Bisbee daily review., 1908-09-20
ssFhis System Briefly Expounded Means Merely That All
Banks in Certain Specified Territory Should Be
Taxed Fraction Of One Per Cent Upon Their
Total Deposits.
If ONE SHOULD FAIL FUNDS AVAILABLE
FOR IMMEDIATE PAYMENT OF DEPoSiT0Rs
The Plank in the National Democratic Platform Governing
This Matter is Vital to Every Thrifty and Saw
ing Citizen.

urging the same reform with some
slight technical differences for some
years past. Nevertheless the fact
that ii appeals TO a. man of his type.
one of the ten or twelve biggest bust
ness men in Chicago, is a fair indi-
cation of how it must be impressing
the business community as a whole.
Mr. Reveli holds, as the Democratic
platform holds, that it should be ap-
piled 10 national as well as TO state
banks
~one thing about it" said he.
waich has not yet been widely
brought out is the fact that bankers
both in small towns and in great
towns watch each other with the eye
of hawk. II one banker finds that
q rival has lent hundred thousand
dollars on widest security and knows
that if loss should follow and the
lending bank go TO the wall il would
cost his bank three or four thousand
dollars as their share of the guar
anty fund, YOU viii find that bank
getting busy and Investigations or
dered at once. Moreover" said ne.
even withou THE law there have been
recent Illustrations of bankers coop
Grating. cIumsily sometimes, of course,
to avert panic by paying off all de
positors of wrecked banks. The most
startling illustration was that of the
ISovefeign Bank of Canada which
went to the wall at the time of the
recent bank panic of New York and
other American cities. That panic
had not spread to Canada, but the
other banks simply assumed charge Of
the wrecked institution and paid off
the depositofs as rapidly as demand
was made. The same thing occurred
in Chicago when the banks controlled
by Pohn R. WALSH were banrupted
If there had been a law guaranteeing
bank deposits there would have been
no runs on the banks, no distress
| caused to depositors and all would
have been paid promptly. Even as 1t
was for the purpose of ayerting d
panic and a run on their own banks,
| the other great bankers of Chicago
stepped in, assumed responsibility for
all liabilities of the banks and ulti-
mateIy paid off all depositors. Some
, of the men who thus voluntarily CANE
TO the rescue of the Walsh creditors
| are those now attacking the PROPOSE
ton for a legal and official guaranty
| of bank deposits Had such law been
in existence the Walsh banks might
not have gone to the wall, but at aasy
rate had they done so tae smash would
not have created a ripple in the fl
nancial waters of Chicago. / have
made a study of the losses resulting
from the failures of national banks in
| the United States since the adoption
OF the national banking law. In all
| that time there aaye been four hun
J bred and seyenty-five failures, or
about five per cent of the total mum.
Der of banks The total loss TO de
! positors could have been covered by
a tax of onetenth of one per cent
on deposits A tax which would have
put in the custody Of the Secretary OF
the Treasury a fund OF forty million
dollars would have covered all these
! losses and left a substantial fund for
! future use
And for once in this instance there
can be 20 evasion OF party responsi
bility, no confusion as to which party
1 stands squarely upon this issue. The
i Republican convention declared in fav
or of postal savings banks. the Demo
cratic convention pronounced in favOI
of postal savings banks only in the
event that the plan for the guaranty
of deposits could not be putin effect,
/ Mr.. Taft has denounced the Democrat
/ ic plan. IL is not material that tht
state OF Kansas, through its Republi
i can convention has declared in fayol
of it: that means only that Kansa;
Republicans have repudiated their ma
-. .s,l
nominee Ii will not relieve the Re
publican party of responsibility OF an
4 taganism to the most popular ISSUE
IT as is anticipated the Republicans o
Nebraska also endorse & He mus
accept the attitude of the nominee 70
President and the utterances of tn,
, national platform as authoritative OF
all matters touched upon by either
In an article published in promin
| ent Republican paper OF Chicago, t.,
Record Herald, Mr.. Walter Wellman
I well known political writer. declare
! t1at in his judgment this issue Of tn,
Il guarantee OF bank deposits is becom
ling the chief one OF the campaign. Nh
Nellm2n is a political writer who S,
. far as the natural tendency of ever,
man to sympathize with one side o
the other viii permit, has been non
partisan in his work. And it is 70
( This reason that We find II wort
/ ,while to quote somewhat from hi.
= letter 10 the Republican Record
Herald:
ri In the West they tell me a grea
+ majority Of farmers have money il
bank When the money panic starte,
/, | In New York last October and eat,ca
2 wave Of more or less needless alarr
j 70 run throughout the country. man
!, / farmers took their automobiles, tllei
, CARRIAGES CT their wagons. went t
j itcEn. withdrew their money from IN
Z banks sBa hid II al home in stock king
CT uuaks or between floors. or out &
: he barr. Al any rate farmers VII
did net do this. as well as farmer
r w1o cid we're set thinking. and ihei
! thoughts, am told By men Who liv