The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1908-05-24
LIVELY TILT WITH
BANK PRESIDENT
James B. Forgan Took Ex-
ception to Mr.. Bryan's Re.
marks = Bryan Declares
Law Was Not Enforced in
New York During the Re-
cent Panic.
cv Associated Press.

-
Chicago. M, May ga spirited
tilt between William J. Bryan and
James b. Forgan. president OF the
First National Bank of Chicago, was
feature last nicht at the dinner o.
the Bankers Club Of Chicago i'm the
Auditorium annex. Mr.. Bryan, in the
course CT an address to the bankers,
found occasion to say:
1T appeared in the Walsh case
here in Chicago, that the. law as to
loaning bv national banks is directory
only, and that no penalty is attached
for the lean of more than 10 per cent
of fSe capital and surplus to one in
dividual
"No penalty. at least. except such
as may be imposed in the discretion
OF the comptroller. And what is the
situation? If bank loans more than
the prescribed 10 per cent it is noti-
fled not to do it again. II the bank
continues to loan more than 10 per
If it keeps en-. it keeps on being notl-
fed. Am / not right"
A Coterie CT bankers and business
men in the rear of the room laughed
This was too much for MIR. Forgan.
The president CT the First National,
indeed. had Shown several indications
in earlier parts Of the speech of not
being in accord with the speaker.
Mr. Fcrg2n raised his hand depre-
catincly. But the law has been
changed said Mr.. Forgan, who ap-
pare1tly did not hear Mr.. Bryan use
the words capital and surplus" in
heading IN TO mis- point. The law
COW forbiS5 soaning 10 per cent OF
capital ard surplus"
''Aqd is there any penalty?" de-
mnnded Mr. Bryan in an aggressive
voice, and turning TO lcok at Mr..
Fcr-an, who sat to his right, four
seats away. at the speakers table.
There s no penalty" said MIR.
Forgan, 'tsF. the law is now enforced"
Mr.. Pryan gathered himself togeth-
er, leaned forward and extended his
arm into his fighting position.
'sWill any one tell me that the law
was enforced in New York during the
Iandc?' he cried.
He waited. There WAS no answer.
Mr.. Forg2n said nothing.
81 will stake my reputation" crisd
Mr. Bryan. more vehemently than
ever, and speaking slowly, that the
.iaw was net enforced i'm New York
during the panic"
Another pause. The room was en-
tirelY quiet. Bankers looked at M
Forgan. Mr.. Forgan looked at the
pink carnation before him. Mr.. Bry
an regarded the chandelier.
And / will say further" said Mr..
Bryan. smiling, that had the law
been enforced in New York during
the panic, the public would have been
a great deal worse"
Everybody laughed at that, including
Mr.. Forgan and the atmosphere be-
came clear again.
Mr.. Bryan then proceeded to un-
fold his theory that the criminal law
should he applied to bankers who in
fringe on the 10 per cent provision.
In my most emphatic belief" he
said, 1T should be made a criminal
cffense for a bank official 10 loan
more than 10 per cent OF the capital
and surplus TO one person. The Grim
|. inal law should be applied to such a
person. Don't you agree with me?"
We'll" he said, whether you
agree with me or not, let me tell you
that 100000 depositors In this
country will agree with me in the
proposition.
Mr.. Bryan declared for the guaran-
teed banking system such as Okla
homa has, where every bank stands
sponsor for every other bank. He
said that unless some such security
were offered to depoSitors to prevent
them from banking with the govern
mept by buying postal orders OF from
sending their money to Europe to be
banked in one of the government
would be forced to yield to the de-
mand for a postal savings bank.