New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-01

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he is
EVIL OF GUARANTEED BANK DEPOSITS
He proposes in his latest platform bank de-
post guarantee scheme, under which all the ma
tional banks of the country shall guarantee the
payment of the deposits Of all the other national
banks.
We have in this country a system of perfectly
safe and sound savings banks. in which over
$4,000 depositors have deposits amounting to
about S3.500.o00. 600. These depostors are, for
the most part wage earners, clerks, thrifty per-
sons Of small means not engaged in business
For the of such persons in parts Of the
country where savings banks are not accessible
the Republican party proposes TO establish pos
tai savings banks through which the govern
ment will take charge of their savings and keep
them securely. Mr.. Bryans scheme does not
touch this class of people or provide for the
safety OF this kind of deposit 1t relates to the
business bank, through which the business peo-
pie of the country transact their business.
A bank deposit is in effect a loan of money by
the depositor to the bank to be repaid at such
time and in such amounts as the depositor in
dictates by drawing checks against the bank.
We have a free banking system, under
which any group of men who can raise $4,000
can start bank and invite deposits; that IS
can ask people to lend them their money, to be
repaid in the way have described AS matters
stand now, ordinarily no man undertaking to
start bank will get any deposits. that is 70
say. will get business people 70 lend him their
money. unless he is known and has good repu-
tation in the community Business people will
not intrust their money to unknown or unfavor-
ably known adventurerS. AS a result our bank
ing is, a rule, honest and conservative. and
If however, Mr. Bryan's scheme were to be
adopted any set of scoundrels who could raise
$4,000 could start a bank and could borrow
money the credit of the entire banking CAPT
tai of the United States: for the deposltors
would know that it made difference to them
whether the men who asked for their deposits
were incompetent reckless spectators or dis
honest rogues because il their deposits were
lost in speculation or stolen, nevertheless the
other banks of the country would pay them
Furthermore, the business of banking is con-
Quoted under widely different conditions in DIFF
ferent parts of the country. Bank money can
be loaned at IL per cent in Oklahoma: In New
York Boston and Philadelphia per cent is a
good rate Some bankers are content to get
only per cent with the good security that can
always be had with a low rate Of interest, while
other bankers prefer to take the chance OF a
very high rate Of interest together with the
risks that always accompany high rates OF in
terest. Under Mr. Bryans scheme the con-
servative, cautious safe banker who is content
incurred by the 12 per cent banker, while the
latter would take the II per cent profit If all
went well.
Under Mr. Bryan's scheme the sound, con-
sentative bankers OF the country would have no
control whatever the risks which would
thus be imposed upon them. The burden Of
these risks would not be imposed the
stockholders of banks alone, but upon the great
body Of the depositors and borrowers from
banks-the men who engaged in conducting
the legitimate business of the country; Tor I'M
der the competition Of free banking system
the margin of banking profit is ordinarily very
narrow, and any burden imposed upon the banks
comes ultimately out OF the depositors in re-
duced interest paid to them for their deposits,
and out Of the business men who borrow money
from the banks in the increased rate charged
against them for loans
Such scheme as this is worse than would
be a law to compel every merchant to indorse
the notes Of every other merchant for when
notes are Endorsed the amounts are known and
the persons for whom they are Endorsed are
known. The scheme would require all the sound
banks of the country and all the legitimate
business transacted through them to indorse.
out Of sight and unseen. all the future obga-
inns h9T hA
number Of unknown persons
GOVERNOR HUGHES AND THE P. s. c.
Mr.. Bryan IN his Lincoln speech of October
IL attacked Governor Hughes for vetoing the
2-cent fare bill in the State Of New York, and
held up that veto reason why the Repub-
lican party should not be continued in power,
He knew, as the whole country knows, that
at the same time when Governor Hughes vetoed
that bill he procured the passage by the Iegis-
Iature of New York of a bill providing for
Public Service Commission, charged with the
duty of inquiring into the reasonableness Of
railroad rates; what rates would enable the rail-
road cornranies to pay their expenses, maintain
their roals and rolling stock and still make a
reasonable profit; and TO regulate rates in &C
cordance with the facts ascertained: and he
knew that the ground of the veto OF the 2
cent fare bill was that the bill was passed by
the Legislature Of New York without any in
CURRY whatever into such facts, but as a purely
arbitrary act of power fixing the rate without
any reference to the question whether 1t would
amount to con1scation Of railroad property
not Mr.. Bryan's disapproVal Of Governor
Hughess course, therefore, was approval Of
a practice under which the people who travel
upon the railroads of the United States shall
fix their own fares by legislative enactment in
accordance with what they wish pay with
out ascertaining caring whether the fare
paid will furnish a reasonable return TO the
railroad to enable it to pay its labor, buy its
materials and return any profit whatever to the
capital invested.
Mr.. Bryan proposes in his latest platform that
ell articles entering into competition with trust
controlled products shall be placed upon the free
list
Examine this for q moment The great evil of
trusts lies in their driving out of business their
smaller competitors, and, after these are driven
our, putting UP prices. The driving out OF bust
ness is practically always done by unfair and
oppressive means. Indeed, 1t can be done in no
other way, except in cases where the trust
trolls the whole raw material of manufacture,
for wherever the material of manufacture
car be obtained and competition has a fair
chance the moment prices are put up competi-
ton increases and the trust control decreases
The Republican plan of dealing with trusts Is
to go after all the big concerns which are driv-
ing out competition by unfair practices, to COM
pei them to stop and to punish them If they
do not stop. to give the smaller competi-
tors fair chance. The whole railroad rebate
system, for which many punishments have
been inflicted within the past few years. Is
illustration Of OF the unfair methods by
which big concerns have been driving smaller
concerns out Of business. The essential idea Of
this method of dealing with trusts is TO give
the little concern fair chance against the big
concern.
covered that some manufacturing concern has
got what he calls control of some article the
article shall be put the free list, taking off
all protection whatever. and running both the
trust and all its competitors at the same time;
for a general rule, American manufacture
cannot pay American wages and compete IN our
markets with European manufacture, paying
European wages, without some protection The
necessary effect Of such proceeding would be
to close the American manufactures, throw the
American workmen out Of employment and COM
pei our people to make ell their purchases Of