The Nevada County picayune., 1908-09-03
BRYAN SPEAKS ON
 BANK GUARANTEES
IN SPEECH AT TOPEKA HE DE.
 FINES PLATFORM PLANK
TO BENEFIT COMMON PEOPLE
ro'nts Out Many Advantages of the rroposed System and Meets the Various Criticisms of the
 Republicans.


 lopeka, kan-Mr. Bryan spoke be- lore an enormous audience at this place. His subject was Guaranteed Banks, and he said in part:
 o,,Why. not make the depositor secaree me mted States government requires the deposit of specific security when it luSts tt,l uSts i69HeE to national bank, al Ilo"SH It can examine the bank at any 4Iile, the state requires security when it l u'Postls money in bank. the county re- 4ulres security and the city requires se- FfmIIly' even tA" banks require security rom the officials who handle money Why should the depositor be left to take his chances?
 Not only is the depositor without pro lection but the security given to ma tloil, state. county and city lessens his security They are preferred creditors: they have q 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 neglected2
 bank asks deposits on the theory that the depositor is sure of the return ol ms money, and the laws ought to make the facts conform to the theory. me dep9sitor. the community and the tanker himself will be benefited by legis- latlOn Which will give to every depoSitor the assurance that that which is com mitted 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 postal savings bank. and his postmaster general in presenting an argument in it's tdVor, pointed out that many millions are sent 10 European savings banks every year by Americans of foreign birth wHo prefer to trust the state institutions of the nations beyond the sea. rather than the private banking institutions here.
 Second It is known that consider able amount of money is in hiding. the amount increasing with the approach of Il panic or business depression. This mon eN Is not only withdrawn from active use, but Is likely to be withdrawn just at the time when money is most need d and when the withdrawal will increase the financial disturbance. It is impos- sihlo to reason with fear: ii is futile to tell men that they will probably get their money. The moment the depositors sus- pect q bank. they hasten to destroy its solVeneY. piStrust. 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 tercst upon deposits and yet those who buy money orders prefer to lose the in- terest and. in addition 10 that. pay the price of the money order in order to se- cure the governments 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- it's in national banks; and state bankers 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 If you want to find whether banks are absolute ly secure, ask the directors to give you their personal note to secure your de, posit and you will learn that they will not bear the risk which they ask you to bear
 Fifth: The experience of Oklahoma furnishes conclusive proof that deposit CTS do not feel that their money is safe crmber 1907, the Oklahoma legislature enacted depostors' guaranty law, which became operative February I. l9OS. Ky the provisions of this law all state banks and as many national banks as desire to avail themselves of the law. are taxed l per cent. on their deposits, and the money thus collected is put into a guaranty fund. The banking board Is authorized to make additional assess nents from time to time to keep the fund up to this amount, and is directed to 'ake posse ssion Of any lnsolNent bank' nav the depositors in full. and reimburse 'hc fund by collecting the assets of the failed bank Five hundred and hfty-tiVe banks. including j4 national banks. had
 
 an the 1ith of last May, leaving but 2o5 unsecured banks Gall nationaD in the state. Statements are made by the banks in December and May. Between these periods the secured banks gained in de- pnsits St 227 Ia - while the unsecured hanks. all national. showed decrease m deposits of $l.lol, ,S07 S6. large part If tIis increase represented money tro,STf from hiding or from without the state but the decrease in the unsecured banks can only be explained in one. way. \ large number of depositors withdrew their money from the unsecured banks, md dppasitcd it in the secured banks, and this too, fin spite of the fact that in order to prevent Withdrawals' the uhse a higher rate of interest than the secured hanks were permitted 10 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 tne ruarautV law the secured national banks eaIned while the unsecured banks lost. While the deposits were increasing Tn tht .,i,araDtsed banks of Oklahoma, they were failing in the state banks and trust companies of Kansas the decrease being sl I53 cs6g between March Sl and June '',o amount of criticism of the timid 1Cnositor can change the fncts, the peo- rls who deposit money want more se- ruIity than the laws at present give tbcm They will change banks 10 gel ,,,ro security and if necessary, they viii send their money to another state.
 For many years efforts have been made in congress and fin the various states to att,r. at n law guaranteeing deposits, but Enc influence of thr great banking insti- unions has been sufficient to prevent ac- tInn Last fall. however when the banks h,, a concerted action suspended pay r'SSorts on checks. tine dep1stcrs were e>.er,,WH,re hroueht ta q realization ot l,c fact that their deposits are ID Tact ',,,,, uo,,all,. on demand under ordinary 'iir,.c,,,,n,sfanecs. but payable at tGe will oF inc hank in cmorE,uc es The depps- itors sunered considerably loss during i,, 1ot forgotten the lesson which they tLen learned The Democratic. pnrtv. be ine more free than the Republican party to respond to the needs CT the masses of the people. inserted Che toloWlhs Plahk in its national platform; -,-.,
 we pledge ourselves 10 leglsiatioh hy which the national banks shall De re quired to establish a guaranty tuhd TOT