The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-10-15
HIS ARGUMENT
UNSOUND
VOICE FROM cASHION ON
THE BANK GUARANTY
MATTER

Editor Leader: Criticisms OF The de-
posltors guaranty law comes FIRM
various sources, bankers conventions,
high browed professors and the like:
most Of II sounds like conversation
through a hat. j W. McNeal. how.
ever, Ike Joseph OF old, dreams
dreams aud sees visi MS and his
note OF warming needs consideration.
He proves by figures that one failure
OF the Capitol National size by a guar
anteed bank would wipe out half the
capital Of the 10000 guaranteed banks
with 100000 deposits in the state, aud
two such would close their doors and
out them ont OF business.
All this IS pr baby true, but what
would two such failures do to the uu.
guaranteed banks? Would It not crush
all the weaker ones with the celebrity
Of n cyclone? Wouid Chcre be a grease
spot left of them?
a failure or that size OF a guaranteed
bank under our banking law would be
an lmpossibility IT the state banking
authorities are onto their j-b.
The Capitol National was less bank
failure than loot. am informed
that II was examined by a national
bank examiner three days before It's
doors were closed, and that Il was long
known to be in bad condition.
am told thai the Walsh banks in
Chicago were KIN WI by the oxamiuerS
to be wildcat banks for two years be-
fore they were closed ana that the
Cross bank at Empcria. Kansas, was
an insolyent bank for i6 years.
AT the bottom OF such conditions
lies the fact that national bank ex.
aminers dare not close a rotten bank
except as last extremity for the
reason that such action skaters con.
ridence and creates a local panic and
run on the neighboring banks. On
TIE other hand. under our banking law
the more promptly the state examiner
checks up bad banking and closes the
erratic banks the more confidence Is
INSPIRED and the more solid the fonnda'
ton OF the good banks.
The evil OF the honest man being
compelled T. pay the dishonest mans
debts is no new law. Il is as old as
business history. The debts Of the
dishonest have been paid by the honest
since time began aud Will continue TO
be until dishonesty Is abolished Is
there no wrong in compelling the In.
nocent depositOrs to pay the dishonest
bankers debts? The depositcrs guar
anty law reduces this evil and the
possibility OF 1t 20 a minimum.
Before the wild cat can reach the
guaranty fund. he must wild-cat-away
IAN his own capital. and all his stock
holders double liability by that time
the state examiner ought 10 have him
L 81 What unlr III
amount of loss the guaranty fund does
actually sustain will be more man
repaid to the banking interest by the
extra business on the money brought
out OF boarding.
Here is the great overshadowinS
immutable fact IN the banking situa
tion, a fact that every banker and
student Of the situation should paste
In his hat aud rcaearse TO himself
nine times a day.
After our holiday experience Of last
fall the people will not continue e de-
rcslt their money IN banks without
guaranty.
I am acquainted With Sam jones aud
Bili SmEth Who sold their crops ias'
tall and put their money To the BANK
aud thea only grlnDed when the,
couldn't got II out, All the time they
we're wearing that grin a firnn conYlc
tion aud resolution was sc,tllug dowr
through thcir minds. hearts. consci
rhcc. Iangs. liver diaphragm to th'
Isrles oS THEN DO is,, aud this fan ihsil
fiboNet Docs Under Guaranty or undel
tgNpand N4i.-
Public confidence Is tsc absolutely
essential element aHd basis ~ 20,
banking business Jnis Is established
ana nl9intained by tle bankers 10 varl
Gus wass. Sometimes by plate gias'
and roseWOod aud marSle aud ela
1mcads Dnd Jewels. aud gliucrlng aee
9pste ksatioue public ilspias Of oPnlenc'
aud cAtraNasaut living. Yhis + i'0n be
9n,v o.. ~eRoMc oUiK.. =. = !" -: