The new era., 1910-08-18
GOVERNOR SHAFROTHS MESSAGE
TO THE GENERAL ASSEMBLY

inltlstive removes the Temptation Of
the peopls b beesase U,s afAens L removes @ the in
terest of those seeking special privil-
eges; or the defeat of popular measures
not going to offer Inducements 70
members Of General Assemblies for the
defeat of bills, when the people can
and their decision be final. This law
would therefore produce purifying
and beneficial effect upon every legiss
appeal in behalf of measures must be
to reason and not to selfish motives.
As those who are not inteiliEent are
mltted. the law acts automatically as
an educational qualification. and gives
the most intelligent expression OF the
people.
The Referendum Is veto OF the
electors upon any measures passed by
the General Assembly which i s,Ie Is regard ARD
fare. AS the law Is now, no. matter
how reprehensible the Legislation may
the ful e ter@ of two years and as it is
very difficult to repeal legislation. 1t
often remains In force for decades. AS
control and govern the people. 1t is
only right and fair that II an act is
objectionable. that they should have an
Those who think that the sentiment
for, the enactment of these measures
Is local to the state of Colorado. or
partisan, are sadly mistaken. The peo-
pie of Maine. oregon. Missouri; Utah;
South Dakota. Montana. Nevada and
Oklahoma have by large ma1orities
the initiative and referendum. A great
number of cities. by vote. have made
these measures applicable to their re-
spective municipal governments.
Many recent platforms of the. Demo-
cratic and Republican parties in con-
ventions OF various states have de-
cipies of government The movement
providing for the Initiative and Refer
endum is now well under way in
In the national House of Representa-
tives against the rules of that body,
which concentrated power In the
speaker was spontaneous expression
of the representatives in behalf of the
rule of the people. The movement In
Great Britain to abolish the House Of
that it is not representative parlia-
mentary body.
endum places the government nearer
the aim Of the trainers Of ali republic
can forms of government.
The Pure Australinn Ballot.
BY reason Of the fact that the names
Of unfit candidates are PLACED with
those of re worthy and qualified nom
inees on II same party ticket, 1t Is in
the the law isho Should provide prov that the voter
Indicate each candidate for whom he
desires to vote, instead of making 1t
the bad by one vote for a party ticket:
The state is entitled to the judgment
of the voter upon the qualifications of
each candidate who seeks to conduct
the business of the state. Such law
would compel better nominations by
political, parties; would prevent the
for or unworthy of public trust: would
compel a closer inquiry, upon the part
Of the voter; s as TO- the caId candidates' dates
fore be educational in Its tendency.
The Direct Primary Law.
Under the present system OF nom'
mating candidates for office, there
grows up in every state number of
tions. They generally obtain their
power by reason of being supported
with money. and other influences OF
states. AS delegates are named and
elected by such influences. they are
often subservient to the will of few
This method Is inimical to good gov
ernment and tends to elect candidates
interests of the people. Under the Di-
rect Primary Law, each voter, freed
from the influence of any other per-
son or corporation, casts his vote for
those candidates whom he believes to
be most worthy of political preferment
The Direct Primary Law is not not an t eX-
ed 1t has ever repealed it. There are
twenty-six states of the Union now
making Direct Primary nominations.
Governor Hughes of New York. at a
public meeting few days before the
convening of the extra session of the
Legislature. which he called to enact
a Direct Primary Law. used these
words:
This is your contest, not mine. and
IL action Is postponed the issue Will
remain. [,
as you may. 1t is not my issue. 1t
Is the issue Of the people of this st state a.
government for their own purposes"
The Bank Guaranty Law.
The business of banking affects SO
many of the people, both directly and
indirectly. that it has long been con
sidered proper that safe guards should
be created and enforced in favor OF de-
positors and for the prevention of dis
turbances in financial affairs. The de-
positor has a most vital interest in the
bank. The accumulation of years may
be wiped out in single day. The
Rept Repk as and iAs Mhes
only affects the Individual depositors,
but checks Immediately credits and
community; its effect on stocks and
bonds is almost instantly felt. 1t Gre
ates pan1cs and affects the value of all
public institutions created and vested
with power to do business by the cor
porate laws of stare. Every one con-
cedes they should be regulated by law.
The bankers themselves ask for most
of the regulating statutes. In my judg-
ment the best form of regulation is
by law requiring by either bond. or
by the creation OF fund, the guar
anty Of deposits.
The most satisfactory law of this
character which l have been able to
find is the Texas Bank Guaranty Law.
1t provides that all banks incorporated
in that state should pay into a fund
OF "a iannSitS
per cent. upon the deposits held by the
banks, as guaranty for the payment
of the deposits of any failing bank.
That If the bank does not care to make
such payments. 1t may execute bond.
with good and sufficient security,
guaranteeing the payment. of its own
deposits. BY the creation of a guar
anty fund 1t establishes In the banks
confidence which prevents. or at least
modifies. acute conditions during mon
ey panics.
The reason people become panic
stricken at times is because of want of
faith In the ability of the banks to pay
the deposits. Often without reason or