The Birmingham age-herald., 1912-09-14
BANKERS ID MEET IN BOSTON NEXT YEAR Currency Reform Question
 Not Taken Up HUTTIG IS PRESIDENT Senator Townsend Favors Law to Pre- vent Speculation by Banks-Near- ly All Favor Penny Postage. Conant Speaks
|HUTTIG IS PRESIDENT

Iecting Boston for its next meeting place: formally advancing Charles H. Huttig of St Louis from vice presl- dent to president, and almost unan- mously declaring for penny postage on ordinary letters.
 The currency reform question was not taken up by the convention today, though the new president pledged him self to work for the passage of laws that will keep banking business in a normal and healthy condition"
 United States Senator Charles E. Townsend of Michigan, addressing the bankers this afternoon. said he was in favor of law framed to prevent any banking concern from using any of it's funds for purposes outside the range of strictly conservative non -specula- tive business.
 Much of the afternoon session was devoted to the election of officers. Ar thur Reynolds of Des Moines la, re- tiring chairman of the executive coun- cil, was chosen to succeed Charles II. Huttig, as vice president and the fol- lowing were named as members of the executive council:
 For two years: F. J. Carr, Hudson, Wis.
 For three years: Joseph A. McCord, Atlanta; J. E. Clinton, Jr, Boise, Idaho Edgar E. Crabtree, Jacksonville, Ill.,; w. T. genton Chicago; Joseph K. Voris. Bedford, Ind; H. M. Carpenter Mon ticello, la. F. E. Ames, Topeka; F.. B. Kinnard, Rumford, Me-. Downie Muir, Boston, William A. Mackie, New Bedford, Mass; Dudley E. Waters, Grand Rapids, Mich. Joseph Chapman, Jr., Minneapolis; J. S. Calfee, St. Louis; IA. D. Buckner, Paris, Mo-: W. H. Buch- olz, Omaha IT. J. Parker, Brunswick, N. J. Walter H. Bennett, New York D. c. Willis, Pittsburg; J. L. Hutton, Columbia, Tenn; D. M Armstrong. Memphis w. r. McCaleb, San Antonio; w. D. Vincent. Spokane; E. M. Wing, Lacrosse, Wis; Ralph w. Cutler, Hart ford, Conn.,, was chosen chairman trust company section; w. l.. Knox, New Y ork, chairman savings bank section; A. o. Wilson, St. Louis, chairman clear ing house section; w. c. McFadden, Fargo, N D., chairman state secrtaries section, and F. A.. Crandall, Chicago, chairman American Institute of Bank ing section.
 William R. Greer of Cleveland was sponsor for the resolution asking the convention to declare for penny post age. But one vote was registered in opposition.
 Among the addresses on agricultural topics delivered at today's opening ses- sion was one from Bradford Knapp, special agent of the department of ag- riculture. He urged the bankers to de- wise better system of financial as- sistance for farmers and declared against what he termed wasteful sys- tenn of distributing the output of the Farmers.
 Charles A. Conant of New York spoke on Land and Agricultural Credits" :" Owing to the absence of Andrew M. Soule of Georgia, his prepared address on Agricultural Development and Ed ucation" was presented to the conven- tion and placed on record.
 The advisability of forming a &co-op- erative democracy of state mortgage loan banks, united into powerful central or ganism, for strengthening commercial banking credit,'' was recommended by Charles A. Conant. The subject of NJ. Conant's address was Land and Agricul- tural Credit"
 Europe Has Solved Problem
 Mir. Conant began by referring to the pressure of population upon food supply and the necessity of increasing the area of cultivated land by improved metho is of extending credit to the farmer. He pointed out that bitter experience had proved projects for issuing money upon land to be unsound, but that Europe had solved the problem of the ready transferability of mortgage loans and low rates of interest to the borrower by talk t. l1af tta pf la liminted liability company in the issue nf bonds and shares.
 Tn Europe" he said. 'sthc man who has money to lend upon mortgage .s no long CT obliged to make personal examination of the property, nor to risk his capital upon a single investment in q non-trans- ferabe form. He has only to ouy a ne- eotiable bond-coupon or registered, &C., cording to his preference-which he can sell as readily as the bond of the govern ment and with even less risk of fuctuation in it's price. He has behind the bond not merely the land, the source of all wealth. but he has the pledge of a stock company that they have examined the properties upon which loans have been made, that all such properties are held in .he aggre- gate as assets against the outstanding bonds, and that the company has in addi- tton an adequate capital to cover any uri- expected shrinkage in the value of the property benind its bonds.
 '.The bonds issued by the Credit Foncicr of France under this system are made at tractive to the borrower by tie system of amortization by which they are paid off and by fhe long terms over which the amortization extends. In the loans l1ade by the SredIt Foncier Of France. more than three-quarters are for pcrioCs of 50 years or more, so that the amorfiza- tion charge involves only small addi- ton to the annual interest.
 Interest Less Than Per Cent
 "The rate of interest charged upon loans during the last few years by the Credit Foncicr of France has beer. 4.s0 per cent For loan repayahe in 30 years, the semi-annual payment required has been 29S2 per cent, or just under 3 per cent making the two payments for tie year equal to 5.964 or just under per cent. Where the loan is for p years, Il g sum of the two annual payments falls to 5.259 per cent. and for % years to 1882 per cent. It may not be possible to float bonds in this country at a rate 50 low as to permit loans upon mortgages at 4.3o per cent. but even if ) or 5ls per cent is charged, the additions for the amortization ot the principal VII not oe materially Hreater than In the case of the loans made by the Credit Foncier ot France
 While 1t raight not be possible to make loans as low in America as they are made in France. it ought to be possible to make l them at a roint much lower than the farmer pays rnder the existing system | of disposing of mortgages 10 indiyidua. | investors. The average rate Of interest shown by the federal census or ls9O up, n mortgages on farm lands Has ..C7 per