New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-12
Replies TO Criticism of Bankers.

In reply TO the criticism heaped upon
bankers after the last panic, Mr.. Reynoids
said
am surprised that any student OF the
subject should pretend TO believe ma ,hac
the banks in times of stress wllfully
Withhold from the public the use OF sucn
credit and money as IL is possible loI
them under existing conditions ana ~
accordance with the Law or supply, sen
interest alone would not permit Oh t ~! q
doing this, for no prot can accrue 70 q
bank where an excess Of reserve accu-
mulates. Furthermore, the law or corr
petition would not permit IL, ior ~
these days. when II is the unlS ss. a,
practice Tor banks 10 extend credit IN
proportion to the balance which Gus
toner carries with the bank subject %
his check, the banker knows full wen
that If he fails to meet the legltlma,e
requirements of such customer 1t VIII
result in the loss OF that account. when
under the law of competition, VIII go 70
his neighbor, who will extend credit
against such balances. Therefore seli
interest prompts the banker 10 90 ms
utmost 10 serve the public under these
conditions
In regard TO the need OF currency re-
forms. Mr.. Reynolds said:
The failure on the part OF those prom.
inent In shaping the policies OF the great
political parties TO inspire IN tne mem
bers OF those parties a patriotlc desIrg
10 consider this and other great nati0nai
Questions honestly and fairly on tnelr
merits. without respect as 10 whether
or not il will make or lose votes 70!
their marty candidates, is causing grea
deal Of Industrial and social unrest. IL
the time and thought given by some 20
hatred could Re Devoted by them TO an
effort TO promote qualities OF mind ana
heart that would reflect fair treatment
Justice and equity, much or the conten.
ton which is nov so prevalent wouid
be dissipated
No Objection to Money Trust Probe.
Referring more closely TO hi. main
topic. the speaker said:
do not believe the bankers OF the
countrv will enter the slightest objec-
ZION 10 the making OF a comprehensive
Investigation of the banks oy those
cherged by the House OF Representa-
tives with that responsibility, so lohs
as such investise don does not reaulre
them 10 disclose 10 the pubic me con-
sdertial relations existing between them
selves and their customers. the diVuls-
snca OF which might greatly embarrass
the customer and thereby DO serlous m
jury TO the, banks IN my opinion. , the
20 10 the limit OF their ability TO de-
Cline 10 make this information public.
n banker can be forced 10 disclose a
confidential relationship between his
bank and its custome" II would require
but a short step further 10 capitalize
FOR the qualification OF prejudice the
confidence between the attorney and his
client. as we'll as the secrets OF the con-
fessional
cannot believe condition exists
which can begin 10 justify such drastic
trea tnlcrt: no more do I believe Con.
gross will take any action which would
strike go directly at the personal rights
and liberties OF the people.
The Poor Mans Bank.
The poor mans banE," was Mr..
weeds Characterization OF the federal
postal savings system in his address
before the savings bank section. Trac'
ing the history Of the system from It's
inception. on January 3. 1911. when
depository was opened in each state,
Mr.. Weed declared that on September l
Of this year the total deposits approx
mated s23, zoe. 900 This, he said, stood
10 the credit Of about 21o,000 depoeitors,
or an average OF about $50 FOR each.
He explained that the figures did not in
clude more than 100000 converted by