New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1908-09-30
BANK DkPo6iT9.
Mortified News. Rep.1


In view of the uniformed state Of
public opinion, of the wide differences
of view that prevail and in the alb
sence of any authoritative expression
on the subject the right to say moth
ing of the policy of those who are
usually looked on to voice the opinion
of the Republican party to commit the
party on the question Of a guarantee
of bank deposits may be questioned.
Every one, of course, has a right to-
his own opinion and to give any pub
licity to it he pleases. It is unfair and
altogether unWarranted, however, to
assume that any one opposing such
guarantee speaks for the Republican
party When the occasion arrives the
party will speak for itself. Until it
does it must not be assumed that the
Republican party is opposed to some
form of insurance of bank deposits.
Whether right or wrong, whether
practicable or impracticable, the pro-
posal to insure depositors in banks
against loss is plausible.
+ i. !. !. i. \ !. !. !. X !. !. -. +
4. !.
i. To say that its effect would !.
i. be to put upon we'll managed !.
i. banks the burden of the losses !.
!. of badly managed ones, which X
Il. seems to be the principal argu- !.
X ment relied on, is neither fully X
Z. true nor an insuperabe objec- 4
i. ton to the plan. Objection !.
i. might as well be made against !.
i. fire insurance, because IN the !.
i. end the man whose build4y is !.
!. not burned pays the greater <
!. part Of the loss of the man who !.
4. suffers loss, or against life !.
/. insurance, because those who !.
i. live longest help to pay to sup !.
!. port the families Of those who !.
!. die young. +
!. !,
X i. i. j. !. !. !. :. !. + i. i. !. i. i. j.
Moreover, as a matter of fact bad
management is but one cause of the
failure of banks. It is quite as often
| due to dishonesty and to disregard of
| the wholesome provisions of law, of
and stockholders as rule are ig
! norant. This is by no means con.
! fined to banks that fail. At the meet.
/ ing in Chicago a short time ago, at
which Mr.. Bryan spoke, the greatest
of Chicago bankers and the man who
is the head and front Of the opposition
to the deposit guarantee plan was
compelled to publicly admit that some
of the most wholesome and necessary
restrictions regarding loans by ma
tional banks were habitually disre
garded. So long as that is done sue
cessfully, and it is in the majority OF
cases, It is not found out and tbs
bank management has all the credit
due to successful financiering Occa
sionally those who break the law
make an unsuccessful venture and dis
sipate the funds of both stockholders
and depositors. In such case exposure
is negotiable and unsuccessful rascal
ity is properly punished. Whether
morally the banker who failed was
more culpable than the banker whose
unlawful Investment turned out wei
Is another question. III, IT
~
!. \ ]. !. !. !. i. J. I. i. 4 !. + !. !. J. !
i. !
i. As things are now the de. j
+ positor1 who has small means ::
i. Of judging whether a bank is :.
i managed well or managed i'll, !
!. who cannot know whether its !
!. officers do or do not rigidIy ::
!. conform to the law, who is not, :.
\ in position to say what bank !
+ err is honest and what dishon- !
X est, must take his chances. For !