Omaha daily bee., 1909-05-15
Council Bluffs
CONGRESSMAN SMITH BLUNT
Tells Bankers Guaranty Law is Com
ing in Near Future.
ALSO POSTAL SAVINGS BANKS
Bankers Advised Not TO Leave Draw
ing of the Law to Politicians,
but 20 jump in and Aid
In Making IL.

Bankers nf southwestern iowa who gath
cred at the Grand hotel Thursday for the
annual meeting OF group 8 Of the Iowa
state Bankers association were told in
plain language by Congressman Walter L.
Smith that they might look for both guar
anty laws and postal savings banks in the
near future and that the sooner they real
lied this the better.
Mr.. Smith had been invited TO address
the meeting on the question. Should Bank
ers Aid in the Preparation Of the Postal
Savings Bank Bill?' He advised them that
they should. at will be the part OF wis
dom, almost self-preservation," said Judge
Smith, "f the bankers of this country
cease devoting their time to fighting such
a law and join in the work Of securing
the very best measure possible.
IF there is any class of men able to
comprehend the requirements Of such a
law, a law that will inflict the least dam
age upon the financial institutions of the
country, it is the bankers of the coun-
try. If you leave the drawing of the meas
ure wholly to politicians, as you call them,
refusing them the assistance of your
knowledge and wisdom, the law as finally
framed will be far less acceptable to you.
II is your province to suggest a way to
prevent the draining of one part of the
country Of the currency and prevent the
escape of a large percentage OF the capt.
tai from its share Of responsibility for
debt paying and taxes. 1t is not merely
q question of the coming of the postal
savings bank, but of the character of the
law that will create 1t. Every country in
Europe has it. and the idea is uppermost
In the minds of many of the people of this
country.
THE guaranty plan is meeting with
much favor, not only where 1t has been
adopted, but in almost all Of the western
states. l am inclined to believe that IL
will probably become general before con-
Eress has framed the best kind OF a postal
savings bank measure. II the bankers con-
tinue to place themselves in the attitude
of opposing these two measures they Will
simply increase popular clamor for the en-
actment of both.
Chairman Hunter Disagrees.
James Hunter of Mlnden, chairman OF
group five, who presided over the meeting
did not take the same view of the situa'
ton as did Congressman Smith. In MS
opening remarks Mr., Hunter said; There
have been some changes in the sentiments
OF the group, when most of the members
taking 1t for granted that the people hac
accepted tho lead of the politicians ano
that a law In Iowa calling for the guaranty
of deposits in all Of the state banks was a
certainty, had accepted what they thought
was the inevitable and went home to figure
the extra cost. But the people do not seen
to have followed the politicians and now
about all we hear concerning the proposed
law are declarations that it is inimical &c
the best interests of the people as well al
of the bankers, and that it's enactment |!
in the far off distance"
In the general discussion which followed
visiting bankers from Omaha were invited
to express THEN opinions. Mr.. Eastman Of
the Omaha National bank said that so fai
the law In Nebraska had not developed any
disturbing influence, but that it would bt
at last a year before an intelligent opin
ION could be formed. Cashier French o
the South Omaha National bank declared
the Nebraska bankers were beginning Il
regard the law with favor. Its creates
benefit, he said, had been to secure safe
and saner inspection Of the banks and thi
alone would insure against bank failures
Carl +. Kuehnle of Denison, l.. +. Pot
ter OF Harlan and d.. l.. HeinEheimer o
Glenwood spoke in favor OF the forma
ton of a state board of examiners to b,
composed of experts so as to make banl
examinations more than a farce. witt
such Independent inspection, they claimed
no disturbance could be made by an,
form of a guaranty law in Iowa, for will
the rigid investigation. including the in
vestlgation of the bank directors, Their,
would be no chance of bank failures. Th,
idea met with favor at the hands of tn
meeting and the matter was ordered to b.
brought TO the attention Of the state as
ISOLATION at its next meeting.
Opposes Postal Savings.
T. II. Read Of Shenandoah read an ex
haustive paper on Postal Savings Banks.
Mr.. Read opposed the plan as n-Ameri
can and as antagonistic to the successful
business methods that have given Amerlc
its prominence in the world. The argu
ments used by Mr.. Read against the propo
sition were fully In accord with the senti
ment of the meeting and a resolution wa
adopted instructing the ? secretary to sen
a copy of the paper to the National Bank
ers' association at Chicago,
V. Z. Bender, on behalf of the CONNER
olal club, delivered an address of welcome
which was responded to by Carl F, Kuehnl
OF Denison.
The following officers were elected
Chairman, George w, Coe, Woodbine; sec
rotary. r.. G. Permission, Defiance; execu
tive committee. Ernest L. Hart, Angus
Beresheim, C. e. Price, Council Bluffs
L. f. Potter, Harlan; c.. N. Wood, Logan
The meeting was the largest held in tn
history Of group 5, over eighty member
and guests sitting down 10 the luncheo
which followed the morning session an
which brought the annual meeting to
close.