Courier Democrat. (Langdon, N.D.) 1891-1920, 1908-09-24
PROTECT DEPOSITS
GUARANTEE PLANK ONE OF MR.
BRYAN'S WINNING CARDS.
Object Lesson In Oklahoma and
Convincing Men that their Savinqi
In Banks Should be Protected as
Well az Government Deposits.

The Democratic National Platform
favors guaranteed bank deposits; tho
Republican platform is silent on that
subject. Mr.. Bryan heartily cham.
p1ons the plan; Mr.. Taft is strongly
opposed to it.
Mr.. Taft and Guaranteed Deposits.
In his speech of acceptance Mr.. Taft
puts himself squarely on record as be
Ing opposed to guaranteed deposits.
He says: The Democratic platform
recommends a tax upon national
banks and upon such state banks as
may come in, in the nature of en-.
forced insurance to raise a guaranty
fund to pay the depositors of any
bank which fails. The proposal is
wholly ~impracticable unless it is to
be accompanied by a complete revo.
luton In our banking system, with a
supervision SO close as practically to
create a government bank. If tho
proposal were adopted exactly as the
Democratic platform suggests, it
"oo2A OAAA6 llC NdolC l1hl oyolClll
Of the country down in ruin"
Why seek to confuse the people on
a simple proposition? We are sup.
posed to have Government super
vision Of national banks now. Super
vision does not mean a government
bank; it simply mea that the ma.
tional bank inspectors will do just as
they are expected to do under exist
ing law-make their examination of
banks thorough and make prompt and
effective correction Of any irregulari-
ties discovered. So it will be difficult
to brighten the people by the claim
that guaranteed deposits mea tho
rough supervision of banks. That's
Just exactly what the people want.
It is absurd to say that guaranteed
deposits would bring the whole bank
ing system of the country down to
ruin"
What does guaranteed deposits"
mean? 1t means that the savings OF
the masses shall be secured so that
when men and women deposit their
hard-earned money in banking insti-
tutions, they need not worry for fear
it will be lost through the reckless
ness and dishonesty of bank officials.
The Federal Government demands of
these banks security for the money
1t deposits. AS a rule state govern.
ments and county governments and
municipal governments make similar
requirements. But now that it is pro-
have some such assurance for the
safe keeping of their wealth, we are
told by the Republican candidate for
the Presidency that the adoption of
such a plan would bring the whole
banking system OF the country down
to ruin"
OkIahoma's Object Lesson.
Oklahoma has the guaranteed de
post plan and the following Associaf
ed Press dispatch tells of its opera
ton in the first bank failure since tn"
law went into effect:
Guthrie, Okla, May 81, 1905
Within one hour from the time H. Fl
6mock, Oklahoma banking commits.
sioner, had taken charge of the In
ternational Bank of Colgate he had
authority to pay the depositors in full,
though the banks cash and available
funds in other banks fell s22. 900 short
Of the total amount of deposits. The
commissioner was enabled to do this
Il,rdor tho o,nrotiop of tho rnu, bori IL
Ing law, and this is the first time it
has been called into use Under the
operation of the guaranty banking
law of Oklahoma a tariff of l cent Is
levied upon the average annual de
posits of the banks. and this monev
is used in payment in full of all de-
positors of an insolvent state bank
after the funds have been exhausted "
Will the Banks Answer This?
In addition to the arguments al.
hnteed bank. the following is sub
mitted:
The United States Government re.
quires a deposit of specific securit"
when it deposits money in a national
bank; the state also requires secur
tty. and the county and city deposits
are secured either by bonds or by the
deposit Of specific securities
Now the question arises, if tn
United States Government, which eau
at any time inspect a bank and find
out Just what it is doing and how its
business is being conducted, requires
security for its deposits, why should