Ok. Me and my friends recently started a band. We've practiced a couple covers, did the school talent show, yadda yadda yadda, now we're trying to come up with original songs.

It's a four piece band, I sing/play guitar, the drummer drums, but the other two guys don't really have a set instrument. When we did the talent show one played guitar on one song and the other played the other two songs. The problem is they both kinda want to play guitar all the time.

It wouldn't/shouldn't be a hard decision except that, the better guitarist is also and mostly an AWESOME bassist. He's great, he comes up with badass licks and is just a really good musician. He plays guitar really well, but he doesn't have any guitar equpment (ok I take it back. He has a broken Stagg that he uses to practice. He traded it for a paintball gun or something when he was 15). He just has his bass setup. And he won't/can't buy a setup. He has no money. He's dirt poor. He raised his money for his setup by stealing stuff and selling it to other people, and mowing yards.

The other guy is not as good (I'm probably better than him) and definately wouldn't cut it as far as lead guitar goes. However he has promised to buy the necessary guitar equipment (a gig/ rehearsal amp instead of just a bedroom amp) instead of us having to borrow it from someone else.

I already have a guitar/amp/PA system that we use, so its really just a second amp that we need (unless we cut down to a one guitar band, which none of us want to do).

I don't want to tell him to buy the stuff if we're gonna stick him on bass all the time, but I don't know if I want him to play lead either. It's already kinda a sore spot (there was a small fight last time) and I'd like to figure out a way to resolve it. I told him that we'd let him play some of the guitar parts if he could learn them (it's not that I don't think he could, its just that he wouldn't play it as well) but I'm afraid that's only a temporary solution. I'm not really the "band leader" per se, but I am trying to keep it together/running smoothly, and so far I've contributed the most into the band (place to practice, PA, I have the truck to transport stuff) so I hope/think that if I make a decision it will have the most impact on the two.

Did I do the right thing, and how can I resolve this problem.
If at all possible put the better guy on guitar, but if you have to put him on bass and the other on rythm guitar.
ESP F-200 with Floyd Rose>

Ibanez Weeping Demon Wah
Electro Harmonix Pulsar Tremolo
BBE Boosta Grande
Fender Pedal Tuner>

Peavey Valveking 1x12