New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-08
AMERICAN STORY BANKERS PRAISE
THRNISITAIIANS FEDERALRESERVE
All Sections of Annual
Convention Discuss the
Workings of Law.

Seattle. Sept. with meetings Of
the trust company, savings bank and
Clearing House sections delegates to
the forty-hrst annual convention of the
American Bankers Association settled
down here to-day to serious work.
Praise for the workings of the Federal
reserve act and the possibility of its
amendment was the keynote of the pro-
gramme in the various sections. The
outstanding feature in the trust COM
rany division was a discussion of the
right of Congress to confer trust pow
ers upon national banks.
The need for great liquidity of saw
ings bank inves tments was one of the
more important topics to come before
the savings bank division.
A new section of the association for
national banks was formed to-day, with
one-third of the organization enrolled.
Business Conservatism Urged.
The executive committee of the Trust
Company section in its report urged
extreme conservatism" on the part of
trust companies in the extension of
business. II also held the view that
the Federal Reserve act must undergo
changes before trust companies should
consider entering the Federal Reserve
system.
The committee pointed out that act
ual monetary disturbances had un-
doubtedly been avoided largely because
of the confidence felt By the public in
the inherent strength of the financial
institutions and their ability in an
emergency, TO avail themselves of the
provision of the Federal Reserve act
for redscounts and the obtaining OF
such additional currency as might be
necessary.
Means whereby the savings banks Of
the country might do away with the
provision that calls for advance notice
before a depositor withdraws his
money were advocated in an address
by George f. Edwards, a New York
savings bank president. before the Saw
ings Bank section.
Short Time Loans Recommended.
The solution of the problem. he con-
tinued, was in allowing savings banks
TO invest a part of their funds in short
time loans of the kind generally re-
ferred to as liquid securities. Panlcs,
he continued. were not developed from
the fear OF depositors that they would
not intimately get their money from
The banks, but from the fear that they
would not be able to get the money
Just when they wanted it.
He recommended that the Federal
Reserve banks should be given power
70 accent the collateral OF savings
banks for currency through member
L 81 30
ncdiaries and that state laws should
be enacted permitting investment by
savings banks in certain securities ac-
ceptablc 20 the Federal Reserve Board.
People Must Support Roads.
DR. John Wesley Hill. president Of
The international Peace Forum Of New
York before the meeting of the say
ings uank section delivered an address
on The P0il Dads and the People in
which he said in part:
The interests OF the people and the
railroads ere identical. The people
mus support the railroads while the
railrCads serve the people. Failure
upon either side means bankruptcy and
ruin Fully one-half of our one hun
dred million population. embracing
stoc. and bond holders, savings bank
depositor. rolicyhoiders in life in
surance cumranies, building and loan
and other savings institutions, directly
or Indirectly. own the railroads, the
maintenance and operation Of which IS
he very life flood OF our industrial,
financial md social progress. What
ever affects these highways OF travel
affects III. people; when they prosper.
the peor'e prosper; when they suffer
from bad mar agement, or bad legisla-
ton. the people must pay the toll. IL
is their funeral. =
an the year 1900 the census showed .
the value of our farm land. improve
mems arc implements 20 be more than .
sir 0nO. OON 200. and by the next census
tbev had exceeded $4,000, 100000. The .
raiir.ads found the wealth OF the .
United States estimated at less than !
"a 600 OOn. 600 II is now conservatiyely .
estimated al 5000 100000.
Wrong Have Been Righted.
TIE rcJple have just ground for
n the overcapitalization' p
mismanagc unfair discrImina-
lions and snarcial jugglery which has
marred II, reputation OF the railroad
business n the past These wrongs,
however. have been righted by remedial
lerisiatitr II is time for readJust-
men. for he people 10 take new at
ti;uIe toward the railroads that OF an
open mind. .air dealing, encouragement
and cooperation