Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1908-08-01


feet safety for deposits, with interest
return. The bill now pending in Con-
gress, which OF course the Republican
Convention had in mind, provides for
the Investment of the money deposited
in National banks in the very places in
which it is gathered, or as near thereto
as NAV be practicable. This is an an
swer to the criticism contained in the
Democratic platform that under the
system the money gathered in the
country will be deposited in Wall
Street banks. The system of postal
savings banks has been tried in so
many countries successfully that it
cannot be regarded longer as a new
and untried experiment.
Objections to Democratic Proposal to
Enforce Insurance of Bank Deposits.
The Democratic platform recommends
a tax upon National banks and upon
such State banks as may come IN, IN
the nature of enforced insurance to
raise a guaranty fund to pay the de-
positors of any bank which fails. How
State banks can be included 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 prom
ises of the platform. If they come in
under such a system, they must neceS-
sarily be brought within the closest
National control, and so they must
really cease to be State banks and be-
come 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 burden which
under this system would be imposed
upon the sound and conservative bank
ers of the country by this obligation to
make good the losses caused by the
reckless, speculative and dishonest men
who would be enabled to secure de-
posits under such a system on the faith
of the proposed insurance.; as in it's
present shape the proposal would re-
move all safeguards against reckless
ness in banking, and the chief, and in
the end probably the only benefit would
be delighted to enter the banking bust
ness when it was certain that he could
enjoy any profit that would accrue,
while the risk would have to be as
sumed by his honest and Woodworking
fellow In short, the proposal is who'll
IL impracticable unless it is to be ac-
companied by a complete revolution in
so close as practically to create gov
eminent bank. If the proposal were
adopted exactly as the Democratic plat
form suggests, it would bring the whole
banking system of the country down in
ruin, and this proposal is itself an ex-
cellent illustration of the fitness for
national control of a party which will
commit Itself to scheme Of this ma
ture without the slightest sense of re-
sponsibility for the practical operation
of the law proposed.
Postal Savings Banks Much to BE Pre-
ferred.
The Democratic party announces its
adhesion to this plan, and only recon-
mends the tried system Of postal saw
| ings banks as an alternative if the new
experimental panacea is not available.
The Republican party prefers the post
al savings bank as one tried, safe. and
known to be effective, and as reaching
many more people now without bank
ing facilities than the new system pro
posed.
Voluntary Plan For Guaranty.
A plan for a guaranty of deposits by
the voluntary act of the banks in
volved has been favorably reported to
the House of Representatives This
is of course entirely different from the
scheme in the Democratic platform,
emitting, as it does, the features OF
compulsory participation and govern
mental guaranty. This proposition will
unquestionably receive the thoughtful
consideration of the National None
tary Commission.
Republican Policies as 50 Dependencies
The Republican party has pursued
consistently the policy originally adopt
ed with respect to the dependencies
which came to us as the result of the
4 Spanish war.
| Porto Rico.
The material prosperity Of Porto
Rico and the progress of its inhabit.
ants toward better conditions in re-
spect to comfort of living and educa.
ton, should make every American
proud that this nation has been an eff.
ficient instrument in bringing happi.
ness to a million people.
Cuba.
In Cuba, the provisional government
esta blished in order to prevent a bloody
revolution has so administered affairs
and initiated the necessary laws as to
make it possible to turn back the is
land to the lawfully elected officers of
the Republic in February next.
Philippines.
In the Philippines the experiment OF
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