The Dickinson press., 1908-01-04
Favors Government Guar
antee

Minneapolis Tribune written by Henry
Heaton, managerial the Heaton Lumber
Co. at Belfeld, and uncle of A. D. Hea-
ton of this city.
In common with many others, some OF
whom are bank officials Cashiers and
presidency, l have been very much
taken with the proposition that the gov
eminent OF state shall guarantee the de-
positor in all approved banks. have
read your editorials on the subject, and
practically the same objections from
others. 1t is that the scheme would tend
to discourage the conservative banker
and encourage the reckless one.
l am not satisfied that you have given
the question the thought that l think it
deserves, nor am l satisfied that you
have approached it in the proper spirit.
l imagine that l see a desire: to excite
partisanship rather than to3arrive at a
correct solution. You call it Mr.. Bryan's
"pet scheme" l understand that it had
been agitated for years before Mr.. Bryan
thought of it.
1t is not a political question. Why
not leave MI. Bryan out OF the discus.
sion? 1t is said that Mr.. Roosevelt
agreed with Mr.. Bryan that it would be
a good thing.
1t is absurd for US to allowlsourselves
to be influenced by the expressed opin-
ion of those honorable and well-meaning
gentlemen.
You assume that the loss to the people
caused by bank failures would be greatly
increased under the proposed scheme.
Others who have given the matter SOM
thought state that it will have directly
the opposite effect. The people of Okla
homa and possibly of other states that
will adopt the plan will find out. The
governor of Wisconsin has recommended
it.
You say that it is a theory that it will
prevent runs on banks. Why do you
use the word theory" Does any man
in his sober senses deny that it will not
do this very thing?aDoes any man deny
that it would not only prevent the de-
positor from getting scared, but kthat it
would also prevent the banker from get
ting scared? These two things are to.
day the principal cause of the money
stringency.
You say that "Bryan's"t plan would
inevitably initiate credit and promote
recklessness and extravagance.ii
You may think you have made this
plain, but some of us are from Missouri;
we want to be shown. You seem to as
sumo that all the laws now in force to
prevent reckless banking will be re-
pealed. The assumption of the friends
of the measure is thatathey will be made
stronger and be more rigidly enforced.
You evidently have not seen nor have
not cared to see a copy of the Oklahoma
law. 1t seems to me more than neces-
sarily strict in its safeguards.
Very evidently it will not be necessary
under this PLAINTIFF banks to carry as
large a cash reserve as they now do.
There would.be no sense in it.&iThe all
importantsthinglwould be the security
required of the borrower, the collateral.
OF necessity this should be more and
more closely looked after.
Your sympathy goes out to the poor,
oppressed conservative banker who is
forced into partnership with the RECKLESS
one. In all kinds of insurance the con
sentative individual is glad to 60 into
partnership with the ]i-careless one, and
instead of objecting, the more conserva-
tive he is, the more anxious he is for the
partnership. After all, this plan is moth
ing but mutual insurance. 1t is not even
compulsory, and there will be no favored
banks, for, of course, the legislation will
be general in its provisions, as it is in
Oklahoma.
The proposed plan is an application of
the old saw, that in union there is
strength. The panic is the result of indi-
vidualism run mad. Every man looks
out for himself.andilets the devil get the
hindmost.
1t is the theory" of the opponents of
the scheme that the conservative banker
now has an advantage over thej reckless
one in that the depositor will prefer him
on account of his conservatism. But it
is a fact that the average innocent de-
positor has no means of knowing which
is the conservative and which the reck-
less banker until his money is gone.
Then he knows.
Captious objections will not prevent
the adoption of this plan. One state has
already adopted it. If one or two more
adopt it the others will be forced to do
the same to keep their money at home.
If congress fails to adopt it, and the
stringency continues in those states that
have not adopted it, and money loosens
up in those that have, Bryan's election
will almost surely follow. The Public
says that this plan was proposed by John
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