Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1908-10-08
SOME GOOD EVIDENCE
Former Secretary Gage and Con-
gssssnnan Fowler on the De.
posit Guarantee.
Clearing House Action Like Plan Pro
psssd BY DsmocratA
Guards Against Honest bankers suf.
fsring Runs Modern system of
book Should
be worth Faoe Always

kertng huns- Modern system of
Oredits-Bankbo book Should
BE worth Faoe Always
tBy John 4. Lathrop.l
Lyman J. Gage, former secretary Of
me treasury. may be regarded rs suf-
aeiendy conservative" to obviate
fears that he would be "unsafe" In his
banking views. Before the house com
mittee on banking and currency In
Washington Mr.. Gage discussed ma
doual finances and particularly the na-
asnal bank. He sought an Illustration
OF NE idea he was expressing. which
In general was In support OF the guar
antss plan. and like many others
found II In the Walsh fsilure I'm Chi
easn
After expaainins how the clearing
hsree banks took over the assets Of
the failed institution, guaranteed all
dspositsss. and prevented runs on 9TH
- D&31ss AAIs OaSe e8t0.
Mr. Cages Statement.
wehs tAsy learned another lesson
and thsy aAsptsa aneensr prineie,e, q
pr0apls provi6ea fw !, this tths
Fowler bill BY the vote ana vol
untary compliance OF all the members
Of the Clearing House association,
they autkosassd the clearing house at
any ums ana at stated periods - act
upsn tn swn voift1on ana on tn own
account and for the Information Of
the clearing house committee kssff 30
have full. complete and comprehensive
investigated OF each member of the
associates. and not only Of each mem.
ber, but ef every institution tihae car
nss the name Of bank over u that 10
cleared o. represented In the clearing
heuee ny any clearing house bank; and
] can tell yea a . safe Prophecy that
We are at the end Of disastrous far
urs In ehe city Of Chicago by clearing
house banks, since this regime has
come In j am told that Kansas CITY
has the same thing. and other cities
will eventually adopt It"
Reprsseatasavs Fowler, Republics.
Charles N. Fowler, Republican, Of
View jersey, Chairman Of the hou>s
committee On banking and currency,
appears In the Congressional Record
with house speech In support of his
bin which psovided for guarantee OF
bank deposits. He specially answered
the assertion that such q guarantee
would inasce reckless banking. say
Ing:
"Ar- Chairman, we are occa asionaiiy
met with <hs statement that guarantee
ef deposits would lead 20 unsound
bankiAg. . OAn you think OF a
banker. because he had insured his d.
pesits. geing into the directors room
and saying: Gentlemen, we have in-
sured our deDoaits today. Now let a.
proceed b make some rotten loansr
''Is n not possible that u will occur
% those directors that their Iesses
must cene sst Of Their proaes, cut Of
tAsT rssesvea out Of their capital, and
cut q their reputations7 Will the,
not realize that they can get nothing
cut Of the guarantee until the last dol
lAr Of thstr capital, surplus and
Dro0ts has been wiped out, and stock.
holders have been assessed double the
amount Of their sto~k7
Ths Banker Reputation.
"until their regulations have been
injured, II not ruined, ana possibly
some Of them have been started On the
road to state prison7 Can anybody
thlnk that any board Of directors Of
any bank would be less solicatious.
anxious and honest and wise after
they had guaranteed deposits than
they were befors1
81 assert again. after the most ma
ture dslibera<aon, that IL there is one
reason for insur1ng life and home,
there are more than a thousand good
reasons-mere than ten thousand goed
rsasons-why the depositors Of the
banking fnseztutions Of the United
States sheuA be insured"
Tive Valuable Consrtbutsons.
These tive men have offered valun-
b3e centzfbatioBs 10 the discusson of
the proposed guarantee Of bank de-
pssts. ks. Gage has set forth ne
present tread Of bankers towards q
closer wo1ahfuiness ever an inst1tu-
tisas whleA aecsp4 the peoples msusy
IN trust anA has indicated the exaea
means whsre6y, under q GUARANTEES
law. bankess woold do 40 now they q
-nain1A1n 90 assocsafzen empowered
20 issk sAafDiy into financial concerns
which seem % b departing from
sound msehoaA
His reference 20 the John r. Walsh
failure In Chicago was doubtless 10
cause 10 was known to tie country
generally. having been given wide pub
heity and therefore Mest likely b. %
tract aeeeatisn as an illustrates.
Hewevss, there 10 scarcely Q local.
y where1A bankers In lats years have
not gone uaesr topping banks and up
held then by guaranteetng deposit
wholly % IN PARA In order 30 help b
- ssealinG q pseuaar distrust an<
the undesmining of confidence In a
banking mD1tzesons.
No Dslay for Deposisers-
If 10 Qa,ts apparent that unda
UsAsan1n - esDesits stsEe vesia D
- - >~wza&~ ~A~~As~<