, 1907-11-29
WYOMING BANK PRESIDENTS "A
FOR GOVERNMENT GuARAN-
TEE OF DEPOSITS IN
NATIONAL BANKS.
President Ivinson Of First National
Bank Says interest Rates Would
Be Reduced and Deposits Would
Double and Treble - President
N. r. Collins Of Douglas National
Bank Makes Strong Argument.

0Oo9tV &bo ItSp'S
N. r. Collins of Douglas National
Bank Makes Strong Argument.
In response to a request from the
editor of The Republican for an ex-
preston of his opinion upon banking
questions now uppesmost in the minds
of the bankers of America, President
Edward Ivinson of the First National
bank, this city, presents many cogent,
logical reasons why the government
should stand behind the depositor and
why the banks should be willing to pay
the small tax required. His letter
follows:
Mr.. lvinson's Letter.
Laramie, Wyo., Nov. rs, 1907.
Mr.. W. E. Chaplin, Editor of Laramie
Republican, Laramie. Wyo.
Dear Sir:-in reply to your request
of the 22d inst: During my forty years
experience in the banking business,
h0 6OhC tukou6A AOdi PdhiSo, !
have thought a great deal over the
matter of good banking. l have ex-
amined into and read many books
and pamphlets bearing on the subject,
advocating different theories, viz:
that the general government should
have an exclusive bank, to be known
as the American bank, empowered
with the special privilege to issue cur
rency and notes to national banks, in
case of q s%tringency; a United States
national bank, managed by stockhold-
ers and directors, with a capitalization
of many millions and to be legally a u
thorized to issue currency to national
banks In case Of panics, etc. There
have been a great. many other ideas
advanced. which would lot be worthy
OF mention at this time, as none Of
them touch the matter of securing de-
positors. So, in my limited capacity. 1
will endeavor to give you a brief out
line Of my own ideas:
Security Should Be Paramount.
In looking at this very important
subject from many sides, my conclu-
sions have always been that the se-
curity Of depositors should be para
mount. l believe that congress should
pass a law compelling national banks
to pay into the United States treasury
a quarterly tax Of, say. o~ne-twentieth
of one per cent on their capital, for
the purpose Of securing depositors, and
the government to have the right when
a bank fails or when the examiner is
fully satisfied that a bank Is ~insolvent,
to take possession at nee in the lame
Of the government, and pay all depos-
itors and other legitimate claims
against the bank ION demand" just
the same as If the bank had not failed,
the government to settle up the af-
fairs and place the amount received to
the credit of the fund SO designated.
The government would be perfectly
secured. II depositors were secured
in this way, a change for the better
would soon be noticed.
As Safe a. Bank Notes.
The confidence of the people would
be secured and they would be eager
to deposit their spare funds, whether
large or small, and open accounts,
when they fully realized that their
savings were just as safe as the bank
note. The depositor desires absolute
security, and IL he has assurance that
his deposit is guaranteed by the gov
eminent. and perfectly secure, why
should he want to draw it out, even
in times of a stringency or panic? On
the contrary, he would continue to de-
post, and a run on a bank would be
impossible. Having no fear, there
would be no necessity to draw the de-
post. He would realize that his saw
.ings in the bank were much safer than
IL they were in his own house. Can
you get a dollar from the government
without giving security? Then why
should a depositor who places his
money in a bank not be secured also?
Cutting Down the Interest.
II this system were adopted, the
banks would be well paid for the small
tax imposed, as their deposits would
soon double, and then treble. Their
loans would increase largely and they
could loan for a much lower rate OF
interest. There is supposed to be one
thousand millions OF funds kept out OF
circulation, which would Immediately
be brought out and deposited In banks
IL the depositors realized that Their
funds we're absolutely safe, and In
short time the vaults Of the banks
would be o%verflowing with currency.
Would stop Burglars Trade.
There may be objections to this
simple way Of carrying on a banking
business, but l have never been ablt
to comprehend how IN objection coult
be in~telligently presented. The day o
the murderous burglar would be gone
II such a system should be adopted
rs he is generally after the cast
Thousands Of lives would be save
from his deadly attacks, and the de
positor would feel perfectly at ease
30 far as his deposits are concerned
knowing that they were safe In tn
bank, and he would realize that h