New-York tribune., 1909-09-14
BANKERS TAKE ACTION
ON BILLS OF LADING.
TO Make Them Safe Negotiable
Paper-POstdL Banks Opposed

"a settled 70 the Satisfaction or bankers. carriers
snd shippers.
s,he association. voiced the opinion of 4 hundred
,s more bankers. carriers and shippers repre-
,,ssives, who held an all day conference on the
bsAcf Mercantile associations and railroad lines
,-.-e represented at the conference 8nd took mart
4, determining the form OF the resolutions seeking
,,,s and national laws for uniform bills Of Iadnc
TIE cry Of the bankers has long been for = hill
f lsdinE which would make the carrier issuing it
s,opsihe so that II would he a safe negotiable
,rstrurent. The shippers represented were equally
,,xious for solid foundation. and the Importance
a che question vas emphasized by Henry punksk
-xsideut Of fhe New York Mercantile FNchanse
no seclared that n the bill of lsdng Was not used
ss basis Of credit tho business of the country
,,fd come % a stsndstil or else become roncen-
,,st.d n the hands OF a few
The railroad representatives did not oppose the
,.sou,ions and this taken 10y rho bankers 80
,,slcate closer degree OF harmony than has pre-
vsled since heretofore the carriers liability has
hssn the principal bone OF contention.
IN addition 70 unanimous approval 10y the confer
nce the resolutions for uniform bill of ladng laws
-rsre acted on favorably by the executive council
~ The association late in the dav. and viii SO he
Gore the convention for final action The work of
ne other committees which met during the day
largely the preparation Of reports be submitted
70 the convention.
OPPOSE GUARANTY PLAN
The bank deposit guaranty plan and the postal
savings bank project We're froWned upon by the
sedersl legislative committee. which viii report ad
rerely on these propositions. and Viii suggest
substitute that the national hanks be permitted TO
o-zsnize savings banks with segregated capital.
The main meeting Of the afternoon vas the gath
s4nE Of the executive council Of the association, to
which al reports and resolutions destined for the
ronvsntiou must be submitted The session of the
ro1uci was behind closed doors. II was later an
rouuoed that the suggestions Of the various COM
-,it,ees had been approved without exception.
coincdent with the prelimiuaries for the main
convention the convention Of the National Associa-
non Of Supervisors of State Banks was held, at
uhich the supervisors from each state represented
outlined the condition of banks in their states
The representative from Kansas and oklahoma
tpoke strongly in favor of the guarantee laws now
in force in those states.
FOR SAVINGS DEPARTMENTS.
Pierre Jay president of tie association. in rec
ommending uniform banking laws IN an states,
spoke in favor OF legislation which VIII in All cases
separate the savings deposits from commercial ac-
counts II Is only 10y doing this. he declared, that
the establishment Of postal savings banks 10y the
government be prevented Nj Jay said:
Since we met. la June. 1915. Z question IN which
re are yiially interested, the safety uf bank de
,osts has been made one oI the major issues Of a
election OF a President pledged by his platform
10 create q postal savings bank In South Dakota.
Nebraska. kansas and rexas laws have been en-
acted guaranteeing The safety or deposits.
Of the country at least is not satisfied with the
conditions under which banking is now carried on
OF with the measure of protection which bank
supervision has managed TO give
I think IL is clear that the national bank act
and most OF the state banking laws only empower
the supervisor 70 see that the law IS obeyed- II
psnic of is6s 10 give 10 the supervisor power not
only 10 direct the dscontinuance OF unsafe and
unEound rractces. but after certain steps, TO take
possession Of and lquidate any bank which neglects
10 do under directons. IN addition TO recon-
in New York be enacted in every state It is also
Firsi-TEst the supervisor should be a practical
banker should have some other recognized
second-That politics should play 40 part in has
Thrd-Tfst he should have a free hand in Sc
iecting lis assistants.
Fourth-That his SIAN should be large enough 10
make thorough seIni-annual examinations
F1fth-And since am no longer supervise. o. =
may add that the salaries Ilaid sllohlo De ,1T "a
enough TO secure high grade oi men a. S1Fe'
,isoTs and examiners.
Among Jhs various regulations approved o. soC., .,
association there Is which seems 10 me o.
frsnscendsnt Importance Al this time II lS ; tle
savings deposits when tatte Ds coiill, iI &c l- n
be segregated from other deposits and invested ~
safest and best We are face 10 race VII ~ -,
savings banks legislation Il IS safe TO saE 10 I'D
men, scti1, n safe depositories for savings could
be provided 10y individual enoft
CALL FOR POSTAL BANKS.
u my opinion the postal savings, hank IS no
snatioual. q local Issue The call fof IL come
ron the West and South, where there ls no So,
iHgs bank legislation and where hanks are - Iai
and, New Jersey and Pennsylvania call FOR then
very little because the legislatures OF those states
have provided savings bank legislation. ,
II state banks all over the country were iiia'i
safe depositores for the savings Of the peoplf
here Is little doubt the agitation for the posia
savings bank would cease.
4 has already been adopted ia California Con
neciicut Massachusetts. Michigan, New tamp
fhife, Rhode Island Ohio and Texas rms pa
VII come before the coming convention OF itle "A
tlonal Bankers Association as the approved le6lS
latye programme of the law committee OF IL
saFiBGs bank section. and I have been told u D
heing colsId red 10y the National Monetary Com
mission
Tic plan requires complete segregation Of saving
ep9sils from commercial or other deposits OF a pam
ulst company. tho investments ana accoutIli
WAtcl &c kept separate from the other hlisl-
- - Z the - iaSs delaitmelt Neie ailo'ii, ~ T.,
tepk entirely. The wings deposits must be ~
festod ~ ouiv ihc laws of the state permit. u
ease u failure tie assets Of the savings ocpaIi
asHt nav be Isod to pas on the sati ings depositpl'
irst ans cen II those assets should prove insut
tcielt the savings slepostors have equal clalu
With ether creditors on :he general assets of tl'
~nk and upon the liabilities Of The ttockholders.
. Thee csH be little doubt that the aooptlon %
MS plsn with rigid supervision. would create tn
Ihoenc" necessary 10 bring into circulation man,
'liionF ~ savings Which are now being hoarded.
- ~ morning session the currency commission
q tho bankers association drafted the report %
ne Iragreas which is 10 he submitted 10 the mali
paveatlou sud decided to take no action until th'
report ~ the federal monetary commission hal
teen MADE
The bankers Of Chicago gave a dinner for the *
'c'.ge council of the American Bankers AEsocia
10 Tonight Joseph 6. Cannon Speaker Of tn
olff ~ Tep7escntatlf was the principal speaker
IL ssia.
Tbs IS q so' ernment by the peorle The peopl
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