Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-10-13
ncity and therefore most likely to at

licity and therefore Most likely to at
tract attention as an illustration
However. there is scarcely local.
ty wherein bankers in late years have
not gone under topping banks and up
held them by guaranteeing deposits
wholly or in part. in order to help in
the Quelling of popular distrust and
the undermining OF confidence in all
banking institutions.
No Delay for Depositors.
IT is quite apparent that under
| guarantee of deposits there would ba
| no alteration OF conditions affecting
banks now, so far rs concerns espion.
| age maintained by orc over another.
| The important difference. however.
| would be that depoSitors would not be
| subject TO the annoying, often disas-
| trous, delays in getting their money
| which now they experience wher
| banks fail.
But. that fewer failures would oc-
| cur surely would be one of the re-
suits of such Il law. Everyone knows
that many runs are precpitated on
| banks which are absolutely sound.
| Many man. faithful, safe. conserva-
tive. conscientious in caring for the
money of his dcpositors. has suffered
runs caused by some rumor started
! through malice. Many an honest
| banker has had his heart broken by
senscless runs. and has groaned in
| spirit as be realized that gross iniuS-
| tice has been done as reward for ear
nest and able keeping Of the trust re-
posed in him by his dcpositors.
| The Earring Failure.
When a dozen years ago. BARN.
Brothers. of London suspended, it was
due to that very espionage by other
bankers to which Mr. Gage refers,
South American enterprises. some OF
which were mapifestly unsafe.
The governors of the Bank of Eng.
land, sensing the danger, refused to
| accept securities backed by them as
basis for the issuance of bank notes
under the custom of that country; that
action never has been adversely criti-
ciZed in any country, although it has
been discussed ever Esince the world
over.
Modern business is conducted on the
basis for the issuance of bank notes
tie actual money passes from hand to
hand.
Modern System OF Credits.
You 90 to your bank with bundle
of checks and drafts and deposit them
to your credit. Against that account
thus opened. you draw checks. They
pass into the world Of business, are
accepted at face value, and circu.
late virtually as does gold. silver and
currency. If you pay your bills in
checks. often you pass through weeks
at time when you have only trifie
of loose change in your pocket for
street ear fare and the small things
you need from day to day costing toe
: little TO bother to draw check.
"A check cancelled is voucher
has become a maxim in the business
world.
Complications of the System.
d This complexities business and forces
/, all banks TO associate themselves in
, clearing houses, and probably the pub
lie would be amazed We're they tc
know at times now sharply the clear
: ing house committee looks into meth
, DDS employed by its members.
81 In the panic that began last October
!. funds were carried from bank to bank
taken ostentatiously through the from
doors, that depositcrs might know thai
: other banks believed in the soundnes.
:of the institution which had been at