Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1908-09-09
BRYAN SPEAKS ON
BANK GUARANTEES
IN SPEECH AT TOPEKA HE DE.
FINES PLATFORM PLANK.
TO BENEFIT COMMON PEOPLE
Points Out Many Advantages of the
Proposed System and Meets the
Various Criticisms of the
Republicans.

Proposed System and Meets the
! Various Criticisms of the
Republicans.
Topeka, Kan.-Mr. Bryan spoke be-
fore an enormous audience at this
place. His subject was Guaranteed
Banks and he said in part:
Why not make the depositor secure?
The United States government reouires
the deposit of specific security when it
intrusts money to national bank, al
though 1t can examine the bank at any
time; the state requires security when it
deposits money in a bank; the county re-
cures security and the city requires Sc
from the officials who handle money.
his chances?
Not only is the depositor without pro-
tecIlon, put the security given to ma
non, state. county and city lessons his
security. They are preferred creditors;
Incy nave a mortgage on the gilt edged
assets and the depositor must get along
as best he can with what remains Why
are the Interests Of the depositors thus
A bank asks deposits on the theory
IRai the depositor is sure of the return
OF MS money, and the laws ought to
mar make the facts conform to the theory
me depositor. the community and the
panker himself will be benefited by legis-
lation which will give to every depositor
the assurance that that which is com
Imtted TO the keeping of the bank will be
available, to meet his needs at any time
Such is not the case to-day, for while all
banks are reasonably secure. they are
not absolutely So. This statement can be
verified in, several ways.
First: The president has advocated a
postal savings bank, and his postmaster
general, IN presenting an argument in it's
taVor pointed out that many millions
are sent to European savings banks
every year by Americans of foreign birth
VINO prefer to trust the state institutions
or the nations beyond the sea. rather
than the private banking institutions
Second: 1t is known that a consider
able amount of money is in hiding. the
amount increasing with the approach of
panic or business depression. This mon
ey is not only withdrawn from active
Use out is likely to be withdrawn Just
At the time when money is most need
"a and when the withdrawal will increase
'1ble to reason with fear it is futile to
tell men that they will probably get their
money. The moment the depositors sus-
'ect bank. they hasten to destroy its
,olvency; Distrust, and distrust alone
can explain the hiding of money
Third; The, increase in the issue of
money orders, payable to the order of
the purchaser, is another evidence that
people are seeking greater security for
their money. The banks will pay an in
serest upon deposits ana yet those who
terest and, in addition to that, pay the
price of the money order in order to Sc
cure the government's guaranty.
Fourth: National banks confess that their
banks are not secure when they oppose
the guaranty of state banks on the
ground that 1t would lessen the depos-
confess that their banks are not secure
when they oppose national guaranty
system on the ground that it will draw
deposits away from state banks. II you
want to find whether banks are absolute
ly secure, ask the directors to give you
their personal note to secure your de-
oosit and you will learn that they will
bear.
Fifth: The experience of Oklahoma
furnishes conclusive proof that deposit
In unsecured banks. On the nth of De-
cember. 1907, the Oklahoma legislature
enacted Ia depositors, guaranty law.
BY the provisions of this law, all state
banks. and as many national banks as
desire to. avail themselves of the law
and the money thus collected is put into
a guaranty fund. The banking board is
authorized to make additional assess
ments from time to time to keep the
fund up to this amount. and is directed to
take possession of any insolvent bank.
pay tire depositors in full. and reimburse
failed bank. Five hundred and ffty-five
banks, including 81 national banks. had
come under the provisions of this law
on the 14tEI of last May. leaving but 255
unsecured BANKS IAN nationaD in the
state. Statements are made by the banks
December and May. Between these
osits "a 2S7. 765. 90. while the unsecured
anks. all national. showed a decrease
in deposits Of $l.l"1 S. A large part
brought from hiding or from without the
state. but the decrease in the unsecured
banks can only be explained in one way.
11N<,-
their money from the unsecured banks.
and deposited it in the secured banks,
and this. too. in spite of the fact that in
order to prevent Withdrawals. the unse-
cured banks. in some instances. offered
a higher rate of interest than the secured
banks. were permitted TO pay: and it
must be remembered also that the banks
which suffered loss of deposits were all
national banks. And to make it certain
that the difference was caused by the
guaranty law. the secured national banks
gained. while the unsecured banks lost.
While the deposits were Increasing I'm the
guaranteed bants OF Oklahoma. they
were failing in the state banks and trust
companies of Kansas-the decrease being
81 l55, n26.27 between March 81 and June
No amount of criticism of the timid
deposition can change the facts: the peo-
pie who deposit money want more Sc
curfty than the laws at present give
them. They will change banks to get
more security. and. IL necessary, they
viii send their money to another state
For many years EFFORTS nave been made
in congress and in the various states TO
secure a law guaranteeing deposits. but
the influence of the great banking ipsti-
tutions has been sufficient to prevent ac-
ton. Last fall. however. when the banks
by a concerted action suspended pay
ments on checks. the depositors were
everywhere brought to a realization of
the fact that their deposits are in fact
loans payable on demand under ordinary
circumstances, but payable at the will
of the bank in emergencies The depos-
itors suffered a considerable loss during
the suspension of payments. and they
have not forgotten the lesson which they
then learned The Democratic party be-
ing more free than the Republican party
to respond to the needs of the masses
of the people. inserted the following plank
in its national platform:
I'VE pledge ourselves to legislation by
which the national banks shall be re-
CURED to establish guaranty fund for
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3. Franklin. Printer.