Omaha daily bee., 1908-08-28
SPEAKS IN TOPEKA
Nebraskan Defends Democratic Plank
on Bank Deposit Guaranty.
REPLY TO MIR. TAFT's STATEMENT
Democratic Candidate Thinks Scheme
of His Party IL Much Better
Than Postal Savings
Banks.

TOPEKA, Kan, Aug. 2L-Before an audi
ence which filled the Auditorium to over
flowing, w. ]. Bryan; democratic csndi-
date for president, spoke on the subject Of
guaranty OF the bank deposits. Previously
he had delivered three other addresses,
two from the veranda of the hotel and the
third at Garfield park. where he attended
a picnic by the Knights Of Pythias. his
latter theme being Fraternity"
The democratic candidate and his party
arrived here at / o'clock and were at once
taken in hand by a reception committee
composed of leading democrats OF the city
and state and conducted to the hotel in
automobiles. A great crowd greeted Mr..
Bryan at the station and atthe hotel.
As announced by him before his departure
from Kansas City, Mr.. Bryan, in view OF
the action of the Kansas state convention,
which endorsed the guaranty proposition,
made some remarks supplementary to his
prepared speech on hat subject. He took
up the advantages Of the guaranty system
and then replied to the objections made to
1t by Mr.. Taft and others. He began by
asking why the depositors should be left
unsecured when the national government
demanded security Of any bank with which
1t deposited money. He pointed out that
the choice was between the postal savings
bank and the guaranty bank and accused
Mr.. Taft of favoring an unnecessary ex-
tension of the sphere of government in ad-
vocating the postal savings bank instead
Of the guaranty bank. Mr.. Bryan declared
that he preferred the guaranty bank propo-
sition, which would allow the banks to at
tend to the banking business and yet compel
them to give their depositors necessary Sc
curity.
Kansas Banker Quoted.
Upon the conclusion of his prepared
speech, Mr.. Bryan said:
II asked Mr.. Breidenthal, a banker Of
Kansas City, to make inquiry among the
bankers Of Kansas ard ascertain what
proportion. of them favored the guaranty
law. 1 learned that of the bankers that
had expressed themselves on this subject,
about three-fourths of them favored a
guaranty law and one-fourth opposed 1t.
This is an excellent showing, Among the
dspositors there is no opposition at all
ard 1t is evident that the Kansas bankers
recognize, first. that something must be
done, and. second, that the guaranteed
bank is better than the postal savings bank.
l also inquired of Governor Haskell in
regard to the number Of national banks
who have. surrendered their charters and
became state banks in order to have the
benefits of the guaranty system. l have
a telegram from him saying that four ma
tional banks have already made. the change
and are operating under the state banking
laws, and that sixteen other national banks
have applied for state charters. This is
conclusive proof that the Oklahoma law is
a success. A national charter is supposed
to have some advantages over a state char.
ter, and the benefits of the guaranty law
must be admitted. when twenty rational
banks will in a short time change from
the national. system to the state system in
order, eto, give their dePOsitors. the, advan2
tages furnished by the guaranty system.
Criticism of Republican,.
Since the preparation of my speech on
this subject. the republicans of Kansas
have held a convention and adopted a state
platform. The plank On the guaranty Of
banks is a recognition of the necessity for
security, but the plank is so worded as to
be practically useless so far as the protec-
ton of the people is concerned. The re-
puolicans propose to enable the state banks
to mutually and voluntarily guarantee
deposits. But that is not enough. Suppose
that the banks mutually agreed not to do
1t. Must the depositors be left insecurel
The Kansas republican platform also re-
quests the republican candidates for con-
gress and the United States senate to favor
a law in aiding a national hank to par
ticipate in the proposed mutual and volun-
tsry system. But what chance is there
Of securing such a law when the republican
national convention refuses to pay any
attention to the subject and when the re-
publican candidate opposes the whole prin-
ciple Of guaranty? Mr.. Taft's denunciation
of the guaranty sygtem is so sweeping
that no disinterested person can for a mo-
ment believe that he will either encourage
or permit a law enabling national banks to
participate in state systems. What the
people need is a system whereby such state
bar KS and national hanks will be compelled
to guarantee depositors and only a demo-
cratic victory can secure this reform. With
a democratic president and a democratic
congress it will he easy to secure the adop-
ton of a system which will make both
state and national banks secure.
Action of Kansas Republicans.
And speaking of platforms, / am glad
to call attention to the fact that the re-
publican platform adopted in Kansas en-
doTses the democratic platform on two i'm
portant questions. First, IL favoIs the elec-
ton of senator's by direct vote of the
people a reform which the republican ma
tiOEal convention rejected by a vote of
seven to one. and which MI. Taft has
never advocated but Cpce, and then in
only a half-hearted way. In his notifica-
ton speech he said that personally he was
inclined to favor" such a law, but II re-
auires more than a mere inclination toward
the law to secure such a reform.
Another plank endorsing the democratic
platform is to be found in the mondemna-
ton Of the present rules OF the house and
In the demand for a modification OF the
rules This is the position taken by the
democratic national convention and it is
gratifying TO know that the republicans Of
Kansas have supported us in the position
taken But what shall We say OF the con-
demnation of the vice presidential candi-
date, Mr.. Sherman. While Mr.. Sherman's
name is not mentioned he is so prominently