The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-23
The state banking Biil.

ought to count for much more with the
State Legislature than the small bank
Ing opposition which the measure has
encountered. As for the political influ-
ences which have thrust themselves
Into the situation, II IL hardly likely
that the lawmakers will for political
reasons dare refuse to pass n bill the
enactment OF which 10 not only de-
handed by the banking community Of
the entire State hut Is 20 clearly In the
interests Of all It's citizens. The pros
pects that the bill will become law
seem therefore to have become very
bright. now that the State Bankers
Association, acting at Joint meeting
Of Its council OF administration and
executive committee. has resolved all
differences Of opinion and decided to
send n representative delegation to Al.
bany to urge that the measure be placed
on the statute books Mt the present scs-
sion Of the Legislature.
One thing which the bill does Is to
make q complete and much needed re-
vision Of the State banking law. This
was the primary purpose Of the COM
mission appointed last summer In the
course OF the commissions labors, how
ever. a new duty devolved upon II be-
cause Of the development at Washington
Of the currency legislation. which finally
took form last December in the Federal
reserve act. II became most desirable
that revision OF the State law should
20 far enough to enable State lnstitu-
tons to benefit by the new national
banking system which was being pro-
jectcd, and at the same time enable them
to continue to hold their own In the
banking field with institutions operat-
ing under national charter.
The commission on the whole did It's
work well. Nevertheless there is moth
ing revolutionary about its proposals
embodied In the Van Tuyl bill. This
bill Is not like the Federal reserve act,
which was intended to effect vast
ira nsformation Of the national banking
system. The Van Tuyl bill will leave
the State system Of banking In all It's
variety practically intact and very much
as II was except for two things: an in
crea sed subsection to governmental SUI
pervision and regulation accompanying
the grant of opportunity for larger ser.
vice and usefulness In facilitating the
economic progress OF the State As
New York contains the financial centre
Of the country this means larger field
Of usefulness for the benefit Of the
whole country.
There Is nothing in the bill which is
20 bad that the whole measure deserves
to have its passage prevented at this
session on account Of 1t. Its defective
features are Of minor Importance In
compa rison with Its great merits One
Of these Is the reduction OF reserve re.
quIrements for State banks and trust
companies. Such reduction has been
made absolutely necessary ~ the Fed.
eral reserve acts lowering OF require
ments for national banks Nor Is there
validity in the criticism tn t the State
Ia risking the safety Of It's banking sys
tenn in reducing reserve ratios. The
Fedeal reserve net changes the re-
serve conditions Of banking throughout
the whole country. The national banks
have always been holders OF the ulti.
mate bank reserves Of the land The
Federal reserve system when ORGANIZED!
and operating will make II unneces-
sary for any State to continue to main
tain the high percentage OF law en-
forced reserves which have been indis
pensable to the integrity Of n country
wide banking system composed OF indie
pendent State and national institution.
which had no essential bond of unior
such as the Federal reserve act pro
vldes.
or no less consequence and. indeed
probably of more Importance is the
feature Of the Van Tuyl bin which con
fers on State institutions the privlleg,
OF accepting drafts. This alone woul,
make II worth while to pass the Who'll,
/ Dill, even III IL were more ueIetIlNP Innl
1t is, The privilege will enable tn,
banks Of New York state to bring int,
existence precisely the kind Of CONNER
cial paper and create the kind Of dis
count market which true banking re
form demands. both Of which require
ments are only imperfectly met by tn
terms Of the Federal reserve act. /
the Van Tuyl bill becomes Inv it will
go far toward repairing one Of the de
ficiencies Of the Federal measure
1t is altogether to be hoped and quit
reasonably to be expected that the Stat
Legislature In the last week Of Its ses
sion will pass the Van Tuyl bill, whic
offers No much promise of preseryin
the financial supremacy OF the Empir
State.
The New station House for Women
Nobody will grudge the $4,000
that Miss DAVIS, the Commissioner @
| 10 "A .