The Mena weekly star., 1907-12-12
LACK OF CONFIDENCE.

ing the published reports of the closing of the National Bank of Com- merce at Kansas City that the ca- lamity to that big concern was wholly yunwarranted by the condition of the bank. It is quite evident that the failure was brought about who'll ly by a lack of confidence resulting from the circulation of mislead- ing and in some cases malicious reports. It is assuredly hard to conceive that a bank that could pay out in six weeks nearly 19 mil lion dollars to depositors from a total of B millions, and still have considerable sum in the vaults should be weak institution. There are probably few banks in the coun- try that could do proportionately as well.
 Lack of confidence!
 And what does that mean?
 In this case it simply meant that someone, perhaps a bitter and unre- lenting enemy of the Bank of Com merce or some of its officers took advantage of the financial unrest to start a damaging report. It did not take much. It never does. Let ever so small a shadow appear to threaten the average mans money and he gets scared in hurry. Money is said to be the greatest coward. It runs and hides at the merest note of alarm-lack of con- fidence and proceeds to tie up commerce, create panics and break banks. Knowing this, banks get scared almost quicker than anybody else. They make haste to run to cover. to strengthen themselves by collecting loans, refusing to make new ones. thus by their own actions bringing on and intensifying the very financial condition they most fear.
 But, through it all no one seems to fear the destruction or downfall of the government-the nation. Every piece of paper and every piece of metal, be it l00-cent gold, 30-cent silver, l5-cent nickel or 5-cent cop per if it bears the stamp of the government of the United States it passes among the people for face stamped value. There is no lack of confidence in the money that the government has approved because there is no lack of faith in the government.
 With this in view-and the conclu- sion is unquestionde-is is it not appar- ent that the best way to create con fidence in the banks of the country and stop all this frlght-this busi- ness destroying and panic creating phenomena is for the government to guarantee to every depcsitor in every bank under it's control that he can secure the return of his money when he may desire it? Never mind by what plan this be carried out. Let it be by an assessment of an amount deemed necessary against all the banks, or otherwise.
 It would not appear to require any more complicated methods than those employed in life or fire in- surance.
 With such a system in force there would be no such thing as a run" on bank. There would be no more danger of such an occurrence than that people should become panicky and try to dispose of all their silver money or paper money for fear it was not safe. There would be millions placed on deposit at banks and through them pass into circula- tion that is now hoarded, and none of it would be withdrawn by depositors except as needed in the regular business affairs of life.
 The banks would not only be freed from the danger of destruction caused by needless scares and false reports, but would be made more safe because each institution would have greater interest in the solvency of it's neighbor because oi it's liability in case of the failure of c badly managed concern.
 And, last, but surely not least, { system of guarantee of deposits by the government would put an enc to the suffering and blight ol hopes and plans and very lives of ths men and women and children whC So often lose their hard earned say ings through the corruption or mis management or misfortune ol institutions in which they hav' trusted their funds.
 It is hard to conceive how oul