The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1908-08-28

to every depositor the assurance tina
that which is committed to the keep
ing of the bank will be available tt
meet his needs at any time. Such i:
not the case today, for while all bank:
are reasonably secure, they are mo-
absolutely so. This statement can b.
verified in several ways.
First: The President has advocxt
postmaster general, in presenting ar
| argument in its favor, pointed ou,
| that many millions are sent to Euro
pean savings banks every year by
Americans of foreign birth who pre-
fer to trust the state institutions OF
the nations beyond the sea, rather
than the private banking institutions
here.
Second: 1t is known that a con sid
cradle amount OF money is in hiding,
the amount increasing with the ap-
proach of panic or business depres-
sion. This money is not only with
drawn just at the time when money
is most needed and when the with
drawal will increase the financial dis
turbance. 1t is impossible to reason
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 it's solv-
ency. 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
order in order to secure the govern
ment's guaranty
Fourth: National banks confess
that their banks are not secure when
they oppose the guaranty of state
banks on the ground that it would
lessen the deposits in national banks;
and state bankers confess that their
banks are not secure when they op-
pose national guaranty system on
the ground that it will draw-dePosits
away from state banks. II you want
to find whether banks are absolutely
coouro ocl>-t tna <5iro,f,rc Tn ~;ya .,r,,,
their personal note to secure your
deposit and you will learn that they
will not bear the. risk which they ask
you to bear.
Fifth: The experience of Oklaho-
ma furnishes conclusive proof that
depositors do not feel that their mon
ey is safe in unsecured banks. On
the 18th day of December, 1907, the
positors' guaranty law, which became
operative February 4th, 1908. By the
provisions of this law, all state banks.
and as many national banks as de-
sire to avail themselves of the law,
are taxed one per cent on their de-
posits, and the money thus collected
is put into a guaranty fund. The
banking board is authorized to make
additional assessments from time to
time to keep the fund up to this am
sion of any insolvent bank, pay the
depositors in full, and reimburse the
fund by collecting the assets of the
failed bank. Five hundred and fifty
five banks, including fiftyfour ma
tional banks, had come under the pro-
visions of this law on the 14th of last
May, leaving but 255 unsecured banks
(all nationaD in the state. Statements
are made by the banks in December
and May. Between these periods the
secured banks gained in deposits
s4.237, 1882, while the unsecured
banks, all national. showed a de-
crease in deposits of $1,101 ,807.8 SO. "A
large part Of this increase represent
from without the state, but the de-
crease in the unsecured banks can
only be explained in one way. A large
number Of depositors withdrew their
money from the unsecured banks, and
deposited il in the secured banks,
and this, too, in spite of the fact that
IN order to prevent Withdrawals, the
banks, in some instances,
offered a higher rate of interest than
the secured banks were permitted
to pay; and 1t must be remembered
also that the banks which suffered a
loss of deposits were all national
banks. And to make it certain that
the difference was caused by the guar