Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-10-31
GUARANTEEING OF DEPOSITS
Nation Has No Right to Try Plan
without Thorough Test.
SHOW RISK IS LARGE
sheer Folly to Rush Into scheme
without Definite Idea ms TO
Results A Few
Figures.

been a qualified voter, but 1 am not Wha'
you might call a dyed in the wool re-
publican.
For example, repeatedly l voted for the
younger Carter Harrison for mayor Of Chi
cago. and before that I voted for Grover
Cleveland for president of the United
States, and would do so again II he were
living and a candidate for that great office.
In fact, I have always voted-as 1 believe
most men do-along the line of my own
selfish interests as 1 have seen them at
the time.
In the columns of the Chicago Tribune
last January warned the republican party
that in the present election the leading issue
would be the guaranty of deposits, and 1
might be forced to leave its ranks owing to
the fact l was strongly inclined to believe
in the guaranty of bank deposits as pro-
posed by Mr.. Bryan, and l know 1t to be a
fact that many of our brightest and smart
est business men felt much as 1 did about
this proposition.
had practically made up my mind that
| would vote for the party which openly
indorsed the bank deposit guaranty plan
After the presidential nominations were
made l was so much interested in the sub
ject that l read nearly every prominent
speech and articles regarding the guaranty
Of bank deposits as 1t appeared in print
and came to my notice.
Candidly l am stnl harboring the feeling
that we must somehow and some time
have some kind of a national law which
will protect the depositor against possible
loss, but yet 1 am going to vote for Mr.
Taft Just the same and for these reasons
First, because / believe that, as a nation
we have no right to make great and so
radical change in our whole banking
and financial system without first giving
the principle a careful and thorough test
A Tremendous Proposition.
The more you think about it the bigger
this proposition Of jumping right in at the
start and putting all the national banks of
the country upon new and radically al
tered basis looks to the business man. Do
you ask: How big is the proposition, any
way? Well, let me answer in the words
of ]. b. Forgan, president of the First Ma
tional bank of Chicago who says:
'The aggregate deposits of the national
banks are, in round figures, $500, 1900,
and the aggregate capital is, in round fig
ures, $500, 100000"
Representative E. j. Hill Of Connecticut,
who s evidently deep student of banking
and financial problems declares the figures
OF the last reports show ''the total of de-
posits in all the banks in the United States
were $lS,742,S74,1s1."
These figures are almost too big for the.
human mind to grasp. and when we come
to think OF enacting a law which would
affect all this vast volume of money and
our relation to It and Its relation to us, it
certainly seems to me to be up to us to
stop and think a while and go slow.
RiObt nOuy the paW at 10 of Okla Is
trying out the principle OF guaranteeing
bank deposits. and, from all that can
hear the plan is having a fair and un-
hampered test There is time enough to
try It out, and any man who will look
these figures In the face and then not be
willing to have the experiment station
down in Oklahoma give this the most care
full and thorough test before involving the
tremendous capital represented in these
figures is certainly rash business man.
When we look over these astounding
figures can we, as a nation, afford to run
any risk of inviting, by hasty and inju-
diclous enactment, one of the worst finan-
cial panics known in our national history
and do this in the face OF the fact that
at the present moment the principle of
guaranteeing bank deposits is having
fair and square test in the new state Of
Oklahoma with the eyes Of the whole ma
tion fixed upon It?
Haste Sheer Folly.
Why not wait for actual results? Haste,
I'm a matter of this magnitude, appeals TO
a practical business man as sheer folly.
We can afford to wait for the findings Of
the actual demonstration and We cannot
afford to do anything else or to commit
ourselves to anything else. Let's find out
| how 1t works first.
! I am a merchant-and l try to be live
| and a thorough merchant. AS a matter of
| fact. ] have only one store. But let us
suppose that in addition to this I have a
! branch store in every other state in the
union. That would give re forty-six stores
! in all.
! Again. suppose that Mr.. Bryan or some
other equally bright and intelligent man
/ should come to me and propose a new and
! radical change In my methods OF merchan-
disng and that he should so present his
! plan as to make me feel that It had every
reasonable promise OF being successful and
| proving a great money-maker.
Now, as a careful and practical merchant
! do you think I would Immediately turn
| around, on being convinced from his pre-
sentaton OF the theory that the plan was
a good one and order 1t put into opera
ton in all OF my forty stores? I should
saw not! Not on your life
( Why. the first thing I would do would be
to say to Mr.. Bryan: 81 will try this out
in one or two OF my branch stores where
know that It will have every chance for
success II Il has success in Il. and where,
il by any possibility we should be mis-
taken. II will do comparatively little dam
age II il doesn't prove out" To my mind,
| II ! would consent TO start out with any
change more sweeping than this I would
be a mighty poor business man and would
show more OF the gambling than OF the bust
| ness instince. The place where people take
chances like that is where the ponies run.
And 7 don't take those chances.
To Mr. Bryan / would say this: First I
am going to give this a test IN a small
way, and II II works out as we think It will,
then shall put It ~ operation I'm all my
forty-six stores-and be forever Indebted
10 you for great and beneficial idea.
Proof IL Required.
Let me draw another illustration from
my own business. When a new manu-
facturer starts up and comes TO me and
offers me clothing. for instance. standard
goods. known brands OF cloths. at a much