The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-03-25

cal confidence and iaiil We have AZ
taimed b. utilization, by union by cro-
alton Of q nation. Financial confidence,
parleot and enduring can only De Sc
cured in the same way
% is by no means proposed as some
lot my correspondents think, 10 have
lam tile banks merged into one. nor
yct to have The government take them
lain over and become the responsible
banker for the whole country
When the states united 90 form a
nation they delegated certain fmc-
tions % the central government. re-
fainmg their local authority and re-
sponsbility as 20 all others. The par
|allel IS well-nigh ncriect this is ex
'actiy what it is proposed the banks
shall 90.
Tne political union means this. An
the ststes together guarantee peace.
protectiCp stability. continuity 20 ev-
erv other state. This Is exactly what
tha financial union should mean IN
the political field ratification spells or.
der. in the financial field it spells con-
ddence Neither ia the one nor IN the
other does the constituent unit sur
render its individuality. An individ.
luai bank would retain all its initiative,
responsibility reputation, incentive, as
now But BIZ delegafing certain func-
tions 20 the central government OF the
financial system il would assure itself
nnd It's clients or poeople absolute pro-
tection and stability
IN short and IN essence all the 20.
O00 banks IN the country would be-
come responsible for every hank IN the
system. No bank could fail the cred
ifurs could not lose. and knowing
They could not lose. they could never
be frightened into panic. As in the
political field that is precisely what
union Is for n our system not a state
nor even county on city may suffer
serious AID continued disorder; the
entire power OF she nation rushes to
IT'S reief and rescae With unihcatlon
Il will be The same with every bank
A bank might possibly be badly man
aged. IL might be necessary 30 wind IL
up Bur u could not fail II could not
collapse and carry a community per-
haps the whole country through shock,
and because fear OF every other iso-
lated unit Immediately becomes rifc.
down with IL.
There should meyer again be such a
thing as the failure OF bank Ia this
country. The failure OF a bank, with
loss and distress to men and women
who have trusted 1t, is disgrace 10
a civilization lskA ours as much of q
disgrace as would be the collapse OF
state No bank should be managed
| by government, but always by private
/ persons. for gain. But no bank should
fail. because all the risks OF It's failure
should be borne BY all other banks Of
1.-THE county All the banks. should be
compulsory mutual insurance tand the
lWomum would be Significantly guar
antee every hank--not the deposits
lalone. but the bank Itself Placing the
hazard here. with all banks responsl-
Die for all banks IN this Indirect way,
there would be- fewer badly managed
banks Bui even q badly or dishon-
esty managed bank cOeld not fall
II could be. should be aud would be
wound up without appreciable loss to
ITS creditors. The loss would fall upon
the insurance.
u IS not the deposition, for his own
sake the country is trying TO protect
IL is not the individual bank. for its
sake. the country Is trying to protect
llt is trying 70 protect itself from .sus
pieion, fear, panic collapse. and Il
finds this the cheapest and best way
to DO IT, With Isolation confidence Is
as strong as the faith men feel ia an
individual bank. II one OF these iso
lated units gets into trouble every
other unit at once falls under snspic
ion With miication the faith mef
fscl IN their hank viii be as strons
as the faith they feel not IN one bank
but IN 2Q.000 banks which means n
the entire country. The Significance
OF this IS what Simply that the foun