The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1908-10-31

espionage, ana the Farmers and Trad
ers would have conducted safe and
sane banking business or been put out
Of business long ago. With it's surren-
der of its charter, there would have
been, just as in Oklahoma, immediate
payment in full Of all depositors, and
no man would have lost one cent. But
our banking system has no guarantee.
For the safety Of the depositors' money
there is absolutely no provision beyond
the personal integrity and business ca
paclty of the bankers. OF these there
are thousands, but there are also
weaker ones and it is these that make
the panics. 1t was Morse and HeinZe
and the others with their bank looting
that last year precipitated the panic
Of WHICH the country is still the vic
tim. 1t is such bankers all over the
nation that dissipate the money of
helpless depOsitors and are a constant
menace to prosperity. 1t is a weak
system that permits operations by
bank pirates and lOOters of deposits,
and 1t ought to be remedied.
What aggraVateS the menace is
that there is another spot in the sys-
tenn that is perilously weak. 1t is the
fact that confidence is the chief asset
in banking, and confidence is a. fitful
the fearsome reliance. Thus, the de-
posits in Oregon banks on the 23rd of
September were $7560OO00 The actual
cash in the bank vaults. as shown
by the official statements, was but S12,-
100000. That is to say, but one-sixth
OF the money was actually in the
banks, and the balance, aggregatins
$62,9OO,O00 was loaned out on time notes
running from one day to six months.
Yet the whole sum of $75,6OO, 900. in eff
rect borrowed by the banks was sub
Ject to call at any moment and that
with but one sixth of the money on
hand to buy it. The same is true of
the natlon, IN which at all times the
aggregate of the deposits is five or six
times as great as the available money.
Inc whole banking system thus rests
on theoretical confidence between tho
bankeF and the depositor which in the
DRY causes the banker to have conf
oence that the depositor will not call
1or MS money and gives the depositor
commence that when he does call for
MS money he will get it. Tins the
whole financial fabric is a huge invart-
eu pyramid, resting on it's apex. and
capable OF being blown over by the
shshtest summer breeze The Morse
crowd blew it over last year. and
three months with every bank in tho
country actually suspended was the
consequence. Confidence as if ALWAYS
does, vanished at the first sigma, If
uanger. Depositors hurriedlv called
lor their deposits, as they ALWAYS IN
"heh tnere Is menace, and the hank
.ioiiudvs alone saved the country
from financial crash that Womb NV
shaken the foundations of tho e.r+h
Gnu aiong with this weakness. there
morses. The shameful revelations
" criirllnal court in New York tell
uaiiy the rottenness of Morse and his
oeposlt looters. The lost denosits tho
crippled businesses the IMPOVERISHED
ueposltors and the other tragedies of
ne recounted in the news from Ia
'i ehoe Tell the tale of the Farmers
'iio 1raders National. A guarantee of
deposits. provided for bv sIieb+ +ov
Oh the banks would eliminata tho die
iionest banker menace. With Them
eliminated fear of banks Woul1 he
gone and with the certainty that all
ueposlts would be paid. there would he
no oank runs, and the country would
see the end of bank panics. Such is
tne plan of Mr.. Bryan, and it makes
MS election desirable, because it would
END panics 1t is opposed by Mr.. Taft
whose election means q continu.+ion