The Washington times., 1915-09-07
Both Financial and Moral Sup.
port Pledged At Convention
Of Association.
RESERvEACT'S FLAWS FOUND
Committee Declares Certain
Changes Must Be Made For
Trust Companies Benefit.

become involved in war, was made TO-
day by the bankers Of the country
through the executive committee OF
the trust company section at the an
nual convention Of the American Bank
ere Association. here.
In submitting his report, Uzal H. Nc
Carter the chairman Of the committee,
concluded with the declarations:
ITO the trust company official as we'll
ss to all bankers and others the future
is clouded. Never before In the recol-
lection Of the present generation was
the necessity for patriotism to our coun-
try and loyalty to our President SO
necessary, and while 1t is the earnest
hone and prayer Of every thinking man
that war may be averted by our coun-
try, It 10 the firm conviction Of your
committee that II such catastrophe
should occur the bankers Of the United
States will prove their devotion to their
country by q united and concentrated
eupport-financial as we'll as moral-of
those upon whose shoulders the re-
sponsibility of carrying on the war
may fall"
Changes Needed.
Touching on the subject Of affiliation
Of trust companies with tho Federal re-
serve system, for moro than a year the
paramount question before the section,
the report emphatically states that GER
tain necessary changes in tho Federal
reserve act itself. as we'll as In the
80 xlA ~ oh tn h.,
made, before the trust companies should
consider entering the system.
John H. Mason, speaking for the COM
mittee on legislation. said that the act
chartered institutions will have their
privileges and rights embodied in the
law and not be subject to tho rules ana
regulations Of each incoming Federal
Reserve Board.
The McCarter report does not appeal
to be particularly optirn,stic as to the
business future and. III addition to
urging extreme conservatism both In
ling of II when obtained, hints that i'm
provement Is depedent upor new tariff
legislation. In commenting On business
conditions. the report says:
Money has been plentiful during the
entire year, with the result that pronts
have been correspondinyly low. As a
rule. the manufacturer has been work
ing on half time. or less, during the
special cases arising through war or
defs.' and while 1t Is difficult to accu-
rately forecast the future in Its business
aspect. there are many who believe
improve for the manufacturer until
either new tariff legislation has been
obtained or sufficient time shall have
elapsed to permit business to adjust
itself to meet present tariff conditions. "
Advertising An Aid.
Ralph w. Cutler, in a review Of the
progress made bv trust companies dur
ing the twenty years that the section
has been In existence. laid particular
stress upon the manner In which adver-
tising has furthered the business OF
the COMPANIES.
''By tudicious work IN this direction
trust companies can point with pride,
he said. 1.-THE public mind has at last
become convinced that the settlement
of an estate. or the execution OF trust
by the trust company rather than b,
the individual. or even the family law
yer. Is the surest and best way to secure
the exact fulfiilment OF the wishes Of
the decedent."
Safe deposit vaults Of trust companies
mated to contain more than $35. 900 900. 900
or one-fourth Of the visible wealth ol
the United States.
George w. Edwards, presidep, Of ths
Dollar Savings Bank Of New York. iI
an address before the savings hank sec
tior. declared that savings banks woute
derive no benefits from direct member
ship in the Federal Reserve system
since that system was designed with 1
do not transact general commercial
business:
Congress so amend the reserve act tina
Ln,.
given the power to accept collatera
Of savings banks for currency. This
ne said. may be done through membe
banks authorized to act as intermedi
aries. II to this suggestion were adde'
the enactment OF State laws, permit
in certain securities acceptable to tn
Federal Reserve Board Mr.. Edward
asserted that sufficient hquidity of !oa.
and investments OF savings bank
ments on demand and the abolishmen
Of the custom OF notice OF with
drawal.".
Wants Banks To Act.
President Knox. rcmarking that tn
savings banks In the past have re
Trained from voicing any opinion o
sentiment relative to the regulation G
railroads.. urged that, In view of tn
vast interests WnlCn tHey represent !
railroad holding. the banks ask to
heard
In discussing this relation betwee
the savings banks and the railroad!
Mr.. Knox said:
Whether he realizes il or not, tn
savings bank depositor has vital In
terest in the welfare of the railroad
There are in the United States 10
602.43S savings bank depositors. ever
one cf whom 10. to some extent.
partner Of the railroads. because {
the fact that the vast amount of $3.50
601,756.6S Is invested by the saving
bsrks in railroad bonds.
Every law that is passed affectin
the railroads has an effect upon III
Investments held by the saving
banks as the trustees Of the peopl
II this fact Were kept clearly in vie
by our legislators, it would go ia
toward having u stendying eneC
upon tkonl. with beneficial results &c
all parties concerned.
The present controversy betwee
tho Post Office Department and tn