The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1908-10-09


YAK upon national banks and upo
suEh state banks as may come In. I'm m
! m ,, OF enforced insurance TO raise
sE rt'i baGgl, iuhd to pay the depositors q
Ahu then he questions the right OF TN
bg'NtIIHHitHt "a enact such a law saving
? now state banks can be Included I
suCh scheme under the consiItlttto
IL left IN the twilight zone Of STAFF rI,h,
I,u federalism SO frequently dimrninl
ne meaning ana purpose of the promiaa
VI iht PLATFORM. IL they come in unde
hro,t,Ib, sgst.tm, they must necessarily b
~, ISM WITHIN the closest national con
~, ana SO they must really cease to h
state banks and become national hnnks
rs solicitude for the state bank vii
ouitm ,ldiiidpii.ess the country. for he Il
lit nII'lrfent to states and their re
"tE'd rights when he deals with otbe
supJe'lH When Congress Ii in tho con
bbol oil nose who want to legislate 70,
f",. 'U ,,.,, people rather than for tn,
t'm' II VIII not he difficult TO frame !
"a" under which state banks can avail
themselves OF the advantages az a "a
ola Iaw guaranteeing the deposits Of
/ uailonul banks, Just as Il was enS,, g.
| Oklahoma to frame a law which raryy,I -
lyu national banks to take adyantnp,
on tht state guaranty system Ii will nIsS
, w. rasy 10 enact federal law which viii
! permit national banks TO eyeI tbern.
selves Of state guaranty svstSms mntr
/ "a HluuubI system can be secured A.
/ torncy-Gencral Bononar,e' Va 'u, ~
mhttneF Is correctly interprets the law
/ or not would not bring such cnnatcrno,
! ton as 1t does II the RepublIcan cordi
ual. favored law allowing natIonat
banks to take advantage Of state systems
lor the protection OF depositors, but MIR
,ems 10 15h,1,Ity 20 aH guaranty sys-
he offers. 'ON''on WHICH
me proposition IL to tax the honest
a iil9 prudent banker TO make 10 for the
dishonesty and imprudence OF otbera
ha
uhuer thls system, would be Imposed
upon the sound and conservative hank
me OF Ine country by this obligation to
reckless. speculative and dishonest NAV
VINO would be enabled to secure denosIta
uIlher such system on the fsnh Of the
rroposed insurance; as in it's present
shape, the proposal would removo ali
safeguards against recklessness in ha M di'
me; ana the chief. and in the end
PROBABLY the only benefit would accrHe
i iH tns ,speclIator, who would be dc.
,tfGteu 10 enter the banking business
any proht that would accrue, while he
tlsh would have to be assumed nv his
"G Inc ian ana ,hh.alrd-working fellow"
clares that III the proposal we're ado,,od
exactly as the Democratic platform anp.
ststs, II would bring the whole banking
system OF the country down in ruin"
. ~oi a., Liter thought, he suggests that
voluntary system might be tolerated
Dut as his objections to a connulsnrv
system apply just as well to n voiuntory
s sfS'f tdnr8 we may fairy count him against
the guaranty OF deposItors.
as Mr.. Tafts argument IL that nra-
scented BY the big banks which put their |
own selfish interests above the welfare |
or the depositors and the safety ~ tbo |
community, 1t is worth while 10 answer |
vanCes. ~h "e ao-
Let us take the first sentence, that
inc honest and prudent banker wntid
be taxed to make up for the dIshonest,
ana lmprudence Of others" Is NOT ,bIs
rue OF all restrictions on banktngo
',o9s not the honest and prudent banker
under existing laws, suffer In order tba,
he depositor may be protected fron, ~ ~
llshonesty and imprudent? IL we had
lu banking laws mt all and bankIng
as zone by private individuals, the
he money that he now iays for enforccT
'Saminatons OF this bank, and he co,Id
II times make interest on n mart NJ tho
money n h which he Is now required to keep
'ause some bankers are NOT pr,idaD;
hese laws place n burden upop the GOOD
y wen ms upon the bad, II being dIfrIcuIt
- uisungulsh the prudent banker from
alis '"'N "ctu"lIy
; IN Ike manner It might be said that II
!. people were careful about fire, fire |
b Insurance rates need not be as high as
hey are. but the careful have tn nay
lsher rates than they should, beeaisse
ONE are not careful. Life Insurance !
lles are higher than would be neces. !
ny TO cover the actual risk II every (
=" nv, i"ok co care OF his health. and here. {
pihe are careless of their health. All I
lsFhhce is open to the same objection d
nu Eet insurance of all forms Is grow. v
lg, and the insurance of depositnrs i. a
rowing In popularity more rapidly than il
ny other form of insurance-and' o
my add, 1t Yields the largest return on | n
le Investment WI =
Mr. Taft complains that no on, cop n
'resee the burden which. under thia y
stem, would be imposed upon the | n
'unu ana conservative bankers Of tho | n
'uhtry by this obligation to make good q
le losses caused by the reckless. specml u
tive and dishonest men. etc We bava "
e past to guide us. and we have reo.
N 70 believe that the loss will be Iesr :.
, IN tne future than in the past, because q q
men banks become mutually re-ponsihie a
r each others deposits thew viii he tt
nciently Interested in each other 70 o.
yor better regulations and greater re- ~
What has Mr. Taft done TO protec, ao OF
sitors from recklessness and specuia- T
lhF while he refuses to protect demos "a
'rs ne praises the Aldrich- Vreeiand NJ
w which invites speculation and stock a.
oolng. In declaring that the system bi
oposed by the Democrats would re- &C
I'VE all safeguards against recklessna.a az
banking" Mr.. Taft betrays an ig- st
rance OF the subject, for the pian a
% not propose the removal OF anv III
Ieguards, In fact. It contemplated nc
letter regulations OF the banks and SO
mas already made the banking IT
lie declares that 1.-THE only benefit m
uid accrue to the Spectator, who In
uld be delighted to enter the BANKING pl
siness when 1t was certain that he de
ild enjoy any profit that would ac- Sc
lie. while the risk would have to he
lumed by his honest and hard-work. as
feilow.' The present banking law tn
lures that certain amount of capjtai la'
vi De invested in the business. and ba
Z law would still stand. To enter fhe up
liking business. therefore. man Thu
uld either have to have the capitai sol
1self or secure the confidence OF men tn,
had the capital And this capitaI Gle
ether with the 100 per cent liability 7
aid be guaranty that the stockhold. this
wouic not Intentionally select cara de,
OFFICIALS. Why would a .'specuIafor,, MI
delighted to enter the banking bust. The
under the guaranty system? He me
not reviewed from pecuniary oblIga- 7
!: nor Is he relieved from criminal pa,
ility. He would have nothing TO gain der
careiessness. nor would the stock nj
iers have anything to gain by indif- me
Ne chief cause of bank failures ia thu wi
fing OF excessive loans to directors nIa