Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-06-13
PRIVATE BANKS.
BY D. w. Norris, of Grinne'I.

| feed cattle at q loss, to speculate on
the board of trade, and the men who
were lending him the money knew all
these things, yet they kept right ON
lending to him. | must confess l lind
it extremely difficult to work up prop
err sympathy for this class of lenders
especially when l learn that they were
promised 5, 6, and even per cent
when they we'll knew that no bank in
Iowa could afford to pay over pei
cent. When the people of this state
get onto the fact that when they put
money into a private bank they are
simply lending that particular banker
money without security, private bank
ing will decline.
The Sloans of Maquoketa, are an
other illustration of this vicious and
reckless business. Father and son were
both high livers and good spenders.
They started with nothing but their sal
aries, and as they fixed them themselves
to be paid out Of other peoples money.
they were quite liberal. one OF then
spent $4,000 year, and yet the 1ool-
ish people around Maquoketa lent them
without security, $275.ooo.
To REQUIRE every banker in Iowa 10
come under the state law or quit IS no
hardship. The man who objects TO
this is doing a business that won't
bear examination. This is just as Ger
tain as night follows day. To say that
national and state control does not
protect is silly. The father who
watches his boys and girls and knows
where they are at night may have a
son or daughter go wrong but MS
chances are hundred to one to the
father who doesn't do any Watching.
Auditor CARROTS statement that he
has never found a bank in trouble
where the examining committee did
it's duty, may be true, but 1T conveys a
wrong impression. A bank may get
into trouble where the examining COM
mlttee does it's duty, but it is not at
all likely, and very seldom happens.
The examining committee cannot pre-
vent the populations of cashier, they
cannot always detect false entries, but
if they are competent men, and do
their duty they can, and will, see that
the paper is genuine; that excessive
loans are not made; that the borrow
ers are responsible; that the over
drafts are kept down; that the 1or-
rowers are neither adventures nor
strangers; that the cashier does not
own Short Horn herds; that he does
not run fancy dairy farm; that he
does not dabble in mining stocks, nor
gamble, nor drink, or spend $4,000 a
year when his salary is only $4,000.
ALI these things they can know. Is
anyone fool enough to say that these
things are no protection? 1t is not
difficult to understand why 1t is that
out of nineteen failures last year
fourteen were private banks.
If you are doing business with a pri-
vate banker ask him il he will urge his
senator or representative to support
bill to bring all bankers under the
supervision of the law. If he says yes,
see that he does it. If he says no, re-
this article is not meant as any refec-
ton on private bankers but only on
those who place their own selfish in
terests against the interests Of the
public. Many upright honest and
capable men are engaged in private
banking. The business was profitable
and lawful and they entered it. But
comes, the upright, honest and cap
able private banker will not follow the
lead of men the limit of whose vision
is S. He will welcome legislation
that will place him in a position to re-
ceiye the same public confidence given
to national state and savings hanks