Martinsburg statesman-democrat. [volume] (Martinsburg, W. Va.) 1906-1921, 1908-10-09
GOVERNMENT GUARANTEE
Oct. 8, 1905

OCh. ot lSso
Mr.. Editor:
! noticed In the Republican
column Of the Evening journal of last
Saturday, Oct. Ord. the letters written
by DIR. Jas. w. McSherry, President cf
the Citizens National, and Mr.. II. III.
Emmert, President Of the Old Nation
al Bank, giving their reasons for their
opposition, to Government Guarantee
Of Bank Deposits
The Editsr Of that column, who 10
generally supposed to be Mr.. Charles
P. Light, seems to think that sll the
law and the gospel on that subject, is
contained In the opinion Of these gen.
tlemsn, but the writer Of this COM
|munication does not concur In that
E5sdgmeht. In the fret place those gem
slemen are Interested In banking, and
Il IL common rule OF evidence that
the testimony Of interested with esses
should be taken with many grains Of
allowance, in fact not taken ~ all.
Dr.McSherry thinks that the burden,
Of keeping Bank officials straight,
should be placed on the Bank Exami-
Hers. There has been q systcm OF Bank
Exami iations, by Government Agents
ever since National Banks were estab-
lished, and yet 1t has proved ineffeetu-
al in preventing bad management and
dishonesty. There have been many
disastrous Bank failures, traceable, In
manv instances to errors ofjudgsment
by the directors, and In others to the
dishonesty OF trusted officials, and
the unsuspecting depositors have lad
to suffer.
Mr.. Emmert's closing argument Is,
that 1t would be hardship for "con-
| servativeIy managed Banks to be tax
81 to make good the losses oscssioned
by Errors In judgment or the
dishonesty Of the officers of insslvent
| Banks.r This argument, II carried
to its logical conclusion, would ex-
empt old bachelors, and these persons
whs have no children Ito which class,
kby thsAwav, both Of the gentlemen
quoged, belong). from paying any
school tax, or persons who have no
wheeled vehicles from paying road
tax.
The banks make their profits cut Of
the money Of their Sepositors, and II 10
but fair that they should be willing to
make said dspositors bsoIuteJy secure.
II is conceded that the cause OF the
late panic, from which the country
has net yet fully recovered, was due to
the loss Of confidence in the Banks and
the business methods Of the country
generally and resulted In = heavy with
drswaI Of deposits. There are three
billions Of eurrency in existence In this
country and sniy one billion can be
accounted for, the balances being In
hiding, A. the result Of that lack Of
confidence.
The trouble is that the banking in
terests and what is called the business
interests, which means the monied
interests Of the country, seem TO re-
gard that all other classes OF individu-
ais, the farmers, mechanics, and wage
earner, have no rights that ought 10
be considered.
Your correspondent Ia amazed that
banks should be so lest to sense
Of justice ana fairness, rs to oppose
any plan that would tend to secure the
very deposits, from which they de-
rive their large profits. Such oppssi-
tion will not tend TO increase public
confidence in their institutions.
I understand that the Old National
is Government Repository, aud that
AS such, it Is required TO deposit $oO,-
600 worth Of bonds TO secure the gov
eminent deposits. Now Mr.. Eiamsrt
why should you oppose granting the
depostors in the Bank, Of which you
are President, the same security
that the United States Govern
ment requires Of it. 1t seems to
me that your objection Is net well
taken. What is sauce for the goose
ought to be sauce for the gander.
My humble opinioA ID that the
"Governrnent Guarantees" feature Of
the democratic platform will appeal
very strongly to the rank and file Of
both parties.
naposjtnr