Daily press. [volume] (Newport News, Va.) 1896-current, 1908-08-28

done by the banks ratehr than by the
government. I urge the guaranty OF
deposits as the easiest solution OF our
difficulties.
Depositors Have Prior Claim.
There are only 10000 banks. while
! there are $4,000, 900 depositOrs. and l
, do not hesitate to declare that in
conflict between the two the deposit
tors have a prior claim to consider
atoms. II we estimate the average
number of Stockholders of each bank
at seventy-five-and that Is liberal
; estimate-tha total number OF stock
holders would only be million and
half, or cne-tenth as many as there
are depositors The stockhclder is
not compelled tobuy stock. while the
, depositor is compelled to use the
banks. 10th for his own sake and for
the. sake of the community, for only
BY using the banks can he keep his
money a part Of the circulating medi-
nm. The guaranty law, therefore.
brings the greatest good to the great
est number. as well as to those VINO
; have the greater equity upon their
side.
| There is another reason why the
! claim OF the deposition is superior TO
the claim of the stOckholder. Inc
stakeholder has a voice In the select
ion of the bank officials: the deposltor
has not. II any one must lose. there
fore. as the result of tad management,
il ought to be the stOckho!der rather
than the depcsi;or. And venture TO
ask. IL the bankers will not trust
each other why should they expect the
. depositor to trust the banks?
| W. are fortunate. however. in that
We are not compelled to choose be-
tween Justice 10 the depositor and JUS
tice { the stakeholder. for az has been
shown before. the plan which We pro
pose not only does justice to both.
/ but brings advantage to both. More
than that the plan which We prOpos"
protects the banker-an6 II Is MS on
IL protecticn-against the ESTABLISH
/: ment Of q government bank. with IN
definite encroachments ucon Inc
bankers business. With the guaran-
tecd bank established. government
saving hanks would only be needed IN
the towns ana villigaes where there
were no guaranteed banks.
j., n We had 10 choose between the
interests Of tn. bank and the interests
of the community we would be COM
PEELED 10 protect the interests 81 the
community first: but here. too We are
fortunate. for We are not driven to this
alternate. That which protects zoe
community protects the hank also. ip
when there arc several banks Ia the
community. the failure OF one ou"n
/ causes a run upon the others. and the
insolvency ot one bank Is sach men
ace TO the solvency Ct others that the
soivsn, hanks often join together ana
assume the liabilities 81 the inso.ven'
one for their own protection. As an
: illustration " this. I point 10 the act
ion Of the Chicago banks In assamih :
! the lia,sliticS ~ the Walsh banks. ~
: a heavy loss 20 Nh~nselves.
(. ssin Another Advantage.
! There IL another advaHf7Ss Shicn
! the guaranty " depositors brings 70
1.-The hanks-it protects the reserves
, ldevosi,.si IN o,her BANKS. DARING inc
, panic last fall the reserves causes
/. the most a the trouble. The smsi
; banks wanted 10 withdraw 'heir re
7 serves from the city banks. snd W.
I big banks irthe itses were not PIE
= pared 70 meet. the strain. WITH DC
? posts guaranteed there would hc .ne
? runs on local hanks and No ssan' -
Withdrawal ~ receives.
: have objected the capita, OF tn'
: stale O. Kansas as shcmott appro?r'
, ate pisce for be delivery Of speeel
2 ,uroa this subject. lscrsuse ycvr r''kn
Z 'bcr saon the scrrn has hrca q nicnce'
, in this reform. Her p,as. - goa mos
, has h~~n sue,, a sisusi ssccpss that -
r ,.-,,. ~. 10. Asvwu acrUu IN