Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-06-18
SCOIllV
UARANTEE BILL
(ladclphia Financiers Do
y Expect Phelan Meas.
ures Passage
FAIR THEY ASSERT
E0fnpels Strong Concerns to
Protect Deposits Of Weak
Institutions, Is Argument
FAlR THEY ASSERT

52f Emphatic protest against the bill in
4 tre0uced In the House by Representa-
tive Phelan Massachusetts, which pro-
A yides that banks guarantee deposits.
of Philadelphia
81 Bankers of this city declare the en-
Actment of such law at this time
would have serious consequences. They
contend that such a law would be mani
L f4et1y unfair for the reason that It
would compel the strong banks to carry
Ve weaker institutions and have a ten
lacy to make the. latter careless i'll
thelr general management.
Officials of several banks expressed
4 their views on the subject today. and
also voiced their opinion of another bill
introduced by Representative Phelan,
which aims to give trust powers tC ma
tton1l banks. On the bill there Is con-
siderable difference OF opinion among
the bankers.
Too Foolish for Discussion
Asked his opinion concerning the bill
which guarantees bank deposits, Charles
a .. Caldwell, president of the Corn EN-
change National Bank. said the sugges-
\ beyond discussion"
After referring TO the bill which rec
emmends an extra tax for guaranteeing
purposes, Mr.. Calwell said. "I do not
understand why a large bank should be
taxed thirty or forty thousand dollars
= year to carry some small bank in a
remote corner of the state or elsewhere.
IF this plan were adopted we would
Be held responsible for all species of
depositors regardless of character. We
always like to pick the risk we guar
Antee."
Regarding the other bill introduced
BY Representative Phelan, which gives
trust powers to national banks, Mr.. Cal
we'll said
The trust companies of Pennsylvania
Will endeavor to have a bill passed at
Harrisburg which will give them the
power. to discount commercial paper.
They will have all the advantages of
national bank as well as the privileges
the State laws give them now. If they
pass the bill at Harrisburg. there will
he nothing left for national banks to do
but take out State charters.
think it perfectly proper to give
national banks the privilege of doing
trust business If the trust companies
intend to have a law passed giving them
the privilege of national banks"
Nicholson Shares Bankers Views
William r. Nicholson, president ,f
the Land Title and Trust Company,
shared the opinion of other bankers re-
9Arding the bill aimed to make banks
secure deposits
"If such a bill were passed." he said
banks could take all sorts of risks the
large bank would suffer for the indis-
eeetions of the smaller one. There
would be no incentive to the progressive
hank, which would be burdened with
~ srespopsibilities it should not have.
~ Ar,1 Nicholson said he did not favor
.<t18 plan to give trust powers to ma
4 tpnsl banks. as he did not believe they
we're equipped generally to conduct a
H.tFast business.
W.rP. Lineweaver, vice president of
Ae Commercial Trust Company, said.
4I Tho bill to make banks guarantee de-
\ oolts seems entirely unnecessary. The
544nks are more reliable than ever. One
3ooldom hears of a bank failure in these
days"
VI Regarding the bill which aims to give
trust powers to national banks, he said
SsfIf national banks could do trust busi-
>neps there is no reason that they should
not be permitted to do it. Those who
did not have the organization to per-
form this work could be equipped in
thiz connection In very short time"
Doesn't Expect Passage
II would be very much surprised If
such a proposition ever became a law,
said Charles B. Dunn, president of the
West End Trust Company, when asked
h1e views concerning the bill providing
the guarantee of deposits.
Amy Interference with the banks
along this line at this tme.' he added
would be a very grave mistake. 1t is
4 only thought otherwise by bankers in
the far west and those in the smaller
~ 1>otricts- Nearly every banker with
whom have discussed this matter holds
y TIE same opinion"
VI William Broadway, treasurer of the
x rLoGan Trust Company said
believe that national banks are
hardly equipped to handle trust bust.
7%u4oe. 1t would be necessary for them
80 make material changes in their or
Mnnl8ations l do not favor the plan
Il ~ guarantee deposits. l think such a
xDlan would give newer companies al
un8atr advantage over those which
S7have been long established"