The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1908-12-18
STUDENTS IN DEBATE
Two Mems Societies at the University
Discussed Question iii Debate
Saturday Night.

Saturday Night.
In the college chapel Saturday
evening the first college inter-socie-
ty debate was held when the Kappas
and Daedalians debated upon the
question: Resolved That the gov
eminent should guarantee the depos-|
its OF national banks by a system
similar to that in Oklahoma" the
proposition being affirmed by the
kappas and denied by the Daedal-
ians. The whole contest was mark
ed by AN intensity of enthusiasm
characteristic of close rivalry be-
tween the Two societies.
As q sort OF preliminary TO the
debate the Daedalians held a mocE
inquest over the dead body OF theil
rivals in which the supposed cause
OF death We're revealed to the aud
fence through a post mortem e%XaInin-
alton. Professor NanBenthuysen
was the presiding officer and gave
entire satisfaction by the impartial
name he handled the speakers.
Willard Kennedy the first speaker
of the affirmative opened the debate
by a definition of the meaning and
scope of the question and just What
the affirmative intended to prove.
AS to the need of such a system he
cited a long list of bank failures
with the results they have wrought
upon the country. The reports of
government officials were quoted to
show the amount of money that is
kept in hiding because of the lack
of a safe place to deposit it. To Off
set these evils and render them i'm
possible the guarantee system of
bank deposits was offered as being
safe, ane and effective.
The first speaker on the negative,
Walter Grill, opened the constructive
argument for his side by an analysis
OF the Oklahoma system of guarantee
! ing deposits. He insisted that amy
plan proposed by the affirmative be
similar in form as Well as in princi-
| pie to the Oklahoma plan. Summing
phasized that though IS more banks
had been started in the state since
the law went into operation there
had been a decrease in capital of less
than one-half. The general sense
of the argument was hat the law
was wrong in form and wrong in
principle.
Martin Shale followed up the
affirmative argument by showing the
ample sufticiency of a tax of one
tenth of II per cent on daily depos-
it's to provide for all losses OCCASION
ed by bank failures. By this plan
all depositors could be sure of get
ting their money back and the CON
fidence of the people in banks would
be complete. The boarding of funds
by bankers would be prevented and
panics like the last one be an i'm
possibility. The conclusion of his
argument was that the guarantee
system would be a full and complete
remedy for present abuses.
The argument for the negative
was taken up by Ira Schiller. He
first demonstrated that old and es-
tablished banks were Under the same
obligations to the fund created by
the proposed system as were the new
1t would thus be. possible for a
strong bank to be called upon in a
panic to contribute a second time tic
the tax because of the failure of the
weak banks. To refute the claim
that the guarantee system would in
vie confidence on the part of the
dopositcr he referred to the associat.
ed banks in England and Wales
which were similar and where
they had failed and aroused the dis.
trust of the people. By this plar
careful and conservative bankers
are put upon the same plane as the
careless mes. AS to the conclusion
of his argument and the needless.
ness of a change, Mr.. Schuler quot.
GU u6ulCo " t.AC S1lSCI llldl III III
last ten years there had been a loss
to the depositors of only l-50O o.
one per cent. To cover the small loss
why should the bank be taxed on ar
equal basis?
John Chapman closed the argu.
ment for the Affirmative. The last
year of financial history has demon.
strated the need of some adequate
remedy and the question is n O.
depositors not of bankers. National
banks are required to give bonds to
secure the issue of national bank
notes and why not extend the same
safeguards to the depositors that the
government requires. The deposi
tors in national banks have a par