The midland journal. (Rising Sun, Md.) 1885-1947, 1933-09-22
by William Bruckart

bank that has failed to wind up its
affairs. That necessarily means that
depositors will get their money back,
or whatever part of it that is saved
from the wreckage, in driblets.
it's insurance provisions, was under
consideration In con-
Good and gress, there were
Bad Bankers some bitter oppo-
nents. They were
accused of being spokesman for the
bankers which obviously they were
and the accusation was hurled at
them because a good many bankers
were in disrepute. But many observ-
ers here have held the opinion that
the invectives, when the opponents
were called banker spokesman, were
unjustified, because there have been
good bankers as well as bad bankers,
intelligent bankers as well as dumb
ones, in this country. Besides where
would we be without banks.
The sponsors of the insurance sys-
tenn dwelt long and loudly on the
beautiful theory of deposit insurance.
1t is nothing, after all, but plain old
guarantee Of bank deposits, and 1t has
an intensely practical side that must
be discussed if anyone is to under
stand the full import of the expert
ment upon which we are launching.
From the standpoint Of most bank
ers, it is claimed that they are being
made a goat by congress. They point
to the failure of guarantees tried out
in half a dozen states, and how those
states in time abandoned the idea.
The states found the plan too expen-
sive, because it proved too big bur-
den on the state treasures. In the
current case, the burden is going to
fall on the banks, themselves, and
most Of the bankers obviously are
kicking about it.
They advance the argument that
they are being made responsible for
dumbness and crookedness on the part
of dumb or crooked bankers. what
does that type of banker care" asks
the sound banker, whether he runs
his bank on sane basis or not? II he
CUTS the bank, the insurance fund
pays the depositor. and we pay the
insurance fund through assessments
when the present fund is exhausted"
in their argument.
Every one hopes, I believe, that the
insurance fund can be made to work,
but not every one is convinced that 1t
can be successful. The element Of
human fallibility is a factor against
which no legislation can be drawn.
It will be an interesting thing to
watch for those who are interested in
the general problems of government.
Secretary Wallace and his farm adj
justment staff are now talking in
terms of blanket
Milk agreement of all
product;on dairy farmers to
control the milk
production of the nations herds. Such
plan is almost complete. 1t is about
to be adopted by the secretary as the
only way to avoid unending tangles
over the milk production problem in a
thousand milk sheds for as many
cities. Ten or fifteen of these agree
mentS, local in character, have been
worked out, but the secretary holds
them to be mere stopgaps. They are
not applicable generally, and if there
is to be solution for the milk prob
lem it must be worked out on ma
tional basis, the experts tell me.
The secretary's ideas about control
of milk and butter production directs
attention to the situation in the dairy
industry. 1t must be remembered,
first, that milk is the most perishable
of all commodities. Butter can be,
and is, stored, but it cannot be held
indefinitely and remain marketable.
In the second place, it be must re-
membered, that production of milk
and butter has been on the increase
in the last few years. The rate has
been so rapid that the American pro-
uuCLlOu VI DuLlCl 10 dlluOSL " tAiC
point where exports will have to take
place and, Of course, the milk wars"
have shown what the situation is as
regards the distribution of milk.
1t is true, according to authentic
statistics, that more and more cows
are being added to the dairy herds.
This means increased production of
milk at time when the markets are
able to absorb no more. 1 am told
that there will be more milk cows in
this country next January l than ever
before in history That is ominous.
At present, as I pointed out, there
is small annual importation of but
ter. The fact that the production Is
not quite enough for domestic con-
sumption makes the tariff against i'm
ported butter effective and one of the
results is that the price paid for the
milk and for the butter are raised.
But once that production reaches the
point where there is need for exporta-
ton of some of the surplus, the level
of prices in this country Immediately
will conform to the world level of