The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1908-09-10
MR. TAFT TAKES HIS STAND.

the guaranteeing Of bank deposits
He thereby widens the gulf that al
ready exists between himself and the
rank and file Of Western Republ-
cans. The Republicans will see, in
Mr.. Taft's attitude toward this ques=
tion. only another proof that he is not
headed in the direction they desire
to go. And in his stated objections to
the policy of requiring banks mutually |
to guarantee their depOsitors Mr.. Taft
advances arguments so weak as to
Justify Mr.. Bryan's charge that he
spends SO much time trying to con-
jure up objections to proposed re-
forms that he is able to give little
thought or attention to the reform
itself.
In his speech to Virginia Republi-
cans some days ago Mr.. Taft made
the preposterous assertion that the
fear of depositors is the best safe
guard against reckless banking" Had
Mr.. Bryan said the same thing he
would have been hooted by bankers,
business men and depositors from one
end of the country to the other. The
fear of depositors is the greatest
menace to honest banking. 1t is the
greatest menace to honest business.
1t is unreasonable, uncontrollable,
calamitous. 1t is what makes bank
runs and panics, and precipitates bus
mess depression. 1t is what the en-
| tire banking and business world is
constantly striving to allay-yet Mr.
Taft holds it up as something to be
desired! Every newspaper in the
| country, every man of influence, In
cluding Mr.. Bryan himself, and Mr..
| Roosevelt was exhorting depositors,
| last October, that they should not
fear; that the banks were safe; that
their fears, unless controlled, would
bring ruin upon the country. Why did
Mr. Taft then, if the fear of deposit
tors is so desirable and necessary a
thing, throw oil on the flames by
stimulating depositors to greater fear
and wilder panic?
| Equally unsound, almost, is his ar
gument that guaranteeing deposits
puts a premium on reckless bank
ing and is an inducement to reckless
banking" The contrary is true.
For under the present system the
penalty for reckless banking is
borne, in large part, by the depositors,
| who are innocent, and have no say
in the control of the banks. But un-
der the guarantee system the entire
loss would be borne by the banks
themselves. Would that be IAN in
ducement to reckless bank;ng?" The
question carries it's own answer. The
guarantee system would put every
bank on guard 1t would stimulate
every bank, through self-interest, to
see to It that other banks were com
PEELED to obey the law. The banks
would see to it that the government
rigidly and impartially enforced the
banking laws, as it does not do now.
Such rigid enforcement would have
prevented nine-tenths of the failures
Of the past.
Mr.. Taft argues that bankers now
refrain from exploitation and man
ipulation OF assets because they are
afraid of the depositors. The panic
of last October is the answer. 1t was
the exploitation and manipulation
of assets" and the pouring of trust
funds into speculative markets, that
precipitated the panic, and every in
telligent man knows It, But the de-
positors never knew it till 1t was too
late. Then they besieged the banks
and the entire country, for these long,
hard months, has been paying the
hard penalty.
The depositors did not know what
was happening, we have said. But
the other banks In New York, the
banks that were not engaged in this
wild and lawless game OF high finance,
did know it. The government knew
it. But nothing was done. 1t took
the panic itself to end the reign Of
gigantic gambling. What If there had
been q guarantee law then? Every
bank In New York, every bank In the
United Stetes, that knew of condi.
tions, would have brought immediate
pressure on the government TO EN-
FORCE THE LAW! With the law en-
forced there would probably have
been no ruined banks, no plundred
depositors, no panic.
This Is the very reason that the
big banks controlled by the Rookie
fellers, Rogers, Hartman, Ryan, Nor
gan, and the others who are more
stock manipulators than they arr
bankers, are opposed to the guarantee
plan. And it is also the very reason
the plain people, depositors and hon
Mr.. Taft has taken his stand with
the stock gamblers and exploiters
He has shown which way his sym