The morning journal-courier., 1908-09-16
HARMFUL MEASURE
Bankers Declare Guarantee Act is Fraught With
 Mischief.
FEAR RECKLESS BANKING
Eugene s. Bristol and Burton Mans. field Give Their Opinions Against
 the Bill.
,spec,,I 10 inc JournaI-Cour,er.,


 Hartford, Sept. 15.-T The sentiment of the bankers of the state of Connecticut as expressed in the reply of nearly 100 prominent bankers to inquiries of the Hartford Times is without dissent ops posed and strongly opposed to the pro- posed action of establishing govern- ment guarantee for bank deposits. They, declare that the scheme Is fraught with danger and mischief for the banking system and that it Is an unfair measure. They express the fear that the chief result of such a guar antee would be the stimulation of reck- less and careless banking and would lcweS the standards of integrity and ef- ficiency which now exists in the man agement of banking houses.
 The replies made to the requests for statements of the positions of banking men all constitute a remarkable sym posiun. National banks, savings banks and trust companies are all rep resented, and all sections of the state have been heard from. The bank off, cials who express their views repre- sent both the great political parties, but there is no difference Of opinion concerning the bank guarantee propos- al. Not a voice is raised in behalf of the scheme. Except for one bank president who hasn't studied the sub ject sufficiently to be prepared to com init himself absolutely. every banker In the symposium is vigorous and out spoken in condemnation of the plan. Among the opinions which have been vigorously given are those from Eugene S. Bristol, treasurer of the Union Tr,St company of New Haven who ln- dicates not only his own opinion but that of Henry l.. Hotchkiss, the presi- dent of the institution also. After say ing that in his opinion the measure would be mlschievous and faiacious he continues:
 Let us take for example instead of the state or the United States, town of say 100000 inhabitants, which agrees to guarantee all the bank deposits of i that town, in which there are three banks. Two are conducted on sound principles and loans made with the greatest care on absolutely good secur- fly. One Ia weak, and ambitious 10 get rich quick. A and R deposit s100000 in the two first named banks, after suf- ! fcient inquiry K and l., making no in- quiry or examination, deposit in the other weak bank $100,N0 which Is lost, and all the jnha abitants. including A | and E. who have exercised care and ! judgment, are assessed to pay K and l. their loss: that is, each inhabitant 1 has tc pay S1 out of his earnings to ! make up the loss to K and l.. or if the tax is percentage on property owned A and E pay their per cent. and lose ! part of their s1O0,OOo, exactly what l tho" took pains to avoid.
 1 "1f the government is so paternal as 7 this, why shoud it not superintend a the ventures and investments of every body? If a man wishes to put his money Into wildcat copper mine or some other scheme which advertise and promises him wonderful returns he should not lose that money, but the rest of the people should pay him if he does, This would seem to make 1t safe for everybody but if the careful and industrious are thus made part. ners with the gamblers, careless and thoughtless would any one be bene- fitedP It seems to me not. and not on ly that, but the government. however strong, would soon be bankrupt"
 Burton Mansfield president of the Connecticut Savings bank, expresses his opinion of the measure in these words;
 "1 do not favor the proposal to pro- vide a guarantee for bank deposits It would encourage banking of an ire sponsible character and throw upon the strong banks burdens which they should not reasonably be called upon to l bear.'