Martinsburg statesman-democrat. [volume] (Martinsburg, W. Va.) 1906-1921, 1908-10-30
PROTECT DEPOSITS
GUARANTEE PLANK ONE OF MR..
HHYAN's WINNING CARDS.
The Object lesson In Oklahoma and
Convincing Men that their Savings
In Banks Should be Protected as
Wall as Government Deposits.

favors guaranteed bank deposits, tho
Republican platform Is silsut on tina,
subject. Mr.. Brysn heartily cham.
pions the plan; Mr.. Taft is strongly
opposed to Il.
MIR. Taft and Guaranteed Deposits,
In his speech OF acceptance Mr. Taft
puts himself sauareiy on record as be
ing opposed to guaranteed deposits
He says; The Democratic platform
recommends tax upon national
banks and upon such state banks as
may come In, In the nature OF en-
forced insurance TO raise a guaranty
fund TO pay the depositors OF any
bank which fails. The proposal is
wholly impracticabie unless Il Is to
be accompanied by complete revo.
luton m our banking system. with a
supervision so close as practically TO
create a government bank. II the
proposal were adopted exactly MS the
Democratic platform suggests. It
would bring the whole banking system
of the country down in ruin"
Why seek TO confuse the people on
simple propositionY We are sup
posed to have Government super
vision OF national banks now. Super
vision does not mean government
bank; It simply means that the ma
tional bank inspectors will do Just as
they are expected to do under exist.
ing law-make their examination OF
banks thorough and make prompt and
effective correction OF any Irregular.
ties discovered. SO II will be difIlcult
to brighten the people by the claim
that guaranteed deposits means tho.
rough supervision OF banks. That's
Just exactly what the people want.
II Is absurd to say that guaranteed
deposits would bring the whole bank
ing system Of the country down to
ruin"
What does guaranteed deposits"
meant 1t means that the savings OF
the masses shall be secured 50 thai
when men and women deposit their
hard money in banking insti
tutiens. they need not worry for fear
II win be host through the reckless.
ness and dishonesty OF hank oAicials.
The Federal Government demands OF
these banks security for the money
II deposits. As = rule state govern.
ments and county governments and
municipal governments make similar
requirements But now that II is pro
posed that depositors generally shall
have some such assurance for the
safe keeping Of their wealth. We are
told by the Republican candidate for
the Presidency mat the adoption OF
such plan would bring the whole
banking system Of the country down
to ruin"
okiahoma's object Lesson.
Oklahoma has the guaranteed de-
posit plan and the following Associat.
cd Press dispatch tells Of It's opera
ton In the frst bank failure since the
law went into effect:
Guthrie. Okla. May u. 1907
Within one hour from the time II. RI.
5mock, Oklahoma banking commits
sioner. had taken charge Of the In
Bank of Colgate he had |
authority to pay the depositors in full.
though the banks cash and available
funds In other banks fell $4,000 short |
Of the total amount of deposits. The |
was enabled to do this
under the operation Of the new bank
Ing law. and this is the first time It |
Hoon r.ft~1 int. t.an rfrInr
operation of the guaranty banking |
law Of Oklahoma a tariff OF cent is |
levied upon the average annual de- /
posits of the banks. and this money |
Is used In payment In full OF all de-
positors of an insolvent state bank, |
afte1 the funds have been exhausted"
VIII the Banks Answer This?
In addition to the arguments al |
ready presented In favor OF the guar. /
aateed bank. the following is sub
mitted:
The United States Government re-
1uires deposit of SPECIFIC security /
when II deposits money In a national |
bank: the state also requires secur-
ty. and the county and city deposits
IRE secured either by bonds or by the
deposit Of specific securities.
Now the question arises, II the
DATED States Government. which can
1t any time inspect bank and and |
,ut just what II is doing and how its
business is being conducted, requires
for its deposits. why should
not security be given to the depos
tor who cannot examine for himself