The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1907-11-14

cost the DankS -FOUR times more, ana
would not carry that confidence with the
depositors as if such insurance is under
the supervision and control of the gov.
ernment.
EASY TO INSURE DEPOSITS.
Some may want to know how deposit
insurance can be undertaken by the gov.
ernment.
This can be done easily and splendidly
by the passage Of an act of congress, pro-
viding for an annual tax on all nation
al banks of 81 for each $1,000 average
deposit in such banks, which the forty
three years of our national banks exist
ence has shown, would have more than
paid all losses sustained by depositors in
failed banks during these forty-three
years.
These are official data from which we
have better basis of averages to calcu-
late our future losses on than any other
insurance company had as guide.
We have reason to expect that the
annual tax will be reduced one balf-50
cents-for $1,000 of deposits, as we
would have more strict inspection of
banks with result of fewer failures.
How mnch better is the insurance plan
than the asset currency plan, which will
only intensity panics, and over the pos
tai savings banks, which will only in
sure limited amount and number,
while the deposit insurance system pre-
vents panics, insures unlimited amounts
and number-one and all
A Carnegie, or Rockefeller, who
gives away in one day more than it
would take to insure the depositors in
banks for whole year, would do this,
they would atone for all the sins they
are credited with, and ingraciate them
selves in the hearts of the people who
would all acclaim: God bless them"
AS WITH NATIONAL BANK NOTES.
To show what government supervision
and control can do. Before the war the
different state bank notes were more
mistrusted and caused more panics than
the deposits in banks. Periodically the
people would run on banks with their
bank notes to get them redeemed in
specie. Then the government, with a
stroke of the pen taxed these panic
breeding notes out of existence, and sub
stituted the greenback and national
bank note which at once and for over
fortythree years have never caused the
least of fear, anf IN which not dol
lar has been lost.
The same effect will obtain with bank
deposits if insured under government
control, and give us the best banking
system on earth.
Under such insurance plan, all banks
of deposits would have to organize under
the National Banking act, which could
easily be done, and prominently and
| immensely improve our financial, COM
mercial and industrial institutions.
II tie Jonhcrs Jul TO grasp their oppor.
tupities, they will soon have to com.
pete with the government postal savings
bank, the strongest possible competitor,
which will take more of their business
than any number of insured banks could
do. The only way to keep the govern.
ment from further entering into the
banking business is to give the people
the same safety on the deposits as the
postal savings banks can give
What valid opposition could be made
to such system except by few bank
ers who fear to lose the advantage they
now enjoy over their smaller competi.
tors, or those who object to pay for
others failures, or fear multiplication
of banks; but aside from these the people
as whole will favor the plan as unit.
Let one party in our next national
platform have az one of its planks; w
are u, fdrOr ot tdTiUg the banks to insure
their depositorS, or ot establishing poStaI
S0rjngS banks, and the other party, We
are IN tdror Of dilo,riog national banks Il
issue asset currency 10 10 per- cent Of Hci,
capital uih,om Jo,d security. Is there
any question which of these two planke
the people would vote for?
Would a congressman running On a
platform favorng asset currency, ~ one
of its declarations, which is giving the
banks additional special privileges, have
any chance of election against another,
running on n platform declaring in favor
of taxing the banks to insure all their
depositsY
There is no question that the party
favoring the insurance of all bank de.
posits in unlimited amounts, and mum.
Der to all Glasses would have great
advantage over the other.
PLAN MIGHT BE MADE VOLUNTARY.
Now in case opposition to such meas.
ure should develop sufficiently to defeat
it, in spite of the Peoples wish, then an
enabling act could be passed under
which no bank need to be amenable tc
the insurance plan but under which
any bank could be organized voluntar
lily.