The Havre herald. [volume] (Havre, Mont.) 1904-1908, 1908-09-16

Dy Wnlcn tle natlOnai DankS snail De
required to establish a guaranty fund
for the prompt payment OF the de-
positors of any insolvent national
bank, finder an equitable system
which shall be available to all state
banking institutions Wishing to use
it. .'-Guarantee Bank Deposit plank
in the democratic platform.
Mr.. Bryan spoke in part as fol-
lows
why not make the depositor Sc
cure? The United States govern
ment requires the deposit of specific
security when it entrusts money to
a national bank, although it can exam
inc the bank at any time, the state
requires security when it deposits
money in bank; the county requires
security and the city requires securi-
ty: even the banks require security
from the officials who handle the
money. Why should the depositor
De lett TO take his cuauCSS.
mot only is the depositor with
out protection, but the security CIV
en- to nation, state, county and city
lessons his security. They are pre-
ferred creditors; they have mort
gage on the gilt-edged assets and
the depositor must get along as best
he can with what remains. Why are
the interests of depositors thus neg
lected?"
"A bank asks deposits on the
theory that the depositor is sure OF
the return of his money, and the laws
ought to make the facts conform to
the theory"
mo amount Of criticism OF the
timid depositor can change the facts;
the people who deposit money want
| more security than the laws at
present give them. They will change
banks to get more security, and, II
necessary, they will send their mon
ey to another state
The increase in the issue OF mon
ey orders, payable to the order OF
the purchaser, is another evidence
that the people are seeking greater
security for their money
There is another reason why the
claim Of the depositor is superior TO
the claim of the stock holder. The
stockholder has voice in the Sc
lection Of the bank officials; the de-
positor has not. If anyone must
lose, therefore, as the result CT bad
management, it ought to be the
stockholder rather than the depos-
itor.'
But as a matter Of fact, the banks,
will, as !, rule, gain more from the
law than they will lose by the tax
imposed by the law The experience
of the Oklahoma banks shows this
Theinterest collected from the IN
creased deposits will far more thar
pay the losses occasioned by lnsolV
ency But two banks have failed ant
the assets have in both cases beer
sufficient to reimburse the fund"
"There are only 10000 banks, Will
there are Is 900 900 depositors and
do not hesitate to declare that in
. conflict between the two the deposI
tors have a prior claim to consider
alton"
The guaranty law, ther, fore
brings the greatest good to the great
est number. as we'll as to those VIII
have the greater equity upon thei
side"
The chief cause of bank failure
is the making of excessive loans t
directors or officials of the banl
This is the fruitful cause of disaste
and it has been impossible to se-ur
legislation protecting banks jrol
Why? Recause there has been II
mutual sponsib iity. When a
banks become liable for the dep-si
of each the stockholders Will insis
upon the enactment of law max n
it a criminal offense for bank OF
ficial TO loan more than the prescril
ed amount TO ore individual
Il submit that in this effort to max
all banks secure, the democratic part
is the champion Of the farmer, tn
laborin2 man, the business man, th
professional man, and champion G
the banker as we'll No class is out
side of the benefits Of this law, 10
it bestowes its blessings upon all.
And venture to ask, if the banke
will not trust each other, why shout