The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1908-10-09

genprafry. IRVING De~n gwen ~Iov puO
LEFTY and therefore most likely to at.
tract attention as an illustration.
However. there is scarcely q local.
ty wherein bankers In late years have
not gone under topping banks and up
held them by guaranteeing deposits
wholly or in part. in order to help in
the quelliug Of popular DISTRICT and
the undermining Of confidence in all
banking institutions.
No Delay for Depositors.
1t is quite apparent that under
guarantee Of deposits there would be
no alteration OF conditions affecting
banks now, 80 far as concerns espion.
age maintained by one over another.
The important difference, however.
would be that depositors would not no
subject to the annoying. often disas-
trous. delays in getting their money
which now they experience when
banks fail.
But that fewer failures would oc-
cur surely would be one OF the re-
suits Of such a law. Everyone knows
that many runs are precpitated on
banks which are absolutely sound
Many a man. faithful. safe. conserva'
tive. conscientious in caring for the
money Of his depositors. has suffered
runs caused by some rumor started
through malice. Many an honest
banker has had his heart broken ~
senseless runs. and has groaned III
spirit as he realized that gross inJus-
tlce has been done az reward Tor ear
nest and able keeping Of the trust 70
posed in him by his depositors-
The Barring Failure.
When a dozen years ago. Barring
Brothers. Of London. suspended. 1t was
due to that very espionage by other
bankers to which Mr.. Gage refers.
The Earrings had embarked in many
South American enterprises, some OF
which were manifestly unsafe.
The governors Of the Bank OF Eng
land sensing the danger. refused 10
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 rriti-
cizcd in any country, although II mas
bcen discussed ever since the world
over.
Modern business IL conducted on the
basis for the issuance Of bank notes
tie actual money passes from mana 10
hand.
Modern System Of Credits.
You 20 to your bank with a bundle
az checks and drafts and deposit them
to YOUR credit. Against that account
thus opened, you draw checks. 1hey
mass into the world Of business, are
accented at face value. and clrru-
late virtually as does gold. silver anu
currency. II you pay your DIS !"
checks. often you pass through "'ekS
NJ a time when you have only trihe
~ loose change in your porket II"
.trcet car fare and the small Things
vou need from day to day costing 100
little to bother to draw cheek.
"A check cancelled is voucher'
bo. hecome a maxim in the business
world.
Comniications of the System.
This complexities business ana for'e'
all hanks TO associate themselves J"
clearing houses, and probably the pup
lie would he amazed were 'he! "
know at times how sharply the clear
;nv house committee looks into me'h'
DDS employed by its members.
In the panic that began last October
funds were carried from bank 10 p""A,
taken ostentatiously through the IRON.
doors. that depositors might know 'hat
other banks believed in the sonnohesS
=, the institution which lad bee" -