Show T A iTTy mrM T TT I 1 BANKERS LI TO PAPERS READ milwaukee oct 10 at the opening of the second days fe fealon aion of the amar from bankers jean hankers various of the country report r ed in live minute speeches general i condition of business the general trend statements showed that business ra of the condl hughly satisfactory was sn a tion following alie call of states canio tt discussion on practical banking A B stickney Stick ncy president of the chicago great western railroad comp iny paper b of air stickney paper was alic of exchange and the banking function he said in part the of exchange is an essential part of commerce as distinguished the necessity of a medium front arter br ter S exchange grows out of alie fact which cannot be too often repeated became 60 often overlooked that tho ultimate vhf of all 9 to use the fa and rather satisfactory expression of tho present p secretary of tho treasury things for things alwn things are exchanged for money the 1 process is only half dons whatever commodity is to represent ti lings during the process of the iii exchange is a medium of cx chanec jhc thc haual statement that money was the medium of exchange was ho contended but a small fraction of the fact ho maintained that the medium of ex is credit legitimate credits cpr alio use as a medium of exchange arc produced by buying for the purpose of belling and they arc exchanged by buying for the purpose of consumption uch credits expand as production and expand and contract as production and commerce contract the then the bank U y ing function of which he said there were aff many misconceptions growing out of itha met meaning ning m banking parlance fi given to the words deposit and when the public is told that 1 the lank deposits have increased a bil lion and five hundred million since ilie it is regarded as an enormous in of money the increase of bank deposits he said simply means that con of tr aare such eliat h a increased indebtedness which lfeo been changed for bank credits and by lw means jho indebtedness of ano bank has freen increased swapping ts is the function of the modern i commercial bank he declared its business consists in scrutinizing aj credits and in giving its own in exchange for buch individual credits asar ar acceptable and thus furnishing jihun dant supply of the medium of of commerce the banking unction was taken up ho eliat tb bank which fails to continuously exercise its function of ftp ping credits fails to perform its fiuty and does incalculable mischief banks refuse to swap credits with the merchants the latter are com belled to stop buying ultimately in the view of the speaker aliis brought gln to alio merchante mer chanta and producers to the laborer the that this otate ot at airty afas greult of ganhs contracting their bo loans lie was not wired to say that it was the fault of the biank managers eliat the american bank M at present organized should falter at every minor crisis and stop as far as possible the swapping of in a major panic seems inevitable the necessity in his belief was due to lack df banking system rg on to a discussion of legislation lie saidi A banking system for a great nation like alie united states requires a central bank with a head in each of the commercial centers shall constitute the head and alie backbone of the system this central bank bo alie bank of the banks and tho bank of the government the sub treasuries should bo abolished alie central bank should hold the gold reserve 1 of all alie banks and of ane nation the reserves of alii other banka should con it of credits on the ledger of alic can aral bank kub systems oy stems should be formed consisting ol 01 heads in important commercial centers with branches scattered over alio country thus carrying tho aft ut tho v groat strong to every hamlet and croas road in the country the only legislation required ho declared was the repeal of the sub treas ury law and of the pro of the present national bank law which in a manner restrict alic business of swapping credits and chich prevent banka from conducting the banking function in more lhnn one locality it would not be necessary or indeed desirable to grant the willial bank a charter with or without privileges various resolutions which were introduced and referred to alio executive council were adopted by the convention today after being approved by the council these included resolutions asking congress to repeal the war revenue act relating to etc legislation for the punishment of anarchists alio return of drafts checks etc stamps have been redeemed and andem senders of ini signed certificates tt liefh may be stolen chairman tracey of alie committee on uniform laws recommended an appropriation pria tion for alio furtherance of the work in connection with the securing of an improvement of the laws banking interests referred hefe 0 o the executive council myron T II errick of cleveland introduced alio following resolution whereas an association lias been formed known a me mckinley McKin lcy acmor ial association for the purpose of erecting memorials in canton and washington for the purpose of commemorating the life and deeds of our beloved and martyred marty red president therefore be it eliat alie american bankers association through its members here assembled earnestly commend this project and desire to aid in furthering thia project to a successful culmination and to this end requires the members of the association to receive subscriptions script ions at their banking houses and transmit the funds received to yron T II errick treasurer of tho mckinley memorial association at cleveland ahio the resolution was unanimously adopted and referred to the executive council ilio trust section of the american bankers association convened in its annual session here today howard direen ji reen of milwaukee welcomed tho delegates and win G mathar ot cleveland chairman of trust section responded spon ded secretary james R doport allowed a balance on hand of and a total membership of an increase during the year of sixty per cent mr charles franchi phillips of new york dwelt upon the business in foreign countries analogous to eliat of trust companick com in the united states lie said that strictly speaking are no trus companies in europe or the Orient alid hone in the latin ameri can countries barring ono erected upon a purely american foundation and one or two in a nascent state the ideas said he underlying corporate fiduciary ship arc alie product of our special development concerning mr phillips said that in europe the individual trustee is in such esteem as to make the success of corporate trusteeship on a very large least for the immediate present extremely doubtful As to the provisions for atre of longtime deposits both the english and continental tin banks furni sli america with precedents eminently worthy of respectful study the briefly declared the mortgage banks of germany and austria and some other european countries were created to aid but limited in respect to their duties a fiduciaries fiducia ries and enlarged on alio role assigned in france and to jonm extent in other countries to boards of trade ot commerce etc in matters relating to bankruptcy and As to of credit mr ahil lipi declared that the united hart proved itself to be in respect to the common financial needs of all who must work for a living with heads or hands the least t great powers As the result of a more direct and democratic policy than ours the corporation in franco most analogous to our trust compana ii have obtained proportions so large as to make even alie most prosperous of our trust companies and of our banks as well seem very small indeed A paper entitled of fiduciary ies outside the state of their appointment was read by frederick vierling of st louis secretary of the treasury lyman J gage vaa introduced by president trowbridge gc mr gage was on alic pro grani for tomorrow but being ill alie city and desiring to leave before the convention came to a close a change waa made to enable liim to today mr gage expressed the opinion that there ia too close an intimacy between the gov and our commercial affairs but he added that it is a comfort and satisfaction to note that at the moment the injurious effect of such intimacy appears to be at a minimum lie urged alio present is a most propitious time for enacting reasonable reforms in the currency and banking laws air aage his financial convictions as follows 1 first I 1 believe it to be most dc that the demand liabilities of alio government known as legal tender notes should bo put in the way of retirement and cancellation second I 1 that this can bo accomplished any burden of interest cost to the public treasury thiril Thi rii I 1 believe eliat our system on bank note circulation can 10 and ought to be somewhat modified as to make it to be somewhat modified so as to make it dUK trial requirements fourth 1 believe that beyond acting aa a guardian and trustee for the people in relation to national banks the government guaranty to bank note issues should cease fifth I 1 believe that alic public moneys in excess of a reasonable working balance for daily use should be deposited in national banks that a emple and aade system of distribution of funds can be devised I 1 have no doubt sixth I 1 believe that in periods 0 national peace and prosperity the public revenue should be somewhat in ex chaa of public expenditure and that alio surplus revenue should 16 applied to the reduction of the public debt after presenting some statistical facca showing the present strength and satisfactory condition of the national finances mr jage in conclusion said looked at from alic int of true statesmanship it would that alie present ia alie moat propitious hour in all our history and as favorable as any period we may hope lor in the future to enter upon reasonable and judicious measures to eliminate nil elements of financial weakness which ey lias brought to light and to perfect our wv faulty system of currency ane resolution introduced at yesterdays asking congress to ree re e the charters of 1700 na iopal lanka which will soon expire wag not reported back today by the executive council gwng to the fact that it waa the executive council will report upon the matter later |