Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-10-01
LAST SESSIONS
BANKERS CONGRESS.
Will Elect Officers and Pass Res
oIutions That. May Have Far
reaching Effect.
BANk DEPOSITS GUARANTY.
Brought sqllarely Before. Convention
BY Report OF Committee Which,
Is Against Ii.

Denver. Oct. 1.-The closing sessions
Of the American Bankers association
toaaN We're replete with incident ami
iull OF inscest. Besides tk,. election
OF officers ard the Winding Sup III she
business of tie convention, resolutions
which may have farereacfing effect
We're considered
II the election of Officers George NJ.
reynolds, present vfce-president, Is
seileauleu for the presidency and
Lewis p. PiersoD, present chairman
or The executive council will be elected
vice president The executive commit
Tee VII undoubtedly re-elect the Sec
rotary ana assistant secretary, but the
choice of treasurer is still in doubt
Three addresses We're on the pro-
gram for the day, Alexander Gilbert,
president Of the Kew York Clearing
3 House. speaking on Vital Issues
Joseph e. Dansdell, president Of the
National Rivers and Harbors. congress
on Conservation of Natural Resourc-
les, and Erestus j. Wade, president of
1.-THE Mercantile Trust company of ST
$Lous on Guarantee OF Bank de-
$posits.''Si
The meeting of the executive conn-
ell tonight will Wind UP the business of
the convention, but enough cXcurSions
have been planned to keep The bank
ers busy Friday and Saturday.
BANK DEPOSITS GUARANTY.
The question of guaranteeing bank
deposits was brought squarely before
the annual convention of the Ameri-
can Bankers association at It's after
noon session today in report Of the
associations federal legislative com
mittee which takes a decided stand IN a
opposition TO such action by either
federal or state governments. Inc re- 4
port In part is as follows *
your committee is opposed to he
guaranteeing of deposits by either state
or federal governments, Or the as
suming OF trusteeship by either, Of
a guarantee fund. believing that y
would be a function wholly OUTSIDE
of any purpose for which state or fed
eral governments We're organized ana
for the further fact that the assunl-
ing of a trusteeship would be inisiead-
ing to the general public. as it Is not q
guarantee by either state or federal,
governments: and that such law
would work to the detriment. notion
W. Of the banks, but8to the depositing
public as we'll. If one class of bank
creditors is to be insured against the
usual mischance of business, Whyf3not
all classes: ana where is the justice or
levying depositors loss, for which he
is not responsible. upon other BANKS
who also are not responsible for his
,ossf q, ma who have no voice whatever
in the selection of where he shall keep
his ACCOUNT?
"Depositors of a bank are guaran-
teed primarily by the character OF tne
assets in which the depositors money
+ is Invested, margined and fortlnsu
nv the banks capital and surplus. II
a banks assets, that Is to say ITS M
tvestments. are good, If its credits nave
been wisely and conservatifely extend,
ed, depositors are amply prolecteaS Li,a
need no other guarantee. WHY sllou,u
not the banks assets be guaranteed,
why not guarantee payment 70 tne
hanks of the receivables OF thelr
various clientele? This would guaran-
Zee deposits. Both propositions are
alike logical and alike absurd;
3"Denosits in a bank are safe IN just
$tbe nronortion that it's assets are
good. We should discourage unWlse
eytension of credit. rather than open
the>2way for reckless banking. which
would seem to be inevitable result es'i
Of the proposed schemes.
- .1ua arcstoId that these plans Will
do away with panics. Are they NOT
More likely to prove the mother OF
4nanicso a manic is business paralSsls.
born Of unreasoning fear on tne PAR l,,I
Of the public. In such conoitioils, vi NJ.
denositors refrain from withdrawing
their funds? Will they not, rather.
,,,ithdraw them at once because OF the
,,nlsnoWn danger resulting from eacn
bank being compelled to gua ara "
sthe.5losses in 10000 other banks 70
those who have had tne s s..thass
nerlence of several panics there Is
INT one answer to this question, ana md
NJ, law could be spread upon the
statute books more fraught with mis-
5cGief than a law for enforced guar
antee of bank deposits.
means 1
whereby perfectly solvent banks with
rond LIQUID assets can obtain cur
rency with the same facility as panks
In other great commercial nations;
and they will have gone ,,far toward i
the prevention of pan1cs.
The report of the committee on
to the constitution ana
bylaws was read and adopted.
Among the amendments to the con-
st;f,tion= adopted was one for the or
sanitation Of q section of the American
Bankers association to be known as
the American Institute of Banking sec
axan,,ti,.eT council The new §ion5is |
made up of banking employees.
George NJ Reynolds of Chicago In |
5yited the association to meet in Chi-
"a go next year. and the invitation was
accepted.
Los Angeles extended an invitation
to the association for 1910.
CURRENCY COMMISSION.
The report of the currency commits
sion shows that some progress was
made before Congress. While 1t does |
not wholly approve of the Aldrich-
iyreeland measure. II states that the
new law is In the8direction of progress. I
No bill was suggested IN the report,
but the commission declared that the I
bill it proposed to the last session was
In its opinion the best bill that could |
be proposed. Former Gov. Myron T. |
Herrick of Ohio read the report of the
commission and made a brief speech i
on the subject. There was some dis
.cussion. but no opposition developed to
the report. which was unanimously |