The Birmingham age-herald., 1908-07-29

insuring their withdrawal when the emergency has passed by a high rate Of taxation. It is drawn in conformity with the present system of bank note currency. but varies from it in certain respects by authorizing the use of com mercial paper and bonds of good credit. as well as United States bonds, as se- eurity for its redemption. It is express ly but a temporary measure and con tains a provision for the appointment of currency commission to devise and recommend a new and reformed system of currency. This inadequacy of our present currency system due to changed conditions and enormous expansion, is generally recognized. The republican platform we'll states that we must have a more elastic and adaptable system to meet the requirements of agrieultur- sts manufacturers merchants and bus mess men generally. must be automatic in operation, recognizing the fluctuations in interest rates" in which every dollar shall be as good as gold, and which shall prevent rather than aid financial strin- gency in bringing on a panic.
 Postal Savings Bank and Its Advant-
 ages.
 In addition to this the republican plat form recommends the adoption of a post l al savings bank system in which, of course, the government would become 1 responsible to the depositors for the pay
 ment of principal and interest. It is thought that the government guaranty will bring out of hoarding places much money which may be turned into wealth producing capital and that it will be great incentive for thrift in the many small places in the country having now no savings bank facilities which are reached by the postoffice department It will bring to everyone, however, re- mote from financial centers, a place of perfect safety for deposits, with interest return. The bill now pending in Con- gress, which of course the republican convention had in mind, provides for the investment of the money deposited in national banks in the very places in which it is gathered, or as near thereby as may be practicable. This Is an an- swer to the criticism contained in the democratic platform that under the sys- tenn the money gathered in the country will be deposited in Wall street banks The system of postal savings banks has been tried in so many countries success fully that it cannot be regarded longer as a new and untried experiment.
 Ol jections To Democratic Proposal To
 Enforce Issuance of Bank Deposits.
 The democratic platform recommends tax upon national banks and upon such state banks as may come in, in the nature of enforced insurance to raise a guaranty fund to pay the depositofs of any bank which fails. How state banks can be included in such a sch eme under the constitution is left in the twilight zone of states rights and fed eralism, so frequently dimming the meaning and purpose of the promises of the platform. If they come in under such a system they must necessarily be brought within the closest national control, and so they must really cease to be state banks and become national banks. The proposition is to tax the honest and prudent bankers to make up for the dishonesty and imprudence of oth hers. No one can foresee the burden which would be imposed upon the sound and conservative bankers of the country by this obligation to make good the losses caused by the reckless, speculative and dish onest men who would be enabled to secure deposits under such a system on the face of the proposed insurance. In it's present shape. the proposal would remove all safeguards against recklessness in banking and the chief, and in the end probably the only benefit would accrue to the speculator who would be delighted to enter the banking business when it was certain that he could en- joy any profit that would accrue while the risk would have to be assumed by his honest and hardworking fellow. in short, the proposal is impracticable ur- less it is to be accomplished by com plete revolution in our banking sys tenn with a supervision so close as practically to create government bank. If the proposal were adopted exactly as the democratic platform suggests, it would bring the whole banking system of the country down in ruin. The proposal is in itself ar excellent illustration of the fitness foi national control of a party which vii commit itself to a scheme of this kird without a sense of responsibility as to it's practical operation.
 Voluntary Plan for Guarantey.
 A plan for a guaranty of deposits by the voluntary act of the banks involved has been favorably reported to the House of Representatives This course is en-
 tirely different from the scheme in the democratic platform, emitting as it does, the features of compulsory participation and government guaranty.
 This proposition will unquestionably re- ceive the thoughtful consideration of the national monetary commission.
 Postal Savings Banks Much To Be Preferred.
 Democratic party announces it's a9- hesion to this plan. and only recom- mends the tried system of postal sav I ings bcnks as an alternative of the new experimental panacea is not avail able. The republican party prefers the l postal savings bank as one tried, safe | and known to be effective, and as reaching many more people now with out banking facilities than any other | system.
 Republican Policies As To Depend
 encies.
 The republican party has pursued consistently the policy originally adopr ] ed with respect to the dependencies 1 which came to us as the result of ti'- | Spanish war. Porto Rico.
 The material prosperity of Porto Rico | and the progress of it's inhabitants T. | ward better conditions in respect to | comfort of living and education should | alr m 1