Omaha daily bee., 1908-10-25

where one Democrat STANDS.
SIDNEY. Neb.. oct. 3.-Mr. c. NJ. Gruen-
Their. Secretary Bryan Volunteers Lincoln.
Neb. Ny dear sir: / am I'm receipt OF
your favor Of the 10th inst. advising me Of
the Fact that YOU were sending me. under
separate cover. several pictures Of the
democratic candidate for the office Of gov
ernor Of this state and requesting that l
see that these were posted in windows and
other conspicuous places. In the same
mail the pictures were received and upon
opening same | found a very good likeness
OF our distinguished friend, together with
a synopsis Of one Of his issues. beginning
with Il am in favor OF a guarantee of de-
posits law
1 have been a democrat all my life and
would gladly comply with your request
we're IL not for the fact that doing so
would be advocating an issue which ], as
well as any other person who has given
the subject any study. know to be wrong
and unsOund in principle. unconstitutional
in law and more productive Of wildcat
banking" than any law that has ever
been or ever can be enacted in any state
or in our nation.
l very much regret that Mr.. Shallen-
berger has been compelled to advocate this
as a campaign issue. for I have held him
IN nl6n ltkdIt ever since 1 llISl 3D." anu
heard him eight years ago, and do so at
this time. Except for the so-called panic
Of last year we might never have heard of
this as a campaign issue this year and
Mr.. Shallenberger would have had no more
loyal supporter than myself. It seems that
q new issue was needed, so this was put
in the platform OF the democratic party,
even after a bill proposing a guarantee
fund was voted down in the national house
Of representatives.. where three democrats
and fourteen republicans voted for 1t.
1t is unnecessary for me to call your
attention to the law which was passed by
the legislature Of New York in 1893, which
guaranteed bank notes and other debts "
and which worked very satisfactorily until
from 1S40 to 1912. when eleven out of the
ninety banks in the state failed, the first
three failures using up all the funds that
had been collected up to that time, com
polling the state to issue 81, ,O00 of its 6
per cent bonds to pay the losses occasioned
by the other failures, The remaining
banks chose which had had no losses)
were twenty years in repaylng to the state
the amount advanced by it to pay losses
which they, in fact, had nothing to do
with.
1t is unnecessary for me to dwell upon
the Oklahoma law, which everyone who
has looked It up has found to be a failure.
The bill. when introduced into the legis-
lature, should have been entitled: AN act
to suppress legitimate banking and to en-
courage = more extended propagation of
wildcats" This law was passed in two
days after It was introduced, many of
the members never even reading same or
giving it any study. Men who are no more
fitted for the handling Of any other per-
sons money are getting into me business.
offering inducements for deposits which
conservative bankers frown upon and are
being patroniaed by people who would not
let them have any OF their money were it
not for the guarantee law" .
Those who advocate the proposition
tell us that it is working very satisfac-
tory in Oklahoma, and then go on to
explain how much the banks of that
state have increased their deposits since
the law went into effect. 1t is a matter
of figures that the state banks of our
own state have increased more in per
cent in deposits since the law went into
effect in Oklahoma than the state banks
in that state, even though all the school
money which was owed to the state by
the national government (about 5000
O0O) was transferred to the banks operat-
ms AAhN NAlV budlolAA9 Jaw hAAhNA Glt
direction of the governor.
Most anyone who has thought anything
about the panic of 1907 will tell you that
a guaranty Of deposit law would not
have prevented that. We needed more
money, and, had we had more or had a
currency system that would have given us
more, we would never have had the panic.
A law guaranteeing bank deposits will not
prevent panics.
We are told that a guaranty of deposits
law would have prevented the panic of
1898. At that time. and for several years
after, the paramount issue was how TO get
anything to deposit. A guaranty OF de-
posts law will not promde prosperity.
We all know that a tax upon a strong
bank will not prevent the failure of weak
banks, and I consider this fact alone suf-
fciont to cause me to be against the issue.
| am a banker and believe I know about
what Is best for the business better than
any politician who has never been a banker.
The question Of a guaranty of deposits law
is a matter Of business with me, and l
trust that you will not consider this letter
a political argument or an argument for
or against any particular political party.
We are all either democrats or republic
cans for business reasons, more or less.
! aud since the democratic candidates are
pledged for an issue which ! know will be
a datriment to my business and to the
country as well. il Is my duty as a citizen
to vote against them, which I intend TO
| do when election day comes around.
I will hold the roll OF pictures subject
20 your order and am sending a copy OF
this letter to the chairman Of the demo-
cratic county central committee Of this
county with my resignation as secretary OF
that committee, and also one to the presi-
dent @. he Bryan club OF this city with
my resignation as secretary and treasurer
Of that organization. Very truly yours,
ROBERT A.. BARLOW. y