The Havre herald. [volume] (Havre, Mont.) 1904-1908, 1908-10-07
EE3 WALSH FAILURE CITED
sksa9sAg House Action Like Plan Pro,
psssd by DemocratA
dts4a Against Honest Bankers @uf.
essts6 Runs Modern system Of
SFodita-RankboekS Should
H. WoxtA Face Alwavs
fBy JeAa n. Tatl,rv1.Y

ScfTut2Vk 20 oDvfata
Fears that he would DO "unsafs' in hi,
osnkiag views Before the house com
sai6ee On baking ana currency IL
WashiAsesa Mr.. Gage discussed ma
asonai ananees and particularly the ma
saeaal bank. He sought an llustra tiou
~ die idea hs was expressing, wbich
IN genera! wac IN support Of the guar
aatss plan. and like many others
9eumd it "A shs walsh fsilaro In Chi,
saga ".".m
After explaining how the clearing
heuse banks took over the assets et
o. failed Institution, guaranteed an
Deposition, ana prevented runs ON @th-
O. haRks, Mr.. Gage said:
! Mv. Cages Statement.
aWeI, they learned another lessen
s@a they adopted another principle, a
principle provided for In this (tfe
F~wlert bill. By tho vote and vol
wntary compliance ef all the members
OF tho Clearing House association.
saey authorized the clearing house nc
aay dme and ut stated periods to act
apea its ewn voiition and on Ito ewn
account. and for the information OF
the clearing house committee itself Co
aave full. complete and comprehensive
Investigation Of each member OF the
Association, and not emily eG each MEM
Der. bat Of every institution that car
RaeB the name o. bank over Ii that in
cleared or represented i'm the clearing
Aeuse by any clearing house bark: and
can tell you no safe prophecy that
W. are at the end Of disastrous fan
ure I'm the city Of Chicago by clearing
Rouse banks. since this regime has
sosne I'm. am teld that Kansas City
has the same thing, and ether cities
will eventually adept It,"
Representative Fowler. Republican.
Charivs N. Fowler. Republican, Of
View Jersey, chairman Of the house
eemTdttee ON banking and currency.
appears In the Congressional Record
with house speech In support of his
bill which provided for guarantee OF
bank deposits. He specially answered
eae assertion that such q guarantee
would induce reckless banking, say
Ing:
INF. Chairman, we are occasionally
met with the statement that guarantee
OF deposits would lead to unsound
Banking. o Can you think of a
Banker, because he had insured his de-
posits, going into the directors room
and saying: Gentlemen, we have i1,~
eared our deposits today. Now let us
proceed to make some rotten loans?
ats II not possible that It will occur
to those directors that their losses
Must come out Of their profits, out OF
their reserves, out Of their capital. and
cut Of their regulations? Will the,
not realize that they can get nothing
cat OF the guarantee until the last dol
lar OF their capital, surplus and
profits has been wiped out, and stock
holders have been assessed double the
ameunt Of their stockp
The Bankers Repwtation.
"Until their regulations have been
Injured. If not ruined, and possibly
some Of them have been started on the
road to state prissns Can anybody
think that any board Of directors Of
any bank would be less solicitious
anxious and honest and wise after
they had guaranteed deposits than
they were before?
II assert again. after the most ma
cure deliberation. hst e there 10 one
reason for insurias life and home
there are mere than Il thousand good
rea sons-mere THAI ten thousand good
reasons-why the aepositors Of the
Banking institutions OF the United
States should be insured"
Two Valuable Contributions.
These two mem have offered valua-
the proposed guarantee OF bank de-
pests. Mr.. Gage has set forth the
present trend Of bankers towards q
closer watchfulness over all Instttu-
tions which accept the peoples money
la trust, and has indicated the exact
means whereby. under a guarantee
law. bankers would do as aow they do
10 loek sharply into financial concerns
which seem to Do dsparting from
sound methods.
His reference to the john Fl. Walsh
Failure In Chicago was doubtless be-
Ga use it was known 10 tie country
generally, having beea given wide pub
aicity and therefore nest likely to at
tract attention as IA illustration.
However. there In scarcely local.
| ~ whereia bankers i'm late years have
aot gone under tepping banks and up
hesd them by guaranteeing deposits
wholly or In part, inn erder to help in
n,e quelling OF peculiar atstrust and
the undermining ss oeaadence In al,
Banking insdtutis7s.
No Delay fer DePssitors.
Te Ia quite aprsreat that under
guarantee Of aepssits sAere weuld be
/ ma aHtas.a finm 49, aMsAs aasm mSsa.Hsrv