New-York tribune., 1908-08-28
RRYAN FOR GUARANTEE
HIS BANK DEPOSIT PLAN.
Adds to His Speech in Tiezc of
4ctiOn an Kansas.

-r,aka Kan Aug z7-William J. Bryan ad-
dressed a large audience here tonight in adj
ocacv Of his plan for government guarantee of
hank deposits He and his party arrived at l
o..lock this afternoon, and met by a recep-
non committee composed of leading Democrats of
the city and A crowd greeted Mr. Bryan a
,be station and the hotel
As announced by him before his departure from
Kansas City. Mr. Bryan, in view of the action of
The Kansas Republican State Council which in
dorsed the guarantee of bank deposits made
remarks supplementary TO his prepared speech on
that subject. He spoke in part T llows:
The United States government requires the de-
post OF Speclhc secullty wilen II lI.trusus Ihvey
10 a national bank, although il examine the
bank any time; the state requires security when
i utloS4's az piilh' the county requires
security ana The city requires security; even the
banks require Sc urlly from The ocizIs who nand
money Why should the depositor be left to take
A bank asks deposits on the theory that the de-
posItor s sure OF the return Of his money, and
theory The ,iepostor the ,onmmnity snS ,he
banker himself VIII be benefited by legislation
which VIII give TO every depositor the assurance
mat that which Is committed 10 the keeping Of
the bank Will be available TO meet his needs at
any ilnie Such is not the case today, for while
all banks are reasonably secure they are not ab-
eTal ways. -'''s' III Se'-
FIrst-The President has advocated a postal saw
ing argument in its favor pointed out that
many millions are sent TO European savings banks
every year by Americans OF foreisn birth Who
prefer the institutions of the nations
helona Ihe sea rather than the private banking
Second-it is known that a considerable amount
Ihe approach of panic business depression
bstS money Is not only Withdrawn from active use.
when money is most needed and when the with
Third-The increase in the issue of money or
GERS; paEabe TO the order OF the purchaser. is
Fourth-National banks confess that their banks
are nol secure when they oppose the guarantee of
state banks on the ground that il would lessen
confess that their banks are not secure when they
oppose national guarantee system the ground
Fhth-The experience of Oklahoma furnishes
a PFGf S s that ID do not feel that
the deposits Were increasing in the guaranteed
state banks and trust companies of kansas-the
decrease being S,l9S.o26 y between March 81 and
For many years efforts have been made in Con-
guaranteeing deposits but the infuence Of the
great banking institutions has been sufficient
prevent action Last fall. however when the banks
By concerted action suspended payments
checks. the depositors were everywhere brought
TO realization Of the fact that their deposits
IN fact loans PAYABLE on demand under ordinary
in emergencies The deposftors suffered a eoDsid
erable loss during the suspension of payments and
then learned. The Democratic party being more
Tree thsn ~ the Republean party to respond TO the
lowing wing plank in its national platform:
national banks sIa be resired to pF saheb 'he
guarantee fund for the prompt payment of the de
equitable system which shall i'' be Available to all
state banking institutions wishing to use it
OPPOSITION OF MR. TAFT.
ne n, ,Replblean platform is silent the subject
d aaa me republican candidate not only does
and tically opposes it Mr. Tafts hostility to
All bts spaan5ee n systems is shown IN the objection
The proposition is to tax the honest and prudent
prudence of others No one can foresee The burden
the sound and s would be imposed & Upon
Try 10y this obligation make good the losses
men who would be enabled to secure DEPOSITS
Under Iiuer such system on the faith Of the proposed
insurance. as in its present shape the proposal
would remove all safeguards against reckIessness
alIy the only BENEFIT would accrue 70 The enc pec
tor who would be delighted enter the banking
blsln.ss when it was certain that he could enjoy
any profit that would accrue while the risk would
nave TO be assumed by his honest and hard-work-
As Mr., Taft's argument is that presented by the
above the welfare of the depositors and the fety
of the community, it is worth while to answer the
several propositions which he advances.
Let US take the first sentence. that ''the honest
for the dishonesty and imprUdence Of others Is
net this true of all restrictions banking? Does
laws suffer in order that the depositor may be
protected from the dishonest and imprudent? But
because bankers prudent. these laws
place burden upon the good as well as upon the
banker from the impr1ldent one Until bank actu-
ally fails In like manner il might be said that il
rates need be as high they are but the
ful have TO pay higher rates than they should be
MI Taft complains that no one can foresee the
upon the sound and conservative bankers of the
country by this obligation to make good the loss
men etc We have The past to guide US. and we
have reason 10 believe that the loss will he less
in the than in the past because when banks
become mutually responsible for each others de-
other to favor better regulation and greater restrc
tons-
from reckiessness and speculation? While & he Ee
eh-kr a
stock jobbng. In declaring that the system pro
rosed by the Democrats would remove all af@ ,f-
Taft betravs ignorance Of the subject. for the
narle yuan In i fact It con5embaes stricrer regua
tions of the banks. and Oklahoma has already
made the banking regulations strlcteT.
He declares that the cniy benefit would accrIe ,a
e the & ep 9nd Il Rs I eeran tG tht e e
gould snjoy profit II that Ggd &c secgs bs bo5e mnilf
Gat hard working fellow" Why would "specu.
f.icr' he delighted to enter the banking business
fraIn pacuniarv Obligation nor he relieved from
criminal Ilabdi1y @ de Id m0IH ,e stockboders have
ANYTHING to gain by Indifference
CAUSE OF BANK FAILURES.
Tho chief cause Of bank failures is the making
Of excessive leans TO directors or 9f1cais OF G tne
iectin banke from their own officials and direc-
tors Why? Because there has been no mutual
responsibility. When all banks become liable for for
upon the enactment OF law making il criminal
"f"nce for bank official to loan more lhlf the
an ,hiection is sometimes made 10 the guarantee
Law that a new bank would start Up across tle m
street. and being able promise lis deIoSltois
Ffsol1fe security through the guarantee law. could
sgeJ hanks bV Offering a higher rate of interest
than the latter could pay 1nis ooJecti2Gii -.
see how easily il can be met. Since the law makes
all the banks liable for the o3lsanoils VI e tbi
GIg sc ~ am any aI~endv fixed the rate of interest
.Io ho IN lpDOSltOrS.