The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-01-27
LETTER DIDN'T COME.
Governor Has Waited i'm Vain to Hear
From Mr.. Ridgley.

governor Hoch stated this morning
tnat he has not yet received the letter
alleged to have been written a week
ago by Comptroller Ridgley in which
Mr.. R1dgley is said to have declared
.naL national banks can not participate
IN the state guarantee deposit law.
me claim has been made that a
certain state senator is in possession OF
copy of Mr.. Ridgley's letter, and
would present it on the floor of the
senate and call upon Governor Hoch tc
confirm 1t.
i hope" said Governor Hoch this
morning, that the senator will do this.
l would like to have somebody send a
tracer after this letter, and see Just
What truth there was in those Wash
lngton dispatches received here week
ago. l have been anxiously awaiting the
receipt of Mr.. Ridgley's letter, but it
has not come.
1t certainly seems strange that if
Mr. Ridgley send a letter it should
nave b f "a ed to reach me I doubt
Rldgiey informed me that he would
make no decision until the formal ap-
pncatlon from some Oklahoma ma
t1onal bank to participate in the pro-
received: l can not believe that ne
would change his plans so completely
as indicated by the dispatches printed
as having been sent from Washing
Governor Hoch this morning re-
celved a strong letter from A. B. Net
Teton, declaring himself strongly in
favor of a guarantee dopsit law. Mr..
Nettleton was appointed assistant sec
rotary of the United States treasury in
| 1890, served through the Harrison ad-
ministration, and was acting secretary
OF the treasury from the death Of
Secretary Window, January "a, 1891,
! till March. 1892.
| After a in
| paper clippings enclosed in his letter.
Mr.. Nettleton says:
| l am firmly convinced that the
tide is rising in this matter which
and compel the adoption of this
| sane and necessary reform under
government control, both in the ma
ton and in the several states. 1 hope
| that there will be no failure and little
| hesitation on the part of the Kansas
| legislature to enact we'll considered
measure providing for the insurance
or guarantee of bank deposits.
| As you pertinently state in your
letter to Mr.. Chandler, this is not by
any means primarily matter for
| banks and bankers to determine. 1t
| is for the people, of whose money
the bankers are borrowers and custo-
dams, to determine what safeguards
shall be thrown around their proper
ty in the form Of bank deposits, and
| it is for the banks and bankers to
come promptly into line and assist in
digesting and framing the best prac-
ticable measure before they are run
| over by an aroused public. In. the
events Of the last ninety days, the
American people have, like Saul of
| Tarsus, seen a great light. By reason
of an anticipated panic on the part of
bankers, the banking system of the
country absolutely broke down, in
spite of the fact that the bank vaults
were we'll supplied with currency. II
| is easy to say that the banks are rap
| idly resuming their functions and that
| business is returning to normal lines
but the rugged fact is that already
the people have suffered losses total
| ling hundreds of millions of dollars
and these losses will be several times
multiplied during the coming months
| of. diminished business and enforced
| liquidation. 49,
/ It is not necessary to lay upon oul
bank managers blame for the course
which they have recently pursued In
refusing to honor the checks of de-
/ positors whose money they held
that is, for suspending payments
Very likely they thus prevented a ca.
tastrophe even more Widespread and
disastrous. The central fact is thai
the present banking system, of which
these bank managers are simply rep.
lresentativeS and agents, suddenly col.
l ldpS6Q ana dDO1cdC0U us functions.
With this amazing precedent estab-
| lished, with the same causes in force
and the same weakness existing, the
recent and present CONFUSION to sure
to recur whenever. in a period OF
stress, somebody ye1ls Fire, para
lyzes public confidence and starts g
lstampede. Deposit insurance, accom-
panied by an almost inappreciable ta1
on deposits, will completely stamp ou
this otherwise ever present peril.
| Yours truly,
| A B. NETTLETON.
A letter addressed to Governor
Hoch, but received by Bank Commits
sioner John @. Royce this morning
from Fit. Scott, Kan, contains wha
Mr. Royce says is one Of the stronges
presentations OF arguments in behal
of the guarantee deposit bill he ha
iyet seen. This letter was merely sign
| ed "Depositor-
7.5,7z- 7f-fsl *