Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1916-05-02


the active work OF the agricultural
committee for safe farming and live
stock raising, were the principal &C.
complishments of the year to be dis
cussed at various times during the
convention.
Resolutions were to be introduced
for the appointment Of new standing
committees on banking education for
bank employees, also suggestions for
strong legislative committees to keep
in touch with State and National
banking legislation. Uncertainty due
to changes in the federal reserve act
and a discussion as to State banks
joining the federal reserve system
were also to be placed before the con
vention.
Other matters OF interest to the
State will be the proposal OF taking
over country check collections by
federal reserve banks. Many bankers
have predicted this will be in effect
by June / Of this year, and a continue
ton of the warehouse and gradual
marketing campaign for cotton.
Prominent speakers on the program
for this session and their subjects
are: James X. Lynch, San Francisco,
president of the American Bankers
Association, Frontier Banking; Hon.
Adam Bede, ex-congressman from
Minnesota, and a noted humorist;
Hon. Clarence Ousley, director Of the
extension department Of the Agricul.
tural and Mechanical College OF
Texas, Texas Credit Problems; w.
w. Bowman, secretary Of the Kansas
Bankers Association, Educational
Work of the American Institute OF
Banking; NJ. c. Elliott, Washington,
D. c., counsel of the Federal Reserve
Board, THE Banker and the Public;
]. Dabney Day, Dallas, "Why State
Banks Should Join the Federal Re-
serve System"
Mr.. Lyneh's Address.
Discussing the change from high to
low rates OF interest charged by banks
under the general discussion of
Frontier Banking" James X Lynch,
president Of the First National Bank
Of San Francisco, and president of
the American Bankers Association,
declared in part today before the an
nual convention Of the Texas Bank
ers' Association in convention here:
Frontier, as the adjective, and not
as the noun, is the way in which !
wish to consider the word In connec-
ton with banking. Not so many years
ago California, my home state, was a
frontier, and frontier conditions pre-
vailed in even her largest city. ] do
not mean to say that Jul best citizens
tucked their rousers into their boots,
or wore forty.five's in their belts. but
one per cent per month was the rul-
ing interest Both are frontier GUS
toms and the interest habit has out
lived the revolver habit in many
places.
IL do not recall that there was then
any more complaint about the rate oil
~ per cent than there is now for four
per cent, as the compensation for the
use OF the money; borrowers are al
ways prone to think the rate too high.
as lenders are to consider II unreason-
ably low, and the difference Is ad-
justed by the law OF supply and de-
mand, a law which up to date has not
been repealed The rate OF u per cent
was a reduction from much higher
rates which had prevailed. 1t was
the completion OF the Central Pacific
and It's junction with the Union Pa
cific. completing q transcontinentai
line, which marked the end of pioneer
days and destroyed frontier conditions
in San Francisco.
There has been no change In the
California laws on the subject OF In
terest; Z per cent is the rate estab-
lished, where no rate Is fixed by con-
tract, and any rate contracted for Is
legal: yet rates have dropped from,
let us say. ~ to 5 per cent on the
same grade Of loans.
ut should be remembered that no
matter how poor a bank may be, when
considered as an agent for the up
building OF n community, the com
munity Is better with the bank than
without II. No matter how much OF
n sknflint the banker may be, he Is
moderate In his requirements as com
pared with the village money loaner.
as far back as history extends,
we find priests preaching against
usury. and Law makers legislating
against usury. and II is to be re-
membered that the collection OF any
rate for the use OF money was re-
garded not only a sin. but a crime
which should bring swift punishment