Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1908-08-28

$3.50 U~Hho duu uOCVme udllOud
banks
His solicitude for the state bank
will hardly impress the country, fol
he is quite Indifferent to states and
their reserved rights when he deals
with other subjects. When Congress
Is in the control of those who want
to legislate for the whole people
rather than for the few 1t will not
be difficult to frame a law under
which state banks can avail them
selves of the advantages of a feder
al law guaranteeing the deposits Of
national banks, just as it was easy
In Oklahoma to frame law which
permitted national banks to TAKE
advantage Of the state guaranty sys
tenn, 1t will also be easy to enact
federal law which will permit nat
ional banks to avail themselves Of
state guaranty systems until nat
ional system can be secured. Attor
ney Gen. Bonaparteis ruling, wheth
er it correctly interprets the law
Or not, would not bring such con
sternation as it does If the republi
can candidate favored law allowing
national banks to take advantage ol
state systems for the protection ol
depositors, but Mr.. Taft's hostility tc
all guaranty systems is shown in the
objection which he offers:
"The proposition Is to tax the hon
est and prudent banker to make III
for the dishonesty and imprudence ol
others. No one can forsee the burder
which under this system would bs i'm
posed upon the sound and conserva
tive bankers of the country by this
obligation to make good the losses
caused by the reckless speculative
and dishonest men who would be en-
abled to secure deposits under such
a system on the faith Of the propos
ed insurance; as in its present shape
the proposal would remove all safe
guards against recklessness in bank
ing, and the chief, and in the end
probably the only. benefit would &C
crue to the speculator, who woulC
be delighted to enter the banking bus
mess when it was certain that he
could enjoy any profit that would &c
crue, while the risk would have tt
be assumed by his honest and nara
working fellow
He even pictures dire disaster ano
declares that "if the proposal were
adopted exactly as the democratic
platform suggests, it would bring I'M
whole banking system of the country
down in ruin.'
Al an afterthought he suggests
that a voluntary system might be tol
Grated, but as his objections to
compulsory system apply just as wei
to a voluntary system we may fairi.
count him against all legislation ina
has for its object the guaranty o
depositors.
As Mr. Taft's argument is that pre-
sented by the big banks which pu
their own selfish interests above IN
welfare of the depositors and TN
safety Of the community, it is WORT
while to answre the several propos'
tions which he advances.
Let us take the first sentence, tha
"the honest and prudent banker woul
be taxed to make up for the dis
honesty and imprudence of others
Is not this true of all restrictions o.
banking? Does not the honest an
prudent banker under existing Jaw
suffer in order that the depositor md
be protected from the dishonest an
imprudent? If we had no bankih
laws at all, and banking was don
by private individuals, the homes
and prudent banker would save Tn
money that he now pays for enloi'
ed examinations Of his bank, an
be could at times make interest o
mart of the money whichhe is nov
required to keep in his vault as
rigid reserve. But because some ban
ers are not prudent, these laws plac
a burden upon the good as wen a
uuon the bad, it being difficult
distinguish the prudent banker froi
thee imprudent one until a bank a.
tuaIly fails.
In like manner 1t might be sal
that Il all people were careful aoor
fire. fire insurance rates need ne
lbe as high as they are, but the car
Iful have to pay higher rates ina
they should because some are ne
careful. Lite insurance rates 81
higher than would be necessary
cover the actual risk II everyooc
took care Of his health, and her
too, the cautious are burdened 0
..,,,. .or,o ara careless Of he