New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-06
ALOR|CH W|DENS WAY
FOR TRUST. COMPANIES
Offers Them a Place in Reserve
Association on Same Basis
as National Banks.
HE POINTS OUT OBJECTIONS
Legislation by Congress Neces
sary with Co. operative Laws
by the State Legis-
latures.

by the State Legis-
latures.
Ex-senator Nelson IT. Aldrich out
lined to the diners at the first annual
banquet Of the Trust Companies or the
United States in the Waldorf last night
the preliminary conditions which he
thought should be precedent TO the adj
mission Of such organizations to tbs Ma
tional Reserve Association contemplat ted
in the report OF the National Monetary
Commission.
He believed that in their own interest.
as we'll as that Of the public. trust com
panies and similar state banking insti-
tutions should be members Of the Re-
| serve Association. but thought that they
should be admitted under terms. condi-
! tons and limitations to be fixed BY
rational legislation.
i am not prepared to say at this mo-
ment." said ex-senator Aldrich, what
those terms and conditions should be,
but among those terms which II seems 10
me, are precedent to the admission to the
| rights OF membership are, first, that any
participating trust company or other
state institution must assent to the same
examination and investigation of its con-
dit!ons by examiners appointed under
national authority that are required Of
national bank; second,A that it should
assent TO the same terms with reference
to the character and frequency OF its
statements OF condition that are required
CT q national bank, and, third, that IL
must conform to reasonable requirements
10 be fixed by national law as to charac-
ter and extent OF reserves to be held as
I against its demand or other liabilities
Objections Due to Fear Of Wall Street.
| On this same question Of reserves Sen
ator Aldrich thought that the state in
stitution's deposit in the Reserve Asso-
citation should be considered as part
OF its legal reserve. which would require
cooperative legislation on the part OF
state legislatures.
While admitting that the trust COM
| lc!!1cs u t!4C COu-!l!J NS4S ASSOSu III TIC
Reserve Association. if that prospective
organization Is 10 attain it's fullest pos
sible success. the Senator pointed out
that there was the other side Of the
question 10 be considered-namely, that
every financial institution in the country
which appealed to the people for conf
dence would be likely To seek member
ship in the Reserve Association because
Of the tremendous strength back OF it.
Il am anxious that the state banks
and the trust companies OF the country
should appoint representative commit
tees TO confer with the National None
tary Commission" ex-senator Aldrich
admitted, lin order that the recon-
mendations Of the commission TO Con-
gress on this subject be reasonable and,
If possible. satisfactory to all parties
Ex-senator Aldrich, in the earlier part
Of his address, reviewed briefly the idea
OF the National Reserve Association,
which he said was a plan Of concentra'
ton Of reserve. but with an absolute
decentralization Of power and control.
Answering some of the objections that
have been advanced against the plan he
said that all those objections based on
a fear OF New York or wall street
control OF fear of possible political
domination of the Reserve Association.
were rendered groundless by the scheme
for electing the delegates from fifteen
separate districts. the banks OF which
districts would have a single vote each,
rega rdless Of their varying resources.
Need Not Fear Presidents Power.
The last step in the organization. that
which gives to the President Of the
United states the power of appointing
The Governor and his assistants. need
not be feared either. the ex-senator eX-
planned. because the appointments must
be made from the list submitted by the
directors themselves. and as these di-
rectors are elected by and from the
bankers IN the fifteen districts there
would be no chance of political compl'
cations
Oliver c. Fuller. the chairman, IN
introducing the ex-senator. took oc-
casion to give mild praise to the re-
serve association plan advanced BY the
Monetary Commission. OF which the Sen
ator is chairman. but said that nm
doubtedly many of the trust company
officials still thought 1t question
whether Standardization of their institu-
lions should be accomplished through
naturalization.
Mr. Fuller thought that In view of the
mild restrictions placed upon trust COM
panies i'm the various states the per-
centage of failures as compared 10 the
more strictly governed national banks
made a credtable showing for the trust
companies.
80 long as human nature remains the
same" he said, ut will be impossible 10
prevent the adventurer from occasionally
invading the trust company fed. as It is
impossible 10 keep him out Of any other
line Of business whose responsibility af-
fords a cover for his machine tons
Hepburn for Trust Companies.
a. Barton Hepburn. president Of the
Chase National Bank and also Of the
Clearing House Association. made
strong plea for Jhe entrance Of the trust
companies into the association. Coop
Grafton and coordination in th,. banking
interests OF the city. he said are impera-
tive and the lack Of these may lead 10
untoward results
After reviewing the crlses in the ci'ys
financial history when the Clearing
House Association came to the rescue OF
the situation, Mr. Hepburn went on 70
note that IN Europe and in many OF the
cities Of our own country the weekly