New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-30
A DISCUSS GRADY BILL
.,,,o Banks and Trust Com
''n NAMES Arrange Conference.
poNp MEN FAVOR MEASURE?
.a,;o,s Seek Identity of Sena.
.nr's Principals, Who Would
weaken System, They Say.

-. st,to banks and trust COM
itch are members OF the New
pam clearing House Association are to
io'N Inference to-day at the offices OF
hou '',orontv Trust Company TO discuss
the ",,rc measures which have recently
tne Introduced at Albany by Senator
49,, s, Especial consideration VIII prob
" ",'. No given to the bill which became
.V.s week or so ago. permitting institu-
under the supervision OF the state
Ting Department TO use In their re-
- in place OF cash, their holdings or
80 Of New York state and city; and also
.ba bill now pending. which is aimed
.,u.,,lv against the Clearing House, maxi
q unlawful for such institutions to
- into an agreement or combination
-. any cornoration or association where
. tho institutions shall undertake 10 con-
On, their business TO any requirements
=, specirel in the banking laws.
s,s,o banks which arc members Of the
Gearing House are Obliged to maintain
* por cent reserve. instead of the 10
~ cent required by the state law, and
80 reserve. which is the same as that
,hich national banks in central reserve
,Ne> are Obliged by the national bank
,.u. IN maintain, mrst he cash. The
,.vspteen trust companies which within
-, last few weeks have been admitted
=, me Clearing House. and under the
rate banking law. as recently amended.
r,sv substitute state and city bonds in
rart.or in whole for cash in keeping up
,b.ir L per cent reserve. arc compelled
e. Clearing House members to hold 10
,sr cent cash reserve in their own vaults
and an additional 10 per cent on deposit
vita Clearing House member banks.
Active investigation is going on TO as
certain the identity Of the principals for
whom senator Grady is acting in pushing
,is banking legislation. one banker said
Yesterday:
senator Grady isn't a crazy man. by
sny means We have not yet been able.
however. 10 find out definitely at whose
rouest he has introduced his several
amendments TO the banking law"
The natural beneficlaries of the Grady
psislation would be bond houses having
lssyy blocks Of state and municipal bonds
70 market. and II has been reported for
ne lsst day OF two that a large bond
house was identified with the agitation.
iut the report is still nothing more than
rumor. perhaps originating in inference.
Il is not considered likely that any state
tank or trust company in this city will
ssss 10 avail itself Of the privilege allowed
b. the Grady reserve act of substituting
ssit or city bonds for cash as reserve,
for that course could only impair its
reputation and weaken its credit with all
The other financial institution. as a step
.n The direction of unsound banking prac-
i.cS
70 is feared however. that many Of the
Estate institutions. I'm small towns and
villages. may seize the opportunity 10 les
ssn The percentage of reserve required 10
j. he'd unproductivc as cash. by investing
s. bonds allowed by tho Grady reserve
ct 70 he reckoned BY them as reserve.
aud IN 50 far a. they may do this, in the
opinion Of conservative bankers, their
5ctio1 viii tend TO the Weakening OF the
vhols fabric Of the states banking sys-