Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1908-08-28

would amount to more than the tax.
The examination Of the banks would
continue to be made at the expense
OF the banks, even II 1t were certain
that the examination was Of no pc;
cuniary advantage to the banks. The
law would continue to require a GER
tain amount Of reserve to be kept on
nand, even II 1t were certain that
such law brought no pecuniary gain
to the bank; and so the banks ought
to be compelled to insure their de-
positors against loss, even II II could
not be shown that usch Insurance.
would bring a compensating advan-
tage to the bank. The bank charter
has a value; II 1t were not valuabls
the bank would not be organized.
The bank charter is a gift from the
people through the law, and the pso-'
pie who authorize the establishment.
Of bank have a right to demand.
In return, that the bank shan keep
the pledge which 1t gives when It in
vites deposits. and make good its
promises Of security to those who
deal with it. - .
But as a matter Of fact, the banks
Will, as a rule, gain more from the
law than they will lose by the tax i'm.
posed by the law. The experience Of
the Oklahoma banks shows this. The
interest collected upon the increased
deposits will far more than pay the
losses occasioned by insolvency. But
two banks have failed and the assets
have In both cases been sufficient
to reimburse the fund.
Then, too. the banks must remem
Der that the question Is not merely
whether depositors shall be made Sc.
cure, but whether the security shalt
be given by the banks themselves or
by the government through q. post
al savings bank.
The refusal Of the banks to permit
the passage Of law granting secur,
| ity to deposilors is responsible for
the growth of the sentiment in fav.
or Of the government savings bank
and the sentiment will continue to
grow unless something is done TO
satisfy the demands Of the people
upon this subject.
The republican party proposes the
establishment of a postal savings
bank system; the democratic party
prefers the guaranteed bank because
1t is better for the deposition and bet
ter for the banker-it gives the de-
positor the security which he needs
and yet leaves the banking business
In the hands of the banks. But the
democratic platform declares for "a
postal savings bank II the guaranteed
bank cannot be secured" and in No
vember more than ninety per cent OF
the voters will by their ballots de
mand either the guaranteed bank or
the postal savings bank. Can the u
nanciers prevent the carrying out Oh
this demand? e.
The republican platform does not
go into detail, but 1t is fair to as
sumo that the postal savings bank
plank is intended as an endorsement
Of the postal savings bank system
proposed by the President and post
master general. Under this plan, the
federal government would invite the
deposit of savings, limit being
placed upon the amount that each
person or family could deposit. Ae-
cording to this plan, the business mai
would not be protected, for he uses a
checking account instead Of a saw
ings account; but no one can doubt
that the successful operation Of gov
ernment savings bank would ultimate.
" lead to an extension Of the pan
until the government bank would, In
clude the ordinary checking account
and be open to deposits without llm-
It. It would mean a long contest be-
tween the depositors and the bank
ers. but a contest which must In the
end be decided on the side OF tne
depositors. The bankers must de-
eide, therefore whether he win fav-
or a postal savings bank which, IN
1 a.
the absence Of the guaranty bank, vii
grow until 1t absorbs the banking bus
mess, or preserve the. present sys-
tenn Of banking by giving to the peo-
pie, through a guaranty law, the pro-
lection which they must otherwise
, find in government bank.
: The democratic plan, therefore, con
templates less radical change than
: the republican plan. In his notifica'
> ton speech, Mr. Taft charged the
: democrats with being socialistc 10
: some Of their remedies. The charge
WAS mot wen founded, but I might
! replv NV charging him With ady0cat