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About The morning Astorian. (Astoria, Or.) 1899-1930 | View Entire Issue (Oct. 10, 1908)
SATURDAY, OCT. 10 THE MORNING ASTORIAN, ASTORIA, OREGON. fj II OF i EM, Shall Bank 0 Made Liable for One Another's Debts? eoonlss4 Authority en financial Questions Discusses Practical , . Ssarlngs of froposed OMar- i . , ftntaa Plaa. (By George ID. RottfrtH, former 1)1 ,, rector of the Mint) , The proposal to roqulro the banks of the country to jruarantce each other's deposit owe It preaeut strength to the financial disturbance of lust fall, It I urged i a mean of preventing panics, and there I no dlaagreemeut bout the desirability of accompli! ing that purpose. Most of us agree that a repetition of the conditions which existed last fall should bp made tuipoMlble, but this la by no means the only way to do A, or the best way. For ytsrs the sdrecatel of compre hensive currency reform bave pointed out that with 114,000,000,000 of bank deposit In tli country and only about f3,000,000,000 of money all told u tho couatry, both In the banks and out, there should be some method provided by which, on the bails of good aswt. the supply of lawful currency could be readily lucreawd to meet exceptional demands, whether such demands were due to seasons of unuaual bualm-sa ac tivity or to alarm among depositors, Xhelr foresight and arguments did not rail, but they are hardly to be swept off their feet now by Impatient seal for this new, and, aa they regard It, 111 considered scheme, They stand for a complete and scientific treatment of the subject The guaranty of deposits is a crude nd Imperfect remedy at beat It doe not recognise or attempt to cure the defect Is our banking and currency Systems, but alms only at persuading depositors not to draw their deposit. The losses to depositor by the failure of national bank baa become an lna!g niflcant percentage, and Is growing jess very year, as a result or natural, vo' lutlonary progress in bonking. The standard are being constantly rataed, and the efficiency of official inspection and supervlalon constantly Improved. The true line of development Is not by any revolutionary policy, but by hold ing Individual baukera to yet stricter account, and at the same ttam enabling every properly conducted bank to readily obtain a supply of cur rency to meet all demands upon it The fundamental weakness In our currency system Is In the fact that it is not readily reeponalve to the needs of the country, The legitimate demand for money varies from year to year, and from scasoti to season In the same year. It la a familiar fact that thore la a great deal more bualneaf to be handled from 8eptenilcf 1st to Decem ber 81st each year tbsn In any other four months of the year, but then la no more money In the country unless gold 1 Imported for the purpose1. WobM Ln4 Rtoklma Daakla. As a remedial measure the guaranty of bank depends Is not only Inadequate, but It is worse than Inadequate, for It propoeea to overturn the principle of individual reHpoiislblllty by mean of which the banking buttlne ha a been rained to It present high standards, and upon which all Individual and ao rtal progreaa la baaed. The proposal contemplate that the public ahall be relieved entirely from the exercise of judgment and dis crimination In the choice of banns, and while It la highly dealrablo that all banka ahall be made safe, to the end that even tbo moat Ignorant and con fiding may be protected, it is still true that an alert public opinion haa great influence In, maintaining proper bank ing atandnrda. We cannot afford to do without that Influence. Under present condition the invest ments, the personal mibita, the general character and abilities of the banker are under the constant scrutiny of the community, and a matter of public In terest, Notwithstanding occasional In stances In which the public baa been deceived, It may be stated aa a general proposition that an unblemished char acter and a reputation for good bust lies ability and conservative Judgment have been necessary to success in the banking business. The public looks over the Individual who Is to receive, and invest and bs responsible for It money with some discrimination, and the elimination of the unfit by the scrutiny and composite judgment of the community la a fuctor of the highest value In maintaining the standards of the banking business. It is, hosvever, a factor entirely overlooked by the ad tocntea of this scheme. They calculate the Insignificant per- centuge of Jobs to total deposits Under present conditions, and assume that no greater losse would occur after char acter ceased to be a fuctor In the busi ness, and all deposit wore given blind ly to whoever would bid highest for them. To the objection that this elim ination of character a a factor in tho acquisition of -deposits must tend to promote reckless banking, reply is made that bankers will be deterred from recklessness by fear of losing their own money, The reply misses the point. All men are not deterred from recklessness by fear of losing their own money, but reckless iue are now, is ruts, kpt out of the bankisf tor turn by the unw!HIn" of the pullis to sutrust money t their etM. iCaeefml ' ' Under "present condition tber art compensations in favor of careful and conservative banking, There are p" pie who are not Influenced In their se lection of a bank by t highest rots of Interest offered od depoalts, and who bave their suspicions aroused by th tender of exceptional inducement. They know that such offer put s trsin upon the business, and they de liberately prefer to place their money with a banker who vU not stibjwt himself to such strain. These dVpfott ors esteem safety libovs all other con siderations, and (hey are jjumerouj enough to exercise a fery wboieaome restraint upon reckless tendencies Jr. the business. A banker now prlaes the reputation of doing safe busluess, and cannot afford to have a reputation for imprudence and speculative In clinations. And yet, although held in check by these powerful considerations, tbs preasurs of eompailtion carries the business near the danger Hue en-n now. There is too much competition for deposits, and the ambitions f the mors venturesome member of the fra ternity, and the pace $7 set, puts the whole system under strain. w But what arc likely to be the con ditions In the business when the public Is no longer concerned about the man agement of a bank, and all , the re wards for conservatism and" restrauN upon recklessness are removed? The considerations which in the past have tended to safcguird the business and advance its standards would be gon.v The public would cere nothing for the personality of the banker. Inatead of looking to the Listltution which recelr d the deposits, the depositor would re ly on an outside fund. A auker might bet all the deposits on bore race without the fact becoming 0 mutter of any concern to hi custom- And. how would the conservative, prudent banker fare under these con ditions? The legitimate reward for maintaining that character would be lost to blm. He would get no deposits unices be bid as high 'or them a bis rivals, for the government would stand behind the latter, snd assure the put He that they wets Just he. and tux hi m to make them se. In short the reckless and inconi;tent peo pie, who are now either excluded from the banking business, or held in cbeck by the distrust which a discriminating public fuels towards them, would make the pace to which everybody else In the bunking business would be obliged to conform or get out of the business. Weald Demeralla Baalaeea, Tb hardest competitor in any line of busliies 1 the Incompetent or dis honest man who doe anything to g" business. Such people get into th,' banking business even now, but their number and influence for mlschlff would be greatly Increased If they were backed up by unlimited credit. In other llnea there may be some question ss to tbo quality or icrvlce offered by rivals, but all bunkers deal in the same kind of money, and If deposits were made a Jolut liability, there i no rea-! son why they should not go to the j bankers who offer the greatest Induce ment to attract them. Tb careful banker would bave no off-set or protec tion against demoralising competition, and be would be placed In the strange position of belug liable for bis com petitor's obligations. All efforts to make It appear that the Interests of bankers are on one side of this question and the Interests of de positors on the other are untrue to tbo facta. Nothing that in the long run ia harmful to the banking business, that puts It under strain and tends to low er Its stiinil". Is, enn be beneficial to depositors or the public. It cannot be advantageous to the community to have Its savings end working capital pass Into the hands of the venturesome class of banker who will bid most for them. The . actual waste and loss through unwise Investments would fn- evltnbly Increase. It would faH at first on the conservative bankers and penal ize them. Instead of an elimination of the unfit, which la the true process of evolution, the tendency would be to an elimination of the best. Eventually the burden of Increasing waste would have to be borne by all depositors and the whole commuulty. : Oklahoma Trial InoonclolT. Tho fact that the first bunk failure In Oklahoma after the faw went Into effeet, was followed by immediate re imbursement of the depositors, proves nothing as to the practicability of the Bysteni in the long run. The fact that the State bunks of Oklahoma have gained deposits since the system went Into operation, while national banks within tho State have lost, If true, prove nothing as to the merits of the system. The law itself requires that all, public deposit must be kept in banks that belong to the system, and this provision alone would cause a con siderable trauafer of deposits and In fluence some banks to Join tho system, The reul test of the policy will come In Its Influence upon the banking busi ness In the long rim, Will ft tend to socure more 'careful and. prudent in vestment of the vast sums which the people of the country keep In banks, or will It tend to weaken the personal re sponsibility for these funds and divert them into incapable and wasteful hands. It 1b a superficial view whle1 lays all emphasis upon the Immediate results of the law and gives uo con sideration to Its vlolntUn of funda mental principles and the consequence which niuat follow. An Unaccepted Cballense. To Mr. Bryan's complaint that the federal authorities bave not prosecuted tiie united States Steel corporation Attorney General Bonaparte has made a reply which clearly entitles ths Ne braska agitator to the protection of me uocioty For the Prevention of Cruelty to Children, Mr. Bonaparte says: , "I have no information, official or personal, that Mr. Bryan has violated any federal statute. Therefore the department has not prosecuted him. I have no information, official or per sona that the steel trust baa violated any federal statute. Therefore the department has not prosecuted it If Mr. Bryan will give me such Informs. tlon about tha steel, trust the steel trust will be prosecuted, and if the steel trust win give ma auch informa tion about Mr. Bryan Mr. Bryan will t prosecuted. But in either case I ahall want specific charge, sustained by legal evldenca and verified by an Impartial Inquiry, not loote talk, em bellished by oratorical fireworks and evolved from the inner consciousness of aa eager and perennial candidate for office." Mr. Bonaparte's attitude is old fash- loned-Hdlcuously old fashioned-from tha Bryan viewpoint He holds to the principle that neither an Individual nor a corporation should be condemned without trial, that there eboutd be no trial except upon formal complaint and that no complaint ahould be considered unless backed up with competent evl denca worthy of Judicial investigation. That U the Bonaparte attitude and the Republican attitude. Mr. Bryan's attitude 1 radically dif ferent lie would crush the Interstate corporations and try thera afterward. lie regnrda their very existence as proof that they are lawbreakers. He would indict them on hearsay testimo ny, jplaco them on trial in the absence of a ormal complaint and convict them In obedience to popular clamor, Irrespective of their guilt or innocence aa determined by established rules of evidence. The Republican contention Is that corporations, being tha creatures of law, can be effectively controlled and regulated by law and that they ahould not be penalised except bf due legal process. The Bryan policy Is that tb only way to reform them is to destroy them, that they are in the very nature of things enemies to the common good and, that their prosperity may jusUy be confiscated without procesa of law. Bryanlam alma at the destruction of property rights Invested in corporate organisations. Republicanism insists that those rights, aa defined, by law, shall be preserved. Attorney General Bonaparte's chal lenge will not be accepted. Mr. Bryan is dealing In theories, not In facts, this year and has no time to devote to such trifling things as law and evidence. He know in his heart that If be had a prima facte case against the steel corporation and the moral courage to aubmlt It to the department of Justice at Washington the machinery of the law would be Instantly set fa motion to prosecute hi complaint On the other hand, he is just as well aware that even though he were a thousand times accused, anonymously or unoffi cially, of violating the federal ataf ntcs the attorney general could not proceed against him except on a form al, sworn complaint aupported by competent legal evidence. Mr. Bryan is at liberty to swing; himself on either horn of the dilemma. Ilia puerile whine that the government has not prosecuted the steel corpora tion 1 due either to shameless hypoc risy or shameful Ignorance of the first princlplea of law. Roosevelt on Taft, the Laborer's Friend. If thare is one bodyvof men more than another whose support I feel I have a right to challenge on behalf of Secretary Tart It Is the body of wage workers of the country. A stancher friend, a fairer and truer representa tive; they cannot find within the bor ders of the United States. He will do everything in his power for them ex cept to do- that .which is wrong. He will do wrong for no man and therefore- can be- trusted by all men. GoTeraor Hughes on Tarlflf RovUlon. Tariff revision there must be. It should bo prompt thorough and fair. But tho pol&y of protection will be maintained and American Industry, in volving the Interests of our wage earn ers, must be properly safeguarded. "I ask." shouta W. J. Bryan, "who ahnll save the people from thera aelvesr Then, with the "shrinking modesty peculiar to himself, he deco rates his countenance with a blush which signifies that Barkis Bryan la wlllln'. If, as Mr. Hearst says, the Demo cratic party la now "drunk with pow er," what a fearful spectacle It would present If It were given any more power. It la strange that if Mr. Taft Is uri friendly to labor some complaint of his treatment of them should not have come from the 30,000 workmen whom ho employs cm the Panama canal. AMUSEMENTS. .-.Astoria Theatre... Saturday After the Make Be lieve, Come the Real Notable Tour of illlSlPBE'S FAMOUS Minstrels Thousands of Dollars Invested in Its Equipment A VERITABLE DREAM OF THE ARABIAN NIGHTS FREE STREET PARADE AND CONCERT AT NOON Prices 25c, 50c, 75c, $1.00 Astoria Theatre SATURDAY, OctlJ KLIMT & GAZZOLO'S MELODRAMA The 4 Corners oi The Earth The Melodramatic Hit of the Season A SCENIC MASTERPIECE A Pure, Wholesome Story of Con vincing Power, Embracing the Gamut of Human Emotions PRICES ....25c, 35c, SOC, 75c THE GRAND THEATRE Commercial and Ninth Street, Tonight A Daughter of Erin THE ORPHAN or A MOUNTAIN ROMANCE THE MASHER SONG Whiltf the Old Mill-Wheel is Turning Trip THROUGH SOUTHERN STATES This Theatre is equipped with the latest and moat improved electri cal Machines. Don't ail to see these pictures. ' ENTIRE CHANGE OF PROGRAM MONDAY, THURSDAY AND SATURDAY. ADMISSION 10c Children 5c, ... - vv f By buying alleged bargains in unre liable stores. To claim to give great values is easy, and a very common practice, but to actually give them is rare. We have, a reputation for keep ing our promises and more. We do more than we claim, hence the steady and natural growth of our business. You will find that by steadily dealing with us you are saving money all the year round. ' ; ' Have you seen the fine display of new style Heaters, in our big stove department, upstairs? HiSMttaiC. pOTfCB' The agency of the San Francisco Examiner is now located at Whitman's Book Store. Price 75c per month delivered. Subscribers not getting papers regularly notify its at once and) agent will call. Quick delivery guaranteed. l7lITr,Jll'S BOOH Fisher Brothers Company SOLE AGENTS 'l; f Marbour and Finlayson Salmon Twines and Netting . MeCormJck Harvesting Machines Oliver Chilled Ploughs Sharpies Cream Separators Raecolith Flooring ' Storret's Tools Hardware, Groceries, Ship Chandlery Tan Bark, Blue Stone, Muriatic Acid, Welch Coal, Tar, Ash Oars, Oak Lumber, Pipe snd Fittings, Brass Goods, Paints, Oils and Glass Fishermen's Pure Manilla Rope, Cotton Twine and Setn- Web We Wont Yowr Trade FISHER BROS. BOND STREET Only All Rail Route to Portland and all Eastern Points. Two daily trains. Steamship tickets via all Ocean Lines at Lowest Rates. For rates, steamship and sleeping-car reservations, call on or address ' G. B. JOHNSON, Gen'I Agent 12th St, near Commercial St FINANCIAL. Saving's Accounts Savings Deposits are received from $1 up, on which inter est is paid. This form of deposit is of especial value in building up a bank account, 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. WS3 First national Dank of Astoria DIRECTORS ' ' ' Jacob Kamm W. H. McGregor ' G. CFlavel J. W. Ladd S. S. GoRDONQiLtcr Capital .'. , $100,000 Surplus . ......... Y. 25,000 Stockholders' Liability ... 100,000 : ESTABLISHED 18HCI J. Q. A. BOWLBY, President J. W. GARNER, Assistant Cashier O. I. PETERSON, Vice-President s FRANK PATTON, Cashier ASTORIA SAVINGS BANK CAPITAL AND SURPLUS - $227X3 ? Transacts a General Banking Business Interest Paid on Time Depos e Four Per Cent. Per Annum Eleventh and Duane Sis. . . . . . Astoria, Oregon SCANDINAVIAN-A A BR I C A W SAVINGS BANK r fABTORIA,' OREGON Ear-1" OUR MOTTO: "Safety Supercedes AH Other Ceasjftil-.j.' I il ASTORIA, OKEGQN. as it admits of withdrawals M i !5S Li us a
