Omaha daily bee., 1908-09-27


SO per cent Is In New England. 3s per cent
in New York q per cent in Pennsylvania.
Ohio. Illinois, Iowa and California, leaving
but & per cent Of the total in other states.
we should not deny to our people
throughout the country opportunity to
make the small deposits with the security
of the government promise to pay princi-
pal and interest. Such a system will add
greatly 10 the money savings Of the coun-
try.
Fear of Banks UnfOunded.
"The fear by any class Of banks that this
would interfere with their business the
experience i'm other countries has shown to
be utterly unfounded. Where savings banks
are established, they pay higher rate OF
interest than the government will pay for
deposits In the postal savings banks, and
confer privileges on their depositors which
It would be impossible to grant under a
government system.
"a significent fact in connection with the
postal savings banks of those countries
where they have been most successful Is
that one-third of the depositors Of the postal
savings banks abroad are miners and two
thirds of them are workingmen
"The postal savings bank would perform
most useful function in case of panics,
because they are government Institutions
with the whole credit of the government
behind them. and would attract the depos-
it's OF those small depositors whose runs in
panic times upon the banks produce such
disastrous consequences The deposit of
this money in government offices and the
power of the government who redeposit
that money in the National banks in the
neighborhood, would furnish means of
hot gVg
proposed has thus far been offered.
This postal savings bank system, how
ever, does not meet the unqualified ap-
proval Of the democratic party. 1t has
not tho vote catching quality and involves
only the old-fashloned gradual movement
toward better things by means of industry
and thrift and saving.
'The party under it's present leadership
must have something which offers a short
cut to reform at the cost of the honest
and the industrious. The democratic plat
form pledges the party to the support of a
system by which all the national banks OF
the country are required to guarantee the
deposits to the depositors In every bank, and
this guaranty Is to be performed by tax
upon each bank I'm proportion to Its depos-
its. the proceeds of the tax to constitute n
fund from which the deposkors of any
failing bank are to be paid; and IL the
amount of the tax Is not sunfflcient TO
raise the fund required. then it is to be
raised by subsequent assessment on all the
banks of the country, and state banks are
to be allowed to come in and get the
benefit of the same guaranty under condi-
tlons to be imposed by law. While the
democratic platform does not elaborate the
system, 1t is to be inferred from the fact
| that the precedent in Oklahoma is relied
upon that the provisions are to be like the
Oklahoma law, and these are as above
stated.
: safety of vital Import.
mo one can dispute the importance of
making the deposits in every national bank
as secure as possible, provided the remedy
adopted is not itself worse that the evil
to be cured. The government has imposed
certain limitations upon national banks
which have already tended to reduce the
losses Of depositors.
"The result has been to Introduce into
national banks. a class of men of high
character and great business and banking
ability. and the losses in the last forty
years TO depositors in national banks have
been reduced to an average annual loss OF
one-twenty-sixth of one per cent of total
I
could be avoided. 1t would be of great
benefit and should be brought about for
while the percentage is small the indvid-
/ uals upon whom the loss falls may be
heavy sufferers. The question is whether
we are TO bring about an avoidance of this
| loss by the proposed democratic remedy,
or I'm a more conservative and gradual
| way by perfecting the examination of banks
and by rigid prosecution OF all who violate
the banking laws.
THE remedy proposed by Mr. Bryan will
make the conservative banker pay for the
negligence, caTelessness, lack OF confidence,
or dishonesty Of the failing banker. II
takes from one man without fault on his
part, money TO pay for the default of an
other. That is socialstie In the extreme
and so violates all equitable principles that
the remedy should be condemned for this
reason.
ITO say. as Mr.. Bryan does, that the
postal savings banks system is more So
elalistic than this is to give curious defi-
milton TO socialism Postal savings banks
take no mans money TO make up for the
default OF another II merely uses an arm
of the government which is not and cannot
be discharged by private enterprises
Whereas the enforced guaranty plan takes
out of one mans plan engaged in the busi-
ness of banking money to pay for another
mans default. This is pure socialism,
Method of Examination.
'Mr. Bryan suggests the expenses con,
nected with the examination of banks i'm
poses a burden on one man for the default
OF anther. There is no analogy whatever
between the reasonable requirements for
the examination OF all hanks and the TAX.
ing out OF one mans pockets money L
pay for the fault Of another II Is a rea.
sonable imposition upon all banks that their
| accounts should be examined, and thai
their methods OF doing business should b.
constantly under public supervision. and Il
is reasoning, erroneous as it is refined Il
make the pro rata cost OF general banI
4 examination a precedent for taking none,
out OF one mans pocket for another man,
default.
! 1t has heen shown that In the state al
COnneeticut that IL this system had beer
in force during the last ten years and IN,
tax had been only one-eighth OF per cen
more than S4.O000OO would have been pais
\ out and but $1,000 would have been received
This illustrates the unjust. inequitable and
\ socalistic character Of compulsory sys
tenn most completely.
New let us psss ths soeisnstie and In.
Iceatlavsd "a ssssAa PGs>%