The Detroit times., 1908-09-24
(Reported by DR.. Hynd

tReported by DR.. Hyndd
man, Norvell, Mich)
Uncle Sam-The people do not RUE
I want to know why? Malefactors In
high places are keeping me busy these
days have been informed or a new
banking law, In the new state OF Okia-
anty against loss. SO am here on the
spot. TO investigate It's operaton. 80
rotary Taft. who aspires TO be presiac,ht
OF my nation. says OF this law:
fundam entail objection to the proposed
plan to guaranty deposits In natlonai
banks, Is that II puts premium upon
reckless banking. and Is an inducement
to reckless banking. ave-theretore
asked for an interview with promi-
nent and capable banker here, and am
waiting for him. tEnter banker)
Uncle SAM have been expec.,ns
you. Are you a banker In tH3s siAie
Uncle sam-Before authorizing you
to receive deposits, what did your state
demand OF you, which Is not required
In any other state? 49,
-Ranker-I had to -deposit with tne
state a trifiing percentage on the III, mp
proxirnate deposits In my bank. THIS
| had 70 do before could take one dol
I,ncie Sam-what do bankers get In
return for this small tax?
Banker-They are well paid by the
use OF largely increased deposits. They
get perfect safety from any runs on
their banks. And In great degree pan
" I-ncIe sam@ffow- that affects
panic7 M .,.
always put their money Syo wh ,se p rnsy
anteed bank is that place. II all goes
there promptly. None Is ever with
drawn through fear for its safety.
withdrawai OF one d @ean, p $50 ooo. 900.
Five dollars meirns s4oo.0oo,0oo. etc.
which stays right in circulation, in
stead of being hidden In ODD corners.
Uncle Sam-Oh. I see. You compel
the banker to pay small fee Tot
valuable privilege, which Is really
favor to him. and at the same time Sc
cure the depositor. How can this put
"a premium upon reckless banking
Banker--It does exactly the reverse.
The banker who has paid the state for
valuable CONCESSION wants 'ne oo WSrt ~
be more vigilant. It's duties and respon-
sibiIities to the people are Increased
The honest banker Is anxious to protect
give the state valuable Information OBJ
tanned from inside sources In ways they
know. The state also Is alert and
promptly closes the reckless S. oan nS,e..
banker gain by this law?
Banker-He loses: by being more
closely watched by the state and other
the depositors. and not he. are the
gamers.
Uncle Sam-That seems to be mathe-
matically correct. How do other bank
ers feel about this guaranty law?
Banker-Just ms i do. They, are All
after It, including even national banks
which are not under this law. Four OF
them have already taken charters
under this state and 16 more have made
application for the same. As further
showing, Notwithstanding Secretary
Taft's emphatic disapproval OF this law
the Republicans of Kansas have de-
cIared strongly In its favor. They can
not helm themselves, because deposits
go TO the safest place known. Okla
homa has II. and has shown the people
where and how TO find IL, and national
banks even now are anxious to get In
out OF the cold, as they formerly were
TO keep the people out OF II.
Uncle Sam-What do you think OF a
postal savings system instead OF this
guaranty system?
Bankcr-National banks have always
controlled such legislation. and surely
that deposltors would soon use the safe
EXPERIMENT. plan and their banks
would quickly be out OF the savings de-
posit business entirely. They may per-
nit II to be talked about now, before
election, simply to delude, well know
jation. Young Oklahoma has done the
trick Her people are reaping the
benefits now. They Will never submit
TO any shallow subterfuge to beat them
out Of 1t sound. safe banking. good
for the honest banker. suprcmely good
reckless banker. other states In self
preservation must follow suit. =
Uncle Sam--Have you had any bank
failures since this law has been In
force7
Banker--Yes: two.