The daily sentinel., 1913-12-03
"a C. NEWTONl

IN the local papers every few days
appears a telegraphic dispatch from
portland, Ore, giving fancy prices
said to have been received by the
northwestern Fruit Exchange for
apples. This firm or house evident
iy has good advertising manager
who is devoting much time to ex-
plotting the agency, and the fact
that many cars of apples from the
northwest are being sold on the Chi
cago auction at prices practically the
same as our local association receiv-
ed for apples I. o. b. Grand Junction,
leads us to believe that these tele-
| graphic articles are padded 1t is
said that this exchange is operated
by two brothers named Quinn, who
several years ago handled canteloup-
es at Fruita and paid the growers
thirteen cents a box when our asso-
citation paid one dollar. A year or
two later the same men operated in
Delta county with the same results,
and possibly they are looking this
way for next year.
1t seems to me that popular senti-
ment would soon crystalize into a
strong demand for bank guaranty
law, which would prevent bank fail
ures in which there could be any
possible loss to the depositors. The
failure of bank is often brought
about by causes beyond the control
OF any man or set of men, and many
times individuals with grudge
against an official can do vast
amount of harm, not alone to the
bank but to hundreds of people who
are depositors. With the assurance
that every depositor will be paid in
| full the banks need have no fear of
a sudden run or loss of confidence
on the part of it's patrons. The house
Of the last legislature passed such a
measure but the senate refused to
concur unless the optional clause
was Incorporated which would viii
ate any general good.
However, the National Currency
Act, now being considered in Con-
A gress, contains a feature which will
mean the same thing. 1t provides
for regional reserve banks" ten or
twelve in number in which the other
banks take stock and when any bank
in the country becomes involved the
reserve bank in that region takes
over the weak bank, pays its bills
and closes 1t out. No one loses any
thing except the reserve bank. This
l. the general intent of the law and
the senate is now working on this
reserve or guaranty feature.
If bank loans money to private
individual it is very careful to secure
plenty of security. and it seems no
more than reasonable that the indi-
vidual should be equally protected
without casting any reflection on the
stability of the bank or the fidelity
or business ability of it's officers.
The guaranty would naturally re-
lieve bank officials from the strain
of being always prepared for trouble
and always expecting it, For some
reason banks, especially the largest
and most substantial, are opposed to
a law of this kind, not wishing to
stand behind weak banks, but every
bank failure in which there is loss to
the people causes loss of business
to every bank no matter how strong
and the amount of money boarded
away in stockings and other like
places is growing larger with every
less.
There has been a good deal of talk
for several years in this country
which the farmer can secure cheap
money with which to improve land,
and there is also in the large maga-
zines articles urging a movement of
back to the land" The move to-
ward the land will be much stronger
when men can get cheap money with
out the high rates of interest they
are now compelled to pay. The Unit
ed States is far behind other coun-
tries in this matter. In Europe the
farmer is given loan by the gov
ernment which is repaid in annual
payments-part interest and part
principal. The length of time is u.s.
ually fifty-four years, and the rate
of interest is about five per cent
four per cent going for the annual
interest, fraction of one per cent
going to principal and another frac-
tion for costs to the bank doing the
business. This rate will pay both
interest and principal in full in the
time specified. 1t works good deal
!. on the plan of our local building and
loan associations, which charge
twelve per cent but which actually
costs the borrower less than seven
per cent for the full term.
This plan as published in the Oc-
tober issue of the Worlds Work and
an illustration given with the exact
figures to prove that it is practical
On thousand dollars $24.25 will be
paid every six months and by the end
! Of the last year all OF the payment
will be for principal as the interest
/ grows less every year with the de.
crease of the principal. A good deal
of talk is going on in Grange circles
over law which will allow the state
to loan money to those who are seek
{ ing to make homes on Colorado soil
r and law will no doubt be proposed
\ Fin the next general assembly. I'VE
4 ought to have such law before the
h high line land comes into market.