Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1908-10-08

BANKS nSw. % far a concerns sspion.
80 maintained by one over anseher,
h important AiGsrsnes. However
would Do nat asposaanr. wsuaa nes b
subject 10 ne aansying. often diam.
sreuA ds1ays In sseting Asir money
vAicA nSw tAsy experience wAsa
banks fan
nse mat Sswos failures wuuiA o.
e1r surely wsuid be one a ne r.
e1sO q such q law. Everyens knows
mat many runs are precpitated on
banks whicA are absolutely SOMA.
Many q man. faithful safe. conserve.
I'VE. conscientious In caring for ths
meney q his aepositoss. has suffered
runs caused b. some runner vtartsd
through mal1cA Many IN homes
banker has had hin heart BROKEN by
seneelsss runa ana has groaned n
ep1Flt ~ 10 realised 1hak ereu in1un'
t1ce he's been done 6 reward scr ear.
nest and sE1e keeping - the txuse r.,
posed In him BY his depositsr2
Ths Barring Failure
wnen q dozen years AFRO. BARNS
BrotherA q London. suspended, Il was
due 10 that very espionage By ether
bankers % which Mr.. Gage refers.
The Barings had embarked In many
South American enterprises. some Of
which were man1festly unsafe.
The governors q the Bank Of Eng
land Qanmtn1 49, - -
accept securities backed By them as
basis for the issuance Of bank notes
under the custom Of that country; that
action never has been adversely exitk
cised In any country. although IL has
been discussed ever since TIE wwta
over.
Modern business 10 conducted on the
basis fer the issuance az baAk nsees
de actual money passes from hand %
hand.
Modern 0ysesm OF Credits.
You 20 60 your bank with q bundie
81 checks and drafss and deposit them
% y0ur sRoA1G ASalnst tAas aosount
thus epsasA 20 araw chsckA TAsy
pass inAe the world az business, are
accepted at face value. and circu-
lass vArsuAlJ a does gold. silver and
currency. II y0s pay your bills In
ehecAA oftsn you pass through weeks
at Q time whsa yeu have only q tr1He
Of leoss shangs In your pocket 70.
greet or eAse ana the small things
goa need from day b 6Ay costing To
htkie b bother % draw O check.
"a check eanceiled IN 0 vosachsR."
world.
Complications OF the sysesm.
This complieates bsBiness ana fsrcss
all banks % associate themselves IN
clearing hsessa and probably the pub-
he would 30 amsssd were thsy %
know at times h0w sharply he clean
Ing house ecmzu1ttue hooks into meta
DDS employed BY - msmbePa-
In the panic nat eeSAn last OessoeH,
funds wsss carried from bank % hank,
taken osen@tiousU tArough TN 'front.'
doors. that aepositors mtsAt know that
other banks bnlisssd In u soandnsss
Of the inae3tut3on which had been a.
tackled By q run, and performed a
most every Essential Of the guarantees
system.
whyf
Simply hecauns ne modern business
systsm u - complicated and % little
actual moaay passes current that each
bank must know that he others are
properly safeguarding themselves and
aiso thar hey are permitting the car
rytng of accounts by depositsgs whose
paper may always DO depended On as
worth fass value.
Beneath the Surface.
So beneath the surfaes, one could
witness the clearing house associa-
tioos examining collateral, securities
ana assseA ana often serving neties
on O gwen bank that the aasociat5 ton
win require some change In methods
on penalty Of refusal longer 10 clear
Tor that bank.
Banks Out Of the Association.
How about banks not I'm the associa-
toni Many perfectly sound banks are
not directly n the clearing house.
They clear through another bank
which does belong.
Precisely the same rule apples b
them, for, when need arises, the asso-
citation serves notice On the member
bank which clears for the non-asso-
citation bank as TO what will have 20
be done: ana II 10 done promptly. too.
I'm every instance.
Bank.Book should BE worth Fsos.
The esssaos 81 the guarantee plan 10
that o bank book should be worth In
face aiwaza- Az entry In q pass boob
should not constitute the Assumption
q q risk ~ me deposition and the CIV
Ing Of Wis latitude to the banker.
Such entry should be recognized %
juGt as a5eual IN asset nm q bank ncts.
Also. r0epes arrangements must 30
made foR ne continued espionage a
banks bg scbsr banks.
Lastly, and quite as important,
banking lawn must DO enforced: ovee-
esfsneatisn must - stopped: isaaiAs
a f<znds IN naaouaf banks On obvisus-
IL sDeoula11vs schemes must cease:
and eehee ss1erms must be wrought %
invest ne banning system 81 chs
country witA 0at compists con6lsass
wAich n Induced wouA pot Q sesD
o. al neSvouDeas By depositsss.
esssssssesssssssssssssssss
NO scAREs THIS YEAR. 3