The newspaper., 1908-09-25
PROTECT DEPOSITS
GUARANTEE PLANK ONE OF Mr..
sRYAN's WINNING CARDS.
The object Lesson In Oklahoma and
Convincing Men that their Savings
In Banks Should be Protected a.
Well ~ Government Deposits.

IAvoES Bu8I8nte0Q D4uk oopOblC8s INC
Republican platform II silent ON that
subject Mr.. Bryan heartily cham
pions the plan: Mr.. Taft 10 strongly
opposed to 1t.
Mr.. Taft and Guaranteed Deposits.
In his speech OF acceptance Mr. Taft
puts himself squarely on record as be-
ing opposed to guaranteed deposits.
recommends q tax upon national
banks and upon such state banks a.
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 impracticable unless 1t is to
be accompanied by = complete revo-
luton in our banking system. with a
supervision SO close as practically to
create a government bank. If the
proposal were adopted exactly as 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 propositionf We are sup
posed to have Government super
vision Of national banks now. Super
vision does not mean . government
bank: II simply means that the ma
tional bank inspectors will do Just A.
they arc 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 dimcult
to frighten the people by the claim
that guaranteed deposits means tho
rough supervision of banks. That's
Just exactly what the people want.
1t is absurd to say that guaranteed
deposits would bring the whole bank
ing system of the country down to
ruin"
What does guaranteed deposits"
mean7 II means that the savings of
the masses shall be secured so that
when men and women deposit their
hard-earned money in banking insti-
tutions, they need not worry for fear
It will be lost through the reckless
ness and dishonesty OF bank officials.
The Federal Government demands OF
these banks security for the money
It deposits As a 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 that the adoption OF
such a 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-
ed Press dispatch tells OF its opera
tion in the first bank failure since the
law went into effect:
Guthrie. Okla. May 81. 1908
Within one hour from the time II. II
Smock, Oklahoma banking commits
sioner, had taken charge Of the In
ternational Bank of Colgate he had
authority to pay the depositors in full.
though the banks cash and available
funds in other banks fell S22. 900 short
of the total amount OF deposits. The
COMMISSIONER Hdb tndDicd " wv Nhto
under the operation OF the new bank
ing law. and this is the first time 1t
has been called into use. Under the
operation of the guaranty banking
law OF Oklahoma a tarifY 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 insolyent state bank.
after the funds have been exhausted"
viii the Banks Answer This7
In addition to the arguments al
ready presented In favor of the guar
anteed bank, the following is sub
mitted:
The United States Government re-
quires a deposit of specific security
when 1t deposits money in a national
bank; the state also requires secur-
ity, and the county and city deposits
are secured either by bonds or by the
deposit of specific securities.
Now the question arises. IL the
United States Government. which can
At any time inspect . bank and md
out just what It il doing and how its
business is being conducted. requires
security for its deposits. why should
not security be given to the depos
q