The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-24
LEADS TO SOCIALISM.
Postmaster General Meyer Discusses
Deposit Guarantee Plan.

Hot Springs, Aug. 2.-Postmaster
General Meyer, who is here comforting
with Judge Taft, has expressed himself
in an interview on the general pohti-
cal situation and on the DemocratlG
proposition of guaranteeing national
bank deposits, declaring the latter TO
be zone step farther toward socialism.
There are he said, thousands OF vo-
tiers in every state who do not get out
to the polls unless they feel there is a
real necessity for them to vote. There
fore, if interest is not sufnclentiy
aroused and the Importance of this
coming election fully appreciated, sew
eral states may be lost by default
I'm the present campaign. the Demo-
cratic candidate is bringing forward
shortcut and plausible panacea against
panics, the guaranteeing of deposits in
national banks At first sight this
would appear to be sort OF insurance.
Insurance, however, is contract
whereby one party voluntarily pays TO
another party a fixed sum for indemnl-
ty against loss and not to exceed an
agreed amount. The guaranteeing pro-
position compels by law the banks TO
pay unknown sums for future losses
and to an unknown amount and sub
ject to unknown risks over winch tney
have no control.
..The Democratic platform pledges
the party to compulsory guaranteeing
of deposits for all national banks, with
its provisions available for all state
financial institutions desiring to use
them.
Means wildcat Banks.
This guaranteeing of deposits by all
national banks would mean noAhlng
less than that the conservative ana
honestly managed banks would have
to pay the debts of banks which have
been badly and dishonesty manageo'
Under this system there will be moth
ing to prevent not over Scrupuious
banking officer in the competition OF
obtaining deposits from going to par
ties and offering them per cent LOT
their deposits. claiming that they had
no risk as deposits are guaranteed
The bank in turn would have to make
investments which would involve 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 of high finance
that have been so much in evidence
within the last year.
1.-The proposed system would result
in revolutionizing the methods OF
panies would be forced to enter under
the same arrangements in order to
have their deposits guaranteed. which
would be an injustice to the natlonai
banks as the stockholders in the ma
tional banks are subject to double ia
of state banks.
"The deposits in savings banks
the country amount TO
about three and half million dollars
What greater injustice can be mag
ined than that these deposits, which
are made by wage earners of very
moderate means, should be taxed in
order to pay for the losses of misman-
agement of banks.
I'm New England and in 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 direct tax on the de-
positors. and would decrease the re
turns which are coming to them.
The Republican Plan.
LAS Mr. Taft has said in his speech
of acceptance. the Republican party
prefers the postal savings banks, as
method tried. safe and known to be
effective and as reaching many more |
people now without banking facilities |
than the new system proposed
I'm the postal savings bank the de- |
posits are guaranteed by the govern |
ceived the deposits and made itself re-
sponsible. They are led back into the |
channel of trade by depositing them in |
the national banks in the districts 1
where they have been brought to the |
postoffice.
In national banks as proposed by the |
Democratic party is one step farther |
towards socialism,
Charles E. Magoon, provisional gov
ernor of Cuba, talked with Mr. Taft |
conditions in Cuba.
That the people of Cuba are qualified |
for. self government is the positive as |
sertion Of Governor Magoon.
He said the complicated election 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 owner
ship of public utilities. They now own
the telegraph lines and the test Of the