The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1908-10-09
no foundation. In Oklahoma only a

no foundation. In Oklahoma only a
man of good precedents, of good repu-
tation and of good association is per-
mitted to have state charter. He is
not permitted to borrow from his own
bank nor make excessive loans. Be
fore the guaranty fund could be in
jured by his failure every dollar of his
own money, of his directors money,
and their double liability must have
been exhausted.
A big banker from Chicago has OPP
posed the guarantee plan on the the
DRY that this plan would make the de-
position in small bank as safe as in
a big bank, and would be more advan-
tageous to the small bank than to the
big bank. The present line of depos-
it's in big and little banks alike is
composed of depositors each of whom
individually feels entirely safe now.
And the guaranty plan would not
change these depositors. 1t would,
however, prevent their making run
in the future. But the guaranty plan
would benefit big and little banks alike
by bringing out boarded funds, es-
pecially the small banks. The big
banks would benefit also because
their additional funds would be re-
deposited by the small banks in the
larger banks according to their usual
custom.
The ordinary depositor is Influenced
by his environment, by his acquaint-
ance with the officers of bank, with
it's directors, with its depositors, or
some such personal reasons. The
larger the bank the greater these at
fractions, and the more the bank will
benefit.
The bankers, of all the people in
the world should cordially favor the
guarantee plan.
The advantage to the ordinary citi-
zen whose cash is deposited is too OBJ
vious to need argument. There are
fifteen million depositors in the United
States and this safeguard and guaran-
tee is of the greatest Importance to
the business life of the humble citizen.
Why should not the citizen depositor
BIZ safe? 1t costs the bank nothing.
Why should he be left unprotected
against the possible folly or actual
crime OF an occasional bank officer.
His protection is beneficial to the hon
est banks Why should he be unsafe
when the United States and every
state and every municipality requires
security for their deposits? &.
Why should his peace of mind be
forgotten and his rights neglected
when the guaranty pan would not
only serve his interests but would
equally serve the banking class, but
what is of far more Importance, would
give stability to our national COM
merce and permanent prosperity. Pan
ic means hundreds of thousands
thown out of employment, and it new
er should be permitted to recur in this
country The guarantee of deposits
will absolutely and effectually prevent
future financial panic.
It will cost the National banks moth
ing, if the present tax on circulation
be used for guarantee fund The an
nual loss per annum to depositors OF
the National banks, based on the
Comptroller's records, of the last ten
years, is only about $4,000 per an
mum, while the circulation tax is over
100000 per annum, about forty
times more than the average loss.
The National banking system is al
most perfection now, as far as the
depositor is concerned, and may be
made perfect as to the depositor by
the guarantee fund. 1t would be al
actual profit to the banks because the
gain of deposits and of stability ant
the increased earnings therefron
would infinitely out~elgh the trifiins
cost of a guarantee fund.