The Robesonian., 1908-09-03

To Be Commended for his Stand
for the Guarantee of Bank
Deposits Objections Result of
Prejudice.
Charlotte Observer
Mr.. D. A. Tompkins was
asked yesterday what he thought
of the stand taken by Mr.. w. J.
Bryan on the question of guaran-
teed bank deposits and what he
thought of the general PROPOSE
ton itself. He said:
Mr.. Bryan's speech upon the
subject of guaranteed bank de-
pOsits appears to be as able an
effort as that gentleman ever
made at the same time one of
the best expositions of the sub
ject that has yet been offered by
anybody.
Less than twenty-five years
ago there were many people who
shuddered when some one they
knew we'll proposed to take out
life insurance. Many a wife
positively objected to her hus-
band taking out insurance for
the reason that it seemed to her
like setting his life against mon
ey. All this prejudice has now
disappeared and the feeling
about life insurance is whole
some and good. Insurance in
other lines has made progress
and is now generally regarded
, as very advantageous. This new
movement to insure deposits is
| as wholesome and rational as life
} insurance The objections made
T to it are as much based on pred
} udice as any ever made against
+ life insurance.
Let us suppose that a widow
! owns a house. There are none
! who would not consider it foolish
for her to neglect insurance upon
r the house against fire, and yet
> when she sells the house and de-
v posits the money in the bank, OBJ
j lection is made to her paying
t very much smaller charge than
n fire insurance premium to insure
s against loss by failure of the
: bank.
"The claim that insurance on
4 deposits would contribute to
: reckless banking is wholly err
roneous. All the stockholders
h stand with the full amount Of
Il their stock and 100 per cent. liza
n bility besides between the officers
!, of a bank, and any encroachment
Il upon the deposits. The stock
holders elect the officers and
d these, together with the govern
Al ment supervision, constitute pro-
v lection against reckless banking.
If The insurance of deposits will
d have nothing to do with it. The
e following is from Mr.. Bryan's
ID address:
l. d" In like manner it might be
s, said that if all people were care.
r. full about fire, fire insurance
I'd rates need not be as high as they
b. are, but the careful have to pay
r. higher rates than they shoulC
t. because some are not careful
1e Life insurance rates are higher
lv than would be necessary to cover
a the actual risk if everybody tool
I'd care Of his health, and here, too
the cautious are burdened be
yh cause some are careless of thei
health. All insurance is open t,
. the same objection, and yet in
la surance Of all forms is growing
RI and the insurance of depositor
We is growing in popularity NOR
en- | rapidly than any other form o.
,e- insurance and, I may add, i
ne yields the largest return on tn
n, investment.
he 1.-The insurance of a hous
n. against fire is solely for the pre-
of lection Of the owner. The res
a of the town or city in such a cas-
Lat is protected by a separate fire dc
ce, partment.
ri In the case of deposit insul
ed ance, it is not alone the depos
aid tor who is protected but the con
)m munity is protected against pal
to ic. Mr.. Bryan gives two yer
he apt illustrations of how protec
or ed deposits protect the whol
6t- community as follows:
he " Compare this failure unde
lde the guaranty system with a fal
n a ure where there is no guarant,
he In Oklahoma the bank commi
ar sioner telephoned the farr
nd ers to come in and get the
ant money, and the answer was,
q. am busy today with my crop;
of will be in in a day or two.
ht, In Cleveland, Ohio, a bar
e's failed about the same time, ar
the papers announced "Twel,
nes hundred infuriated Italia.
, in stormed the closed doors Of Il
ont busted banking house of Cost;
sbv Liopea on Orange street, toda
awl The police drove the croy
aid back. "
we'd The bankers OF the count
oOk who are opposed to guarantee
sbv deposits are surely standing
rom their own light. The guars
Lee tee of deposits protects the ba
,ver in two ways that are very i
lie a portant:
,der First. 1t protects a solve
bank from runs which cret
panic.
tten Second. It removes the fo.
of all arguments favoring the
- tablishment Of postal saw