The Democrat-sentinel. [volume] (Logan, Ohio) 1906-1935, 1908-10-08
PROTECT DEPOSITS
GUARANTEE PLANK ONE OF MR..
sRYAN's WINNING CARDS.
The object Lesson In Oklahoma and
Convincing Men that their Savings
In Banks Should be Protected as
We'll as Government Deposits.

The Democratic National Platform
favors guaranteed bank deposits; the
Republican platform Is silent on that
subject Mr.. Bryan heartily cham
pions the plan; Mr.. Taft Is strongly
opposed to 1t.
Mr.. Taft and Guaranteed Deposits.
In his speech OF acceptance Mr., Tart
puts himself squarely on record as be
ing opposed to guaranteed deposits
EIe says: THE Democratic platform
recommends tax upon national
banks and upon such state banks as
may come in, in the nature of en-
forced insurance to raise guaranty
fund to pay the depositors of any
bank which fails. The proposal Is
wholly impracticable unless 1t Is to
be accompanied by a complete revo
luton in our banking system, with a
supervision so close as practically to
create government bank. III the
proposal were adopted exactly as the
pIdtIoIIu ou66Voto' ~
would bring the whole banking system
Of the country down in ruin"
Why seek to confuse the people on
a simple proposition? We are sup.
posed to have Government super
vision of national banks now. Super
vision does not mean government
bank; 1t simply means that the ma
tlonal bank Inspectors will do just as
they are expected to do under exist
ing law-make their examination OF
banks thorough and make prompt and
effective correction of any irregulari'
ties discovered So 1t will be difficult
to frighten the people by the claim
that guaranteed deposits means tho
rough supervision of banks. That's
just exactly what the people want
1t is absurd to say that guaranteed
deposits would bring the whole bank
ing system of the country down to
ruin"
What does guaranteed deposits"
mean? 1t means that the savings OF
the masses shall be secured so that
when men and women deposit their
hard-eaned money in banking insti
tutions, they need not worry for fear
it will be lost through the reckless
ness and dishonesty of bank officials.
The Federal Government demands Of
these banks security for the money
1t deposits. AS a rule state govern
ments and county governments and
municipal governments make similar
requirements. But now that 1t Is pro
posed that depOsitors generally shall
have some such assurance for the
safe keeping of their wealth, we are
told by the Re publican candidate for
the Presidency that the adoption Of
such a plan would bring the whole
banking system of the country down
to ruin"
okIahoma's object Lesson.
Oklahoma has the guaranteed de.
posit plan and the following Associat-
ed Press dispatch tells of Its opera
tlon In the first bank failure since the
law went into effect:
Guthrie. Okla, May 81, 1903
Within one hour from the time H. H.
Smock, Oklahoma banking commits.
sioner. had taken charge of the In.
ternational Bank of Colgate he had
authority to pay the depositors in full
though the banks cash and available
funds In other banks fell $4,000 short
Of the total amount of deposits. The
commissioner was enabled to do this
under the operation of the new bank
ing law, and this Is the first time it
operation of the guaranty banking
law of Oklahoma tariff of cent is
levied upon the average annual de-
posits of the banks, and this money
is used In payment In full Of all de-
positors of an insolvent state bank
after the funds have been exhausted"
viii the Banks Answer This?
In addition to the arguments al
anteed bank. the following is sub,
mitted:
The United States Government re.
quires deposit of specific security
when 1t deposits money In national
bank; the state also requires secur.
fly, and the county and city deposits
are secured either by bonds or by the
deposit Of specific securities.
Now the question arises, II the
United States Government, which can
at any time inspect bank and find
out just what 1t is doing and how its
business Is being conducted, requires