Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1908-09-25
BANK GUARANTY
PRESIDENT OF FIRST NATIONAL
OF POCAHONTAs ADVOCATES
THE IDEA.

The Washington Post addressed a
letter on the 18th instant to all
presidents OF national banks for an
expression of their views on the
Democratic plank relative to guar
antee OF national bank deposits.
Hon. William X. Graham, president
of the First National Bank, of Po-
cahontas, replied TO the Post as fol-
lows:
Il am in receipt OF yours OF the
18th, in which you request an ex-
preston OF my opinion concerning
the plank In the Democratic plat
form favoring guarantee fund for
the prompt payment OF depositors
of any insolvent bank.
Il would heartily favor this prop
ositlon. regardless of its political
origin, because II Is reasonable.
Just and proper. and l believe would
cause large IN crease in bank de-
posits by allaying the fears of loss
By timid business men and a large
number of all classes who do not
patronize banks at all.
I'VE are glad to note that the loss
to depositors in national banks has
been for many years comparatively
Notwithstanding only one TWEEN
ty-sixth of one per cent. per an
mum. However, II is not the actual
loss experienced by depositors, but
the fear of such loss that caus the
boarding of large sums OF money at
all times and the wholesale with
drawal of deposits when either a
real or imaginary cloud appears up
on the financial horizon.
Such a fund as proposed by the
Democratic platform should de-
crease. IL not entirely remove. the
possibility OF runs" on banks
which are usually the direct result
of unfounded fear of loss caused by
false, malicious and exaggerated
reports. The acknowledged success
OF the guarantee system in the State
OF Oklahoma, thoroughly sustains
this view. IL Is true that under the
national banking law, the depos-
ftors is now guaranteed TO a consid-
cradle extent, the individual stock
holders being liable for double the
amount OF stock held by him In
such bank. Also by reason OF the
reserve fund required by law. but
the extent of this guarantee de-
ponds entirely upon the amount of
capital and surplus as compared TO
the total amount of deposits.
The United States government,
the states, cities, towns and coun-
ties require security for deposits
made by them in any bank. All ma
eional, state. county and munich
pal officers who handle public funds
as well as bank cashiers, tellers and
others are required to give bond.
majority. IL not all the states re-
quire certain per cent. of the cap
ital stock OF insurance companies to
be deposited with the state treasur-
err to guarantee the prompt payment
of losses on policies held by it's citi-
zens, then why should banks object
to giving a reasonable guarantee or
insurance to it's depositors as out
lined in the Democratic platform.
"A guarantee fund could not en-
courage reckless banking, as it has
been claimed by some of the oppon-
ents of this plank, but should
strengthen all legitimate banking
business by a close adherence to the
fundamental principles OF sound,
conservative business with a com
mon interest in theprotection and
welfare of its patrons and the repu-
tation of its individual manage
ment
(Signed) "W. r. GRAHAM,
President First National Bank of
Pocahontas, Virginia"