The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1878-05-28
BANK FAILURES,

Il
Since the ever memorable crash OF
1874, bank failures have caused more
distress among the people than any
other circumstance pertaining TO eom-
meroe or finance, Perhaps the worst
form of distress in this connection has
attended tho collapse of the sosoalled
savings institutions Of the land, because,
as rule, their depositors ara OF the
poorer classes who are less able to oon'
template tho loss OF their savings with
equanlmity than are people who have
other resources upon which TO draw IN
case Of rough weather among the banks
"Irho sair cared penny Ice " OF which
Burns wrote 80 touohingly gets very
close 10 the poor mans bosom, ana tho
violent parting from ii always produces
the keenest agony, and often wrecks
hopes founded upon the successful toll
OF lie time, No one can blame the
poor who sustain loss In this way, when
they exhibit feelings almost unconlrollN
able, There is ono feature connected
with banking M business, which has
been but little discussed but which
ought TO be pressed upon public alton
tion II Is this When wo apply to the
bank for loan, IL " always most care
ful 10 scrutiniae the security, and usuN
ally the matter Is secured in such way
~ TO bid defiance 10 even tho remote
chance ol los, Now, If dcpostors were
TO oxerc'se tho same caution, and when
they unjust their. money TO banks,
even for dry, demand complete
showing up of resources above labili-
ties, IL would only be acting
upon the rule observed by the
banks themselves, This would operate
to weed out the wild-cat enterprises
and tend TO reduce that business To n
solid and sure basis, Some prompt and
clearhcaded legislation on his point Is
very sadly needed, Wesimply suggest,
and leave it to other ADLER and moro eX'
porenced mon TO devise plan calcur
lated TO protect all interests coming in
contact with our banking system M II
IL now conducted. Bank failures, 30
far as the public are concerned are the
sudden strike Of the angry lightning
but in reality they arc known by those
conducting the enterprises long before
they occur. The bank has paper, due
on u certain day and il knows long be-
fore il it will be able to handle tina
paper when il does mature. II thcr,
is no probability that it will be able t'
do so by legitimate means, then 1t il
simply robbery to receive deposits
These deposits come in tho light OF
sacred trust, because on them are bull
the faith and good name of the deposit
tor They do not stand and should no
stand on the same footing with capita
embarked in the enterprise for the sak'
of the profit. They must be protected
by reserve in actual money in tn,
vault, This deposit ought not TO b'
subject to the Iiuctuation Of values il
real estate, personal property stock
or other kinds of commercial paper
, There is all the difference in the worl,
I between money entrusted to banks 10
Investment or speculation, and tina
deposited for the real or tancieC
security OF the funds. The ono il
expected to bring back its reward ii
the shape Of broad margins OF profit
and this chance is worth perhaps the
risks run by the depositor, Anyhow, i
he is good business man, he calculates
that chance closely. Funds simply de
posted for security or safety stand ii
an altogether different attitude, They
should be absolutely sacred and re-
turned whenever needed or demanded
and failure should not affect them
Heretofore bank failures have causcc
but li'tle distress in Texas, but we cal
not hope to escape entirely. We arc
more or less dependent upon the iinan'
cial condition outside the state. anC
every day adds but to that dependence
and we are to be called upon in flu
J ture to share and share alike with Other
\ states, Then let our people exercise
) their usual prudence when dealing
with the banks, as they do with indi'
} yiduals, and all will be well, No mar
has ever regretted the exercise OF sucl
precaution, but many have mourned a.
. do those without hope who have tailec
; to exercise it, Our sympathies ar,
, warmly with those who have beer
caught by the failure of the State Say
ings bank, of this city, yesterday.
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In an editorial on the subject of til,