Price SI.50 RIPON For~M
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June 1978 Volum e XIV. Number 6 Price SI.50 RIPON fOR~M VIEW FROM HAWK INS GORE 2 A discussion on the great bank fa ilure of Bingham Depot COMM ENTARY 4 lew From PROSPECTS FOR PEACE Hawkins Gore IN TIlE MIDDLE EAST: 6 A DEBATE Excerpts from a panel discussion The Great Bank Failure held during the Issues Conference by Hollis Colby POLITICA L POTPOURRI 14 " w e all thought it was a mite curious Ihat Perley Farnham had nOI been seen down at Blodgell's BUREAUCRACY for about a week , so one day we deputized MARCHESON Luther Leach to go over 10 Perley's to find where he was 16 at. It warn't long before Lu ther come back with a report. " Perley," reported Luther to the assembled members of the Hawkins Gore Historical, Lite rary, and Athletic Wa ger ing Society, "is alive an d well and furthermore is preparing an address to our esteemed society to be delivered on Wednesday next for the benefit of those carin' to come to RIPON fOR~M hear it." Editor: Arthur M. llill /I Executive Editor: Steven I), Livengood Now Perley was always the studious sorl , but it had become Art Director: ,·Jizabeth Lee (The Graphic Tuna) apparent tha t he was aimin' to outdo hisself this time . We nalUrally wanted to know what it was he was go ing 10 Till' RIPON FORUM is published monthly by Ihe Ripon Society, Inc. delive r to us, so Luther was dispatched once more to the In the publication, Ihe Society hopes to provide a forum for Farnham homeplace for more information. In shari order fresh ideas. \\'ell researched proposals, and a spirit of crcath1! he reappeared to announce that Perley's topic was to be criticism and innovation in the Republican Pany. ManLl "The Great Bingham Depot Bank Failu re." sclipa and phOlographs arc solicited, but do not represent the vie ..... s of the Society unkss so Slated. Cunlcnn arc copyrighted 01978 by Ihe Ripon Society, Inc .. Several of us old timers could remember sori of hazy-like 800 181h SUcCI, N.W., Washington, D.C. 20006. Ihe troubles over to Bingham Depot back about' J 3 or so, SLibscriplion ralc$: SIS pt'l year, $7.50 For students, servia: bu t none of us could think up a good reason why Perley men, Peace COIPS, Vista and other volunteers. Overseas, would get so exercised about the matter at this late date. add $6. Please allow five w~ks For address changcs. So when our rustic savant and friend appeared the follow· The Ripon Society. Inc., John C. Topping. Jr., President, is a ing Wednesday a large and enthusiastic crowd of maybe ten RepubliCan reSl'arch and policy organiution whose members are business, academic, and proFessional men and womcn. folks including 'Lias the storekeeper was eagerly awaiting It is headquartered in Washington, D.C.. with fifteen chap his no doubt edifying an d inspirational remarks. ters, seve rol aFfiliated subchapter!. and National Associate members throughout the United States. The Society is sup ported by chapter dues. individual contributions. and reve "My topic today, gentle men, is the Tragic Failure of the nues Frolll its publications and contract work. Fi rst State Bank of Greater Bi ngham Depot in the Year 19 13, and Its Lesson for the Present Generation and Them 2 Ripon Forum as Yet Unborn," Perley began. We agreed to a man that Bingham Depot," replied Perley gravely_ "They was told thai was a mighlY impressive title for a talk. Someone said that the shock wave resultin' from the failure of the Bing it was a danged shame that W. Michael Blumenthal wasn't ham Depot bank would spread around the globe, playing present to participate in the listening. He is the auto parts hob with civilization as then known _ BUI to their credit, felle r that Mr. Jimmy Carter put in charge of printing the legislature held firm. They agreed that failure of the money, in case you ain't heard of him. bank would be a blotch on the hitherto pure record of Ver mont banking, but that it would also be a fine example to "The tragedy of Bingham Depot began when the rich encourage posterity to manage other people's money Widder Peebles got the idea she would collee! all the in prudent-like ." heritance her husband had left her and deposit the funds in the bank at Bingham Depot, where her pa had gTowed "When the effort to get the gUlll mint to bail out the bank up," continued Perley_ "All ofa sudden the bank had more fa iled , things unravelled pretty quick in Bingham Depot. money than they had any idear what to do with. The man And the legislature was right - because of what happened agement decided to make business loans as cheap and easy Vermont bankers have been mighty ca reful ever si nce, as possible so that Bingham Depot would become the new for which we can all be thankful." industrial Colossus of the Northeast. This was in the days, remember, when our country banks could not just wire At this point Perley stopped, and for a minute we all sa t their funds down to the Chase Manhattan every day at around feeling thankful like he suggested. Then ' lias, three o'clock and not bother with servicin' 1111 these local lea ni ng over the counter, said " Perley, that's all mighty borrowers and such," said Perley_ interesting, but how come you bring all that up here in the waning days of the Twentieth Century?" ·'Well. when news of this cornucopiar of loans spread about, everyone and his brother hatched one scheme or another "Waal," says Perley, who had been hopin' somebody to gil some of it. Wilf Rodgers got a bunch for a monstrous would ask, "ain't we about to go throug.h all this again?" big birch beer factory . A bunch more went to the Modern Everybody looked puzz.led, since there ain't even a village Times Pung Works over in Goose Green . They even lent at Bingham Depot since the St. Johnsbury and Orient money to a feller to build a zeppelin base so everybody tracks was torn up in the Thirties. coming here from Europe would have to alight in Bing.ham Depot.'· " We're about to do it again down in Wa shington , D.C." declared Perley. "Them A-tabs 10 whom we arc sending all "Now some would say," Perley continued, "that these them oil dollars are a-puttin the lIloney in European bran en terprises was 1I0t entirely up to the tried and true Ver· ches of OUf American banks_ TIlem banks are lend in' the mont standard, and by Jesus they warn't far off. But no money out for long-term loans to 3 whole bunch of funny one paid no attention, not until the dark day when Widder little countries rer ridiculous projects nOI much better'n Peebles changed her mind." zeppelin depots. If the A-rabs ask for all their deposits, like the Widder Peebles, the banks will have to find some "Seems her inveSlment advisers and lawyers discovered she assets right quick_ Them little countries can't pay up on was getlin' only 2 and a half percent interest from the their loans. So the banks are lookin' to the U-nited States Bingham Depol bank. They told her that her silly senti gu mmint to slip in a few billion here and there so the banks ment was costin' her something like ha lf a million bucks can get out with their skins while you'n me the taxpayers a year in interest, back when that amount of money meant of the U-ni ted States take what is called in business circles something. So they had her just up and withdraw her de a hell ofa balh!" posie" Well, Mi ster, I can tell you Ihat that was a bit of a bomb "Well, I tell you," said Perley, "there was a lot of scurrying shell! We knowed it was a hundred percent true because and handwringing when that leiter come. The bank run Perley is mighty careful about his homework and sees around and called in all the loans, but of course a dozen through things quicker than any three men standin' side by half built pungs and a fifty.foot tall all-spruce ze ppelin side and squinting. mast wasn't close to enough to payoff the deposi t. Some thin had to be done mighty quick. The bank directors So we done something about it. We set there and com hit upon a desperate and disgraceful plan." posed a telegram to President Jimmy Carter. slyly playing on his well·publicized religious sensibilities. It read "Dear "Off 10 Montpelier they went, to ask the State of Ver· Mr. President: "God don't want you to sign no bills to mont to set up a loan fund to help "struggling industries." bail out all them big banks which is trying to stick us U.S. This fund would make loans to the pung works and birch citizens and taxpayers with a bunch of bad loans when the beer factory and zeppelin depot and all the other screw crunch comes. We know He don't because otherwise He ball enterprises, so's they could refinance their bank loans wouldn't have told us to send this telegram_ Re spectfully and the bank could then meet the claim of Widder Pee· yours.