Omaha daily bee., 1908-10-17

try would like to MD the country of those
banks which fail and lose the money of
their depositors. If Mr.. Bryan's scheme
is carried out we will have one of the
greatest banking trusts the world has ever
seen and surely these democratic orators
do not believe in trusts. The monarchial
system OF barking is not the wish of the
American people.
THE relation between a banker and n
depositor is that of debtor and creditor.
The majority of the depositors decide
wisely, considering the capital of the bank
and the men who run 1t. 1t takes ability
and judgment to run a bank successfully.
Character with only a small capital goes
farther than large capital and, small char
acter. Capital is not all power. for char
acter can at any time be coined into capt.
tai, but capital cannot be coined into char
acter. The loss since the war has been but
4 cents to every 500 deposited. If tile bank
guaranty is to take the place of capital
and character the loss cannot be estimated.
The present five national banks of Omaha,
the upholders of our financial life. are all
ooffshots of the three Institutions started
in Omaha forty-five years ago, During
these forty-five years not one of these
banks has lost a cent for a depositor.
lnaL is the record OF tue OHldna DankSs
Now comes Mr.. Hitchcock and wants to
tax the Omaha banks which have not lost
a cent in forty-five years to take care of
banks in other sections where they are not
properly managed. The Omaha banks would
be asked to contribute 81, 600 in ten years,
according to the figures of Mr., Bryan and
Mr.. Hitchcock. II they had been taxed all
these years what return would Omaha have
N.ao ~. a, ,aAt anI oil This N xrahrl
have been taken away from Omaha.
Experience in other States.
Bank guaranty laws were held a long
time ago in New York for two years, but
the law was repealed as soon as the legis-
lature met. 1t cost the state $1,000, 100.
Michigan's law met the same fate. Okla
homa's laws will go likewise. Mr.. Bryan
had them push the law in without discus
sion as he wants 1t to use in the national
campaign. Half the men who passed this
law did not read It, and would not have
understood it II they had. There has been
a great increase in the number of banks
and in the volume of deposits in the guar
anteed banks which goes TO carry out my
arguments. Forty-seven new banks have
been organized in Oklahoma since May
because of this law. Five had been
organized IN one udys III u Town Oh
LOO people the officer of the law
had to turn down a Fourth bank which
wanted to organize. OF the forty-seven
new banks forty-two have only $4,000 each
Of capital the minimum under the law.
They say what do we care for capitalize
state is in partnership with us?' One bank
with 800. 900 under the national system has
reorganized with $4,000 capital under the
M N.-. 49, 1000
over the increase in deposits over A'b0O,O00
II fraud is contemplated it is made vel.
easy under the guaranty. In Oklahoma one
case is reported where one man who was
lust releasd from the penitentiary as a
pubic defaulter is starting a bank. A
saloonkeeper driven out of business by pro-
hibition started a bank, and has deposits OF
$4,000. Another went through bankruptcy
and then organized a bank"
Conclusion of DebAters,
1.-The effort is not only to guarantee the
deposits but to regulate the banks" said
Mr., Hitchcock.
In Canada there prevails a system of
bank guarantees on all fours with the pro
posed law, except that ii applies to notes
as we'll as deposits. In England they are
guaranteed, practically, because there they
have but few banks With many branches,
so they practically guarantee each others
deposits; and the same Is true in France.
The banks should be forced 10 go into this
the same as railroads were compelled to
put on safety appliances. 1t is the duty Of
the state to see that a bank is made safe
Mr.. Hitchcock tries TO get away from
the Oklahoma law" replied Mr., Yates. 1T
is as good and perfect as a national law
Of the kind could be. 1t was framed up
by MI. Bryan after his own ideas. Governor
Haskell is one OF the banking board. The
state OF Oklahoma assures no guaranty
under the law. but the depositoTs are guar