Proceedings of the Annual Convention of the American Bankers' Association Volume N . 43 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1917 Excerpt: ...this Association, active in the Executive Committee it is not new. Gentlemen, you are entitled to know the result of the labors of those men. I prefer that they themselves should tell you. Mr. Robinson is here. He knows who was the chairman of that committee--and there are others. If they will not tell you, I will. Congress has said, "No, we will not do it; we cannot do it." Congress, gentlemen, has provided for the financial community, has created the Federal reserve system which commercial banks use in times of stress to liquidate their assets, to extend and offer credits, to respond to the demands of their depositors. Savings banks are not members, as has been said, of the Federal reserve bank, and cannot be.-It has been suggested in Washington that they might be made members, under these present conditions, but that privilege has been declined. How will that disposition of it by the members of Congress affect the savings banks and our depositors, and how will it affect the government? In the first place, the savings banks of New York state have the privilege to obtain loans on their securities as collateral; and any individual may do as he pleases in signing notes, even when he knows that he cannot repay them, he may sign them in any event, expecting forbearance and prolongation. But will savings bank trustees sign notes for loans when they know they can't repay them at maturity? Can they realize on their investment? Mr. Chamberlain has answered that question. We have no market for our securities and until members of Congress tell us, we cannot do that which we think ought to be done by the savings bank. Congress has been discussing the question of taxation, taxing war profits, in other words, taxing large capital. That discussion has been goi...