The San Francisco call., 1908-03-05

restore confidence ana reduce the rates
of interest.r-George A. Story of the
Mutual savings bank AT the same
sion.
Hope for the immediate regeneration
of San Francisco's financial prosperity
was expressed and reiterated by w. E.
Palmer. cashier and secretary of the
Humboldt savings bank, and by George
A Story, cashier of the Mutual savings
bank, at the Investigation conducted by
the joint legislative investigation COM
mittee into the banking laws of Cali
fornia yesterday afternoon in the ferry
building.
Palmer. Story and Lowell White,
cashier and secretary of the San Fran
cisco savings union, as representatives
of the San Francisco savings banks
association. were called into cinfer-
ence with the members of the commit
tee to discuss possible reforms in the
state banking statutes. and during the
course of the session discussion of the
financial situation was precipitated by
Lowell White, who spoke pessimisticaliy
of the city's condition, saying that it
was still poor as a consequence of the
destruction of $500. 100000 of capital in
the disaster of April. 1906 Then
Palmer and Story took up the gage, in
timating that in short time the saw
lHeS DdAhS WoulO I6Scl0O the With
drawal clause as affecting depositors
in any but the largest transactions.
LEGISLATORS WANT TO KNOW
Senator E. l. Wolfe gave promise Of
exciting work for the committee next
week.
At an early date said Wolfe. this
committee wants to investigate the af-
fairs Of the California safe deposit and
trust company. It has been said here
that bankers knew of the conditions of
that institution for several years and
want to find out why it was that the
bank commissioners could not know
that and inform the public, so that it
would have been protected. We want
TO look also into the relations of the
bank commissioners with that bank. II
any bank commissioner was to blame
we want to place responsibility
If anything was wrong you want to
know why the commissioners didn't
know it," suggested Robert L. Boards
ley. speaker of the assembly at the last
session, who sat with the committee
yesterday afternoon.
We might get hold of a hot stick, .
said Stanton, cautiously
Bank Commissioner Lynch said that
c. H. Dunsmoor, c. E. Currier and
Herman Silver were commissioners
during that period.
Senator F. w. Leavitt, chairman of
the committee, suggested that they be
subpenaed, and set the investigation
for early next week as the present
weeks program had been planned. This
morning the trust companies repre-
sentatives will be heard. and Friday the
attorney generals Office and Judge
Sturtevant are to be present on invita-
tion of the committee.
The first matter taken UP in the
conference with the savings bank peo-
pie was the question of depositing saw
ings banks funds in commercial banks,
which is now prohibited by law which
is conseientiously disregarded.
LOWELL WHITES VIEWS
Lowell White asked permission to
read communication addressed to the
bank commissioners on the subject He
claimed that if the Legislature passed
such law it was an accidental act.
In financial affairs" he continued,
''money-gold coin, is the working tool
and each dollar should have a life SEN
tence of hard and continuous labor. If
any dollar is relieved Of this sentence
through boarding or by nonuse in any
form the public suffers
Continuing, he said that at the close
Of last June the savings banks of this
city held in cash or its equivalent
1885, ,4s7, or AZ per cent of their de-
posits. OF this sum s4,oss, ,1s6 was on
deposit with commercial banks and
trust companies. That drew per cent
interest. White asserted that no bank
Of this city ever lost money on a com
mercial bank deposit. He said that for
business purposes savings banks had
to have deposits in commercial banks
and that such deposits were not loans
He suggested that if the resources of
q bank fell below certain per cent it
should be prohibited from making
loans. and estimated that in times Of
calm per cent might be enough cash
on hand. while at other times per
cent might not be sufficient
In reply to question by Wolfe
White arrayed himself strongly with
those who believe in the complete sen
aration of savings and commercial
banks. He said there should be three
classes-savings and commercial banks
and trust companies, and that none
should be allowed to intrude into the
province OF another. He went further
and declared that the control of each
bank should be independent Of the con-
troll Of any other.
Commissioners Lynch had a further
contribution to the evil of mingled
banking concerns. He spoke Of local
commercial bank with $100O.O0O in
savings deposits, the depositors beliey
ing that they were guarded by the
savings bank laws when they were not.
Does the commercial bank tell the
deposition that he is so protected ?"
asked Leavitt.
Yes" replied Lynch. THAT is the
worst evil we have"
We have found a hundred things
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