The news-democrat. (Providence, R.I.) 1906-1909, 1907-11-22


Sunday afternoon, and In Wilmington
Sunday night A big dinner I'm his honor
will be given In Washington next Tuesday
Mr. Bryan said that he would make a
speech at the dinner explaining the differ
ence between President Rooosevet's poll
cies and those of the Democratic party.
Mr.. Bryan gave out a statement on the
financial situation, In which he pro-
posed legislation for the guarantee by
the government of all deposits In national
banks This. he declared. would give Inn
mediate relief. Mr.. Bryan's statement
follows:
II do not know what the effect OF the
new bond issue will be. but II seems to me
that the relief ought to come from the
other direction. The plans so far have
been intended TO furnish government
money to the banks, whereas the most
important thing now is To restore con-
fldonce in bank depositors and thus not
only prevent Withdrawals. but secure de-
posits. While the banks are good and
while the depositors are not justified in
being frightened, some depositors are un-
reasonable and their excessive timidity
may embarrass the banks. III the money,
that is being hidden and boarded can be
brought back into circulation the pres
ent stringency will disappear at once. 1t
does no good 10 supply money from the
treasury IL an equal or a greater amount
is drawn out by depostors.
NO POSTAL BANKS.
The administration is prepared. so we
arc informed. 10 recommend postal saw
ings bank. While this would doubtless
encourage deposits and while these de-
posts could In turn be handed over to
the banks. IL does not furnish complete
relief. because the plan as presented
limits deposits to $3.50 for one person for
one year and does not contemplate the
opening of circulating accounts. The
the postal savings banks TO any great
extent. and besides II would take some
time to inaugurate postal savings sys-
tenn and secure tho necessary number o<
employees to make the plan effective
throughout the country. i believe II In
possible for the government TO give i'm
mediate relief by an act of congress
providing for the guarantee by the gov
ernment of all deposits In national banks.
the banks thus guarapteed TO agree to
reimburse the government for any losses
incurred and to make this reimbursement
In proportion to their deposits. Tho ad-
vantage of this plan is:
"First-That every deposltor In such
guaranteed banks will feel secure.
"Secondly--The expense of II will be
paid by the banks which get the benefit
OF II. and this expense will he small COM
pared with the benefit gained.
"Thfrdly-It can be put into effect Inn
enable business to be resumed.
OF ADVANTAGE
"rt Is probable that all of the national
banks would be willing 10 take advantage
OF this guarantee. because the additional
security given TO their depositors would
be of great advantage 10 the banks. Dur
ing 40 years the average annual loss to
1opostors has been small less than one
tenth OF l per cent on the deposits. so
small that it would be an insignificant
IN hn Fat, G.,a l.oIl
of deposits. The government would have
ample security In the capital and surplus
OF the banks, which would voluntarily
join I'm the. plan. AS each bank would
become interested I'm the proper manage
ment of every other guaranteed bank II
would be easier TO secure the legislation
necessary for the correction OF such
abuses as may exist and for the better
management of the banks for instance,
legislation preventing overborrowing by |
directors and officials OF the bank and
legislation preventing speculation by Of |
fcials.
1T seems to me that the plan suggest.
ed ought To be acceptable to the deposit.
ors, all OF whom desire security, ant
ought to be acceptable to the bankeYss
who will be well paid by the Increased |
deposits for any tax that may be coll |
lccted from them to reimburse the gov
ernment; and do not see that any objec- |
ton can be made to the use OF the gov |
eminent as guarantor when IL Is amply |
protected from loss. The only objection |
that occurs to me is that state banks |
might be less attractive to depositors IL |
national banks are guaranteed. But there |
are two answers to this objection. In the |
first place state banks are likely to suf- |
Ter II this financial stringency continues |
and they are therefore interested in re- |
storing confidence; i'm the second place, |
there Is no reason why state banks should /
not be protected by "a similar system up- |
der which the state would guarantee de- |
positors In state banks and collect the |
expense from the state banks guaranteed. |
Il proposed when in congress the rails |
Ing of guarantee fund for the protec- |
ton OF depositors. but tho bill was de- |
feated by the larger banks on the ground |
that the big banks would have no advan- |
tage over the little ones IL all depositor. |
were secured. but now that the big banks !
are suffering as much as the little ones |
the objection will hardly be made The |
plan which / then proposed would fur
nish protection as far as the fund would !
furnish it. but it would take time TO raise |
such fund. and believe II is better for
the government to make the security abb |
solute by becoming guarantor for this |
system can be put into operation at once |
and that, too. without expense 10 the |
government. inasmuch al the banks would |
reimburse the government from time TO |
time In case the government was called |
upon TO pay the deposits of any failed |
banks"
Mr.. Bryan smiled today when he was
asked to explain the difference between
his own and the Roosevelt policies
MY policies?" he said. 81 have no poll |
cies OF my own. III you refer to the diff |
ference between the policies of the Demo- |
cratic party and President Roosevelts |
policies-well. | expect to take occasion |
In the speech to be delivered here next |
week TO call attention To the difference |
And there Is a marked difference for |
while President Roosevelt has Endorsed |
some Democratic views he has not i'm |
dorsed them fully and he has taken some |
positions that are un-Democratic
CRITfCISES REPUBLICANS
81 may add that the Republican leaders, |
while seemingly willing TO indorse every |
thing he says which is undemocratic. are |
not willing to help him when he adopts |