The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-23


further than that. If we create a dis
trict and authorize the clearing house
OF the district to bind all the banks Of
the district, the government could loan
money TO IL without any specific Sc
curity, for it has back of it all the as
sets of all the banks. And if the loan
was limited TO A certain per cent. say.
for instance, to 20 or % per cent of
the total capital and surplus of the
banks. there could be no loss 20 the
government. But there is no difficulty
about details. If we need emergency
currency. if elasticity is desired, it is
possible to provide il without any
change in our monetary system. With
out any innovations at all, il is posi-
Die to provide all the elasticity for
which anybody can show a need. And
are we asking too much when we in
sist that this shall be in the control
of the government and not in the
hands of individuals?
Confidence Is Needed.
What we need. think. even more
than an increase in our currency is
confidence. Think of it, applause }
! am now the evangel of confidence [
am now the advance agent" of con-
fidence. If we can bring money from
hiding and boarding and get 1t into the
banks the banks will have more money
TO loan than we can possibly furnish
them by any emergency currency
what we need today is to restore con-
fldence in the depositors. John Wanna
maker was quoted as saying can not
rely entirely on what the newspapers
say-hut he was quoted as saying that
a billion dollars was hidden under car
pets. The government only loaned the
banks about $250.000 coo and if Mr.
Wanamaker is right we have four
times as much in hiding. The post
master general in recommending a
postal savings bank, says that we are
sending out many millions every wear
to be deposited in government banks in
Europe. by people who are not willing
to trust our banks. The people of this
country are being driven to the postal
savings bank because they need a
place TO deposit their money where
they can get it when they want it,
Some of you have thought me very
anxious TO enlarge the work of the
government. | have never insisted
that the government should undertake
any business that could be done salts
factorily by the individual | believe
IN individuaiism; / want the individual
to have the largest possible sphere of
action.
And only where it is impossible for
the individual to act. or unsafe for the
community that he should act. have
suggested that the government should
act. have believed for years that if
the banks did not allow the banking
to be made safe they would drive the
country TO the postal savings bank |
would rather have the banking done
by the bankers than by the govern
ment tApplauSe.) I am in favor of
the postal savings bank. but a uostal
savings bank is only an alternative to
be selected if we can not get the Sc
eurity that the people demand.
People Must Be Treasured.
And today the greatest need we have
is legislation that viii make people
feel that when they deposit money in
the banks they can go and get il when
ever they want it; the stringency that
has spread over this country in a night
has taught the people the necessity
for this protection
They tell us that the timiditv which
people have manifested is not iusti-
fled. That is generally true. l am not
prepared to speak for this community.
but l am sure that i'm the west there is
no reasonable excuse for this timidfty.
tLaughter) Our crops have been boun-
people have money; they fill the banks
with their money, and there was so
much that they sent a large part of it
down here to New York to be invested
ana they have been waiting. waiting
waiting Tor its return. naughter) Our
banks are good and yet. my friends
When bank suspends payment on
checks you need not be surprised if
the ultra -timid become alarmed and
want to get their money out. 0augh-
tef) II l were banker | would not
oe proud OF system that had to run
rivalry with CARPET as A safety d.
post vault, and have the Garner nre-
ferred in times of stress. I,augbfer)
a man does not hide money under a
carpet If he can find any safer place
tLauShter) l repeat that what we
need To-Day is to make the bank safe
You may laugh down here in New
York, but in Oklahoma-vou caU il q
Wlld western state-the first thing tbev
dld was TO pass a law to guarantee
Dank deposits. How did they do If ,
Iney authorized banking board to
cohecl an assessment on the 18th of
tilis lhohth OF l per cent on the depos-
It's or the banks. ] think il is hiebor
than necessary: one-haIf of nar Cent
"ould nave been enough. even
one-fourth of per cent Womb
have been sufficient. b1t tha,,
said ! per cent and thew en,,
powered the board to assess at any time
and to any extent necessary to keen
that reserve intact. And thus thew mt
behind every bank the assets of ali fbe
banks. In anticipation of the operation
of that law, the bankers of Kansas no
uuoned their governor to cali A sneeiaJ
session of the legislature to PASS a. law
like it so as to keep the money from
being drawn out of Kansas banks ami
deposited in Oklahoma. Great laugh
teri
State Guaranty Of Bank Deposits.
And the legislature is now in session.
1t viii enact such a law. 1t has been
introduced in Illinois. 1t has been in
troduced in Ohio. and | had the honor
to receive an invitation from the Re-
publican legislature of Ohio to come
and address that legislature on a guar
anteed bank. Possibly / was invited
because some fourteen years ago | tried
to secure the enactment of such a law
by congress. We had failure in our
town and many poor people suffered
the loss of their savings. and the hard
ships visited upon our community
caused such a cry of distress, that some
one came to mel wish / could remem-
n ie