Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1908-05-23
ENGAGE IN TILT
WITH BIG BANKER
Gives His Ideas OF How Financial
Business of the Country Should
Be Run to Chicago Bankers
at Dinner---WOuld Secure
DepOSitOr In Full.

Chicago, May 23.-A spirited tilt
between w. J. Bryan and James For
gan, president of the First National
bank of Chicago, was the feature at
dinner of the Bankers cluo Of Chi
cago last night. Bryan, in tae course
of his address, said it appeared in the
Walsh case in Chicago that the law
as to loaning by national banks Is di-
rectory only, and that no penalty Is
attached for the loan of more than
10 per cent of a banks capital and
surplus to one idividual. Forgan in
terrupted by saying:
But the law has been changed.
The law now forbids the loaning of
10 per cent on capital and surplus"
And is there a penalty" demand
ed Bryan, in an aggressive voice.
There is no penalty" said Forgan,
but the law is now enforced.
Bryan leaned forward and, extend
ing his arm into his fighting position,
cried:
"Will anyone tell me the law was
enforced in New York during the
panic?" He waited. There was no
answer and Bryan continued:
'T will stake my reputation that the
law was not enforced in New York
during the panic" AnctGar pause,
and Bryan resumed smilingly:
81 will say further, that If the law
had been enforced in New York dur
ing the panic, the panic would have
been a great deal worse" Everybody
laughed, including Forgan, and the
atmosphere cleared again.
Mr.. Bryan was the guest of honor
of the club and addressed several
hundred members on the subject of
Banking Business"
on the subject OF emergency cur
rency Mr.. Bryan said that he believed
that this currency should be issued by
the federal government and leaned to
the banks. One reason advanced for
the belief was that the state oank
could be given the same assistance In
times of need as the government in
stitution. Il do not know" ne said,
'why a state bank should not be tubs
aided in the matter of relieving dis
tress. In my opinion the state and
the national bank should be placed
on the same footing when IL comes
to the question of securing emergency
currency"
He said that he believed that our
present banking system, with twenty
thousand Independent banks, more
nearly meets the needs of the people
of this country than a system like
that of the Bank of England would
do, but he declared that the system
needed a general overhauling.
THE thing for US to do" ne said,
sis to take the system we have, ex-
anime II, correct its faults and make
it respond to public sentiment, for, If
any one thinks he can ignore public
sentiment that person will learn his
mistake when it is too late"
on the question of affordiug secur-
ity to the depositor, Mr.. Bryan de-
clared that the temptation u gamble
was the source of most of the great
bank failures, and suggested the ne
cessity for a law that would remove
this temptation from persons who
handle other peoples money 1t Is
not enough, he said, to make banks
reasonably secure. I'VE must pro-
vide a banking system" he said, mot
only for reasonable people but for
unreasonable ones" and ne called 1t
a short-si GIFTED policy on the part OF
the bankers to resist a just demand
from 100000 people for absolute
security.
"If the banks of this country refuse
to give this security" he Continued.
"it IS they and they alone whJ Will be
responsible If this government is driv-
en- to establish a government bank.
II the government savings bank
comes, the $500 deposit limit will not
last through more than one session
Of congress. If you bankers refuse
to give the security the people de-
mand there can be no doubt OF the
future popularity of the government
savings bank. l would rather have
guaranteed banks than government
banks, but when the time comes / VIII
stand with the fifteen million GepOsit-
ors for the bank Of absolute security
Among other cures for the fanking
Ills, Mr.. Bryan suggested the adoption
Of the system recently inaugurated in
Oklahoma, where, he said, every bank
stands behind every other bank the
plan being worked out through
IL per cent tax on deposits.
Brussels. May ga dlspstch re-