Waterbury evening Democrat., 1908-08-28
BRYAN PLEADS
 FOR DEPOS|ToRS
Gives Reasons For Goyern-
 ment Bank Guaranty.
cRITICISES REPUBLICANS.

Candidate In Address at Topeka Asks
 Why Depositor Should Be Left to
 Take His Chances When Govern
 ment Requires Security if It lntrusts
 Money to lnstitution-cites Case of
 Oklahoma.
 Topeka, Kan, Aug. 2s.-Before an audience which filled the Auditorium to overfowing William J. Bryan, Dem ucratic candidate. for president. spoke on the subject of guarantee of bank deposits. Previously he had delivered three other addresses. two from the veranda of the hotel and the third at Garfield park, where he attended picnic by the Knights of Pythias, his ; latter theme being Fraternity"
 Mr. Bryan's speech in part follows:
 MT. Chairman, Ladies and Gentle men Why not make the depositor secure? The United States govern ment requires the deposit of specific security when it intrusts money to a national bank, although it can exam he the bank at any time: the state re- quires security when it deposits money In bank; the county requires security , and the city requires security; even the banks require security from the of- ficials who handle money. Why should the depositor be left to take his chances?
 A bank asks deposits on the theory that the depositor is sure of the return of his money, and the laws ought to make the facts conform to the theory. The depositor, the community and the banker himself will be benefited by legislation which will give to every de positor the assurance that that which is committed to the keeping of the bank will be available to meet his needs at any time. Such is not the ease today, for, while all banks are reasonably secure, they are not abso- lutely so. This statement can be veri- 0ed in several ways.
 First.-The president has advocated [ postal savings bank. and his post master general, in presenting an argu- ment in its favor, pointed out that many millions are sent to European savings banks every year by Ameri- cans of foreign birth who prefer to trust the state institutions of the na- tions beyond the sea rather than the private banking institutions here.
 Distrust Explains Hiding of Money.
 Second.-It is known that a consid- erable amount of money is in hiding, the amount increasing with the ap- proach of a panic or business depres- sion. This money is not only with drawn from active use, but is likely to be withdrawn just at the time when money is most needed and when the withdrawal will increase the financial disturbance. It is impossible to reason with fear It is futile to tell men that they will probably get their money. The moment the depositors suspect a bank they hasten to destroy its solv- eney. DistrIst. and distrust alone, can explain the hiding of money.
 Third.-The increase in the issue of money orders, payable to the order of the purchaser. is another evidence that people are seeking greater security for their money. The banks will pay an interest upon deposits. and yet those who buy money orders prefer to lose the interest and. in addition to that. pay the price of the money order in order to secure the governments guar anty.
 Fourth.-National banks confess that their banks are not secure when they oppose the guaranty of state banks on the ground that it would lessen the de- posits in national banks, and state bankers confess that their banks are not secure when they oppose a na. tional guaranty system on the ground that 1t will draw deposits away from state banks. oklahona's Experience.
 Fifth.-The experience of Oklahoma furnishes conclusive proof that depos- ftors do not feel that their money is safe in unsecured banks. On the 1Tth of December 1907. the Oklahoma legis- lature enacted a depositorS' guaranty law. which became operative Feb. i, 1908. By the provisions of this law all state banks and as many national banks as desire to avail themselves of , the law are taxed 1 per cent on their deposits, and the money thus collected Is put into a guaranty fund. The banking board is authorized to make additional assessments from tinne tc ! time to keep the fund up to this |. amount and is directed to take posses ] sion of any insolvent bank, pay the . deposltors in full and reimburse the ! fund by collecting the assets of the . failed bank Five hundred and fifty. ! five banks. including fifty-four national banks. had come under the provisions of this law on the I4th of last Mag. , leaving but 255 unsecured hanks (alI nationsD in the state. Statements are made by the banks in December and . May. Between these periods the SC . cured banks gained in deposits s4 4.237.- i. G65l22. while the unsecured banks. all . national showed a Hacrpaza in aaraz