The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1909-01-28
ELlENsHURc KlTTIrAs County, WAsH JANUARY 2s 1000

IN the nature of enforced insurance to
raise guaranty fund to pay the de-
poS'tors of any bank which fail"
Ana then he questions the right of
the government to enact such a law.
saying:
How state banks can be included In
such scheme under the constitution Is
leit IN the twilight zone of state rights
ana federalism so frequently dimming
Inc meaning and purpose of the prom.
ises OF the platform. If they come in
under such system, they must neees-
sarlly be brought within the closest
national control, and so they must
really cease to be state banks and be
come national banks
His soicitude for the state bank will
hardly Impress the country, for he is
quite Indifferent to states and their
reserved rights when he deals with
other subjects When Congress is in
the control OF those who want to legis.
late for the whole people rather than
Tor the few, it will not be difficult to
frame law under which state banks
can avail themselves Of the advantage
OF federal law guaranteeing the de-
posts of national banks, Just as it was
easy in Oklahoma to frame law which
permitted national banks to take ad-
vantage OF the state guaranty system
IL will also be easy to enact Il federal
law which will permit national banks
TO av.il themselves of state guaranty
system until Il national system can be
secured. Attorney General Bonaparte's
ruling, whether it correctly interprets
the law or not, would not bring such
CONSERVATION as it does if the republ.
can favored a law allowing national
bank To take advantage of state sys-
tens for the protection of depositors,
but Mr.. Tafts hospitality to all guar
anty systems is shown in the objection
which he offers:
"The proposition is to tax the honest
and prudent banker to make up for the
dishonesty and imprudence of others.
No one can forsee the burden which,
under this system, would be imposed
upon the sound and conservative bank.
er5 of the country by this obligation to
make good the losses caused by the
reckless, speculative and dishonest
men, who would be enabled to secure
faith Of the proposed insurance; as in
its present shape, the proposal would
remove all safeguards against reckless
ness in banking, aud tie chief and in
the end, probably the only benefit
would accrue to the speculator, who
would be delighted to enter the bank.
Ing business when it was certain that
he could enjoy any profit that would
accrue, while the risk would have to be
assumed by his honest and hard working
fellow"
He even pictures dire disaster and
declares that ''is the proposal were
adopted exactly 4, the democratic plat
form suggests, it would bring the whole
banking system Of the country down in
ruin
Asan afterthought, he suggests that
Il voluntary system might be tolerated,
but a, his objections to a compulsory
system apply Just as well to voluntary
system we may fairly count him against
ali legislation which has for its object
the guaranty Of deposltors.
\, Mr. Taft's argument is that pre-
scented by The big banks which put
their own selfish interests above the
welfare Of the depostors and the safety
of the community, it it worth while to
answer the several propositions which
he advances.
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