Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-02-02
MEMBER OF ASSOCIATED PRESS
INSURANCE OF BANK DEPOSITS
4z!$sszza

INSURANCE OF BANK DEPOSITS
Congressman Gronna of this state
is an enthusiastic advocate of the in.
surance of national bank deposits, by
the taxation of deposits for the crea.
ton of a fund from which the de
positors of suspended or insolvent
bank shall be reimbursed. In the
house, few days ago, Mr.. Gronna
made an extended address upon this
subject and in a running debate with
other members of congress lasting
for considerable time the North Da.
kota congressman sustained his posi-,
ton and earned the generous applause
of the house. Mr. Gronna believes
that if depositors were assured that
their deposits would be absolutely
safe, no matter what the contingency.
there would be no bank runs and nc
financial stringencies. In closing his
remarks before the house Mr.. Gronna
said:
In my state alone, the money strin-
gency last fall cost the farmers at
least $5,000,0O0. Just about the time
that the farmers had gathered their
crops and were ready to dispose OF
them, and the world stood ready to
buy them at profitable prices, they
found that they could not sell for lack
of currency. When the buying OF
grain was resumed, there were those
who took advantage of the position
in which the farmer had been placed
and the products of the farmer were
secured at prices 10 to 20 cents pei
bushe1 less than what they were &C
tually worth
Now, want to say to the members
of this house that this is a question
that can not and should not be made
a party question. It is a question
that is of greater Importance than any
other question that you can bring be
fore this house The people in the
cities and the people in the country
are watching our actions, and it is
for us to say whether we will follow
the old system of banking or whether
we shall say to the people that we
stand ready to cooperate with them;
that we tasnd ready to say that W,
think it possible for them to have con
fidence in our institutions; that we
will make it possible for them to de
post their funds in our banks and
not lose single dollar Now, viii,
We do it? / want to asy to you, as
one | shall vote for a measure of this
kind. 1t does not make any differ
ence from which side of the house
that measure comes. Applause.
With a law taxing banks and guar
anteeing depoits, the depositors will
feel confident of being paid and will
make no unjust demands for thei1
funds. The bank officials will in al
cases be the ones to worry, not only
over their own affairs, but over thos5
of their fellow-bankers. This is as il
should be. 1t will tend to create q
closer relationship among bank off
eials, as each will, to certain ex
tent, be responsible for the welfare
of the other. Nothing can be more
important in the commercial world
than a free and friendly intercourse
among business men. The old saying
In union there is strength holds
good in this case as we'll as in al
other cases where it can be applied
and know of no other business where
it can be so effectively applied ant
result in so marked degree in ad
vancing not only the interests of thu
banks, but also ultimately the inter
ests of the people.
1t might be well for the men wht
are placed at the head of our large
banking institutions to take time tt
study the causes at certain periods
affect their business and cause then
uneasiness. worry and often serious
losses. If this is done in spirit Of
fairness, without prejudice and greed
~-if this great question is viewed from
the broad standpoint of a good citizen
80 q
with no special interest or advantage
TO any one elias in mind, but in q
.atatesmanlike and patriotic manner
we shall have no difficulty in agree.
ing upon some plan or system salts
factory to all. We have sound mon
'ey, now let us adopt system, or i'm
prove our present system, 50 thai