The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-09-05

PoDccac mat the next preSluSnt Will
appoint at least four judges of the
United States supreme court. Upon
tnese appointments will largely de-
pend the quality of the judicial work
OF THIS great court for years to come.
Some questions which are discussed
with no little vigor can hardly be con-
sloered as campaign issues. Mr.. Bryan
oeslres United States senators to be
CHOSEN by direct vote of the people in
the several states. Mr.. Taft also IN
glad he does
But TINS can be accomplished only by
constitutional amendment, and such
anenoment can be had only when ratl-
heo by three-fourths of the state. This
would hardly seem to be an issue upon
Wnlcn TO select a president.
Again, Mr.. Bryan objects to the pres
ent rules of the house of representa-
llVes ana complains that it is no longer
dehoerative body" How to make
the procedure of body of nearly 400
members more fully deliberative while
at the same time to make provision
TOT the proper dispatch of business, how
10 give greater freedom and how to es-
cape from the alleged tyranny OF the
speaker without creating a new tyran-
ny of the minority, is a question which
pdrHdmentar1ans may discuss to ad-
vantage. 1t would be we'll to have some
dennlte statement of the amendments
DESIRED and an opportunity to judge
bers of the house will make such rules
as they think best and the general sug-
gestlons of the Democratic platform on
TINS point can hardly be regarded as
pertinent to the presidential campaign.
Revision of the Tariff.
Both parties demand a revision of
the tariff. But they differ in the prin-
clple and aim of such revision. The
republican party stands for the policy
of protection. 1t maintains its his
toric position in defense of American
standards of living and of the Ameri-
party seeks, as Mr.. Bryan construes its
platform, to overthrow protection and
to establish revenue tariff. Instead
of reimbursement of protective rates and
a fair arrangement of schedules con-
sistent with the long established policy
of the country under which our trade
has been developed and our indus
trial activities have attained their
notable expansion, he insists on an
overthrow of the entire system of pro-
lection, thus threatening the dis1oca-
ton of trade and the most serious dis
turbance of industry. He seeks NOT
tariff revision but tariff revolution.
Guarantee of Bank Deposits.
The plan proposed by the Demo-
cratic platform to provide for a guar
antee Of bank deposits is also open to
serious objection. Mr.. Taft promptly
pointed out its weakness, and Mr..
Bryan, despite his skill has been un-
able effectively to answer his critt-
cisms. The plan proposes to make the
honest and prudent banks meet losses
for which they are in no way respon-
sible. Mr.. Bryan replies that all bank
ing restrictions operate to curtail the
freedom of the prudent because of the
dangers arising from the abuses OF
others. But it is one thing to put
business under needed restrictions
operating impartially and quite an
other to compel banks to make good
specific losses not attributable in any
way to their neglect or default.
Why should it not be applied to In
surance companies? They are char
tered by the state and are subject to
its close supervision. Life insurance,
safeguards of the home; and the inter-
ests of the policyholders can not be too
surely protected. But what would be
thought of proposition to compel the
well managed and conservative life in
surance company to make good the
losses which would be sustained by
those insured in other companies that
become insolvent? This would large
~ deprive the former of the just bene-
fit of its own conservatism and we'll
earned reputation and make easy the
efforts of the unscrupulous.
The business of banking and insur-
ance must be transacted under strict
supervision; but those institutions
WHICH operate 1d11ly ana pTuQonClY
within the law should not suffer either
from lavity of governmental supervis-
ion with regard to others or from i'm
prudences and frauds with which they
have no concern.
Where Bryan Fails.
Mr.. Bryan tries in vain to meet the
criticisms that the plan proposed would
encourage reckless and dishonest men,
who would seek deposits on the faith
,.l, 80 10
forgotten that they do not conduct their
enterprises with the expectation of fail
ure nor do they contemplate loss to the
depositors; but deposits are the sinews
of banking enterprise and to the ex-
tent that such a guaranty would facili-
tate them in obtaining deposits, the OPP
portunity for the play of illegitimate
purposes and the temptation to indulge
such purposes, would obviously be in
creased. Mr.. Bryan asks would it not
be worth something to the stockholder
in peace of mind to know that the
maximum of his loss would be the
value of his stock and the 100 per cent
liability, and that no depositor could
lose anything?" 1t may be supposed
that there would be an added peace
of mind" on the part of managing Off
Gals And this diminution of anxiety
and of the sense of moral responsible
ty with regard to deposits could not
fail to have it's effect upon the prudent
conduct of the business. and place
severer strain upon governmental sup
ervision. The conditions under such
plan would inevitably tend to increase
banking losses, however they might be
made up. 1t may be added that the
guaranty fund if it were established on
a scale sufficiently large to ensure the
required protection, would furnish diff
ficulties both with regard to It's in
vestment and it's availability in emer-
gencieS.
This proposed plan does not meet the
demand for an elastic currency sys-
tenn thrAgh which the monetary wants
of the country may be supplied To
supply such a system is an urgent ne
cessity and its provision would obviate