The citizen. (Honesdale, Pa.) 1908-1914, 1908-10-30

last week, celled forth commendakton
On bis WordA tEDm President Reese
ttit, who Immediately wrote letter
supplemeptinS the remarks Of the
Junior senator from this state.
Senator Knox in discussing the
BSyanito scheme to guarantee bank
deposits. said among other things:
What are bank deposits? They are
sums OF money that the depcsito-
lends to his banker and which his
banker agrees to repay to him on de-
mand unless there Is some contract
for notice. There is not particle Of
difference in law between a deposit
with q banker and loan to an indi.
vidual. OF course. II is claimed that
there is q difference. and I was Be-
verely criticised In some sections for
disclosing this view In the senate last
winter, but this criticism was politics.
Some editors and orators say the peo-
pies deposits belong to the people be.
cause that sounds well.
"The law. however, says they are
loans by the people to the bankers
and create the relation Of debtor and
creditor between the bank and the
deposition. and. It is upon this theory
that the affairs Of insolvent banks are
settled. No man can walk into q sus.
pended bank and lay bis hand on a
note and say. that is mine. deposited
II. All he can do is to present his
claim for his deposit to the receiver
and he will get his pro rata OF the
assets with other creditors of his class.
II this indisputable truth we're more
generally remembered. IL might make
people a little more careful in select
ing the bank to which they loan their
money.
Nov It is proposed that this pri-
vate contract between banker A and
depositor B shall be guaranteed by
others who had no hand In making II.
no voice in controlling the use Of the
money, and no responsibility for or
check upon the dishonesty or incom.
potency which caused its loss.
Question Of Everybedy's Debts.
Upon what basis Of sense or NOR.
does such a proposition rest; and why
II bankers are compelled by law to
pay other bankers debts should we
stop there and not require all other
classes Of business to guarantee the
debts Of the members Of their class?
"Is there anything particularly sa-
cred about the surplus money a man
accumulates and deposits with his
banker? It stands upon no higher
ground than the claim Of the mill
worker who has given his labor. his
ell. not his surplus to the mill owner
who fails to pay him. and yet hear
Of no suggestion to compe' the mill
owners to guarantee each others pay
rolls.
Docs It stand upon any higher
ground than tho debt due to the widow
and the orphan by an insolvent in
surance company to which for years
annual premiums have been paid
pinched out of an all too slender in
come by self-denial and sacrifice to
provide against inevitable lossi Yet
l have heard Of no proposition to make
insurance companies guarantee each
others policies"
A Tribute to Penrose.
In his peroration. Senator Knox
said:
Il conclude as began by urging
you to fully consider the import Of
what you are about to do. The issues
of this campaign present a great op-
portunity for the people Of Pennsyl-
vania to give fresh proof Of their pa
triotism. intelligence and loyalty to
the great party Of Lincoln. Grant, Nc.
Kinley. Roosevelt and Taft. Locally.
let US indorse the splendid admins
tration Of Governor Stuart. return to
congress- the party's nominees and
elect a legislature that will keep In
the senate my modest colleague who.
manfully ignoring unjust criticism. has
by his arduous. useful and devoted
service to the nation and the state.
won for himself the hearty goodwill.
admiration and respect of right think
ing men,"