The border vidette., 1926-08-14

nor Hunt said, We found loans
on cattle had been on the basis
of 40 cents on the dollar that
were perfectly solid and secure,
but on account of the drouth
which caused the death of many
of the cattle and forced sale of
the remainder. the securities
shrunk until they were not worth
40 cents on the dollar. With the
cattlemen Of this state bankrupt
and in distress, had the superin
tendent Of banks closed those
institutions, he would have play.
ed safe, but he would not have
been fit to hold the office. We
nursed the banks and brought
many of them from insolvency
to the condition where they we're
sound financially
This is the most amazing
statement | have ever heard
from anyone who pretends to
know anything about banking.
1t is not the function of the
banking department to nurse
with depositors' money any bank.
The banking department is the
agency of the depositors and not
of the stockholders.
The idea of a superintendent
of banks, in effect, placing his
seal OF approval on bank which
bis examination disclosed to be
insolvent and allowing the de
position to place money in that
institution and permitting the
bank to continue in business,
hoping that it would pull through
it is nothing more nor less
than gamble with the money
of the depositor and future de
positors, when the deposition,
even should the bank return to
solvency and be able to pay 100
cents on the dollar, cannot pos
sibly win. He will get nothing
back except exactly what be
longs to him, without interest.
On the other hand. be stands to
lose all he has.
They were taking a chance,
not with the money of the gov.
ernor, of the superintendent of
banks, of the stockholders (they
had already lost, but with the
money of the depositors. The
only ones who had anything
whatever at stake.
In his speach Governor Hunt
failed to say anything about the
13 banks that he failed to return
to financial solvency, the 13
banks which were beyond 'nurs
ing along. 1t was in those banks
that the depositors were permit.
ted to remain in ignorance of the
situation and in those banks it
was the money of the depositors
that was lost in an attempt to
nurse them for the benefit of
the stockholders.
LAS deplorable as the case
may have been. the depositors
were not responsible for the
Grouth and the cattlemen's loss.
It was a loss to the cattlemen
themselves. Had the cattlemen
made millions it would not have
profting the depositors, and up.
on what theory should the cat
tlemen's loss be shifted by the
banking department to the
shoulders of the depositors. when
by playing it safe it could have
been avoided.
Governor Hunt has ignored
the relationship between the
bank and the depositors. The
trust which required the bank
to play safe and to protect the
rights of the people who had
entrusted them with their money
Any mau who is blind to the
sacred relation of the bank to
the depositor should not be in
charge of the banks of the state.
He is not capable of holding the
Office for be will not enforce the
banking laws in spirit and in
fact.
Governor Hunt says he might
have played safe. Don't you
depositors sincerely wish be had
played safer"
Don't let the same administra
ton that ignored the law in the
case of those banks that went to
the wall ignore the law in any
more bank cases.
Banking laws were written for
depositors. it is up to depositors
to see that a governor is elected
who will inforce the law. Hunt
didn't. Ellinwood will.-The
Arizona Daily Star.