The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-11-28
BRYAN SUGGESTS RfMFDY !

Rryan arrived here today and at
tended the wedding OF the daughter |
OF friend, Cutter +. Bride. He |
held conference With several other |
| friends.
To reporters Mr., Bryan said:
The administration Is prepared, 80
We are informed, to recommend q
postal SAVINGS bank. While this
would doubtless encourage deposits
aud while these deposits could In
turn be handed over TO the banks, II
does not furnish complete relief, be-
cause the plan as presented limits de-
pusits and does not contemplate the
opening OF circulating accounts.
The business community, therefore,
cannot use the postal savings banks
TO any great extent and besides II
would take some time 10 lnaugurate
postal saTings system and secure
the necessary number Of employees 10
make the plan effective tbrongho
the country. | believe IL Ii possible
for the government TO give fmmedi-
ate relief by nh act OF congress pro-
sidina for the guarantee by the gov.
ernment OF all deposits Ia all nation
al banks, the hanks thus guaranteed
10 agree To reimburse the government
fof any losses incurred and TO make
this reimbursement In proportion to
their deposits. The advantage OF
this plan il:
first-That every depositor In such
guaranteed bank will feel secure.
Second The expense OF II will be
paid by the banks which get the
benefit Of IL. and this expense will be
small compared With the benefit
gained
Third--It can he put into eifec,
Immediately, thus restoring cont,
deuce ard enabling business to he re,
sumed.
II Is possible that all the nationa
hanks would hc willing 10 take ad
vantage OF this guarantee becans,
g the additional security given 3,
! their depositors would be OF grea
/. advantage 10 the banks. Dnriug
: forty years the average annual los
to deposltors has t.een small. les
than one-tenth OF | per cent, "
small that IL would be an insignlH
l cant tax upon the four or Eve billion
: u dollars OF deposits. The govern
ment would have ample security II
s the capital surplus for the bank
. which would Voluntarily Join In tb
a plan. As each bank will become Ii
Is terested In the proper management
h Of every other guaranteed bank,
4 would he easier 10 secure the legisia
., tion necessary for the correction 1
such abuses as exist and for III
/, better management OF the banks II
N instance. legislation preventing owe
In borrowing by directors and oficia
N Of the bank. and legislation proven
h. Ing speculation by officials.
Al II seems 10 me that the plan SUI
e. gested ought 10 be acceptable TO II
ct Idepositofs, ali OF whom desire sceu
en- lty, ana 1t ought to be acceptable
va the baakers, who will he well paid
ne the Increased deposits for any "a
that may be collected from them
Bd reimburse for the expense; and
IN don't see where any objections CT
n. be made 10 the use OF the goveFnmeT
nv as Il guarautor when IL Is amply pr
n. tected from loss. The oniy obIectio
er that occurs to me Is that state bans
as might he less attractive 10 the d.
ed posltors II national baaks are guaFsi
nv teed. But there are tso answers
an this objection. In the hFst plae'
M state banks are likely 10 suffer II th
at financial striugency continues, al
Il. they are therefore interested In q
u. storing confidence; tn the secou
10 place, there Is no reason why stat
nd hanks should not be protected BY
py similar system under sbich the stat
he would guarantee depositors in stat
tanks and collect the expenses froi
state hanks guaranteed.
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