New-York tribune., 1907-11-22
BRYAN'S RELIEF PLAN
SUGGESTS MONEY CURE.
You'd Haze Government Guarantee
National Bank Deposits.

Washington. Nov. 21.-Wiliam Jennings
Bryan has had busy day in Washington. He
arrived here at o'clock this morning and went
at once to the residence Of Cotter T. Bride.
Capitol Hill. He was a guest this afternoon at
the wedding of Mr.. Brides daughter. his at
tendance at the ceremony being one of the OBJ
jects of his visit to Washington Mr.. Bryan
received many callers at the house At noon he
boarded downtown to keep an engagement
for conference with several friends
Mr.. Bryan was asked what he regarded
the essential difference between his policies and
those of President Roosevelt
There is a difference between President
Roosevelts position and the Democratic paTty's
position upon the trusts. and their regulation
and prosecution. and upon railway rate regula-
tton, he replied Il will try TO make that diff
ference plain in my address next Tuesday night
Later Mr.. Bryan gave out the following state
ment in regard to the financial situation:
do not know what the effect of the new bond
Issue will be- but IL seems to me that the relief
ought to come from the other direction. Plans
so far have been intended TO furnish government
money to the banks whereas the most impor-
tant thing now is to restore confidence in bank
depositors, and thus not only prevent with
drawals, but secure deposits.
While the banks are good, and while the de-
posltors are not justified in being frightened.
some depoS1tors are unreasonable and their tim
1dity may embarrass the banks. If the money
tlieI IL OelilS HlOuen ana nOdrdeO can be brought
pack into circulation the present stringency will
disappear at once. 1t does no good to supply
money from the Treasury if equal a
greater amount is drawn out by depostors.
The administration is prepared so we are in
formed to recommend postal savings bank.
While this would doubtless encourage deposits
and while these deposits could in turn be
handed over to the banks il does not furnish
complete relief because the plan presented
limits deposits and does not contemplate the
opening of circulating accounts The business
community. therefore. cannot use the postal
savings bank TO any great extent. and besides
1t would take some time to inaugurate postal
savings system and secure the necessary num-
Der OF employees to make ther plan effective
1 believe it is possible for the government to
give immediate relief by act of Congress
providing for the guarantee by the government
of all deposits in all national banks the banks
thus guaranteed to agree to reimburse the gov
ernment for any losses incurred and TO make
this reimbursement in proportion to their de-
posits. The advantage of this plan is:
First-That every depositor in such guaran-
teed bank will feel secure
Second7The expense Of it will be paid by the
banks, Which get the benefit of it, and this ex-
pense will be small compared with the benefit
Third-It can be put into effect Immediately.
and thus restore confidence and enable business
to be resumed.
1t 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
10 the banks During forty years the average
annual loss to depositors has been smal-Iess
JtldH oHe-JeuIn OF L per CenC-SO small that il
would be an 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 voluntarily
| join in the plan.
/ As each bank will become interested in the
proper management of every other guaranteed
bank, IL would be easier to secure the legislation
necessary for the correction of such abuses az
| may exist and for the better management of the
banks-tor instance. legislation preventing over
borrowing by directors and officials of the bank
| and legislation preventing speculation by off,
| Cials
1t seems to me that the plan suggested ought
/ to be acceptable to the depositors all Of whom
desire security, and il ought TO be acceptable
to the bankers. who will be we'll paid by the in
creased deposits for any tax that may be col
lected from them to reimburse the government.
and 90 not see that any objection can he made
| 10 the use of the government as a guarantor
when it Is amply protected from loss.
Inc only objection that occurs TO me is that
STATE banks might be less attractive TO depos-
itors II national banks guaranteed: but there
are TWO answers to this objection In the first
place. state banks are likely TO suffer If this
Hnahcial Strlngency continues and they are
| therefore interested in restoring confidence In
the second place. there is reason why state
banks should not be protected by a similar sys-
tenn. under which the state would guarantee
depositors in state banks and collect the ex-
pense from the state banks guaranteed.
I proposed when in Congress the raising Of a
guarantee fund for the protection of depositors
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 de-
positors were secured; but that the big
banks are Sufrerlng much the little ones
the objection will hardly be made
The plan which then proposed would furnish
protection as far as the fund would furnish it.
but IL would take time 10 raise such fund. and
believe II is better for the government TO make
the security absolute by becoming guarantor
for this system can be put into operation at
once, and that. too. without expense TO the gov
ernment, inasmuch the banks would reim-
burse the government from time to time in case
the government called upon to pay the de-
posits of any failed bank.
Mr. Bryan will deliver an address at Alexan-
dria Va. tomorrow night on the subject The
Old World and It's Way" On Saturday after
noon he will speak briefly from the steps OF the
Treasury Building under the auspices of the
Young Mems Christian Association. On Satur-
day night he will deliver an address at George
Washington University on Good Citizenship"
Sunday afternoon he will speak In Baltimore
and on Sunday night at Wilmington. Del On
Monday night he will address the Young Mems
Christian Association. of this city. On Tues
day night he will deliver an address at din
ner in this city. at which he will be the guest
of honor.