The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-08-28
Friday, August 2s, zoos.
GUARANTEED BANK DEPOSITS.

Mr.. Bryan threw himself into the |
the consideration Of the proposal to
have the government guarantee bank
deposits with something Of his old |
time swing. His intention Is In few
words. that the people who deposit /
their earnings in the banks do so at
an excessive risk; that since the banks |
have the use OF their money and !
use 1t to make money for their
owners, 1t is right that steps should
be taken to guarantee the deposltors
against possible dishonesty or bad
banking judgment.
As a moral proposition, and II is as
a moralist that Mr.. Bryan makes his
best impression the assumption on
the part of government Of share
Of the responsibility which attaches
to bank administration has an attrac-
ton for many people, but II yields
badly to practical investigation. AS
moral proposition It is attractive.
lust as II Is attractive to have all OF
the obligations of life observed. If
that could be secured by the cooper
ating action of government II would
have been resorted to years ago. To
preach the cooperating interference
OF government to cure all or any
Of the particular ills to which society
is heir Is to weaken human nature
where human nature most needs re-
enforcement. In other words It is a
species of molly-coddling, against
which we have been warned by no
lesser an authority upon the useful
ness of the strenuous life than Theo-
dore Roosevelt.
We suspect that Mr.. Bryan attaches
In his own mind to banking the sort
Of sacred relationship which has
grown up in the popular conception
OF that business, and instead of rec
ognizing 1t as q business undertaking,
pure and simple, has convinced him
self that 1t calls for other traits of
character than those fed on solid
commercial food There are many
bankers who themselves have been
taught, or have taught themselves
that their business Is an enterprise
apart by itself from other business en-
terprises, and that bankers as men are
In another business and social scale.
Upon no other theory can one salts
factorily explain the proposal to so
hitch up the science of government
with the banks as to shift the most
important phase of bank responsible
ity. The more practical and less SEN
tlmental view Is that taken by Mr..
Taft who gives 1t as his Judgment that
the guaranteeing Of bank deposits
would put premium on reckless
banking" and offer an Involvement" to
reckless banking.
Under the present by no means
highly scientific banking system, a
large part of the responsibility so far
as bank management Is concerned
consists In carefully protecting the
money of the depositors against wild
speculation, careless loans and reck-
less investment. Not all banks live UP
TO the theoretical conception Of their
responsibility, but the great majority
Of them do. There is no evidence to
show that the banking business on
that account demands extraordinary
oversight on the part Of the govern
ment to the extent that It shall un.
dertake by form Of bank taxation tc
add its organized power to the intcGri.
ty of the banks In order to guarantee
the depositor. To-day the average
bank is automatically restrained from
conduct which threatens the solvenc,
Of the institution by the realization
that the protection of the depositor Il
It's first obligation; that failure tc
realize 1t means disaster, and disaster
means retirement from the business
Destroy that powerful restraint ID,
hitching up the government with tn,
banks and the very best possible slim
uant to reckless speculation. careless
loans and wild investments have beer
provided,
1t is not enough, in other words t,
undertake to protect the depositor b.
governmental interference, Of equa
Importance is the protection of thu
banks, as needed institutions, agains
the excessive freedom of the men Il
charge of them To do thorough,
what MIR. Bryan has in mind, and t.