The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-14
BANKERS TOLD OF
INVESTMENT BOOM
A, VI. Harris Says Wave Of Econ
omy VIII Fill Savings
Banks.
TO AMEND RESERVE ACT

prrffNoSp, Va, Oct. l3.-At a Joint
r1cp'..e ~ the trust company and savings
sa.t sections Of the American Bankers
ASSOCIATION to-day resolution was passed
t,o,.ltE for "a committee OF twelve men
10 go TO Washington 20 study the rules
Ro.pUrIug the membership of the new
.eI,.li Reserve Bank with a view as to
the .t...an.h'y OF amending the reserve
aet to r.ltc it easier for the entrance OF
savr.s .auk. aud trust companies. The
pas...a OF this resolution and the dis
,uss.uu incident thereto were the features
o. to-day S session Of the fortieth annual
contention,
50, Wox'e- OF New Orleans presented
9-e.,.,,' IN favor of adoption OF the
re,lfl on and Breckenridge Jones OF ST.
f,... Mo, advocated the amending OF
the 1il 20 make It easier to gain MEM
bcr,..l 300 the reserve system.
Nj Jones declared that the reserve
hank act should be amended so as to
make tie examination OF the bank books
como as much as possible under the
examiners OF the local reserve boa rds
rather than Federal bank examiners from
Washington 70 avoid confusion.
A. NJ Harris OF the New York banking
firm Of Harris, Forbes & Co. delivered
an address on Savings Bank Bonds In
the Light Of Recent Developments" He
said N part:
"Few realize what a wave OF economy
10 sweeping over this country. and the
effect IL may have on the amount OF new
available investment capital. II In I'M
ouest.ondbiy true that never before In the
history OF this country has there been
such a widespread movement OF economy.
which extends not only to personal expen-
ditures but also to the expenditures Of
corporations and business houses gen
orally
"'The economic and Industrial conditions
at The present time are not to be COM
pared with those following the panic of
1888 Aside from certain Industries and
business which have been especially az
fecttd there Is employment throughout
the country. The wave OF economy. there
fore means a much more enormous and
rapid accumulation OF capital than ever
occurred before.
The economic losses resulting from
wars are usually exaggerated, as shown
ny the Industrial conditions which exist
when peace is restored
This wave OF economy which is sweep
ing over the country Is OF the greatest
Importance to you. 1t means that persons
who have never previously been In the
hnbt Of saving will begin opening savings
accounts and that others who already
have savings accounts will increase the
size Of these accounts. II this result,
occurs 1t will mean that you will not be
thlstA AII'lI " HsiNlliiNt SOuI hOluluts OF
high grade Investments at the present de-
pressed prices.
"ln other words you will not be called
upon 20 suffer any actual losses in your
inNeS' -lents. hut will he able to continue
to hold these bonds until they mature,
when YOU will receive in payment their
par value. or Just what you expected when
YOU purchased them. In addition TO the
wave of economy there is the wonderful
outhuist Of individual enterprise that in
Vdrlth.E follows war. Explain II In
whatever way YOU please, II Is neverthe-
less fact that the greatest enterprise.
the greatest energy, the greatest ingenuity
invariably Immediately follow a great
wsr'
OF railroad bonds Mr. Harris had this
10 say.
Looking into those States where saw
ngs hank investment requirements are
closely restricted one finds that in New
York, FOR example. the railroad holdings
now total about S27i,00O,0 900, or SO per
cent ~ all boads held, as against $780,
100000 or 81 per cent OF all bonds held
four Years ago. While therefore actual
railroad holdings have increased. the
amount relatively speaking shows n
slight decline 4 more significant decline
has been In the market value, and this
has been precipitated in the past four
years The market value OF the total
bond holdings of every character OF New
YORK savings banks four years ago was
$1,000 600 below the par value. At the
hrst Of this year II was SAL. 600, 900 below.
80 YOU must see. gentlemen, that your
interest in railroad obligations made In
the past is linked OF necessity with the
future That this interest be intelligent
10 paramount. For I repeat in this situa-
ton, a little knowledge is a dangerous
thing
"Those whose influence is determinative
In the railroad situation must have genu-
Inc knowledge.
F Cor, president Of the Cleveland
Trust Company, presided.
II, Parker willis, associate editor OF
the New York Journal Of Commerce, who
drafted the Federal reserve bill. spoke
on The Future OF State Institutions
Under the Federal Reserve Act"
The Credit Mems Association, which will
hecone a section OF the American Bank
ers Association, was perfected to-day by
the election Of the following officers
Oliver J. Sands. president OF the Ameri-
can National Bank OF Richmond, prasi'
dent + = Kennard. cashier Of Rumford
National Bank Rumford. Me-. Vice
president. Executive council--O. II. Doty
Third National Bank, Springfield, Mass,
Charles T.. Meek, American National Bank
New York Charles II. polcher Marshall
anu l4A4tS DhNkt !hllHhukec, w 49, ScoTH'
l. T.lNner, National Bank OF Syracuse
y. Y, and f. NJ. Wing. Batavian Nationa
HANK Lacrosse, Wis. A secretary will
De- chosen later
The convention opens tomorrow morn
'ng NJ Q O'Clock and Arthur Reynolds
president, VIII preside. Sessions will alsC
De held IN the afternoon and at 4:3'
O'Clock the general nominating committed
Will meet Addresses will be delivered by
toy stuart Mayor Ainsl!e and Col. Johr
Purcell, president OF the Richmond
Goa = House Association.
President Reynolds will offer his annua
report as viii the general secretary Free
y Farnsworth OF New York, Genera
Counsel Thomas y. Patton OF New Yorl
anI Treasurer J. w. Hooper OF Galveston
Tex
Martin ", Llttleton OF New York
''.' :. Hlmlin, governor Of the Fed
'I' Is sry" Board, and Carter Glass
'.'.rrHn ~ the Committee on Bankinl
a'd currency Of the House OF Representa-
I''s "l speak In the afternoon.