Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-11-30

| sions. is a little too much to expect. and
| the denial of the petition does not i'm
ply any unnatural or deplorable preserva-
ton of sectional sentiment.
To be fair to the old soldiers themselves.
it should be said that very few, If any,
| of them now living in the Southern states
would desire any of these local dispense
lions in their behalf. Mr.. Calvin, The
| author of the bill. evidently has been mis-
| led as to the views entertained on this
question by the Union veterans in the
South. He certainly made a strange mis-
calculation of the attitude Of the Georgia
legislature on the subject.
INSURANCE OF BANK DEPOSITORS.
No less than twenty-five bills are now
pending in congress in relation to a re-
form of the currency, and when the COM
mittee on banking commences to formulate
a plan 1t will have an abundance Oh
schemes to select from. Among these bills
is one by Congressman C.. n. Fowler, OF
New Jersey, who, by the way, is an old
time Kansan and has a wide acquaintance
throughout the West.
Mr.. Fowler's bill differs from all the rest
In that it provides that the government
shall assume responsibility for all the de
posits in national banks as we'll as for the
currency which shall be issued by these
banks. He calls this feature of his bill
the insurance of depositors in national
banks and through it proposes the
equalization and distribution of burdens
and risks as illustrated by fire and life in
surance." To provide a fund for the pay
ment of depositors in a suspended bank
a certain tax is to be levied upon all of
the national banks in proportion to the
amount of their deposits. which fund will
be held by the secretary Of the treasury.
In support of his bill Mr.. Fowler has
culated all over the country. In 1t he gives
some statistical information hat cannot
fail of evoking the ~profoundest admira-
ton for the national banking system as
1t is at present conducted. He shows that
from 1865 to 1896 the entire loss to deposit
ors in national banks throughout the
country has been a trife less han one
twelfth of one per cent of the amounts
deposited. and therefore it is obvious that
a tax of one-twelfth Of one per cent per
annum would be sufficient to supply the
government with ample revenues with
which to make good all losses.
While, as set forth in these statistics.
be remembered that during this thirty
year period the deposits amounted to
many billions, one-twelfth of one per cent
Of which would represent an enormous
sum which might a been saved to the
people who owned 1t If some such system
as Mr.. Fowler proposes had been in prac-
tice. There are many wise financiers who
believe that the danger of loss can never
be entirely eliminated until the government
insures the payment of deposits. This
sentiment finds a good illustration In the
present agitation for postal savings banks.
The man who believes in postal savings
banks can raise no serious objection to the
pan VI lHSuTlUS udtlOlldl UdIih ucpOsllOIS
Indeed more objections might be raised to
the proposed postal system than to the
proposed national banking system, for in
the first case the government goes directly
into the banking business, while in the
second it only becomes custodian for the
insuring themselves.
1t will be interesting to discover how the
national bankers look upon the Fowler
scheme. as they are the ones who must
pay the tax. A few weeks g Charles S.
Andrews, president of the First National
bank at Brazil. Ind, sent out inquiries to
5000 national bankers for their opinions
CT the scheme of establishing a safety fund
at Washington. Sc far replies nave been
received from 34s, of whom 253 are in favor
Of such a u and 95 oppose it. Consid-
cred by circulation outstanding, the re.
plies are $3.50, 100 in favor and sS,34i. OO0 OPP.
posed. Considered by capital invested. the
replies are SIG, Csc, 900 in favor and S27, SO, 00J
opposed. Considered by deposits held. me
replies are $50, 900, 900 in favor and SIS. O33, tO
opposed. Those who gave reasons for op-
posing the scheme were mostly extensive
mixer with large lines of deposits. They
feel they would be called upon to pay
too great a proportion of the tax.
Among the replies received by Mr.. An
drews was one from a Kansas City ma.
tional banker. who said: 1T is just as
important and equitable for the govern.
ment to hold a special guarantee fund 10
secure depositors from loss in failed banks
as to provide the same protection to ia
tional bank note holders. 1t would pro-
tect where protection is most needed,
among the poor or small depositors. We
should never forget that the poor mans
all is as much as the rich mans all. 1
hope the matter will be pressed in cen
gress."
EDITORIAL NOTES.