The Leon reporter. (Leon, Iowa) 1887-1930, 1909-06-03
BANK GUARANTY SURE TO COME.
And Postal Savings Banks Also,
Says Congressman Walter I.
Smith,

SmlIn.
Congressman Walter l. Smith threw a
scare into the members of Group S,
Iowa State bankers association, in his
address before their annual convention
here yesterday when he declared that
bank guaranty laws and postal savings
banks were things that were sure to
come.
Mr.. Smith was introduced just after
the discussion that followed the paper
read by 7. H. Read, of Shenandoah, on
the subject, postal Savings Banks"
previous to the reading of which Chair
man James Hunter, of Minden, in his
address, had referred to the bank guar
anty law agitation as being on the wane.
These things served only to make
greater the shock of the congressman's
bombshell. His subject was "Should
Bankers Aid in the Preparation of Pos
tai Savings Bank Bills?'
Congressman Smith said that he was
in somewhat the position of the lad
hoeing potatoes when asked how much
he got for his work and replied. 81
don't get nawthin' for the work, but
git fits if don't do it." If he did not
tell the bankers that the time had come
when they must awaken to the fact that
a strong public sentiment has arisen in
this country in favor of postal saw
ings bank law, and that such bank is
certain to come in some form, he would
expect to get what the boy feared.
ut will be the part Of wisdom, almost
of self-preservation,' said Judge Smith,
eff the bankers of this country cease
devoting all their time to fighting the
law and join in the work of securing
the very best measure possible.
'lf there is any class of men able to
comprehend the requirements of
postal savings bank law, law that
will inflict the least damage upon the
financial institutions of the country, it
is the bankers of the country. If you
leave the drawing of the measures
wholly.to the politicians, as you call
them, refusing them the assistance of
your knowledge and wisdom, the law as
finally framed will be far less accept
able to you. 1t is your province to
suggest way to prevent the draining
Of one part of the country of the cur
rency and prevent the escape of large
percentage of the capital from it's share
of responsibility for debt paying and
taxes. 1t is not merely a question of
the coming of the postal savings bank,
but Of the character of the law that
will create it. Every country in Eu-
rope has it, and the idea is uppermost
in the minds of many of the people of
this country"
Judge Smith said the guaranty plan
was meeting with such favor, not only
where it is being tried, but in almost
all of the western states, that it would
probably become general before con-
gress framed the best kind of pos
tai bank measure. If the bankers
placed themselves in the attitude of OPP
posing both measures they would simply
increase popular clamor for the enact
ment of both.
In the discussions that followed the
close of the formal program Nebraska
bankers were called upon to explain the
situation that had been caused by
the operation of the guaranty bank law
in that state.
Mr.. Eastman, of the Omaha National,
said the law had SO far developed no
disturbing influence, and that it would
require at least year before an intelli-
gent opinion could be formed, unless
the bankers were willing to take the
word of Gov. Shallenberger, who is to
tell the Nebraska bankers at their state
meeting in Hastings next week all
about it.
Cashier French, of the South Omaha
bank, said the Nebraska bankers would
not opp Sc the law and were beginning
to look with favor upon it. It's greatest
benefit, he declared, had been to secure
safer, saner inspection of the banks, and
this alone would insure against bank
failures.
This seemed to be new view OF the
matter, and quickly aroused interest.
Carl F. Kuehule of Denison, L. f. Potter
of Harlan, D. L. Heinsheimer of Glen
wood and others advocating the forma-
tion of state board of examiners under
pay of the bankers, to be composed of
the best experts to make bank e1amina-
tion something more than farce. With
such independent inspection no dis
turbance could be made by any form Of
a guaranty law in Iowa, for with the
rigid investigation of the bank directors,
there would be no chance of bank
failures. The discussions, in which
many of the delegates took part, in
Dictated a sudden wave of favor for
such an organization and the matter
was ordered to be brought to the at
tention of the state association at it's
next meeting.-Council Bluffs Nom
pariel.