New-York tribune., 1908-09-29
BANKERS In SESSION
OPPOSE GUARANTEE Law.
Federal System Severely ATaigned
I'm Resolutions.
rRy Telegraph to The Tribune ]

Denver Sept &-The savings bank section OF
the American Bankers Association. at its annual
,neetiag to-day adopted resolutions condemning
both the federal guarantee of bank deposits and
the postal savings bank bill that was introduced
fn Congress last winter. While the action of the
savings hank section has no bearing upon the
final vote of the convention proper on the deposit
guarantee scheme il be taken an indica-
tic= Of the sentiment that prevails among bankers
of all classes. The only opposition that developed
TO this resolution based on the contention of
some delegates that the matter should not be acted
upon prior TO the convention OF the parent body.
Myron T. Herrick. former Governor of Ohio in
.roduced the resolutions severely arraigning the
operation Of the system. He said that an assess
rnent Of sa2 10000 would have been required to
relieve the situation in New York alone last fall
The sntire banking structure would have toppled
over had the scheme been in operation. Speaking
Of the Oklahoma law, he said: Il prophesy that
the State of Oklahoma viii rue the day it adopted
this system which fosters speculation and puts
a premium reckless banking
Festus j. Wade. of St Louis, was loudly ap-
plauded when he asked: why not go to the root
OF the trouble and pass law making every bor-
ROVER guarantee the loans Of every other borrower?
1t is no more unjust than TO compel a solvent
conservative banker to guarantee the depostors Of
his reckless unscrupulous brother banker.
The resolutions were as follows:
Whereas. This savings bank section of the Ameri-
can Bankers Association represents the saving
people Of the United states; and, 80.
vatis stability and unself.sh devotion to the in
country in the world: and,
whereas. The loss to their depositors has been
sSesa9are SO se9a af be 10 # De a0S0i'eS 4
Resolved That inasnuch as any plan scheme
TO make each Of these banks responsible by taxa
ton or assessment for the acts of one another or
is economically unsound in principle, confscatory
IN form and nimica to the best interest OF dep9s
courage individual initiative the best product of
e ss anS soan It It wopd tend to
speculation and undue expansion of credit;
Resolved That we enter the most solemn protest
nation of any principles so sIbverse to sound
Monies and so revolutionary in character.
The meeting Of the clearing house section was
also held to-day. William Sherer, manager Of the
New York Clearing House delivered an interest
ing address on clearing house systems A. Luria
OF the Hibernia Bank and Trust Company. CT
New Orleans, spoke practical Transit Work"
The arrival to-day of the large delegations from
New York, Illinois. Ohio, New England and the
South has filed up all the larger hotels. The local
committee has engaged all the available accommo-
datons the smaller hostleries. The Brown Palace
Hotel the headquarters OF the association. has
been given UP exclusively the delegates, other
guests being accepted by the management during
the convention The Hobbies crowded with
bankers whose principal topic Of conversation is
the expected action be taken by the convention
on the federal guarantee plan. The sentiment Of
the delegates is Overwhelmingly in favor Of a re-
pudiation of Mr. Bryans scheme.
At present there is every prospect that resolu-
tions pointing the injustice and economic weak
ness of the plan will be adopted.
The currency question is also engaging consid-
cradle attention the part Of the delegates. the
general sentiment being that some constructive
legislation should be passed by the next Congress
The Aldrich bill is regarded as merely an erner-
eency measure. A number of its provisions are
obnoxious to the banking fraternity. A meeting
of the currency commission of the American Bank
ers' Association held to-day. but no formal
action was taken the question The bill Of lad
ing committee also met Plans for carrying on
the fight against the railroads for uniform bills of
lading were discussed.
The trust company section will hold its conren-
zion tomorrow 1t is expected that contest will
develop over the selection of e. secretary for the
ensuing year Among the candidates mentioned
are Philip s. Babcock the retiring president, for
mer vice-president Of the Trust Company of Amer
lea; A. N. Barrett vice-president Of the Guardian
Trust Company of New York, and Clay Herrick,
OF Ohio