The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-01-05
BRYAN SPEAKS ON
BANK GUARANTEES
Oklahoma System Recon-
mended For All States
NO LOSS BY BANK FAILURE
Nebraskan Declares That Method of
Taxing Banks I Per Cent of De-
posits Is Certain To Re-
store Confidence.
NO LOSS BY BANK FAILURE

Mena, Ark, January 4.-(Special)-
William j. Bryan. who tonight deliv-
cred lecture here in a local theatre,
in an interview announced himself as
being in favor of the governors of
states calling their legislatures to-
gether in special session to pass laws
that will guarantee bank depositors
will get their money back in case a
bank fails.
1.-THE sentiment in favor of guaran-
teeing a bank deposit has been grow
ing so rapidly that it is safe to pre-
dict that it will not be many years be-
fore we shall have such security for
bank deposits, state and national. as to
make it impossible for any man to lose
money through a bank failure The
plan is simple one, and its benefits
can be seen by both banker and de-
posftor at glance. The actual loss by
bank failures is small when compared
with the total deposits-less than one
tenth of L per cent in national banks
in the past 40 years-but no one can
tell what bank will fail, and thus the
people get frightened and make runs on
banks when there is any threatened
trouble.
1.-THE plan is for the government to
stand back of the deposits and then
make the banks join in making good
any loss. Oklah oma has set the pace
and her system will be set in operation
February II. On that day all state
banks will be required to pay an as
sessment to the amount of l per cent
of the deposits and If any bank fails,
the depositors Will be paid out of this
fund and the board may call for ad-
ditional assessments, If 1t is neces-
sary to meet depositors demands.
1.-The governors of Nebraska, Kansas
and Texas, are considering calling
special sessions of legislatures for the
purpose of investigating this system
and have no doubt the subject will be
brought up in Kentucky, Mississippi
and louisiana, where legislatures are
soon to be in session. Several bills
have been introduced in Congress, but
it is not so near to the people as the
legislatures, and they will look to the
legislatures for relief, although there is
rea son to believe that the nation will
adopt the same system. Oklahoma will
permit national banks to take advant-
age of the state guarantee should the
federal Congress allow 1t, II the issue
is made This system will draw money
from hiding and 1t will give US
larger amount of money in business
1t will restore confidence as nothing
else will.
1.-The loss occasioned by the present
financial stringency is hundreds of mil
lions and 1 believe the administration
of the state would be justified in cali
ing a special session to put this plan
into operation"
Mr.. Bryan addressed the people in
the street in front of the Elks' club In
the afternoon, speaking from market
wagon to which were attached two
donkeys. He referred to the fact and
declared he considered 1t good omen.
He showed the donkey as an emblem
of the democratic party, saying 1t was
better than the elephant OF the repuo :
ltcan marty. He declared he sees hope
tuI signs and that IL reforms are TO
come they will be through the demo-
cratic and not the republican party.