The midland journal. (Rising Sun, Md.) 1885-1947, 1932-03-11

particular time, the best financial judgment ex-
poets that, while further losses may accrue,
sometime the general level Of good standard
properties Will rise, so that some of the present
losses will be reduced. Future prices at which
property will sell are always uncertain
There is no one to be blamed for what is I'M
avodably true. The great fact of life is I'M
certainty. The only thing we can do is to recog-
nize the uncertainty and govern ourselves ac-
cOrdingly.
1t is true that considerable number of peo-
pie have suffered through bank failures. In a
time of declining prices the banks that have
not been well managed always have difficulty.
Some also that through no fault of their own
have met losses have been compelled to close.
But that does not mean total loss to depositors.
Sometimes the loss is heavy, butSsometimes pay
ment is made in full. In any case, funds are
tied up and much inconvenience results.
Our national banking system is as sound as
generations Of experience have been able to
make 1t. Most of the states follow similar
system. The nature Of investments is regulated
by law, and most banks carefully super
vised, rigidly controlled, and frequently exam
ined by government agents. While absolute
safety has been impossible to secure, it is prob
able that the records of money deposited in prop
erly regulated banks In this country would show
over a series of years that 1t has been in the
safest place to keep funds.
90
Banks are an absolute necessity for the trans
action of business. If it were possible to con-
ceiye of all of them being CLOSED, starvation
would face most of US inside of ten days. They
exist to facilitate the process Of exchange,
which is the basis of all business. They are one
of the main sources of credit on which our eco
nomic welfare largely depends.
1t is apparent that If their source of currency
were cut off by people taking money out of
banks and boarding it, locking it up, hiding it
away, our banking system soon would become
deranged and the whole nation would begin to
suffer losses Loans would have to be called,
mortgages cancelled, prices would fall, wages
decline, credit would fail, and a general panic
would be produced
If all the people attempted to draw their money
from the banks, all commerce would be reduced
to barter, and universal bankruptcy would pre-
vail
While particular banks may become unsound,
can feel adequately certain that our bank
ing system as whole will not become unsound.
IL it ever did, we should find that the money
we had hidden away had become unsound also.
1t would not be possible to buy anything with
1t. All exchange would be at an end. Even pay
ments by the federal government would have
to be suspended. While keeping money in
banks involves some risk because possession of
property always involves risks, 1t is risk that
must be taken. Compared with the certain ca
lamity that would result If the people drew all
money out Of banks the risk can be considered
as negligible
Those who are engaged in boarding currency
are probably no safer class than those who
keep their funds in the banks. They are injuring
themselves and everybody else. They are in the
position of not taking their part of the risks of
life and are trying to make themselves safe by
letting others carry their risks for them.
%
1t might be great personal comfort If we
could lay all the blame for our misfortunes upon
some source outside ourselves. That is why 1t
Is easy to convince some Of us that we have not
failed but society has failed OF course, 1t would
follow that If society were to be blamed for our
failures, that some society must be credited
with our successes. If we want to look at it
that way we shall have to admit that on the
whole, society in this country has done very
well by us. Our country, over its span of his
tory, has been considerable of success
But while there is relationship of all of US,
which we term society, that differs from each
of us, just as house differs from the ndividu-
al bricks in it, yet people are not bricks and
moral responsibility cannot be shifted to others.
II must rest with the individual. The same So
ciety produced Paul and Judas Washington and
Arnold Lincoln and Tweed, Edison and the
gang leader.
If we are to be free to make our own choices