The San Francisco call., 1908-09-27
Taft Shows Foraker Sought
Oil Trust for Partner
Nominee Advocates Postal Savings Banks
and Exposes Bryan's Guarantee Plan

positors whose runs in panic times
upon the banks produce such oisas-
this money in government oIhces anu
the power of the government Wnicl
redeposits that money in the nalonai
banks in the neighborhood would Iuf-
nish means Of meeting an exlgency
that no other system proposed mas thus
far offered.
DEMOCRATIC PARTY OPPOSED
This postal savings bank system,
however, does not meet the unquallned
approval of the democratic party 1t
has not the vote-cat itching quality ana
involves only the old-fashloned graouai
movement toward better tb,.,f things nns say oy
ing. The party under its present lead
ership must have something which Of
ferS a short cut to reform at the cost
of the honest and the Industrious.
The democratic platform pledges the
party to the support OF q system
by which all the national banks OF the
deposits TO the depositors in every
bank, and this guaranty is to be per-
formed by a tax upon each bank In
proportion to its deposits, the proceeds
OF the tax to constitute a fund from
which the depositorS of any failing
bank are to be paid.
While the democratic platform does
not elaborate the system 1t Is to be
inferred from the fact that the prece-
dent in Oklahoma is relied upon, that
the provisions are to be like the Ok
l&nOInd law, ana IneB0 arc dS dDOfO
stated.
BRYAN'S REMEDY SOCIALISTIC
The. remedy proposed by Mr. Bryan
will make the conservative banker pay
for the negligence, carelessness, lack
of confidence or dishonesty of the fall
ing banker. 1t takes from one man
without fault on his part money to
pay for the default of another. That
is. socialistic doctrine, and so violates
all equitable principles that the remedy
should be condemned for this reason.
To say, as Mr.. Bryan does, that the
postal savings banks system is more
definition to socialism. Postal savings
banks take no mans money to make
up for the default or another. 1t
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 capital engaged in the busi-
other mans default. That is pure So
cialism.
KANSAS PLAN DIFFERENT
1t has been said by Mr. Bryan that
the republicans of Kansas, by adopting
plank in favor of a kind of guaranty
OF deposits, rebuke me for my opposi-
tlon TO the plan outlined in the demo-
cratic platform. This is entirely mac
curate. The republicans of Kansas have
recommended the passage OF a law by
which banks, if they choose, may en-
ter into arrangements with other banks
by which they shall all be subject to
an assessment to pay the loss to de-
positors in any bank in the agreement
1t is the voluntary feature of the Kan
saS proposal that makes the radical diff
ference between it and that of the dem
ocratic platform. 1t is entirely con-
ceivable that banks in the same neigh
borhood and within the observation of
each other or may profitably and safely
accept and guarantee the security of
all for the benefit of each, especially
when they can select their partners.
MONEY ONLY STOPS PANICS
One of the great merits claimed for
the enforced guaranty of deposits is
that it will prevent panics. 1t is suf-
ficient to say that the plan proposed
can not prevent panics. A panic is not
stayed by the promise that money will
be stayed by the production of the
money itself. When a financial strin-
gency is on, 1T is the cash the man
needs, and to say that he will get it
him. No one who has heard that his
bank was going to fail will delay in
Immediately applying for his money
merely because he is assured that at
some time in the future he will get 1t.
Therefore, the system could not stay
the panics unless the funds were large
of their depositers at the time of the
run A tax is proportioned only to the
loss sustained after liquidation and
payment SO that the funds would be ut
terly inadequate to meet the demand
for ready money which would prevent
panic.
/ think have shown that the ten
dency of the system proposed would be
to destroy the high character of the
present banking. This is not, however,
to be taken as an argument that the
security of deposits is not good thing,
and is not TO be brought about as fully
and perfectly as possible. 1t is only
to show that the method here suggested
is a plausible but sophistical method
that will not accomplish the purpose,
but Will ultimately increase the losses
from bank failures.
The case of Oklahoma has been cited
as an instance to Justify the democratic
platform. The system has been In
operation only since March of this year.
No panic or other financial disturbance
has tested it's efficiency.
At Faribault Taft was invited to take
a seat on large elephant. which was
led to the rear Of the train. The ami
NAL was decorated with the familiar
&c. O. p" sign and was ridden by what
the candidate declared to be very
pretty girl"
'I would like mighty we'll to be up
there with you,'' he told her, while the
crowd laughed. but ! know you have
not a derrick strong enough for me to
mount. But just the same I believe 1
could ride that animal with great
success"