Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-05-25
BRYAN AND FORGAN
HAVE SPIRITED TILT
cOMMONER BACKS FlNANClER
INTO CORNER
Wins His Point In Silence Thick
Enough to Cut, but Lets Antas-
onist Down Easily and
Magnanimously

BY Associated Press.
CHICAGO, May PA spirited tilt
between William ]. Bryan and James
r Forean. president of the First Ma
tional bank Of Chicago, was feature
at the dinner of the Bankers clup OF
Chicago in the Auditorium Annex. Mr..
Bryan in the course of an ADDRESS "
the bankers found occasion TO say
at appeared in the Walsh case mere
in Chicago that the law as to loanng
NV national banks is directory only,
and that no penalty is attached for the
loan of more than 10 per cent OF the
banks capital and surplus to one IN
5ividual-no penalty at least except
such as may be imposed in the discre-
tion of the comptroller. And what Is
This situation? If a bank loans more
than the prescribed 10 per cent, IL 10
notified not to do it again. If the pank
continues to loan more than 1o per
cent il is again notified not to do 1T
again. If 1t keeps on, IL Keeps Oh
being notified. Am l not right
A coterie of bankers and business
men in the rear of the room laughed.
This was too much for Mr.. Forgah:
The president of the First National
had indeed shown several indications
in earlier parts of the speech OF not
being In accord with the speaker. MT.
Forgan raised his hand deprecatinsiy;
"Rut the law has been changed,
said Mr.. Forgan, who apparently ala
not hear Mr. Bryan use the words
"capital and surplus in leading up to
his point. - -,
"The law now forbids loaning 10 per
cent on capital and surplus.
"And is there any penalty?" demand
ed Mr.. Bryan, turning to look at Mr.
Forgan.
"There is no penalty" said Mr.. For
gan, "but the law is now enforced:
BRYAN gathered himself together.
leaned forward and extended his arm
into his fighting position.
"Wiu anyone tell me that the law
was enforced in New York during the
panic?" he cried.
He waited. There was no answer.
Mr.. Forgan said nothing.
at will stake my reputation" criec
Mr., Bryan, more vehemently than pc
fore, and speaking slowly, "that ths
| law was not enforced In New Yorl
| during the panic"
Another pause. The room was en-
tirelv auiet. Bankers looked at Mr.
| Forgan. Mr.. Forgan looked at tn
mink carnation before him. Mr.. Bryan
regarded the chandelier.
"And / will say further" resumes
Mr.. Bryan, smilingly, that II the laN
had been enforced in New York durini
the panic, the panic would have Dee
a great deal worse"
Everybody laughed at that. includ
ing Mr.. Forgan. and the atmospher
became clear again.
Mr.. Bryan then proceeded to unfol
his theory that the criminal law shout
be applied to bankers who infringe tn
10 per cent provision.
"In my most emphatic BELIEF n
said. sit should be made criminal OF
Tense for bank official to loan NOR
than 10 per cent of the capital an
surplus to one person. The crimins
: law should be applied to such pei
son. Don't you agree with me?'
"Well," he said, whether you agre
with me or not. let me tell you tina
IL, OO0. 900 depositors will agree wit
.. me on this proposition"
Mr.. Bryan declared for the guarar
teed banking system, such as Okls
homa has, where every bank stanc
sponsor for every other bank. He sal
that unless such security were offere
to depositors to prevent them fro
banking with the government by bu!
ing postal orders or from sending the
money to Europe to be banked in or
of the government banks there, tn
5 country would be forced to yield
5 the demand for postal savings bank