Cañon City record., 1908-10-29
REPUBLICAN
PLAN RATIONAL.
Neted Flnancial Expert Advises
A4ainst lnconsidered Action.
All Glasses Interested In 1stablish-
ing Sound Banking System.

Victor Morawetz, recognized rs an
expert upon financial and economic
questions, says the Bryan bank deposit
guarantee plan would encourage wild
cat" banking. These are excerpts from
q recent article written on the subject
by Mr.. Morawetz:
If 1t were true that the adoption OF
this plan would make all deposits In
national banks equally safe and there
by would inspire confidence In all ma
tiOnal bank deposits. as Mr.. Bryan
claims, the plan would prove direct
encouragement to wildcat" banking
and would prove disastrous In the long
run. 1t would enable spectators or
inexperienced persons to form bank
with small capital and to obtain large
deposits on the strength OF the guar
anty. by Offering higher rates of Inter
est to depositors than IA conservatively
managed bank could afford 10 pay: and
they could then use these deposits In pro-
noting speculative or unsound ventures.
They would only risk the loss Of the
small capital which they contrib
uted and their individual liability for
an equal amount. II their speculations
should succeed. they would reap large
profits. but if their speculations should
fail and the money obtained from de-
positors be wasted. the sound banks
would have to bear the loss.
Republican PIaa RationaI.
The Republican party proposes to
deal with this banking question In
rational, conservative manner. Having
regard to the difference between savings
deposits and those commercial deposit
liabilities which are merely bank cred
Its created ms n means OF carrying on
the business OF the country, the Rcpub-
lican party proposes tn establish a sys.
TEN of postal savings banks 50 that the
people everywhere throughout the
country can deposit their savings with
absolute safety. A proposal has also
been made. and, no doubt, will be con-
sldered by Congress, Of authorizing the
national banks to establish savings de-
partments to be managed. under the sti-
pervision Of the Comptroller OF the Cur
rcncy. according to the most approved
methods Of managing savings banks
Thc Republican party recognizes that
the United States should have the
soundest and safest system OF banking
and currency that can he devised. AMI
to that end Republican Congress has
sistins Of Senators and Representatives
Of both the political parties. That com.
mission is now considering the subject
In nil it's bearings. and after holding
public bearings will make Its recon-
mcndat tions to Congress at the earliest
opportunity.
All Glasses Equally TnseresseS.
All classes of the people and nll sec-
tions OF the country are equally inter.
csted In establishing our system Of
banking and currency upon the sound
est possible basis. The welfare OF the
entire country depends upon sound
and practical system OF banking and
currency. and the only patriotic course
IL to eliminate nll party feeling and
politics from the consideration OF this
great subject We know that the pres
cnt system In not perfect and should be
improved, but we know also that We
have prospered under this system aud
that there Is no such pressing need for
ci,nnge MS to warrant hasty or III.
considered action. This plan of guar.
anteeing bank deposits undoubtedly will
he considered with the utmost care by
the National Monetary Commission. and
II the plan can stand careful analysis
and scrutiny 1t will he adopted by Con-
grcss whether the government be con-
tr0lled by Republicans or Democrats
Rut it would he wrong-inexcusabi bly,
wrong-to treat this great and difficult
question OF finance as a question OF
party politics. to he dealt with by popu-
lar vote IN the heat Of n presidential
campaign. Surely the American people
will not make this far-reaching change
In their banking system md try this
dangerous experiment, upon the recon.
mendation Of the Democratic party and
Of a leader who. twelve years ago.
and ngain eight years ago. urged the
adoption OF the worst financial fallacy
of the ngc, and. II his counsels had pre-
vailed. would hnve plunged the whole
country into hINl Nfpr md shame.