Show COSGRIFF CRITICISES BANKING SYSTEr l President of Continental National Favors ors Central Bank Safely Bank Safety of ot D Deposits sits More Important Than Country's Growth The national banking system was criticised by hy J. J E. E Cosgriff president of the Continental National bank Inan In Inan an address given at the weekly lunch- lunch con of the Rotary club at the tho Hotel Utah Mr said that he did not know but that one central bank banle for forthe tho the an and reissuing of paper would be an improvement on r the present federal reserve reserve system provided that the branch bank system II tern tem is built bunt up r In directing attention to some of k the thc weaknesses in present systems o of I banking the speaker said that although although al- al though the tho government apparently i supervises banks hanks which are arc members o of the tho federal reserve it will not deposit deposit deposit de de- posit government funds without suf suf- sufficient cf- cf bonds being furnished by hy the institution The same situation ap applies applies ap- ap plies he added with regard to state banks However the depositors depositors de de- must run the risk of bank failure he declared The Tho federal reserve reminds reminds reminds re- re minds me of a huge lingo building built of bricks without mortar anI and then propped up with twelve pots pol 13 Mi 11 M MI I Cosgriff continued Every time a i. brick falls someone gets hurt Ho He said that the federal reserve is ib inclined to bo be bureaucratic and that thatUs its Us examiners often fail faU to recognize the problems that face fac local banks Holding bank directors liable for failure tends to discourage clear clear- sighted business men who could be a help to banks from taking part In their ther affairs There Thero Is considerable opposition among the small bankers to the tho es establishment es- es of bank systems I The point is made that the small banks have done a a. great work Inthe in inthe the tho development of the country Undoubtedly Undoubtedly Un- Un they have but It seems tomo to torme mo f me that the time Ume has come when less attention should be paid to the det def de- de t f of the country and more morer I r to the Iho safety o of individual deposits 1 I The greatest fear Is that a coterie o of financiers will wll obtain control of the thC branch banks I am not competent competent competent compe compe- tent to express an opinion regarding the probability of such a condition but it seems to me me- that the people can find some way to prevent such sucha a situation n o nv |