Morgan County republican. (Versailles, Mo.) 1906-1914, 1908-10-15
GUARANTEE OF DEPOSITS
Bryan's Scheme Does Not Meet De.
mands.
Inherent Weakness Of the Demo-
cratic Plan Pointed Out.
(t'rom Gov. Hughes Youngstown
Speech

Sp'''H.
"The plan proposed by the Demo
catlc platform to provide for a guar.
antee OF bank deposits Is open to seri-
Gus objection. Mr.. Taft promptly
pointed out its weakness, and Mr..
Bryan, despite his skill. has been un-
able effectively to answer his criticisms.
The plan proposes to make the honest
and prudent banks meet losses for
which they are in no way responsible.
Mr.. Bryan replies that all banking re-
strlctions operate to curtail the free
dom of the prudent because Of the
dangcrs arising from the abuses of
others. But it Is Onc thing 10 put Il
| business under needed restrictions op.
| Grating impartially ana quite another
to compel banks to make good specific
LOSSES not attributable in any way to
their neglect or default.
"lf this plan is n good one for the
banks. why should it not be applied to
IIlSulhil't 'blIIHHi'S. ln'y are
chartered by the state and are subject
to Its close supervision. Life ins,lr-
ancc, for example, Is II OF the cs-
s"ntial safeguards of the home, and the
interests Of the policyhold"rs cannot b"
too surely protected. But what would
be- thought Of n proposition TO compel
til" well innnne"d and conservative liz"
insurance" company 10 max" good the
losses which would be Sustained by thuS"
insured In other companies that be.
com" insOlvcntt This would largely
deprive iii" former Of the just benefit
Of iS conservatism and well earn.
cd reputation and maxi" easy the efforts
Of the INSCRIPTIONS.
Til" business Of banking and insur.
nn"" must be transacted under strict
supervision; but those institutions
which operate fairly and prudrn,ly
within the law should not suffer either
from laXity Of governmental supcrvis.
ion with regard to others or from I'm
l'rIhrnrrs and frauds with which they
jlavc no concern.
"Ir. Bryan tries in vain to meet the
criticisms that tn" plan proposed
would encourage reckless and dislIon.
est men, who would seek deposits on
III" faith Of such an assurance. 1t
must not b" forgotten that they do not
conduct their enterprises with the ex.
p"'lntiOn OF failure, nor do they con.
template loss to the dcpOsitOrs; but
deposits nrc the Sinews Of banking en-.
guarantee" would facilitate them In OBJ.
tanning deposits the opportunity for the
play Of ilI"gitimatc purposes and tn"
temptation to indulge such purposes
would obviously be- increased. Mr..
Bryan asks "would II not b" worth
something to the stakeholder in peace
Of mind TO know that the maximum OF
his loss would be the value OF his stock
ana til" 100 per cent liability, and that
II" h"p"silor could los" anylhin2l" II
an added peace Of mind" on the part
Of managing officials. And this diminu
ton Of anxiety and Of til" sense Of
moral responsibility with regard to dc
IusilS could not fail TO hay" It's effect
upon ia" prudent conduct Of the bust.
ness ami plnc" n scrvcrcr strain upon
governmental supervision. The condl
liuns under such n plan would innvit
ably tend 10 increase banking losses,
however they might be made up. II
may be added that the guarantee fund
If 1t were established on n scale sufic-
icntly larg" to inslr" the required pro-
lection, would furnish difficulties both
with regard to It's Investment and Its
availability In emergencies.
'1hls proposed plan does not meet
the demand for an elastic currency
system through which the monetary
wants OF the country may DO supplied
10 supply such n system Is mn urgent
necessity, aud its provision would obvl.
nj" many OF the dangers which have
hitherto existed but to make banks
pay for losses they have not caused is
10 depart from proper principles and
to encourage improper practices"