Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-09-26
HILL WRITES TO BANKERS
Minnesota Railroad Mans Letter Read
at Lincoln.
BANK GUARANTY IS ONLY A FAD
People Have Been Getting Too Much
Legislation Prof. LauEhlin
Makes Address on the
Same Subject.
(From a staff Correspondent)

(fTOm a StaII correspondent
LINCOLN, Neb., Sept. 25.-(Special)-
The feature of today's session of the con-
vention of the Nebraska Bankers associs-
| tion was an address which had been sent
to the association by James ], Hill. 1t
was given out at the meeting this morning
and in it the Great Northern magnate
| pleaded with the members 60 use their
| influence to bring about cessation from
| agitation having for It's purpose still
| further legislation for the regulation OF
corporations. He declared that the bus
| mess interests Of the country require time
| and opportunity to recover from the shock
| which he asserts destructive legislation has
! given them and estimates that period of
| from five to ten years without the meeting
| of any legislative body would be a good
| thing The bank deposit guarantee PROPOSE
! ton he characterizes as bad banking and
bad morals Mr.. Hin defends the railroad
| system of the United States, declaring that
| 1t is the best and lowest capitalized sys-
| tenn In the world. He insists that the rail-
roads are hampered and threatened with
| a loss of earnings, while at the same time
| they are forced to increase their expenses.
J He says that while the barkers at the big
| political show are. creating great commo-
| tion and the nation is full Of tumult, the
! bankers can perform no greater service
| than to attempt to secure for business a
breathing spell from agitation and destruc-
! tive law-makng.
Another event of the meeting was the
address by Prof. ]. Lawrence Laughlin of
Chicago, who attacked the bank guarantee
idea. Former Governor Myron T. Her
rick Of Ohio, also spoke against the guar
antee proposition. These addresses occu-
pied practically all of the morning session.
He said in part:
Message from j. j. Hill.
You will probably express an opinion
upon the proposition that the government
| should guarantee the repayment OF bank
deposits, This threatens you directly, by
placing a premium upon reckless or dis
honest bank management and by thus in
creasing losses to such an extent that in
the future the solvent banks would be un-
| able to contribute a guarantee fund large
and bad morals. 1t is bad economies, be-
cause II proposes to put public guaran-
tee behind one, form OF capital,namely,
mating against every other form OF capital.
1t might even be called bad theology, be-
cause IT rewards the man who locks up
his talent in bank vault, leaving the man
trading % shlft for himself. And it i
individual deposits in the national banks
OF this country were 1892, 7s9 on May
| lAtns ana the lOldl money OF ali KINDS IN
the country amounts to a little, over So
100000. No guarantee could be ef-
fective against a panic that endangered
was affected by the disturbance OF a wear
ago II might easily, IN some time OF
government and wreck the entire bankine
system OF the country; but, like a life RAJ
so firmly attached 10 the ship that It could
sink when she sank. II could not assure
the safety OF single passenger in time OF
real danger.
Too Much Legislation.
The Americas people are a good dea
like the child that plants and waters a
morning TO see If II is growing. Every
session of every legislative body cripples
applying TO it brand new collection OF
regulations; some perhaps wholesome
still others destructive. Before they car
be assimilated, new set appears. We dc
not wait to discover what the natura
laws which govern the conduct OF busl
ness, as surely as the phenomena of tn,
physical world are so governed, may be
We give them no time or opportunity L
act. We heap statute on statute Withou
moment for rest or recuperation. Tn,
effect upon business has been exactly
what the process would lead us to expect
The United States has the best equipped
the most efficient, the lowest capitalized
railroad system In the world Its charg,
for service Is from one-thiId 20 a half O
that in other countries. Capital receve
approximately 207 per cent OF the grosl
earnings according TO the statistics of IN,
General Managers association Of Chicago
while labor receives 4l.6 per cent The pa,
rolls Of our railroads amount to over
! this, with millions OF dependants witt
I every community and every Industry inex
/ tricably Unidentified with rs prosperity 81
! It's misfortune, can be hampered threat
ened, deprived OF earnings at one end an,
compelled 10 increase expenses at tn
other. subjected to the turmoil OF endless