Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-08-28
BRYAN ON BANK
GUARANTEE LAW
CONTINUED from Page IL

burden which under this system
would be imposed upon the sound
and conservative bankers OF the coun-
try by this obligation to make good
the losses caused by the reckless,
speculative and dishonest men who
would be enabled to secure deposits
under such a system on the faith
of the proposed Insurance: as in Its
present shape the proposal would re-
move all safeguards against reck-
lessness in banking, and the chief,
and In the end. probably the only,
benefit would accrue to the specu
lator, who would be delighted to en-
ter the banking business when II
was certain that he could enjoy any
profit that would accrue, while the
risk would have to be assumed by
his dishonest and hardworking fell
low.
He even pictures dire disaster
and declares that II the proposal
were adopted exactly as the demo-
cratic platform suggests, It would
bring the whole banking system OF
the country down In ruin
AS an afterthought he suggests
that voluntary system might be
tolerated, but az his objections to a
compulsory scystem apply just as
well to a voluntary system we may
fairly count him against all leglsla-
tlon which has for Its object the
guaranty of depositoTs.
Mr. Taft's argument is that pre-
scented by the big banks which put
their own selfish interests above the
welfare of the depositors and the
safety OF the community.
How Ranks WIN Safeguard II.
when all the banks become liable
for the deposits OF each. the stock
holders will insist upon the enact
ment OF law making 1t a criminal
offense for a bank official to loan
more than the prescribed amount to
one individual.
THE law should make 1t q crimi-
nal offense 10 loan more than the
prescribed amount to one person, and
we would probably be able TO Sc
cure the passage OF law prohibit
Ing market speculation by bank Off
eials.
1.-THE big bank would still have
several advantages over the small
one. In the FIRST place, It could make
larger loans than the small bank,
For instance. bank with $1,000
600 capital and surplus could, as
at present, loan 100000 to one
person, while a bank with 500. 900
capital and surplus could only loan
$4,000 to one person. This advan-
tage would IN itself draw to the
large bank deposits and the men do
ing business upon a large scale. for
deposits follow accommodation
II can not pass from this subject
without referring to the fact that
the big bank needs the guaranty al
we'll as the little one, for big banks
fail as well as small banks. and the
bigger the bank the greater this
calamity to the community when Il
falls. No bank IL 80 big as to b.
absolutely beyond danger. and 4
community needs protection against
the big banks failure even more
than against the failure of tn,
small banks.
The banks WILL as a rule. gair
more from the law than they will
lose by the tax imposed by the law
The experience of the Oklahoma
banks shows this, The interest col
leoted upon the increased deposit
win far more than pay the losse
oooasioned by insolvency, But tw,
banks have failed and the assets hav,
In both eases been sutiieient to re
imburse the fund,
Opposes the Postal Banks.
THE republican party propose
the establishment of postal saw
lngs bank system; the demoerati
party prefers the guaranteed BAN
because II is better for the deposito
aud better for the banker---lt give
the deposition the security which h
needs and yet leaves the bankin
business in the hands Of the banks
But the democratic platform declare
for "a postal savings bank n tn
guaranteed bank can not be secured
and In November more than 90 pc
cent OF the voters win by their bal
lots demand either the guarantee
bank or the postal savings banl
Can the flnanelers prevent the carry
Rnas mas 80 khtM aavnawNR