The Washington herald., 1908-08-24

tens-Letter from Little Girl.
Hot Springs. Va, Aug. Z.-Postmastsr
General George Won L. Meyer. Who Is one
Of Mr.. Tafts personal advisers, had this
to say to-day In regard 70 the Bryan prop
osition of a guarantee OF deposits in na-
tionaI banks
The Democratic candidate IS bringing
forward a short cut and a pIausibls
Panacea against panfcs-the guaraueefnx
Of deposits in national banks. At first
sight this would appear 70 be a sort OF
insurance. Insurance. however, IS a con-
tract whereby one party voluntarily paws
70 another a fixed sum for indemnity
against loss and not 70 exceed an agreed
amount The guaranteeing proposition
compels By law the banks TO pay IN
known sums for future losses 10 Al VI
known amount and subject 70 unknown
risks over which they have no control
Strong to Help the Weak.
ULeIEnE
party 10 compulsory guaranteeing OF de-
posits for all national banks. This guar
aTreeing Of deposits by all national banks
would mean nothing less than that the
conservative and honestly managed banks
would have 20 pay the debts OF banks
which have been badly and dishonesty
managed Under this system there would
be nothing 20 prevent a not over scrupJ-
loUs banking officer competing for de-
posts by going 70 parties and Offering
Per cent for their deposits. representing
that they assumed no risk. as depcsits
were guaranteed The hank in turn
would have % make Investments suvolv-
Ing great risk lin order 70 make any
money
IF successful this would tend 70 IN
crease speculation. one cf the uisfor-
tunes OF the present day. with the Wild
cat schemes and high finance that have
been 50 much n evidence IN the last
year.
Would Upset System.
The proposed system would rsSu-. in
-evoiUtionizinE the methods Of banking.
state banks and trust companies would
be forced 20 enter under the same ar
rauEeDen-s in order 90 have their de-
p7si-s guaranteed. which would be an in
Justice 20 the national banks. as the
stockholders ip national banks are sub
5ect 20 double liability for deposits. which
is rot true Of state hanks.
The deposits IN savings banks throughout
the country amount 70 about $4,000 0oa.
What greater injustice can be imagined
-n
wage earuers and individuals OF very
moderate means should be taxed 70 pay
for -he losses Of nisUsnsEed banks
No Stockholders in New England
In New England and IN New York
there ara no stockholders IN the savings
hanks. All the money earned IS paid 20
the dePositors- Therefore, It would re-
suit ii a direct tax upon the deposItors
and would reduce the returns coming TO
them.
As M Taft has said IN HIS speech OF
acceptance. the Republican party. prefers
the postal savings banks as a method
tried. safe. and known 10 be effective. and
as reaching many more people now with
out banking facilities than the new sys-
TEN proposed
In the postal savings banks the de-
posts are guaranteed by the government.
because the government has received the
deposits and made itself responsible The
deposits are led back iurO the channels
Of trade by being deposited IN the na-
tionu banks IN the districts where they
were brought 20 the poS--Of7ces- The
system Of guaranteeing deposits IN IA
tiouaI banks as proposed by the Demo
cratic party IS only one step further
toward socialism
4 GueSS On Won Meyer.
Mr.. Meyers statement is an evidence
that the Republican leaders believe that
the Bryan guaranteeing proposition IS to
be one Of the foremost issues Of the cam
palgn- The way the wind is blowing now
they expect that only one Issue. the tarin.
may surpass it in the interest OF the pub
JIG. Bryan's Des Moines speech on the
tariff makes reply by Mr.. Taft certain,
and II the Neb-askan continues to drive
ahead on that subject the chances are
so some Of My. Taft's advisers think. that
the campaign VIII resolve Itself into an
old time tariff fight
Up TO this time. however. reports that
have reached Hot Springs Indicate that
ne national bank guarantee issue appeals
as strongly to the people as any other.
It affects their pocketbooks. and they
are interested in It. especially IN the West
ard the Middle West. The Republican
leaders realize that they have got 70
show the voters. at least In that sec
ton Of the country. on this proposition.
and they are preparing to do &C.. Nj Taft
viii probably devote an entire speech 10
this, the latest ct the Bryan hobbies.
Democrats Also Thinking.
3Ir. Meyer discussed the issue with 8Tr.
Taft at their conferences here yesterday.
II IS apparent. or course. that the Re-
publicans VIII depend chiefly IN combat
ing this issue on the merits Of the postal
banking system But the Democratic
platform also declares for that system
as an alternative proposition.
8ir. Meyer added a word Of warning %
Republicans about Ovsrconhdence. He
said: There appears 10 be a prevailing
sentiment in the East thst the election
Of Mr. Taft IS a foregone conclusion.
This n Itself Is a great danger. for there
are thousands Of voters IN every State
who CO not get OUT at the polls unless