Omaha daily bee., 1909-01-04

ADVICE 10 the bemucEatas |
VERONA. Neb.. Jan. 2-To the Editor
Of The Bee: II is unfortunate for the
democratic party Of Nebraska that a num-
Der of the members Of the Legislature are
in favor Of a bank guaranty law compelling
immediate Payment. II ever there was a
time in the history OF Nebraska that the
democrats should leave the banks clone,
It is now. 1t is a case of asking our
Legislature to serve the very best alone.
There has not been a national bank failure
in Nebraska In the last ten years. and
only a few small state bank failures, and
they have nealy paid out. Depositors are
not complaining. they have nothing to
complain OF. The only demand is for more
rigid bank examinations, and no. bankers
object to that.
The only trouble Is. that demanding too
much security might work a hardship
on the poor and the young men just start
ing. The well-to-do have no trouble Civ
ing all the security any bank examiner
would demand. The only reason that ma
tional banks have been found safer than
state banks Is that It requires $4,000 capi-
tai for a national bank and only $4,000 for
a state bank, and a national bank can
only loan equal to 10 per cent OF It's capital
to one individual or firm, while a state
bank can loan 20 per cent to one individual
but to make a state bank law same as the
national would deprive many OF our small
towns Of the benefit of a bank, as the
business of the smaller places would not
pay a profit on SIS, 900 capital.
AS long as we have no guarantee law
the reckless and unsafe will not go In or
stay I'm the banking business, because they
would not get the deposits. Results are
hat state banks raised through the panic
with failure. II we are going o have radi-
cal bank legislation, It would be best Tor
our larger state banks to surrender their
charters and organize national banks. With
a ten years record of national banks with
out / cent loss to depositors, and thai IN
GLIDING the panic year, nobody would ask
for more guarantee. If there had been no
fire in our state in the last ten years or
no death, the fire and life insurance COM
panIes would go out Of business, as nobody
would pay the premiums, and what would
our members of the legislature think OF a
fire insurance company that would rush
in and pay the policy In full without rlrst
finding out and ~disposing of the salvage
or of a life insurance company that would
nav a death loss while there was still q
chance for the man to recover. Every
wise stock holder and wise depositor wants
the active officers of a bank to keep th'
fear of a panic constantly in their minds
| TO COunIeIdCI lie SOuSNohN
brought O bear on hem to a X doupttu
and slow parer and o float this T that new
! enterprise where the success Is not assuerd
Remove all fear of panic and all though
that there is no risk as to what pam
YOU deposit with and Immediately the veal
hanks will increase their deposits and tn
| sound banks will lose, same as they nav
done in Oklahoma. The weak banks VIII
have more deposits than their standln'
/, and their capital stock would entitle then
Q to.
. II he Oklahoma plan of a guarantee ma
dome ALL that is claimed for 1t 1t will In
few wears close every safety valve OF con
servative banking and II we adopt 1t GU
banks, instead Of being all good as the,
are now. will soon be all weak and oao
We will have more banks with less capita
and less solid stockholders. The bank ina
8 would be liberal and reckless woulu BE
, the business. The proposed law Is pract
. cally the same as for one man or tirm I
own a chain of banks, one standing o
the other. The chain of banks system ND
been tried and depositors never hao III
3 confidence that they have IN the lhoiVlous
bank, where the stockholders live III vi
5 community and the bank stands on its ow
So.a,roes and goes no other banks &c
cur,tv II the state bankers would NEE
IT IN lincoln tomorrow and go into a trus
u and limit the amun OF interest each woui
nav a depositor, same as the OKlahom
8 law does, and compel a bank TO go out {
q business II they paid more. they "ouIo Z
condemned by every democratic menus
~ the legislature, yet that is what they al
"a proposing for them to do by an act {
the legislature. There IL not a partlcle I
4 difference, the one would be as bad an
"a illegal as the other. Tn one woul
"A ~ nlEn mi III
other would be a bad law-made trust ma
iby a law passed by the legislature at
siorad nv a democratic governor.
we democrats will remember Mr.. Brya
20 ard the World-Herald. 1t insisted on u
NeUberry bill making a straight reductio
~ "a per cent in freight rates. GoVern'
Rovd advocated, and asked the !eslslatu'
20 mass a bill that would be lesal ar
Constitutional making a reduction or ~ p
5 cant on carload lots that would De d pen
r fit 70 every farmer in Nebraska put u
IL world Herald came out In headlines 'Ne'
lie berry Bill or Nothing" MI Bryan all
ne advocated the unconstitutional Ne"
&c IN, they wrecked the Boyd administrati'
40 80 ,nrnsd the state over to the repubI
ms Mr.. Bryan always advocates tai
evarvthinE in sight, and then the oth
=, .tda can appeal TO the court, II they wa
20 20 protection, but who sufters ITO
s,,cb radicalism? The people paid the ext
Sre,ght Tor fifteen years un
Governor Sheldon put through the san
IN, Rovd advocated fifteen years oefo'
ye onlv BOYD asked for 20 Per cent reductb
al in ~car.lots. in the Sheldon law 10 per &c
d. Is the reduction !.
ne Now. when a democratic member Oh :
Ike legislature proposes a deIerreu 49,,
r,arantee law that would prevent to sor
=, evtent. the placing OF large deposits wi
u,aak banks, the World-Herald and n
Rrvan refuses to support it. They VIII Q
" strov. II they can, the shallenherser a
" m,nistration, same as they did the BOZ
e. ~ they can get the legislature to FOLK
them. In the campaign there was ten um
az much work done and ten times as mu
money spet to get votes for Bryan as
the democratic members OF the leslsla,u
of or Shallenberger' yet GoVerhor ~
a -. IoatalattvR ticket got BeNel