The Columbus journal. (Columbus, Neb.) 1874-1911, 1909-01-13
SHALLENBERGER'SFIRST MESSAGE
Urges Passage Of Bank Guarantee Law and Makes Other Recon-
mendatons and Suggestions

| Following is the principal subjects
touched upon by Governor Shallenber-
ger in his first message to TIE Nebras-
ka legislature: .
To the senate and house OF representa-
tives Of the thirty-first session Of the Ne
braska legislation: 1 congratulate you
| upon being called to serve in your legis-
lative capacity at time when the state
is enjoying general prosperity. Nature
has been kind and her yield bountiful.
| Our people are industrious and the de-
mand and prices for their products salts
| factory. Our population is not dense,
| probably less than one and one-half mil
lions of people dwell within our borders.
| A study of the records Of our bureau Of
| statistics will show how marvellous have
| been the achievements Of these later
| years. So rich our soil, SO matches our
| climate, SO wonderful the industry OF our
| people that here upon Nebraska soil,
| American civilization in its highest devel-
| opment piles up each year n larger sur
plus Of useful products than a like num-
Der Of people can produce upon any
| other spot on earth.
| With a clearness Of vision and under
standing as to the purposes and possibiii-
ties Of legislative enactment, a steadfast
| and successful people will not expect OF
you impossible things or unreasonable
laws. Having wrung year after year.
| great riches from a generous SOIL, they
F! now know that they can compel prosper
| ity to abide with them always. They Will
| however. expect Of the party, whose
| members control this senate and the
house, the specific legislation pledged IN
| the platform upon which you were
| elected.
| Governor Sheldon has detailed to you
| the result of his administration Of state
| affairs. and you have listened to his rec
concentrations. 1 urge that you give
| .,rnest and careful consideration to all
that he has said.
! l shall briefly call your attention 10
legislation, the prospect and hope OF
| which, in my opinion. has brought ABOUT
/ this change in the control OF the eNecu-
J tive and legislative departments OF state
| government 1t is first to be noted tha'
no new or radical legislation is asked for.
| Every suggestion is but to amend, cor
rect. or improve some existing law.
As n general rule. we already have 100
| MANY laws incumberinG our statute
| books Many are good. some ihperiec''
q few bad The good should be let alone
the fmperfections cured. the bad repeaie''
| What is needed. in my judgment, Is al
| honest and fearless enforcement OF the
,,ws that we now have, rather than a
| constant cry for new laws. and new laws
| as an excuse for inaction and deaS.
| III. matters to which 1 wish to call
| xour especial attention are not numerous
but I believe them to be important.
I shall present them to You under sepa-
rate heads.
| suooestions as to improvements In our
| Banking Law.
| Andrew Carnegie has said, america
has the worst banking system In the
| world, I scarcely think the facts war
| rant such a statement, but will venture
the opinion that we have not the oes'
| system that it is possible for us to obtain
| and nothing but the best should De gooo
| enough for the people Of Nebraska. our
| present law is very much In ADVANCE III
| all that pertains to safe and proper bank
! ing to the law which proceeded II. n"
| one will venture to maintain that the one
| now in force, is perfect, therefore. we
are warranted in asking for still further
| improv ement. The primary purpose Tor
| the establishment Of banks so far as the
| public is concerned, is first that the peo-
| pie shall have a safe place 10 deposit
their money, and second that those VINO
| pee1 them may conveniently obtain fund
| unon proper security after the money
| shall have been gathered together by the
| banking corporation.
! The ideal system of banking Will guar
| antee to depositors the absolute certain
ty of the return of every dollar deposit
| ed and this will insure the greatest pos
, sib!e volume Of loanable funds in banks
| for the needs Of business. The state and
nation should see to it that every safe
| guard shall be provided for the security
| of the depositor since they permit and
authorize the receiving of deposits under
the sanction of 4 charter granted by the
| state.
From time to time. these guarantees
have been increased until losses to de-
| positors are rare indeed. The report of
| the cornntroller of the currency for 1908
| shows that n tax of one twcnty-siXth of
/ one per cent levied upon the deposits In
national banks during the forty-five years
that that system has been in existence
would have raised sufficient sum SO that
NO person, who had trusted his money to
a national bank, would have lost a cent.
A study of the figures of our own state
banking department shows even more
satisfactory condition. Only during the
last eight years. has the law provided for
| a complete report from receivers of failed
banks During this period a tax Of less
| than one thirtieth of one per cent levied
| upon the deposits in our state banks
| would have raised a sum sufficient to
have insured every depositOr against any
possible loss
With these facts before us, I do not
hesitate to say that it is reflection
upon our American civilization and bust
ness methods to longer fail to provide an
insurance guaranty fund and banking
/! law, which will make every dollar de-
posted in 4 Nebraska bank absolutely
sure of being returned to its lawful
| owner upon demand. Certain deposits are
, now secured in state and national banks
| by safe guards in addition to the guar
antics which the law exacts Of the bank
er to protect his individual depositor.
The county. the state and the nation hav-
Ing found by experience that the secur-
tiles which the law provides for the Or
binary jepositor are at times insufficient
and therefore required that the banks
| shall at their own expense deposit bonds
as additional security to protect them
! against any possibility of loss