Los Angeles herald., 1908-08-28
BRYAN SPEAKS
ON GUARANTYOF
BANK DEPOSITS
ANSWERS OBJECTIONS MADE
BY TAFT
cRlTlcIsEs REPUBLICAN cANDl-
DATE FOR ATTITUDE
Says He Favors Unnecessary Exten-
sion of Government in Advo-
eating Postal Savings
Institutions
Iiy Associated Press.

Iy Associated Press
TOPEKA, Kas., Aug. 27.-Before an
audience which filled the auditorium
to overfiowing, William J. Bryan,
Democratic candidate for president,
tonight spoke on the subject of guar
anty of bank deposits. Previously he
had delivered three other addresses.
two from the veranda of the hotel,
and the third at Garfield park, where
he attended picnic by the Knights
of Pythias, his latter theme being
Fraternity"
The Democratic candidate and his
party arrived here at l o'clock and
were at once taken in hand by re-
ception committee composed of lead
ing Democrats of the city and state,
and conducted to the hotel in auto
mobiles.
A great crowd greeted Mr. Bryan
at the station and at the hotel.
AS announced by him before his de-
parture from Kansas City, Mr.. Bryan,
in view of the action of the Kansas
Republican state convention, which in
dorsed the guaranty OF deposits propo-
sition, made some remarks supplement
tary to his prepared speech on that
subject. He took up the advantages
of the guaranty system and then an
SWered the objections made to 1t by
Mr. Taft and others. He began by
asking why the depositors should be
left unsecured while the national gov
ernment demanded security of any
bank with which it deposited money.
He pointed out that the choice was
between the postal savings bank and
the guaranty bank and accused Mr.
Taft of faVoring an unnecessary ex-
tension of the sphere of government
in advocating the postal savings bank
instead of guaranty banks.
Mr. 6nPln rod that he
ferred the guaranty bank proposition,
which would allow the banks to at
tend to the bank business and yet
compel them to give the depositors
necessary security. In conclusion OF
the prepared speech Mr.. Bryan said:
Bankers Favor Guaranty
Il asked Mr. Briedenthal, banker of
Kansas City, to make inquiry among
the bankers of Kansas and ascertain
what proportion of them favored the
guaranty law. / learned that of the
bankers that had expressed themselves
on this subject about three-fourths fa-
vored a guaranty law and one-fourth
opposed it, This is an excellent Show
ing. Among the depositors there is no
opposition at all, and 1t Is evident that
the Kansas bankers recognize first that
something must be done. and second,
that the guaranteed bank is better than
the postal savings bank. l also in
quired of Governor Haskell in regard
to the number of national banks which
have surrendered their charters and be-
come state banks in order to have the
benefits of the guaranty system. have
a telegram from him saying. that four
national banks have already made the
change and are operating under the |
state bank laws, and that sixteen other |
national banks have applied for state
charters. This is conclusive proof that |
fhn OlgIQh hOma la lie success A ma |
tional charter is supposed to have some |
advantage over state charter, and the |
benefits of the guaranty law must be
admitted when twenty national banks |
will in a short time change national
systems to the state systems in order |
to give their depositors the advantage |
furnished by the guaranty system.
''Since the preparation of my speech |
on this subject the Republicans of Kan
sas have held a convention and adopt
ed state platform. The plank on the
guaranty of deposits is a recognition of |
the necessity for security, but the plank
is so worded as to be practically use
less so far as the protection of the peo
pie is concerned The Republicans pro-
pose to enable the state banks to mu-
tually and voluntarily guarantee de-
posits. But that is not enough. Sup
pose that the banks mutually agree not
to do it. Must the depositors be left
unsecured?
"The Kansas Republican platform
also requests the Republican candi-
dates for congress and the United
States senate to favor a law in aiding
national bank to participate in the
proposed mutual and voluntary sys-
tenn. But what chance is there of Sc
curing such a law when the Republican
national convention refused to pay any
attention to the subject and when the
Republican candidate opposed the
whole principle of the guaranty? Mr..
Tafts denunciation of the guaranty
system is SO sweeping that no disinter-
ested person can for a moment believe
that he will either encourage or permit |.
a law enabling national banks to par +
ticipate in state systems. What the
people need is system whereby both
state and national banks will be com
PEELED to guarantee deposits, and only
a Democratic victory will secure this
reform. With a Democratic president
and Democratic congress ii will he
easy to secure the adoption of svs-
tenn which will make both state and
banks secure.
Commends Kansas Platform
"And speaking of platforms am
glad to call attention to the fact that
the Republican platform adopted in
Kansas indorses the Democratic ma
Continued Page Two)