Griggs courier. (Cooperstown, Griggs Co., Dak. [N.D.]) 1885-1902, 1897-02-05

men in that section of the state. An
ordinary cellar is under the farm
house, and the officers were not long
in finding that a door opened from
that to large cellar adjoining. In
this a complete bre wing plant was
found. and considerable of the manu-
factured beer was also in evidence.
Government Gu ,ranty of De-
posits.
The recent bank failures have called
forth many proposed hcanges in our
banking laws and the system gener-
ally. Those best Informed seem to
think we need not look for any entire-
ly new system of banking and curren-
cy to be adopted by congress in the
near future; that the best to be expect
ed is amendments of the present laws.
looking to their Improvement. It is
probable that Comptroller Ec&els real
lied this when he advised amendments
to our present national banking laws.
l have long been an advocate of . ma
tional law making the government
guarantee depositors in national
banks against loss. I should much
like to see q discussion of this ques-
ton by the papers or anyone else.
| have never heard objections to this
idea presented. except that the gov
ernment should get out of the banking
business instead of getting further in.
This is no answer ut all. 1 hardly
think there are any who desire the
government to surrender absolutely
its control and supervision of nation
al banks to private corporations. and
as long as it retains any interest or
supervision it should aim to give the
people the very best possible service.
L would mention some OF the ad-
vantages of the government guarantee
ing deposits, as:
first-A run upon Il bank would be
unknown, because useless, and so
money would not be taken out of cir
culation when it was most needed.
Second-Millions of dollars now in
safety deposit vaults and hiding
places would at once be released and
deposited in banks and SO get into
circulation.
Third-The money would not seek
the financial centers and large cities
as it does now. A national bank in
the little town in which [ live, of 700
Inhabitants, would be just as safe as
the heaviest capitalized bank in the
country. 1t is safe to say that there
are from fifty to one hundred thou
sand dollars belonging to people in
this county deposited outside of the
county and state that would under a
government guarantee be kept at home
where it is most needed.
Fourth-There would be more strict
and better examinations. The gov
ernment being responsible, it would
hold it's public examiners to q stricter
accountability. A violation of the
banking laws would then be looked
upon as the violation of the postal
laws are now, and if as rigidly en-
forced, would result in the fifth advan-
tage.
Fifth-The failure of a national
bank would be almost unknown and
could only result from gross mis-
management.
Sixth-When bank did fail it
would result in absolutely no inter-
ruption or disturbance in the business
of the community. Depositors would
be paid in full as soon as their claims
were proven. Knowing this, there
would be no excitement, and very little
interest in the failure outside of the
officials of the bank.
There are many other advantages
that could be mentioned which will
probably be brought out by fuller
discussion of the proposition. There
is one general advantage that is prob
ably greater than all the rest, that
must necessarily follow: The loss to
depositors by the recent bank failures
throughout the west have been great;
many lost, possibly, their all, the saw
ings of lifetime, even though it
might have been only few hundred
or a few thousand dollars. but great
as this loss may have been, it is as
nothing compared with the general
loss to business and commercial con-
fdence. Money will be withdrawn or
kept in hiding, business enterprises
will be abandoned, and it will be
many months before business will re-
gain it's feet. This loss is so general
that it is not SO keenly felt, but it
amounts to many millions more than
the loss to depositors.
I would much like to see a general
discussion Of this question. The
proposition was, believe, once be-
fore cOn0reSS IT. was one of t1,t, do