, 1907-12-27
GROWING IN FAVOR.

The more the question of federal
guarantee Of national bank deposits Is
studied the more it appears to grow in
favor. Small bankers throughout the
nation appear to be united for tho
plan. A recent canvass of the bankers
of the state Of Nebraska. made by Sen
ator Burkett, d~iscloses the fact that a
great majority of the bankers Of thGs
state are of the opinion that the depos-
itors should be protected and that the
national banks should be such In more
than name. Editor Deming, in the wy
oming Tribune, says:
1.-The guaranteeing OF national bank
deposits by the federal government is
growing in popular favor among the
people, the press and the banks, and
had the agitation been started six
months ago, conditions might have
been ripe for the enactment of such a
law by the present session Of congress.
1t may not come this year, unless the
president gets behind 1t, but it will
come before many years.
oklahoma Is the first state to adopt
such a law with regard to state banks
and the experiment will be watched
with interest. OF course. 1t will take
longer to get the definite and satisfac-
tory results of such a law in a single
state under a state law. thar in all the
states under a federal statute. Discus
sing the same question, the Chicago
RecortrHerald says:
IF the Oklahoma bankers have to
dig down into their pockets to pay the
depositors OF some imprudent fellow
banker, they will either make a vigor-
Gus effort to secure the repeal Of the
law or else they will unite for self,pro-
lection and insist on such mutual con
troll of each others business as will
nip all threatening evils in the bud
THAT is the milk in the c%ocoanut
Let it be understood that all other
banks must help pay for the shortcom-
ings of any one which fails, and they
will not only see that all banks are
carefully and regularly examined; that
the inspection is not perfunctory. that
recommendations are needed and the
laws observed, but they will keep I'm
Gle Sam informed as to the character of
the men engaged in the banking bust
ness or applying to engage in it.
professional bank wreckers, like
Imboden and Hill OF Texas, Oklahoma
chase a string of banks on the hypothe-
Gated capital of one, by using each
succeeding institution to acquire the
next one. Since the subject has been
opened 1t is ascertained that there is
a successful mutual guarantee of as
set note issues among Canadian banks.
Comptroller Ridgely, in his annual
report, discusses the proposition of a
government guarantee Of deposits and
says 1t is worth serious consideration.
Life insurance, fire insurance and ma
rine insurance have been indicated by
the experience of a century and even
the banks in the American Bankers as
ISOLATION guarantee one another
against burglary. Why not carry the
matter a step further and secure by
mutual assessment Or taxation, all de-
positors against losses?
Nothing the banks of the United
States could do would SO strengthen
them with the people. and then the i'm
preston that prevails among the
masses that national banks are govern
ment banks, in so far as their safety is
concerned, would become SO, indeed
and in truth"
In another editorial on the same
question, the Tribune adds this to the
discussion:
During the recent money famine.
Senator Burkett of Nebraska under
took a poll of the bankers in that state
to ascertain their views on legislation
to prevent a recurrence of unsettled
financial conditions. He has already
received upwards of $50 replies, the
majority of which are from the smaller
and state banks. OF the total number
received, ISL Of the banks expressed
themselves as being in favor of a gov
eminent guarantee for deposits, and
only thirty-five were against it. Those
in favor Of a postal savings bank law
number twenty-three. while fifty-ive
are opposed to it. The opposition IL
based on the ground that postal "a
sings banks would hurt banks of small
capital and be a great aid to the large
national banks. Almost without excep-
ton the Nebraska bankers blame the
eastern banks, and especially the New
York institutions for causing the recent
furry, They also are practically unani-
nous in favoring the government regu.
lation and examination Of trust COM
panies. similar to the present super
vision exercised over national banks"
=
Best Eminent On Earth.
Henry D. Baldwin, superintendent of
city water works. Shullsburg, Wis
writes:
81 have tried manv kinds nj l;rymont