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Show Deposit 'Guarantee' Fails of Purpose nrHE editor of the Norwalk, Ohio, A Herald takes a somewhat different dif-ferent view on the banking situation situa-tion from a gooc1 many people. His Idea is as follows: "With rents falling and unpaid, real estate does not present a happy picture. Nor' does the owner of carefully selected bonds feel any happier, with a bunch of them going go-ing wrong. A lot of folks very carefully care-fully invested in preferred and common com-mon stocks in the finest companies In the world and have seen them fall to perhaps a tenth of what they paid for them, and no dividends at all. Some folks I ept their money In savings accounts in banks, and some banks have closed and left them high and dry. Jut the situation is worth looking at very carefully. "On government authority, most banks that closed were really solvent sol-vent but for frozen assets and popular popu-lar timidity. Gradually the closed banks are coming out from under and depositors In even bad cases will get at least 60 per cent of their savings. That's tough of course; nobody no-body likes to lose half of what they had scrimped and sacrificed and saved. But when you hoard and stick the roll of bills In a coffee pot or under a mattress, some plug-ugly comes along and burns your feet . till you tell him 'o take It and wel- come. "And what about the great majority ma-jority of banks that weathered the storm, met all comers and are doing business as usual, carefully and conservatively, con-servatively, but safely? What about the savings In those banks? They ! are a full 100 per cent today and they are the only thing we know of at 100 per cent anywhere. After all Is said and done, a good, well man- . aged bank is still the best place in all the world for money or savings. . Right now In Ohio the banks pay the taxes on all savings and pay their depositors net Interest on their savings. We can't think, Just now, of many olher Investments that are a tenth ' s safe as a savings account In a solid bank. Why, even a savings account In a closed bank is actually wort more today than ; moat stocks." |
