The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-01-30
THEY LOCK HORNS.
CONTINUED from Page one.l


eral courts for interfering with the
execution of the laws Of the state of
Nebraska, and said that the country
has developed SO much in education
and intelligence that the arbitrary
powers of the federal judges. if ever
necessary, are no longer to be toll
Grated.
Then Governor Sheldon turned to
the banking situation, and said that
in 1896 IL per cent of the deposits of
Nebraska banks were tied up in the
hands of receivers. 1T is proposed"
he said, ito have guarantee deposit
fund of one per cent. How long would
that one per cent last in such a con-
dition as existed in 1896?
81 am inclined to favor the guar
antee deposit plan as a temporary
measure to restore confidence: AS
look at it, it is like the case of a man
in misery. The doctor comes along
and gives the man dose of morphine.
The man imme diately sits up and says
he's all right, when a matter of fact
the pain is merely deadened. Our
financial system is not adapted to the
needs of the country. We ought to
have some sort of a system so sound
that it would make no difference to US
Heinz got into a gambling game and
both went busted
Sheldon's Financial Scheme.
Then Governor Sheldon said he
wanted to make a suggestion for a
reorganization of the currency. He
said he had never made the sugges-
ton before, and might never make it
again. and might be sorry that he ever
made it. He said he would do away
with United States treasury notes and
make gold coin the basis of the
financial scheme. "But there isn't
enough gold to do the business of the
country" he said. 1.-The currency
1ert n 70 f1a
crops without making a panic. I
would stop the redepositing of funds
by banks. I would stop all banks
from issuing exchange. I would
create a new department to be known
as the United States exchange, and
I would require banks to deposit all
their surplus money with that de-
partment. This department would be
the clearing house for the entire coun-
try. I would have that department
issue two kinds of currency. I would
have a branch of the department in
every town in the country where the
business demands it. Then banks
could do business through this branch,
depositing their sight drafts and TAX
ing out currency, or leaving a credit
on deposit. I would require each
branch to keep on hand sufficient gold
to redeem all outstanding exchange
and the government could get the
gold because foreign countries could
be required to pay trade balances in
gold, and we always have trade bal
ance in our favor"
This was substantially Governor
Sheldon's scheme. It may contain in
| accuracies as here stated, but it was
the best this reporter could do for
man who didn't write his speech.
Hoch Will Stand Pat.
| AS soon as Governor Sheldon finished
speaking, Governor Hoch was called
| for, and he responded with one of his
| customary eloquent addresses. Cover
nor Hoch is at his best in a banquet
! table speech of an extemporaneous ma
| ture. He toasted the Republican party;
| said it was a tolerant party and didn't
| object to it's members thinking about
| as they pleased Then he proceeded to
| tell the club members that he was go
ing to do some Independent thinking
| about the bank deposit guarantee law.
| He said:
Gentlemen, I am on the home stretch.
| Before another banquet is held 1 will
| have retired from the great office with
| which you have honored me. I want to
| take this occasion to remind you that
when I was nominated and elected 1
! promised that I would be an impartial
governor 1 have kept that promise. I
| have gone through the bitterest cam
paign any man ever went through and
| asked not favor Of any appointee of
mine.
81 am proud tonight gentlemen. and
! believe justly SO. Every one Of the
] party promises made In the two plat
forms on which I have stood were full
filed today when the house passed the
primary election bill. 1 am proud of it.
| I believe that a party promise is just
as binding as a business contract.
Probably I should say nothing about
| the guaranty deposit proposition to-
night But am one of those RepubH-
| cans who say what they please. The
guaranty deposit law is not a bankers
proposition. 1t is a depositors' PROPOSE
| ton And I want to say that no great
| reform ever originated where it was
not needed. The saloon would never
| be abolished IL we waited for the saloon
keeper to abolish it. Railroad rate dis
| elimination would never be abolished
! If we waited for the railroad attorneys
1 to abolish them, and believe that II
| we waited for the good bankers to do
it. the absurdities and atrocities of the
| present banking laws of Kansas would
| never be remed1ed.
| THE state of Kansas requires banks
| to put UP one dollar of gilt edged Sc
| curity for every dollar of state money
which they handle. I can't see the
| philosophy of a great state, or a coun-
| ty requiring security which 1t denies to
| its humblest citizen. Whether this leg
| islature passes a bank deposit guaran-
/ tee law or not makes no difference with
nv Repu blicanism, but this fight won't
| be over. The people of the state and
nation are going to have a guarantee
law. We will simply project it into the
campaign. 1t will be discussed in every
! school house in the state. I fear it will
| not always be sane and conservatively
discussed, and I fear the discussion will
not always be to the best interests of
the state. I am pleading for the bank
ers now as we'll as the state when 1
plead for an enactment of a guarantee
deposit law.
perhaps should not have said some
of the things I have. I didn't intend to.
But notwithstanding all I have said I
am Republican. And no matter what
| action is taken on this or any other
| measure when he leaves the governor s
chair Ed Hoch will be found on the
stump in every campaign speaking for