Bismarck daily tribune., 1908-10-02

politics for nearly a third Of a cen
That is socialistic in the extreme, /
and SO violates all equitable princi-
pies that the remedy should be con-
ydemnd for this reason.
NJ 'tTo say, as Mr.. Bryan does, that
the postal savings banks system is
more socialistic than this, is to give
a curious definition to socialism
Postal savings banks take mo man S
money to make up for the default
of another. 1t merely uses an arm
of the government which is not and
cannot be discharged by private en-
terprises. Whereas the enforced
guaranty plan takes out Of oneman's
hands engaged in the business Of
banking, money to pay for, another
mans default. This is pure social
ism. -
Mr.. Bryan suggests the expenses
connected with the examination of
banks imposes a burden on one man
for the default Of another Tnidsre is
no analogy whatever between the
reasonable requirements for the ex-
animation Of all banks and the
taking out OF one mans pockets
money to pay for the fault Of another
1t is reasonable impo osition upon
iall banks that their accounts should
be examined, and that their methods
of doing business should be constant
4 ly under public supervision, and it
is reasoning as erroneous as il is re.
| fined to make the pro-rata cost Of a
general bank examination a preced.
ent for taking money out Of one
mans pocket for another mans de
fault. sE.
A It has been shown that in the
state OF Connecticut that if this sys.
/ tenn had been in force during the
last ten years, and the axsthad beer
only one-eighth OF. one per cent more
than S4,000,000 would have been paid
out and but $4,000 would have beer
> -.EsT
received. This illustrates the unjust
I inequitable and socialistic character
, OF compulsory system most com
pletely.
Now let us pass the socialists
4 and inequitable feature Of this sys
4 tenn and come to the question wheth
4 er it will really help matters. 1t i
permissible under the national bank
ing act for banks to organize will
i "a capital of $4,000. The securit;
(which banks offer the depositors de
Hpends upon the amount of capital
the amount of surplus, and publi
confidence in the officers Of the In
2 stitution. Under the proposed sys
tenn the depositors in bank with !
( capital Of $25 600 and no surplus
and with officers of little experienc
: and Indifferent reputation can offe
the public exactly the same securit
: for the payment of deposits as a ban
: with a capital of $500, 900, a surplu
q lof $250,000 and with officers know
g to be honest and able, Deposition
g therefore In 50 far as security OF ds
4 posits is concerned, are as likely /
a make their deposits In the $25, ,0C
y bank as in the bank with the cap
r tai of $500, 900.
g 1t is proposed to introduce int
= the law Limitation as to the amour
E of interests which under the system
: can be offered and paid On deposit
q This 1t is said will prevent banI
y from offering excessive rates of ii
terest to obtain deposits. A limit
E. tion of this sort Is dificult to q,
:. because conditions vary SO much
2 different parts Of the country Ths
K which would be high interest In on
q part Of the country would be low
e another and that which would |
II high interest at one season Of II
Fl year under certain conditions, woul