The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-06-11
CENTRAL BANK
AS PANACEA FOR
FINANCIAL ILLS.
Princeton Man Advo-
Gates National Clear
ing House.
HE ADDRESSES
STATE BANKERS
Says Country Needs Financial
Reform Which Will Relegate
the Tariff to Second or Third
Place in Revenue System.
Scores Methods of Fed
eral Government.
ny WILLIAM II. SMITH.

BY WILLIAM II. SMITH.
Old Point Comfort, Va. Juno 10
Advantages of central bank. either
VI a commercial type. with innumerable
branches, or az bank for bankers. to
serve as a depositary for reserve funds
and az A national clearing house. were
ably discussed before the seventeenth
annual convention OF the Virginia
Bankers Association, in session at tho
Hotel Chambcrlin. this morning by
Royal Meeker. professor OF political
economy at Princeton University. His
address. which was decidedly iheoret
ical and economic in character, fol-
lowed an interesting paper from Rob-
srt E. James, president of the East
ern Trust Company of Easton. Pa.
snd president of tho Pennsylvania
Bankers Association, who spoke on
Segregation of Deposits"
Means Untold Injury.
Mr.. James vigorously opposed the
plan for postal savings banks as un-
necessary and unwise He claimed
that such plan would carry untold
.njury in its wake and be productive
of benefit TO no one.
Hon Charles Nascl. Secretary of
Commerce and Labor, who had been
expected to speak at the afternoon se3-
he is expected to arrive tomorrow
morning.
The second day OF the convention
closed with a brilliant banquet at tho
Chamberlln. at which George Bryan.
of Richmond. acted as POSTMASTER.
The speakers were Colonel John
r. Bru;on. of Wilson, y. c., pres
ident OF the National Bank of WILSON,
DR.. Francis Harvey Greene, president,
nj
Westchester, Pa; Hon. Job E. Hedges,
OF the New York City bar, and Major
j. C. Hemphill, editor or the Richmond
Times-Dispatch.
The reports of committees. election
OF officers and other business VIII take
place morrow. following the address
of Secretary Nagel.
At the opening of the session TINS
morning the following committee was
named TO report series OF nominal
tions for the various Offices: Walker
scott. Farmville, r. G. Vance, Wayncs-
boro; j. NJ Hurt, Blackstone; w. a
Goodwin, Norfolk; Z. B. Spencer. Roa-
noke.
George A. schmeitz, of Newport News
and Hampton, was appointed vice-prcs-
ident for Virginia of the American
Bankers Association, which meets IN
Los Angeles, Cal, in october. and w.
Al. Addison, OF Richmond. was appoint
ed a member OF the nominating COM
nittee from Virginia OF the American
Bankers Association
On resolution offered by MIR.
Schmeltz, seconded by John NJ. Miller.
Jr, and w. M. Addison. OF Richmond
and others. the program of the con-
yention for next year will be so ar
ranged as to provide on the second dag
for one or more papers and general
informal discussion of the peculiar
nroblems which confront Virginia bank
ers.
The convention gave TO the two
speakers OF the morning rising vote
OF thanks and ordered their addresses
printed for distribution.
Mr. James expressed himself as un-
willing to risk untried experiments
IN banking systems. especially where
such experiments are put forth by po-
1itical influences rather than by the
practical conditions OF the banking
business For American institutions
and conditions. he was certain that
capitalized banking provides greater
safeguards to the individual depositor
than any plan of mutual savings banks
yet devised. With the system at pres
ent in vogue, which provides both the
capital and the surplus as protec-
losses to depositors amount to prac-
tically nothing, either in State or ma
tional banks, citing the fact that IN
New York State In the panic year OF
1907 when depositarys conditions were
upset as never before by lack of pub
lie confidence, there was not one dollar
OF loss to bank depositors In all that
State
No Demand From People.
AS to the Federal postal savings
bank scheme, Mr.. James asserted, thar
there was no demand among the peo-
Pile at large for any such procedure.
AS to State or Federal guarantee OF
bank deposits, he expressed the hope
that neither his State-Pennsylvnnia
nor Virginia would ever be beguiled
into enacting into law so visionary a
scheme.
Mr. Meeker described himself as a
scientific theorist. He took the ground
that most Of the nanics from which
the country has suffered were inev1-
table. That no banking system would
save the country from occasional at
tacks OF collie. These attacks. he said,
were not brought on by unsound bank
ing, but We're rendered more aggra-
waited by lack of a. cooperative system,
The decentralization OF banking. Mr..
Meeker claimed, made necessary the
Keeping of a, maximum reserve, and
caused violent fluctuations in the In
terest rate Of call loans. He illustrat-
ed by suggesting that a city, instead
OF having a. common water supply,
with an ample reservoir In reserve,
should have an individual tank for
each house, and that each householder
be required by ordinance to keep his