The daily sentinel., 1908-08-28
IRy Associated Press.


Topeka, Kans., Aug. 2S.-Last ev-
ening, before a vast audience of ov-
er 5000 people. William j. Bryan,
the democratic nominee for presi-
dent, delivered his speech on the
bank guaranty question.
He was given the very closest at
tention, and time and again was in
terrupted by prolonged cheering
The speech showed that Mr.. Bry-
an had given the question most care
full consideration.
The first half of Mr.. Bryan speech
was as follows:
Mr.. Chairman, Ladies and Gentle
men:
why not make the depositor Sc
cure? The United States govern
ment requires the deposit of specific
security when it entrusts money to
national bank, although it can ex-
anime the bank at any time; the
state requires security when it de-
posits money in bank; the county
requires security and the city re-
quires security; even the banks re-
quire security from the officials who
handle the money. Why should the
depositor be left to take his chances? :?
Not only is the depositor without
protection. but the security given to
nation. state, county and city lessons
his security. They are preferred
creditors; they have mortgage on
the gilt edged assets and the deposit
tor must get along as best he can
with what remains. Why are the in
terests of depositors thus neglected?
"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. The depositOr, the COM
munity and the banker himself Will
be benefited by legislation which will
give to every depositor the assurance
that that which is committed to the
keeping of the bank Will be available
to meet his needs at any time. Such
is not the case today, for while all
banks are reasonably secure, they are
not absolutely so. This statement
can be verified in several ways.
First: The President has advo-
Gated a postal savings bank, and his
postmaster general, in presenting an
argument in its favor, pointed out
that many millions are sent to Eu-
ropean savings banks every year by
Americans of foreign birth who pre-
fer. to trust the state institutions oil
the nations beyond the sea, rather
than the private banking institutions
here.
Second 1t is known that con-
siderable amount of money is in
hiding, the amount increasing with
the approach of a panic or business
depression. This money is not only
withdrawn from active use. but is
likely to be withdrawn just at the
time when money is most needed
and when the withdrawal will in
crease the financial disturbance. II
is impossible to reason with fear;
Il f,,t fnI, hat W
probably get their money. The mo
ment the deposiuor suspect bank
they hasten to destroy its solvency
Distrust. and distrust alone, can ex-
plain the hiding of money.
Third: Inc increase in the issue
of money orders, payable to the or
der of the purchaser is another evi-
dence that people are seeking greater
security for their money. The banks
will pay an interest upon deposits
and yet those who buy money orders
prefer to lose the interest and, in
addition to that pay the price of the
money order in order to secure the
governments guaranty.
Fourth: National banks confess
that their banks are not secure when
they oppose the guaranty of state
banks on the ground that it would
lessen the deposits in national banks
and state bankers confess that theii
banks are not secure when they op-
pose national guaranty system or
the ground that it will draw deposits
away from state banks. If you want
to find whether banks are absolutely
secure, ask the directors to give you
their personal note to secure your
deposit and you will learn that they
will not bear the risk which they ask
you to bear.
Fifth: The experience of Okla
homa furnishes conclusive proof that
depositors do not feel that theiI
money is safe in unsecured banks
On the 18th of December, 1907, the
Oklahoma legislature enacted a de-
positors' guaranty law. which became
operative February 4, 1908. BY the
provisions of this law all state banks
and as many national banks as desire
to avail themselves of the law, are
taxed one per cent on their deposits
and the money thus collected is put
into a guaranty fund. The banking
board is authorized to make addi.
tional assessments from time to time
to keep the fund up to this amount
and is directed to take possession OF
any insolvent bank. pay the deposi-
tors in full, and reimburse the fund
by collecting the assets of the failed
bank. Five hundred and fifty-five
banks, including fifty-four national
banks. had come under the provis-
ions OF this law on the 14th of last
May, leaving but 255 unsecured
banks fall nationaD in the state
Statements are made by the banks in
December and May. Between these
periods the secured banks gained in
deposits s4.237. .765.22. while the un-
secured banks, all national, showed
a decrease in deposits of 81, OIL ,S07.-
Sc. A large part of this increase rep
resented money brought from hid