The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-09-12
A BANKING SYSTEM IN
THE INTEREST OF ALL

To the Editor of The Times: THAT
the government guarantee or bank de-
posits Ii a popular idea. would neeo
no further proof TO thinking men that
the fact that such absurd and befog
ging arguments are being put forth by
Mr.. Taft and his newspaper friends
against IT,
In a recent editorial inthe News
Of this city was the following para
graph:
Political discussion at the present
time seems TO center about the pro-
posal to guarantee bank deposits. Mr..
Bryan argues that the depositor
should be protected by the govern
ment. 80 that no matter In what sort
Of bank he may deposit his money
he may confidently look to the gov
| eminent TO insure the safety or It.
The United States at the same time
would levy tax upon all the banks.
good. bad and Indifferent. and use the
proceeds OF the tax to make good the
losses to depositors through bad
banks"
The writer of that paragraph must
have known that Mr.. Bryan has new
er argued that the depositor would
be protected by the government, so
that no matter In what sort OF bank
he. may deposit his money he may
confidently look TO the government to
insure the safety OF It."
The two points above mentioned
seem to have been used by Mr., Taft
In several OF his recent speeches and
the Taft organs and anti-Bryan bush
whacker newspapers keep repeating
II.
This subject Is OF too great import
ance to the people OF this country TO
be treated In a pettifogging or dema-
gogic manner such as Is quoted above.
We have already had too much OF pot
house political finance. Let US be
fair with each other In discussing our
honest differences OF opinion and en-
deayor to work out a financial and
banking system that will rebound 10
the benefit OF all the people and not
In the interest OF any particular Sec
ton. clique or combination.
President Roosevelt, exSecretary OF
the Treasury Shaw. ex-Controiler or
the Currency Ridgley and hundr9ns
of others have said that we have one
of the most unscientihc banking and
currency systems To be found among
civilized countries and all agree that
something must be done to put II on
a more scientific basis. Even the Unit
ed States senate and the house OF
have seen the neces-
sity of making Improvements ana
have appointed committees TO try TO
devise some better plan.
A bank Is, by It's very nature. sim
ply a fduciary agent for the public.
As a corporation II owes Its very ex-
istence 10 the people. II Is created
primarily for their beLeht In q great
commercial nation like ours IL ID
public utility and should therefore De
amenable to the people who createu
II and for whose use IL was gwen pe-
ing. II Is true that the pronts from
Its operations 20 into the pockets OF
It's shareholders and not 10 the puoiic
at large, but that does not lessen its
obligation to the people. Per contra
II increases II, and the fact that the
very laws creating II are supposed 10
provide for its control by the repre-
seutatives Of the people Tin the case
OF national banks the controller OF
| tue currency, anu IN inc case VI bNoeO
banks the state banking commission
ers) Is evidence that the people con-
slider the bank public fiduciary agent
and should be treated as such.
Mr. Bryan, instead OF proposing TO
have the United States government
guarantee all banks, good. bad and
Indifferent" as the News states, pro-
poses that before any national bank
shall commence doing bdsiness Ii
must comply with the law creating IL.
and that IL must continue to comply
with that law.
II the banking laws are wisely made
how can there be any bad" or in
different" national banks created un.
der them? Mr.. Bryan does not pro-
pose TO guarantee the deposits In bad
and Indifferent" banks. Far from H.
He proposes that there shall be only
good banks created by the government
and when such banks are created by
the government let the government
set forth the fact that these banks