The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1907-11-23
HAS PLAN FOR
cOUNTRY'S FINANCES
StateBankS Would Be Placed
at Disadvantage by
Other Plan

Washington. No William J..
Eryan arrived here today and attend
ed The wedding OF the daughter OF a
friend. Cutter r. Bride tie held "a
conference with several other friends.
T0 the reuOSers Mr. Bryan said
THE administration is prepared, SO
We are Informed. To recommend
postal SAVINGS bank While this
doubtless would encourage deposits
and while those denosits in turn
c0uld be handed over 90 the banks. t
does net furnish complete relief be-
c8aso the plan as presented limits
deposits and does not contemplate the
opening of circulating accounts The
business community therefore cannot
use the postal savings banks 90 ans
ereat extent and besides l. would
take some time 10 lnaugurate "a postal
savings system AND secure the neces-
sary number of employees to make the
plan effective throughout the c0an.ry.
believe il ia possible for the govern
nlent 10 give immediate relief by AN
act Of congress providing for the guar
aniee By the government oi all de-
posits in an national banks The
banks thus guaranteed 10 agre 10 re-
imburse the government for any LOSSES
Incurred and to maze this reimburse.
ment in proportion 10 iheir deposits.
The advantage of llis plan is.
FlrHt-That either depositor IN such
guaranteed bank will feel sure
Second The expense oil ID viii be
paid by the banks which get the ben
eft Of II. and this expense VIII be
anall compared with lhe benefit
gained
Third-lt can be pui into eeer n-
mediately thus restoring confidence
aud enabling business To- be resumed.
ID is probable that an of the ma
lionai banks would be willing 90 take
advantage of this guarantee because
The additional security given TO their
deposiiors would be OF great advan-
iage to their deposltorsdcqGp-dh.
tage TO The banks During forty years
tile agerage annual loss To depositors
has been small less than onetenth
uf one percent. so small that 81 would
be an Insignificant tax upon the four
or five billion dollars of deposits The
government would have ample secu-
fly in the capital surplus for the banks
Which would Voluntarily join IN the
plan. A seach bank will become in
tNANHii' Ah AAtN NARifhA NAAhe--t N'it-ift ~
every other guaranteed bank il would
be easier 20 secure legislation neces-
aury for the correction Of such abuses
as exists and for the better manage
inent OF the banks For instance leg
islalion preventing oyerborr0wing by
directors and officials OF the bank
and legislation preventing Specializing
By officials
n seems 10 me that the plan sug
gcste dought 10 be acceptable 10 The
dep0sitors an of whom desire secur-
iiy. and il ought 10 be acceptable TO
ihe bankers. who win hr yell paid
by the increased deposits FOR any tax
ihat may be collected from them 10 re-
imburse the government and ] don't
see that any objection can emade To
the use of the government as guar
antOr. when it is amply protected
from loss The only objection it app
pears 90 me IS that state banks might
De less attractive 10 deposiiors of MAJ
u0nal banks are guaranteed But
there are two answers 20 this obs
lection. In the first place state
banks are likely to suffer II this hnan-
cial stringency continues and they are
therefore interested in restoring con
iidence. IN the second place there is
40 reason why state banks should not
be protected by a similar system un-
der which The state would guarantee
oeFpsltofs in state hanks.