The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1908-08-28
MEMBER ASSOCIATED PRESS.

shall be required, toaestab1ish a. guar
.anty fund for the prompt payment OF
thes depositorst.o off any i~nsolvent. ma
tional bank, under an equitable sys-
tenn which shall be available to an
state banking institutions wishing to
use it."
This principle has sbeen applied IN
Oklahoma and the results have been
very satisfactory. The average an
nual loss to depositors in national
during the:last fnrty-yearss has
been Iesssthan onetenth aof n per-
cent of the deposits; Eand the loss to
|theerfund in Oklahoma under better
regulations and restrictions has been
absolutely nothing during the -six
months in which the law has been
in onoration sv.
The Republican platform Is silent
on the subject, and the Republican
candidate not only does not advocate
a compulsory system, but specifically
and emphatically. opposes 1t. He says:
1.-THE Democratic platform recon-
mends a tax upon nationalsbanksI ant
upon such state banks samay come
in, in the nature OF enforced insur-
ance to raise guaranty fund to. pay
the depositors OF any bank which
fails"
And then he Qestions the right of
the government to enact such a law.
saying:
How state banks can be included
in such a scheme under the consti-
tuition is left in the twihght zone of
state rights and federalism SO fire.
~quently dimming the meaning and
purpose of the promises of the plat
form. If they come in under such a
system. they must necessarily be
brought within the closest national
control, and SO they must really
cease to be state banks and become
national banks"
His solicitude for the state bank
will hardly impress the country for
he is quite Indifferent to states and
their reserved rights when he deals
with other subjects. When Congress
is in the control of those who want
to legislate for the whole people rath-
er than for the few, it will not be
difficult to frame a law under which
state banks can avail themselves of
the advantages of federal Law guar
anteeing the deposits of national
banks, just as it was easy in Okla
homa to frame a law which permit
ted national banks to take advantage
of the state guaranty system. 1t will
also be easy to enact a federal law
which will permit national bankssto
avail themselves of state guaranty
systems until a national system can
be secured. Attorney General Bona
parties. ruling, whether it c~orrecAy
interprets the law OR not, : would not
bring such CONSERVATION as it does
if the Republican candidate favored
a law allowing national banks to take
advantage of states systems for the
protection hof depesftofs, but Mr..
Taft's hostility to- all: guaranty isys-
TENS Is shown in the objection which
he offers:
- THE proposition is to tax the hon
est and prudent banker to make up
for the dishonesty and i~mprudence
ofsothers. No one can foresee the bur
den which under this system would
beahmposed upon the sound and CON
sentative bankers. OF the country ba
this obligation to make good the
losses caused by the sreckless, specs
lativel and dishonest men who would
be enabled to secure deposits .under
such a system ON the faith of the
proposedainsurance; a in it's present
shape the proposal would remove all
against -~fecklessness I'd
banking, and the chief and In tho
end. probably theA only. beneft would
accrue to the ~speculator, who would
be delighted to enter the banking but
sfness when 1t was certain that he
could enjoy any profit that would acs
crue, while the risk would have to
be assumed by his honest and hard
working fellow" II
He wen pictures dire disaster and
declares that eff the proposal werai
exactly as the Democratic
platform suggests. It would bring tbs
whole banking system Of the cou7try
Down IN ruin" I'll
eAs an afterthought he suggesta
hat . voluntary system might be toll
but a his objections =
system apply Just as wei
% a@roIuhtary system. we may fairf1
,ounf shin against sn 1ekisiAtionf
which has for its object the guaranty