The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-10-05
Ch5sdron Cry
FOR FlErcHER'S
G q 8 Q RIA
BANKERS TALK
GREAT PROBLEMS
Continued from Page One

SphbihuSu liOul i dEC lH9
money was ordered turned over 10 the
Los Angelica Clearing House association.
One of the largest and most elaborate
balls ever given in California was held
at Shrine auditorium tonight in honor
OF the visiting bankers and their
tamllles and friends. The immense
hall was magniGcently decorated. There
were over 1000 people in attendance.
The morning session of the convcn-
ton was devoted to addresses and re-
ports Of President Pierson. General
Secretary Farnsworth, Treasurer P G..
Kaufman and General Counsel Thomas
B. Patton.
Presidents Address.
President Pierson spoke IN part as
follows:
The past year has been an active
one for our association. Your postal
savings bank committee strcnuously op.
posed the adoption Of the law esta blish
ing such institutions. but in spite of its
efforts and The active work Of its in
defatigable chairman. Mr.. Lucius Teter,
president Of the Chicago savings bank,
congress enacted such law June %,
1910, through the iusistence of tho ad
mimstratiou that tho party s pledge in
lis campaign platform should be carried
out
"The opposition of our association
was based upon the principle that it is
rs improper for the government 10 ex-
tend It's paternalism and enter the bank
lug business az il would be TO enter the
grocery OF any other business, that
Inere would always bo q temptation on
tbc part Of succeeding administrations
TO regard tho deposits so received as
revenue rather than obligations; that
such deposits, If accumulated to vast
amount and payable on demand, would
in any fulure war Crisis, weaken the ma
ton s credit when that credit should be
st-cnGcst: that. while adopted in other
countries. at is q serious question whctb-
CT IT. Ultimate result there will not DC
found more harmful than beneficial; +;
and further, that with our country SO
completely and effectively served by
savings insiitutions-In the east oper-
atcd under state laws and supervision
of unqucstloncd stability, and in the
west by savings departments in nation
ii and state banks-thus Offering every
facility and protection, such depsf-
ture by the national government is en-
tircly unnecessary.
"'WhIlc the law. as passed, places it's
in the hands of committee
somewhat as an experiment, it is re-
ported that there is being eyerted the
political pressure for individual benefit
predicted by our members and so repug.
rant 10 all principles of good govern"
ucnt.
Justtes Attitude.
"The attitude of our association has
been justified in its opposition TO the
bank guarantee heresy by the rcported
failure of that proposition in the state
of Oklahoma where 1T originated, and II
can only be hoped that congress VIII heed
the unanimous warnings OF our memners
as TO the ultimate consequences of a
postal savings bank system and at an
early date repeal the present law,
During the year the failure or two
cotton houses and one grain concern &c
vcaled bill Of lading frauds totaling near
This condition. long predicted by your
niIl OF lading committee, precipiiatcd
loss of confidence in this document as an
instrument of value to the extent or for
eign bankers. largely affected through
these frauds passed resolutions announc-
ing their determination 10 withhold ac~
ccptance OF drafts drawn against cotton
export bills OF ladng after October II.
1910 unless the American banks through
whose hands they passed would suaran-
ture of tho railroad agent on the bill and
the receipt OF the cotton by the rail-
road
''ThIs stand no doubt was influenced
law the Stevens bill, drawn 10 hold is
suing carriers liable for bills Of lading
signed by authorized agents whether or
not the goods had been received. which
bill, By a vote suspending the rules OF
the house, was passed by that body
earlier in the session,
.In view OF these conditions and the
necessity for action there have been nu-
merous conferences between commercial
bodies representatives Of railroads and
YOUR bill OF ladinE committee. and a spc-
cial subcommittee OF New York bankers.
that have resulted in an agreement upon
q form OF validation certificate, which Is
now being attached TO cotton export bills
OF lading by nearly all the cotton carry
Ing railroads.
7By the adoption OF this valuation IL
is believed that the protection sought by
foreign bankers has been attained with
out the necessity for tho guarantee sttpu-
lated in their resolution, aS the use OF
The certificate will tend 10 prevent forged
bills as we'll as the issuance OF bills where
no goods have been received, and In
Judgment or competent authorities an
other step toward the solution OF this
and important problem
Tho annual report OF the general sec.
rctarv read today by Secretary Fred
Farns nsworth shows that the association
has a total membership OF LAOS banks
and that the aggregate capital. surplus
and deposits OF membership is alA'ooo'
mn