New-York tribune., 1908-02-19
BANK BILLS UNOPPOSED
Little Serious Opposition at Hearing
Amendments asked For.
IBy Telegraph to The Tribune ]


Albany. Feb. 1S.-PractcaIly no serious oppo-
siton manifested by either state banks or
trust companies the hearing held this after
noon by the joint committees banks the
bills increasing the reserve which such institu
tons must carry in their vaults. Senator Gates,
chairman of the committee, said near the end of
the hearing: Our committee has been looking
for some one to seriously oppose these bills and
we are still looking for him
The two bills on which the hearing held
were drafted by Superintendent Clark Williams
of the State Banking Department and were in
troduced by the Banking committees of both
houses as committee bills. One increases the
reserve of state banks from Is TO % per cent in
New York City, and from 10 TO 10 per cent in
upstate cities. and the other provides that the u
per cent reserve of trust companies in New
York City and 10 per cent in upstate cities shall
consist OF cash,
It expected in some quarters that the
trust company bill! would be opposed. but Seymour
Van Sanford, president of the Security Trust
Company of Troy, representing the New York
State Trust Companies Association, declared
that in the main the trust companies Of the
state we're IN favor of the bill He said that
his association represented sixty-six out Of
eighty-seven trust companies Of the state.
twenty-stx out of thirty-seven in Manhattan, all
twelve in Brooklyn and twenry-eight out Of
While we believe the cash reserve is more
than is necessary. if this bill becomes a law the
trust companies will obey it. believe in this
bin. Il comes pretty near being q. concensus Of
opinion OF conservative banking men as a safe
and sane basis of reserve"
Objections to certain minor details were pre-
sented. but in the main both bills were not serl-
oUsly opposed. Amendments were suggested as
to their working operation but all the speakers
expressed their confidence in the Superintendent
of Banks and in his measures for reform.
n. o Stanley. Of the Title and Guaranty
Trust Company OF New York, asked that the
time of making the increased reserve should De
post tponed from January to February 1. 1909.
III order to meet 4 more favorable condition OF
the money market.
& H Fancher cashier Of tire Fifth Avenue
Bank Of New York City. said that he would like
10 see trust companies hold the same reserve as
state banks Those who seeking lower
reserve" he said. seem to be trying 10 see how
close they can run TO the danger line and yet
avoid failure
Mr-ya2 Sanford objected 20 the provision Civ
ing the superintendent power TO declare trust
company insolyent in case its reserve is not
maintained for thirty days in succession
Controller GIynn submitted amendment
exernpting state bonds from the funds on which
a reserve must be kept. This amendment was
offered. II was said. simply TO enhance the value
~ state bonds which are now at g low ebb.
Regarding the reserve O? state banks TO or
1,osition was EXPRESSED, but ". G. Nash, repre-
ser-ting the New York State Banker 8 Assocla-
ton. favored the proposition in the bills lie
urged. however, more equality between national
and state banks.
The committee held an executive session at'eF
the hearing. but did not report the bills.