The Detroit times., 1908-08-28

of deposits as the easiest solution Of
our difficulties.
There are only 10000 banks, while
there are Is. 900. 900 depositors. and |
40 not hesitate 10 declare that In "a con-
flict between the two the dspositors
have a prior claim 20 considerations:
If we estimate the average number OF
stockholders OF each bank at T5--and
that is liberal estimate-the total
number OF stockholders would only be
a million and half, or one-tenth as
many as there are dcpositors. The
stockholder is not compelled TO buy
stock, while the depositor is compelled
TO use the banks.
There is another reason why the
claim OF the depositor is superior TO
the claim OF the stakeholder. The
stakeholder has "A voice IN the selection
Of the bank officials; the depositor has
not. II any one must mus lose, s theretors
ought to he the stockholder rather than
the deposition. And, | venture TO ask,
II the bankers Will not trust each other
why should they expect the deposltors
to trust the banks?
We are fortunate. however, In that
we are not compelled TO choose between
the stockholder for as has been shown
before, the plan which we propose not
only does justice to both, but brings al
vantage TO both. More than that. the
plan which we -PfePese-Pfeteeis-t
banker--and II Is his only protection
against the establishment of a govern
ment bank with Indefinite encroach-
ments upon the bankers business
Protects the Reserves.
There is another advantage which the
guaranty OF depositors brings to the
banks---it protects the reserves depos-
tied in other banks. During the panic
last fall the reserves caused the most
OF the trouble. The small banks want
ed 10 withdraw their reserves from the
city banks. and the big banks In the
cities were not prepared TO meet tne
strain. with deposits guaranteed thcre
would be no runs on local banks ana no
sudden withdrawal OF reserves.
TO add still another advantage the
guaranteed bank. by drawing money
the banks, would greatly lessen the
need OF an emergency currency.
7 submit that in this effort 10 make
all banks secure. the Democratic party
laboring man, the business man. the
profes sional man. and the champion OF
the banker as we'll No. class Is outsi
Of the benefits of this law, for IL be-
slows it's blessings upon all.
Kansas Banks Favor Plan.
Upon the conclusion OF his prepared
speech, Mr.. Bryan said:
IL asked Mr.. Breidenthan. a banker
OF Kansas City. TO make inquiry
among bankers Kansas and
ascertain what proportion OF them IA
vored the guaranty law. learned
that OF the banks that had expressed
themselves on this subject, about
three-fourths of them favored a guar
anry faw and-ene-feaFth.- opposed IL.
That is an excellent showing.
Among the depositors there Is no
opposition at all and IT Is evident
that the Kansas bankers recognize,
first that something must be done,
and, second. that the guaranteed bank
is better than the postal savings bank.
What the people need is a system
whereby both state banks and national
banks viii be compelled TO guarantee
depositors. and only Democratic VIC
tory can secure this reform. With
Democratic president and Demo
cratic congress 1t will be easy to Sc
cure the adoption Of system which
will make both state and national
banks secure"