The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1908-09-10

as q theory; but let us talk abou
something we know all about. Tn,
first thought that strikes Ken
: tuckian when the deposit guarant,
scheme is preached to him, is wha
: fine thing that would be in thu
case OF w. B. Smith. Deposit
Tors would be protected, and
Smith could go right ahead
with his financial operations
instead of going to the penitentiary
Ponder on that situation and realize
how serious this new Organism is.
Bryan's scheme would make a w
b. Smith bank Just as safe, and more
attractive than any other kind OF
bank. You would not be put to the
Inconvenience of inquiring as to the
character of the man at the head of
1.-THE bank, his business methods or
ability. All the other banks would
be contributing a guaranty fund to
make your deposit in w. b. Smiths
bank secure.
Sounds fine, doesn't It? But let
us see how 1t would work. You don't
have to worry about banks that are
properly conducted by reputable men.
| IL is only che reckless banker you
need to be guarded against. So, w.
b. Smith is the type, which the pro-
tection of the guaranty fund con-
templates. and the substantial banks
are to figure only so far as their
earnings and surplus are diminished
by the necessity OF guarantying the
security of the Smith banks.
Under those conditions w. n
Smith opens a bank in Paducah and
he, offers more alluring inducements
than those old, conservative banks
feel they can afford to offer deposit
ors. Bryan's guaranty fund. which
these other banks are putting up,
makes w. B. Smiths bank Just as
safe as any, and since you get the
best TERMS for your deposits there,
you pIaee your savings In his keep
ling.
Now. While Bryan's scheme may
guaranty your deposit. 1t does not
reform w. ID. Smiths morals or his
Il
methods, and he uses your money in
reckless transactions. being CON-
PEELED to take extraordinary risks In
order to make the profit to meet your
terms Of deposit. Smiths success
encourages other adventures to &c
into the banking business and then
We witness a pretty race among them
for your patronage. But what dc
you care? Doesn't Bryan's guaranty
fund protect your deposit?
Presently. the conservative banks
which put up the guaranty fund. find
they must either offer as great in
JUDGEMENTS as the Smith kind Of
banks or lose their own depositors
: In other words. needing no guarant,
TO protect their own customers II
the outset. they find themselves
in the position of putting up guar
anty fund to back the reckless in
) JUDGEMENTS OF rascally competitors
who are driving them to the wall
When all the banks have perforc,
fallen into the Smith method of wild
cat banking, or the responsible
banks have all gone out of business
who is going to continue the deposit
guaranty fund?-Pause a moment
and reflect-The government? II so,
then we shall find, that, instead OF
making financially responsible insti-
buttons put up the guaranty for the
raseals. we. the people. will be back
ing wildcat banks with government
money. and-well there is no other
way. but for all of us to go into the
banking business to get even. We
offer that as a suggestion to. Mr..
Bryan.
How can any reasonable man Of
fer such folly as the deposit guaranty
scheme TO the enlightened consider
alton of the American peop.e? Can
any Imagination do justice to the
situation. which must inevitably fol-
low such a scheme of finance? In
stead OF protecting depositors. the
Bryan scheme would protect wild
cat bankers, and compel respectable,
conservative institutions to put up
the fund. which must prove their I'M
doing; ruin our whole system of COM
mercial credit; eventually PROSTATE
trade and industry; possibly bank
rupt the government: surely destroy
all property values and press to the
verge OF starvation those who have
no property.
The marvellous prosperity OF the
last decade has encouraged repre-
hensible speculative methods, and
only the conservatism OF the bankers
generally has checked the buoyant
tendency OF the times. Had we been
cursed with a guaranty that would
have kept afloat beyond its time
every wildcat venture, while It lured
people away from legitimate depos-
itories with tempting offers, the
Providence, which has mercifully pre-
Served Us from the whimsical yag-
aries OF Mr.. Bryan. only knows what
would have happened last winter.
4 q