The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-14
Perfecting the Van Tuyl Banking
Dlll.

In letter printed elsewhere on this
poge we are assured TINT the curious
provision Of the Van Tuyl banking hill
to which we directed attention the
other day will I've corrected before
the bill Is pressed for passage. by
striking out the phrase from their
own number" In Sections 12s md 213.
dealing with the election OF officers Of
state banks and trust companies. the
present provision Of the law will be left
unchanged. Directors will not have to
elect the officers Of their institutions
from among their own numbers.
II the bill can be revised 50 easily
there Is no reason why certain debat-
able features should not he dropped.
The sections already referred to were
not debntnble rs they stood when the
bill was introduced. They were simply
absurd. There Is room for argument
over other matters. and the weight Of
heavy objection can I've urged to some
provisions. Unless there Is sufficient
time during the remainder OF the legis-
lntive session to consider the desirable
ity Of amendment the best thing to do
with them would he to treat them ms
typographical errors. rs In the case Of
the phrase quoted above.
For example. the bill makes n good
deal Of n Pooh Bah OF the Superlntend-
ent Of Banks. 1t Is unIuestionable that
he should have large authority. hut the
bill seems to bestow on him authority
In excess Of what Is needed.
In Article H.. Section IS. power Is
given to him to designate the deposi-
tory or repositories which may hold the
reserve balances Of State banks and
trust companies. There In no appa rent
reason why the establishment Of bust
ness relations should In this way he
made to depend on the will OF Gov.
ernment functionary. The ends Of
safety and every other rational object
could he attained by providing In gen
erai terms for the general designn ton
Of institutions eligible to act as reserve
agents. leaving to the State banks and
trust companies the privilege II select
Ing their own repositories from the
qualified list.
Not to multiply singular instances
there nrc mntters In Mr.. VAN TUyL's
banking bill which hnd hest be eliml-
mated II the measure IL to pass the
Legislature ut the present session. Ad-
journment Ia approaching. and anything
.vbi.h 10 i,u al, n nh NJ ha
time not essential to the chief purposes
Of the contemplated revision OF the
banking law could rea sOnably he held
over for future consideration. II would
he altogether too had to have the pros
pect Of enactlng the bill destroyed by
controversy over questions which could
be rendily shelved.
The bill Ii In the main praiseworthy.
Its chief merits are Its Encouragement
Of reserve requirements to assimilate
them to the requirements OF the new
Federal system, its fnciltntion of en-
trance into the Federal system by State
banks and trust companies, Its inclu.
sion Of private banks under the SUPER
vision Of the State Banking Depart
ment. and Its authorization OF CONNER
cial acceptances by State institutions
This last provision goes far toward re
pairing n grent defect In the Federal
reserve act and will enable New York's
financial supremacy to assert itself for
the benefit Of the commerce Of the whole
country.
1t II on account Of the general excel.
lence Of the bill that unessentinl con.
tents which might provoke debate oh.
structive Of Its passage should be with
drawn by It's advocates.