The Tucumcari news and Tucumcari times. [volume] (Tucumcari, N.M.) 1907-1921, 1908-09-12
Festus J Wade Calls IL a "Finan.
cial Force Bill"
Frnm the Chicago liner Oernn

is due IN this country every tour
years, It seems. Some ut us II.
member the nat money and the
"suhtreasury.' Most oi US have
vivid rccollcctlons Of sixteen to
one over "anti.tmprrialism'
we TAIL to become agitatcd that was
an academic issue. The govern.
ment ownership idea was prcma.
ture, and was withdrawn. Md
now we are having bank deposit
guaranty advanced with all OF the
enthusiasm born OF the vote.catch.
ing season and with all OF the tam.
liar, cheerful disregard tor practi.
cability and OF safe and sound
business principles,
Bank deposit guaranty he
longs IN the category with those
other political hercslvs. Ii 4, adj.
vocated hy the same class OF poll.
teal theorists. IL 4, wrong IA the
.ory. It would not work IN practice.
1t is the ncw side door to %patcrnal.
ism IN government, the latest ap.
proach To- socialism.
We have IN this country tour
kinds OF banking institutions, with
deposits divided about as follows:
Savings banks, $500, 900, 900;
trust companies, $500, 900, 900;
state and private banks, So, Soo, .
600, 600: national banks, $1,000, d.
600, 600.
", have developed these differ.
INT kinds OF banks 20 meet the var.
ned requirements OF different CLASSES
OF dcposltors. That the different
kinds are needed to do the business
OF the country -. evident from the
division OF deposits among them.
The application OF the bank
deposit guaranty means dlsrup-
ton financial revolution TO three
Ut the tour kinds Of banks. Trust
companies, savings banks and
state banks are organized under
state charters. How can Congress
extend a blanket guaranty over
these state institutions
The three great kinds ot financial
institutions operating under state
charters and state control hold near.
ly threr.iuurths OF the deposits OF
the country. In number OF dcpoSl.
tors and IN amounts OF invested
capital they tar surpass the national
banks. The platform OF Mr.. Bry.
an declares that national banks
shall be- required to establish a
guaranty fund Tor the payment OF
depOsitor, OF any lnSolvcnt bank
under an equitable system which
shall hc available IN all banking
Institution, wishing TO use 1t. ~
That /, % say. on paper, and can
be- talked about in ]gllttcrinG gcn-r-
a%litleS. In all OF my reading and
thinking a Glimmcr OF the 'rquIt.
able system ha, not Vet develop.
ed.
The deposits OF every national
bank are now protected hy the
double liability on all stockholders.
To add an additional tax would be-
- burden on the national banker.
1t would not prevent panics u les
sen the tear OF dcpoSitor, IN time
OF financial disturbances.
II the legislation contemplated
by this bank deposit guaranty.
ISM wcr, enacted II would demand
entire revision Of the national bank.
INK system. Prohibition against
lOanlng money on real estate, heavy
cash reserves, prohibition against
purchases OF bond, other than gov.
eminent would hav" to bc changed
20 meet tins new theory IT banking.
Ihi, cOl..d not be- done without IT,
construction Of our banking vs..
tenn, and at,,ndan, disturbance.
\ 'hnancia, force hrIl. Is what
the bank deposit guaranty
scheme should be- called. Its effect
would be- 10 take from the states
III, present banking systems and
regulations; to 'iUrcc every say.
ing, hank, ,tas bank and trust
company into thu national banking
system.
In possibilities tor evil the bank
deposit guaranty IN zoos Is as
dangerOu, a. sixteen 70 one was
in $500.