Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1908-10-08

the Democratic party prefers the guar
anteed bank because II is better for the
depositor and better for the banker-it
gives the depositor the security which No
needs and yet leaves the banking bust
ness In the hands of the banks. Blu the
Democratic platform declares for "a pes
can not be secured" and in November
more than ninety per cent OF the voters
will by their ballots demand either the
guaranteed a or the postal savings
bank. Can the financiers prevens the
carrying out of this demand?
me republican platform does not 60,
into detail, but II Is fair to assume that
the postal savings bank plank Is intend
ed as an Endorsement Of the postal say-
ings bank system proposed by the Presi-
dent an postmaster-general. Under this
plan the Federal government would IN
yite the deposit Of savings, a limit,
each person or each family could de-
post. According to this plan, the busi-
ness man would not be protected, for
he uses q checking account instead of o.
savings account; but no one can doubt
that the successful operation of a gov.
eminent savings bank would ultimately
lead to an extension Of the plan until the
government bank would include the or
binary checking account and be open
to deposits without limit. 1t would mean
a long contest between the depositorS
and the bankers, but a contest which
must in the end be decided on the side
"a IN ucPOSllOTS. Inc Drink must de-
eide, therefore, whether he will favor =
postal savings bank which, in the alb
sence of the guaranteed bank, will grow
until 1t absorbs the banking business.
or preserve the present system of bank
ing by giving to the people, through a
guaranty law, h protection which they
must otherwise find In q government
bank.
The Democratic plan. therefore CON
templates a less radical charge thar the
Republican plan. In his notification
speech Mr.. Taft charged the Democrats
with being socialistic in some of their
remedies. The charge was not well
founded, but 1 might reply by charging
him with advocating an unnecessary ex-
tension Of the governments sphere Of
activity. in the establishment of the pos
tai savings bank, when the guaranteed
bank would answer the same purpose
without any considerable increase in the
number Of government employees. I would
rather see the banks attend to the bank
ing business than to have it transferred
to the government, and because L prefer
to have the banking business done by
the banks rather than by the govern
ment, | urge the guaranty of deposits
as the easiest solution for our difficulties.
There are only 20, 900 banks, while there
are Is, 900, 600 depositors, and / do not
hesitate to declare that in a conflict be-
tween the two, the depositors have a
prior claim to considerations. If we es-
innate the average number of stock
holders of each bank at seventy-fve-
and that is a liberal estimate-the total
number of stockholders would only be a
million and a half, or one-tenth as many
as there are depositors. The stockhoId-
er is not compelled to buy stock. while
the depositor is compelled to use the
banks, both for his own sake and for
the sake of the community, for only by
using the banks can he keep his money
a part of the circulating medium. The
guaranty law, therefore, brings the
greatest good to the greatest number, az
well as those who have the greater
equity upon their side. :
There Is another reason why the claim
of the depositor Is superior to hi claim
of the stakeholder. The stakeholder has
a. voice In the selection Of the bank
officials; the depositor has not. IF any
bad management, it ought to be the
.Stockholder rather than the depositor.
And, L venture to ask, If the bankers
will not trust a other, why should
they expect the depositors to trust the
We are fortunate, however, in that we
are not compelled to choose between
Justice to the depositor and justice to
before, the plan which we propose not
advantage to both. More than thai,
the plan which we propose protects the
oanker-and it Is his only protection
the establishment of a govern
ment bank, with indefinite encroach-
ments upon the bankers business. With
the guaranteed bank established, govern
lment savings banks would only be needed
in the towns and villages where there
were no guaranteed banks.
There Is another advantage which the
guaranty of depositors brings to the
banks-it protects the reserves deposited
In other banks. During the panic last
fall the reserves caused the most of the
trouble. The small banks wanted to
their reserves from the city
banks, and the big banks in the cities
were not prepared to meet the strain.
With deposits guaranteed, there would
no runs on local banks and no sud-
den withdrawal of reserves.
have selected the capital Of the state
Of Kansas as the most appropriate place
for the delivery of a speech upon this
subject, because your neighbor Upon the
has been a pioneer in this reform.
her plan, as you know, has been such a
success that deposits have been
1rawn across the line from your state
INTO Oklahoma. The alarm caused by
mis- invasion of your banking territory
'aused your governor to include in his
call for a special session a recommended
lion OF the passage of a law similar to
hat of Oklahoma. When the legisla-
lure met, however, the influence of the
arge banks was sufficient to prevent
ne nee et legislation, and your state
lad an object lesson; they know the
for a law guaranteeing depos-
IS. They have seen its beneficent re-
,ults in a sister state; they have seen
age Of the state system and reaping a
Itch reward. / nave made inquiry and
ind that many Kansas bankers favor
he adoption of a guaranty s~ystem-three-
of those who have replied nave
declared for the guaranteed bank. They
AVE heard the echo of the blow that
las been struck at the national banks
" Oklahoma by the attorney-general's
'uling, which denies to such banks the
light to share in the benefits of the
guaranty system-that echo being
he surrender of charters by national
banks which prefer to become stale
ranks rather than surrender the benefits
the guaranty system. -Four national
la surrendered their charters
IND are now conducted as state banks,
While sixteen more have applied for
tate charters. Your people have also
ieen how the influence Of a few hig
,anks, concentrated upon a legislature,
IAN defeat the wishes of the smaller
'anks the desire Of the depositors
over the state.
I submit that in this effort u make all
.anks secure, the Democratic party is
he champion of the farmer, the labor
ng man, the business man, the profess
ional man, the champion of the banker
3 well, No class is outside Of the bene-
ngs upon all.
Why has the Republican party been SO
to respond to the demands of Wall
treet and so slow to yield to the de-
nands OF the masses? There are two
flowed itself to become the
I the favor-seeking corporations; and,
too many. Republican leaders
ook at Questions from the a~ristocratic
tandpoint, the standpoint Of the few,
ather than from the Democratic stand
'oint, the standpoint of the many They
eglslate upon the theory that society Is