Bisbee daily review., 1908-09-20


abandoned the pleasant practice OF
golf at Hot Springs the other day long
enough to make a speech attacking
the system proposed by the Demo
cratic party and warmly urged by Mr..
Bryan for the protection OF deposit
ors in banks, whether state or ma
tional.
This system briefly expounded
means merely that all banks in GER
tain specified territory should be
taxed fraction of one per cent upon
their total deposits in order that if
any one should fail the fund thus Gre
ated should be available for the imme-
date payment of all depositors The
plank in the Democratic platform suN-
ering this matter so vital to every
thrifty and saving citizen is as fol-
lows:
The panic of 1907. coming without
any legitimate excuse when the Re
publican party had for a decade been
in complete control of the federal gov
eminent. furnishes additional proof
that it is either unwilling or incom-
petept to protect the interests of the
general public It has so linked the
country to Wall street that the sins of
the spectators are visited upon the
whole people. While refusing to eA-
cue the wealth producers from spoila-
ton at the hands of the stock gam
blers, and SPECTATORS :. farm prod,
ucts, it has deposited treasury funds,
without interest and without eompeti-
ton, In faxorite banks. 1t has used
an emergency for which it is largely
responsible TO force through Congress
bill changing tae basis of bank cur
ton and has failed to give TO the fif-
teen million depositors of the country
protection in their savings.
We believe that insofar as the
needs of commerce require an emer-
gency currency. such currency should
be issued and controlled by the feder
al government and loaned on adequate
security to national and state banks
We pledge ourselves TO legislation
under which the national banks shall
be required to establish a guarantee
fund for the prompt payment of the
depositors of any insolvent national
bank, under an equitable system
which shall be available to all stats
banking institutions wishing to use It
We favor postal saving bank il
the guaranteed bank cannot be Sc
cured and believe that it should be SC
constituted as to keep the deposited
money in communities where the de
positors live But we condemn the
policy Of the Republican party in pro
posing postal savings banks under q
plan Of conduct by which they will ag
gregate the deposits of the rural com
munities and ~edeoosit the same
while under government charge in the
banks of Wall street, thus depicting
the circulating medium of the produc-
ing regions and unjustly fayoring the
speculative market"
When a depositor takes fifty or Z
hundred dollars and puts it into q
bank he lends it TO the bank. The
bank uses it for purposes OF profit
When the bank lends money to Z
farmer for tie purpose of carrying
his crops, or to the shop keeper il
order that he may be able to re
pienish his stock. or to the hom,
building mechanic so that he ma,
erect for himself house, the banI
eXacts security. Il must have eithel
a mortgage or warehouse receiD
or a second name on the back OF tn,
note. But when you go into d banl
TO make a deposit, yon get no secur
ity except the reputation OF the bani
itself. yon get no second name on tn,
hack OF your deposit slip VIII!
should not the bank give security Il
its depositors2 1t is all very well =
say that conservatism and careful
management OF banks gives assurance
that they viii pay their depositors and
handle their depositors funds in sucl
a way as to keep them intact But
Is not more than eight or nine month
since practically fourfifths of th'
banks OF the United Stats were re
fusing to pay their depositors none
on demand They gave clearing hous
certificates, which at that time wer
as absolutely Illegal as payment i
garden truck would have been. An
It Is ? matter of history. despite tn
protests OF some Of the so-calIed hi
bankers. that the big banks were tn
first to resort TO this device. As tae
had all the reserve funds OF III
smaller banks in their vaults, the Ia
ter were compelled to follow their e,
ample. And yet il Is the big banl
ers Of the great commercial center
who have the iron-cIad nerve to do
clarr- taat q system by which all ban
deposits are guaranteed win beneG
vhaf they call the weak banks at tn
expense Of the strong ones.
Alexander II. Reven. the bead Z
enc cf the largest commercial institl
tons ia Chicago. a lifelong Repubi
can. man who has been more tina
once chairman Of Republican can
paign committees is avowediy an
even enthusiastically in favor Of tn
plan for the guarantee OF bank d
posts. do not Wish to nisztate
the slightest degree Mr.. ReFelrs p
sition While he appizuds and ~
holds fsir plank il the Democrat
rlatfcrn. ne lrmzira ssif Reprbl
ran Indeed IN CONVERSATION the ot;se
day he showed me that he had bee