The Montgomery advertiser., 1908-02-29
Letter to The Editor
Gaarnnteelng Deposits.


 Editor The Advertiser:
 There is an interesting question that the American people are now consid- ering and one of almost universal im-
 It ia the question of National and State guarantee or insurance or the deposits In their respective banks, or banks chartered under National and
 A bill has been introduced in Con- gress to create Postal Savings Banks, and the new State of Oklahoma taxes her State banks l per cent on the av- craze amount of deposits to create an ins1rance or guarantee fund out of which all losses by depositors shall ul- tisnately be made good, after the -re- sources of the failed bank shall nave been exhausted. A provision n nss peeH sH avau themselves of the privileges Of the law, if they see proper.
 It is believed that when depositors are assured of the safety ot their de- posits. monetary panics will De no longer probable. and runs on banks be events of the pest.
 It would. no doubt. draw out from innumerabie hiding places vast sums which would De deposited in the banks as more secure place than where they now are. These dead funds when placed in banks would enter actively Into the channels of trade and com
 It would not be . burden on the va rious banking institutions for the State and National governments to re- Salnn 1I,rs nsm for Insuring G tSe S safety of their customers deposits. These govern- ments have already assumed more or less control and supervision Of the banking institutions, ana tnis wouio ws thority for the beneft of the general Many of the banks and bankers no doubt would willingly pay the premium rance fund.- In order to avoid the night mare of runs by depositors and the monetary panics that ensue. The prop able great increase of deposits ana larger use of reserves would more than compensate for the slight tax on each hanks average amount of depos. its necessary to create the guarantee fund.
 fore Congress is for the government to pay ? per cent interest on deposits made in the various postoffices desig- mated depositaries throughout the law. millions of dollars will flow into the governments strong box. some of which is now. and all should be, in the vaults of the various banks. It will and development of banking through
 The general government has no use for the money, and the payment ot the Interest and the care of the funds of the people is a pure gratuity. There seems to be too much paternaiism Tn government now, and the work of the depositories would greatly multiply the machinery of our already burdened
 There seems little doubt that the American people want absolute safety for their deposits in banks. and there IS a clamor for the postal savings banks as the most feasible way to ob- tain 1t.
 If the banks want to avoid the com petition of the National government In their business, 1t appears that it would Be to their interest to favor the speedy enactment of laws creating the depos- itors' guarantee fund. The present supervisIon by government, the respon- sibility of officers directors and stock holders would remain, but the guaran- tee fund would be held and dlsbursed by the government, State and National. There are some objections to the plan which do not seem very Weighty, put they can be overcome by wise and well Business Man.