The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1908-08-28
BRYAN UNFOLDING
DEPOSIT GUARANTY
CR|T|C|SES TAFT
Says Country Needs His Plan
and Raps Opponent on Score
of AIdrich- Vreeland Law.
BANKS CUSTOMERS
SHOULD BE SECURED
Statutes Should Make Excessive
Loans Criminal Offense-Says
Other Side Bows to Wall St.

TOPEKA, Kan, Aug. 2S.--William
j. Bryan, before 5000 cheering admirers
in this city's Auditorium last night, de-
Tended his plan TO guaranty bank de-
posits. and declared that the law should
make the loaning of more than the
prescribed amount to one person a
criminal offense,
Asserting that the chief cause OF
bank failures is the making of excess
i've loans to directors or officials OF the
bank, MIR. Bryan said that were all
banks made liable for the deposits OF
each, the. stockholders would insist
upon the enactment of the law.
Mr.. Bryan said in part:
Why not make The depositor secure?
The United States government re-
quires the deposit of specific security
when 1t entrusts money to a national
bank, although it can examine the bank
at any time; the State requires securf
ity when it deposits money In a
bank; the county requires security and
the city requires security; even the
banks require security from the Off
cials who handle money. Why should
the depositor be left to take his
chances?
Not only is the depositor without pro-
lection, but the security given to ma
ton. state, county and city lessons his
security. They are preferred creditors;
they have a mortgage OF the gilt
edged assets and the dep ,sitor must
get along as best he can with what
remains. Why are the interests or
depositors thus neglected?
A bank asks deposits on the theory
that the depositor is sure of the return
of his money, and the laws ought to
make the facts conform to the theory.
For many years efforts have been
made in Congress and in the various
States TO secure a law guaranteeing
deposits. but the influence of the great
banking institutions has been sufficient
to prevent action. Last fall, however,
when the banks by a concerted action
suspended payment on checks, the de-
positors were everywhere brought to a
realization of the fact that their de-
posits are in fact loans, payable on de-
mand under ordinary circumstances,
but payable at the will of the bank in
emergencies. The depositors suffered
q considerable loss during the suspen-
sion of payments. and they have not
forgotten the lesson which they then
learned. The Democratic party. being
more free thar the Republican party
to respond to the needs of the masses
of the people, inserted the following
plank in it's national platform:
Says Test Proved BENEFIT.
1--WE pledge ourselves to legislation
by which the national n shall be
required to establish a guaranty fund
for the prompt payment of the de-
positors of any insolvent national bank.
under an equitable system which shall
be available to all State banking insti-
tutions wishing to use it,"
This principle has been applied in
Oklahoma and the results have been
very satisfactory. The average annual
loss to depositors in national banks
during the last forty years has been
less than one-tenth of one per cent. of
the deposits. and the loss to the fund
in Oklahoma under better regulations
and restrictions has been absolutely
nothing during the six months in which
the law has been in operation. The
Republican platform is silent on the
subject, and the Republican candidate
not only does not advocate a compul-
sorry system, but specifically and en-
phatically opposes it.
What has Mr.. a done to protect
depositors from recklessness and specu-
lation? While he refuses to protect de-
positors, he praises the Aldrich-Vree-
land law, which invites speculation
and stock jobbing. In declaring that
the system proposed by the Democrats
would remove all safeguards against
recklessness in banking Mr.. Taft be-
trays an ignorance of the subject. for
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