Smyrna times., 1912-03-27
STATE CI[HFNS LEAGUE
GROWING IN MEMBERSHIP
BUSINESS MEN AWAKENING TO
BETTER, SAFER BANKING LAWS
B. A. Hazel, of Smyrna, One of the
Directors and Number of Smyrna
Citizens Join the Movement

ness men, especially those who had
payrolls or were borrowers from
banks, will remember the dire
effects of the disastrous pani, of
that year. A large trust company
in New York found it impossible to
realize upon its investments, was
unable to meet the withdrawal de-
mands of its depositors and was
compelled to close it's doors; the an
nouncement of the failure of this
trust company at once brought about
demands for payments of deposits
by large depositors in banks and
trust companies throughout the
country. Large sums of this with
drawn money were placed in hired
deposit vaults in owners freproofs,
or in other places of hiding; not
that the money was needed, but
through fear resulting from loss of
confidence-panic. Such a vast
amount of money was thus with
drawn and locked up that a scarcity
of circulating currency resulted;
our banking laws prevented the
government from issuing an in
creased supply of currency to meet
the requirements of business, con-
sequently banks throughout the
country while entirely solvent were
unable to convert their assets into
money and for their own protection
were compelled to refuse payment
of checks in money and to decline
the usual discount accommodations
to solvent customers, who in turn
were compelled to suspend or cur
tail manufacturing and other busi-
ness operations and dismiss their
operatives. reulting in widespread
embarrassment, large financial loss
and great suffering by dismissed
employees and their families. No
other course was possible; in many
instances no matter how large the
bank balances, actual money for
payrolls could not be obtained !;
checks in payment of wages could
not be used for the reason that it
was not possible to convert them
into money, and the result was
widespread disaster until confidence
again dawned and the deposits which
had been Withdrawn were removed
from their hiding places sad again
rs pred to the -baG g, when busi-
MSS began to recover slowly from
the disaster Under our existing
banking laws, a similar panic may
result at any time. While these
laws which were enacted some so
years ago were suited to the then
existing requirements of the nation,
it should be remembered how enor-
mously the business of the country
has multiplied during this period,
and the imperative necessity of a
revision of these outgrown laws will
at once be apparent. A nationwide
effort is now under way to promote
such a change in our banking laws
as will render impossible in -
future any recurrence of the dis.
astrous panics which have periodical
ly occurred, by providing an ave
nue. through which money may bt
obtained in abundance at any timC
and especially in times of stress
Inthe older counties governmental
enactments so provide that bank
may any any time convert their as
sets into actual money. and are thu
always enabled to obtain any amour
that may be required for legitimat
purposes; hence money panics canno
occur. While banks in the oil
countries can at any me rediscoun
notes. acceptances. etc., upon whic
they have advanced money to thei
customers, thus affording a depend
able supply for any emergency, i
our own country there is no sourc
which can be depended on by ou
banks for the conversion of simila
assets into available money; fo
when an emergency arises all ave
nues close. Public-spirited, patriot
citizens in Chicago and other citie
have established the National Cit
zens League for the promotion of
sound banking system, and hav
been liberal contributors 10 a fur
for the launching Of this novemer
which is being seconded by citizeI
throughout the entire country
Nearly every State has one and
some cases several establisht
branches of this organization, a
of which are working for the enac
ment Of banking laws which will |
in harmony with the interests
and result in an enormous benefit
all sections. This movement is nol
sectional, non-partisan, non-polit
cal; it is supported by the Preside
of the United States, and it is b
lieved that the Congress will acco
necessary legislation when a an
fed request for the passage of Il
desired laws ia hrouoht fn the q