The Boise citizen. (Boise, Idaho) 1906-1910, 1908-09-08
GUARANTEE OF BANK DEPOSITS


yagay the seriousness and Importance of this issue shown by
the tact that IN Oklahoma where the banks under guar
n law and the national banks four national banks have
become state banks and more applied
ers In Kansas the Republicans have inserted plank their
platform ndorsng this idea upheld Mr. Bryan and denounced by
Mr. Taft and reported that Kansas City hreeourth of the
banks in favor OF the scheme These facts strongly dwe
upon by Mr. Bryan his speech Topeka He said in part
The United States Government requires the deposit of pe
chc security when naonal bank altho
examine the bank any time the requires security when it
deposits money bank the county requires security and the city
requires security the banks require security from the officials
who handle money Why should the depotor be left take Ills
chances?
"A bank deposits on the theory that the deposor
Of the of his money and the ought make the facts
conform to the theory The depoto the community and the bank
himself will be benefited by legislation which will give to livery
Idepotor the that that which committed the keeping
of the will available to any time
"There only banks while there 100000 de-
posors and do hesitate declare that conflict Seween
the the deposors have prior claim to consideration If
estimate the average number of stockholders of each bank Is
and that liberal estmatehe total number of stockholders
would only 100000 oneen many there depos
tors The stocolde compelled buy Stock while the de
poo compelled the banks both for his own sake and for
the sake the community only by using the banks he keep
his money part of the circulating medium The guaranty law
therefore brings the good to the greatest number as well
those who have the greater equity upon their side
"llr Taft stated his position this question follows:
The fundamental objection the proposed plan guarantee
deposits national banks is that 1t puts premium on reckless Dh
ing Relieved responsibility and the fear Of the deposto
the tendency induce exploitation manipulation and the
use of of banks in speculative would promote spec
aion the expense Of the depositors
When we come to character of those who ndorse
the guarantee idea however, find less weghy financial or
Gan than the New Journal of Commerce Fn ranged on this
side of the question the Springfield Republican (nd one OF
the tanchest organs New England conservatism recalls that the
Fowler Currency Bill contained provision winch
was endorsed by ecretary Gage Horace White and other like
The Republican, and it presents its merits thus
he chief point to made behalf of government guar
antv of deposits that would bring all the banks under given
government control into common interest on Dena o. Sa d
ING and observance by all of the Government restrictive laws
called government guaranty OF deposits 1t should rather be
called Joint of deposits under government suerS
ion and enforcement The Government does not provide the n
ance fund provided by the banks and every bank IN the W
tenn thereby becomes concerned IN the safe and @ @
duct Of every other bank Instead of standing OH and DID
ding the Government enforce its restrictions as best may tny
each become interested agent III assisting te PuphC
behalf of general banking security Accordingly when 1t IS urged
that this plan would place high premium on wiidca banking he
fact IS to be considered the contrary ens every ece
I conservative bank in the service Of assisting the Government III
~ Journal Of Commerce takes Mr. Taft task follows
I+ i greatly to be wished Mr. Taft candidate Tor
the presidency would direct the undoubted powers OF MS d 70 an
- ,d, Of financial questions that presented to him
I from his own Judgment instead of repeating stale
which on careful examination he would ind TO De WIFI
ont force The question Of the guaranty OF bank deposits mas p
- - the front TO an extent rather out OF poPoron 10 It's
importance is liable to become an important matter
co. consideration and is well to have clear ideas about II WI
% I previously expressed hasty conclusions on the se
Fart nad 70 direct request for his opinion he reported
! tlictat;ne, somewhat formal statement : -
1is Statement indicates superficial view OF the uole Il y
d system meant really rational plan The plan pro
II L Fowler Currency Bill for instance, would be feature
II the organization national banks in redemption districts Wn
ards of management representing the banks ana sys
s,nervisior and control which would dnnsl ana not
the chance Of insolvency One OF the purposes Moa ,
revent reckless banking, and the check upon the use - a.
70 yav would much effective than It mas
d TO be under present law in several conspicuous
Ii,e that Of the Walsh banks in Illinois ., 44 81
accumulation etc. would be restrained 1t apt to De
that the guaranty would apply only to deposits q G
~ .1y have failed and the responsibility Tor sovecy No 10
i,y need not diminished and there could pc no lg -
fund until the which stockholders as wen az oe