Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1908-10-08
GUARANTEED N
By William Jennings Bryan, Topeka, Kansas, August
q, 1908.

0tNS " ~ ~ COLI
pulsory. system, but specifically and EN-
pnatlcaly opposes it. He says:
'The Democratic platform recommend,
a tax upon national banks and upor
sucn state banks as may come in, in tn,
nature OF enforced insurance to raise {
guaranty fund to pay the depositors o.
any bank which fails"
And then he questions the right of thu
government to enact such a law, saying
How state banks can be included II
such a scheme under the constitution
is LETT In the twilight zone of state right,
ana federalism so frequently dimmine
19e meaning and purpose of the promises
9nc me piaIiorm. II they come in under
Sucn a system, they must necessarily be
brought within the closest national cor.
troi, and so they must really cease to he
state banks n become national banks
MS soiicitude for the state bank will
naroly impress the country, for he is
quite Indifferent to states and their re-
served rights when he deals with other
subjects, When Congress is in the con-
troi or those who want to legislate for
tne whole people rather than for the
rev, 1t Will not be difficult to frame a
law under which state banks can avail
themselves of the advantages of a fed
erai law guaranteeing the deposits of
natlonal banks, just as it was easy in
TO frame a law which permit
tea natlonal banks to take advantage
OF the state guaranty system. 1t will also
be easy to enact a federal law which will
permit national banks to avail them
selves of state guaranty systems until
a national system can be secured. At
torney-General B~onaparte's ruling,
Whether Is correctly interprets the law
or not, would not bring such consterna-
ton as 1t does if the Republican candi-
date Favored a law allowing national
banks to take advantage of state systems
for the protection of depositors, but Mr.,
Iaft's hostility to all guaranty sys-
TENS is shown in the objection which
he offers: ~
The proposition is to tax the honest
dishonesty and imprudence of Others.
NO one can foresee the burden which,
under this system, would be imposed
upon the sound and conservative bank
ers OF the country by this obligation to
make good the losses caused by the
reckless, speculative and dishonest men.
VINO would be enabled to secure deposits
unuer such a system on the faith Of the
proposed insurance.; as in its present
shape, the proposal would remove all
ing, n the chief, and, in the end,
probably the only benefit would accrue
70 the Spectator, who would be de-
lighted to enter the banking business
when 1T was certain that he could enjoy
any profit that would accrue. while fhe
FISK would have to be assumed by his
honest and Woodworking fellow"
lie even pictures dire disaster and de-
ciares that IF the proposal were adopted
eXactly as the Democratic platform sug-
gests, IL would bring the whole banking
system of the country down In ruin"
AS an after thought, he suggests that
a voluntary system might be tolerated.
but as his objections to a compulsory
system apply just as well to a voluntary
system we may fairly count him against
all legislation which has for its Object
the guaranty of depositors.
As mr.. Taft's argument is that pre-
scented by the big banks which put their
own selnsh interests above the welfare
community. 1t is worth while to answer
the several propositions which he ad-
"
Let us take the first sentence, that
nthe honest and prudent banker would
pc taxed to make up for the dishonesty
and imprudence of Others" Is not this
true of all restrictions on banking?
Does not the honest and prudent banker. |
under existing laws, suffer in order that
NE depositor may be protected from the
olshonesty n imprudent? If we had
banking, laws at all, and banking
was done by private individuals. the
honest and prudent banker would save
the money that he now pays for enforced
examinations OF this bank, and he could
times make interest on a part of the
money which he is now required to keep
IN his vault as a rigid reserve. But he
some bankers are not prudent.
these laws place a burden upon the good
wen as upon the bad, it being difficult |
distinguish the prudent banker from |
imprudent one until a bank actually |
fails. S
In like amer it might be said that IL
an people We're careful about fire, fire
rates need not be as high as
tney are, but the careful rave to nav |
rates than they should, because |
are not careful. Life Insurance |
rates are higher than would be neces-
sary to cover the actual risk If every
pouy LOOK care OF his health, and here, |
are careless Of their health. All
Is open to the same objection. |
ana yet insurance of all forms Is grow. |
ing, and the insurance of depositors is
s"in ntha IN popularity more rapidly than
may add, it yields the largest return on |
the Investment. y"
Mr.. Taft complains that mo one can
roresee the burden which, under this
would be imposed upon the
sound and conservative bankers Of the
by this obligation to make good
me losses caused by the reckless, specu-
lative and dishonest men, :" etc. We have
me past to guide us. n we have rea-
son TO believe that the loss will be less
m the. future than In the past, because
when banks become mutually Responsible
FOR each others deposits they will be
SUFFICIENTLY interested in each other Ia
tayor better regulations n greater re-
strictions.
What has Mr.. Taft done to protect de-
posters from recklessness n s%pecula-
ION? While he refuses to protect depos-
tors, he praises the Aldrich- Vreeiand
.aw, which invites speculation and stock
lobbing. In declaring that the system
proposed by the Democrats would re-
move az safeguards against recklessness
N banking" Mr.. Taft betrays an ig-
nora 1orance OF the subject. for the plan
Toes not. propose the removal Of any
safeguards. In fact, 1t contemplates
regulations Of the banks and
has already made the banking
regulations s%tricter.
He declares that "the only benefit
would accrue to the speculator, who
would be delighted to enter the banking
business when it was certain that he
could enjoy any profit that would ac-
crue, while the risk would nave to be
assumed by his honest and hard-work-
ing fellow" The present banking law
that a certain amount of capital
shall be invested In the business, and
hat law would still stand. To enter the
banking business, therefore, a man
would either have to have the capital
himself or C the confidence Of men
who had the capital. And this capital,
with the 100 per cent liability
be "a guaranty that the stockhoid.
IT'S would not Intentionally select care
.ess OFFICIALS. Why would a 'specuiator,
be delighted to enter the banking bust
ness. under the guaranty system? He
Ion, nor Is he relieved from criminal
liability. He would nave nothing to gain
oy -carelessness, nor would the stock
FOLDERS have anything to gain by indif-
The CHIEF. cause Of bank failures is the