The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1910-10-07
By Associated Press.

Dy AbSONldltu lCbos
Los Angeles, Cal, Oct. AT the
annual convention of the American
Bankers association here today, Lewis
E. Pierson, of New York, president of
the association, delivered his annual
address, saying in part:
''The past year has been an active
one for our association. Your postal
savings bank committee strenuously
opposed the adoption Of the law es-
tablishing such institutions, but in
spite of its efforts and the active work
of its indefatigable chairman, Mr..
Lucius Teter, president of the Chicago
Savings bank, congress enacted such
a law June %, 1910, through the in
sistence of the administration that the
lparty's pledge in its campaign plat
form should be carried out
"The opposition of our association
was based upon the principle that it is
as improper for the government to
extend it's paternalism and enter the
banking business as it would be to en-
ter the grocery or any other business;
that there would always be tempta-
tion on the part of succeeding admin
listrations to regard the deposits so re-
ceived as revenue rather than obliga-
tions; that such deposits, if accumu-
lated to vast amount and payable
on demand, would in any future war
crisis, weaken the nations credit when
that credit should be strongest; that,
while adopted in other countries, it is
a serious question whether it's ultim-
ate result there will not be found more
harmful than beneficial; and further,
that with our country so completely
and effectively served by savings in
Istitutions-in the east operated under
state laws and supervision of unques-
toned stability, and in the west by
savings departments in national and
Estate banks thus offering every facil-
Iity and protection, such a departure
Iby the national government is entire
ly unnecessary.
while the law, as passed, places it's
Operations in the hands of a commit
Itee somewhat as an experiment, it is
reported that there is being exerted
the political pressure for individual
benefit predicted by our members and
so repugnant to all principles of good
government
"The attitude of our association has
been justified in its opposition to the
bank guarantee heresy by reported
failure of that proposition in the state
OF Oklahoma where it originated, and
lit can only be hoped that congress
will heed the unanimous warnings of
our members as to the ultimate con-
: sequences of a postal savings bank
system and at an early date repeal
the present law.
During the year the failure of two
cotton houses and one grain concern
revealed bill of lading frauds totalling
nearly $1O,OO0,OOO.
This condition, long predicted by
your bill of lading committee, pre-
cipitated a loss of confidence in this
document as an instrument of value
to the extent of foreign bankers, large
ly affected through these frauds, pass
ed resolutions announcing their de-
termination to withhold acceptance of
drafts drawn against cotton export
bills of lading after October 81, 1910,
unless the American banks through
lwhose hands they passed would guar
antee both the genuineness of the sig
nature of the railroad agent on the
bill and the receipt of the cotton by
the railroad
This stand no doubt was Influenced
by the failure of our senate to enact
into law the Stevens bilL drawn to
hold issuing carriers liable for bills of
lading signed by authorized agents
whether or not the goods had been re-
ceived, which bill, by a vote suspend
ing 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
numerous conferences between com
merical bodies, representatives of rail-
roads and your bill of lading commit
tee, and a special subcommittee of
New York bankers, that have resulted
in an agreement upon form of valid
alton certificate which is now being
attached to cotton export order bills
of lading by nearly all the cotton car
rying railroads.
by the adoption of this valuation
it is believed that the protection
sought by foreign bankers has been
attained without the necessity for the
guarantee stipulated in their resolu-
ton, as the use of the certificate will
tend to prevent forged bills as well