New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-20
SAFE BANK DEPOSITS.
OEciaPs Statements on Federal
Guarantee Called Contradictory.

", che Editor OF The Tribune.
Sir: Much is being written and said upon the sub
-. ~ guarantee Of hank deposits. and when
49, ~ the United States Treasury expresses
,seIf his thoughts should command attention and
=, looked upon with great interest In your issue
"a Sentember Is published an article written by
Kane Deputy Controller of the Currency. and
: u;sb 10 call your attention and that of your
ss-e 20 the first statements made for the purpose
- pscertair,ng whether those TO whom have read
49,, are justified in claiming them TO be absolutely
contradictory.
T5e writes: Guaranteeing deposits in banks viii
o+ sion panics Panics he results Of runs
mon the banks and lack OF confidence in the ability
81 nav deposit liabilities demand
70 se,osits were guaranteed there certainly would
=, ~ lack Of confidence, and with no lack OF con-
.5eace there would be upon the banks;
h.nce there could be panics- So you see the
s.,.-ton would not be as he puts it. and what he
has written fails in force when submitted to bust
ness men
what he writes about Oklahoma banks seems a
r-,le twisted for II is stated that the banking law
~ that state is more rigid than is the national
hank act, so that the chances are good for con-
se-vative banking there In addition TO that, a
hank that makes money is usually counted good,
md certainly the banks in that state make
,w-ioe as much any bank in the Eastern states.
sor while they pay per cent for money. they get
F-o-n . per cent 10 50 per cent, according Mr..
.Kare which means that they can make from twice
% twenty times much banks in this state
i-z-tb y Der cent the usual rate, any one con-
,e-ssnt with business conditions knows that loans
made IN Oklahoma at L per cent are as safe as
nv made IN this state at per cent
The other arguments advanced have been brought
,,r nv others and have been well answered To the
idea that good banks should not pay for the mis-
management OF the poor bankers the reply comes
that every man paying to-day is contributing
70 funds needed TO pay for the misdeeds and mis-
management Of the poorly balanced men in the
world: the thrifty always care for the shifuess
Men 20 into the banking business with their own
money and that Of their friends 10 make money
and q reputation. and with deposits guaranteed the
incentive 20 work for that profit and success would
not he less than to-day. but more. for they would
have TO meet fair competition 1t exists in other
lines Of business. so the best managed bank would
get the business. q the merchant with the most
push and ability gets it.
Il Is too bad that the idea engrafted into the
Democratic platform. for the thought is practical
working for the best interests OF the bank well
as that Of the depositor and the country whole.
placing cur whole financial system solid foun-
dalton but with Mr.. Bryan advocating it Republi-
cans cannot quite see their way TO support it
After election the plan may get proper considera-
ton. and il is possible the Treasury officials may
be able 10 that it would be wise plan. for it
certainly would enable them handle their affairs
IN q more businesske way than they do to-day.
requiring cash when every business man handles
as little of it as possible and paying interest on
money furnished TO the banks to buy bonds TO
secure deposits. Z. Z. LYFORD.
waverly y y. Sept. Il 1908.