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BANK BOARD OF NO USE, SAY BANKERS Financiers Tell Legislative Committee Clearing House Exam= iner May Be Selected Rigid Rules Will Govern Combined Savings and Commercial Institutions Hereafter Dual banking was discussed by the legislative investigating committee on banking laws at two sessions yesterday, which were attended by several prominent San Francisco bankers, who said that the state bank commission was useless and declared in favor of a clearing house examiner. Dual banking is the tabloid phrase to describe a bank that conducts a savings and commercial business in conjunction, loaning out the savings deposits without regard to the restrictions which are placed by law on banks that are chartered solely as savings banks. The work of the committee progressed to the extent that suggestions were or abolishing that made more such to it drastic combined that laws measures institutions, be passed be adopted, permitting banks to continue in their dual capacity, but forcing them to comply with such restrictions for each department as the law provides for the separate institutions. On the invitation of the committee Homer S. King, president of the San Francisco Clearing House association: Frank B. Anderson of the Bank of California, I. W. Hellman Jr. of the Wells Fargo Nevada national bank and P. N. Lilienthal of the Anglo-Californian bank sat with the legislators yesterday. Senator E. I. Wolfe announced to the committee that he had invited Superior Judge George Sturtevant to meet the committee Friday afternoon and discuss the banking laws, with which Sturtevant became familiar while assistant attorney general. BANKS PLAN SAFEGUARD the yescommittee, Senator Leavitt, opened the chairman conference of terday by asking of Homer S. King: "What in your opinion was the cause of the late stringency and what in your opinion is the trouble with the present banking laws in the state of California?' King replied that there would have been no stringency in San Francisco if New York had not shut down on money. P. N. Lillenthal, in the discussing question, latter part of Leavitt's said that the clearing house was considerengagement of a who would on ing bank the examiner competent report the condition of all clearing house banks. The penalty for a bank not being up to standard would be disbarment from clearing house privileges. Anderson said that the bank commission did excellent work so far as it went, but its examinations were only on the surface. 'What consequence do you attach to the bank commissioners' reports?" asked Senator Curtin. "I don't believe the public gets any benefit," replied Anderson. "The work should be done by a trained man, and you can't get a trained man for $3,600 a year." "One way to guard the banks." be to enact a law a crime for a Hellman, ing it "would bank to mak- loan said money while its reserve is under the established per cent." WOULD ABOLISH DUALITY opening of the sesAt James the afternoon sion M. the suspended Bank of Luis Obispo, was Luis president of San of Crittenden, who given was San the privilege of the floor and attacked the law giving bank commissioners the power to close a bank. surveyor of a at Santa for divorce of strong and E. F. banker appeal Woodward, Rosa, made customs a commercial or considered them a Hellman savings banks. and He banks, combined danger. dual suggested that a reform by comply with all bank be accomplished making restrictions such might a placed on both savings and commercial banks. "But there is no objection to a a dual business," Hellman it keeps a doing tinued, "If proper reserve." bank con"But still you would put the limitations both types of banks on a dual asked bank?" of Leavitt. "Yes," said Hellman.
