Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1908-10-08
SOME GOOD EVIDENCE
Former Secretary Gage and Con.
gF0ssnsan Fowler on the De.
posit Guarantee.
TIE WALSH FAILURE CITED
Clearing Heuss Action Like Plan Pro.
psssd By Democrata
0uaFds Against Honest Bankers 0uf.
: ssr1ns Rans- Modern syssssn q
0Ee11nS- nank book Ghou1d
- worth Face Always
TIE WALSH FAILURE CITED

0ro16xs- mank book nhou1d
- WortA Facs Always
rBy John L. Lathrop.1
Lyman J. Gage. former secretary Of
ne treasury, may be regarded a. suf.
SILENTLY conservative" TO obviate
fears that he would be unsafe In his
banking views Before the house COM
mittes on banking and currency In
Washington Mr.. Gage discussed ma
ssooal finances and particularly the na-
asnal bank. He sought an Illustration
q Tie idea he was expressing which
In general was In support Of the guar.
antss plan. ana like many others
found 70 In the Walsh fsiiure m Chi
saeA
After expaainins how, the clearing
hs1es banks tsok over the assets Of
the failed institution, guaranteed all
sspcsitsss. and prevented runs on 9th
er basks Mr.. Gage saad:
4P. Cages Statement
well, they learned another lesson
and tAey aAspted anoaAsr principle, q
prAapIs povlssa fx In tAis (ths
Fowler bill ~ the vote ana vol.
uneary compliance Of all the members
q the Clearing House association.
they auskor1zsd the clearing house st
any ums ana a. seated periods b ct
upsn tn swn voiftiou ana On tn own
account and for the informatiea Of
he clearing house committee ttntf %
have full complete and comprehensive
Investigator Of each member az ths
Association. and not only Of each msm-
hes. but ef every institution thaA car
MES the name q bank over u tha4 NJ
cleared Or represented In the cIsasins
hesse b. any clearing house bank; ana
] can teil yss a. . safe prophecy that
we are at tie end OF disastrous fafl-
urs I'm ne city Of Chicago by clearing
hsuss banks. since this regime has
eone In ! am told that Kansas CITY
has the same thing. and other cities
will eventually adopt It"
Representative Fowler. Republican.
Charles N. Fowler, Republican. of
New Jsrsey, chairman Of the house
committee sn banking and currency.
appears In the Congressional Record
with q house speech in support a his
edn which pro~ided for guarantee Of
hank Gepesita He specially answered
the asssrtioo that such q guarantee
would indsos reckless banking, say
ing:
Mr.. Chairman, we are occa sionaify
net with the statement that guarantee
o. depodb would lead 70 unsouna
banAiAg . . Gan you think Of a
banker, because hs had Insured his d.
pssits. gsing into the directors room
and saying: Gentlemen, we have In
sured our deposits to-day. Now lot N
proceed 10 make some rotten loansr
Els Il not possible that Il Will occur
- these directors that their Losses
must come cut Of their profits. cut Of
0aS rssesveA out Of their capital. and
cut of their reputatfons7 Will me,
not realize that they can get nothing
cut Of the guarantee until the last dol.
laf q their capital, surplus and
profits has been wiped out, and steck-
holders have been assessed double the
amount q THAR stoek7
Ths Bankers' Reputation
"until their populations have been
Injured, II not ruined, and possibly
some Of them have been started On the
read to state prison7 Can anybody
think that any board Of directors Of
any bank would be less solicitioua
anxious and honest and wise after
tAey haA guaranteed deposits than
they were bsfors1
81 assert again. after the most ma-
ture dsliberak3on, that II there 10 enc
reason fer insurfng life and home.
there are more than O thousand god
Teasons-msse than ten thousand COED
rsasons-wAy the depositors Of the
banhing institutions Of the United
States sAouiA be insured"
TIVE Valuable Contributions.
These I've men have offered valv>
bic cen016g0oas 70 the discvsson AZ
the proposed guarantee Of bank DE-
pests. u. Gage has Get fortk ne
psesent tread Of bankers towards q
closer waAahfulness ever al insets-
tisas WHOA aecspt the peoples meusy
In trusA - has indicated the exaee
means whereby, under q guarantee
law, banksss wsuld do 40 now they do
-Dainea1A 81 assoc1a31sa empowered
70 lssk dAAsyly into financial concerns
which seen . b departing frvm
sound msths1A
His rsssssaee 70 the John T. waisA
failure In Chicago was Doubtless -.
cause 10 Was known 20 tie country
generally. having been given wide Pub
iietty anA therefore nost likely Do a.
tsael aseeae1sn 10 an liiustratiea-
However. ehsrs Ia scarcely q local.
~ wherein bankers In iats years have
not gone uaesr toppling banks ana -.
,isia tAeo ~ gueranteeing deposia
wholly - n 1arA In order TO help IN
- muntafmw - u~nxziay AIsSrusf smA