The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1909-02-11

"a'e" prior claim to consideration. |,
VIC estimate the average number n,
stockholders OF each bank at seventy.
h'e-and that Is u liveral estimate
tue TOTAL number Of stockholders would
only be million and half. mr. on..
.en'h as many as there are depositors
ne stockhoder is not compelled to
ouy stock, while the depositor is com.
pelied to use the banks, both fer his
own saRe and for the sake of the com
munlty for only 10y using the bank, can
hs keep his money part of the circu.
lating Medium. The guaranty law.
therefore, brings the greatest good to
the greatest mber, AS well as those
VINO nave the greater equity upon their
side.
mere is another reason why the
claim OF the depositor is superior u the
claim OF the stock holder. The stock
holder has voice in the selection OF
the bank officials: the dspositor has not
II any one must lose, therefore. as the
result of bad management, it ought to
DE the stakeholder rather than the dc.
positor. And, | venture TO ask, If the
BANKERS will not trust each other, why
should they expect the depositors to
trust the banks?
And there is still another advantage:
by drawing money from hiding and by
preventing runs on banks tho guarsn.
teed bank will greatly lessen the nee
essity for on emergency currency
We are fortunate, however, in that
we are not compelled to choose between
justice to The depositor and Justice to
the stock holder, Tor, as has been shown
before, the plan which We propose not
only does Justice to both, but brings
advantage to both. More than that,
the plan which we propose protects the
banker-and it is his only protection
against the establishment OF govern
ment bank, with indefinite encroach-
ments upon the bankers business
| With the guaranteed bank established
| government saving banks would only
be needed in the towns and villages
where there were no guaranteed banks.
II we had to choose between the in
terests Of the bank and the interests OF
the community, we should be compete d
TO protect the interests OF the commun-
/ ity first: but here, too, we are fortunate
for we are not driven to this alterna-
tive. That which protects the com
munity protects the bank also, Tor
when there are several banks In the
community, the failure Of one often
causes the run upon the others, ana
the insolvency Of one bank is such a
menace to the solvency OF others that
the solvent banks often join together
and assume the liabilities OF the sol
vent one for their own protection. As
an illustration OF this, | point to the
action OF the Chicago banks in assuni-
ing the liabilities OF the Walsh banks
at a heavy loss to themselves.
There is another advantage when
the guaranty Of depo5itora brings 10
the banks-it protects the reserves ue'
nositsd on other banks. During the
manic last fall the reserves caused ihos'
of The trouble. The small banks want
cd 10 withdraw their reserves nom the
CITY banks and the big banks 10 'ne
ci,ies we're not prepared to meet the
strain. With deposits snaranCeeu'
there would be DO runs on local oapA9
.,d m sudden withdrawal OF reserves
have selected the capital OF inc
.,a,e NJ Kansas as the most appropriate
n,ace for The delivery of speech upo"
,his .ubiecq, because your neighoor up
-, the south has has been pioneer III
mi. reform. Her plan, as you KNOW
hoe heen such a signal success 'haO oo'
,osi,e have been drawn across the inv
tron vour state into Oklahoma Inc
alarm caused by this invasion oil YOU
bankine territory caused your so'e' L. Il
;nclnds IN his call for spec'a
session a recommendation OF 'no n, pr,
sace Of the law similar to that VI OA ~
Iaaa VIE the legislature 'ne'
however, tue Influence o. '"e Ia .