Daily press. [volume] (Newport News, Va.) 1896-current, 1908-08-28


isomething to the stOcknoIder, in peace
OF mind. to know that the maximum
of his loss would be the value OF MS
stock and the 100 per cent liability,
and that no deposition could lose any
thing? l am convinced that the guar
anty CT deposits would not lead to de-
generation in the personnel of the
bankers.
The Peoples Rights
To justify law guaranteeing de-
positors. it is not necessary to show
that the advantage to the bankers
would amount to more than the tax.
The examination of the banks would
continue to be made at the expense
|of the banks. even If it We're certain
that the examination was of no pc
cuniary advantage to the banks. Tn"
law would continue to require GER
tain amour: Of reserve to be kept on
hand, even II II were certain that
such a law brought no pecuniary gain
to the bank; and so the tanks ought
to be compelled to insure their de-
positOrs against loss. even II 1t couid
not be shown that such insurance
would bring a compensating edventase
TO the bank The bank charter has
value: il it were not valuable the
bank would not be organized. The
bank charter is gift from the
people through the law. and the
people who authorize the establishment
OF a bank have a right to demand, in
return. that the bank shall keep tho
pledges witch il gives when IT invites
10 nrOln1SgsS
of security TO those who deal with ".
But as a matter OF fact. the banks
will. as 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
1.-TWO tanks have failed and the assets
have in both cases been sufficient TO
reimburse the fund.
Then. too. the banks must remember
that the question is not merely wheth-
/ r depositors shall be made secure
hut whether the security shall be given
!! by the banks themselves or by the
government through q postal saving
bank.
The refusal of the banks to permit
the passage of a law granting securl-
l ty to depositors is responsible FOR the
growth O; the sentiment in favor OF tpe
government saving bank, and the
sentiment. will continue to grow I'M
less something Is done to satisfy
the demands of the people upon thiN
| subject.
Demands From Both Parties
The Republican party proposes the
establishment Of postal saving nahk
system: the Democratic party prefers
the guaranteed hank because II Is pet
ter for the depositors and better ior
the banker--it gives the depos.tor the
| security which he needs and yet leaves
1.-The banking business in the hands OF
1.-THE banks. But the Democratic plat
form declares for "a postal saving
hank II the guaranteed bank cannot
be secured and in November more
than ninety per cent OF the voters
ell by their ballots demand either the
guaranteed bank or the postal saving
bank. Can the sinancier prevent the
carrying out Of this demand
! The Republican platform does NOT
10 into detail but II Is fair to assume
that the postal saving bank plank Is
Intended as an endorsement Of the
postal saving system proposed by the
President and postmaster general.
1 Under this plan the federal govern
ment would invite the deposit OF saw
ines. a limit being placed upon the
amount that each person OF each ram
lily could deposit. According TO this
piar. the business man would not DC
protected. for he uses checking &C
lconnt instead OF q savings account
hut no one can doubt that the SUCCESS
Iful operat.on Of a government SAVINGS
thank would ultimately lead To an cx-
Iscnsiou OF the plan until the govern
4 ment bank would include the ordt-
nary checking account and be- open 10
ldcposits without limit. u would mean
Ia long contest between the deposttors
and the bankers. but a contest wnich
must in the end i, decided on the side
Iof the depositors. The banker must
decide therefore whether he viii fav'
lor a postal savings hank which, ia ihc
iabscncc Of the guaranty hank. viii
grow until u absorbs the banking
business. or preserves the present sys-
Item Of banking by giving to the people
Through . guaranty iav. The pro'ec'ioh
which they INST otherwise lind In a
government hank.
TIE Democratic plan. therefore. con
templates a less radical change than
4 1.-THE Republican plan. In hss ro,ificat
z ion speech Mr.. TAFT charged the Demo
\ lcrats with being socialis'i" In some Of
: tn. n remedies The r. rye sas not
vel founded. bat iSht reply by