The gold leaf., 1909-01-28

uDon lust terms aud under proper
regulations private owners ofsw:smp
lands to enter upon the lands OF
Others for the purpose OF eiI'rtnal
drainage.
BANK DEPOSITS.
The last platform upon which he
incoming national administration
was elected declares for postal savings
banks, and it is not unreasonable to
presume that before that administra-
ton ends Congress will obey the
pledge OF the Republican party and
establish postal savings banks. The
national Democratic party Is like
wise conditionally pledged to postal
banks. Under present conditions
certain results may confidently be
predicted from the postal savings
bank system. Vast sums of money
in small individual accounts, much
of it now in the pockets Of the people,
will be placed in these postal banks.
as the Federal Government will
guarantee it's safety. This money will
in turn be deposited in the national
banks with the inevitable result that
a greater proportion of the cash of
the country will find its way to the
national banks in the money centres
that is in the larger cities of the
country. not one of which is in our
State. These results will tend to
drive every State bank out of busi-
ness, as State banks cannot be eX-
pected to stand the competition with
rivals having such advantages over
them, and thus a mighty impulse
will be given to Capitalization and IL
serious blow upon the independence
of the State inflicted. AS no national
banks have a capital of less than
$25, 900, there would be.danger that
many of our small towns would be
deprived of banking facilities which
they now enjoy. Our State banks
are the creatures OF our own legisla-
ton. They have blessed the State,
and especially the smaller towns.
They have aided and encouraged our
enterprises. Their record has been
one of merit and safety. In compare
son with national banks when meas
ured by assets lost or deposits in
volved in failed institutions our
State banks do not suffer. as the his
tory of the last generation shows.
Under present conditions when IL
banks solvency is suspected by other
banks and other banks are the first
to suspect it, then every bank in that
vicinity is in self defence compelled to
hoard it's cash and withhold it from
solvent borrowers for legitimate pur-
poses so as to be prepared to meet
any probable run on it caused by the
anticipated failure of the suspected
institution. With the present stock
holders liability and proper inspnc-
ton our State system is rightfully
pronounced sound and safe. Yet
something further is needed. not
merely to encourage our people to
deposit their money stead of hoard
panic, to prevent runs on solvent
banks and to insure deposits. but to
enable our banks to survive the pos
tai savings bank system. In my
Judgment the bank guaranty deposit
policy will benefit not only the banks
but the public also. All success
ful banks prosper on the money of
depoSitors. The State and Federal
Governments require security for
their deposits with banks, yet these
public deposits produce but small
part of the profits of banks. The in
dividual depOsitOr contributes the
greater part of the money from
which profits arise Every banker
ought to be willing to have these de-
posits which enrich him thoroughly
guaranteed, | realize that n Gov
ernOr who has no power to forbid or
veto harmful legislation can have
little power in advancing beneficial
legislation. He can, however, and it
is his duty to recommend to the
Legislature what he regards as wise
and helpful, leaving it rs it ought to
be left to the Judgment of the legisIa-
tors, chosen by the people for this
purpose, in their wisdom to follow or
reject his suggestion. 1t is such
recognition that / have thought
proper to mention bank deposit
guaranty. A compulsory system
is advisable but not necessary.
believe the same purpose will be ac-
complished by enacting a guaranty
law for the benefit of those banks
which desire to avail themselves OF
its provisions. Let provision be
made that when a certain per cent
of the State banks, say sixty, repre-.
senting ii certain per cent. of the
State banking capital. say fifty, shall
file with the Corporation Commis.
| sion, a request to be admitted to its
provisions, the Corporation Com
mission shall certify that fact to the
Governor. who shall proclaim the
act to be effective from and after the
first day of the ensuing July or Jan
| uary, which ever comes first, upon
all such banks and upon Others which
may thereafter file similar request
| Should the Legislature favor the
policy the details of the legislation
will uot be difficlt, and any fear that
irresponsible and unsafe banks nigh,
be organized can be allayed by ap
propriate provisions.
RAILROADS.
The railway business of the State
is so important that | deem it pro
per in this inaugural address in infor
NAL fashion to set forth some of tn,
views entertained by me and which
in public speeches often declared con
cerning railroad matters.
Every thinking man realizes tha,
railroads are necessary, that the,
bless every community they touch
that they must be profitable in orde1
to give proper service, that they de
serve fair treatment at the hands o
Legislatures, and moreover that an,
legislation that would deprive then
OF just compensation would be futil,
under the constitution. The peopl,
are willing to be charged such rates
as will pay the legitimate expenses O
every kind and character. including