The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1908-10-10
as a rule, Kept out Of the banking ~
nass BY the unwlllingnesa "a the puDise
10 eutrupt money " their caEe.
cassiaI BaaIslhs ssss.

70 eutruut money Y tneir care
oassful BahIkihs Best.
1 under present conditions there art
compensations IN favor Of careful and
l conservative banking There are peo'
/ pie who arc not influenced IN their ri
lection Of bank by tbe highest rate 81
Interest offered on deposits, and wbo
have their Suspicious aroused BY the
tender 81 exceptional Inducements
They know that such offers put =
strain upon the business, and they de'
libsratsly prefer 10 place their money
with banker Vho viii not gublect
himself 10 such hrain. Those deposit
crS esteem safety above all other con.
sideratIonS, and they are numerous
enough 10 exercise very wholesome
restraint upon reckless tendencies u
the business. A banker now prizes the
reputation Of doing safe business
and cannot afford 10 have a reputation
for Imprudence and speculative in'
clInations. And yet, although held ~
check by those powerful consideratiOfs,
the pressure of competition carries ths
business near the danger line even
now. There IL too much competition
for deposits, and the ambitions Of the
more yenturesotie members Of the fra
ternity, and the pace they got, puts the
whole system under strain. = :.
But what are likely 70 be the con
ditions In tile business when the public
IL no longer concerned about the man
agoment OF a bank, end all the Fc,
wards for conservatism and RESTRAINTS
upon recRlessness are remoyedi The
considerations which in the past have
tended to SafcguSrd the business and
advance its standards would be gone.
The public would care nothing for the
personality Of the banker Instead of
looking to the ilstitution which recelv
cd the deposits, the deposition would RE-
ly on an outside fund, A banker
might bet all the deposits on horse
races without the fact becoming q
matter Of any concern to his custom
ers. titf
And how would the conservative
prudent banker fare under these con.
dlhonai ThH legitimate reward for
maintaining that character would be
lost 70 him, He would get no deposits
unless be bid az high for them ~ bis
rivals, for the government would stand
behind the latter, aud assure the pub.
lie that they were just AZ safe aa be.
and tax him 10 make them 80. In
short the reckless and incompetent peo
pie, who ARE now either excluded from
the banking business. or held In check
by the dlstrust which discriminating
public feels towards them, would make
the pace to which everybody else III
the banking business would be obliged
to conform or get out Of the business,
would DsmOraIiEs Business.
The hardest competitor in any line
Of business ia the incompetent or dis
honest man who does anything to &C.
business Such people get into tlic
banking business even now, but their
number and influence for mischief
would be greatly increased II they
were backed up by unlimited credit. III
other lines there may be some question
as to the quality or service offered by
rivals, but all bankers deal In the same
kind Of money, aud II deposits were
made a joint liability, there IL no rea.
son why they should not 90 to the
bankers who Offer the greatest induce.
ments to attract them, The careful
banker would have no offset or protec-
tion against demomlizing competition
and be would be placed Ia the strange
position Of being liable for his com
petltor's obligations
All efforts to make It appear that the
interests Of bankers are on one side OF
this question and the interests OF de.
positors on the other are untrue to the
facts. Nothing that In the long run Is
harmful to the banking business, that |
puts 1t under strain and tends to low.
or Its standr Is, can be beneficial to !
depcsitors or the public. It cannot be
advantageous to the community to have |
Its savings and working capital pass
into the hands Of the venturesome
class Of bankers who viii bid most for
them. The actual waste and loss
through unwlse investments would IN
eyitably increase 1t would fall at first
on the conservative bankers and penal
ize them. Instead OF an elimination Of
the unfit, which ls the true process Of |
evolution, the tendency would be to an
elimination Of the best. Eventually the |
burden Of increasing waste would have |
to be borne by all depostors and the
whole community
oklahoma Trial Inconclusive.
The fact that the first bank failure
in Oklahoma after the law went into
effect, was followed by immediate re-
endorsement Of the depositors, proves
nothing as to the practicability Of the
system In the long run. The fact that
The State banks Of Oklahoma have
gained deposits since the system went
into operation, while national banks
within the State have lost II true,
proves nothing as to the merits Of the
system. The law itself requires that