Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1907-11-22
MR.. BRYAN.

William Jennings Bryan, in an inter-
view in Washington last night, put HIM
self 10 the position Of being willing to
lesd his party, as distinguished from be-
ing receptive or active candidate for
the democratic nomination. He puts it
this way:
"Haying twice led the party and hsv-
Jog been twice defeated, | am no more q
candidate, butif am drafted, | will not
run away"
Mr.. Bryan gave out the following
statement in regard 10 the financial situa-
ton:
lido not know what the effect Of the
new bond issue will be, but it seems 10
me that the relief ought to come from
the other direction. The plans so far
have been intended to furnish govern
ment money to the banks, whereas Che
most important thing now is to restore
confidence in bank depositors, and thus
not only prevent Withdrawals, but secure
deposits. While the banks are good and
while the dep )sitors are not justified In
being frightened, some depositors are
unreasonable and their timidity may en-
barrass the banks. II the money that is
being hidden and boarded can be
brought back into circulation the present
stringency will disappear at once. 1t
does no good to supply money from the
Treasury if an equal or greater amount
is drawn out by deposilors.
"The administration is prepared, so
we are informed, to recommend a postal
savings bank. While this would doubt
less encourage deposits, and while these
deposits could in turn be handed over
to The backs, il does not furnish COM
plete relief, for the reason that the plan
as presented permits deposits and docs
not contemplate the opening of circu-
lating accounts. The business cOmmun'
ity, therefore, cannot use the postal
savings banks to any great extent, and.
besides, ii would take sometime TO in
auguraie a postal savings system aud
secure the necessary number OF employees
to make The plan effective throughout
the country. | believe it is possible for
the government to give immediate relief
by an act OF Congress providing for the
guarantee by the government of all de-
posts in national banks, the banks thus
guaranteed to agree to reimburse the
government for any Losses incurred, and
to make this reimbursement in proper
ton to their deposits.
"The advantage of this plan is:
"First-Thst every depositor in such
guaranteed banks will feel secure.
"SecOnd-The expense OF it Sill be
paid by the banks which get the benefit
of it, and this expense will be small
compared with the benefit gained.
"Thrd 1t can be put into effect i'm
mediately, aud thus restore confidence
and enable business to be resumed.
at is probable that all of the national
banks would be willing to take adyan-
tage of this guarantee because the addi-
iional security given to their deposi,ors
would be of great advantage to the banks.
During 40 years the average annual loss
to depositors mas been small, less than
Ito of / per cent. on The deposits so
small that it would be M Insignificant
tax upon the four or FIVE billion dollars
of deposits. The government would
have ample security in the capital and
surplus of the banks which would volun-
tarily join in the plan.
The only oil Election that occurs is that
stale banks might be less attractive to
depositors if national banks are guaran-
tie I'd. But there are two answers to this
objection. 10 the FIST place state banks
are likely to suffer if this financial strin-
gency continues, and they arc, therefore,
interested in restoring confidence; 10 the
second place there is no reason why state
banks should not be protected by SINH
lar system under which the state would
guarantee dspOsitors in state banks and
collect the expense from the state banks
G iaranteed.
81 proposed, when in Congress, the
raising of guarantee fund for the pro
lec:ion of lepositors, but the bill was
defeated by the larger banks on the
ground that The big banks would have
no advantage over The little ones If all
depositors were secured; but now that
the big banks are suffering as much as
the little ones the objection will hardly
b. made. The plan which | then pro-
p1sed would furnish protection as far as
The fund would furnish 1t, but it would
take time 20 raise such fund, and / be-
lieve it is better for the government TO
make the security absolute by becoming
gusrantor, for this system can be put in
to ops alton at once, and that, too, with
out expense TO The government, mas
much as the banks would reimburse
the government from time to time in
C Sc the government was called upon to
pay the deposits of any failed bank"