The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1924-02-07
CChleago Tribune. January 30

: (ChicagO Tribune, January 25)
Government agencies" says Mr.
Coolidge in his statement on the bank
failures in the northwest can net
) properly make loans upon insecure
collateral or to banking institutions
whose capital is impaired"
We are glad to have that principle
firmly. laid down and we wish to add
that it applies with even greater force
to the loans of private agencies, such
as the banks which have been invited
to assist IL the bdttI essihs OF the
weaklings. We think the furry in the
northwest is likely to get too much
attention in this political year rather
than too little, and we take leave to
emphasize the certain fact that if the
government either directly or indi-
rectly, undertakes to insure from loss
institutions or individuals who are
suffering the logical consequences of /
mistakes in Judgment and the conduct |
of their affairs, it is setting its feet in /
a path which has no end unless it be I
a morass.
Our opinion, and we believe it would
be verified by frank examination of
banking history and banking condi-
tions in the northwest. is that the
present situation is not a credit mat
ter but one of impaired capital, and
that this impairment of capital is the
natural result of bad banking. It is
not case of too little credit facility
but of i'll judged credit extension, and
we can not see that it is wise or lust
to the country at large that individ-
uals and institutions that have been :
doing business on bad principles
should, in this Instance, be insured bv q
he government or by other sound in
'titutions against the logical results
If faulty methods. If there had been =,
ess Nonpartisan league finance. less
experimenting with unsound nostrums -
Ike the guaranty of bank deposits =
cheme which has gone to pot in =
Worth Dakota, and less political ex- -
Notation of the prospects of govern :,
nent aid, there would be a sounder
nd safer condition in the northwest
han has been revealed in the last two =,
r three days. -
What the country at large and its 4,
representatives. have to congratulate 70
themselves upon at this time is that y,
ne region of incompetent banking is in
and that sound principles cd
revail except in certain limited quar- ,,o
RS. We in Chicago are especially N
'rtunate in the character of our oo
anks' which have not ninched from of
eeting the inevitable losses attend w,
1t upon the deflation of business. lbe
ave resolutely weeded out weak spots
they appeared, and, while giving en-
'oper relief where conditions insfi- oh
3D. have kept our conditions in sound f.,
'alth and thus insured prompt re- go,
very. y,
The sooner the northwest. too. gets vic
feet on terra frma the better. and ept
tempts to avoid necessary sacrifices tie
put their banking institution on a nis
und basis ought not to be encour- isb
ed for political or other reasons. II tbe
Injurious TO the whole country and na1
the northwest itself to encourage rea
expectation that banks can be set rec
with insufficient backing and pros SOC
cts can be managed badly and is
IN can be protected by government stat
from the results which penalize this
4 methods in other regions and 9th tav4
enterprises That leads only TO .-s=
ancial and economic ouielxsand IT
o"e Wishes the northwest TO CON
re such aid as viii support sound ~ !