The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-11-23

Much interest was manifested Yesterday
in financial circles in the plan proposed
by Mr.. William Jennings Bryan. that the
government should guarantee the deposits
IN national banks, and by that means re-
assure persons having money in such
institutions. Many thought yesterday
with Mr.. Bryan, that the public announce
ment Of such policy would go very far
toward restoring public confidence at pres
ent, and guard against times Of stringency
such as the country has experienced with
in the past few weeks.
a Washington Herald reporter yester-
day talked with the presidents or cashiers
Of the national banks in Washington. ask
ing for expressions Of opinion upon the
plan proposed by Mr.. Bryan. The ma
jority of those interviewed while unwill-
ing to be quoted for publication, declared
that the plan was a good one, provided II
could be carried out. One prominent bank
president said he was heartily in favor Of
the plan.
Regarded TOO PaterraI."
Two Of the bank presidents said they
could not quite see how the plan was TO
be applied, without being too paternal.
rs they expressed ii. Both men talked
about in the same line. saying that 10
all intents and purposes the United States
government was now behind every dollar
entrusted TO national bank. They in
terpreted the national banking act with
the several amendments thereto. as being
about as ar as the government ought 20
go in the direction of meddling with the
affairs Of private Institutions These
men thought the banks should be left
as they are. and some arrangements eff
fected for a more elastic currency. either
by means Of credit currency or by Gre
ating in the Treasury itself a central
bank Of issue, according to the plans pro-
posed recently by financial writer's
Called "MushrOom Idea"
one OF The venerable bank presidents Of
the city, who has studied the question
deeply, said the plan was a mushroom
idea He said there were many persons
outside Of banks who do not understand
well the financial conditions Of a given city,
or the relation which the small city bears
10 the larger one. who make suggestions.
These utterances generally, said the bank
er. are mere theories. which could not be
applied practically He regarded Mr..
Bryan's plan in this category. The bank
or said IL would be a fine thing for the
government 10 become the trustee of the
peoples money. but when it did he asked
how il was 10 be done without centraliz-
ing the banking OF the country in such
manner as practically 10 eliminate the
national bank, or make il mere ap-
pendage Of the United States Treasury.
or big central bank Of issue. He thought
the plan was wholly impracticable
Objects to Tax Feature.
banks talked about the plan at some
length He opposed it on principle. say
ing the weakness of the proposition lay
in the tax TO be assessed upon the banks
20 cerate the guarantee fund.
Why" said he. should the strong
bank, with its millions Of dollars in re-
sources. capital and deposits. be taxed
upon this volume Of business to sustain
the weak bank or the one that was badly
managed? 1 believe this plan would work
out TO the general harm Of the banks
Of the country. II would put a premium
upon improper methods Of making loans.
and the government would find it a very
expensive experiment. in my opinion"
Another banker said Mr. Bryan's propo-
sition is an excellent one. I do not
think il is quite original with him. At
all events, we have discussed a similar
proposition in meetings of bankers. and
I have been advocating it for years I
really believe that If il had been carried
out years ago the finances of the country
would be in a much more stable condition
than they are now. We have seen the
Treasury coming again and again TO the
aid of the banks In one way and another.
sometimes even going 10 the extent OF
treading on very thin ice. so far as legal
authority was concerned. Why should
not Uncle Sam go still further and as
sumo such supervision of the banks as
10 guarantee the deposits and prescribe
in general terms how they shall be used?''
One Correspondents View.
Correspondent Steady. Of the Louisville
COurier-Journal, sent the following to his
paper last night:
Among the callers at the Courier-Jour-
nal bureau to-day was Mr.. W. ]. BRYAN.
He talked mostly Of his statement of YES
terday. in which the plan was suggested
that the government should guarantee
national bank deposits in national banks.
A number Of our bankers here. including
Mr.. c. c. Glover, president Of the famous
Riggs National Bank, and Mr.. w. r.
Hibbs agreed in the main with the sug-
gestion Of Mr.. Bryan.
Do you not think said Mr.. Bryan to
your correspondent. that Congress might
adopt my plan, for you know that an
emergency exists. and in my judgment il
is the best and quickest way out Of the
trOuhle?'
Certainly not; do you think that these
Republicans on the eve OF a Presidential
campaign are going 10 give the leader of
the Democratic party the credit and pres
tige Of solving the present uncertain !
financial conditions? Not on your life
was the answer.
Mr. Bryan looked little dashed. and
said:
Then you think they hold party above |
patriotism.
Sure was the reply.
In your Judgment then. if had taken
my views 10 a prominent Republican and
let him fathered them. they NAV have
been adopted
That's just about II. and If YOU think |
that these Republicans are going 10 allow
w. J. Bryan TO extricate the country out
Of its present financial distress. YOU are
the most mistaken man in your life"
Old Guard Gives Ball.
A ball was given by the Old Guard of