The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-28

and interest. It lis thought that the
government guaranty will bring out
of boarding places much money which
may be turned into wealth producing,
capital, and that 1t will be great In
centive for thrift in the many small
places in the country having now no
savings bank facilities which are
reached by the postoffico department.
1t will bring to every one, however re-
| mote from financial centers. place or
perfect safety for deposits. with inter-
est return. The bill now pending In :
congress. which of course the Repub-
lican convention had in mind. pro-
vides for the investment of the money
deposited In national banks In the
very places in which 1t is gathered, or
as near thereto as may be practicable.
This is an answer to the criticism con-.
tanned In the Democratic platform
that as under the he system the the, m money ds
posted in Wall street BANKS. The
system of postal savings banks has.
| been tried In SO many countries sue
cessfully that it cannot be regarded.
| longer as new and untried expert
ment.
Objection to Insurance of Bank
Deposits.
The Democratic platform recom-'
mends tax upon national banks and
upon such state banks as may come
| in, in the nature of enforced insur-
the depositors of any bank which
| fails. How state banks can be in
| cluded In such scheme under the
| constitution is left in the twilight
| zone of states rights and federalism so
| frequently dimming the meaning and
purpose of the promises of the plat
| form. If they come in under such a
system. they must necessarily be
control. and so they must really cease
| to be state banks and become national
| banks.
| The proposition is to tax the honest
and prudent banker to make UP for
the dishonesty and imprudence of
| others. No one can foresee the bur-
den which under this system would be
imposed upon the sound and conserv-N
| alive bankers of the country by this
| obligation to make good the losses
| caused by the reckless. speculative
| and dishonest men who would be en-
abled to secure deposits under such a
system on the faith of the proposed
| insurance; as in its present shape the
proposal would remove all safeguards
against recklessness in banking. and
| the chief, and in the end probably the
only benefit would accrue to the spec
ulator, who would be delighted to en-
ter the banking business when it was
certain that he could enjoy any profit
| that would accrue. while the risk
would have to be assumed by his hon
est and hardworking fellow. In short.
| the proposal is wholly impracticable
unless 1t is to be accompanied by
complete revolution in our banking
system, with a supervision so close as
practically to create a government
| bank. If the proposal were adopted
exactly as the Democratic platform
suggests, it would bring the whole
banking system of the country down
| in ruin. and this proposal is itself an
| excellent illustration of the fitness for
| national control of party which will
commit itself to scheme of this ma
| ture without the slightest sense of re-
| sponsibility for the practical opera
| ton of the law proposed.
| Postal Savings Banks Much Better.
| The Democratic party announces
its adhesion to this plan, and only
| recommends the tried system of
postal savings banks as an alternative
! if the new experimental panacea Is not
| available. The Republican party pre-
| fers the postal savings bank as one
| tried, safe, and known to be effective, >
| and as reaching many more people
now without banking facilities than
| the new system proposed. es
Voluntary Plan for Guaranty.
A plan for a guaranty of deposits
| by the voluntary act of banks in
volved, has been favorably reported
to the house of representatives. This
1
the scheme in the Democratic plat
form, emitting as it does. the features
| of compulsory participation and gov
| eminent guaranty. This proposition
| will unquestionably receive the
( thoughtful consideration of the ma
| tional monetary commission.
Policies as to Dependencies.
| The Republican party has pursued
| consistently the policy originally
| adopted with respect to the depend
encies which came to us as the result
| of the Spanish war.
Porto Rico.
The material prosperity of Porto
tants toward better conditions in re-
spect to comfort of living and educa-
ton, should make every American
proud that this nation has been an
efficient instrument in bringing happi-
ness to million people.
Cuba.
In Cuba, the provisional govern
ment established in order to prevent a
bloody revolution has so administered
affairs and initiated the necessary
back the island to the lawfully elect
ed officers of the republic in February
next.
Philippines.
In the Philippines the experiment
of a national assembly has justified
itself, both as an assistance in the
government of the islands and as an
education in the practice of self-gov-
eminent to the people of the islands.
We have established government
with effective and honest executive
departments. and a clean and fearless
admin istration Of Justice; we have
created and are maintaining a COM
prehensive school system which is
educating the youth of the islands in
English and in Industrial branches;
we have constructed great govern-
mental public works, roads and har-
bors; we have induced the private
construction OF eight hundred miles of
railroad; we have policed the islands