The Montgomery advertiser., 1909-09-18
TURNS DOWN POSTAL BANKS Bankers Association Scorns Proposition. HITS AT GUARANTY DEPOSITS Leader Of Financiers Scores Pro-
 posed Changes. Declares Danger of Political Use of Such Power should Cause All
 Patriotic Men to
 Hesitate.

Chicago, ILL, Sept. 17.--After live days consideration and discussion of financial problems of greater or lesser import. the delegates to the thirty fifth annual convention of the Ameri can Bankers Association today select, ed Los Angeles as their next meeting place, and adjourned until the fall of next year.
 Among the results of the conference of bankers numbering close to 5000 and representing every State in the union, their unanimous condemnation of postal savings banks and against guaranteeing bank deposits, stands out distinctly.
 On the affirmative side, strong sen timent favoring the establishment of a central bank for the entire country received approval from many bankers and was advocated in the annual ad- dress of the president, George M. Rey- holds. of the Continental National Bank of Chicago.
 In criticising these two propositions Arthur Reynolds, of Des Moines, Ia., Chairman of the Federal Legislative Committee, referring to the postal sav- ings bank. declared that the danger of the political use of such a power should cause all patriotic men to hesi- tate before adopting such a radical measure"
 He also took issue with President Taft on the question of the investment of the funds deposited in such savings banks. In this connection he declared that the Legislative Committee was opposed, should postal savings bank bill become law. to the investing of such funds in either United State bonds. or state and municipal bonds
 "The investment of $600,000, ,000 or $700, 000,000 In United States bonds as has been advocated recently by our chief executive," he said. would be a serious mistake and menace to our nations credit as 1t is to other coun- tries. where such investments are made"
 Different groups of the bankers in the section meetings came out strong ly in favor of permitting national banks to establish separate savings bank departments with funds segregat- ed from the other interest of the bank and savings deposits specially protect ed.
 A resolution pledging the association to seek legislation looking to the es- tablishment of such segregated savings departments. failed of passage today and was referred to the currency com- mission for consideration.
 III the OplnlOn or some or the OmcerS of the association one of the greatest results accomplished was the awaken ing of interest in the need of co-op- eration between the comptroller of the currency, the federal bank examiners, the State bank examiners. the clearing houses and the directors of banking in stitutions on the careful and judicial examination of banks, both national and State
 The need of constant vigilance and increased exactness In bank examina- tions was the burden of an address by James B. Forgan, of Chicago today, in which he declared his perfect accord with the plea for cooperation in bank examination made by Comptroller Mur. ray earlier in the convention. The movement for the establishment of uniform bills of lading which would be safe as negotiable instruments re- ceived strong endorsement, and the ne- cessity of ample cash reserves in bank ing institutions was voiced.
 Without dissent, the convention to- day adopted the following resolutions touching the postal savings bank prob lem:
 Resolved. that 1t Is the sense of this association that we should con- demn In unqualified terms the propo- sition for the esta blishment of postal l savings banks or any other system by which the government enters directly into banking competition with the peo- pie.
 Resolved that the American Bank ers Association is opposed to any fi- l nancial legislation based on the argu- | ment that 1t was a party pledge and should be redeemed.
 Resolved that we believe the pro- posed plan to invest postal savings bank deposits to the extent of six or 1.zs 1@I1 ed States bonds simply to maintain such bonds at par Is unsafe and un- wise legislation and If enacted would ultimately lead to lack of confidence in our national credit" Before adjournment the standing law committee made It's report recommend ing that the association advocate leg islation in all the states to punish the making of a false statement to ob- tain credit; to punish the making of derogatory statements affecting bank to define the crime of burglary with explosives and fix the punishment for it and legislation relative to the pay ment of deposits in trust. Without opposition, Lewis E. Pier son. of New York, former vice presi- l dent was elected president of the aS- | sociation and F. 0. Watts, of Nash . vile, was made first vice president, be- | ing advanced from the chalrmanship of the executive council. Secretary Fred Farnsworth. of New | York: Treasurer P. c. Kaufman, of Ia coma Wash: Assistant Secretary Will liam G. Fitzwilson, of New York. and General Counsel Thomas B. Patton. ot l New York. were reelected by an unan- imous vote. No definite date was fixA l for the convention in Los Angeles next
 year. The 1910 convention will be held however. between October Is and No. | Yember Is.