The Cairo bulletin., 1908-08-28
BRYAN TALKS ON
GUARANTEE PLAN
ANSWERS TAFT'S OBJECTIONS IN
SPEECH BEFORE THOUSANDS
AT TOPEKA.
PUT IN VERY BUSY DAY


Topeka. Aug. 27,-Before an audi.
ence which filed the Auditorium to
overhowing, Bryan tonight spoke on
the guaranty Of bank deposits Pre-
vously he had delivered three other
addresses two from the yerandl #
teh hotel and third at Garfield Park
whore he attended picnic by the
Knights Of E'ythas. bis latter theme
being Fraternity"
Prvan in view Of the action Ct the
Kansas Republican state convention
which indorses the guaranty of de.
posita proposition, made some re.
marks supplementary 10 his prepared
speech on that subject He took up
the advantages Of the guaranty sys-
tenn and then answered. the objections
made by Tai and others.
He asked why a depositor should
he left unsecured when the national
government demanded the security Of
any bank With which It deposited
money lie pointed out that the choice
was between the postal savings bank
ami the guaranty bank and accused
Tafl at fayoring unnecessary eXter
sion Of the government in advocating
the postal savings bank instead Of
the guaranty bank. Bryan declarelI
that he preferred the guaranty bank
proposition. which would allow bPnFs
to attend 10 their banking business
ana yet compel them to give their de
,aas.4,r, ,,aaawaore- ~aC,.rftxr
Bryan said that from inquiries hel
hal instituted -amoHg Kansas bankers
three fourths OF them favored thel
guaranty system while there was no
opposition among the depositors, HeI
did not approve the declaration of the
Kansas Republicans on the guaranty |
plan because they proposed that the
banks mutually and voluntarily !
guarantee deposits He wanted the |
banks to be compelled to guarantee
deposits. This he said could easily
be done by a Democratic president
and n Democratic congress.
BRYAN said in part
The chief cause Of bank failures is
the making of excessive loans TO d.
roctors or officials of the bank. This
is the fruitful cause of disaster and it
has been impossible to secure legis-
lallan protecting banks from their
own officials and directors. Why? |
Because ther has been no mutual re.
spouglbility When all banks become
liable for the deposits of each. the
stockholders will insist upon the en-
actment of a law making it a criminal
onense for a bank official to loan
moro than a prescribed amount to one
Individual At present We have law
prohibiting the loaning of more than
onetenth of the capital aud surplus
to one person or corporation, but the
law IS only directory. OF course, the
violates the law, but the law is not
enforced because the enforcement of
such a law would throw the punish
ment upon innocent stockholders and
uuor the community. since the sus
pension of bank inficts a great lcss
upoa stockholders and disturbs the
business Of the city or town in which
the bank is located
The law should make II a criminal
ofense to loan more than the Pre- h
ecr.hed amount to one person and We
would probably be able to secure the h
passage Of a law prohibiting market 7
pcculatiou by bank officials. In
The Oklahoma plan is better A
bank recently failed in Oklahoma: ,
within fortyeieht minutes after the
notice Of suspension. the officer II ,,
charge had authority 10 pay all de-
positcrs. and then the banking board
proceeded to collect the assets Of the
bank and to prosecute the officials
criu,irally. When the business was
closed up. the stockholders passed a ,
resolution thanking the state boari
for ts prompt action. the action of
the board being a protection to the
stockholders. as well as to the de-
1ositors and to the public generally 5
Compare this failure under the
guaranty system with a failure wher5 D
-hare s. no guaranty. In Oklahoma O
III hank commissioner telephoned a
H.. farmers 70 come iu and get their
money and the answer was. j am
busy TODAY with my crop, I will be in F
IN g dav OF two
in Cleveland. Ohio, a hank failed
lf,at the same time and the papers At
.rnonnced Twelve hundred infuriaf
I'd Italians stormei the closed doors of
D. busted banking house Of Costan
fcuea on Orange street today. The
loIice drove the crOEd hack" f
an objection is sometimes made 70 2
hr guaranty law that a new bank o.
rould start up across the street" and ef
,einr able to promise its depositors q
.Essolute security through the guaran- cl
y law. could draw the deposits away y
rom consefvatively managed banks II