Los Angeles herald., 1908-09-29
FIGHT SHY OF
POSTAL BANKS
AND GUARANTY
BANKERS ARE OPPOSED TO
PROPOSED REFORMS
DENVER CONVENTION DISCUSSES
VITAL ISSUES
Large Minority Tries to Prevent
Taking of Action, but Debate
Ends In Adoption Of
Resolution
[By Associated Press.1


II ENvER, Sept. 2S.-The most i'm
portant discussion in the savings
~ bank section of the American
Bankers association occurred at the
afternoon session, when the question of
postal savings banks and the guaranty
of bank deposits were taken UP.
While it was evident the sentiment
was practically unanimous against pos
tai savings and against the guaranty
idea, large minority tried to prevent
action on the latter question, contend
ing it was matter for the convention
of all the members of the association
to decide upon and not for single
section.
John Schuette of Wisconsin was the
only speaker in favor of the guaranty
bank deposits He opposed the estab-
1ishment of postal savings banks on the
ground that it would establish $4,000
banks in the country to compete with
the other banks of the country. lie
favored the guaranty bank deposit
plan in order to avert the postal saw
ings banks and declared the bankers
of the country would have to face one
or the other of these issues.
Former Governor Myron L. Herrlck
of Ohio then offered the following res
olution:
Herrck's Resolution
whereas, this savings bank section
of the American Bankers association
represents the savings of the people OF
the United States, and
Whereas, the record of these banks
for conservatism, stability and unsel-
fish devotion to the interests OF their de-
positors is unparalleled in any coun-
try in the world, and
whereas, the loss to their depos-
itors has been so small as to be abso-
lutely a neglible quantity, therefore
be 1t
''Resolved, That inasmuch as any
plan or scheme to make each of these
banks responsible by taxation or assess
ment for the acts of one another, or TO
connect them with the national bank
ing system, is economically unsound III
principle, confiscatory in form and in
inical to the best interests of its de-
positors, stockholders and borrowers.
1t would discourage individual initia-
tive, the best product of the American
mind. 1t is a specious form of pater-
nalism and socialism. 1t would tend to
encourage speculation and an undue
expansion of credit, therefore be 1t
Resolved, That we enter the most
solemn protest against enaction into
law either by states or nation of any
principles so subversive to sound econ
omics and revolutionary In character"
After q heated debate c. r. Breckin-
ridge of Fort Smith, Ark, offered a
substitute to the effect that action on
the resolution be deferred until after
the question came up before the gen.
eral convention. This substitute was
voted down, 80 to 49, and Governor Her
ricks resolution was then adopted.
Oppose Postal Banks
After a discussion of postal savings
banks, a motion was Acarried placing
the savings bank section in opposition
to the establishment of postal savings
banks and asking the support of the
American Bankers association in this
opposition.
j. H. johnson of Detroit was elected
president of the savings bank section
and William r. Greer vice president,
William Hanart was reelected secre-
tary by the executive committee.
w. T. Ravenscroft of Denver, A. w.
Johnstone of Schenectady, N. Y, and
r. J. Wood of New Orleans were elect
ed new members of the executive COM
mittee.
A vice president from each state was
also named before the convention ad-
journed.
The clearing house section also held
it's convention this afternoon. Besides
the report of the secretary and routine
work there were several addresses, and
the matter of bank guaranty was also
brought UP and condemned.
The following officers were elected:
President, E. c. McDougal, Rochester;
vice president. Sol Wexler. New Or
leans executive committee, c. A. Rug
giles of Boston and Ralph A. Van Wee
tenberg of Chicago.
At a meeting of the executive COM
mittee after adjournment Fred Z.
Farnsworth was reelected secretary.