The Coolidge examiner., 1932-03-18

particular time the best financial judgment ex-
poets that while further losses may accrue,
sometime the general level of good standard
properties will rise, 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 un-
avOidably true The great fact of life is un-
certainty. The only thing we can do is to recog
nize the uncertainty and govern ourselves ac-
cOrdngly.
| 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, but sometimes 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 it. Most Of the states follow a similar
| system The nature of investments is regulated
| by law and most banks are carefully super
vised, rgidly 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 it has been in the
safest place to keep funds
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, or hiding it
away, our banking system soon would become
derapged 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 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
we can feel adequately certain that our bank
| ing system as whole will not become unsound
| If 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
it. 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, it is risk thai
must be taken Compared with the certain ca
lamity that would result if the people drew al
money out of banks, the risk can be considered
as negligible.
Those who are engaged in boarding currency
are probably no safer as class than those whC
keep their funds in the banks. They are injurint
themselves and everybody else. They are IN tn
position of not taking their part of the risks O
! life and are trying to make themselves safe b!
letting others carry their risks for them.
~
, 1t might be a great personal comfort if w
could Law all the blame for our misfortunes upol
, some source outside ourselves. That is why i
; is easy to convince some of US that we have no
failed but society has failed. Of course, it woul
follow that if society were to be blamed for ou
o failures that some society must be credte
with our successes. If we want to look at
= that way we shall have to admit that on tn
whole society in this country has done yer
well by US. Our country, over its span of his
tory. has been considerable of a success.
But while there is relationship of all of u'
which we term society, that differs from eac
of us. Just as house differs from the indiyidr
e aI bricks in it, yet people not bricks, an
: moral responsibility cannot be shifted to Others
+ 1t must rest with the individual. The same 81
V ciety produced Paul and Judas, Washington an
n Arnold, Lincoln and Tweed, Edison and tn
Il gang leader.
e If we are to BIZ free to make our own choice