
ter.
''(5) 1t is subversive to sound eco
nomics
400 1t will lower the standard OF
our present banking system.
go II is productive Of and encour-
ages bad banking.
"'(S) It is delusion that a tax on
the strong will prevent the failure Of
the weak.
"'(9) 1t discredits honesty, ability
and conservatism.
"'1O) A loss suffered by one bank
jeopardizes all banks.
GOD The public must eventually
pay the tax.
"'Q2) 1t will cause and not avert
panics.'
The currency commission, in its re-
port said.