The Randall County news. (Canyon City, Tex.) 1908-1926, 1909-11-05
NEBRASKA AND TEXAS
BANK GUARANTY LAWS
CATO SELLS SAYS DECISION IS NOT
APPLICABLE IN TEXAS.
Discussed Benefits Of Guaranty System and
Criticisss Nebraska Ruling as
Infringement on Rights.

CleDurne, lex, Oct 29.-J udRe
Cato Sells has received several
letters from college students,
asking for information about the
guaranty law and the recent
Nebraska decision. To the first
letter received he replied as fol-
lows:
Cleburne, Tex, Oct. 26-I have
your recent letter requesting in
formation for college debate pur-
poses, concerning bank guaranty
and answering same, herewith
inclose you a copy of speech
made by me before the Texas
State Bankers Association some
thing like eighteen months since.
If | were making a speech now
It would be the same in Su bstance
with upto-date additions.
| am very much of the opinion
that guaranty of bank deposits
is desirable from every stand
point. Certainly it will be a
source of security and satisfac-
tion to the depositor. The eff
feet can not be otherwise than
10 bring into circulation a large
volume of idle money which will
be greatly helpful to the entire
community. 1t will be service
able to the banker, in that it will
largely increase deposits, and
above all. relieve him of the an
Xiety frequently incident to dis
turbed financial condition. 1t
will have a strong tendency to
prevent runs on all banks, wheth-
er State or National, since it will
inspire greater confidence in
banks generally.
A very important factor to be
considered in connection with a
bank guaranty law is the fact
that an effective statue of this
character necessarily involves as
part of it very stringent regu-
lation and control features. Such
a statue alone has a decided tend
ency to bring about better bank
ing conditions in that it will pre-
vent reckless banking and soon
drive out of the business those
who are either willfully or neg
ligently slack in a strict obedi-
ance to its requirements.
| have recently read the opin-
ion of the Federal Circuit Court
declaring the Nebraska guaranty
law unconstitutional and | have
great faith that the United States
Supreme Court will reverse this
decision. Certainly it is not a
tenable construction to the Con
Stitution.
Obviously there are many an
alogous circumstances iustifying
the principles involved in the
guaranty law.
The principle is firmly estab-
lished in our government that it
is constitutional to tax the child
less for the support of the pub
lie schools; it is well-settled
principle of law that it is consti-
tutional to tax the thrifty for the
support of the INDECENT poor; to
tax the whole people, either as a
State or Nation, to pay pensions
for soldiers
1t is constitutional to tax the
childless to support the public
schools because it is a safeguard
against ignorance; it is constitu-
tional to'frHt from the thrifty to
support the poor because it is an
obligation necessary for univer-
sal self-protection, and it is con
stitutional to tax all the people
to create pension fund for pat
riotic public service.
Neither the school tax, the
poor fund tax, nor the pension
tax is in every instance a direct
benefit to the citizen burdened
with it, but in each case it is for
the public welfare and as such