New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-24
BANKERS WANT REFORMS
Urge Passage Of AIdrIch Bill anu
New Inheritance Tax Laws.
TELLS RESERVE BENEFITS
]. H. Rhoades Says National
Body Would Aid Savings In
stitutions in Borrowing

The New York State Bankers Assoo,a
.,or n.o,,.s go. ~ business sessions OF It's
convention =, the Oriental Hotel. az Man
haitian Beach. Yesterday with the passase
OF two resolutions. one aimed al 'ne
tional legislature and the other httHu''
for the State LEGISLATURE the resoiu''o''
for Congress was in favor OF the paSSae
If the Aldrich currency reform Dill ann
was an Endorsement Of the resolution
adopted hv the National Currency Assn
citation in Washington on June 10
The association wanted the state Lesls
lature IN mass the pending bills for the
Improvement Of the inheritance tax ia"s'
Several speeches were mace 10 Emu"
harm that the present laws nave cum
| the state by driving away money
speaker asserted that the RECORDS s'o"
that $500 safety deposit boxes nave "ee"
given up since June and their contents
moved TO other states In order 10 eScaf'
the payment Of taxes in this state me
resolution was especially In FAVOR Oh 'ne
/ bill introduced In the State SENATE ny SCH
ator Hart. which. II was said, would "rIhs
| conditions back 10 what they were neIore
! the present inheritance laws were passeu'
The chief business before the convention
on this occasion has been the dlscussioil
~ the Aldrich currency reform bill and
Yesterday the measure was discussed in It's
relations to trust companies ana SAVINGS
banks John Harsen Rhoades read the
| principal paper on the savings nanK teat-
ure OF the problem. He took the VIE"
that the proposals made for the ADMISSION
OF savings banks into the National re
| serve Association were too lenient ana al
| vocated more severe requirements.
The perfect success Of the scheme pre-
surroses a high standard Of membership.
said M Rhoades. which. that we nee1
not r4trace our steps should he established
al the start Nor need the association hesl-
tate N set this standard. in itself marx
~ STABILITY. since IL has tempting an
! investment 70 offer and such privileges
direct and indirect"
Mr. Rhosdes called attention n the suG-
gAstion made that mutual or trustee saw
ings banks having an unimpaired surplus
! of not less than the capital that woulo ~
required for national bank in the same
| locality he permitted 70 subscribe Tor an
amount Of the capital stock Of the National
Reserve Association equal 10 - per cent
Of the surplus OF the subscribing bank ana
not less There were savings banks IN TINS
city. said Mr.. Rhoades. with deposit ia
biIities Of $40 ooo10 and surplus or less
than y200n0 Such institutions would not
he very desirable acquisition for the Ma
tional Reserve Association, he sald
He suggested that a better provision
would be 10 stipulate that a mutual saw
ings bank. before being admitted 70 mem
| hership IN the association. should nave an
urirnpaired surplus If not less than 10 per
cent of its total deposits and cash re-
serve Of per cent Such stipulation
said Mr.. Rhoadas. might temporarily keep
the savings banks out Of the ASSOCIATION
hut as matter Of fact they should re-
ouire only a short time TO qualify. provided
thar in dividend disbursements they adopt
ed a reasonable policy Of conservatism
For Reasonable Cash Reserve.
Mr. Rhoades objected also to the pro-
possl that liabilities for SAVINGS deposits
suhiact 10 notice Of stxty days before with
drawal should be exempt from reserve re-
ouirement As no other character OF bank
ing institution was exempt from the re-
serge requirement. said Mr.. Rhoades, II
! seemed no more than right that the Ma
tioual Reserve Association should demand
as a membership qualification a reasonable
cash reserve from the savings banks
While the time honored siXty-day notice
was az recognize Importance, he con-
,inued as the years went by II was IN
lu.alv that the trustee hank could avail
itself Of longer period of notice than nj
teen or thirty DAYS.
The time notice was much misunder-
stood anyway. he said. To all intents and
nurposes the savings banks must pay on
/ demand and II was only In grave crises
that rhe savings banks would venture 10
close their doors The privilege OF requiring
q notice before Withdrawals was not 80
much 10 protect the banks or give them
tine 70 sell securities as 70 give the de-
nositor time 70 recover from his alarm.
This act. being privilege. he said was
not 10 be abused or stretched too far. and
the shorter the notice the greater the need
for 4 cash reserve The conclusion Mr.
Rhosdes drew was that II was not only
fairness 10 banks Of other characters 70
rsquire cash reserve from savings banks
ina, might he allowed 10 participate in
the National Reserve Association. but IL
was sound banking TO require the SAVINGS
hanks 10 keep a cash reserve under the
present conditions
Benefits TO Savings Banks.
Among the benefits To savings banks