Mexico Missouri message., 1908-10-01

tax upon national banks and upon
SUCH state banks as may como In, In the
nature OF enforced insurance TO raise a
guaranty fund to pay the doposltors OF
any bank which fails"
And then he questions the right OF the
government TO enact such law, saving
How state banks can be Included In
such scheme under tho constitution IL
LETT IN the twilight zone of state rights
meaning and purpose OF the promises OF
the platform. II they come In under
such system. they must necessarily be
brought within the closest national con-
troll. and 30 they must really cease 20 be
state banks and become national banlss."
HIS sollcltude for the state bank viii
hardly Impress the country. for no II
served rights when he deals with other
subjects. When Congress Is In the con-
troll OF those who want to legislate for
the whole people rather than for the few.
II will not be difficult to frame a law
under which state banks can avail them
selves OF the advantages OF a federal
law guaranteeing the deposits of ma
lahoma TO frame n law which permitted
national banks to take advantage OF the
state guaranty system. Il will also be
easy to enact federal law which will
permit national banks to avail them
selves OF state guaranty systems until a
national system can be secured. Attor-
ney-Genernl Bonaparte's ruling. whether
II correctly lnterprets the law or not.
would not bring such CONSERVATION as Il
does II tho Republican candidate favored
law allowing national banks to take
lection OF depositors, but Mr.. Tafts hos
| Utility to all guaranty systems Is shown
in the objection which he offers:
The proposition II to tax the honest
and prudent banker 20 make up for the
dishonesty and imprudence OF others
No one can forsee the burden which.
under this 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.
speculative and dishonest men, who
S%aT a SS sSsS to sss $ y ,Ss
proposed insurance; as Ia It's present
shape, the proposal would remove all
safeguards against reoklessness In bank
Ing and the chief, and. In the end, prob
ably the only benefit would accrue TO the
speculator, who would be delighted to
enter the banking business when IL wns
that would accrue. while tho risk would
Woodworking fellow"
He even pictures dire disaster and de-
clarea that ''if the proposal were adopted
exactly as the Democratic platform sug-
gests, II would bring the whole banking
system OF the country down in ruin"
As an afterthought, he suggests that
voluntary system might be tolerated,
but as his objections 20 n compulsory
system apply just as we'll 20 voluntary
ali legislation which has FOR its object
the guaranty OF depositora.
As Mr. Thfts argument Ia that pre-
scented by the big banha which put their
own selfish interests above the welfare
of the depositors and the safety of the
community, IL Is worth while 10 answer
the several propositions which he ad-
vances.
Let us take the first sentence, TINT
the honest and prudent banker would
be taxed TO make up for the dishonesty
and imprudenee OF others" Is not this
Does not the honest and prudent banker.
under existing laws, suffer In order that
the depositor may be protected from the
dishonest and imprndent2 II we had no
banking laws at all, and banking was
done by private individuals, the honest
and prudent banker would save the
examinations Of his bank, ana he could
at times make interest on part OF the
money which he IL now required TO keep
In his vault as a rigid reserve. But be-
cause some bankers are not prudent.
these laws place a burden upon the good
as well as upon the bad, IL being difficult
TO distinguish the prudent banker from
fails.
In like manner II might be said that II
all people were careful about fire, fire
Insurance rates need not be as high as
they are, but the careful have 10 pay
higher rates than they should because
| some are not careful. Life insurance
sSSS !, are so nShe IT., tns9 would pe
body took care OF his health, and here.
too, the cautious are burdened because
some are careless OF their health. All
| insurance II open 70 the same objection
and yet insurance OF all forms Is grow
/ ing. and the insurance of depoaitors IA
growing In popularity more rapidly than
any other form OF insurance-and, may
add, Il yields the largest return on the
Investment.
Mr.. Taft complains that mo one can
Ioresee the burden which. under this
sound and conservative bankers OF the
| country by this obligation 20 make good
the losses caused by the reckless, spe1u-
the past 20 guido US, and We have rea-
| eon 70 believe that the loss win be less
l In the future than In the past. because
bic for each others deposits they ssO viii
I be sufficiently Interested In each other
20 faxor better regulations and greater
what has Mr.. raft done TO protect de-
pastors from reckiesHueas and spscuia-
tiohf While he refuses % protect depos.
itorH. he praises the Adrieh-v reeland
lobbins-. In declaring that the system
/ proposed by the Democrats would re.
move az nafeguards against recklessneas
norance Of the subject, for the plan dosu
not propose the removal OF any SAFE
guards. In fact, Il eontempiates stFictsF
i A~~-~H@S ~FA@~~~~A~AZ
He dscisFss that "the only bSnsns
would be delighted 10 enter the banking
business whom Il was certain that ne
could enjoy any profit that would accrue,
\ whYe the risk would have 70 be naeemed
l1y bis honest and hard-Worting fellows
I 'epe present banking law requires that q
4 ceftein amount of capital nhnil be invested
In the nliginen8, and that law would
still stand. To enter the banking buai.
ness, therefore, 4 man would either havE
10 have the capital himself or secure the
CONFIDENCE ~ men who had the capital
And this capital tc9elher with the 10
per cent liability would Be q guaranty
That the stockholders would not luten.
ticnaily select careless OFFICIALS. WHY
would 4 rnpeculnkorr be delighted "a
eater the banking buplne8sH under the
/ warranty 6Yulemy He - not relieved
/ lltvtd from criminal llahnily. flo would
bnye nothing % gain ~ caftlesgneae'
thing % gain hy lgalnerenct
The phlet Gauss 81 bank failures IA IN
Sc