The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1908-10-09
GUARANTEED BANKS.
By William Jennings Bryan, Topeka, Kansas, August
a. 1908.

entrusts money to fl national bank. nj
thouRh II can exam Inc the bank at an
l'h", the state requires security when
deposits money In a bank; the count
requires security and the city require
security; even the banks require securit,
from the officials who handle money
why should the deposltor be left to TAX
his chances?
Not only IL the deposltor without pro
trCiIpu, but the security given to nation
state, county ana city lessons his secur
NV. They are preferred creditors thel
nave mortgage on the gilt-edgrd as
sets and the deposltor must get alonl
az best he can with what remains WHY
hrc the interests OF deposltors thus neg
lected7
a bank asks deposits on the theory
/ that the depo5itor Is sure of the return
/ OF his money and the laws ought e
/ make the facts conform to the theory
| The deposition, the community ana the
/ banker himself will be benefited By legis.
| lation which will give to every deposItor
| the assurance that that which IS com
! mitted to the keeping Of the bank will
| be available TO meet his needs at any
/ time, such Is not the case today for
while all banks are reasonably secure.
they are not absolutely so. This state
ment can be verified in several ways.
First; The President has advocated a
postal savings bank, and his postmaster
general, IN presenting an argument IN its
favor pointed out that many millions
every year by Americans OF foreign
birth who prefer to trust the state In
situations Of the nations beyond the sea
rather than the private banking instltu-
lions here.
Second II If known that a consider
able amount OF money is in hiding the
amount increasing with the approach OF a
panic or business depression. This money
II not only withdrawn from active use
but is likely TO be withdrawn just at
a IFAA I..N
when the withdrawal will increase the
financial disturbance. 1t is impossible to
reason with fear; II Ia futile to tell men
that they will probably get their money.
bank they hasten TO destroy it's solvency
Distrust, 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, ~ another evidence that
people are seeking greater security for
their money. The banks will pay an iu-
tcrest upon deposits, and yet those who
buy money orders prefer to lose the In
tcrcHt, AMI, In addition to that pay the
price OF the money order to secure the
governments guaranty.
Fourlh' National banks confess that
thrir banks are not secure when they
oppose the guaranty of state banks on
the ground that ii would lessen the de.
posits In national banks and state bank |
ers confess that their banks are not Sc
cure when they oppose national guar
aanty system on the ground that It Will
draw deposits away from state banks |
II you want to find whether banks are |
absolutely secure, ask the directors to |
give you their personal note to secure |
your deposit and you win learn that they
10 bear.
Fifth: The experience Of Oklahoma
furnishes conclusive proof that deposit
ora do not feel that their money is safe
taFAaa 1911 ....I ~.
'ember 1907. the Oklahoma legislature
'nacted depostors' guaranty law.
which became operative February 4th,
HN. BY the provisions OF this law. all
tate banks. and as many national banks
u desire to avail themselves OF the law,
re taxed one per cent on their deposits
nd the money thus collected IN put into
guaranty fund. The banking board is
uthorized to make additional assess
nents from time to time to keep the
und up to this amount, and is directed
o take possession OF any insolvent bank
ay the Iepositors In full, and reimburse
he funu by collecting the assets of the
allied bank. Five hundred and ffty-hve
anks. had come under the provisions of
MS law on the 18th OF last May. leav-
lg but 255 unsecured banks Gail nationally ,
the state. Statements are made by
he banks In December and May Be- ,
Teen these periods the secured banks
aimed in deposits 81. 2s7. 765 %, while the ,
nsecured banks. all national. showed n i
ecrease tn deposits of 81, lOl. S07s6. a +
onev brought from hiding or from with q
1t the state, but the decrease in the :
nsecured banks can only be explained In q
he way. a large number of depositors +
ircd banks and deposited It in the Sc .
lred banks. and this, too, in spite OF i
lie fact that in order TO prevent with a
'awals. the unsecured banks, In some II
stances, offered higher rate OF inter- q
i than the secured banks were permit q
d to pay; and 1t must be remembered n
so that the banks which suffered a loss 4
deposits were all national banks. And
make It certain that the difference was Z,
used by the guaranty law, the Sc a
red national banks gained. while the q,
secured banks lost. While the deposits =,
ere increasing in the guaranteed banks ii
Oklahoma, they were falling in the il
ate banks and trust companies OF Kan II
s-the decrease being 81. 1853 026.27 be- a,
zen March 3lst and June 18th. In
No amount OF criticism of the tImid w
positor can change the facts; the peo- fc
> who deposit money want more Sc 81
I'm. They will change banks to get At
IRE security, and, II necessary. they
i send their money 10 another state. DC
For many years efforts have been made III
Congress and in the various states to II,
'ure law guaranteeing deposits, but In
; Influence of the great banking insti- 10
ions has been sufficient to prevent nc pr
n. Last fall however. when the m
nks, by n concerted action, suspended In
yments on checks, the depositors were nc
'rywhere brought to realization of do
J fact that their deposits are In fact, "a
ms. payable on demand under ordi- stl
~ circumstances. but payable at the oh
] OF the bank In emergencies. The re-
,ositors suffered a considerable loss
ring the suspension OF payments and we
y have not forgotten the lesson which We
y then learned. The Democratic party, blu
ne more free than the Republican CO..
'ty to respond TO the needs of the or,
sses of the people, inserted the fol- asi
ing plank In its national platform: int
We pledge ourselves to legislation by rec
lch the national banks shall he re- shi
red TO establish n guaranty fund for this
prompt payment OF the depos!tors bal
any insolvent national bank. under an wo
liable system which shall be avail. hir
? to ali state banking institutions VIII
hing TO use It," toe
his principle has been applied In Ok wo
oma and the results have been very ers
sfactory. The average annual loss les,
depositors In national banks during be
last forty years has been less than mes
tenth OF one per cent of the deposIts in
the loss to the fund in Oklahoma. lilo,
err better regulations and restrictions, llat
been absolutely nothing during the by
months In which the law has been in mol
ration. | fer,
lie Republican platform Is silent on II
subject. and the Republican candi- ma