The Detroit times., 1911-12-08

tina, develop in a financial crisis. or ex-
posed TO the manipulation OF rogues III
would be distinctly more prohtapie ana
absolutely safe: the banks 81 a
inRs banks except for better latitude
for loaning, so as 10 meet the needs or
the commercial community, would De
protected against runs Just as tne
10 share the earnings from their dis
counts with the depositoTs by paying
liberal interest while the cIearihs
banks would be absolutely safe and
always in a condition to pay back the
aepcsitor dollar for dollar. In the
dual bank OF deposit and discount busl-
ness men share the risk and get none
or very little of the earnings paying
addition 10 maintaining considerable
balances. usually not interest pearlns'
In order 90 procure IL. where the com :
munity maintains bat one bank. TWO
departments could De arranged 10 con-
form TO the plan.
would Safeguard Funds.
IL may be said that this would not
offer any great inducemsut 10 any cor
poration TO engage in banking busi-
ness. The same arguments were prob
ably used 80 years ago when the saw
ings hanks began to smash, but way
was found TO Insure safety for savings
funds and render them eligible for the
uses OF the borrowing community. IL
banks II is far more necessary that
the funds Of the people OF today should
be safeguarded and that our financial
condition should be solidihed than that
any bank or any group OF bankers
should make money. The vast infia-
ton OF the trust companies shows the
extent to which other peoples money
Is used speculatively Money comes in
a flood Ii must have reservoirs, but
the re is no reason why these reservoirs
should not be safe from leakage. II
a state can charter a bank II can regu-
latc bank, Just as IL has regulated
the savings banks and as IL has been
trying TO regulate the insurance COM
panies The banking system outlined
above is feasible, reasonable and right
IA principle IL also preserves US from
the well-founded perils that may de-
velop from o central banking system.
Ii relieves the demand for currency,
because the clearings offset each other
as a rule so equitably as to minimize
The Individual must always play his
Just part IL things are to be done fair
liz in this world. IL is regrettable that
so shrewd man as Mr.. Perkins should
make a stand against this. just as the
Socialists do. / am a Democrat d De-
Iieve in liberty. equality and opportu-
nifty. not fraternity or paternalism
When / argue for economic efficiency
and the punishment OF drones. people
saw: "Oh. but you will destroy the
beauty Of loyalty and self-sacrihce In
other words destroy the right OF the
idler 10 impose upon society. or the
ambitious TO rise on the sunerings OF
others The plain truth IL that MOTH
ing would produce better world and
better business than the establishment
of exact selhshness where each indi-
yidual did his duty 10 himself alone.
where each worker did an honest days
roll and each merchant or manufac-
turer gave an honest article for an
honest dollar. IL would automatically
adjust society, sweep away the lazy
dreams OF Socialism, and produce and
preserve that perfect democracy under
which alone men can he free and
equal
Norman f. Mack, chairman OF the
national committee. spoke
briefly. following Mr.. Seitz. Referring
to the outcome OF the Mcnamara case
he said:
The events which have transpired
in Los Angeles in the past week are
as important as any in our history.
Now we know beyond question that
our form of government is able and
capable OF meeting lawlessness. | be-
lieve that nothing more important has
happened I'm the last 100 years In
meeting the evils that have grown