The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-08-24
MEYER AGAINST
BRYAN'S VIEWS
Inauguration of Democratic
Policies Would Be Fright
full, Says He.
HARD ON NATIONAL BANKS
SUDDENLY FEELS GREAT CON-
Germ FOR WAGEWoRKER.

Hot Springs, Va, Aug. 23.-Postmas-
Ter General Meyer. who is here confer
ring with Judge Taft, today expressed
himself III an interview on the general
political situation and on the Demo-
cratic proposition Of guaranteeing ma
tional bank deposits. declaring the lat
ter To be zone step farther toward So
cialism."
in the present campaign the Demo-
cratic candidate is bringing forward d
short cut and plausible panacea
against panics. the guaranteeing of de-
posts in national banks. At first sight
this would appear TO be a sort of in
surance- Insurance. however, is a con-
tract whereby one party voluntarily
pays another party a fixed sum for in
demnlty against loss and not to- ex-
coed an agreed amount. The guaran-
teeing proposition compels by the law
the banks &c pay unknown sums for
future losses and TO an unknown
amount and subject to an unknown
risk over which they have no control
From Meyers Viewpoint.
The guaranteeing OF deposits by all
national banks would mean nothing
less than that the conservative and
honestly managed banks would have
ITO pay the debts of banks which have
been badly and dishonesty managed.
Under this system there would be
nothing to prevent a not over scrupu-
lous banking officer in the competition
of obtaining deposits from going 10
parties and Offering them per cent
for their deposits. claiming that they
had no risks, as deposits are guaran-
teed. The bank in turn would have
20 make investments which would in
volve great risks in order to make any
money.
IF successful. this would tend to in
crease speculation. which is one of the
misfortunes of the present day with
the wildcat schemes and high finance
that have been so much in evidence
within the last year.
THE proposed system would result
in revoiutioniZing the methods of
banks. and state banks and trust COM
panies would be forced to enter under
the same arrangements in order to
have their deposits guaranteed, which
would be an injustice to the national
banks. as the stockholders in the ma
tional banks are subject to double liza
bility for deposits, which is not true
of state banks.
Solicitude for Wage Garner.
The deposits in savings banks
throughout the country amount to
about three and half millions. What
greater injustice can beimagined than
that these deposits, which are made by
wage earners and individuals of very
moderate means, should be taxed in
order TO pay for the losses of misman-
aged banks.
In New England and New York
there are no stockholders in the saw
inGs banks. All the money earned is
paid to the depositOrs. Therefore, It
would result in a direct tax on the de-
rositors and would decrease the re-
turns which are coming to them
LAS Mr.. Taft has said in his speech
of acceptance, the Republican party
prefers the postal savings banks as a
method tried. safe and known to be
safe. and as reaching many more peo-
pie now without banking facilities than
the new system proposed
I'm the postal savings banks the de-
posits are guaranteed by the govern
ment, because the government has re-
ceived the deposits and made itself re-
sponsible. They are led back into the
channels of trade by depositing them
I'm the national banks in the districts
where they have been brought TO the
postoffice. The system of guarantee
ing deposits in national banks as pro-
posed by the Democratic party is one
step 1arlner toward SOCIALISM,
Cuban People Qualified.
Charles f. MagOon, provisional gov
ernor of Cuba. talked with Mr.. Taft
regarding conditions in Cuba. That the
people of Cuba are qualified for self
government is the positive assertion of
Governor Magoon. He said the COM
plicated law which has just been put
into practical operation in the island
was a rigid but successful test of
Cuban intelligence. The Cuban people.
he indicated, are heartily in favor of
government ownership of public utili-
ties. They now own the telegra pm
lines and the test. of the popular will,
which has just beeh made on the queS-
ton of private concessions for tele-
phone lines. he believes, has demon
strated their desire for government
ownership.