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