Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-06-21
BANK SUPERVISORS HERE
National Association in 10th An.
nual Convention.
Bank Commissioner williams Extends
WeIcome-Encct OF Liberty Bond
Issue and Examining Methods
among Topics Discussed.

| great many men LOT Otner STATES, SCdt-
tered all through the West. especially the
Middle West" said Bank Commissioner f.
G.. Williams in his address OF welcome
Monday afternoon at the opening session
Of the 18th annual convention Of the Ma
tional Association of Supervisors Of State
Banks. The association. which has men,
bers in 81 different States, met on
the roof garden of the Hotel Vermont.
You will find in almost every community
some of the strong men came from YER
mont" he continued. that they were
either born here or their parents or grand
parents were born here" Beautiful wom-
en- Morgan horses and maple sugar. said
Mr.. Williams, are three of Vermont's
greatest marble industry in the world. and
| is said to have the greatest granite indus
ttry also
| "A. u. kuolt commissioner of banking
Of Wisconsin, in his response to the ad-
dress of welcome. complimented Burlng-
| ton for it's beauty.
! President w. r. Williams, superintend-
ent OF banks of California. president of
the association. In his annual address said
| that generally speaking while the crops
are light. the outlook for reasonably good
crops is very bright" Referring to the
sale of the Liberty loan bonds. he said
1
sale must to some degree dislocate the
funds in the banks unless great caution
and great efforts are brought into opera
ton to prevent that dislocation. In those
| localities where there il an active com.
mercial life and where the proceeds of the
bonds will be expended In war prepara-
ton. In the purchase of war materials
| in the pay of soldiers, in such communi-
| ties there will be n considerable expansion
of the deposits for time and In those
localities where the money is actively sub
! scribed and where they do not get the
| immediate returns from the expenditures
for war supplies. there is likely to be some
upsetting unless, as I stated, great care
| is exercised
| Commissioner Williams of Vermont in
reporting for the States new banking leg
| islation. noted the fact that the Legisla-
! ture of 1917 added as legal investments
| for our savings banks the bonds of pub
| lie utilities Of certain classes" The idea
was to make only the bonds Of the strong
est and best utilities legal for investment
Certain bonds of Great Britain and Ire
land and of France and of Canada and it's
provinces also have been made legal
George +. Monaghan of Detroit.
| Mich, who was to have spoken Tuesday
afternoon. gave his address on 'The
Blue Sky Law from the Business Stand
point" The Blue Sky law is now a
question definitely settled" declared
the speaker. "a blue sky law is one
restricting or forbidding wildcat" pro-
motions, involving the selling of WORTH
less securities. Mr.. Monaghan referred
with some sarcasm to "oillsss oil welle
and goddess gold mines" The consti-
| nationality Of certain State laws now in
operation had been fixed. he said.
! EVENING SESSION.
| Marvyn Scudder of New York was
absent but Bank Commissioner j. D.
Landlord Of Oklahoma and Commits
sioner Of banking r. w. Merrtck Of
Michigan provided papers for the SEES
sion. which was to have been held Tues
day morning
Speaking on the subject "The Prob
lem OF Supervision Mr.. Landlord said
1T Is Of the greatest Importance that
| the men for thie work be selected on
account OF their peculiar fitness and
not by reason of political affiliation or
| friendship" He pleaded for "a spirit
Of unity and cooperation between the
| supervisory power and tho supervised"
The little loOse-lsaf ledger SO COM
| monty used was responsible for a
good many defalcationA he said EN-
pioyes OF banks should rotate in their
duties. Examinations should be thor
ough. he said. To this end examiners
take an exact copy of the banks last
econcilement with IT'S correspondent, in
GLIDING list of outstanding drafts on
that date. closely scrutinising all ex-
cepttons to see that entries to satisfy
same have been made" This was the
present system.
Commissioner Msrrick said "It he
hooves us to select for examiners men
of proper character. business expert
ence. and known capacity" The mop
err age when possible was between 2h
and IS, and the candidate should have
had three years of experience prefer
ably In country bank. The appli-
! cant's knowledge should be tested as
to commercial law and the State bank
Ing law. as we'll as the statutes gov
erning the federal reserve system. ne
gotiable instruments. bills Of lading,
warehouse receipts. etc" He should
know something about the particular
conditions Of his community. manufac-
| turing or agricultural or whatever it
might be. Michigan. he said, had been
divided into 15 districts. for conven-
fence. with one examiner in each. The
department encouraged efforts of OK
amfnerS to learn their districts