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New-York tribune. (New York [N.Y.]) 1866-1924, March 18, 1906, Image 54

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When the average citizen finds in hi? mail an
artistic maerasine sent him. free oc charge, by
some truft company, rind sees within an article
headed. "We do your king Bj your home or
oOe»." his firs Impulse Is to say to imself.
"Heree ei.t. r; rise. Thr- people are certainly
up-to-date. I'll look into this proposition." Ar.d
when he learns how the company srfll send a
messenger to his address at ;iny time <>f the day
for his deposiTs; how It \\1!! present him with
a miniature bronze bank with a handsome 'lock
in Its face, in which to keep his savings until the
company's representative comet for them; how
the compnny «riH ray bJ« taxes and his gas
bills, collect his checks, draw up his will if it
be made bis ssoeesHar, and ln addition sjtve him
an especially high rate of Interest on his money,
jjJlsMs also likely to say:
TtJls is Indeed the twenti-th century. H"\\
glad I am that I was born no pooner. l'i! draw
out r.y money from that old-fashioned, slow
going bank that our family has done business
with so long, and put it where It will be handled
both convenU: • rind profitably fur me."
On the fare of it the "oM-fmstdoned" bank ap
p«srp to such a feu less obliging and less busi
nessllke than his new acfiuair.tar.ct>, the trust
company. Yet such Is not neoeseartly the case.
If the depositor should have a talk with the
president of his bank, for example, he might
learn that it would be glad to render him all the
conren!ence« and facilities of the most up-to
date trust company. If it only couM. He might
also get a better understanding of the trust
company reserve question, which has been agi
tating bar.klng circles ln this state for the last i
four years, pr.d which has Just now come to a I
( •vav
"The real that your tru c t company can ren
der you all tbeac wika a," the bank president
would say, "Is becaoM It make. Car more money
than we do. It is not bmndlcapped by a reserve.
It 1s r.ot compelled, as this national bank is, to
keep <<r>e-quarter of Its cash in Its vaults uriin
• vestec). The trust company can niake proflts
on practically all of its deposits."
"But is that kind of a banking institution
safe?" the depositor micrht ask.
"The trust company people say so," is the
reply, "but I do not think 80. I think that this
great Increase In the trusr company business
has made our financial Btructur«» tnpheavy. Any
oonservative banker will ff!i you ih« same ihlnp.
Indeed, I fear fnr what nifpht happen if another
panic ehould come.
"Then again, in national and state K-nks all
equal; in trust companies, the
.* are first preferred, the pavings
ordinary, common, every
day mortal third an<l last. Much has been sp. ld
; of trus* company fall
■' how their ordinary depositors
"• : the flftsai • ■ failures of
the Ms •.' y and the American
; any. The latter institu
tion paid ltp rref<-rred creditors in full, and the
ordinary depositors the munificent sum of five
» dollar "
liellevir.g that trust companies. if they do
bar.klng. ehould Kiv« the tmMlc the Fame s*afe
guards aga.lr.st flndndal vicissitude as the 1 ranks
have long been required to do, the heads of the
national &rA state banks In tins state had a bill
•;:.tr<v}ij<-'e<l nt Albany at the beirlnnlng oC the
' prCß«nt ii'ici»in'lv« ■nriir>n- Thlu iMwun r«"
■..:•,] thar every trust company in Wew-Yorfc
City --lould maintain a 35 per cent reserve, half
of which should be ln Its own vaults, and haJf
ln the keeping of another trust company or a
1 a:.k, rubject to call. Elsewhere in the state
The trust <->mpanleB .houJd maintain a 10 p*r
cont rr-serve.
The attack on this measure by the trust <-om
panies was bo vlfrorous that the p'-ospect of
passing the bill at flrst looked dubious. The
leading cxpononts of the. trust ccmpanlr-s as
serted first and rnoet strongly that these l:isti
titlons were as secure agaJnst a panic as the
public conM expect. John B. Borne. preaUtnt
of the Colonial Trust Company of N>w-York,
ard presl3ent and spokesman of the State As
sociation ef Trust Companies, ma'le th<? state
ment that ln the la?t ten years, although the
deposits of the trust companies In this state
had Increased from $300,000,000 to $1,000,000.
000, yet there wore only two failures of the*--,
institutions, and ln each case the depositors did
rot puffer loss. Trust companies, he also said,
did not need eueh a large reserve as the bill de
rraiUftfl because th^y did only -fourteenth
of the exchange business that banks carry on,
because al««o they had a vast number of time de
posits, rot subject to Immediate call, and conse
quently their or.eys were r.ot so plastic as
those of banks.
Ttip bankers, however, combatted su<Ji argu
rr.entß bo vehemently that lome time later the
trust companies consented to tha psassaga of the
bill. If amended to require a smaJW reserve.
Finally they agT«ed that it should provide that
ea^h N«r-Tortt City tru^t company should keep
a 10 Instead of a 15 per c-ent cash rf«rr«, half
of whlc*» should be In its own vaults and half
on deposit ln ajicther trust company or bank.
In addition, it Bhould keep a 6 per ocnt renerv*
in bonds of the United Btates or the Ptate of
Although the Mil as amended was not satis
factory to the conp^rvattve bankers, neverthe
less they agreed that if It could pass In such a
form 1t would be far better than nothing. "Two
thirds of a loaf Is better than hunger," they paid.
Senator Bterens and Assemblyman Walnwrlght,
chairmen respectively ot the Senate and As
sembly Banking committees, were accordingly
left by both aides to see that It was pasned.
The Senator and Assemblyman, however, in
stead of uniting on one bill, are each backing
a different measure, so that thmr% is fear that
■* "Ptte of ail that has been done the legisla
tion will be endangered. The two bills, how
ew»r. are so nearly alike that It would hardly
stsai possible for Mr. Stevens and Mr Waln
wrigbt to thwart each other through a failure to
acre*. The Wsicwrlght bill proxifles for aIB per
oeet reserve, distributed as described above. The
Stereos bin Is Che Walnwrlght bill amended so as
to include tbe bocda of any municipality in this
state. The Stereos bill has passed the Senate
and Is In Mr. Walnwrigl'-s committee. The
Walnwrtght bIU Is expected to pass the Assem
bly Toeedsor, when it will go to Mr. Stevens*s
The attitude of the bankers toward the
amended Trust Company Reserve bill Is well ex
pressed by Alfred 11. Curtis, president of the
National Bank of North America, of this city,
and also president of the New- York State Bank
ers* Association. "The bill as agreed on by the
banking coxnmtttaes of Senate and Assembly."
he aald yesterday to a Tribune representative.
Is not what the bankers of the stats hoped for,
b«t *» Is a step In the right direction. We have
the greatest confidence In Senator 8u v.-n* and
Assemblyman Walnwrlght, for they ere not
what are known as professional statesmen.
"The public at last has awakened to th« fact
that banking without reserves is a dangerous
cosjdatftasi of affairs, and the demand for a re
serre law for trust companies is almost univer
sal Many trust company officials who were
never heard to say one mord in favor of a re
serve now publicly admit that a law of the
kind would be wsloomed. Yet. of course, they
neslre to have the percentage made as low M
-M I have paid, tho Stevens bill. Hlthough a
D the ripht direction. Is not all we hoped
for. Tli- trust company ha* become a national
bmtltutlon and should be controlled by national
laws, tho same as national banks, instead of
baring, as In some states, a 2T> t*?r cent re
■erve. and « ;1S ln ' nls ■*■*•■ none
The trust compai f "f to-day if a bank-
Ll privileges. It can
. rythtng a bank l-sji ■ Issue drcu-
"Personally I have no feeling against trust
companies. Many of their officials are warm
personal frt< nds of mine, but as an ofilcer of our
State Bankers' Association it Is my duty to
take the action I have. And 1 am sure wo will
win in the end."
At Buffal on December 29, '•'■■• at ll!r annual
merting of Group I of the New-York state
Bankers' As'ocißtlon. Mr. Curtis made a speech
on this name subject which attracted attention
Thrcusrhout the country and which <ll<l much
toward bringing th« question before the f.^Rls
J you. gentlemen, the present situation is.
to aay tho I<hm. uncomfortable, and is a matter
of much concern to thnsfi who have studied the
subject In New-york City the trust companies
have over a billion of dollars on deposit, and
less than 2 per cetll cash in their vaults. Now,
let the banks of our Clearing House fall - per
slow their customary 25 per cent reserve
In heralded all ov«r the country in large
type, SBd a financial crash is prophesied
"When the national banking act and tho laws
of some states were enacted many years ago the
trainers of these laws very wisely Insisted upon
n c.Tnh reserve. This reserve was considered the
safety valve, and to-day you hoar from al! jiar's
of the country that this national bank or that
.ink Is being liquidated to become a trust
iny, ami the safety valve is day by day
gradually becoming reduced In size, in the city
of Springfield, Mass., alone, five banks were
up and merged Into the fnlon Trust
•I i.: my entire business l i r- ■ In Wa:i
and nave witnessed every panic Bince
iho manor ■ Friday, an<l I know to>>
well bow easy ll is to retire ;it night. In the
calm of p summer evening, and awaken In the
wildest storm. Sometimes we receive a warning,
and then again it ma)' coi >!t out of a
clear sky, similar to tho crash of 1901.
"The last report of the Superintendent of
Banking showed that one large trust company
in Now- York City had nearly sixty millions of
deposits, and did not have one dollar of cash In
its vaults. It is true that this mist company,
like many others, had a good sized bank account,
but tho banks cannot pay from I'** to over 2 per
cent ~m these accounts and keep this vast stun.
amounting to nearly one hundred milli
dollars, idle. They must also invest it. and if
called upon to-morrow by the trust companies
to pay they must meet the demand or suspend
"The City of New- York is a central reserve
city, and Is carrying a large portion of the re
of many out-of-town banks; if, in addi
tion to this, they are compelled in times of stress
to alfo carry the reserves for thr- trust com
panies the load may prove too heavy. Skating
on thin Ice has long been known an a dangerous
equally dangerous."
The campaign of the bankers for trust com
pany reserves ln this state has won tho support
of many trust compnny people in other ntatos.
J. D Powers, president of the United States
Trust Company, of i-iouisvilie. writing to
Mr. Curtis, paid: "I heartily agree with you
in all that you have so well and forcibly said.
Trust companies . . . that do a banking busi
ness should be. rf-qulred to observe the condi
tions that obtain with reference to banks. The
reserve of mich companies la not only proper,
but absolutely essential to safeguard such Insti
tutions from calamitous conditions.**
P. <". Kaufman, second vice-president of the
Fidelity Trust Company, of Taroma, Wash., and
one of the most prominent bankers on th^ I\i
etflc Coast, who was at one time a member of
the Executive Council of tho American Bankers'
ition, wrote Mr. Curtis: "I believe that
it is only a question of time when all banks tha»
are doing a banking business will bo compelled
to maintain a legitimate reserve irrespective of

trust company man who advocates
reserves for trust companies Is Festus J. Wau>,
president of the Trust Company Section of th«>
American Bankers' Association. "The trust
company," he says In The Monetary Record,"
"is an established American institution. Its suc
cess is moHt marvellous, its development aston
ishing, and it is only a question of time until
Baltimore. March 17— Probably the moet
notable gathering of prelates of the Roman
Catholic Church since the plenary council in
1884 will be at the celebration on April 20 «-f
the centenary of the laying of the cornerstone
of the old Baltimore Cathedral, the seat of the
primacy of the American Roman Catholic hie
rarchy, the great hall of legislation for that
church In the United Btates.
Twelve archbishops and a hundred or more
bishops, nior.algnorx, abbots and leaders of the
various ecclesiastical orders will take part In
the ceremonies, which will be on a scale of mag
nificence never before equalled in this church,
not even at the national councils.
For more than a year decorators and gilders
have worked on the minarets, dome and the In
terior of the big edifice, completely renovating
it for the centenary. The cotitly work is now
The Baltimore Cathedral is the eecond oldest
cathedral in the United States, the oldest being
the cathedral at Ht. Augustine, Fla., built by the
The programme fur the celebration Includes a
prucevslon of the prelates and priests around
the Cathedral block on the morning of Sunday.
April 2S, to be followed by mass at which Arch
bishop Farley of New- York will pontificate.
Archbishop Ryan of Philadelphia will preach
the sennon To this service may also be In
vited the President and Vice-President of the
United Slates, members of the Cabinet, many
Senators, representatives and diplomats and
state and city officials.
At vespers Archbishop Messmer of Milwau
kee win pontificate, and Archbishop Ireland of
■t Paul will preach. These two service, win
eesaposs the religious part of the programme.
The main social feature will take place on the
ssj of the following day at the L/yrio.
Arguments by Which the Older Institutions Prevailed
Against Their More Modern and Less
Conservative Rivals.
trust companies, ln point <>f Importance n«= '■>
deposits nn'l wealth, will ••xcfp.l the at
banking system itself, provided they will carry
a «tron? reserve.
'The combined deposits of trust companies in
the United Btates nr<» greater than $2,847,000,
000. The combined deposits of the entire na
tional banking system wre, ten years ago,
5U.H1.0i4.270. The combine,] deposits of the
national banks in thf> I'nttf-d St;it>;- in l'.»i»r» were
.<.".. .Vi4.V1.\1!t4. The banking power of th" world
la 133,006,000.000. The banking power < % f the
trust companies In the United Btates is $3,802,
000,000. Thus it win be seen that the trust com
panies of the I'nitp,! States represent more than
11 per ct-nt of the worlds banking pOW< r.
'Van nny man who desltea to be roaat
a safp banker say that trust companies should
carrj no cash reserve, when theso facts are pre
sented? Why any trust company official should
hesitate to keep a cash reserve of less than 7V,
per cent against his deposits is absolutely be
yond my comprehension. 1 not only advocate a
Centenary of the laying of its cornerstone to be observed next month with great ceremo ly.
stiff reserve for trust companies. I go further.
I advocate rigid, expert examinations at fre
quent intervals during the year; the publication
or statements every tim^ the cuutxtmsr *>r H'^
Currency calls for one; and lnst. but by no
means least, governmental supervision of every
financial institution, be it state, national, a pri
vate or public hank, a trust company or cor
poration or individual, who acts as n depository
for funds of citizens of the United State*."
Tli«' Mercantile Trust Company, of which Mr.
Wade ip president, is on«* of the largest In the
YVt-sr. it voluntarily entered the St. Louis Clear-
Ing House Association, which requires it to
carry the same reserve as th>> state arid national
banks which are also members.
Forrest H. Pnrker, president of the Xew-York
Produce Exchange Hank, believes that the
amend<'il trust company reserve bill will safo
guiird the financial Interests <>f this state to a
considerable ili'Kn^. but not enough. "As things
have been going," h>- said yesterday, "our finan
cial structure was becoming tor.h^avy. The
great growth of companies] doing a banking
business without reserves was bringing us to a
condition wher<- thr-re would not be money
enough to go around. Th.- total deposits i n th'.s
city aro now represented by a smaller propor
tionate reserve than in any great money • ■
in the world.
"I see nu reason why the trust companies
should not make weekly reports, as well as the
"If the national banking law requires the re-
Fervo amenta of national banks to keep 25 per
cent of their deposits In cash, should not the re
serve ngentH of state banks or trust companies
There Will Be a Great Gathering of Roman Catholic Churchmen
to Celebrate the Anniversary Next Month.
There all of the prelates will gather to a recep
tion. This will be one of the most notable
gatherings of Its kind ever held in this country.
Charles J. Bonaparte. Becretary of the Navy,
will make the principal address welcoming the
prelates, and he will also speak on the Cathedral
and tho work of which It has been the seat for
a century.
The history of the old Cathedral Is told by
Cardinal Gibbons, who. In speaking of the Im
portance to church circlet of the coming event,
"In celebrating the centenary the name of
Archbishop Carroll will occupy a conspicuous
place. John Carroll was appointed first Bishop
of Baltimore by Pope Plus VII. and was conse
crated on August l. r », 1790, In the chapel at
tached to Lulworth Castle. Dorsetshire, {Eng
land. His see. the oldest in the United States.
embraced then the whole country. The conse
crating prelate -was the Right Rer. Dr. Walmes
ley, vicar apostolic of the London district.
"The site selected for the edifice was pur
chased from Governor Howard, of Revolution
ary fame, whose equestrian statue adorns Mount
Vernon Place. His daughter, Mrs. Wnilam
George Read, whom I had the pleasure of know
ing, a convert to the Catholic Church, was for
many years a devout worshipper In the Cathedral
and a zealous member of the Sanctuary Society
The architect of the Cathedral was Benjamin
Henry I,atrobe, the grandfather of General
Ferdinand C. Latrobe. many times Mayor of
Baltimore. Mr. Latrobe also designed the old
Capitol at Washington
"The cornerstone of the Cathedral was laid
by Bishop Carroll on July 7. 1800. Baltimore,
kf»op at \-.M>t IT. i»er cent cash? Oae Sy Stall or
the other is at fault "
In a statement made to the Senate and As
sembly committee* on Banks Mr. Parker said:
"To allow trust companies to do a banking
business without reserve, an*i not the banks. Is
wi i! .•-■•> than any rebate or discrimination system
existing , and this i« a time when rebates and
discriminations are recognized aa no longer to
be tolerated."
William A Nash, president of the Corn Ei
ch:mKe Hank, and formerly chairman of the
Clearing House committee, sounded a note of
warning to that committee last October that
the l. ii. kern should insist that the trust com-
I>H!iW's should keep the same reserves as state
tanks "'* per cent cash in a company's own
vaults and TV* per cent in the vaults of another
trust company of br.nk. The resolution which
Mr. Nash proposed was passed unanimously, but
the committee took no further action.
"Thp trust companies have grasped at the
business of the banks," he said, "and are now
doing the business formerly belonging I
banks under such different conditions that the
profit of banking has drifted from us to them.
■vre Know very tv en tiiai this has been •l»no with
th« aid and connivance of bunk officers and di
rectors. lam simply stating well known facts.
"I mnke these remarks at this time because I
think the hour has struck when It Is Imperative
that the New-York Clearing House should be
true to its history and traditions and apply the
cure to an evil that grows more threatening
every day. Credit has been enormously ex
tended. It was perhaps needed and useful. But
the basis of credit has been negl<>nfed and nar
rowed. Before tho effects of such disproportion
become unmanageable I urge this association
to take, the matter in hand. It is expected of
us "
To thn Senate and Assembly commute. -s on
Banks Mr. Nhsli said
"The dangers of the situation have been dis
cussed by various persons. I am perhaps re
sponsible for one note of this chorus. I see a
great and beneficial development unballasted,
and I call attention to the fact I see immense
debts owed by two classes of state institutions.
The banks of discount are prepared to meet their
Contracts with a cash reserve prescribed by law.
A ffr-at section of similar institutions, bearing
another name, nro without this essential basis of
payment The depositor does not want his
money in cash, but he wants to feel that It Is in
sight. If it || |n sight, he is satisfied. You
may call this sentimental, if you will, and per
haps It Is so, but It is the hardest fact that I
know of In banking. Then there Is this plain
duty to safeguard the deposits of the people.
tim« h.H ay haB early 600.000 souls, at that
time had a population Of about 80.00? and the
Catholic community amounted to hardly 6.000
waJbrcSS!r U f wlt^ whl( 'h the church Is built
in carta^ffSLn the uaiT °t Ellicott City
Uon alowiv ? by ° Xtn Tho work of wnatruc
tion slowly but Pteadily advanced until isr>
£nd U . w " interrupted by the wirVtth En?
land. After the close of the war the work »™
fheTutfdrn^ln^l^ on Untll th " SWB&TS
ArSblrtU,n 8 i f f IS21 ' w th « edlnc « «•■■ dedicated by
rfck WaS con «™cted by Archbishop Ken
the°r ft M?f^'! On Day ' Th «™<3ay. May 25. 1870.
BavW ™ ' /'onseorated by Archbishop
liayiej The Bacrt ty was erected In 1370. and
added In K a " llar ed and tho B ew sanctuary
ha^f'h^n 11 , 8 !, dedloaltor '. «n 1821. the Cathedral
huinHo Vi -f cene Of many conspicuous and
States hi?^?» rtng-^ N '° Church tn the United
bi-ho^- witnessed Bo many consecrations of
D wi'hf lnatlon , 8 of priests as have taken
Place within these walls. The twenty-six blsh-
Am«rfn r. oc Kl ? UI)l « <1 leading positions among the
S^cleston h n l era , r< y> lnc udln Whitfleld and
S.^v' Baltimore; Fenwick. of Boston;
•Sfui; JS^S": of Wh *«"nr; Cross, of Oregon.
rsJsed he™ t ° ll yß Ot thB twenty-six bl-hops
the Drlvill^ '/ he ePIBe P l8c «Pal rank. I have had
"B PncßP ncB £Z ° f / on " PC '-atlng ten.
dainedl2ff<L a , dvent ln Baltimore I have or
orders in th Pr oBta>o 8ta> of whom received sacred
lnv« J \\£» Cathedral. Three prelates were
In ?89ft I w.^. 1119 taH lsn«a of cardinal rank.
year, lafer i K tU on Ca rdinal BatoUl. and six
beh™f of pL,*", Performed a similar offlce In
•Thi. v«J " lnal Martlnelll.
hall Vai-E*i bl ' temple h " b ««n the great
States Ten *,lon, l0n Ot the Church of the United
art- or nat? VlncllU «nclls and three plen
ary, or national, council, ware assembled here.
"Every other line of business Is prosperous
and on a sound working basis except the bank-
Ing Interest In this state."
John D. Crfmmlns, a director in many banks
and trust companies, said that he thought trust
companies should have a 15 per cent reserve.
"Fiv.- should be in cash." he explained, "fire
in bank deposits, and five in quirk assets. There
should be only one classification of trust com
panies, and that classification surrounded by
the conditions which require reserves. All trust
companies, hanks, railway companies, or any
company organized and existing under a state
charter, in which th,e public has funds invested
or deposited, should be required to make the
fullest reports."
In defending the present methods of trust
companies. Mr. Borne, the president of their
state organization, said that trust companies
had grown so enormous sfmply because they
supplied a publlo want. "They are the savings
banks of the well to do. of Individuals, firms and
corporations." he said. "With the Increase of
wealth supplies of surplus moneys have grown,
and it has been the natural desire, on the part
of their owners, that these moneys should bear
interest. The trust companies recognized this,
the result being that, while ten years ago the
number of trust companies in this state was
thirty-eight, with a combined capital of $29,000.
000 and deposits of $807,000,000. to-day the
number of trust companies has grown to eighty
one, with $64,000,000 of capital, over $1,000,000.
000 deposits, and with 250.000 depositors.
"Comtng back to the record of the character ot
the trust company deposits as shown by the
extent to which they are drawn on by the
depositors, we hold that this feature ehould be
taken Into consideration In any bill instituting
a trust company reserve. Therefore, !n this re
spect, a bill for a IS per cent cash reserve Is
unjust and Inequitable.
"Every trust company has among its deposits
a number of time deposits, of varying periods,
for which certificates are Issued, from ten days
to one year These deposits cannot be with
drawn until the termination of the period ar
ranged for at the tlrr.o they are deposited. It
is unnecessary to ho!ri «. reserve asainst dapoalta
of this class.
"Let us exrniine Into this claim of similarity
of business. Carefully tabulated figures for the
year 11KV» show that the clearings of the banks
In the New-York Clearing House, with com
bined deposits of $077.nT>l ,300, were $03,822,
000.201; and that the clearing! of the trust com.
panies of Manhattan, Brooklyn and Queens,
forty-eight in number, having deposits of $W.*6,
380.588, amounted to M82.00Q being les3
than 7 per cent of the clearings of the New-
York City banks; In other words, the extent to
which customers of Xew-York banks drew on
these Institutions was fourteen times greater
than tho extent to whtcn trust companies were
drawn en by their depositors. Surely with these
figures before us the < latm cannot be made that
the business of the trust company Is similar to
that of the bank. It shows conclusively that
the deposits are of a more stable and perma
nent charactsr.
"Now as to trust companies themselves. They
are cr^ntur^s of the state, and the state has
every reason to be proud of them. They have
conducted their business with rare Judgment
and conservatism, and have served the public
and their depositors well. In 10OT> they distrib
uted to their depositors $32,000,000 in Interest
and paid to their stockholders $10,400,000 in
ten rears they have distributed to depositors
*147.000.000 in interest nnd have r ali their
stockholder! 162.00D.00U in dividends. In other
words, they have distributed two-thlnls of their
earnings among their depositors. Th. ; i r <> larga
taxpayers. In 1905 they paid to the state of
Nevr-York $2,301,300 ln taxes, as agalnsi $!»7.:..
OSB paid by the New-York State banks.
"I shall not oppose the Stevens bill, as It now
stands, but I do not think that the reserves
which it demands need be as large as It stipu
In commenting on the figures given by Mr.
Borne In reference to the clearances of banks
and trust companies, the bankers call attention
to the Immense transactions of the New-York
Btock Exchange which pass through the Clearing-
'The Clearing House clears not only the checks
of the Clearing House banks and those who ar»
non-members with deposits amounting to $147.
000.000," said Mr. Parkrr. president of the New-
York Produce Exchange Bank, "but also the
checks S lven by the trust companies, and in
addition the vast number of checks and drafts
received by banks from their correspondents all
over the country and from foreign countries; and
to these nlso must be added the checks given by
th« Stock Exchange houses (whose voltims of
business Is enormous, as the average sales per
week are about $500,000,000 par value> for the
payment of loans, stock and bonds, and thesa
Archbishop Patrick Konriok presided over the
first national council. In lS'.l' Arrhblshop
Spaldlng presided over the second national coun
cil. In 18W5. and I had the. honor to preside over
the third national council, in ISS4. This last
council was attended by seventy-eight bishops
and abbots and by the leading clergy of the
country. Of the seventy-ei^ht bishops who at
tended that council only fourteen survive
"But this church is not only a temple of wor-
Bhlp for the living, it 1h also a msn— for
the sacred custody of the dead. In the crypt
ander the high altar nre> deposited 'he ashes .>f
Carroll and Mareschal, of Whltfleld and Eoelea
ton. of Kenrlck and BpakUng.
"Many of our Amertcu citizens are In the
habit every year of making plltrrlmuKcfl to Mount
\ ernon to view the npot where th.- Father of
Ills Country Is buried. And many a citizen of
the republlo of the Church Is piously drawn to
this temple that he may contemplate the last
resting place of the patriarchs of the American
What Mecca Is to the Mahometan, what tho
Temple of Jerusalem la to th« Israrllt*-, what
St. Peter's Basilica, in Rome, is to the faithful
of the church universal, this Cathedral is to tho
American Catholic."
Cardinal (Jlbbons, whoea home adjoins th*
old edifice, loves It more than anythlia eis«
earthly. Speaking of his own associations with
It^the venerable prelate said:
"Every stone of the building is sacred to me
It was in this church that I tvaa regenerated In
the waters of baptism at the hands of the ven
erated Dr. White. T'nder Its shadow I was
raised to the priesthood. In this temple I wa*
consecrated Bishop by Archblehop Bpaldlns- of
happy memory. It was here that the Insignia,
of cardlnalltlal rank were conferred on n « ' bv »
LThn '; ntUtlve of Pope l^o XIII Here I have
jears a. ' PrlMt and PreUte for Thirty tuo
•w ln * en<l tl> continue to offer the holy saerl
flee and to preach within these wall, as lo^ a*
f ' od , « lv me life and strength. An^"s "* "
earthly career Is ended, which In th« cnuJL V f
nature and In the order of Provio.no? K° f
distant. I expect that my body will reposl J i2 \{T
crypt beside the ashes of my HlustrtoE? *" '« hl3
alone represe» probably over 50 per cent, of ths
total clearings/
Edward Klnaj. oreal<ser.t of the Union Trust
Company, of Newy O rk. says the rigid rcls en
forced by the Ne--Tork Clearing House) JU
sociation, requiring trust companies affiliated
with the association to maintain a minimum of
10 per cent of deposts after July 1. l»04. ooOid
not be made opera*v«. "The w!th3rawal ot
nearly all trust comfrnles from their connec
tions with the Clearir: House," h«* said, "show*
that such a plan canr.a be made enTecttre, II is
both wise and prudent, however, for trust com
panies to maintain a noderate reserrs, leartn*
the percentage and the disposition of su^h s> r«
serve to the discretion <J the trust company. T>
require trust companies to keep a cash reaanre
of deposit! amounting, n the case of all New-
York City trust comparjes, to orer I40,*)00,000,
or at least 130,000.000. if he Clearing House) rule
had become operative, would be to retire Just
that much from circulation as a dead asset. In
crease mon»y rate, and lrapalr the stabUi y cf
this mor.ey centre to that cegree. To determine
upon a fixed reserve Is an action obviously un
wise and a mistake, as viewed in the light of tho
situation to-day."
In reference to the same *abject of wlthdraw
sls. Mr. Curtis at a hearing at Albany recently
"You should not be frightened by the bugaboo
of a possible withdrawal of a large torn of
money from circulation. If banking with B*
reserves is «a*"°. then let as have- the Nation:
Bank Act amended to 15 per cent, and lr. Haw-
York City alone It wou d release one hundred
millions of dollars."
"I am ln favor of legislation for trust com
panies requiring a ra^h r»s»rve of 5 per cer.t
and 10 p»r p»nt divided up ln deposits la deposi
tary banks and in demand loars," said Chaxle*
T. Barney, president of the Knlc'K*rt>ocker Trust.
"This protection wouM bo adequate, and would
fully answer the argument made by members of
the Xew-York Clearing House that practically
no reserve is maintained agair the tal de
posits of J718.631.840. as reported at the be
ginning of the year 1904. Th assertion that
there is no reserve maintained by trust com
panies against these deposits Is misleading.
Trust companies maintain a rea»r\ In cash de
posited ln the bank9 and d-rrand V.'all Street
"Although there may be a varl^- . of view. on.
the subject, I am convinced that r" n rastlna
tion Is nnwiae. and that the earlier this probleia
!s solved the more advantageous it will be for
"The reserve proposal has aot be' demon
strated as a necesi said George W. Young,
chairman of the I oar.l of directors of the United
Btates Mortgage and Trust Company, in a re
cent article ln "The North American Review":
"The record of experience is r.ot available for
that line of argument Th« rrf>«t that Is claimed
is that it is a nece?slty threatened. It Is the
future welfare of the trust company depositors
about which there is such deep concern. Their
welfare ln the past has been abundantly looked
after by Che trust compai themselves. It 13
the 'what-nrclght-happen' which is the Issus. To
be sure. the experience of over thirty years has
demonstrated that the 'what-rr.isrht-har pen' has
not happened. The argument simply la that it
'might." This is the sol« ground on which has
been based so much anxiety for the- safety of
trust company depositors. Ths ir.ferer.ee sought
to be drawn Is that between trust company de
positors and the loss of their deposits there is
no safeguard, no matter how faithful to their
responsibilities the •-ust companies rr.ay hava
been in the past."
In reply to Mr Your.s\ Alexander G:!'cer:,
president of the Market and Fulton National
Bank, of New- York, snli that Mr. T« :r.sr omit
ted In his article to ."tate that tor twenty-two of
the last thirty v ars the oM fashioned idea that
trust companies were not orgnnize<i to do a
general bankir^ bastnesa prevailed m. theory
•ad practice. "It is only within the last el^ht
years." he said, "that the modern trust ccrr.
rrir.y has Invaded the n>hl >^f commercial bank
it g. during 1 which time there ha-; be^n no S!*v-»r*
commercial panic to t?st the ability of the tTOSt
company to withstand the pressnr* that wou'd
develop from a deposit UabOlty of a thousand
minions, of •'. 'Uars. trltfc no nr* in tha
v.v.ilrs to protert it."
Edmund I> Fisher, sefrernry of th« FlatbusJi
Trusi Coxnps. ly, of Kr ■ .said thai twei
two "f the forty-rive states of Um L'nier. : -
quired trust ronipanles t»> maintain reserves,
and that more states are constantly being add
ed to the list.
To show h'.<w New-York, which requires r.o
reserve contrasts with these other states. Mr.
Fisher has worked out th? foMowins table:
__ _____
3? II j
'' si A
Sta«" ■■ Cfearacuref 5 2 *5
■MWita I £ ?|
£? j\*
i Alabama "....'; 13 j •
CmUt rnla 18 TH TS
L*r«e cttlM . 23 [ 12512-»
("•nnnertlcut 13 i *ll 4
G*«>r«la 85
I<l»h,. J5 PfmaM : V 7 i
Illinois 13 'rv>mm»f-!;i'.
I.aric» cities I 23 ICMMMRW
Kana— 23 Demand tUH l-'i
Kont..' 19 U I
Larse cltte» 23 I 161 -»
Louisiana. . . t3 jr>Tnan.* '17 S
Main* j 13 !p«mand up I
'...u t!0 S
Massachusetts 115 IVmanJ up I '■
; •<>•• iio o
MleMitn 20 remand 13 ' 3
Montana ' 2O l>»pian>i !•> ' I*>
New Jf r»ey ] ISiDeir.and '12 •
N>w Ist all. fl5 ' » «
Oh!,> ia r>smarul ud Ij 10
d^ys TIO ■
Pennsylvania 1 13
I_r«e .-Itl^d H •
Eouth I'akota 23 I>»man<l
Teias I» ' Pemari ' • *.. 13 id
I'tah I J3 |Commer>-lal
1 TgH ,ltl-« 3i> rcmraerrisj ...
M <irlnt« d»T"si*«-- •
■W-st Virginia... I 1* IfnunJ 11"% 3%
AVy..mlne I 23 ! ! ■ • . •
Suiumervlll?. S. C.. March 17 (SppcU:>.— The weeTc
at Pine Forest Inn has be*n a? full pf gayety as
the previous ones. There Is no AotxM that this is
one of the healthiest places on earth, and, to Ju«2j«
from the appearance of the ipjests her*, cr.e would
not say that there was an invalid o* even a con
raleaeeafl within or.e h-;ndr. miles c»' the Inn. On
Monday wan the regular serr.!-we»-k>y gclf handi
cap. There were thirty-eight er.trle*. ard an Heal
day. a gallery of pretty wemea a-. I a coons to
make the true golfer glad. The coitest resulted In
■ A. Hoopes, of WUmtrgton. T>4 ., v.;n-'.r.g first
prlie. «n.l J A. \V«rJ. of Roch«*t.r. Um
l<riz». Mrs a W. Spence. of Wa<*i!ns,-r jn. won first
prlie for women, and Mrs. A. 8«n. of New- York.
the se,-orul prize. »w««
on Tuesday evening the reguUr weekly bowltn*
tournament took place, and tlt» amuscme-' hall
was crowded to ; the doora. etarJlr.K' toota b-'.p.ga:
a premium, and yet the bow'.e» were r.,-t ta any
wise Interfered with. There wr* twvntr-tte** sn
tries, an.i Ueneral I* Plsttsbcis*. of Niagara Fal'.s
N. V. won tlrst prime, an.'. !r* E. H. Lee, thi
women* prize. On TTIUIHSIIiT the hixat#rs w*r*
out and enjoyed a drag hun. of abou: five rU>
.vw n * FoTV9t Inn h>unds .'ere at their best, ami
ine nunt was thoroughly e:i«>y,<i!. not milv '. >■ tha
naers. of whom there w*n« nor* than a ncore but
Ji'^ y ivi ia ? y « UCBts - •»• f^"*^l t .... hunt aa w«ll
as possible in carriages. OnThorsday evening there
was a special bowling to rnsniMt, Victor \V!»-.
Airs, >leoll. of New-Tork second prise
Among the recent XewTors arrivals are v P
Walkor. E .-r.U. Uwr«i>« K
Mr. and Mr *\. c E Swstt. Mr. and Mr* H V
Maaen. Mr an<l^ Mrt ! R Chapman. 1.. Fkihonoa^
Mr . fi 1<! - Mr «- >: H H
• n>l Mrs }{
— ■ m __
In IS9B tho only meotarde tlly mo\ed veh!o!e wa«
the cumbersone engti» that brok« tows country
bridges and scared orse» out of th»!r harnesa.
Since then the develPment of the Qctrt. *erfnl
car has b** a j, ur( » raptd. Mor
<.nn make San<l *•"« of loth for "- :i S»S Amsn.
inn make are now wned tn the states, repreaent
!»l, encrsA- of ?V0..j0« horsepower iad » sa!^
here Wo '° UX La ". t year " I>W r * **•so 4
wllt.se* 36. 000 a nowpr«drtert that tba coming yea.
ff» VV«*iUy. '" ' ' '"" ' ■■ x: '- i * ~ «•*•

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