Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-04
FAvORS THE ALDR|CA BILL
SENATOR HOPKINS WOULD NOT
GUARANTEE BANK DERPOSITS.
Declares That the Proposed Amend.
ment to the Measure Is Rank
Socialism.

Senator Albert J. Hopkins of Illinois to-
Aldrich currency bill. This is not the
time" he said, ito attempt to reyolu-
tionize our present banking system. In
deed. it is not the time to discuss the
question as to whether the present bank
ing system of the United States consists
of patchwork legislation. as is contended
by some senator's. or as to whether it
embodies good a system, if not better.
than any that has heretofore been had
or can be devised for the American peo-
ple''
All that the Aldrich bill purports to do
he declared. is to provide means to pre-
vent d repetition of the financial panic
that commenced in the last days of Octo-
Der, 1907. 1t throws no obstacle in the
way of development of state and savings
banks or of the national banks.
Discusses Pending Bill.
He analyzed the provisions of che pend
ing bill. He was satisfied that there are
sufficient bonds of the classes provided
in the bill to meet all requirements. Lin
iting the character of the bonds in this
bill to state, county and other municipal
and railroad bonds. and excluding govern
ment bonds was no oversight on the part
of the finance committee or ofNMr AL
drich. the chairman of the committee who
framed this bill Mr.. Hopkins asserted
"the reason why the government bonds
are not made a part of this basis for ad-
ditional circulation is that the purpose of
this bill is not to interfere in any par
ticular with the present national bank
ing system.
The pending bill presented fewer OBJ
Jectlons tran any other measure proposed
for provldlns for an emergency currency.
Opposes Guarantee of Deposits
He was opposed to pending amend
ments for guaranteeing deposits of ma
tional banks. TO my mind" said Mr..
Hopkins. there is a wide difference be-
tween guaranteeing deposits and guar
anteeing the currency issued by the
national banks.
Th1s idea he added, that a man who
parts with his money must have a
guardian in the government Ct the
United States, or in the state. as some
OF the senators have argued with the
state banks to insure a return on the
contract that he makes his deposit, is
rank socialism. 1t destroys al indi-
vidual responsibility in the depositor
and responsibility in the bank
You let the government say to the
depositors of bank that has lust
started and whose value of the stock is
not above it's book value-let the gov
ernment say to the depositors and to
this bank that their deposits will be
guaranteed to them by the government.
and it makes no difference which bank
they go to. they are perfectly safe, and
1t viii at once destroy the 30 to 100 per
cent. as the case may be. of the stock
value of the old and conservative and
Well-established bank and bring it
down to the actual book value. This is
an injustice to every stOckholder of the
old. conservative bank
There is no more reason" declared
Mr.. Hopkins. why a man should be
guaranteed the return of his funds that
he places under contract with 4 state
or national bank than there is that a
person should be guaranteed q good
crop return who makes his Investments
in planting his crops hoping that the
season will bring forth a bountiful re-
turn. The man that deposits his money
in the bank under a contract should
himself assume whatever hazard there
is in getting that money back. precisely
as the farmer has to assume the hazard
of the expense and time and la Dor that
he is put to in planting and sowing his
crop in the spring. hoping for the re-
turn in midsummer or fall"