Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1908-08-28
Mr.. Chairman, Ladies and Gentle.

Why not make the depoistor secure
The United States government re.
qulres the deposit of specific secur-
1ty when it entrusts money to a nat.
lonal bank, although it can examine
the bank at any time; the state re-
guires security when it deposits mon.
ey in bank; the county requires
security and the city requires securi-
ty; even the banks require security
from the officials who handle money.
Why should the depositor be left to
take his chances?
Not only is the depositor without
protection, but the security given to
nation, state, county and city lessons
his security. They are preferred ere
itors: they have mortgage on the
gilt edged assets and the depositor
must get along as best he can with
what remains. Why are the inter
ests of depositors thus neglected?
A bank asks deposits on the theory
that the depositor is sure of the
return Of his money, and the laws
ought to make the facts conform to
the theory. The depositor, the COM
munity and the banker himself will
be. benefited by legislation which will
give to every depositor the assur-
ance that that which Is committed to
the keeping of the bank will be avail
able to meet his needs at any time.
Such is not the case today, for while
give to every depositor the assur-
all banks are reasonably secure, they
are not absolutely so. This state
ment can be verified in several ways.
First: The President has advocat'
ed a postal savings bank, and his
postmaster general, in presenting an
argument in its favor, pointed Out
that many millions are sent to Eu'
,ropean savings banks every year by
Americans of foreign birth who pre-
fer to trust the state institutions OF
the nations beyond the sea, rather
than the private banking institutions
here.
Second: It is known that conisd'
erable amount of money is in hiding
the amount increasing with the ap'
proach of panic or business depres'
sion. This money is not only with
drawn from active use, but is likely
to be withdrawn just at the time
when,money is most needed and Wnen
the withdrawal will increase the IL
nancial disturbance. 1t is Impossible
to reason with fear; it is futile 10
tell men that they will probably gel
their money. The moment the depos
itors suspect bank, they, hasten TO
DESTROY its solvency. Distrust, and
olstrust alone, can explain the Md
ing Of money.
Third: The increase in the ISSUE
Of money orders, payable to the or
der of the purchaser, is another eyi
dence that people are seeking great
er security for their money. The
banks will pay an interest upon de
posits, and yet those who buy mon
ey orders prefer to lose the interest,"
and, IN addition to that, pay tne
price of the money order in order tC
secure the governments guaranty
Fourth: National banks confess
that their banks are not secure wher
they oppose the guaranty Of stat
banks on the ground that 1t woult
lessen the deposits in national banks
and state bankers confess tina
their banks are not secure wheI
they oppose a national guaranty sys
tenn on the ground that it will draw
deposits away from state banks. !
you want to find whether banks ar
absolutely secure, ask the Director
to give you their personal note Z
secure your deposit and you VIII lea
that they win not bear the risk tina
they ask you to bear.
Fifth: The experinece Of oklahe
ma furnishes conclusive proof tina
,depositors do not feel that their MOI
,sy is safe in unsecured banks. o.
the 18th of December. 1907, the oi
lahoma legislature enacted a depos
.tsrs, guaranty law. which became o
ieratiye February 4th. 1908. BY IN
provisions Of this law. all stale PAM
and as many national banks as desir
to avail themselves Of the law ar
taxed one per cent on their deposits :
and the money thus collected is pu
into guaranty fund. The Dannn
board is authorized to make add''lo' !
al assessments from time to sime
keep the fund up to this amount an
Is directed to take possession o. ~ |.
insolvent bank, pay the deposlsors
ifnll, and reimburse the fund y g