The Idaho scimitar. [volume] (Boise, Idaho) 1907-1908, 1908-09-05
THE IDAHO SCIMITAR.

the stockholders Will insist upon the enactment OF
law making it criminal ofense for bank official to
loan than the prescribed amount to ndivid-
ual. At present we have law prohibiting the loan
ing of more than one-tenth of the capital and
plus to one person or corporation but the law only
directory
The law should make it a criminal ofense to loan
more than the prescribed amount to person and
we would probably be able to the passage of
law prohibiting market speculation by bank officials
The Oklahoma plan is better. A bank recently
failed in Oklahoma; within 4s minutes after the
notice of suspension, the officer in charge had
thory to pay all depositors, and then the banking
board proceeded to collect the assets of the bank
and to prosecute the officials crimnally.
An objection is sometimes made to the guaranty
law that new bank would start up across the
street." and, being able to promise its depostors
absolute security through the guaranty law could
draw the deposits away from conservatvely managed
banks by offering higher rate of interest than
the latter could pay. This objection is urged if
it were an unanswerabe one But let see how
easily it be met. Since the law makes all the
banks liable for the obligations of each bank, the
law should prohibit any abuse of this security by any
bank, and in Oklahoma the banking board has al
ready fixed the rate of interest that be paid to the
depostors. According to the rules Of the banking
board, no bank IS permitted to pay more than three
per cent on short time deposits more than four
per cent on time deposits running for six months
more
1t is the further opinion OF Mr. Bryan, expressed
in his Topeka speech that the banks would gain
through the operation of the guarantee plan than
they would lose in the payment of the tax imposed
on them in support of the plan This is not all an
opinion There has been some experience in Okla
homa that proves the contention Just at present,
some of the banks are gaining at the expense of
others and when the law in force in Oklahoma is ap-
piled to all banks, state and national if it is,
bank would have the advantage another
that exists in Oklahoma But there would be a
positive advantage to all banks in the flow of
II. {
the banks 1t has been the crying complaint since
last October that currency has been taken from the
channels of trade by its timid owners and placed
where it ceases to perform the functions of cir
culating medium. If the timid owners were certain
that their money would not be lost such condition
would not exist All the money in the country
would be doing business-a but the funds held to
make good possible losses and they would be in
fnitesima compared to the great bulk of hidden
capital that disappears at the first alarm In con-
Guiding his Topeka address, Mr.. Bryan said:
The republican party proposes the establishment
of a postal savings bank system; the democratic
party prefers the guaranteed bank because it is
better for the deposor and better for the banker
it gives the deposition the security which he needs
and yet leaves the banking business in the hands OF
the banks But the democratic platform decare
for "a postal savings bank if the guaranteed bank
cannot be secured" and in November more than 80
per cent of the voters will by their ballots demand
either the guaranteed bank the postal savings
bank. Can the hnanciers prevent the carrying out
of the demand?
I submit that in this effort to make all banks
secure, the democratic party is the champion of the
farmer, the laboring man, the business man. the
professional man, and the champion of the banker as
we'll No class is outside of the benefits of this
law for it bestows its blessings upon all
Why has the republican party been so quick to re-
spond to the demands of Wall street and so slow to
Weld to the demands of the masses There are two
reasons First, the republican party has allowed
itself to become the servant of the favor-seekng
and second, too many republican lead
ut he ric