The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1908-09-19
BANK DEPOSITS

Every man or woman who is so for
tunate as to have money in the bank is
vitality interested in the Bryan PROPOSE.
ton that the government shall guar
antec depositorS against the loss OF
their hard-carncd savings. The ques-
ton bids lair 10 become an over
shadowing ISSUE, for the man with the
little account IS just a much concern
ed as the merchant with the large
credit, since the loss IN either case is
equally painful whether the amount is
10 be measured in hundreds or thous-
ands
ANY discussion ui til, guaranty OF
bank deposits ought to be entirely free
from political considerations. One
does not associate the idea OF the Sc
curity OF his savings with political con.
tests, although in this instance il is
made matter OF campaign import
ance. The question is not political but
economic.
Nothing comes closer TO the heart
oi the wagc-earncr than a proposition
which concerns his savings IN its
face the guaranty oil bank deposits is
very attractive since there are yet some
people who do not wholly trust banks
even though they put money IN them.
4 study oi the subject, however. will
show that governmental guaranty OF
bank deposits would weaken, not
strengthen. our banking system.
In general way the Bryan plan
provides Tor common fund To- be
raised by species oi taxation upon
the various banks. Out OF this would
be paid To dcpositors the money which
they might lose through the failure OF
the bank which was entrusted with
their money. One c'aSS oi people may
he counted upon To champion the
mcaSure-thc officials OF weak banks
and officials who have no scruplcs in
using the mnucy OF their banks for
doubtful purposes Failure need have
no fear for these. BY means OF offer.
ing unusual rates OF interest they could
attract large deposits. pointing out to
the people that their safety is guaran-
tced by the government The banks,
in turn. under the necessity oi paying
the unreasonable interest which they
might offer, would be compelled 10 re-
sort 10 investment opportunities which
offered large returns at a maximum of
risk. In the event al Improbable in
ycStmCnts closing the doors would be
obligatory. The stronger and couScrv-
ativc banks would he compelled TO pay
the debts ~ badly and dishonesty
managed institutions. 10 the weaken
ing ~ the whole banking fabric
Postmaster General Meyer has wise.
~ pointed ont that the guaranty oi bank
deposits is not a form ui insurance, as
1t would at first appear Insurance is
contract whereby one party yolun-
tarl'y pays To- another party fixed
sum inr indemnity against loss and pot
90 exceed a fixed amount The Bryan
proposition would compel by law the
links To- paw unknown sums Tor future
losses and 10 let their own funds be
subject Ia risks over which they had
no control, The dangers OF such
scheme would be apparent
The failure ui commercial banks
which have attained a standing in their
respective communities are compare
lively few. and the losses in those in
stances as rule remarkably small
The average banker feels that the in
tcgrity ui hi bank is a matter al per-
Soual responsibility involving his
honor. while the prcsnt clearing house
system. IN which the weakness al any
individual member becomes apparent
and receives the required assistance
furnishes 4 protection the strength oi
which is not apparent ON the surface
Furthermore. the government has its
system of SUPERVISION. whereby il re-
quircS n specified reserve and frequent
and unexpected examination.
What is particularly needed to
strengthen the banking system Of the
country is a revision oi the antcdiu-
Wan laws oi various states, under which
institutions chartered by the common
wealth may be conducted MARYLAND.
among other States. needs banking
department, not that there has been
laX'ty IN the conduct 81 local instiru
tiouS. hut in order "a guard against the
pos ,ihiity ni ii - american Star