Douglas daily dispatch., 1926-08-25

financial condition was known was
termed "the most amazing action 1
have ever heard of on the part of any
one who claims to know anything about
banking"
Ellinwood declared enforcement Of
the state banking laws as now written
was the only way in which to play
safe and added that sit is the duty of
the bank department Of the state to
play safe not to gamble, hoping the
bank will muddle through"
The bank guaranty law, advocated
by one of his opponents, was called un-
sound by Ellinwood who said it had
been tried and found wanting in sew
eral states. Oklahoma, he said, lost
ia million dollars by it before they re-
pealed the law; South Dakota and
North Dakota also lost immense sums
before the law was removed from the
statute books.
Bonding of banks is impractical"
he said, "for it is impossible to think
| that a private insurance or bonding
company would be willing to take the
risk which a state, with all of its
great resources, found too heavy to
carry. Besides, were bank bonded,
the bonding company would in turn
demand bond from the people who
| did business with the bank. They would
not loan you money if they were not
protected in similar manner.
"If such "a law would be workable, I
would be glad to be for it. 1t would
be favored by every banker. But it is
not safe, first of all because it tends
to bring on wildcat banking, it tends
to make the poor bank as creditable as
| the good one II it could be made to
work, it would not cost the banker any
more money, an additional expense
would come back on the patrons of the
bank, but it will not work the bank
guaranty law has been tried and found
wanting"
/ EIlinwood touched briefly on the
needs of Arizona in the developments
| of the Colorado river, asking for action
to replace friction with all of the other
| states. 1--WE cannot come to any agree
fment with those states or the national
government while we are not on speak
ing terms with them," he said, "and
before our Legislature can send it's com
mittee to deal with these states, we
must drop the dog in the manger at
/ titude."
The candidate declared the legislat-
ture had the only power given by the
constitution to deal with the other
| states on allotment of the waters of
the river, and as governor, he would
keep the legislature in session for two
! years, if necessary, in order to reach
some agreement which could be sub
mitted to the vote of the people OF
4 Arizona for their final decision.
i In closing, the candidate made a
pointed attack on the high cost of the
present administration, Governor
Hunts statement, ARIZONA will never
i day. to be unbelievable
Machine politics, manuevered to per-
I petuate a candidate in the governor
chair, were called the reason for the
Il high cost of the present state govern
ment by Ellinwood, who blamed the
system on the long term in office held
by Hunt.
"Such a political machine is bound to
grow out of a long term in office" Ell
linwood said "and it is the taxpayers
of the state who are paying the way
in this instance for the officeholder.
! have no personal quarrel with Cover
nor Hunt, it is the system of govern
ment we now live under in this state
that T think needs a decided change.
governor Hunt, running for hi
.ixth term as chief executive of the