Rocky Ford enterprise., 1908-09-25
Juggle Deposits for Political Effect.
Frank Lee, in Pawnee (Nebaska) Re-
o,,hIiran


publican.
In his speech at Topeka, Kansas,
favoring the insurance of bank depos-
its, Mr.. Bryan appealed to the exper-
ience of Oklahoma Referring to the
guaranty" law in force in that state,
he said among other things:
Statements are made by the banks
in December and May. Between these
neriods the secured banks gained in
deposits $4,237,765.22, while the un-
secured banks, all national. showed a
decrease in deposits of $1,1oI ,8o7. sc.
A large part of this increase repre-
sented money brought from hiding
or from without the state, but the de-
| crease in the unsecured banks can
only be explained in one way. A
la-re number OF depositors Withdrew
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 with
| drawals, the unsecured banks, in some
instances, offered a higher rate of in
terest than the secured banks were
permitted to pay; and it must be re-
membered also that the banks which
suffered a loss of deposits were all
national banks. And to make it GER
tain that the difference was caused
by the guaranty law, the secured
banks gained, while the unsecured
banks lost"
The above utterance will no doubt
be inserted in the democratic CAM
paign book and largely quoted from
the stump. Fairness then demands
that voters should understand some
thing of Oklahoma's experience which
nowhere appears in the Topeka
speech.
The act of congress which enabled
the people of Oklahoma and the In
dian territory to form a constitution
and be admitted into the Union con-
tanned the following:
There is hereby appropriated, out
of any money in the treasury not 9TH
erwise appropriated. the sum of five
million dollars for the use and bencfit
OF the common schools Of said state"
Volume "a, Statutes at Large, page
272.
This gift OF republican congress
became available on Nov. I6, 1907, the
date when Oklahoma was formally
admitted to statehood. Since that
time it has been under the control of
c. n. Haskell. governor of the state.
and the gentlemen selected by Mr..
Bryan to finance the present demo-
cratic campaign. The fund was at
first placed in national banks doing
business in Oklahoma. 1t was per-
mitted to remain in such banks until
the state guaranty bank bill" was
passed and became a law, then after
Dec. 1907. and before May, 1908. the
fund was withdrawn from national
banks and deposited in state banks.
The national banks not being in
politics, and not comprchending the
purpose for which the funds were
withdrawn. assumed, it appears. that
such action was taken for the better
security OF the state. Wishing to keep
on deposit a portion of this fund.
many of them rendered government
bonds to the state treasurer as collat-
eral to secure the state against loss
OF any portion of the money they
might be permitted to hold. The Of
| fer was declined. The banks were ad-
vised that to retain any portion of the
| funds it would be necessary to pay
tax OF one per cent on all deposits
and thus avail themselves OF the state
law
Thus between Dec and May, the
period mentioned by Mr.. Bryan. FIVE
| million dollars, the school fund OF
Oklahoma. was WITHDRAWN from ma
tional banks by a democratic govern
or. and deposited in banks doing bus
mess under the state law. After
which the statement is issued that
state bank deposits have increased ap-
proximately FIVE million dollars,
while the unsecured banks, all ma
tional, show 4 decrease in deposits
of SI.IoI .So7 SO" In other words, the
man who was chairman of the nation
al democratic committee on platform
r r ENT-4 alCFy-vcntionffn
at Denver, and who is now treasurer
of Mr.. Bryan's campaign, has manu-
factured the data which forms the
basis OF contention in support oi
insuring bank deposits.
What has been done in Oklahoma
forcibly shows the most dangerous
features Of the proposed plan; that is
it tends to throw the whole banking
system into partisan politics. The
| funds of the state are not deposited
with any view to security. but more
to political cxpediency. As result
millions of dollars intended for the
school room may be used by politi.
clans to perpctuate the power. of 4
party. In Oklahoma il may be clcv,
er politics to let children grow up in
ignorance while an ample school fund
is juggled from bank to bank in or
der to exploit the beauties of new
financial scheme. But the United
States government needs no law &c