The Monroe journal., 1911-08-15

! legal per 81, nut Whlch, III pef>l>-
ted ia. are 50 insidious and wrong
as To undermine sound banking
and make the business the prey
ICf sharks and the INSCRIPTIONS.
iTior example, take the matter of
interest bearing deposits. The
rate should he uniform in the
same territory and the banks
therein located should be rcquir-
cd to strickly adhere TO the rules.
No bank should be allowed TO
pay more interest to its compe-
titors depositers than to its own
in order to increase It's own line
OF deposits and pull its competi-
tors down. 1t is an unfair adj
vantage to take, an unworthy
proposition to make. Self defense
is the first law of nature and no
banker likes to fold his hands
and simply smile while his com
petitor takes his deposits by
such unfair means. He feels like
fighting fire and the temptation
is to repel the attack and hold
his own by meeting the competi-
ton in the given ease. If he
fails TO hear of the unfair add
vantage in time TO save himself
and loses money, then he is
tempted to invade his enemy S
territory and retaliate by offer
ing like rates or even more in or
der to regain lost deposits and
increase his volume. Where such
practices obtain, il is easy to see
that the banking business be-
comes demoralized and may in
deed finally become farcical.
Now, ii our banking laws are
to be revised, il would be too
tedious to open up the subject
here, but ! suggest that the time
has come when it should he more
difficult to become Il banker;
and more restrictions should he
enacted in the matter of estab-
fishing a bank. Banks are quasi
public servants and the interest
of the public must be conserved
and should be consulted, before
such an organization is allowed to
be organized. No bank should
receive charter unless there is
an mdoubted open field for OPP
Grafton with success more than
probable. Banks must appeal to
the public for confidence and
they must have confidence in the
way of deposits in order to sur
vive. The law now requires pro-
fesSional men, such as lawyers,
dentists, and the churches now
require candidates for the min
iStry, TO be put through long
courses of study and to stand eX-
aminations before receiving Ii
cense. Why! because these
men must serve the public and
live upon public confidence. Be
ing passports TO society these pre-
feSsions must be kept pure and
the public must be protected
from quacks, shysters, char
latans and frauds. These pro-
LESSONS being naturally of a
high character they are liable to
be overrun by the ambitious, and
are as IA matter of fact, and are
liable to be invaded by the I'M
scrupulous to hoodwink the pub
lie Therefore it becomes neces-
sary for the public to take a
hand and put all applicants
through a process of selection
and elimination in order to get
the best possible service; and this
process must become more and
more searching ii we want pro-
greSS and good service. These
principles hold good and may be
applied with even greater force
with reference to banks. I'm the
learned professions quacks and
frauds may flourish upon the ere
dulity of the people for a season,
but the public will know finally
and there will be survival of
the fittest. The same is true with
banks, but the consequences are
not the same. The value of bank |
stock should never he undermin- |
ed nor confidence in the business
ever impaired. either by having
too many banks or by the con
duet of such business by incompe |
tent or INSCRIPTIONS men. Capt.
tai is timid. Therefore. the bust
ness must be thourughly safe
guarded. Rottenness or incompe-
tency in given ease not only ef-
fects the people Immediately in
but unfortunately, when
advertised TO the world, it ex-
tends TO the entire business of |