The citizen. (Honesdale, Pa.) 1908-1914, 1909-01-15

FOR THE LEGISLATURE.
After Panic and Suspensions Bank
ing Institutions Have Not Only
Fully Recovered, but
Made Great Gains.

Albany, N. Y, Jan. 13.-Clark VII
liams, state superintendent Of banks
In his annual report submitted to the
legislature today calls attention to the
encroachment on the business of the
savings banks of the state by state
banks Of discount and trust compa-
MES as well as a growing tendency
on the part Of national banks doing
business in this state to operate inter-
est departments in competition with
savings banks.
Discussing the recovery of banking
interests from the financial panic Of a
year ago the report says:
The return OF public confidence in our
general banking institutions is shown by
their total resources as follows:
Dec, 1907 Nov, 1905
Trust companies. 81, ,0O1, ,S52952 81, ,426 659 559
Banks .............. 509,6SO,073 614,707, ,41
Total ,511 ,533, OPS $2041, ,366 $50
The decrease in resources from August
to December, 1907, of about 100000 has
been more than fully recovered through
an increase during the past twelve months
of 530.00O,O00.
The panic, the suspensions, the resump-
tions. the general housekeeping, the
remedial legislation, the material increase
in reserves, the increasing appreciation of
trusteeship, the growing conservatism and
the complete return Of public confidence
These factors, together with the reorgan-
izatton OF the department, have contrib
uted to place the general banking system
Of the state of New York upon a basis Of
which your honorable body may be Justly
proud.
No supervision over banking institu-
tions can be more effective than that ex-
ercised by committee of members of
voluntary association. Therefore l be-
lieve that proper restraint and discipline
through such an organization would pro-
duce respect for the regulations Of the as
sociation and an adherence to the prin-
ciples Of sound banking. 1t should be
pointed out that the present system by
which one institution clears for another
as Its clearing house agent may at times
involve serious dangers for both-dangers
which would be eliminated II one associa-
tion comprised all worthy institutions.
1t may be that some members of the
New York Clearing House association re-
gard membership so jealously as to lead
them to exclude others worthy of men,
bership from its prerogatives. even though
thereby sacrificing the public good. II
this Is the fact and Is bar to a repre-
sentation Of the banking power of Great
er New York in one association the for
ceive the earnest consideration of the
nonmember banks and the trust compa-
nies.
The total banking power Of the United
States is reported by the comptroller of
the currency to be ST 1853, ,O00, 900. My last
report to your honorable body stated the
total resources of the institutions under
the supervision of the banking depart
ment to be 50. 45S 100000. The most recent
reports to this department showed the to-
tai resources of these institutions to be
3,625, 100000, or nearly q per cent of the
banking power of the entire country.
. Superintendent Williams calls atten.
tion to the practice of receiving de-
pOsits and paying interest by depart
ment stores and suggests legislation
limiting the amount of the deposit
upon which interest may be paid.
Should that prove ineffective he favors
a law prohibiting absolutely the re-
ceiving Of deposits upon which inter-
est was promised directly or indirect
ly in connection with any business en-
terprise which included dealing in
goods, wares or merchandise.