The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1909-02-04

r-t ~ take the first sentence, that
IL, honest and prudent banker would
\. jared 70 make up for the dish onesty
and imprudencs of others" Is not
AZ. true Of all restrictions on banking?
M not the honest and prudent bank
!. under existing laws, snffer in order
.hal the deposition may be protected
Ann tho dishonest and imprudent? II
- had no banking laws At all, and
hankius Was done by private individ.
u.ls the honest and prudent banker
vould save the money that ne now pays
~ anforced examinations OF his bank,
apd be could at times make interest on
4 psrs Of tho money which he is now
raou,red - keep in his vault as . rigid
reserve. But because some bankers
~, not prudent, these laws place q
burden upon the good as well as upon
IL bad, It being difficult to distinguish
IL prudent banker from the imprudsnt
ons until bank actually fails.
Ia like manner i. might be said that
n III people were careful about fire,
6re insurance rates need not be as high
y they are, bu. the careful have to pay
hishsr rates than they should because
some are not careful. Life insurance
rates ore higher than would os neces-
nry 70 cover the actual risk II every.
body took care OF his health, and here,
IN the cautious are bnrdened because
some sro careless of their health. All
insurance Is open to the same objection
md vet insurance OF all forms is grow.
ine, and the insurance Of depOsitors is
growing In popularity more rapidly
than any other form of insurance-and,
fmay add, it yields the largest return
% the Investment.
Mr.. Taft complains that mo one can
ioresee the burden which, under this
system, would be imposed upon the
sound and conservative bankers OF the
country BY this obligation to make good
hsses caused by the reckless, specu-
htivs and dishonest men," etc. We
hsvs the past to guide US, and we have
rsasoo TO believe that the loss will be
leu 10 the future than 10 the past, be-
cause when banks become mutually
responsible for each others deposits
hey will b sufficiently interested in
each other to favor better regulation
nd greater restrictions.
What has Mr.. Taft done to protect
depositors from recklessness and specu-
latiou? While be refuses to protect
dspositors, he praises the Aldrich-
vrsslsnd law, which invites specula-
too and stock jobbing. In declaring
that the system proposed by the demo
erats "would remove all safeguards
against recklessness in banking" Mr..
Tan betrays an ignorance OF the sub.
iect, for the plan does not propose the
rsmoval Of sny safeguards. In fact, it
cootemplates stricter regulations OF the
hanks, and Oklahoma has already made
To banking regulations stricter.
He declares that "the only benefit
would accrue to the Spectator, who
would b delighted to enter the bank
TX business when it was certain that
necould enjoy any profit that would
accrue, while the risk would have to be
asumed BY his honest and hard-work-
ms fellow" The present banking law
requires that a certain amount OF capt
~ shall be invested in the business,
ND that law would still stand 10
snser the banking business, therefore,
- man would either have to have the
ap'tal, himoelf or secuare the conf
eeace Of men who had the
eesttAl And this capital, together
WIN the 100 per cent liability, would
" . guaranty that the stockholders
so0ld not Intentionally select careless
ouclals. Why would "speculator
= delighted to enter the banking
Nnlness" under the guaranty system:
~ y not relieved from pecuniary obli-
Ss!'on, nor Is he relieved from criminal
"so'lity. Flo would have nothing TO
ss'nroy carelessness, nor would the
sockholders have anything to gain by
Indifference,