Daily press. [volume] (Newport News, Va.) 1896-current, 1908-08-28

tors. but Mr.. Taft's hostility 10 al,
guaranty system is shown IN the Oh
lection which ~ offers:
tals Hostility Shown. o.,
."The proposition Is 10 tax the hon
est and prudent bankers To make up
for the dishonest! and impradence Oh
lothers No one can foresee,, the Dnr.
den which under this system would
be imposed upon the sound and cp;''
servative lankers III the country by
this Obligation to make good the loss
es caused by the reckless. speculative
and dishonest men who would be en-
tabled to secure deposits under sneh z
system Oh the, faith of the proposed
as In its present shape tho
propcsal would remove all safeguards
against reck,essness in banking. and
1.-THE chief, and IN the end. probably
1.-THE only, benefit would acerre to the
sn, culatur. who would be delighted to
enter the banking business when "
was certain thar he could enjoy any
prof., that would accrue. while tue
risk would have to he assumed by hts
honest and Aardworking fellow,
! Ha even pictures dire disaster and
declares that 1T the proposal were
adopted exactly AZ the Democratic
pIatform suggests. it would bring the
whole banking system OF the country
down in ruin" go.
| As an afterthoueht he suggests that
q voluntary system might be tolerated
but al his objections to compulsory
lsystcm apply just as we'll to Noluii
ltary system we may fairly count hini
against all legislation which has Tor
Its Object the guaranty Of depositors'
| As Mr.. Tafts argnmen; Is that pre-
lsentad BY the big banks which put
their own selfish interests above the
welfare Of the depositcrs and the
safety Of the community. 1t Is worth
while to answer the several proposi''
lions which he advances.
! obleetions Answered.
Let us take the first sentence, thar
1.-THE honest and prudent banker
gould be taxed to make up for the dis
honesty and imprudencc OF others.
Is not this true OF all restrictions OIL
thanking. Does not the honest AMI
prudent banker under existing laws
Isuffer In order that the deposifor
NAV be protected from the dishonest
lana ifnprudent? II We had no banking
laws at all. and banking was dope pS
private Individmals. the honest ana
prudent banker would save the money
that he now pays for enforced exami1
nations OF his bank. and h" could NJ
times make interest on part OF The
money which he is now required 10
keen in his vault as rigid reserve
But because some bankers are not
prudent. these laws place a burden
upon the good as well as upon the
bad. it icing difficult to distinguish the
prudent banker from the imprndeht
one natilra bank actually fails.
In like manner it might be said fhat
Iif all people were careful about IRE
| fire insurance rates need not be as
high as they are. but the careful have
70 nav HIGHER rates than they should
because some are not careful. Lie
insurance rates are higher than won ID
be nece ssary to cover the actual risk
liz every body took care Of his health
land there, too, the cautious are bur
tdenei because some are careless Oh
Their health. All insurance Is open Ia
1.-The same, objection, and yet Insurance.
/ of all forms Is growing. and the In
lsuraHces Of iepositOrs Is growing ~
4 popularity more rapidly than any Other
tform Of insurance--and, I may add. II
Yields the largest return on the in
Investment.
i Mr., Taft complains that mo one car
Horesee the burden which under tnis
,tsystem would tie imposed upon the
lsoMnd and conservative bankers Dl
1.-The country by this obligation to make
4 GOOD the losses caused IT, the reckiesA
Speculative and dishonest men. etc
Loss win be Less
I We have the past to gnide us. and
we have reason to believe that the
lloss will he less In the future than In
1.-The pas, because when banks become
mutually responsible for each others
ideposits they will be sufficiently In
,tterested In each other to favor better
Regulation and greater restrictions
4 What has Mr.. Taft done 10 protect
Idepositors from reeklessness and
il speculation While he refuses 10 pro
'ltect depositors, he praises the Aidricn
tYreeiand law. which invites specu
'Ilation and stock tobbiuk: In dectartnf
That the system proposed by the Demo
Icrats would remove. all safeguards
iasainsf reckIessnees In banking. ,Mr
TAFT betravs an ignorance OF the sup
! lject. for the plan does not propose
1.-THE removal of , any safeguard. u
Ifact, Il ccntemplates strieter regu
Ilations Of the banks, and Oklahema
has already made the banking regulat
ions stricter. ID 80. -,
He. declares thf the only bepeft'
would accrue to the specuiatpr, who
would H. delighted 20 enter the bank
ling business when IL wss certain INA
he, couhi enjoy any profit that would
laccrue. while the risk would have ff
tbe assumed by his honest and hard
working fellow The present bank
ling Law reqIires that . certain amoan
of capital shall be invested in the
lbusiness. and that lav would sui