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DECEMBER 13, 1907
The Commoner.
3
Is?
It would be hard to support a position that
would put the Interests of the stato banks above
the Interests of the depositors.
But the answer to this argument Is that
the state ought to provide similar protection for
depositors in such banks and until this can bo
done the state banks ought to bo permitted to
avail themselves of the national guaranteo if
they are willing to place themselves on the same
"basis in regard to inspection and security.
To sum up the situation, the depositors
need security and this must either be given by
the postal savings banks, which will grow until
It has absorbed the deposit banking of the coun
try, or it must bo furnished through the guaran
tee of existing banks.
"We believe it is better to give it as far
as possible through existing banks than to have
the government embark in the banking business
on so large a scale, as it would have to do if
the postal savings banks were the only ones
in which depositors would feel safe.
It is sometimes argued that the system of
guaranteed banks would relievo bank ofllcials
of responsibility and make them careless in re
gard to the bank, but there is no truth in this,
because the officials are chosen by the stock
holders and the stockholders will lose every
thing before the associated banks will have to
pay anything to depositors, and this loss to
stockholders will in itself be sufficient to com
pel carefulness. When banks become liable for
each other's losses it will make it easier to en
act stringent laws for the regulation of banks
laws for instance which will prevent directors
from exploiting with the depositors' money, and
laws that will prevent the officials and directors
from gambling. These are the two sources
through which defalcation generally comes, and
It will be much easier to improve the manage
ment of banks when each bank feels an interest
in the solvency of the other banks which are
joined to it under the plan.
It is sometimes declared that the govern
ment has no more rig.vt to guarantee a bank
than it has to guarantee the price of corn or
cotton, but the fact is we have always recog
nized the distinction between money and other
forms of property. We have usury laws regu
lating the rate of Interest, but no law regulating
rent; we have laws for the inspection of banks,
but no law for the inspection of stores; we have
laws limiting the amount of money that can be
loaned by a bank to one "borrower, but no law
limiting the amount a merchant can buy or sell.
Money is the life-blood of commerce and the
present stringency shows how easy an unreason
able fear on the part of depositors may paralyze
business.
We do not know what the senators and con
gressmen may think of the plan, but we believe
it is the duty of every citizen to propose what
he thinks Is best and give his reasons and then
leave the people and their representatives to
sit in judgment upon the plan. Some plan must
be adopted and we know of no other that is so
effective, or which can be put into operation as
quickly. The government is not going beyond
Its legitimate bounds under the strictest con
struction of the constitution when without cost
or risk to the treasury it restores confidence
throughout the country, putting the expense
upon the banks which will get the benefit of the
Increased deposits.
OOOO
CAMPAIGN CONTRIBUTIONS
Mr. Roosevelt's suggestion that the gov
ernment appropriate money for the legitimate
expenses of political parties Is original and is
entitled to serious consideration. The appro
priation might be justified on the same ground
that we defend the printing of ballots In pay
ment of primary expenses by the government.
A few years ago we had to raise money by
"Bubscription to print our ballots, now they are
printed at the expense of the public.
In some places the cost of the primaries is
' still borne by the candidates, while in other
places it is paid by the county, city or state.
The public Is interested in having a campaign
so conducted that the issues shall be presented
clearly and voters fully informed. There is no
doubt that the republican party has been able
to secure enormous campaign funds by selling
legislation in advance to special Interests. If
the government should appropriate a reasonable
amount for campaign expenses and then appor
tion that appropriation between the parties ac
cording to the vote cast at the last general elec
tion, it would enable all parties to present their
- policies and thus insure more intelligent action
on the part of voters.
The president's recommendation ought to
bo taken up and discussed in nil sections of tho
country. It ought to bo, as wo havo no doubt
it will bo, ultimately enactod Into law. If to
this is added a provision forbidding private con
tributions, tho law will go far toward tho elim
ination of corruption in politics, for when tho
government furnishes the necessary funds it will
require a strict accounting of tho monoy spent.
In an article printed sovoral months ago
in the Reader Magazine Mr. Bryan said:
"It is not sufficient to prevent contributions
from corporations, for whoro there is a great
temptation to aid in campaigns, tho officers will
find ways of contributing that will not bring
tho corporation within the letter of tho law.
It is necessary that the contributions of individ
uals shall be made public where those con
tributions are to any considerable amount, and
it is also necessary that the publication shall
bo made in advanco of the election in order
that the voter may know what influences' are
at work in the campaign. One of tho Wash
ington correspondents has reported tho presi
dent as considering a law which will provide all
tho parties with necessary campaign funds to
bo paid out of the public treasury. I do not
know whether this statement is authoritative,
but it Is a suggestion worthy of consideration.
If each party was furnished with a moderate
campaign fund in proportion to tho votes which
it cast at the preceding election, and then all
other contributions were prohibited by law, cor
ruption in politics might be reduced to a mini
mum. And why should not the reasonable and
necessary expenses of a campaign be paid by
the public, if the campaign is carried on in tho
interest of the public? At present, In any con
troversy between predatory wealth and the
masses of the people, tho corporations which
are seeking special privileges and favors are
able to furnish enormous campaign funds to tho
party subservient to them, and no one can doubt
that these campaign funds are furnished' upon
an understanding, expressed or implied, that
they shall be allowed to reimburse themselves
out of the pockets of the people."
OOOO
WRITE TO WASHINGTON
President Roosevelt is quoted as having said
that while he heartily favors the guaranteed de
posit plan he doubts whether the people are
quite ready for that reform. Tho president
ought to be Informed on this subject. Let every
one who believes that this important measure
should be adopted drop a lino to his United
States senators and representative in congress.
Write, also, to tho president, thus encouraging
him to lend the weight of his great influence to
a plan that, in the opinion of many well In
formed men, Is necessary for tho resumption of
commercial order.
OOOO
CAN NOT?
Henry Clews, the New York broker, being
asked "would it benefit the country If the buy
ing of stocks on margins were to bo prohibited
by law," answered. "No; and it can't be done."
That's what the owners of the powerful
Louisiana lottery said a few years ago; but they
soon realized their mistake. The lottery is a
thing of the past and the way the lottery went
stock gambling will go, once the American people
are thoroughly awakened to the damage it does
to the real business Interests -of the country.
OOOO
A TARIFF OBJECT LESSON
Mr. Bryan is in receipt of a practical dem
onstration of the iniquities of tho present pro
tective tariff law in the shape of a handsome
hunting case gold watch, Elgin movement. The
watch was presented to him by Mr. Charles A.
Keene, president of the Independent Watch
Dealers' Association. On the front of the case
is engraved words to the effect that the watch
was presented to Mr. Bryan by Mr. Keene, and
on the back is engraved the following:
"As a demonstration of the methods of the
American watch trust, this watch was bought
in England for $7.98. The same grade cost
the dealer in this country $10.58, a difference
of nearly fifty per cent."
Attached to tho watch is a card bearing
an explanation of the way In which American
watch buyers are "held up" by the watch trust
through the power conferred upon It by the
DIngley tariff law: ,,,,
"This watch was purchased In England by
Charles A. Keene, a dealer in watches at 180
Broadway, New York. It is an Elgin movement
with a twenty-year gold filled case. It was sold
in !e 1Amcr,3ftn watoh trust In England for
$7.98 in America the dealer must pay tlQ,6$.
Here Is tho number of tho ease, 7,486,367, and
movomont, 12,212,210. This statement can bo
vorlfiod by tho books of tho makers."
In brief tho Elgin Watch company inado
this watch, shipped it to England and sold it
for $7.98 after paying earrlago and Insurance
But tho American dealer must pay $10.68 for
tho samo watch because tho Elgin Watch com
pany Is protected to such an oxtont that It can
levy a toll of $2.00 on each watch Hold to an
Amorlean watch buyer. This protection Im
granted on the plea of "protecting American
labor and "fostering Infant industries." Tho
Elgin Watch company Is one of Uioko "InfantH"
that long since doffed its swaddling clothes and
now wioldH a club socurod through special legis
lation which onablos It to force American buy
ers to pay It tribute and at the mi mo time com
pel Its employes to accept any wngo terms tho
company offors. No one bol loves that tho me
chanic who make these watches get any part
of the $2.00 exacted ns tribute from the Amer
ican buyors that Is no one who does not yearn
to bo deceived and who roally llkos to bo forced
to pay tributo to arrogant trus'.H which are al
lowed to exact tributo tli rough upoclal legisla
tion. Mr. Bryan appreciates Mr. Koeno's gift be
cause of (ho kindly sontlmontH of the giver, and
because it affords a convenient and practical
object lesson to those who still boliove that "the
foreigner pays the tax."
OOOO
A MILD REBUKE
In an editorial entitled "Prosidontlal Popu
larity" tho Wall Street Journal says: "Now It
is said that Roosevolt must boar tho blame of
tho financial disturbance and that the closing
of factories, the discharge of workmen, and tho
declino in trade will all be attributed to him.
His enemies nro becoming more aggressive Thoy
declare that his star Is descending, that his day
Is pnssing. Never beforo in all his political
career has Roosevelt been subjected to the samo
degree of denunciation as ho is at tho present
time. Even an associate Justice of the supremo
court of the United States publicly charges Mm
with 'playing hldo and seek with tho Amorcan
people.' Tho ex-senator who Is commonly es
teemed as tho best constitutional lawyer In tho
country, practically accuses him of violating or
twisting tho constitution. Countless business
men arc charging him with having destroyed
confidence and producing trade depression.
Newspapers teem with criticism and accusing
cartoons, and one persistent editorial enemy goes
so far as to speak of the illustrious occupant of
the White House as 'an Imperial dead-boat.' Tho
columns of American Journalism during the past
century may be searched in vain for tho equal of
this degrading epithet hurled at a president of
the United States."
Very mildly, indeed, does the Journal re
buke these bitter criticisms. Indeed, tho Jour
nal is so tame on this subject that ono Is tempted
to suspect that among the one time worsliippora
at the Roosevelt shrine the Wall Street Journal
has grown cold along with others too numoroua
to- mention.
OOOO
OF COURSE
In an over-heated editorial the New York
World says: "Our conscience Is clear." Of
course It is. Did not tho readers of the World
know, through display headlines printed in tho
World itself, that the London Telegraph had
given to Joseph Pulitzer's organ this certificate
of character: "The New York World
holds an unassailable position in America as an
independent newspaper, unbought and un
buyablo." OOOO
THE SMILER
Be a smiler up the hill, l
Rough or smooth, keep smiling still! ;,
Be a smiler let the throng
Hear your laughter and your song; ;
Let the echoes of your cheer
Calm the sobbing, stay the tear.
On the lips and in the eye
Of a brother passing by!
Be a smiler with the ring
Of the heart of youth and spring
In your "Howdy-do, today!"
To the neighbor on your way.
Baltimore Sun,.
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