The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1908-09-18
MIR. BRYAN ON
GUARANTEED BANKS
Sure Looks Mighty Good Us y The Argument Seems
UnanSworable.

selves of the law, are taxed one per
cent. of their deposits, and the money
thus collected is put into a guaranty
fund. The banking board is author
lied to make additional assessments
from time to time to keep the fund
up to this amount, and is directed To
take possession of any insOlyent bank,
pay the depOsitOrs in full. and REIN
burse the fund by collecting the as
sets of the failed bank. Five hundred
and fifty-fve banks, including fifty-fOur
national banks, had come under the
provisions Of this law On the 14th Of
last May, leaving but 255 unsecured
banks Gall natiOnaD in the state
Statements are made by the banks in
December and May. Between these
periods the secured banks gained in
deposits S4,237,765.22, while the I'M
secured banks, (alI nationaD, showed
a decrease in deposit sOf S1,101, S07.S6.
A large part of this increase repre-
scented money brought from hiding or
from without the state, but the de-
crease in the unsecured banks can
only be explained in one way. A large
number of depositors withdrew their
money from the unsecured banks and
deposited it in the secured banks,
and this, too, in spite of the fact that
in order to prevent Withdrawals, the
unsecured banks, in some instances,
offered a higher rate of interest than
the secured banks were permitted to
pay; and it must be remembered also
of deposits were all national banks.
And to make it certain that the diff
ference was caused by the guaranty
law. the secured national banks gain
ed, while the unsecured banks lost.
While the deposits were increasing
in the guaranteed banks Of Oklahoma,
they were failing in the state banks
and trust companies Of Kansas-the
decrease being $1,153,026.27 between
March 81 and June Is.
No amount Of criticism of the timid
depositor can change the facts; the
people who deposit money want more.
security than the laws at present give
them. They will change banks to get
more security, and, if necessary, they
will send their money to another
state.
For many years efforts have been
made in congress and in the various
states to secure a law guaranteeing
deposits, but the influence of the
great banking institutions has been
sufficient to prevent action. Last fall,
however, when the banks, by a con-
certed action suspended payments on
checks, the depositors were every
where brought to realization of the
fact that their deposits are in fact
loans, payable on demand under or
binary circumstances, but payable at
the will of the bank in emergencies.
The depositors suffered a considera-
bic loss during the suspension Of pay
ments, and they have not forgotten
the lesson which they then learned.
The democratic party, being more
free than the republican party to re-
spond to the needs of the masses of
the people, inserted the following
plank in the national platform:
1--WE pledge ourselves to legislation
by which the national banks shall be
to establish a guaranty fund
for the prompt payment of the de-
positors of any insolvent national
bank, under an equitable system
which shall be available to all state
banking institutions wishing to use
it,"
This principle has been applied in
Oklahoma and the results have been
very satisfactory. The average an
nual loss to depOsitors in national
banks during the last forty years has
been less than one-tenth of one per
cent. of the deposits, and the loss to
the fund in Oklahoma under better
and restrictions has been
absolutely nothing during the six
in which the law has been in
J. Bryan, at Topeka,
Kan.