The Leon reporter. (Leon, Iowa) 1887-1930, 1910-09-01

VI Ilell DuSluSSS, anu Will NOucu LOT
much cleaner banking, when these
competent men, many of whom l have
served with on committees, interest
themselves in this matter They are
much better informed as to the banks
and their management than it is pos
sible for a few men to be, on whom
all the responsibility and duty of in
veStigatiOn now devolves.
The question has been frequently
dicussed of late
The item of the cost of this insur-
ance is conceded to be so compare
lively slight that our opponents do
not usually argue from that stand
point.
The comptroller's report shows that
the loss is about one-LH entieth of one
per cent on the average yearly de-
posts of national banks since they
have been in existence and for the
last ten years it has been very much
less, so the loss is but nominal.
| do not like to pay for other peo-
pies deficiencies and crime, but do
we not do so and do it willingly when
we patronize fire, burglary, fidelity
and numerous other forms of insur-
''iiNS w Oulu loI tuS Ddllhcl QCClluS
or decrease the line of credit to the
merchants who refused to insure
against fire because he was opposed
TO paying for the carelessness and
crime of others?
We must look at both sides of the
ledger and cut out all sentiment and
nonsense and not depend so much on
the length of our pedigree.
We must not forget that such men
as Bigelow, Stensland, Croker and
many others, up to short time ago,
could outshine the most of us in that
respect, and that now and then our
depositors remind us of this at time
when we try to convince them that
they are perfectly safe and call their
attention to our reputation and stand
ing in the community. We can not
depend too much on our regulations,
as we have witnessed time and time
again that general confidence declines
more rapidly than Wall Street stocks
when there is something special do
ing.
Runs are common even among the
largest and the oldest banks, and only
a word from an evil disposed person
NlehouC lCPuldIlOl Sol, dI CeIldlu
times, interfere materially with
banks career and expectations. What
we need and must have at all times
in banking is confidence and stability.
1t is everything to the banker and
we can not have it as long as we
are subject to such performances as
we had in 1907. At that time we
were politely told that we could shift
for ourselves and our correspondents
would care for our funds. l do not
criticize the big banker in this, be-
cause he, like everyone else, had lost
confidence in everything and was
obliged to look out for himself re-
CARELESS of results.
We were all to blame, and yet it
is not our fault, but the fault of our
banking system.
Our banks were suddenly trans
formed into boarding institutions and
thereby created more mischief in a
few hours to the commerce of the
country than can be repaired in years.
The present is an age of insurance
and security. We, as bankers, de-
mand the highest recommendations
from our borrowers and employees
This is right and it is also right and
proper to grant the depositor the
same security that the government
and state demand of us, especially
when it is to our interest to do SO
Is it surprising that the depositor
loses confidence when the only privi-
lege granted to him for safety is to
examine our published statements
which, in almost every instance in
unsound banks, failed to state the
truth? Often, after a large failure,
the bank examiners or their superiors
admit that the bank was insolvent
long before, but for fear of general
loss of confidence they did not act as
provided by law. Is it surprising that
the depositor should lose confidence
when the truth is withheld and he is
deceived SO that he continues to in
crease his deposit while the condition
OF such banks have been covered up
by the public officials?
The wealth, safety and reputation
of conservative banks are to-day too
much dependent on the movements of
the unprincipled stock jobbery an
nexes to the great banking institu-
lions.
We must have something that will
disconnect the affairs of the legiti-
mate banker from these. With the
insurance of deposits such men as
Morse, Heinze and others will not be
permitted by bank examiners and
public officials to cover up their pecu-
lations of long standing for fear of
producing a panic. With the insur-
ance of deposits the career of this
class of banks would be shorter.
There would be every inducement to
expose their condition as soon as their
banking methods were discovered and
their power and influence for harm
to commerce in general would be
greatly diminished
When proposition is favored by
probably one-half of the bankers and
practically all of their customers, is it
wise to act as the railroads did, who
now appreciate the fact that they
were too slow to act and remedy their
faults and so compelled the people to
act?
Insurance of deposits can not be
downed because of the individual
banker who places himself, through
pride in his strength, personality and