Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1908-09-09

able to ali state banking institutions
| wishing to use it,
noma and the results have been very
| satisfactory. The average annual loss to
! deposltors in national banks during the
last 40 years has been less than one-tenth
OF one per cent. of the deposits, and the
loss to the fund in Oklahoma under bet
Ter regulations and restrictions has been
absolutely nothing during the six months
! In which the law has been in operation.
The Republican platform is silent on
GATE not only does not advocate COM
| pulsory system, but specifically and en-
phatically opposes it; He says:
| The Democratic platform recommends
| tax upon national banks and upon
such state banks may come in in the
nature of enforced insurance to raise
| any bank which falls
| And then he questions the right of the
| government to enact such a law, say
How state banks can be included in
such scheme under the constitution is
| left in the twilight zone of state rights
meaning and purpose of the promises of
the, platform. If they come in under
be brought within the closest national
control, and SO they must really cease to
pc state banks and become national
His solicitude for the state bank will
hardly impress the country, for he is
quite Indifferent to states and their re-
Su1Jects; When congress is in the con-
troll OF those who want to legislate for
the whole people rather than for the few,
IT Will not be difficult to frame a law
under which state banks can avail them
selves of the advantages of q federal law
guaranteeing the deposits of national
banks, gust as 1t was easy in Oklahoma
10 frame law which permitted national
banks to take advantage of the state
guaranty a system, 1t will also be easy
nauonal banks to avail themselves of
state guaranty systems until a national
system can be secured Atty.-Gen. Bona
parte ruling, whether it correctly in
tefpretS the law or not, would not bring
Slch. CONSERVATION as it does if the Re-
Ing national banks to take advantage of
state systems for the protection of de-
posters, but Mr. Taft's hostility to all
guaranty systems is shown in the OBJ
lection which he offers:
Ihe proposition is to tax the honest
ana ana prudent banker to make up for the
one can foreSee the burden which under
TINS system would be imposed upon the
SOUND and conservative bankers of the
country by this obligation to make good
the losses caused by the reckless, spec
ulatlNe and dishonest men who would
De enabled to secure deposits under such
insurance; as in it's present shape the
proposal would remove. all safeguards
3galnst recklessness in banking, and the
chlel. and in the end, probably the only
benefit would accrue to the Spectator,
who would be delighted to enter the
banking business when it was certain
Iilat ne could enjoy any profit that would
accrue, while the risk would have to be
assumed by his honest and hard working
He even pictures dire disaster and de-
clares that ii. the proposal were adopt
ed exactly as the Democratic platform
SUGGESTS, IL would bring the whole bank
ny system or the country down in ruin"
AS an afterthought he suggests that a
Voluntary system might be tolerated. but
tenn apply just as well to Voluntary sys-
tenn we may fairly count him against
all legislation which has for it's object
the guaranty of depositors
The chief cause of bank failures is the
MAKING OF excessive loans to directors or
officials of the bank. This is the fruitful
sible to secure legislation protecting
oa dth IRON their own officials and di-
rectors Why? Because there has been
become liable for the deposits of each,
the stockholders will insist upon the en-
actment of law making it criminal
than the prescribed amount to ole in
divdual. At present we have a law pro-
tenth of the capital and surplus to one
person or corporation, but the law is
only directory. Of course, the comptrol-
Ter can suspend a bank if it violates the
law. but. the law is not enforced be-
cause the enforcement of such a law
would throw the punishment upon inno-
nifty, since the suspension of a bank in
hlcts great loss upon stockholders and
disturbs the business of the city or town
in which the bank is located.
The law should make il a criminal Of
Tense to loan more than the prescribed
amount to one person and we would
probably be able to secure the passage of
a law prohibiting market population by
bank officials.
recently failed in Oklahoma; within 48
minutes after the notice of suspension,
the officer in charge had authority to pay
all depositors, and then the banking
board proceeded to collect the assets of
the bank and to prosecute the officials
criminaIly When the business was
luton thanking the state board for IT'S
proFTpt action. the action of the board
as we'll as to the depositors and to the
public generally.
An object is sometimes made. to the
guaranty law that new bank would
start up across the street.. and being
able to promise its depositors absolute
security through the guaranty law. could
draw the deposits away from conserva-
lively managed banks, by offering high
rate of interest than the latter could
pay This objection is urged as # it
see how easily it can be met. Since the
law makes all of the banks liable for the
obligations of each bank, the law should
prohibit any abuse of this security by
any bank. and in Oklahoma the banking
board has already fixed the rate Of inter-
cording to- the rules of the banking board,
no bank is permitted to pay more than
three per cent on short time deposits
or more than four per cent. on time de-
posts running for six months or mere
Why has the Republican party been
so quick TO respond to the demands OF
Wall street and so slow to yield to- the
demands Of the masses? There are two
reasons: First. the Republican party has
allowed itself to become the servant of
the favor-seeking corporations. and. SEC
ond, too many Republican leaders look
at questions from the aristocratic stand
point the standpoint of the mary. They
iegislate upon the theory that society
is suspended from the top. and they fail,
therefore, to understand either the evils
that affiict the body polite. or the reme-
dies that are needed. The Democratic
party, viewing questions from the stand
point of the whole people. easily sees
that which Republican leaders do not
discover and its remedies begin with the
relief of the average man. This IS the
secret If secret there be. of the pri-
macy of our party in matters of reform
When Solomon was invited to choose
what he would. he asked for an under
hat he mic f7aCcarT1