The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-10-09
EXPERIENCE OF
JOPLIN BANKERS

While the panic VAS at very acute
stage last November. and the banks
of J Jnlin, just Ike the banks of pretty
nearly every city In the country. had
partially suspended payment this Gus
tom became somewhat general: De-
postors would go to the banks draw
ont, say. $50. which was the maximum
that could be drawn, proceed To the
pcstoffice and purchase money or
der. which they paid for at the rate
of $3.50 on the $1,000
Tho pc iple who did this knew that
the money they deposited with the
postoffce in exchange for money or
der was sent away They were aware,
~ Mt any rae ,he banks were aware.
that the postmaster could not deposit
that money ia any of the local banks.
purchase a draft and send the draft
TO the sIb.treasury at ST. Louis. The
postmaster had TO send the money,
the real cain of the realm. Exchange
wonld not do. And obviously the
money taken by citizens from the local
hanks aud invested in postolficc
money orders. was taken completely
! ont OF local circulation.
Now the question Is. Why did the
people take their money out OF the
local banks and place it In the Keeping
of hic government? The people as
sumed th5 local banks we're all right;
I that they were sound and their money
was secure. unless OF course the
4 banks with which the local banks did
] business went 10 smash But the peo-
vie knew that the money they deposit
aJ with Uncle Sam was absolutely
safe There was no If or but or
onv ofder kind n condition about Il.
And so they made Uncle Sam their
depository: iAey made him their
trustee. BecOuAe they had absolute
unqualified contidence in him.
If everybody had had the same con
fidence i'm the banks rs they had in
the government last fall the panic
which stranglcd the nations industry
md whose grip III sin far from relax
, ed. could not have grown into the men
acing stature it did attain. And the
long. lean year Of more than sectional
insolvency. and national retrenehmenl
and national uncertainty, Mlich SUI
obtains, would not have been n matter
of history On the contrary, the past
year, with the nations physical en-
! dowment and capacity for prosperity
unimpaireG, would have written the
story Of prosperity.
1 10 be sure. tho hectic unnatural
( inflated. abnormal paper prosperity
/ must have cont 10 It's day I reckon
/ ing Baubles burst. and houses build
( ed upon the sands of fancy, instead %
! upon the rocks of fact, perish SO sure
~ as they are built. The magic of the
( faker may serve satisfactorily for !
! time as the substitute for the rca
genius 81 the achicver bul inevitably
there is havoc Our yotaries o
frenziod finance. whairYer ihcil
clairyoyancy can moi permanently IN
Fcst imaginary dollars tand by Jim
y aginary dollars we mean watere'
stocO with the earning capacity o
real dollars. Not only have materia
assets been oyer.capitalized, but th'
nr'dns os the marvellous leaders of on
m)den industrialigm have been over
capitalized No constructive law con
coivahle in ihc mind of man, cnforce
able by the power OF any executive
Ncan erect around rational, honest pros
perity an impregnabe barrier agalnv
uch beleameiment And no advocate
J. NN AANN MAAAN kNAtAA AMY AAN NtAANAAN ANihA
10 say that il win Danish the penalt.
of business folly and commercial
icrime. In the constructiyeness OF tn
bank guaranty law. proposed by Bryan
we maintain there shall be inspiration
TO honest business effort that homes
business effort shall lind thcreil
maintenance. protection security. W
maintain that this law shall be 4
honest business effort shield AM
buckler AND we look 90 our crimina
laws as the weapons with which 4
punish business crimes and preven
the activity or business criminals
And 10 the lull extent OF the Roosf
veil administrations failure 10 enforc
those criminal laws against our indus
trial malelactOrs must be charged IN
! responsibility for The disaster An
country has enc 1unlcrod and IN
duresS under which d stilI sroans
The Democratic proposition d
sound banks as sound as The natiana