Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-08-28
BRYAN SPEAKS
ON GUARANTY OF
BANK DEPOSITS
ANSWERS OBJECTIONS MADE
BY TAFT
cRlTlcIsEs REPUBLICAN cANoI-
DATE FOR ATTITUDE
says He Favors Unnecessary Exten-
sion Of Government in AdVo-
eating Postal Savings
Institutions

NSN1N----~--
tional platform on two important Dues
tons.
sFirst, it favors the election Of sem
ators by direct vote OF the people, re-
form which the Republican national
convention rejected by q vote OF seven
to one and which Mr. Taft has never
advocated but once, and that only IN
half-hearted way. In his notihcation
speech he said that personally he was
inclined to favor such q law, but 1t
requires more than a mere inclination
toward the law to secure such REFORM.
Another plank indorsing the Demo-
cratic platform Is to be found in the
condemnation of the present rules OF
the house and in the demand for
modification of the rules. While Mr..
Sherman's name is not mentioned, re
is SO prominently connected with the
present rules of the. house that the
Republican platform on this subject
cannot be construed otherwise than as
a denunciation Of him.
Here we have the Republicans OF
Kansas heartily indorsing the nominal
ton of Taft and Sherman-even COM
mending the speech OF acceptance OF
Mr. Taft--while the convention pro-
ceeds to condemn Mr.. Tafts position
on the guarantee of banks and Mr..
Sherman's position on the subject OF
rules"
Guaranteed RdnNs
Mr.. Bryan in his speech said:
Why not make the depositor secure !?
The United States government requires
the deposit of specific security when 1t
entrusts money to a national bank, al
though It can examine the bank at any
time: the state requires security when
il deposits money in a bank; the county
requires security and the city requires
security; even the banks require Sc
faI NJ hqn6IQ
money. Why should the depositor be
left to take his chances?
Not only is the depositor without pro-
lection, but the security given to ma
ton, state, county and city lessons his
security. They are preferred creditors;
they have a mortgage on the gilt edged
assets and the depositor must get along
as best he can with what remains.
Why are the interests of depositors
thus neglected?
A bank asks deposits on the theory
that the depositor is sure of the return
of his money, and the laws ought to
make the facts conform to the theory.
srhe depositor, the community and the
banker himself will be benefited by
legislation which will give to every de-
positor the assurance that that which
is committed to the keeping of tins
bank will be available to meet his
needs at any time. Such is not this
reasonably secure, they are not abso-
lutely SO. This statement can be verb
fed in several ways.
1. The president has advocated a
postal savings bank, and his postmas-
ter general in presenting an argument
in its favor, pointed out that many mil
lions are sent to European savings
banks every year by Americans of for
eign birth who prefer to trust. the state
institutions of the nations beyond the
sea, rather than the private banking
institutions here.
2. tt is known that a considerable
amount of money is in hiding, the
amount increasing with the approach
of a panic or business depression. This
money is not only withdrawn from
active use, but is likely to be with
drawn Just at the time when money is
most needed and when the withdrawal
will increase the financial disturbance.
1t Is impossible to reason with fears II
is futile to tell men that they will prob
ably get their money. The moment the
depositors suspect a bank they hasten
to destroy its solvency. Distrust, and
distrust alone, can explain the hiding
Of money.
3. The increase in the issue Of money
orders payable to the order of the
purchaser, is another evidence thai
people are seeking greater security for
their money. The banks will pay an
interest upon deposits, and yet those
who buy money orders prefer to lose
the interest and, in addition to that. pay
the price of the money order in order
TO secure the governments guaranty.
Confess Insecurity
4. National banks confess that theil
banks are not secure when they OPP
pose the guaranty of state banks or
the ground that 1t would lessen the de-
posits in national banks; and state