The Washington herald., 1911-02-10

A strong appeal for the modification Of
the United States banking laws, by
which American banks will be able to
sell their credit on commercial accept
ances as is done in Europe. was
made last night by Joseph T. Talbert,
vice president of the National City Bank.
Of New York, the largest bank In this
country.
Mr.. Talbert came from New York to
deliver the weekly lecture before the
Washington Chapter OF the American In
stitute of Banking. His reputation as a
clear, forceful speaker is as great as that
which he enjoys as one of Americas lead
ing financiers, and he thoroughly lived
up to it last night.
Few men have studied the subject of
his lecture. Loans and discounts" so
deeply. and even fewer could make so
plain, both to the layman and the bank
er, the points he was making.
Large Audience Present.
The gathering was the largest that
attended a lecture In the chapters rooms
at 1214 F street northwest. The meeting
was presided over by A. r. Claxton, OF
the Washington Loan and Trust Com
pany. who turned the introducing of the
speaker over to Joshua Evans. jr.. Of
Riggs National Bank. chairman of the
educational committee.
MIR. Talbert said the progress of the
American people toward the development
of an adequate banking and currency
system. including the most enlightened
uses of credit. had been painfully slow
"a
melancholy fact that much Of the re-
port of the Ways and Means Committee
made in 1880 might be taken for cur
rent politics.
Mr.. Talbert deplored the handicaps on
the use of trade paper by the banks In
this country.
Mercantile Loans Desirable.
mercantile loans of high class are
everywhere considered desirable" said
Mr.. Talbcrt. 1T is because OF their in
herent power OF self-liGslidadon. A Sc
cured loan may be immeasu-ably safer
against risk Of eventual loss. because OF
the security placed behind it. but such
such loans may be far less desirable as
banking risks because Of the uncertainty
OF their repayment without sacrifice at a
given time Experience has shown that
the one class OF loans which with great
est certainty may be depended upon to
liquidate without increasing the tension
during periods Of financial disturbance,
is the merchant loans.
"A banks credit belongs peculiarly to
itself. Its credit and standing depend.
in the first instance. upon its capital
strength. next upon the character and
recognized ability OF its management,
and finally upon its established reputation
for sound methods and correct banking.
The three clements combined are the
property, not Of a banks creditors, but
Of the institution itself. and they are
among its most valuable assets. This
asset may be denominated good WILL
but 1t is none the less a tangible. legiti-
mate, and actual asset Of stability and Of
value.
yet under our system, no use what
ever may be made Of It, save the indirect
one of attracting business. In Europe a
premium is set upon these intangible but
assets Of hank by permitting
the sale or lending Of its credit Here
such use Of credit even by the best and
strongest banks. is denied. greatly to the
restriction of the legitimate use of bank
Ing.
The power to resell trade bills in the
open market or to redfscount them at
the central bank in exchange for notes
Of book credits (Which may be converted
into cash reserves) is the next and most
important reason for the easy absorption
among European banks of such paper
under practically any conditions Of finan-
cial disturbance"
Prominent Bankers Attend.
Among the prominent Washington finan-
,iers and bankers who listened to Mr..
Talbert were:
Owen T. Reeves United STATES bank examiner
William Selby. cashieT. and A. c. West and Fl. v.
Hunt American National Bank; Carroll Peirce.
rice president Citizens National Bank Of Alexan-
1ria Robert n. Hsrer. president. and J. Miller
Kenyon. von president. District National Bank
\. Fl. Shea. Icr rr.Sdent Commercial National
Bank; r. A. Walker. president. and 4. s. Galley.
ashier. Lincoln National Bank Representative A. r.
NJ. g. Mccormick. rrr-ident. Merchants and
Savings Bank: ". J. Father. yice pfe1-
lent. and H. H. F1ather cashier. Riggs National
Bank: John Reard0n. cashier Bank r Commerce
md Savings; John Joy Edison. president Washing
on Loan and Trust Company; +. T.. Herrell. as
stant cashier National CAPITAL Bank; William
Mex. Stowsn assistant cashier Lipcnln National
Bank; r. T.. Ganshton. of the Wellington Stock
Robert A. Cissel. assistant cashier Ma
ional City Bank: Samuel ]. Henry. assistant
ASHER Commercial National Bank; Thomas W.
smith. vice president National Capital Bank:
Thomas L. Fleming vice president Union Trust
Company; John Poole. cashier Commercial Ma
ioral Bank; A. G. Capham- president Commercial
National Bank. and Albion X. Paris Of the firm
# Crane Paris Co