The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1911-01-14
SANE BANKING.


some New York banks. The question
is asked ii those failures will not
spread into the districts of the coun.
try and cause a general distrust that
will result dsastrously When New
York banks begin to go under a wide
spread alarm generally follows. At
this particular time, therefore, such
feeling becoming general throughout
the United States would do an meal
culable amount of damage. After all,
financial flurries reflect psycholo-
gical phase of the public mind; and IL
the public is forewarned that a sup
posed harm is only little bad condi.
ton, like paper is only little piece
of paper as it flutters under the
heels of a fractions horse, little harm
will follow and the country will go
forward unmindful of the matter.
So the failure of two banks in New
York city is not of great enough sig.
nificance to cause any general appre.
henson. The banks involved were
creatures of a peculiar condition
which will by no means spread to the
banks of general stability. The Car.
negie Trust company was in no way
connected with any big institutions
such as the name Carnegie would in
dictate. The sphere of influence of
the bank was not extensive, and even
those allied banks are now reported
to be in such good condition that no
unsettling of financial conditions in
their business viii take place.
The bankers of Kew York City are
not all of that mrid type that
breathes bloody murder whenever
they want to, although certain unin.
formed papers thinks that they do,
Bankers are far more anxious to have
good times, easy money and general
confidence than any other class of
people They are banded together for
the mutual protection of the financial
conditions of the country. One bank
falling brings sympathetic movement
from the bankers to avert any further
spread of the trouble. Even to the
extent of paying the losses of other
banks are these bankers interested in
maintaining the credit of the banks
as whole. We all recognize now that
financial institutions of that sort are
the backbone of our general prosper
ity.
One splendid thing which the banks
can do, in these days. is to avert, to
large extent, overconfidence and in
.judicious investment. This power
over the unwise investor and the wild
cat proposition which fleece the peo-
pie so generally, becomes greater, too,
with the increase in the general dis
position OF the people to deposit their
money. The postal savings banks, for
that very reason, will add TO the gen.
eral welfare of the community in that
they will draw in the surplus money
and put it where it is safer and can
be better employed.
Banking, like every other business,
increases with the establishment of
more banking institutions. They create
business. More money being poured
into legitimate banking provides more
funds for loaning purposes, and gives
strength to a community. Stable bank
ing means stable people. Wild specu.
lations means restricted business and
thwarted public and general improve
ments. With the increase of banks in
Cache, for instance. will come more
savings and easier money. Many of the
enterprises which we are so DESTROYS
of seeing success could long ago
have been established institutions il
money spent in coal mines and oil
wells had been in the local banks.