Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-09-07

promote speculation at the expense of
fellow bankers, and that ultimately
means at the expense of the deposit
tors"
The leading press Sof the country
does not seem favorably impressed.
The New York World, a Bryan SUPP
porter, insists that MIR. Bryan is "seri-
ously mistaken" on the question; 1t
would put "a premium on speculation
and dishonesty" by making the sound
banks suffer for the rascality OF the
wildcat institutions, In the opinion OF
the Philadelphia ledger, AN independ-
ent paper, and the Cleveland Leader
(rep.) agrees that it would force sound
and weT-conducted banks to pay for
the mistakes and crimes Of men unit
to control such institutions" The re-
publican Kansas City Journal the Bal
timore American, the Rochester Post
Express, the New York Commercial,
Evening Post (ind.), Tribune Tep),
Times (nd.), and many other papers
take the same stand. The Denver Re-
publican compares it to a law com
polling every farmer to go security for
every other farmer in the United
States, every prosperous farmer guar
anteeing that every shiftless farmer
would meet his notes at the bank. pay
his bills at the store, and make good
the losses in his speculatfons, ana
protest from every honest man TO
whom the law might apply" However,
that financial authority, the New York
Journal Of Commerce. is for guar
anteed bank deposits and the Spring
field Republican, one of the most In
fiuential independent newspapers OF
conservative Massachusetts, says:
The chief point to be made ON behalf
of a government guaranty OF deposits
is that it would bring all the banks
under given government control into
"a common interest on behalf of safe
banking and observance by all of the
governments restrictive laws. 1t Is
calle da government guaranty of de-
posits. 1t should rather be called a
joint bank insurance of deposits under
government supervision and enforce
ment. The government does not pro-
vide the Insurance fund; it Is provided
by the banks. and every bank IN the
system thereby becomes concerned in
the safe and conservative conduct OF
every other bank. Instead Of as now
standing off and bidding the govern
ment enforce its restrictions as best IT
may, they eslch become am interested
agent in assisting the public supper
vision on behalf of general ballking
security Accordingly when it is urged
that this plan would place a high pre-
MUM on wild-eat banking, the fact u
to be considered that on the contrary
it enlists every decent and conserva-
tive bank in the service OF assisting the
government in suppressing such bank
ing"
The Journal of Commerce insists
that: 81
'sUnder a properly regulated system
the tendency toward exploitation,
manipulation, etc, would be re-
strained. It is apt to be overlooked
that the guaranty would apply only to
deposits of banks after they have
failed, and the responsibility for SOL
vency would not, certainly need not, be
diminished, and there could be no re-
sort to the guaranty fund until the
asets, which stockholders as we'll as
depositors are interested in conserving,
had ben exhausted. With a nationally
devised system this notion that bank
ruptcy would be encouraged is mere
bugbear"