Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1908-08-29
Bank Insurance
MR. BRYAN DISCUSSES THE GUARANTY BANK DEPOSITS
SHOWS THE FALIACY ARGUMENTS IN OF.
Observation-Disclosures SHOWS WOULD BE LESS THAN
ONE-TENTH CENT.
Continued from yesterday

"S'uiity W uSpoSltOrS is responsible
for the growth OF the sentiment in
favor of the government savings
bank, and the sentiment will contin-
ne to grow unless something is done
to satisfy the demands OF the peo-
pie upon this subject.
The Republican party proposes
the establishment OF a postal saw
ings bank system; the Democrats
party prefers the guaranteed bank
because it is better for the deposit
or and better for the banker-it
gives the depositor the security
which he needs and yet leaves the
banking business In the hands of
the banks. But the Democratic
platform declares for "a postal saw
ings bank is the guaranteed bank
cannot be secured" and i4l Novem-
Der more than ninety per cent of
the voters will by the their ballots
demand either the guaranteed bank
or the postal savings bank. Can the
hnanciers prevent the carrying of
this demand?
The Republican platform does not
go iato detail. but It is fair to as
sumo that the postal savings bank
plank is intended as an endorse
mont OF the postal savings bank
system proposed by the president
and postmaster general. Under this
plan the federal government would
invite the deposit of savings, a limit
being placed upon the aln>. INIT that
e2ch person or each family could
deposit According to this plan,
the bucinass man would not be pro-
tected. for he uses a checking ac-
count instead of savings account;
but no one can doubt that the sue
ceasful operation of a government
savings bank would ultimately lead
TO an extension of the plan until
the government bank would include
the ordinary checking account. and
be open to depositors without limit.
III would mean a long contest be-
tween the bankers and the deposit
ors. but contest which must I'm
the end be decided on the side OF
the depositors. The banker must
decide. therefore, whether he will
favor postal savings bank which,
in the absence of the guaranty bank
viii grow until It absorbs the bank
ing business, or preserve the pres.
'nt system ofbanking by giving To
the people, through a guaranty law.
the protection which they must
otherwise find in government
bank
The Democratic plan, therefore
contemplatas a less radical change
than the Republican plan. In his
speech OF notification Mr.. Taft
charged the Democrats with being
socialistic in some of their rene
dies. The charge was not wei.
founded. but I might reply by charg
ing him with advocating an unnec-
essary extension of the government
sphere OF activity in the establish
ment of the postal savings bank
when the guaranteed bank would
answer the same purpose without
any considerable increage in the,
number OF government employees. /
would rather see the banks attend
to the banking business than TO
have it transferred to the govern
mont, I urge the guaranty of de-
posts as the easiest solution OF our
difficulties.
There are only 10000 banks
while there are $1,000, 900 deposit
ors. and ! do not hesitate to declar
that in a conflict between the two
the depositors have a prior claim
to considerations. If .ge estimate
the average number Of stockholders,
OF each bank at seventy-fve-an
that IS liberal estimate--the total
number OF stockholders would only
be a million and half, or one
tenth as many depositors The
stakeholder is not compelled to buy
stock. while the depositor is com
PEELED TO use the banks, both for his
own sake and for the sake Of the
banks can he keep his money a part
of the circulating medium. The
guaranty law therefore. brings the
greatest number, as well as to those
who have tho greater equity upon
their side.
There IS another reason why the
claim Of the depositcr has voice
in the selection Of the bank officials
the deposition has not. n any one
must lose, therefore, as the result
or bad management, dt ought to be
the stakeholder rather than the de-
position. And I venture to ask. II
the bankers viii not trust each 9th
er Why should they expect the de-
positors to trust the banksY
We are fortunate, however. in
that we are not com pei led 90 choose
between justice to the depositor and