Bismarck daily tribune., 1908-10-02

that money will ultimately be forth
coming. It can only be stayed by
the production of money itself. When
d. financial stringency is on, it is the
cash the man needs. and to say that
he will get IT next week certainly
does not assist him.
Mr.. Bryan says that the govern
ment has security. why should not
the individual siepositor have sec,ir-
jity? The government usually has q
large fund. The law REQUIRES that
it exact security for its deposits. 1T
is SO large a fund that the banks
can afford to give good security to
obtain it. 1t is to be observed how
ever that the security to the govern.
ment is the security Of the bank a
which gets the deposits and not the
security of every other bank in the
community Il !. as between the bank
Ell and his ddepositor, d the deplosit is
of sufficient benefit to make IL an
object Of the bank tosgipe security
that is one thing; but to reqnires
every other bank to give security to
that deposition is entfrel X a different
thing. unde derstand that in Okla-=
homa under this very law which. Isl
proposed to make national, bonds id !,
are exacted by the state and couny,
ty from the secured banks to pro-
stect the deposits.
!. 4. = = . s. = I. s. :. So. I. :. =
!. think l have shown that !.
$ the tendency Of the system pro- :
!: posed would be to destroy the =
= high character Of the present s
:. banking system This is not, :
$ however, to sbe, taken as an ar
!. gument that the security of de =
:. positss is not a good thing, and I:
:. is not to be brought about as :
s fully and perfectly. as possible. !:
= 1T is only ito show that the meth :.
:, cd here suggested is plausible =
$ one by sophistical method that !.
: will not accomplish the purpose =
!. but will ultimately increase the !.
!: losses from bank failures. =
:. = s. !. !. 4. 8. :, s. :. :. s. !.
"I,he case Of Oklahoma has been
cited as an instance to Justify the
Democratic platform. The system
has been in operation only since
March of this year. No panic or
other financial disturbance has test
| ed its efficiency. The statement is
made that the public has no such
confidence in the banks that the de-
posts in the unsecured banks are
running down and the deposits IN the
secured banks are running up.
Z: !. = * s. = Z. s. s. {. I: :. = 4. 8 =
IF my correspondent in Ok !:
!: lahonla can de credited, this In !:
, ]: crease Of deposits was due to j:
rs, the fact that S., ,O0O, 900 Of the !:
| !. state money received from the !:
: government for public school I:
/ :. lands was removed from the ma !:
/ 4. tional banks and put in the !:
4 = state banks operating under I:
1 = the guaranty which would ex- !:
= plain nearly all the increase in ]:
1 : deposits. I: !:
/ :. !: :. :. :. :. !. I: :: i. :. !. = . = = !.
sThe postal savings bank system
i has a guaranty by the government
4 under circumsta which Justify
!, it, because 1t receives and husband.
4 the deposits.
This guaranty Will, OF course, at
4 4 tract deposits, but the interest funt
is so low that the usual customer
q of the savings bank will not b,
], drawn away as experience in all 9th
!. eruntries shows.
d THE Democratic platform propose
IL the guaranty system cannot b
4 put In force, to then adopt the pos
tai savings hank, as il the guarant
! system supplied the means met b
the postal savings banks. This ]
entirely untrue. No enforced guar
Z anty system will supply what ,th
|, postal savings banks will supply.
! merely attempts to make secure til
q present deposits. It can, of courst
have no effect to extend the ban
Into the remote districts OF the coul
i try where savings banks are needle
! but are Improbable. and where th
3 many proposed money order office
turned into savings banks, will ii
! duce thrift, and the gathering {
/ the capital for the Improvement |
the country
: IN BOSTON .TECH" AT TEN.