Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1908-10-08

banks new, % far as concerns sspicn
ags naintaaAsd by one over another
TAe inpsstant difference. however
wsoaA bs eAas dsposasess wvuad Ase b
subject b ne Annoying. afsen disas
er0uA Delays IN sstfing sAsir meney
which now ehsy experience wines
banks fall
Bs4 that fewer failures wvuiA 90
cur surely would be ooe sf ne 70
suits q sucA q law. Evezyens knows
mat many runs are precpitated or
BANKS which are absolutely sound
Many q man. faithful. safe. conserva
dve. eonscisntious In caring for ths
money of his aepositors. has suffered
runs caused by some rumor vtartsd
through malice Many an honesi
banker has had his heart broken by
senssless runs. and has groaned n
spirit as he realised that gross injus
dee has been done a reward for ear
nest and able keeping Of the trust 70
posed In him By his depositorA
Ths Barring Failure.
whea Q dozen years ago, Barring
Brothers, q London. suspended, Il was
due 30 that very espionage By ethes
bankers % which Mr.. Gage refera
The Barings had embarked I'm many
South American enterprises, some Of
which were manifestly unsafe.
The governors % the Bank OF Eng.
land. sensing the danger, refused %
accept securities backed By them m
basis for the issuance Of bank notes
under the custom Of that country; that
action never has been adversely erist
cised In any country. although it haa
been discussed ever since TIE world
over.
Modern business h conducted on the
basis fer the issuance of bank notes
tie actual money passes from hand %
hand.
Modern @yssem OF Credits.
You 20 90 your bank with O bundle
of checks and aracss ana asDesif them
% your sReanA AgalAst that account
thus opsAaA ysa azAw checkA TAsy
paes into the weFad of business, are
accepted at facs value, and circu.
late vlrtuAlly a does gold, silver and
currency. II you pay your bdlk In
eheckA oeesn y0u pass through weeks
at q time whea yeu have only O sx1fss
ef leoes Change In your pochet foI
greet car fare ana the small thing
you need from day 10 day costing tos
htkje 10 bother 10 draw O CHECK.
| "a cheek cancelled In 0 vouehse,'
has become q maxim IN the business
world.
Complications OF the system.
This compiicates business ana fsrces
all banks b associate themselves n
clearing houses. and probably the pnb
Ne would os amased were they d
know at times bow sharply the clear
ing house Dmm3ttss hnpks inao meth
DDS employed By 10 memner
IN the panic that began last OxsobeE
funds were carried from bank % bank
taken ostsnntiossU throuph TN from
doors, that dspositors misot know tAa
ether banks believed IN he spundnssl
Of the fnae1sufion which had been a
tackled By Q run, and performed al
most every essential Of the guazante,
system.
whyf
Simply became the modern business
system In % eomphcatsd and 20 htti,
actual m0asy passes current that eacs
bank muse know that the others ar,
properly safeguarding themselves ant
alao thaG they are permitting the car
rytng of accounts by depositpss who's,
paper may always bs depended On a
worth facs value
Beneath the surasce.
So beneath the surfaos, one coult
witness the clearing house associa
tions examining collateral, securftis'
ana asseea and often serving motifs
On q gwen bank that the association
win require some change In metbod
on penalty Of refusal longer 20 clsal
for that bank.
Banks Out OF the Association.
How about banks not In the associa
don't Many perfectly sound banks ar,
not directly In the clearing house
They clear through another banl
which does belong.
Precisely shs same rule apples b
them. foR. when need arises. tise asso
citation serves notice on the member
bank which clears for the non-asso
citation bana as to what will have 3,
be done; and II is done promptly, too
in every instance.
Bank.Book Should BE worth Face.
The essence Of the guarantee plan A
that q bank book should be worth ID
face always- Az entry IN O pass booa
should not constitute rle assumption
of risk hy the depositor and the giv
Ing of wade latitude TO the bankeE
Such enzy should be recognized n
tunf as aceual an asset IN q bank nOts
Also, psspeS arrangements must b
made for ths continued espionage q
banks By ether banks.
Lastly, and quits a. important
banking iaws must be enforced; owes
esrtiheatien must be stopped: isaAinl
AZ fp7ds IN naAenai banks @ obvtous
" spesuisalvs schemes must cease
ana eehee sseoFms must be wrought q
invest he banning system - On
country w4sA nat comelste con6Asna
which, n Induced wouM put q sep.
te all neFvoumass By dspositers.
esssssssssssssssssseesess'
NO ecARgs THie YEAR.