Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-09-04
ssMsER OF ASSOCIATED PRESS
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THAT BANK DEPOSIT THEORY.

THAT BANK DEPOSIT THEORY.
One would think from the earnest
ness with which Candidate Bryan
champions the guaranteeing of bank
deposits that the gentleman from Ne
braska had discovered the theory
that seems SO popular with the peo-
pie just now. Mr.. Bryan is behind
the times. This proposed change in
regulation of banks is not De-
mocratic theory, although it appears
in the Denver platform and does
not appear in the Republican nation
al platform. ~
Congressman Fowler of New Jer-
sey, chairman of the committee on
banking and who has introduced
what is admitted to be the best bank
ing bill in congress, is an advocate
of this regulation and it is incorpo-
rated in his bill. Both Congress
men Gronna and Marshall are COM
mitted to the proposition, and it will
be remembered that Mr.. Gronna
made an able speech in congress in
favor of the policy last year.
Mr.. Bryan is fallacious in his ar
guments. He says that the govern
ment requires that its deposits be Sc
cured by the banks and there is no
reason why the funds of the depos-
itors should not also be secured.
Mr.. Bryan makes use here of or
of his loosely constructed analogies
that is not an analogy at all. There
is no law requiring bank to re-
ceive government money and secure
it. The government makes the re-
quirement that government funds be
secured, if the bank is to receive
them. Any depositor can refuse to
place his money in bank unless he
receive a bond from the bank guar
anteeing its safety. There no law
forbidding the depositor from enter
ing into any such contract as he can
get bank to enter into But in
the case of insurance of deposits, it
is proposed to pass law which
banks must pay to common fund
Tor the insurance of all deposits
their own and those of every other
bank in existence, for the fund is
to be called upon to make good the
losses of any bank that may happen
to fail. In one case, the bank in
sures its own deposits. In the other
case it helps insure the deposits of
every other bank, of which it may
know nothing and whose methods
might not at all meet with the ap-
prevail of soundb ankers.
The policy or ACCESSIBILITY of in
cooperating the plank in the Repub-
1lcan state platform is questioned by
some, however, and thought I'M
wise because of it's conflict with the
expressed views of Mr.. Taft on the
subject. E*E
The North Dakota plank is not
radical however. It simply favors
some sort of legislation either
through the postal savings bank or
guarantee of bank deposits
as shall thoroughly safeguard all de-
positors, and further that any system
of postal savings banks, If such a
measure is brought forward in con-
gress, shall be so administered as 10
retain the money in the country
where deposited. Whether the depos-
it guarantee is a good or bad
thing, its popularity with the people
is unquestioned. 1t is not at ali
presumptuous on the part of the Re
publicans of one state or one section
y OF the country to favor planks in
their platform that those in other
states and other sections would not
endorse. ;.
The question of guaranteeing de
posts is an important and far-reach,
ing one and its diseu ssion may lead
to change of sentiment before ac
ton can be had by congress: 1t may
result In convincing those who are
now opposed to the provision that il
4 Is advisable and wise AMI on the
other hand discussion will regaal al
It's frailties and give to congress the
/ light it needs. Anyhow, the plank
Is in accord with the ideas Of pres
emit members of congress and those
of our congressmen-elect, through
whose advice 1t was placed in the
North Dakota platform and Il elected