Lexington gazette. [volume] (Lexington, Va.) 1871-1962, 1907-11-27
FINANCIAL RELIkF PLAN
OF MR.. BRYAN

lie confidence has been to a, large
extent restored. The wealth OF
the country is as great now as. 1t
was previous to the ''scare," the
only difference icing that the pub
lie is wanting in that degree OF
confidence which is essential to the
best interests of the country. AS
one of our exchanges aptly put it,
$50 long as confidence is estab-
lished, all the machinery Offnance
and business moves smoothly ;
shake public confidence, and the
machinery is clogged destroy pub
lie confidence, and the machinery
breaks down completely"
While in Washington few days
ago the Hon. William j. Bryan
gave out the following as solu-
tion to the present financial situa-
ton:
81 do not known what the effect
of the new bend issue will be, but
it seems to ne that the relief
ought 10 come from the other di-
rection. The plans so far have
been intended to furnish Govern
ment money to the banks, whereas
the most important thing now is
to restore confidence in 6ank de-
rositors, and thus not only pre-
vent withdraw ais. but secure de-
posts. While the banks are gooc,
and while the depositors are not
justified in being frightened some
depositOrs are unreasonable, aid
their timidity may embarla.s the
banks. If the money that is be-
ing hidden and boarded can be
brought back into circulation, the
present stringency Will disappear
at once.
cit does no good to supply mon
ey from the treasury if an equal
or a greater amount is drawn out
by depositors.
"The administration is pre-
pared, so we are informed, tc rec
1mmond a postal savings bank.
While this would doubtless en-
courage deposits and while these
deposits in turn would be handed
over to the banks, it does not fur
nish complete relief, because the
plan as presented limits deposits
and does not contemplate the OPP
enirg of checking accounts. The
business community, therefore
cannot use the postal saving banks
to any great extent, and, besides.
it would take some time to inaugu-
rate a postal savings system ard
secure the necessary nun Der Of
employees to make the plan effec-
tive throughout the country.
81 believe it is possible for the
Government to give immediate re.
lief by an act of Congress, pIcvid-
ing for the q arantee by tire Gov.
ernuent of all deposits IN rational
banks, the banks thus guaranteed
III agree 70 reimburse the Govern
ment for any losses incurred AID
20 make this reimbursement ir
proportion to their deposits. The
advantage of this Plan is:
"First. Every deposition in such
guaranteed banks will feel secure.
"Second. The expense of it will
be paid by the banks which get
the benefit of il, and this expense
will be small compared with the
benefit gained.
Third. 1t can be put into effect
Immediately and thus restore con
fidence, and enable business to be
resumed.
sit is probable that all of the
national banks would be willing TO
take advantage Of this guarantee,
because the additional security
given to their depositors would be
of great advantage to the banks.
During forty years the average an-
nusl loss to depositors has been
sDall, lees than one-tenth of per
cent. on the deposits; go small
that it would be an insignificant
tax uron the $4,000, 100000 or
$1,000, 900, DOC of deposits. The
Government would have ample Sc
cuTity in the capital and surplus
of the banks which would volun-
tsrily join in the plan. As each
bank would become interested in
the proper management of every
OTHER guaranteed bank, it would
be easier to secure the legislation
necessary for the correction Of
such abuses as may exist and for
the better management of the
banks-for instance. legislation
preventing over-borrowing by di-
rectors and officials of the bank,
and Legislation preventing specu-
lation by officials.
81 proposed when In Congress
the raising of guarantee fund for
the protection of depositors, but
the bill WIS defeated by the larger
hanks on the ground that the Big
banks would have no advantage
over the little ones"
A crippled woman and blind
man were married Tueedav in tho