The Washington times., 1907-11-24
PRESIDENT AND BRYAN
AGREE ABOUT CURRENCY
REFORMS FOR NATION
lContInued from b. Page0

From the tax IN these issues there
would be derived a revenue 10 the Gov
eminent. which. IT is understood. would
/ be, under this plan, set aside, at least
so far as needed, fer a guarantee fund
| TO assure against losses on the circula-
ton of failed banks. The Government
would be the general IuarantOr. inter
posing It's own unimpeachable credit for
the purpose of absolutely establishing
confidence, hut taxing the issuing banks
enough to assure that It should not lose
by the guarantee.
Details OF the plan. of course. remain
to be worked out by Congress, and as TO
these there is no intention on the part
of the Administration 10 dictate
Mr.. Bryan talked 10 the President
about the financial plan which the Ne
6raskan had presented In his statement
4 issued OH Thursday evening This IS
simple and TO the point. Mr.. Bryan pro
poses an act Of Congress 10 gyuarant e
all deposits In national banks, with the
idea OF taxing the banks enough TO as
sure the Government against loss. He
urges that this would instantly relieve
the money situation, because II would
restore complete confidence ia the
banks, would draw foTth money which
has gone into hiding. and would make
everybody willing TO trust the lnsti;u-
tons with their deposits.
Bryan's Plan PIeases President.
Even on this proposal Mr.. Bryan did
not find the President unwilling 10 give
serious consideration. Rather, # de
velcPed. the President had been inter
ested in the idea. and inclined TO the
opinion that II was practicable and use
ful. He IS understood 10 prefer the idea
OF Government guarantee to the plan
OF raising a guarantee fund, feeling that
guarantee would he just as effective,
would not withdraw money from gen
eraI circulation. and would not involve
the Government IT, any loss because the
banks guaranteed could be assessed to
meet losses sustained in case Of failures
1t is not inferred that this plan Of
guaranteeing deposits IS included In the
plan which the President viii lay be
fore Congress. but there is strong rea-
son for the belief that the President be
lives there Is merit In Ihe plan, and
would raise no objection 10 1t.
n here has heen objection 20 this
plan" said Mr.. Bryan. ''OE the ground
that il would work serious injury to
State banks These would Of course
not have the benefit Of the absOIute
guarantee OF their deposits. and State
bankers fear that they would see their
customers taking money away in order
to deposit It ir national banzs, whore
1t would be absolutely secure.
States Also GuarantoTs.
My answer 10 this Is that the States
should follow the lead OF the Federal
Government by passing laws guarantee
ing, IN lilIs fashion. the deposits in thyir
State and savings institutions. Il DOES
not seem to me to BE- different in pria-
Ciple from the national guarantee Of
national bank deposits, and would nave
the same effect Then we should see 4
prJInpt ard permanent restoration OF
confidence ia banks and tie immediate
restoration Of normal business condi-
lions"
The President. Mr.. Bryan, and Mr..
Morgan ali agreed, IL IS SAID, in taking
an optimistic view OF the present fnan-.
cial ana business outlook Tho Presi-
dents visitors were confident that the
worst Of the financial scare IS past, that
normal conditions are fast returning.
and that the public mind Is becoming
settled in the conviction that there viii
be no lOug-conunued depression.
J. Pierp0nt Morgan and George r.
Baker returned 10 New York at . O'Clock
yesterday afternoon