Omaha daily bee., 1908-09-23
Bryan and Bank Depositors

Mr.. Brysn's sympathy as now expressed
for the poor bank depositors exposed from
his point OF view to all manner Of dire
disasters from bank managers, is very
touching.
To hear him talk az he talked to a gath
ering OF bankers in Lincoln a few weeks
ago was positively affectins. He be-
seeched these bankers under the spell of
his oratory, for the sake OF their own
wives and children. not to refuse the
guaranty, which ne says is so imperatively
needed by these depositors. Only a few
years ago, however. Mr.. Bryan advocated
with ell his might and main, a proposition.
which II 1t had become effective. would
nave realized for these depositors under
the best of circumstances less than so
cents on the dollar of their hard earned
money.
To hear him talk one would naturally
think that banks were failing daily and
that the wall of the victimized depositors
filled the air. No one syrnpathizes more
with depositors than the sound and hon
est bankers. The many such who have
made great personal sacrifices for the
men who have trusted them is unwritten
history, but it would be a long account and
would fill many pages. These have proved
their sympathy by acts, not mere words,
NAh " AAA'A III I
them a selfish motive. But as a fact.
neither Mr.. Bryan or any of his friends
could probably name off-hand one national
a which has failed In recent years with
loss to depositors and the losses in the
state bank system Of Nebraska have been
insignificant compared with the number
of banks and volume Of deposits.
In the report of the comptroller of the
currency 1t is shown that the losses to
depositors from 1898 to 1907 have been
less than $3.50, 600 for the entire period
Of ten years from a total of $500
banks with aggregate deposits of over
IS 5000, 900, 600.
Mr.. Fowler In reporting to congress
his currency bill, stated that since the
beginning of the national bank system
forty-three years ago the total losses to
depositors by failed banks apportioned
upon the deposits of the live banks has
only amounted annually to $4,000 of /
per cent.
There are over 500 state banks in Me-
braska with deposits of over $4,000, 600,
and yet during what is called the panic
year of 1907, the occurrences during which
have occasioned all this bank guaranty
talk, only one small failure occurred-a
bank with $SS,00O deposits upon which 20
per cent dividends have already been
paid.
The showing for state and national sys-
TENS is remarkable, and it is not generally
understood by the public. 1t refutes com
pletely the idea that a startling and revo-
lutionary scheme is demanded for the bet
ter protection of bank depositors.
OF course it would be greatly desired IL
some plan can be put Into effect which
would relieve the anxiety which prevails
whenever there are bank runs, but the
cure must not be open to question; Il
must not be one which may prove worse
than the disease.
Both state and national systems are be-
ing continually improved and If no unwise
Legislation impedes and some needed leRis-
lation helps, 1t is reasonable to believe that
such a thing as a bank failure with loss to
depositors will be made practically impos-
sible.
What has led to this satisfactory ,situa-
ton in banking can be plainly seen. Pri-
marily it may be attributed to law and
regulation, but these of themselves would
not be sufficient to produce the results be-
ing achieved. The wisest bank examiner
is powerless to discern and expose the fraud
that may be praeticed by a skilful manip-
ulator. ....
The greatest protection today in the
banking business are the difficulties which
beset the manipulation and Spectator in