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About The morning Astorian. (Astoria, Or.) 1899-1930 | View Entire Issue (Sept. 27, 1908)
SUNDAY, SEFL 27 THE MORNING ASTOUIAN, ASTORIA, OREGON. Makes Good Address (Continued from page 2) mitt, Aow at mUsiblc, uiulcr the national banking net for banks to organize with a cupi tl of $725,000. The security which banks offer the depositors depend upon the amount of capital, the Amount of surplus and public confi dence in the officcri of little exper ience and indifferent reputation can not offer the public exactly the same security for the payment of deport! at ft bank with a capital of $500,000 a surplus of $250,000 and with officer known to be honest and able. Dc poitors, therefore insofar a ecurlty of deports in concerned are as likely to make their deposits in the $25,000 bank a in the bank with the capital of $500,000. , ; "It i proposed to introduce into the law a limitation ato the amount of interest which tinder' the. system can be offered and paid on deport. Tlii it i aid Will prevent bank from offering excessive rate of Interest to obtain deposit. A limitation of this sort is difficult to fix, because condi tion vary so much in different parts of the country. That which would be high in one part of the country would be low in another, and that which w'rtild be high one season and certain condition would be another time. Hence, whatever limitation is Imposed. except when the normal interest I highest there mut always be an opportunity for those inviting deposit to pay a higher rate than that which conservative banker would pay. -. ' "If the loac were limited to one twenty-sixth of one per cent the amount of the tax on deposit of course would be small and each bank could readily pay It, although the principal would be an entire depart ure from equity; but the effect of a guarantee system on the character of banking would be such that the loc arising from recklessness would great ly increase, and the tax must Increase to meet the losses on every .bank in proportion. Instead of lost equal to one twenty-sixth of one per cent an nually it would rapidly increase in every financial stringency. Two ob jections are made to the conclusion that an enforced guaranty; syMcm would lead to reckless and disaster In banking. One is that the govern ment examination would prevent, and the other" is that an insult to the banking community to assume that the national bankers of this country, in view of their present high charac ter would yield to the temptation to recklessness presented by the system. 1 answer to the first objection that the government examinations do not now prvent banks from failing; that 'it is difficult for a bank examiner to discover the unwise recklessness and speculative loan, and that often such loans are made between the government examination and then the evil i done and cannot be reme died by strict supervision. Second, while 1 fully concede the general high character of the banker throughout thi country, my point is that the opportunity to obtain de posits and invest them on very little capital afforded by the guaranty se curity will attract into the banking business men of no experience and of speculative tendencies and will dis tinctly lower the tone of the banking business. THE KANSAS LAW. St' has been said by Mr. Bryan that republican of Kansas byadopt a plank in favor of a kind of guaranty of deposits, rebuke me for my opposition to the plan outlined in the democratic platform. This is en tirely inaccurate. The republicans ot recommcnucu me mcnt to pay the loss to depositors in any bank in the agreement,'" It is the voluntary feature of the Kansas pro posal that makes the radical differ ence between It and that of the demo cratic platform. ' It is entirely con ceivable that bank in the same neigh borhood and within the observation of each other . may profitably and safely accept and guarantee the se curity of all for the benefit, of each, especially when they can select their partners. ". "' , "One of the great merit claimed for the enforced guaranty of deposit Is that it will prevent panics. It is sufficient to say that the plan pro posed cannot prevent panic. A panic is not stayed by the promise that money will ultimately be forthcom ing. It can only be stayed by the production of money itself, ' When a financial stringency is on, It Is the cash the man needs and to say that he will get it next week certainly doe not assist him. No one who has heard that hi bank was going to fail will delay in immediately applying for hi money merely because he is assured that at some time in the future he will gt it. Therefore, the system could not stay the panic unlcm the fund were large enough to enable the bank to pay all of their depositors at the time of the run. A tax is proportion ed only to the lost sustained after liquidation and payment, to that the funds would be utterly inadequate to meet the demand - for ready money which would prevent a panic. The total deposit of the national banks are $5,000,000.000. -One-half of one per cent upon that, and this is a much large percentage than proposed would make a fund of $25,000,000. The amount of money "that was needed to stay the late panic in New York banks alone was many time this sum. In other words, the cash need ed to stay a panic it is impossible to accumulate in any other way except by such emergency measure as is provided in the Aldrich-Vrceland bill in which bank are given an oppor tunity upon proper security to issue $5KVK)0,000 to meet such an emer gency, and are' prevented from over issuing by the imposition of heavy tax of five per cent. The proposed guar anty plan also invites the co-operation of state bank and propose that they shall have an opportunity Uo come into the fame, guaranty, ;,The,j practical uujciliunn unu uiiuiuuics u not frighten Mr. Bryan at all He pay no attention jo JhC difference between state banks, and national banks, or to the fact that state banks are author ized to lend money on real estate whereat the national banks are pre vented from so-doing. The difference from the business and the tieing up of atsets between the .system is radical. It would be impossible to bring in the state, . banks without making the supervision of them as strict as on the national banks, and if that supervision is to be strict, it must be under national auspices, and therefore in effect they must become national banks,. This will entirely destroy the system of state bank and will introduce into the national bank ing trust companies and savings banks. . ' "Mr. Bryan says that as the gov ernment has the security why should not the individual depositor have the security? The government usually ha a large fund. The law requires that it exact security for its depos it. It is so large a fund that the bank can afford to give good secur ity to obtain it. It is to be observed, however, that the security given to the government is the security of the bank which get the deposits and, not the security of every other bank in the community. If, as between the banker and his depositor, the deposit is of sufficient benefit to make it an object of the bank to give security that is one thing: but to require every jj Beginning k'anmi have nasace of a law by which banks if they choose may enter into arrange- other bank to give security to that 1 mcnt with other banks by which depositor is an .entirely different they shall all be subject to an assess- thing. I understand that in Oklaho- I f MAMCE ALE! OF Clothing, Gents' Furnishings, Boots Shoes Etc. Tomorrow, Monday September And Continue for Fifteen Days. and 28th If you hesitate, you will lose, because this sale will positively close on the date advertised. ., The Semi-Annual Clearance Sale is en event like the holiday)!, the date comes in red figures on the calendar. Only standard qualities are included in this sale only the standard goods which were part of our regular ; ' stock are offered no importation of cheap trash to palm off as regular goods is ever tolerated in this store Reductions as attractive as these have never before come your way. Our commanding position as one of the leading clothing stores of Clatsop county gives confidence that our values are exactly as represented. .:.,, ..:.' The force of these prices cannot be felt until you put the price in comparison with the quality. There will be no repetition of these bargains we have no reserve stock. As each line is closed out, the ' ' opportunity has passed forever, v ' " : , These bargains are unmatchable. You cannot duplicate them elsewhehe for less than double the money. ' ' It's a Big Sale, arid it offers phenomenal money:saving privileges which will not come your way again. This sale will change all your clothing plans. It will enable you to have the quantity yon expected for "' ' your money. This sale will continue the full advertised time if the goods hold out But at the rate they will go there's a ' question of it, as we have no reserve stock. ' Our great clearing sale will be a success, because experience in previous sales has taught the public that our values are real They come to us expecting bargains, knowing they will get them and they find them. Read the Marvelous Price Reductions, Which Will Appear in Tuesday Morning's Astoriah These price reductions will seem like dreams to the economical buyer, but a visit to our store will prove ' them to be joyful realities. Buy your clothing now you can make no mistake in anticipating your future needs not for a long time . will you again have the opportunity of doing so. . . ' i ; As first priced at the beginning of the season, this clothing offered unusual values as now priced at our , , Clearance Sale, the values are simply marvelous. ... . . . , . , 3 . No money-making prices, but money-saving prices. : r, , ' . .. , - ,: ,, , T lie WorMna'merti's Store Chas. Larson, Prop. Next to Ross, Higgins & Co tmHHHHmmo " mmmm ocW ma under thi very law which is" pro- Oklahoma can be accredited, this in posed to make national bonds are ex- crease of deposits was due to the fact acted by the state and county from that $3,000,000 of the state money re the secured banks to protect the pub- ceived from the government for pub lic deposits. lie school lands was removed from "I think I have shown that the the national banks and put in the tendency of the system proposed state banks operating upon the guar would be to destroy the high charac- anty which-would explain nearly all ter of the present banking. This is the increase in deposits. The postal not, however, to be taken as an argu-1 savings bank system has a guaranty ment that the security of deposits is by the government under cireum not a good thint and is not to be stances which justify it, because it brought about as fully and perfectly ' receives and husbands the deposits, as possible. It is only to show that This guaranty will, of course, attract the methods here suggested is a deposits, but the interest fund is so plausible but sophistical method that . low that the usual courses of savings will not accomplish the purpose but banks will not be drawn away a ex will ultimately increase the losses ' perience in all. other countries shows, from bank failures. The democratic platform proposes, if "The case of Oklahoma has been the guaranty system cannot be put cited as an instance to justify the into ofrce, to then adopt the postal democratic platform. The system has savings bank, as if the guaranty sys bcen in operation only since March tem supplied the means met by the of this year. No panic or other finan-1 postal savings banks, cial disturbance hastened its efficiency, j "This is entirely untrue. No en The statement is made that the pub- forced guaranty system will supply lie has so much confidence in the whav the postal savings banks will banks that the deposits in the unse-1 supply. It merely attempts to make cured banks are running down and secure the present deposits. It can, the deposits in the secured bank are of course, have no effect to extend running up. If my correspondents in the bank into the remote districts of '- ' the country where, savings banks are FINANCIAL. Saving's Accounts Savings Deposits are received from $i up, on which inter est is paid. This form of deposit is of especial value in building up a bank account, as it admits of withdrawals or additional deposits at any time. Every incentive con sistent with safety is offered to patrons of this department. Our neat home savings banks, as an aid to saving, is loaned free to those who want them. The Banking .Saving & ' Loan Assn. wt m I k7 Yi: Men New&k Style Sho The Fall & Winter Fashions of Correct Clothes for . Made in-New York by are now being exhibited by us exclusively in this city JUDD BROS. The Woolen Mill Store JIM! id needed but are unprofitable and where the many proposed money or der offices turned to the savings banks, will induce thrift and the gathering of capital for the improve ment of the country." DOUBLE SHOOTING. One Fatally During Quarrel Expresiiman. With First national Bank of Astoria DIRECTORS Jacob Kamm W. F. McGregor G. C. Flavel J. W. Ladd S.S.Gordon Capital ........ ..... .$100,000 Surplus .......... ... . . ..... ... . . .... . 25,000 Stockholders' Liability . .... . . . . . . . . .... . 100,000 ESTABLISHED OAKLAND, Sept. 26.-During a quarrel while under the influence of liquor, Harry Hammer and Fred Smith, both carpenters, were shot, Hammer fattaly, by an expressman named Jackson. Jackson escaped. The shooting oc curred on the half-way house on the San Leandro road. i For a Sprained Ankle. . A sprained ankle may be cured in about one-third the time usually re quired, by applying Chamberlain's Palm Balm freely, and giving k abso lute rest. For sale by Frank Hart and leading druggists. Don't be afraid to give Chamber lain's Cough Remedy to your chil dren. It contains no opium or other harmful drug. It always cures. For sale by Frank Hart and leading drug gists. . J. Q. A. BOWLBY, President O. I. PETERSON, Vice-President J. W. GARNER, Assistant Cashier FRANK PATTON, Cashier ASTORIA SAVINGS BANK CAPITAL AND SURPLUS - $227000 Transacts a General Banking Business Interest Paid on Time Depo Four Per Cent. Per Annum Eleventh and Duane Sta. - -, - . Astoria, Oregon ' SCANDINAVIAN-A M E R I A N v SAVINGS BANK r.) ASTORIA, OREGON OUR MOTTO: "Safety Supercedes All Other ConsUeraUsa."
