The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1908-08-28
BY AssocIated Press.

Topeka, Kans., Aug. 27.-William
Jennings Bryan delivered the following
address on the bank guaranty ques-
tion here today:
Mr.. Chairman, Ladies and Gentlemen:
Why not make the deposition secure2
The United States government re-
auires the deposit of specific security
when 1t entrusts money<to national
bank, although it can examine the
bank at any time; the state requires
security when 1t deposits money in a
bank, the county requires security
from the officials VINO handle money
Why should the depositor be left TO
take his chances?
Not only is the deposition without
protection, but the security given TO
nation, state, county and city lessons
his security. They are preferred
creditors; they have a mortgage on
the gilt edged assets and the deposition
must get along as best he can with
what remains. Why are the interests
of depositors thus neglected?
A bank asks deposits on the theory
that the deposition is sure of the re-
turn of his money. and the laws ought
to make the facts conform to the
theory. The deposition, the commun-
ity and the banker himself Will be
benefited by legislation which will
give to every deposition the assurance
that that which is committed to the
! keeping of the bank viii be available
. to meet his needs at any time. Sucn
is not the case today, for while ali
banks are reasonably secure, they are
not absolutely so. This statement can
be verified in several ways.
Present Banking Situation.
First: The president has advocat-
ed a postal savings bank, and his
postmaster general, in presenting an
argument in its favor, pointed out that
many millions are sent to European
savings banks every year by Ameri-
cans of foreign birth who prefer to
trust the state institutions of the ma
tons beyond the sea, rather than the
private banking Institutions here.
Second: II is known that a eonsid-
cradle amount of money is in hiding,
the amount increasing with the ap-
Fproach of a panic or business depres-
ision. This money is not only with
drawn from active use, but is likely to
gbe withdrawn just at the time when
money is most needed and when the
withdrawal will increase the financial
disturbance 1t is impossible to rea--
son with fear; it is futile TO tell men
that they will probably get their
money. The moment the depositors
suspect a bank, they hasten to destroy
dts solvency. Distrust, and distrust
alone, can explain the hiding of money.
Third: The increase in the issue OF
money orders, payable to the order OF
the purchaser, is another evidence
that people are seeking greater secur-
ity for their money. The banks will
pay an interest upon deposits, and yet
those who buy money orders prefer
TO lose the interest, and, in addition to
that, pay the price of the money or
der IN order to secure tie govern
ments guaranty
Fourth: National banks confess
that their banks are not secure when
they oppose the guaranty of state
banks on the ground that it world
lessen the deposits in national banks:
and state bankers confess that their
banks are not secure when thew on.
pose national guaranty system on
the ground that it will draw deposits
away from state banks IL you want
TO find whether banks are absolutely
secure, ask the directors to give Won
their personal note to secure your de-
post and you will learn that thew will
not bear the risk which they ask Won
10 bear
Oklahonaa's Experience,
Fifth: The experience of Oklahoma
furnishes conclusive proof that de-
positors do not feel that their money
Is safe in unsecured banks. On the
nth of December, 1907, the Oklahoma
legislature enacted a depositors' g1rar.
anty law, which became operative Feb
ruary 4th, 1908. By the provisions of
tnls law, all state banks and as many
national banks as desire to avail them
selves OF the law, are taxed one Der
cent on their deposits, and the money
thus collected is put into a guaranty
1und. Tie banking board is author
lzed to make additional assessments
from time to time to keep the fund un
10 this amount, and is directed to take
possession of any insolvent bank nav
the depositoTS in full, and reimburse
the fund by collecting the assets OF
tue tailed bank. Five hundred and
hrty-hve banks, including fifty-tour
national banks, had come under the
provisions of this law on the I4tb or
last May, leaving but 255 unsecured
banks tall nationally in the state. State
ments are made by the banks in De
cemoer and May. Between these ne
Floos the secured banks gained in de-
posts S4,2S1, 1882, while the unse-
cured banks, all national. showed a de- i
crease in deposits of S1.I0I, SO7. Sc. \
large part of this increase representen
money brought from hiding or from
without the state, but the decrease in
the unsecured banks can only be cx- /
planned In one way. A large number
or dePositors withdrew their money /