The Lamar register., 1908-09-09
sRYAN's PET IDEA HIT.
lnsurins Deposits Would Increase
Speculation in Banks, ls Charge.


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washington sept. b. hepiyihe
Sharply 10 the contention oi MI Dry
an that the government shouid guar
ahtee pahk oeposils' put sno"ihs ho
indicatioh Oh poii'ical la'ori.es III MS
remarks Thomas +. Kane deputy co
ptroiier Oh ohe currehey' oouay sa'e
out al ihler'ie" lhtehoihs W sho"
lhat shouio the government sua'a"
Tee oahR ueposils 'here "ouiu De
more speculation Ill oahhs 'hai 'here
ID ho" anu 'ehuins " pio'e INV
system advocated ny MT bryan 10
not aoVisaois'
lhe question Id III ho SENSE
poii'icai one Ill 'he eoniihon app'i."
tioh OF that term anu cannot oe cor'
rectiy soiVeo Dy party poli.ics' IL Is
an economic prooiem winch appeais
strohsiy 10 cohsiueraoie mum Der oi
our peop'e do VIC" 40 u 'oni "e"
Showh students Oh iiiahce ana ls az
trae'ihe enough ao'enl'oh 10 cail ior
thooshtiui cohsiuefa''on anu iii'eiii'
gent oiscussioh ny eNpeiiehceu oaiA
efs ana sciehtliic ilhahciers'
Ihe prihcipai user Is oeileVeo
ny the writer 10 pe ethicaiiy anu iuii'
amentaiiy uhsouhd' put its Daheiui
tendencies shouid De demonstrated
Dy impartial ana ioeicai reasoning ue
foid OF seifish considerations ana not
by passionate pohtlcai strife'
ihis movement oid hot orieiha'e
win the pahk ueposi'or' IL is 'he
natural sequence OF Keen ana more
Or less seifish competition Tor pusi-
ness between the banks IN the newly
seitled ana rapidiy de'eiopihe sec
ions Oh our country anu mas peeh
se,zed upon Dy the pohticiah as po
ular tenet with which to secure Tor
their party cahdidates the votes Oh
the "nwary ana uhthihKihg. uhIess
lis iaiiacy is inteiigehtiy exposed IL
'iheiy 10 eAtehu u oener sec'iohs vi
the country.
Tne most persistent adVocates OF
tnis modern rihahciai neresy aInohs
the banking fraternity VIII De touho
Ill nose sections OF the country wher
hDeral or excessive rates OF interest,"
are olIered Dy Danks as AL ihduce
ment TO secure deposits ana high rat
es are charged Ior loans.
Ihe payment OF hperai OF e*ces-
sive rates OF interest as an lhuuce-
ment TO secure deposlts attracts iuho
10 DanK which wouid not other"ise
De received. The natural tendency
and speculative banking. BECAUSE
In order 10 iind proiitapie empioymen
Tor such deposits at hlgher rate oi
interest than that paid' the pahk Is
compelled TO seek investments LOT
such tuhds In loans or securities Oh
more or less speculative or hazaroou'
character.
such policy makes a depositors
guaranty law very essential to banl
OF this class as a means OF maintain
ing itself in community In competi-
ton with the conservatively managed
institution, which pays no interest on
deposits subject to withdrawal on de-
mand, but relies principally upon the
reputation which safe and conserva
tive management inspires to secure
its proportionate share OF the bank
ing business OF the locality.
"Depositors who have any regard
for the safety OF their funds should
consider well the relatively strength
and security of the institution which
offers as an inducement for deposits
a liberal or excessive rate OF interest
End the one which pays no interest
on active accounts or moderate rat
only on certain lines of deposits. But
the depositors' guaranty scheme offer
no premium for experience, prudence
ard conservatism. 1t holds the care
fuI and reputable banker responsible
cor his proportionate share of the de-
pcsits liabilities of his injudicious or |