13
THE CHICAGO BANKER
July 3, 1909]
THE LIBERTY NATIONAL BANK OF NEW YORK FREDERICK B. SCHENCK, President DANIEL G. REID CHARLES W’ RIECKS ZOHETH S. FREEMAN ifej FRED’K P־A^cI!h!er HENRY P. DAVISON '^׳ ™ ^“hler CAPITAL, SURPLUS AND UNDIVIDED PROFITS $ 3,500,000.00			NATional baNK MONROE AND CLARK STREETS C H 1 C A G O Capital, $1,000,000 Surplus and Profits, $400,000 Your Business Solicited
			
Her Banking Laws
the examinations with that frequency he deems advisable. Such a bill was introduced in the legislature, but upon the recommendation of the Committee on Claims was referred to this special committee. It is not unlikely that the amount of help hereafter required in that office will depend somewhat upon the legislation adopted as a result of the investigations conducted by that committee, but whatever help is needed, should in my opinion, be unstintingly provided for, because we have abundant evidence that the present commissioner is not lavish with the state money just because he has the opportunity. I know this is one thought I have in mind that will not meet with strenuous objection from the Wisconsin Bankers Association.
The next subject I have in mind as an appropriate-one to receive the attention of this committee is the question of segregation of commercial from savings deposits. As you are all aware, this subject is to be considered by the National Bankers Convention in September, and I prefer to suspend judgment on the advisability of the state of Wisconsin taking action along this line until after a perusal of that discussion, and until the bankers of the state have been fully heard.
The other two subjects I have in mind are suggested by bills introduced in the legislature and referred to this special committee. The first to which I will advert is a bill prohibiting a bank from loaning money to any of its officers, while the other relates to the subject of this address, “The Guaranteeing or Insurance of Bank Deposits.” Referring to the proposition that a bank should not loan any money to an official of the bank, I desire to simply say, in passing, that I believe it can be pretty well established that an undue proportion of the bank failures of the country can be traced to the practice of an officer borrowing the funds of the bank. As a matter of principle, I believe it to be absolutely indefensible to permit an officer to borrow the bank’s funds without the consent of any other officer, or with the consent of all the other officers. If an officer of a bank is entitled to a line of credit at his own bank, he is entitled to the same line of credit at the bank across the street, and it certainly is not against public policy to say to him that he must go over there and borrow his money, where he will have a man on the other side of the counter passing on his credit with the same severity (Continued on page 28)
to Further Consider
W. C. Owen, of Maiden Rock, reviews the general situation before the Steamer Virginia convention, paying his respects to deposit guaranty
I do not mean that the banker should be entirely forgotten—I do not mean any such thing—but I do mean this: If it should come to a question of imposing a little extra burden on the banker, or any other class of citizens, in order to promote the public welfare, their self interests should give way to the larger considerations of the public good. I am also aware that the banker, no more than any other class of pur citizens, invites the imposition of additional regulations upon his business. This is in line with human nature everywhere, especially in this country and in this day and age of the "world, when every man is struggling to his uttermost to make not only a living, to accumulate not only a dollar, but to amass a fortune; but I am loath to believe that the bankers of the state of Wisconsin are so engrossed in the pursuit of the almighty dollar, that they have forgotten or are prepared to fully ignore their duties and responsibilities of citizenship, and that when it is made clear that a certain policy means the promotion of the public good, they will cheerfully accept added burdens, additional restrictions and limitations so long as it does not threaten the continuance of their business, in other words, they will not hesitate to sacrifice self interest to the public good.
I assume that I am indebted to my position as chairman of the special joint committee on banking for the opportunity accorded me here, and I trust I am entirely within the bounds of modesty when I assume that you will be somewhat interested in those things which I have in mind, as a member of that committee, as appropriate subjects for the committee to consider, and responding to that sentiment, I will say that I have thought there were at least four subjects which might very appropriately be considered by that committee, all of which have a bearing upon the further security of bank deposits, whether for good or evil rests with the committee, and ultimately with the legislature to determine.
In the first place, I think that the commissioner of banking should be given all the help he needs, or feels that he needs, in order to properly conduct the business of his office and to accomplish
Wisconsin Legislature
It is well known that the regular session of the Wisconsin legislature just adjourned has appointed special committees to consider a variety of subjects and one of the subjects to be considered by one of those committees is the subject of banking, it being the idea that this committee should respond to the call of the Republican State Platform wherein it promised the electorate of the state that it would give the subject of banking a scientific investigation with the view of promulgating laws that would throw every possible safeguard around bank deposits consistent with sound economics. It is my individual opinion that none of the committees have in their keeping a subject fraught with such vast importance to the state as the committee on banking. lust what can be done remains to be seen. The committee will hold extensive hearings throughout the state, in the endeavor to give as many of the citizens of the state as possible an opportunity of appearing before it with suggestions for the better security of bank deposits. We expect that the bankers in all the cities will respond to this invitation and appear before this committee and give it the benefit of their large and varied experience in the banking business, and when you come, gentlemen, my past experience leads me to believe that you will leave behind you any spirit of selfishness, all motives of personal interest, and that you will come and give us the benefit of your ripe experience and mature judgment from the highest sense of patriotism, and that, while you are before that committee, you will be there for the purpose of discharging your duties as citizens and not as bankers. You will come as citizens of your great state possessed of special skill and knowledge in the banking business and place it before the committee for its consideration with the lofty purpose of contributing what you can to the evolution of a law that will be in the public interests. I am not unmindful of the fact that bankers, like all other persons are sensitive of their personal interests and it would not be surprising to me if you found it somewhat difficult to eliminate your self interest from the discussion, but I know you will not forget that we are legislating for the whole people of a great state and that the greatest good to the greatest number must be the constant sentiment of the conscientious legislator, and this also should be the ruling motive of every citizen who assumes to express an opinion upon proposed legislation. By this