New-York tribune., 1909-09-18
BANKERS MEETING ENDS
NEW YORKER PRESIDENT.
Association Steadfast IN Opposition
TO oP0Std Banks and the Guarantee.


and discussion of financial problems. the Delegates
20 the thirty-hfth annual convention of the Amer
ioan Bankers Association to-day selected 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 five thousand and representing
every state in the union. their practically ulahlih
Gus condemnation Of postal savings bahks anu
LEGISLATION guaranteeing bank deposits stands Out
distinctly.
on the affirmative side strong sentiment favoring
the establishment Of central bank for me eH-lre
country received approval from many bankers ana
was advocated in the annual address or the presi-
dent, George NJ Reynolds, Of the Continental Ma
tional Bank Of Chicago. Different groups OF the
bankers IN the section meetings came OUT stroheIy
IN favor OF permitting national banks TO establish
separate savings bank departments With funds
segregated from the other interests of the banks
and savings deposits specially protected
resolution pledging the association 10 seek leg
islation looking the establishment OF such sesre-
gated savings departments failed OF passage to-day,
and as referred 10 the currency commission for
3.s consideration.
In the opinion OF some Of the officers of the asso-
ciatIon one Of the greatest results accomplished
was the awakening OF interest in The need Of CO
operation between the Controller of The Currency.
the federal bank examiners, the state bank exam
iners the clearing and the directors of bank
ing institutions on the careful and intelligent eX-
animation OF hanks. both nationsl and state.
The need OF constant vigilance and increased ex-
scrness IN bank examinations the burden of an
address by James B. Forgan. OF Chicago to-day, IN
which he declared his perfect accord with the plea
for cooperation in bank examination made by Con
tToller Murray earlier IN the convention.
FOR UNIFORM BILLS OF LADING.
The movement for The establishment of uniform
bills Of lading which would be safe as negotiable
Instruments, received impetus from the convention
and strong Endorsement of the necessity Of an ample
cash reserve in banking institutions was voiced.
Without dissent. the convention to-day adopted
hank problem:
Resolved. That It is the sense OF this associa-
tion that should condeInn IN Inqualiied terms
savings banks or any other system by which the
government enters directly into banking relations
Resolved. That the American Bankers Associa-
upon the a11ment that it was party pledge and
Resolved That We believe the proposed plan TO
invest postal savings bank deposits 10 the extent
states bonds simply TO maintain such bonds at
par, is unsafe and unWise legislation, and II en-
acted would ultimately lead TO lack Of confidence
in our national credit
The standing law committee made report
omrnending that the association advocate legisla-
ton in all the states TO punish The making of
false statement TO obtain credit. 10 punish the
making OF derogatory statements affecting bank.
define the crime Of burglary with explosives and
sx the punishment it. and legislation relative 10
the payment OF deposits in trust.
feature OF the closing day was an address hy
Dr. John G Kilgo president OF Trinity College
Durham N G, on American Industrialsm' who
departed from the technical and financial matters
on which the convention hinged and lauded the
workers OF America He said:
In our industrialism IL is honor 10 work. a
disgrace 10 be idle. And IN the great army OF
American laborers there will he found none who
none who devote more wisdom TO their tasks. than
E1gS hSus 3 seycs a. works harder than Mr. Morgan?
Who gave a greater number OF hours ana nor =
livery great industrial enterprise in America is d
monument 10 the working spirit OF our capitalists
Differences of opinion between the banks and the
surety companies on the rates proper for deposi-
tory bonds were left by the convention for settle
Tnent by the executive council, and The legislative
COMMITTEES was directed TO consider the question Of
organizing companies 10 insure deposits
Without opposition Lewis L. Pierson, of New
York former vice-president. was elected president
of the association and r. o. Watts, Of Nashville,
was made first vioe-president, being advanced from
the Craftsmanship Of the executive council.
William Livingstone, president of the Dime Sav-
ings Bank, of Detroit. was elected chairman Of tie
executive council; The secretary. Fred J.. Farms
worth, OF New York: the treasurer. i. {. hauh-
mann, OF Tacoma Wash; the assistant secretary.
william G. Fitz-Wison. of New York. and the
general counsel, Thomas y. Patton, Of New York.
were reelected.
MIR. FoRGAN's ADDRESS
in his address THE Efficiency and the Limita-
lions OF Bank Supervision by Examination and the
Responsible Source OF Bank Mana agernent." Mr..
Forgsn said:
A serious defect in the bank act. as The courts
the Controller not misdemeanor a arc false
entries IN the books and false statements made
with intent 10 1njure defraud the bank Itself.
Tected The making Of false reports ,l to Inc Con-
troller should be regarded the most heinous
oftence OF It's kind, and should be punished accord
tngly. A false report 10 him means fraud the
public whose representative ne is II should he
part OF the duty Of examiners 10 check up reports
made TO the Controller
The integrity of the system depends on tie re-
uablllfy OF the statements made from time time
70 the Controller aud published in the newspapers.
There should be weakness in the ADMINISTERS tion
Of the Controllers office regard 20 the criminal
hosecutloh oI haIlk "iicefs VINO are guilty of
ialsincatlon or lniSrepresentatiOn Such offences
should be nipped in the bud When an examiner
discovers anything in the books. the securities tho
loans, or khe records that miSrcpresents actual
conditions. H. should be a for criminal pro
ceedings and the law should joe such as To facili-
tate prompt action.
house supervision IN the interests Of associat ed
hanks. As YOU are doubtless All aware this
method or local supervision first inaugurated
~ thlcago thfee years ago its main strength is
derived from the fact that n was evolved from
Tic voluntary action Of the banks themselves for
Ihelf own beneflt individually aud for their pro-
lection collectively. Thus Its Just powers are
rived from the consent OF the governed" Similar
bureaus have since been organized in St Louis
Minneapolis, ST. Paul. San Francisco. Kansas city
Angeles, while other cities are showing their ina
FITS 10 be derived from them.
IL may be said that bank supervision by exam
while probably the best and effective externa
supervision possible has its limitations which
IL should not be held TO a degree OF responslbity
which il does not assume.
DIRECTORS AS SUPERVISORS
We viii now consider supervision by directors
in whom is vested the primary responsibility for
bank management Their supervision is in the