Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1908-08-29

" VSth. hVIt IMAM lndt, the plan
which We propose protects the bank
er-and &c is his only protection
against the establishment of n gov
eminent bank, with indefinite en-
croachments upon the bankers bus
mess. With the guaranteed bank
established. government savings
banks would only be needed "a the
towns and villages wherc there are
no guaranteed banks.
If we had to choose between the
interests of the bank and the inter
ests of the community. we would
be compelled to protect the inter
ests OF the community first: but.
here. too. we are fortunate. for we
are driven to this alternative. That
which protects the community pro-
tects the bank also. for when there
are several banks in the communi-
~. the failure of one often causes
run on the others, and the insolv-
ency OF one bank is such n menace
to the solvency of others that the
solvent banks often join together
and assume the liabilities OF the in
solvent one for their own protoc-
ton. As an illustration OF this. I
point to the action of the Chicago
banks in assuming the Liabilities of
the Walsh banks. at a heavy loss to
themselves.
There is another advantage which
the guaranty OF depositors brings to
the banks-it protects the reserves
deposited in other banks. During
the panic last fall the reserves
caused the most of the trouble. The
small banks wanted to withdraw
their reserves from the city banks
and the big banks in the cities were
not prepared to meet the strain.
With deposits guaranteed Their.
would be no runs on local banks
and no sudden withdrawal OF re
serves.
| have selected the capital of the
state Of Kansas as the most appro-
pirate place for the delivery of a
speech upon this subject, because
your neighbor upon the south has
been a pioneer in this reform. Her
plan, as you know. has been such
signal success that deposits have
been drawn across the line from
your state into Oklahoma. The
alarm caused by this invasion of
your banking territory caused your
governor to include in his call for
special session recommendation
Of the passage of a law similar to
that Of oklahoma. When the legis.
lature met. however. the influence
of the large banks was sufficient to
prevent the needed leg station, and
your state still suffers. The peopIe
of Kansas have had an object les
son; they know the necessity for
law guaranteeing deposits. They
have seen it's benencent results In
sister state; they have fifty-four ma
tional banks taking advantage of
the state sytem and reaping a rich
reward. They have heard the echo
of the blow that has been struck at
the national banks Of Oklahoma by
the attorney generals ruling. which
denies TO such banks the right TO
share in the benefits Of the state
guaranty system-that ecno being
the surrender Of charters by nation
al banks which prefer TO become
state banks rather than surrender
the benefits Of the guaranty system.
They have also seen how the innu-
ence OF few big banks, concentra-
ted upon legislature can defeat
the wishes Of the smaller hanks and
the desire Of the depositors all over
the state
I submit that in this effort to
make all banks secure. the Demo
cratic party is the champion OF the
farmer, the laboring man. the bus
mess man, the professional man.
and the champion OF the banker as
well. so class outside Of the ben
Gifts of this law. for it bestows It's
blessings upon all.
Why has the Republican party
been SO quick to respond to the de-
mands of Wall street and so slow to
yield TO the demands Of the masses?
There are two reasons. first. the
Republican party has allowed itself
to become the servant Of favor
seeking corporations. and. second,
too many Republican leaders look
at questions from the aristocratic
standpoint the standpoint OF the
iew-rather than from the Demo
cratic standpoint. the standpoint or
many They legislate upon the the
Dry that society is suspended from
the top. and they fail, therefore to
understand either the evils that af-
hict the body polite. or the reme-
dies that are needed. The Demo
cratic party. viewing questions from
the standpoint Of the whole peo-