The Western news. [volume] (Libby, Mont.) 1933-current, 1933-09-21

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or whatever part of 1t that is saved
from the wreckage. In driblets.
When the Banking Act of 1888, with
Its insurance provisions, was under
consideration In con-
Good and gress, there were
Bad Bankers some bitter oppo-
nents. They were
accused Of being spokesmeh@fer the
bankers which obviously they were
and the accusation was hurled at
them because good many bankers
were In disrepute. But many observ-
ers here have held the opinion that
the invectlves, when the opponents
were called banker spokesman, were
unjustIfied, because there have been
good bankers as we'll as bad bankers,
intelligent bankers as we'll 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 II anyone Is to under
stand the full import OF the expert
ment upon which we are launching.
From the standpoint OF most bank
| ers. 1t is claimed that they are being
made goat by congress. They point
to the failure OF guarantees tried out
In half dozen states. and how those
states In time abandoned the idea.
The states found the plan too expen-
sive, because 1t 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 Tor
dumhness 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 q 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. =
And. 1t seems to me, there Is merit
In their argument.
Every one hopes, | 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 10
! watch for those who are interested In
the general problems Of government.
Secretary wallace and his. farm ad
iustment staff are now talking In
terms of a blanket
Milk agreement OF all
Production dairy farmers e
control the mi III
production Of the nations herds. Sucf
d plan Is almost complete. 1t Is abou
to be adopted by the secretary as thu
: only way to avoid amending tangle1
over the milk production problem In !
thousand milk sheds for as man.
cities Ten or fifteen of these agree
!. ments, local In character, have beef
worked out. but the secretary hold
Fl them to be mere stopgaps. They ar
not applicable generally, and Ii Their
. Is to be a solution for the milk prob
y lem 1t must be worked out on a ma
6 tional basis. the experts tell me.
Q The secretary's ideas about contrc
u OF milk and butter production direct
y attention to the situation In the dair
Y industry. 1T must be remembered
y first, that milk Is the most perishabl
y Of all commodities. Butter can b.
le and Is, stored. but 1T cannot be hel
y indefinitely and remain marketable
~ In the second place, 1t be must n
70 membered, that production of mil
y and butter has been on the increas
70 In the last few years. The rate he
9 been so rapid that the American pr
TO duction of butter is almost to til
Us point where exports will have TO TAX
e place and of course. the milk wars
=. have shown what the situation Is {
AZ regards the distribution OF milk.
~ 1t Is true, according to authent
y statistics, that more and more COW
are being added to the dairy herd
49, This means increased production
RS milk at q time when the markets al
cy able to absorb no more. j. | am to
OF that there will be more milk cows
at this country next January.1 than ev
'p- before In history. That Is ominous
sir At present. as pointed out, the
m is small annual importation of br
I'm ter The fact that the production
W, not quite enough for domestic co
'u- sumption makes the tariff against II
M ported butter effective and one OF h
IN. results Is that the price paid for t
ra- milk and for the butter are raise
10 But once that production reaches t
EN- point where there Is need for export
= ton OF some Of the surplus. the Ley
nat of prices In this country immediate
will conform to the world level
The prices and that level Is lower tn
lks ours.
on CO uacratarv Wallace saws the