Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-12-30
BANKING STORY
LARGELY FICTION
State Auditor Calls Attention
toAnother Striking Illustra-
tionof Yellow journalism
GROSS INJUSTICE TO IOWA
GROSS INJUSTICE TO IOWA
Statistics on "Forty Bank Failures in
Iowa. During the Past Year, Were
Never Furnished by the State Audi
tor, Nor From His Office, as Was
cIaimed-other News.
Special to Times-Republican,

| Special to Times Republican,
Des Moines, Dec. 30.-state Audi
| tor Carroll calls attention to the fact
that another very good illustration Of
yellow Journalism was given here re-
Gently, but it was one Of those illustra-
tions which he does not enjoy, for as a
result, he has been deluged with cor
respondence embracing inquiries and
complaints. This was the story print
ed here In local paper which started
out with q startling assertion that
there had been forty bank failures in
Iowa" the past year, and whole lot
of suicides, and it was stated that
the information was from the records
of the banking department Of the state
auditors office. The story, purporttns
| to be official and with authority, was
Of course treated with seriousness and
was reprinted in various newspapers
Of the state, for, If true, it was a good
story. 1t was also telegraphed to east
ern and outside papers with various
papers have been editorializing on the
alleged terrible condition of affairs in
Iowa. Banking journals have been
printing the list of bank failures. The
calamity howlers seized upon the story
with avidity, and have made the most
Of 1t, for it Is Of their kind and to their
taste.
But fortunately the story was with
out the merit of truth. The statistics
were never furnished by the state aud
| itor, nor from his Office. The state
ments are not, true. It does a gross
injustice to Iowa. Millard Cox. In
charge OF the banking department for
1.-THE state, has been kept busy writing
/! letters to interested and alarmed per-
sons explaining that the story was
| largely fiction. Some time ago he
was approached by reporter with the
declaration that there had been forty
bank failures in Iowa in a year. He
+, denied it and asked one of the COM
mercial agencies for statement. The
state banking department has no rec
ord of private or national banks The
statement secured showed there were
thirty -four banks that had gone out
of business in Iowa in two years, not
forty failures in one year, and of the
list there were several that had merely
gone into involuntary liquidation or
had transferred the business. But the
list was secured, with the explanations,
and was printed as list of failures,
which it was not, and sent broadcast
all over the country And most Of what
was given in the story was on a par
with the Misrepresentation as to fig
ures.
An eastern financial journal, whose
editor refused to credit the story as
wired to New York, asked for a speci-
| fic statement and asked also as to the
cause of the failures. To this reply
was sent that they were largely due
to defalcation of bankers. While there
| is nothing to prove that bank exam
ination would have prevented the fail
ures of private banks, yet 1T has pre-
vented failure in many cases in state
banks. AS matter of fact II there
had been the same close following up
fof examinations with verification re-
ports in the past as in the past year
or two, there would have been fewer
failures among the banks organized
under state laws, as some of the fall
ures were due to defalcations long COW
cred up.
| A great many periodicals are receiv-
ed at the state institutions and the
state Of Iowa is liberal patron of
newspapers and magazines At this
season of the year the lists are made
| out and orders sent for the following
years subscriptions. Glenwood 1nsti-
tuition subscribes for periodicals cost
ing s66 a year, Davenport pays out
500 a year for reading. Clarinda gets
q. hist that costs $132 and Anamosa
pays out $277 Other institutions are
| in proportion.
Governor Cunrnins has been fmpor-
tuned to give some attention to the
discussion in regard to the amend
ments, discussion which has run
down to small end and is likely soon
to reappear. He has thus far declined
to enter the debate. There is no
court anywhere" he says, "that would
entertain the proposition, or at least
for very long In Wisconsin the cases
against the amendments were strong
| er than in Iowa, and vet the court
swept the objections all aside. think
the Mississippi case was decided wrong
but it was entirely different proposit-
| ion. No person need be at all alarmed
| over the effort to get the courts to
declare not adopted the Iowa amend
ments."
Judge Cole, former chief justice of
Iowa, has some pronounced opinions in
regard to the Iowa libel law. 1T has
always been very bad" he said the
other day, "but now nobody can tell
anything about it. The whole law
needs revising. The libel law and the
decisions are all out of date and as
matter of fact nobody has any protec-
ton from persons who feel aggrieved." ("
It is very probable that the city OF
Des Moines lost an opportunity to have